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You can find the current article at its original source at https://www.theguardian.com/business/live/2020/mar/20/marks-and-spencer-warns-it-may-have-to-close-stores-temporarily-business-live
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| Pound jumps and markets rebound as firms await wage rescue plan - business live | Pound jumps and markets rebound as firms await wage rescue plan - business live |
| (32 minutes later) | |
| The pound is up as European markets rebound and the UK waits for details of the chancellor’s plan to protect wages in response to Covid-19 | The pound is up as European markets rebound and the UK waits for details of the chancellor’s plan to protect wages in response to Covid-19 |
| A sharp contraction of the global economy, at least in the second quarter, appears imminent, according to Moody’s, the credit rating agency. | |
| It points to data from China that show eye-watering declines in activity. There has been a sharp contraction relative to last year in retail sales (-20.5%), industrial production (-13.5%) and fixed-asset investment (-24.5%). Add 5m job losses in January and February and it’s a stark illustration of what Europe, the USA and others could shortly face. | |
| Madhavi Bokil, a Moody’s senior credit office, said: | |
| Jack Wills, the clothing retailer, has announced the immediate closure of five stores. | |
| The British brand, which was rescued out of administration by Frasers Group plc in August 2019, will close stores in Dublin, Exeter, Cambridge, Bath and Manchester Trafford Centre. | |
| The chain was bought as part of an acquisition spree led by Mike Ashley, the billionaire boss of Frasers, which was previously known as Sports Direct International. | |
| A spokesperson said: | |
| For more context on the US municipal bond market, here’s Reuters’ report from yesterday on rising yields (meaning prices are falling) for those borrowers: | |
| So just to recap the support that the Fed has offered in the battle against the economic fallout from the coronavirus: | |
| Two emergency interest rate cuts, taking borrowing costs to nearly 0%. | |
| $700bn in new bond buying under the quantitative easing programme. | |
| New swap lines worth as much as $450bn offering US dollars to central banks around the world. | |
| Aid to struggling municipal borrowers. | |
| The US Federal Reserve has made yet another intervention to support the US economy, this time expanding support to municipal bond markets, which are key for the funding of local city authorities. | The US Federal Reserve has made yet another intervention to support the US economy, this time expanding support to municipal bond markets, which are key for the funding of local city authorities. |
| Local government authorities are on the front line of the battle against coronavirus disruption in many countries, leading to fears from investors that they could come under financial pressure. | Local government authorities are on the front line of the battle against coronavirus disruption in many countries, leading to fears from investors that they could come under financial pressure. |
| Here’s the statement from the Fedearl Reserve: | Here’s the statement from the Fedearl Reserve: |
| Jasper Jolly here, taking over from Angela for the next few hours. | Jasper Jolly here, taking over from Angela for the next few hours. |
| Wall Street has extended its earlier gains, with sentiment boosted by the news that US taxpayers will have an extra 3 months to file their returns and expectations of further measures. | Wall Street has extended its earlier gains, with sentiment boosted by the news that US taxpayers will have an extra 3 months to file their returns and expectations of further measures. |
| The latest from US markets: | The latest from US markets: |
| Dow Jones: +2% or 399 points at 20,486 | Dow Jones: +2% or 399 points at 20,486 |
| Nasdaq: +2.8% or 200 points at 7,343 | Nasdaq: +2.8% or 200 points at 7,343 |
| S&P 500: +1.6% or 39 points at 2,448 | S&P 500: +1.6% or 39 points at 2,448 |
| Ford has become the latest car maker to announce temporary factory closures in the UK due to the coronavirus pandemic. | Ford has become the latest car maker to announce temporary factory closures in the UK due to the coronavirus pandemic. |
| The US manufacturer does not make cars in the UK but said its engine-making plants at Dagenham and Bridgend, which produced 1.1m engines between them last year, would be suspended from next Monday and Wednesday respectively. | The US manufacturer does not make cars in the UK but said its engine-making plants at Dagenham and Bridgend, which produced 1.1m engines between them last year, would be suspended from next Monday and Wednesday respectively. |
