Global broadcasting icon BBC turns 100

LONDON — Global media giant the British Broadcasting Corporation (BBC) celebrates turning 100 on Tuesday with one eye on its illustrious past and another on its uncertain future.

Over a century, the BBC has established itself as one of Britain's most visible and respected global brands, delivering its original mission statement to "inform, educate and entertain".

The broadcaster reaches an audience of 492 million around the world every week, according to the corporation's 2021-2022 annual report.

BBC World Service broadcasts in 41 languages to about 364 million people a week globally.

"For a century, the BBC has been a beacon of trusted news and programming across the world, as well as being part of the fabric of the UK and one of its key institutions," BBC director-general Tim Davie said of the landmark.

"It has been a story of a devotion to public service and constant reinvention -- which those in the BBC today remain utterly committed to," he added.

For nearly 7 million people, each day starts with BBC Radio 4's flagship "Today" program, which often sets the political agenda.

At weekends, "Strictly Come Dancing", which pairs celebrities with professional ballroom dancers, has had viewers glued to their sets for 20 years and is the most talked-about television program on air.

BBC series such as "Peaky Blinders", "Fleabag" and "Killing Eve" have been exported around the world.

But the centenary comes at a time of uncertainty, with drastic budget cuts and changing viewing habits driven by the digital revolution raising questions about its future.

The government in January announced it would freeze the BBC's license-fee funding model for two years, raising fears it could be scrapped in future.

The annual charge for households with a television set is currently set at £159 (around P10,6000). 

The financial situation has been accompanied by an exodus of younger audiences towards streaming and on-demand platforms, prompting questions about why they should still pay for the BBC.

But BBC chairman Richard Sharp vowed that the broadcaster would "educate and entertain for another century."

"The BBC is one hundred today -- it's a time to celebrate, but also to embrace the future," said Sharp.

"I believe its best days are ahead. We have always innovated, changed and adapted," he added.

"By continuing to put the public first, we will continue to inform, educate and entertain for another century."

Agence France-Presse 

BoE intervenes as IMF criticises UK budget

LONDON - The Bank of England stepped in Wednesday to shore up market confidence after the International Monetary Fund criticised Britain's inflation-fighting budget.

Reacting to markets turmoil, the BoE announced it was temporarily buying up long-dated UK government bonds "to restore orderly market conditions".

However, the pound promptly slumped 1.7 percent to $1.0552.

The BoE intervention followed criticism Tuesday from the IMF, which argued that Britain's budget could increase inequality and worsen inflation.

Credit ratings agency Moody's also waded in overnight with a warning about soaring debt.

Finance minister Kwasi Kwarteng's big tax cuts and energy price freeze, aimed at boosting the UK's recession-threatened economy, appeared to have had the opposite effect as traders warn of ballooning debt to pay for the incentives.

Following last Friday's budget, UK government bond yields have soared and the pound hit a record low at $1.0350.

Critics added that Kwarteng's measures would benefit the rich more than the poorest, as millions of Britons suffer from a cost-of-living crisis.

"We have acted at speed to protect households and businesses through this winter and the next, following the unprecedented energy price rise," the Treasury said as it sought to defend itself.

"We are focused on growing the economy to raise living standards for everyone," it added, blaming sky-high oil, gas and electricity prices on Russia's invasion of Ukraine.

IMF ADVICE

In a highly unusual intervention, the IMF late Tuesday said it was "closely monitoring" developments and urged the government in London led by new Prime Minister Liz Truss to change tack.

The Fund added: "We understand that the sizable fiscal package announced aims at helping families and businesses deal with the energy shock and at boosting growth via tax cuts and supply measures.

"However, given elevated inflation pressures in many countries... we do not recommend large and untargeted fiscal packages at this juncture."

The IMF said the "UK measures will likely increase inequality" and stressed the importance of fiscal policy not working "at cross purposes to monetary policy".

Analysts warned that Britain's controversial measures could force the Bank of England to hike interest rates far higher than forecast.

