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| Coronavirus crisis drags down Flybe, as Wall Street slides again – business live | Coronavirus crisis drags down Flybe, as Wall Street slides again – business live |
| (32 minutes later) | |
| The coronavirus’s grip on the UK economy deepens as regional airline Flybe collapses, and experts fear others will follow | The coronavirus’s grip on the UK economy deepens as regional airline Flybe collapses, and experts fear others will follow |
| The market turmoil has provided one benefit for Americans - mortgages rates are now their lowest ever. | |
| Associated Press explains: | |
| Capital Economics have had a stab at estimating the impact of coronavirus on the US economy. | Capital Economics have had a stab at estimating the impact of coronavirus on the US economy. |
| They freely admit it’s a “finger in the air” exercise, as we simply don’t know how far the virus will spread. And they’ve come up with two scenarios - one rather more alarming than the other. | They freely admit it’s a “finger in the air” exercise, as we simply don’t know how far the virus will spread. And they’ve come up with two scenarios - one rather more alarming than the other. |
| Their current working assumption is still that the number of coronavirus cases in the US is restricted to the low tens of thousands (out of 325m people), and drops off by the summer. That would only knock 0.2% off US growth this year. | Their current working assumption is still that the number of coronavirus cases in the US is restricted to the low tens of thousands (out of 325m people), and drops off by the summer. That would only knock 0.2% off US growth this year. |
| But....in a worse-case scenario that resembles past pandemics, up to one-third of the population could eventually become infected, with the disruption lasting for closer to 12 month. | But....in a worse-case scenario that resembles past pandemics, up to one-third of the population could eventually become infected, with the disruption lasting for closer to 12 month. |
| And in that severe scenario, they estimate that GDP would fall by 3.0% over that year -- a painful downturn. | And in that severe scenario, they estimate that GDP would fall by 3.0% over that year -- a painful downturn. |
| Today’s selloff means the Dow Jones industrial average is 9% below its levels on 21 February, before the coronavirus selloff began. | Today’s selloff means the Dow Jones industrial average is 9% below its levels on 21 February, before the coronavirus selloff began. |
| It’s still up on the week, following surges on Monday and Wednesday. Those gains appeared to be driven by hopes of stimulus moves, and relief that Joe Biden did so well on Super Tuesday (he’s less of a threat to Wall Street than Bernie Sanders or Elizabeth Warren). | It’s still up on the week, following surges on Monday and Wednesday. Those gains appeared to be driven by hopes of stimulus moves, and relief that Joe Biden did so well on Super Tuesday (he’s less of a threat to Wall Street than Bernie Sanders or Elizabeth Warren). |
| Shares in major cruise operators are also sliding: | Shares in major cruise operators are also sliding: |
| Every member of the Dow is falling. | Every member of the Dow is falling. |
| Financial stocks are being hit by the prospect of a fall in US growth, with American Express down 4%, JP Morgan losing 3.8% and Goldman down 3.1%. | Financial stocks are being hit by the prospect of a fall in US growth, with American Express down 4%, JP Morgan losing 3.8% and Goldman down 3.1%. |
| Boeing has lost 3.45%, as a slump in airline revenues is going to hurt demand for new planes. | Boeing has lost 3.45%, as a slump in airline revenues is going to hurt demand for new planes. |
| Consumer-focused companies are also being hit. Nike are down 3.1%; it would suffer from a drop in retail spending. Media company Walt Disney has lost 3.3% | Consumer-focused companies are also being hit. Nike are down 3.1%; it would suffer from a drop in retail spending. Media company Walt Disney has lost 3.3% |
| Newsflash: Stocks are tumbling on Wall Street at the start of trading, as fears of a global recession sweep the markets again. | Newsflash: Stocks are tumbling on Wall Street at the start of trading, as fears of a global recession sweep the markets again. |
| Another very nervy session has begun with a wave of sell-orders. This has driven the Dow Jones industrial average down by 709 points, or over 2.6%, to 26,381. | Another very nervy session has begun with a wave of sell-orders. This has driven the Dow Jones industrial average down by 709 points, or over 2.6%, to 26,381. |
| That’s wipes out two-thirds of yesterday’s rally, and sends New York stocks back towards the lows seen last week. | That’s wipes out two-thirds of yesterday’s rally, and sends New York stocks back towards the lows seen last week. |
| The S&P 500 is taking a buffeting too, down 71 points or 2.2% at 3,058. | The S&P 500 is taking a buffeting too, down 71 points or 2.2% at 3,058. |
| Airline stocks are leading the selloff, following IATA’s grim warning that the coronavirus could knock $113bn of global revenues this year. | Airline stocks are leading the selloff, following IATA’s grim warning that the coronavirus could knock $113bn of global revenues this year. |
| Some Flybe customers should be able to recover the cost of cancelled flights -- but they’ll still be hit in the pocket. | Some Flybe customers should be able to recover the cost of cancelled flights -- but they’ll still be hit in the pocket. |
| My colleague Miles Brignall explains your rights: | My colleague Miles Brignall explains your rights: |
| Cinema operator Cineworld has also been hit by the coronavirus crisis. | Cinema operator Cineworld has also been hit by the coronavirus crisis. |
