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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 |
| (31 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 |
| US markets are expected to rise when Wall Street opens, with futures showing gains: | |
| Dow Jones: +3.7% | |
| S&P 500: +3.2% | |
| Nasdaq: 4.6% | |
| Additional measures from the US Federal Reserve propped up Wall Street on Thursday and expectations that the central bank will do more is helping sentiment. | |
| US markets - like those in Europe - have been hammered over the past month as the escalating coronavirus crisis spooks investors. | |
| The S&P 500 has fallen by nearly 30%, or more than $8tn, since hitting a record high last month. | |
| Tesco has outlined some of the measures it is taking to help its staff and suppliers during the coronavirus crisis. | |
| The UK’s largest supermarket chain is closing its cafes and asking vulnerable staff including those pregnant and over 70 to take 12 weeks of paid holiday in its latest measures to support trading during the coronavirus outbreak. | |
| The retailer is also setting aside the first hour of trading on Sundays at its large stores for NHS workers, asking them to bring ID with them. For the next three months, the retailer’s smaller suppliers will also now be paid in five days rather than a fortnight in a bid to help them with cash flow. | |
| Those staff who are sick or in self-isolation will get full pay and Tesco said that staff needing to take time out to care for children as a result of school closures would be able to use a variety of different options to cover leave including paid holiday, emergency leave and new unpaid school closure leave. | |
| M&S and Wetherspoons are not the only companies to issue statements today on Covid-19. | |
| My colleague Sarah Butler reports on Just Eat and Wickes owner Travis Perkins: | |
| Food delivery firm Just Eat is launching a £10m-plus package of support for restaurants over the next 30 days. The company said it would be handing back a third of all commission paid by independent restaurants, removing commission on orders which customers collect themselves from restaurants and waiving sign-up fees for new restaurants. It will also begin paying restaurants weekly and relaxing any restrictions on independent restaurants working with other delivery partners Andrew Kenny, UK Managing Director at Just Eat said: “These are some of the most challenging times the restaurants we work with have ever been through. We want to show our support and help them to keep their doors open.” | |
| Travis Perkins has suspended its dividend to shareholders and paused the demerger of its Wickes DIY chain as it said it expected the trading environment to change “quickly and materially” in the coming weeks. The building supplies group said sales rose by 2.4% in the year to date and it had not see a significant sales impact from the coronavirus so far but was taking “prudent decisions in order to successfully navigate this period of turmoil.” It has withdrawn market guidance on profits for the year. | |
| David Madden, analyst at CMC Markets, says the rebound in European markets is a “welcome change of pace” after a period of heavy selling: | |
| The pound’s revival means that it has climbed above 1985 lows agains the dollar. | The pound’s revival means that it has climbed above 1985 lows agains the dollar. |
| Kenneth Broux, currency strategist at Societe Generale, says the intervention from the Bank of England on Thursday was well-timed: | Kenneth Broux, currency strategist at Societe Generale, says the intervention from the Bank of England on Thursday was well-timed: |
| The Competition and Markets Authority has launched a Covid-19 taskforce to tackle the excessive prices being charged by some people for in-demand products such as hand sanitiser. | The Competition and Markets Authority has launched a Covid-19 taskforce to tackle the excessive prices being charged by some people for in-demand products such as hand sanitiser. |
| It will identify “harmful sales and pricing practices” as they emerge and “warn firms suspected of exploiting these exceptional circumstances – and people’s vulnerability – through unjustifiable prices or misleading claims.” | It will identify “harmful sales and pricing practices” as they emerge and “warn firms suspected of exploiting these exceptional circumstances – and people’s vulnerability – through unjustifiable prices or misleading claims.” |
| So this is designed to tackle traders who might have bulk bought items such as loo roll with the intention to resell them at a higher price to take advantage of the higher demand. | So this is designed to tackle traders who might have bulk bought items such as loo roll with the intention to resell them at a higher price to take advantage of the higher demand. |
| The CMA has already contacted traders and platforms regarding excessive pricing of hand sanitiser, it said. | The CMA has already contacted traders and platforms regarding excessive pricing of hand sanitiser, it said. |
| Andrea Coscelli, the CMA’s chief executive, said: | Andrea Coscelli, the CMA’s chief executive, said: |
| Responding to suggestions that he should not be issuing pronouncements on how to deal with coronavirus, Wetherspoons boss Tim Martin said he was entitled to make public statements on the outbreak. | Responding to suggestions that he should not be issuing pronouncements on how to deal with coronavirus, Wetherspoons boss Tim Martin said he was entitled to make public statements on the outbreak. |
