Virgin Money upbeat, Bank of England to review dividend policy, and Greggs sales recover

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Here are the top business, market, and economic stories you should be watching today in the UK, Europe, and abroad:

Virgin Money upbeat

Virgin Money (VMUK.L) has struck an upbeat tone on third quarter trading.

The challenger bank said customer deposits rose by 4.8% in the third quarter to £67.7bn ($87bn), as Brits stuck as home during lockdown spent less. The rise equates to around £600 extra in every Virgin Money customer’s current account or savings account.

Mortgage lending fell by 1% as the housing market paused by business lending surged by 5.7% to £8.8bn in the three months to 30 June.

“Our Q3 financial results reflect lower demand from consumers due to the pandemic, but strong demand from businesses for government-supported schemes, with the Group further increasing its provisions to reflect the uncertain economic outlook while maintaining a focus on margin, cost and capital management,” said chief executive David

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July’s jobs boom masks ‘economic scarring’ that could get worse if there’s no stimulus deal

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There was much to cheer in July’s surprisingly strong nonfarm payrolls report, but there is also just enough bad news to leaven an otherwise celebratory mood. 

The most encouraging headline was a coronavirus-battered economy created nearly 1.8 million jobs during the month, enough to pull the unemployment rate down to 10.2%. It underscored how a battered U.S. labor market still has sufficient animal spirits to generate jobs – even in the face of a wave of coronavirus diagnoses around the country, which are showing tentative signs of cresting.

The COVID-19 crisis has retained its vise-like grip on the Sun Belt, which is threatening the trajectory of a U.S. economic rebound.

However, “with new infections now trending clearly lower again and high-frequency activity indicators showing tentative signs of a renewed upturn, employment should continue to rebound over the coming months,” according to Capital Economics’s senior U.S. economist Andrew Hunter.

On the

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