| The shutdown will also be extended across the remainder of the business, barring a small number of employees, a decision affecting 12,900 UK staff, with around 5,000 of them in direct manufacturing.All employees will receive pay at least equivalent to their base wage. | The shutdown will also be extended across the remainder of the business, barring a small number of employees, a decision affecting 12,900 UK staff, with around 5,000 of them in direct manufacturing.All employees will receive pay at least equivalent to their base wage. |
| Airlines have been taking further measures to secure their businesses, faced with virtually no flights operating during April and May - at the very least. | Airlines have been taking further measures to secure their businesses, faced with virtually no flights operating during April and May - at the very least. |
| British Airways pilots will take half of April and May as unpaid leave, unions have agreed. | British Airways pilots will take half of April and May as unpaid leave, unions have agreed. |
| EasyJet has asked pilots and cabin crew to take three months’ unpaid leave, and reduce terms and conditions, according to the BBC. | EasyJet has asked pilots and cabin crew to take three months’ unpaid leave, and reduce terms and conditions, according to the BBC. |
| Ryanair staff across the board will be taking a 50% pay cut for April and May, boss Michael O’Leary told the FT. | Ryanair staff across the board will be taking a 50% pay cut for April and May, boss Michael O’Leary told the FT. |
| Air New Zealand was promised loans of up to NZ$900m (£438m) by the NZ government to ensure its survival. | Air New Zealand was promised loans of up to NZ$900m (£438m) by the NZ government to ensure its survival. |
| Analysts aired fresh doubts over Norwegian Air despite credit guarantees from the Oslo government worth up to 6bn kroner (£450m). | Analysts aired fresh doubts over Norwegian Air despite credit guarantees from the Oslo government worth up to 6bn kroner (£450m). |
| Cathay Pacific subsidiary HK Express is ending all flights. Cathay, the main Hong Kong carrier, has already axed more than 90% of its schedule. | Cathay Pacific subsidiary HK Express is ending all flights. Cathay, the main Hong Kong carrier, has already axed more than 90% of its schedule. |
| Air Canada is temporarily laying off more than 5,000 flight attendants. | Air Canada is temporarily laying off more than 5,000 flight attendants. |
| The Guardian US has more on the decision to extend the tax deadline by three months: | The Guardian US has more on the decision to extend the tax deadline by three months: |
| Americans will have an extra three months to file their taxes, to ease the pressure on finances caused by Covid-19. The deadline has been extended to 15 July. | Americans will have an extra three months to file their taxes, to ease the pressure on finances caused by Covid-19. The deadline has been extended to 15 July. |
| The measure was announced on Twitter by US Treasury secretary Steve Mnuchin: | The measure was announced on Twitter by US Treasury secretary Steve Mnuchin: |
| The City regulator has told banks and building societies that they must not repossess people’s homes during the coronavirus crisis, and cannot charge fees for payment holidays granted as a result of the pandemic. | The City regulator has told banks and building societies that they must not repossess people’s homes during the coronavirus crisis, and cannot charge fees for payment holidays granted as a result of the pandemic. |
| In guidance to lenders, the FCA said: “Firms should not commence or continue repossession proceedings against customers at this time, given the unprecedented uncertainty and upheaval they face, and government advice on social distancing and self-isolation.“This applies irrespective of the stage that repossession proceedings have reached and to any step taken in pursuit of repossession. Where a possession order has already been obtained, firms should refrain from enforcing it.”The FCA said that lenders should offer three-month payment holidays to struggling buyers, and were not expected to investigate customers’ circumstances before saying yes. They said banks could continue to charge interest but were not allowed to levy any other fees. | In guidance to lenders, the FCA said: “Firms should not commence or continue repossession proceedings against customers at this time, given the unprecedented uncertainty and upheaval they face, and government advice on social distancing and self-isolation.“This applies irrespective of the stage that repossession proceedings have reached and to any step taken in pursuit of repossession. Where a possession order has already been obtained, firms should refrain from enforcing it.”The FCA said that lenders should offer three-month payment holidays to struggling buyers, and were not expected to investigate customers’ circumstances before saying yes. They said banks could continue to charge interest but were not allowed to levy any other fees. |