CHELTENHAM FESTIVAL: OUR MAN IN THE KNOW PICKS HIS FAVOURITE FLUTTERS P30–33 BUSINESS WITH PERSONALITY TUESDAY 10 MARCH 2020 ISSUE 3,573 CITYAM.COM FREE OILFUELONTHEFIRE WAR DOUBLES THE TROUBLE FOR VIRUS-WARY GLOBAL MARKETS MOEX FTSE 100 3.45% 7.69% NASDAQ DAX 7.94% DOW S&P500 7.29% IBEX JONES SSE CAC 40 MIB NIKKEI 7.59% 7.96% 3.01% 7.74% 8.39% 5.07% 11.17% HANG NSE ASI BSE SENG IPC SENSEX 2.41% 4.23% 2.26% NSE 20 5.17% 0.77% BOVESPA JSE ASX 9.84% 6.57% 7.33% HARRY ROBERTSON total of £125bn off the In Europe, the continent-wide storm that gathered over markets markets,” said Deutsche Bank analyst value of the UK’s biggest Stoxx 600 plummeted 7.4 per yesterday, in which traders already Jim Reid. Yet, he added the combination @harrygrobertson companies. cent. In trading terms, that put it nervous about the economic hit from of coronavirus and oil prices “has done MARKETS around the world endured an Meanwhile Wall Street in bear territory — a fall of 20 per coronavirus were shocked by Saudi that and deserves its own place in the equity sell-off not seen since the last staggered so heavily after trading cent since recent highs. France’s Arabia’s decision to ramp up oil history books”. global recession yesterday after a crash opened that it triggered an automatic Cac 40 index tumbled 8.4 per cent while production and launch a price war Fear of a global recession caused by a in oil prices exacerbated fears of the cutout system — put in place to avoid Germany’s Dax slid 7.9 per cent. with Russia. simultaneous shock to both supply and economic impact of coronavirus and stock market collapses — which paused In an unprecedented move last night, The move came after Opec failed to demand also drove the sell-off. Analysts caused panic to set in on trading floors. selling for 15 minutes. Italy’s Prime Minister Giuseppe Conte agree on a supply cut to stabilise the oil at the UN predicted the fall could depress Both the US and the UK were hit by The ceasefire did little to calm traders announced the country’s existing market. Brent crude plunged as much as growth to below 2.5 per cent this year. their biggest one-day falls since the 2008 with the S&P 500 ending 7.6 per cent quarantine zone would be extended to 30 per cent yesterday in the biggest price financial crisis, as the UK’s FTSE 100 lower last night, while the Dow Jones the whole country, affecting 60m people. drop since 1991’s Gulf War. £ CONTINUES ON P5 slumped 7.7 per cent. The rout wiped a finished down 7.7 per cent. The carnage was the result of a perfect “It takes a lot to stun you in financial £ VIRUS LATEST: P4 & P10 FTSE 100▼5,965.77 -496.78 FTSE 250▼17,547.15 -1,199.36 DOW▼23,851.02 -2,013.76 NASDAQ▼7,950.68 -624.94 £/$▲1.313 +0.012 £/€▼1.145 -0.005 €/$▲1.147 +0.015 04 NEWS TUESDAY 10 MARCH 2020 CITYAM.COM GLOBAL MARKET TURMOIL SHALL WE JUST TURN THE MARKETS OFF AND ON AGAIN? Wall Street traders try to navigate a sea of red on their terminals THE CITY VIEW Government bides its time as markets panic HEN sorrows come, they come not single spies but in battalions. Global markets were already nervous about Wthe looming consequences of the coronavirus pandemic, so Saudi Arabia’s declaration of an oil price war obliterated what little confidence remained on trading floors around the globe. Oil prices had already fallen as the virus took a bite out of demand. It was in that context, and for that reason, that members of the Opec Plus group of oil producing nations met in Vienna at the end of last week. Instead of inking a deal to cut oil output, relations between Russia and Saudi Arabia descended into acrimony, with the former refusing to countenance a reduction in supply and the latter’s reaction (flooding the market) triggering the biggest global crash since YESTERDAY marked a historic day on Wall Street as a plunge in US markets triggered a 15-minute trading halt in stocks. The S&P 2008. To coronavirus fears, markets can now add bitter 500 fell more than seven per cent shortly after the morning bell, sparking an automatic “circuit breaker” to prevent further geopolitical wrangling and prolonged uncertainty to the list of damage to US’ top 30 publicly listed companies. Indices yesterday suffered their biggest one-day drop since the 2008 crisis. issues dragging down sentiment as well as valuations. In the US, Donald Trump is seeing his beloved bull run starting to splutter. His reaction yesterday was to lay the blame firmly on the Russia-Saudi spat UK health chiefs promise while maintaining his baffling At a time of position that fears of the coronavirus crisis and are being ramped up by the “fake uncertainty, news media” and his political leadership opponents. At a time of crisis and more action on the way matters uncertainty, leadership