| Shares in Cineworld have slumped by 17% so far today, to a near seven-year low, as the Covid-19 virus threatens to keep people out of its seats. | Shares in Cineworld have slumped by 17% so far today, to a near seven-year low, as the Covid-19 virus threatens to keep people out of its seats. |
| The delay of the next James Bond film, from April to November, is clearly a major blow to Cineworld, as my colleague Benjamin Lee explains: | The delay of the next James Bond film, from April to November, is clearly a major blow to Cineworld, as my colleague Benjamin Lee explains: |
| Just in. Britain’s train operators have agreed to provide free travel to Flybe staff and customers who are unable to travel over the next week (as the Caledonian Sleeper also pledged earlier). | Just in. Britain’s train operators have agreed to provide free travel to Flybe staff and customers who are unable to travel over the next week (as the Caledonian Sleeper also pledged earlier). |
| Robert Nisbet, Director of Nations and Regions at the Rail Delivery Group, on behalf of train operators, says: | Robert Nisbet, Director of Nations and Regions at the Rail Delivery Group, on behalf of train operators, says: |
| The threat of a global recession has forced the Organisation of Petroleum Exporting Countries to agree the deepest oil production cuts since the global financial crisis in 2008. | The threat of a global recession has forced the Organisation of Petroleum Exporting Countries to agree the deepest oil production cuts since the global financial crisis in 2008. |
| The oil cartel said Covid-19 could halve the world’s expected oil demand growth for the first half of this year. | The oil cartel said Covid-19 could halve the world’s expected oil demand growth for the first half of this year. |
| In response it plans to deepen its existing production cuts of 2.1 million barrels of oil a day by another 1.5 million barrels, or 3.6% of global oil supplies, from next month. | In response it plans to deepen its existing production cuts of 2.1 million barrels of oil a day by another 1.5 million barrels, or 3.6% of global oil supplies, from next month. |
| Opec will take responsibility for cutting 1 million barrels of oil a day, and expects its allies in the Opec+ group, led by Russia, to cut the remaining 500,000 barrels from their combined oil production. Opec+ is expected to give its verdict on the plan tomorrow. | Opec will take responsibility for cutting 1 million barrels of oil a day, and expects its allies in the Opec+ group, led by Russia, to cut the remaining 500,000 barrels from their combined oil production. Opec+ is expected to give its verdict on the plan tomorrow. |
| The proposed cuts are the deepest since Opec agreed to hold back around 4.2 million barrels of oil a day during the global financial crisis. | The proposed cuts are the deepest since Opec agreed to hold back around 4.2 million barrels of oil a day during the global financial crisis. |
| Jeff Currie, Goldman Sachs’ head of global commodities research, told Bloomberg that the plans might be too little too late to prop up oil prices | Jeff Currie, Goldman Sachs’ head of global commodities research, told Bloomberg that the plans might be too little too late to prop up oil prices |
| Overnight rail service Caledonian Sleeper is rather decently offering free travel for the next week to Flybe customers stranded by its collapse. | Overnight rail service Caledonian Sleeper is rather decently offering free travel for the next week to Flybe customers stranded by its collapse. |
| They can secure a seat on either the Lowlander route (which runs from Glasgow and Edinburgh to London), or the Highlander (which links Aberdeen, Fort William, Inverness and London). | They can secure a seat on either the Lowlander route (which runs from Glasgow and Edinburgh to London), or the Highlander (which links Aberdeen, Fort William, Inverness and London). |
| Ryan Flaherty, Serco’s Managing Director for Caledonian Sleeper, says: | Ryan Flaherty, Serco’s Managing Director for Caledonian Sleeper, says: |
| It’s best to phone their Guest Service Centre [0330 060 0500], rather than just turning up at the station. | It’s best to phone their Guest Service Centre [0330 060 0500], rather than just turning up at the station. |
| The Sleeper’s not as fast as flying -- although much better for the environment -- and the service has been hit by teething problems. The ‘hotel on wheels’ relaunch last April was something of a disaster, with delays, booking errors, a water leak, and problems serving food to customers. But on the upside, the Guardian’s Gwyn Topham was accidentally served three ‘delicious’ game pies.... | The Sleeper’s not as fast as flying -- although much better for the environment -- and the service has been hit by teething problems. The ‘hotel on wheels’ relaunch last April was something of a disaster, with delays, booking errors, a water leak, and problems serving food to customers. But on the upside, the Guardian’s Gwyn Topham was accidentally served three ‘delicious’ game pies.... |
| HSBC has confirmed that an employee has tested positive for the coronavirus, and that around 100 colleagues from its research department have been sent home while the office is deep-cleaned. | HSBC has confirmed that an employee has tested positive for the coronavirus, and that around 100 colleagues from its research department have been sent home while the office is deep-cleaned. |
| A spokesperson says: | A spokesperson says: |
| Back at the British Chambers of Commerce annual meeting today, health secretary Matt Hancock said he was working with the Department for Work and Pensions on a way to extend sickness benefit to all workers. | Back at the British Chambers of Commerce annual meeting today, health secretary Matt Hancock said he was working with the Department for Work and Pensions on a way to extend sickness benefit to all workers. |
