Market slide wipes out gains of Trump presidency as Covid-19 crisis deepens – business live

Dominic Rushe and Graeme Wearden

from on 2020-03-18 20:06 (#50W95)

Fears of a deep downturn are rattling markets despite stimulus packages in US, UK and the eurozone

8.06pm GMT

Another awful day on the stock markets as Coronavirus deaths and infections continue to climb.

7.46pm GMT

The US's largest mall landlord, Simon Property Group, will close all of its retail properties starting 7pm local time today.

This decision comes after "extensive discussions with federal, state and local officials and in recognition of the need to address the spread of COVID-19," the Indianapolis-based company said.

7.19pm GMT

We're all saved! Billionaire shut-in Bill Ackman is clarifying his earlier comments and wants you to know that this is a good time to buy shares.

Some investors have been confused by remarks. To clarify, I am confident the president will do the right thing in temporarily shutting down the country and closing the borders. If that happens, we can win the war against the virus and the markets and the economy will soar.

6.58pm GMT

If you want to watch a billionaire melting down, this CNBC interview with Bill Ackman, which I mentioned earlier, is now available. It's quite something: "Hell is coming!" Let's hope he's wrong.

6.22pm GMT

Negotiations are now underway to bail out the airlines. Delta announced today that it is going to cut 70% of its flights.

They have asked for $50bn which, according to our calculation, is just $5bn more than $45bn they have spent on share buybacks and executive pay over the last five years.

We won't let this to look like the bank bailout of 2008, nor can you compare the two. The airline industry didn't cause the pandemic and money should come with significant conditions to help workers and keep planes flying, not enrich shareholders or pad executive bonuses.

The airline industry is in crisis. A lot of people are asking what to do. We have a plan that starts with workers. A thread: 1/11

6.01pm GMT

General Motors and Ford are closing all North America manufacturing plants until March 30. A similar announcement from Fiat Chrysler is expected soon.

We have been taking extraordinary precautions around the world to keep our plant environments safe and recent developments in North America make it clear this is the right thing to do now," GM boss Mary Barra

5.38pm GMT

Remember this?

NASDAQ UP 72.2% SINCE OUR GREAT 2016 ELECTION VICTORY! DOW UP 55.8%. The best is yet to come!

5.21pm GMT

Up and falling

Trading has resumed and the falls continue. Some are blaming it on Trump. Here's Dan Alpert, investment banker and credit bubble expert:

And that's it. @realDonaldTrump literally succeeded in tanking the market - shutting it down as it hits it circuit breaker limit loss. He actually did it...the very stable genius! https://t.co/VI2kColI1Z

5.05pm GMT

Markets closed down - again

Trading has stopped again after the Dow Jones Industrial Average fell 1,660 points, or 7.8%, and the S&P 500 dropped over 7%.

4.59pm GMT

"Shut it down now!"

Billionaire hedge fund manager Bill Ackman is going off on CNBC. He sounds almost on the edge of tears. Says he has been in isolation recently because of fears he could carry the virus and pass it to older, vulnerable people including his dad.

Mr. President, the moment you send everyone home for Spring Break and close the borders, the infection rate will plummet, the stock market will soar, and the clouds will lift. We need your leadership now!

4.43pm GMT

America's biggest companies are weighing in - calling on Congress to "act boldly" to limit the economic fallout from the pandemic.

The Business Roundtable, which speaks for dozens of major US companies including Apple, General Motors, JP Morgan Chase and WalMart, wants a suspension of global tariffs, a temporary halt to payrolls taxes and measures to support the supply chain.

The government actions necessary to address this crisis will have enormous costs," the letter, signed by Walmart boss Doug McMillon, said. "However, failure to act boldly now will impose far greater costs to our country and our future."

4.27pm GMT

European markets close down - US markets are still falling

European markets are now closed after another bad day. In London the FTSE 100 fell over 4%, in Frankfurt the Dax dropped over 5% per cent and in Paris the Cac 40 was down by a similar margin.