"Expectations that there will be a super-size interest rate hike coming from the Bank of England to try and counter the government splurge on tax cuts and spending have increased," Hargreaves Lansdown analyst Susannah Streeter noted Wednesday.

Many central banks, including the BoE, are aggressively hiking interest rates in a bid to cool decades-high inflation. 

TAX CUTS 

In his budget, Chancellor of the Exchequer Kwarteng cut the highest rate of income tax and scrapped a cap of banker bonuses.

He also, however, announced a plan to lower income tax for all workers.

Conservative party head Truss appointed Kwarteng to replace Rishi Sunak, who reached the final two in the race to be prime minister.

Sunak had hit out strongly at Truss's promise of tax cuts, arguing that the UK priority was to first bring down the nation's inflation rate that stands at a near 40-year high of 9.9 percent. 

Moody's called Britain's new fiscal policy regime "credit negative", adding that a sustained confidence shock could "permanently" weaken its debt affordability.

Kwarteng has said he would wait until November 23 to outline plans on controlling government debt.

Agence France-Presse

Bank of England hikes rate again as UK enters recession

LONDON - The Bank of England hiked its interest rate again on Thursday to combat soaring inflation as it warned that the UK's economy had already slipped into recession.

The BoE's decision caps a busy week for central banks as its peers in the United States and elsewhere in Europe further tightened their own monetary policies in global efforts to tame runaway inflation.

The British central bank's decision had been postponed from last week following the death of Queen Elizabeth II.

The BoE met most market expectations as it lifted its key rate by 0.5 percentage points to 2.25 percent, repeating its August increase that had been the biggest rise since 1995.

Some commentators had speculated that the BoE could mirror the European Central Bank and the US Federal Reserve and spring a jumbo hike of 0.75 percentage points -- which would have been the BoE's largest in three decades.

Across the world, consumer prices have galloped to their highest levels in decades on rampant energy and food prices in the wake of Russia's war on Ukraine.

Central banks have responded by increasing their rates, fanning recession fears because they push up loan repayments for consumers and companies alike, thereby exacerbating the UK's cost-of-living crisis.

The BoE said the UK had already entered recession.

The Fed on Wednesday unveiled a 0.75-percentage-point increase, its third straight jumbo hike, one day after Sweden's Riksbank shocked markets with a jump of a full percentage point.

On Thursday, the Swiss National Bank unleashed a 0.75-percentage-point hike that lifted its policy rate out of negative territory for the first time since 2015, meaning depositors no longer have to pay to park their money at the bank.

On Thursday, the Norwegian central bank raised its rate by 0.5 percentage points, taking it to its highest level in more than a decade.

Bucking the trend, the Bank of Japan kept its ultra-loose monetary policy unchanged, sending the yen to a fresh 24-year low against the dollar.

The BoE earlier this month defended itself against accusations of being too slow to tackle sky-high inflation, after new Prime Minister Liz Truss proposed to review its operational independence.

- Tax cuts -

UK inflation eased to 9.9 percent in August but remains near a 40-year high.

Truss on Wednesday launched a six-month plan, starting in October, to pay about half of energy bills for businesses, charities, hospitals and schools, as she sought to soften the economic blow of sky-high prices.

The premier had already announced plans for a two-year energy price freeze for cash-strapped households.

Finance minister Kwasi Kwarteng will unveil Friday a mini-budget of tax cuts designed to boost economic activity, and will also outline the vast cost of the energy assistance.

Yet the package threatens to ultimately push inflation higher as a result of strengthening demand, according to US bank Citi.

"While the capping of energy prices is disinflationary in the first instance, we continue to see many of these measures as boosting demand and increasing the risk of more embedded inflation," wrote Citi analysts in a research note.

Commentators also warn the measures will ravage public finances that are already reeling from huge spending during the deadly Covid pandemic.

Barclays bank analysts estimate that the government's total cost-of-living expenditure could reach a colossal £235 billion ($267 billion).

