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Covid cases and vaccinations

Total global cases: 170.7 m

Total doses administered: 1.9 billion

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Latest news

  • Drugmaker Moderna has said it will increase vaccine production in Europe and deliver more doses of its original vaccine to poorer countries

  • UK mortgages retreat after ‘frenetic rush’, with net borrowing falling to £ 3.3bn in April from £ 11.5bn in March

  • British weekly Covid deaths hit lowest since September after yesterday’s news of no daily deaths from the virus for the first time since March 2020

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The “uneven and uneven” nature of the economic recovery means that the global labor market will not return to pre-pandemic levels until 2023, according to a new report released today by the International Labor Organization.

The coronavirus crisis, which has particularly affected the prospects of young workers, risks long-term “scarring” of employees and their companies, the ILO said. It has also exacerbated the existing inequalities between rich and poor countries.

For the latter, fewer jobs will mean increased poverty, especially for those in the informal economy with little social protection. In contrast, developed economies face labor shortages, especially in the United States, where some companies blame overly generous unemployment benefits for their recruitment problems.

Although the ILO has said that, thanks to a rapid vaccination program and generous stimulus packages, the United States will experience the strongest employment recovery, the Federal Reserve is still looking to make progress before ending the its emergency bond purchase program.

The ILO report follows new OECD economic projections on Monday which, while generally positive, paint a similar picture of an uneven global recovery and the message of “”more jabs, more jobs”.

Mondial economy

Australia became the sixth country to announce it was back to pre-pandemic levels, as first quarter growth figures of 1.8% meant its economy was now 0.8% larger than before the virus strike in December 2019. Determinants included an increase in business investment. and an increase in iron ore exports.

Our series on inflation continues by examining the differences in opinion between central bankers on how to encourage low and stable price growth. Yesterday’s data showed inflation in the eurozone reached 2% in May, exceeding the European Central Bank’s target for the first time since 2018 and complicating next week’s ECB decision on monetary policy.

from China The economic recovery is so strong that factories in Guangdong province cannot get enough electricity, with some being forced to shut down several days a week. The problem has been exacerbated by high temperatures as well as low rainfall affecting hydropower.

Business

Airlines are divided on the state of the industry’s recovery. American, the largest US carrier, increases capacity for summer flights, unlike rival United, with greater exposure to international flights, which schedules less. Low cost European carrier Wizz Air has warned of the lingering effects of the pandemic as it has reported losses for the current year, unlike rival Ryanair, which says it will break even over the next 12 months. Malaysia AirAsia X could soon resume operations after the approval of a restructuring plan by the shareholders.

The reading surge caused by the pandemic is not yet over. Editor Bloomsbury raised its profit forecast for the third time this year, as it reported profits for the year ending February up a third to £ 17.3million on sales growth of 14%.

Advertising company M&C Saatchi also raised its earnings outlook as the recovery in global ad spending continued. Highlights for the first quarter included a “surprisingly vibrant new business market”.

Markets

india the stock market and currency strengthened on news of the slowing rate of new coronavirus infections. Official data showed the economy started to recover in the first quarter – growing 1.6% from a year ago – before being reversed by the second wave of cases in April.

Line graph of the point level of the S&P BSE Sensex index showing that Indian stocks have reached record highs

The gathering in Oil price continued after Opec and its allies said they would stick to their plan to bring only a limited amount of new barrels to market in July. Although global demand is increasing, producers have pointed to uncertainties such as fears of coronavirus infection in India and Japan as well as the possible return of Iranian oil to the market.

Fund managers face one of the most difficult investing times in history as bond yields fall and sharply rising stock markets limit the scope for further gains, writes global finance correspondent Robin Wigglesworth. Some see the solution in a new approach to asset allocation developed by Canadian pension plans.

Bar chart of AQR's inflation-adjusted medium-term return estimates (%) showing grim outlook for pillars of the investment portfolio

Have your say

IcarusCRB’s comments on the pandemic give an unexpected boost to the UK’s productivity outlook:

The pandemic has resulted in a massive increase in productivity, especially in sectors traditionally behind in digitization, such as health services and education. The shift to online services has forced organizations to digitize their services and forced the public (especially older people) to adopt these services. The shift to working from home will allow many people to become more productive and spend less time traveling, as well as performing difficult tasks with families. The rollout of 5G has gone almost unnoticed during the pandemic, but will also have a big impact.

Final thought

Spending on work getaways has been cut by more than half during the pandemic, and ‘self-employed’ workers are increasingly trying to squeeze as many meetings as possible into one trip, mixing work and private time like never before . Is “bleisure” the future of business travel?

Canggu Coliving Villa outpost in Bali

Canggu Coliving Villa outpost in Bali

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