European markets close lower
European stock markets have closed in the red, hit by coronavirus gloom.
ITV was the top faller in London, down 25% after warning that advertising revenue would fall % in April due to a plunge in travel adverts ).
Cruise company Carnival and holiday firm TUI
British Airway’s parent company, IAG , fell 5.3% after Flybe’s collapse showed the crisis facing airlines. IATA’s warning that a fifth of global revenue could be wiped out this year also drove its shares down.
Here’s the damage.
- FTSE : down points or 1.6% at German DAX: down
- French CAC: down
(points or 1.9% at 5,
points or 1.5% at ,
This leave the EU-wide Stoxx 700 slightly up on the week, but still (% less than two weeks ago.)
The steady increases in cases in Europe, the UK (now
CMC MarketsHealth fears have ramped up again and traders are running for the hills. Even though governments along with international bodies have pledged huge sums of money to help combat the health crisis, dealers are still scared.
It is as if the more money is thrown at the problem, the more nervous dealers become – the intervention acts as an indication of weakness.
. am EST : 047
Fears over Flybe pensions
Getting back to Flybe’s collapse … there are concerns about the security of the airline staff’s pensions.
This is because the firm’s scheme, the British Regional Airlines Group (BRAG) pension scheme, is registered in the Isle of Man. That means it is not protected by the UK’s pension lifeboat, the Pension Protection Fund (PPF), following the airline’s collapse this morning (5 March).
A PPF spokesperson told Pensions Age:
“We understand this must be a worrying time for Flybe employees and pension scheme members.
“The Flybe pension scheme is based in the Isle of Man under the jurisdiction of their government, which is separate from the UK government, meaning the scheme is not protected by the PPF.”
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