Good morning. European markets are set to recover some of Monday’s losses as attention turns to the response from world leaders to boost economies. On Monday, G7 governments pledged to do “whatever is necessary” to ensure globally coordinated action. Meanwhile, US stocks suffered their worst rout since the 1987 Black Monday panic after Donald Trump warned a recession…
Good morning. European markets are set to recover some of Monday’s losses as attention turns to the response from world leaders to boost economies. On Monday, G7 governments pledged to do “whatever is necessary” to ensure globally coordinated action.
Meanwhile, US stocks suffered their worst rout since the 1987 Black Monday panic after Donald Trump warned a recession is increasingly likely.
The Dow dropped nearly 3,000 points in a 13pc plunge, its biggest ever points fall, while 12pc was wiped off the benchmark S&P 500.
5 things to start your day
1) Chancellor Sunak Rishi to provide businesses a lifeline: The Chancellor will front up the Government’s response to the escalating coronavirus pandemic by making clear that the Government will offer a bigger bail-out fund for companies.
2) The UK’s pub industry will be “lost in days” without immediate and decisive Government action, its leaders warned. In a letter to the Prime Minister, the British Beer and Pub Association said it was facing an existential crisis as a direct result of Boris Johnson’s new guidance that people should avoid visiting pubs, restaurants and bars.
3) Top firms face coronavirus disruption to audits and annual meetings: London’s biggest listed companies face corporate governance chaos if they are unable to file their accounts on time and are forced to delay annual shareholder meetings due to the coronavirus outbreak.
4) Lorry drivers who are essential for keeping supermarket shelves stocked during the coronavirus crisis are being blocked from washing facilities at delivery sites – risking sweeping product shortages, the truckers’ union has said. Numerous hauliers have claimed they are being denied access to toilets at their destinations.
5) What business wants in the Government’s rescue package: While central banks are nearing the limits of their blunted tools, economists argue that governments and fiscal policy need to take control of the wheel.
What happened overnight
Trading in Asia was volatile. Japan’s share benchmark ended up more than 2pc after swinging between gains to losses. A day after a record slump, Australia had its biggest surge since 1997. Hong Kong and China fluctuated. South Korea’s Kospi index fell 2.6pc.
Coming up today
Interim results: Ferguson, SCS, Softcat
Preliminary: Antofagasta, ContourGlobal, Polypipe
Full-year: Smart Metering Systems, TI Fluid Systems
Economics: Unemployment, wages (UK), ZEW sentiment (Germany), retail sales, production (US)