Financial Times Europe - 27 03 2020 PDF
Preview Financial Times Europe - 27 03 2020
UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws WORLDBUSINESSNEWSPAPER FRIDAY 27 MARCH 2020 EUROPE Coronavirus: the 3 Higher public debt levels should be the norm — MARIO DRAGHI, PAGE 17 3 The global hunt for a coronavirus drug — BIG READ, PAGE 15 economic cure 3 Trump’s response to the pandemic is hurting the US —EDWARD LUCE, PAGE 3 Working from home World leaders Jobless claims Briefing on screen to discuss economy threat iChinabansforeignersovervirusfears surge to 3.3m Beijinghassaiditwilltemporarilysuspendvisits fromalmostallforeignersamidfearsthose returningafterthecountryeaseditstravelcurbs weresparkingasecondwaveofviruscases. —PAGE2 record in US iVWurgesECBtobuycommercialpaper ThebiggestcarmakertoldtheFTthatthecentral bankshouldsend“clearsignals”andbuythepaper, short-termdebtthatoftenmaturesinaslittleassix orninemonths,“assoonaspossible”. —PAGE6 iTrumppushedtousewartimelaw 3 First picture of coronavirus damage Anactunderwhichhecancompelthemanufacture ofcertaingoodshastakencentrestageascritics 3 Weekly total dwarfs 1.7m expected accuseDonaldTrumpofnotdoingenoughinthe virusfight. —PAGE3;EDITORIALCOMMENT,PAGE16 BRENDANGREELEY—WASHINGTON healthcare and social assistance. iWallenbergwarnsoflostgeneration MAMTABADKARAND “It’s just disastrous on so many SwedishindustrialistJacob COLBYSMITH—NEWYORK levels,”saidTorstenSlok,chiefecono- Wallenberghaswarnedthat Morethan3mAmericansfiledaclaim mistatDeutscheBankSecurities.The governmentsriskdepression forunemploymentbenefitslastweek,a claimsdatashowthecost-cuttingthat andsocialunrestunlessthey record high that offers the first companiesaredoingalreadyhasserious weightheeconomicthreatof nationwidepictureofthedamageto consequences,bothforgrowthandfor thevirusmoreheavily. —PAGE8 theUSeconomyfromthecoronavirus thelabourmarket,headded. shutdown. Itisbyfarthelargestsingle-weekrise iPensionerstofundPutinpackage According to data released by the in unemployment claims since the MeasuresintroducedbytheRussianpresidentto labour department yesterday, claims departmentbeganpublishingrecordsin softentheeconomicblowofthecoronavirus roseto3.3mfortheweekendingSatur- 1967. The previous one-week highs pandemicwillbepartlyfundedbyalevyonbank day,from282,000thepreviousweek. cameinOctober1982,at695,000,and deposits,tappingmiddle-classnesteggs. —PAGE3 Thedataeclipsedconsensusexpecta- March2009,at665,000. tionsof1.7m,showingthestaggering “This is an impossible-to- iCataloniaandMadridclashovercurbs scaleofjoblossesinthefirstfullweekof comprehendnumber.Wejustwipedout AbigsurgeofcoronaviruscasesinCataloniahas claimssincecitiesandstatesbeganto ayear-and-a-halfofjobgrowth,”said increasedtensionbetweenthenorth-easternregion restrictpublicgatheringsand,insome Martha Gimbel, an economist at andtheSpanishgovernment,whichisbeingpushed cases,orderresidentstostayhome. SchmidtFutures.“Themostimportant toshutdownalmosttheentireeconomy. —PAGE4 “Nearlyeverystateprovidingcom- thing to remember is that this is an mentscitedtheCovid-19virusimpacts,” undercountofpeoplesuffering.” iOrangejuicepipsothercommodities thelabourdepartmentsaid.Hotelsand Theclaimsdataonlyreflectpeople Frozenconcentratedorangejuice,tradedinNew restaurantshadbeenhitparticularly able to apply for an unemployment York,hasbeenthebestperformingcommoditythis hard,statessaid,aswellasentertain- insurancebenefit.Othersmaynotqual- year,accordingtoBloombergdata,rising25per ment, transportation, manufacturing, ify,hadhourscutorcouldnotgetinto centto$1.214apoundsinceJanuary. —PAGE10 statesystemswhenlabouragencyweb- US jobless claims sites crashed. Economists at Oxford Economicshavepredicted15mto20m Datawatch Initial unemployment claims joblossesincomingweeks. (weekly data, 000s) TheUSunemploymentratehadbeen 3,000 at3.5percentpriortotheoutbreak,a Changing habits Priortothe half-century low. Mr Slok said this %of respondents announcementof 2,500 week’sjoblossesalonecouldadd2per- Mar 13 2020 Mar 23 anenforced centagepoints. lockdowninthe 2,000 InaninterviewwithNBCyesterday, Washing hands UK,onlyhalfof Staying at home Britonswere 1,500 Jay Powell, chairman of the Federal Working from home followingofficial Reserve,saidtheUS“maywell”bein Online banking advicetostayat 1,000 recessionalready. Online groceries home.About 500 MohamedEl-Erian,chiefeconomic Using an online GP three-quarters adviseratAllianz,saidthejobsdata Ordering takeaway arewashingtheir 0 highlighted“theferocityofthesudden Wearing surgical handsmore 1967 80 90 2000 10 20 stophittingtheUSeconomy”. LeadersoftheG20majoreconomiesholdanonlinesummittodiscussthecoronaviruscrisis masks0 20 40 60 80 asaresultof “We’relivingthroughageneration- yesterdayReports,Pages2-4;Corporateimpact,Pages6-9;Markets,Pages10-11;BigRead,Page15; Source: Ipsos Mori coronavirusfears Source: Refinitiv definingmoment,”headded. EditorialComment,Page16;Opinion,Page17;Lex,Page18 —GaryRamage/AFPviaGetty UK banks call for house sale freeze as credit and virus fears hamper moves JAMESPICKFORDAND ble,delaymovinghomewhileemer- least40percentofthevalueofthe NICHOLASMEGAW—LONDON gency measures are in place to fight property. Banksarepressingforafullsuspension coronavirus.Ifmovingisunavoidable Barclays told brokers it would no of the housing market after the UK for contractual reasons, people must longeroffermortgagesforcustomers government told buyers and sellers follow advice on social distancing to whodidnothaveadepositofatleast InfectionsravageItalian todelaytransactionsbecauseofthe minimisethespreadofthevirus.” 40percent,butitwouldcontinueto doctorsandhospitals coronavirusoutbreak. UKFinance,theindustrybody,has offerremortgagingdeals.Bankerswere writtentolenderssayingitisseeking keentopointoutthatthewithdrawalof AnalysisiPAGE4 Intalksbetweenlendersandministers, “urgentclarification”overthefutureof mortgageproductsdidnotsignalthey banks have expressed concern about the market, “particularly as physical wererunningshortoffinancing,ashap- the impact of the pandemic on valua- propertyvaluationsarenolongerpossi- penedin2008whenmarketsfroze. Austria €3.90 Malta €3.70 tions.Theyarealsoconcernedabout ble”.Anumberofbanksandspecialist DavidHollingworth,directoratbro- Bahrain Din1.8 Morocco Dh45 Belgium €3.90 Netherlands €3.90 grantingcreditwhentheeconomyisin lendershavealreadywithdrawnnew kerL&CMortgages,saidlenderswere Bulgaria Lev7.50 Norway NKr40 Croatia Kn29 Oman OR1.60 freefall,accordingtoseniorbankers. mortgagestofocusonexistingcustom- movingtocuttheflowofnewbusiness Cyprus €3.70 Pakistan Rupee350 Thebankshavetoldministersithas ersandreducepressureoncallcentres astheydealtwiththousandsofrequests CzechRep Kc105 Poland Zl20 Denmark DKr38 Portugal €3.70 becomeimpossibletosurveyproper- thatarelowonstaff. formortgagepaymentdelays.“Thepur- Egypt E£45 Qatar QR15 Finland €4.70 Romania Ron17 ties,accordingtopeoplebriefedonthe LloydsBankingGroupandBarclays, chase market will effectively go into France €3.90 Russia €5.00 discussions.Bankcallcentreshavealso twooftheUK’sbiggestlenders,aretem- coldstorage,”hesaid.“You’rejustnot Germany €3.90 Serbia NewD420 Gibraltar £2.90 SlovakRep €3.70 been inundated with anxious home- porarily pulling many of their mort- abletogooutandbuyahouseevenifthe Greece €3.70 Slovenia €3.70 Hungary Ft1200 Spain €3.70 ownersseekingmortgageholidays. gages.Lloydshasstoppedofferingmort- vendorwantedyoutocomearound.” India Rup220 Sweden SKr39 Agovernmentspokesmansaidbuy- gagesorremortgagesthroughbrokers AdditionalreportingbyJimPickardand Italy €3.70 Switzerland SFr6.20 Latvia €6.99 Tunisia Din7.50 ersandrenters“should,asfaraspossi- unlessthecustomerhasadepositofat StephenMorris Lithuania €4.30 Turkey TL19 Luxembourg €3.90 UAE Dh20.00 NorthMacedonia Den220 World Markets SubscribeInprintandonline STOCK MARKETS CURRENCIES INTEREST RATES www.ft.com/subscribetoday email:[email protected] Mar 26 prev %chg Mar 26 prev Mar 26 prev price yield chg Tel:+442077756000 S&P 500 2593.48 2475.56 4.76 $ per € 1.083 1.083 £ per $ 0.850 0.850 US Gov 10 yr 0.81 -0.01 Fax:+442078733428 Nasdaq Composite 7675.52 7384.30 3.94 $ per £ 1.176 1.176 € per £ 1.086 1.086 UK Gov 10 yr 0.40 -0.05 Dow Jones Ind 22377.56 21200.55 5.55 £ per € 0.921 0.921 ¥ per € 120.712 120.712 Ger Gov 10 yr 102.91 -0.37 -0.10 ©THEFINANCIALTIMESLTD2020 FTSEurofirst 300 1265.16 1235.83 2.37 ¥ per $ 111.435 111.435 £ index 74.497 74.742 Jpn Gov 10 yr 0.00 -0.03 No:40,359★ Euro Stoxx 50 2829.80 2800.14 1.06 ¥ per £ 131.048 131.048 SFr per £ 1.150 1.150 US Gov 30 yr 130.32 1.37 0.02 FTSE 100 5815.73 5688.20 2.24 SFr per € 1.060 1.060 Ger Gov 2 yr 105.17 -0.66 -0.05 PrintedinLondon,Liverpool,Glasgow,Dublin, FTSE All-Share 3179.75 3102.98 2.47 € per $ 0.923 0.923 Frankfurt,Milan,Madrid,NewYork,Chicago,San CAC 40 4543.58 4432.29 2.51 Francisco,Orlando,Tokyo,HongKong,Singapore, Seoul,Dubai,Doha Xetra Dax 10000.96 9874.26 1.28 COMMODITIES price prev chg Nikkei 18664.60 19546.63 -4.51 Fed Funds Eff 1.58 1.55 0.03 Hang Seng 23352.34 23527.19 -0.74 Mar 26 prev %chg US 3m Bills 0.00 0.01 -0.01 MSCI World $ 1785.99 1742.61 2.49 Oil WTI $ 22.81 24.49 -6.86 Euro Libor 3m -0.31 -0.32 0.01 MSCI EM $ 836.54 801.66 4.35 Oil Brent $ 26.38 27.39 -3.69 UK 3m 0.55 0.54 0.01 MSCI ACWI $ 427.57 416.27 2.71 Gold $ 1605.45 1605.75 -0.02 Prices are latest for edition Data provided by Morningstar MARCH 27 2020 Section:FrontBack Time: 26/3/2020 - 19:06 User: simon.roberts Page Name: 1FRONT USA, Part,Page,Edition: EUR, 1, 1 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws 2 ★ FINANCIAL TIMES Friday27March2020 CORONAVIRUS Travel curbs CORONAVIRUS China to bar most foreign nationals ROUND-UP XicallsforconcertedG20actionto preparegroundforglobalrecovery Beijingfearslooseningof thepandemicinothercountries.Itdid tions,includingtoandfromHubeiprov- ‘What S$48.6bn($33.8bn)stimuluspackageto restrictionsmightcause notmentionwhichcountriesitbelieved ince,theoriginofthecoronavirusout- countertheeconomicfalloutfromcoro- they’re ChinacalledonG20nationsyesterdaytoremovetrade wereatfault. break. navirus. secondwaveofinfections barriersandcuttariffstohelptheglobaleconomy Beijingtoldagroupofglobalhealth TheChinesefigures,whichincludean startingto Alongwiththemeasuresintroduced recoverfromthepandemic. officialsthisweekithadbeenforcedto official tally of 81,285 cases, do not inFebruary,theprogrammeannounced seeas “G20nationsshouldadoptjointmeasures . . . tosend rethinkpoliciesafterthemoderationof includepositivetestsofpeoplewhodo yesterdaytakestheoverallreliefplanto CHRISTIANSHEPHERD—BEIJING asignalthatwillboostmoraleforaglobaleconomic STEFANIAPALMA—SINGAPORE itslockdowntriggeredaninfluxofover- notexhibitsymptoms,castingdoubton they’re S$55bnandisaimedatprotectingjobs recovery,”PresidentXiJinpingtoldavideosummitof Beijingsaiditwouldtemporarilysus- seastravellerswhomaybecarryingthe someofitsdata. andsupportingbusinesses. relaxingthe thegrouping,theCCTVstatebroadcasterreported. pend visits from almost all foreign virus, according to Anthony Fauci, a Still,Beijing’smovetobanforeigners “Wearefacinganunprecedentedcri- Chinawoulddomoretosupporttheprovisionof nationals amid mounting fears that memberoftheWhiteHouse’scoronavi- returningtoChinaraisesconcernsthe constraints sisofahighlycomplexnature,”said essentialgoods,thepresidentwasreportedassaying. thosereturningtoChinaafterthecoun- rustaskforce. globallockdownmaynotbesufficientto HengSweeKeat,ministeroffinanceand ontravel,is try eased its travel restrictions were “OurChinesecolleaguesareverycon- snuffouttheoutbreaksinceitthreatens deputyprimeminister.“Ineconomic sparkingasecondwaveofcases. cerned,”saidMrFauci,whosaidthe toflareuponcerestrictionsarelifted. thatthey’re termsalone,thiswilllikelybetheworst The new measures, announced by fearswereraisedonacallorganisedby PresidentDonaldTrumphasexpressed contractionsinceindependence.” Russia’sGazpromquarantines20 getting China’s foreign ministry yesterday, theWorldHealthOrganization.“They hopeofendinglockdownsintheUSby Asurgeinimportedcasesfromwest- workersatBovanenkovogasfield wouldprevententrybyalmostallhold- havevery,veryfew[new]cases,but Easter.Chinasaidthat,otherthanthe imported erncountrieshasmorethandoubled ersofvisasandresidencepermitsstart- whatthey’restartingtoseeasthey’re exemptionfordiplomats,thoseseeking thenumberofpatientsinSingaporeto cases’ ingonSaturday.Asmallnumberofdip- relaxingtheconstraintsontravelisthat exemptions — including people who 631overthepastweek. RussiangasproducerGazpromhasquarantined20 lomaticvisaholderswouldbeexempt, they’regettingimportedcases.” need to come to China for urgent Theislandnationplanstofinancethe employees at a gasfield that provides supplies to theministrysaid. Lastweek,Chinaforthefirsttime humanitarianreasons—mustapplyfor schemewithcurrentandpastreserves. Europe,afterworkersshowedsymptomsofcoronavi- In its announcement, the ministry reportedithadrecordednonewCov- awaiverinadvance. HalimahYacob,Singapore’spresident, rusfollowingcontactwithaninfectedperson. saidithad“noalternative”tothenew id-19casesfromlocaltransmissionsand Singapore,whichisalsofightingasec- said:““Ourcurrentcrisisisunparalleled GazpromsaidproductionatthemassiveBovanenk- restrictiongiventhemixedresponseto beganeasingitsinternaltravelrestric- ondwaveofinfections,istounleasha inmodernhistory.” ovofield,whichsuppliestheNordStreampipeline,was continuingasnormal.Theworkerswereisolatedafter comingintocontactwithapersoncarryingtheviruson aflightfromMoscow10daysago. Downturn. Struggling industries Ireland reels from mounting job losses Airbnbplatformtohelphealthcare stafffindfreeaccommodation Fullemploymentrecorded onlylastmonthbutcountry nowfacesseveredecline ARTHURBEESLEY—DUBLIN DELPHINESTRAUSS—LONDON WhentheIrisheconomyhittherocksin thefinancialcrisismorethanadecade ago,JimLahifffelt“reallylucky”tokeep Airbnbhaslaunchedaplatformtolinkmedicalstaffand thehotelnightporterjobhehasheld charityworkershelpingwiththecoronavirusoutbreakto since1984. freeaccommodationprovidedbyhostsaroundtheworld. Butanyillusionhecouldrideoutthe coronavirus pandemic was shattered when the hotel in the south-eastern townofWexfordshutlastFriday. PartiestocivilwarinYemenagree “Inthecrashwetookapaycutandwe ceasefireafterappealfromUNchief managedtogetthroughitwithoutbeing laidoff,”saidMrLahiff. Butthecoronavirusdownturnwasas WarringpartiesinYemenhaveagreedtoaceasefirein abruptasitwassevere.Manyworkers anefforttoprotecttheconflict-ravagedcountryfrom wouldstruggletogetbyonaweekly thethreatofcoronavirus. welfarepaymentfromthegovernment, OnthefifthanniversaryoftheSaudi-ledcoalition’s headded.