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You can find the current article at its original source at https://www.theguardian.com/business/live/2020/mar/05/flybe-collapses-into-administration-coronavirus-cost-ftse-stock-markets-business-live
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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) | |
| Stocks are falling again as fears of a global slowdown rage, and UK regional airline Flybe collapses | |
| After another busy day.... here’s our latest news story on the collapse of Flybe, by Gwyn Topham: | |
| More here: | |
| The coronavirus crisis has forced Starbucks to stop customers bringing in their own cups. | |
| The coffee chain is “temporarily suspending” the programme, which gives a small discount to encourage people to be environmentally friendly. | |
| Apparently you’ll still get the discount if you arrive with your own receptacle - but you’ll get the drink in a new plastic cup. | |
| The coronavirus outbreak has also struck commodity pricing agency S&P Global Platts, forcing staff to be sent home. | |
| Reuters has the story: | |
| There are also some anecdotal signs that fewer financial workers are heading into the City right now -- perhaps because banks are experimenting with home working? | |
| Business figures and politicians around the UK have warned that Flybe’s collapse could lead to severe consequences for regional economies following the loss of key air transport links. | Business figures and politicians around the UK have warned that Flybe’s collapse could lead to severe consequences for regional economies following the loss of key air transport links. |
| My colleagues Steven Morris and Joanna Partridge report: | My colleagues Steven Morris and Joanna Partridge report: |
| Back on Wall Street, the sell-off is gathering more momentum. | Back on Wall Street, the sell-off is gathering more momentum. |
| The Dow is now down 3.7%, or 1,010 points at 26,080. Before this crisis began, a 1,000-point move was very rare -- occurring only three times before. | The Dow is now down 3.7%, or 1,010 points at 26,080. Before this crisis began, a 1,000-point move was very rare -- occurring only three times before. |
| We’ve now seen four in the last fortnight (two up, two down), and could be on track for a 5th. | We’ve now seen four in the last fortnight (two up, two down), and could be on track for a 5th. |
| Volatility, of course, is up: | Volatility, of course, is up: |
| Outgoing Bank of England governor Mark Carney has pledged that global policymakers will deliver a “powerful and timely” response to the economic damage caused by the coronavirus. | Outgoing Bank of England governor Mark Carney has pledged that global policymakers will deliver a “powerful and timely” response to the economic damage caused by the coronavirus. |
| Speaking in London tonight, Carney tries to calm market concerns, saying the Bank is in talks with the UK Treasury (finance ministry) to plan its response. | Speaking in London tonight, Carney tries to calm market concerns, saying the Bank is in talks with the UK Treasury (finance ministry) to plan its response. |
| Carney declared: | Carney declared: |
| This is Carney’s last (scheduled) public speech before his departure. | This is Carney’s last (scheduled) public speech before his departure. |
| It’s got a suitably grand title-- The Grand Unifying Theory (and practice) of Macroprudential Policy -- and tries to explain how central bankers can ensure the financial system supports the economy. | It’s got a suitably grand title-- The Grand Unifying Theory (and practice) of Macroprudential Policy -- and tries to explain how central bankers can ensure the financial system supports the economy. |
| An important issue at this time in particular -- with Carney pointing out that financial crises occur roughly once a decade: | An important issue at this time in particular -- with Carney pointing out that financial crises occur roughly once a decade: |
| The Italian government has doubles its stimulus programme to protect its economy from the coronavirus. | The Italian government has doubles its stimulus programme to protect its economy from the coronavirus. |
| Ministers have announced that the plan now totals €7.5bn, up from €3.6bn. | Ministers have announced that the plan now totals €7.5bn, up from €3.6bn. |
| Prime minister Giuseppe Conte says the money will be available to help “families and businesses tackle this emergency which is not just a health one but also an economic one”. | Prime minister Giuseppe Conte says the money will be available to help “families and businesses tackle this emergency which is not just a health one but also an economic one”. |
| The boost comes as Italy shuts all its schools for several weeks, as my colleague Lorenzo Tondo explains: | The boost comes as Italy shuts all its schools for several weeks, as my colleague Lorenzo Tondo explains: |
| The collapse of Flybe today will be felt the most severely in outlying regions, where domestic flights are crucial lifeline for those travelling for work, writes my colleague Jessica Murray.Down in Cornwall, one 52-year-old who travels frequently to London and further afield for meetings, said losing the Flybe service would have a major impact.With four Flybe flights a day to Heathrow, it was possible to get to London and back in a day. | The collapse of Flybe today will be felt the most severely in outlying regions, where domestic flights are crucial lifeline for those travelling for work, writes my colleague Jessica Murray.Down in Cornwall, one 52-year-old who travels frequently to London and further afield for meetings, said losing the Flybe service would have a major impact.With four Flybe flights a day to Heathrow, it was possible to get to London and back in a day. |
