FTSE 100 LIVE: London shares edge higher as European markets slump amid Brexit standoff

FTSE 100 LIVE: London shares edge higher as European markets slump amid Brexit standoff

But the EURO STOXX 50 has been lowering on Tuesday as Brexit negations continue between the UK and European Union. The FTSE 100 is seen up by 4.5 points at 5889, while the EURO STOXX 50 is down by 14.6 points at 3227.

On Tuesday a top Bank of England official said negative rates could be needed to boost the economy as a second coronavirus wave hits the recovery.

Gertjan Vlieghe, a member of the Bank’s Monetary Policy Committee, told the Telegraph that growth was slumping and therefore more stimulus could be on its way.

He said in countries where negative rates have already been tried, “the effect has generally been positive”.

But he added that “QE is probably less potent now than in March”.

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7.15am update: UK borrowing soars

The UK’s national debt hit a record £2.06 trillion at the end of September, according to new data from the Office for National Statistics.

It pushed borrowing up to 103.5% of gross domestic product (GDP) after the public sector borrowed around £36.1 billion in September – £28.4 billion more than the same month a year ago and the third-highest month of borrowing since records began in 1993.

At the end of September there was £1.741 trillion of central government bonds, or gilts, in circulation to prop up the falling tax take and cover the huge expenditure related to Covid-19 spending.

Central government tax receipts were £37.7 billion in September – £6 billion less than in September 2019, with large falls in value added tax (VAT), business rates and corporation tax receipts, the ONS added.

Published at Wed, 21 Oct 2020 05:48:00 +0000