The FTSE is following other financial markets in falling today. Confidence about a potential coronavirus vaccine has been knocked after a report on a healthcare news website raised doubts on the data from a clinical trial by the company Moderna.
Aerospace giant Rolls-Royce has said it plans to cut at least 9,000 jobs after the aviation industry was hit hard by the coronavirus pandemic. It said it expects the job losses as part of a 'major reorganisation' of the business to adapt to a fall in demand.
Britain's inflation rate fell to its lowest since August 2016 last month as retailers resorted to discounts in the face of the Covid-19 shutdown. The consumer price index dropped to an annual rate of 0.8 per cent in April from 1.5 per cent in March,
Marks & Spencer has said it will accelerate its latest turnaround programme as it dealt with the fallout from the coronavirus crisis and reported a 21 per cent fall in annual profit.
Just over a third of companies in Britain believe they can fully restart operations while implementing the government's coronavirus workplace guidance, a survey from the British Chambers of Commerce showed has showed.
Camilla Canocchi Host commentator
Harry Wise Host commentator
Auto-update
12:54
Vistry Group warns of more job cuts after announcing £60m in dividends
Vistry Group has said it plans to make some more employees redundant five days after stating it was rewarding investors with tens of millions of pounds in shares.
The FTSE 250 company did not specify how many jobs would be lost, but it noted that the move would save another £9.5million, in addition to the £35million in savings from its restructuring after acquiring Linden Homes.
Vistry Group warns of more job cuts after announcing £60m in dividends
The FTSE 250 company did not specify how many jobs would be lost, but it noted that the move would save them another £9.5million.
This is Money
12:52
Britain borrows at negative interest rates for first time
Britain sold a government bond with a negative yield for the first time today, meaning the state is effectively being rewarded to borrow as investors agree to be repaid slightly less than they lent.
It joins Japan, Germany and some other European countries in selling government debt with a negative yield and suggests the prospect of a severe global recession.
Traders are betting that the Bank of England will introduce negative interest rates for the first time ever later this year, also in light of today's fall in inflation. The BoE has already cut the base rate to a record low of 0.1 per cent in March.
Edward Moya, an analyst at OANDA, comments:
Negative rates are here. History was made today when Britain sold its 2023 gilt with a negative yield.
This was the first UK maturity with a negative yield, making another European country join the negative yielding government debt camp.
Expectations for the BOE to cut rates continue to grow as the two-year benchmark gilt sank further into negative territory. The British pound could remain vulnerable as Brexit talks head toward another crucial deadline and as inflation hits a four-year low, likely raising calls for the BOE to expand QE.
12:45
Union bosses boast 'state is back' and demand public sector pay rise
Union bosses today boasted 'the state is back' as they demanded a public sector pay rise and called for a 'National Recovery Council' to be set up to guide Britain's post-coronavirus future.
The TUC is calling for a dramatic shake up of the way the UK does business after the outbreak, urging the Government to ban zero hours contracts and give people employment guarantees.
Union bosses boast 'state is back' and demand public sector pay rise
TUC general secretary Frances O'Grady believes Britain must show the same level of unity as it did after the Second World War in order to heal society and the economy in the coming years.
Mail Online
12:41
Union accuses airlines of exaggerating impact of pandemic to make...
A pilots' union chief has told MPs airlines are 'taking advantage' of the coronavirus crisis' impact on the industry in order to cut thousands of jobs.
Brian Strutton, general secretary of Balpa, 카지노사이트 told MPs that carriers are looking to "take advantage of the crisis".
Union accuses airlines of exaggerating impact of pandemic to make...
Balpa general secretary Brian Strutton said airlines were 'egging the pudding too much,' over the potential impact of the coronavirus crisis. British Airways, Ryanair and Virgin Atlantic have all announced job cuts.
Mail Online
12:35
McDonald's is reopening 30 more drive-thru restaurants TODAY
McDonalds has reopened 30 of its restaurants today, allowing customers to purchase food through its drive-thru restaurants as the fast-food giants set about their re-opening strategy.
The restaurant chain opened a number of its branches from 11am on Wednesday, in conjunction with the Government's strict guidance on social distancing rules.
BREAKING: McDonald's is reopening 30 more drive-thru restaurants TODAY
McDonald's is to reopen 30 of its restaurants today as the fast-food giant sets about its re-opening strategy amid the coronavirus lockdown. The chain will see its drive-thru service reopen.
