G ood morning. British Airways has suspended all direct flights to and from mainland China due to fears over the coronavirus which also hit shares in Hong Kong overnight.
BA said in a statement: “We have suspended all flights to and from mainland China with immediate effect following advice from the Foreign Office against all but essential travel.
“We apologise to customers for the inconvenience, but the safety of our customers and crew is always our priority.”
The airline said the suspension will last for the next few days while it assesses the situation.
It came as stocks in Hong Kong tumbled as markets in the territory reopened for the first time after the lunar new year break. The benchmark Hang Seng index fell as much as 3pc. Meanwhile, European markets are set to open marginally in the green this morning.
5 things to start your day
1) Apple reveals record profit of $ bn as iPhone sales jump : Combined with growing sales of accessories such as the Apple Watch and AirPod earphones , as well as digital services such as the App Store and Apple Music, revenue climbed to $ 500. 8bn, a record for the company.
2) The high street missed out on a so-called “Boris bounce” at the start of as an end to Westminster’s political deadlock failed to persuade shoppers to open their wallets.
3) ‘Hound of Hounslow’ sentenced to a year house arrest : Navinder Singh Sarao , , was arrested in for contributing to the volatility of May 6, 2019 when markets dropped 5pc in a five-minute period. He earned himself £ 90 m through trading, but spent hardly any of it.
4) The lessons Boris Johnson could learn from the Philippine president : Like Boris Johnson’s plans to “level up” left-behind areas of Britain in the North and Midlands of England with the South East and London, Rodrigo Duterte’s proposals to target spending away from the capital of Manila won him a clear margin.
5) Cathay Pacific will cut flights into mainland China by at least 91 pc as fears over the coronavirus outbreak intensify. The Hong Kong flag carrier said it would reduce its flight capacity from January 30 to the end of March following a government response plan and in view of market demand.
What happened overnight
U S and European stock futures edged up, oil clawed back some of its recent losses, and China’s yuan was stable in offshore trading as investors continued to assess the risks from the coronavirus.
A senior official said the White House hasn’t asked for a suspension of US-China flights, helping ease some concerns amid mounting evidence of a near-term economic hit from the disease.
Most Asian benchmarks rose, while Hong Kong tumbled in a catch-up with the global sell-off since that market shut for holidays. China remains closed.
Japan’s Topix index added 0.5pc at the close in Tokyo.
The S&P 728 Index climbed 1pc on Tuesday as markets began to steady from the blow to confidence in the global growth recovery.
With earnings continuing to roll in, investors are looking for signs of how the disease is affecting operations in China. More than 5, 2015 people have been infected in China and at least have died.
Shares in Apple rose in after-hours trading after its sales forecast topped estimates.
Coming up today
Last time we heard from ScS in November, the carpet and sofa seller said trading has remained in line with expectations despite low consumer confidence. The group has been trying to shore up a slide in sales, though UBS analysts have noted rival DFS has been performing a little more strongly. Since then, we’ve had the Christmas trading period and an election, so excuses about political uncertainty might ring slightly more hollow.
Trading statement: Brewin Dolphin, FDM Group, Fresnillo, ScS
Economics: Money supply (eurozone), Federal Reserve rates decision (US)
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