Wall Street and FTSE 100 suffer worst week since 2008 – as it happened

Graeme Wearden

from on 2020-02-28 21:45 (#50006)

World stock markets endure their worst week since the financial crisis, amid growing fears of a global recession and coronavirus pandemic

9.49pm GMT

PS: European stock markets are currently being called HIGHER on Monday, thanks to the late recovery on Wall Street.

But there's a long way to go yet, depending what happens this weekend on the coronavirus pandemic.

EU futures since close:#FTSE 6707 +1.92%#DAX 12041 -2.64%#CAC 5397 -1.79%#AEX 549 -1.95%#MIB 22437 +2.06%#IBEX 8869 -1.30%#OMX 1703 -1.09%#STOXX 3386 -2.02%

9.44pm GMT

Time for a closing summary, after some of the most turbulent days we've seen in the City recently.

Stock markets around the globe have suffered their worst week since the heights of the financial crisis more than a decade ago.

Dow Jones pares losses but nevertheless falls 350 points to cap the worst week for Wall Street since the financial crisis. https://t.co/jzONJhrUZH pic.twitter.com/9JbfG0N6ya

This week's horror record in one chart. Dow down 12.4%, Amex plunged 18.6%, Boeing 16.7%, Wal Disney 15.3%. pic.twitter.com/FeCno3xUTI

Precious Metals update:#Gold 1578 -4.06%#Silver 1661 -6.59%#Platinum 861 -4.69%#Palladium 2587 -9.59%#XAUUSD #Commodities

NEW: US Federal Reserve issues unscheduled statement from Fed Chair Jerome Powell saying "coronavirus poses evolving risks to economic activity" and that Fed "will use our tools and act as appropriate to support the economy" pic.twitter.com/pNgf9Q19K3

9.14pm GMT

Newsflash: The US stock market has posted its worst weekly loss since autumn 2008.

This is the seventh straight day of losses, pushing Wall Street down to levels not seen since last autumn. It inflicts more pain on investors large and small.

S&P 500 couldn't close at the highs.

Hate to see it.

Those last few minutes tho. pic.twitter.com/X5bfJB5jkb

BREAKING: The Dow falls more than 300 points to cap the worst week for Wall Street since the financial crisis. https://t.co/Ddv6uV60Fd pic.twitter.com/5quoXtsffx

8.42pm GMT

There's no sign of a late rally on Wall Street.

With 20 minutes to go, the Dow Jones industrial average is down 907 points or 3.5% -- ending the week on a real low point.

8.41pm GMT

Money is continuing to pour into US government bonds tonight, driving the yield (or interest rate) to fresh record lows.

10-year Treasury bills are now yielding just 1.12% - a remarkably low interest rate that flashes danger signs. If investors are buying bond at that level, they're desperate to preserve capital and worried about a recession.

10-year US Treasury yield is bananas. Another day like today will put it below 1%. pic.twitter.com/vcgNOn9uhK

8.36pm GMT

The US stock market is now over 13% below its record highs, set just last week(!).

"We are now past a mere 10% technical correction and seem to be heading for a bear market, which is only logical when one considers the global backdrop.

8.04pm GMT

We really can't blame Jerome Powell for trying to reassure the markets with his statement tonight.

But the reality is that central banks are somewhat powerless in the face of a virulent pandemic.

"Further policy rate cuts are a possibility if a global pandemic actually develops with health effects approaching the scale of ordinary influenza, but this is not the baseline case at this time."

As we now brace for a March rate cut, noting St. Louis Fed Bullard said this earlier today: "If you change interest rates around, that's not going to change how the virus behaves."

7.58pm GMT

Here's confirmation that Britain's stock market just suffered its third-worst week since 1984, from Sky's Ed Conway.

The FTSE 100, Britain's main share index, launched in 1984. Its five worst weeks:
Black Monday (19-24 Oct 1984): -22%
Financial Crisis (6-10 Oct 2008): -21%
Coronavirus (24-28 Feb 2020): -11.1%
Fin crisis (17-21 Nov 2008): -10.7%
Euro crisis (1-5 Aug 2011): -9.8% pic.twitter.com/BfZI5bSaGJ

After this week's Coronavirus-related falls the FTSE 100, Britain's index of top companies, is now back to its lowest level since the weeks after the EU referendum in 2016 pic.twitter.com/A7ndOBJvbS

7.45pm GMT

Newsflash: America's top central banker has said the Federal Reserve will act "as appropriate" to protect the US economy from the coronavirus crisis.

