|Day's Range||5,677.68 - 5,812.12|
|52 Week Range||4,898.80 - 7,727.50|
The poor pre-coronavirus state of the U.K. economy creates two temptations the government should resist: first, speeding up the exit from the current lockdown and second, going full steam ahead on Brexit instead of asking for an extension to negotiate a better deal.
The three key risk metrics we track keep moving in the right direction as policymakers squeeze systemic risk from safe havens and risk assets begin to more directly price growth uncertainty: (1) the UST 10-year rose for a third day to 77bps and TYVIX is below 8 for six consecutive days while both JPY and gold implied volatility fell again. TYVIX settling into a 6-8 range is very positive for risk markets; (2) the VIX curve fell and flattened again with every point along the term structure lower.
As many as 5.5 million Americans filed for unemployment benefits last week, analysts estimate, as the coronavirus pandemic continues to wreak havoc on the world's biggest economy.
European stocks opened higher Thursday after a strong rally on Wall Street as policymakers globally discuss how to re-open their economies. The German DAX and the U.K. FTSE 100 each rose 1.4% in opening trade, while futures on the Dow industrials rose 233 points.
European stock markets pushed higher Thursday, as investors took in the strong gains on Wall Street overnight but remained cautious ahead of the resumption of talks on how to fund the massive government borrowing needed to support the region's economy through the crisis. The Eurogroup meeting had originally started Tuesday, but disagreements persisted over the conditions for loans to hard-hit countries like Spain and Italy under the eurozone bailout fund, the European Stability Mechanism, as well as whether to issue joint debt known as ‘coronabonds’ as part of a wider recovery plan. In corporate news, UBS (NYSE:UBS) and Credit Suisse (SIX:CSGN), Switzerland’s two biggest banks, said Thursday that they had decided to partially postpone the payment of their dividend for 2019 until later this year.
European stocks fell Wednesday as investors looked at some gloomy economic forecasts and the failure of the European Union to come up with a united front against the pandemic.
Coronavirus could wipe £170 billion off U.K. corporate profits in the space of 18 months but the stock market crash is a “clear overreaction,” according to financial data giant Link Group.
London stocks gave up a strong start to the week, dropping on Wednesday as investors kept close watch on an intensifying coronavirus outbreak in the country, and an infected Prime Minister Boris Johnson remained in intensive care for a second day.
(Bloomberg) -- Tesco Plc maintained its plan to pay out a full-year dividend and a 5 billion-pound ($6.2 billion) special payout as the U.K. grocer’s sales soar amid the coronavirus pandemic, even as other companies abandon such payouts.Tesco is in a financially strong position to pay dividends, Chief Executive Officer Dave Lewis said in a rare bit of corporate good news. Thousands of savers and pensioners, who hold fewer than 1,000 shares each, rely on the payouts to supplement their incomes, he said.“We would not pay a dividend if we felt it would jeopardize our ability to serve British shoppers,” he said on a conference call.Tesco reported an extraordinary 30% surge in revenue as shoppers reacted with panic at the prospect of a nationwide lockdown in early March, stockpiling everything from toilet paper to pasta. Lewis said demand has returned to more normal levels and most of the rationing it imposed is no longer necessary. Stock levels have also stabilized, he said Wednesday.Despite surging sales, Lewis said, the grocer’s costs are rising and uncertainty about how long the lockdown will continue means Tesco can’t provide financial guidance on profit for the current year. Reduced income and increased bad debt provisions mean Tesco Bank is also like to report a loss this year.The shares fell as much as 7.7% on Wednesday in London, while the FTSE 100 Index of top British stocks fell as much as 2%.Tesco has added more than 45,000 employees in the last two weeks to cope with demand and cover staff absences due to Covid-19. In recent weeks, up to 50,000 staff have been off ill or isolating at home but that number is starting to reduce now, the grocer said. Tesco forecast its costs will rise by 650 million to 925 million pounds as a result of increased wages and higher distribution and store running costs.This higher cost burden is why Tesco is taking advantage of some of the government support schemes, including a year’s relief from business rates, a property tax, reducing its bill by 585 million pounds. Many companies tapping government support during the crisis have scrapped dividends to avoid the appearance of rewarding shareholders with taxpayers’ underwriting.However, Lewis said its forecast cost increases far outweighed any business rates relief it would receive. He said the grocer is being selective in which government support measures it uses. For example, Tesco isn’t taking advantage of an offer to defer value-added tax.“If we don’t need help from the government then we won’t ask for it,” Lewis said.(Updates with CEO comments in the second and third paragraphs.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
U.S. stock futures are higher in choppy trade, while European stocks are down after euro-area finance ministers failed to agree on a united plan to confront the virus, which has now infected more than 1.4 million people worldwide.
