Week 15 in Manufacturing News

U.S. manufacturing activity contracted less than expected in March; UK Manufacturing Production rises by 0.5% MoM in Feb vs. +0.1% expected; Eurozone’s two biggest economies sink into historic recessions; UK Office of Financial Sanctions Implementation Imposes First Substantial Fine.

U.S. manufacturing activity contracted less than expected in March

U.S. manufacturing activity contracted less than expected in March, but disruptions caused by the coronavirus pandemic pushed new orders received by factories to an 11-year low, reinforcing economists’ views that the economy was in recession.

Source: Reuters.

UK Manufacturing Production rises by 0.5% MoM in Feb vs. +0.1% expected

The Office for National Statistics (ONS) published the UK industrial and manufacturing production data on Thursday, with the overall industrial activity bettering expectations in February.

Manufacturing output arrived at +0.5% MoM in February versus +0.1% expectations and +0.2% booked in January, while total industrial output came in at +0.1% vs. +0.1% expected and +0.2% last.

Source: FXStreet.

Eurozone’s two biggest economies sink into historic recessions

The German and French economies are in the grip of historic recessions which are set to wipe out many years of growth in only a few months, according to forecasts published on Wednesday as leading bodies warned of the impact of the coronavirus crisis on the global economy and trade.

Source: Financial Times.

UK Office of Financial Sanctions Implementation Imposes First Substantial Fine

In a sign that the UK Office of Financial Sanctions Implementation will be enforcing compliance with sanctions regulations more strictly going forward, it recently imposed a fine of £20.47 million (US$25.1 million), its highest penalty ever, on Standard Chartered Bank for granting loans to a majority-owned subsidiary of a Russian sanctioned bank.

This significant penalty calls for financial institutions and companies to put in place effective sanctions regulation compliance measures as a matter of priority.

Source: Fried, Frank, Harris, Shriver & Jacobson LLP.