Bank of England cuts interest rates to 0.1%, stabilising markets – as it happened

Rolling coverage as the UK central bank takes emergency action for the second time in a week and the ECB and US Federal Reserve announce more stimulus

• Bank of England cuts interest rates, adds 200bn in quantitative easing
• We wanted to calm markets fearful of lockdown, says BoE governor
• Christine Lagarde pledges 'no limits' on European Central Bank actions
• Next confident it can survive 1bn coronavirus hit
• Coronavirus - latest updates
• See all our coronavirus coverage

8.09pm GMT

Finally... the US stock market has ended the day slightly higher, reversing its early losses.

Investors pushed stocks up, following gains in Europe, as they welcomed the latest stimulus moves from the Bank of England (see here) and the European Central Bank (see here).

7.59pm GMT

President Donald Trump has also suggested he'd be amenable to blocking companies that receive federal assistance during the coronavirus pandemic from conducting stock buybacks.
He told today's press conference:

"It takes many many people in this case to tango, but as far as I'm concerned conditions like that would be okay with me."

Stopping taxpayer bailout money from going to stock buybacks or executive bonuses isn't rocket science. We just have to make it a requirement for all big businesses receiving federal money. And I've got a full list of terms for that. https://t.co/cPjVMNoN3R

7.53pm GMT

Over in Washington, Treasury Secretary Steven Mnuchin has been outlining the White House's stimulus plans.

Related: US state department warns against all Americans leaving country amid pandemic - live

7.38pm GMT

More on Norway's plans to help its airlines....

New: Norwegian government is offering c300m to Norwegian Air to avoid collapse. There will be conditions in return for state-aid which aren't yet clear but looks like the airline is being bailed out. UK arm employs c1200 people - many in process of being temporarily laid off.

7.36pm GMT

With Italy falling deeper into the covonavirus crisis each day, the country's prime minister is urging the EU use "the full firepower" of its a500bn rescue fund to support its members.

Giuseppe Conte told the Financial Times it was time for the European Stability Mechanism to offer emergency credit lines to countries reeling from the pandemic.

"Monetary policy alone cannot solve all problems; we need to do the same on the fiscal front and, as I already mentioned, time is of the essence,

"The route to follow is to open ESM credit lines to all member states to help them fight the consequences of the Covid-19 epidemic."

7.18pm GMT

There are some crazy moves in the oil market tonight.

US crude has closed 25% higher tonight, up $5 per barrel at $25.41, as prices surged back from Wednesday's slump to a 17-year low.

Wow! Crude #oil spikes 35% after #Trump states he'll get involved at the appropriate time AND the US starts building strategic reserves. pic.twitter.com/D4PhzU1TvE

7.09pm GMT

Reports are coming in that Norway's government is drawing up a credit guarantee package for its airlines, worth 6 billion Krona (460m).

The plan could provide a 3bn crown lifeline for Norwegian Air, but only if it can raise some funding itself:

Norway will back airlines with credit guarantees worth up to 6 billion Norwegian crowns in a bid to stave off collapse in the industry amid the coronavirus crisis, the government said on Thursday.

Norwegian Air, which has grounded most of its aircraft and will temporarily lay off 90% of staff, can get up to 3 billion crowns, but must boost its equity to get the full amount, Industry Minister Iselin Nyboe told a news conference.

*NORWAY LAWMAKERS AGREE ON BROAD PACKAGE FOR AIRLINES: LABOR MP

6.50pm GMT

Stocks are rallying harder in New York, with the Nasdaq now 5% higher.

Traders are weighing up the latest central bank interventions from the BoE, the ECB and the Fed - and perhaps wondering if the worst of the market mayhem is over.

6.44pm GMT

RBC Capital Markets reckon the Bank of England was forced to expand its QE (bond-buying) programme because UK government bond prices started falling (pushing interest rates/yields up).

