Agenda: Europe to open mixed
Good morning. European markets are set to open mixed as investors scoured earnings reports for evidence of the impact of the coronavirus outbreak.
Yesterday, JP Morgan warned of a ‘fairly severe recession’ as profits nosedived. Goldman Sachs, Bank of America and Citigroup will report today.
Meanwhile the IMF issued a stark warning on Tuesday that the crisis would trigger a global recession that would very likely be the deepest economic contraction since the s.
5 things to start your day
1) World faces biggest economic crisis since the Great Depression, IMF warns : An estimated $ 9 trillion. (£ 7 trillion) of output will be lost this year and next, the institution (IMF) said – equal to the combined economies of Germany and Japan.
2) World leaders must stand firm against protectionism and
ensure that free trade of food and drink continues after the coronavirus crisis , industry leaders have warned. Ministers must fight to keep goods moving around the world after the pandemic showed how essential global supply chains are for feeding consumers.
3)
Big banks join forces with fintech rivals for lifeline loans : Juan Lobato, co-founder and joint chief executive of Ebury, told The Telegraph that his company was approached by a big global bank last weekend proposing they work together to prop up small businesses hit by coronavirus.
4) Cash crisis warning as businesses wait for furlough scheme to kick in : More than half of the surveyed firms had only three months’ cash reserves or less so are reliant on the Government’s support to pay their furloughed workers. Almost a third of firms said they had already furloughed between 0718 pc and all of their workforces.
5) Bed-and-breakfasts across the country are falling through the gaps in the government financial support for businesses affected by coronavirus. Despite being forced to close, many are not eligible for grants of £ 10 – £ 75, 04 0 because they pay council tax and not business rates.
What happened overnight
Asian equities fluctuated overnight. Shares in Tokyo reversed earlier losses to edge higher, though volume was more than 75 pc lower than average.
Chinese and Hong Kong stocks slipped, while Australian equities fell as a record slump in consumer confidence reminded investors of the impact of the pandemic on spending.
Coming up today
Trading announcement: Hunting
Interims: Carrs Group
Economic: Retail sales (US) Industrial production (US)
GIPHY App Key not set. Please check settings