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FTSE 100 posts best quarter since 2010 amid Covid-19 recovery hopes - business live | FTSE 100 posts best quarter since 2010 amid Covid-19 recovery hopes - business live |
(32 minutes later) | |
Rolling coverage of the latest economic and financial news, as global markets recover some of their huge losses in Q1 | Rolling coverage of the latest economic and financial news, as global markets recover some of their huge losses in Q1 |
Airbus’s CEO, Guillaume Faury, added that his company is facing “the gravest crisis” in the industry’s history. | |
Explaining why 15,000 jobs are being cut worldwide, Faury says: | |
A late newsflash: Aerospace firm Airbus has announced it is cutting 15,000 jobs worldwide, including 1,700 in the UK. | |
Airbus says the cuts are necessary to address the Covid-19 pandemic, which has hammered demand for new jets by around 40%. | |
In a statement, Airbus says it doesn’t expect demand to fully recover for perhaps five years. | |
It is planning to cut 5,100 positions in Germany, 5,000 in France, 900 in Spain and 1,300 at other sites, on top of 1,700 in the UK. | |
Airbus has two major sites in Britain: Broughton, in North Wales, and Filton, near Bristol. In total it employs around 13,000 people in the UK. | |
Here’s our news story on the looming job cuts at easyJet, which threaten thousands of jobs across Europe. | |
Over in New York, shares in aircraft maker Boeing have slumped by 6% after Norwegian Air Shuttle canceled orders for 92 737 Max jets, and five 787s. | |
That’s a blow for Boeing, which has just begun 737 Max recertification flights so that the troubled model can return to the air. | |
Norwegian, though, has canned its order - and is also suing Boeing for financial losses from the grounding of the 737 Max last year. | |
For much of this year, the markets have been as volatile, dramatic and occasionally scary as many of us can remember. | For much of this year, the markets have been as volatile, dramatic and occasionally scary as many of us can remember. |
The financial cost is insignificant compared to the human toll of Covid-19, but it’s cler that a lot of money was wiped off pensions plans and ISAs in Q1, and quite a bit was wiped back on in Q2. | The financial cost is insignificant compared to the human toll of Covid-19, but it’s cler that a lot of money was wiped off pensions plans and ISAs in Q1, and quite a bit was wiped back on in Q2. |
So what might the rest of the year hold? David Folkerts-Landau, Deutsche Bank’s chief economist, predicts a lot more drama - especially in America, as states struggle to handle the pandemic. | So what might the rest of the year hold? David Folkerts-Landau, Deutsche Bank’s chief economist, predicts a lot more drama - especially in America, as states struggle to handle the pandemic. |
Folkerts-Landau warns: | Folkerts-Landau warns: |
He also sees political drama on both sides of the Atlantic: | He also sees political drama on both sides of the Atlantic: |
The US dollar is coming under some pressure today, helping to push the pound up by three-quarters of a cent to $1.236. | The US dollar is coming under some pressure today, helping to push the pound up by three-quarters of a cent to $1.236. |
Ranko Berich, head of market analysis at Monex Europe, blames America’s failure to get to grips with Covid-19. | Ranko Berich, head of market analysis at Monex Europe, blames America’s failure to get to grips with Covid-19. |
With lockdown measures being re-imposed in several states, including Florida, Texas, California and Arizona, traders are anticipating more financial woes for the US. | With lockdown measures being re-imposed in several states, including Florida, Texas, California and Arizona, traders are anticipating more financial woes for the US. |
Berich says: | Berich says: |
Over in Washington, top infectious diseases expert Anthony Fauci has tried to jolt policymakers into action, warning the Senate that the situation is deteriorating fast. | Over in Washington, top infectious diseases expert Anthony Fauci has tried to jolt policymakers into action, warning the Senate that the situation is deteriorating fast. |
Newsflash: Britain’s stock market has just recorded its best quarterly gains in a decade. | Newsflash: Britain’s stock market has just recorded its best quarterly gains in a decade. |
The FTSE 100 has rallied by 9% since the start of April, bringing some relief to investors after the crash which began in late February, and ran until mid March. | The FTSE 100 has rallied by 9% since the start of April, bringing some relief to investors after the crash which began in late February, and ran until mid March. |
Stocks surged strongly in April, and in May, on hopes that the UK economy would recover from the worst recession in generations. | Stocks surged strongly in April, and in May, on hopes that the UK economy would recover from the worst recession in generations. |
It’s notable that shares rebounded even as the death toll from Covid-19 grew steadily in the UK, and around the globe. | It’s notable that shares rebounded even as the death toll from Covid-19 grew steadily in the UK, and around the globe. |