Mail Online
12:31
Softbank CEO compares himself to 'misunderstood' Jesus Christ
The CEO of Softbank has compared his suffering during the coronavirus pandemic to 'misunderstood' Jesus Christ as he defended a £13billion annual loss.
Founder Masayoshi Son, 62, also used slides illustrated with a set of unicorns falling into a ravine to demonstrate the effect of coronavirus during an earnings call on Monday.
Softbank CEO compares himself to 'misunderstood' Jesus Christ
Founder Masayoshi Son, 62, used slides illustrated with a set of unicorns falling into a ravine to demonstrate the effect of coronavirus on Japanese Softbank during an earnings call on Monday.
Mail Online
12:25
Buyers face mortgage crisis as firms withdraw or lower offers
Britons could see their dreams of getting on the property ladder dashed as banks culled low-deposit deals and left first-time buyers with a £12,000 gap in their finances.
The Government reopened the housing market last week after it was effectively shut down in March in response to coronavirus. But because of fears of a collapse in house prices, banks are demanding more cash up front from would-be buyers.
Buyers face mortgage crisis as firms withdraw or lower offers
The Government reopened the housing market last week after it was effectively shut down in March in response to the COVID-19 pandemic.
Mail Online
12:20
Montly price changes cannot be assessed for 16% of goods
James Lynch, Fixed Income Manager at Kames Capital, comments on the latest CPI figures:
CPI is falling, from 1.5% in March to 0.8% yoy in April, but 16% of the basket the ONS usually assesses could not be collected because of the current situation. This includes what a plumber would charge, or what a cinema ticket would cost.
Given we have a fall in inflation which is in large part due to the fall in energy and oil, it is having a downward effect on inflation, but this should trough around August.
Will it bounce back later in the year? I think the main thing to watch is the oil price, but if we are at a stage when the ONS has full data on the inflation basket and we are out of the lockdown as we know it now, it the focus will move to what variations we get on inflation rates, I.e the prices businesses set.
It is not intuitive to me that prices will keep falling across the board. Yes, there will be stock to get rid of (thinking clothing and retail here), but where there are supply issues meeting the demand of consumers coming out of lockdown, it may lead to some upward pressure.
11:47
ONS: UK house prices rose 2.1% in the year to March
House prices and sales continued to rise in the build up to the lockdown, with London recording the fastest growth in four years, official figures have showed.
But given the disruption caused to the market by the coronavirus pandemic, which has effectively ground activity to a halt, the Office of National Statistics has now suspended the index until further notice.
House prices across the UK soared 2.1 per cent, or £5,000, in the year to March to hit an average £232,000.
London saw the fastest growth since December 2016, with prices in the capital increasing by 4.7 per cent to reach £486,000 on average, according to the figures released jointly by the ONS and the Land Registry.
The index is based on completed house sales, which can take up to two months to go through, suggesting yet again that the housing market had gathered momentum since the beginning of the year.
The average UK house price was £232,000 in March 2020, £5,000 higher than the same period a year ago website
— Office for National Statistics (ONS) (@ONS) May 20, 2020
11:40
'It seems traders should treat every trial result with caution'
Joshua Mahony, Senior Market Analyst at IG, comments on today's easing of the markets:
European markets are largely flat in early trade today, with the recent optimism over the trial results from Moderna are debunked to the detriment of market sentiment. Warnings from the likes of Rishi Sunak highlight the long recovery ahead of us, but traders are hesitant to bet against markets that are constantly propped up by central banks and governments.
It seems traders should treat every trial result with caution given the volatility around both Gilead and Moderna announcements over recent weeks. Every specialist seems to indicate that a vaccine will take some time to develop, yet markets treat each trial announcement like we are on the cusp of a huge breakthrough that could see everything swiftly return to normal.
Ultimately we are looking at a drawn out recovery, and the consolidation we have seen for stocks over recent weeks serves to highlight that another surge may not necessarily be justified given how elevated pricing is compared with forward earnings.
11:09
The Footsie is now in the green - up 0.25% at 6,017
Same for the FTSE 250, which is also up 0.35% at 16,362.
11:08
Full story on M&S below...
M&S to accelerate its overhaul with £1bn of cost cuts as profits fall
Chief executive Mark Rowe said the Covid crisis has 'galvanised our colleagues to secure the future of the business' as he unveiled cost-cutting measures of £1billion,
This is Money
10:48
Coronavirus could be 'catalyst' M&S needed to overhaul its business
Analysts think the coronavirus crisis may have been the push M&S needed to transform its business for the better.
Markets.com analyst Neil Wilson says:
Covid-19 has accelerated lots of consumer trends and it may just be the catalyst required to accelerate Marks & Spencer's transformation into a 21st century retailer.
