FTSE 100 nosedives more than 3% on coronavirus and bank compliance concerns

LONDON MARKETS Load Error ben stansall/Agence France-Presse/Getty Images U.K. stocks nosedived on Monday, on concern over a report alleging banks didn’t act on the suspicious activity reports they sent to regulators, and on fears of tightening restrictions due to rising COVID-19 cases. The FTSE 100 (UK:UKX) fell 3.2% in midday […]

LONDON MARKETS

Loading...

Load Error

ben stansall/Agence France-Presse/Getty Images

U.K. stocks nosedived on Monday, on concern over a report alleging banks didn’t act on the suspicious activity reports they sent to regulators, and on fears of tightening restrictions due to rising COVID-19 cases.

The FTSE 100 (UK:UKX) fell 3.2% in midday trade, its worst single-day performance since June 11.

The travel sector was the worst performer after the country’s chief scientific adviser warned the U.K.’s coronavirus cases could be doubling every seven days.

British Airways owner International Airlines Group (UK:IAG) fell by double digits, with easyJet (UK:EZJ) and engine maker Rolls-Royce (UK:RR) which is considering a £2.5 billion million equity raise, also slumping.

“British Airways’ owner IAG is one of the biggest fallers as tougher widespread restrictions on movement are likely to push any recovery for the airline industry even further into the future and that concern has had a domino effect on aircraft-engine manufacturer Rolls Royce, as investors see no end in sight for the falling demand for new planes,” said Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown.

Showing the new lockdown fears, the only FTSE 100 gainers were companies that have benefited from increased restrictions — food delivery company Just Eat Takeaway (UK:JET) and supermarkets Tesco (UK:TSCO) and Wm Morrison (UK:MRW)

The biggest downward impact on the FTSE 100 came from the heavily weighted banking sector. HSBC Holdings (UK:HSBA) Standard Chartered (UK:STAN) and Barclays (UK:BARC) were each mentioned in BuzzFeed’s report alleging banks didn’t act on the suspicious activity reports they filed with regulators. By law, banks aren’t allowed to comment on those SAR reports. Standard Chartered and HSBC have been filed previously over anti-money-laundering compliance.

“The Panama Papers highlighted the issues of transparency and complex ownership structures, while 1MDB and the Luanda Leaks exposed political corruption. What we have now witnessed with the FinCEN Files is a systemic failure across the entire financial system and industry,” said Rachel Woolley, global director of financial crime at financial software maker Fenergo.

Markets also were concerned with the impact of the death of Supreme Court associate justice Ruth Bader Ginsburg, with analysts saying the political fight over her successor will likely derail any chances of a new U.S. stimulus package until after the election.

Continue Reading
Next Post

COVID-19 Recovery Analysis: Personal Care Packaging Market|Rising Global Personal Care Spending to Boost the Market Growth | Technavio - Press Release

LONDON–(Business Wire)–Technavio has been monitoring the personal care packaging market and it is poised to grow by $ 3.91 bn during 2020-2024, progressing at a CAGR of over 2% during the forecast period. The report offers an up-to-date analysis regarding the current market scenario, latest trends and drivers, and the […]