I now expect the #coronavirus2020 will rapidly induce a deep recession in the UK. If shoppers are instructed to stay at home, the move from High Street retailers to the Internet will be accelerated even more. This impact also includes any activities dependent on tourism and regions like Warwickshire with Stratford on Avon and cities like York & Oxford & Chester. From retail, the collapse in sales will be felt backwards quickly through Wholesalers to Producers throughout 2020.
What has now convinced me of this Armageddon is that this week the British Government promised to spend hundreds of billions of pounds, because internally they are forecasting Economic Armageddon. Also, today, the Bank of England reduced interest rates from 0.25 per cent to 0.1 per cent and pledged to buy £200 billion more gilts and corporate bonds to prop up growth, taking its total QE programme to £645 billion.
So, I am advising anyone to tighten up their credit terms now, cash will become king again, like 2007, but even worse I expect. The scale of the British Government’s promised expenditure and issuance of loan guarantees is even more excessive than the Opposition wanted to spend at the last election and they had their worst ever vote since 1935.
I expect a #LondonLockdown like has happened across many EU capitals and the peak of #coronviruscontagion to peak this Summer (as it the virus hates the warmth) but the #Economicconsequences to last all through this year.