US economy likely to have contracted at fastest pace since Great Depression
UK and European shares are a sea of red now. The FTSE 100 is down 0.8%, falling some 50 points to 6,081, dragged down by Lloyds Banking Group, which reported a much bigger than expected loss for the second quarter this morning. Lloyds shares have tumbled nearly 7% to £26.46 and shares in NatWest Group (rebranded from Royal Bank of Scotland) have fallen nearly 3%.
The Toulouse-based aircraft maker Airbus has announced new production cuts to its A350 jet, after it slumped to a bigger-than-expected loss for the second quarter.
Like its US rival Boeing, the company has been hit hard by the collapse in air travel caused by the Covid-19 pandemic. The crisis has hit demand for wide-body long-haul jets in particular, prompting Airbus to cut its wide-body A350 production to five jets a month, after slashing it from 9.5 to six in April. Boeing also announced further cuts in the production of its 787 and 777 jets yesterday.
We believe it is going to be a long and slow recovery.