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Boeing 777s with Pratt & Whitney engines banned from UK airspace – live updates



03:38 PM

Non-essential shops to open from April 12th

Two key points from the Prime Minister’s statement today:

03:25 PM

Johnson to announce roadmap out of lockdown – follow live

Boris Johnson is unveiling his long-awaited roadmap out of lockdown, which includes four stages and four tests that must be met as part of the “irreversible” path back to freedom.

My colleague Cat Neilan reports:

The four stages will roughly correspond to the months of March, April, May and June. March 8 marks the first of these stages, with all schools reopening, while organised outdoor sport will be permitted from March 29.

However, the lifting of lockdown will be gradual, spread over at least four months with social distancing rules and guidance to work from home remaining in the near term.

I’ll bring you any interest business reaction we get here.

03:10 PM

Full report: Trouble-prone 777s banned from UK airspace

My colleague Alan Tovey has a full report on the decision to ban Boeing 777s with the engine linked to a number of incidents over the weekend from British airspace.

He writes:

Transport Secretary Grant Shapps said the 777s with Pratt & Whitney 4000-112 engines will be prevented from entering UK airspace temporarily and that he is “working closely” with the Civil Aviation Authority.

Boeing has said it supports the grounding of 777s with the affected engine by Japan Civil Aviation Bureau and the US Federal Aviation Administration, meaning that United Airlines, Japan Airlines ANA cannot use their aircraft.

Two other operators, Korean Air Lines and Asiana, followed suited voluntarily, while a third Korean carrier, Jin Air, is waiting for recommendations from the Seoul government. The UK ban is unlikely to have much impact though, with major regulators having already acted meaning that it is unlikely that 777s with Pratt & Whitney 4000-112 engines will get near UK airspace.

EASA, the European regulator, has yet to ban the aircraft, but says it is in contact with the FAA.

02:38 PM

Wall Street opens lower

US stocks started the week in the red with investors pricing in stronger growth and faster inflation as the global economy recovers from the pandemic.

  • S&P 500 -0.7pc

  • Dow Jones -0.5pc

  • Nasdaq -1.3pc

02:19 PM

Boeing 777s with Pratt & Whitney engines banned from UK airspace

Transport secretary Grant Shapps has temporarily banned Boeing 777s with Pratt & Whitney 4000-112 series engines from entering UK airspace.

01:45 PM

LVMH takes 50pc stake in Jay–Z’s champage brand – WSJ

Jay–Z - Samir Hussein/WireImage

Jay–Z – Samir Hussein/WireImage

Luxury goods giant LVMH Moët Hennessy Louis Vuitton has taken a bought a stake in rapper Jay–Z’s champagne business, the Wall Street Journal reports.

The paper reports:

LVMH, the world’s biggest producer of Champagne, has taken a 50% stake in Armand de Brignac, the high-end Champagne brand owned by Jay-Z, the rapper and mogul. The brand, one of the youngest in the famed sparkling wine region, is known for its metallic bottles that cost hundreds of dollars each.

The investment, LVMH and Jay-Z said, is aimed at growing Armand de Brignac through LVMH’s global distribution networks while drawing upon the conglomerate’s vast resources within Champagne wine country. It comes at a difficult moment for Champagne: The pandemic canceled weddings, soirees and other occasions to pop corks, cutting sales of the wine by around 20pc last year. The two sides didn’t disclose the value of the transaction.

01:07 PM

Market moves

With just over an hour until the US open, European markets remain solidly in the red — although they are off the lows touched earlier in the session.

12:33 PM

Hayes’ conviction for Libor rigging under review

Tom Hayes - Warren Allott/Telegraph

Tom Hayes – Warren Allott/Telegraph

Tom Hayes’ conviction for rigging Libor interest rates is being examined by the Criminal Cases Review Commission, a body set up to review allegations of miscarriages of justice.

My colleague Simon Foy reports:

The former UBS trader who served five and a half years in prison, has said fresh evidence will prove his conviction was unsafe after he filed a 2,300-page application that is being considered by the commission.

The 41-year-old said the jury that convicted him was presented with a “false narrative and they reached a conclusion based on those facts”.

“I believe had they been presented with full evidence they would have reached a very different conclusion,” he told the BBC.

The Serious Fraud Office (SFO) said he was found guilty by a jury and the Court of Appeal had upheld the conviction.

11:47 AM

Bitcoin dips after hitting new records at weekend

The world’s most popular cryptocurrency fell more than 6pc on Monday, after surging to record highs the previous day.

My colleague Hannah Boland reports:

Analysts said the dip in Bitcoin prices was not linked to any specific news events but instead reflect a new trend where weekend rallies are proving not to be sustainable.

Bitcoin was last trading down 4.4pc at $54,941. Another cryptocurrency, ether, also fell 7pc to $1,798 after reaching a new record on Saturday.

11:33 AM

Marston’s boss warns more pubs likely to go under

The boss of Marston’s has warned that more pubs will go under without urgent help as the Government prepares to unveil its roadmap for lifting lockdown.

