This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/live/2020/apr/29/markets-covid-us-economy-federal-reserve-ftse-dow-business-live
The article has changed 24 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| FTSE 100 back over 6,000 points despite rising cost of Covid-19 crisis - business live | |
| (32 minutes later) | |
| UK stock market has hit its highest level since early March, despite coronavirus lockdown hitting retail sales and driving bad debts up | |
| Boom! Britain’s FTSE 100 index has just pushed over the 6,000 points mark for the first time since 11 March. | |
| That means it has clawed back all the losses since the stomach-churning crash on 12 March (the worst day since 1987). | |
| Here are the top risers, and fallers, as investors continue to grasp hopes that Covid-19 lockdowns will end soon, helping the world economy to rebound. | |
| UK clothing and homeware group Next has reported that sales plunged over 40% in the last quarter, due to the lockdown. | |
| Next told the City that the drop in sales has been “faster and steeper” than anticipated in its March stress test. | |
| It now expects lower sales for both the first and second half of the year. | |
| It told shareholders this morning that customers had already voted with their feet before the lockdown: | |
| Although Next’s stores are still closed, it began partially reopening its internet shopping offering two weeks ago. It says 70% of ranges are now available, with operations rejigged to comply with physical distancing rules. | |
| It is also limiting daily orders, and will shut down until the next morning when this is hit. | |
| The coronavirus crisis is bad news for the advertising industry too. | |
| Advertising giant WPP has reported that revenues fell 4.9% in the last quarter, including a 7.9% tumble in March, as companies began to slash their marketing programmes. | |
| WPP expects more pain ahead (understandably - you can hardly expect travel firms and restaurant groups to do much advertising right now). | |
| CEO Mark Read told Reuters: | |
| The rising economic cost of Covid-19 has hit profits at UK bank Barclays. | |
| Barclays is setting aside £2.1bn to cover a surge in bad debts, anticipating that its business and consumer customers will struggle to repay their loans. | |
| This dragged profits for the first quarter of 2020 down to £923m, some 38% less than a year ago, and lower than hoped. | |
| CEO Jes Staley pinned the blame firmly on the coronavirus: | |
| Staley also warned of tough times ahead: | |
| Shares in Barclays are up 5% this morning, though - as its Investment Bank reported a “particularly strong Markets performance”. | |
| IAG are the top faller in London, down almost 6%, after its British Airways division announced it would eliminate one in four jobs. | IAG are the top faller in London, down almost 6%, after its British Airways division announced it would eliminate one in four jobs. |
| Job cuts often go down well in the City (they’re a pragmatic lot). Not today, though. | Job cuts often go down well in the City (they’re a pragmatic lot). Not today, though. |
| Traders are alarmed that IAG also announced that it made a loss of €535m in the last quarter, with revenues down 13%, with worse to come. | Traders are alarmed that IAG also announced that it made a loss of €535m in the last quarter, with revenues down 13%, with worse to come. |
| CEO Alex Cruz told staff he was acting “decisively”to ensure that British Airways has a strong future. Unions, though, are furious that IAG is slashing staff rather than seeking government help. | CEO Alex Cruz told staff he was acting “decisively”to ensure that British Airways has a strong future. Unions, though, are furious that IAG is slashing staff rather than seeking government help. |
| Michael Hewson of CMC Markets comments: | Michael Hewson of CMC Markets comments: |
| The FTSE 100 has hit a new seven-week high at the start of trading in London. | The FTSE 100 has hit a new seven-week high at the start of trading in London. |
| The blue-chip index has gained 30 points to reach 5989 points, for the first time since Wednesday 11 March. | The blue-chip index has gained 30 points to reach 5989 points, for the first time since Wednesday 11 March. |
| Cruise operator Carnival are the top riser, up 7.4%, suggesting traders are anticipating the end of coronavirus restrictions. | Cruise operator Carnival are the top riser, up 7.4%, suggesting traders are anticipating the end of coronavirus restrictions. |