"The fundamentals of the U.S. economy remain strong

"However, the coronavirus poses evolving risks to economic activity. The Federal Reserve is closely monitoring developments and their implications for the economic outlook. We will use our tools and act as appropriate to support the economy."

7.39pm GMT

The coronavirus will have a massive impact on the world economy, affecting techology, transport, retail and telecoms as well as the market.

Here's our round-up of what's happening, and what could happen next:

7.37pm GMT

Here's our news story about today's market losses, including the 200bn wiped off the FTSE 100:

7.18pm GMT

UK online grocer Ocado has emailed some customers tonight, saying it is experiencing a lot more demand than usual.

I suspect this is households looking to stock up, in case the coronavirus leads to shortages in the shops.

We want to let you know that we're experiencing exceptionally high demand at the moment. More people than usual seem to be placing particularly large orders.

As a result, delivery slots are selling out quicker than expected.

The stage for me to take Coronavirus seriously has begun - it's now messing with my Ocado orders pic.twitter.com/YeadKimThi

I did wonder when the #Coronavirus panic would positively impact @Ocado (and other home delivery services)... turns out the website grinding to a halt in the last several hours wasn't a coincidence. pic.twitter.com/c6yYZd4Esp

7.06pm GMT

With two hours to go until the closing bell, Wall Street is still deep in the red.

6.58pm GMT

Vanguard, the asset management giant, appears to have had some technical issues today:

We understand that some clients may have experienced difficulty accessing their accounts on our site or by phone. Those issues have been resolved and we apologize for the inconvenience.

6.45pm GMT

German airline group Lufthansa has just announced it is cutting flight capacity, due to the Covid-19 crisis.

It plans to cut short- and medium-haul flights by up to 25%, and will also drop some long-haul flights too.

6.36pm GMT

Analysts at MUFG bank fear we could see further losses before this correction has played out.

The US election race, and the UK-EU trade calks, could both rattle markets - they told clients tonight:

The near 15% collapse in the S&P 500 this week could have more to go. We see more fundamental justification for this extending than the fundamental backdrop to the 15% correction in December 2018....

Amongst the unfavourable backdrop of COVID-19 risks, next week we have Super Tuesday; the start of the UK-EU trade negotiations and a Bank of Canada policy meeting.

"It is official: this is worst week for the UK stock market since the global financial crisis. The FTSE 100 has dropped 11.1% (or 823 points) on the week to 6,580, the third worst weekly showing for the index since records began in 1984....

"Companies are already experiencing supply chain problems and the idea that many people might be forced to work from home could impact productivity. Shutting schools would also compound the problem as parents would have to look after their children and may not be able to work, and consumer spending would likely fall."

"To be sure, we sympathize with the narrative that some economic activity could be lost for good. In other words, you don't double up on certain services spending once the dust settles because you put it off on COVID-19 fears.

[But]Even if we are looking at a supply shock where postponed activity does not fully get recaptured, it still does not warrant a [more than] 10% repricing in a market that is supposed to be forward-looking in nature and ultimately realigns with fundamentals,"

6.21pm GMT

Stock brokers AJ Bell have very helpfully worked out the biggest fallers on the London stock market this week.

And it's no surprise that holiday firms TUI tops the list, with several airlines close behind, due to concerns that tough travel restrictions will be imposed (and that consumers will shun foreign holidays anyway).

6.19pm GMT

The FTSE 250 index of medium-sized UK companies also had a thoroughly dire week.

It fell by 2.29% today, meaning it has lost 11% of its value since Monday morning (just like its big sibling, the Footsie).

5.57pm GMT

Although the markets have a very painful week, it pales alongside the suffering of those who have lost loved ones to Covid-19.

The death toll is rising towards 3,000, including the first Briton today. With more than 80,000 cases already officially reported, the virus is causing an awful lot of misery.

Until a week ago, employees who were about to retire were looking at their pension statements with some confidence after share prices had hit record highs around the world. Shares in the US tech stocks, in which many UK pension funds are invested, had seemingly been on an ever-upward trajectory.

However, after a week in which global stock markets plunged and predictions that the outbreak could match the financial crash of 2008, imminent retirees are facing a far less certain future, than even a week ago.

5.44pm GMT

European stocks markets have also suffered their worst week since the financial crisis of autumn 2008.