Stock markets keep falling at Trump speaks. https://t.co/pMTnOziFYM pic.twitter.com/DCK2joJ3sx

4.17pm GMT

Defense Production Act

Trump has invoked the defense production act. The act gives the president more control of the US supply chain. According to the Federal Emergency Management Agency (FEMA) the act "is the primary source of Presidential authorities to expedite and expand the supply of resources from the US industrial base to support military, energy, space, and homeland security programs."

3.59pm GMT

Trump speaks

We are waiting for Trump to speak. The White House is asking Congress for $500bn that would pay for two emergency payments to US taxpayers.

The Treasury Department proposal calls for the authority to send two $250 billion rounds of checks directly to American taxpayers, the first on April 6 and the second May 18. Payments would be fixed, and their size dependent on income and family size, the summary said.

3.45pm GMT

Job losses

All these stock market falls can seem a bit abstract but we will soon see if they are making their way into the real economy.

3.25pm GMT

Dow drops below 20,000

The sell off is picking up on Wall Street. The Dow has now dropped below 20,000 and has lost some 1,400 points. This despite a promised $1tn US aid package.

WATCH: The Dow is down more than 1,200 points, hovering around the 20,000 mark. https://t.co/QnNVMpVPjP

3.17pm GMT

Fiat Chrysler is closing an assembly plant in Michigan after an employee tested positive for the new coronavirus.

Production at its pickup truck plant in Sterling Heights, Michigan is now on hold as the company makes plans to resume work under new guidelines reached with the United Auto Workers.

2.54pm GMT

Trades unions are urging the government to provide wage subsidies to protect jobs.

The TUC is also concerned that firms could take official help, and then cut jobs. Support for firms must be come with requirements to protect jobs and wages, it insists.

"The Chancellor's announcements so far will help protect businesses. But he must now urgently step up the protections that workers need too.

Many other counties are using government wage subsidies to stop job losses and keep up economic activity. We need it too.

2.49pm GMT

Ryanair has announced it will ground "most if not all" flights after next Tuesday.

It currently expects to run a "very small number of flights for essential connectivity", mainly between the UK and Ireland. More than 80% of flights still scheduled until then will be grounded immediately. It said call centres were overloaded and asked customers not to call, and await email instructions.

2.29pm GMT

More gloom! Deutsche Bank has forecast a severe global recession will occur in the first half of 2020.

In a new report, it says aggregate demand has plunged in China in the current quarter, and will plunge in Europe and the US in April-June.

The quarterly declines in GDP growth we anticipate substantially exceed anything previously recorded going back to at least World War II.

The fiscal response could turn out to be huge, with serious discussion in the US of stimulus packages amounting to 6% of GDP on top of already significant automatic stabilizers. In Europe, the fiscal rules have been effectively suspended and leaders pledge to spend "whatever it takes".

2.24pm GMT

Here's a chilling forecast -- 25 million jobs could be lost worldwide due to the Covid-19 crisis.

That's according to the International Labour Organization (ILO), who fear the impact will be even worse than the 2008 financial crisis. But the impact could be lower-- if policymakers take decisive steps.

This is no longer only a global health crisis, it is also a major labour market and economic crisis that is having a huge impact on people.

In 2008, the world presented a united front to address the consequences of the global financial crisis, and the worst was averted. We need that kind of leadership and resolve now.

2.04pm GMT

The usual suspects are dragging the Dow Jones down today.

Boeing has lost another 16%, American Express are down 10% and Home Depot have lost 9%, reflecting the slump in travel and consumer spending.

1.58pm GMT

With the US Federal Reserve running low on options, the responsibility for saving the US economy now lies with Donald Trump's White House.

And that's terrifying, given the president's past form, writes our business editor Dominic Rushe:

The Trump administration is talking bailouts already for the airlines, hotels and others. What he can pass remains to be seen. Trump has no friends on the other side of the House and slim chance of making any. Even if he can get something approved, how effective will it be? The omens are ominous.