In particular it looks as though M&S has learnt just how important online is - so it's making its Ocado venture more central to the business, introducing 1,600 Clothing & Home lines to be available online via Ocado. Much smaller store footprint, more focus on food, leverage the Ocado platform - there is at last a lot to be said for the MKS approach. Of course, we've talking about Marks' recovery and transformation plans for many a year.
Richard Hunter at interactive investor, added:
The direct impact of the pandemic may have been felt mostly in its stores and largely therefore on its Clothing and Home lines, but it has also galvanised the company into a rethink of the entire business, scything through layers of unnecessary processes and costs in anticipation of how the consumer may shop on the other side of the current economic shock.
10:38
How do you calculate a lockdown inflation basket of goods?
George Nixon has the story...
Inflation: How a basket of goods has altered in wake of lockdown
Pints of Guinness, cinema popcorn, haircuts and airport parking were all stripped out of Britain's latest inflation basket as statisticians tried to calculate price changes in the middle of the lockdown
This is Money
10:30
Marks & Spencer shares jump 7%
Marks & Spencer shares have risen despite reporting a 21 per cent fall in annual profits as it announced substantial cost-cutting measures and said it will accelerate its overhaul to face the changes brought by the coronavirus crisis.
Chief executive Mark Rowe said the Covid crisis has 'galvanised our colleagues to secure the future of the business' as he unveiled cost-cutting measures of £1billion, plans to sell clothes via its new partner Ocado and a renewed focus on food.
The unveiling of its 'never the same again' overhaul comes as the retailer posted a 21 per cent slump in pre-tax profits to £403.1million in the year to the end of March, which only captures the beginning of the coronavirus crisis.
Shares are up 7 per cent at 92p.
Marks and Spencer shares this morning
10:28
Inflation figures 'to be taken with a pinch of salt'
Shiv Pabari at pricing strategy consultancy Simon-Kucher & Partners comments on the latest monthly inflation statistics released by the ONS this morning:
The headline inflation figure reported by the ONS has fallen further to 0.9%, which is comfortably below the Bank of England's target of 2%.
However consumers should take this information with a pinch of salt as the "representative basket of goods and services" that the ONS uses to calculate inflation in the UK is no longer representative of what households are currently spending on.
This means that in reality households may actually be facing even more financial pressure than it initially appears, as not only are incomes reduced but also their costs are increasing by more than official figures indicate.
09:58
Inflation plunges to four-year low as fuel costs nosedive
UK inflation has plunged to its lowest level for nearly four years last month as fuel costs nosedive - but toys, puzzles and alcohol are getting more expensive as families get used to coronavirus lockdown.
Official figures showed the CPI measure tumbled by more than expected to 0.8 per cent last month - the lowest level since August 2016 and down from 1.5 per cent in March.
Inflation plunges to four-year low as fuel costs nosedive
Official figures showed the CPI measure tumbled by more than expected to 0.8 per cent last month - the lowest level since August 2016 and down from 1.5 per cent in March.
Mail Online
09:42
Markets are down in most places
Russ Mould, investment director at AJ Bell, comments on the markets:
After a flurry of optimism in recent sessions, investors were struggling to keep their hopes up about a rapid return to normal life. Wednesday saw stocks fall across many markets including a 0.6% decline in the FTSE 100 to 5,964, weighed down by weakness in banking, insurance and consumer cyclical stocks.
Hopes about a possible coronavirus vaccine were dampened by a scientific report which cast doubt over Moderna's drug candidate. Markets had previously rallied on hype around the potential treatment. European markets fell by up to 1.3% while there was a mixed performance in Asia.
Hong Kong's Hang Seng index slipped 0.1% while Japan's Nikkei index advanced 0.8% thanks to strong gains from the energy and healthcare sectors, with the top riser being a 16% rally from electronics maker Furukawa Electric on reported better than expected results. The pound fell 0.15% against the US dollar to $1.2232 while the gold price nudged up 0.2% to $1,747 per ounce.
09:17
M&S 'has clearly adapted well to changing market dynamics'
Joe Healey, Investment Research Analyst at The Share Centre comments on what M&S's results means for investors:
Despite the tough year, where I believe investors will be taking optimism looking forward is on the food side. The acquisition of 50% of Ocado Retail is a valuable investment in online grocery and has the potential to transform M&S' growth potential in this segment. We all know, particularly throughout this virus, how critical the shift to online has been for consumers, so this could be the boost it needed to start materially transforming the way consumers shop.
