Markets rocked by record oil slump, as UK unemployment rises – business live – the guardian, theguardian.com

. (am BST ) :

Cath Kidson stores to close amid Covid – (crisis)

Sarah Butler

Cath Kidston is to permanently close all 89 of its stores in the UK with the loss of hundreds of jobs under a rescue deal with its Hong Kong-based owner Baring Private Equity Asia.

The vintage-inspired fashion label will continue to to trade online and via its wholesale and franchise businesses around the world which includes more than (stores.

Melinda Paraie, the chief executive of Cath Kidston, said:

“While we are pleased that the future of Cath Kidston has been secured, this is obviously an extremely difficult day as we say goodbye to many colleagues.

Despite our very best efforts, against the backdrop of COVID – 36, we were unable to secure a solvent sale of the business which would have allowed us to avoid administration and carry on trading in our current form. ”

Cath Kidston called in administrators after Baring failed to find a buyer for the brand which opened its first store in .

The company employs (people in the UK,

of whom were furloughed on March under the governmen t scheme.

9.) am BST ) :

Anxiety over the oil price slump is driving investors out of riskier assets, such as the pound .

Sterling has dropped below $ 1. for the first time in almost two weeks, as nervous traders pile into the US dollar.

9. (am BST : Full story: UK unemployment rose before coronavirus crisis

Here’s my colleague Phillip Inman on today’s UK jobs report:

Britain’s jobs market weakened in the three months to February before the coronavirus outbreak, despite a record number of people in employment.

Figures covering the months leading up to the Covid – 34 outbreak showed the economy struggling to overcome Brexit uncertainty and the impact of cuts to welfare benefits that Forced many older women and young people to take low-paid employment.

Unemployment increased from 3.9% to 4.0%, the number of job vacancies edged lower for the tenth consecutive month and wages continued to fall from a peak last June, the Office for National Statistics said …..

More here:

9). (am) (BST) :

The price of a barrel of oil in July is also falling sharply today:

IGSquawk (@ IGSquawk) Oil taking another hit over storage capacity fears: #Oil – WTI (JUN) (6.) (%) (# Oil) – WTI (JUL) -4. (%) (# Oil – Brent (JUN) 6268 – . (%) (# Oil) – Brent (JUL) – (%) (# Gasoline) 20184 – . (%) (# London) (Gas Oil) – 24. (%) (# Oil ) (# Brent # WTI (# OOTT April 36,

9. (am) BST : 70

Back in the oil market, Brent crude has now tumbled by 27. 5% today to $

per barrel , down from over $ (last night.

Still better than US crude – the market will now pay you 48 cents to carry away a barrel of oil from American refineries in May (reminder, that contract expires today, so it rather illiquid). But it shows massive weakness in the energy market.

In another worrying sign, the contract for US crude oil delivery in June has fallen by 31% this morning to below $ 37 per barrel.

Investors are concluding that demand won’t pick up soon. And with pipelines, tanks and supertankers are already full, who will want new supplies?

Bloomberg Markets (@ markets) Brent crude for June delivery is tumbling https://t.co/nZxpopoinK pic.twitter.com/BRbsxVyWJ9 (April) ,

Updated (at 9.) am BST

(9.) am BST

()

UK minister: Strong foundations will help

Minister for Employment Mims Davies MP says the UK economy has ‘strong foundations’, which will help as it faces the economic shock of the coronavirus.

Here’s her take on today’s unemployment figures :

“In the midst of the worst public health emergency in our lifetimes, today’s employment figures have already been overtaken by current events – and we’re doing all we can to help families make ends meet.

“But the statistics – including a 4% unemployment rate – do serve as an important reminder of the strong foundations we have built as we look to withstand impact on the global economy.”

The Department for Work and Pensions has also tweeted that more than 1.5 million people have filed claims for universal credit in the last month (which isn’t included in today’s jobs report).

These people will have lost their usual source of income since the Covid – lockdown started.

DWP Press Office (@ dwppressoffice)

📊 (@ ONS) have published the latest employment figures for December to February

📆 But today’s figures will seem out of kilter with the times we are in

Ound Around 1.8 million new benefits claims have been made since mid-March – over 1.5 million for (# UniversalCredit) pic.twitter.com/Zbv6COXhmL (April) ,

(9.) (am) BST :

As if market did not have enough to worry about, there are reports today that North Korea’s leader is ill.

