This article is from the source 'bbc' 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.bbc.co.uk/news/business-51829852
The article has changed 20 times. There is an RSS feed of changes available.
| Version 17 | Version 18 |
|---|---|
| Coronavirus: UK shares suffer worst day since 1987 | Coronavirus: UK shares suffer worst day since 1987 |
| (32 minutes later) | |
| Shares around the world have plunged as investors fear the spread of the coronavirus will destroy economic growth with government action unable to arrest the decline. | Shares around the world have plunged as investors fear the spread of the coronavirus will destroy economic growth with government action unable to arrest the decline. |
| The main UK index dropped more than 10% in its worst day since 1987. | The main UK index dropped more than 10% in its worst day since 1987. |
| But losses in the US eased after the Federal Reserve pledged to pump money into the financial system. | But losses in the US eased after the Federal Reserve pledged to pump money into the financial system. |
| At the start of US trading, falling shares had triggered an automatic temporary suspension in trading. | At the start of US trading, falling shares had triggered an automatic temporary suspension in trading. |
| When trade resumed, shares continued to fall, following European markets lower. | When trade resumed, shares continued to fall, following European markets lower. |
| The Dow dropped more than 9% at one point, while losses on the UK's FTSE 100 wiped some £160.4bn off the market. | The Dow dropped more than 9% at one point, while losses on the UK's FTSE 100 wiped some £160.4bn off the market. |
| "We can call this a market crash - particularly given speed and sharpness, as well as the size of the declines," said Supriya Menon, senior multi-asset strategist at Pictet Asset Management. | "We can call this a market crash - particularly given speed and sharpness, as well as the size of the declines," said Supriya Menon, senior multi-asset strategist at Pictet Asset Management. |
| She added: "The question is whether this will cause a recession." | She added: "The question is whether this will cause a recession." |
| The initial declines came after the US restricted travel from mainland Europe temporarily. | The initial declines came after the US restricted travel from mainland Europe temporarily. |
| Losses on European indexes accelerated after the eurozone's central bank failed to cut interest rates. | Losses on European indexes accelerated after the eurozone's central bank failed to cut interest rates. |
| The New York branch of the Federal Reserve also said it was pumping $1.5tr into the financial system, offering increased overnight loans and expanding its asset purchases. The announcement came after European markets had closed but helped to stabilise US losses. | |
| Rate cuts by the US central bank last week and the Bank of England on Wednesday appear to have done little to soothe investors, however. | Rate cuts by the US central bank last week and the Bank of England on Wednesday appear to have done little to soothe investors, however. |
| "What we really need is some huge confidence that this isn't going to cause the kind of stress and horrible loss of life in Italy everywhere else in the world," said former Goldman Sachs chief economist Lord Jim O'Neill. | "What we really need is some huge confidence that this isn't going to cause the kind of stress and horrible loss of life in Italy everywhere else in the world," said former Goldman Sachs chief economist Lord Jim O'Neill. |
| Stocks in Asia also saw big falls earlier, with Japan's benchmark Nikkei 225 index closing 4.4% lower. | Stocks in Asia also saw big falls earlier, with Japan's benchmark Nikkei 225 index closing 4.4% lower. |
| In the UK, every single share in the FTSE 100 index was trading lower. Panicked selling also led to halts in trading on Brazilian exchanges. | In the UK, every single share in the FTSE 100 index was trading lower. Panicked selling also led to halts in trading on Brazilian exchanges. |
| Travel companies saw some of the biggest falls globally, driven by US President Donald Trump's announcement of a 30-day ban on travellers from 26 European countries. | Travel companies saw some of the biggest falls globally, driven by US President Donald Trump's announcement of a 30-day ban on travellers from 26 European countries. |
| Shares in Delta Air Lines and United Airlines dropped more than 14%. In the UK, airline group IAG was down more than 15% and Tui fell 17%. | Shares in Delta Air Lines and United Airlines dropped more than 14%. In the UK, airline group IAG was down more than 15% and Tui fell 17%. |
| Other companies warning on the impact of Covid-19 on Thursday included: | Other companies warning on the impact of Covid-19 on Thursday included: |
| Oil prices also fell, with Brent crude down more than 7% at about $33 a barrel. | Oil prices also fell, with Brent crude down more than 7% at about $33 a barrel. |
| On the floor of the New York Stock Exchange, tensions were high. Some traders were speculating the tumbles could trigger a second trading suspension - something that has never happened, not even during the financial crisis. | On the floor of the New York Stock Exchange, tensions were high. Some traders were speculating the tumbles could trigger a second trading suspension - something that has never happened, not even during the financial crisis. |
| Investors are waiting to see what kind of economic relief the US government will unveil. | Investors are waiting to see what kind of economic relief the US government will unveil. |
