//Number of people on UK payrolls drops by 600,000 as Covid-19 crisis hits – business live

Number of people on UK payrolls drops by 600,000 as Covid-19 crisis hits – business live

Live rolling coverage of business, economics and financial markets as latest official figures also showed the number of hours worked dropped a record 9%

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9.48am BST

There is another factor driving the stock market that we had missed: a report earlier this morning that the Trump administrations is preparing a nearly $1 trillion infrastructure proposal as part of its recovery plans.

News that the White House is considering a $1tn infrastructure proposal has seemingly also given risk assets a boost. The prospect of further stimulus was already known however the size and timing was more up in the air.

The current infrastructure funding law is due for renewal by the end of September and the House Democrats have already proposed their own $500bn proposal over five years. For now there is no detail on how long the administration’s draft would authorize spending.

Just as markets were starting to weigh up the prospect of another prolonged sell-off amid coronavirus second wave fears, talk of a $1tn infrastructure plan being considered by the Trump administration has put a rocket under stocks again. Also driving sentiment was the start of the Federal Reserve’s corporate bond buying programme.

9.30am BST

This chart from Berenberg, the investment bank, shows what might be ahead for unemployment.

With a lot of help from the government employment subsidy scheme, the core of the labour market remains protected from short-term acute shock from the pandemic. In time, the headline unemployment and employment data could deteriorate materially. Such indicators often lag trends in general economic activity. The risk of a massive wave of layoffs when the CJRS comes to an end in October.

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Read more: theguardian.com