The Stoxx 600 has shed 12.2% this week, with big losses on the German Dax (-12.4% this week) and the Italian FTSE MIB (-11.3%), as well as the FTSE 100 (-11.1%).

We believe equities will remain under pressure. The sell-off is now in-line with the average 'non-recessionary' correction, but a recession is a growing risk and it is difficult to see how conventional policy easing can calm investor's nerves.

5.35pm GMT

Reuters has calculated that the coronavirus panic has now wiped almost $6 trillion off global markets this week, thanks to the latest losses in Wall Street and Europe.

That's based on the MSCI All-Country World Index, a broad measure of global equities.

The rout showed no signs of slowing as Europe's main markets slumped 3-5% and the ongoing dive for safety sent yields on U.S. government bonds, widely seen as the world's most secure asset, to fresh record lows.

Hopes that the epidemic which started in China would be over in months and that economic activity would quickly return to normal have been shattered this week as the number of international cases spiralled.

5.28pm GMT

Here's a chart showing how the FTSE 100 slumped by 11% this week, its worst run since autumn 2008 when the financial sector was on the brink.

5.07pm GMT

This chart of the FTSE 100 over the last five years gives some sense of the scale of this week's rout:

4.53pm GMT

Newsflash: More than 200bn has been wiped off Britain's leading shares this week, as the Covid-19 crisis triggered the worst sell-off in over a decade.

Britain's FTSE 100 index has just closed for the day, down 3.18%.

4.42pm GMT

European stock markets have provisionally closed with a 3.8% slump.

We're just waiting for the final numbers on the FTSE 100 now (it's gone into a closing auction, which could take a little while).

4.36pm GMT

Precious metals, such as gold, are falling sharply.

Gold in meltdown:#Gold 1588 -3.49%#Silver 1672 -5.94%#Platinum 862 -4.62%#Palladium 2585 -9.66%#XAUUSD #Commodities pic.twitter.com/u8hxwVjT74

Gold sees its biggest one-day drop since 2013 as investors sold the metal to cover margin calls https://t.co/0XcQNwRqYw pic.twitter.com/sQSEPb6IXg

4.30pm GMT

The pound is also falling, down over a cent against the US dollar at $1.276.

That's its lowest level since last October, when Boris Johnson was renegotiating Britain's withdrawal agreement from the EU.

4.26pm GMT

Jonas Goltermann of Capital Economics predicts that the US central bank could be forced to slash interest rates, if the coronavirus epidemic worsens:

The S&P 500's 14% plunge this week is the fastest such correction on record; the VIX index is now at its highest level since the euro-zone crisis in 2012; and the 10-year US Treasury yield has fallen to a record low.

These moves may force policymakers to respond whether they want to or not.

4.24pm GMT

The London stock market is staggering towards the sanctuary of the weekend, after another torrid session.

Indeed, it's been a thoroughly awful week in the City, wiping more than 10% off blue-chip stocks.

Equity markets in Europe have gone from bad to worse to awful as the selling pressure has gained momentum all week. What started out as a tumble on Monday has turned has turned into panic selling as traders are terrified about the possibility of Europe undergoing an economic slowdown or a possible recession because of the coronavirus. The fear of the unknown is causing traders to lose their nerve and just cut and run as far as stocks are concerned.

The airline sector has endured a brutal sell-off this week as dealers took the view that travel would be greatly diminished on account of the coronavirus taking hold in Europe. It has been non-stop for the aviation industry as short-sellers stepped up their activity. Dealers' fears were confirmed today when, BA's owner International Consolidated Airlines Group, warned that demand will be negatively impacted, and that it will be hard to make a profit projection. Finn Air warned on profits on account of the health emergency, while easyJet said that flights will be cancelled.

4.20pm GMT

Bloomberg's Joe Wiesenthal has spotted something interesting....

With this stock market plunge, the S&P 500 under Trump's first term is no longer outperforming Obama's first term https://t.co/1Saozv5gHe pic.twitter.com/fKTAWFGEUb

4.17pm GMT

Larry Kudlow, Trump's national economic council director, was doing his best to calm the markets, arguing the fall has gone too far.

But he has a big problem here: Donald Trump.

Usually presidents avoid taking credit for rises in the markets because they realize they know events beyond their control can wipe out those gains. Trump, however, has boasted time and again about how he has driven recent rallies in the markets. As criticism mounts about his handling of the outbreak, he runs the risk of owning the fall as well.