For the market, we think this package should go a long way in compressing Gilt yields. In line with other 'risk free' markets around the globe, Gilt yields rose over the last weeks, sending both nominal and, probably more important, real yields up.

This clearly is not acceptable to a central bank that tries to help cushion the blow of an unprecedented economic crisis.

Hence, today's announcement, together with the ECB's substantial package and the forthcoming purchases from other central banks in their respective markets....

6.18pm GMT

Capital Economics reckon the Bank of England may have to take even more dramatic measures at its scheduled meeting next week.

They point out that today's shock interest rate cut, alongside a massive dose of QE, hasn't had much impact on the bond market yet.

The big package of measures announced by the Bank of England today in its second emergency meeting in just over a week is designed to ease the stress in the financial markets and to support the recovery once the full economic hit from the coronavirus has been felt.

So far it has only reduced gilt yields by 10-15 basis points, so the Bank may have to do even more at its next meeting on Thursday 26th March.

6.03pm GMT

Over in Westminster, Boris Johnson has said companies should "think very carefully" before they lay off their staff.

He also told the daily Covid-19 briefing that government will support business, and businesses should support their workers.

Related: UK coronavirus live: Boris Johnson says country can 'turn the tide' in 12 weeks

5.58pm GMT

IKEA have got in touch with more details of their store closure plan (see earlier post):

Those able to perform their roles from home are doing so. Our online fulfillment operations and customer contact centre are still in operation.

Those store workers who are fit and healthy are being asked to come in to into work when stores are shut to the public and we'll work together to define how we best support our customers and communities. Those self-isolating in line with government guidelines are being paid.

5.51pm GMT

Stocks are still higher on the New York stock exchange - but there aren't so many people there to see it.

5.50pm GMT

Lufthansa Group has announced it will allow its staff to volunteer as medics to combat the coronavirus crisis.

5.45pm GMT

The coronavirus has had a devastating impact on demand for cruises.... so Carnival has an idea -- use its ships as temporary hospitals.

The cruise ship operator said it would only ask interested parties to cover the essential costs of the ship's operations while in port.

"With the continued spread of COVID-19 expected to exert added pressure on land-based healthcare facilities, including a possible shortage of hospital beds, Carnival Corporation and its brands are calling on governments and health authorities to consider using cruise ships as temporary healthcare facilities to treat non-COVID-19 patients, freeing up additional space and expanding capacity in land-based hospitals to treat cases of COVID-19," Carnival said in a statement.

5.25pm GMT

As we've become used to recently, there were some wild swings on the FTSE 100 today.

Investment manager M&G jumped by 34%, which largely reverses three days of heavy losses.

5.08pm GMT

There will be some relief for investors and policymakers as the FTSE 100 and other major European markets close higher.

Here are the closing scores:

4.36pm GMT

Andrew Bailey, the new Bank of England governor, has commented on the decision today to cut rates to 0.1% and pump 200bn into the economy through bond purchases.

My colleague Phillip Inman reports:

4.26pm GMT

The mood on Wall Street appears relatively upbeat as the major indices extend gains:

4.14pm GMT

Here is our full story on the Bank of England's latest emergency interest rate cut:

Related: Bank of England cuts interest rates to all-time low of 0.1%

4.03pm GMT

Here is the statement from Ikea about plans to close stores in response to the coronavirus pandemic:

These are extraordinary times & our absolute priority is to ensure the health & safety of our customers & co-workers. As a precautionary measure against the ongoing risk of COVID-19, we will temporarily close all UK & Ireland stores to customers on 20th March, 6pm.

You will continue to be able to browse and purchase our range online or through the app, and have our products delivered directly to you. You will also be able to request a contact-free delivery if you prefer.

3.56pm GMT

Ikea will close all its stores in the UK and Ireland from 6pm tomorrow, Ashley Armstrong from The Times reports:

** IKEA is shutting all its stores in the UK and Ireland from 6pm tomorrow to prevent spread of coronavirus

3.51pm GMT

M&S is closing its cafes and and clothing fitting rooms so that 4,600 staff can shift to its food business to help keep shelves stocked.