If you want to imagine what a Trump bailout will look like, look no further than his 2017 tax cuts.

1.53pm GMT

Wall Street is alarmed by reports that Treasury Secretary Steven Mnuchin fears the coronavirus pandemic could drive up US unemployment to 20%, without decisive action.

Mnuchin made the comments to Republican senators on Tuesday, apparently, as he urged them to back a massive stimulus rescue package.

Secretary Mnuchin used several mathematical examples for illustrative purposes, but he never implied this would be the case.

1.46pm GMT

Not even the prospect of a $1.2 trillion stimulus package could prevent the New York stock market from sliding.

Wall Street slumped roughly 5% as soon as the opening bell rang, wiping out most of yesterday's rally.

1.40pm GMT

BoE governor Andrew Bailey has also fired two warning shots at the City -- don't pay large bonuses and dividends if you take official help, and don't you dare short UK assets during this crisis.

He's told the BBC that firms should also hold off from laying off staff, before checking if the government can help.

NEW
Bank of England Governor Andrew Bailey tells BBC that businesses thinking of firing staff because of coronavirus crisis should "stop" talk to the Bank of England and Treasury about what's available' to fund keeping workers in jobs.

*** The Governor said that the Bank "doesn't have the powers to stop" businesses paying bonuses and dividends after receipt of subsidised loans. But he said "I'm sure they'll get the message here".

NEW: Governor: "strong preference" financial markets stay open..but warned City traders seeking to "exploit" situation: "Anybody who says, 'I can make a load of money by shorting' which might not be frankly interest of economy, interest of the people, just stop what you're doing"

1.33pm GMT

Bank of England governor Andrew Bailey has also declared that all reasonable options are on the table to tackle the crisis.

Speaking to Sky News, after warning Britain faces an economic emergency, Bailey didn't rule out the idea of handing cash straight to people (helicopter money, in the jargon).

New: Andrew Bailey tells @skynews @bankofengland will do "what it takes" to get UK through what he describes as an unprecedented economic "emergency".
- "The Bank of England's not done"
- Asked abt radical moves eg printing money to give to households: "I don't rule anything out"

Andrew Bailey on #COVID19: "It's obviously an emergency. I think we're living in completely unparalleled times... It's going to be a very big downturn - we know that."

As sterling hits lowest level vs US$ since '85 & markets drop despite UK stimulus last night Mr Bailey told me: "We watch markets v carefully. But what would they have done had we not acted? They are sharply down. Getting ahead is what we obviously aim to do. And it's important."

Bailey: "We have a v large toolkit. I don't rule anything out, frankly, but pls don't interpret it that we're about to do it either. Nobody in their right mind in my role would say: the following things I would never do. That's foolish. We have to be broad minded about this."

Here's what Andrew Bailey told me when I asked whether the Bank was ready to impose new, even more radical measures to confront the #COVID19 economic crisis: pic.twitter.com/1jMQ07ECPf

1.23pm GMT

More than one million jobs are now at risk across UK pubs, restaurants, bars, hotels and leisure attractions, trade body UKHospitality has warned.

It is urging the Government to announce an employment support plan immediately, to help protect livelihoods. Otherwise, jobs will be cut, starting today.

"Our analysis suggests in excess of one million jobs are now on the line. Job cuts are extraordinarily deep and they are happening now - today and tomorrow, and are snowballing.

Companies are having to make the very difficult decisions now and with many hospitality and leisure businesses now having to choose to close or massively reduce their operations, there is little chance of saving many jobs without far-reaching help. What the sector urgently needs is a package of support and funding to keep people in employment. This needs to happen now - within 24 hours.

1.04pm GMT

NEWSFLASH: The UK's new top central banker has warned that Britain faces a national emergency (just three days into his new job).

Our economics editor Larry Elliott explains:

"It is unquestionable, though, that things have moved on a lot in the ensuing period"

1.00pm GMT

The pound's not been this weak against the US dollar since Ronald Reagan and Margaret Thatcher were in power (if you exclude an odd sterling 'flash crash' one night in 2016).

