Financial Times 09Apr2020

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Briefing

i ob cull looms as Airbus cuts productionJ

The aerospace group has confirmed that it is cutting

aircraft production by a third in a move expected to

trigger a wave of job losses across the global supply

chain as airline customers fight to survive.— PAGE 6

i xodus builds as Wuhan lifts lockdownE

The Chinese city at the centre of the coronavirus

outbreak has lifted its official ban on travel, ending

the world’s biggest mass quarantine and sparking a

rush for the train by 55,000 people.— PAGE 3

i ecession strikes Germany and FranceR

Economic forecasts have suggested that years of

growth in both countries will be wiped out within a

few months while global predictions by the OECD

and WTO provided further gloom.— PAGE 2

i ecriminations over EU scientist’s exitR

A bitter dispute has broken

out over the departure from

the European Research Council

of Mauro Ferrari after former

colleagues accused him of

a “lack of engagement”.— PAGE 3

i MC poised to fall into administrationN

The healthcare provider has said that despite

efforts to address creditor concerns, it had failed to

secure their support to oppose administration,

which is sought by a big Abu Dhabi lender.— PAGE 6

i emocrats set out stall for stimulus talksD

Party leaders have set out demands for small

businesses, hospitals and local governments as

lawmakers gear up for new talks on how to aid

Americans struggling with the virus crisis.— PAGE 4

i arbon emissions tumble in EuropeC

A report from a French energy consultancy has

shown that lockdowns in the EU have prompted a

58 per cent fall across the economy. The one sector

that showed an increase was households.— PAGE 2

Datawatch

Transmission creep

Will our right to data privacy survive

the pandemic?— BIG READ, PAGE 15

THURSDAY9 APRIL 2020 WORLD BUSINESS NEWSPAPER EUROPE

World Markets

STOCK MARKETS

Apr 8 prev %chg

S&P 500 2716.11 2659.41 2.

Nasdaq Composite 8030.59 7887.26 1.

Dow Jones Ind 23185.63 22653.86 2.

FTSEurofirst 300 1282.95 1284.98 -0.

Euro Stoxx 50 2843.79 2857.67 -0.

FTSE 100 5677.73 5704.45 -0.

FTSE All-Share 3140.10 3141.28 -0.

CAC 40 4442.75 4438.26 0.

Xetra Dax 10332.89 10356.70 -0.

Nikkei 19353.24 18950.18 2.

Hang Seng 23970.37 24253.29 -1.

MSCI World $ 1895.04 1881.48 0.

MSCI EM $ 878.15 853.83 2.

MSCI ACWI $ 453.09 448.72 0.

CURRENCIES

Apr 8 prev

$ per € 1.086 1.

$ per £ 1.238 1.

£ per € 0.877 0.

¥ per $ 108.745 108.

¥ per £ 134.654 134.

SFr per € 1.055 1.

€ per $ 0.921 0.

Apr 8 prev

£ per $ 0.808 0.

€ per £ 1.140 1.

¥ per € 118.136 118.

£ index 77.458 77.

SFr per £ 1.203 1.

COMMODITIES

Apr 8 prev %chg

Oil WTI $ 24.37 23.63 3.

Oil Brent $ 32.43 31.87 1.

Gold $ 1649.25 1648.30 0.

INTEREST RATES

price yield chg

US Gov 10 yr 0.75 -0.

UK Gov 10 yr 0.38 -0.

Ger Gov 10 yr 103.33 -0.31 0.

Jpn Gov 10 yr 0.01 0.

US Gov 30 yr 132.80 1.34 -0.

Ger Gov 2 yr 105.16 -0.62 0.

price prev chg

Fed Funds Eff 0.65 1.58 -0.

US 3m Bills 0.14 0.15 -0.

Euro Libor 3m -0.23 -0.23 0.

UK 3m 0.67 0.65 0.

Prices are latest for edition Data provided by Morningstar

DAVE LEE— SAN FRANCISCO

For a brief moment, it looked like

another disruptive venture from

Travis Kalanick, the co-founder of

Uber: a brazen idea to capitalise on

coronavirus lockdowns with Internet

Food Court, a food delivery service

without any physical dining space.