| In a presidential address on Wednesday, Mr Trump said the government would extend deadlines for tax payments for those affected, increase loans to small businesses and provide financial relief for US workers who are ill, quarantined or caring for others due to the illness. | In a presidential address on Wednesday, Mr Trump said the government would extend deadlines for tax payments for those affected, increase loans to small businesses and provide financial relief for US workers who are ill, quarantined or caring for others due to the illness. |
| But Republicans and Democrats in Congress appear at odds over additional steps while Mr Trump's favoured approach - a tax cut for workers - has failed to garner widespread support. | But Republicans and Democrats in Congress appear at odds over additional steps while Mr Trump's favoured approach - a tax cut for workers - has failed to garner widespread support. |
| Michael Hewson, chief market analyst at CMC Market, said financial markets reacted badly to the Presidential address, as the new measures "don't appear to go far enough". | Michael Hewson, chief market analyst at CMC Market, said financial markets reacted badly to the Presidential address, as the new measures "don't appear to go far enough". |
| Why should I care if stock markets fall? | Why should I care if stock markets fall? |
| Many people's initial reaction to "the markets" is that they are not directly affected, because they do not invest money. | Many people's initial reaction to "the markets" is that they are not directly affected, because they do not invest money. |
| Yet there are millions of people with a pension - either private or through work - who will see their savings (in what is known as a defined contribution pension) invested by pension schemes. The value of their savings pot is influenced by the performance of these investments. | Yet there are millions of people with a pension - either private or through work - who will see their savings (in what is known as a defined contribution pension) invested by pension schemes. The value of their savings pot is influenced by the performance of these investments. |
| So big rises or falls can affect your pension, but the advice is to remember that pension savings, like any investments, are usually a long-term bet. | So big rises or falls can affect your pension, but the advice is to remember that pension savings, like any investments, are usually a long-term bet. |
| Read more here. | Read more here. |
| The Western world's three largest central banks have now pitted their collective firepower against the economic chill caused by the coronavirus - to little effect. | The Western world's three largest central banks have now pitted their collective firepower against the economic chill caused by the coronavirus - to little effect. |
| Stock markets continue to slide. The FTSE 100 has had its worst day since Black Monday in October 1987. | Stock markets continue to slide. The FTSE 100 has had its worst day since Black Monday in October 1987. |
| Observers again might wonder what new information is spooking investors, given that central banks have in the last 10 days done their best to halt the slide. In truth, there is little new - most traders already knew that the virus is likely to cause significant economic disruption likely to push most Western economies into recession. | Observers again might wonder what new information is spooking investors, given that central banks have in the last 10 days done their best to halt the slide. In truth, there is little new - most traders already knew that the virus is likely to cause significant economic disruption likely to push most Western economies into recession. |
| What may have spooked them again is President Donald Trump's decision to stop most travel between continental Europe and the United States - a big enough factor in itself, but more importantly, the manner in which it was done. There was no consultation, and Mr Trump looked uncharacteristically uncertain, as if he, too, had finally been panicked by the virus. | What may have spooked them again is President Donald Trump's decision to stop most travel between continental Europe and the United States - a big enough factor in itself, but more importantly, the manner in which it was done. There was no consultation, and Mr Trump looked uncharacteristically uncertain, as if he, too, had finally been panicked by the virus. |
| There is also a small, but telling detail - Mr Trump first said the ban would apply to cargo flights, but then corrected himself to say it would not. A big proportion of cargo, however, is carried in the belly holds of passenger aircraft. If there are no passenger flights, there will be much less cargo, an enormous disruption to exporters and manufacturers on both sides of the Atlantic. | There is also a small, but telling detail - Mr Trump first said the ban would apply to cargo flights, but then corrected himself to say it would not. A big proportion of cargo, however, is carried in the belly holds of passenger aircraft. If there are no passenger flights, there will be much less cargo, an enormous disruption to exporters and manufacturers on both sides of the Atlantic. |
| What are your experiences relating to the coronavirus outbreak? Share your experiences by emailing haveyoursay@bbc.co.uk. | What are your experiences relating to the coronavirus outbreak? Share your experiences by emailing haveyoursay@bbc.co.uk. |
| Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: | Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: |
| Or use the form below | Or use the form below |