NYSE re-opens trading floor for first time since pandemic closure – business live

Investors will be cautiously celebrating another milestone this morning on Wall Street.

The S&P 500 has pushed above 3,000 points and is also above the 200-day moving average for the first time since 5 March this year, according to Reuters.

Traders have officially re-entered the physical trading floor at the New York Stock Exchange this afternoon(albeit with precautions) after staying away for two months during the global pandemic.

New York Governor Andrew Cuomo rang the opening bell, in what would have looked like an apocalyptic scene less than six months ago

Meanwhile, major US indices jumped at the open:

• Nasdaq is up 1.8%
• S&P 500 is up 2.1%
• Dow Jones is up 2.4%

Here were some of the scenes around the New York Stock Exchange this morning as traders prepared to enter the live trading floor for the first time in two months.

Checking back in with European shares, the FTSE 100 has pared some of its gains but is still up around 1.1% at 6,060 points.

The more domestically-focused FTSE 250 is rallying, up around 3.2%, with TUI up a whopping 45%. Like the blue chip index, the FTSE 250 is edging closer to intraday highs last seen at the end of April.

On the continent, the French Cac 40 is up 1.2% while the German DDax is up 0.9%. Italy’s FTSE MIB is up 1.5%.

The International Air Transport Association (IATA) has said that more airlines may fail due to an increase in debt taken on during the Covid-19 crisis.

The organisation said that airlines will exit the crisis with around $120bn worth of debt and only around $30bn in new equity.

In total, it said governments worldwide have given $123m in support to airlines during this period, mainly in the US and western Europe.

However, it took a swipe at some government travel restrictions, saying that tit-for-tat quarantine measures are unacceptable and that border measures should be driven by science, Reuters reported.

The travel industry has hit out at measures introduced by the UK, which will require incoming travellers to quarantine for 14 days or face a £1000 fine.

With just over an hour to the US open, futures suggest American stocks will extend the gains seen across Asia and Europe today:

• Dow Jones futures are up 1.9%
• S&P 500 futures are up 1.7%
• Nasdaq futures are up 1.5%

We now have the official response from McLaren on those 1,200 job cuts.

The company says that it has been “severely affected by the current pandemic” and that the cancellation of motorsport events, suspension of manufacturing and retail, and a drop in demand for tech have impacted its revenue streams.

Executive chairman Paul Walsh added that:

It is a course of action we have worked hard to avoid, having already undertaken dramatic cost-saving measures across all areas of the business. But we now have no other choice but to reduce the size of our workforce.

This is undoubtedly a challenging time for our company, and particularly our people, but we plan to emerge as an efficient, sustainable business with a clear course for returning to growth.

Supercar maker McLaren is set to cut 1,200 jobs or around 25% of its 4,000-strong workforce, according to Sky News.

The Surrey-based company is expected to partially blame the F1 cost cap for prompting its restructuring plans, which come as the firm tries to raise £275m from investors.

McLaren’s executive chairman Paul Walsh said it was “undoubtedly a challenging time for our company, and particularly our people, but especially those whose jobs may be affected”

“It’s the difference between [takeaway] delivery and going to a restaurant, where you can look at the menu and talk to the waiter about the specials,” floor trader Steve Grasso told the Washington Post last month.

“You get your food either way. But you get an inferior experience if you don’t go to the restaurant.”

My colleague Simon Goodley dives into the significance of the NYSE’s trading floor re-opening today. You can read more here:

The New York Stock Exchange will re-open its trading floor this afternoon after closing for nearly two months due to the Covid-19 outbreak.

However, the return of open outcry trading at the NYSE will not be business as usual. Safety concerns mean only 25% of the normal numbers of brokers will be back on the floor, and they will have to wear masks and follow strict physical distancing rules.

Everyone on the trading floor has also been told to avoid public transport. All visitors will also be screened and and have their temperatures taken as they enter the building. Those that don’t pass won’t be allowed to enter until they they test negative for Covid-19 or self quarantine under federal guidelines.

There will also be a daily cleaning and sanitisation schedule across the trading floor.

A few more points to highlight from the CBI retail survey:

On jobs:

• 53% of retailers have temporarily laid off staff, an increase from April

• The proportion of job cuts remained unchanged at 8%, but headcount is expected to fall at a similar pace next month

• Overall employment growth dropped at the fastest pace in a decade in the year to May

On supply disruptions worsening since April:

• 58% reported shortages of some goods
• 64% reported increased cost pressures
• 44% reported shipping delays

CBI chief economist Rain Newton-Smith said:

The retail sector is at the sharp end of a crisis, with many businesses up against it. The government’s support packages are making a real difference, with more shops reporting that jobs have been furloughed, rather than lost. The furlough system will need to adapt as more businesses open their doors in the months ahead.

As we gradually reopen the economy, retailers may yet need more support from the government if demand falters. Ensuring safety in the workplace remains the top priority, as more firms look to bring staff back to work. Many challenges remain in managing supply chains and costs in a tough environment.

Dataflash: The CBI retail survey out this morning shows that retail sales volumes remained “deeply depressed” in the year to May with a balance of -50%.

However, that is a slightly slower decline than in April, when volumes fell to -55%. Volumes are also expected to fall at a slightly slower, “but historically fast” pace next month, the survey showed.

Some other findings include:

The Bank of England’s chief economist Andy Haldane has said that the central bank is not even remotely close to making a decision on whether to cut rates below zero.

Speaking as part of a webinar organised by the Confederation of British Industry, he explained that the Bank would have to take key issues into consideration, including the consequences on the financial sector (with banks relying on income from interest) and confidence in the economy.

Haldane also said that the UK economy likely shrank by more than 20% in the second quarter, but that data was coming in just a shade better than the Bank of England scenario, according to Reuters.

He pointed to surveys showing some stabilisation and a very modest recovery in spending and business sentiment, yet warned that there would be a period of prolonged caution by individuals and companies coming out of the lockdown.

Newsflash: Accounting watchdog the Financial Reporting Council has launched an investigation into KPMG and PwC over the audits of haulage firm Eddie Stobart.

The FRC said it was linked to audits for the years ending 30 November 2017 (conducted by KPMG) and 30 November 2018 (which were done by PwC).

The investigations will be led by the FRC’s Enforcement Division under the Audit Enforcement Procedure, it added.

Last summer, Eddie Stobart shares were suspended trading of its shares after an accounting investigation found its profits were overstated by £2m in 2018. Months later, it was bailed out by its former owners, saving it from potential bankruptcy right before Christmas.