A press release, sent to reportersthis

week heralded the service — which had

a soft opening last month — as being

“like a mall food court, except less mall

andmoreinternet”.

Under one roof, “ghost” kitchens,

withnootherphysicalpresence,distrib-

ute food from 30 distinct restaurant

brands via four leading food-delivery

platforms: DoorDash, Uber Eats, Post-

matesandGrubhub.

Yet the so-called ghost kitchen turned

out to be a phantom.Shortly after Mr

Kalanick,Uber’sformerchiefexecutive,

was contacted by the Financial Times

for comment, the online presence for

theInternetFoodCourtvanished.

“We don’t know how this website got

constructed,” a source close to Mr

Kalanick said. “Travis wants it to be

very clear that this is not something he

created.He’sveryupset.”

Withinanhour,thewebsitewastaken

offline, social media posts were deleted

andtherestaurantsinvolved,whichhad

appearedunderonebannerbrand,were

listedontheappsindividually—remov-

ingalltraceoftheInternetFoodCourt.

City Storage Systems, Mr Kalanick’s

majority-owned holding company for

CloudKitchens, said the publicity was

theworkofarogueemployee.

“One of CSS’s employees developed a

website and press release that included

numerous errors and misrepresenta-

tions,” said Devon Spurgeon, speaking

forthecompany.

“It was created and disseminated

without the company’s knowledge and

wehavelaunchedaninvestigation.”

The employee declined to comment

when contacted by the FT, and the com-

pany declined to comment on the per-

son’semploymentstatus.

Despite Mr Kalanick’s protestations,

theInternetFoodCourtisreal:thename

is emblazoned across the windows of

615 North Western Avenue, Los Ange-

les.Thoughforhowlongisnotclear.

As well as the rogue website and press

release, CSS told the FT it was investi-

gating the very creation of the brand,

including the commissioning of award-

winning LA-based graphic designer

Ryan Haskins. When reached by the FT,

Mr Haskins said he was not able to dis-

cusstheproject.

Kalanick’s ghost kitchen vanishes from

internet amid probe into rogue worker

© THE FINANCIAL TIMES LTD 2020
No: 40,370★

Printed in London, Liverpool, Glasgow, Dublin,
Frankfurt, Milan, Madrid, New York, Chicago, San
Francisco, Orlando, Tokyo, Hong Kong, Singapore,
Seoul, Dubai, Doha

AnalysisiPAGE 8

Premier League reels from

push to slash player wages

Austria €3.90 Malta €3.
Bahrain Din1.8 Morocco Dh
Belgium €3.90 Netherlands €3.
Bulgaria Lev7.50 Norway NKr
Croatia Kn29 Oman OR1.
Cyprus €3.70 Pakistan Rupee
Czech Rep Kc105 Poland Zl 20
Denmark DKr38 Portugal €3.
Egypt E£45 Qatar QR
Finland €4.70 Romania Ron
France €3.90 Russia €5.
Germany €3.90 Serbia NewD
Gibraltar £2.90 Slovak Rep €3.
Greece €3.70 Slovenia €3.
Hungary Ft1200 Spain €3.
India Rup220 Sweden SKr
Italy €3.70 Switzerland SFr6.
Latvia €6.99 Tunisia Din7.
Lithuania €4.30 Turkey TL
Luxembourg €3.90 UAE Dh20.
North Macedonia Den

Two-thirds of

Britons say they

have needed to

save more — or

are considering

saving more —

as a result of the

pandemic, despite

big government

support packages.

