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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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| Wall Street ends down after worst week since 2008 financial crisis - as it happened | |
| (about 3 hours 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 |
| Wall Street has closed for the week - and what a week. | Wall Street has closed for the week - and what a week. |
| The S&P 500 is down 15% for the week. The Dow fell over 900 points on Friday after a brief morning rally. The tech-heavy Nasdaq lost 12% over the week. | The S&P 500 is down 15% for the week. The Dow fell over 900 points on Friday after a brief morning rally. The tech-heavy Nasdaq lost 12% over the week. |
| It’s been the worst week for investors since the 2008 financial crisis. | It’s been the worst week for investors since the 2008 financial crisis. |
| Gold and oil fell too as investors moved to cash. | Gold and oil fell too as investors moved to cash. |
| In New York claims for unemployment have rocketed and the state is struggling to cope with increases in claims of up to 1,000%. | In New York claims for unemployment have rocketed and the state is struggling to cope with increases in claims of up to 1,000%. |
| In the UK the government has pledged to pay 80% of wages for those who have lost their jobs to the pandemic. | In the UK the government has pledged to pay 80% of wages for those who have lost their jobs to the pandemic. |
| The floor of the New York Stock Exchange will be empty of traders on Monday after two people tested positive for coronavirus infection. So no men (mainly) in funny coats. | The floor of the New York Stock Exchange will be empty of traders on Monday after two people tested positive for coronavirus infection. So no men (mainly) in funny coats. |
| But trading will continue electronically - most of it is done that way anyway. | But trading will continue electronically - most of it is done that way anyway. |
| Thanks for reading. We will be back with all the live business news on Monday. In the meantime, stay safe and wash your hands. | Thanks for reading. We will be back with all the live business news on Monday. In the meantime, stay safe and wash your hands. |
| You can follow all the latest Covid-19 developments here. | You can follow all the latest Covid-19 developments here. |
| Among those New Yorkers being laid off we mentioned earlier: billionaire would-be president Mike Bloomberg’s staff. | Among those New Yorkers being laid off we mentioned earlier: billionaire would-be president Mike Bloomberg’s staff. |
| They are not happy. | They are not happy. |
| There is mounting anger among the self employed over what they regard as insufficient support for them in the emergency measures announced this evening in the UK by chancellor Rishi Sunak. | There is mounting anger among the self employed over what they regard as insufficient support for them in the emergency measures announced this evening in the UK by chancellor Rishi Sunak. |
| The self employed will gain access to the equivalent of Statutory Sick Pay, and be given tax deferrals, but are not part of the 80% earnings pledge. The Federation of Small Business said: “The question at this point is – with firms beingforcedto close – why have the self-employed been excluded from the commitment to pay 80% of earnings? | The self employed will gain access to the equivalent of Statutory Sick Pay, and be given tax deferrals, but are not part of the 80% earnings pledge. The Federation of Small Business said: “The question at this point is – with firms beingforcedto close – why have the self-employed been excluded from the commitment to pay 80% of earnings? |
| “It cannot be right that an employee currently earning £25,000 a year could access £20,000 per annum through the new job retention scheme, while someone who’s self-employed earning the same sum might only access around £5,000 worth of support.” | “It cannot be right that an employee currently earning £25,000 a year could access £20,000 per annum through the new job retention scheme, while someone who’s self-employed earning the same sum might only access around £5,000 worth of support.” |
| Phillipa Childs of the Bectu union, which covers thousands of freelancers in the entertainment and media industry, added: “The Chancellor’s support package for workers will come as a devastating blow to freelance and self-employed workers who needed much more support than they are being given. | Phillipa Childs of the Bectu union, which covers thousands of freelancers in the entertainment and media industry, added: “The Chancellor’s support package for workers will come as a devastating blow to freelance and self-employed workers who needed much more support than they are being given. |
| “He must urgently revise his income support plan to include these workers and not force them onto the welfare system and we will be making urgent representations to government to make sure all our members are protected during this crisis.” | “He must urgently revise his income support plan to include these workers and not force them onto the welfare system and we will be making urgent representations to government to make sure all our members are protected during this crisis.” |
