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| Wall Street surges back after Thursday slump amid coronavirus stimulus hopes – business live | Wall Street surges back after Thursday slump amid coronavirus stimulus hopes – business live |
| (32 minutes later) | |
| Rolling coverage of the latest economic and financial news | Rolling coverage of the latest economic and financial news |
| Back on Wall Street, the early rally is fading a little. | |
| Stock are still up, with the Dow 520 points higher or 2.5% at 21,720. But after losing an incredible 2,350 points last night, investors were hoping for a stronger recovery. | |
| They’re joking. I think.... | |
| Lloyds Banking Group has been forced to shut two of its offices this week, affecting nearly 2,000 staff, after discovering the first coronavirus cases across its workforce. Around 450 staff at its Edinburgh Citymark building are currently being asked to self-isolate, work from home or work from an alternative emergency site after a colleague was diagnosed with the virus. That site, where some of its tech and digitally-focused staff are based, remains closed. A Lloyds spokeswoman said: | Lloyds Banking Group has been forced to shut two of its offices this week, affecting nearly 2,000 staff, after discovering the first coronavirus cases across its workforce. Around 450 staff at its Edinburgh Citymark building are currently being asked to self-isolate, work from home or work from an alternative emergency site after a colleague was diagnosed with the virus. That site, where some of its tech and digitally-focused staff are based, remains closed. A Lloyds spokeswoman said: |
| Lloyds’ Belfast Gasworks office, where around 1,500 staff call centre staff are employed, was closed on Monday after a separate case was confirmed. That office was fully reopened on Thursday. | Lloyds’ Belfast Gasworks office, where around 1,500 staff call centre staff are employed, was closed on Monday after a separate case was confirmed. That office was fully reopened on Thursday. |
| Veteran investor Warren Buffett has cancelled his annual shareholder meeting, due to the health risks of Covid-19. | Veteran investor Warren Buffett has cancelled his annual shareholder meeting, due to the health risks of Covid-19. |
| The Berkshire Hathaway annual meeting usually attracts tens of thousands of small investors to Nebraska, keen to hear from the Sage of Omaha. Buffett is always good value, dispensing wise advice about investing in good times and bad ones. | The Berkshire Hathaway annual meeting usually attracts tens of thousands of small investors to Nebraska, keen to hear from the Sage of Omaha. Buffett is always good value, dispensing wise advice about investing in good times and bad ones. |
| The event will be live-streamed instead. Hopefully Buffett will make up for any disappointment by playing a few tunes on his trusty ukulele.... | The event will be live-streamed instead. Hopefully Buffett will make up for any disappointment by playing a few tunes on his trusty ukulele.... |
| British Airways got some grim news today - some will lose their jobs before this crisis is over. | British Airways got some grim news today - some will lose their jobs before this crisis is over. |
| The airline’s chief executive, Alex Cruz, told them that it faces “a crisis of global proportions like no other we have known” and that lay-offs were inevitable... “perhaps for a short period, perhaps longer term”. | The airline’s chief executive, Alex Cruz, told them that it faces “a crisis of global proportions like no other we have known” and that lay-offs were inevitable... “perhaps for a short period, perhaps longer term”. |
| More here: | More here: |
| The head of the European commission Ursula von der Leyen has described the coronavirus as “a major shock” to Europe’s economies, as she promised a multi-billion euro fund to handle the fallout. | The head of the European commission Ursula von der Leyen has described the coronavirus as “a major shock” to Europe’s economies, as she promised a multi-billion euro fund to handle the fallout. |
| At a press conference in Brussels, von der Leyen said the coronavirus pandemic was an “unprecedented challenge for our healthcare systems”, but the EU could withstand the economic shock as long as member states “lived up to [their] responsibilities”. She announced Brussels was increasing a coronavirus “investment initiative” to €37bn (£33bn), up from €25bn proposed on Tuesday. The starting point is €8bn of unspent money from the EU budget for infrastructure spending - “sleeping money” as von der Leyen put it - that is intended to trigger a further €29bn of public and private funds. But EU member states and the European parliament - currently meeting in restricted sessions because of the virus - will have to approve the idea. The commission also provided more details on measures announced earlier this week, such as loosening rules on state aid, and making use of flexibility in EU budget rules. Measures include: | At a press conference in Brussels, von der Leyen said the coronavirus