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Latest news
Better access to diagnostics, highlighted in our explainer, will be essential to developing an “exit strategy” and easing tensions caused by lockdown fatigue. The slow scaling up of the live virus PCR test in countries including the UK has led to frustrations over swiftly tracing and isolating people who are infected, diagnosing patients and protecting healthcare workers.
The next challenge is approving and deploying antibody tests to identify those who have already been infected and developed immunity. That will improve understanding about the true spread of Covid-19, allow healthcare staff to safely treat patients and then a far wider group of people to return to work and relaunch economic growth, as FT Health points out.
Before then, blockages in production and assurances over reliability need to be resolved, as well as clarity on who will have access and how tests and results are collected. Meanwhile, fraudsters are not waiting. The UK regulator is clamping down on unsafe or unreliable tests being sold online and Interpol last month identified more than 34,000 unlicensed and fake products.
Markets
Stocks in Asia, Europe and the US dropped again on Wednesday, following the worst quarter for global markets since 2008 and fresh warnings from Donald Trump over the potential death toll. Howard Marks, the founder of Oaktree Capital Management, told investors that the recent rebound “reflected too much optimism”, given rising infection levels, healthcare pressure, job losses and company defaults ahead.
Katie Martin writes that many investors are not ready to jump back in to risky bets. “The violent phase of the adjustment has passed, they say, but the perils to investments have not.”
Financing costs in the commercial paper market now sit at the highest levels since the global financial crisis for some companies, prompting groups including cigarette maker Altria and hotel operator Marriott to search for alternatives such as bank credit lines.
Business
The Bank of England’s regulatory arm is pushing banks to stop paying bonuses, after demanding that they cancel dividend policies and set aside money for the coming months. Their shares fell on the decision, with a backlash from investors.
Alongside ventilators, the US is experiencing shortages of essential medicines from health suppliers. There was a 51 per cent increase in demand for sedatives and anaesthetics in March compared with January, a 67 per cent jump in orders for analgesic painkillers and a 39 per cent rise for neuromuscular blockers.
British American Tobacco said it was growing a potential antigen for vaccines to protect against coronavirus in genetically engineered tobacco plants — although smokers, its principal clients, are likely to be at greater risk than others from the infection. Alphaville cautioned on the timescale for a vaccine, suggesting it helped the company burnish its ESG credentials.
Global economy
France is pushing for a common EU fund to help Europe through the crisis that is limited to five or 10 years and focused on economic recovery to allay initial concerns about mutualised debt “coronabonds”. Finance minister Bruno Le Maire told the FT: “It’s absolutely crucial to keep the door open for long-term, broad instruments that would allow us to face a ‘postwar’ economic situation.”
Our current vulnerabilities seem rooted in globalisation, but the supposed choice between national resilience and economic openness is a false one, writes Martin Sandbu. “If diseases spread along our trade routes, so do the knowledge and resources that can beat them back.”
European factory output has plummeted at the greatest rate since the 2008 crisis. The supply of goods has diminished because of difficulties sourcing parts and staff unable to work amid factory closures, while the restricted movement of people and social distancing “has acted to stifle demand, delivering a double-barrelled blow to the economy,” said Eliot Kerr, an economist at IHS Markit.
The essentials
Government support packages for those unable to work mean some people are being paid more to sit at home and do nothing than careworkers and others who continue to carry out essential jobs. The latter group should be paid a “national gratitude bonus” and given longer-term job security, argues Sarah O’Connor.
Claer Barrett, FT Money editor, answers readers’ questions on how to get refunds during the coronavirus crisis.
Satellite data show China’s pollution levels are on the rise again, with nitrogen dioxide emissions increasing as power, heat and transport activity resumes. Follow other signs of the impact in our economic tracker.
Readers respond
Reagan writes: “Living in a confined space is tough. But it is done all the time: sailors on submarines, astronauts in the space station . . . people confined by extremely cold weather. The story of Shackleton’s survival after his ship Endurance was trapped in the ice for over a year is a classic. A key element to the survival of his crew was his great leadership. The American Management Association even helped sponsor a management book based on his experience . . . ”
Get in touch
How is your workplace dealing with coronavirus? Please tell us what your company is doing by emailing covid@ft.com. We may publish your contribution in an upcoming newsletter. Thanks.
Final thought
Karaoke, sharing housework, going through the closets: Patti Waldmeir says Chinese families, who are used to living in cramped spaces, seem to have weathered lockdown fairly well and offer tips for the rest of us.
Source: Economy - ft.com