“It’snotsubstantialenough interventionintheimpoverishednation’scivilwar,the foralotofpeople,especiallywithfami- rebelHouthimovementandtheoustedgovernment lies.It’sjustnotgoingtocutit.” agreed late on Wednesday to a call from António MrLahiff’sexperienceechoesthatof Guterres,theUNsecretary-general,foranimmediate hundredsofthousandsofworkersin cessationofhostilities. Ireland,stillrecoveringfromthe2008 global financial crisis, and millions moreworldwide. Littlecheer: scheme, which subsidises wages for Under a job protection scheme Dalata,thecountry’sbiggesthotelgroup Withsocialdistancingmeasureshit- aboarded-up workerswhowouldotherwiselosetheir unveiled this week, the government whichhas44sitesinIrelandandthe SaudishalttalkswithPakistan tingsomeofthemostlabour-intensive, andtemporarily jobs,comparedwith1.4mattheheight couldpay70percentofwagesinprivate UK.JustamonthagoPatMcCann,chief onnumberofpilgrimstoMecca low-wage parts of the service sector shutpubin ofthepost-crisisrecession. companieshitbythepandemic.The executiveandfounder,saidtherehad hardest,economistspredictadramatic Dublin.Some Only last month, Ireland was in full proposal, the government estimates, been“nomaterialimpact”onitsbusi- surgeinglobalunemployment. 50,000barjobs employmentwitha4.8percentjobless couldcost€3.7bninthenext12weeks. nessfromCovid-19.NowMrMcCann SaudiArabiahashalteddiscussionswithIslamabadon KristalinaGeorgieva,IMFmanaging werelostwhen rateandanestimated2.36mpeopleat “We’ve had a tsunami of temporary haslaidoff“inoraroundhalf”ofthe thenumberofPakistanipilgrimspermittedtoperform director,warnedthisweektheworld thegovernment work. Now it faces the elimination lay-offssincethisbeganand...it’sonly 5,000workersinthebusiness.“Unfor- theannualHajjpilgrimagetoMeccainAugust,amid facedarecession“atleastasbadasdur- closedpubs withinweeksofasmanyjobsaswere goingtogetworse,”saidJohnDouglas, tunately we’ve had to let a sizeable concernsoverthevirus. ingtheglobalfinancialcrisisorworse”. PaulFaith/AFP/Getty gainedoverseveralyearsintherebound headoftheMandateunionforretailand numberofpeoplego,”hesaid.“Every- AseniorPakistanigovernmentofficialyesterdaytold Intheworst-casescenarioputforward fromthelastcrisis. barstaff. thingwasrelativelyOKuntilItalygot theFTSaudiauthoritieshadsaid:“We[theSaudigov- bytheInternationalLabourOrganiza- “Ireland created about 330,000 jobs In struggling industries that just hit.Thenwecouldseetheverysudden ernment]areinnoshapetohaveaformalagreement tion,nearly25mpeoplegloballycould overthelastfiveyears.Someofour aboutsurvivedthelastcrash,thelosses declinealmostovernight.” withyou[Pakistan]asconditionsaresouncertaindue losetheirjobs.Thatcompareswith22m early estimates suggest that between havebeenimmediate.PaulFitzpatrick, TimHerlihy,ahousemanagerina tothecoronavirus.” joblossesduringacrisisin2008,which 250,000and350,000peoplewouldfind ajournalistatacountyCavanregional hotelinthesoutherncityofCork,was unfoldedoveramuchlongerperiod. themselvesoutofworkasaresultofthe newspaperpublishedsince1846,was putonathree-dayweekafterasharp Joblossesarematerialisingatspeed. Covidoutbreak,”saidNeilGibson,econ- laidofflastweek.“Ithoughtitwouldbe declineinbusiness.“Withinoneweek Casessofar The US labour department revealed omistatEYIreland. tightbutnotthis,”hesaid. thewholethingfellapart...Youcan’t yesterdaythatmorethan3mAmeri- Coronavirus job losses have multi- “Thecompanyhasdonewelltomain- blametheemployer,”hesaid. 510,108 cansfiledaclaimforunemployment pliedatadizzyingrate:20,000private tainourjobsovertheyears.Theindus- “I’llhavetogointothebanklooking benefitslastweek,arecordhigh.Inthe childcarejobswerelostwhenthegov- tryhasbeenstruggling,especiallylocal foramortgagebreak.I’llhavetosignon and22,993deathsasat17.26GMT,March26 previousweek,thenumberofclaims ernmentclosedschools;50,000barjobs papers,forsolongthatyoukindofget tothesocialwelfareforthefirsttimein Source:JohnsHopkinsUniversity totalled282,000. whenpubsshut;70,000restaurantjobs immunetoit.Wethoughtwewereover 38yearsandwe’llhavetowatchwhat Readmoreatft.com/coronavirus Germany expects 2.4m people to intheclosureofthatsectorthisweek.A theworstofit.” we’re buying week to week until we drawonstatefundsunderitsKurzarbeit further200,000retaillossesarefeared. The downturn came as a shock to comeouttheotherside.” European Commission MAKE A SMART INVESTMENT Von der Leyen accuses EU states of ‘looking out for themselves’ Subscribe to the FT today at FT.com/subscription MARTINARNOLD—FRANKFURT Hercriticismunderscoresthepres- riskthattheECBfaceslegalrisksanda it was considering lifting the limits, TTpeorclihtuictmiatlaFrnRipIsDsAkYn—3ve1eMGsAdIRLCLttHIoA2h0Nm17TeiEnTiVmT,PiasAeGlEl1e3y AItthaelyFp’soipvoorep—uBSlIiGstWtRsaEOAaRrDrL,eDPpAtBGrUlyEaSi1In1NngES?tSoNwEWooSPAPER DMleUtaKtey£e2’.rs7a0—CfhirarRnsnOeDtlBIssElatnRdoaTs£b3Sn.0Ha0;RtR.eI.ptM.uhbSliecLoEfbIYrer,laePndAa€Gk3.0E-0u12p European Commission president sourrdeinfoarteEuacrotipoenanacgroovsesrnamneunmtsbteorcoo-f phoelaitdidcaeldbtahcaktliats“hstdroenwgnththenesrtohaedE.”CBBu’st wpohsieledaimnomtheedriamteolyreradiosvinisghthgeroliumpiptsroto- FBLSTwATeLlETwemoueeeexrdwwtaIlllttnebv:::ewwectcdNs+++eaekru..cofesra444retrttn.sxd444.neAiiciepvssdtEoH222cieo@timnC000-tiNooaaotgf47/uht77npprsM.@s7c88eCsuppeo777boo&fe9,m533tisIidB1.nnccC644iATFtortt0u90mi.rmombi0s00rdeLete900anotn,oytmatfsSwTFwJAdmslamnMcsihBiBccsTBbdctclwhrtteHcbb33©NPFCTdneinoioAuaraioauhrhoosdeosttCaAadftUTSwoeuorkearrmhwaoTnoiuhakoisohieainncAPHTSacltlrTMtwmhmievtsecemnscntetmreoss:etpd:eSylavetowghtiretgronaarterhykurgbleexec0xifatheioHbaSdm3nisrElcMergengoaltpCFefceeteettopes.bmitbdciyr,ktdwmfiiueuc89eieSBhgmeootteohsnrsltrlEHtmthahttg.nntas3utbohilruece,rtisss,0l.feiiraiud2rnR4Ctnfecehtpapgttmeso0cBacryaSepp.eialnaonarii,ecedperFawi0“tobsho82sofnenbete3fetyaLBpruUUdrudeLotp0ctdrlweusftlinfievgIageoMhneugantmecaom05areuaoerpNIo25vtsshmttvtaiSStiiumdtlMstTdrineodW.eiaobodcroKirFnnnginbteu9ohl1nduet3inE/ct★osananaAt-ptledonaZesterksoaeosgr,gmusaue9rhM28nawnssgBvpa.rioyldttqlonUentrtunceeMkhpNwunemQcoeladc,n0asreonaelawgh—usdaoilgfiirneb4tnalufbeasoala,nckettbisncnnm,eacCwtycli&nea1we,vP,oraeedltie7peexIrLslyhsnchtleiibtreosSi3uookdtMoa,dgxaIoseeWlnoe.rR0nvcaihAsoscdiciuoreaBhiA&vD,nedeasErctnlynttsnciosriiryoirhacr.hvenfaedl8beaeclndaenrhHsgthettopnegrCtinao,uL$gieatlseUCapdribuetspcasphlythsrWoieensaicmssspndeewtIs.me3usnDnecurntombttdorettutTtpl,Tp,uhrbcomoheneexHDay3cheralddoalhnMrninktdodmsooEaIohoSesBaalbasfiuIsudapaobuadiaaetnporleesacoeMhlceauaruMtRcsonbeaHepurne,lniatrlrh”srnnetvcndsgomsiioldwheweaGocrU,atoDandrtmlfacEs.waoe,etsphAEmndtqcrSsioedtdamRrdtuarglasri.taennoicnlneonsogamsBxoutKULentd.hfSedeutritioinutbeiunssdhCnoopeosvoicdbTom,snhdLraicrtsrfrrsoge.ointfpNsotLiuedeslnbteurdoraoceirinraehioeomhhtfanEnlnbTibotcesrteegtitassetyr,eeDnlJwsWliomoeatoeinhmtwondadgDhtpaeoeSDsaxifeDrhseeidCsttm,hdsoeuplydl—vhnofsinnpuMeotresoDtohloedIerLhp,YotemCTchdwuTsren—telorbruieceeOt2rrwifheneudouekttidoreoteeorhieaaOosoiuettevn0ibisrlrrrxpiiiuleaifitsunmrifPnscatkumolfiansstgateennloyReeeeaiapbBbu1epnicgirhmei,rAlhtcynyvrdnargnrgsopd7ddsawtsxosoayhyhereqers,IpGetehdaefssielhrotpf.hery6eijttloaodrnpcioraEt,uttttotfeteTulono’EBtdnU0aeeos,hleleotittnaaeltwmrilc8hotbisobbehhgvrlUaummmarltmriaactraKte’nendyndaeoeeeeseeessstttt-e,.lswpisc,lEPJmataittfctvsccTSactHCtcbomdlaEomopJcTApbSSNDFEFFCXNHFLAaarntsbiieauWCl@vinnnoheorehiiTTTTu&TatEtPeeoaoheAhpndcAcannaifocdruuneiraehDsUiiamohukaMaSSSSLermtOmtcPubedifHHInssSNcegecuCamohcwhmheMpedjnaalUkmoiridatckrgEEEEtnedno,ffeSc 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rapsCtaactbmoaiieobfsfoooodrtaTWmsnoewuuneeyedhausrrnrseotfhetcett-irrdviifnhipt.taitloolenhiuaueUibfcmrwsnetryoapilJiiiancctiuconuttrtiaishsegsossmnnnynatcpt2rwagtbihasthudr0ocl”reoeteyaelor1acoerne’tll8useolplfailidymrbeougbescrr,enoanoicrtupoiitqsnvtogttgelntusuieenkrsdfoaneirraodiao’fmsrbcgntmriomnihdhirymntfnoebeemahytigtnemeethstahrdaneighetweetnaeenhtselEitiwgosdadenjnh.uuGuat.mai“veiinrsrletvsmdeotesgEreitsplmofccoCfetssieioonoctgBiraabznniareea’lnneess-----ll 34204,Bagcilar-Istanbul,Tel.+902124402424. Publishedby:TheFinancialTimesLimited, Sweden:ResponsiblePublisher-ChristerNorlander felttheconsequencesoftheirownunco- decisiondetailingtheECB’slatestplan, viruscrisisunderitsPandemicEmer- tribution to ECB capital, the central BrackenHouse,1FridayStreet,LondonEC4M9BT. ordinatedaction,”shesaid. which was published on Wednesday gencyPurchaseProgramme. bankgaveitselfplentyofwriggleroom. Tel:+442078733000;Fax:+442074075700. ©CopyrightTheFinancialTimes2020. Editor:RoulaKhalaf. Reproductionofthecontentsofthisnewspaperinany Thecommissionearlierthismonth nightintheofficialjournaloftheEU. 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Lagarde,theECB’spresident,whosaid directlyfundingnationalgovernments, purchaseflowsovertime,acrossasset 153,Monza,20900,Milan.Tel.+3903928288201 www.ft.com/editorialcode Italyalsohadacallforhelpandassist- onTwitterafteritwasannouncedlast whichisagainstEUlaw. classes and among jurisdictions,” the Owner,TheFinancialTimesLimited;Rappresentantee DirettoreResponsabileinItalia:I.M.D.Srl-MarcoProvasi- ReprintsareavailableofanyFTarticlewithyour ancegounheededuntilBrusselswas week:“Therearenolimitstoourcom- Thequestionofwhethertoraisethe ECBsaidinthisweek’sdecision. ViaG.Puecher,220037PadernoDugnano(MI),Italy. companylogoorcontactdetailsinsertedifrequired forcedtostepin.Poland’sgovernment mitmenttotheeuro.” issuerlimitsdividedtheECB’sgovern- Thecentralbankalsoexpandedthe Milanon.296del08/05/08-PosteItalianeSpA-Sped.in (minimumorder100copies). Abb.Post.DL.353/2003(conv.L.27/02/2004-n.46)art.1 One-offcopyrightlicencesforreproductionofFTarticles cameunderfireforimposingastrictno- Describingthedecisionas“abomb- ingcouncillastweek.Onecampthat criteriaforeligiblesecuritiesunderthe .comma1,DCBMilano. arealsoavailable. foreignersrulethatledtothousandsof shell”,PictetWealthManagementstrat- includedtheGermanandDutchcentral new programme to securities with a Spain:BermontImpresion,AvenidadeAlemania12,CTC, Forbothservicesphone+442078734816,oremail 28821,Coslada,Madrid.LegalDepositNumber [email protected] kilometresoftailbacksonitsborders. egistFrederikDucrozetsaid:“Thereisa bankchiefsarguedagainstevensaying maturityofmorethan70days. MARCH 27 2020 Section:World Time: 26/3/2020 - 18:40 User: john.conlon Page Name: WORLD1 USA, Part,Page,Edition: EUR, 2, 1 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws Friday27March2020 ★ FINANCIAL TIMES 3 CORONAVIRUS Trump urged to use wartime act GLOBAL INSIGHT WASHINGTON to convert manufacturing output Edward Luce The wrong kind Pressure builds on president to compel private sector to prioritise government contracts of American KIRANSTACEY—WASHINGTON ANDREWEDGECLIFFE-JOHNSON exceptionalism NEWYORK RICHARDWATERS—SANFRANCISCO Alittle-usedpieceofwartimelegislation has taken centre stage in the battle betweenDonaldTrumpandcriticswho W ithin 48 hours, America’s coronavirus accuse the president of not doing infectionswillsurpassChina’stotal.The enoughtofightcoronavirus. USwillprobablyreplaceItalyasthecentre Assuppliesofequipmentsuchaspro- ofthepandemic.AtjustthemomentBrit- tectivemasksandhospitalventilators ain dropped its flirtation with “herd have run low, senior Democrats and immunity”,DonaldTrumpisembracingit. evensomeRepublicanshavecriticised ThismakesAmericaexceptionalontwocounts.First,it the president’s reluctance to use the istheonlynationwhoseleaderquestionsthetrade-off DefenseProductionAct,underwhich betweeneconomicgrowthandsavinglives.Second,Amer- hecancompelcompaniestomakecer- icaislackingaclearpolicy.Itsfederalsystemoffersamenu tainproducts. ofepidemiologicaloptions.Virusespaynoheedtodemoc- OnWednesday,100nationalsecurity racyorautocracy.Theydothriveonconfusion. expertscalledforMrTrumptousethe Covid-19hasgivenMrTrumplicencetoairalt-science actimmediately,warningtheprivate theories.Everydayheairshomegrownideasofhowto sector “lacks the ability to process defeatthedisease.Thisincludesacocktailofanti-malaria incomingrequests,prioritisethemost drugs,theimminenceofa“miracle”vaccine,predictions urgent needs and co-ordinate with theviruswillwashawaybyitself,change-of-seasonopti- other companies without more con- mismandadrip-dripofscepticismaboutsocialdistancing. certedgovernmentinvolvement”. Thesightofexpertsaroundhimismeanttoreassure. USunionsaddedtheirvoiceyester- Theirlookofstrainedreticencepromptsthoughtsofsap- day. “The administration’s current persnavigatingaminefield.MuammerGaddafiusedto piecemealeffortstoincreasethepro- stageaccompanimentslikethis.Ittakessomegettingused ductionofN95masksandventilators toinAmerica.Morethanhalfthecountrysaysitapproves havenotworkedandquitefranklywill ofhowMrTrumpishandlingtheepidemic.Suchpolls notwork,”saidRichardTrumka,presi- shouldcomewithahealthwarning.Ratingsforleaders dent of the