The retailer is also bringing in temporary purchasing restrictions of two items per customer on frozen foods, homecare, groceries and eggs.

In addition it will be reserving the first hour of trading for the elderly and vulnerable on Mondays and Thursdays with a special one off tomorrow, Friday 20 March.

3.49pm GMT

Meanwhile, the grim corporate news keeps flowing. My colleague Gwyn Topham brings this report:

Iberia, British Airway's sister airline in International Airlines Group, has proposed laying off 90% of its airline staff for three months, the company said on Thursday, in response to the coronavirus crisis.

3.42pm GMT

The pound and the FTSE 100 are reaping the benefit of the Bank of England's decision to cut interest rates for the second time in a week.

The pound is up 2.8% against the euro at a1.0933 and up 1.3% against the dollar at $1.1772.

3.27pm GMT

The latest emergency rate cut from the Bank of England has been well received so far by the markets and by analysts.

Tom Stevenson, investment director for personal investing at Fidelity International, says the Bank is "right to throw everything at this".

Britain is now a whisker away from the negative interest rate club. Rates have never been this low in the more than 300-year history of the Bank of England. Purchases of government and corporate bonds have been ramped up. A desperate measure for a desperate situation.

Both governments and central banks have quickly acknowledged that we face a sharp downturn. The question now is whether the Bank's assumption that the hit will be temporary is correct. It could be. The infrastructure of global supply remains in place and global demand should bounce back quickly once the outbreak passes.

3.22pm GMT

The Bank's decision to cut rates and pump more stimulus into the economy is a clear indication that UK policymakers are ready to make coordinated efforts to support the economy.

That's according to Ivan Petrella, associate professor of economics at Warwick Business School. He adds:

The fact that the Bank of England is ready to step up its efforts to stimulate the economy gives the UK a clear advantage over countries in the EU.

It is now clear that the prolonged impact of a shut-down to the economy, coupled with the large fall in demand and related uncertainty, will most likely lead to a severe downturn unless we see more drastic and decisive policy actions. That will most likely lead to a massive credit crunch for large sectors of the economy.

3.10pm GMT

The emergency rate cut is the Bank of England's second in a little more than a week, and is the latest move as policymakers at both Threadneedle Street and the Treasury attempt to limit the economic damage of the coronavirus pandemic.

After the Bank announced the latest cut, the chancellor Rishi Sunak reiterated his pledge that he is prepared to take "whatever action is necessary" during the crisis.

3.02pm GMT

The coronavirus pandemic has truly moved UK economic policy into uncharted territory with that emergency rate cut.

The rate cut takes the Bank of England the lowest it can feasibly go, said Jeremy Thomson-Cook, chief economist at payments company Equals Group. New governor Andrew Bailey may have to hand over to chancellor Rishi Sunak now, he added.

Another day, another rate cut by the Bank of England. The base rate is now at the lowest level we think the Bank of England is prepared to go to and with that will come a not so unsubtle hand-off of the stimulus baton to the Treasury. Lower rates and additional quantitative easing can keep markets satisfied and borrowing costs for both businesses and the government down but unless money is forced into the hands of small businesses soon, then it will be for nothing; they are the ones laying off staff due to a liquidity shock.

Sterling is higher on the day following the announcement having endured its fifth worst day of the century against the USD yesterday.

2.55pm GMT

Sterling is now flying against the euro.

It's up by 1.8% for the day, hitting highs above a1.0839 - althought that still remains short of levels hit just yesterday when the pound slumped.

2.52pm GMT

The Bank of England's move has boosted demand for UK government bonds. Yields, which move inversely to prices, have fallen.

From Reuters:

Yields on British government bonds, known as gilts, fell sharply after the BoE move. Two-year gilt yields were last down 15 basis points [0.15 percentage points] on the day at around 0.19%, while 10-year gilt yields were almost 4 bps lower at 0.76% reversing earlier rises.