| That could including contract workers and the self employed, my colleague Phillip Inman reports. | That could including contract workers and the self employed, my colleague Phillip Inman reports. |
| Asked about the issue, Hancock said. | Asked about the issue, Hancock said. |
| But the situation was not an easy one to resolve and talks were ongoing he added. | But the situation was not an easy one to resolve and talks were ongoing he added. |
| Yesterday, prime minister Boris Johnson said sick pay would be paid from day one -- but that won’t benefit the self-employed, gig economy workers, or some on low pay. | Yesterday, prime minister Boris Johnson said sick pay would be paid from day one -- but that won’t benefit the self-employed, gig economy workers, or some on low pay. |
| Earlier, the CBI said the government should extend Statutory Sick Pay (SSP) to all workers (e.g. agency staff and others on flexible or zero-hours contracts) who self-isolate themselves in accordance with public health guidance. | Earlier, the CBI said the government should extend Statutory Sick Pay (SSP) to all workers (e.g. agency staff and others on flexible or zero-hours contracts) who self-isolate themselves in accordance with public health guidance. |
| Among its demands were: | Among its demands were: |
| Clarifying in law that being unable to work because you’re self-isolating to comply with public health guidance - even if you are otherwise healthy - entitles a worker to statutory sick pay | Clarifying in law that being unable to work because you’re self-isolating to comply with public health guidance - even if you are otherwise healthy - entitles a worker to statutory sick pay |
| Clarifying that workers who are following public health advice on Coronavirus are entitled to SSP even if they don’t have a GP’s ‘fit note’ | Clarifying that workers who are following public health advice on Coronavirus are entitled to SSP even if they don’t have a GP’s ‘fit note’ |
| Removing the need to earn over £118 a week to qualify for SSP, which is unfair to part-time employees. The Government proposed this in a 2019 consultation - which the CBI supported - and these plans should now accelerate | Removing the need to earn over £118 a week to qualify for SSP, which is unfair to part-time employees. The Government proposed this in a 2019 consultation - which the CBI supported - and these plans should now accelerate |
| Introducing emergency relief for business – especially small businesses – if the total cost of sick pay becomes unsustainable. Small businesses may be particularly susceptible to cash-flow problems meaning that prompt reimbursement will be key to their ability to continue supporting staff. | Introducing emergency relief for business – especially small businesses – if the total cost of sick pay becomes unsustainable. Small businesses may be particularly susceptible to cash-flow problems meaning that prompt reimbursement will be key to their ability to continue supporting staff. |
| The Advertising Standards Authority has also also been clamping down on “alarmist” and “scaremongering” marketing for face masks, which could exploit people’s fears over the coronavirus outbreak. | The Advertising Standards Authority has also also been clamping down on “alarmist” and “scaremongering” marketing for face masks, which could exploit people’s fears over the coronavirus outbreak. |
| Our science editor Ian Sample explained yesterday: | Our science editor Ian Sample explained yesterday: |
| Here’s an example of why the CMA are clamping down on coronavirus-related products: | Here’s an example of why the CMA are clamping down on coronavirus-related products: |
| Just in: Britain’s competitions watchdog has warned retailers not to hike prices, or make misleading claims, to exploit customers during the coronavirus outbreak. | Just in: Britain’s competitions watchdog has warned retailers not to hike prices, or make misleading claims, to exploit customers during the coronavirus outbreak. |
| The Competition and Markets Authority says companies who charging excessive prices or making misleading claims about the efficacy of protective equipment may be breaking the law. | The Competition and Markets Authority says companies who charging excessive prices or making misleading claims about the efficacy of protective equipment may be breaking the law. |
| We will take “direct enforcement action” where necessary, the CMA adds menacingly, as it tries to prevent price-gouging, with many healthcare and cleaning products in short supply. | We will take “direct enforcement action” where necessary, the CMA adds menacingly, as it tries to prevent price-gouging, with many healthcare and cleaning products in short supply. |
| The CMA is also assessing whether it should advise Government to consider taking direct action to regulate prices. | The CMA is also assessing whether it should advise Government to consider taking direct action to regulate prices. |
| CMA Chairman Lord Tyrie says anyone trying to rip off customers should stop: | CMA Chairman Lord Tyrie says anyone trying to rip off customers should stop: |
| The warning also applies to online shopping -- including anyone offering, say, hand sanitisers or face masks on Amazon (where prices of some items have soared several hundred percent). | The warning also applies to online shopping -- including anyone offering, say, hand sanitisers or face masks on Amazon (where prices of some items have soared several hundred percent). |
| CMA Chief Executive Andrea Coscelli explains: | CMA Chief Executive Andrea Coscelli explains: |
| Here’s our news story about HSBC’s Covid-19 infection: | Here’s our news story about HSBC’s Covid-19 infection: |