American Federation of acrossthewesthaverisensharply—astendstohappenin LaborandCongressofIndustrialOrgan- theearlystagesofanexternalthreat. izations. RumoursofMrTrump’sre-electionarethuspremature. Theirinterventioncomesaftersimi- PollsshowJoeBidenbeatinghimbyanaverageof7per- larwarningsfromJoeBiden,thefront- centagepointsinapresidentialelection.Thatleadhasnot runnerintheDemocraticpresidential narrowed in the past primaries,andAndrewCuomo,thegov- threeweeks.Butthegulf Materialisgoingto ernorofNewYork. betweenthefederalgov- thehighestbidders, Theact,whichwaspassedin1950 ernmentandthelargest duringtheKoreanwar,enablesthefed- statesiswidening. whoarenot eralgovernmentineffecttotakeover Suchmixedsignalling necessarilythose partsoftheindustrialbase. posestwothreatstothe Underthetermsoftheact,anadmin- Changinggear: under the Defense Production Act.” economicrecoverybutthey’releavingit acquisitionatthedefencedepartment, US. The first is an à la mostinneed istrationcancompelcompaniestopri- aGeneral Othercompanieshavealsosaidthey toopenauctionsaroundmedicalequip- said: “[Mr Trump] is talking about carte grade of serious- oritise government contracts over pri- Motorsplantin willconvertmanufacturingprocessesto ment.” broadlyusingDPAtotakeoverprivate ness.Somestates,suchas vateones,makethemsendequipment Michigan.The makeproductsthatcanhelpfightthe BlankieTails,aUScompanywhich industry—that’swhathehasclearly NewYork,California,WashingtonandConnecticut,are tocertainareasaheadofothers,and carcompany disease,fromGeneralMotorsmaking makesblanketsintheshapeofmer- saidheisnotgoingtodo.” enforcinglockdowns.MostareDemocratic.Exceptions provideloansandgrantstoencourage saysitwill ventilatorstoPernodRicard,thedrinks maidtailsandDisneyprincessdresses, Other departments seem more includeOhioandMaryland,withRepublicangovernors. certainformsofmanufacturing. convertits company, producing hand sanitiser. isnowusingitsnetworkofsuppliersin ambivalentaboutwhethertousesuch Others,suchasTexasandFlorida,aretakingafarmore MrTrumphasgivenAlexAzar,the manufacturing NeilBradley,chiefpolicyofficeratthe Chinatosourcesuppliersandstorage powers or not. On Tuesday Peter relaxedapproach,makingiteasierforthevirustospread. healthsecretary,theauthoritytoimple- processes USChamberofCommerce,said:“No spacetosupplymasksandventilatorsto Gaynor,theadministratoroftheFed- ThefactthatFloridaispackedwithretireesfromNew menttheact.ButwhilethePentagon,in tomake onehasidentifiedanythingthatcould theNewYorkStategovernment. eralEmergencyManagementAgency, Yorkwasuntilthisweektreatedwithremarkableinsouci- particular, regularly uses the act to ventilators bedonerightnowthatisnotbeingdone. HattieGraceElliot,itsfounder,said: saidonTuesdayhisagencywoulduse ance.BeforeTuesdayFloridaputnobarrierstostopping makesuresuppliersprioritisecertain PaulSancya/AP Ifyouinvokeittotellacompanytodo “Timeisticking...Itwouldbegreatif theacttobuy“about60,000[coronavi- theflowofpeoplesouthnor14-dayquarantinesforthose contracts,MrTrumphasbeenreluctant whattheyarealreadydoing,allyouare we could have [the DPA] but in the rus]testkits”. whohavemadethetrip.OneofAmerica’sgreatstrengths touseitforcoronavirusbecausehesays doingiscreatingconfusion.” meantimeyou’vejustgottokeepmov- Butlaterthatday,aspokespersonfor —itslaboratoriesofdemocracy—isbecomingaliability. companiesarealreadydoingallthey Manysmallercompanies,however, ingforwardanddowhatyoucando.” Femasaid:“Atthelastminutewewere MrTrump’stimingismenacing.Hewantstoliftfederal canandhedoesnotwanttonationalise say they want stronger guidance from Defenceofficialssaytheyarelooking abletoprocurethetestkitsfromthepri- restrictionsbyEaster,whichisinabouttwoweeks.That partsofUSbusiness. theTrumpadministrationonexactly atusingcertainprovisionswithinthe vatemarketwithoutevokingtheDPA.” coincidesalmostexactlywiththeexpectedpeakoftheepi- Largecompaniesagree.Ford,whichis whatisneededandwhereitshouldgo. acttoprovideloansandgrantstocom- Buttherealityisthatthemorethe demicinNewYork,thecentreoftheUSoutbreak.No workingwith3MandGEtomakeventi- “Everyonewantstohelp,butthere’sa paniesthatcouldmanufacturemasks presidentcontinuestotalkofcontrol- state,includingNewYork,hastofollowMrTrump’slead. latorsandrespirators,toldtheFinancial lotofchaosoutthere,”saidCarlBass,a andothermedicalequipment. lingcoronavirusasbeingakintoawar NorarethemajorityofAmericanslikelytocramontoaer- Times:“Wecontinuetopursuethese manufacturingexpertandtheformer Buttheyinsisttheyarenotplanning effort,thestrongerthecallsarelikelyto oplanesagainstscientificadvice. efforts voluntarily, and while we are chiefexecutiveofthedesignsoftware tousemoreheavy-handedpowersto becomeforhimtousethepowersavail- Butheisgivingdissentersanalternativepath.Thebattle co-ordinatingcloselywiththefederal companyAutodesk. takeoverpartsofthedefenceindustrial abletoawartimepresident. againstsociallycommunicablediseaseisasstrongasits government, we are not being asked “It needs government leadership. baseunlessmandatedtodoso. AdditionalreportingbyKatrinaMansonin weakest link. America’s president is making it much to manufacture medical equipment Thisgovernmentisputting$1tninto EllenLord,theunder-secretaryfor WashingtonandJoshuaChaffininNewYork weaker.Heisalsopoliticisingsocialbehaviour.Liberals wanttoshutdowntheeconomytostophisre-election,he says.Conservativesmustthereforedotheopposite. MrTrump’sambivalenceisalsohurtingNewYorkand Kremlin otherviralhubs.UndertheDefenseProductionAct,hecan directtheprivatesectortomakewhatislacking—ventila- Russia offsets cost of pandemic with tax on bank deposits tors,protectivegearandsurgicalequipment—thensend thematerialstowheretheyaremostneeded.MrTrumpis refusingonthegroundsthatheisnota“shippingclerk”. Materialisgoingtothehighestbidders,whoarenotnec- essarilythosemostinneed.MrTrump’spassivityreflects HENRYFOY—MOSCOW small businesses and reductions in millionsofRussians,includingpension- deposits, comes despite two years of whatheishearingfromchiefexecutivesratherthangover- employers’statecontributions. ersusingsavingstosupplementsmall budgetsurplusesinRussia,anational nors,whoknowwhattheirhospitalslack.Statesarecom- MeasuresintroducedbyRussianpresi- MrPutinannouncedtheschemeina statepensions. wealthfundworthabout$150bnand petingwitheachotherforscarcegoods.AnotherofAmer- dentVladimirPutintosoftentheeco- solemnnationaladdressonWednesday Atthestartofthisyear,55.3percent foreignreservesof$570bn. ica’sgreatstrengths,itsvibrantprivatesector,istherefore nomicblowofthecoronaviruspan- that signalled a shift in his attitude ofallRussianbankdepositswereworth Svetlana, an 82-year-old pensioner becomingaweakness. demicwillbepartlyfundedbyalevy towardsthespreadingrespiratorydis- morethanRbs1m,accordingtodata fromMoscow,saidshehadamassedher ThesecondthreatistoAmerica’sglobalpower.Thevirus on bank deposits, tapping nest eggs ease caused by the Sars-Cov-2 virus. fromthecountry’sDepositInsurance savingstopayforacarer,herfuneral originatedinChinabutitwillprobablydomoredamageto heldbythecountry’spensionersand Afterinsistingforweeksthatthedisease Agency,whichcovers234.2mdeposi- andagravestone. theUS.ItisChina,nottheUS,thatisshippingventilators middle-classhouseholds. was“undercontrol”theRussianleader tors,bothindividualsandcompanies. Grim:Vladimir “Thisincrediblyupsetsme,”shesaid. toEurope,AfricaandAsia.China’sface-maskdiplomacyis TheKremlin’sdecisioncontrastswith saiditwas“impossibletostop”thevirus Previously, deposit interests were Putinoutlineda “Everyoneinmycircle,myfriendsand breathtakinglyopportunistic.Butitmeetsaneed. other governments, which have spreadinginthecountry. exemptfromtaxation. planthatwould acquaintances, everyone has Rbs1m. America’sabdicationofleadershipisanactofselfharm, announced large rescue packages to Mr Putin pledged that just “1 per TheDIAstatisticsimplythat“alarge seepensioner Weliveofftheinterestfromthisdeposit whichthreatenstomakeitanobjectofmockery.Thereare helpcompaniesandtaxpayersweather cent”ofdepositorswouldbeaffectedby amountofdepositswillbetaxed”,said nesteggstapped addedtoourpension.” nodo-oversonpandemics.ToborrowfromTalleyrand,Mr asuddenlossinrevenuesorincomes his decision to fund the measures LuisSaenz,co-headofequitiesatBCS tohelpfund “Wewouldlovetoseemoneytaken Trump’sresponsetothecoronavirusisworsethanacrime. but in doing so have refrained from throughataxoninterestearnedfrom GlobalMarketsinLondon. arescuepackage fromtherichinsteadofthepoor,”Svet- Itisamistake. increasing taxes. Russia has outlined deposits worth more than Rbs1m Themeasure,whichwillimposea13 lanasaid.“Butwhatcanwedo?They handoutstofamilies,taxholidaysfor ($12,900).Butthemeasureswillaffect percenttaxoninterestearnedonthe decidedtotakemoneyfromus.” [email protected] Africa Japan Quick and cheap test for virus begins trials Panic buying hits Tokyo as spike fears grow NEILMUNSHI tinent,butmanyhealthexpertsbelieve capacitytoproduce8mofthenewtests LEOLEWISANDKANAINAGAKI—TOKYO requested that residents work from veryselectively,arguingithadtofocus WESTAFRICACORRESPONDENT itsfragilehealthsystemscouldleaveit ayearandplanstoofferthemdirectlyto homeandrefrainfromdiningoutinthe onthecriticallyill. PanicbuyinghasleftmanyofTokyo’s A10-minutecoronavirustestthatcosts particularly vulnerable. Testing is governments,theWorldHealthOrgani- storeshelvesemptyafterarecordrise evenings.Shealsocalledonuniversities But1,300infectionsinapopulationof lessthanadollartoproduceisbeing widelyviewedaskeytocontainingout- zationandtheGlobalAllianceforVac- innewcoronaviruscasespromptedthe todelaythestartofclassesfromearly 127m have raised questions over rushedintotriallingbyaSenegalese breaks. cinesandImmunisation. city’sgovernortoaskresidentstostay April,thestartofthenewschoolyearfor whetheritsstrategywasasuccessorjust research institute working with a JoeFitchett,Mologicmedicaldirec- Thetest,tobetrialledatlaboratories athomethisweekend. Japan. disguisingthebreadthofthecrisis. Britishcompany. tor, said that while many companies inSenegal,theUKandtheChinesecity “Inordertoavoidanexplosivegrowth “Wearenotheadingforanimmediate wereworkingonvirusdiagnostics,“the ofWuhanwherethepandemicbegan, Yuriko Koike, whose overnight ininfections,theco-operationofevery- lockdown,”MsKoikesaid.“Butconcern The prototype being produced by differencewearetryingtomakehereis employs a saliva-based virus antigen announcementcamelessthan24hours oneiscritical.Weaskthateachofyou hasrisenthisweekaboutanexplosion Dakar-baseddiaTropixandMologicof to ensure this is not a commercial testandablood-basedantibodytest.It afterTokyoandtheInternationalOlym- actwithasenseofurgency,”MsKoike ininfectionsandwearenowenteringa theUK,whichusestechnologysimilar opportunity. producesaneasilyreadableresult—a picCommitteeagreedtopostponethe said. criticalphase.” toahomepregnancykit,beganavalida- “Thiswillbemadeavailableatcostof lineappearsifthepatientispositive. summer Games, warned that the AfterMsKoike’sappeal,Tokyoresi- Herdecisiontostopshortofdeclaring tion process yesterday and the test goodstolow-incomesettings.That’sa MrFitchettconcededthatthetrade- world’sbiggestcitycouldbeoncourse dentsrushedtohoardpreservedfood thekindoflockdownimposedinother couldberolledoutbyJuneifthetrials fundamentaldifferencethatmostoth- offforincreasedspeed,lowcostand foran“explosivespike”innewcases. suchasinstantnoodlesandpasta.One countriescameasJapan’sforeignminis- aresuccessful. erswillnotbedoing.” easeofusewouldprobablybeadropin OnWednesday,therewere41new ofJapan’slargestretailerssaiditwould try raised its warning level, advising Whilethepocket-sizedtestwouldbe DiaTropix,whichisrunbyleading performance but said it would be infectionsinTokyo,arecordone-day increase supplies in anticipation of againstnon-essentialtraveloutsidethe madewidelyavailable,itisaimedat virologistAmadouSall,isaffiliatedwith important to determine whether the rise after 17 cases were reported on anothersurgeindemand. country. Prime minister Shinzo Abe, stemming the spread of the virus in Dakar’sInstitutPasteur,whichcreated dropwasmeaningful,whichwassome- Tuesdayand16onMonday.Thereare Japanhastakenadifferentapproach however, has not declared a state of Africainparticular.Onlyabout2,400 oneoftheworld’sfirstyellowfevervac- thing the prototype testing process 212casesintotalinTokyo. tomanyothercountriesinitsbattle emergency,meaningshops,restaurants caseshavebeenreportedacrossthecon- cines.AlongwithMologic,ithasthe wouldhelpthemunderstand. Ms Koike, citing medical experts, againstthevirus.Untilrecently,ittested andbarshaveremainedopen. MARCH 27 2020 Section:World Time: 26/3/2020 - 18:36 User: john.conlon Page Name: WORLD2 USA, Part,Page,Edition: USA, 3, 1 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws 4 ★ FINANCIAL TIMES Friday27March2020 CORONAVIRUS Hospitals. Transmission risk Spain Catalonia and Italy medics’ Madrid clash fight for life over control measures gets personal DANIELDOMBEY—MADRID AsurgeofcoronaviruscasesinCatalo- niahasincreasedtensionbetweenthe gamo,thecityinLombardywiththe regionandtheSpanishgovernment, With33healthworkersdying, highestnumberofcases. whichisbeingpressedtoshutdown fearofsicknesshamperspush AgroupofdoctorsfromthePapaGio- almosttheentireeconomy. vanniXXIIIhospitalinthecitywrotea Asofyesterdaytherewereabout11,500 torecruitadditionaldoctors jointarticleintheNEJMmedicaljournal confirmed cases in Catalonia, with last week saying their hospital was 1,000peopleinintensivecareand670 “highlycontaminated”. dead.Thefiguresmarkadrasticdeteri- MILESJOHNSONANDDAVIDEGHIGLIONE “Wearelearningthathospitalsmight orationsinceMarch16,thedayafterthe ROME FEDERICACOCCO—LONDON bethemainCovid-19carriers,asthey lockdown,whentherewerefewerthan As Italy’s doctors and medical staff are rapidly populated by infected 1,000casesinCatalonia,only33people strive to save the lives of Covid-19 patients, facilitating transmission to inintensivecareandjust12deaths. patients,theyarealsofightinganother uninfectedpatients,”theysaid. Theworstaffectedpartoftheregionis battle:toavoidinfectingthemselves. “Health workers are asymptomatic aroundthetownofIgualada,anhour’s “Thingsareverybad,I’mdesperate,” carriers or sick without surveillance; drivefromBarcelona.Catalanauthori- saidanintensive-caredoctorinBrescia, somemightdie,includingyoungpeo- tiessaythedeathratethereistheequiv- Lombardy,Italy’sworst-hitregion.At ple...Older patients are not being alentof63.1per100,000inhabitants. herhospital,wherestaffareusingsnor- resuscitated and die alone without TherateinMadrid,theworst-hitregion kellingmasksboughtfromleisuregoods appropriatepalliativecare,whilethe inSpaininabsoluteterms,is27.9,andin chainDecathlontohookuppatientsto familyisnotifiedoverthephone.” Lombardy,northernItaly,untilnowthe oxygen,protectionequipmentfordoc- Giorgio Gori, mayor of Bergamo, centreoftheoutbreakinEurope,41.6. torsandnurseshasrunout. admitted healthcare workers had TheregionalauthorityonWednesday “Ithinkweallhaveitherebutthey become sick “during the first phase tightened restrictions in and around won’ttestus,evenifwedisplaysymp- whentheywereinitiallyexposedtothe Igualada,banningpeoplefromleaving toms,whichallowsthespreadtocon- virusbecauseofthelackofprotective Desperate:theintensivecareunitinaBresciahospital.Somestaffusesnorkelmasksforprotection homeforanythingbutessentialwork. —ClaudioFurlan/LaPresse/AP tinue,”thedoctortoldtheFT.