2.50pm GMT

The FTSE 100 is now gaining: it's up by 0.6% for the day.

Sterling is up by 0.4% against the US dollar.

2.48pm GMT

The quantitative easing purchaes will focus on UK government bonds, the Bank said:

The majority of additional asset purchases will comprise UK government bonds. The purchases announced today will be completed as soon as is operationally possible, consistent with improved market functioning. The Bank will issue further guidance to the market in due course.

2.47pm GMT

The rate cut takes the Bank of England's base rate to its lowest in history, at 0.1%.

The Bank also announced another 200bn in bond buying under the quantitative easing programme, and the extension of the term funding scheme, which encourages banks to pass on the benefits of interest rate cuts to companies and households.

2.43pm GMT

The Bank says the cut has come in response to tightening financial conditions.

Over recent days, and in common with a number of other advanced economy bond markets, conditions in the UK gilt market have deteriorated as investors have sought shorter-dated instruments that are closer substitutes for highly liquid central bank reserves. As a consequence, UK and global financial conditions have tightened.

2.40pm GMT

Here is the link to the Bank of England's full statement.

2.38pm GMT

The Bank of England has cut interest rates to 0.1%, in a second emergency cut prompted by the coronavirus outbreak.

This is from the statement just published:

At its special meeting on 19 March, the MPC judged that a further package of measures was warranted to meet its statutory objectives. It therefore voted unanimously to increase the Bank of England's holdings of UK government bonds and sterling non-financial investment-grade corporate bonds by 200 billion to a total of 645 billion, financed by the issuance of central bank reserves, and to reduce Bank Rate by 15 basis points to 0.1%. The Committee also voted unanimously that the Bank of England should enlarge the TFSME scheme, financed by the issuance of central bank reserves.

2.25pm GMT

Newsflash: US stock market indices have staged a reversal, and all three major indices are now positive for the day.

The S&P 500 is now up by 0.6% for the day.

2.15pm GMT

US carmaker Ford has drawn down $15.4bn (13bn) of cash from two credit lines as it looks for to build buffers for coronavirus disruption.

While we obviously didn't foresee the coronavirus pandemic, we have maintained a strong balance sheet and ample liquidity so that we could weather economic uncertainty and continue to invest in our future.

Our Ford people are extremely resilient and motivated, and I'm confident in the actions we are taking to navigate the current uncertainty while continuing to build toward the future.

1.34pm GMT

The interventions of the Federal Reserve and the European Central Bank have not stopped Wall Street from falling back at the opening bell.

The S&P 500 and the Dow Jones industrial average have both lost 1% in early trades.

1.32pm GMT

The US Federal Reserve has announced that it will give access to $450bn in dollar swap lines to nine central banks - extending the use of instruments that played a key role in fighting the financial crisis a year ago.

Demand for US dollars has become heightened in recent days as companies and investors look to build up cash buffers to ride out the coronavirus crisis. That has strained currency and bond markets.

These facilities, like those already established between the Federal Reserve and other central banks, are designed to help lessen strains in global US dollar funding markets, thereby mitigating the effects of these strains on the supply of credit to households and businesses, both domestically and abroad.

1.13pm GMT

Another retail update from the Guardian's Joanna Partridge, this time on pharmacy chain Superdrug.

CK Hutchison, the Hong Kong-based conglomerate which owns the high-street chain Superdrug, expects Superdrug and other health and beauty stores in western Europe to remain open during the coronavirus outbreak because they have a pharmacy format.

We are in "mass essential" business selling high demand products, such as hand sanitisers, personal wash, vitamins and other health lines and also household cleaning.

1.01pm GMT

Clarks has closed all its own stores in the UK and Republic of Ireland.

We will continue to monitor the situation and will be reviewing the decision of when to re-open our stores when the health and wellbeing of our employees and customers can be protected.

