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You can find the current article at its original source at https://www.theguardian.com/business/live/2017/aug/18/markets-slide-on-trump-and-terror-concerns-business-live
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| Markets slide on Trump and terror concerns - business live | Markets slide on Trump and terror concerns - business live |
| (35 minutes later) | |
| 9.28am BST | |
| 09:28 | |
| Gold is moving higher as investors seek havens in the wake of the current uncertainties. The precious metal is up $6 an ounce to $1293, its highest level since early June. | |
| 9.16am BST | |
| 09:16 | |
| Here’e the eurozone current account for June: | |
| #Euro Current Account at €28.1B https://t.co/iWgeVfiiuR pic.twitter.com/SKMnzcAPAH | |
| 9.03am BST | |
| 09:03 | |
| It may be a summer lull in the business world in many ways but there are still a few key events to come, so here’s a quick preview of next week from IHS Markit: | |
| Next week's economic diary includes the flash #PMI surveys for the US, Eurozone & Japan plus UK #GDP. Read more here https://t.co/53Tv6QHZBB pic.twitter.com/VFRkCcoAXH | |
| 8.44am BST | 8.44am BST |
| 08:44 | 08:44 |
| Here’s Neil Wilson, senior market analyst at ETX Capital, on the fall in airline shares: | Here’s Neil Wilson, senior market analyst at ETX Capital, on the fall in airline shares: |
| Airlines bore the brunt of a risk-off turn on the open, with shares in Ryanair, IAG, Air France KLM, Lufthansa and EasyJet all slumping following the terror attacks in Spain. As we’ve seen over the last couple of years in Europe, these kinds of atrocities affect tourism and will hit airline earnings. Investors are concerned that demand will fall over the rest of the year, which was already looking like it would be a tough patch for the industry. | Airlines bore the brunt of a risk-off turn on the open, with shares in Ryanair, IAG, Air France KLM, Lufthansa and EasyJet all slumping following the terror attacks in Spain. As we’ve seen over the last couple of years in Europe, these kinds of atrocities affect tourism and will hit airline earnings. Investors are concerned that demand will fall over the rest of the year, which was already looking like it would be a tough patch for the industry. |
| Airlines are already dealing with a price war and several have warned about the second half. The attacks in Spain will do nothing to help and should hit earnings, although we won’t know to what extent until the quarterly updates come in. | Airlines are already dealing with a price war and several have warned about the second half. The attacks in Spain will do nothing to help and should hit earnings, although we won’t know to what extent until the quarterly updates come in. |
| Falling demand is not going to help falling fares. Ryanair thinks average fares will decline by 8% in the second half. The industry is good at competing away any margin accretion by creating more capacity. Now firms will probably have to contend with lower demand in key Spanish routes. | Falling demand is not going to help falling fares. Ryanair thinks average fares will decline by 8% in the second half. The industry is good at competing away any margin accretion by creating more capacity. Now firms will probably have to contend with lower demand in key Spanish routes. |
| IAG and EasyJet both shed 3% in early trading, while Ryanair was 5% lower on the open before paring losses. These were the biggest fallers as European stocks took a nose dive after US stocks dived yesterday on concerns about the Donald Trump presidency. On a risk-off day, the only risers are miners and insurers. | IAG and EasyJet both shed 3% in early trading, while Ryanair was 5% lower on the open before paring losses. These were the biggest fallers as European stocks took a nose dive after US stocks dived yesterday on concerns about the Donald Trump presidency. On a risk-off day, the only risers are miners and insurers. |
| But if the lesson from previous terror attacks is anything to go by, whilst airlines and maybe some luxury goods stocks can expect to see earnings hit, the broader market is capable of rebounding reasonably quickly. | But if the lesson from previous terror attacks is anything to go by, whilst airlines and maybe some luxury goods stocks can expect to see earnings hit, the broader market is capable of rebounding reasonably quickly. |
| 8.40am BST | 8.40am BST |
| 08:40 | 08:40 |
| The Spanish market, inevitably, is also among the losers. The Ibex is currently down 1.1%, but has recovered a little from its worst levels. | The Spanish market, inevitably, is also among the losers. The Ibex is currently down 1.1%, but has recovered a little from its worst levels. |
| 8.28am BST | 8.28am BST |
| 08:28 | 08:28 |
| It is no wonder investors are shying away from equities, says David Morrison, senior market strategist at SpreadCo: | It is no wonder investors are shying away from equities, says David Morrison, senior market strategist at SpreadCo: |
