US president escalates attack on Beijing’s handling of coronavirus pandemic
Donald Trump’s threats to reignite the US-China trade war over coronavirus has triggered another sell-off in global financial markets, as the economic costs of the pandemic continue to mount.
Against a backdrop of rising tension between the world’s two economic superpowers, share prices resumed a downward slide on Friday with the FTSE 100 falling by 144 points, or 2.5%, in London.
Continue reading...The euro area is suffering its worst contraction ever, as the French economy suffers its biggest plunge since the second world war
Britain’s FTSE 100 has just posted its worst day in a month, at the end of its best month in two years.
The blue-chip index has closed down 214 points at 5901, a drop of 3.5%. That wipes out yesterday’s rally, and half of Wednesday’s gains too!
Related: Shell cuts dividend for first time since 1945 amid oil price collapse
Shares in Zoom have dropped over 6% today, after the video-conferencing services admitted it wasn’t quite as popular as thought...
Zoom had initially said it had 300 million daily users, following the surge in remote working. But, it actually has 300 million daily meeting participants.
Zoom shares dropped more than 7% after the company walked back on claims it has 300 million daily active users. $ZM actually reached 300m daily participants, the difference being that meeting participants can be counted more than once.https://t.co/UIVYBP9sqt
Continue reading...Investors shrug off US growth gloom after promising data from remdesivir drug trial
Shares have soared on the world’s stock markets after investors shrugged off a deep slump in the US economy and pinned their hopes on a possible breakthrough in treatment for Covid-19.
Despite news that the longest expansion in US history came to an abrupt end in the first three months of 2020, financial markets were buoyed by an update from the American biopharma company Gilead Sciences on its experimental drug remdesivir.
Continue reading...Rolling coverage of the latest economic and financial news
Wall Street has opened higher, despite the prospect of a sickening slump in growth this quarter.
The Dow Jones industrial average has gained 109 points, or 0.46%, to 23,884 as a new week’s trading begins.
Alexandra Scaggs of Barrons has spotted that General Motors’ banks pushed it to suspend its dividend (as flagged earlier).
so GM suspended its dividend & share buybacks
one interesting point that's not in the headlines: Banks wanted that as a condition for extending more credit to the company https://t.co/RWCWF4tvea
to me the press release reads like "hey we decided to stop doing these things"
and the filing reads like "our lenders asked us to stop doing these things before they would extend the repayment date on one of our loans" pic.twitter.com/wH5R4aCqDF
As the UK faces what may be its worst ever recession, we begin a monthly series exploring the financial shock to business and living standards
One month after a national lockdown was declared in an attempt to limit the spread of Covid-19, it is clear that Britain is heading for the deepest recession in living memory.
Boris Johnson’s government launched unprecedented restrictions on 23 March, telling the British public that they must stay at home and bringing life as the nation knew it to an abrupt halt.
Continue reading...Rolling coverage of the latest economic and financial news
European markets are falling deeper into the red this morning, as coronavirus recession fears swirl.
The FTSE 100 is now down 90 points, or 1.5%, at around 5,700 points - with similar losses in other markets.
The OBR says the UK economy could fall by 35% in the second quarter. Brutal for sure, but it also expects a very sharp bounce back. This puts it in the V-shaped recovery camp, which is an ever-decreasing circle. Charles Evans, the Chicago Fed president, said yesterday the US is in for a very sharp but hopefully short downturn.
Money managers are more pessimistic. According to Bank of America’s latest Global Fund Manager Survey, just 15% see a V-shaped recovery. Over half (52%) see a U-shaped recovery, where the long line along the bottom stretches on for some time, perhaps years. A fifth (22%) see a W-shaped recovery – possibly sparked by a sharp bounce back and second or third wave of infections – and 7% see the dreaded L – a long depression like the 1930s and no real recovery. The biggest tail risk is a second wave of infections, which makes the speed at which you reopen economies key. My bet, for what it’s worth, is WWW.
Newsflash: Global oil demand is expected to fall by a record amount this year -- according to industry experts.
The International Energy Agency has predicted that demand will slump by 29 million barrels per day in April -- to levels last seen in 1995 -- as the Covid-19 lockdown hits demand extremely hard.
