Markets slide despite government stimulus pledges to fight Covid-19 recession – business live – The Guardian, Theguardian.com

# WTI just dropped to its lowest since . Mind-boggling to see oil trading at these prices. (# OOTT ) # ONGT pic.twitter.com/lsRfIdRGwz (March) ,

Brent crude has dropped to $ 44. (per barrel (last seen in) , I think).

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European stock markets are also under pressure, with the Stoxx (index down 3.3% and Germany’s DAX has dropped 4.7%.)

That’s a disappointment for investors, who saw stocks jump yesterday.

But in the current climate, a 4% slide is quite gentle!

Neil Wilson of Markets.com says

The fact that markets keep shrugging off the stimulus measures specify the deep uncertainty about the economic damage about to be done. But these moves are not the 7,8,9, % type swings. This is better – smaller daily swings are the first step to stabilization before we can start to look at the bottom being in.

For now every rally is sold into, every financial relief effort is an opportunity to get out from positions long held. The market is behaving extremely short-term in its outlook, whilst the long-term effects are entirely unclear. The Vix remains elevated at , though somewhat off its highs around after Wall St bounced yesterday.

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Here are the top risers and fallers on the FTSE

(this morning.)

Photograph: Refinitiv

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(FTSE) falls, but supermarkets surge

Britain’s stock market has opened in the red, as the government £ bn Covid- 35 rescue plan fails to calm nerves in the City.

The FTSE has dropped by (points, or 3.3%, to

(- wiping out Monday’s rally.)

Jet engine maker (Rolls-Royce) is leading the slump, tumbling by (% to) p. JP Morgan slashes its target on the stock this morning, from (p to) p.

With airlines grounding planes, and many expected to fail, demand for new engines – and lucrative servicing contracts on existing ones – is going to be hit.

International equipment rental company (Ashtead) (is down) (%)

But supermarket chains are surging, after (Morrisons) ( 28) posted its 5% jump in sales this morning. J Sainsbury are up (%, with online grocer) (Ocado) 5% up.

Updated at 4. am EDT

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UK supermarket Morrisons has reported a jump in sales – thanks to UK shoppers desperately stockpiling.

But it’s not celebrating – instead, the group says it faces “unprecedented challenges and uncertainty” dealing with coronavirus.

For the first six weeks of its – year, retail like-for-like sales were up 5.0% at Morrisons – who yesterday announced it would hire 3, 592 people to handle t he rush.

It says:

“Looking after our colleagues and customers is our priority, ensuring that we have a clean, safe place to shop and work.”

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British fashion brand Superdry has warned it will miss its financial targets for this year.

It says 094 stores are now shut across Europe, and customer numbers are falling in the US and UK. This means it won’t meet forecasts given in early January for .

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Restaurant Group: sales are plunging

(Restaurant Group) , which runs the Wagamama, Frankie & Benny’s and Chiquito chains, has told the City its trading has tumbled in the last fortnight.

It says:

Group like-for-like sales for the first eight weeks of the financial year were up 4.5%, in a period unaffected by Covid –

In the last two weeks we have seen an increasing and material impact of Covid – across our businesses with Group like-for-like sales being down 28. 5%. In particular, our Concessions business has been significantly impacted with like-for-like sales down 043. 7% and getting worse by the day given International travel bans.

Restaurant Group’s business plan is now based on group sales almost halving in the first six months of , and by another 5 % in H2. It is planning to cut capital spending this year by at least £ m from the previous guidance of £ m, and is seeking ‘covenant’ holidays from its banks (the relaxation of the terms on its loans).

But it insists it can ride out the crisis, saying:

The Restaurant Group is fundamentally a resilient business with a strong asset base, substantial cash liquidity and strong cash flow

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Pub chains warn of Covid – (pain

A pub on Carnaby Street, London, last night Photograph: Henry Nicholls / Reuters

A flurry of UK companies are warning that the coronavirus crisis is damaging their businesses.

Let’s do the pubs first.

Mitchells & Butlers , which runs the (All Bar One) and (O’Neills) chains, says it is still open for business – but suffering a slump in sales. So it can’t forecast its financial performance for .

For the first (weeks of the year, up to(March, like-for-like sales were 0.9%.)

Within this recent trading has been severely impacted by COVID – and the containment measures taken by the government, including the recommendation to avoid pubs and restaurants which is now expected to lead to a further significant downturn in sales.