| April has been a good month for Wall Street. With two days to go, stocks are up 10% - their best performance for many a year (after a torrid March). | April has been a good month for Wall Street. With two days to go, stocks are up 10% - their best performance for many a year (after a torrid March). |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| Today we learn how badly America’s economic growth was hit by the first phase of the Covid-19 crisis, and what its central bank will do to fight it. | Today we learn how badly America’s economic growth was hit by the first phase of the Covid-19 crisis, and what its central bank will do to fight it. |
| GDP figures for the first quarter of 2020 are expected to show that the US economy shrank in January-March, at an annualised rate of around 4%. That would reflect the early impact of the global pandemic, as lockdowns spread from Asia to Europe and then America. | GDP figures for the first quarter of 2020 are expected to show that the US economy shrank in January-March, at an annualised rate of around 4%. That would reflect the early impact of the global pandemic, as lockdowns spread from Asia to Europe and then America. |
| The threat of a deep recession has already spurred America’s Federal Reserve into a series of massive stimulus programmes. The Fed holds a policy meeting today, but isn’t expected to change monetary policy -- having already slashed borrowing costs to nearly zero. | The threat of a deep recession has already spurred America’s Federal Reserve into a series of massive stimulus programmes. The Fed holds a policy meeting today, but isn’t expected to change monetary policy -- having already slashed borrowing costs to nearly zero. |
| Instead, investors will be looking for signals that the Fed will continue to generously support the economy -- and thus asset prices -- until the Covid-19 pandemic is over. It has already pledged more than $2 trillion of loan guarantees and other financial help. | Instead, investors will be looking for signals that the Fed will continue to generously support the economy -- and thus asset prices -- until the Covid-19 pandemic is over. It has already pledged more than $2 trillion of loan guarantees and other financial help. |
| Optimism that policymakers will keep doing Whatever It Takes have lifted the markets to their highest levels in seven weeks. Britain’s FTSE 100 is only a whisker below the 6,000 point mark, having fallen through 5,000 points last month. | Optimism that policymakers will keep doing Whatever It Takes have lifted the markets to their highest levels in seven weeks. Britain’s FTSE 100 is only a whisker below the 6,000 point mark, having fallen through 5,000 points last month. |
| Stocks have rallied in Asia too, with MSCI’s broadest index of Asia-Pacific shares outside Japan gaining 0.7% to its highest since 12 March. | Stocks have rallied in Asia too, with MSCI’s broadest index of Asia-Pacific shares outside Japan gaining 0.7% to its highest since 12 March. |
| Australia’s S&P/ASX 200 index rose by 1.5%, while China’s CSI 300 inched up by 0.3%. | Australia’s S&P/ASX 200 index rose by 1.5%, while China’s CSI 300 inched up by 0.3%. |
| The FTSE 100 index has gained 5% in April, cutting its losses during 2020 to a mere 21%. | The FTSE 100 index has gained 5% in April, cutting its losses during 2020 to a mere 21%. |
| That reflects a lot of optimism that coronavirus lockdowns will ease, economies will return to something like normality, and a deep depression will be avoided. | That reflects a lot of optimism that coronavirus lockdowns will ease, economies will return to something like normality, and a deep depression will be avoided. |
| But given so many companies are reporting falling sales and profits, and suspending their dividends, does this rally have firm foundations? | But given so many companies are reporting falling sales and profits, and suspending their dividends, does this rally have firm foundations? |
| Last night, British Airways laid out plans to cut 12,000 jobs -- as it responds to the collapse in the travel business. | Last night, British Airways laid out plans to cut 12,000 jobs -- as it responds to the collapse in the travel business. |
| The big fear is that Covid-19 infections spike again once governments start to reopen offices, factories and schools. | The big fear is that Covid-19 infections spike again once governments start to reopen offices, factories and schools. |
| Fiona Cincotta of City Index explains: | Fiona Cincotta of City Index explains: |
| The agenda | The agenda |
| 10am BST: Eurozone consumer and economic confidence data | 10am BST: Eurozone consumer and economic confidence data |
| 1.30pm BST: US GDP for Q1 2020- expected to fall by an annnualised rate of 4% | 1.30pm BST: US GDP for Q1 2020- expected to fall by an annnualised rate of 4% |
| 7pm BST: US Federal Reserve interest rate decision | 7pm BST: US Federal Reserve interest rate decision |
| 7.30pm BST: Fed chair Jerome Powell’s press conference | 7.30pm BST: Fed chair Jerome Powell’s press conference |