All in all, I think investors will be satisfied with the results today. The business has clearly adapted well to changing market dynamics, for example their online delivery exposure which has helped mitigate the negative effects of the crisis. Trading has remained relatively solid, meaning the Group exceeded their Covid-19 scenario cash-flow projection by £150m and the Group continue to evolve both product lines and innovations at a matching pace to societal needs. We do not currently have a view on the stock but it is clear that there a few more obstacles for the Group to navigate.
09:13
Which goods and services fell in price last month?
Goods and services that fell in price between March and April:
Gas: -3.5%
Water supply: -1.7%
Sewage collection: -4.6%
Petrol (per litre): -10.4%
Diesel (per litre): -7.8%
Books: -14.3%
Food: -0.1%
09:07
Airlines and travel stocks among the biggest fallers this morning
Michael Hewson, Chief Market Analyst at CMC Markets UK, comments on the markets this morning following doubts over a potential Coid-19 vaccine:
Despite getting an early week boost from Fed chair Jay Powell's 60 minutes comments at the weekend, that the Fed had plenty of additional tools to support markets in its toolbox, stock markets found further progress rather limited yesterday as doubts resurfaced about the prospects of a Covid-19 vaccine coming to market quickly.
Nagging doubts about the efficacy of reports around recent trials of Moderna's potential vaccine saw momentum subside as profit taking started to kick in, as US markets slipped back, while Asia markets were more mixed. This is likely to be a persistent problem in the days and weeks ahead, as sentiment ebbs and flows, according to the fortunes of clinical trials and tests, as economies struggle back to their feet, as lockdown measures are gradually eased.
As such markets here in Europe have seen a similarly cautious open with the FTSE100 opening lower and below the 6,000 level after closing above it for two days in succession. The biggest decliners have once again been the airline and travel stocks and this is likely to be a familiar theme as the pros and cons over vaccine progress drag their share prices around.
08:48
'The markets got overly excited about Morderna's covid-19 vaccine'
Connor Campbell, financial analyst at Spreadex, comments on the morning's markets:
Unwilling to learn from past mistakes, the markets got overly excited about Morderna's covid-19 vaccine, only for the Dow Jones's optimism to be somewhat punctured on Tuesday night.
A report from Boston Globe Media's STAT news cast doubt on the success of Morderna's vaccine trials, not because they necessarily were a failure, but because the company failed to provide the ‘critical information' to allow the rest of the scientific community to assess the vaccine's efficacy.
This tamping down of expectations caused the Dow to drop close to 400 points on Tuesday, just less than half of the 1000-point growth seen on Monday.
The Dow's decline fed into the European session, contributing to the smattering of losses seen after the bell. The FTSE slipped under 6000 following a 0.4% decline, while the DAX and CAC were down 0.6% and 0.7% respectively.
08:47
Covid crisis 'has only made matters worse' for M&S
Alasdair Ronald of Brewin Dolphin, comments on M&S's new results:
Marks and Spencer did not have its troubles to seek prior to the outbreak of Covid-19, and the crisis has only made matters worse. As expected, profits have fallen significantly and there are signs that the lockdown period has taken a heavy toll on its clothing & home and international divisions, which appear to be structurally challenged. Of particular concern are the levels of clothing & home stock, along with committed forward orders of £560 million.
The better news is in food, where the early indications are that the deal with Ocado Retail is already bearing fruit; albeit, this is tempered by expectations of a £400 million fall in revenue. Management appears to acknowledge the seismic changes it now faces, implementing a substantial cost-cutting programme and re-balancing the overall business. These moves, combined with greater liquidity headroom, may help stabilise Marks and Spencer through one of the most challenging periods in its history, but there are likely to be more bumps in the road ahead.
08:44
Rolls-Royce will cut 9,000 aerospace jobs to save £1.3billion
Aerospace giant Rolls-Royce said today it plans to cut at least 9,000 jobs in the latest blow to the aviation industry as it continues to be hammered by the coronavirus crisis.
The Derby-based manufacturer, which has 52,000 employees worldwide, said it had been forced to conduct a 'major reorganisation' of the business to adapt to a fall in demand for its engines as planes remain grounded.
Rolls-Royce will cut 9,000 aerospace jobs to save £1.3billion
The job losses would mostly take place in its civil aerospace business, the British company said, as it started consultations with unions.
Mail Online
08:42
The FTSE 100 is down 0.5% at 5,972
While the FTSE 250 is down 0.6% at 16,225.