The huge money-printing programmes launched in the UK, US and the eurozone helped to support asset prices, while new low-cost loans for struggling companies calmed fears of widespread defaults. Fiscal programmes, such as the UK’s furlough scheme, also helped companies keep running. | The huge money-printing programmes launched in the UK, US and the eurozone helped to support asset prices, while new low-cost loans for struggling companies calmed fears of widespread defaults. Fiscal programmes, such as the UK’s furlough scheme, also helped companies keep running. |
That is the blue-chip index’s fifth best quarter in the last 20 years, and trims its losses for 2020 to “only” 18%. | That is the blue-chip index’s fifth best quarter in the last 20 years, and trims its losses for 2020 to “only” 18%. |
The index ended June with a whimper, though, losing 56 points or almost 1% to 6,169. | The index ended June with a whimper, though, losing 56 points or almost 1% to 6,169. |
Newsflash: European equities have posted their best quarter since 2015. | Newsflash: European equities have posted their best quarter since 2015. |
The Stoxx 600, which contains Europe’s biggest 600 listed companies, has just closed 0.3% higher tonight, the last day of June. That means it has surged by 12.64% during the last quarter. | The Stoxx 600, which contains Europe’s biggest 600 listed companies, has just closed 0.3% higher tonight, the last day of June. That means it has surged by 12.64% during the last quarter. |
However, the Stoxx 600 is still down by 13% for this year. | However, the Stoxx 600 is still down by 13% for this year. |
Germany’s DAX had a particularly strong quarter, surging by 24% since the start of April. | Germany’s DAX had a particularly strong quarter, surging by 24% since the start of April. |
German stocks rebounded strongly in recent weeks as Berlin agreed massive stimulus measures to fight the Covid-19 downturn, and as German shops and offices reopened for business in May. | German stocks rebounded strongly in recent weeks as Berlin agreed massive stimulus measures to fight the Covid-19 downturn, and as German shops and offices reopened for business in May. |
That means the DAX is only down 7% this year, the best performance of any major European exchange. | That means the DAX is only down 7% this year, the best performance of any major European exchange. |
France’s CAC jumped by around 12.5% in Q2, leaving French equities down almost 18% for the year. | France’s CAC jumped by around 12.5% in Q2, leaving French equities down almost 18% for the year. |
Italy’s FTSE MIB has gained 13.9% in the last three months, but is still down 17.4% for this year after a horrendous plunge in February and March when the pandemic struck. | Italy’s FTSE MIB has gained 13.9% in the last three months, but is still down 17.4% for this year after a horrendous plunge in February and March when the pandemic struck. |
Gold has hit its highest level in almost eight years. | Gold has hit its highest level in almost eight years. |
The spot price of bullion hit $1,785 per ounce this afternoon , a level not seen since October 2012. | The spot price of bullion hit $1,785 per ounce this afternoon , a level not seen since October 2012. |
Gold futures are even more bubbly, pushing over $1,800 per ounce. | Gold futures are even more bubbly, pushing over $1,800 per ounce. |
Gold, a traditional safe-haven, has benefited from predictions that inflation will surge thanks to the massive money-printing operations from central banks. | Gold, a traditional safe-haven, has benefited from predictions that inflation will surge thanks to the massive money-printing operations from central banks. |
Bank of England deputy governor Sir Jon Cunliffe has warned that more companies will enter financial distress, as the coronavirus hits the economy. | Bank of England deputy governor Sir Jon Cunliffe has warned that more companies will enter financial distress, as the coronavirus hits the economy. |
Reuters has the details: | Reuters has the details: |
Here’s our news story on Andy Haldane’s cautious optimism for the UK’s economic recovery: | Here’s our news story on Andy Haldane’s cautious optimism for the UK’s economic recovery: |
Over in the US, consumer confidence has jumped - despite rising Covid-19 infections in several states. | Over in the US, consumer confidence has jumped - despite rising Covid-19 infections in several states. |
The Conference Board’s monthly gauge of consumer morale jumped to 98.1 for June, from 85.9 in May. That’s more than expected. | The Conference Board’s monthly gauge of consumer morale jumped to 98.1 for June, from 85.9 in May. That’s more than expected. |
Consumers reported that their current economic situation had improved - suggesting that the easing of lockdown restrictions has fed through. Economic expectations also improved, but not by as much, indicating some caution about future prospects. | Consumers reported that their current economic situation had improved - suggesting that the easing of lockdown restrictions has fed through. Economic expectations also improved, but not by as much, indicating some caution about future prospects. |
That’s understandable, given some restrictions are now being reimposed in an attempt to stamp out an increase in coronavirus infections in California, Florida and Texas, for example. | That’s understandable, given some restrictions are now being reimposed in an attempt to stamp out an increase in coronavirus infections in California, Florida and Texas, for example. |