Wizz Air considering 'adjustment' to capacity, DS Smith upbeat on trading

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Budget airline Wizz Air said it was considering a 10% adjustment to network capacity in the first quarter of the next fiscal year to counter the impact of the coronavirus. The Central and Eastern Europe specialist added that it had already made “significant” cuts in in overhead and discretionary spending, implemented a hiring freeze, stopped non-essential travel and was working with suppliers to reduce costs. “At this point in time it is difficult to predict the extent and the duration of the outbreak and the impact on the next financial year, however we remain confident that as the situation normalises, Wizz Air will continue its highly successful trajectory.” the company said on Wednesday.

DS Smith said on Wednesday that its trading had progressed well since 1 November, despite macroeconomic uncertainty. The FTSE 100 packaging firm said group like-for-like corrugated box volume growth was up during the second half of its financial year, as expected, with good performances in the Iberia, Eastern Europe and UK geographies. It said the operations of its Europac acquisition were performing particularly well, with its fast-moving consumer goods and e-commerce businesses growing strongly over the Christmas period, although it noted that countries with exposure to export-led markets, including Germany, were still subdued.

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Amazon is struggling to prevent profiteering as “bad actors” attempt to cash in on coronavirus fears by raising prices of masks and sanitisers by as much as 2,000%. The US company said it had removed “tens of thousands” of listings but analysts have likened the situation to a game of whack-a-mole with products reappearing soon after deletion.- Guardian

An unfamiliar hush has fallen across Google’s European headquarters in Dublin on as thousands of employees follow an injunction to work from home - a precaution against coronavirus that is being replicated across the world. The glass complex remained largely empty on Tuesday and was expected to be again on Wednesday after the company ordered most of its 8,000 staff to stay away from Grand Canal Dock, also known as Silicon Docks, in Ireland’s capital. – Guardian

Industry leaders have demanded a sweeping overhaul of business rates in this month's Budget, saying the regime is deeply flawed and punishes firms that are already struggling. Nine business groups have demanded reform in a letter to Chancellor Rishi Sunak as they seek to ease the £31bn burden imposed by the tax. – Telegraph

The fallout from the global coronavirus outbreak is likely to trigger more mergers and takeovers in the airline industry, the boss of one of the world’s largest carriers has said. Ben Smith, 48, chief executive of Air France-KLM, said yesterday that the drop in bookings caused by the outbreak would intensify pressure on airlines to curb capacity and consolidate. – The Times

A leading shipping broker has warned that its earnings will take a hit as coronavirus dents global trade. Braemar Shipping Services said that the prolonged disruption triggered by the outbreak, which has shut down factories across China and strained production lines across the world, was likely to knock its sales. – The Times

US close

US stocks finished sharply lower on Tuesday, more than reversing their early gains as an unscheduled rate cut from the Federal Reserve strengthened fears of a coronavirus-stoked recession.

The Dow Jones Industrial Average ended the session down 2.94% at 25,917.41, the S&P 500 lost 2.81% to 3,003.37, and the Nasdaq Composite was 2.99% weaker at 8,684.09.

At the open, the Dow had added 86.20 points after seeing out the previous session nearly 1,300 points firmer.

The blue-chip index had started the week reclaiming some of its recent losses with its biggest percentage gain since March 2009, amid expectations that the Federal Reserve would again cut rates - expectations which were sated on Tuesday.

In its unscheduled announcement, the US central bank cut its benchmark rate to between 1% and 1.25% from between 1.5% and 1.75%.

"The fundamentals of the US economy remain strong. However, the coronavirus poses evolving risks to economic activity," the Fed said in a statement.