This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/business/live/2020/mar/11/financial-markets-coronavirus-fears-bank-of-england-slashes-interest-rates-business-live

The article has changed 27 times. There is an RSS feed of changes available.

Version 18 Version 19
FTSE 100 hits new four-year low despite emergency rate cut – business live FTSE 100 hits new four-year low despite emergency rate cut – business live
(32 minutes later)
Disappointment over lack of action in Washington hits shares as Bank of England cuts interest ratesDisappointment over lack of action in Washington hits shares as Bank of England cuts interest rates
The road to hell is paved with good intentions, and in his budget the chancellor, Rishi Sunak, headed off down the motorway towards climate catastrophe, all the while proclaiming his intention to protect the environment.“Over £27bn of tarmac,” he announced, for 4,000 miles of major new roads. In stark contrast, low-carbon transport was put in the slow lane, getting £1bn.Worse, Sunak flunked a golden opportunity to end the decade-long freeze on fuel duty that has pushed up traffic and pollution and suppressed bus and train travel. The oil price is now plummeting, but even if it had been raised drivers might not have seen any change in the price at the pump.Transport emissions are now the biggest contributor to the UK’s carbon emissions and they are rising; 90% come from the roads. Emissions from transport are a key reason the government is on track to miss its own legally binding carbon targets.The other key reason is the UK’s terribly energy inefficient buildings, which lose heat up to three times as quickly as homes in neighbouring countries. Making homes cleaner, cosier, and cheaper to heat, is a no-brainer. Yet there was not a single word on this in Sunak’s speech or the 125-page budget document.This failure really matters, with the UK hosting a crucial UN climate in just eight months’ time. The summit, COP26, in Glasgow, is a pledging party at which the world’s nations must offer much bigger emissions cuts to head off the climate crisis. The host needs to start the party with a splashy pledge, but Sunak just tossed in a crumpled fiver found in a back pocket.....
More here:
The S&P 500 index is also being kicked around again, down over 4%.The S&P 500 index is also being kicked around again, down over 4%.
Investors are clearly anxious about the White House’s resolve to tackle the coronavirus.....Investors are clearly anxious about the White House’s resolve to tackle the coronavirus.....
Stocks are continuing to lurch lower in New York, as the World Health Organization declares that Covid-19 is now a pandemic.Stocks are continuing to lurch lower in New York, as the World Health Organization declares that Covid-19 is now a pandemic.
WHO chief Tedros Adhanom Ghebreyesus told a news conference that he was deeply concerned by the spread and severity of coronavirus, and by the “alarming levels of inaction” in some countries.WHO chief Tedros Adhanom Ghebreyesus told a news conference that he was deeply concerned by the spread and severity of coronavirus, and by the “alarming levels of inaction” in some countries.
Tedros warned that the number of cases reported and number of countries affected ‘doesn’t tell the full story’.Tedros warned that the number of cases reported and number of countries affected ‘doesn’t tell the full story’.
This has triggered fresh selling on Wall Street (not that investors needed much of an excuse to ditch stocks).This has triggered fresh selling on Wall Street (not that investors needed much of an excuse to ditch stocks).
The Dow is now down 5%, or 1,259 points, at 23,758 points. Boeing is down 13%, after reporting earlier that it received more commercial aircraft cancellations than new orders in February.The Dow is now down 5%, or 1,259 points, at 23,758 points. Boeing is down 13%, after reporting earlier that it received more commercial aircraft cancellations than new orders in February.
Most UK stocks fell today, some heavily, despite the Bank of England’s emergency rate cut, and the government’s coronavirus stimulus programme.Most UK stocks fell today, some heavily, despite the Bank of England’s emergency rate cut, and the government’s coronavirus stimulus programme.
Just 18 members of the FTSE 100 rose, while 80 fell. Some of the usual suspects drove the rout, including airlines IAG and easyJet, and cruise operator Carnival.Just 18 members of the FTSE 100 rose, while 80 fell. Some of the usual suspects drove the rout, including airlines IAG and easyJet, and cruise operator Carnival.
Newsflash: Britain’s stock market has hit a new four-year low, as the coronavirus crisis rages.Newsflash: Britain’s stock market has hit a new four-year low, as the coronavirus crisis rages.
The FTSE 100 has closed down 83 points, or 1.4%, at 5876, after another torrid day.The FTSE 100 has closed down 83 points, or 1.4%, at 5876, after another torrid day.
That, I calculate, means it has lost 20% of its value since the current slump began two and a half weeks ago.That, I calculate, means it has lost 20% of its value since the current slump began two and a half weeks ago.
It’s a really jaw-dropping slump, confirming the old adage that markets go up the stairs, but down the elevator (with a bump!)It’s a really jaw-dropping slump, confirming the old adage that markets go up the stairs, but down the elevator (with a bump!)
European markets also ended the day lower, with Germany’s DAX losing 0.6%, and France’s CAC losing 0.7%.European markets also ended the day lower, with Germany’s DAX losing 0.6%, and France’s CAC losing 0.7%.