12.49pm GMT

The number of people claiming for unemployment in the US has jumped much more than economists had projected, in a sign of the impact of the coronavirus pandemic on the workforce.

Claims for US unemployment benefits rose more than expected to 281,000 in the latest week ending 14 March, from an unrevised 211,000 the previous week, the Labor Department said. Economists polled by Reuters had forecast claims would rise to 220,000.

The hotel chain Marriott, retailer Macy's and others have laid off thousands of staff this week, so we can expect to see that number rise sharply in the weeks ahead.

12.35pm GMT

Waitrose is closing all its cafes and rotisseries and temporarily suspending making coffees as it joins other supermarkets in tightening restrictions on purchases, writes retail correspondent Sarah Butler.

12.25pm GMT

Next is leading the FTSE 100 risers during a bumpy day - it's still up by 12%.

Investment group 3i has also gained 12%. It warned that its brands Action, BoConcept and Hans Anders in the retail sector, and Audley Travel and ICE in the travel space could be affected by the outbreak, but said the disruption would be modest.

12.08pm GMT

Germany is to be plunged into recession due to the global health crisis, German economists have said this morning, writes the Guardian's Berlin correspondent, Kate Connolly.

Economists from the German Institute for Economic Research, the DIW, and the Munich-based Ifo Institut, which measures business climate, have both said a recession is "unavoidable". "The German economy is certain to plunge into a recession," DIW's head of forecasting and economic policy, Claus Michelsen said.

Either a 'V', that is to say a quick recovery effect for production and consumption after a rapid collapse, just as was the case with other epidemics, such as Sars, the swine and bird flus.

11.53am GMT

As we approach midday in London, here's a recap of market moves in the wake of the European Central Bank's "no limits" stimulus package.

11.43am GMT

Investors are looking anywhere they can to get cash, which is impacting the market even for government debt - usually seen as a safe haven.

The yield on 10-year UK government bonds has risen by 0.12 percentage points today to 0.91%. Yields move inversely to prices, so a rising yield means investors are selling more bonds.

11.08am GMT

Britain's manufacturing industry lobby group has called for an immediate deferment of VAT, PAYE and National Insurance payments in response to the coronavirus outbreak, warning that thousands of jobs could be lost otherwise.

There are alarm bells going off right across the manufacturing sector with the prospect of substantial lay-offs looming. Order books are collapsing and this is creating immediate cashflow issues for companies which need addressing within days not weeks.

The measures already announced by the chancellor are welcome but, events are so fast moving that we need to go further. As such, we need urgent measures which will have an immediate impact on the ability of companies to stay afloat during this crisis and retain their staff.

10.58am GMT

Market turmoil has boosted trading in recent weeks, which is ultimately good news for some investment banks like Credit Suisse, writes the Guardian's banking correspondent, Kalyeena Makortoff.

In an unscheduled market update on Thursday, the Swiss lender said higher trading volumes were boosting its private banking revenues, helping offset a drop in its capital markets division. (Capital markets bankers help companies issue new shares to raise cash - but the current market sell-off has forced firms to look elsewhere for new funds)

This has substantially increased our resilience and preparedness for the impact of the spread of COVID-19 and the consequent market and economic volatility.

We continue to monitor our credit exposures prudently in light of these conditions. However, we are very satisfied with how the teams have so far navigated the increased volatility, including in areas such as share-backed lending.

10.50am GMT

Germany's Dax is now in the red as well as the FTSE 100. It appears that the rush provided by the European Central Bank may be fading.

However, a decline of 0.8% on the Dax today still represents stability compared to the moves of recent weeks. The question is whether investors hold their nerve, considering the eye-watering recession forecasts for every major economy.

GERMANY'S IFW INSTITUTE REVISES GDP FORECAST, NOW EXPECTS GDP TO SHRINK BETWEEN 4.5% AND 9% IN 2020

10.46am GMT

Central banks are queuing up to stimulate their economies.

