Record jump in US jobless claims expected as Covid-19 hits economy – business live

Rolling coverage of the latest economic and financial news, as investors brace to learn how many Americans lost their jobs last week

8.35am GMT

Oof! Confidence among German consumers has hit its lowest level since the financial crisis.

Data firm GfK’s monthly survey of morale in Europe’s largest economy has slumped to just 2.7, down from 8.3 in March.

“In light of the current development, we are withdrawing our consumer forecast of one percent growth for 2020. Retailers, manufacturers and service providers must prepare for a recession.

How severe this recession will be will ultimately depend on when the economy finds its way back to normality. A reliable forecast regarding consumption can only be made once we can predict how long the protective measures to combat corona will remain in place.”

#Germany GfK consumer sentiment looks like it just ran head first into a brick wall pic.twitter.com/6A2y6m0UCj

8.27am GMT

Paul Donovan of UBS Wealth Management says that today’s US jobless claims reading is very important, but may not be terribly accurate:

US initial jobless claims numbers are expected to be very, very large.

If lots of Americans lose their jobs, the start of phase two (economic bounce-back) will be delayed. More unemployed means less consumption. Today’s data may have accuracy issues, if there were not enough people to process and count the number of claims.

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Source: theguardian
Record jump in US jobless claims expected as Covid-19 hits economy – business live