Norwegian Air cancels 3,000 flights and axes staff
Norwegian boss says it's a 'critical time' for airlines
Korean Air fighting for 'survival'
'Extraordinary support measures' needed for travel firms
Get in touch: bizlivepage@bbc.co.uk
Image source, NorwegianAirline Norwegian has cancelled around 3,000 flights over the coming months due to a drop in demand because of the coronavirus.
It will also temporarily layoff "a significant share" of its workforce in response to the fall in bookings.
Image source, Getty ImagesTravel industry body ABTA is calling for the government to consider "extraordinary support measures" for businesses operating in the UK’s travel and tourism sector given the impact of the coronavirus outbreak.
Firms in the sector are being hit hard as some routes are withdrawn, and with many individuals and businesses seeking to avoid travel.
ABTA chief executive Mark Tanzer, said: “As the outbreak of coronavirus develops, travel businesses are under increasing pressure.
"They cannot wait to see what may happen in the months to come, we are asking the government to act now in taking steps to protect them."
Image source, Getty ImagesThe price of oil has continued to climb this morning, regaining more of the ground lost during Monday's crash.
Brent crude is now up by nearly 10% at $37.64 a barrel, while US WTI crude is also nearly 10% higher at $34.15.
Image source, Getty ImagesBarclays has announced support measures for business customers who have been affected by the coronavirus outbreak.
It is offering 12-month capital repayment holidays on existing loans over £25,000, and will also offer extended or new overdraft facilities.
"Our network of relationship managers has been reaching out to SMEs across the UK to see if they require additional support during this time, as we do regularly when we see any events which may have an impact on our clients," said Ian Rand, chief executive of Barclays Business Banking.
"Barclays is ready to help, whether that's with managing cash-flow or any other support, and we encourage any customer who needs guidance to call us or contact their relationship manager."
Image source, Getty ImagesAn RBS spokesperson said: “We are monitoring the potential impact of Coronavirus across all our customers to ensure we can support them appropriately through any period of disruption.
"We have a strong track record in working with our customers who are affected by disruption outside of their control.
"We also have operational resilience plans in place that reflect guidance from Public Health Authorities to ensure we can continue to serve our customers.”
The bank said it was providing the following support for personal customers:
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It's a day of mixed fortunes for the pound.
It is currently up 0.5% against the euro. So, £1 is now worth €1.1498.
But the pound is down 0.4% against the dollar with £1 worth $1.3050 at present.
The FTSE 100 is now up 3.7%, recovering some of the ground lost in trading yesterday when the index lost almost 8% of its value.
The FTSE 250 is also up by 3.3%, undoing some of the harm done yesterday when it plunged by 6.4%.
A Halifax call centre in Belfast Gasworks has been temporarily closed over coronavirus, Lloyds Banking Group has said.
Lloyds said it will "allow for the appropriate areas of the site to be cleaned, after a colleague based there was diagnosed with Covid-19".
"Our priority is the wellbeing of the individual, as well as the colleagues and visitors to the building."
It is understood about 1,000 people work in the building.
BBC Radio 5 Live
Hays Travel, the Sunderland-based firm that bought the collapsed Thomas Cook, has told 5 live a recruitment freeze is likely to be put in place after a dip in bookings following the outbreak of coronavirus.
Co-owner and managing director John Hays said the move would be "temporary" but added: "It's very important that we match the volume of income against costs, that's what we do."
"We've been a resilient industry and company, so we know we need to be realistic, so various options are under consideration."
In November, the firm said it would hire an extra 1,500 staff including 200 for at its head office in Sunderland, 500 to handle foreign exchange and an apprentice for each of its 737 branches.
Mr Hays' wife, co-owner Irene, said: "The business was developing incredibly well until February 22nd and now the position is a little more mixed. We're still enthusiastic, we will look at the business on a day-to-day basis.
"We're very fortunate to have the Thomas Cook acquisition and some very experienced travel consultants who know what they're doing in these circumstances."
Dominic O'Connell
Business Presenter, BBC Radio 4 Today programme
Some investors will think that yesterday's panic was an over-reaction, and that some shares now look cheap.
That would explain the rise this morning of Tui, the holiday company, and the small gains shown by Royal Dutch Shell and BP. The seesaw pattern of trading is nothing new.
One of the curious features of bear markets, where prices fall more than 20% from their peak, is that they normally contain several one-day rallies within the overall fall.
That has been a feature of US and UK bear markets since the crash of 1929, and has already been part of the pattern of trading since the coronavirus struck.
Today's rally could easily be followed by another fall.
The former Chancellor says his successor was right to resign
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BA is not the only airline to cancel flights to and from Italy.
