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* FTSE 100 slides 4%, FTSE 250 down 6.6%
* Aerospace shares slide after JPM's bearish note
* Supermarket chains among sole gainers
(Updates with closing prices)
By Sruthi Shankar
March 18 (Reuters) - Britain's stock markets fell for the
eighth day in 10 on Wednesday, as more companies warned of a
severe hit to earnings from the coronavirus outbreak even as
policymakers pushed for fresh stimulus measures to support
global growth.
The blue-chip FTSE 100 fell 4.%, with Carnival Corp
and other travel stocks such as Easyjet and
InterContinental Hotels under pressure.
Aerospace engineers Meggitt, Senior and
Rolls-Royce dropped between 11% and 25% as evidence grew
of the severe damage the crisis is doing to global airlines.
U.S. investment bank JPMorgan said it would take several
years for the industry to recover in a widely-circulated note
that cut its price target on Rolls-Royce by 29%, citing falling
expectations for cash flow.
IT company Micro Focus International slumped 22.6%
as it scrapped its final dividend as part of its plan to prepare
for the fallout from the crisis.
Car retailer Pendragon dropped 12% as it warned the
virus spread in Britain could reduce footfall and worsen results
that already show it losing money.
The FTSE 100 is down by around a third from its peaks since
the outbreak began to hit home. The index had recovered some
ground on Tuesday as the Trump administration pushed for a $1
trillion stimulus package and the UK unveiled a 330
billion-pound lifeline of loan guarantees and other measures.
"It's hard to take anything in (your) stride when it feels
like we're stumbling about trying to figure out what's going
on," said Brian Jacobsen, senior investment strategist at Wells
Fargo Asset Management Multi-Asset Solutions.
"We've seen quite wild swings in the market, and that's
because of the massive amount of uncertainty as to whether the
stimulus will get done and how long will the recovery take."
More businesses warned of pain, with Prime Minister Boris
Johnson's announcement of a virtual shutdown of the country
hammering pubs, restaurant and retail companies.
The FTSE index of mid-cap companies, meanwhile, was
down about 7%.
Rather than growing 5% as previously forecast, the latest
Refinitiv data suggests companies listed on the pan-European
STOXX 600 will post a 4.1% decline in earnings between
January and March.
Wagamama owner Restaurant Brands and another pub
operator, Mitchells and Butler also outlined severe
falls in sales and efforts to shore up their financial situation
for later in the year.
British fashion brand Superdry tumbled 30% after
warning it would miss its 2020 targets, but also said it had a
strong capital position and was in talks with lenders about
additional flexibility and liquidity.
Among the few gainers were supermarket chains, with WM
Morrison Supermarkets and Sainbury's gaining
more than 10% amid panic buying by shoppers.
(Reporting by Sruthi Shankar in Bengaluru; editing by Patrick
Graham)