My colleague Simon Foy reports:

Ralph Findlay, chief executive of the pub chain, said it was “inevitable” that more pubs will run out of money before they could reopen, adding that many had already done so.

He told BBC Radio 4’s Today programme: “There has been government support for business but as a sector we have had no income for nine months – we’re still incurring costs. So each week as more money is being spent, there is only so long that can go on for… I do think it is really important for us to get back to normal.”

Prime Minister Boris Johnson is set to present his plan for gradually lifting restrictions on Monday afternoon. The earliest pubs are expected to reopen in any meaningful sense is May, although they could be allowed to serve outdoors from April.

10:50 AM

Black British Business Awards seek UK’s top black business leaders

Segun Osuntokun - Eddie Mulholland

Segun Osuntokun – Eddie Mulholland

Nominations are open for this year’s Black British Business Awards, an annual event that celebrates the achievements of some of the country’s top corporate bosses and entrepreneurs.

My colleague Matthew Caines reports:

Now in its eighth year, the awards highlight “commercial excellence” among black professionals in six areas: arts and media; consumer and luxury; start-ups; financial services; professional services; and STEM (science, tech, engineering and maths).

A “rising star” and “senior leader” award will be presented for each category during a digital ceremony in October.

Sophie Chandauka, co-founder of the awards, said: “This is a community that has remained resilient and focused on contributing to the UK economy in the face of a pandemic, racial unrest and personal pain. This is our time to reward and recognise these unsung heroes.”

10:47 AM

Copper continues strong gains

Copper has continued to make strong gains today amid concerns rapidly-increasing demand may lead to a shortfall in supply.

Prices rose above $9,000 a ton earlier today according to one measure of futures prices, amid a broader tear for metals prices as investors bet on a strong rebound in global demand.

Bloomberg notes:

The metal’s revival marks a turnaround from earlier in the month, when copper hit turbulence as investors signaled the need for more details about stimulus measures and on concerns about a softening in Chinese demand. But prices rose during China’s Lunar New Year as factory production was more buoyant than usual.

10:19 AM

Rio Tinto boss received 20pc pay rise despite heritage site disaster

Jean-Sebastien Jacques - Will Russell/AAP Image via AP

Jean-Sebastien Jacques – Will Russell/AAP Image via AP

Rio Tinto’s former boss Jean-Sebastien Jacques​ had a 20pc pay rise last year despite the Juukan Gorge disaster which led to his resignation.

My colleague Rachel Millard reports:

He took home a total pay packet of £7,224,000 including salary of £1.16m and share awards worth £5.7m.

Jacques stepped down on January 1 following the outcry over Rio Tinto’s blowing up sacred Aboriginal caves in Australia in search of iron ore.

He was docked his short-term bonus and £1m worth of long-term share awards in response to the disaster.

But the rest of his long-term share bonuses have benefited from a significant increase in Rio’s share price since the bonus scheme was set up in 2016.

He is on gardening leave until March 31 and is eligible to receive payments in lieu of notice.

Sam Laidlaw, chair of the remuneration committee, said the board “fully recognised the gravity of the destruction at Juukan Gorge but was mindful that the three executives did not deliberately cause the events to happen, they did not do anything unlawful, nor did they engage in fraudulent or dishonest behaviour or wilfully neglect their duties.”

09:59 AM

Money round-up

Here are some of the day’s top stories from the Telegraph Money team:

09:37 AM

G4S drops 10pc as Garda walks away

Shares in security group G$S have dropped about 10pc after would-be suitor GardaWorld poured cold water on the prospect of a bidding war by refusing to raise its offer.

09:30 AM

Pound recovers after dip below $1.40

Sterling has recovered back above $1.40 following a dip this morning amid caution over the pace of the Government’s re-opening roadmap. It topped the threshold for the first time since 2018 on Friday, and is the best-performing major global currency so far this year.

09:10 AM

German business sentiment improves

German business sentiment improved slightly this month, coming in with stronger-than-expected readings despite the backdrop of continued restrictions and uncertainty.

The Ifo Institute’s gauges of current conditions and expectations both improved slightly on January, although they remain weak by historic standards.

  • Expectations: 54.2 (prev. 91.1, survey 91.7)

  • Current assessment: 90.6 (prev. 89.1, survey 89.1)

  • Business climate: 92.4 (prev. 90.1, survey 90.5)

Ifo Institute president Clemens Fuest said:

Companies assessed their current situation as worse than last month. Their expectations were also more pessimistic. The second wave of coronavirus has brought the recovery of the German economy to a halt for now.

08:46 AM

FTSE extends losses

After less than an hour of trading, the FTSE 100 has extended its losses and is now now more than a percentage point.