Here's the latest from Reuters on Taiwan:

Taiwan's central bank cut interest rates for the first time in more than four years on Thursday to a new low and reduced its growth forecast for the export-oriented economy amid growing fears that the coronavirus could trigger a global recession.

The central bank lowered its benchmark rate by 25 basis points to 1.125%, it said in a statement after a policy meeting.

10.43am GMT

Here's more on the deal between the government and energy suppliers, from the Guardian's energy correspondent, Jillian Ambrose.

The government has agreed new emergency measures with energy suppliers to help households which are in financial distress or unable to leave home to top-up pre-pay energy meters.

The government has ordered energy companies to offer struggling customers help meeting their energy bills by reducing or pausing bills, and offering debt repayments plans.

10.38am GMT

An interesting story from the Guardian's Brussels correspondent, Jennifer Rankin. There have been widespread anecdotal reports of the internet struggling under the weight of people working from home, and now the EU has confirmed it.

The European Union's industry chief has called on Netflix and other streaming services to take action to reduce congestion on the internet, amid surging demand as millions of people confined to their homes go online.

Streaming platforms, telecom operators and users, we all have a joint responsibility to take steps to ensure the smooth functioning of the internet during the battle against the virus propagation.

The commission would also like internet users to reduce their data consumption, by using Wi-FI or choosing lower resolution for content.

Related: Coronavirus live news: some London tube stations to close while Hubei reports no new cases

10.13am GMT

Despite Next and British Gas owner Centrica (up 12% after the government agreed a deal to secure households' energy supplies) the FTSE 100 has now actually slipped to a loss of 0.9%.

Some of the momentum on European exchanges has been lost as well. The Dax in Germany is up by only 0.5% according to our latest data, although the main European benchmarks outside of London are still green for today.

10.09am GMT

Next, the clothing and homewear retailer, is the top riser on the FTSE 100 after it put out a fairly confident statement this morning. Shares are up by 14%.

When the pandemic first appeared in China, we assumed that the threat was to our supply chain. It is now very clear that the risk to demand is by far the greatest challenge we face and we need to prepare for a significant downturn in sales for the duration of the pandemic.

9.57am GMT

Discount retailer B&M has revealed some of the items that are flying off its shelves, as the retail sector adjusts to much of the country working from home.

Increased sales of hand-washing products are perhaps understandable, but a sevenfold increase in Pot Noodle sales is somewhat alarming, notes Guardian retail reporter Sarah Butler.

B&M has issued a handy list of how sales have surged on different items.. Pot Noodle.. : pic.twitter.com/2JPePHIqIU

9.51am GMT

Influential ratings agency Moody's has published a verdict on the UK government and Bank of England coronavirus measures. They said the moves support the banking sector and offset some of the risks to the UK's debt rating.

However, there is of course large uncertainty around the judgements - and the agency also quibbled with the idea of a large expansion in government debt potentially being problematic (at least from the point of view of their investor clients).

While businesses small and large will welcome short-term relief from cash-flow constraints, the extent to which the new initiatives will mitigate the damage to the economy and the resulting cost to the banking system remains unknown because the magnitude and duration of the coronavirus-induced disruption itself is highly uncertain.

While their scale underlines the gravity of the situation, any measures that help to reduce the damage caused by the economic downturn will help limit a decline in banks' asset quality, and therefore support their creditworthiness.

If this effort was successful in reducing the deterioration in banks' asset quality, this would have mixed credit implications for the sovereign. It would clearly entail some fiscal cost, but it would also reduce any increase in the sovereign's susceptibility to banking sector risk.

9.26am GMT

German business morale has slumped to its lowest since 2009, during the financial crisis, in a clear sign that recession appears inevitable.

The Ifo institute said preliminary results from its March survey showed its business climate index slumped to 87.7 from 96.0 in February, Reuters reported.

This is the biggest drop since 1991 and the lowest value since August 2009. Germany is falling into recession.