| European equities and US stock index futures have begun today’s session on the back foot. This follows yesterday’s sharp sell-off on Wall Street which saw the major indices log some of their biggest daily losses so far this year. | European equities and US stock index futures have begun today’s session on the back foot. This follows yesterday’s sharp sell-off on Wall Street which saw the major indices log some of their biggest daily losses so far this year. |
| The move mimics that from last week. Back then investors dumped equities after President Trump responded to North Korea’s threat to fire missiles towards Guam with a couple of bellicose tweets. | The move mimics that from last week. Back then investors dumped equities after President Trump responded to North Korea’s threat to fire missiles towards Guam with a couple of bellicose tweets. |
| This time round investors have a clutch of excuses for cutting their exposure to equities. Most immediately is the apparent melt-down of the Trump administration as policymakers and insiders rush to damn the president for his comments over the violence at Charlottesville. The concern is that Trump has managed to alienate so many people now that he will never garner the support to push through his promised agenda of tax cuts, regulatory reform and infrastructure spending. | This time round investors have a clutch of excuses for cutting their exposure to equities. Most immediately is the apparent melt-down of the Trump administration as policymakers and insiders rush to damn the president for his comments over the violence at Charlottesville. The concern is that Trump has managed to alienate so many people now that he will never garner the support to push through his promised agenda of tax cuts, regulatory reform and infrastructure spending. |
| Secondly, there are the Spanish terrorist atrocities to consider, something which unnerves confidence in the current febrile atmosphere. | Secondly, there are the Spanish terrorist atrocities to consider, something which unnerves confidence in the current febrile atmosphere. |
| Thirdly, there’s every chance that geopolitical tension builds again as the US and South Korea undertake military manoeuvres in the Pacific next week. | Thirdly, there’s every chance that geopolitical tension builds again as the US and South Korea undertake military manoeuvres in the Pacific next week. |
| Finally, the second quarter earnings season is drawing to a close with a raft of disappointing retail numbers. All-in-all, this seems like a good time to book profits, cut back one’s equity exposure and wait for a better opportunity to reinvest. | Finally, the second quarter earnings season is drawing to a close with a raft of disappointing retail numbers. All-in-all, this seems like a good time to book profits, cut back one’s equity exposure and wait for a better opportunity to reinvest. |
| 8.25am BST | 8.25am BST |
| 08:25 | 08:25 |
| Renewed worries about tourism in the wake of the Barcelona attacks have sent the European travel and leisure sector index down 1.4% in early trading. | Renewed worries about tourism in the wake of the Barcelona attacks have sent the European travel and leisure sector index down 1.4% in early trading. |
| 8.04am BST | 8.04am BST |
| 08:04 | 08:04 |
| European markets open lower with airlines among the losers | European markets open lower with airlines among the losers |
| Following the Barcelona attacks, markets have opened sharply lower. | Following the Barcelona attacks, markets have opened sharply lower. |
| The FTSE 100 is down 0.66%, with airlines easyJet and International Airlines Group leading the fallers on fears about the effect the attacks may have on tourism. | The FTSE 100 is down 0.66%, with airlines easyJet and International Airlines Group leading the fallers on fears about the effect the attacks may have on tourism. |
| Germany’s Dax is down 0.8%, France’s Cac 0.9% and Italy’s FTSE MIB 0.95% lower. | Germany’s Dax is down 0.8%, France’s Cac 0.9% and Italy’s FTSE MIB 0.95% lower. |
| Updated | Updated |
| at 8.07am BST | at 8.07am BST |
| 7.59am BST | 7.59am BST |
| 07:59 | 07:59 |
| Regulators give green light to Heineken purchase of Punch pubs | Regulators give green light to Heineken purchase of Punch pubs |
| Even this early in the day, Heineken directors may well be raising a glass after the Competition Commission gave the go-ahead to the company’s £403m purchase of 1,900 pubs from Punch Taverns. | Even this early in the day, Heineken directors may well be raising a glass after the Competition Commission gave the go-ahead to the company’s £403m purchase of 1,900 pubs from Punch Taverns. |
| There were concerns about the impact on the ranges of cider and beer supplied to pubs in 33 local areas, but the regulator has accepted Heineken’s proposals to sell pubs in the affected areas. | There were concerns about the impact on the ranges of cider and beer supplied to pubs in 33 local areas, but the regulator has accepted Heineken’s proposals to sell pubs in the affected areas. |
| 7.38am BST | 7.38am BST |
| 07:38 | 07:38 |
| Agenda: Investors take profits as uncertainty returns to markets | Agenda: Investors take profits as uncertainty returns to markets |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| The recent brief revival in stock markets has come to a grinding halt, as Donald Trump’s presidency descends into further confusion and the Barcelona attacks revive terrorism fears. | The recent brief revival in stock markets has come to a grinding halt, as Donald Trump’s presidency descends into further confusion and the Barcelona attacks revive terrorism fears. |
