Seven days in the Square Mile

The IMF warned that an estimated $9trn of global output will be lost this year and next – equal to the combined economies of Germany and Japan – making “the Great Lockdown” the worst recession since the Great Depression and “far worse than the global financial crisis”. Overall, the fund’s economists expect global GDP to fall by 3% in 2020, the biggest drop in almost a century. The World Bank highlighted particular concerns about South Asia: noting that the region could become the virus’s next “hotspot”.

The IMF warning dampened stock markets, which had continued their march upwards. European and US markets are now trading more than 20% above their March lows. Despite a show of international solidarity to shore up the oil price with a “record” cut in production, the price of Brent crude fell to $28.40/barrel midweek, after global demand was forecast to plunge even if lockdowns and travel bans were lifted. The Business Secretary, Alok Sharma, admitted that the government loan scheme for small businesses was still not delivering. Of 300,000 applications made, only 4,200 companies had received loans – just 1.4% of those seeking help. The FCA leaned on insurers to pay out claims to companies “as soon as possible”. Bloomberg Billionaires Index reported that soaring demand for online shopping had helped boost Jeff Bezos’s private fortune by $24bn to $138bn. Sports Direct’s Mike Ashley sold Newcastle Utd football club to investors led by Saudi Arabia’s sovereign wealth fund for £300m.