| Meanwhile, David Eyes commutes to Edinburgh from Manchester every week, flying up on Monday morning and returning on Wednesday evening.He has booked his flights with Flybe up until the end of March, and still has no guarantees about whether he will be refunded.Eyes, a consultant in financial services, said: | Meanwhile, David Eyes commutes to Edinburgh from Manchester every week, flying up on Monday morning and returning on Wednesday evening.He has booked his flights with Flybe up until the end of March, and still has no guarantees about whether he will be refunded.Eyes, a consultant in financial services, said: |
| Holidaymakers have also been affected, with one unlucky hen party seeing their flights cancelled for a second time, after originally booking through Thomas Cook last year.Hannah, 27, is organising a trip to Disneyland at the end of March for her friend’s hen do, and after having to deal with cancelled flights twice, the party of 10 have now spent nearly £2,000 on Eurostar tickets to get to Paris.Hannah says: | Holidaymakers have also been affected, with one unlucky hen party seeing their flights cancelled for a second time, after originally booking through Thomas Cook last year.Hannah, 27, is organising a trip to Disneyland at the end of March for her friend’s hen do, and after having to deal with cancelled flights twice, the party of 10 have now spent nearly £2,000 on Eurostar tickets to get to Paris.Hannah says: |
| Now the group are keeping their fingers crossed that the Disneyland resort remains open as the coronavirus continues to spread throughout Europe. | Now the group are keeping their fingers crossed that the Disneyland resort remains open as the coronavirus continues to spread throughout Europe. |
| US hypermarket giant Walmart is restricting staff from travelling to conferences, trade shows and other events. | US hypermarket giant Walmart is restricting staff from travelling to conferences, trade shows and other events. |
| It is also restricting cross-border international travel to “business-critical trips” only (and they’ll require high-level approval), while domestic travel is only allowed if it’s essential. | It is also restricting cross-border international travel to “business-critical trips” only (and they’ll require high-level approval), while domestic travel is only allowed if it’s essential. |
| Even group meetings are being cut back, Marketwatch reports, with Walmart telling staff: | Even group meetings are being cut back, Marketwatch reports, with Walmart telling staff: |
| European stock markets have closed in the red, hit by coronavirus gloom. | European stock markets have closed in the red, hit by coronavirus gloom. |
| ITV was the top faller in London, down 12% after warning that advertising revenue would fall 10% in April due to a plunge in travel adverts. | ITV was the top faller in London, down 12% after warning that advertising revenue would fall 10% in April due to a plunge in travel adverts. |
| Cruise company Carnival and holiday firm TUI both tumbled 7.2%, with traders expecting much less demand for its services until Covid-19 is under control. | Cruise company Carnival and holiday firm TUI both tumbled 7.2%, with traders expecting much less demand for its services until Covid-19 is under control. |
| British Airway’s parent company, IAG, fell 5.3% after Flybe’s collapse showed the crisis facing airlines. IATA’s warning that a fifth of global revenues could be wiped out this year also drove its shares down. | British Airway’s parent company, IAG, fell 5.3% after Flybe’s collapse showed the crisis facing airlines. IATA’s warning that a fifth of global revenues could be wiped out this year also drove its shares down. |
| Here’s the damage. | Here’s the damage. |
| FTSE 100: down 110 points or 1.6% at 6705 | FTSE 100: down 110 points or 1.6% at 6705 |
| German DAX: down 182 points or 1.5% at 11,944 | German DAX: down 182 points or 1.5% at 11,944 |
| French CAC: down 103 points or 1.9% at 5,361 | French CAC: down 103 points or 1.9% at 5,361 |
| This leave the EU-wide Stoxx 600 slightly up on the week, but still 11% less than two weeks ago. | This leave the EU-wide Stoxx 600 slightly up on the week, but still 11% less than two weeks ago. |
| The steady increases in cases in Europe, the UK (now 115) and the US are alarming investors, as David Madden of CMC Markets explains: | The steady increases in cases in Europe, the UK (now 115) and the US are alarming investors, as David Madden of CMC Markets explains: |
| Getting back to Flybe’s collapse... there are concerns about the security of the airline staff’s pensions. | Getting back to Flybe’s collapse... there are concerns about the security of the airline staff’s pensions. |
| This is because the firm’s scheme, the British Regional Airlines Group (BRAG) pension scheme, is registered in the Isle of Man. That means it is not protected by the UK’s pension lifeboat, the Pension Protection Fund (PPF), following the airline’s collapse this morning (5 March). | This is because the firm’s scheme, the British Regional Airlines Group (BRAG) pension scheme, is registered in the Isle of Man. That means it is not protected by the UK’s pension lifeboat, the Pension Protection Fund (PPF), following the airline’s collapse this morning (5 March). |
| A PPF spokesperson told Pensions Age: | A PPF spokesperson told Pensions Age: |
| According to Pensions Age, the scheme has liabilities of £170m across 1,350 members, with an overall deficit of £11.6m as of November 2018. | According to Pensions Age, the scheme has liabilities of £170m across 1,350 members, with an overall deficit of £11.6m as of November 2018. |