The milestones just keep coming. The pound is now at its lowest since 1985 https://t.co/5ZREZcf9Fh pic.twitter.com/hQZj9i8iGC

12.56pm GMT

A quick recap

Global financial markets continue to be rocked by the coronavirus crisis, despite government efforts.

*BRITISH POUND SINKS TO LOWEST LEVEL SINCE 1985 AGAINST DOLLAR

WTI #Oil falls <$25 a barrel for 1st time since 2002 as rout continues on coronavirus fears and price war. pic.twitter.com/eU7TAFIF1f

In our coronavirus pandemic scenario, global growth grinds to a halt in Q2 2020 as the world economy succumbs to recession, but it then rebounds to a rapid 5% pace of expansion within a year. With much of the initial output loss recovered in a relatively short period of time, long-term impacts are limited.

But there are risks to this view. The period of disruption could be longer than anticipated, depending on the potential spread and seasonality of COVID-19 and policy actions to mitigate the fallout. Opinion polls also highlight the potential risk of larger, more persistent effects for some countries.

12.38pm GMT

Over in Westminster, Boris Johnson has told MP his government will legislate to protect renters from eviction during the coronavirus crisis.

He also agreed this is no time to be squeamish about public debts (just as well, given the UK deficit is going to balloon massively)

12.22pm GMT

The Times is reporting that the UK government is preparing to pave the way for multibillion-pound bailouts of the airlines and other industries.

Emergency powers would allow ministers to lift a 12 billion cap on financial support, they say. More here.

Exclusive:

Ministers to pave way for multi-billion pound bailout of airlines by lifting cap on level of financial support they can provide

Measures to amend Industrial Development Act expected in package of emergency legislation published tomorrowhttps://t.co/Ts5qDV4nL4

12.16pm GMT

Wall Street is facing another day of losses, with the markets expected to hand back most of yesterday's 6% gain.

Futures are limit down.

a S&P 500 a-1/4 3.70%
a Nasdaq a-1/4 4.44%
a Russell 2k a-1/4 4.75%
a Dow Jones a-1/4 3.94% pic.twitter.com/1M8ggERkpj

12.08pm GMT

The scale of the pound's sudden slump below $1.20 is remarkable, says Neil Wilson of Markets.com. It's not just because the dollar is in massive demand.

He writes:

Sterling has completed one of its steepest declines in memory by hitting its weakest level since 1985, excluding if you will the brief dive of the Oct 2016 'flash crash'.

This is the worst sustained period of sterling selling that I can recall, and it points to a severe dollar liquidity crunch that central banks have yet to get a grip on. There is a synchronised rush for dollars that has caught most companies, governments and traders on the hop. Dollar funding issues have been far more serious than estimated prior to this crisis.

12.04pm GMT

A growing number of European carmakers are downing tools, my colleague Rob Davies reports:

BMW and Toyota have joined a rapidly lengthening list of carmakers shutting down European operations, affecting UK plants in Oxfordshire and Derbyshire, as the coronavirus brings the automotive industry grinding to a virtual halt.

More than 10,000 car workers have been laid off across the industry as Nissan, the Mercedes-Benz parent, Daimler, Volkswagen, Ford, Fiat and Peugeot have already announced suspensions of their European output. Jaguar Land Rover kept its UK sites operating but has frozen output at its Slovak factory.

12.01pm GMT

Faced with Britain's stockpiling frenzy, Asda closing its cafes and pizza counters and restricting shoppers to three items on all food, toiletries and cleaning products.

It says:

"We have plenty of products to go around but we have a responsibility to do the right thing for our communities to help our customers look after their loved ones in a time of need."

11.40am GMT

Sterling has fallen by 1% against the euro too.

The pound is now worth a1.082, down from a1.095 last night, meaning one euro is worth 92.3p - the weakest since August 2019.

