Rolling coverage of the latest economic and financial news, as the prospect of new restrictions to combat rising Covid-19 cases hits the FTSE 100
- Latest: FTSE 100 down 2.3% at two-week low
- Rolls-Royce and IAG slump 10% on lockdown fears
- Whitbread, Intercontinental Hotels and Wetherspoons fall
- Introduction: Markets fear fresh restrictions
- Scientists: UK is at a tipping point
Bank shares have also been hit by a new investigation into how the financial sector allows organised criminals, corrupt politicians and terrorists to launder money across the globe.
The probe is based on leaked documents which show that more than 2,100 suspicious transactions worth more than $2tn had been flagged by banks as suspicious.
Thousands of documents detailing $2tn (£1.55tn) of potentially corrupt transactions that were washed through the US financial system were leaked to an international group of investigative journalists.
Media reports were based on more than 2,000 leaked suspicious activity reports (SARs) filed by banks and other financial firms with the US Department of Treasury’s Financial Crimes Enforcement Network (FinCen).
HSBC falls to a 25-year low Monday. Here’s how that looks also just in case, some hit songs at that time to underscore how long it’s been since the share price was at this level. pic.twitter.com/8HBekiflxI
Fresh lockdown restrictions would deal a crushing blow to hopes of a V-shaped economic rebound from the Covid-19 slump.
Instead, it would force politicians to consider fresh ways to protect the economy and save jobs, or suffer a new downturn.
“With no confirmed vaccine for the coronavirus as autumn approaches, there is likely to be additional strain on government resources as they attempt to stave off a second wave, as the colder weather inevitably brings further cases to contend with.
Prospects for a sharp economic recovery have all but disappeared, as global growth receives the new threat of a resurgent pandemic. In addition, with talks for a further fiscal stimulus in the US seemingly in deadlock, investors have been choosing to vote with their feet over recent trading sessions given the deteriorating outlook.
In the UK, the pandemic also continues to add to concerns for general economic health, including the hospitality sector where further lockdowns would pile on additional pressure. The end of the furlough scheme will likely lead to another spike in unemployment and Brexit negotiations are at a critical point. The FTSE100 is now down 22% in the year to date.