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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
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| Dow Jones falls into bear market territory as sell-off continues – business live | Dow Jones falls into bear market territory as sell-off continues – business live |
| (32 minutes later) | |
| Disappointment over lack of action in Washington hits shares as Bank of England cuts interest rates | Disappointment over lack of action in Washington hits shares as Bank of England cuts interest rates |
| Over in São Paulo, Brazil’s Bovespa Index has slumped by more than 10% today. | |
| This triggered a circuit breaker, forcing trading to suspended for 30 minutes. | |
| The energy, consumer cyclical and mining sectors are leading the sell-off: | |
| With an hour’s trading to go, the Dow is sliding even further... down 6%, or 1504 points, at 23,513. | |
| That would certainly put the index into a bear market, if it closes there at 4pm New York time, or 8pm UK time. | |
| Democratic politicians are working on their own stimulus package, according to US political news site The Hill. | |
| Anything passed by the House (America’s lower chamber) would then go up to the Senate, which is controlled by the Republicans. | |
| However, there’s a problem.... both chambers are scheduled to hold a recess next week. So any economic relief legislation might not even reached Donald Trump’s desk until later in March. | |
| U.S. Treasury Secretary Steven Mnuchin dampened hopes of a rapid, major stimulus package earlier today -- another reason shares are under pressure. | |
| Mnuchin told lawmakers on Capitol Hill that a major economic stimulus package wouldn’t get through Congress quickly. So, it makes sense to start with a smaller measure designed to help small businesses and workers grappling with the coronavirus outbreak. | |
| Mnuchin told House Appropriations subcommittee hearing. | |
| Today’s slump has more than wiped out Tuesday’s gains, which followed Monday’s crash (the worst since 2008) | |
| Today’s rout on Wall Street is being driven by a handful of coronavirus fears. | Today’s rout on Wall Street is being driven by a handful of coronavirus fears. |
| 1) WHO’s decision to declare Covid-19 a pandemic is fuelling fears of a global recession | 1) WHO’s decision to declare Covid-19 a pandemic is fuelling fears of a global recession |
| 2) Doubts are building about whether the White House will deliver a stimulus package. Donald Trump’s pledge of a major package, including payroll tax cuts, seems illusive. | 2) Doubts are building about whether the White House will deliver a stimulus package. Donald Trump’s pledge of a major package, including payroll tax cuts, seems illusive. |
| AFP explains: | AFP explains: |
| Newsflash: The US stock market is on track to close in bear market territory. | Newsflash: The US stock market is on track to close in bear market territory. |
| The Dow is now 20% below its pre-crisis peak back in February; currently its down 5.5%, or 1,386 points, at 23,630. | The Dow is now 20% below its pre-crisis peak back in February; currently its down 5.5%, or 1,386 points, at 23,630. |
| Goldman Sach’s prediction that the bull market could end soon may be coming true before our eyes.... | Goldman Sach’s prediction that the bull market could end soon may be coming true before our eyes.... |
| Meanwhile (writes Rebecca Smithers) the insurance giant LV has announced that it is to stop selling travel insurance policies to new customers with immediate effect as a result of the coronavirus outbreak. | Meanwhile (writes Rebecca Smithers) the insurance giant LV has announced that it is to stop selling travel insurance policies to new customers with immediate effect as a result of the coronavirus outbreak. |
| LV insisting that the move is a temporary one, saying: | LV insisting that the move is a temporary one, saying: |
| We are awaiting a statement from the consumer group Which? | We are awaiting a statement from the consumer group Which? |
| 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. |