pandemic was an “unprecedented challenge for our healthcare systems”, but the EU could withstand the economic shock as long as member states “lived up to [their] responsibilities”. She announced Brussels was increasing a coronavirus “investment initiative” to €37bn (£33bn), up from €25bn proposed on Tuesday. The starting point is €8bn of unspent money from the EU budget for infrastructure spending - “sleeping money” as von der Leyen put it - that is intended to trigger a further €29bn of public and private funds. But EU member states and the European parliament - currently meeting in restricted sessions because of the virus - will have to approve the idea. The commission also provided more details on measures announced earlier this week, such as loosening rules on state aid, and making use of flexibility in EU budget rules. Measures include: |
| Relaxing airport slot rules. Airlines will not lose their prized landing and take-off slots, if they fail to use them as a result of travel bans and falling demand. A waiver on the usual “use it or lose it” rule that requires carriers to use 80% of their slots, will run until 30 June 2020 and can be extended if necessary. | Relaxing airport slot rules. Airlines will not lose their prized landing and take-off slots, if they fail to use them as a result of travel bans and falling demand. A waiver on the usual “use it or lose it” rule that requires carriers to use 80% of their slots, will run until 30 June 2020 and can be extended if necessary. |
| Loosening rules on state aid, so governments can help companies by suspending tax payments or compensate those suffering losses. The commission said it had already signed off a Danish scheme in less than 24 hours, promising to do the same for other countries. | Loosening rules on state aid, so governments can help companies by suspending tax payments or compensate those suffering losses. The commission said it had already signed off a Danish scheme in less than 24 hours, promising to do the same for other countries. |
| Releasing €1bn from the EU budget, which is expected to cover €8bn in loan guarantees, with the aim of providing liquidity to 100,000 small and medium-sized companies. | Releasing €1bn from the EU budget, which is expected to cover €8bn in loan guarantees, with the aim of providing liquidity to 100,000 small and medium-sized companies. |
| Governments will be able to use flexibilities in the EU stability and growth pact rules that restrict the deficit. In normal years a state’s deficit cannot exceed 3% of gross domestic product. This rule will be relaxed under an “unusual events” clause, so governments can, for example, pay self-employed people or help companies that have put workers on half time, without facing fines from Brussels | Governments will be able to use flexibilities in the EU stability and growth pact rules that restrict the deficit. In normal years a state’s deficit cannot exceed 3% of gross domestic product. This rule will be relaxed under an “unusual events” clause, so governments can, for example, pay self-employed people or help companies that have put workers on half time, without facing fines from Brussels |
| She also said France and Germany were “willing to adapt” export bans on medical goods, such as masks and ventilators. Such restrictions flout EU rules on the free movement of goods and have angered countries that do not produce such products. | She also said France and Germany were “willing to adapt” export bans on medical goods, such as masks and ventilators. Such restrictions flout EU rules on the free movement of goods and have angered countries that do not produce such products. |
| Von der Leyen said the commission would do more if needed, delivering the message in the EU’s three working languages of English, French and German. | Von der Leyen said the commission would do more if needed, delivering the message in the EU’s three working languages of English, French and German. |
| “This is an important economic package but we have to acknowledge the situation is evolving fast. We stand ready to do more as the situation evolves,” she said. | “This is an important economic package but we have to acknowledge the situation is evolving fast. We stand ready to do more as the situation evolves,” she said. |
| She also insisted EU authorities were fully behind Italy, following complaints from Italian politicians that Europe has gone missing in action when it comes to helping the country worst-affected by the coronavirus epidemic. | She also insisted EU authorities were fully behind Italy, following complaints from Italian politicians that Europe has gone missing in action when it comes to helping the country worst-affected by the coronavirus epidemic. |
| Tech stocks and financial companies are leading the recovery in New York. | Tech stocks and financial companies are leading the recovery in New York. |
| Bank of America and Citigroup are up 7%, as Wall Street tries to put its worse day since 1987 behind it. | Bank of America and Citigroup are up 7%, as Wall Street tries to put its worse day since 1987 behind it. |
