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You can find the current article at its original source at https://www.theguardian.com/business/live/2020/mar/12/stock-markets-tumble-trump-europe-travel-ban-ecb-christine-lagarde-business-live
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| Stock markets tumble as Trump's Europe travel ban shocks investors - business live | Stock markets tumble as Trump's Europe travel ban shocks investors - business live |
| (31 minutes later) | |
| Rolling coverage of the latest economic and financial news, as world stock markets plunge again | Rolling coverage of the latest economic and financial news, as world stock markets plunge again |
| Bitcoin is tumbling too. | |
| The crypto-currency has slumped from $7,859 last night to around $6,600 as I type, a drop of 15%. Trading is extremely volatile. | |
| It appears to be suffering from the coronavirus pandemic, as people try to get hold of cash (perhaps to cover losses on other investments) | |
| Richard Hunter, Head of Markets at interactive investor, warns that Wall Street is on track for another plunge in three hours time: | |
| The number of brave souls trying to snap up shares, hoping we’re near the bottom of the slump, is falling too: | |
| Warnings about corporate debt levels are coming home to roost en masse thanks to the coronavirus, flags up economics professor Nouriel Roubini: | Warnings about corporate debt levels are coming home to roost en masse thanks to the coronavirus, flags up economics professor Nouriel Roubini: |
| After over two hours of frenzied trading, European markets are still a mess - trading at their lowest levels since 2016. | After over two hours of frenzied trading, European markets are still a mess - trading at their lowest levels since 2016. |
| In London, the FTSE 100 is still down over 5%, having briefly hit its lowest level since 2012 this morning. That wipes another £80-odd billion off the index, pushing its coronavirus crisis losses over £450bn. | In London, the FTSE 100 is still down over 5%, having briefly hit its lowest level since 2012 this morning. That wipes another £80-odd billion off the index, pushing its coronavirus crisis losses over £450bn. |
| The top faller on the Footsie is now betting firm Flutter, after rival Betway was hit with an £11.6m penalty for taking stolen money from its VIP customers. | The top faller on the Footsie is now betting firm Flutter, after rival Betway was hit with an £11.6m penalty for taking stolen money from its VIP customers. |
| But otherwise, the top fallers are companies particularly exposed to president Trump’s travel ban - or the prospect of tighter movement controls in the UK. | But otherwise, the top fallers are companies particularly exposed to president Trump’s travel ban - or the prospect of tighter movement controls in the UK. |
| Rolls-Royce, which makes engines for the world’s aeroplane manufacturers, are down 12.5%. Holiday firm TUI are down 12%, with the summer booking season looking a complete washout. Cruise operator Carnival are down 9.9%. Whitbread, which runs the UK Premier Inn hotel chain, has lost 10.7% - as companies ban staff from attending conferences. | Rolls-Royce, which makes engines for the world’s aeroplane manufacturers, are down 12.5%. Holiday firm TUI are down 12%, with the summer booking season looking a complete washout. Cruise operator Carnival are down 9.9%. Whitbread, which runs the UK Premier Inn hotel chain, has lost 10.7% - as companies ban staff from attending conferences. |
| In Frankfurt, car maker Daimler, airline Lufthansa and Deutsche Bank have all lost 8% this morning. | In Frankfurt, car maker Daimler, airline Lufthansa and Deutsche Bank have all lost 8% this morning. |
| On the Paris market, steelmaker ArcelorMittal are down 9%, with carmaker Renault and airline manufacturer Airbus losing 8%. | On the Paris market, steelmaker ArcelorMittal are down 9%, with carmaker Renault and airline manufacturer Airbus losing 8%. |
| Stoxx 600: down 18 points or 5.5% at 315 | Stoxx 600: down 18 points or 5.5% at 315 |
| FTSE 100: down 320 points or 5.4% at 5558. | FTSE 100: down 320 points or 5.4% at 5558. |
| German DAX: down 553 points or 5.3% at 9,885 | German DAX: down 553 points or 5.3% at 9,885 |
| French CAC: down 251 points or 5.5% at 4,358 | French CAC: down 251 points or 5.5% at 4,358 |
| Italy’s FTSE MIB: down 983 points or 5.5% at 16,943 | Italy’s FTSE MIB: down 983 points or 5.5% at 16,943 |
| Spanish IBEX: down 440 points or 5.9% at 6,995 | Spanish IBEX: down 440 points or 5.9% at 6,995 |
| The US travel ban, and Italy’s increasingly severe lockdown, are triggering the rout, as analyst Marios Hadjikyriacos of City trading firm XM explains: | The US travel ban, and Italy’s increasingly severe lockdown, are triggering the rout, as analyst Marios Hadjikyriacos of City trading firm XM explains: |
| British train and bus operator Go-Ahead Group was warned its profits could be hurt by coronavirus (although there’s no real damage yet). | British train and bus operator Go-Ahead Group was warned its profits could be hurt by coronavirus (although there’s no real damage yet). |
| Reuters has the details: | Reuters has the details: |
| The market slump shows some investors are pricing in a major downturn, a lockdown of US cities, and a “severe credit crunch”, say analysts at Nomura: | The market slump shows some investors are pricing in a major downturn, a lockdown of US cities, and a “severe credit crunch”, say analysts at Nomura: |
