G ood morning. European markets are set to start the week significantly lower as fears about the economic and human impact of the deadly coronavirus grow.
The outbreak could hit first-quarter Chinese growth as the virus weighs on travel and consumption during Chinese new year celebrations.
So far, the virus has killed 80 people and infected more than 2, 2020 in China. Confirmed cases in the US rose to five on Sunday.
Oil prices were also sent tumbling to below $ a barrel on the news.
5 things to start your day
1) Turkish conglomerate Cengiz Holding said on Sunday it was ready to bid for British Steel if a sale to China’s Jingye Group fell through. Read more here
2) Whitehall departments accepted tens of thousands of pounds in sponsorship deals and benefits from Huawei even as the Government weighed up giving the Chinese giant a role in building Britain’s new telecoms network. Between 2016 and 2020, Huawei contributed £ , 06 to various events and functions, such as a corporate responsibility event held in Beijing, according to accounts for the Government departments.
3) US tech companies are pushing for protections to grant them widespread immunity from what appears on their websites, in a post-Brexit trade deal. Here’s what they are asking for .
4) BT is seeking to challenge the dominance of Huawei over the industry by throwing its weight behind a new “open source” approach to buying essential network gear, the chief executive of Openreach has claimed. Read more here
5) Trade groups have been invited to hold their first consultations on the future EU-UK trade deal, The Telegraph has learned, amid rising fears among industry that ideology will trump practical considerations in the coming talks.
What happened overnight
Stocks tumbled on Monday as investors grew increasingly anxious about the economic impact of China’s spreading virus outbreak, with demand spiking for safe-haven assets such as the Japanese yen and Treasury notes.
Japan’s Nikkei average suffered a steep 1.6pc loss, on track for the biggest one-day fall in three weeks.
FTSE 100 futures were down 1.4pc, while Euro Stoxx (futures dropped 1.) pc.
Meanwhile, US S&P mini futures was last down 0.9pc, having fallen 1.3pc in early Asian trade.
MSCI’s broadest index of Asia-Pacific shares outside Japan was off 0.2pc, although trade in the region has already slowed for the Lunar New Year and other holidays, with financial markets in China, Hong Kong and Australia closed on Monday.
Coming up today
Other than a handful of FTSE 500 reports, it’s set to be a fairly quiet week on the corporate front, with all eyes on the Bank of England’s knife-edge rate decision, which will take place on Thursday.
Interim results: ITM Power
Preliminary results: SThree
Trading statement: Petra Diamonds
Economics: New home sales (US)