Norwegian Air has temporarily halted flights to Italy because of the coronavirus outbreak and Easyjet has canceled the majority of flights in and out of Italian airports for the coming days.
“Following the latest decree issued 9 March by the Italian authorities implementing further restrictions for the whole of Italy, easyJet is currently reviewing its scheduled programme between 10 March and 3 April," Easyjet said in a statement.
"The majority of flights to and from Milan Malpensa, Milan Linate, Venice and Verona have been cancelled for the coming days and affected customers are being advised of their options by email and SMS which include rebooking and refunding.”
Image source, AFPBritish Airways has cancelled all today's flights between Italy and the UK after the Foreign Office warned against all but essential travel to the country over coronavirus fears.
"In light of the Italian Government's announcement and the UK Government's official travel advice, we have contacted all customers who are due to travel today," BA said in a statement.
"We have updated our policy to give customers more options and flexibility. Any travellers due to fly to or from Italy between now and April 4 can rebook to a later date up until the end of May, move their destination to Geneva or Zurich or receive a full refund."
Image source, Getty ImagesAfter falling as much as 30% on Monday, oil prices have seen some recovery, with Brent crude rising by more than 5%.
A fallout between major oil exporters Russia and Saudi Arabia - who are locked in a dispute over output levels - sparked a stock market meltdown yesterday.
Russia shocked oil markets by leaving a pact with oil-exporting group Opec, leading to a 30% plunge down to around $31 a barrel.
Flexing its muscles, Russia's finance ministry said the country could withstand low oil prices for as long as a decade.
The sharp drop in oil prices unsettled investors already reeling from a global economic slowdown caused by quarantine measures to fight the spread of the coronavirus.
Image source, Getty ImagesThe market outlook for 2020 is "turbulent", the boss of UK asset manager Standard Life Aberdeen has said.
In a statement to markets, external on the firm's 2019 results, chief executive Keith Skeoch said:
"The outlook for the markets and our industry in 2020 is turbulent with the additional complexity of COVID-19. Importantly we are focused on what we can control, namely delivering for our clients, customers, colleagues and shareholders; diversifying our revenues; investing for the future and maintaining financial discipline."
The firm made a profit before tax of £243m compared with a loss of £787m the year before.
The FTSE 100 has continued to recover ground in the first hour of trading in London.
The index was up more than 2.8% at around 09:00, however it is not enough to undo the losses of yesterday when the value of shares plunged by almost 8%.
The FTSE 250 is up by 2.2% after losing 6.4% yesterday.
Today Programme
BBC Radio 4
Image source, EPAChancellor Rishi Sunak (pictured) is "in a difficult position because he's trying to deliver a Budget against a backdrop of dramatic action in the markets and a real-time unfolding situation" says former Chancellor Philip Hammond.
"He's got to balance the obvious desire to do something and to be seen to be doing something with a certain caution that we don't know where this is going yet, and the key thing is to have reserves of firepower so that he can continue to respond."
So what is he likely to do? Mr Hammond says he will probably emphasise that there is also a Spending Review and a second Budget this year, and that Mr Sunak will say he will come back to he House of Commons and make a supplementary statement if and when needed.
"He will want, and I would strongly advise, that he announces immediate short term measures to ease the cash-flow pressure that many small businesses will be feeling, and indeed some larger businesses, for example by postponing deadlines for payment of VAT, National Insurance and PAYE deductions, to help businesses that are facing a cash emergency now."
He says the challenge for the Chancellor is that this is a "classic demand-deficit problem where the economy just needs a bit of stimulus so people go out and spend more money."
"The problem here is primarily one of supply. If people can't get to work, goods and services aren't being produced, and you can't solve that problem just by putting more demand into the economy."
Image source, Getty ImagesEuropean stocks partially recovered this morning after share prices plunged yesterday in the worst day on financial markets since the depths of the financial crisis.
In Paris, the Cac 40 index was trading up 1.2% and Germany's Dax was 0.7% higher.
The pan-European Euro Stoxx 50 was up 1%.
Today Programme
BBC Radio 4
How great are the chances of coronavirus putting the UK economy into recession, former Chancellor Philip Hammond is asked?
"Well, it's bound to cause a slowdown in economic growth," he says. "The government's challenge, the Chancellor's challenge, will be to try to support the economy in a way that avoids a slowdown, tipping over into recession."
He points out that a recession is defined as starting after two quarters of negative economic growth, and "we don't know yet how long the virus epidemic is going to last, how deep it's going to be".
"So it may well be that economic growth slows down quite sharply, but then recovers quite quickly when the epidemic is over."