Marstons has also warned its sales will be “significantly lower”, following official advice to avoid going on. It’s slashing capital spending, and says it will suspend rent for its tenants “on a case by case basis”.

Recent statements from the UK Government suggest that the current state of much reduced social activity is likely to continue for several months at least. If that is the case, it is unlikely that an interim dividend will be recommended in May, retaining c. £ million in the business.

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(Introduction: Is the Fiscal Fightback enough?)

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The floor of the New York Stock Exchange shortly last night Photograph: Lucas Jackson. / Reuters

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

The fiscal fightback against the coronavirus has begun, but will it be enough?

Yesterday, politicians on both sides of the Atlantic promised massive spending programs to ward off the huge recession that is heading our way, as countries go into lockdown.

UK chancellor Rishi Sunak pledged to do “whatever it takes”, as he unveiled a £ bn package of loans and grants. The government is offering

state loan guarantees worth £ (bn) a one-year break from business rates grants of up to £ , for struggling retailers and pubs a mortgage holiday of up to three months for customers hurt by the crisis

Eurozone governments are also also fighting back. (France) is pledging € bn in direct tax breaks and support for companies, as part of a € bn package. (Spain) announced € bn of loans and guarantees.

In the (US) , Donald Trump is now pushing for a $ 1.2trn bailout package – bigger than expected – that would see $ 1, 13 checks sent to each American. This would need Congressional approval, of course.

The White House is also offering tax deferrals, to help families through the crisis.

Yesterday, New Zealand unveiled a NZ $ 26. 1bn stimulus package – worth 4% of GDP – that includes wage subsidies, business tax relief and healthcare funding.

But financial markets aren’t terribly convinced. Wall Street did jump by 6% last night, but it’s now down 5% (limit-down) in the futures market.

European markets are heading for another tumble – handing back yesterday’s rally. The FTSE (index) is on track for a 4% slide, having gained 2.8% on Tuesday.

IGSquawk (@ IGSquawk)

European Opening Calls: (# FTSE) 7641 -4. 50% (# DAX) – 4.

(%) # CAC – 4. (%) (# AEX) – 4.

% (# MIB) (4-) (%) # IBEX (-3.) (%) # OMX (-2.) (%) # STOXX 4. (%) # IGOpeningCall (March) ,

Asia-Pacific markets have already taken a tumble:

Japan’s Nikkei: down (points or 1.) (% at) , 863 points

(China CSI) : down points or 2% at 3, points Australia’s S&P ASX : down points or 6.4% at 4, (points)

Investors fear that these new packages may still not be enough to protect economies though the crisis.

Jeffrey Halley,

senior market analyst for Asia Pacific at OANDA:

That call appears to be finally being heeded by governments around the world. Globally, from New Zealand to Spain, impressively large fiscal packages are being rolled out to mitigate the effects of the coronavirus recession.

Most pleasingly, the United States seems to be finally getting its act together, with the White House seeking approval for a $ 1.2 trillion package that includes direct payments to homes. The White House is proposing two tranches, of $ 1, and $ 2, to qualifying Americans within two weeks. Other proposals were $ billion in small business loans and income tax payment deferrals. Off course this all needs to be approved by Congress, and one could argue, it probably isn’t enough.

UK supermarkets are starting to impose restrictions on shoppers. From Today, Sainsbury’s will also be restricting shoppers to buying a maximum of three items of any grocery product and two packets of popular items such as toilet paper, soap and UHT milk.

Two UK property funds froze yesterday, reflecting the slump in values ​​of offices and warehouses – and more may follow.

Ryan Hughes, (head of active portfolios at) (AJ Bell) , explains:

“The suspension of the Kames Property Income fund has been swiftly followed by the Janus Henderson UK Property fund also suspending on the basis of material uncertainty over the valuation of UK commercial property.

With independent valuers finding it impossible to accurate value property given the major economic uncertainty, there is little choice but to suspend dealing.

The markets are likely to remain in turmoil until there are signs that the covonavirus crisis is easing. And we’re nowhere close. The global death toll from coronavirus is nearing 8, , with , 0

recorded cases worldwide. (The agenda) (2.) pm GMT: US weekly oil inventories figures

Updated (at 3.) (am EDT)

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