Powerscourt

By Powerscourt on 27/09/2020

Powerscourt Coronavirus Briefing – 27 September 2020

ANALYSIS

This weekend additional stricter localised measures came into force across England and Wales as new cases in the past 24 hours continue to be above the 6,000 mark for the fourth consecutive day. The new 10pm curfew came into place, with the inevitable gathering of crowds at that time as pubs were forced to clear.

A major flaw has already been identified with the Government’s COVID-19 app, which meant that more than a third of daily tests were being excluded from the system. The Government claims it is working to fix the issue.

There are also reports the Government is going to bring back the daily news updates “designed to heighten public awareness about the spread of the virus and the need for action”.

At the same time, Europe is battling with rapidly escalating rates of infection with France reporting 14,412 new confirmed COVID-19 cases in the past 24 hours. The main question is how to control the sharp increase in infections without jeopardising the fragile economic recovery.

The US government reported last night that the total number of COVID-19 cases surpassed 7 million reaching 7,009,216 after 50,584 new cases in 24 hours. However, there is some short term optimism on the economic front as according to the report from US Commerce Department there is a show of confidence by businesses and expectations for a sharp recovery in economic activities in Q3 though the outlook for Q4 is now clouded by the return of high infection rates. The Federal Reserve now insists that more fiscal stimulus is required to avoid ‘economic slog’.

 

WHAT ARE COMPANIES SAYING?

 

Industrials 

EasyJet
The airline issued a statement following media coverage of leaked audio of a union official saying the company is “hanging by a thread”. In response EasyJet said: “The recording does not reflect what EasyJet or its chief financial officer said. We have been clear the whole industry has been impacted by the pandemic, however, EasyJet has taken a prudent approach to capacity and the right actions on cash preservation. The airline continues to keep all liquidity options under review, but no decisions have been taken. Winter flying is always significantly lower than summer and EasyJet will continue with its prudent and dynamic approach to capacity over the winter. No decisions have been taken and we will update the market in due course.”

 

IN THE NEWS

Europeans return to workplace but reduce leisure activity – Financial Times

Regus goes to war with landlords – The Sunday Times

Bank of England official defends negative rates as recovery is ‘interrupted’ – The Sunday Telegraph




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