| They also believe further losses could follow, as investors continue to ditch riskier assets: | They also believe further losses could follow, as investors continue to ditch riskier assets: |
| Stock markets are capitulating in the face of the coronavirus’s threat to the global economy (and Trump’s response), says Russ Mould, investment director at AJ Bell. | Stock markets are capitulating in the face of the coronavirus’s threat to the global economy (and Trump’s response), says Russ Mould, investment director at AJ Bell. |
| Today’s warnings from WH Smith and Cineworld show that the real economy is now suffering, he adds: | Today’s warnings from WH Smith and Cineworld show that the real economy is now suffering, he adds: |
| There’s a lot of grim charts out there today, but this one might be the worst. It shows how the Stoxx 50 index of Europe’s largest companies is half its level before the dot-com crash: | There’s a lot of grim charts out there today, but this one might be the worst. It shows how the Stoxx 50 index of Europe’s largest companies is half its level before the dot-com crash: |
| The speed and scale of the destruction of shareholder value in the last few weeks is shocking. | The speed and scale of the destruction of shareholder value in the last few weeks is shocking. |
| The 25% wiped off the FTSE 100 since 21 February is equal to roughly £470bn - a huge debt in pension pots, ISAs and tracker funds. | The 25% wiped off the FTSE 100 since 21 February is equal to roughly £470bn - a huge debt in pension pots, ISAs and tracker funds. |
| Hopes that the sell-off might abate have consistently been crushed as Covid-19 has continued to spread -- making a global recession more and more likely. | Hopes that the sell-off might abate have consistently been crushed as Covid-19 has continued to spread -- making a global recession more and more likely. |
| Worryingly, the cost of insuring airline’s debt against default is rising this morning too. | Worryingly, the cost of insuring airline’s debt against default is rising this morning too. |
| The CBOE VIX index, which tracks volatility in the markets, have surged to its highest level since 2008, Reuters reports. | The CBOE VIX index, which tracks volatility in the markets, have surged to its highest level since 2008, Reuters reports. |
| That shows just how scared investors are about situation today. | That shows just how scared investors are about situation today. |
| The EU-wide Stoxx 600 has plunged by 6.7% this morning, with markets an absolute sea of red. | The EU-wide Stoxx 600 has plunged by 6.7% this morning, with markets an absolute sea of red. |
| The technology sector is down 8%, consumer cyclicals have lost 7%, industrial groups are down 6.9% and banks have lost another 6.6%. | The technology sector is down 8%, consumer cyclicals have lost 7%, industrial groups are down 6.9% and banks have lost another 6.6%. |
| This takes the Stoxx 600’s losses for 2020 to 25%. | This takes the Stoxx 600’s losses for 2020 to 25%. |
| Wild trading in London has driven the FTSE 100 as low as 5,482 points, down over 6% today. | Wild trading in London has driven the FTSE 100 as low as 5,482 points, down over 6% today. |
| Every single company on the blue-chip index, and on the smaller FTSE 250 index, is down. | Every single company on the blue-chip index, and on the smaller FTSE 250 index, is down. |
| Cineworld has slumped 30% after it warned it could breach its banking covenants if cinemas are forced to close (see earlier post). | Cineworld has slumped 30% after it warned it could breach its banking covenants if cinemas are forced to close (see earlier post). |
| Wall Street is heading for another slump too -- trading in futures contracts have been suspended ‘limit down’, after falling 5%. | Wall Street is heading for another slump too -- trading in futures contracts have been suspended ‘limit down’, after falling 5%. |
| Markets face a ‘perfect storm’ today, warns Ayush Ansal, chief investment officer at Crimson Black Capital: | Markets face a ‘perfect storm’ today, warns Ayush Ansal, chief investment officer at Crimson Black Capital: |
| WH Smith shares have tumbled 17% this morning after the retailer issued a profit warning because of the coronavirus pandemic. | WH Smith shares have tumbled 17% this morning after the retailer issued a profit warning because of the coronavirus pandemic. |
| The company flagged a “significant impact” on its shops at airports in Asia Pacific, which accounts for 5% of its travel division’s revenues. And in the last fortnight, passenger numbers at airports in the UK (60% of revenue), the US (25% of revenue) and Europe have also dropped. The outbreak could also affect high street spending in the UK, and will drag down WH Smith’s revenues and profits this year. The company warned that revenues would be £100m to £130m lower in the year to 31 August while profits before tax are likely to be £30m to £40m lower. Trump’s 30-day European travel ban is clearly not helping... | The company flagged a “significant impact” on its shops at airports in Asia Pacific, which accounts for 5% of its travel division’s revenues. And in the last fortnight, passenger numbers at airports in the UK (60% of revenue), the US (25% of revenue) and Europe have also dropped. The outbreak could also affect high street spending in the UK, and will drag down WH Smith’s revenues and profits this year. The company warned that revenues would be £100m to £130m lower in the year to 31 August while profits before tax are likely to be £30m to £40m lower. Trump’s 30-day European travel ban is clearly not helping... |