FT News Briefing EU leaders close in on recovery fund deal, Testing crunch warning, US economic rebound halted
Jul 21, 2020
EU leaders are nearing a major deal for a coronavirus recovery fund, aiming to support affected nations with budget rebates. Meanwhile, US lab company Quest Diagnostics warns that a second wave could overwhelm testing capacity. European banks may face staggering loan losses up to €800 billion over the next three years due to the pandemic. Additionally, insights reveal the US economic rebound has been fragile, hindered by political disputes over stimulus measures and fears of a resurgence in COVID-19 cases.
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EU Recovery Fund Deal
- EU leaders near deal on a COVID-19 recovery fund, compromising with "frugal" countries.
- The deal involves grants and loans, and the EU's next seven-year budget.
European Bank Loan Losses
- European banks may face substantial loan losses due to the pandemic's economic impact.
- Oliver Wyman predicts losses up to €800bn in a worst-case second wave scenario.
US Testing Capacity Warning
- Quest Diagnostics warns of impossible testing capacity increase for a potential second wave.
- Equipment maker limitations, not funding, hinder testing expansion.