FT News Briefing Investors fear new Covid-19 wave, UK in border check U-turn, HSBC pressure
Jun 12, 2020
Investors are on edge as rising COVID-19 cases and a grim economic forecast from the Federal Reserve shake US and European markets. The UK government has unexpectedly reversed its full Brexit border checks, raising eyebrows across industries. Meanwhile, HSBC is feeling the squeeze amidst geopolitical tensions tied to China's national security law, facing pressures from shareholders. The challenges posed to major banks’ headquarters in London also loom large, indicating a turbulent financial landscape ahead.
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Market Slump
- U.S. and European markets fell sharply Thursday, with the S&P 500 dropping nearly 6%.
- Investors worried about rising U.S. coronavirus cases and the Federal Reserve's gloomy economic outlook.
Rising Cases and Hospitalizations
- Increased COVID-19 cases are partially due to more testing, but also increased transmission.
- Hospitalizations are rising, a concerning sign beyond simply increased testing.
UK Border Check U-Turn
- The UK government reversed its plan for full EU border checks on January 1st.
- A lighter regime will be in place for six months, regardless of a trade deal.