Agence France-Presse

Charles III proclaimed new king at historic ceremony

Charles III was formally proclaimed Britain's new king by the Accession Council on Saturday in a history-laden ceremony following the death of his mother Queen Elizabeth II.

The council, televised for the first time, is a centuries-old formality to recognise the new king's sovereignty even though he automatically became monarch after the queen's passing.

The 73-year-old Charles officially took his vow as the new king, saying he was "deeply aware" of the "duties and heavy responsibility of sovereignty".

Several hundred privy councillors including current Prime Minister Liz Truss and all of her living predecessors, Charles's wife Camilla and his eldest son and heir William all attended.

Charles said his mother, who died on Thursday in Balmoral aged 96, "gave an example of lifelong love and of selfless service" that he promised to emulate.

"I know that I shall be upheld by the affection and loyalty of the peoples whose sovereign I have been called to be," he said.

He added he was "profoundly encouraged by the support of my beloved wife".

Held in a grand room at St James's Palace decked out in crimson and gold, the Accession Council took place in two parts, the first of which Charles was absent while they proclaimed him king.

The clerk of the council announced that "Prince Charles Philip Arthur George is now, by the death of our lady sovereign of happy memory, become our King Charles III... God save the king!"

The assembled councillors then repeated "God save the king".

Charles' accession will be announced publicly by a trumpet fanfare and a proclamation from a balcony of the palace at 1000 GMT.

Agence France-Presse

UK inflation jumps to new 40-year high

LONDON - British inflation surged to a new 40-year high in July on rising food prices, official data showed Wednesday, adding to a cost-of-living crisis as the country faces the prospect of recession.

The Consumer Prices Index (CPI) accelerated to 10.1 percent last month from 9.4 percent in June, the Office of National Statistics said.

The Bank of England warned earlier this month that inflation will climb to just over 13 percent this year, the highest level since 1980.

It also projected that the country would enter a recession that would last until late 2023.

The central bank raised its key rate by 0.50 percentage points to 1.75 percent at its last policy meeting, the biggest hike since 1995.

The BoE move mirrors aggressive monetary policy from the US Federal Reserve and the European Central Bank last month, as the world races to cool red-hot inflation that has been fuelled by Russia's invasion of Ukraine.

The UK's statistics office said the "largest movements" in the CPI in July came from food.

Bread and cereals were the largest contributors to the rise in food prices, followed by milk, cheese and eggs.

Agence France-Presse

UK panel does not recommend COVID vaccines for healthy 12- to 15-year-olds

UK advice contrasts with United States and Israel

LONDON - Britain's vaccine advisers said they were not recommending the vaccination of all 12- to 15-year-olds against COVID-19, preferring a precautionary approach in healthy children due to a rare side effect of heart inflammation.

The advice could see Britain pursue a different approach to the United States, Israel and some European countries, which have rolled out vaccinations to children more broadly.

However, a final decision has not been taken, as the British government said it would consult medical advisers to look at other factors, such as disruption to schools.

Many politicians and some scientists have spoken out in favor of vaccinating more children amid concern that COVID-19 could spread in schools that are reopening after summer holidays, further disrupting education.

Britain has reported more than 133,000 deaths from COVID-19 and nearly 7 million cases, and while transmission among children can be high, they are rarely severely ill from the disease.

The Joint Committee on Vaccination and Immunisation (JCVI) on Friday said children with underlying conditions that made them more at risk from COVID-19 should get vaccinated.

For healthy children, there was still a small benefit from receiving COVID-19 vaccination, and advisers said the risk-benefit was "finely balanced".

However, the JCVI said it wanted more information on the long-term effects of rare reports of heart inflammation, known as myocarditis, in young people following vaccination with Pfizer's shot.

Myocarditis is rare and normally mild, with patients usually recovering in a few days.

"Of course these vaccines do work and would be beneficial to children in terms of preventing infection and disease, but the number of serious cases that we see of COVID in children this age are really very small," JCVI member Adam Finn told Reuters.