11.36am GMT

Investment firm Aviva has suspended trading in its UK property fund saying that the the coronavirus has made it impossible to correctly value the assets that it holds.
The 461m fund is the third to be closed since the economic impact of the pandemic started to be felt in the UK. The fund, which invests in a range of commercial properties including offices, high street shops and leisure facilities, is regularly valued by an independent company and the price of buying shares in it is determined by that valuation'. Aviva said that it had been advised that there was currently too much uncertainty in its valuation, and that there was a risk that investors could buy or sell shares at a cost that did not reflect their true worth.

11.35am GMT

Sterling is continuing to slump - it's now down almost 1.5 cents today at $1.191.

That's the lowest since the post-Brexit vote flash crash in late 2016 - but really, we're looking at the lowest point against the dollar in decades.

The UK currency has not consistently traded under $1.20 since the 1980s.....

"Everyone thought that Brexit was the big deal for sterling this year but "the currency has been completely overwhelmed by the coronavirus," said Richard Benson, co-chief investment officer at Millennium Global Investments in London.

11.16am GMT

European markets are looking even messier, with the FTSE 100 now down almost 290 points or 5% at 5007 after three hour's trading.

That would be a new eight-year closing low if trading ended now.

Deutsche Bank seeing Q2 annualised contractions of 13% in US and 24% in Euro area

11.10am GMT

The pound has sunk below $1.20 against the US dollar, for the first time since last September.

Its currently down three-quarters of a cent today, at $1.1975.

10.52am GMT

Government bond prices are weakening today, as investors sell up.

This is pushing the yield on UK, US, German and other European government debt up from their recent record lows - a sign that prices are dropping from their peaks.

Bond yields in the US and Europe rose to their highest levels in weeks as fund managers under pressure to return cash to investors were forced to dump their most liquid holdings, according to traders. Yields move in the opposite direction to prices.

"This is fire-selling of liquid assets by those who need to meet redemptions," said Mike Riddell, a portfolio manager at Allianz Global Investors. "A lot of people need cash and they're liquidating the only thing that they can.

10.44am GMT

UBS has slashed its forecast for China's economic growth - warning that it could contract at an annual rate of 30% this quarter.

That's because the mobility restrictions imposed to contain the virus have had a chilling impact on the economy, while also curbing infections.

Only 0.005% of China's population is confirmed to be infected but, because of the near complete halt in activity for 4-6 weeks, we now expect Q1 growth to fall -31% QoQ annualized, and full year growth to come in as low as 1%YoY.

That revision moves our 2020 global growth forecast from 2.4% to 1.5%YoY, halfway towards our worst-case scenario. And many countries are now following China's example.

10.31am GMT

Gosh! The European Central Bank has slapped down one of its own governing council members, Austria's top central banker, after he suggested monetary policy was running low on gas.

In an interview with Austria's Der Standard, Robert Holzmann suggested the ECB was at its limits and markets were expecting too much from policymakers.

We cannot solve the problem on our own, it is now primarily a matter of fiscal policy. It is the state's responsibility to provide liability and social support.

Monetary policy cannot cover up the problem.

With regards to comments made by Governor Holzmann, the ECB states:

The Governing Council was unanimous in its analysis that in addition to the measures it decided on 12 March 2020, the ECB will continue to monitor closely the consequences for the economy of the spreading coronavirus and that the ECB stands ready to adjust all of its measures, as appropriate, should this be needed to safeguard liquidity conditions in the banking system and to ensure the smooth transmission of its monetary policy in all jurisdictions.

We're at the "central bankers telling other central bankers to shut the hell up" stage of the crisis

10.07am GMT

What more could the UK government do to help companies?

One idea, being pushed by business groups, is to reverse the national insurance scheme - to inject cash back into struggling firms.

"So the thought that we have put to the chancellor is to reverse national insurance contributions, not just defer or cancel them, but actually get the flow working in the other direction."

The CBI proposal makes sense - reverse the National Insurance system to support wages. Do this for firms that can demonstrate a precipitate fall in turnover in the last few weeks. Enlist the aid of the accountancy profession to assess this so that decisions can be made quickly.