| “We’re a democracy aren’t we? I’m obviously not an expert, nor am I an economist, but i’ve got a view and that’s all I can say. People can accept it or not. Even if you’re not an epidemiologist you can look at what other countries do and weigh up what’s happened.” | “We’re a democracy aren’t we? I’m obviously not an expert, nor am I an economist, but i’ve got a view and that’s all I can say. People can accept it or not. Even if you’re not an epidemiologist you can look at what other countries do and weigh up what’s happened.” |
| The pub chain has said its 870 UK pubs will stay open but with precautions in place, such as no standing at the bar, frequent surface wipedowns and customers asked to sit far apart from each other where possible. | The pub chain has said its 870 UK pubs will stay open but with precautions in place, such as no standing at the bar, frequent surface wipedowns and customers asked to sit far apart from each other where possible. |
| But Martin warned that a long-term shutdown could be terminal for any pub company. | But Martin warned that a long-term shutdown could be terminal for any pub company. |
| “Even if you’ve got the greatest pub company in the world, you depend on the doors being open. If they shut for long enough the entire hospitality industry, never mind Wetherspoons will be in serious trouble.” | “Even if you’ve got the greatest pub company in the world, you depend on the doors being open. If they shut for long enough the entire hospitality industry, never mind Wetherspoons will be in serious trouble.” |
| JD Wetherspoon has seen a significant change in customer behaviour since the prime minister Boris Johnson advised people to stay away from pubs and restaurants in an attempt to slow the spread of Covid-19. | JD Wetherspoon has seen a significant change in customer behaviour since the prime minister Boris Johnson advised people to stay away from pubs and restaurants in an attempt to slow the spread of Covid-19. |
| The pub group, which operates 874 pubs, said its sales declined 4.5% in the week to Sunday 15 March. | The pub group, which operates 874 pubs, said its sales declined 4.5% in the week to Sunday 15 March. |
| Sales then declined at a “significantly higher rate” after Johnson’s warning on Monday, Wetherspoon said. | Sales then declined at a “significantly higher rate” after Johnson’s warning on Monday, Wetherspoon said. |
| Shares are up 27% this morning at 715p, as investors welcomed the pub chain’s decision to cut its dividend and cut capital spending - measures which it said (when combined with the government’s business rates holiday) would provide sufficient liquidity to “maintain operations at a substantially lower level of sales”. | Shares are up 27% this morning at 715p, as investors welcomed the pub chain’s decision to cut its dividend and cut capital spending - measures which it said (when combined with the government’s business rates holiday) would provide sufficient liquidity to “maintain operations at a substantially lower level of sales”. |
| Jaguar Land Rover and Bentley Motors have become the latest British carmakers to suspend production at their UK factories as the disruption from the coronavirus outbreak spreads. | Jaguar Land Rover and Bentley Motors have become the latest British carmakers to suspend production at their UK factories as the disruption from the coronavirus outbreak spreads. |
| JLR and Bentley both said that production at their plants will not start again until 20 April at least, with the restart dates under constant review. | JLR and Bentley both said that production at their plants will not start again until 20 April at least, with the restart dates under constant review. |
| Almost every major carmaker around Europe has paused production, in response to an expectation of massively reduced demand in all key markets, and the health implications for their workers all factors. | Almost every major carmaker around Europe has paused production, in response to an expectation of massively reduced demand in all key markets, and the health implications for their workers all factors. |
| JLR, which is owned by India’s Tata Motors, is the UK’s largest manufacturer of cars, with 35,500 UK employees. The closure affects its main car assembly sites at Castle Bromwich, Solihull and Halewood, as well as engine manufacturing at Wolverhampton. Non-manufacturing employees will work from home. | JLR, which is owned by India’s Tata Motors, is the UK’s largest manufacturer of cars, with 35,500 UK employees. The closure affects its main car assembly sites at Castle Bromwich, Solihull and Halewood, as well as engine manufacturing at Wolverhampton. Non-manufacturing employees will work from home. |
| Bentley, which is owned by Volkswagen, the world’s largest carmaker, said that some “core operations” will continue in its plant in Crewe, with social distancing measures enforced among its 4,500 employees. | Bentley, which is owned by Volkswagen, the world’s largest carmaker, said that some “core operations” will continue in its plant in Crewe, with social distancing measures enforced among its 4,500 employees. |
| More action from the Bank of England this morning, this time relating to banks. | More action from the Bank of England this morning, this time relating to banks. |
