Companies strive to keep working under Covid-19 restrictions - as it happened

Rolling coverage of the latest economic and financial news, as McDonalds prepares to reopen drive-through sites and Ryanair outlines plans to restart some flights

• McDonalds to test reduced drive-through service
• Construction sites busier, but are they safe enough?
• Ryanair hopes to start flying in July
• Markets in muddle' over Covid-19
• Coronavirus - latest updates
• See all our coronavirus coverage

4.56pm BST

And finally, Britain's blue-chip index couldn't quite hold onto the 6,000 point mark.

The FTSE 100 has closed 55 points higher, though, at 5994 -- a gain of nearly 1%.

It is hard to work out what is upsetting investors more - the cancellation of the fourth quarter dividend; a 23 million provision against next year's rental income; a drop in net tangible value per share that wipes out most of the increases seen in the previous five years or management's forecast that economic activity may not return to pre-COVID-19 levels until 2022.

Related: Ryanair passengers will have to ask to use toilet when flights resume

Related: UK furlough scheme extended until end of October

4.35pm BST

Heads-up. CNBC have updated their interview with Ben Broadbent, to explain the Bank of England deputy governor has said more monetary easing is possible.

We originally thought Broadbent had indicated negative interest rates were on the table (in earlier post) , but he seems to be talking about expanding QE (which two other MPC members voted for last week already).

3.36pm BST

Frontline workers, such as those in factories and building sites, are particularly vulnerable to coronavirus risks as the lockdown eases, as they're less able to voice safety concerns.

That's according to new research released by Nottingham Trent University today, which highlights the divide between office workers and those in frontline operational roles"

The pandemic has created a number of issues that employees in the past may not have felt comfortable taking to their employer about, such as their personal life, family, finance and health circumstances.

Workers are differentially impacted by shutdown, including their psychological and emotional wellbeing, and cannot just expect to go back to normal without being able to raise concerns about their workplace being Covid-secure.

It's not just technological issues creating barriers - it's also existing societal divides such as education, language and gender. For example, many people in operational workplaces don't have English as their first language, how do they receive key information and feed-back? New divides have also been created, which areas of the business are safe? How do people travel to and from work?

Frontline staff, for most organisations, are mostly likely to be some of the most challenging roles to continue socially distant ways of working and simultaneously are also the ones that are also most likely to not feel about to speak out."

3.20pm BST

US president Donald Trump has tweeted that America's central bank should consider introducing negative interest rates.

As long as other countries are receiving the benefits of Negative Rates, the USA should also accept the GIFT". Big numbers!

Rate options, which gauge monetary policy expectations, on Monday implied a 23% probability that the key federal funds rate will go below zero by the end of December.

2.42pm BST

The US stock market has opened higher, despite Covid-19 anxiety.

The Dow Jones industrial average has gained 135 points, or 0.5%, to 24,357.

The US may be facing its own Boris Johnson" moment with reports of the coronavirus jumping the White House perimeter and infecting staff around both the president and vice president. This will only add to the uncertainty around how quickly the Federal government will chart a path to relaxing measures, even as states and cities offer their own very different approaches.

Perhaps the most striking trend underway last week has been the recovery of small cap stocks, which have lagged. While it's easy to dismiss as excessive liquidity desperate for a home, it may be investors simply expecting the third quarter to be better than the second quarter and next year looking better than this year. Of course, it also requires some careful differentiation among businesses that will make it and those that won't.

2.22pm BST

Fast food chain McDonalds has announced that it hopes to reopen all its drive-through restaurants in the UK and Ireland by early June.

McDonalds says it will test a reduced menu offering at 30 drive-through sites next week. These pilot sites will be open from 11am to 10pm, with fewer workers on site (to address physical distancing rules).

Tomorrow we will offer delivery via Uber Eats from 15 restaurants in the South East of England, next week we will start to reopen our Drive Thrus as we get ready to reopen restaurants across the UK and Ireland. pic.twitter.com/us3wM2fJYc

The next stage of the McDonald's reopening strategy has been announced: 30 more restaurants to relaunch on May 20, opening via Drive-Thru lanes, with a 25 spending cap per car. All Drive-Thrus back "by early June".

2.16pm BST

Incidentally, some experts are questioning whether US inflation actually fell sharply last month, as today's data show.

The problem is that the items which became cheaper - ie gasoline - weren't in demand last month, while the things people were actually keen to buy, like food, became pricier.

