Author: LoveWorld UK

Auto parts supplier Continental (CONG.DE) will deepen cost cuts after its operating profit almost halved in the first quarter as coronavirus lockdowns caused global car production to fall 25%, the company said on Thursday. The German manufacturer’s earnings before interest and taxes dropped 47% to 436.5 million euros ($471 million) in the first quarter of 2020 from 823.3 million a year earlier and its operating margin narrowed to 4.4% from 7.5%. Continental warned its second-quarter results would be worse as lockdown measures hit large markets including the United States. As a result, it will aim to cut investment by 20%,…

The Bank of England held off further stimulus measures but said it was ready to take fresh action to counter the coronavirus hammering which could cause the country’s biggest economic slump in over 300 years in 2020 before a bounceback in 2021. The BoE said its Monetary Policy Committee kept Bank Rate at its all-time low of 0.1% and left its target for bond-buying, most of it British government debt, at 645 billion pounds. However, two of its nine policymakers – Michael Saunders and Jonathan Haskel – voted for 100 billion pounds’ worth of more bond-buying firepower. In what it…

Britain’s construction sector suffered by far its biggest contraction since the launch of widely followed survey of the industry 23 years ago as the coronavirus lockdown shuttered building sites and suppliers. The construction Purchasing Managers’ Index (PMI), published by data firm IHS Markit and the Chartered Institute of Procurement and Supply (CIPS), slumped to 8.2 in April from 39.3 in March. The previous low was 27.8, recorded during the depths of the financial crisis in 2009. A Reuters poll of economists had pointed to a much less severe fall, to 22.0. “The rapid plunge in UK construction output during April…

India will supply Europe with about 1,000 tonnes of the active pharmaceutical ingredient (API) for common pain reliever paracetamol, a top exports body said, easing export controls on over-the counter medicines used to cope with COVID-19 symptoms. The Indian government in March put a hold on exports of several drugs including paracetamol to secure supplies for its people after the coronavirus outbreak disrupted the industry’s supply chain globally. COVID-19 is the respiratory disease caused by the novel coronavirus. Europe has sought up to 800 tonnes of paracetamol APIs every month, said Dinesh Dua, chairman of the Pharmaceuticals Export Promotion Council…

BMW AG (BMWG.DE) on Wednesday said the impact of the coronavirus will likely hurt demand and profit throughout the year, forcing the German automaker to lower its profit outlook for passenger cars following a slowdown in first-quarter deliveries. The Munich-based firm forecast its full-year automotive earnings before interest and taxes (EBIT) margin to fall to 0% to 3%, versus the 2% to 4% range estimated before demand was decimated by government restrictions on movement worldwide aimed at slowing the coronavirus outbreak. “The BMW Group still expects the spread of the coronavirus and the necessary containment measures to seriously dampen demand…

LONDON (Reuters) – Britain’s Metro Bank (MTRO.L) reported a modest dip in lending in the first quarter and a 77 million pounds rise in total deposits to 14.6 billion pounds as customers shrugged off lower fixed term deposit rates. The lender said the impact of the COVID-19 pandemic on customers was difficult to predict with any certainty and it would provide an update on the economic consequences at its half-year results. First quarter total deposits came in at 14.5 billion pounds while total net loans were also 14.5 billion pounds, some 169 million pounds below the Dec. 31 position. The…

The United Kingdom has drawn up a three-stage plan to ease the coronavirus lockdown that was first imposed at the end of March, The Times newspaper said. The government must review the lockdown by May 7 but Prime Minister Boris Johnson has made clear that he is worried about triggering a second deadly spike in cases. Johnson is expected to set out a plan for exiting the lockdown on Sunday. The first phase will involve small shops reopening alongside outdoor workplaces and the second will involve large shopping centres reopening, with more people encouraged to go into work, The Times…

Britain’s government is considering cutting the proportion of workers’ wages it pays under its massive coronavirus furlough scheme to 60% from 80%, London’s Evening Standard newspaper said on Tuesday. The scheme now supports the wages of 6.3 million employees, almost a quarter of Britain’s private-sector workforce, who have temporarily stopped work at a cost of around 8 billion pounds (8.00 billion pounds). The support is due to stop at the end of June, after being extended by a month already. Finance minister Rishi Sunak said on Monday there would be no sudden cliff edge in June but that he was…

Banks in the European Union could end up paying annual contributions to an industry rescue funds by tapping government support for coronavirus-hit companies, lawmakers said on Tuesday. The Single Resolution Board (SRB) ensures that banks in the euro zone have enough funds to avoid taxpayer bailouts if they collapse. Banks are required to issue MREL, a form of debt that can be “bailed in” or written down to replenish burnt out capital, and contribute to a fund for shielding taxpayers in a crisis. SRB Chair Elke Koenig came under fire from lawmakers in the European Parliament’s economic affairs committee on…

British new car sales slumped by 97% in April to the lowest level of any month since February 1946 as factories and dealerships shut due to the coronavirus outbreak. Lockdown measures have been in place across Europe since mid-March to contain the pandemic, leading to the closure of many businesses and limiting people’s movements. Last month, sales to businesses accounted for four in five of the 4,321 registrations, according to the data from the Society of Motor Manufacturers and Traders (SMMT), which downgraded its full-year forecast to 1.68 million sales, on course for the lowest level in nearly 30 years.…