Bank of England policymaker warns of rising economic risks and job losses – business live

Rolling coverage of the latest economic and financial news, as MPC member Gertjan Vlieghe says UK may need more stimulus to fight Covid-19 crisisLatest: BoE’s Gertjan Vlieghe sees downside risks risingVlieghe: Risk of large job losses as furlough scheme ends Introduction: Can Pelosi and Mnuchin reach a deal today?Wall Street fell last night as optimism fadedReckitt Benckiser: strong demand for cleaning and health products… 2.43pm BST Wall Street has opened a little higher, as traders cling to hopes of a US stimulus deal.President Donald Trump has fanned the flames of optimism, telling Fox News that he wanted a big deal, and would get doubters on his own side online:“I want to do it even bigger than the Democrats. “Not every Republican agrees with me, but they will.”Fiscal stimulus in the US also in a bit of a ‘game’ of its own, and we’ll see if the two sides come to some sort of conclusion today. I am not sure that will do much to foreign exchange market pricing, maybe a bit US dollar negative as some commodity currencies and emerging market currencies rally but the markets are going to wait for the election result for now with expectations low that an actual fiscal deal will happen before then. 2.24pm BST The latest Reuters polling of City economists shows that Gertjan Vlieghe is right to be worried about downside risks.Expectations for growth (or lack thereof) this year have hit their lowest point, with the economy expected to shrink by just over 10%.UK 2020 GDP expectations fall to new low in latest Reuters poll of economists (-10.1%) pic.twitter.com/cIxgTvDSZsMedian forecast for 2021 steady at +6.1% pic.twitter.com/lnl9Zng1q7 Continue reading…
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