"There are uncertainties about the long-term implications of (myocarditis), and that makes the risk-benefit balance for these children really quite tight and much tighter than we would be comfortable to make the recommendation."

UK health minister Sajid Javid, who sets policy for England, and his counterparts from Scotland, Wales and Northern Ireland, wrote to the chief medical officers (CMOs) of the four nations, asking for further advice, "including on educational impacts".

"Given the importance of this issue, we would be grateful if you could provide your advice as soon as possible," the four health ministers said in a letter to the CMOs.

The JCVI is also expected to advise on a potential booster vaccine program for the elderly and vulnerable which could start this month.

JCVI member Finn said there would be an update on boosters "within the next few days."

-reuters-

UK daily COVID cases highest in a month; Indian variant rising sharply

LONDON - Britain reported its highest daily total of new coronavirus infections in a month while cases of a variant of concern first found in India continue to climb, official statistics showed on Thursday.

The overall incidence of infections in Britain is still low, while the number of people in hospital with COVID-19 fell to its lowest level since September on Thursday.

But clusters of the B.1.617.2 variant, believed to be more transmissible than the dominant Kent variant, are growing quickly, and could derail Prime Minister Boris Johnson's plans to reopen England's economy by the summer.

British cases of the B.1.617.2 variant first found in India have risen to 3,424, up by 2,111 compared to comparable figures last week, Public Health England said.

It also represents a steep rise compared to figures given on Wednesday, when Health Minister Matt Hancock said there had been 2,967 cases of the variant.

"PHE will continue to monitor all variants closely, paying particular attention to the impact on hospitalizations and deaths which will help us to understand the protective effects of the vaccine," said Meera Chand, COVID-19 Incident Director at PHE.

Britain reported 2,874 new COVID-19 cases on Thursday, the highest daily figure for new cases since April 19

The uptick comes as Johnson eases restrictions in England, and as a quick rollout of vaccines decouples the link between case numbers and hospitalizations and deaths.

On Thursday, the total number of patients in hospital fell below 900 for the first time since September.

Britain recorded another 7 deaths within 28 days of a positive COVID-19 test, and the statistics portal showed 37.25 million people had been given a first dose of vaccine.

-reuters-

Philippines, Brazil, Mexico among those due to get Pfizer shots from COVAX in Q2

GENEVA - Some 14.1 million doses of the Pfizer BioNTech COVID-19 vaccine have been allocated to 47 countries and economies for delivery in the second quarter of this year, the Gavi Vaccine Alliance said on Monday.

Brazil, Colombia, Mexico, the Philippines, South Africa, and Ukraine are set to be among the main recipients of the Pfizer vaccine between April and June, according to Gavi, which co-leads the COVAX facility with the World Health Organization (WHO) and other partners.

The COVAX program offers a lifeline to low-income countries in particular, allowing them to inoculate health workers and others at high risk, even if their governments have not managed to secure vaccines from the manufacturers.

Australia, Britain, Kuwait, and the United Arab Emirates are due to receive their first shots via COVAX with the Pfizer doses, which is "based on current knowledge of COVID-19 vaccine supply availability", Gavi said in a statement.

The program delivered nearly 38.4 million doses of COVID-19 vaccines to 102 countries across six continents, six weeks after it began to roll out supplies, Gavi said last Thursday.

Deliveries of the AstraZeneca vaccine to 142 participants under a previously announced round were underway, "with some delays" that may extend deliveries past May, Gavi said on Monday.

Reduced availability delayed some deliveries in March and April, and much of the output of the Serum Institute of India, which makes the AstraZeneca vaccine, is being kept in India, where the number of daily infections is spiraling.

The chief executive of Gavi, Seth Berkley, said last Friday that COVAX aimed to deliver one third of a billion COVID-19 doses by mid-year, on the way to more than 2 billion in 2021.

-reuters-

World reacts to death of Britain's Prince Philip

LONDON - Prince Philip, husband of Queen Elizabeth and a leading figure in the British royal family for almost seven decades, has died aged 99, Buckingham Palace said on Friday.