#Inflation weakened in April thanks to a big drop in gas prices, but considering how few people were driving, most couldn't take advantage. Food prices however surged higher, eggs +16% beef +4.8% chicken +5.8% and people were buying a LOT

CPI is supposed to reflect the 'average' consumption basket. It's just wrong that inflation went down when the stuff we didn't use dropped in price.
CPI merely provides the appearance of consistency and is an interesting point to watch, but "consumer price inflation" it is not. https://t.co/yIocbxKGr3

1.55pm BST

Back in the City, the FTSE 100 has pushed over the 6,000 point mark for the second time since the Covid-19 crisis began.

The blue-chip index has gained 66 points, or 1.1%, to 6006 points. That's its highest day in seven sessions.

Banks and miners acted as the main drag on the FTSE 100 index whereas the main gains were found among telecoms, utilities and pharmaceutical stocks. Vodafone led the list of risers with investors relieved it is still paying dividends.

1.40pm BST

Just in: Inflation across America has fallen sharply under the Covid-19 lockdown.

US consumer prices dropped by 0.8% in April, compared to the previous month.

US inflation slumped to a five-year low of 0.3% in April, but it was the fall in core inflation to just 1.4% that was the real surprise - 0.3%-points lower than the consensus forecast pic.twitter.com/o986Mp0UHV

Core CPI fell -0.448%, meaning that it was very close to -0.5% m/m. The y/y fell to 1.44%. The chart looks like a lot of the other charts we're seeing these days. But of course devil will be in the details. pic.twitter.com/VmWCLxKxOl

1.21pm BST

Back in the travel sector, embattled Brussels Airlines is cutting 1,000 staff - a quarter of its total workforce.

Brussels, which is owned by Germany's Lufthansa, is also putting 10 aircraft out of service as it reduces its number of destinations by 22.

The extremely negative impact of the coronavirus crisis on the company's finances and the persistently low demand for air travel are forcing Brussels Airlines to take substantial and necessary measures.

The total size of the company, and consequently its workforce, will decrease by 25%."

Corona has hit us hard and fast...

The year 2020 will be a disaster."

1.13pm BST

Related: UK furlough scheme extended until end of October

12.53pm BST

Rishi Sunak also rejected the idea that UK workers might be addicted' to the newly-extended furlough scheme - pointing out that no-one chose the current situation.

The chancellor says the scheme will keep paying 80% of wages (up to 2,500 per month) - there had been rumours it might be cut to 60% or lower.

Employers currently using the scheme will be able to bring furloughed employees back part-time.

And we will ask employers to start sharing with the government the cost of paying people's salaries.

The Chancellor @RishiSunak has announced the furlough scheme will be extended by four months until the end of October

From August employers will be able to bring furloughed employees back part time

The scheme will continue to cover up to 80% of salaries

Speculation had been percentage could have been cut to 60%.

Rejected by the Govt. Sunak says he doesn't agree with claims from some quarters that workers had become "addicted" to furlough. Says nobody chose to be furloughed.

Rishi Sunak announced the Jobs Retention cheme (furlough scheme) will be extended until the end of October.
- No changes until after July
- Aug-Oct more flexible with employers able to furlough staff part time

From August, employers can bring furloughed employees back part-time.

Workers on furlough scheme will continue to receive 80% of salary after Aug, split between businesses and government

Rishi Sunak says furlough scheme has been used by 7.5 million people and almost one million businesses. Scheme will be extended until the end of October. From August will have flexibility to allow people to come back part-time but employers will be expected to share in cost.

Chancellor is continuing to extend JRS to all sectors of the economy. Too complicated to target those worst affected? Scheme will tweaked to allow staff to return to work part-time with pay topped up by state. Note: chancellor is NOT saying how much he expects companies to pay...

12.41pm BST

Just in: Chancellor Rishi Sunak has announced that the government is extending its Jobs Retention scheme for another four months.

This means UK firms will be able to furlough workers until the end of October, rather than making them unemployed.

Related: UK coronavirus live: Sunak extends furlough job retention scheme until end of October

11.58am BST

Sales of used cars slumped 30.7% across the UK in March as showrooms closed due the Covid-19 lockdown, wiping out solid growth in January and February, according to the main industry group.

The Society of Motor Manufacturers and Traders (SMMT) said sales declined 8.3% in the first three months of the year, with 1.8m used cars sold. Sales of petrol cars fell by 9.3% while diesel sales were down 7.8%, and the average price slipped 0.2% to 13,601.

This subdued activity is likely to continue into the second quarter. While it is tricky to predict future demand, the impact of social distancing requirements on public transport means that, for many people, the car will play an even more important role in helping them travel safely to work.

Reopening new and used car outlets will support this, enabling more of the latest, cleanest vehicles to filter through to second owners and help support the UK's green growth agenda."