4.16pm GMT

Despite Larry Kudlow's best efforts, the Dow Jones industrial average is still DEEP in the red - currently down over 900 points (3.5%).

4.08pm GMT

Larry Kudlow, director of the United States National Economic Council, is trying to calm the markets.

Kudlow has told reporters that the US economy is still sound, and is downplaying the impact of this week's rout.

We've been through this many, many times before.

And I don't think, even though it's a front page story and no-one likes to see their asset values go down, I don't think it's going to have much of an impact [on the wider economy].

US economy is "fundamentally sound," adds @larry_kudlow. "You've got to have confidence in the US economy."

"I don't think people should panic...stocks look pretty cheap to me," says @larry_kudlow. "It looks like the market has gone too far." pic.twitter.com/cQHOzvrcOc

There'll be more US #coronavirus cases but that doesn't mean it'll "skyrocket" here, says @larry_kudlow. pic.twitter.com/RCjpqdAlbc

"I don't think it's having an impact here," says @larry_kudlow on #coronavirus. Economic numbers "are holding up nicely."

Larry Kudlow, the director of the White House national economic council, is offering stock tips on Fox Business: "Stocks look pretty cheap to me."

3.56pm GMT

This tweet from Bloomberg's Michael McDonough shows how the US stock market turned south in recent days:

Markets & the Coronavirus pic.twitter.com/ZqQpfsJrKl

3.51pm GMT

Sky News's Ed Conway points out how historic this week's slump is:

The FTSE100 is down about 13% this week.
The only other week that compares in recent history was in early October 2008 when the FTSE fell 21% and the entire global financial system was on the brink of collapse.
That's how big these Coronavirus market moves are.

3.50pm GMT

The S&P 500, which give a broader picture of the US stock market, is having a torrid day - down another 3.5% right now.

That takes the index deeper into correction territory, inflicting further heavy losses on investors.

obligatory reminder: the stock market doesn't look pretty right now, but after this steep drop we're at levels from...... late summer 2019 pic.twitter.com/phOl06kUmc

3.38pm GMT

Nearly every stock on the Dow is down, many heavily so.

Major consumer-focused companies are among the top fallers, including Coca Cola (-5%), Procter & Gamble (-5%) and Johnson & Johnson (-4.8%).

3.24pm GMT

European stock markets are falling further, as traders watch the slump on Wall Street with alarm.

In London, the FTSE 100 index has plunged by another 4.3%, or 290 points. That takes it down to 6506 points -- almost 900 points down this week.

3.14pm GMT

OMG. The Dow has shed another 1,000 points in early trading!

This is the index's third quadruple-digit fall this week -- after its record fall (nearly 1,200 points) yesterday.

* DOW FALLS MORE THAN 1000 POINTS, S&P 500 SLIPS MORE THAN 100 POINTS

(via @reuters)

Dow drops another 1,000 points Friday. pic.twitter.com/76FMPpD2Te

It's shaping up to be another ugly day for stocks. US stocks are now down 15% from their highs.

Dow: -15.8%
S&P 500: -15.1%
Nasdaq: -15.6%

The big fears are a) #coronavirus will spread rapidly + b) usual Fed & gov tools to boost economy won't work wellhttps://t.co/VyV23Eg0dl

3.06pm GMT

This is now the seventh day of big losses on Wall Street, and the sell-off is accelerating.

Heavy selling has pushing the Dow below the 25,000-point mark for the first time since last June.

2.58pm GMT

Today's losses have pushed the Dow Jones industrial average to its lowest level since last June, as this chart shows:

2.35pm GMT

Newsflash: Stocks are falling sharply in New York, as the coronavirus market rout continues.

The Dow dropped by 761 points at the start of trading. That's a drop of 2.96%, to 25,005 points

Wall St rout continues w/ Dow down >2% after open. pic.twitter.com/nJappXz9fK

2.25pm GMT

Just in: UK travel retailer On The Beach has warned it won't achieve market expectations this financial year, due to the coronavirus.

It blames a "small but noticeable" drop in demand for summer holidays, saying:

The Group experienced a small but noticeable reduction in demand for Summer 2020 travel following the early reports of COVID-19 cases in early February. The reduction in demand has accelerated significantly following the increase in COVID-19 cases in Europe, particularly the spread of the virus to Tenerife.

Whilst this reduction in demand has led to a natural reduction in marketing spend, the Board does not now expect the Group to achieve payback in the current financial year on its previously outlined strategic marketing investment.

