Day: September 7, 2020

British Pound Plummets After Specter of a No-Deal Brexit Returns

(Bloomberg) —

The pound fell after U.K. Prime Minister Boris Johnson ratcheted up the chances of trade negotiations failing with the European Union.

Sterling declined as much as 1% against the dollar to $1.3145, extending its drop to the longest since June, as Johnson prepared to tell the EU he’s willing to let talks fail rather than compromise on what he sees as core Brexit principles.

“It looks that we are only at the beginning of a painful correction lower in the pound,” said Valentin Marinov, head of Group-of-10 foreign-exchange strategy at Credit Agricole SA, who sees the pound dropping

Raghuram Rajan calls current economic situation alarming; suggests to roll out stimulus package now

Without relief, households skip meals, pull their children out of school, and send them to work or beg.

Former RBI Governor Raghuram Rajan said that the government’s reluctance to do more at present to conserve resources for a possible future stimulus is a self-defeating strategy. In a post published on LinkedIn, the noted economist, Raghuram Rajan, added that if one thinks of the economy as a patient, relief is the sustenance the patient needs while on the sickbed and fighting the disease. Without relief, households skip meals, pull their children out of school, and send them to work or beg,

Small businesses bear maximum Covid brunt as net sales’ growth plunge this much in Q1 FY21

Majority small businesses had narrowed their operations to negligible or no growth at all while others had to temporarily shut operations during the lockdown.

Ease of Doing Business for MSMEs: Small businesses in India witnessed a sharp contraction in net sales growth during Q1 FY21 from the year-ago period due to the Covid pandemic and the following lockdown that was enforced by the Modi government on March 25. According to the Q1 performance analysis of 747 small businesses by Care Ratings, their net sales saw negative growth of minus 66.7 per cent from Q1 FY20. “It can be seen