“Theyare equipment”. But authorities “acted Butthecentralgovernmentsaidyes- nottestingthemedicalstaffbecausewe quicklyandnowthesituationisunder ‘Ithinkwe ciation,said84doctorsintheItalian terdaythebanlackedforceunderthe areunderstaffedandtheycan’tquaran- control”. Europe TheWorldHealthOrganizationhas capitalhadbeeninfected,accounting stateofalertitinvokedtodealwiththe allhaveit tineus.Ifthingsgoonthisway,thiswill Mr Gori believes that, for all the WHOtakes saidithas“startedtoseesome forabout13percentofthetotalnumber emergency,andwhichlargelysuspends neverendbecausewewillcontinueto deathsinhospitals,manymorepeople heartfrom encouragingsigns”inEurope,where herebut ofcasesthere. thedevolvedsystemofgovernment. spreadthediseaseandtogetsick.” aresuccumbingtothevirusathome slowerrate thepandemichasclaimednearly theywon’t “Weareflexibleandweareallmaking PedroSánchez,theprimeminister, Italy’smedicalsystem,oneofthebet- without medical treatment. Official 12,000lives. bigsacrifices,”saidFrancescaRapetti, saidthelockdownmeasuresweresuffi- ofcases ter-resourcedinEurope,isstretchedto deathstatisticsforthecity,hesaid,were Theinternationalbodysaidthatthe testus, ananaesthetistinanintensive-careunit cientandheldouthopethespreadofthe inItaly breakingpoint.Morethan7,500people far higher than previous years and continenthadreportedmorethan at San Martino hospital in Genoa. viruswouldsoonpeak.“TheSpanish evenifwe havedied.Sofar5,211medicalworkers higher than the official numbers 220,000casesand11,987deaths “Unfortunatelywearealsoquitescared: governmentcontinuestofollowWorld inItalyhavehadthevirus,equivalentto countedashavingdiedfromthevirus. associatedwithCovid-19.Thatissix display wecannotworkcalmly.”Lackofprotec- HealthOrganizationrecommendations 8percentofalldiagnosedcasesinthe “Theratioisfourtoone,”hesaid.“For outofevery10casesandsevenoutof tiveequipmentaddstothestress. at all times and...has adopted the symptoms’ countryatthestartofthisweek.Of eachpersonwhoisdeceasedwithadiag- every10deaths. Italyhasrushedtorecruitmoredoc- mostdrasticmeasuresinEuropeand those,33havedied,accordingtothe nosis of coronavirus, there are three “Whilethesituationremainsvery Bresciadoctor tors, urging retired professionals to thestrictestintheworld,”hisofficesaid. IstitutoSuperiorediSanità,thescience othersforwhomthisisnotascertained serious,wearestartingtoseesome returntothefrontlineandlettingmedi- TheclashisjustthelatestbetweenMr armofthehealthservice. butwhodieofpneumonia.” encouragingsigns,”saidHansKluge, calstudentsgraduateearly.Yetsome Sánchez’sgovernmentandtheCatalan “Thefirstthingtodoistoprotect Bergamo’shospitaldoctorsarecalling WHOregionaldirectorforEurope. aretornbetweenthedesiretohelpand administration, which at one point healthcareworkers,tomakesurethey formorepatientstobetreatedathome Hepointedtoaslightlylowerrateof the risks. Gianpiero D’Antonio, a 25- calledfortheregiontobesealedoffto arenottheonesspreadingthevirus.Our andforseparatebuildingsinsidehospi- increaseincasesinItaly,whichhasthe year-olddoctorfromPotenzainsouth- fightthevirus.Thisweekitdemanded doctors have been sent to war talstobeestablishedfortheinfected, highestnumberofcasesinEurope. ernItaly,hasalreadybeenofferedsev- thatMadrid“banallmovementoutside unarmed,”saidFilippoAnelli,president meaningtheriskofhospitalcontamina- Asmanycountriesgothrougha eral jobs in Covid-19 departments in [thehome]—onfoot,inprivatevehi- ofItaly’snationaldoctors’association. tionisreducedandhelpcanbegiven periodoflockdown,DrKlugesaid: hospitalsacrossthecountry. cles,orbyanymeansofpublic,private, “Thedeaddonotmakeanoise.Yetthe morequicklyandefficiently.“Weneed “Soonwewillbeabletodetermine “Theriskofgettingsickisveryhigh,” collectiveorindividualtransport”. names of our dead friends, our col- dedicated Covid-19 hospital pavilions thedegreetowhichthemeasuresput hesaid.“Formeitwouldbeagreat Underthestateofalert,peopleare leagues,puthereinblackandwhite, andoperators,separatedfromvirus- inplaceinmanycountriesarehaving opportunitytostartworkinginsucha allowedtotraveltoworkinareassuch makeadeafeningnoise.” freeareas.” animpact.” challengingsituationbut,beforetaking as construction, although almost all ThelatestdoctortodiewasVincenza Theproblemisnationwide.Antonio PhilipGeorgiadis anyjob,Ihavetothinkaboutitthree shopsotherthangrocersandpharma- Amato,headofpublichealthforBer- Magi,presidentofRome’sdoctors’asso- times.” cistshavebeenclosed. MARCH 27 2020 Section:World Time: 26/3/2020 - 18:16 User: john.conlon Page Name: WORLD3 USA, Part,Page,Edition: USA, 4, 1 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws Friday 27 March 2020 ★ † FINANCIAL TIMES 5 MARCH 27 2020 Section:Ad Page Time: 26/3/2020 - 16:03 User: william.baxter_mag Page Name: AD FT1, Part,Page,Edition: EUR, 5, 1 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws 6 ★ FINANCIAL TIMES Friday27March2020 y Gillian Tett Fed tapped Fink’s BlackRock again as its experience and database make it a natural partner OPINION VW urges ECB US regulators Posh nosh High-end eateries adopt stripped Zoom in on down home-delivered menus to navigate crisis to act quickly mistaken identity case on purchasing HANNAHMURPHY—SANFRANCISCO Regulatorshavesteppedintoclearupa corporate debt case of mistaken identity on Wall Street,suspendingthesharesofZoom Technologies, a small Chinese com- pany that investors were confusing withZoom,thevideo-callingappthat hasseenspectaculargrowthduringthe coronaviruspandemic. TheSecuritiesandExchangeCommis- sionsaidyesterdaythatitwashalting 3 Carmaker cites liquidity pressures tradingintheBeijingtechgroup,which usesthetickerZOOM,untilApril8over 3 Increase of dividend under review concernsthatinvestorswere“confusing thisissuerwithasimilarlynamedNas- daq-listedissuer...whichhasseena JOEMILLER—FRANKFURT However,whileitstartedbuyingsover- riseinsharepriceduringtheongoing ROBERTSMITH—LONDON eignandcorporatebondsyesterday,itis Covid-19pandemic”. VolkswagenhascalledontheEuropean stillironingoutthetechnicalandlegal ZoomVideoCommunication,aSili- CentralBanktospeedupitsplanstobuy detailsforbuyingnon-financialcom- conValleyvideoconferencingappthat short-termcorporatedebttohelpcom- mercialpaper,andhasyettoputthat floated in April 2019, has experienced paniesrideoutthecoronaviruscrisis. partoftheschemeintoeffect. anexplosioninpopularityasmillions Theworld’slargestcarmakertoldthe “Providingfundingopportunitiesis confinedtotheirhomesundernational FinancialTimestheECBshouldsend something essential in this crisis,” lockdownshaveusedittohostgroup “clear signals” and buy commercial MrWittersaid.“Theearlier,thebetter.” meetingsaswellassocialcatch-ups. paper—aformofshort-termdebtthat VWhasthecapacitytoissueupto Thevalueofitsshareshasmorethan oftenmaturesinaslittleassixornine €15bnofthisdebtintheeurozonemar- doubledsincethebeginningoftheyear, months—“assoonaspossible”. ket,withanother€5bnearmarkedfor giving it a market capitalisation of VWisoneoftheEurope’smostregu- short-termdebtinaseparatemarketin $40.3bn. larcorporateissuersofsuchdebt. Belgium.Thegroup’sringfencedfinan- Meanwhile, Zoom Technologies’ “There’s a lot of pressure on the cialservicesarmhasanadditionalcom- stockhasrisentenfoldsincethebegin- incomingmoneyflow,”saidFrankWit- mercial paper programme with a ningoftheyear—includingadramatic ter, chief financial officer. “We have €2.5bnlimit.Companiesthattypically rallylastFridayfollowedbyasudden relyoncommercialpapercoulddraw drop—althoughitsvaluationisafar ‘Wehavediversified downcreditlineswithbanks,aformof tinier$31.3m. standbyfinancingthatbusinessescan Despitetheriseinhomedelivery,fewserviceshavebeenabletoreplicatethefinediningexperience TheChinesecompanywasalsosus- fundingsourcesavailable, —Getty/MintImages turntoattimesofstress. pendedbecauseithasfailedtoissueany butnotallofthemareas MrWittersaidthatVW,whichhasyet ALICEHANCOCKANDANTONIACUNDY wherecustomerscanreheatandfin- aday.Ithasawaitinglistofabout40 publicdisclosuressince2015,theSEC totapavailablecreditlinesinexcessof LONDON ishthemto“Michelinstarquality” restaurants,whileithasturnedaway said,raisingquestionsoveritsfinances liquidastheywere’ €20bn,saidthecompanyconsidered High-end restaurants, including withasetofprovidedgelsandgar- 60 that did not meet its criteria, andwhetheritevenhasanycontinuing thatfacility“aback-up”forwhencapi- somewithMichelinstars,aredeliv- nishes.Twocoursescost£49.95. includinghighstreetchainsorlocal operations. The company voluntarily different diversified funding sources talmarketsareshut. eringstrippeddownversionsoftheir The service is in stark contrast to kebabshops. delistedfromtheNasdaqexchangein available,butnotallofthemareasliq- US rivals GM and Ford have each menusinUKcitiesastheyattemptto manypeople’sexperienceinobtain- PeterGeorgiou,Supper’schiefexec- 2014,filingsshow. uidastheywere.” drawndownabout$16bnfromtheir findwaystosellfinediningthrough ing food during the crisis — grocery utive,saidthestay-at-homeeconomy TheSECaddedthat“unsolicitedcus- VWclosedallitsEuropeanplantslast respectivecreditfacilitiestoshoreup thecoronaviruslockdown. deliveryslotsaresoldoutandhouse- was“adouble-edgedsword”. tomerquotationsforitscommonstock weekasthemotorindustry,withthe theirfinancesinthefaceofsupply-chain holds are having to head to busy, AftertheenforcedclosureofUK arequotedbybroker-dealers...under exceptionofChina,cametoanalmost disruptionandfactoryclosures.TheUS Morethan100restaurantshavecon- understockedsupermarkets. restaurantsaweekago,40ofthe80 thetickersymbolZOOM”onaninter- completestandstill.Largecorporations FederalReserveannouncedlastweek tacted Supper, the delivery service Campbell Mickel, head chef and restaurantsonSupper’sbooksshut dealer quotation system operated by accountforafractionofthe€1.4tneuro- thatitwouldbeginbuyingcommercial specialisinginupmarketLondonres- founderoftheBibGourmandrestau- down.“Onemomentwe’redoingalot OTCMarketsGroup. zonecommercialpapermarket,which paper,restartingafacilitylastinvoked taurants,astheybattletomaintain rantMeriendainEdinburgh,saidhe ofbusiness,atanotherwe’relosing Itisnotthefirsttimethesmallgroup isusuallyusedbybanks,butaccessto duringthe2008financialcrisis. revenuesduringtheshutdown. viewedthedeliveryserviceas“akind restaurantsthatdon’twanttheirstaff —aDelawarecorporation—hasbene- suchdebtcanbevitalforcompanies Mr Witter’s plea comes just a few Dishesavailablefordeliveryrange ofpublicservice”.Hesaidtherestau- onsiteatall,”hesaid. fitedfromitslargernamesake:itsstock looking to plug short-term liquidity weeksafterVWreporteda17percent fromsousvidemisocodcreatedby ranthadmovedfromasmalldish The coronavirus outbreak has alsojumpedmorethan80percenton gaps,acommonconsequenceofthedis- rise in pre-tax earnings in 2019 to chefswhonormallyworkonprivate tastingmenutomore“heartyfood”, sparkedaboominmealdeliverybut thedayofZoom’s2019listing. ruptioncausedbycoronavirus. €18.4bnwithnetcashflowsofalmost jets,toa£135dimsummenufrom suchasboeufbourguignon,asitwas fewserviceshavebeenabletorepli- “The commission cautions broker- MrWitter’spleacomesaftertheECB €11bninitsautomotivedivision. MayfairrestaurantHakkasan.Sup- easierforcustomerstodishup. catetheexperienceoffinedining. dealers,shareholders,andprospective announcedlastweek€750bnofextra Hesaidthatthegrouphadnotyet per’s customers typically spend “We prepare it 95 per cent the “UberEatsandDeliverooarefan- purchasersthattheyshouldcarefully assetpurchasestocontainthefinancial decided to scrap its substantially between£90and£120perorder. [same] way including the cooking, tasticcompaniesbut..alotofthebet- consider the foregoing information falloutfromthecoronaviruspandemic. increaseddividendof€6.50pershare, DanielHulme,aformerprivate-jet packageit,anddeliver,”headded. terrestaurantsdon’twanttousethose alongwithallothercurrentlyavailable Thecentralbankpledgedtomakenon- butwould“havetomonitorthesitua- chef,hasspent£100,000developinga Suppersaidithadaddedmorethan deliveryservicesbecauseitdoesn’t informationandanyinformationsub- financialcommercialpaper“eligiblefor tion,asdevelopmentsareprogressing”. blastchillingsystemthatallowshis 2,000customerssinceMarch20and