2.23pm GMT

With less than 10 minutes until Wall Street opens, the future market is predicting fresh heavy falls.

The Dow is currently priced to fall around 750 points, or another 3%.

Or if US indices fall much further! Dow Futures currently down 750 points ahead of the open in just over 10 minutes. https://t.co/UVRRd9tSvU

2.18pm GMT

We've also learned today that US personal incomes rose in January, but spending growth slowed.

Associated Press reports:

Americans pulled back on their spending in January, even as their incomes surged, a sign the economy was growing modestly before the threat of coronavirus arose.

The Commerce Department said Friday that consumer spending increased 0.2% last month, down from 0.4% in December and the smallest gain since October.

2.01pm GMT

Canada's economy barely grew in the last quarter of 2019, fresh data shows.

Canadian GDP increased by just 0.1% in October-December, which highlights that the world economy was already weak, before the coronavirus struck.

Canada's economy slid to a near halt in the fourth quarter https://t.co/2LmC4ZTaz3 pic.twitter.com/0BXKlkoSkJ

1.38pm GMT

There's no sign that this week's rout is over.

The world's stock markets are either trading sharply lower (Europe), closed deep in the red (Asia-Pacific), or waiting nervously to open (US)

The only lines that aren't red are the markets that aren't open yet. A breathtaking screen. pic.twitter.com/4vXKr6czyi

1.29pm GMT

Back in the City, the FTSE 100 is currently down 3% - or 204 points - at 6593 points.

That's up from this morning's lowest points, but still another very hefty loss.

Building on the strength of our performance into the end of 2019, we are looking forward to 2020 with some degree of conviction and confidence.

1.19pm GMT

US government bonds have hit fresh records today, as traders continue to sell shares and pile into less risky assets.

This has pushed the yield, or interest rate, on 10-year Treasury bills below 1.2% - a record low.

10-year Treasury yield hit 1.1535%

I know I wrote that "no record is safe" on Monday. But mannnnnnnhttps://t.co/EhYAPjM7IL pic.twitter.com/QB29bf57UB

1.06pm GMT

Roughly $5trn has been wiped off global stock markets this week, during the worst rout since the financial crisis.

That's based on the losses suffered by the MSCI All-Country World Index, which covers roughly 85% of global equities.

Coronavirus panic sent world share markets skidding again on Friday, compounding their worst crash since the 2008 global financial crisis and pushing the week's wipeout in value terms to $5 trillion.

"Investors are trying to price in the worst case scenario and the biggest risk is what happens now in the United States and other major countries outside of Asia," said SEI Investments Head of Asian Equities John Lau.

12.27pm GMT

Wall Street is expected to fall again when trading begins in two hours.

The Dow Jones industrial average is currently down 286 points in the futures market, or slightly over 1%.

S&P 500 Futures Coming Off Their Morning Lows: pic.twitter.com/r8nSHWg0wh

12.17pm GMT

Palexpo have now confirmed that the Motor Show has been cancelled altogether (not merely postponed, as first thought).

They are citing the legal principle of 'force majeure' -- unforeseeable circumstances that prevent someone from fulfilling a contract.

"We regret to announce the 2020 Geneva motor show will be cancelled. This is force majeure" pic.twitter.com/KoWVZSZREd

"The show cannot be postponed. It's not possible. It's too big. In September, October? It's not feasible" pic.twitter.com/E1IYREUwNY

On the subject of compensation. Director of GIMs, Olivier Rihs: "it's beyond our control, I don't think a claim against the motor show will have a chance of success. It's not a decision of the Geneva motor show. We have to follow the advice of the government."

12.06pm GMT

Workers at the Palexpo exhibition centre in Geneva had been working hard to get the motor show ready for next week's opening - but have now downed tools.

Here's the scene:

11.32am GMT

It's official: the Geneva Motor Show has been cancelled. More to follow....

(updated: we initially thought it was only postponed).

11.30am GMT

In other news, three former Barclays bankers accused of funnelling secret fees to Qatar in exchange for emergency funding at the height of the 2008 financial crisis have been found not guilty of fraud.

More here:

11.21am GMT

Reuters are reporting that the Geneva motor show will been cancelled, as we expected, following the ban on large gatherings in Switzerland.

Here's the story:

The organisers of the Geneva car show, Palexpo, have informed carmakers that the international auto show has been called off due to coronavirus concerns, three people familiar with the matter told Reuters.

