Markets rise ahead of UK budget despite China services slowdown – business live...
the Guardian
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19 minutes ago
Rolling coverage of the latest economic and financial news FTSE 100 jumps 1% ahead of BudgetMarkets boosted by stimulus hopesBut China’s services companies see slower growth 9.33am GMT Covid-19 lockdowns are dragging the eurozone into a double-dip recession, according to the latest survey of European companies.Eurozone service sector firms have reported another fall in activity, with new orders continuing to drop last month.“A fourth successive monthly drop in business activity puts the eurozone economy on course for a double-dip recession, though an easing in the rate of decline underscores how the latest downturn appears far less severe than the initial hit from the pandemic last year.While many hospitality-based companies in the service sector continue to struggle due to COVID-19 related restrictions, manufacturing is faring well and alleviating the overall economic impact of lockdown measures.Eurozone PMI data pointed to a further decline in private sector activity during February. Service sector weakness more than offset strong manufacturing growth. Germany and Italy were the only two covered countries to see an increase in output. Read more: https://t.co/CXmGS09Z58 pic.twitter.com/pQfJ5SZfDX 9.18am GMT Robert Alster, CIO at wealth manager Close Brothers Asset Management, says Rishi Sunak must ‘tread carefully’ as he considers tax changes:“We’re not expecting too many surprises when the Chancellor takes to his feet to deliver one of the most widely leaked budgets in history. The key focus will clearly be continued support for the economy, as we navigate our way out of lockdown. Businesses will be listening closely for the approach to business rates and VAT cuts in the coming months. “The question is how Rishi Sunak will balance the need for short term support while addressing the long term problem of the deficit. In recent weeks, speculation about tax rises has been rife. Specifically, a reform of capital gains tax, increasing corporation tax and potential ‘stealth’ taxes in the form of income tax band freezes.Can't wait to find out what's going to be in #Budget2021!(Aside from £5 billion restart grant scheme, £400M budget boost for culture and arts, £300m sports recovery package, £150m Community Ownership Fund, £520m ‘Help to Grow’ for SMEs, Thalidomide survivor funding......£10m for veterans' mental health, £1.65 billion for COVID vaccine rollout, sovereign green savings bond, Lord Hill report on reforms to London stock market listings per Sky News, Immigration reforms - fast-track visas for certain sectors, £5 billion restart grant scheme......£375 million ‘Future Fund: Breakthrough', £12 billion capital & £10 billion of guarantees for UK infrastructure investment bank, £100 million crackdown on COVID fraudsters, new mortgage guarantee scheme, £15 billion extension to furlough, other support schemes......income tax freezing of £12,500 / £50,000 thresholds, corporation tax increase plan, 3-month extension to Stamp Duty Holiday, SEISS grants of up to £7.5k)Apart from those things, should be a total surprise! Continue reading.........