Bloomberg TV - Bloomberg TV

Bloomberg TV – Bloomberg TV

08:41 AM

M&B launches £351m amid heavy cash burn

Mitchells and Butlers - Yui Mok/PA Wire

Mitchells and Butlers – Yui Mok/PA Wire

Mitchells & Butlers said it is burning through as much as £35m per month during lockdown as the pub chain formally launched a £350m fundraising effort.

My colleague Simon Foy reports:

The company said it had a cash balance of just £113m as of January 16, with all facilities drawn, and needs to make a £51m interest payment on its debts by March 15.

It came as the All Bar One owner officially launched a £351m open offer, calling it “critical for the continued operation of the group and its immediate financial stability”.

It has also agreed with pension trustees to delay monthly contributions from January to March.

Between the end of September and mid-January, sales were down 70pc on the same period in the previous year.

08:24 AM

Sunak softens on reopening

My colleague Ben Riley-Smith says that the Chancellor – who has been seen as one of the more prominent voices calling for restrictions to be eased – has softened his stance recently:

08:13 AM

FTSE opens in the red

The FTSE 100 has opened slightly in the red, in a broad downwards move for European equities following Friday’s moderate gains.

Bloomberg TV - Bloomberg TV

Bloomberg TV – Bloomberg TV

08:08 AM

Garda says 235p G4S offer is final

G4S - REUTERS/Darren Staples

G4S – REUTERS/Darren Staples

Canadian suitor GardaWorld has ruled out sweetening its offer for UK-based security outsourcer G4S, meaning rival bidder Allied Universal is in pole position to take over the FTSE 250 group.

Garda stuck by a 3250-per-share offering, despite G4S having already accepted Allied’s 245p bid, which values the company’s share capital at about £3.8bn.

Stephan Crétier, boss of GardaWorld, said:

There can be no better owner for G4S than GardaWorld, but we are disciplined buyers and we will not overpay for a company with systemic ESG issues that continue to come to light…

In light of the above, we have concluded that priced above 235 pence per share, there are better and less risky opportunities available to GardaWorld.

07:56 AM

Fresh crisis for Boeing as 777s are grounded following debris incidents

Plane-maker Boeing has been plunged into a fresh crisis after multiple incidents involving its aircraft showering debris due to apparent engine issues.

My colleague David Millward reports:

United Airlines grounded 24 of its Boeing 777s on Sunday while Japan also suspended some of its fleet, after two jets using the same family of engines showered debris on the ground shortly after take-off.

The US Federal Aviation Administration issued an emergency airworthiness directive calling for the inspection of Boeing 777s, following two separate incidents involving Pratt & Whitney 4000 engines on Saturday.

In the US, one of the engines on a United Airlines Boeing 777 exploded shortly after it took off from Denver en route to Honolulu…

In a separate move, Japanese authorities grounded its Boeing 777s also using Pratt & Whitney engines. Japan said ANA operated 19 of the type and JAL operated 13 of them, though the airlines said their use had been reduced during the pandemic. JAL said its fleet was due for retirement by March 2022.

Boeing has said it recommends airlines suspend usage of the planes, with the decision creating fresh headaches for the company shortly after its 737 Max aircraft was once again cleared to fly following two fatal crashes.

07:08 AM

Agenda: Lockdown exit plan

Good morning. The FTSE 100 is set to open in the red as Boris Johnson prepares to announce his roadmap for lifting the coronavirus lockdown.

The plan is expected to involve four steps which will see a gradual reopening of society and the economy from next Monday.

5 things to start your day

1) Alistair Darling warns Sunak off tax raid: the former Chancellor who oversaw Britain’s initial response to the financial crisis explains why it is too early to attempt to rebalance the books.

2) UK plc dividends suffer 41pc pandemic plunge: Payouts from banks and oil giants suffered the most, according to data that tells investors to brace for a slow return to pre-Covid levels.

3) Mark Carney joins board of US payments start-up: Stripe welcomes former Bank of England governor as it negotiates a new funding round that could leave it with a $100bn valuation.

4) More John Lewis stores at risk of closure: the employee-owned retailer is under pressure to slash costs after huge losses.

5) Electric car rush drives rare earths arms race: shortage of key materials and rising demand prompt urgent calls for action to avoid supply issues as prices threaten to rocket.

What happened overnight

The bond selloff continued Monday as Treasury yields climbed and sovereign debt in Australia and New Zealand slid on concerns about faster inflation, tempering stock market optimism from positive vaccine news.

Benchmark 10-year Treasury yields climbed to the highest in about a year. A gauge of Asian stocks edged lower, erasing earlier gains amid a surge in metals that could fan price pressures. Japanese shares outperformed while other key markets lagged. S&P 500 and European futures dipped after the U.S. index slipped Friday.

Copper hit the highest in more than nine years in a sign of optimism about the global recovery. Crude oil climbed to $60 a barrel as the market assessed the fallout from the big freeze across Texas. Bitcoin notched another record over the weekend, spurring a rally in the shares of Asian cryptocurrency stocks.

Coming up today

Interim results:

Dechra Pharmaceuticals


Ifo survey (Germany)

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