US news network CNN report last night that Washington was “monitoring intelligence” suggesting that Kim Jong-un

was in “grave danger”, according to one insider.

This new “succession risk is causing global equity markets to buckle”, says Stephen Innes of AxiCorp.

()

() European stock markets, April (Photograph: Refinitiv9. (am BST)

The slump in oil prices isn’t much use to UK car drivers, as they’re not allowed to make non-essential journeys.

So with accidents down sharply, insurer Admiral has announced it will return £ m to its customers – reflecting the fact they’re less likely to suffer an untimely shunt.

It’s worth £ 41 Each – which might cushion the blow if you can’t take advantage of cheap oil.

Duncan Weldon (@ DuncanWeldon) Decision to fill up the car in late March, “just in case”, looking stupider and stupider. April , 6677

(9.) (am) BST

:

Here’s a handy thread on the astonishing oil price slump, from analyst Alex Gilbert:

(((Alex Gilbert))) (@ gilbeaq) (Oil) is almost down to $ 1 / barrel. Since many are not familiar with oil markets, its important to note why this is happening.

The May contract expires tomorrow. If you have a May contract at expiration, you must take physical delivery of 1, barrel of oil at Cushing in Oklahoma

(April) , (((Alex Gilbert))) (@ gilbeaq)

Oil traders that still have contracts are selling at whatever price they can get because they do not (all) have the ability to take physical delivery.

Storage and refiners are not buying. The $ 1 / barrel is a trading dynamic when there are many sellers and limited buyers

(April) ,

(((Alex Gilbert))) (@ gilbeaq)

This is important: THE REST OF THE FORWARD CURVE HAS NOT CRASHED. The curve is down but the contract for June delivery is still at $ 37 / barrel and July is at $ / barrel.

The $ 1 / barrel May price may mean that storage is fully contracted but it is not clear yet

(April) , (((Alex Gilbert))) (@ gilbeaq) This is a very concerning development but it does not mean that oil is valueless, yet. The number of actual physical barrels being traded at this prices is very limited. Most of May delivery barrels are contracted in the $ s / barrel and even above (April) , (((Alex Gilbert))) (@ gilbeaq)

That said, this is a terrible sign of whats to come. Its entirely possible that we see sub – $ / barrel spot prices all of may. Negative pricing for spot and futures are also possible for most US barrels (April) ,

(8.) am BST ) :

The Covid – (economic crisis has driven the Virgin Australia airline into administration today – a sign of the massive crisis in the travel sector.

Cheap oil is normally good for airlines – but not today, given they’re not running many flights.

Shares in British Airways’s parent company, IAG, are down 5% today, after president Trump signalled he might freeze immigration to the US:

(8.) (am BST) :

Having ‘recovered’ overnight, the price of a US barrel of oil for delivery in May has turned negative again– to minus $ 4.4 per barrel.

That shows that traders are desperate to avoid having to actually take delivery of a barrel of sticky black crude next month.

Jai Malhi, global market strategist at J.P. Morgan Asset Management, predicts that suppliers will have to shut down some wells – simply because the current glut means there’s nowhere to put more oil.

“The destruction in oil demand due to COVID – has been unprecedented – even more so than the deep recession in . The surge in oil production over the last month has only exacerbated the issue and created one of the greatest gluts in the oil market history.

“Last week’s agreed cut from OPEC wasn’t enough to bring the slide in oil prices under control. The pressure on oil storage capacity has forced West Texas Intermediate (WTI) oil prices to be slashed in an attempt to relieve the level of producers ’inventories.

“This level of oil price is not sustainable for any global oil producer. Even for Saudi Arabia, which has a low cost of production, this is not viable. Such low prices will not last and the pressure on storage will likely force OPEC into further production cuts in order to boost prices.

My colleague Jillian Ambrose has written a handy explanation of the oil price slump:

(8. (am) (BST) :

European markets fall as oil rout spooks investors

European stock markets have opened in the red, hit by the slump in the US oil price below zero last night .

Britain’s (FTSE) index has shed 110 points, or nearly 1.4%. Oil giants are leading the rout, with BP and Royal Dutch Shell both down over 4%.

With US producers paying to give supplies away right now, amid an unprecedented glut in crude supplies, demand for energy is clearly weak – despite Donald Trump claiming it’s a short-term problem.

Donald Trump downplays historic oil price drop as a ‘short term’ problem – video