Rolling coverage of the latest economic and financial news, as coronavirus lockdown easing measurings push equity marketplaces higher
10.35 am BST
The Bank of England’s chief economist Andy Haldane has said that the central bank is not even remotely close to making a decision on whether to cut rates below zero.
Speaking as part of a webinar organised by the Confederation of British Industry, he explained that the Bank would have to take key issues into consideration, including the consequences on the financial sector( with banks relying on income from interest) and confidence in the economy.
10.15 am BST
Newsflash: Accounting watchdog the Financial Reporting Council has launched an investigation into KPMG and PwC over the audits of haulage firm Eddie Stobart.
The FRC said it was linked to inspections for its first year aiming 30 November 2017( conducted by KPMG) and 30 November 2018( who the hell is to be undertaken by PwC ).
10.05 am BST
US futures are drawn attention to another strong start for stocks on Wall street.
Most notably, S& P 500 futures are up 1.8% and pushing above 3,000 phases for the first time since early March.
9.34 am BST
Confirming reports out yesterday, indulgence carmaker Aston Martin said this morning that it had sacked CEO Andy Palmer as part of a wider board overhaul.
It follows collapse in its share price and a slump in sales due to the coronavirus pandemic.
Palmer’s replacement, Tobias Moers, will join on 1 August from Mercedes-AMG, where he is currently the boss of the German carmaker’s high-performance division.
Palmer had served as Aston Martin’s chief executive since 2014, and the company showed his departure present progress report over the weekend. Palmer left the company, James Bond’s favourite car marque, on Monday.
9.10 am BST
Newsflash: Singapore has unveiled its fourth economic stimulus package in response to the Covid-1 9 crisis this morning.
The package is worth 33 bn Singapore dollars( about PS19bn ), bringing the full amounts of the stimulus to 100bn Singapore dollars which represents around 20% of the island nation’s GDP.
8.53 am BST
Consumer stocks have also been boosted by Prime Minister Boris Johnson’s announcement yesterday that non-essential retailers will start re-opening over the coming weeks.
As all my fellow members Rowena Mason reports , outdoor markets and vehicle showrooms will be allowed to reopen in England from Monday next week, while other non-essential retail propositions will be allowed to open in three weeks’ time.
8.49 am BST
Consumer and travel stocks are surging ahead in Europe, and are among the best musicians on the FTSE 100 this morning.
Investors seem to be warming back up to companies like British Airways proprietor IAG and cruise ship operator Carnival, following news that Germany had agreed to a EUR9bn bailout for airline Lufthansa.
The deal still needs to get the nod from the European Commission, which are able to enforce a number of conditions in return for its approval, including the surrender of key flight slots. These types of rescue generally come with strings attached as UK bank Royal Bank of Scotland obtained when it was bailed out by the UK government in 2008. The bank was forced to sell a number of assets at flaming sales price including Worldpay, Direct Line, as well as spend times to try and sell off Williams and Glyns limbs at a significant cost.
The EU Commission will certainly feel the heat from Ryanair CEO Michael O’Leary if they do ripple this bailout through without obtaining a heavy cost from Lufthansa, which has been badly run for several years now.
8.28 am BST
The FTSE 100 is pushing ahead at 6,130 degrees. If it manages to hold above these levels we will reach a one-month high at the close. But with 4:30 pm still a long way off, we’ll have to stick to intra-day tiers, which were still higher at 6,151 points on 30 April.
8.14 am BST
With the FTSE 100 trading at around 6,107 points, the blue chip index is nearing a one-month high.( The previous high came on 29 April when the FTSE 100 rose above the 6,115 symbol)
However, we’re still a long way off before we get anywhere close to pre-Covid levels 😛 TAGEND
8.02 am BST
And, we’re off! Major indicators across Europe are all higher as sells open for trading 😛 TAGEND
7.57 am BST
Asian and Australian inventories have defined the flavor for a strong start in Europe:
7.54 am BST
UK and US stock markets are back in action today after being closed for the bank holiday Monday. Major indices in both countries are expected to rise, taking their cue from Asia where inventories are climbing thanks to the easing of Covid-1 9 lockdown limiteds across the world and some better-than-expected economic data out of Singapore.
Singapore is among the world’s most open economies and is viewed as a bellwether on the economic front. And while world markets was outlook for more agony, the GDP contraction was much less than expected. It will be received quite favourably in the world context since Singapore’s economy is only now emerging from lockdown status.
Asia markets have continued in this vein, rising aggressively on reports that Japan is also easing its remaining emergency measures, while news that American firm Novavax is set to start its first human studies of its experimental coronavirus vaccine likewise furnished a increase.
With UK sells set to play catch-up this morning we can expect to see a very strong open for the FTSE1 00, with other marketplaces in Europe likewise set to open higher and build on the gains constructed yesterday.
Read more: theguardian.com