turnoutastheirchefswantit.”said sequentlyissuedbythecompany,”the purchase” under the programme. AdditionalreportingbyMartinArnold chefs to prepare dishes to a point wasprocessinginexcessof200orders MrHulme. SECsaid. Contracts&Tenders New spirit of co-operation brings dangers for Silicon Valley navirusteststhatcanbemadefrom agementAgency.Apple’sAppStoreis INSIDE BUSINESS resinusedindentallabs.EllenKullman, only slightly less restrictive, letting CEO,saysthatmorethan300people throughahandfulofvettedappsfrom TECHNOLOGY joinedawebinarthisweektolearnhow medicalresearchersfortrackingcoro- toturn3Dprintingmachinestousefor navirussymptoms. Richard thisandotherdesigns. Oneofthemostvaluablelocationson Protective gear and testing equip- theinternet,theGooglehomepage,now Waters mentareinshortsupply,andsomelives actsasaquasi-publicserviceannounce- willundoubtedlybesavedbyinitiatives ment,itssingleoutboundlinkconnect- likethis.Butdoinganythingatascale ing to a trove of official coronavirus thatwillbringarealflatteninginthe information. Covid-19morbidity—andmortality— Searches for anything related to the S ilicon Valley’s preferred curvesisadifferentmatter. pandemicbringspecialadviceboxes, modelofinnovation—iterate Sometimes,onlygovernmentwilldo. withmostlinksleadingbacktotheCDC fast,scaleuprapidly—has Centralisedauthoritiesareneededto andtheWHO.Acompanythatroseto metanadversaryitcan’tout- pickthebestideastoback,providevali- prominencebyfindingrelevanceinthe race. dationandcertification,andcommand “longtail”oftheinternethasdefaulted, The Sars-Cov-2 virus moves even theresourcesonascalethatwillmakea atatimeofglobalcrisis,tobeingacon- fasterand,insomeplaces,hashitan realdifference.SiliconValleytracesits duit for government-generated infor- exponentialgrowthcurve.Asthetech originstoacloserelationshipwithgov- mationandadvice. industryrushestomakeadentinthis ernment — specifically, the defence Thishighlightsjusthowseriousatest healthcrisis,itisfacingatestofsomeof build-up during thetechindustryfacesasitalignsitself Businesses For Sale itsmostcherishedwaysofdoingbusi- the cold war. A Oneofthemostvaluable withgovernmenttosolvethecurrent ness—aswellasitsrelationshipwith series of similarly crisis,whileatthesametimedefending locationsontheinternet, customersandusersaroundtheworld. tight public/pri- itsvaluesandprotectinguserrightslike The can-do spirit and creativity vate partnerships, theGooglehomepage, privacyandfreedomofspeech. unleashedbythepublichealthcrisishas neededtodealwith Thenatureofapervasivehealthscare nowactsasaquasi-public certainly been heart-warming. Social the health emer- makesthishard.Suppressingthespread mediasitesandmobileappstores,the gency,willtestthe serviceannouncement ofCovid-19hasalreadyforcedalimita- openplatformsonwhichcrowdsourced Valley’s ability to tionoffreedoms—thoughWesterngov- innovationthrive,areawashwithideas. meetaseriousneed,whileretainingthe ernmentshavetriedtodothisthrough TheFacebookpageforOpenSource methodsandvaluesitholdsdear. socialpressureratherthancoercion. Covid-19MedicalSupplies,forinstance, Thefirstresultsofthisnewspiritof The next phase, when it comes, is hasbroughtanoutpouringofdesigns co-operationhaveprobablybeenclear- likelytoinvolveattemptstopartially foressentialmedicalgear.Muchofitis estintheinformationrealm—specifi- reopentheeconomywhilestillregulat- protectiveequipmentforpeopleinthe cally,whenitcomestothecollection ingindividualmovement. frontlinesofthebattleagainstthevirus, anddisseminationofreliableinforma- AsChina’ssuccessfuleffortstolimit tobeproducedonhome3Dprinters tionaboutthenatureandspreadofthe renewedoutbreaksofthevirushave closetowhereitismostneeded. virus,andwaystolimittherisks. shown,thisislikelytorequirecollecting Adhocalliancesarebeingformedto App Stores, for instance, were informationaboutindividualsthought elevatemakeshiftdesignsliketheseinto designedtoactasopenplatformsfor toposearisk,suchaswheretheyhave BusinessforSale,BusinessOpportunities,BusinessServices, morerobustsupplylines.Carbon,aSan anyonewithabrightidea.Butasearch beenandwhotheyhavehadcontact BusinessWanted,Franchises Francisco-based3Dprintingcompany, inGoogle’sPlaystoreforanythingcoro- with.Forthebigtechplatforms,stuffed RunsDaily istryingtoharnessthecustomerswho navirus-relatedoffersonlyalinktothe with this kind of personal data, this ......................................................................................................................................................................................................................................................................... haveinstalled1,000ofitsindustrial- WorldHealthOrganization,alongwith couldposethebiggestchallenge. ClassifiedBusinessAdvertising UK:+442078734000|Email:[email protected] grademachines. appsfromtheCentersforDiseaseCon- Amongitsdesignsisaswabforcoro- trolandtheFederalEmergencyMan- [email protected] MARCH 27 2020 Section:Companies Time: 26/3/2020 - 19:00 User: nick.miller Page Name: Comp&Mkts1, Part,Page,Edition: USA, 6, 1 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws Friday27March2020 ★ FINANCIAL TIMES 7 COMPANIES Industrials Financials Wallenberg warns on long-term job losses Norway’s oil fund picks chief to steer Swedishmagnatesays makerEricssontobankSEB,saidpoli- a debate about the long-term conse- restrictionsoutweighthehealthbene- onhowtoreturntoavibrantsociety cymakersmustprotectthevulnerable quencesofthecrisis. fits.MrWallenbergsaidthedebatehad witharichculturalofferingandlively way through protractedeconomiccrisis butnotlosesightoftheimpactofcon- “I am dead scared of the conse- beenverymuch“businessversuslife”, restaurants,andaneedtothinkabout riskssparkingsocialunrest tainmentmeasuresonbusinesses,from quencestosociety.Iwanttoputthe buthewantedtotakea“lifeversuslife” thenextgeneration. testing times localrestaurantstomultinationals. view:whatelsecanwedo?Rightnow, perspective.Elderlypeopleshouldbe MrWallenbergsaidthathiscallfora Ifthecrisiswentonforlong,unem- we’rejustgoingononepath . . . Wehave protected more, perhaps by being debate on what happened after “the RICHARDMILNE ploymentcouldhit20percentto30per toweightherisksofthemedicineaffect- placedinmandatoryquarantine. acutephaseofthecrisis”wasbacked NORDICANDBALTICCORRESPONDENT centwhileeconomiescouldcontractby ingthepatientdrastically.Howdoes Thereshouldbeaparalleldiscussion byEuropeanRoundTableforIndustry, JacobWallenberghaswarnedgovern- thesame,hesaid. tomorrowlook?Oneofthesedaysthere 50industrialistswhorepresentcompa- RICHARDMILNE—OSLO ments to weigh the economic threat “Therewillbenorecovery.Therewill isatomorrow.Wehavetoprepareour- ‘Therewillbenorecovery. nieswithrevenuesof€2tn. Alittle-knownNorwegianhedgefund from the virus more heavily or risk besocialunrest.Therewillbeviolence. selvesaswell.” “Authoritiesareallworkingveryhard Therewillbesocialunrest. manageristakingoveraschiefexecu- depression, social unrest, and a lost There will be socio-economic conse- Swedenisanoutlier,keepingschools tohelpsociety.Theyarenotlooking tive of the world’s largest sovereign generation. quences:dramaticunemployment.Citi- and borders open and making fewer Therewillbeviolence’ aroundthecornerasmuch.Theyare wealthfundjustasthecoronaviruscri- The Swedish industrialist, whose zenswillsufferdramatically:somewill restrictionsthanotherEuropeancoun- nottakingthelonger-termperspective. sispresentsitwithitssternesttest. familyvehiclehascontrollingstakesin die,otherswillfeelawful.” tries.Therehasbeenadebateabout JacobWallenberg Thisissomethingthatisveryimportant companies from telecoms equipment MrWallenbergsaidhewantedtostart whethertheeconomiccostsofcertain forsocietyandfortheEU,”hesaid. Norway’scentralbanksaidyesterday thatNicolaiTangen,whofoundedLon- don-basedhedgefundAKOCapitalin 2005,wouldsucceedYngveSlyngstadas Technology. Social media headoftheoilfundinSeptember. Thefund,whichwasfoundedin1996 tosafeguardandmanageNorway’soil Viral-influencers power ahead under lockdown revenues,hasamassed$930bninassets and,onaverage,owns1.4percentof everylistedcompanyglobally. OysteinOlsen,Norway’scentralbank governor,wholedthesearchforthe Quarantinesarecreating chief,defendedthechoiceofahedge fundfiguretoleadanorganisationbet- householdcelebritiesinfields terknownfortrackingstockmarket indicesratherthanmakingbigbets. fromexercisetoeducation “Therearedifferencesinallocation andsizebutthere’sahighequityshare intheoilfund,”hesaid. HANNAHMURPHY—SANFRANCISCO, DANIELTHOMASANDMARKDISTEFANO EspenHenriksen,anoilfundexpert LONDON atBIbusinessschoolinOslo,saidMr At9ameverydayintheUK,hundredsof Tangenhadbeen“phenomenallysuc- thousandsofchildrenstandinfrontof cessful”withhishedgefundbutitwas thetelevisionsintheirlivingroomsto “asurprisethatthegovernorhaschosen jump like kangaroos or learn to do astockpickerandhedgefundmanager planksasfitnessinstructorJoeWicks toheadadefactoindexfund.Youhave takesthem—andoftentheirparents— totrustthattheboardhasdoneagood throughtheirpaces. jobandthatheisaquicklearner”. OnMonday,thefirstdayofthecoun- ThechallengefacingMrTangen,who try’s lockdown, Mr Wicks’s exercise livesinLondonbutwillmovetoOslo, classattractedabout869,000liveview- wasunderlinedasthefundrevealedit ers. By Tuesday the number had climbedcloserto1m,withhispopular- ‘Youhavetotrustthat ityspreadinggloballyasheinterspersed theboardhasdonea his easy exercises with shout-outs to kidsfromNewYorktoJamaica. goodjoband[Tangen]is Now dubbed the “nation’s PE aquicklearner’ teacher”,MrWickshasdoubledhisfol- lowercountonYouTube,wheresomeof hisvideopostsnowhavemorethan4m wasfacingoneofitsworstquarterson views,earninghimanameasoneofthe recordwitha16percentdropthisyear breakoutstarsofthecoronaviruscrisis. afterthepandemichitstockmarkets. “It’salittlebitoffun,alittlebitofsilli- UnderMrSlyngstad,thefund’sassets nessatatimewhenpeoplearestressed almostquintupled. andworried,”MrWickssaid,talking KnutKjaer,thefund’sfirstchief,said fromhiswestLondonhome.“Iamthe thatMrTangenwasthe“bestpossible busiestmanintheworld.Iamsofired person” to take over the job and up . . . It’samazing.I’maTVchannel!” “uniquelywellqualified”. While celebrities and influencers Unlikeinthe2008-09financialcrisis, have traditionally broadcast aspira- Norwayhasbeenhardhitbycoronavi- tionalcontentrelatingtofashionand UKchildrenjoin faced with severe advertising head- becomingsocialmedia’sstandoutwin- ‘Thevirus WorldHealthOrganizationandtheUK’s rusandasharpfallinoilprices.Unem- travel, now, with travel bans and no the‘nation’sPE windsduringtherecentdownturn,as ners.Thetopiciscurrentlythenumber- DepartmentforInternationalDevelop- ploymenthasmorethanquadrupledin hastaken eventstodressupfor,socialmediaplat- teacher’Joe marketers slash their budgets amid onedriverofviewsonYouTube,while menthavepartneredwithinfluencers the past two weeks. Its government forms are producing more everyday Wicksforan fierce new economic pressures, they thismonthintheUK,viewsofhome- everything onInstagram,TikTokandYouTubeto could end up withdrawing a record stars:DJslive-streamingfromtheirbed- exercisesession. have also been reporting unprece- exercisevideosrosemorethan200per spreadmessagesaboutsocialdistanc- amountfromthefundthisyear,evenas fromus, rooms, teachers hosting classes over Thefitness dentedspikesintraffic. centcomparedwiththedailyaverage ing,handwashinganddetectingCov- itsvaluedeclines,analystsbelieve. YouTubeandchefsbroadcastingcook- instructorhas OnTuesday,forinstance,Facebook forJanuaryandFebruarythisyear. exceptfree id-19misinformation,forexample. MrTangen,whowillpaytaxinNor- ingtutorialsonInstagramLive. doubledhis saidinablogpostthatusershadbeen Buteducationalcontent—typically “Peopleareturningto[influencers]in way,toldtheFinancialTimesthatthe timeand MrWicksisoneofagroupofpeople followercount spending70percentmoretimeacross virtuallessonsprovidedbyteachers— tough times; this is legitimising the biggestchallengefacingthefundwas whohavebuiltuphugeglobalonlinefol- onYouTube, itsappsinItalysincethecrisistook hasalsogainedtraction:24,000people technology’ valuetheycanhave,”saidNeilWaller, that “financial markets are moving lowingsandhousehold-namestatusin wheresomeof hold, while Instagram and Facebook haveregisteredtheirinterestinalive- chiefexecutiveandco-founderofinflu- faster than ever before” at the same recentweeks,asthemillionsconfinedto hisvideoshave Liveviewstherehaddoubledinaweek. streamedFacebook“Spellathon”onFri- encermarketingagencyWhalar. timeasbigtechnologicalshiftsandthe theirhomessearchforentertainment, morethan4m Someplatformsaretryingtogenerate day from a Leighton Buzzard-based Still,badbehaviourshaveemerged riseofpopulisminpolitics. escapismandeducationonline. views newrevenuestreamsfrominfluencer teachercalledEnglishwithHolly. among more opportunistic players, “Idon’tthinkfinancialmarketshave —CharlieBibby/FT Formany,thenew-foundcloutoffers activity—amovethatcouldhelptooff- Meanwhile,globalviewsforcooking including some wellness influencers ever been more exciting,” he added. themastrongfootholdinthelucrative setthefinancialhitfeltbypopularcrea- showsaresoaring,rising45percentin reportedlyspreadingharmfulinforma- Therewere“verybigsimilarities”in $8bn influencer marketing industry, torswhoseusualbrandsponsorsare thefirstthreemonthsof2020fromthe tion about virus-preventing supple- howhishedgefundandtheoilfund withsocialmediaplatformsofferinga retreatingamidthecrisis. same time last year, according to ments,orexploitingthepandemicto were“runandmeasureperformance”. growingrangeofwaystogeneratereve- Instagramisexploringwaystoallow YouTube.Michelin-starchefMassimo selloverpricedproductsandservices. MrSlyngstadsaidtheoilfundwould nue.Theseincludecreatingsponsored userstotiptheinfluencersonitsplat- Bottura,forinstance,hashostedashow Somebelieveinfluencerswillberela- needtobuyequitiessoonaspartofits contentforbusinessesforafee,which form,sourcesfamiliarwiththeplans calledKitchenQuarantineeverynightat tively insulated from the advertising rebalancingrulesafteritsequityshare canbeinthethousandsofdollars,or toldtheFinancialTimes. 