FT News Briefing

The European Central Bank will now accept ‘fallen angel’ bonds as collateral, helping firms amidst the pandemic's financial fallout. Oil prices surged following heightened tensions in the Middle East. Meanwhile, U.S. business groups are advocating for legal protections against COVID-related lawsuits. In Russia, oligarchs are stepping in to support local economies, contrasting their actions with Western government responses. The financial pressures from the pandemic are mounting on Russia's revenues, revealing significant economic vulnerabilities.

Oil prices are in turmoil as US crude drops dramatically, with Brent falling below $20 per barrel for the first time in 18 years. Meanwhile, Netflix reports a staggering surge of 16 million new subscribers, benefiting from pandemic lockdowns. The aerospace industry faces a crisis with Boeing and Airbus slashing production and adapting to new health standards due to declining air travel. These sectors are navigating a landscape drastically reshaped by COVID-19 and its economic impacts.

US oil prices made history by plunging into negative territory, driven by a combination of decreased demand and a price war. The shocking implications for producers and the industry at large are explored. Additionally, the scandal surrounding Singapore oil trader Hin Leong Trading, which reported $800 million in hidden losses, raises serious questions about financial mismanagement. The ongoing challenges of the U.S. small business loan program and the UK's furlough scheme provide further context to the economic fallout.

Negotiations are heating up in Congress over a $300 billion aid package aimed at supporting small businesses struggling from the pandemic. As states face unprecedented revenue shortfalls, discussions around federal assistance are intensifying. Meanwhile, the European Central Bank considers creating a bad bank to tackle the issue of non-performing loans. On the global stage, investors are hesitating in response to calls from the G20 for emerging markets to receive a respite on debt repayments.

President Trump reveals new guidelines for reopening the US economy while stock futures soar due to promising results from a coronavirus drug trial. Meanwhile, French President Macron issues a dire warning about the EU's future, urging wealthier nations to support struggling economies like Italy. Additionally, Gulf sovereign wealth funds are pivoting to seize undervalued assets as global markets shift. It's a compelling look at economic resilience amid crisis.

The podcast dives into how the Eurozone's debt is soaring towards 100% of GDP due to the pandemic, especially for countries like Italy. Major U.S. banks are bracing for more loan losses, signaling a tough economic outlook. Meanwhile, the U.S. faces deeper-than-expected impacts from lockdowns. On the other side, China has cut its key lending rate to a record low in response to economic challenges, highlighting a liquidity crisis affecting sectors like aviation.

The US Treasury has struck a deal for a $25 billion airline bailout. Meanwhile, JPMorgan Chase and Wells Fargo are boosting loan-loss provisions, anticipating pandemic-related financial strain. An IMF report warns of enduring scars on the global economy as the crisis could lead to greater corporate bankruptcies. With cash reserves dwindling and heavy reliance on fiscal stimulus, the outlook for advanced economies appears grim.

Venture capital funding in China is bouncing back after lockdowns, signaling a potential recovery. Amazon plans to add 75,000 new jobs to meet pandemic-driven demand. Meanwhile, oil traders are skeptical about compliance with OPEC's recent production cuts. The geopolitical dynamics behind these cuts add further complexity. Lastly, WeWork's struggles are shedding light on the future of real estate in a post-pandemic world, hinting at the evolving demands of workspaces.

Wuhan has emerged from the world's largest mass quarantine, cautiously reopening despite fears of a second COVID-19 wave. Meanwhile, Japan grapples with a recent spike in cases, opting for partial lockdowns instead of full restrictions. The podcast delves into the resilience of businesses in Wuhan, particularly comparing state-owned and smaller enterprises facing post-lockdown challenges. It also discusses Japan's economic strategies and the public debate surrounding its pandemic response, highlighting the complexities of managing health and economic stability.

Wall Street banks are bracing for more stock market declines, despite recent optimism. A clash is brewing between the Netherlands and Italy over emergency lending terms amid the Eurozone's financial crisis. Meanwhile, Singapore faces a third wave of COVID-19, prompting a near-total lockdown and significant economic relief measures. The discussions around bailout conditions highlight the complexities and tensions within the EU as countries navigate recovery efforts.