Carney warns of economic slowdown as global markets crumble

Published by Craig Wilmann on February 28th 2020, 9:09am

The just-about-still governor of the Bank of England, Mark Carney, has warned that the UK could take a substantial economic hit from the Covid-19 coronavirus. 

This comes after the FTSE 100 hit its lowest level since 2016 and the Dow Jones recorded its biggest one-day point drop in history. 

And while Britain is unlikely to do any worse than anywhere else, we could be set for the biggest global economic downturn since 2008. 

Mr Carney said that, while it was too early to gauge the full impact, the Bank of England has already noticed a clear tightening of supply chains and a reduction in tourism. 

Globally, the Covid-19 virus hasn't just hit stocks and shares, it has also impacted negatively on commodities, with oil doing particularly badly and even gold in the red. 

Saxo Bank’s Ole Hansen tweeted that this was a 'truly horrendous week for commodities.'

Sadly, there is little sign of any let up, with this morning bringing news of the first case of the virus in sub-saharan Africa, after an Italian man travelled from Milan to Lagos and tested positive. 

Former health secretary and foreign secretary, Jeremy Hunt, told BBC Radio 4's Today programme that the developments in Africa and the middle-east are "probably more significant in terms of the risks of this turning into a pandemic where the spread across borders becomes not possible to contain".

And while I've been writing this piece, I've just been told the news of the first Coronavirus case in Wales, bringing the confirmed cases in the UK to seventeen. 

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Craig Wilmann
Executive Director
February 28th 2020, 9:09am

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