ECB boosts Covid-19 stimulus by €500bn; US jobless claims rise; UK growth fizzles out – business live

By Financial24 Last updated Dec 10, 2020

UK economic growth hits a six-month low and European Central Bank launches new stimulus

4.21pm GMT

Just in. The Bank of England is giving UK banks the green light to start paying dividends again, but with some ‘guardrails’ to avoid reckless payouts.

The Bank’s Prudential Regulation Authority has decided that it does not need to extend the “exceptional and precautionary action taken in March”, when it pressured banks to suspend dividends for 2020 and cancel 2019’s payouts.

Any distributions should be prudent, reflecting the still elevated levels of economic uncertainty and the need for banks to continue to support households and businesses through the continuing economic disruption, even in the event that this disruption is more prolonged and severe than currently anticipated.

As a stepping stone back towards its standard approach to capital-setting and shareholder distributions the PRA therefore asks boards, when making their decisions for 2020 distributions, to operate within a framework of temporary guardrails.

4.02pm GMT

Airbnb is about to make an extremely dramatic debut on the US stock market.

The short-term rental business is becoming the latest tech firm to float today, in an initial public offering that values the company at $47bn, or $68 per share.

AirBnB now valued at over $100 billion based off latest indicated bids $ABNB
Check out competitors by market cap$BKNG $87B$TRIP $4B$EXPE $18B

Airbnb ipo at $68 indicated to open later today at $150! Those lucky enough to get at $68 laughing all the way to the bank. Even at $68 extremely expensive on fundamentals. This market is one huge bubble in certain stocks. Enjoy the ride but don’t be the last man standing!

*AIRBNB INDICATED TO OPEN AT $145; IPO PRICED AT $68
Company's CEO is literally speechless on @BloombergTV — the first time he heard of the price surge.
"I don't know what else to say," Brian Chesky tells @emilychangtv. "The higher the stock price, the higher the expectations"

AIRBNB currently indicated to open with market cap close to $90bn, a 100%+ premium to the IPO price.

Founded in 2008 after co-founders Joe Gebbia, Brian Chesky and Nathan Blecharczyk came up with the idea of renting air mattresses in their San Francisco apartments, Airbnb now has more than 7m short-term listings worldwide and at $47bn would be valued more highly than Marriott, the largest hotel operator.

The sale will add billions to the fortunes of its founders and allow staff to sell up to 15% of their shares after the listing, instead of waiting for the usual lock-up period, creating more millionaires.