8pmonInstagramTVsincehisModena downturn,sincetheircontentischeap fellto65percentoftotalassets,against evenacceptingtips—afeatureInsta- Meanwhile, Twitch announced on restaurant Osteria Francescana was andeasytomake. itstargetof70percent.Closingthatgap gramisweighingonintroducing. Tuesday that it was partnering with forcedtoshutdownthismonth.The Fornow,someofthemorespontane- wouldimplypurchasesofabout$50bn. “Thereisaswitchininfluencercon- eventssiteBandsintowntoallowmusi- videoshavebeenstreamedhundredsof ous coronavirus stars say they are MrHenriksenvoicedsomesurprise tentonline,”saidScottGuthrie,acon- cians to monetise live-streamed per- thousandsoftimes. focusedonbuildingonlinecommunities thatawealthyhedgefundmanagerwas sultantatLuxmooreConsultingandco- formances via paid fan subscriptions Proponentsarguethatthenewclass asahobby,ratherthanmakingmoney. takingapositionthatlastyearpaidMr chairoftheinfluencermarketingpanel andonlinetips.Patreon,whichallows ofinfluencermayboostthereputation “You rediscover old books, old Slyngstadabout$630,000. attheCharteredInstituteofPublicRela- artiststocharge“patrons”forasub- oftheindustry,whichisoftencriticised records,thepleasureofcookingforyour MrTangensaidthat“fortheNorwe- tions, citing cooking, fitness and scriptiontotheirlivestreams,saidthat foritsshallownessandforattracting family.It’sthechanceforustobuild giansovereignwealthfund,it’sparticu- humourasthemostpopularcategories ithadgarnered30,000newcreatorsin fraudsterswhopayforfakefollowings. somethingspecial,that’swhyweare larlyimportanttogettheintrinsicmoti- forpeoplesearchingforasenseof“com- thefirstthreeweeksofMarchalone. Youngpeopleareevenbeginningto doingit,”MrBottura,thechef,said. vationgoing.Thefundisworkingfora munity”atatimeofsocialdistancing. Ashouseholdsinquarantinetryto looktoinfluencersas“atrustworthy “Thevirushastakeneverythingfrom higherpurposethanjustworkingina Thoughsocialplatformshavebeen stay healthy, fitness gurus are fast sourceofnews”,MrGuthriesaid.The us,exceptfreetimeandtechnology.” normalbank”,hesaid. Technology Insurance WeWork bleeds $1.4bn of cash in last quarter Lloyd’s flags up ‘large loss event’ risk to sector ERICPLATTAND MrClaureshowedthatWeWorkgener- Theyear-endcashpositionrevealed OLIVERRALPH—LONDON navirus,itwouldputtheindustryin customersbenefitfromthepoliciesthat ANDREWEDGECLIFFE-JOHNSON ated$3.5bninrevenuesin2019,up yesterdayrepresentedasharpdeterio- DEMETRISEVASTOPULO—WASHINGTON jeopardytobepayingclaimsforthose they’vegotbutitwillbedifficulttopay WeWorkburnt through $1.4bn in the 90percentfromayearbefore.How- rationfromthe$6.9bnincashandcom- ThechairmanofLloyd’sofLondonsaid risks.” outifcustomershavenotspecifically finalthreemonthsof2019,nearlyall ever,itdidnotincludethefull-yearor mitmentsthecompanysaidithadatthe the insurance industry could be “in IntheUS,abipartisangroupof18law- boughtprotection.” thecashitsprincipalbackerSoftBank quarterlyloss.WeWorkinNovember endofNovember. jeopardy”ifitwasforcedtopayoutfor makersintheHouseofRepresentatives HeaddedthatCovid-19wouldcause provided,ascostsfromopeningnew disclosedthatithadlost$2.2bnduring The $4.4bn figure for December Covid-19claimsthatitneverintended hasurgedinsurancecompaniestorec- claimsonmorethanadozentypesof buildingsandlayingoffthousandsof thefirstninemonthsof2019. included$1.3bnofcashWeWorkhadon tocover. ognisethelossesthatbusinesses—par- policy,andtotalpayoutscouldmatch employeesmounted. Thecashburnfigureunderscoredthe itsbalancesheet,aswellas$800mof ticularlysmallones—facefromtheeco- thoseforabignaturalcatastrophe. strainonthecompany’sfinances,even restricted capital. It said it also had Insurershavesaidthatinfectiousdis- nomicfalloutofcoronavirus. MrCarnegie-Brownsaiditwastoo Thecompanysaiditendedtheyearwith beforethecoronavirusoutbreak.While $2.2bnofcashitcoulddrawdownfrom easesareexcludedfrommostbusiness Inalettertotradeassociationsrepre- earlytoputafigureonthesizeofpoten- $4.4bn of cash and commitments, thebusinesshasclosedonlyahandfulof adebtfinancingfinalisedwithSoftBank interruption policies, prompting fury sentinginsurancecompanies,thelaw- tialclaims,butaddedthatitwouldbea accordingtoaletterSandeepMathrani, locations,investorsandemployeesfear lastyear,and$100mitwasstillowed fromcustomersfacinghugelosses. makersurgedthemto“workwithyour “largelossevent”forthemarket.Large WeWorkchiefexecutive,andMarcelo thatitstenantscouldsoonbegincancel- fromtheJapanesegroupforoneofits LawmakersintheUSwanttheindus- membercompaniesandbrokerstorec- naturaldisasterstypicallycostinsurers Claure, executive chairman, sent to lingleasesenmasse. jointventures. trytosoftenitsstanceandpayoutany- ognisefinanciallossduetoCovid-19as manybillionsofdollars. bondholdersyesterdayandseenbythe “WewanttoreiteratethatWeWork SoftBankwarnedthismonththatit way. But speaking to the Financial part of policyholders’ business inter- The crisis has hit Lloyd’s balance FinancialTimes. hasastrategicplanandasoundfinan- couldbackoutofitsdealtobuy$3bnof Times,BruceCarnegie-Brownsaidany ruptioncoverage”. sheet. Its solvency ratio, which is a SoftBankinjected$1.5bnofcashinto cial position,” Mr Mathrani and Mr WeWorksharesfromexistinginvestors, movealongthoselineswouldhaveseri- IntheUK,theparliament’sTreasury measureofcapitalavailableasapropor- WeWorkinOctoberinabailoutthat Claurewrote. atransactiontheboardthoughtwasall ousconsequences. committeeyesterdaywrotetotheAsso- tion of the minimum required, has gaveitcontrolofthegroup,butprom- “Webelievethisprovidesusthefinan- butdone.WeWorkdisclosedthatafur- “Fundamentallytheinsuranceindus- ciation of British Insurers asking fallenfrom238percentattheendof isesofmorefundinghavebeenthrown cial resources and liquidity to execute ther $1.1bn of new funding it had try relies on contracts,” the Lloyd’s whethertheindustrywouldbeflexible December to 205 per cent last week intodoubtasSoftBankthreatenedto ourplanthrough2024,includingman- expectedfromSoftBankhadbeenputin chairmansaid.“Wepayoutfromthe overbusinessinterruption. becauseoffinancialmarketvolatility. walkawayfromasharepurchasedeal. agingthechallengesandvolatilitypre- doubt, given the financing was tied to premiumswecollect,andifwehaven’t Mr Carnegie-Brown said: “We will MrCarnegie-Brownsaidthesolvency The letter from Mr Mathrani and sentedbyCovid-19.” thattenderoffer. collectedpremiumsforcoverslikecoro- workveryhardtotrytomakesurethat ratiowas“stillverycomfortable”. MARCH 27 2020 Section:Companies Time: 26/3/2020 - 17:45 User: cathy.pryor Page Name: CONEWS1, Part,Page,Edition: EUR, 7, 1 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws 8 ★ FINANCIAL TIMES Friday27March2020 COMPANIES Virus delivers shock to hedge fund sector Managers’ ability to weather all conditions was called into question in 2008 and is being put to the test once more ROBINWIGGLESWORTH,LAURENCE mometerinthebindoesnotdecrease FLETCHERANDORTENCAALIAJ yourfever.” Earlierthisyear,RayDalio,thehedge Therehasbeenawidedispersionin fundmagnate,admittedthatheandhis performanceacrosshedgefundstrate- team at Bridgewater Associates were gies,betweenindividualmanagers,and “dumbshits”whenitcametopandem- evenwithinmulti-strategyfunds.Most ics.Thebesttheycoulddowastoride strategies have suffered at least one straightthroughthecoronavirus- stretchofstomach-churninglosses. triggeredmarketturbulence. Twoweeksago,hedgefundsthatseek “Itwouldbeamistaketowhipsaw to profit from slight discrepancies ourselvesbyoverridingourprocessto betweenalmostidenticalUSTreasuries, react to the most recent headlines,” or Treasury bonds and Treasury BridgewatertoldinvestorsinFebruary. futures, were hammered when these Amonthlater,Bridgewater’sflagship spreadswidenedinsteadofnarrowed, Pure Alpha hedge fund was nursing threateningtosetoffanavalancheof a14percentlossfortheyeartoMarch failures. 18,andamoreaggressiveversionofthe The strategy is popular because fundwasdown21percent.MrDalio ofitsusualsteadiness,andasaresult admittedthat—despiteacarefullynur- ofthat,firmsuseheapsofleverageto turedimageasaneconomicsoothsayer boost returns. However, when the —hehadsimplygotitwrong. normal correlations break down and “Wedidnotknowhowtonavigatethe all assets sell off together — as they virusandchosenottobecausewedidn’t didtwoweeksago—thingscanquickly thinkwehadanedgeintradingit,”he turnugly. saidatthetime.“Sowestayedinour FundmanagerssaidthattheFederal positionsandinretrospectweshould Reserve’s aggressive monetary easing havecutallrisk.” has stanched the bleeding, but not The hedge fund industry’s pitch is beforesomeofthebiggestnamesgot thatitaimstomakemoneyinmost marketconditionsandprotectinves- ‘Itfeelslikestrappingon tors’capitalinadownturn.Thiswas aflakjacketandjumping calledintoquestionduringthe2008 financialcrisiswhentheaveragehedge onhandgrenadesgoing fundlost18percent—substantiallybet- offeveryday’ terthanequitymarkets—butabigdrop nonetheless. Inthedecadesincethentheindustry overallhasputinalacklustreperform- hit,includingCitadelandMillennium Sector under pressure ance.Record-lowinterestratesanda Management.Morerecently,thepain Performance (%) Return index Number of hedge funds globally (’000) multiyearbullmarketinducedbycen- hasbeenacuteamongtraditionallong/ tralbankspumpingmoneyintothesys- March Funds have fallen shortequityhedgefundsthatbuyand temhavefavouredcheapindex-track- Year to date 250 for five consecutive years sellstockshavealsosuffered. -30 -20 -10 0 10 ingfunds. Vanguard Balanced Fund index Lastweekitconstituteda“hedgefund Foryears,hedgefundmanagershave Hedge fund industry 200 deleveragingArmageddon”,according 8 cravedmorevolatility.Theindustry’s Equity hedge funds toYinLuoofWolfeResearch.Event- proponentspredicteditwouldproveits 150 drivenfundsthattradecompanymerg- Market-neutral funds 6 mettle with renewed turbulence. In erswerealsoamongthevictims. Merger arbitrage 100 Quantitativemanagersthatusecom- 4 ‘Whatishappening Global macro puterstocapturemarkettrendshave nowisepic.Theindustry Relative value arbitrage 50 2 also disappointed. Trend-following strategiesgained18percentin2008but HFRI willnotbethesame Emerging markets havelargelystruggledsincethen.Ifthey 0 0 Credit hedge funds donotprovetheirworthnow,“thereis afterthis’ 1995 2000 05 10 15 20 2000 05 10 15 19 noreasonforthemtosurvive”,saidone Source: Hedge Fund Research biginvestor. Ontheotherhand,someglobalmacro spiteofthegrimreasonsfortheprevail- 14 investor outflows for 13 of the past cullofhedgefunds—withsmallerones bytheday-to-daychallengesoftryingto Industry funds,whichmakebetsonbigeconomic % ingmarketchaosandthehumanand 17 quarters — with buoyant markets particularlyvulnerable—andreshapeit navigatethemarkets. participants trends,havemanagedtoprofitfromthe Losssustainedby economictollthepandemicisexacting PureAlphahedge helpingkeeptheindustry’sassetsunder inprofoundways. “Itfeelslikestrappingonaflakjacket whohadbeen recent bout of volatility more than — those seeking more volatility now fundfortheyear managementsteadyatabout$3tn— “Whatishappeningnowisepic,”said andjumpingonhandgrenadesgoingoff yearningfor most.BrevanHowardAssetManage- havetheirwish. toMarch18 andthenumberoffirmshasshrunkfor Mark Connors, a former hedge fund every day,” said the head of one US greater ment and Caxton Associates have Initiallythehedgefundindustryas fiveconsecutiveyears. manager who now works on Credit hedgefund.“AnditfeelslikeI’velost volatilityare chalkedupdouble-digitgainsthisyear awholefaredfairlywellduringthetur- 18% Manyofthosethatremainareless Suisse’s prime brokerage desk. “The somebodyparts.” havingtodeal thankstobetsonrisingbondprices, bulence.Theaveragehedgefundlost Hittotheaverage profitable. A spell of disappointing industrywillnotbethesameafterthis,” Intheirmomentofreckoning,hedge withwhatthey accordingtoinvestors. 1.4percentinFebruary,accordingto hedgefundduring returnshasmadethe2percentman- headded,predictingthatmanyfunds funds are facing constraints on their wanted Giventheturbulentmarkets,many HFR,eventhoughmarketswhipsawed. the2008financial agementfeeand20percentperform- willfallbythewayside,whilethebigwill style of investing as some European investorswillbeevaluatingtheirhedge crisis Buttheearlyresiliencefadedasturmoil ancefeestructuretheexceptionrather becomebigger. countriesbanshortselling,thepractice fundallocations,andtheresultislikely deepened,blowingupevenpreviously thantherule. Therehavealreadybeencasualties, ofbettingonfallingprices. tobemoreoutflows. reliabletrades.Hedgefundsaredown Theturmoilprovidesanopportunity suchasMalachiteCapitalManagement; “You can’t blame short sellers just SimonLack,ahedgefundallocatorat 8.6percentinMarch,andnearly10per —andformanymanagers,alastchance andsomeManikayPartnersfundsare becausesomeindustries[or]compa- JPMorganturnedcriticoftheindustry, centfortheyear,HFRsaid. —toprovetheirworth,sayinvestors returning capital to investors. Many niesaredoingverybadlythesedays,” said:“Iftheyjustloseabitlessthan Thissetbackcomesataprecarious andindustryinsiders.Butmanyfearit othersarenursingtheirbiggestlosses said Lionel Melka, fund manager at stocks,thenIthinkalotofinvestorswill time.Hedgefundshavealreadysuffered ismostlikelytobringa2008-stylemass sincethe2008crisisandareflummoxed HOMA Capital. “Throwing the ther- ask,whatisthepoint?” Banks ABN takes $200m hit after stumping up for client’s loss NICHOLASMEGAWANDPHILIPSTAFFORD TheDutchbank’sclearingarmproc- LONDON esses more than 20m securities and DutchlenderABNAmrowilltakea derivativesdealsperdayforcustomers $200mhittoitsprofitsaftermarket includinghigh-frequencytradersand turmoilleftthebankonthehookwhen market makers, many of which are acustomerwasunabletostumpup basedintheNetherlandsandChicago. extramoneyneededtokeeptrading. The market mayhem has already inflictedlossesonsometradingfirms. Thecustomer,whichABNdidnotiden- LastweekRoninCapital,aChicago- tify,hadbeenunabletomeetmargin based proprietary trader, collapsed callsrequiredtokeeptradingUSfutures afteritwasunabletomeetmargincalls andoptionsamidthewildswingsof onitsfuturesandbondtrades.Itsmain recentweeks. clearinghouse,theCMEGroup,saidit ABN,whichremainsmajority-owned hadauctionedoffRonin’sportfolios. bytheDutchgovernment,saidthatit Theintensevolatility,whichhasseen hadbeenforcedtocloseouttheposi- closely watched benchmarks such as theVixvolatilityindexsuddenlyrise, Themarketmayhemhas hasalsohurttheabilityofproprietary traders,orthosefirmstradingwiththeir inflictedlosses—Ronin ownmoney,tooperate. Capital,aproprietary ABN,whichhasbeenmajorityowned bytheDutchstatesinceitsbailoutdur- trader,collapsedlastweek ing the 2008-09 financial crisis, had alreadybeenunderpressurefromthe tionsofthecustomerandsaddledwith startoftheviruspandemicbecauseof theloss.Thelossisequivalenttoalmost itsheavyexposuretotheenergysector. 