Weekly review

The FTSE 100 ended the week down 167.42 points at 5,156.33.

Equity view

Wetherspoon cancelled its interim dividend and warned on full year profits as the coronavirus and government advice to stay away from pubs and restaurants hit current sales.

Frasers Group issued a profits warning on Friday and scrapped future guidance as it expected the Covid-19 crisis to cause “significant disruption” to sales.

Asset manager Investec said on Friday that full-year profit was expected to decline on the year as it takes an added hit from the coronavirus outbreak.

Building materials group Travis Perkins suspended its full year dividend, postponed the planned demerger of its Wickes DIY unit and scrapped future guidance as it braced for the impact of the coronavirus.

Auto Trader Group issued an unscheduled update on Thursday morning, as a result of the Covid-19 coronavirus pandemic, saying that the UK car retail market was facing “unprecedented levels” of uncertainty.

Aerospace and defence engineering company Meggitt updated the market on its trading, and its financing and liquidity position on Thursday, reporting that in light of the Covid-19 coronavirus pandemic and its impact on the global economy and the aerospace sector, its focus in recent weeks had been on ensuring the safety of its employees and the continuity of our operating businesses worldwide.

Next boss Simon Wolfson called on the government to help pay wages for shop workers whose stores are forced to close as the retailer said it was prepared to lose up to £1bn in annual sales because of the coronavirus pandemic.

Gambling software company Playtech updated the market on the impact of the Covid-19 coronavirus pandemic on Thursday morning, explaining that given the “uncertainty and rapidly changing nature” of the situation, it was working to protect its cash flow by proactively managing its capital expenditure and working capital, as well as identifying opportunities for cost savings that would not impact its long-term success.

Marston's said it expected lower sales and was unlikely to pay a dividend this year as it tried to save cash to protect its balance sheet from the impact of the coronavirus and government advice for people to avoid pubs and restaurants.

Micro Focus said on Wednesday that it had not yet seen any material impact from the coronavirus outbreak but that it was scrapping its final dividend to prepare for any potential fallout.

Pub group Mitchells & Butlers warned on profits due to the government advice to avoid pubs and restaurants in an effort to combat the coronavirus.

Irish convenience food group Greencore said on Wednesday that it was trading broadly in line with expectations despite the Covid-19 outbreak and that it was committed to "keeping the UK fed" during the crisis.

Plumbing and heating company Ferguson posted a dip in first-half pre-tax profit on Tuesday due to exceptional charges and said its UK demerger was on track for completion this year.

Food services company Compass Group said it expected interim operating profit to be up to £225m lower due to the coronavirus.

Stobart said talks to sell a stake in its Southend airport site had been put on hold because of the coronavirus pandemic.

Polypipe reported a rise in full-year profit and revenue on Tuesday despite "challenging markets" as it said it has not seen any direct impact to date on its performance from the Covid-19 outbreak.

TUI said on Sunday that it was applying for state aid guarantees as it suspended the vast majority of its travel operations and withdrew 2020 guidance due to the coronavirus.

Primark owner Associated British Foods said it had seen an accelerated decline in sales in its European stores as they were either closed or customers stayed away due to the coronavirus despite an improvement in supplies from China.

Paddy Power Betfair owner Flutter Entertainment said on Monday that it could take a hit of up to £110m to earnings if sports fixing restrictions due to the coronavirus remain in place until the end of August.

IAG chief executive officer Willie Walsh will temporarily postpone his retirement as the company rides out the turbulence from the coronavirus epidemic.

Economic news

The Bank of England said it had cancelled its annual stress tests for major banks to help them focus on lending during the coronavirus crisis.

The Competition and Markets has launched a Covid-19 taskforce to keep an eye on retailers who are overcharging for in-demand products such as hand sanitiser and loo roll during the virus outbreak.

The government faced mounting pressure on Thursday to pay people unable to work because of the coronavirus crisis.

The Bank of England has cut interest rates to 0.1% - the lowest level in history - from 0.25% as it looks to limit the economic fallout from the coronavirus pandemic.

Britain's £350bn coronavirus aid package to the retail, leisure and hospitality sectors would not save jobs and did not go far enough, analysts warned on Wednesday.

The pound has tumbled to lows not seen since the shock Brexit referendum result in 2016, as the coronavirus pandemic prompts a "synchronised rush" to buy up dollars.

UK employment remains at a record high, despite the unemployment rate creeping up for the first time since 2012, official data showed on Tuesday.

The UK's pub industry warned it faced an existential crisis and could be lost in "days" after the government advised people to avoid bars and restaurants to combat the spread of coronavirus.

House prices hit a fresh high in February, data published on Monday showed, as consumer confidence improved following last year’s decisive general election.

Transport for London warned it was looking at a loss of passenger income in the order of half a billion pounds on Monday, saying it would need to ask the government for help.

International events

Economies around the world have some tough choices to make in the face of the Covid-19 coronavirus pandemic, if the experience of China is anything to go by, the International Monetary Fund (IMF) said on Friday.

The European Central Bank launched a new emergency bond buying programme, vowing to do "as much as necessary and for as long as needed".

German business sentiment deteriorated significantly in March amid concerns about the coronavirus, according to a widely-followed survey released on Thursday.

The International Air Transport Association (IATA) said up to $200bn could be needed to save the industry globally and called for governments in Africa and the Middle East to provide emergency support for airlines hit by the Covid-19 crisis.

Oil prices have taken a fresh pounding, as the growing global lockdown and souring of relations between Saudi Arabia and Russia weigh heavily.

An initial assessment of the impact of COVID-19 on the global workforce by the International Labour Organization said the effects could lead to almost 25m job losses.

German investor sentiment deteriorated in March amid concerns about the Covid-19 pandemic, according to the latest survey from the ZEW Center for European Economic Research in Mannheim.

Industrial production in the States grew more quickly than expected in February despite weakness in the mining sector.

Economic activity in China registered its first outright contraction in over three decades at the start of 2020.

Manufacturing activity in the New York jurisdiction deteriorated sharply in March, posting its worst one-month drop on record to the lowest level since 2009, according to data released on Monday.