Overseas Headlines – September 17, 2020

United States:

U.S. Jobless Claims Resume Drop in Sign of Gradual Improvement

“The number of Americans applying for jobless benefits resumed its decline, signaling a gradual improvement in the battered labor market. Jobless claims in regular state programs decreased by 33,000 to 860,000 in the week ended Sept. 12, which coincides with the reference period for the government’s monthly jobs report, according to Labor Department figures released Thursday. Continuing claims, the total number of Americans on state benefit rolls, fell by almost 1 million, to 12.6 million, in the week ended Sept. 5.”



BOE Steps Up Negative Rates Work as Economic Threats Mount

“The Bank of England gave the clearest signal yet that it may consider cutting interest rates below zero for the first time in its history as the economy faces a surge in coronavirus infections and the risk of a no-deal Brexit. The pound fell. With multiple threats to the outlook looming, the BOE will begin “structured engagement” with U.K. bank regulators on how it might implement negative rates. Governor Andrew Bailey said last month the policy has become part of the central bank’s toolkit.”



BOJ’s Kuroda Vows to Closely Coordinate With Suga Government

“Bank of Japan Governor Haruhiko Kuroda said the central bank will keep close coordination with the new government led by Prime Minister Yoshihide Suga to pull the pandemic-hit economy out of its slump. Kuroda, speaking to reporters Thursday, sought to reassure investors that the BOJ will keep easing in pursuit of its 2% inflation target and maintain its close relationship with the government after its first leadership change in almost eight years.”



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