10percentofthebank’sannualprofits. InFebruary,itannouncedasecond The disclosure sent shares in ABN reviewofitscorporateandinvestment down5percentinearlyafternoontrad- bankingbusinessinasmanyyears.It ing,worsethanthe2percentdropin hadsufferedasharpincreaseinbad Europe’sbroaderStoxx600index.The debtsamongcustomersintheoffshore tradingloss,whichcameinABN’sclear- oilandgassector,evenbeforetherecent ingarm,isoneofthebiggesthitsyettoa collapseincrudeprices. bankfromtheturbulenceunleashedby Traders have in recent weeks urged thecoronavirusoutbreak. regulators to loosen rules around ABN’sclearingarmearnsmuchofits optionstradinginlightoftherecentvol- profitssittingbetweenexchangesand atility,arguingthattheycansuddenly clearinghouses,chargingcustomersa beleftwithhavingtostumpupmuch feetoprovidethecapitalthattraders moremoneywhenthenotionalvalueof areobligedtosetasideiftheirbetssour. optionsdecline.OnMonday,industry Butbanksareleftexposedifacustomer groupFIAEptawarnedthatsometrad- cannolongermeetthedemandsfrom erscouldpullbackfrommarketsasa theclearinghousetosettlefailedtrades. result. MARCH 27 2020 Section:Companies Time: 26/3/2020 - 18:24 User: cathy.pryor Page Name: CONEWS2, Part,Page,Edition: EUR, 8, 1 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws Friday27March2020 ★ FINANCIAL TIMES 9 MARKETS & INVESTING Fixed income. Trading dislocations Cross asset Benchmark Fed buying helps bond ETFs index updates rise to biggest challenge delayed amid turmoil fears PHILIPSTAFFORDANDTOMMY STUBBINGTON—LONDON RICHARDHENDERSON—NEWYORK Global index providers have delayed updatestosomeofthemostimportant stockandbondindicesamidconcern that forcing investors to follow suit couldtriggerfreshmarketturmoil. S&PDowJonesIndices,FTSERussell and ICE Data Services have all post- ponedupdatestobenchmarks,which wouldnormallyberebalancedatthe endofthemonthtoreflectchanging marketprices. Analysts said index providers are nervousaboutcompellingindex-track- inginvestorstobuyorselllargequanti- tiesofbondsatatimewhenthecredit worthiness of many borrowers was uncertainandpriceswerevolatile. “The securities moves this month have been so extreme that they are afraidarebalancingwillforcetrillionsof indexedandpassivemoneyto'adjust' their portfolios,” said Jim Bianco of BiancoResearch. FTSERussellsaiditwouldpostpone theMarchmonth-endrebalancesforits monthlytotalreturnindicesbutplans toresumetheoperationinApril. Theprovider,whichisownedbythe LondonStockExchangeGroup,saidit wouldincorporateMarch’sturnoverin UScentralbank’sdecisionto Gaps emerge between ETF prices and the value BlackRockhas “In our view, this is not an ETF April’snumbers. beenpicked dynamicoccurringrightnowbutabond ICEDataServicessaiditwouldpost- of the assets they hold purchasedebtfundsreleases bytheFedto marketdynamicandtheETFisshowing BlackRock iShares LQD investment-grade bond exchange traded fund manageitsbond you in real time how conditions are Thedecisionwasmade pressureatacriticaltime ($ per share minus net asset value) ETFbuying evolving,”saidSteveLaipply,USheadof ‘givencontinueddisruption 10 GabriellaAngotti-Jones/ BlackRock’siSharesfixedincomeETFs. JOERENNISON Bloomberg APssaythat,iftheyweretoredeem inthemarketsandafter 5 sharesandtrytosellthebondsinthe considerationoffeedback’ The financial storm unleashed by market,thepricetheywouldgetwould coronavirushasrippedbondexchange 0 bethesameastheETF. tradedfundsfromtheirmoorings,pro- They argue that the prices reflected ponetheregularmonth-endrebalanc- -5 vidingthefirstbigtestofamarketthat bybondindicesareinaccuratebecause ingofitsbondindices,whichwasdueto hasgrowndramaticallyinrecentyears. theyhavebecomestale,reflectingassets takeplaceonMarch31untilthefollow- -10 Investors have flocked into fixed that have seen little or no trading ingmonth.Thedelayappliestomore incomeETFs,whichsellsharesunder- 2003 05 10 15 20 activity. than5,000fixedincomebenchmarks pinnedbycorporatedebttogivesimple, Source: Bloomberg “It’s a market structure problem,” runbyICE,someinpartnershipwith speedywaystobetonamarketthatcan saidReggieBrowne,aprincipalatGTS,a Bank of America, which track more otherwisebetrickytoaccessandtrade. Butrecentlyitslidtomorethan$6per the underlying holdings, market marketmaker. than$77tnofdebtaroundtheworld. Butadeepsell-offearlierthismonth sharebelowitsNAV,thebiggestdis- makers — known as “authorised Investorscomplainthattheeaseof The decision was made “given the created big dislocations between the count since the depths of the 2008 participants”intheindustryjargon— trading debt has drastically deterio- continueddisruptioninthemarkets, pricesofbondETFsandthevalueofthe financialcrisis. normallyswoopintoclosethegapby rated in the midst of rapid outflows andaftercarefulconsiderationoffeed- bondsbehindthem. AhostofotherETFsthattrackjunk creatingorredeemingsharesintheETF. frombondfunds. backreceivedinresponsetoourconsul- Thesediscountsbecamesowidethat bonds,municipaldebt,bankloansand CreationiswhenanAPbuysbonds Instead,investorshaveusedETFsto tationwithstakeholders”,ICEsaid. some predicted investors would lose evenUSgovernmentbondshavealso andhandsthemovertotheETFpro- conduct broad trading against the Earlierintheweek,S&Psaiditwould faithinthefundstructurealtogether traded at extraordinary discounts to vider in exchange for a set amount of index,makingthemabettergaugeof postpone until the end of April the and dump their holdings — further theirNAVs. shares. Redemption is when it gives the“true”market. MarchrebalancingsformostofitsS&P damagingdebtmarketconditions. AsmarketsreboundedonMonday backsharesinexchangeforthebonds. andDowJonesequityindicesbecauseof Whathappensnext? Then,theUSFederalReservestepped followingtheFed’smove,thepriceof Intheory,thepriceofthefundandthe marketvolatility. in. On Monday, the central bank LQDsoaredtomorethan$5pershare valueofthedebtitholdsshouldbethe TheFedwillbuyinvestmentgradecor- Thechangeshadbeenduetocome announcedthat it would begin to buy above its NAV, the biggest premium same.So,iftheETFvaluedropsbelow poratebondswithamaturityoffive intoeffectbeforeUSmarketsopenedon corporate debt to quell the crisis — sincetheETF’screationin2002.Others thevalueoftheunderlyingbonds,APs yearsorless.Thecentralbank’sdecision Monday.Mostofthequarterlyindex including bond ETFs. And it picked mirroredthemove. canbuythecheaperETFsharesand to include ETFs in its purchases has rebalancingsdueattheendofMarch BlackRock,oneofthebiggestproviders exchange them for the underlying beentakenasanodtotheproducts’ willberescheduleduntilJune,itsaid. Whyarebigswingsaproblem? in the $1.1tn market, to manage the bonds. widespreaduseamongfundmanagers. PeterChatwell,headofmulti-asset purchases.ETFpricessurged. ETFsaredesignedtomimicthemarkets Whenconditionsarereversed,they Ithasalsobeenseenasapotential strategyatMizuho,saiditlookedlike theyclaimtotrack.Someanalystsand canbuythecheaperunderlyingbonds backdoorfortheFedtoinfluencelonger index providers were aware that, if Sowhatwentwrong? investors argue that the product is andturnthemintoETFshares.Mostof ‘Thisisnot datedcorporatedebtheldbytheETFs— institutions were forced to rebalance Corporatebondpricestumbledinearly fundamentallyflawedifitfailsatthat thetime,thisarbitragekeepsanETF’s extendingitsswayoverborrowingcosts. their portfolios in illiquid markets, anETF MarchbutfixedincomeETFsfelleven basictask—andnolongeraccurately priceanditsNAVinline. Someinvestorssaythemedicineis passive funds would have to sell the further, resulting in extraordinary reflectsthemovementsoftheunderly- dynamic alreadyworking.LQDhastakeninflows bonds which have just lost their Sowhenpricesdiverge,whichone discrepanciesbetweenthepriceofETFs ingsecurities. ofmorethan$1bneachdaythisweek, FastFT “investmentgrade”rating. iscorrect? occurring andtheirassets. The biggest fear is that this could accordingtoBloombergdata,whileits Ourglobal “In reality, however, this probably Forexample,thepriceofBlackRock’s causeinvestorstolosetrustinbond Fundproponentssaythat,despitegaps rightnow pricehasrebounded. teamgivesyou meansthattheadvantageisonceagain $35bn-in-assetsinvestmentgradebond ETFsentirely,pouringfuelonthefireof displayedontradingscreens,theprice ETFsare“likelymovingfasterthan market-moving withtheactivemanager.Activemoney butabond ETF—knownbyitstickerLQD—has asell-offintheunderlyingmarket. oftheETFisnothigherorlowerthan corporate bonds”, said Viktor Hjort, newsandviews, cansellthedowngradedbondsattheir historicallybouncedaroundwithin50 Whatstopsthisfromhappening? thetruevalueofthedebt.Instead,the market globalheadofcreditstrategyatBNP 24hoursaday discretionwhilepassivemanagerswill centspershareofits“netassetvalue”,or ETFsreflecttherealvalueanditisthe Paribas.“Ithinkwewillstarttosee ft.com/fastft beforcedtopostponeforamonth,”he dynamic’ thevalueofthebondsitholds. WhenETFpricesdriftfromthevalueof bondmarketthatisdysfunctional. somestabilityemerge.” said. Commodities Equities Orange juice price performance pips all Trading turbulence entices Japanese rivals as consumers dash for vitamins retail investors to dive into stocks EMIKOTERAZONO aroundforshippingtheproducttobuy- up24percentfromaweekagoto$1.277 LEOLEWIS—TOKYO Thesharpincreaseinnewaccounts, Kabu.comwereabouttwicetheaverage ers.” apoundinNewYork. saidanalysts,wastestamenttoJapanese paceduringMarch,saidaspokesman. Consumers fearful of contracting Marketturbulence,anoldinvestment Thejumpinorangejuicepricescomes Thecommodityhadsoldoffduring retailinvestors’penchantforcontrarian Rakuten Securities, Japan’s second- coronavirushavebeenboostingtheir proverbandorderstoworkfromhome evenasthemarkethasbeenlanguishing theearlystagesoftheviraloutbreakon trades.InthefirsttwoweeksofMarch, largestonlinebrokeragewith4mcus- immune systems the old-fashioned duetocoronavirushaveluredrecord amidariseinproductioninBrazil,the concernsoffallingdemandincafésand foreign funds sold a net ¥833bn tomers,expectedarecord130,000new way—byloadinguponorangejuice. numbersofJapanesepeopletoopen largestproducerandexporter,andFlor- coffeechainsbutanalystssaidthefocus ($7.5bn)ofJapanesesharesbutindivid- sign-upsinMarch. onlinetradingaccountsanddiveinto Frozen concentrated orange juice, ida,saidIHS. hadturnedtosecuringsuppliesamid ualsboughtanet¥726bn. Oki Matsumoto, chief executive of thestockmarket—inmanycasesfor traded in New York, is the best Onthedemandside,too,consump- risinglogisticalrisks. Mizuho Securities strategist Masa- Monex,saidtheonlinetradingplatform thefirsttime. performingofallcommoditiesthisyear, tionhasbeenwaningoverthepastfew “Everyone in the supply chain is toshiKikuchisaidanumberofmarket expectedabout8,000newaccountswill accordingtoBloombergdata,rising25 yearsasshoppersswitchtowaterand tryingtogettheirhandsonstock,”said ThesurgeofnewaccountsinMarch— adageshadreassertedthemselvesdur- havebeenopenedbytheendofMarch percentto$1.214apoundsincethestart otherdrinkswithlowersugarcontents. Carlos Mera, analyst at Rabobank, fourtimestheaveragemonthlyratein —roughlytwicetheaveragemonthly ofJanuary. Arabicacoffee,thehighergradebean, noting strong demand from importers the case of Matsui Securities — has ‘Japaneseinvestorshave pace.Ithasabout2maccountsbutonly USshoppershaverushedtostockup hasalsoexperiencedasharpupswing, androasters. broughtasmanyas250,000newinves- halfofthemtraderegularly. beenmarkedlycontrarian, onthestaple,analystssaid,asfearsover Ontheretailend,too,demandhas torsintothemarketacrossJapan’sfive “Becausethemarketdroppedoffa labourshortagesinfactoriesandtrans- been solid. In the UK, for example, largestonlinetradinghouses.Mostof havingnotbelievedin lot,therewerealotofpeoplewhosawit portationhavealsogivenpricesalift. consumershaveturnedtofuellingtheir thenewaccountholders,saidbrokers, as an opportunity,” said Mr Mat- theongoingbullmarket’ “There is plenty of orange juice caffeineaddictionbybuyingcoffeeand areagedbetween30and50yearsold. sumoto.