Big losers included Adidas (-9%) and Puma (-5%), after both sportswear firms reported that coronavirus was hurting sales.Big losers included Adidas (-9%) and Puma (-5%), after both sportswear firms reported that coronavirus was hurting sales.
Stockbroking firm AJ Bell has warned that it doesn’t know how much damage the coronavirus outbreak will have on its business.Stockbroking firm AJ Bell has warned that it doesn’t know how much damage the coronavirus outbreak will have on its business.
It has also pointed out that today’s UK interest rate cut will dent its revenues and profits (it will make less money from customer cash reserves).It has also pointed out that today’s UK interest rate cut will dent its revenues and profits (it will make less money from customer cash reserves).
AJ Bell told shareholders:AJ Bell told shareholders:
European stock markets are sinking into the red in late trading, as investors watch stocks slide on Wall Street.European stock markets are sinking into the red in late trading, as investors watch stocks slide on Wall Street.
The FTSE 100 is now down another 75 points, or 1.25%, to 5885 points -- just below Monday’s four-year low. Once again, the Footsie couldn’t hold onto its early morning rally.The FTSE 100 is now down another 75 points, or 1.25%, to 5885 points -- just below Monday’s four-year low. Once again, the Footsie couldn’t hold onto its early morning rally.
Big fallers include budget airline easyJet (-7.8%) and conference group Informa (-5%), as fears of a global recession ripple through trading floors again.Big fallers include budget airline easyJet (-7.8%) and conference group Informa (-5%), as fears of a global recession ripple through trading floors again.
A Barclays banker in London has tested positive for coronavirus.A Barclays banker in London has tested positive for coronavirus.
The employee was based at the 5 North Colonnade offices in Canary Wharf, which houses Barclays’ investment bank and is about a 5 minute walk from its headquarters.The employee was based at the 5 North Colonnade offices in Canary Wharf, which houses Barclays’ investment bank and is about a 5 minute walk from its headquarters.
The worker has been in self-quarantine since 9 March after learning they had been exposed to the virus.The worker has been in self-quarantine since 9 March after learning they had been exposed to the virus.
Barclays is doing a deep-clean of their desk and surrounding areas, while colleagues and clients who were in close contact with the employee were told to self-isolate.Barclays is doing a deep-clean of their desk and surrounding areas, while colleagues and clients who were in close contact with the employee were told to self-isolate.
However, the Guardian understands that the office has not been evacuated.However, the Guardian understands that the office has not been evacuated.
Barclays issued a statement, saying:Barclays issued a statement, saying:
It comes just days after a trader at Barclays’ New York offices tested positive for the coronavirus in Manhattan. They have been in self-quarantine since 3 March.It comes just days after a trader at Barclays’ New York offices tested positive for the coronavirus in Manhattan. They have been in self-quarantine since 3 March.
The Dow Jones industrial average is now down by 1,000 points. The Nasdaq has lost 3% and the S&P 500 has lost 3.3%.The Dow Jones industrial average is now down by 1,000 points. The Nasdaq has lost 3% and the S&P 500 has lost 3.3%.
A quick look at the S&P 500’s biggest fallers suggests that it’s the US energy sector that is taking much of the pummelling, alongside consumer-facing companies.A quick look at the S&P 500’s biggest fallers suggests that it’s the US energy sector that is taking much of the pummelling, alongside consumer-facing companies.
The US oil sector was one of the main targets of Russia, which thinks a price fall could knock out American shale companies (giving Russia more market share). And consumer spending for many companies will clearly take a hit if consumers are locked at home.The US oil sector was one of the main targets of Russia, which thinks a price fall could knock out American shale companies (giving Russia more market share). And consumer spending for many companies will clearly take a hit if consumers are locked at home.
Another notable mover: the mighty aircraft manufacturer Boeing is down by 9%, after saying it will draw down the full amount on a $13.8bn loan. It has already been under pressure because of the 737 Max crisis, so extra financial troubles could spell trouble.Another notable mover: the mighty aircraft manufacturer Boeing is down by 9%, after saying it will draw down the full amount on a $13.8bn loan. It has already been under pressure because of the 737 Max crisis, so extra financial troubles could spell trouble.
A bit more detail on Steve Mnuchin’s comments today, in a briefing with reporters.A bit more detail on Steve Mnuchin’s comments today, in a briefing with reporters.
The main thing he has mentioned so far is that hundreds of billions of dollars can be put into the US economy through deferred tax payments.The main thing he has mentioned so far is that hundreds of billions of dollars can be put into the US economy through deferred tax payments.
The impact of the virus was initially underestimated across the the world, he said. The US Treasury is coordinating internationally.The impact of the virus was initially underestimated across the the world, he said. The US Treasury is coordinating internationally.
Does that mean that the US will match the response of countries like the UK with a fiscal expansion?Does that mean that the US will match the response of countries like the UK with a fiscal expansion?
