Seven days in the Square Mile

China injected £130bn into its financial system to battle the impact of the coronavirus outbreak, but local markets fell steeply at the start of the week – echoing previous falls in Western markets. Last week, Wall Street’s S&P 500 notched up its worse week since October. Reports of a breakthrough in coronavirus treatment later saw indices globally regain some ground. Goldman Sachs forecast that the virus crisis will hit Chinese growth by 0.4% this year; it is also expected to drag on the US economy. Both the US Fed and the Bank of England kept interest rates on hold. Britain’s formal departure from the EU bloc caused few market ructions, although the pound took a drubbing – falling back to its pre-election levels below $1.30, before recovering. UK public finances were reported to be less rosy than thought: Britain could face a £12bn deficit by 2023, instead of the £5bn surplus outlined in the Conservative’s election manifesto. Mike Lynch, founder of the UK tech giant Autonomy (sold to Hewlett-Packard for $8.4bn in 2011) submitted himself for arrest. Lawyers said he “vigorously rejects” charges of conspiracy and fraud. Ikea announced plans to close its Coventry store – the first time it has shuttered a large UK site since launching here 33 years ago. Bernie Ebbers, the former WorldCom tycoon jailed for fraud in 2005 after triggering what was then the biggest bankruptcy in US corporate history, died aged 78.