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A Ciência & Ensino é uma publicação semestral destinada a professores de ciências do ensino fundamental e médio e seus formadores.
MARKETS LIVE: FTSE down on vaccine trial doubts
por Victoria Reddick (2020-05-25)
Aerospace giant Rolls-Royce has said it plans to cut at least 9,000 jobs after the aviation industry was hit hard by the coronavirus pandemic. It said it expects the job losses as part of a 'major reorganisation' of the business to adapt to a fall in demand.
Britain's inflation rate fell to its lowest since August 2016 last month as retailers resorted to discounts in the face of the Covid-19 shutdown. The consumer price index dropped to an annual rate of 0.8 per cent in April from 1.5 per cent in March,
Marks & Spencer has said it will accelerate its latest turnaround programme as it dealt with the fallout from the coronavirus crisis and reported a 21 per cent fall in annual profit.
Just over a third of companies in Britain believe they can fully restart operations while implementing the government's coronavirus workplace guidance, a survey from the British Chambers of Commerce showed has showed.
Camilla Canocchi Host commentator
Harry Wise Host commentator
Auto-update
12:54
Vistry Group warns of more job cuts after announcing £60m in dividends
Vistry Group has said it plans to make some more employees redundant five days after stating it was rewarding investors with tens of millions of pounds in shares.
The FTSE 250 company did not specify how many jobs would be lost, but it noted that the move would save another £9.5million, in addition to the £35million in savings from its restructuring after acquiring Linden Homes.
Vistry Group warns of more job cuts after announcing £60m in dividends
The FTSE 250 company did not specify how many jobs would be lost, but it noted that the move would save them another £9.5million.
This is Money
12:52
Britain borrows at negative interest rates for first time
Britain sold a government bond with a negative yield for the first time today, meaning the state is effectively being rewarded to borrow as investors agree to be repaid slightly less than they lent.
It joins Japan, Germany and some other European countries in selling government debt with a negative yield and suggests the prospect of a severe global recession.
Traders are betting that the Bank of England will introduce negative interest rates for the first time ever later this year, also in light of today's fall in inflation. The BoE has already cut the base rate to a record low of 0.1 per cent in March.
Edward Moya, an analyst at OANDA, comments:
Negative rates are here. History was made today when Britain sold its 2023 gilt with a negative yield.
This was the first UK maturity with a negative yield, making another European country join the negative yielding government debt camp.
Expectations for the BOE to cut rates continue to grow as the two-year benchmark gilt sank further into negative territory. The British pound could remain vulnerable as Brexit talks head toward another crucial deadline and as inflation hits a four-year low, likely raising calls for the BOE to expand QE.
12:45
Union bosses boast 'state is back' and demand public sector pay rise
Union bosses today boasted 'the state is back' as they demanded a public sector pay rise and called for a 'National Recovery Council' to be set up to guide Britain's post-coronavirus future.
The TUC is calling for a dramatic shake up of the way the UK does business after the outbreak, urging the Government to ban zero hours contracts and give people employment guarantees.
Union bosses boast 'state is back' and demand public sector pay rise
TUC general secretary Frances O'Grady believes Britain must show the same level of unity as it did after the Second World War in order to heal society and the economy in the coming years.
Mail Online
12:41
Union accuses airlines of exaggerating impact of pandemic to make...
A pilots' union chief has told MPs airlines are 'taking advantage' of the coronavirus crisis' impact on the industry in order to cut thousands of jobs.
Brian Strutton, general secretary of Balpa, 카지노사이트 told MPs that carriers are looking to "take advantage of the crisis".
Union accuses airlines of exaggerating impact of pandemic to make...
Balpa general secretary Brian Strutton said airlines were 'egging the pudding too much,' over the potential impact of the coronavirus crisis. British Airways, Ryanair and Virgin Atlantic have all announced job cuts.
Mail Online
12:35
McDonald's is reopening 30 more drive-thru restaurants TODAY
McDonalds has reopened 30 of its restaurants today, allowing customers to purchase food through its drive-thru restaurants as the fast-food giants set about their re-opening strategy.
The restaurant chain opened a number of its branches from 11am on Wednesday, in conjunction with the Government's strict guidance on social distancing rules.
BREAKING: McDonald's is reopening 30 more drive-thru restaurants TODAY
McDonald's is to reopen 30 of its restaurants today as the fast-food giant sets about its re-opening strategy amid the coronavirus lockdown. The chain will see its drive-thru service reopen.