9.52am GMT

Here's our round-up of today's profit warnings from across Europe, as the coronavirus downturn deepens:

9.51am GMT

Chemist chain Boots says products needed by customers during the coronavirus crisis will soon be available again in stores, as their supply chain reacts to increased demand.

Sebastian James, the chief executive of Boots, told BBC Radio 4's Today programme that products including hand sanitiser, paracetamol, pain relief, baby products and cleaning products should be flowing more freely.

"504 lines are very much in demand at the moment in our stores, we are are getting more every day, it's a little and often, we ship to our stores every single day, sometimes twice a day."

9.43am GMT

Italian government bonds are coming under real pressure today.

The yield, or interest rates, on 10-year Italian debt has jumped over 3%, for the first time since the end of 2018. That widens the gap with German debt - a sign that traders are getting worried.

BTP out of control. Need a circuit-breaker. pic.twitter.com/IhFMduXqj4

9.33am GMT

After 90 minutes trading, European stocks are sagging.

The FTSE 100 index is now down 4.5%, as the latest stimulus packages announced by world leaders fail to reassure the markets.

"The jury is still out on whether these measures will help stabilise financial markets."

2008 was a crisis born in shadow banking that exposed how over-leveraged the financial sector had become and for many banks, including large ones, over-dependence on short-term funding was a major weakness which, in turn, caused liquidity to dry up. The banks were in the front line of the crisis.

This time (economic) front line in the crisis, is the damage the pandemic is wreaking on companies in exposed sectors and on the economy more widely as the crisis spreads. So while market participants scramble de-leverage, the banks need money to lend to companies whose cashflow situation has changed almost overnight.

9.26am GMT

Over in Lisbon, the Portuguese government has announced a a9.2bn coronavirus economic package.

It includes a3bn of government-backed credit guarantees, a1bn for social security payments, and a a5.2bn fiscal stimulus, Reuters reports.

9.18am GMT

As markets shrug at yesterday's 350bn economic rescue plan, the UK government has suggested it could take further action - which could include more help for employees

Speaking on the Today programme, business secretary Alok Sharma said the proposals put forward by the chancellor had been well-received by groups including the CBI, but confirmed that more action would be needed.

"I completely understand that people want us to go further, particularly on this issue of support for employees, for employment... The chancellor was very clear that this is a conversation he and I are having with employers and trade unions, and we'll come forward in the coming days with further measures."

"The principle is that yes we will get support to businesses for employees measures specifically".

"The vast amount of businesses want to operate, they will behave sensibly, but I completely get this point about measures specifically for employees and employment and we will come forward with those."

9.12am GMT

The coronavirus crisis has forced Selfridges,the high-end department chain, to shut its stores in London, Manchester and Birmingham will close from 7pm tonight.

How soon before other department store stores follow Selfridges lead? High fixed costs and presumably no shoppers. https://t.co/tUjUqYBhnC

9.00am GMT

Investment bank Jefferies has welcomed Rishi Sunak's 330bn stimulus package, saying it will help the UK economy recover.

The next few months will be grim - GDP could fall by up to 15% in April-June. They told clients:

Such quarterly declines in GDP are unprecedented, certainly in living memory, and will lead to further corporate failures and economic hardship.

However, today's announcements should be seen as further important steps to help address the substantial economic costs of effectively shutting down economies, and a further move towards substantial fiscal easing and rising government debt across many economies.

8.56am GMT

The smaller FTSE 250 index is having a rough morning, again, down another 3.6%.

Transport groups National Express and Go-Ahead Group have both tumbled 20%, as commuters continue to shun services and work from home.

8.44am GMT

Fears of a deep global recession are driving the oil price down again today.

US crude has dropped nearly 4% to $25.83 per barrel, which looks to be the lowest since 2003.

#WTI just dropped to its lowest since 2003. Mind-boggling to see oil trading at these prices. #OOTT #ONGT pic.twitter.com/lsRfIdRGwz

8.35am GMT

European stock markets are also under pressure, with the Stoxx 600 index down 3.3% and Germany's DAX has dropped 4.7%.