A spokeswoman for Palexpo declined to comment.

11.00am GMT

VIX at its highest since 2011
Dow suffers biggest drop ever
S&P 500 sees fastest ever correction
FTSE 100 down 11% since last Friday
Oil down ~15% since last Friday to $50

These are pretty exceptional days in the markets.

10.47am GMT

After two and a half hours of trading, European stock markets are still deep in the red.

Fears of a global recession remain elevated. The main indices are all down over 3%, meaning we're still looking at the worst week since the financial crisis of 2008.

Equity markets have finally caught up with what the bond markets have been signalling which is the clear threat of global recession as the coronavirus spreads and results in further disruption of supply chains, reductions in demand out output.

Until there is a vaccine, the coronavirus will spread and market volatility we persist. US equities have made a 10% correction and it can easily end up being a 20%+ correction or "crash". The US 10 year Treasury yield has now fallen to a record low and further declines are likely.

"With the markets already down by 11% over a week, those who haven't already sold have obviously made losses and need to reconsider whether selling now is to risk missing out from a future recovery. A recovery will come but it may not necessarily be V shaped but more likely a U shape since the virus in the West is still spreading and we do not know the full economic fallout. However, the longer it takes to get over this crisis the more likely we are to see certain economies who are already weak, go into recession, I'm thinking Germany and Italy as most likely. Monetary and fiscal stimulus will help with financial and economic confidence but it may do little for people who are afraid to catch a virus and avoid going out and spending money.

"We take the view that from here, the best course of action may be for investors to sit tight and do nothing."

10.28am GMT

Germany's central bank governor has warned that Europe's largest economy could miss its growth forecasts due to the coronavirus.

Bundesbank President Jens Weidmann said this morning:

"All in all, economic growth this year could come in slightly lower than our experts estimated in December."

The abrupt end of complacency: Fear Index VDax jumps by >30% to highest level since Feb2018. pic.twitter.com/0WdiJkQI2l

Good morning from #Germany, where the #coronavirus also spreads. There are now 48 confirmed cases, but no fatalities yet. The Dax could fall below the 12,000 today. pic.twitter.com/G0kipocSRp

10.14am GMT

And here's my colleague Jasper Jolly's story:

To prevent the spread of coronavirus, the Swiss government has banned large events of over 1,000 people, with immediate effect, until at least 15 March. Next week's Geneva Motor Show, attended by around 660,000 visitors, will not be able to go aheadhttps://t.co/lF2y94Vd7q

BREAKING Chaos reigns as the #genevamotorshow is almost certainly cancelled. Swiss government confirms: 'Large-scale events involving more than 1000 people are to be banned. The ban comes into immediate effect and will apply at least until 15 March' https://t.co/tSVqAM5spV pic.twitter.com/TcBoq6jqYk

10.08am GMT

The official announcement from the Swiss Office of Public Health is online here (although their website is struggling right now).

It says:

In view of the current situation and the spread of the coronavirus, the Federal Council has categorised the situation in Switzerland as 'particular' in terms of the Epidemics Act. Large-scale events involving more than 1000 people are to be banned. The ban comes into immediate effect and will apply at least until 15 March 2020.

The Federal Council is responding to the latest developments in the coronavirus epidemic and has categorised the situation in Switzerland as 'particular' in terms of the Epidemics Act. This enables the Federal Council, in consultation with the cantons, to order measures that are normally the responsibility of the cantons.

9.51am GMT

The FTSE 100's latest tumble comes as UK officials announced they have now detected 19 cases of Covid-19, including the first cases in Wales.

Our main coronavirus liveblog has all the details:

9.46am GMT

Newflash: Switzerland has just banned large events expected to draw more than 1,000 people - a move that surely means the Geneva Motor Show will be cancelled.

The Swiss cabinet says:

"In view of the current situation and the spread of the coronavirus, the Federal Council has categorised the situation in Switzerland as 'special' in terms of the Epidemics Act

"Large-scale events involving more than 1,000 people are to be banned. The ban comes into immediate effect and will apply at least until 15 March."

Looks like the Geneva motor show is off: "Large-scale events involving more than 1,000 people are to be banned. The ban comes into immediate effect and will apply at least until 15 March" https://t.co/0gRutb8dS4 #gims2020

9.43am GMT

Oil prices are also sliding again, on fears of a global recession.

This has sent Brent crude below $50 per barrel for the first time in over a year.

