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FTSE 100 LIVE: UK economy facing brutal autumn crunch after banks end vital mortgage help

The Financial Conduct Authority has changed its rules, meaning that after October 31, people financially affected by the economic impact from COVID-19 will not be able to seek help with their mortgage payments. But this is the same day the furlough programme, which has been subsidising up to 80 perccent of wages for workers that are not working. There are fears there will be huge numbers of redundancies from companies no longer able to afford those who were being helped by the tax-payer. 

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Ben Jones, the CBI’s principal economist, told the Telegraph: “As we head into the autumn, the UK needs a bold plan to protect jobs as the job retention scheme draws to an end, to support the services sector.”

And Malcolm Le May , from lender company Provident Financial, added around 2.4million more people could be blocked from borrowing from mainstream banks.

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FTSE 100 LIVE: The UK economy could be hammered this Autumn (Image: GETTY)

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9.05am update: EU markets wobble

EU markets are also struggling this morning.

Euronext 100 is down 0.03%, CAC 40 is down 0.10% and Swiss Market Index is down 0.31%.

DAX is up 0.10%.

8.10am update: FTSE drops on open

Another poor start for FTSE, with the UK index plummeting on open.

FTSE has dropped 21 points in the first 10 minutes of trading this morning, mirroring a trend which has seen early drops this week.

The index closed at 6,045 yesterday and now sits at 6,024.

6.38am update: South Korea central bank cuts 2020 GDP outlook

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The Bank of Korea kept the seven-day repurchase rate at a record low of 0.5 percent KROCRT=ECI, in an unanimous and widely expected decision, after 75 basis points of rate cuts this year.

It said gross domestic product would likely shrink 1.3 percent in 2020 – the biggest contraction in more than two decades – from a previous forecast for a 0.2 percent decline.

Governor Lee Ju-yeol said monetary policy needed to be “actively” used if the downturn worsened, reiterating the central bank was open to more rate cuts and was willing to expand the use of other monetary tools.

“There is room to respond with rate cuts,” Lee told a press conference livestreamed via Youtube.

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