Some notable UK corporate news this morning: first up, Cineworld.
The British cinema operator has closed its entire network of 787 cinemas in 10 countries around the world after coronavirus lockdowns spread.
Directors of the company have agreed to defer their salaries and bonuses.
Cineworld suspended its dividend for the fourth quarter of 2019 and all of 2020, and it is in talks with landlords, film studios and banks about reducing spending and getting access to cash (not surprising given that it has no revenues coming in).
Every effort is being made to mitigate the effect of the closures, to assist our employees and to preserve cash. These efforts include discussions with our landlords, the film studios and major suppliers, as well as curtailing all currently unnecessary capital expenditure. This is a painful but necessary process as before the onslaught of the COVID-19 virus, we were excited and confident about the Group’s future prospects.
And it’s a very strong start on stock markets in Europe as well.
The FTSE 100 has gained 2.9% in the first few minutes. EasyJet and Royal Bank of Scotland are the early leaders. There are no fallers – showing that this is a broad risk-on rally.
Germany’s Dax has gained 3.8%. France’s Cac 40 has gained 2.6%, and Spain’s Ibex has gaind 2.2%.
Introduction: Riskier assets gain ground
Good morning, and welcome to live coverage of business, economics and financial markets.
Asian stock markets have gained this morning, following the lead of US investors who drove massive gains last night on major stock indices.
The Shanghai Stock Exchange composite index and the CSI 300 (which also covers Shenzhen) both rose by more than 2%. Shares in Hong Kong both gained more than 1% and South Korea’s Kospi gained 1.7% – although Australian shares edged down.
Meanwhile, Japan’s broad-based Topix and blue-chip Nikkei indices both gained more than 2% after Shinzo Abe’s government unveiled fiscal stimulus worth more than £800bn to tackle the coronavirus economic slowdowns.
In the UK the news agenda today will of course be dominated by any updates on the condition of Prime Minister Boris Johnson, who spent the night in intensive care with Covid-19.
There has been “no change” in Boris Johnson’s condition this morning, according to Reuters citing two sources close to him. Michael Gove, speaking on BBC radio, just said that he has had oxygen support but has not yet been put on a ventilator.
You can follow any updates as soon as they come out here and on the UK coronavirus blog.
Sterling lost ground last night when the move to intensive care was first announced, but it has rallied this morning in the worldwide move towards riskier assets. That move has been prompted by more positive news on the virus’s trajectory in Europe.
The US dollar has acted as something of a safe haven during the crisis (although it has also been driven higher by companies’ needs for dollars); today, however, the pound has gained 0.6% against the greenback to trade at $1.2300. Against the euro the pound has gained 0.5% to trade at €1.0845.
The agenda
- 8:30am BST: UK Halifax house price index (March)
- 9:30am BST: UK labour productivity final reading (fourth quarter 2019)
- 2pm BST: European finance ministers’ call (press conference at 7pm BST)
- 3pm BST: Canada Ivey purchasing managers’ index (March)
- 3pm BST: US job openings and labor turnover survey (JOLTS) (February)
Updated