Coronavirus hits the high street

Get straight to the good stuff every day with the Multiply Minute; a lightning-quick round-up of the money news and how it affects you.

Carluccios and Brighthouse collapse

Carluccios and rent-to-own firm Brighthouse both entered administration yesterday, putting over 4,500 jobs at risk. The restaurant chain was already struggling before the pandemic hit, but the lockdown has pushed it over the edge. Staff will be paid via the government job retention scheme while administrators work out what happens next.  Brighthouse customers should keep making the payments on their household items.

World Bank warning

The financial shock from coronavirus will restrict China’s economic growth in 2020 to just 2.3% - or just 0.1% in a worst-case scenario - according to the World Bank. Previously, it was predicted to grow 6.1%. Even as Chinese factories start up again and manufacturing output starts to increase, they’re being warned they have a long way to go.

UK deficit narrows

The UK’s current account deficit - the gap between what comes in from trade and investment, and what goes out - narrowed to just £5.6 billion in the last quarter of 2019. At 1% of GDP, the deficit was the lowest it’s been since 2011, making the UK economy less vulnerable. The current account deficit is separate to the budget deficit, which is set to increase following the government’s promises to borrow to support businesses and families during the coronavirus crisis.

The big shop

March was the biggest month on record for supermarkets in the UK. Shoppers spent an extra £1.9 billion on groceries in the run up to lockdown. Households made 79 million additional trips to the shops and spent £63 extra on average over the four weeks to 22nd March.