9.18am GMT

Let's see some reaction to the European Central Bank's stimulus measures - which came late in the evening, no doubt after frantic discussions in its Frankfurt headquarters.

"We went to bed early last evening, which appears to have been a mistake," said Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics.

We have been very critical of the ECB in the past few weeks, primarily because we consider the message that monetary policy is close to its limits, with the inference that fiscal policy has to step in, as a very dangerous signal to send to markets, especially in this environment. We are happy to eat our words today, at least based on the scope and size of this package, and, just as importantly, the manner in which it is communicated to markets. The ECB has it's mojo back, and that's a good thing!

We don't know whether someone from the EuroTower made a phone call to Mario Draghi but the beating around the bush should be over, at least for now.

In the short run, financial markets and the economy will still depend on how the pandemic and with it the preventive government measures to tackle it evolve. This will be the main determinant for the depth of the recession.

This also demonstrates that the ECB will continue to unveil measures to combat the dislocations in the market resulting from the Pandemic. The increased quantitative easing program combined with the measures the ECB announced at last week's should be very supportive for the Euro-zone. We expect policy to remain extremely accommodative and the ECB to support markets as we have fiscal loosening of European Countries, which has been one of Lagarde's key demands.

9.04am GMT

Direct Line, the UK's biggest car insurer, has dropped plans for a 150m share buyback as it looks to conserve cash during the coronavirus crisis.

The company, which also owns the Churchill and Green Flag brands, has previously said that it expects to be able to cope with coronavirus-related claims. Advice to Britons to self-isolate and practice social distancing could reduce the number of car accidents.

8.57am GMT

Here's what a750bn in stimulus (or more than a1tn if you count previously announced measures) gets you: a concerted rise in European equities.

France and Italy are leading the way.

8.44am GMT

The airline industry is under extraordinary pressure worldwide. Qantas and Lufthansa today announced more pain.

The longer this crisis lasts, the more likely it is that the future of aviation cannot be guaranteed without state aid.

8.29am GMT

The gains on the FTSE 100 have accelerated: the blue-chip index has now gained 0.8%. It is volatile though.

However, the mid-cap FTSE 250 has moved by 1.2% in the other direction.

8.24am GMT

London-based fashion group Burberry has warned that the coronavirus outbreak could reduce sales by between 70% and 80%.

We are implementing mitigating actions to contain costs and protect our financial position, including renegotiating rents, restricting travel and reducing discretionary spending.

8.15am GMT

Saying that European stock markets have stabilised somewhat does not mean that the turmoil is over, however. There is little sign of a let-up on currency markets this morning.

The pound has lost 1% against the US dollar so far today, with a global scramble by companies to free up cash dollars underway. Its lowest point was $1.1471.

8.04am GMT

In London the FTSE 100 has gained 0.2% in early trading. The mid-cap FTSE 250 index is flat.

The Dax in Germany gained 0.8% and France's Cac 40 gained 0.5%.

7.50am GMT

Good morning, and welcome to our live coverage of economics, business and markets in the UK, the eurozone and worldwide.

The European Central Bank has become the latest to unleash a massive wave of quantitative easing in a bid to sustain the eurozone economy - which like everywhere is under huge pressure from lockdowns trying to control the coronavirus pandemic.

Extraordinary times require extraordinary action. There are no limits to our commitment to the euro. We are determined to use the full potential of our tools, within our mandate. https://t.co/RhxuVYPeVR

The Governing Council will do everything necessary within its mandate. The Governing Council is fully prepared to increase the size of its asset purchase programmes and adjust their composition, by as much as necessary and for as long as needed. It will explore all options and all contingencies to support the economy through this shock.

To the extent that some self-imposed limits might hamper action that the ECB is required to take in order to fulfil its mandate, the Governing Council will consider revising them to the extent necessary to make its action proportionate to the risks that we face. The ECB will not tolerate any risks to the smooth transmission of its monetary policy in all jurisdictions of the euro area.