| Every stock on the Dow has risen, with chipmaker Intel (+10.3%), aircraft maker Boeing (+10.1%) and Walt Disney (+8.9%) hogging the top of a crowded list of rising stocks. | Every stock on the Dow has risen, with chipmaker Intel (+10.3%), aircraft maker Boeing (+10.1%) and Walt Disney (+8.9%) hogging the top of a crowded list of rising stocks. |
| BOOM! Stocks on Wall Street have rocketed higher at the start of trading. | BOOM! Stocks on Wall Street have rocketed higher at the start of trading. |
| The S&P 500, Dow Jones industrial average, and the Nasdaq all surged by 6% as the opening bell rang out in New York. | The S&P 500, Dow Jones industrial average, and the Nasdaq all surged by 6% as the opening bell rang out in New York. |
| After their worst losses in a generation, US stocks are firmly rebounding -- as hopes of a US economic relief package. | After their worst losses in a generation, US stocks are firmly rebounding -- as hopes of a US economic relief package. |
| The promise of more government spending in Europe, and the liquidity injections promised by the US Federal Reserve and the Bank of Japan in the last 24 hours are also helping. | The promise of more government spending in Europe, and the liquidity injections promised by the US Federal Reserve and the Bank of Japan in the last 24 hours are also helping. |
| But volatility is absolutely soaring right now - as a truly historically wild week enters its last act. | But volatility is absolutely soaring right now - as a truly historically wild week enters its last act. |
| And don’t forget, Wall Street slumped by 10% yesterday, so we’re still down over two days. | And don’t forget, Wall Street slumped by 10% yesterday, so we’re still down over two days. |
| Tension is building on Wall Street, with shares expected to surge at the open following Thursday’s shocking losses. | Tension is building on Wall Street, with shares expected to surge at the open following Thursday’s shocking losses. |
| With the futures contracts suspended, after jumping 5% overnight, who knows how the Dow and the S&P 500 will perform in a few minutes? | With the futures contracts suspended, after jumping 5% overnight, who knows how the Dow and the S&P 500 will perform in a few minutes? |
| Treasury secretary Steve Mnuchin is trying to cheer traders, it seems: | Treasury secretary Steve Mnuchin is trying to cheer traders, it seems: |
| Germany has pledged to boost government spending to support its economy through the Covid-19 pandemic, breaking its long adherence to fiscal restraint and balanced budgets. | Germany has pledged to boost government spending to support its economy through the Covid-19 pandemic, breaking its long adherence to fiscal restraint and balanced budgets. |
| Finance Minister Olaf Scholz told a press conference in Berlin: | Finance Minister Olaf Scholz told a press conference in Berlin: |
| Although the stock market is surging, the City is eerily quiet. | Although the stock market is surging, the City is eerily quiet. |
| Walking down Moorgate towards Bank of England there is a marked absence of pedestrians and cars. It feels like a Sunday, my colleague Larry Elliott reports. | Walking down Moorgate towards Bank of England there is a marked absence of pedestrians and cars. It feels like a Sunday, my colleague Larry Elliott reports. |
| Lloyd’s of London has closed its underwriting today, as part of a stress-test of its resilience for a coronavirus shutdown. Anecdotally, many City workers have said they’ve been testing home-working in recent days. | Lloyd’s of London has closed its underwriting today, as part of a stress-test of its resilience for a coronavirus shutdown. Anecdotally, many City workers have said they’ve been testing home-working in recent days. |
| Talks about a potential US stimulus package are continuing in Washington.... | Talks about a potential US stimulus package are continuing in Washington.... |
| US House Speaker Nancy Pelosi and U.S. Treasury Secretary Steven Mnuchin have spoken on the phone about an economic relief package to help protect the US people from the coronavirus economic shock. | US House Speaker Nancy Pelosi and U.S. Treasury Secretary Steven Mnuchin have spoken on the phone about an economic relief package to help protect the US people from the coronavirus economic shock. |
| This is from Pelosi’s chief of staff: | This is from Pelosi’s chief of staff: |
| The two sides had been split about how to respond to the crisis, on predictable lines. | The two sides had been split about how to respond to the crisis, on predictable lines. |
| The Democrats are pushing for a package including paid leave for ill workers, higher jobless benefits and food aid, and free testing for coronavirus. | The Democrats are pushing for a package including paid leave for ill workers, higher jobless benefits and food aid, and free testing for coronavirus. |
| President Trump, though, is insisting on tax cuts - a message he’s just repeated on Twitter | President Trump, though, is insisting on tax cuts - a message he’s just repeated on Twitter |