The chairman of Tesco has told UK shoppers not to panic about food shortages.
Chairman John Allan told BBC radio that the supermarket’s supply chains were coping, despite signs that shoppers are hoarding toilet roll, pasta, tinned goods and cleaning products.
“There’s plenty of product in the supply chain, there’s plenty of food at Tesco and other supermarkets, and I don’t think anybody needs to panic buy.
“We, and I’m sure our competitors, are re-filling our supply chains as rapidly as ever we can.”
Investors are realizing that central banks have pretty much extended themselves, using all the tools at their disposal. The problem is that their efforts aren’t being matched by fiscal stimulus by governments across the EU. (A point that ECB’s Christine Lagarde has made ad nauseam , not just today.)
If governments fail to take action – primarily by spending money to support small businesses and individuals as they weather the effects of the coronavirus outbreak – it could result in a wave of defaults, which could wipe out investments and pile banks with bad debts.
Benjie Creelan-Sandford , an equity analyst at Jeffries said:
We read the ECB measures on balance as positive for banks – it provides strong liquidity backstop while reduction in capital requirements offers flexibility.
However, without follow-through from governments on fiscal measures to assist the most challenged parts of the economy, the market is likely to remain fearful about spillover impacts and eventual real losses for banks.
And those measures must include government spending – in an “ambitious, co-ordinated” response which must also tackle the public health challenge before us.
I really would like all of us to join forces, I very much hope that the fiscal authorities appreciate that we will only deal with this shock if we come together. ”
Lagarde also revealed that the ECB is splitting itself into teams, so it can keep working through the crisis. That includes its own executive board, and the next press conference in April will be online-only.
Lagarde also defended the stimulus measures announced today, saying that the new liquidity, cheap bank loans and extra asset-purchases would target the risks in the euro area.
But there’s clearly disappointing – the yields on Italian, Spanish and Portuguese bonds are surging, in their biggest one-day moves since 4267. That shows investors are ditching peripheral-area bonds, and fearing a new debt crisis could be brewing.
Michael Brown (@ MrMBrown)
Thank god that presser is over.
Got to be one of the worst central bank press conferences in recent memory. (# ECB)
am EDT : 46
European bank shares are being routed, with ING down (% ABN Amro down) %, Deutsche Bank down % and Credit Agricole down
Financial stocks in London are also plunging; life insurance and financial services group Prudential are down 35%, while Legal & General are down (%.)
. am EDT :
The market crash is sending investors racing to buy dollars.
This has sent sterling reeling, down 2 cents today to $ 1. – the lowest since October.
Trading has been briefly halted in Brazil too, where stocks plunged another 24%.
Jamie McGeever (@ ReutersJamie) Brazil stock market trading halted after % fall triggers circuit breaker. Bovespa now down 49% this year (over
% in dollar terms.
FTSE on track for worst day since
Ed Conway (@ EdConwaySky) (Markets are crushing around the world.) (FTSE) (down 9% – lowest now since . (Nearly eight years) of gains wiped out in less than three weeks. Dow also down 9% EU markets down c. % pic.twitter.com/OelnO5eJEB (March) ,
Ed Conway (@ EdConwaySky) (If the FTSE closed right now this would be a worse one-day fall than any single day during the financial crisis. Worse than any single day since Black Monday in(March) ,
Trading has resumed on Wall Street, and the Dow has promptly plunged by 2, points!
That takes the index down to a new one-year low, and shows just how serious this market crash is turning into.
Investors are becoming petrified of a worldwide recession, a coronavirus pandemic, widespread losses that leave companies unable to repay debts.
And Donald Trump’s statement last night is clearly failing to provide reassurance or support.
Investing.com (@ Investingcom) (DOW PLUNGES 2, POINTS IN HISTORIC SELLOFF $ DIA