Published: 08:29 BST, 21 September 2020 | Updated: 09:37 BST, 21 September 2020
Markets have opened in the red as Prime Minister Boris Johnson is pondering a second national lockdown amid a rise in new coronavirus cases.
Banks shares are under pressure after reports of leaked documents showing that several global banks moved large sums of allegedly illicit funds over a period of nearly two decades, despite red flags about the origins of the money.
In company news, fashion retailer Superdry posted an underlying pretax loss of £41.8million as the coronavirus pandemic took a toll on its turnaround strategy.
Meanwhile, events and exhibition group Informa reported a statutory operating loss of £739.9million as it was forced to cancel or postpone hundreds of events due to Covid.
Elsewhere, house prices rose by 5 per cent in the year to September, according to Rightmove’s latest house price index.
The property website said buyers looking for larger properties following the coronavirus lockdown are behind the increase in activity.
New lockdowns could derail the fragile economic recovery, crushing hopes of a so-called ‘V-shaped’ recovery. Richard Hunter, head of markets at interactive investor, says:
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.
Fashion retailer Superdry nearly doubled its losses in its most recent financial year – from £89.3million last year to £166.9million in the 12 months ending April 25.
It came as Superdry was forced to close all of its stores in the last month of the financial year, pushing revenue down 19 per cent to £704.4million.
HSBC shares fell to their lowest level since May 1995 in Asian trading as the banking giant faces allegations of money laundering.
The UK bank, which is also listed in London, is also facing other pressures, including political tension in Hong Kong and and fears it could be added to a Chinese list of firms deemed a threat to national security.
The lender tanked more than four percent to HK$29.60 at one point – a level not seen since mid-1995. In London, HSBC shares are down 3.6 per cent at 292.90p.
HSBC was among a group of banks said to have allowed fraudsters to transfer millions of dollars around the world.
The International Consortium of Investigative Journalists cited leaked official US documents that said the bank ‘kept profiting from powerful and dangerous players’ in the past two decades.
There is a distinct lack of good news as the FTSE kicks off trading for the week. New daily covid infections continue to rise sharply. With large pats of the UK seeing tighter lockdown restrictions and fears growing that London could be next.
British Medical Advisor Chris Whitty is due to make a public briefing later this morning where warnings that the UK is at a critical point ahead of a very challenging winter are likely to keep sentiment depressed.
British banks are back in the spotlight for all the wrong reasons. A report that some of the world’s largest banks enabled flows of dirty money in suspicious transactions over a period of two decades, despite warnings from regulators is keeping the sector out of favour. HSBC was one of the 5 global banks which appeared heavily in the report, along with Standard Chartered, JP Morgan Chase & Co, Deutsche Bank and Bank of New York Mellon Corp.
In a major U-turn, Trump said he was willing to approve a partnership between TikTok and US tech giant Oracle.
The deal which will allow Chinese social media app TikTok to continue operating in the US.
London markets have started the week on the back foot as Boris Johnson is considering a possible second lockdown as coronavirus cases keep rising.
The FTSE 100 has fallen more than 2 per cent in early trading below the 6,000 level. British Airways owner IAG among the top fallers with shares down around 7 per cent.
Banks HSBC and Standard Chartered are weighing on the index too, with shares down almost 4 per cent, after reports said they and other banks moved allegedly illicit funds over nearly two decades.
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
Share what you think
The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline.
We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook.
You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.
This is Money is part of the Daily Mail, Mail on Sunday & Metro media group
SOURCE: https://www.w24news.com