Related: UK car sales plunge to lowest since 1946 amid coronavirus lockdown

11.42am BST

Sales at DIY firm Kingfisher were hit hard by the lockdown, but it now sees signs of improvement.

Kingfisher, which owns B&Q and Screwfix, has reported that sales tumbled by 24% in the February-April quarter.

Having initially closed our stores in France and the UK, we have rapidly adapted how we operate to meet the essential needs of our customers safely during lockdown.

We started by transforming our operations to meet a material increase in online transactions through our click & collect and home delivery services.

The fourth week of April reflected a significant improvement in the UK at both B&Q and Screwfix, largely due to increasing demand via contactless click & collect, and the reopening of some B&Q stores towards the end of the week.

Kingfisher provides Q1 2020/2021 trading update and overview of COVID-19 impact. Kingfisher Q1 20/21 sales 2.2 billion, down 24.0% in constant currency; LFL down 24.8%.
- 400% increase in e-commerce sales.
- B&Q LFL -21.8%
- Screwfix LFL -4.7%. https://t.co/pGXdj8tCRT pic.twitter.com/7EfLoPkHjS

11.03am BST

Travel firms are among the fallers in the City today, despite Ryanair's optimism that it can resume flights in July.

Cruise operator Carnival and British Airways owner IAG are both down around 2%, as City traders try to judge when people will be booking holidays again.

Looks like it will be sun loungers in the garden this year.

Phillip Schofield: "Is summer cancelled?"

Matt Hancock: "I think that's likely to be the case...it's a reality of life [right now]... it's unlikely big lavish international holidays will be possible."

10.43am BST

Could the Bank of England be forced to cut UK interest rates below zero, to help the economy handle the Covid-19 slump?

In the past, the BoE has played this idea down -- but the prospect of the deepest recession in centuries means everything may be on the table.

The committee are certainly prepared to do what is necessary to meet our remit with risks still to the downside.

Yes, it is quite possible that more monetary easing will be needed at the time.

We maybe heading towards toward negative interest rates, according to Deputy Governor for Monetary Policy Ben Broadbent.

The committee are certainly prepared to do what is necessary to meet our remit with risks still to the downside,"https://t.co/nys9UdC1ST

We keep under review all our potential policy tools and this is a question that's been thought about on and off since the financial crisis and it's a balanced judgment," Broadbent told CNBC television.

While cutting rates further could stimulate demand, they could but also have side effects for banks whose lending is vital for the economy, he said.

10.19am BST

The chief executive of Vodafone has ruled out making a rival offer to challenge the 31bn mega-merger of Virgin Media and O2 in the UK, citing issues including the rising threat of Netflix in the TV space.

I feel that the appropriate strategy is our organic strategy to drive value for all stakeholders."

We have a progressive dividend policy and when you look at our free cash flow generation this year.... We have good headroom."

10.08am BST

My colleague Richard Partington has outlined the government's new guidance to UK companies, here.

Office workers should consider holding meetings outside, shop changing rooms should be cleaned after every user and takeaway customers should wait in their cars, under sweeping new back-to-work guidelines issued by the government on Monday.

Companies across Britain will have to consult with their staff and union officials about how they will keep employees safe as they return to work amid the gradual lifting of lockdown measures.

The @instituteforgov * has distilled 48 pages into one graphic for you... pic.twitter.com/YthYoPCz9b

9.49am BST

Ben Hancock, MD of Oscar Acoustics - an acoustics insulation firm -- reports that the construction industry is busier this week.

With regards to the PM's speech, I do have real concerns over our safe operating procedures' being affected by those who have not been properly briefed on them.

It took us the three weeks following the last big Boris speech to formulate and action the changes. If people return this morning having not consulted site management and are not aware of the new rules and systems, there are going to be issues.

9.40am BST

The 6% jump in Vodafone's shares this morning following its results has helped to lift the FTSE 100 by 25 points, or 0.4%.

France and Germany are becalmed, though, as traders worry about a second wave of Covid-19 infections scuppering plans to reopen economies.

Stock markets are in a bit of a muddle right now. On the one hand there are signs of economies emerging from stasis. New York governor Cuomo says three regions of the state will reopen this weekend. Britain has moved from stay home' to stay alert', Europe is reopening: there is light at the end of the tunnel, and markets are always first to move. Massive stimulus from central banks and governments helps, too.

But on the other hand, stimulus government stimulus can't go on forever. Businesses will need to get back to a new normal of reduced earnings in the main. House Democrats are said to be plotting a 4^th massive stimulus bill this week, but it's not clear whether this will pass. Signs of second-wave outbreaks across South Korea, China and even Germany stoke fears among investors that economies will, if not shut down again at scale, look very different to before as countries take sustainable steps to reopen.