Just in: US regulators are relaxing regulations that have forced some airlines to run almost empty flights.Just in: US regulators are relaxing regulations that have forced some airlines to run almost empty flights.
The Federal Aviation Administration, part of the US Department of Transport, has announced it will waive use-it-or-lose-it rules that mean airlines must run flights to avoid losing slots at busy airports. It said:The Federal Aviation Administration, part of the US Department of Transport, has announced it will waive use-it-or-lose-it rules that mean airlines must run flights to avoid losing slots at busy airports. It said:
The main airports affected are New York’s John F. Kennedy (JFK) and LaGuardia airports, as well as Washington’s Ronald Reagan airport Chicago O’Hare, Newark Liberty, Los Angeles International (LAX), and San Francisco International will also have rules relaxed.The main airports affected are New York’s John F. Kennedy (JFK) and LaGuardia airports, as well as Washington’s Ronald Reagan airport Chicago O’Hare, Newark Liberty, Los Angeles International (LAX), and San Francisco International will also have rules relaxed.
Here’s some reaction to the economic aspects of the Rishi Sunak’s budget.Here’s some reaction to the economic aspects of the Rishi Sunak’s budget.
Sarah Carlson, a senior vice president at Moody’s, the influential ratings agency, said:Sarah Carlson, a senior vice president at Moody’s, the influential ratings agency, said:
John Hawksworth, chief economist at PwC, said:John Hawksworth, chief economist at PwC, said:
Public borrowing looks set to jump to about 3% of GDP this year, according to Samuel Tombs, chief UK economist at Pantheon Macroeconomics. He said:Public borrowing looks set to jump to about 3% of GDP this year, according to Samuel Tombs, chief UK economist at Pantheon Macroeconomics. He said:
The number of confirmed cases of coronavirus in the UK has risen to 456, up from 373 a day ago, according to the Department of Health.The number of confirmed cases of coronavirus in the UK has risen to 456, up from 373 a day ago, according to the Department of Health.
You can follow the spread of the infection here on our main coronavirus live blog:You can follow the spread of the infection here on our main coronavirus live blog:
US stock markets jumped last night with investors hoping for President Donald Trump to unleash a major fiscal response to the coronavirus outbreak. They now appear to be expressing their disappointment at the lack of action.US stock markets jumped last night with investors hoping for President Donald Trump to unleash a major fiscal response to the coronavirus outbreak. They now appear to be expressing their disappointment at the lack of action.
Even with central banks the world over bringing out their monetary bazookas, the hit to the economy means that it’s fiscal spending that is in focus.Even with central banks the world over bringing out their monetary bazookas, the hit to the economy means that it’s fiscal spending that is in focus.
There are some snaps coming through on the wires from US treasury secretary Steven Mnuchin: he says that Trump is focused on a broad strategy for a stimulus package.There are some snaps coming through on the wires from US treasury secretary Steven Mnuchin: he says that Trump is focused on a broad strategy for a stimulus package.
Sunak has just finished his budget – after one hour and three minutes.Sunak has just finished his budget – after one hour and three minutes.
Sterling has ended up after the budget... almost exactly where it was before. It’s a gain of 0.25% for the day to $1.2940.Sterling has ended up after the budget... almost exactly where it was before. It’s a gain of 0.25% for the day to $1.2940.
UK government bond yields have actually fallen – not the response that you would usually expect after a relatively big fiscal expansion. The 10-year gilt is at 0.26%, having hovered around 0.3% as Sunak started speaking. (Bond yields fall as prices rise when investors buy more debt.)UK government bond yields have actually fallen – not the response that you would usually expect after a relatively big fiscal expansion. The 10-year gilt is at 0.26%, having hovered around 0.3% as Sunak started speaking. (Bond yields fall as prices rise when investors buy more debt.)
There is still a lot more to come on the political response which you can follow here:There is still a lot more to come on the political response which you can follow here:
The S&P 500 is down by 2.6% at the opening bell to hit 2,808 points, while the Dow Jones industrial average has fallen by 2.7% to 24,337 points – a 671 point fall. The Nasdaq lost 2.4%.The S&P 500 is down by 2.6% at the opening bell to hit 2,808 points, while the Dow Jones industrial average has fallen by 2.7% to 24,337 points – a 671 point fall. The Nasdaq lost 2.4%.
Lufthansa has just announced thousands of flight cancellations in response to the coronavirus, covering the period from 29 March to 24 April.Lufthansa has just announced thousands of flight cancellations in response to the coronavirus, covering the period from 29 March to 24 April.
The German flag-carrier had already said it would cancel as many as half its flights.The German flag-carrier had already said it would cancel as many as half its flights.
Sterling is now flat for the day against the dollar – possibly a reaction to a budget that looks pretty expansionary on the fiscal front.Sterling is now flat for the day against the dollar – possibly a reaction to a budget that looks pretty expansionary on the fiscal front.
A pound now buys $1.292 against the US dollar, a gain of 0.07%.A pound now buys $1.292 against the US dollar, a gain of 0.07%.