The economic reality of global lockdown is now becoming clear in the UK as unemployment rises, productivity output falls and short term loss of earnings data released. However bonuses and dividends are banned for companies receiving government funding.
Firstly, SoftBank chief executive invoked Jesus Christ whilst defending his, thus far disastrous, investment stratergy.
MASA SON OF GOD: the 62-year-old founder and chief executive of SoftBank invoked the example of Jesus Christ while defending his investment strategy on an investor call on Monday.
— Robert Smith (@BondHack) May 18, 2020
The Ofiice for National Statistics has revealed productivity fell by 0.4% in terms of output per hour in the first three months of the year.
Labour productivity (output per hour) in Q1 2020 was down 0.4% on the same quarter of 2019.
This was as a result of output falling faster than hours worked https://t.co/pXmhVdlFtF
— Office for National Statistics (ONS) (@ONS) May 19, 2020
This productivity dip comes as news of giant spike in unemployment.
The @ONS said about 856,500 people signed up for universal credit and jobseeker’s allowance benefits in April, while the overall number of people claiming for benefits due to unemployment had risen above 2m for the first time since 1996. https://t.co/MWx1S5HttZ
— Chief-Exec.com (@Chief_Exec_com) May 19, 2020
The National Institute of Economic and Social Research have fascinating thread filling out the broader picture of the UK economy.
OUT NOW: our latest #NIESRwage Tracker suggests that measured average earnings will fall in the short term, reflecting the lower pay of those who have been furloughed. Read our analysis in full here 👇📈📉👇https://t.co/AKvJrMLNnc
— NIESR (@NIESRorg) May 19, 2020
Considering the challenges faced by the UK economy it David J Chimel suggests it may not be too surprising that dividends and bonuses ban are pre-requsit to government bailout loans.
In light of the political mood generally – and one that was already gaining ground prior to the current crisis – not at all surprised to see bans on dividends and cash bonuses made pre-requisites for government bailout loans in the UK: https://t.co/lfduO63PX0 via @financialtimes
— David J. Chmiel (@DavidJChmiel) May 19, 2020
What are your thoughts on these tweets?
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