“Alotofthemwerenewbut aroundbutit’sabitliketoiletpaper— beans from retailers. In the week to Thetemptationofbargainpricesin someofthemwerepeoplewhohadbeen there’s no shortage but people have March14,retailsaleswereup30per Japan’sstockmarket—thebenchmark ingthevolatilitycausedbythecorona- outofthemarketforalongtimeand beenrushingtobuyit,”saidNeilMurray centcomparedwiththepreviousyear Topixisdown20percentthisyear— viruspandemic. werecomingback.” at IHS Markit’s Agribusiness Intelli- andup8percentovertheprevious hasalsopromptedexistingonlinebro- Onebeliefamongretailinvestorsin Overthepasttwoweeks,retailinves- gence. week,accordingtoNielsendata. kerage customers to revive dormant Japanisthatamateurscanbeatprofes- tors’stocktradingvolumeshavebeen JackScovilleatcommoditybrokers Wholesale coffee buyers have accounts,triggeringadelugeofphone sionalsoveralongertimeframe.That abouttwoorthreetimeshigherthan Price Futures Group in Chicago said beenspookedbycallsamongportwork- callstohelplinesfromcustomersasking madethemnaturalbuyersduringthe average,accordingtothreebrokerages. priceshadbeenboostedbyworriesover ersinBrazil,thelargestproducerand howtoresetlong-forgottenpasswords. hugefallsearlierinMarch. Localinvestorsinrecentweekshave supply-chainglitches. exporterofcoffeebeans,tocloseports. SBI,Japan’slargestonlinebrokerage, “Japaneseindividualinvestorshave alsopiledintoso-called“hibernation” “Tradersarewonderingifworkersare While this has yet to materialise, saiditexpectednewaccountstohita beenmarkedlycontrarian,havingnot stocks,whichreflectsatheorythatthe aroundtomantheplantsinFloridaand companiesandimporterswerestocking record high of between 120,000 and believedintheongoingbullmarketfor spreadofthevirusmayconvincecorpo- inBrazil,”hesaid.“Inaddition,thereare Shoppershaverushedtostockupon upincasetheflowofcoffeedriesup, 130,000inMarch—orseveraltimesthe sometime,”saidMrKikuchi. rateJapantomakeitsstructuresmore not enough tankers or containers orangejuicesincethecrisisstarted saidanalysts. monthlyaverage. New account openings at AU accommodatingtotelecommuting. MARCH 27 2020 Section:Markets Time: 26/3/2020 - 18:19 User: stephen.smith Page Name: MARKETS1, Part,Page,Edition: EUR, 9, 1 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws 10 ★ FINANCIAL TIMES Friday27March2020 MARKETS & INVESTING Short-selling bans The day in the markets are handouts to Whatyouneedtoknow corporate socialists 3WallStreetheadingforthirdstraight European debt rallies after ECB removes limits on bond buying dayofgainsdespiterecordjoblessclaims 10-year yield (%) 3LooseningofECBbond-buyingrules Carson Block sendsyieldsoneurozonedebtlower 3Oilpricesretreatamidworriesover 2.5 plummetingdemandforcrude Markets Insight Globalstockscontinuedtorallyyesterday 2.0 aseffortsbypolicymakerstotackle Italian bonds Covid-19appearedtoovershadow worryingdatashowinghowthepandemic 1.5 T hereisonesure-firefeature theirlongpositionsintimesofextreme created by companies issuing huge wastakingitstolloneconomies. of crises — lawyers and movementsuchasthese,thehypotheti- amountsofdebttofundbuybacksand Notevenfiguresrevealingrecordhigh lobbyistsfrombigcompa- calinvestorabovemightsellpart—or takeovers.Shortshavewarnedforyears USjoblessclaimswasenoughtocurb 1.0 nies descend on capital all—ofitslongposition. aboutChina—andIhavepersonally appetiteforWallStreetstocks,which citiestotrytoenacttheir Iffurtherproofwereneededthatban- beenwarningaboutthepandemicrisk wereontrackforathirdconsecutiveday Spanish bonds clients’listsofprotectionistfantasies.So ningshortsisadumbidea,ithasbeen Chinaposesforoveradecade. ofrisesbymiddayyesterday. 0.5 ithasgonewiththerecentimpositionof shown empirically that restrictions Weseerisksbetterthanmostpolicy- TheS&P500indexclimbed4percent short-sellingbansinSouthKorea,Italy, imposesignificantcostsonmarkets. makersandinvestorsbecauseitisour despitemorethan3mpeoplefilingclaims France,Greece,Spainandothers. In2012,threeeconomistsattheFed- jobtoseerisk.Incontrast,thedeca- forunemploymentbenefitslastweekin 0 Notonlyarethesebanssolutionsin eralReserveBankofNewYorkpub- denceofthepost-crisisperiodsawsome theUS,accordingtodatareleasedbythe search of problems but, worse, they lishedtheresultsoftheirresearchinto ofthegreatestgainsflowtothosewho labourdepartment. Jan 2020 Mar harmmarkets. short-sellingbansimposedin2008and buriedtheirheadsinthesandandwil- “TheUSjoblessclaimsnumberisway, Manyofthesebigcompanies—letus 2011.Theyconcludedthat,notonlydid fullyoverlookedrisk. wayworsethantheconsensusestimate,” Source: Refinitiv call them corporate socialists, or thebanshave“littleimpactonstock Thisisthecrowdthattookitscue saidNeilBirrell,chiefinvestmentofficer CorpSocs—surelyunderstandthatthe prices”,butthatthey“loweredmarket fromex-CitigroupCEOChuckPrince: atPremierMiton.“Thatshowsthehuge vastmajorityofsellingduringthismar- liquidityandincreasedtradingcosts”. “Aslongasthemusicisplaying,you’ve shockthattheeconomyissuffering.” package,theaerospacegroupwas riseabove$1,600anounce,hitting$1,642 ketrouthasbeenfrominvestorswith gottogetupanddance.” The“numberswerealmostasawfulas reportedtobesignificantbeneficiary. yesterdaybutoilpricesretreated. longpositions. Short-sellingisakintothe Short-sellingisakintothefreedomof manyhadfeared”,addedSeemaShah, InEurope,thelooseningofrules Concernsaboutreduceddemandfor Itisalmostamusingtothoseofusin expressionandtheabilitytocriticisethe chiefstrategistatPrincipalGlobal curbingthecentralbank’sabilitytobuy crudehasbeenweighingonthesector freedomofexpressionthat theshort-sellercommunitythatany- powerfulthathasformedthebedrockof Investors.“Overthenextfewweeks, bondsfromsomecountrieshelpeddebt formonths.“Globalisolationmeasures bodythinkswehaveenoughcapitalto hasformedthebedrock ourdemocraciesfortwocenturies. joblessclaimnumberswillgiveusagood onthecontinentrally,reducingfinancing areleadingtoanunprecedentedcollapse putrealsellingpressureonthemarket. Inanerainwhichcompanies’massive ideaiftheUScanexpectaV-shaped costsfornationshithardestby inoildemand,whichwenowforecastwill ofourdemocracies Duringtherecoveryfromtheglobal legalbudgetsareoftenabletokeepreg- recoveryoraU-shapedrecovery.” coronavirussuchasItalyandSpain. fallby10.5mb/d[millionbarrelsaday]in financialcrisis,numerousshort-sellers ulatorsatbay,short-sellersareoneof Thetech-leaningNasdaqComposite Followingthenews,theyieldonSpain’s Marchandby18.7mb/dinApril,”said shutdownand,rightnow,thetwolarg- thefewforcesholdingshort-termist— rose3.7percentyesterdayandtheDow 10-yearbondfell30basispointswhile GoldmanSachs. estdedicatedshort-sellingfirmsinthe Sincethelastcrisis,theCorpSocsgot or even lawbreaking — management JonesIndustrialAveragegainedmore theequivalentItaliandebtslid35bp. Brentcrude,theinternational worldeachmanagemuchlessthan$2bn theirtaxbreaks,talkeduptheirstocks teamsaccountable. than5percent. Stocksintheregionalsostagedalate benchmark,sank3.9percentto$26.33a in assets. Contrast that to Fidelity andmadetheirmanagementteamsfab- InDecemberoflastyear,myfirmsaid GivingtheDowaliftwasastrong rallywiththecompositeStoxxEurope barrelwhileWTI,theUSmarker,tumbled Investments, which manages about ulously wealthy with representation NMCHealthwasafraud;ithassince bouncebackforBoeingstock.Within 600indexrising2.6percent. morethan8percentto$22.52abarrel. $2.5tnoflong-onlyassets. fromlawfirmslikeWachtell,Lipton, emergedthattheformerFTSE100com- Washington’sforthcomingstimulus Incommodities,goldaugmentedits RayDouglas Moreover, banning short-selling Rosen & Katz, where the partners’ pany has at least $4bn in concealed reducestheabilityoflargelong-biased hourly rates exceed some people’s debts. Our exposures of other listed investors to take risk, because it monthlyearnings. fraudshasledtosevendelistingsbyreg- Markets update removestheirabilitytohedge. Atthesametime,manyofthemcom- ulatorsovertheyears. Say,forexample,thatalong-biased plainedaboutshortsbecause,itseemed, Thosepushingforbansonshortsare investor with a strong belief in Fiat weweretheonlyoneswhosawthefolly driveneitherbywilfulignoranceora Chrysler’s ability to manage through oftheirshort-termistandselfishethos. desire to further entrench corporate US Eurozone Japan UK China Brazil thiscrisiswantedtoincreaseitsexpo- Nowtheirunbridledgreedisblowingup socialismastheoverarchingprincipleof Stocks S&P 500 Eurofirst 300 Nikkei 225 FTSE100 Shanghai Comp Bovespa surebyshortingabasketofrivalauto- andtheywantgovernmenthelpwhile ourcapitalistsystem.ThemoreCorpSoc Level 2593.48 1265.16 18664.60 5815.73 2764.91 77748.82 makers. stilltryingtomuzzlethosewhosejobit isallowedtodrivecapitalism,themore % change on day 4.76 2.37 -4.51 2.24 -0.60 3.73 Inthisway,theinvestorwouldbeable istoexposewhatliesbeneath. voterswillturnagainstcapitalism. Currency $ index (DXY) $ per € Yen per $ $ per £ Rmb per $ Real per $ toneutralisemuchofthe“beta”,ormar- Investors,however,benefitfromthe Level 100.263 1.083 111.435 1.176 7.100 5.057 ketmovements,ofitspositioninFiat awareness of risks that short-sellers CarsonBlockisanactivistshort-sellerand % change on day -0.779 0.000 0.000 0.000 0.000 0.000 Chrysler.However,ifyoutakeawaythe provide.Short-sellershavewarnedfor thefounderandchiefinvestmentofficerof Govt. bonds 10-year Treasury 10-year Bund 10-year JGB 10-year Gilt 10-year bond 10-year bond abilityoftheselonginvestorstohedge years,forexample,aboutthefragility MuddyWatersCapital Yield 0.814 -0.366 0.003 0.395 2.682 7.855 Basis point change on day -1.290 -10.100 -2.890 -4.500 -0.100 -141.900 World index, Commods FTSE All-World Oil - Brent Oil - WTI Gold Silver Metals (LMEX) Level 291.14 26.38 22.81 1605.45 13.97 2297.80 % change on day 3.22 -4.11 -5.78 -0.02 2.50 0.89 Yesterday's close apart from: Currencies = 16:00 GMT; S&P, Bovespa, All World, Oil = 17:00 GMT; Gold, Silver = London pm fix. Bond data supplied by Tullett Prebon. Main equity markets S&P 500 index Eurofirst 300 index FTSE 100 index 7680 3840 1920 6400 3200 1600 5120 2560 1280 1920 | | | | | | | | | | | | | | | | | | | | 960 | | | | | | | | | | | | | | | | | | | | 3840 | | | | | | | | | | | | | | | | | | | | Jan 2020 Mar Jan 2020 Mar Jan 2020 Mar Biggest movers % US Eurozone UK Occidental Petroleum 21.00 Natixis 23.13 Rentokil Initial 17.47 Synchrony Fin 18.97 Airbus 20.46 Legal & General 14.89 ps Carnival 17.97 Safran 12.12 Standard Life Aberdeen 14.62 U Coty 17.19 Ucb 10.47 Meggitt 13.49 Valero Energy 17.05 Gecina 10.25 Ashtead 13.07 % Viacomcbs -5.94 Klepierre -8.02 M&g -6.58 Jm Smucker (the) -2.84 Publicise -6.05 British Land -3.77 s n w Carmax -2.54 Telecom Italia -4.96 Royal Bank Of Scotland -3.11 o D Analog Devices -2.45 Ses -4.63 Bhp -3.09 Tyson Foods -2.20 Telefonica -3.90 Royal Dutch Shell -3.06 Prices taken at 17:00 GMT Based on the constituents of the FTSE Eurofirst 300 Eurozone All data provided by Morningstar unless otherwise noted. Wall Street Eurozone London BoeingandtheairlinesledUSmarkets Umicoremissedoutonanafternoon RentokilInitialledtheFTSE100gainers towardsathirdstraightgainaftertheUS marketrallyaftertheBelgianspecialist onthebackofaGoldmanSachsupgrade Senatevotedthrougha$58bnrescue chemicalsgroupcancelleditsdividend to“buy”. packagefortheaviationindustry. andwarnedthatautocatalystplants Wednesday’sprofitwarningfromthe CarnivalandRoyalCaribbeanCruises, outsideAsiahadbeenclosedtemporarily. pestcontrolspecialistgaveinvestorsan amongtheyear’sworstperformers,also Analystssaidtheproductionlineswere attractiveentrypointforabusinessthat rebounded,eventhoughitwasnotclear providingaboutaquarterofgroupsales waslikelytoemergestrongerfromthe immediatelywhetherthecruiseindustry andworriedthattheshutdownmay currentcrisis,thebrokersaid. wouldbeeligibleforfederalaid. affectUmicore’srechargeablebattery Recentsterlingweaknesswasa “Wethinkcruiselineswillsurvivethe materialsbusiness,whichiswidely positiveforearningsyettheshareswere Covidcrisisfromanoperationaland expectedtobeitsmaingrowthdriver tradingatasignificantdiscountbothto liquidityperspective,eitherwithexisting beyond2022. theirhistoricalvaluationandthoseofUS fundingorfuturestimulus,”said UBSestimatedthatUmicorehad peersRollinsandServiceMaster,itsaid. Macquarie,whichsawrebuilding enoughliquiditytopayfixedcashcosts BarrattDevelopmentsledarallyfor customerconfidenceasthebiggest forayearifoperatingcashflowfellto thehousebuildersafterbeingaddedto challengefortheindustry.“[G]iventhe zero. BankofAmerica’s“buy”list. operatingcashflowpictureforthesector, Thebiggestfallersinrecentweeksled Theparalysisinthehousingmarket exportcreditfinancingalreadyinplace thewayyesterdayinthewidermarkets wouldcutsectorearningsby28percent fornewbuildsandastronglyoversold withFrenchbankNatixisleadingthe thisyearandmakedividendsuncertain positiontoday,cruiselineshareshave StoxxEurope600gainersascredit butbalancesheetsshouldbesecure,said substantialupside.” qualityfearseased. thebroker,whichalsoadvisedbuying HealthcaredistributorHenrySchein Airbusfolloweditsstate-assistedUS PersimmonandTaylorWimpey. gainedaftersayingithadstarted peershigher,evenaftersayingitwas BritishLandslippedaftersettingout deliveringCovid-19pinpricktests. cuttingwingproductionforthenext thetermsofrentholidaysforitstenants Bristol-MyersSquibbclimbedafterthe threeweeks. atacostof£43m,orabout8.5percentof FoodandDrugAdministrationapproved Thejetmakerwashelpedbyareport theannualisedtotal. itsmultiplesclerosistreatmentZeposia, thatGermanymayorderasmanyas90 SmallerpeerCapital&Countiesedged whichwasakeyassetacquiredlastyear Eurofighterjets,whichalsobuoyedkey higheraftersuspendingasharebuyback aspartofits$74bnCelgenetakeover. supplierssuchasSafran. butmakingnoreferencetoitsdividend. ViacomCBSslidafterparentcompany Renaultroseamidspeculationthat Intu,theshoppingcentredeveloper, NationalAmusementswasforcedto Mitsubishimighttakeastake. slippedtowardsarecordlowafter amendborrowingtermsduetoafallin Valora,theSwissoperatorofretail warningthatbyWednesdayithad sharesofthebroadcasterthatithad kiosks,fadedafterunexpectedly receivedjust29percentofrentduethis pledgedascollateral.BryceElder scrappingitsdividend.BryceElder quarter.BryceElder MARCH 27 2020 Section:Markets Time: 26/3/2020 - 18:51 User: stephen.smith Page Name: MARKETS2, Part,Page,Edition: EUR, 10, 1
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