Shares and oil prices jump after Chinese report of coronavirus treatment – as it happened
Rolling coverage of economics, business and markets as UK services grows at fastest since September 2018
- Prices jump amid unconfirmed virus treatment reports
- World Health Organis says no treatment known
- Blowout ADP data suggest surge in US jobs numbers; US trade deficit falls
- Airbus closes Chinese factory amid coronavirus disruption
- UK services sector grows as confidence improves
3.02pm GMT
It appears that investors think the worst of the coronavirus outbreak is well and truly priced in on stock markets, with a new record high for the tech-focused Nasdaq in the US.
Strong US data has also added to a more positive mood, thanks in part to ADP jobs numbers beating expectations spectacularly.
2.43pm GMT
And it's a record high for the Nasdaq, even amid a global public health emergency.
Investor sentiment was buoyed earlier in the day by a Chinese TV report that an effective treatment had been found. The World Health Organisation quickly played this down, but the gains in stock and oil prices were nevertheless sustained.
2.35pm GMT
Confirmed: a strong open in New York.
The S&P 500 and Dow Jones both rose by 1%, while the Nasdaq increased by 1.1%.
2.28pm GMT
US stock futures are pointing to a strong open on Wall Street.
1.46pm GMT
Notable trade figures from the US: the trade deficit has fallen for the first time in six years in 2019 as the White House's trade war with China curbed the import bill.
The US Commerce Department said on Wednesday the trade deficit fell 1.7% to $616.8bn last year, the first drop since 2013.
Goods imports tumbled 1.7% last year, with exports decreasing 1.3%, showing that the Trump administration's "America First" agenda decreased the flow of goods.
1.26pm GMT
An interesting reading from the US ADP private payrolls number - it's an absolute blowout, the highest since 2015.
The ADP number is often seen as a sneak preview of the crucial non-farm payrolls, the key US labour market indicator. That's due on Friday.
January @ADP payrolls 291k vs. 158k est. & 199k in December (revised down -3k); midsized businesses gained most at 128k, with small at 94k and large at 69k; natural resources & mining was only negative sector (-2k), while leisure & hospitality was strongest (96k)
1.07pm GMT
Music streaming service Spotify has reported that it added a record number of subscribers at the end of 2019, but it made an operating loss as it spent on promotions.
1.01pm GMT
Mike Lynch, the man once hailed as Britain's Bill Gates, has submitted himself for arrest as he prepares to fight extradition to the US, where he faces fraud charges.
Since HP first raised these allegations more than seven years ago, Dr Lynch has steadfastly denied them and has worked hard to properly respond and set the record straight. The UK SFO previously investigated and did not pursue the allegations. Dr Lynch has now answered HP's claims in the appropriate forum, the High Court in London, where he attended court every day of the 10-month trial.
During that trial, Dr Lynch testified about all of these allegations for more than 20 days. He has not hidden, nor has he shied away from defending his conduct. Having patiently and diligently defended the case in England for several years, he awaits the civil trial judgment. The US DOJ should not have commenced extradition proceedings prior to the judgment of the English High Court.
12.21pm GMT
Just after midday the FTSE has retreated slightly, for a gain of 0.6%. Sterling is up by 0.2% against the US dollar at $1.3056, and by 0.4% against the euro at a1.1844.
Brent crude oil futures prices have also fallen back from the day's highs, but are still up by 2.3% today.
12.12pm GMT
An aside in the still extraordinary tale of Tesla in the last few days: even one of the investors responsible for the "Big Short" has had his fingers burned.
Steve Eisman said he covered his Tesla short "a while ago"
"Everyone has a pain threshold and when a stock becomes unmoored from valuation because it has certain dynamic growth aspects to it and cult-like aspects to it, you just have to walk away."
11.55am GMT
Well let's see what the market reaction is to this: a World Health Organisation spokesman says there is no known treatment for coronavirus.
The spokesman in Geneva said, via Reuters: "There are no known effective therapeutics."
World Health Organisation Spokesman: No Known Effective Therapeutics Against This Coronavirus
- To Hold Press Conference On Coronavirus 1500 GMT (1000 ET)
11.11am GMT
Vodafone is to remove Huawei equipment from the sensitive, core parts of its mobile networks across Europe at a cost of a200m (169m) over the next five years.
Related: Vodafone to remove Huawei from core European networks
11.08am GMT
A quick stock market stock take: the FTSE 100 is up by 0.76%, flirting with the 7,500 point mark after the unconfirmed report of a coronavirus treatment buoyed investor sentiment.
The Euro Stoxx 600 index has gained 1%, with Germany's export-sensitive Dax up by 1.2% and France's Cac 40 up by 0.9%. Oil prices have held on to most of their gains, with Brent crude futures still up by 2.8%.
Related: Coronavirus threatens Australian economy reeling from drought and fires
10.52am GMT
Protestors have blocked access to BP's head office in London to mark the first day for its new chief executive, Bernard Looney.
Looney, who was visiting staff in Germany on Wednesday, shares the "deep concerns" of the climate protesters, BP said in a statement. He will set out his vision for BP's response to the low carbon energy transition in a speech next week.
BP said Looney "hopes that what he has to say then will give people a sense that we get it and are very serious about working to address the problem."
10.34am GMT
Across the Channel, PMI readings suggest that the Eurozone economy also expanded faster than expected thanks to services - despite really weak retail sales.
