World

LONDON: Britain will suffer the sharpest peak-to-trough economic slump of any major economy this year, rating agency Moody's warned on Friday (Jul 10), while its debts as a share of GDP will surge by 24 percentage points. Moody's said the UK government's latest stimulus package, announced this week, would aid a gradual economic recovery but add further pressure to the UK's fiscal position. "The UK’s public debt ratio will likely rise by 24 percentage points of GDP or more relative to 2019 levels," a group of Moody's top analysts wrote in a note. "We forecast a contraction of 10.1 per cent in the UK's GDP for this year, but expect a gradual subsequent recovery on the back of the easing in lockdown measures, with growth rebounding to 7.1 per cent next year". Moody's rates Britain Aa2...

There's just one week remaining before federal income taxes are due this year on July 15, a three-month extension from the typical Tax Day deadline the IRS granted in light of the coronavirus pandemic. When the IRS pushed back the tax filing deadline to July 15, the agency also pushed back the cut off to put money into individual retirement accounts. While you can make contributions to your IRA year-round, any money added to these accounts counts toward a specific tax year. That's because these accounts are tax advantaged, which means that, depending on the type of account, you could receive a break on your tax bill by contributing. In this case, you can still make 2019 contributions of up to $6,000 ($7,000 if you're 50 or older) until July 15, 2020. This is an important opportunity any re...

NEW YORK: The US economy is showing signs of a turnaround as businesses reopen, but the pace of the recovery is being slowed by large-scale outbreaks in some states and it could be years before the economy is back at full strength, New York Federal Reserve Bank President John Williams said on Tuesday (Jun 30). Increases in consumer spending and in building permits suggest that economic activity is improving in some areas and that the "low point" of the downturn may have passed, Williams said. Manufacturing activity and small business revenues in hard-hit areas such as New York are picking up, he said. "People have been getting back to work and the unemployment rate has started to edge down," Williams said according to remarks prepared for a virtual event focused on central banking du...

Contracts to buy U.S. previously owned homes rebounded by the most on record in May, suggesting the housing market was starting to turn around after being hammered by the COVID-19 pandemic along with the rest of the economy. WASHINGTON: Contracts to buy U.S. previously owned homes rebounded by the most on record in May, suggesting the housing market was starting to turn around after being hammered by the COVID-19 pandemic along with the rest of the economy. Other data on Monday showed an improvement in manufacturing activity in Texas in June after three months of record or near-record declines in output. But surging infections of the respiratory illness in many regions, including the densely populated Texas, Florida and California, pose a risk to the nascent recovery. The economy fell in...

With the economy officially in a recession, millions of Americans still receiving unemployment benefits and some states pausing their reopening plans amid spikes in the number of coronavirus cases, it's little wonder that some lawmakers are calling for a second round of stimulus checks. While it's been primarily Democrats pushing the idea — the stalled HEROES Act calls for distributing up to a maximum of $6,000 per household — President Trump recently voiced his support for another round of funding. "We will be doing another stimulus package. It'll be very good. It'll be very generous," Trump said in an interview last week. Yet even if a second round of stimulus checks is approved, it likely won't be passed until the end of July. Plus, for some Americans, the amount won't cover all of thei...