Mail Online
12:31
Softbank CEO compares himself to 'misunderstood' Jesus Christ
The CEO of Softbank has compared his suffering during the coronavirus pandemic to 'misunderstood' Jesus Christ as he defended a £13billion annual loss.
Founder Masayoshi Son, 62, also used slides illustrated with a set of unicorns falling into a ravine to demonstrate the effect of coronavirus during an earnings call on Monday.
Softbank CEO compares himself to 'misunderstood' Jesus Christ
Founder Masayoshi Son, 62, used slides illustrated with a set of unicorns falling into a ravine to demonstrate the effect of coronavirus on Japanese Softbank during an earnings call on Monday.
Mail Online
12:25
Buyers face mortgage crisis as firms withdraw or lower offers
Britons could see their dreams of getting on the property ladder dashed as banks culled low-deposit deals and left first-time buyers with a £12,000 gap in their finances.
The Government reopened the housing market last week after it was effectively shut down in March in response to coronavirus. But because of fears of a collapse in house prices, banks are demanding more cash up front from would-be buyers.
Buyers face mortgage crisis as firms withdraw or lower offers
The Government reopened the housing market last week after it was effectively shut down in March in response to the COVID-19 pandemic.
Mail Online
12:20
Montly price changes cannot be assessed for 16% of goods
James Lynch, Fixed Income Manager at Kames Capital, comments on the latest CPI figures:
CPI is falling, from 1.5% in March to 0.8% yoy in April, but 16% of the basket the ONS usually assesses could not be collected because of the current situation. This includes what a plumber would charge, or what a cinema ticket would cost.
Given we have a fall in inflation which is in large part due to the fall in energy and oil, it is having a downward effect on inflation, but this should trough around August.
Will it bounce back later in the year? I think the main thing to watch is the oil price, but if we are at a stage when the ONS has full data on the inflation basket and we are out of the lockdown as we know it now, it the focus will move to what variations we get on inflation rates, I.e the prices businesses set.
It is not intuitive to me that prices will keep falling across the board. Yes, there will be stock to get rid of (thinking clothing and retail here), but where there are supply issues meeting the demand of consumers coming out of lockdown, it may lead to some upward pressure.
11:47
ONS: UK house prices rose 2.1% in the year to March
House prices and sales continued to rise in the build up to the lockdown, with London recording the fastest growth in four years, official figures have showed.
But given the disruption caused to the market by the coronavirus pandemic, which has effectively ground activity to a halt, the Office of National Statistics has now suspended the index until further notice.
House prices across the UK soared 2.1 per cent, or £5,000, in the year to March to hit an average £232,000.
London saw the fastest growth since December 2016, with prices in the capital increasing by 4.7 per cent to reach £486,000 on average, according to the figures released jointly by the ONS and the Land Registry.
The index is based on completed house sales, which can take up to two months to go through, suggesting yet again that the housing market had gathered momentum since the beginning of the year.
The average UK house price was £232,000 in March 2020, £5,000 higher than the same period a year ago website
— Office for National Statistics (ONS) (@ONS) May 20, 2020
11:40
'It seems traders should treat every trial result with caution'
Joshua Mahony, Senior Market Analyst at IG, comments on today's easing of the markets:
European markets are largely flat in early trade today, with the recent optimism over the trial results from Moderna are debunked to the detriment of market sentiment. Warnings from the likes of Rishi Sunak highlight the long recovery ahead of us, but traders are hesitant to bet against markets that are constantly propped up by central banks and governments.
It seems traders should treat every trial result with caution given the volatility around both Gilead and Moderna announcements over recent weeks. Every specialist seems to indicate that a vaccine will take some time to develop, yet markets treat each trial announcement like we are on the cusp of a huge breakthrough that could see everything swiftly return to normal.
Ultimately we are looking at a drawn out recovery, and the consolidation we have seen for stocks over recent weeks serves to highlight that another surge may not necessarily be justified given how elevated pricing is compared with forward earnings.
11:09
The Footsie is now in the green - up 0.25% at 6,017
Same for the FTSE 250, which is also up 0.35% at 16,362.
11:08
Full story on M&S below...
M&S to accelerate its overhaul with £1bn of cost cuts as profits fall
Chief executive Mark Rowe said the Covid crisis has 'galvanised our colleagues to secure the future of the business' as he unveiled cost-cutting measures of £1billion,
This is Money
10:48
Coronavirus could be 'catalyst' M&S needed to overhaul its business
Analysts think the coronavirus crisis may have been the push M&S needed to transform its business for the better.
