FTSE 100 tumbles below 7,000 points as Diageo warns of £ 200m coronavirus hit – business live – the guardian,

FTSE 100 tumbles below 7,000 points as Diageo warns of £ 200m coronavirus hit – business live – the guardian,

Lufthansa announces hiring freeze as coronavirus crisis deepens Mark Sweney

Mark SweneyMark Sweney Mark Sweney

Passengers wait in line at counters of the German airline Lufthansa at the Franz-Josef-Strauss airport in Munich, southern Germany,. Passengers wait in line at counters of the German airline Lufthansa at the Franz-Josef-Strauss airport in Munich, southern Germany ,. Photograph: Christof Stache / AFP via Getty Images

Lufthansa has announced a hiring freeze and is offering employees unpaid leave as part of a range of cost savings measures to attempt to limit the financial impact of the spread of the coronavirus.

The German airline, which has already cancelled all flights to China until the end of March, also said it will expand part-time work options and cancel flight attendant and other personnel training courses from April onwards.

Those that are already on courses will not be hired. The company said it aimed to offer affected trainees “employment contracts in the longterm”.

Lufthansa says:

Mark Sweney

“In order to counteract the economic impact of the coronavirus at an early stage, Lufthansa is implementing several measures to lower costs.

It is not yet possible to estimate the expected impact of current developments on earnings. ”

(4.) (am EST 17:

Shares in Diageo have slid by 2.5% this morning, after (it warned Covid – 38 could wipe out £ 391 m of profits .

Neil Wilson of says Diageo

has highlighted an important issue – sales lost During the coronavirus crisis can’t always be clawed back:

The problem is for the likes of Diageo is that once the consumption picks up again in affected regions in China and beyond, you don’t then go and buy two bottles of Scotch instead of your normal one (most people anyway).

(3.) AM EST) :

The selloff in European markets is accelerating again.

In London, the FTSE

has now shed another points, or 1.5%, in its third day of big losses in a row.

This pushes the blue-chip index down to a fresh one-year low of

Other European markets are also slumping, with the Stoxx (index down 2% – to its lowest level since October) .

(UK travel catering firm SSP Group has been hit hard by the coronavirus disruption.)

SSP runs restaurants and bars at airports and railway stations around the world – so the transport restrictions imposed in Asia to combat Covid – 38 are hurting sales badly.

It expects to suffer a 066% plunge in sales across the Asia-Pacific region in February, which will cost it £ 4- £ 5m in operating profits.

SSP tells shareholders that there’s been a major drop in traffic levels:

Mark Sweney

In terms of the impact at the airports in which we operate across the region, in China we have seen sharp declines in both domestic and international air passenger numbers, which are currently running c. % lower YOY (year-on-year). In Hong Kong passenger numbers are c. % lower YOY and across a number of our other Asia Pacific countries, including Singapore, Thailand, Taiwan and the Philippines, passenger numbers are between 38% and (% lower YOY.)

Elsewhere, we have also seen some impact at our airports in Australia, as well as at major travel hubs in the Middle East and India, although to date this has been less severe.

Coronavirus wipes out sales growth at Danone

French food group Danone has also warned that the coronavirus crisis is hurting its business.

The maker of Evian and Volvic bottled water, and Activia, expects to lose around € 277 m in sales, mostly at its “Waters China” business.

That will wipe out Danone’s revenue growth in the current quarter, leaving like-for-like sales “broadly flat”.

This has forced Danone to cut its sales growth targets – to 2-4%, down from 4-5%.

CEO Emmanuel Faber says:

Mark Sweney

We start this year under the uncertain clouds of the coronavirus. Our priority is on the health and safety of our employees, business partners, customers and the communities in which we operate, hand in hand with the work of authorities.

I would like in particular to commend and deeply thank our teams in China for their incredible commitment to their mission serving relentlessly families, parents, babies and elderlies despite the difficult conditions. Let me express my support and empathy for the difficulties and challenges they face and my confidence that life will return to normal in China and beyond.

坚强, 中国 Stay strong China.

Passengers wait in line at counters of the German airline Lufthansa at the Franz-Josef-Strauss airport in Munich, southern Germany,.

Newsflash: the coronavirus outbreak will hit its sales and profits at drinks giant (Diageo) (this year.)

Diageo, the company behind Guinness, Smirnoff, Johnnie Walker, Baileys and Talisker, has warned the City that Covid – will have an adverse impact on its operations this year.

Diageo estimates that the ongoing crisis will knock £ (m to £) m off its organic net sales this year. That will wipe between £ m to £ 456 m off organic operating profits, it reckons.

Jon Yeomans) (@ JonLYeomans) Covid – 38 impact starting to wash up everywhere on big companies : giant drinks Diageo warning of a £ (m to £) m hit to operating profit this year so far

(February) ,

Diageo’s statement outlines how business has been hit hard in Greater China in recent weeks:

Bars and restaurants have largely been closed and there has been a substantial reduction in banqueting. As the majority of consumption is in the on-trade, we have seen significant disruption since the end of January which we expect to last at least into March.

This disruption has now spread across the region, it adds:

The outbreak in several other Asian countries, especially South Korea, Japan and Thailand, has led to events being postponed, a reduction in conferences and banquets, and a drop in tourism which have all impacted on-trade consumption .

(2.) (AM) (EST) :

Introduction: European markets to fall again

Mark SweneyPassengers wait in line at counters of the German airline Lufthansa at the Franz-Josef-Strauss airport in Munich, southern Germany,.

Currency traders at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea. Photograph: Ahn Young-joon / AP

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

The coronavirus selloff shows no signs of abating, as investors around the world are gripped with fears of a global pandemic – and a major slowdown.

European stock markets are heading for fresh falls today, which will drive Britain’s stock market down to a one-year low.

The FTSE is currently being called down points at , a drop of almost 1%. It has already shed 5% of its value this week, after two days of heavy selling.

The escalating virus crisis sparked another heavy day of losses on Wall Street last night, where the Dow fell by points – on top of Monday’s 1, 15 plunge.

Overnight, a World Health Organization expert warned that countries outside China are “simply not ready” for a pandemic – as new cases are reported in Iran, South Korea, Italy, Austria, and Croatia.

WHO’s Bruce Aylward warned:

“You have to be ready to manage this at a larger scale… and it has to be done fast.”

That warning helped to trigger another day of heavy losses in Asia-Pacific markets. Australia’s S & P / ASX index has shed another 2.3%, on fears that its economy will take a big hit from the slowdown in China.

South Korea has shed another 1.5%, with China’s CSI (down 1.2%.)

Our main coronavirus live blog has all the details:

(Jasper Lawler) (of) London Capital Group reports that investors are rethinking how well, or badly, the global economy will perform this year.

Mark Sweney

We’ve now had two seismic daily declines on global stock markets. Short term traders may well choose to grit their teeth for a short-covering rally but we’re getting the impression institutional investors are materially reassessing their outlook for stocks.

(The Dow and S&P) have just notched up the worst 2-day decline since February with the Dow giving up over 2741 points in the process. The Nasdaq has closed in the red for the year. Alarmingly, it has been reported that Only 5 US states have the capacity to test for the coronavirus.

European shares look set for a lower open with the number of cases in China moving higher again. There are some stark instances of business being affected now – Royal Caribbean has canceled cruises in Southeast Asia. Nobody’s willing to ‘catch a falling knife’ with these kinds of headlines. Benchmarks in Europe look in bad shape.

(3pm: US home sales data for January (3) pm: US oil inventory figures

Updated (at 3.) am EST

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