UK to plunge into deepest slump on record with worst GDP drop of G7

Official measure to be declared this week as coronavirus lockdown shrinks GDP by 21% in second quarter

Britain’s economy will be officially declared in recession this week for the first time since the 2008 financial crisis, as the coronavirus outbreak plunges the country into the deepest slump on record.

Figures from the Office for National Statistics on Wednesday are expected to show that gross domestic product (GDP), the broadest measure of economic prosperity, fell in the three months to June by 21%.

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Shell reports $18bn loss as global oil and gas prices collapse

Energy giant hit by massive change in fortunes as Covid-19 crisis forces writedown in asset values

Royal Dutch Shell has reported a deep financial loss after a record writedown on the value of its oil and gas assets due to the collapse in global market prices triggered by coronavirus.

The Anglo-Dutch oil giant revealed a net loss of $18.3bn (£14.1bn) for the second quarter 2020, down sharply from a net profit of $3bn over the same period last year and $2.7bn in the first three months of 2020.

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Super-rich call for higher taxes on wealthy to pay for Covid-19 recovery

Exclusive: Group of 83 wealthy individuals demands ‘immediate, substantial and permanent’ higher taxes ‘on people like us’

A group of 83 of the world’s richest people have called on governments to permanently increase taxes on them and other members of the wealthy elite to help pay for the economic recovery from the Covid-19 crisis.

The super-rich members, including Ben and Jerry’s ice cream co-founder Jerry Greenfield and Disney heir Abigail Disney, called on “our governments to raise taxes on people like us. Immediately. Substantially. Permanently”.

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Covid-19 has revealed a pre-existing pandemic of poverty that benefits the rich

The World Bank’s flawed and misunderstood poverty benchmark has led to a deceptively positive picture and dangerous complacency

  • Philip Alston is the outgoing UN special rapporteur on extreme poverty and human rights

Poverty is suddenly all over the front page. As coronavirus ravages the globe, its wholly disproportionate impact on poor people and marginalised communities is inescapable. Hundreds of millions of people are being pushed into poverty and unemployment, with woeful support in most places, alongside a huge expansion in hunger, homelessness, and dangerous work.

How could the poverty narrative have turned on a dime? Until just a few months ago, many were celebrating the imminent end of poverty; now it’s everywhere. The explanation is simple. Over the past decade, world leaders, philanthropists and pundits have embraced a deceptively optimistic narrative about the world’s progress against poverty. It has been lauded as one of the “greatest human achievements”, a feat seen “never before in human history” and an “unprecedented” accomplishment. But the success story was always highly misleading.

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‘We squandered a decade’: world losing fight against poverty, says UN academic

Goal to eradicate poverty by 2030 ‘completely off track’, says outgoing special rapporteur, with Covid-19 likely to impoverish millions more

International institutions are losing the fight against global poverty despite “self congratulatory” messages to the contrary, according to the UN’s outgoing special rapporteur on extreme poverty and human rights.

In his final report in the post, the Australian academic Philip Alston warns that states and global organisations are “completely off track” to meet the goal of eradicating extreme poverty by 2030, with more people instead likely to become highly impoverished by new shocks, including coronavirus and existing challenges like the climate crisis.

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Anger at huge shareholder payout as US chain Kohl’s cancels $150m in orders

Retailer paid $109m in dividends just weeks after cancelling clothing orders, leaving suppliers in Bangladesh facing financial crisis

Kohl’s, one of the US’s largest clothing retailers, cancelled millions of dollars worth of existing orders from Bangladeshi and Korean garment factories just weeks before paying out $109m (£85m) in dividends to shareholders, the Guardian can reveal.

The company cancelled orders of clothing worth approximately $100m from Korea and $50m from Bangaldeshi factories after the Covid-19 pandemic struck, and refused petitions from suppliers asking for the option to renegotiate payments. 

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Angela Merkel has become the spend, spend, spend chancellor | Larry Elliot

With its €130bn stimulus package, Germany is showing others how to do the recovery

And in one bound she was transformed. For Angela Merkel, the days of being lampooned as the archetypal Swabian housewife keeping tight control over the purse strings are over. Now, courtesy of a €130bn (£116bn) stimulus package, she is the spend, spend, spend chancellor.

Make no mistake, much of the past criticism of Germany’s frugal approach to government spending and budget deficits was justified. Saving some money for a rainy day is one thing but running surpluses worth 8% of national output was unnecessary and harmful to the global economy.

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Dawn of Asian century puts pressure on EU to choose sides, says top diplomat

EU foreign affairs chief says end of US-led global system may have arrived and Europe needs robust strategy for China

The Asian century may have arrived marking the end of a US-led global system, the EU’s foreign affairs chief has said amid a growing discussion in Europe on how to weave a path between China and the US.

“Analysts have long talked about the end of an American-led system and the arrival of an Asian century. This is now happening in front of our eyes,” Josep Borrell told a group of German diplomats on Monday, adding that the coronavirus pandemic could be seen as a turning point and that the “pressure to choose sides is growing”.

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Australian trade minister says ‘risk’ of trade with China may drive businesses to other markets

Australia reserves the right to take China to the WTO amid growing trade dispute, Simon Birmingham says

Simon Birmingham has warned China’s “unpredictable” trade interventions may force Australian producers to sell to other markets and diversification is to be encouraged given the “risk” of trade with China.

The trade minister told ABC’s Insiders on Sunday that Australia reserves its right to take China to the World Trade Organisation, and revealed he is still yet to hear back from his Chinese counterpart about the growing trade dispute. He said his call “ought to be returned”.