Markets.com analyst Neil Wilson says:
Covid-19 has accelerated lots of consumer trends and it may just be the catalyst required to accelerate Marks & Spencer's transformation into a 21st century retailer.
In particular it looks as though M&S has learnt just how important online is - so it's making its Ocado venture more central to the business, introducing 1,600 Clothing & Home lines to be available online via Ocado. Much smaller store footprint, more focus on food, leverage the Ocado platform - there is at last a lot to be said for the MKS approach. Of course, we've talking about Marks' recovery and transformation plans for many a year.
Richard Hunter at interactive investor, added:
The direct impact of the pandemic may have been felt mostly in its stores and largely therefore on its Clothing and Home lines, but it has also galvanised the company into a rethink of the entire business, scything through layers of unnecessary processes and costs in anticipation of how the consumer may shop on the other side of the current economic shock.
10:38
How do you calculate a lockdown inflation basket of goods?
George Nixon has the story...
Inflation: How a basket of goods has altered in wake of lockdown
Pints of Guinness, cinema popcorn, haircuts and airport parking were all stripped out of Britain's latest inflation basket as statisticians tried to calculate price changes in the middle of the lockdown
This is Money
10:30
Marks & Spencer shares jump 7%
Marks & Spencer shares have risen despite reporting a 21 per cent fall in annual profits as it announced substantial cost-cutting measures and said it will accelerate its overhaul to face the changes brought by the coronavirus crisis.
Chief executive Mark Rowe said the Covid crisis has 'galvanised our colleagues to secure the future of the business' as he unveiled cost-cutting measures of £1billion, plans to sell clothes via its new partner Ocado and a renewed focus on food.
The unveiling of its 'never the same again' overhaul comes as the retailer posted a 21 per cent slump in pre-tax profits to £403.1million in the year to the end of March, which only captures the beginning of the coronavirus crisis.
Shares are up 7 per cent at 92p.
Marks and Spencer shares this morning
10:28
Inflation figures 'to be taken with a pinch of salt'
Shiv Pabari at pricing strategy consultancy Simon-Kucher & Partners comments on the latest monthly inflation statistics released by the ONS this morning:
The headline inflation figure reported by the ONS has fallen further to 0.9%, which is comfortably below the Bank of England's target of 2%.
However consumers should take this information with a pinch of salt as the "representative basket of goods and services" that the ONS uses to calculate inflation in the UK is no longer representative of what households are currently spending on.
This means that in reality households may actually be facing even more financial pressure than it initially appears, as not only are incomes reduced but also their costs are increasing by more than official figures indicate.
09:58
Inflation plunges to four-year low as fuel costs nosedive
UK inflation has plunged to its lowest level for nearly four years last month as fuel costs nosedive - but toys, puzzles and alcohol are getting more expensive as families get used to coronavirus lockdown.
Official figures showed the CPI measure tumbled by more than expected to 0.8 per cent last month - the lowest level since August 2016 and down from 1.5 per cent in March.
Inflation plunges to four-year low as fuel costs nosedive
Official figures showed the CPI measure tumbled by more than expected to 0.8 per cent last month - the lowest level since August 2016 and down from 1.5 per cent in March.
Mail Online
09:42
Markets are down in most places
Russ Mould, investment director at AJ Bell, comments on the markets:
After a flurry of optimism in recent sessions, investors were struggling to keep their hopes up about a rapid return to normal life. Wednesday saw stocks fall across many markets including a 0.6% decline in the FTSE 100 to 5,964, weighed down by weakness in banking, insurance and consumer cyclical stocks.
Hopes about a possible coronavirus vaccine were dampened by a scientific report which cast doubt over Moderna's drug candidate. Markets had previously rallied on hype around the potential treatment. European markets fell by up to 1.3% while there was a mixed performance in Asia.
Hong Kong's Hang Seng index slipped 0.1% while Japan's Nikkei index advanced 0.8% thanks to strong gains from the energy and healthcare sectors, with the top riser being a 16% rally from electronics maker Furukawa Electric on reported better than expected results. The pound fell 0.15% against the US dollar to $1.2232 while the gold price nudged up 0.2% to $1,747 per ounce.
09:17
M&S 'has clearly adapted well to changing market dynamics'
Joe Healey, Investment Research Analyst at The Share Centre comments on what M&S's results means for investors:
Despite the tough year, where I believe investors will be taking optimism looking forward is on the food side. The acquisition of 50% of Ocado Retail is a valuable investment in online grocery and has the potential to transform M&S' growth potential in this segment. We all know, particularly throughout this virus, how critical the shift to online has been for consumers, so this could be the boost it needed to start materially transforming the way consumers shop.
