Governments and businesses in developing countries borrow in foreign markets at a record pace early 2021, but investors say the risks increase because some countries are experiencing a resurgence of the coronavirus. Borrowing through Eurobonds hit a new quarterly high in the three months to March, with fundraising reaching $ 191 billion.
Activity in the euro area services sector returned to growth in April for the first time since last summer despite continued restrictions to limit the spread of the coronavirus, while factories reported a record expansion. The IHS Markit euro area flash purchasing managers index for services rose to 50.3 in April, from 49.6 in March.
Senior bankers and business leaders have warned that the uptake of the UK’s new turnaround loan program has been slow, blaming more rigorous checks and higher interest rates compared to other pandemic support programs. Applications were in the “low thousands” during the first week, with fewer accepted as potential borrowers.
British opposition party Friday called the government to explain why Greensill Capital was approved to grant loans under a Covid-19 support program last year, when it was clear at the time that the company was in financial problems. The job required Chancellor Rishi Sunak to release all recordings of text messages, calls and informal meetings.
US regulators have recommended healthcare providers resume using Johnson & Johnson’s Covid-19 vaccine, after the benefits were concluded, outweighed the risks of serious blood clotting problems. The Food and Drug Administration and the Centers for Disease Control and Prevention said on Friday they were lifting their recommended break.
Global oil activity picks up but US shale recovery from last year crude oil price crash remains modest, Schlumberger, the world’s largest oilfield services company, said on Friday. the company reported a decline in fourth quarter revenue, but exceeded analysts’ expectations for net income and earnings per share.
Volkswagen warned top managers to prepare for higher production in the second quarter than the first due to the global chip shortage. The crisis, which began last year but was exacerbated by storms in Texas and a fire at a chip factory in Japan, comes as manufacturers banked on a post-pandemic recovery.
American consumers are leading the rebound spending on travel and entertainment, according to American Express, but weak demand could mean spending recover for years. By the end of 2021, the company expects travel and entertainment spending across the group to recover 70% from pre-pandemic levels.