Europe intensifies economic response to pandemic


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  • Cuba, suffering from a collapse in tourism and other problems caused by the coronavirus, is planning a “big bang” currency devaluation

  • A French football The TV deal has collapsed, a sign of how the pandemic is forcing a reassessment of how much broadcasters are paying to screen games

  • Coronavirus Infections in London rose and bucked a broadly downward trend across England, said the Office for National Statistics

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No-deal Brexit could limit momentous days

A landmark week for the EU continued as policy makers updated their economic response to the pandemic while preparing for a new relationship with their former UK partners.

The EU € 1.8 trillion budget, including a € 750 billion coronavirus recovery package, was finally agreed this morning after Poland and Hungary dropped their veto threats. The fund, a mix of grants and loans, will be disbursed in the second half of next year.

Regardless, the European Central Bank has revealed more stimulus for the Eurozone economy. It is increasing its bond purchase program by EUR 500 billion to enable commercial banks to obtain cheaper financing and extending the duration of the emergency measures. The FT announced this morning that the package had indeed been received screwed back after objections it was actually a little a too generous to the banks. The ECB will decide next week whether to hold on to its blanket resistance to dividend payments by banks during the crisis.

The FT Editorial Board welcomed the ECB plans however, warned of a long road to go, even just to hit the “new normal” as new lockdowns risked a double-dip recession.

National administrations, meanwhile, are standing still, offering a mix of loans, grants, vacation schemes, tax breaks and grants to help individuals and businesses as the virus refuses to go away. But also in France, a country well positioned to intervene because of its close ties between government and industry, the situation is just “the calm before the storm,” as our Big Read explains.

The last drama of the week revolves around France’s neighbors across the English Channel. The conclusion of Trade talks between the UK and the EU on Sunday should decide whether the disruption caused by the pandemic is due to the potential chaos of a No deal Brexit. Dutch Prime Minister Mark Rutte summed up the frustration of many involved: “It would be inexplicable to the world if Britain and Europe could not come to an agreement in these times of upheaval.”


Oil prices hit a nine month high thanks to thanks Vaccine-Based Optimismwith Shell, BP, Exxon and Chevron all enjoying price jumps. Looking ahead, analysts will be closely monitoring the impact of the January production restrictions lifted.

Line chart of $ per barrel showing oil prices hit a nine month high due to vaccine optimism

Private Debt Fund loaned to UK leisure and retail businesses have been hit hard by the pandemic and the string of bankruptcies that followed. The providers of such “Direct lending” Typically, you only get pennies back on the pound when a company goes bust.

Bar graph of the number of deals showing the pandemic is pausing deal flow for many private lenders

South Korea – Regarded by the OECD as the top performing member economy for next year – enjoys a Stock market boom thanks to global demand for semiconductors and mobile devices during the pandemic. JPMorgan predicts an average operating profit increase of 56 percent for South Korean companies in 2021, which may propel stock market valuations even higher.


It’s been a busy day for Vaccine news. The USA offered to stop the production of the Pfizer / BioNTech jab – which is now backed by a major scientific committee before it’s official FDA approval – in the hope of securing more 100 m cans. Sanofi / GSKs The candidate was delayed because of poor test results while testing for a home-grown vaccine was abandoned in Australia after participants returned “false positive” for HIV. Here is our guide to the leading Vaccine candidates.

Digital streaming has been Disney’s only bright spot this year as lockdowns fueled demand for TV-based content and helped offset losses from closed cinemas, theme parks, and movie studios, and weaker ad sales. Business columnist John Gapper warns that a move in the film industry from cinema to streaming could turn the blockbuster into an endangered species.

Shares in the engine manufacturer Rolls Royce immersed in the news that the pandemic is its resurgence Redevelopment plans. The company expects an improvement in the second half of 2021 as vaccines allow economies to reopen and international travel to begin. Our Great reading on Boeing explores the company’s resuscitation potential after its Max 737 jet is back in the air amid pandemic losses to the global aviation industry of $ 118 billion this year. Travel company TuiMeanwhile, he spoke out against requests for passengers vaccinated before flying.

Global economy

A 9 billion credit facility Asian Development Bank should the vaccination efforts in Developing countries. The initiative follows a $ 20 billion pandemic package for Asian countries in April and a $ 20 million technical assistance program in November. The World bank warned of severe economic setbacks Nigeria – is already suffering from rising unemployment and inflation and falling incomes before the pandemic – a country that is heavily dependent on oil and remittances.

Poverty forecast bar chart for the business as usual scenario (Millions), which shows Nigeria could have 100 million people in poverty by 2022

New US unemployment claims rose sharply amid the surge in Coronavirus infections and tightening restrictions. The country reported on Thursday 3,000 dead for the first time in a single day. Nursing fees are ascending under the load.

British banks are strong enough to hold off damage from the pandemic, according to today’s Bank of England Financial Stability Report, even amid the “market volatility and disruption” of Brexit. gross domestic product Data showed the Recovery in the UK Slowing down in October – before the November lockdown – with growth of just 0.4 percent. Business editor Chris Giles looks at the Advantages and disadvantages from a proposed “Wealth tax” of 5 percent to fix the country’s finances.

Say your opinion

Coronavirus vaccines finally mean light at the end of the tunnel. But there is still a long way to go before the world can say goodbye to pandemic disruptions. Can governments introduce vaccine programs quickly, efficiently, and fairly? And who should have priority? Please let us know your views – email us at [email protected]. Many Thanks

Sadev comments The pandemic leaves people over 50 with uncertain job prospects

I totally agree with the subject of this article. For those over 50, it’s a perfect storm brewing. Not just those who are unemployed, but also those who are gainfully employed but whose jobs are hanging by a thread. I think a long-term solution is for the government to facilitate borrowing for small business startups. For someone with a small capital in online trading, there are still many options. It is undoubtedly difficult and many companies are closing. But to see someone well qualified drift into poverty is quite depressing, really.


A Ultraviolet sterilization The device is being tested for use on baggage carts at Kansai Airport in Japan, with the hope that it will be operational in time for the Tokyo Olympics.

A baggage cart in the UV sterilizer

In addition, science and environmental reporter Anna Gross Video deals with new technologies such as antimicrobial coatings and new ways of using UV radiation and air conditioning to create jobs safe from coronavirus.

Last thought

Cozy but cool: Beverage editor Alice Lascelles highlights her favorite places in London for Cocktails outdoors this winter with us FT globetrotter Travel Guide.

© Cocktails on Dalloway Terrace | Rebecca hope

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