matters. Reports last night suggested that officials in Whitehall are ANGHARAD CARRICK increasingly concerned by Trump’s public statements on the government will have to advise every- time as other seasonal illnesses. body who has a minor respiratory Vallance said there are currently no virus, and it should be noted that his erratic and potentially @angharadcarrick tract infection or fever to self-isolate plans in place to ban large gatherings, highly damaging outbursts are in stark contrast to the response THE UK’s chief medical officer Chris for seven days, in order to delay the as other European countries have we’ve seen from leaders in the UK. The health secretary Matt Whitty last night warned that the epidemic. done as their coronavirus cases rise. government would soon ask people The NHS is currently screening He said: “One person in a 70,000 Hancock has appeared in command of the detail and on top of to change the way they usually live everyone in intensive care for coron- seater stadium isn’t going to infect the his brief while the Prime Minister has chosen his interventions their lives in response to coronavirus. avirus if they have symptoms, but stadium.” carefully, often flanked by the reassuring presence of the But the government for now insists Whitty said the government will Johnson added that it is “absolutely government’s chief medical officer and chief scientific adviser. that the best advice for the public is to extend this from tomorrow to include critical in managing the spread of the wash their hands. everyone who has significant pneu- virus that we make the right decisions The sense one gets from the latest appearance of this newly- The UK recorded its fifth death from monia or respiratory tract infection. at the right time”. formed trio is that we are in a waiting game. Rolling out the Covid-19 outbreak late last night, Johnson said the UK remains in Behavioural scientists have been far-reaching measures to limit the spread of the virus must be with an elderly patient at St. Helier the containment phase of the engaged by Downing Street to plot deployed at the right moment. Going too early risks missing the hospital in south London succumbing government’s plan but is making how the public might respond. to the disease. “extensive preparations” to move to On Sunday France said it was ban- target while leaving it too late would render the actions useless. Whitty said the government is plan- the delay phase. ning all gatherings of more than 1,000 As the number of confirmed cases creeps higher each day, the ning to advise anyone with showing He said that while the UK would stay people, while Italy last night extended government bides its time — like a hunter waiting for a clear symptoms that correlate with the in “the contain phase of the its quarantine to the entire country. virus to self-isolate for seven days to outbreak... watching what is happen- Following reports that consumers shot. Meanwhile it’s the markets that panic, buffeted by events delay the spread of coronavirus. ing around the world our scientists were stockpiling everything from toi- and forces beyond the control of any expert committee. Between In a press conference with the Prime believe that containment is unlikely let paper to dried pasta as the number them, government and markets will shape the future of our Minister and chief scientific adviser to work on its own.” of confirmed coronavirus cases rose economy. One appears calm, the other looks decidedly panicked. Sir Patrick Vallance, the UK’s coron- A delay would be expected to release above 300, Johnson said the govern- avirus tsar, said the advice will come pressure on the NHS, which could ment would do everything it could “to into force in the “near future”. have resource issues if a sharp spike in keep supermarkets stocked and Follow us on Twitter @cityam He said in the next 10 to 14 days the coronavirus patients hit at the same support the economy”. FINANCIAL TIMES THE TIMES THE DAILY TELEGRAPH THE WALL STREET JOURNAL TWO WOMEN APPOINTED TO WHAT THE SALMOND ‘POUNCED’ ON CHANNEL 4 NEWS BOSS TO ETHIOPIA BLAMES DESIGN THE BOARD OF FACEBOOK OTHER WOMAN, COURT HEARS STEP DOWN IN ‘LIAR’ ROW AND TRAINING IN 737 CRASH Facebook has appointed Tracey Travis, Alex Salmond stripped naked and lay The Channel 4 News chief who sparked Faulty aircraft design and inadequate the chief financial officer of Estee PAPERS SAY on top of a Scottish government official an impartiality row with Number 10 by pilot-training recommendations from Lauder, and longstanding McKinsey after a dinner at the first minister’s calling Boris Johnson a “known liar” is the manufacturer led to the fatal crash executive Nancy Killefer to its board of THIS residence, a court was told.