“By lowering the peak of the supply overhang and flattening the curve of the build-up in stocks, they help a complex system absorb the worst of this crisis.
“There is no feasible agreement that could cut supply by enough to offset such near-term demand losses. However, the past week’s achievements are a solid start.”
Continue reading...A singular event has economists asking the same questions as everyone else: how far is there to fall – and can we ever get back?
It is New Year’s Eve 2019 and around the world stock markets are closing for business on a high note. Shares in the US are up by almost 30% on the year, those in Japan by 18%. Even in Britain, where the mood has been dampened by months of Brexit uncertainty, the FTSE 100 has risen by 12%.
Overall, it had been the best year for stocks since 2009 and traders saw no real reason why the party should not continue into 2020. The US and China looked close to an armistice in their trade war, the US central bank was stimulating the world’s biggest economy, and Boris Johnson’s decisive victory in the general election had removed any lingering doubts about whether Britain would leave the European Union.
Continue reading...Stock market crash strips billionaire status from 267 of world’s richest people in the annual list
Donald Trump lost an estimated $1bn of his paper fortune in the past month as the coronavirus lockdown forced the closure of offices, shopping centres, hotels and golf courses he owns.
The US president’s fortune has fallen from an estimated $3.1bn (£2.5bn) on 1 March to $2.1bn on 18 March (at the height of stock market panic caused by the coronavirus pandemic) according to Forbes magazine’s annual billionaires list.
Continue reading...Richard Burr, chairman of the Senate intelligence committee, and Kelly Loeffler of Georgia have denied they kept the public in the dark
Two Republican senators have faced demands to resign after it was reported they sold off millions of dollars worth of stocks just before the market dropped amid fears of the coronavirus pandemic.
Richard Burr of North Carolina, chairman of the Senate intelligence committee, and Kelly Loeffler of Georgia, whose husband is chairman of the New York Stock Exchange (NYSE), denied that they kept the public in the dark about the scale of the threat.
Continue reading...Sharp losses recorded after US interest rate cut, as Bank of England hints at further support to combat turmoil
The FTSE 100 fell below 5,000 points on Monday and trading on Wall Street was suspended for the third time in a week as markets were gripped by mounting concerns over the threat of a global recession, despite a coordinated effort by central banks to protect growth and jobs.
In an escalation of the worst turmoil since the 2008 financial crisis, stock markets suffered further sharp losses on Monday despite dramatic action taken by the US central bank late on Sunday in an attempt to limit the economic impact of the coronavirus pandemic.
Continue reading...Pledges of help from EU, China and Germany plus declaration of US emergency produce mild rally after torrid week
The world’s most powerful central bank, the US Federal Reserve, is preparing a fresh attempt to shore up investor confidence despite a late rally on Wall Street on Friday that ended a torrid week for stock markets on a more positive note.
Fresh pledges of help from China, Germany and the European commission combined with Donald Trump’s declaration of a national emergency over coronavirus to reassure investors after an ordeal for equities on both sides of the Atlantic that echoed the depths of the banking crisis.
Continue reading...US stock markets have been on an unprecedented streak since 2009, a bull market of gains
Wall Street’s record-breaking 11-year “bull market” came to an end on Wednesday as fears about the spreading Covid-19 pandemic hit stock markets again.
US stock markets have been on an unprecedented streak since 2009, a bull market of gains. On Wednesday investors sold off shares across all sectors after the World Health Organization declared the outbreak a pandemic for the first time and criticized “alarming levels of inaction” by governments in corralling the virus.
Continue reading...World markets plunge on back of coronavirus-driven recession fears and threat of oil price war
Global stock markets have suffered their biggest falls since the 2008 financial crisis and trading was temporarily suspended on Wall Street after an oil price crash rattled investors fearing a coronavirus-driven global recession.
Dealing in shares on the main US indices was frozen within minutes of the opening bell, as circuit breakers were triggered by a 7% fall on the S&P 500. Once trading resumed 15 minutes later, the Dow Jones Industrial Average completed a fall of more than 2,000 points for the first time ever – a fall of more than 7%.
Continue reading...Royal Dutch Shell and BP lose more than £32bn from their combined market value
Saudi Arabia’s oil price war has wiped billions of pounds from the market value of the industry’s biggest companies after oil markets recorded one of the biggest price slumps in history.