| It has cancelled this year’s stress tests and said it may be hard to implement new global capital rules at a time when banks are being asked to step up support of businesses and households in response to Covid-19. | It has cancelled this year’s stress tests and said it may be hard to implement new global capital rules at a time when banks are being asked to step up support of businesses and households in response to Covid-19. |
| Announcing the decision, the Bank said: | Announcing the decision, the Bank said: |
| The pound is up sharply this morning, as optimism builds about a package of measures to protect jobs and wages as well as progress in coronavirus testing. | The pound is up sharply this morning, as optimism builds about a package of measures to protect jobs and wages as well as progress in coronavirus testing. |
| Sterling is up 3.3% against the dollar at $1.1867 | Sterling is up 3.3% against the dollar at $1.1867 |
| One pound is is worth €1.0993, up 2.4% | One pound is is worth €1.0993, up 2.4% |
| The rise is all relative of course.. earlier this month the pound was worth above $1.30 and €1.16. | The rise is all relative of course.. earlier this month the pound was worth above $1.30 and €1.16. |
| Here is our full story on the warning from M&S, which warned on profits and said it may have to close some stores temporarily as a response to Covid-19. | Here is our full story on the warning from M&S, which warned on profits and said it may have to close some stores temporarily as a response to Covid-19. |
| Train services across Britain will be reduced from Monday as people are urged not to travel in order to slow the spread of coronavirus. | Train services across Britain will be reduced from Monday as people are urged not to travel in order to slow the spread of coronavirus. |
| Passenger numbers have already dropped 70% since the outbreak started. | Passenger numbers have already dropped 70% since the outbreak started. |
| In London, a reduced London Underground service has already come into effect with the closure of 40 stations, and the axing of the night tube. | In London, a reduced London Underground service has already come into effect with the closure of 40 stations, and the axing of the night tube. |
| The transport secretary, Grant Shapps, said: | The transport secretary, Grant Shapps, said: |
| Read our full story here: | Read our full story here: |
| Britain’s bus operators have called on the government to provide £1bn in immediate help to maintain critical services as passenger numbers fall away with the coronavirus. | Britain’s bus operators have called on the government to provide £1bn in immediate help to maintain critical services as passenger numbers fall away with the coronavirus. |
| Operators say passenger numbers have already fallen by more than half outside London, with a loss of £50million per week in revenues, even before the closure of schools. | Operators say passenger numbers have already fallen by more than half outside London, with a loss of £50million per week in revenues, even before the closure of schools. |
| While the government had pledged to deliver £5bn in additional funding over five years to the industry, with the importance of bus services having risen up the political agenda before the coronavirus outbreak, bus firms now say they need a first tranche simply to guarantee income and support staff costs to maintain vital routes. | While the government had pledged to deliver £5bn in additional funding over five years to the industry, with the importance of bus services having risen up the political agenda before the coronavirus outbreak, bus firms now say they need a first tranche simply to guarantee income and support staff costs to maintain vital routes. |
| Graham Vidler, chief executive of the Confederation of Passenger Transport, which represents bus companies, said: “Operators are under extreme pressure and facing impossible choices over which routes they have to cut and how many staff may have to go. Buses are crucial to keeping workers moving – and must remain a vital backbone of public transport once this crisis is over. | Graham Vidler, chief executive of the Confederation of Passenger Transport, which represents bus companies, said: “Operators are under extreme pressure and facing impossible choices over which routes they have to cut and how many staff may have to go. Buses are crucial to keeping workers moving – and must remain a vital backbone of public transport once this crisis is over. |
| “We urgently need the Government to help bus workers and their employers now to secure the future of the industry.” | “We urgently need the Government to help bus workers and their employers now to secure the future of the industry.” |
| Firms collectively employ around 100,000 drivers and 120,000 support staff, whose jobs are at risk. | Firms collectively employ around 100,000 drivers and 120,000 support staff, whose jobs are at risk. |
| There is no sea of red in equity markets this morning.. instead all major European indices are higher (following gains on Wall Street on Thursday). | There is no sea of red in equity markets this morning.. instead all major European indices are higher (following gains on Wall Street on Thursday). |
| However, the FTSE 100 has lost some of its earlier gains and is now up 2.2% or 115 points at 5,269. | However, the FTSE 100 has lost some of its earlier gains and is now up 2.2% or 115 points at 5,269. |
| Elsewhere: | Elsewhere: |
