Seven days in the Square Mile

The price of oil rallied from its lows as concerns over storage capacity eased. Brent crude rose to $22.73/barrel midweek, and the US WTI benchmark escaped its plunge into negative prices, rising to $14.13/barrel. The FTSE 100 broke back through the 6,000 barrier. Barclays reported bumper profits in its investment bank. The transatlantic rally gathered strength after the US biotech giant Gilead reported positive results from a study of its Remdesivir drug. Hopes of a coronavirus treatment helped alleviate a 4.8% annualised fall in US GDP in the first quarter – the biggest quarterly decline since 2008.

EU leaders agreed to draw up plans for a s1trn emergency fund to help rebuild battered economies. The credit-rating agency Fitch joined Moody’s in downgrading Italy’s rating to a single notch above “junk”, saying its virusrelated jump in debt increased doubts about the sustainability of Rome’s borrowings.

The fallout in aviation continued. Boeing tabled plans to cut 10% of its workforce of 150,000 people, saying the pandemic had delivered “a body blow”; BA said it will cut 12,000 jobs. The Association of British Insurers said the industry expects to pay out a record £1.2bn in claims from those hit by the crisis – even though most companies weren’t covered against Covid-19. The retail bellwether Next cancelled £1bn in orders and scrapped its dividend, citing a larger retail sales collapse than expected.