The decision of the world’s largest oil-producing nation to increase its production even as the coronavirus outbreak stalls global oil demand triggered a 30% drop in oil prices on Monday morning.
Continue reading...A summary of the biggest developments in the global coronavirus outbreak
Key developments in the global coronavirus outbreak on Friday include:
Continue reading...US strengthens travel advice, raising Iran and Italy to a level three, advising people to ‘avoid nonessential travel’. Follow live news
US confirms first death from the coronavirus in King County in Washington state.
BREAKING: First death from Coronavirus in Washington State - awaiting details on patient said to be from King County - @GovInslee statement @KIRORadio #973FM #coronavirus pic.twitter.com/TjlmhRIeBB
Reuters reports that the number of confirmed cases of the coronavirus in Italy has climbed above 1,000, according to an official who said the number of deaths had surged to 29.
Continue reading...Nigeria, New Zealand and Lithuania also report first cases as WHO says epidemic could get ‘out of control’. Follow live news
So coronavirus has finally arrived in sub-saharan Africa, with an Italian man who arrived in Nigeria three days ago becoming the country’s first case of the disease.
The case is in Lagos, a massive overcrowded city, which will raise fears that the virus might already have spread in Nigeria, Africa’s most populous country, and possibly further afield.
Nigeria is a major hub for air transport, commerce and culture. It has deep links with China, with continual and substantial traffic of people and goods. However this first confirmed case appears to have originated in Italy.
The WHO’s regional director for Africa, Dr Matshidiso Moeti, has warned that the “window of opportunity the continent has had to prepare for coronavirus disease is closing”.
Egypt had the first case of Covid-19 in Africa, announced on 14 February. Algeria declared it had a case on Tuesday – another Italian adult who arrived in the country on 17 February.
Earlier this month, officials at the WHO warned that porous borders, a continuing flow of travellers and poorly resourced healthcare systems meant the risk of an outbreak across Africa was “very, very high” and raised significant concerns about the ability of “fragile health systems” to cope with the epidemic.
But recent weeks have been used to reinforce testing regimes, isolation facilities and for public messaging too.
“Nigeria has dramatically improved its ability to manage the outbreak of a major pandemic since the Ebola scare in West Africa in 2014. Many of the lessons from keeping the country free of Ebola have informed the steps taken since the news of the coronavirus epidemic first broke,” wrote Folasade Ogunsola, professor of Clinical Microbiology, University of Lagos, on The Conversation website.
A further two coronavirus cases have been confirmed in England, bringing the total to 19.
Professor Chris Whitty, Chief Medical Officer for England, said:
Two further patients in England have tested positive for Covid-19. The virus was passed on in Iran and the patients have been transferred to specialist NHS infection centres at the Royal Free Hospital. The total number of cases in England is now 17. Following confirmed cases in Northern Ireland and Wales, the total number of UK cases is 19.
Continue reading...As cases of people infected with the coronavirus or Covid-19 grow rapidly in Italy, Iran and South Korea, the rest of the world is bracing for a pandemic
Continue reading...Concerns mount that the spread of Covid-19 cannot be stopped as stock markets fall amid investor fears. Follow latest news
Italy may need to call on the European Union to offer leeway on its budget targets as it struggles with the impact of the coronavirus outbreak, a senior official said.
Deputy economy minister, Laura Castelli, made the comments a day after prime minister Giuseppe Conte warned that the fallout from the outbreak, which has concentrated in the economic powerhouses of northern Italy, would be “very strong”.
If you want to share any thoughts or news tips with me about the coronavirus then please email: sarah.marsh@theguardian.com or tweet me @sloumarsh. My direct messages are open. Thanks
Continue reading...Rolling coverage of the latest economic and financial news, including the latest eurozone growth figures
Andrew Kenningham of Capital Economics has told clients:
“We think the economy will continue to flirt with recession in the first half of this year.”
It’s hard to put too much gloss on a stagnating economy, but the German government has tried to strike an optimistic-ish tone this morning.
Berlin’s economy ministry says Germany’s economy is going through a weak phase, but it’s encouraged that business sentiment has improved.
Continue reading...