| More frightening news on Covid-19’s economic impact. Goldman Sachs is now predicting the pandemic will trigger an unprecedented 24% decline in the US economy in second quarter, following a 6% decline in the first quarter. | More frightening news on Covid-19’s economic impact. Goldman Sachs is now predicting the pandemic will trigger an unprecedented 24% decline in the US economy in second quarter, following a 6% decline in the first quarter. |
| That’s the most grisly prediction from a big bank economist so far. | That’s the most grisly prediction from a big bank economist so far. |
| The bank’s economists expect a bounce back of 12% in the third quarter and 10% in the fourth quarter, but unemployment will surge to 9%. | The bank’s economists expect a bounce back of 12% in the third quarter and 10% in the fourth quarter, but unemployment will surge to 9%. |
| “Over the last few days social distancing measures have shut down normal life in much of the US. News reports point to a sudden surge in layoffs and a collapse in spending, both historic in size and speed, as well as shutdowns of many schools, stores, offices, manufacturing plants and construction sites,” the economists said. “These developments argue for a much sharper drop in GDP in Q1 and Q2.” | “Over the last few days social distancing measures have shut down normal life in much of the US. News reports point to a sudden surge in layoffs and a collapse in spending, both historic in size and speed, as well as shutdowns of many schools, stores, offices, manufacturing plants and construction sites,” the economists said. “These developments argue for a much sharper drop in GDP in Q1 and Q2.” |
| With less than an hour of trading left all the major markets are back in the red - again. If this holds, it will be the worst week on US stock markets since the financial crisis of 2008. | With less than an hour of trading left all the major markets are back in the red - again. If this holds, it will be the worst week on US stock markets since the financial crisis of 2008. |
| As it stands: | As it stands: |
| Dow Jones - down 3.3% | Dow Jones - down 3.3% |
| S&P 500 - down 3.3% | S&P 500 - down 3.3% |
| Nasdaq - down 2.3% | Nasdaq - down 2.3% |
| New York - now a major center of new Covid-19 infections - is cracking under the strain of people applying for unemployment benefits. | New York - now a major center of new Covid-19 infections - is cracking under the strain of people applying for unemployment benefits. |
| As restaurants, bars, hotels and other businesses close thousands are trying to get benefits in order to meet their bills. | As restaurants, bars, hotels and other businesses close thousands are trying to get benefits in order to meet their bills. |
| The New York state labor department said it received 159,000 calls by noon on Thursday, compared with the average of 10,000 calls a day. In some parts of the state, the department said, there was a 1,000% increase in claims. The website is seeing a 400% increase above normal in logins each day. | The New York state labor department said it received 159,000 calls by noon on Thursday, compared with the average of 10,000 calls a day. In some parts of the state, the department said, there was a 1,000% increase in claims. The website is seeing a 400% increase above normal in logins each day. |
| You can read the full story here: | You can read the full story here: |
| This as Goldman Sachs is warning new claims for unemployment could pass two million for the week ending March 21, his most conservative estimate of a million claims which would top the record high of 695,000 in 1982. | This as Goldman Sachs is warning new claims for unemployment could pass two million for the week ending March 21, his most conservative estimate of a million claims which would top the record high of 695,000 in 1982. |
| Sterling is in retreat after chancellor Rishi Sunak announced some truly historic measures which will see a big increase in government borrowing. | Sterling is in retreat after chancellor Rishi Sunak announced some truly historic measures which will see a big increase in government borrowing. |
| You can read the main announcements for business here, and follow the reaction to Sunak’s speech here. | You can read the main announcements for business here, and follow the reaction to Sunak’s speech here. |
| The pound is up by 1.2% for the day - a percentage point less than points earlier this afternoon - at $1.1621 against the US dollar. | The pound is up by 1.2% for the day - a percentage point less than points earlier this afternoon - at $1.1621 against the US dollar. |
| Sunak’s announcements came after the FTSE 100 gained 0.76% on Friday, closing at 5,190.78 points - the lowest end-of-week close since 2011. | Sunak’s announcements came after the FTSE 100 gained 0.76% on Friday, closing at 5,190.78 points - the lowest end-of-week close since 2011. |
| In Europe the Stoxx 600 gained 1.8%, with the Cac 40 in France gaining 5%. | In Europe the Stoxx 600 gained 1.8%, with the Cac 40 in France gaining 5%. |