Here are reactions from major public figures in Britain and around the world.

UK PRIME MINISTER BORIS JOHNSON

"We remember the Duke ... above all for his steadfast support for Her Majesty the Queen, not just as her consort, by her side, every day of her reign, but as her husband, has strength and stay of more than 70 years. And it is to Her Majesty, and her family, that our nation's thoughts must turn today."

"Like the expert carriage driver that he was he helped to steer the royal family and the monarchy so that it remains an institution indisputably vital to the balance and happiness of our national life."

JUSTIN WELBY, ARCHBISHOP OF CANTERBURY

"I join with the rest of the United Kingdom and the Commonwealth in mourning the loss of His Royal Highness Prince Philip, The Duke of Edinburgh, and give thanks to God for his extraordinary life of dedicated service."

"On the occasions when I met him, I was always struck by his obvious joy at life, his enquiring mind and his ability to communicate to people from every background and walk of life. He was a master at putting people at their ease and making them feel special."

UK OPPOSITION LABOUR PARTY LEADER KEIR STARMER

"The United Kingdom has lost an extraordinary public servant in Prince Philip."

"Prince Philip dedicated his life to our country - from a distinguished career in the Royal Navy during the Second World War to his decades of service as the Duke of Edinburgh."

"However, he will be remembered most of all for his extraordinary commitment and devotion to The Queen."

SCOTTISH FIRST MINISTER NICOLA STURGEON

"I am saddened by news that the Duke of Edinburgh has died. I send my personal and deepest condolences - and those of @scotgov and the people of Scotland - to Her Majesty The Queen and her family."

INDIAN PRIME MINISTER NARENDRA MODI

"He had a distinguished career in the military and was at the forefront of many community service initiatives. May his soul rest in peace."

IRISH PRIME MINISTER MICHEAL MARTIN

"Saddened to hear of the death of HRH Prince Philip, Duke of Edinburgh. Our thoughts and prayers are with Queen Elizabeth and the people of the United Kingdom at this time."

SINN FEIN LEADER MARY LOU MCDONALD

"Sincere condolences to Queen Elizabeth and family on the death of her husband Prince Phillip. Sympathies to those of a British identity on our island, for whom his death will be felt as a great loss."

FORMER US PRESIDENT GEORGE W. BUSH

"Throughout his long and remarkable life, he devoted himself to worthy causes and to others. He represented the United Kingdom with dignity and brought boundless strength and support to the sovereign. Laura and I are fortunate to have enjoyed the charm and wit of his company, and we know how much he will be missed."

FORMER BRITISH PRIME MINISTER TONY BLAIR

"He will naturally be most recognised as a remarkable and steadfast support to the Queen over so many years. However, he should also be remembered and celebrated in his own right as a man of foresight, determination and courage."

NEW ZEALAND PRIME MINISTER JACINDA ARDERN

“Prince Philip will be fondly remembered for the encouragement he gave to so many young New Zealanders through The Duke of Edinburgh’s Hillary Award. In over fifty years of The Award in New Zealand, thousands of young people have completed life-changing challenges through the programme.”

KING HARALD OF NORWAY

"Our thoughts are with Queen Elizabeth and the rest of her family. We also send our condolences to the British people."

KING KARL XVI GUSTAF OF SWEDEN

"Prince Philip has been a great friend of our family for many years, a relation which we have deeply valued. His service to his country will remain an inspiration to us all."

-reuters-

Global coronavirus infection cases top 100 million

GENEVA - The number of confirmed coronavirus cases around the world has surpassed 100 million, with an accelerated pace of infection, a tally by Johns Hopkins University showed Tuesday.

The figure has doubled in less than three months since reaching 50 million in early November. The death toll from COVID-19, the disease caused by the novel coronavirus, has already exceeded 2.1 million around the globe, according to the U.S. university data.

While some countries are now in the midst of distributing coronavirus vaccines, it remains uncertain when the pandemic will be subdued and economic activities will return to normal.