Indian stocks closed lower on Wednesday as investors locked in some recent gains amid fears of an extension of the coronavirus-led lockdown and its impact on business. Senior officials told Reuters earlier on Wednesday that India's financial hub Mumbai was set to extend lockdown measures until at least April 30. "Globally, things are not great, it is very volatile, there will be pressure and some profit-taking," said Neeraj Dewan, director at Quantum Securities in New Delhi.
Stocks continue to track coronavirus infection rates amid a dearth in hard economic data following the wipe out of last night's 900 point rally for the Dow Jones Industrial Average.
European stocks fell Wednesday as coronavirus worries weighed over investors and a meeting of finance ministers failed to reach agreement on a plan to fight the crisis. The Stoxx Europe 600 index fell 0.9% to 323.48, with the French CAC 40 dropping 1.5% after the Bank of France reportedly predicted a massive slump in activity in the first quarter. France and the U.K. have seen rising death rates, with Spain's also rising after four days of falls, while Italy has seen an easing in its own death toll and infection rate. U.S. stock futures moved in and out of positive territory. Dow Jones Industrial Average futures rose 98 points to 22,589. The U.S. has also seen rising pandemic death tolls, notably in New York City.
Elite “magic circle” law firm Linklaters is cancelling its quarterly payout to partners in an effort to conserve cash, the latest move by the largest global law firms to weather an impending drop in revenue. City stalwart Linklaters, which generated a profit of £1.63bn in its last financial year, sent a video to staff on Wednesday informing them that its 480 equity partners would not receive a June payout as planned. The firm said “it is right that partners should meet the initial impact of this crisis” rather than more junior staff.
European stock markets weakened Wednesday, as the region’s finance ministers failed to agree on how best to finance the response to the coronavirus crisis, reviving old doubts about the long-term viability of the euro. The broader based Stoxx 600 Europe index dropped 0.6%. Eurozone finance ministers have again failed to agree on an economic package to support the region’s economy after all night talks brought no breakthrough.
The Dow gave up a gain of more than 900 points, or 4.1%, on Tuesday. It was the index’s largest blown daily gain since the 2008 financial crisis.
The British pound recovered and U.K. stocks rose Tuesday, as concern over the hospitalization of British Prime Minister Boris Johnson was offset by broader optimism the coronavirus crisis was slowing.
European stocks climbed for a second day as traders focused on data showing that the growth rate of the coronavirus spread is slowing.
With global coronavirus death rates slowing, and U.S. stocks rising, some investors are starting to look towards the end of the deadly pandemic.
Median earnings of FTSE 100 top executives rose by two-fifths between the 2007 financial crisis and 2013. One reason was that incentive schemes were reset to make them more achievable, often by rebasing earnings per share targets. To work, long-term incentive plans must hold out a realistic possibility of reward.
European stock markets are set to push higher Tuesday, following on from Monday’s strong gains, as investors look for more financial aid to help bolster the region’s battered economies. At 2:25 AM ET (0625 GMT), the DAX futures contract in Germany traded up 1.1%. France's CAC 40 futures were up 1.9%, while the FTSE 100 futures contract in the U.K. rose 1.4%.