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UK government begins transatlantic trade talks with Washington

Increasing links with US will aid recovery after coronavirus crisis, says Liz Truss

Liz Truss has claimed bolstering transatlantic trade could help the economy bounce back from the Covid-19 crisis, as negotiations with Washington over a free trade deal begin by video link.

Despite the government’s negotiating objectives for the deal pointing to a modest economic gain of 0.16% of GDP over 15 years, the international trade secretary said she was keen to “make it even easier to do business with our friends across the pond”.

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China and Australia: how a war of words over coronavirus turned to threats of a trade war

Canberra’s call for an inquiry into the origins of Covid-19 sparked talk of boycotts from Beijing – but any such move could be harmful to both countries

“Downright despicable”, “petty tricks”, “menacing”, “irrational”.

The language of the diplomats and parliamentarians has been anything but diplomatic, and far from parliamentary. The robust conversations usually kept behind closed doors have tumbled into the public square, leaked to broadcasters and splashed in newsprint.

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Global markets recoil as Trump threatens US-China trade war

US president escalates attack on Beijing’s handling of coronavirus pandemic

Donald Trump’s threats to reignite the US-China trade war over coronavirus has triggered another sell-off in global financial markets, as the economic costs of the pandemic continue to mount.

Against a backdrop of rising tension between the world’s two economic superpowers, share prices resumed a downward slide on Friday with the FTSE 100 falling by 144 points, or 2.5%, in London.

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World’s stock markets soar on coronavirus treatment hopes

Investors shrug off US growth gloom after promising data from remdesivir drug trial

Shares have soared on the world’s stock markets after investors shrugged off a deep slump in the US economy and pinned their hopes on a possible breakthrough in treatment for Covid-19.

Despite news that the longest expansion in US history came to an abrupt end in the first three months of 2020, financial markets were buoyed by an update from the American biopharma company Gilead Sciences on its experimental drug remdesivir.

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Coronavirus delivers a ‘moment of truth’ on the meaning of the EU

The issue of recovery funds shapes up as an acid test of commitment to the union

The EU’s anxious debate over the bloc’s economic response to the coronavirus pandemic is at heart about the nature and competing visions of the union.

It is a perennial question found lurking in the background of all EU negotiations over long-term budgets, not least the most recent inconclusive and toxic talks in which north was pitted against south.

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World Bank warns of collapse in money sent home by migrant workers

Covid-19 unemployment expected to cause $110bn drop in remittances to developing world

The amount of money migrant workers send back to their home countries is expected to decrease by almost $110bn this year as the Covid 19 pandemic increases unemployment across the world.

Remittances to low- and middle-income countries (LMICs) are projected to fall by nearly 20% to $445bn (£360bn), “representing the loss of a crucial financial lifeline for many vulnerable households”, the World Bank said.

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Countries urged to step up spending as national goals go unmet

Campaigners call for action as majority of big countries fall short of 0.7% aid target

The world’s major powers have failed to make progress towards meeting their commitments on aid spending, according to new data, prompting calls for countries to step up in the face of the Covid-19 outbreak.

The Organisation for Economic Cooperation and Development’s (OECD) update on spending in 2019, published on Thursday, showed aid contributions by its forum of the largest donors were less than half the targeted 0.7% of their gross national income.

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Calls for debt relief to help world’s poorest nations fight coronavirus

Australia urged to use its influence to push for the permanent cancellation of all debt due from vulnerable countries in 2020

Low-income countries need their debts for 2020 forgiven, alongside billions in emergency grants to survive the Covid-19 crisis, civil society groups around the world have said, arguing the viral pandemic will hit hardest the poorest people in the poorest countries.

More than 100 civil society organisations internationally have called on creditor nations to permanently cancel all debt repayments as the “fastest way to keep money in countries and free up resources to tackle the urgent health, social and economic crises resulting from the Covid-19 global pandemic”.

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Coronavirus live news: US overtakes Italy as country with world’s highest death toll

US death toll tops 19,600. Italy and India extend lockdown, while IHME revises down forecast for number of deaths in the UK

I’m keen to share some powerful photojournalism from around the world with you.

Here’s a photograph of women in Pakistan queuing up to get government aid to support themselves and their families during coronavirus.

The latest figures for France have just been released by the health ministry. They are as follows:

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Coronavirus crisis demands that the G20 give debt relief to sub-Saharan Africa

With the IMF and World Bank spring conference approaching, research underlines need to bail out world’s poorest countries

For more than two years the World Bank and the International Monetary Fund have warned that sub-Saharan Africa stands on the verge of a debt crisis. Ever since commodity prices began to fall in 2015, the public finances of nations stretching from Nigeria to Kenya and Chad to South Africa have deteriorated.

If China is the manufacturing centre of the world, Africa is its chief supplier of essential materials, from oil and copper to the rare-earth minerals used in mobile phones. As China’s manufacturing waned in the middle of the last decade, so did the crucial foreign earnings that keep African nations afloat.

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Blindsided: how coronavirus felled the global economy in 100 days

A singular event has economists asking the same questions as everyone else: how far is there to fall – and can we ever get back?

It is New Year’s Eve 2019 and around the world stock markets are closing for business on a high note. Shares in the US are up by almost 30% on the year, those in Japan by 18%. Even in Britain, where the mood has been dampened by months of Brexit uncertainty, the FTSE 100 has risen by 12%.

Overall, it had been the best year for stocks since 2009 and traders saw no real reason why the party should not continue into 2020. The US and China looked close to an armistice in their trade war, the US central bank was stimulating the world’s biggest economy, and Boris Johnson’s decisive victory in the general election had removed any lingering doubts about whether Britain would leave the European Union.

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