BANKS COORDINATE ACTION ON GLOBAL DOLLAR LIQUIDITY

America's central bank cut interest rates by one percentage point last night, accompanied by a combined action with the Bank of England, the European Central Bank, and the central banks of Canada, Japan and Switzerland to increase dollar liquidity across the global financial system (Telegraph, £, online only). The cut came with the announcement of a $700 million liquidity injection into the economy in coming weeks (Times, £, p1), as the FTSE fell to an eight-year low this morning (Guardian, online only).

Meanwhile, the banking industry has called on the government to step up its plans to support small and medium-sized businesses to cope with the Covid-19 pandemic (Times, £, p36). Under the scheme, administered by the state-owned British Business Bank, the government will support loans of up to £1.2 million.

Stephen Jones, chief executive of UK Finance, commented: ?The impact of Covid-19 is already starting to be felt by small and medium-sized businesses around the country, so it's essential that we get this scheme up and running within days and that it is simple to access.?

Finally, Carolyn Fairbairn, head of the Confederation of British Industry (CBI), has called on the government to give more assistance to businesses suffering as a consequence of 'social distancing?, speaking to BBC's Today programme this morning (City AM, online only).

NATIONAL CYBER SECURITY CENTRE WARNS OVER COVID-19 CYBER CRIME

Experts from the National Cyber Security Centre (NCSC) have issued a warning over cyber criminals attempting to make money out of exploiting people's fears over Covid-19 (Sky News, online only) and while an increase in malware attacks is predicted (Financial Times, £, p5). Fraudsters have been sending emails posing as the World Health Organisation and medical firms (Telegraph, £, p7) with the aim of prompting users to click on fake links.

NEWS IN BRIEF

The EU Commission has rejected calls from the UK government for a rapid agreement on financial services amid concerns that the UK would diverge too far from Brussels? rules (Financial Times, £, online only).

Manufacturers are urging the government to take action to help limit the damage caused by the coronavirus pandemic after a survey carried out prior to the outbreak by manufacturers? body Make UK and business advisory firm BDO showed that exports have slumped to their lowest level in three years (Guardian).

Research from Rightmove has found that the average asking price for a home reached £312,625 in March 2020, the highest level since 2018 (Bloomberg, online only).

WHAT THE COMMENTATORS SAY

Deputy editor Patrick Jenkins writes in the Financial Times (£, online only) that investor confidence is on shaky ground despite government efforts to allay concerns over the economic impact of the coronavirus outbreak. He remarks that banks today are objectively in far better shape than a decade ago thanks to the regulatory safeguards put in place in the wake of 2008, including higher capital requirements, liquid funding buffers and stricter supervision regimes. However, he concludes that high levels of indebtedness across the wider economy mean that a financial crisis remains a real possibility.

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