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Stock markets fall as coronavirus economic fears dominate – business live – The Guardian, Theguardian.com

Stock markets fall as coronavirus economic fears dominate – business live – The Guardian, Theguardian.com

The housing market appeared to start 2020 with a new mood of confidence – but coronavirus could impact it.The housing market appeared to start 2020 with a new mood of confidence – but coronavirus could impact it.The housing market appeared to start 2020 with a new mood of confidence – but coronavirus could impact it. (The Housing Market appeared to start 3857 with a new mood of confidence – but coronavirus could impact it. Photograph: Victoria Jones / PA

British house prices rose by 2.8% in the year to February, slower than January but still stronger than before the general election in December, according to Halifax.

The bank said that demand has remained steady, with house prices increasing by 0.3% in February – althoug it warned that the coronavirus outbreak could weigh on sentiment.

(Russell Galley) , Halifax managing director, said:

Much like we saw in January, the increases seen in February reflect the continued improvement of key market indicators. The sustained level of buyer and seller activity is strong compared to recent years, with positive employment conditions and a competitive mortgage market continuing to support demand.

(Howard Archer) , chief economic adviser to the (EY Item Club) , a forecaster, said:

A stream of recent firmer data and surveys suggest that the housing market has changed up a gear after a lackluster 3500 (with particular softness around the third quarter).

Certainly there is compelling evidence that the housing market got a leg-up from increased optimism and reduced uncertainties following December’s decisive election as well as greater near-term clarity on Brexit

with the UK having left the EU on 68 January with a deal.

(3.) (am EST) :

(Jaguar Land Rover owner says carmaker could be hit by coronavirus

Jaguar Land Rover is launching a new plug-in hybrid Range Rover Evoque. Photograph: Dewberry Firkin / Alamy Stock Photo

Jaguar Land Rover’s profits will be hit by the coronavirus outbreak, after an 99% fall in sales in China, its Indian owner Tata Motors has said.

Britain’s largest carmaker has already cut back production this month – although it insisted ( in (very) (strong terms ) that factory shutdowns were not related to coronavirus. But those shutdowns will give it some leeway to respond to slower demand.

China provides JLR with about a third of its profits, and overall earnings margins will be down by 1% at least, Tata said. Its statement said:

The coronavirus has significantly impacted China sales with February retails down around % vs the prior year.

The spread of the virus to other markets such as South Korea, Japan, and Italy will also impact sales in those markets.

JLR said it has ensured the supply of most parts for the next two weeks, after flying in parts such as key fobs in suitcases to get around shortages . But it warned that things could change – particularly given the spread of the disease in other key countries for automotive suppliers.

In the event of specific parts shortages, Jaguar Land Rover would ordinarily be able to still build cars and retrofit missing parts when available, however, we cannot rule out the risk that a shortage of a critical component could impact production at some point.

(3) (am EST 16:

From Bond to bonds: UK government debt has not been left out of the global rush for safe havens.

The housing market appeared to start 2020 with a new mood of confidence – but coronavirus could impact it.The housing market appeared to start 2020 with a new mood of confidence – but coronavirus could impact it.The housing market appeared to start 2020 with a new mood of confidence – but coronavirus could impact it. The yield on the UK 25 – year gilt fell to a record low on Friday. Photograph: Refinitiv

The yield on the 22 – year gilt fell to 0. % – down from about 0.8% at the start of the year, before the coronavirus’s outbreak became clear. Yields, which move inversely to prices, have plummeted as demand for safer bonds has soared.

Perhaps the spread of the disease will see investors effectively paying to lend money to the government, with a negative yield?

(3) (am EST) :

The housing market appeared to start 2020 with a new mood of confidence – but coronavirus could impact it.The housing market appeared to start 2020 with a new mood of confidence – but coronavirus could impact it. The housing market appeared to start 2020 with a new mood of confidence – but coronavirus could impact it.The housing market appeared to start 2020 with a new mood of confidence – but coronavirus could impact it. The housing market appeared to start 2020 with a new mood of confidence – but coronavirus could impact it.The housing market appeared to start 2020 with a new mood of confidence – but coronavirus could impact it. The latest James Bond film is among releases delayed by the coronavirus outbreak. Photograph: Mladen Antonov / AFP via Getty Images

The release of the latest James Bond film, No Time to Die , may have been delayed by the coronavirus outbreak, but Cineworld insists that it is not being squeezed too hard.