9.10am BST

Supermarket group Morrisons has updated the City on its measures to keep running through the lockdown.

Morrisons posted a 5.7% rise in group like-for-like sales for the last quarter - with stockpiling more than making up for a weak Easter.

At this stage, our best estimate is that the 2020/21 costs relating directly to COVID-19 are likely to be broadly offset by the in-year business rates cost saving, but the actual net effect is highly dependent on the length of the crisis and how customers respond as lockdown eases

9.00am BST

Shares in property company Land Securities have slumped by 10% this morning, after the coronavirus crisis hit its operations.

The majority of the valuation deficit is attributable to our Retail segment, which suffered a 20.5% decline over the 12 months as a result of the challenging environment and ongoing structural changes, exacerbated at the year end by the early effects of Covid-19.

8.51am BST

Telecoms giant Vodafone has cautioned shareholders that it isn't immune from the coronavirus -- despite maintaining its dividend today.

Although demand for data services has risen in the lockdown, roaming fees have been predictably reduced.

The economic impact of the COVID-19 pandemic in our markets, whilst uncertain, is likely to be significant. Whilst our business model is more resilient than many others, we are not immune to the challenges.

We are experiencing a direct impact on our roaming revenues from lower international travel and we also expect economic pressures to impact our customer revenues over time.

8.35am BST

High street suit maker Moss Bros is also outlining plans to resume operations, following the UK government's moves to ease the lockdown.

The Board also notes the Government's recent update regarding the potential phased reopening of shops from 1 June and is developing plans to reopen its stores in an orderly manner in light of this.

8.30am BST

Ryanair's CEO Eddie Wilson says its time to get Europe flying again", as he outlines plans to resume flights from 1st July:

Now that Europe's States are allowing some gradual return to normal life, we expect this will evolve over the coming weeks and months.

With more than 6 weeks to go to 1^st July, Ryanair believes this is the most practical date to resume normal flight schedules, so that we can allow friends and families to reunite, commuters to go back to work, and allow those tourism based economies such as Spain, Portugal, Italy, Greece, France and others, to recover what is left of this year's tourism season.

Ryanair boss Michael O'Leary says @BBCBreakfast:

He'll fly planes whether or not the UK government lifts the new quarantine restrictions - because, he says, "most people will ignore" the isolation required after landing (back) in the UK

*NB - Arrivals from Ireland/France exempt

8.27am BST

Budget airline Ryanair has announced plans to restart two-fifths of its flights from the start of July -- with restrictions to address Covid-19 fears.
Ryanair aims to operate nearly 1,000 flights from 1 July -- subject to Government restrictions on intra-EU flights being lifted, and effective public health measures being put in place at airports."

It plans to restore 90% of its pre-Covid-19 route network by operating some flights to most of its 80 bases in Europe.

Ryanair has announced that it plans to restore 40% of its flight schedule from July Passengers will have to wear face masks and pass temperature checks before flying. @BBCgmu @BBCNewsNI

On board its aircraft, Ryanair cabin crew will wear face masks/coverings and a limited inflight service will be offered of pre-packaged snacks and drinks, but no cash sales. All onboard transactions will be cashless.

Queuing for toilets will also be prohibited on board although toilet access will be made available to individual passengers upon request. Ryanair encourages passengers to regularly hand wash and use hand sanitizers in airport terminals."

Related: Ryanair passengers will have to ask to use toilet when flights resume

7.26am BST

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

Optimism over plans for reopening in many countries after shutdowns aimed at battling the pandemic has taken some hits from reports of new waves of infections in states and countries that are further ahead in lifting lockdown measures.

Investors pointed to small but disconcerting increases of infections in South Korea, China and elsewhere.

Global mkts turn to Risk-Off mode as anxiety grows over 2nd coronavirus wave after Chinese city where pandemic originated reported 1st new cases since lockdown was lifted. Asia stocks & US Futures lower. Bonds unch after y'day's sell-off w/US 10y at 0.7%. Gold 1700, Bitcoin $8.7k pic.twitter.com/zK9qnvjZaI

The Hang Seng led losses in Asia as a renewed coronavirus panic would mean a longer period of grounded planes and less retail activity in the city, as the housing bubble starts to burst.

Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule:
FTSE 100: -0.20%
France 40: -0.39%
Germany 30: -0.52%
US 500: -0.62%
Wall Street: -0.67%
View the performance of all markets via https://t.co/2NUaqnUPED pic.twitter.com/pOybnYwnxh