Overseas Headlines – June 5, 2020

United States:

Los Angeles and New York Led U.S. in Lost Earnings From Covid-19

“Job losses and pay cuts roiled all of America since Covid-19 struck last winter, but the depth of the pain depended a lot of where employees lived, their income level and if they had kids. Almost two-thirds of households in the greater Los Angeles area experienced earnings declines over the past two months compared with 43% in Washington, D.C., where federal-government jobs have been largely protected, according to a new report by the U.S. Census Bureau. In New York City, more than half of residents suffered a drop in income.”



U.K. Urged to Scrap BOE Inflation Target in Favor of Growth

“The Bank of England’s inflation target should be abandoned and replaced with a goal for growth, according to a think tank, adding to the debate about how to best manage the economy in the wake of the devastation caused by the coronavirus. As well as endorsing a system known as nominal GDP targeting, the Policy Exchange also called for temporary cuts to value-added tax and property levies. And it said the U.K. should tolerate higher levels of borrowing to fund spending on infrastructure.”



Hong Kong Dollar Inflows Surge, Staring Down Capital Flight

“For all the debate of the future of Hong Kong, investors for now anyway are clamoring for the city’s currency. The pegged Hong Kong dollar climbed to the strong end of its permitted trading band late Thursday U.S. time, prompting intervention by the de facto central bank. Another round occurred Friday during Asian trade. While concern about looming national-security legislation has spurred speculation about capital outflows, demand for the local currency has risen as investors seek a slice of highly sought share sales in Hong Kong by Chinese tech firms.”



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