| Dominic Rushe will now take over the live blog. JJ | Dominic Rushe will now take over the live blog. JJ |
| Here are some more reactions to the chancellor’s emergency package. | Here are some more reactions to the chancellor’s emergency package. |
| Adam Marshall, director general of the British Chambers of Commerce, said: | Adam Marshall, director general of the British Chambers of Commerce, said: |
| Matthew Cady, investment strategist at Brooks Macdonald, an investment manager, said: | Matthew Cady, investment strategist at Brooks Macdonald, an investment manager, said: |
| Kallum Pickering, senior economist at Berenberg, an investment bank, said: | Kallum Pickering, senior economist at Berenberg, an investment bank, said: |
| And the pound is now back to a 1.5% gain, at $1.1665 against the US dollar. | And the pound is now back to a 1.5% gain, at $1.1665 against the US dollar. |
| Some reaction is starting to come in from business groups and unions. | Some reaction is starting to come in from business groups and unions. |
| Michael Izza, chief executive of the ICAEW, an accountancy body, said: | Michael Izza, chief executive of the ICAEW, an accountancy body, said: |
| Mike Clancy, general secretary of Prospect, a union, said: | Mike Clancy, general secretary of Prospect, a union, said: |
| There’s a bit more movement in the pound now, and it’s going in reverse. | There’s a bit more movement in the pound now, and it’s going in reverse. |
| One pound will buy you less than $1.17 - so it has given up some of the earlier gains. It’s up by 1.8% for the day. | One pound will buy you less than $1.17 - so it has given up some of the earlier gains. It’s up by 1.8% for the day. |
| Closing pubs, bars, restaurants | Closing pubs, bars, restaurants |
| Boris Johnson said all cafes, bars, pubs and restaurants must close tonight. | Boris Johnson said all cafes, bars, pubs and restaurants must close tonight. |
| Nightclubs, theatres, gyms, cinemas and leisure centres must also close on the same timescale. | Nightclubs, theatres, gyms, cinemas and leisure centres must also close on the same timescale. |
| Paying wages | Paying wages |
| To protect jobs, the chancellor announces that the government will step in and help pay wages, for the first time in UK history. It’s called the coronavirus job retention scheme. | To protect jobs, the chancellor announces that the government will step in and help pay wages, for the first time in UK history. It’s called the coronavirus job retention scheme. |
| Companies and organisations will be able to apply for a grant from HMRC to cover the wages of people who are not working due to coronavirus shutdowns, but who haven’t been laid off. | Companies and organisations will be able to apply for a grant from HMRC to cover the wages of people who are not working due to coronavirus shutdowns, but who haven’t been laid off. |
| It will cover 80% of the salaries of these retained workers, up to £2,500 per month. | It will cover 80% of the salaries of these retained workers, up to £2,500 per month. |
| It means that workers across the company can retain their jobs, even if their bosses can’t afford to pay them, Sunak explains. | It means that workers across the company can retain their jobs, even if their bosses can’t afford to pay them, Sunak explains. |
| VAT holiday | VAT holiday |
| no business will pay VAT from now to June, and they’ll have until the end of the financial year to repay those bills. That should help companies struggling with a cash flow crisis. | no business will pay VAT from now to June, and they’ll have until the end of the financial year to repay those bills. That should help companies struggling with a cash flow crisis. |
| The chancellor this will injection £30bn into the economy. | The chancellor this will injection £30bn into the economy. |
| Business loan scheme | Business loan scheme |
| The government is also extending its coronavirus business interruption loan scheme, to be interest free for 12 months (up from 6 months). | The government is also extending its coronavirus business interruption loan scheme, to be interest free for 12 months (up from 6 months). |
| Deferring self-assessment deadline for taxes | Deferring self-assessment deadline for taxes |
| The deadline for self-assessment of taxes will be extended to January 2021, meaning that self-employed people will have longer to pay their taxes. | The deadline for self-assessment of taxes will be extended to January 2021, meaning that self-employed people will have longer to pay their taxes. |
| The announcements appear to have barely affected the pound, which is still up by 2.1% against the US dollar. We will let you know if that changes. | The announcements appear to have barely affected the pound, which is still up by 2.1% against the US dollar. We will let you know if that changes. |
| One pound will buy you $1.1727 at the moment. | One pound will buy you $1.1727 at the moment. |
| The VAT holiday, which will affect almost every business in the UK, will represent a £30bn cash injection into the economy. | The VAT holiday, which will affect almost every business in the UK, will represent a £30bn cash injection into the economy. |