Wall Street biggest-ever loss as as markets gripped by mounting concerns over the threat of global recession
On Monday Wall Street suffered its biggest drop since 1987 and the FTSE hit an eight-year low as markets were gripped by mounting concerns over the threat of a global recession.
The S&P 500 plummeted 12%, its biggest drop since “Black Monday” thirty years ago, after the Federal Reserve slashed interest rates to near zero in an unprecedented attempt to shore up the US economy.
The pandemic is taking a mounting toll on businesses.
Airlines and travel companies among those who suffered most. Holiday travel company Tui collapsed in value by 38%. Over the weekend, Tui announced it was temporarily suspending the “vast majority of all travel operations until further notice”.
Ryanair, Europe’s largest short-haul airline, cancelled 80% of its flights until May and said it had not ruled out a “full grounding of the fleet”.
Amid growing calls for governments to step in with support for airlines to save vast numbers of jobs across the industry, the owner of British Airways, IAG, and easyJet, Europe’s number three and number four airlines respectively, also said they would cut capacity drastically.