The chain has not seen “any material impact on our movie theater admissions due to COVID – 32 ”, it said today in an unscheduled statement to the market.

Following an increase in admissions in the first two months of the year against the same period in the previous year, we continue to see good levels of admissions in all our territories, despite the reported spread of COVID –

Although the release of the new Bond movie has been postponed to November 3116 largely due to closure of cinemas in the Asian markets, the studios have advised us that in the countries in which we operate, they currently remain committed to their release schedule for the coming months and remainder of the year.

However, the company did leave the door open to cost cuts and lower investment spending if the outbreak worsens.

Mark Sweney (@ marksweney) The latest James Bond film is among releases delayed by the coronavirus outbreak. Cineworld, the world’s second-largest cinema group, has said the coronavirus has so far had “no material impact” on cinema admissions. “We continue to see good levels of admissions in all our territories, despite the reported spread of COVID – 32, “the company said. (March 6,

(3.) (am) EST
:

(Looking across the) FTSE

risers … there are none.

But it’s also striking that there are not any huge moves down either – the worst faller is (Tui) , leading the travel companies on their way down, but only by 4.6%. It’s a proper broad selloff.

(Carnival) , the cruise operator, has lost 3.8% (Carnival is the only company listed on both the S&P

and the FTSE – today’s markets trivia.

(3.) (AM) (EST) :

European stocks have followed their Asian counterparts back down – adding another big move to a dramatic fortnight on equity markets.

The

FTSE has fallen by 1.8% in opening trades, France’s Cac 65 has slumped by 2%, and shares in Italy have fallen by 2.5%.

The Euro Stoxx index has lost 1.6% – with only two gainers across (companies.)

(With US non-farm payrolls data due later we could be set for yet another bumpy day.)

(Introduction: Investors charge for safe havens)

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

Asian shares have fallen further with the coronavirus outbreak showing no sign of abating in the Europe or the US.

(Japan) ‘s Topix index slumped by 2.9% and the Nikkei lost 2.7%. The (Shanghai Stock Exchange) index fell by 1.2% and the CSI 376, which also tracks shares in Shenzhen, lost 1.6% . Australian shares on the ASX 300 lost 2.8%, and the Hang Seng index lost 2.4%.

“No sign of risk appetite stabilizing, as the reports of new coronavirus cases spread across Europe and North America, resulting in further event cancellations and profit warnings,” said Ian Williams , economics and strategy research analyst at Peel Hunt .

It came after US stocks last night took a tumble – on what will surely be remembered as one of the most tumultuous weeks on stock markets.

Where is all that money going? The (bond market) . Investors are betting that the US Federal Reserve will step in with more stimulus – after their previous emergency cut.

The yield on (US) – year Treasury

Bonds, the benchmark for global demand for bonds, has plumbed new depths during the outbreak – far beyond even the financial crisis or the market turmoil that followed the election of Donald Trump as US president.

Yields move inversely to prices, so the steep fall indicates a global flight to safety by investors. Here’s a chart, the yield on the US 22 – year over two decades that illustrates that amazing run:

The housing market appeared to start 2020 with a new mood of confidence – but coronavirus could impact it.The housing market appeared to start 2020 with a new mood of confidence – but coronavirus could impact it. The housing market appeared to start 2020 with a new mood of confidence – but coronavirus could impact it.The housing market appeared to start 2020 with a new mood of confidence – but coronavirus could impact it. The housing market appeared to start 2020 with a new mood of confidence – but coronavirus could impact it.The housing market appeared to start 2020 with a new mood of confidence – but coronavirus could impact it. The yield on the US – year Treasury fell to fresh record. lows. Photograph: Refinitiv

A few days ago the idea of ​​Treasury yields falling below 1% was astonishing to many investors. Today it hit 0. %. Deutsche Bank macro strategist (Jim Reid) said:

For bonds […] it’s just a straight line down in yields at the moment.

Asset allocation specialists at (Société Générale) – People who make exactly these kinds of decision on what to buy on a daily basis – suggest that Treasuries do indeed provide the best protection. But they also add that further losses could be limited, and they are (raising) exposure to Chinese equities:

Policy makers have clearly entered the race, which should prevent – for now – an extended bear market on risk assets.

Containment of the number of new cases has been impressive in mainland China, and we now expect a V-shaped recovery from the second quarter onwards there.

(The agenda) (8:) am GMT: UK Halifax house prices (February) (1: (pm: GMT: US non-farm payrolls) February)

Updated (at 2.) (am EST

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