| Germany’s Dax: +5.5% at 9,081 | Germany’s Dax: +5.5% at 9,081 |
| France’s CAC 40: +4.6% at 4,034 | France’s CAC 40: +4.6% at 4,034 |
| Italy’s FTSE Mib: +2.5% at 15,847 | Italy’s FTSE Mib: +2.5% at 15,847 |
| Spain’s Ibex: +4% at 6,651 | Spain’s Ibex: +4% at 6,651 |
| Europe’s Stoxx 600: +3.7% at 299 | Europe’s Stoxx 600: +3.7% at 299 |
| More on that warning from Marks & Spencer. | More on that warning from Marks & Spencer. |
| The company said that while it is not a destination for those consumers stockpiling food and other products, it does expect to benefit as people stay at home to eat instead of visiting pubs, cafes and restaurants. | The company said that while it is not a destination for those consumers stockpiling food and other products, it does expect to benefit as people stay at home to eat instead of visiting pubs, cafes and restaurants. |
| The same cannot be said of its home and clothing business: | The same cannot be said of its home and clothing business: |
| Shares in Marks & Spencer are down about 3% in early trading at 111p - underperforming the wider FTSE 100. | Shares in Marks & Spencer are down about 3% in early trading at 111p - underperforming the wider FTSE 100. |
| The warning from the retailer this morning really does bring home the uncertain path for businesses in the weeks and months ahead due to the coronavirus outbreak. | The warning from the retailer this morning really does bring home the uncertain path for businesses in the weeks and months ahead due to the coronavirus outbreak. |
| M&S said it is not assuming a return to normal trading in the Autumn. | M&S said it is not assuming a return to normal trading in the Autumn. |
| The FTSE 100 is rising in early trading, up 5 % or 256 points at 5,407. | The FTSE 100 is rising in early trading, up 5 % or 256 points at 5,407. |
| Investors have welcomed the latest emergency action from the Bank of England, which cut rates to an all time low of 0.1% and announced £200bn of additional bond purchases on Thursday. | Investors have welcomed the latest emergency action from the Bank of England, which cut rates to an all time low of 0.1% and announced £200bn of additional bond purchases on Thursday. |
| But there is also great anticipation that the chancellor Rishi Sunak will this afternoon announce a package of measures to protect wages and jobs. | But there is also great anticipation that the chancellor Rishi Sunak will this afternoon announce a package of measures to protect wages and jobs. |
| Good morning, and welcome to our live coverage of economics, business and markets in the UK, the eurozone and worldwide. | Good morning, and welcome to our live coverage of economics, business and markets in the UK, the eurozone and worldwide. |
| Marks and Spencer has issued a warning this morning about the impact of Covid-19. | Marks and Spencer has issued a warning this morning about the impact of Covid-19. |
| M&S - one of the best known names on the high street - said it has suffered a substantial fall in sales in its clothing and homes business and as a result its forecast for the current quarter are “adversely affected”. | M&S - one of the best known names on the high street - said it has suffered a substantial fall in sales in its clothing and homes business and as a result its forecast for the current quarter are “adversely affected”. |
| It comes as the chancellor, Rishi Sunak, prepares to announce a package to help protect jobs and wages during the crisis. | It comes as the chancellor, Rishi Sunak, prepares to announce a package to help protect jobs and wages during the crisis. |
| M&S said in a statement: | M&S said in a statement: |
| Marks & Spencer said that while its food business was expected to remain profitable, its clothing and homes business was likely to take a heavy hit in the current financial year as a result of the coronavirus pandemic: | Marks & Spencer said that while its food business was expected to remain profitable, its clothing and homes business was likely to take a heavy hit in the current financial year as a result of the coronavirus pandemic: |
| M&S are not the only ones warning this morning with pub group Wetherspoons, retail group Frasers (formerly Sports Direct), and estate agent Foxtons among those outlining the impact of Covid-19 on business. | M&S are not the only ones warning this morning with pub group Wetherspoons, retail group Frasers (formerly Sports Direct), and estate agent Foxtons among those outlining the impact of Covid-19 on business. |
| Turning to markets, there was some respite on Thursday from the sharp sell-off that has rocked global markets since the escalation of the pandemic. Wall Street followed Europe higher after central banks moved to provide more support to economies. | Turning to markets, there was some respite on Thursday from the sharp sell-off that has rocked global markets since the escalation of the pandemic. Wall Street followed Europe higher after central banks moved to provide more support to economies. |
| Europe is expected to open higher again this morning: | Europe is expected to open higher again this morning: |
| Also today: | Also today: |
| 9.30am GMT: UK public sector finances data for February | 9.30am GMT: UK public sector finances data for February |
| 2pm GMT: US existing home sales figures for February | 2pm GMT: US existing home sales figures for February |
| Stick with us for all the latest updates. | Stick with us for all the latest updates. |