| In the US, Wall Street suffered its second biggest drop of the year, with the Dow Jones Industrial Average 1.24% lower - its largest one day fall in three months - the S&P 500 off 1.54% and Nasdaq Composite down nearly 2%. In Asia the Nikkei 225 was down more than 1% and the Hang Seng 0.5% lower. European markets are also expected to open down: | In the US, Wall Street suffered its second biggest drop of the year, with the Dow Jones Industrial Average 1.24% lower - its largest one day fall in three months - the S&P 500 off 1.54% and Nasdaq Composite down nearly 2%. In Asia the Nikkei 225 was down more than 1% and the Hang Seng 0.5% lower. European markets are also expected to open down: |
| Our European opening calls:$FTSE 7353 -0.48%$DAX 12140 -0.52%$CAC 5116 -0.59%$IBEX 10369 -0.72%$MIB 21669 -0.55% | Our European opening calls:$FTSE 7353 -0.48%$DAX 12140 -0.52%$CAC 5116 -0.59%$IBEX 10369 -0.72%$MIB 21669 -0.55% |
| The negative reaction to Trump’s response to the events in Charlotteville continued with a third business panel scrapped, casting more doubt on the president’s ability to push through any of his infrastructure or tax proposals. So investors were already pulling out of equities and into havens such as the Swiss franc, the yen and gold, and the slide intensified once the news of the Spanish attacks began filtering through. | The negative reaction to Trump’s response to the events in Charlotteville continued with a third business panel scrapped, casting more doubt on the president’s ability to push through any of his infrastructure or tax proposals. So investors were already pulling out of equities and into havens such as the Swiss franc, the yen and gold, and the slide intensified once the news of the Spanish attacks began filtering through. |
| On Trump, Michael Hewson, chief market analyst at CMC Markets UK, said: | On Trump, Michael Hewson, chief market analyst at CMC Markets UK, said: |
| For several months US markets have managed to give President Trump the benefit of the doubt with respect to the implementation of some form of fiscal or tax reform, particularly since he appeared to have the support of the business community, and for the most part, many in the Republican Party. | For several months US markets have managed to give President Trump the benefit of the doubt with respect to the implementation of some form of fiscal or tax reform, particularly since he appeared to have the support of the business community, and for the most part, many in the Republican Party. |
| This confidence appears to be slowly melting away given recent events that have taken place in the aftermath of Charlottesville, as US politics descends into parody. | This confidence appears to be slowly melting away given recent events that have taken place in the aftermath of Charlottesville, as US politics descends into parody. |
| The mass resignations from the President’s business advisory councils followed by their dissolution, and the subsequent heavy criticism from fellow Republicans appears to show a US President more isolated than at any time in his short Presidency....With support peeling away from all sides, investors appear to be coming to the conclusion that the US President is likely to find it even more difficult to achieve anything close to what was expected than was the case at the beginning of this year. This of course then begs the question as to whether he’ll be able to achieve anything at all, at a time when the political cost of continuing to support him rises with each passing day and each tweet storm. | The mass resignations from the President’s business advisory councils followed by their dissolution, and the subsequent heavy criticism from fellow Republicans appears to show a US President more isolated than at any time in his short Presidency....With support peeling away from all sides, investors appear to be coming to the conclusion that the US President is likely to find it even more difficult to achieve anything close to what was expected than was the case at the beginning of this year. This of course then begs the question as to whether he’ll be able to achieve anything at all, at a time when the political cost of continuing to support him rises with each passing day and each tweet storm. |
| Otherwise it is a fairly quiet end to the week in terms of economic news | Otherwise it is a fairly quiet end to the week in terms of economic news |
| Agenda: | Agenda: |
| 9.00 BST Eurozone current account | 9.00 BST Eurozone current account |
| 10.00 BST Eurozone construction output | 10.00 BST Eurozone construction output |
| 15.00 BST University of Michigan consumer confidence | 15.00 BST University of Michigan consumer confidence |
| 18.00 BST Baker Hughes weekly rig count | 18.00 BST Baker Hughes weekly rig count |
| Meanwhile our live blog on the Spanish attacks is here: | Meanwhile our live blog on the Spanish attacks is here: |
| Updated | Updated |
| at 7.48am BST | at 7.48am BST |