By country, the United States alone has reported over 25 million coronavirus cases with some 420,000 deaths, making it the hardest-hit nation in the world.

In terms of the number of COVID-19 cases, India has reported the second-highest total of about 11 million cases, followed by Brazil with nearly 9 million.

With Britain and Russia both reporting some 3.7 million cases, the five countries account for more than half of the world's coronavirus cases, the university tally showed.

The number of confirmed COVID-19 cases worldwide has grown at a pace of roughly 4 million to nearly 5 million per week since mid-December, according to the World Health Organization.

The latest data suggest that the world health crisis has not abated at all despite efforts by countries around the globe to prevent the spread of the virus by shutting down businesses, restricting travel, tightening border controls and promoting social distancing.

Hospitals and clinics are running low on beds and coronavirus vaccines are also in short supply in some countries, while some variants of the coronavirus have been detected in countries such as Britain and South Africa.

-Kyodo News-

UK starts mass COVID vaccination program

LONDON - Britain on Tuesday hailed a turning point in the fight against the coronavirus pandemic, as it begins the biggest vaccination program in the country's history with a new COVID-19 jab.

The first patients in line on what has been dubbed "V-Day" -- the over-80s, care home workers and at-risk frontline health and social care staff -- will roll up their sleeves for an initial dose from early morning.

They will then require a second jab in 21 days' time.

Last week, Britain became the first country to approve the Pfizer-BioNTech vaccine, raising hopes of a breakthrough in the pandemic, which has killed more than 1.5 million worldwide.

Britain has been one of the worst-affected countries in the world, with more than 61,000 deaths in the outbreak from 1.6 million cases.

Prime Minister Boris Johnson, who spent days in intensive care with COVID-19 earlier this year, called it a "huge step forward in the UK's fight against coronavirus."

UK Health Secretary Matt Hancock, who has offered to have the jab on live television to allay public fears, said the rollout was a "key moment" that would protect the most vulnerable.

The head of the state-run National Health Service in England, Simon Stevens, said it was a "decisive turning point" against the "greatest health challenge" since the NHS was founded in 1948.

Regulatory approval for the vaccine was given last Wednesday, sparking a race against time to prepare scores of vaccination centers across the country.

The UK has ordered 40 million doses of the jab -- enough to vaccinate 20 million people -- with 800,000 in the first batch.

Up to 4 million doses are expected by the end of December.

QUEEN COULD LEAD WAY

The mass vaccination drive is a coordinated response by all 4 nations of the UK -- England, Scotland, Wales and Northern Ireland -- which normally set their own health policies.

The public has been largely favorable to the rapid approval of the vaccine, but ministers and health professionals are aware they still need to combat mistrust.

The independent Medicines and Healthcare products Regulatory Agency maintains that no corners were cut and its assessment and approval procedures met stringent international norms.

NHS England said thousands had already been given the jab during trials with no serious side effects.

Nevertheless, it has been reported Queen Elizabeth II, who at 94 is among those first in the line for the vaccination because of her age, could front a public awareness campaign urging compliance.

The government said it will hand out vaccine cards to remind people to get the booster after 3 weeks, but insisted it was not introducing immunity certificates.

'MARGINAL IMPACT' IN WINTER

The chief medical officers of England, Scotland, Wales and Northern Ireland said the vaccine will as a result only have a "marginal impact" on hospital numbers over the winter months.

Johnson called for patience and urged the public to stick to strict social distancing guidelines to prevent a spike in cases, particular as rules are relaxed over Christmas.

Health officials have already run into a logistical headache about how to administer the vaccine to elderly or infirm care home residents.

The vaccine needs to be stored at -70 degrees Celsius (-94 Fahrenheit), leaving hospitals and other medical hubs as the only places able to deal with such ultra-low temperatures.

With the Pfizer-BioNTech drug made in Belgium, concerns have also been raised about potential disruption to supply when Britain leaves the European Union's single market and customs union.

But the UK government said the military is on stand-by to air-lift the vaccine if there is any border disruption from Jan. 1.

