FTSE 100 LIVE: Huge boost as UK economy soars 15.5% in third quarter COVD fight-back

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Japan’s Nikkei 225 gained 0.68 points as stocks on Friday as strong trading continued following Monday’s announcement. However there are signs investors are switching back to technology companies, and away from stocks vulnerable to coronavirus, as doubts about the new vaccine remain.

Speaking to Reuters Daiju Aoki, from UBS Securities, said: “The markets are waiting for more news about the virus, so it is difficult for investors to short equities.

“These expectations can keep equities going for another few weeks, but there are still questions about the effectiveness of a vaccine and about U.S. fiscal policy.

“We could see a correction early next year.”

On Monday Pfizer and BioNTech announced preliminary results indicating a vaccine they are producing can prevent 90 percent of people from catching coronavirus.

The two companies are hoping to receive emergency approval so they can begin administering the vaccine by the end of November.

However it is likely to be well into next year before the vaccine becomes available on scale worldwide.


7.10am update: Britain’s GDP grew by 1.1 percent in September

According to latest figures from the Office of Natianal Statistics, the GDP grew 1.1 percent in September but remains 8.2 percent below its February peak.

ONS reported services grew 1.0 percent (8.8 percent below Feb), the manufacturing industry grew by 0.2 percent (8.1 percent below Feb) and construction grew 2.9 percent (7.3 percent below Feb).

They said: “This is the largest quarterly expansion in the UK economy since ONS quarterly records began in 1955.

“However, it is worth noting that this reflects the continued easing of lockdown restrictions in the third quarter as well as some recovery of activity from the steep contraction in April.

“The level of GDP in the UK is still 9.7pc below where it was prior to the pandemic at the end of 2019.

“Compared with the same quarter a year ago, the UK economy fell by 9.6pc.

“The monthly path of GDP in Quarter 3 2020 reveals that there has been a slowdown of growth in August and September as momentum has eased through the quarter.

“GDP increased by 6.3pc in July, driven by accommodation and food services as lockdown restrictions were eased.”

6.46am update: Coronavirus to hit 2020 Wall Street bonuses

Wall Street workers should expect lower bonuses this year due to the COVID-19 pandemic according to compensation firm Johnson Associates Inc.

The company predicts retail and commercial bankers will see their year-end incentive pay fall by between 25-30 percent.

Johnson Associates Inc managing director Alan Johnson said: “The pandemic is wreaking havoc on many parts of the U.S. economy this year, and the financial services industry is no exception.”


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