A third are using

set-aside cash or

are considering

making use of it

Pandemic finances

Source: Ipsos Mori (- March )

Saving money

Lending money

Spending savings

Going overdrawn

Using credit card

Borrowing money

Break from mortgage

Loan through bank

  

Done/considering

Not considering

 of Britons

Janan Ganesh

Why rightwing parties are trusted

with leftwing mandates— PAGE 17

Coronavirus diaries

‘Zoom is not the same as hugging a

wriggling child’— MARTIN WOLF,PAGE 14

Sanders quits

Biden clear to

take on Trump

Bernie Sanders announces his with-
drawal from the White House race, tell-
ing supporters the coronavirus crisis
hadsealedthefateofhiscampaign.
“I cannot in good conscience continue
to mount a campaign that cannot win
and which would interfere with the
important work required of all of us in
this difficult hour,” the 78-year-old Ver-
montsenatorsaid.
His exit paves the way for Joe Biden to
carry the Democratic challenge to Don-
aldTrumpinNovember.
Mr Sanders, a self-described Demo-
cratic socialist who ran on aplatform
centred on Medicare for All, insisted he
had “won the ideological struggle” but
saidhewouldworkwithMrBiden.
Report age 4p
AFP Photo/Bernie Sanders Presidential Campaign

3 Virus reports

Pages 2-

3 Corporate

impact

Pages 6-

3 Markets

Pages 9-

3 Big Read

Page 15

3 Editorial

Comment

Page 16

3 Opinion

Page 17

3 LexPage 18

Inside

PHILIP GEORGIADIS— LONDON

Wall Street banks are warning investors
to brace themselves for a new wave of
declines in global markets after stocks
rushedbacktowardsabullmarketfrom
the ugly falls driven by coronavirus in
March.
The US benchmark S&P 500 index
had jumped 2 per cent by lunchtime
yesterday, placing it 20 per cent above
the nadir of March 23 in a bounceback
almost as intense as the sell-off it
followed. But many strategists warn
that while central banks and govern-
ments have taken the sting out of mar-
ket disruption with their interventions,
moredisruptionmaylieahead.
“My concern is this relief rally might
not be sustainable,” said Mislav Mate-

jka,globalequitystrategistatJPMorgan.

Goldman Sachs and Citigroup have

also urged caution, particularly as com-

panies absorb the scale of the shock

from the pandemic. “Equity markets

may need to fall 50 per cent before they

have priced in this year’s likely earnings

drop,” Robert Buckland, head of equity

strategyatCiti,said.

Goldman Sachs’ strategists said this

week that equities were already pricing

in a recovery in economic growth, even

as the extent of the corporate shock

remains unclear. “This increases the

risk of disappointment near-term,” the

bankadded.

The rebound since late March has

coincided with signs that the virus

mighthavepeakedinsomeoftheworst-

hit countries, raising hopes that lock-

downs that have hit economies from the

UStoIndiacouldsoonbelifted.

But the economic damage has already

been done. Yesterday new forecasts

showed the German and French econo-

miesinthegripofrecession.

Salman Baig, multi-asset investment

manager at Swiss fund Unigestion, bel-

ievesthebounceisa“bearmarketrally”

and seesa“decentchance”ofstocksfall-

ingbacktolastmonth’slows.

“Inacoupleofweekswegetcorporate

earnings season, and investors will get

toseejusthowbaditwillbe,”hesaid.

Some, however, are betting that the

worst is over. “You should have a buy-

the-dip mentality now,” said Michael

Wilson, chief US equity strategist at

Morgan Stanley, arguing that a reces-

sion forged out of a public health crisis

has led government and central banks

toreactonanunprecedentedscale.

“The virus has already created the

recovery through the stimulus: it is a

timingquestionnow,”hesaid.

Some billionaire investors have also

spotted a buying opportunity. Oaktree

CapitalManagement’sHowardMarks,a

market veteran, revealed in his latest

memo to clients that the investment

grouphefoundedhadalsostartedtodip

back into the market, despite the risk of

furtherdeclines.

“It’s not easy to buy when the news is

terrible, prices are collapsing and it’s

impossible to have an idea where the

bottom lies. But doing so should be the

investor’sgreatestaspiration,”hesaid.

Additional reporting by Katie Martin

and Robin Wigglesworth

Wall Street urges caution as bullish

investors rush into recovery bets

3 S&P 20% above March low 3 More falls to come, warn analysts 3 Growth data spell danger

APRIL 9 2020 Section:FrontBack Time: 8/4/2020- 19:04 User:simon.roberts Page Name:1FRONT USA, Part,Page,Edition:EUR, 1, 1