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Tuesday update

DB Live: English shops reopen; air bridges; Wyman Gordon

10.30pm: US close – Nasdaq hits new record

The S&P 500 and Dow both slipped back after recent strong gains as focus shifted to the Federal Reserve, while the Nasdaq ended at an all-time high for a second straight day after briefly rising above the 10,000 mark for the first time.

No major policy announcements are expected from US central bank’s two-day meeting but investors will be keen to hear its take on the state of the economy, which has been reopening.

The Dow Jones Industrial Average fell 300.14 points, or 1.09%, the S&P 500 lost 25.21 points, or 0.78%, while the Nasdaq Composite added 29.01 points, or 0.29%.

7pm: Retailers can open in England

Retailers in England can open from next Monday (15th) as long as they follow safety guidelines, or they could face enforcement notices, said Business Secretary Alok Sharma.

He said pubs, bars, restaurants and hairdressers will not be able to reopen until 4 July “at the earliest”, dismissing a report that they could open on 22 June..

In Northern Ireland, all shops are allowed to open from Friday. No dates have been set for the reopening of non-essential shops in Scotland and Wales, although each country has set out its planned stages for lifting lockdown.

4.45pm London closes lower

Markets took a dose of economic reality, falling around the world following recent gains. The FTSE 100 closed 136 down (2.12%), at 6,335.

4.30pm: Gatwick to reopen terminal

Gatwick will reopen the North Terminal and increase its operating hours next week as it prepares for welcome more flights.

The UK’s second-busiest airport said it had installed sanitiser stations and protective screens throughout its buildings and introduced regular deep cleaning and physical distancing measures to protect passengers and staff.

4pm: Debenhams closes three more stores

Troubled department store chain Debenhams is to close stores at the Gateshead Metrocentre and in Milton Keynes and Watford

2.45pm: Wall St opens lower

The US markets opened lower as investor enthusiasm was dampened after Monday’s highs.

Shortly after the opening bell, the Dow Jones Industrial Average fell 1.28% while the S&P 500 slipped 1.08% and the Nasdaq, which yesterday declared it was in bull market territory, dropped 0.6%.

Traders were questioning the market’s optimism against the economic backdrop. The Fed will deliver its latest economic forecast tomorrow.

In London, the FTSE 100 was down 116 points at 6,356.

2.30pm: Quarantine ‘to end on 29 June’

Ryanair

A tourism lobby group says it has been assured that travel corridors allowing unrestricted movement between Britain and some other countries will open from 29 June.

Quash Quarantine, representing 500 travel and hospitality firms and fighting the recent 14-day isolation order, said senior government sources had said the new restriction would be lifted at the end of the month.

The group continues to look at legal options, including joining a British Airways-led challenge to the government’s new rule.

Travel corridors between countries would mean remove the need for passengers to self-isolate for a fortnight upon arrival which some in the industry, including Michael O’Leary of Ryanair, say is unworkable and economically damaging.

11.15am: Charity crisis

Supporting charity donated pic

Charities are facing a cash crisis with some saying they could see their reserves drained in the next three months.

Full story here

11am: Cyber deal for law firms

The Law Society of Scotland has agreed a strategic partnership to boost cyber security and resilience for law firms.

Full story here

10.45am: Wyman-Gordon job cuts

Wyman Gordon is the latest firm affected by the aviation crisis and is cutting 72 of its 187-strong Livingston workforce.

It is blaming a significant drop in orders due to the crisis facing the aerospace and aviation industries. The firm has a long history of making forged metal components, particularly for the aerospace industry.

The Texas-based company has cited a substantial drop in orders from Rolls-Royce, and Pratt and Whitney, which supply Airbus and Boeing.

As part of the restructure the company is reviewing the existing terms and conditions of the remaining employees at the factory.

Trade union Unite has strongly criticised the decision by Wyman Gordon not to continue using the UK Government’s Job Retention Scheme beyond 29 June, and to issue redundancy notices.  

Unite is campaigning to get the Scottish and UK Government to bring forward sector specific support packages for the wider aviation, aerospace, and manufacturing sectors.

10am: Omega shares down

Shares in Omega Diagnostics fell more than 14% after the firm announced a new supply agreement, but also said it was taking a chunky impairment charge for withdrawing an allergy product.

Full story here

8.15am London open

The FTSE 100 opened lower this morning, despite expectations it would follow Wall Street and Asian markets which both rose.

The S&P 500 ended Monday 1.2% up to wipe out all losses for the year so far.

Asian stocks extended their gains for the ninth consecutive session, as the lifting of lockdown of measures fuelled investor hopes of a relatively quick global economic recovery. 

In early trade the FTSE 100 was 25.44 points lower (0.39%) at 6,447.15 as insurers and banks were marked down and British American Tobacco disappointed with its emerging markets performance.

7am Bellway sees sales restrained

Bellway

Bellway said it expects year-on-year sales activity to be “severely constrained” until a time when ‘lockdown’ restrictions are further lifted. 

Full story here

Omega signs Covid test agreement

Omega Diagnostics has shipped its first Covid-19 testing kits and has signed an agreement with Mologic which will supply raw materials to build the kits.

Full story here

Today’s top Daily Business stories

Sturgeon urges caution as NI and England reopen

Tech firms confident of navigating Covid crisis

Virgin Money’s ‘touch-free’ office of the future



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