Seven days in the Square Mile

Equity markets pushed higher – boosted by vaccine hopes and prospects of economic recovery as countries lift lockdowns. But as UK jobless claims soared at a record rate to more than two million, Chancellor Rishi Sunak warned that the economy could suffer permanent scarring – or, at the very least, a period of mass unemployment. A further 7.5 million workers are currently relying on the state to pay their wages via the extended furlough scheme. The World Bank warned that the virus would push 60 million people globally into poverty. The oil price remained stable, with Brent crude at around $35/barrel. There was speculation on Wall Street that the Fed could cut interest rates below zero for the first time. In Britain, inflation as measured on the CPI fell from 1.5% in March to 0.8% in April – its lowest since August 2016. Falling fuel prices were the main drivers pushing the index lower, but prices of toys and games, vegetables and knitting wool all rose in lockdown. Huawei, the controversial Chinese 5G telecoms supplier, warned it could go bust after Washington blocked US chipmakers from supplying it with semi-conductors. The healthcare giant Johnson & Johnson halted sales of its talc-based Baby Powder in the US, amid claims (denied) that it causes cancer. It will continue to sell the product in Britain. Grubhub, the restaurant takeaway firm, rejected a takeover offer from Uber. Facebook launched a new shopping service to challenge Amazon.