Boris Johnson will on Tuesday map out £5bn of infrastructure projects, including hospitals and schools, as part of a new agenda to build Britain’s way out of the Covid-19 downturn.
In a speech in the midlands, the PM will outline a recovery and regional revival agenda, presenting himself as a modern-day Franklin D Roosevelt with a “new deal” to invigorate the economy.
But his list of priority projects may lead to accusations of overselling comparisons to Roosevelt’s New Deal of the 1930s, which spawned mega projects such as the Hoover Dam.
Mr Johnson’s promises to “build, build, build” represent only part of the money set aside in this year’s Budget. Chancellor Rishi Sunak will make a separate summer statement next week focusing on jobs and training, and will consider targeted stimulus measures.
Robert Shrimsley writes that the New Deal Tories show the scale of Labour’s challenge to win back their working-class electoral base. The FT View is that to remake the UK, the PM needs a competent cabinet — and a plan. (FT)
The US failed to make a shortlist of 15 countries to be exempted from an EU travel ban under a draft to be decided on Tuesday. Lufthansa will offer passengers Covid-19 tests at Frankfurt airport in an effort to avoid quarantine.
Gilead Sciences said it would charge governments $2,340 for a 5-day course of remdesivir. India’s first vaccine has been approved for human trials, while a Scottish biotech company will test an innovative T-cell therapy.
Leicester will be put under tighter lockdown from Tuesday after reporting an increase in cases, posing the UK’s first test of reopening. All England Club chairman Ian Hewitt tells the FT Wimbledon will be back next year.
Is your business ready for reopening day? Join Claer Barrett and Andy Bounds for a live video Q&A at 12pm on Wednesday, June 30.
In the news
China passes Hong Kong security law Details of the national security law, which China’s top legislative body passed on Tuesday, have not yet been released, but it is expected to trigger countermeasures from the US, which revoked the territory’s special trade status in anticipation. Economists fear increasing self-censorship. (FT)
Wirecard global fallout The German payment group’s UK subsidiary scrambled to avoid collapse on Monday and Singaporean authorities prepared to expand an “extensive” criminal investigation. But the FCA lifted a ban on Wirecard’s UK arm, allowing millions of customers to access money and make payments. (FT)
Exclusive: Santander’s new UK chairman Santander is close to naming William Vereker, previously business envoy of former prime minister Theresa May, to oversee one of the largest high street banks amid the pandemic. (FT)
Wall Street banks’ record fees Investment banking fees soared to a record $57bn this year, boosted by lucrative corporate debt sales. Goldman Sachs will maintain its dividends despite the Federal Reserve’s additional capital demands. US banks are tightening consumer lending amid difficulty distinguishing the creditworthy. (FT, WSJ)
Trump tech backlash Reddit will ban a forum for supporters of Donald Trump, following a policy review regarding hate speech. Other platforms, including Google’s YouTube and Amazon’s Twitch, are also tackling toxic content, fearing advertising boycotts. (FT, WaPo)
India blacklists Chinese apps India has banned 59 of China’s biggest mobile phone apps, including TikTok and WeChat, following the killing of 20 of its soldiers. But India’s reliance on Chinese imports, from antibiotics to solar panels, limits its ability to inflict economic pain. (FT)
Merkel offers olive branch In a show of unity with French president Emmanuel Macron, Angela Merkel made concessions to the “frugal four” nations opposed to European Commission plans for a €750bn post-coronavirus recovery fund, saying that countries must show a willingness to reform their economies. (FT)
Germany takes the helm of the EU’s rotating presidency on Wednesday with one overriding aim: to rescue the bloc from the worst economic crisis in its history. More in Coronavirus Business Update. Sign up here.
Former French PM sentenced François Fillon has been sentenced to jail for embezzlement after paying his wife more than €1m of state funds for work she never did. The scandal derailed his centre-right presidential campaign in 2017 and enabled Emmanuel Macron’s victory. (FT)
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The day ahead
UK economic insight The Bank of England’s chief economist Andy Haldane will address the pandemic’s economic effects and the implications for monetary policy on Tuesday. UK first-quarter GDP is also out. (FT)
Brexit deadline The EU and the UK agreed last year to complete assessments of financial services regulations by June 30, but the deadline will pass amid mutual recrimination — Brussels says London has answered only four of 28 questionnaires. (FT)
US pandemic response Anthony Fauci will testify before senators on Tuesday, while Federal Reserve chairman Jay Powell, who warned the US needs to “keep the virus in check”, and Treasury secretary Steven Mnuchin appear in the House. (FT)
Nearly halfway through the year, Trade Secrets checks in on its predictions for 2020, made back in January. Sign up here to get daily insights on the changing face of international trade and globalisation.
What else we’re reading
Coronavirus could kill off populism The distinguishing characteristic of the Donald Trump-Jair Bolsonaro approach to Covid-19 is a fatal inability to face reality, writes Gideon Rachman. Both men are now paying a significant political price for incompetence. (FT)
America’s divisive attorney-general William Barr has become one of Donald Trump’s most effective appointees, undermining Democrats’ investigations of the administration to protect the US president. But his efforts have generated an extraordinary backlash within the justice department. Why did the Mueller probe fail? (FT, New Yorker)
Prospering in the pandemic: gaming The coronavirus crisis has proved a bonanza for video game makers, as shut-in consumers turn to digital distraction in greater numbers and for longer sessions. Read more in our FT Series. (FT)
A hedge fund-backed coronavirus pill An experimental drug developed by a tiny biotech company offers a glimpse of hope. The twice-a-day pill could be prescribed as soon as someone tests positive for coronavirus, attacking the disease before they become seriously sick. (FT)
The woman behind Li Ka-shing Hong Kong’s undisputed dealmaking king has made about £30bn in investments over the past decade. His stake in videoconferencing group Zoom shines light on a star investor who often hides in the shadows: Solina Chau. (FT)
Conservative black voice on police reform Tim Scott, the only black Republican senator, finds himself on the frontline between Republicans and Democrats battling over reforming policing practices. On Wall Street, black bankers encounter an unwritten code on race. (FT, Bloomberg)
Is business travel dead? Michael Skapinker wrote in March that, once the Covid-19 crisis was over, business travellers would be back. Since then, he’s learned to strike relationships on video calls — and even to land contracts. (FT)
Video of the day
How coronavirus will change commuting Coronavirus could accelerate plans to cut transport emissions and curb air pollution. Leslie Hook investigates how the world’s biggest cities are using lockdown to reclaim roads for cyclists and pedestrians. (FT)
— to www.ft.com