The PMI composite reading for the Eurozone was also stronger than flash data, at 51.3 points in January versus an earlier 50.9 expansion, IHS Markit said. (50 is the expansion mark.)
The final services PMI in January were better than expected. This indicates that recent service sector activity has been decent, despite the sharp decline in retail sales in December.
Eurozone Composite Output PMI records its best reading since last August, ai to 51.3 (50.9 - Dec). Services activity grew solidly, but slightly weaker than previously, but manufacturing output fell at softest pace since June. More: https://t.co/Had57oZwkj pic.twitter.com/BdHjpJiUMb
10.26am GMT
Some reactions on the services PMI data.
Pantheon Macroeconomics sugggests that the 16-month-high means the Bank of England's growth forecasts for the first quarter may be too low. Samuel Tombs, chief UK economist at the consultancy, said that it was "another encouraging sign that the post-election recovery in the economy is gathering momentum". He added
It's clear responses received later in the month were much stronger than those at the start, consistent with the idea that the recovery is strengthening.
Strong rebound in Jan UK PMIs strengthens our view that the post-election rebound is real - but whether it is sustained is an open question & will hinge on future decisions made by hhlds & businesses. Also big volatility in PMIs has been a reason for caution before - in July 2016 pic.twitter.com/iRIwxnbdiF
9.57am GMT
Breaking off momentarily from coronavirus and PMI, new car sales in the UK fell by 7.3% in the first month of 2020, according to figures published today by the Society of Motor Manufacturers and Traders (SMMT).
9.51am GMT
Sterling has risen against the euro and the US dollar in the wake of the services PMI reading.
Against the euro the pound is up by 0.4% for the day at a1.1853, while it gained 0.25% against the US dollar to reach $1.3063.
9.47am GMT
The election, and the consequent narrowing of Brexit possibilities, appeared to help UK business and consumer spending, IHS Markit said.
Tim Moore, economics associate director at IHS Markit, said:
January's PMI surveys give a clear signal that the UK economy has picked up since the general election, as a diminishing headwind from political uncertainty translated into rising business and consumer spending.
Signs of greater willingness to spend and renewed positivity about the domestic economic outlook has helped lift service providers' growth projections to the highest for just under five years.
9.45am GMT
The strongest reading for the UK services PMI in 16 months came because of increased confidence among businesses and consumers, according to IHS Markit.
The reading is consistent with UK GDP rising by approximately 0.2% in the first quarter of 2020, the data company said.
Survey respondents noted that the headwind from delayed decision-making had lifted since the general election and helped to deliver a return to business activity growth in January. This was also reflected in a robust improvement in order intakes, with the rate of new business expansion accelerating to its strongest since June 2018.
9.32am GMT
The British services sector expanded faster than previously thought in January, according to IHS Markit's purchasing managers' index.
The final reading for the closely followed index was 53.3 points, representing a stronger expansion than the 52.9 indicated by early data.
9.22am GMT
That oil price reversal is gaining momentum: Brent crude futures prices are up by 3% at the time of writing at $55.60 per barrel - having started the day just above $54.
9.18am GMT
US stock market futures have gained as well after the unconfirmed reports of an effective treatment from Chinese media.
The price of futures tracking the S&P 500 index of major US stocks have risen by 0.55% today, while the equivalent futures for the Dow Jones industrial average point to a gain of 0.7% for the blue-chip index.
9.03am GMT
Oil prices, weighed down by concerns on coronavirus's impact on demand, have gained a dollar after the unconfirmed Chinese TV reports of a treatment.
Brent crude oil futures prices jumped from a low of $54.12 per barrel just after 8am to over $55.1 an hour later. They are now up by 2.2% for the day.
8.54am GMT
Stock markets have staged a rapid reversal in the last few minutes, apparently after a report of an effective treatment for coronavirus. The reports remain unconfirmed.
The FTSE 100 is now up by 0.5% at about 7,477 points, having previously been down by 0.3%. The Euro Stoxx 600 index, which measures large companies across Europe, is now up by 0.5% for the day, having previously dipped.
8.41am GMT
The biggest faller on the FTSE 100 is Imperial Brands, the tobacco maker, which fell by 9% after it warned that profits will be hit because of regulation on vaping products in the US.
The company, whose brands include Davidoff, Gauloises and Lambert and Butler, on Wednesday said profits in the first half of the year will fall by 10% and cautioned on full-year earnings because of the ban on some flavours of cartridge-based vapour devices and weaker consumer demand, Reuters reported.
Regulatory uncertainty and adverse news flow continues to affect demand in the US and Europe.
8.28am GMT
European markets have dipped mildly at the open, with the FTSE 100 down by 0.3% and the FTSE 250 flat.
France's Cac 40 index has fallen by 0.2%, while Germany's Dax is down by 0.26% in the first half hour of trading.
The truth of the matter is that [coronavirus's] impact remains significant and unknown, and still demands immediate interest from most affected economies.
8.16am GMT
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
The coronavirus outbreak remains the dominant theme across the business world, with supply chains disrupted in a crucial manufacturing region, widespread travel issues, and market volatility as investors try to work out longer-term effects.
Airbus is constantly evaluating the situation and monitoring any potential knock on effects to production and deliveries and will try to mitigate via alternative plans where necessary.
The fact that there appears to be a slowing in independent incidents in countries outside of China and a slowing in the rate of transmission in cases outside of Wuhan province appear to be making investors more comfortable for now.
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