All in all, I think investors will be satisfied with the results today. The business has clearly adapted well to changing market dynamics, for example their online delivery exposure which has helped mitigate the negative effects of the crisis. Trading has remained relatively solid, meaning the Group exceeded their Covid-19 scenario cash-flow projection by £150m and the Group continue to evolve both product lines and innovations at a matching pace to societal needs. We do not currently have a view on the stock but it is clear that there a few more obstacles for the Group to navigate.
09:13
Which goods and services fell in price last month?
Goods and services that fell in price between March and April:
Gas: -3.5%
Water supply: -1.7%
Sewage collection: -4.6%
Petrol (per litre): -10.4%
Diesel (per litre): -7.8%
Books: -14.3%
Food: -0.1%
09:07
Airlines and travel stocks among the biggest fallers this morning
Michael Hewson, Chief Market Analyst at CMC Markets UK, comments on the markets this morning following doubts over a potential Coid-19 vaccine:
Despite getting an early week boost from Fed chair Jay Powell's 60 minutes comments at the weekend, that the Fed had plenty of additional tools to support markets in its toolbox, stock markets found further progress rather limited yesterday as doubts resurfaced about the prospects of a Covid-19 vaccine coming to market quickly.
Nagging doubts about the efficacy of reports around recent trials of Moderna's potential vaccine saw momentum subside as profit taking started to kick in, as US markets slipped back, while Asia markets were more mixed. This is likely to be a persistent problem in the days and weeks ahead, as sentiment ebbs and flows, according to the fortunes of clinical trials and tests, as economies struggle back to their feet, as lockdown measures are gradually eased.
As such markets here in Europe have seen a similarly cautious open with the FTSE100 opening lower and below the 6,000 level after closing above it for two days in succession. The biggest decliners have once again been the airline and travel stocks and this is likely to be a familiar theme as the pros and cons over vaccine progress drag their share prices around.
08:48
'The markets got overly excited about Morderna's covid-19 vaccine'
Connor Campbell, financial analyst at Spreadex, comments on the morning's markets:
Unwilling to learn from past mistakes, the markets got overly excited about Morderna's covid-19 vaccine, only for the Dow Jones's optimism to be somewhat punctured on Tuesday night.
A report from Boston Globe Media's STAT news cast doubt on the success of Morderna's vaccine trials, not because they necessarily were a failure, but because the company failed to provide the ‘critical information' to allow the rest of the scientific community to assess the vaccine's efficacy.
This tamping down of expectations caused the Dow to drop close to 400 points on Tuesday, just less than half of the 1000-point growth seen on Monday.
The Dow's decline fed into the European session, contributing to the smattering of losses seen after the bell. The FTSE slipped under 6000 following a 0.4% decline, while the DAX and CAC were down 0.6% and 0.7% respectively.
08:47
Covid crisis 'has only made matters worse' for M&S
Alasdair Ronald of Brewin Dolphin, comments on M&S's new results:
Marks and Spencer did not have its troubles to seek prior to the outbreak of Covid-19, and the crisis has only made matters worse. As expected, profits have fallen significantly and there are signs that the lockdown period has taken a heavy toll on its clothing & home and international divisions, which appear to be structurally challenged. Of particular concern are the levels of clothing & home stock, along with committed forward orders of £560 million.
The better news is in food, where the early indications are that the deal with Ocado Retail is already bearing fruit; albeit, this is tempered by expectations of a £400 million fall in revenue. Management appears to acknowledge the seismic changes it now faces, implementing a substantial cost-cutting programme and re-balancing the overall business. These moves, combined with greater liquidity headroom, may help stabilise Marks and Spencer through one of the most challenging periods in its history, but there are likely to be more bumps in the road ahead.
08:44
Rolls-Royce will cut 9,000 aerospace jobs to save £1.3billion
Aerospace giant Rolls-Royce said today it plans to cut at least 9,000 jobs in the latest blow to the aviation industry as it continues to be hammered by the coronavirus crisis.
The Derby-based manufacturer, which has 52,000 employees worldwide, said it had been forced to conduct a 'major reorganisation' of the business to adapt to a fall in demand for its engines as planes remain grounded.
Rolls-Royce will cut 9,000 aerospace jobs to save £1.3billion
The job losses would mostly take place in its civil aerospace business, the British company said, as it started consultations with unions.
Mail Online
08:42
The FTSE 100 is down 0.5% at 5,972
While the FTSE 250 is down 0.6% at 16,225.
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