Brent crude drops below $50/barrel for the first time since December 2018 as the oil market deals with the fallout of coronavirus outbreak.

9.33am GMT

Newsflash: UK stocks have now slumped to their lowest level in three and a half-years.

As the sell-off intensifies, the FTSE 100 is now down nearly 4.5% - or 300 points - at just 6495 points.

Stock markets are well on their way to their worst week since the global financial crisis and there's no easing up, with losses on course to accelerate across Europe.

"This has been one of the worst weeks on the markets in a very long time, leaving investors' portfolios battered and bruised.

"There is no sign of widespread bargain hunting by investors despite the cut-price shares on offer. That might not happen until there is a clearer picture of how far and wide coronavirus has spread and how different countries are trying to contain it."

9.12am GMT

9.05am GMT

Mark Carney, the outgoing Bank of England governor, has warned that the Covid-19 outbreak could hit Britain's economic growth.

In an interview with Sky News, Carney (who leaves the bank next month) said the UK is already feeling the impact - and it could get worse.

What we are picking up with some of our bigger companies and companies around the world is that supply chains... are getting a little tight. That's lower activity.

There's less tourism - as you can see on our streets here in the UK. That's lower activity as well.

Bank of England Governor on Coronavirus:
UK economy heading for growth downgrade
Supply chains tighter. Banks activating contingency plans. Tourism slump.
Bank monitoring financial system in case of crisis
More in our exclusive Carney interview: https://t.co/RyOj65X5C6

8.59am GMT

Virtually every company on the FTSE 100 is down this morning, with IAG now shedding almost 10%.

The tech sector (-4.4%), miners (-4.3%), utilities (-4.25%) and consumer firms (-4.2%) are leading the rout.

8.50am GMT

Bloomberg has calculated that six trillion dollars has been wiped off global markets since January 20th.

That was the moment when the first human-to-human transmission of coronavirus was confirmed by Chinese authorities.

8.38am GMT

Finland's national airline has added to the gloom, by warning that its profits will be hit hard by the coronavirus.

Finnair has also scrapped its capacity growth target for this year, and hopes to slash a50m off its costs -- which could include temporary layoffs.

"As the coronavirus situation has entered a new phase with outbreaks in several new countries, we will take appropriate measures to adapt our costs, operations and resources to better match our revenues."

8.13am GMT

Today's early morning slump means the FTSE 100 is down around 800 points this week, or roughly 11% -- its worst performance since October 2008.

There's still time for it to recover. But as things stand, the total losses this week are heading towards 200bn (it was 152bn last night).

8.08am GMT

Newsflash: Britain's stock market has plunged by another 3.3% at the start of trading, to a fresh 14-month low.

The FTSE 100 index has shed another 220 points, taking it down to 6582 points - its lowest level since December 27 2018.

8.00am GMT

British Airways' parent company, IAG, has warned that its earnings outlook is "adversely affected" by the coronavirus outbreak.

Capacity on Italian routes for March has been significantly reduced through a combination of cancellations and change of aircraft gauge and further capacity reductions will be activated over the coming days.

We also expect to make some capacity reductions across our wider shorthaul network. Shorthaul capacity is not being redeployed at this stage.

7.52am GMT

Budget airline easyJet has just announced that it is cutting some flights to Italy, due to the impact of the coronavirus.

Following the increased incidence of COVID-19 cases in Northern Italy, we have seen a significant softening of demand and load factors into and out of our Northern Italian bases. Further, we are also seeing some slower demand across our other European markets.

As a result we will be making decisions to cancel some flights, particularly those into and out of Italy, while continuing to monitor the situation and adapting our flying programme to support demand.

7.30am GMT

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

Global stock markets are in freefall again today as investors are gripped with anxiety that the coronavirus will trigger a global recession.

Goldman on European equities: "more downside to come"

It took the S&P 500 only six sessions to fall into correction territory, the fastest downfall in history, per Deutsche Bank.

The speed of the decline over the past week even beats the Black Monday plunge in October 1987, where the peak was in August 1987.https://t.co/qH8CFgMKvj pic.twitter.com/BzHZl7doEM

A worst case scenario of a global pandemic would undoubtedly have a significant economic impact and given the fragile nature of the global economy could tip the world into recession.

For now that remains a low probability outcome and our on the ground reports from an assortment of technology companies in China give us confidence that with the right measures in place the virus could potentially be contained.

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