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Latest news
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UK Government delays easing of lockdown to July 19 and aims for two-thirds of population to have had two doses of a Covid-19 vaccine by then.
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The head of the World Trade Organization said trade barriers on Covid-19 medical supplies had risen and called for member states to drop them (Reuters)
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UK insurers have paid out more than £750m in business interruption claims since a landmark legal ruling in January
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Late-stage trials have shown Novavax’s Covid-19 vaccine to be 90 per cent effective and able to tackle virus variants of concern
For coronavirus updates and the latest details of the UK’s plans to delay unlocking, visit our live blog
The decision to delay next week’s final loosening of pandemic restrictions in England by four weeks until July 19 reflects growing unease across the world at the rise of new variants of coronavirus, even as vaccine programmes — in richer countries at least — step up a gear.
The recent increase in infections and deaths meant the delay in the government’s “road map” for reopening, dating from the end of February, was no real surprise. Half of UK adults have already been fully vaccinated, but the postponement gives time for what prime minister Boris Johnson called “one more heave” to get two-thirds double-jabbed by July 19.
UK business groups pleaded for more government help to face the extra costs of a delay. Banks have already made considerable preparations for a June 21 return, while from July 1 all companies are due to pay 10 per cent towards the cost of furloughing workers, as well as facing a reduction in business rates relief. A ban on commercial rent evictions also comes to an end.
The hospitality sector, which has been particularly badly affected by lockdown, warned of a “wave of business failures”. One month’s delay in reopening would cost £3bn and put 300,000 jobs at risk, it said.
Get the latest data on cases and infections and the state of government lockdowns at the FT tracker hub
Global economy
The debate about winding down US monetary stimulus could start tomorrow when the Federal Reserve begins its two-day policy meeting. Investors will be watching closely for the Fed’s thoughts on economic recovery and the recent surge in inflation. G7 leaders at the weekend backed US President Joe Biden’s approach of using government spending to kickstart the world economy, rejecting the notion of post-pandemic austerity.
Turkey is bracing for severe damage from a second lost summer of foreign tourism, which normally accounts for about 13 per cent of GDP. New travel restrictions from Russia, Germany and the UK — its three biggest markets — could mean a substantial reduction in the foreign currency inflows so vital for the country’s economy.
Industry body Make UK doubled its growth forecast for UK manufacturing this year from 3.9 per cent to 7.8 per cent as economic recovery takes hold. The outlook for profits, however, was more fragile with companies suffering from rising costs of materials and a post-Brexit increase in shipping costs.
Business
Optimism about post-pandemic travel has inspired a bidding war for car rental giant Hertz. Our Big Read charts the remarkable turnround from its filing for bankruptcy in May 2020 when it became one of the first high-profile corporate victims of the crisis.
Ireland’s Stobart Air became the latest airline to fall foul of the pandemic as it entered liquidation after failing to find a buyer. IndiGo Airlines, India’s biggest domestic carrier, is already planning for a potential third wave of coronavirus in November by building a $1bn war chest.
Mastercard, Ambev and Diageo pulled their sponsorship from the Copa America football tournament in Brazil, which kicked off on Sunday, amid the worsening coronavirus crisis. Brazil had stepped in to host the event after previous co-hosts Argentina and Colombia cancelled.
Markets
The yield on Greece’s 5-year bond fell below zero for the first time today. The European Central Bank’s decision to maintain the pace of its pandemic bond-buying programme has led to a rally in riskier eurozone debt, meaning in this case that investors are paying Athens to borrow for up to half a decade, despite the country’s soaring debt levels.
South Korean shipbuilders and sea freight companies are planning to raise billions of dollars through stock market listings as the industry profits from the recovery in global trade. Hyundai Heavy Industries, part of the world’s second-largest shipbuilder, is among those betting on a potential multiyear supercycle for trade-related industries after a decade-long slump.
Veteran investor Mohamed El-Erian writes for the FT on how this week’s US Federal Reserve meeting will be crucial for its quest to convince investors that the current jump in inflation is transitory. President Joe Biden’s economic reforms and wider global stability are at stake, he says.
Have your say
Elvira89 comments on We should pull the plug on pointless after-hours emails:
Employees are 100 per cent complicit in this. If you are answering emails you are creating expectations that you are happy to do so. You are also creating an expectation that other colleagues should be doing the same. Hence, a vicious cycle. Just disconnect and answer the next morning, the world will not collapse.
Final thought
Freedom, style, sex, power. As electric vehicles hasten the end of the age of combustion, designer Stephen Bayley reflects on our fetishisation of fast cars.
