Coronavirus: Retail, advertising and travel stocks plunge in response to impending lockdown | Economic news

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Retail, advertising and travel stocks have plunged in response to the impending coronavirus lockdown in England.

While the FTSE 100 has recovered some ground lost last week in the middle of the spread of fees COVID-19[feminine[feminine restrictions across Europe’s largest economies, sectors exposed to the tightening activity Boris Johnson announced on Saturday have suffered.

Aviation and travel stocks suffered the worst reaction to market opening, with owner of British Airways, IAG and easyJet falling 6% Ryanair confirmed the magnitude of the financial cost he had witnessed to date and recommended not to travel abroad.

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EasyJet shares were among those affected on Monday

Fashion retailers were also targeted, with Next and JD Sports Fashion among the biggest losers, while Primark – a pure bricks-and-mortar operator – has warned of a loss of £ 375million due to lost sales across Europe in the latest lockdowns.

England’s new restrictions, which are due to be implemented on Thursday, will see the non-essential retail business closed until December 2.

Parts of the retail sector that are expected to remain open due to the latest economic disruption – such as supermarkets – have benefited.

Shares of Tesco, Sainsbury’s and Ocado were all up sharply.

In the case of Ocado, its stock saw the biggest gains – over 8% – boosting its profit forecast citing “strong” sales since the start of its grocery delivery partnership with Marks & Spencer.

He said shoppers continued to migrate to online shopping in record numbers and also announced the acquisition of two robotics companies as part of an investment in its warehouse technology arm – the part of the company that has proven to be the most lucrative for investors in recent years thanks to partnership agreements.

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Ocado and M&S £ 1.5bn partnership kicked off in September

Ocado has said it has to pay a total of £ 222million for parts picking robotics company Kindred Systems and robotic arm designer Haddington Dynamic.

Other UK loggers were pub groups JD Wetherspoon and Mitchells & Butlers, while Just Eat Takeaway made gains.

The FTSE 100 was up 1% to 5636 in the early afternoon – helped by some weakness in the pound which was trading at $ 1.29 over fears of further economic damage from COVID-19.

Drops in the value of the British pound tend to increase the value of its constituent companies with solid dollar earnings as they are worth more when booked in Britain.

Positive economic data from China also bolstered sentiment at the start of what should be a potentially volatile week given the development of the viral crisis and the US presidential election.

The index hit a six-month low last week.

However, the domestically focused FTSE 250 was trading slightly lower, reflecting concerns over the economic blow from England’s second lockdown and the possibility of wider restrictions in Scotland as well.

Business groups have warned that while an extension of the holiday regime until Dec. 2 will help workers, businesses face financial catastrophe due to further loss of income.

Outgoing CBI CEO Dame Carolyn Fairbairn used her final speech at the organization’s annual conference to condemn the government’s handling of the big crisis announcements to date.

Speaking hours after the Prime Minister stepped back from making his own speech at the event to focus on the evolving health emergency, Dame Carolyn said businesses could not act on the base of “speculation and leaks and guesses” and demanded more clarity on the government’s strategy.

Dame Carolyn Fairbairn
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Dame Carolyn Fairbairn

His BCC counterpart, Dr Adam Marshall, said: “It is impossible to get around the fact that these new restrictions will be
devastating blow to business communities who have done everything in their power to adapt and operate safely.

“Business and market confidence have been hit hard by the hazy, stop-start approach taken by UK governments over the past eight months, with little end in sight.

“Many businesses are in a much weaker position now than when the pandemic began, making it much more difficult to survive extended shutdowns or demand restrictions. “

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