Treatment hope
“Ground-breaking development”
Dexamethasone – a low-dose, inexpensive steroid treatment – “is the first drug to be shown to improve survival in Covid-19”, according to one of the chief investigators for the UK trial. Data from the trial suggests that dexamethasone reduced deaths by one-third in ventilated patients and by one-fifth in other patients receiving oxygen only. There was no benefit in patients who did not require respiratory support. The UK government’s chief scientific adviser, Sir Patrick Vallance, called this “tremendous news” and a “ground-breaking development”.
Economy contracts
Record fall
Data from the Office for National Statistics (ONS) revealed that the UK’s GDP contracted by a fifth in April – the largest monthly decline since records began. Virtually all parts of the economy were hit – with pubs, education, health and car sales contributing most to the fall. As explored in this week’s news pages, separate data showed that payroll employees fell by 2.1 per cent, or more than 600,000, from March to May, while job vacancies tumbled by 342,000 to an estimated 476,000. The UK unemployment rate held steady at 3.9 per cent for the three months to April.
US retail recovery
Positive trend
US retail sales are estimated to have risen by 17.7 per cent during May 2020, to €486bn. This follows on from a 14.7 per cent contraction in April to $413bn. But “even so”, said Dr. Kerstin Braun, President of Stenn Group, a global trade finance provider, “a full rebound is well into the future, as fears of new outbreaks remain high and social distancing measures will limit full opening of shops and restaurants”. She added that “while retail won’t truly recover until the pandemic has passed and employment has recovered, it’s refreshing to see a positive trend”.
Call to ban gambling ads
Cross-party group
A group of more than 50 MPs has called for a ban on all gambling advertising, a complete overhaul of gambling regulation in the UK and a £2 cap on online slot stakes. In its new report, the All Party Parliamentary Group (APPG) for Gambling Related Harm said that “the backdrop to our inquiry is the significant growth of online gambling over the past decade”. According to information from the Gambling Commission to the National Audit Office (NAO), licensed gambling operations in the UK saw 57 per cent growth in the 10 years to 2018-19.
Airlines sue government
14-day quarantine
Ryanair (RYA), easyJet (EZJ) and International Consolidated Airlines Group (IAG)-owned British Airways have launched legal action against the government over its coronavirus quarantine measures. The airlines warned that asking those entering the UK to self-isolate for 14 days “will have a devastating effect on British tourism and the wider economy and destroy thousands of jobs”. Global air travel almost entirely ground to a halt during April, but flights have since picked up – rising by 30 per cent last month, according to the International Air Transport Association (IATA).
Unilever unifying in London
Increasing flexibility
Unilever (ULVR) has opted to merge its Dutch Unilever NV business with its UK arm. Shareholders of Unilever NV will receive one new share in the newly merged parent group in exchange for each share currently held. The group will keep its listings in London, Amsterdam and New York, with a single class of shares and pooled liquidity. The group believes a simplified legal structure will help Unilever to unlock further M&A opportunities in the wake of the Covid-19 lockdown. The proposed unification is subject to shareholder and regulatory approval.
Domino’s: costs hit profits
2.3% sales growth
Domino’s (DOM) shares were marked down after the pizza delivery group warned that additional measures taken to protect trading during lockdown would slightly dampen first-half cash profits year on year. Domino’s saw 2.3 per cent like-for-like revenue growth from the end of 2019 up to 22 March, followed by 5.1 per cent growth between 23 March and 14 June. But it has incurred extra costs by taking safeguarding steps across its supply chain and through support offered to franchisee partners. For now, Domino’s cannot say how long the changes that it has made to its operations will continue.
The UK’s 12-month inflation rate was 0.5 per cent in May 2020, down from 0.8 per cent in April. This was the lowest figure seen since June 2016, when the 12-month consumer price inflation rate was also 0.5 per cent.
Inflation was dampened by falling prices for motor fuels and various recreational and cultural goods such as toys and computer game consoles. Food and non-alcoholic beverages gave a “partially offsetting” upward contribution to the inflation rate.