That's a disappointment for investors, who saw stocks jump yesterday.

The fact that markets keep shrugging off the stimulus measures reflects the deep uncertainty about the economic damage about to be done. But these moves are not the 7,8,9,10% type swings. This is better - smaller daily swings are the first step to stabilisation before we can start to look at the bottom being in.

For now every rally is sold into, every financial relief effort is an opportunity to get out from positions long held. The market is behaving extremely short-term in its outlook, whilst the long-term effects are entirely unclear. The Vix remains elevated at 75, though somewhat off its highs around 85 after Wall St bounced yesterday.

8.24am GMT

Here are the top risers and fallers on the FTSE 100 this morning.

8.21am GMT

Britain's stock market has opened in the red, as the government's 330bn Covid-19 rescue plan fails to calm nerves in the City.

The FTSE 100 has dropped by 180 points, or 3.3%, to 5123 - wiping out Monday's rally.

8.15am GMT

UK supermarket Morrisons has reported a jump in sales - thanks to UK shoppers desperately stockpiling.

But it's not celebrating - instead, the group says it faces "unprecedented challenges and uncertainty" dealing with coronavirus.

"Looking after our colleagues and customers is our priority, ensuring that we have a clean, safe place to shop and work."

8.12am GMT

British fashion brand Superdry has warned it will miss its financial targets for this year.

It says 78 stores are now shut across Europe, and customer numbers are falling in the US and UK. This means it won't meet forecasts given in early January for 2020.

8.08am GMT

Restaurant Group, which runs the Wagamama, Frankie & Benny's and Chiquito chains, has told the City its trading has tumbled in the last fortnight.

It says:

Group like-for-like sales for the first eight weeks of the financial year were up 4.5%, in a period unaffected by Covid-19.

In the last two weeks we have seen an increasing and material impact of Covid-19 across our businesses with Group like-for-like sales being down 12.5%. In particular, our Concessions business has been significantly impacted with like-for-like sales down 21.7% and getting worse by the day given International travel bans.

The Restaurant Group is fundamentally a resilient business with a strong asset base, substantial cash liquidity and strong cash flow

7.57am GMT

A flurry of UK companies are warning that the coronavirus crisis is damaging their businesses.

For the first 24 weeks of the year, up to 14 March, like-for-like sales were 0.9%.

Within this recent trading has been severely impacted by COVID-19 and the containment measures taken by the Government, including the recommendation to avoid pubs and restaurants which is now expected to lead to a further significant downturn in sales.

Recent statements from the UK Government suggest that the current state of much reduced social activity is likely to continue for several months at least. If that is the case, it is unlikely that an interim dividend will be recommended in May, retaining c.20 million in the business.

7.34am GMT

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

European Opening Calls:#FTSE 5065 -4.35%#DAX 8545 -4.41%#CAC 3828 -4.10%#AEX 405 -4.58%#MIB 14597 -4.69%#IBEX 6244 -3.92%#OMX 1332 -2.94%#STOXX 2413 -4.64%#IGOpeningCall

That call appears to be finally being heeded by governments around the world. Globally, from New Zealand to Spain, impressively large fiscal packages are being rolled out to mitigate the effects of the coronavirus recession.

Most pleasingly, the United States seems to be finally getting its act together, with the White House seeking approval for a $1.2 trillion package that includes direct payments to households. The White House is proposing two tranches, of $1,000 and $2,000 to qualifying Americans within two weeks. Other proposals were $300 billion in small business loans and income tax payment deferrals. Off course this all needs to be approved by Congress, and one could argue, it probably isn't enough.

"The suspension of the Kames Property Income fund has been swiftly followed by the Janus Henderson UK Property fund also suspending on the basis of material uncertainty over the valuation of UK commercial property.

With independent valuers finding it impossible to accurately value property given the major economic uncertainty, there is little choice but to suspend dealing.

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