Bank of England policymaker warns of rising economic risks and job losses – business live
Rolling coverage of the latest economic and financial news, as MPC member Gertjan Vlieghe says UK may need more stimulus to fight Covid-19 crisis
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The EU launched its first new coronavirus-related bonds today, triggering a frenzy of interest from investors.
The Financial Times reports that the sale was 14-times oversubscribed, as bidders battled to get a piece of the action. The bonds will fund Europe’s Covid-19 recovery efforts, and are attractively priced compared to German and French government debt.
The deal forms the start of a borrowing binge that will make Brussels one of the region’s biggest debt issuers. Investors placed bids for more than €230bn, far exceeding the €17bn of bonds on offer, according to one of the banks arranging the deal.
Buyers were drawn by the relatively high yields on the bonds, which came with 10-year and 20-year maturities, and offered more income for investors than the eurozone’s safest government debt.
EU enjoys ‘outrageous demand’ for first Covid-related bond https://t.co/sz2JbQKTEt via @financialtimes
In the US, the number of new building permits jumped 5% in September, as the market recovered from its spring lockdown.
The Commerce Departments reports that the number of new privately-owned housing units authorized jumped to an annual rate of 1,553,000m up from August’s 1,476,000. That’s also 8.1% above the September 2019 rate of 1,437,000.
Housing Starts at 1.415 Million Annual Rate in September https://t.co/FJbB4R3j6l Below expectations, and previous months revised down – due to weakness in multi-family pic.twitter.com/m5ZOZNHJCy