The bulk of Britain's vaccine requirements are expected to be met by a jab developed by AstraZeneca and the University of Oxford, which is awaiting regulatory approval.

The government has ordered an initial 100 million doses of the drug, which is cheaper to manufacture, and easier to store and transport using conventional fridges.

Agence France-Presse

Britain to stop mobile operators selling 'locked' handsets

LONDON - British mobile operators will be barred from selling smartphones locked to their networks, regulator Ofcom said on Tuesday, a change designed to remove a barrier to switching networks for some customers.

Companies including BT/EE, Tesco Mobile and Vodafone sell phones that cannot be used on other networks unless they have been unlocked, a potentially complex process that can cost about 10 pounds ($13), Ofcom said.

The ban will come into effect in December 2021.

O2, Sky, Three and Virgin Media sell unlocked devices to their customers.

The move is part of a package of measures designed to ensure customers are treated fairly and to make switching easier, Ofcom said.

It said it would consult on proposals to make it easier to switch from fixed-line broadband providers that use Openreach's copper network to those that use completely separate networks, such as Virgin Media, CityFibre, Gigaclear or Hyperoptic. 

(Reporting by Paul Sandle, editing by Estelle Shirbon)

-reuters-

UK economy loses £22 billion as virus ravages tourism: study

LONDON - Britain's economy will lose about £22 billion ($29 billion, 24 billion euros) this year on the coronavirus-induced collapse of global travel, which could imperil three million jobs, an industry body forecast Wednesday.

International visitor spending could plunge by 78 percent from 2019, equating to a loss of £60 million per day or £420 million a week, the World Travel & Tourism Council (WTTC) predicted in a key report.

"Travellers and tourists are staying away from the UK in droves because of continuing uncertainty around travel restrictions designed to curb the spread of COVID-19," the WTTC stated.

It continued: "The severe impact on UK travel and tourism is laid bare by WTTC as the economic fallout from coronavirus continues to burn its way through the sector. 

"Nearly three million jobs in the UK supported by travel and tourism are at risk of being lost in a 'worst case' scenario mapped out by WTTC economic modeling."

The nation's economy shrank by one fifth in the second quarter, more than any European neighbour, as the lockdown plunged the country into its deepest recession on record.

Tourists remain reluctant to visit because Britain is the European country worst hit by the coronavirus. 

YEARS TO RECOVER

Travel has also been discouraged after the UK government recently re-imposed quarantine on those returning from nations including Austria, Croatia, France, the Netherlands and Spain.

The WTTC added Wednesday that London has been hardest hit by the travel collapse because around 85 percent of tourist spending in the capital is from foreign visitors.

"The economic pain and suffering caused to millions of households across the UK, who are dependent upon Travel & Tourism for their livelihoods, is evident from the latest figures," added WTTC President Gloria Guevara in the report.

"The lack of international travel caused by the pandemic could wipe out more than £22 billion from the UK economy alone... from which it could take years to recover. 

"It could also threaten London's position as one of the world's premier hubs for business and leisure travel which could see other destinations take over.

"We urgently need to replace stop-start quarantine measures with rapid, comprehensive and cost-effective test and trace programs at departure points across the country."

British tourism's lobbying body VisitBritain had forecast Tuesday that the number of foreign tourists will plummet by 73 percent in 2020 to 11 million people on the back of the pandemic, which has grounded aircraft worldwide.

Agence France-Presse

AstraZeneca starts UK coronavirus drug trial

LONDON - Pharma giant AstraZeneca said Tuesday it had begun a clinical trial of a drug designed to both prevent infection and treat people with COVID-19, with the first volunteers receiving doses.

The drug, known as AZD7442, is a combination of two antibodies and is being tested on 48 healthy people aged between 18 and 55, the company said.

"This trial is an important milestone in the development of our monoclonal antibody combination to prevent or treat COVID-19," said Mene Pangalos, executive vice-president of biopharmaceuticals research and development at AstraZeneca.

The company said the trial would help evaluate the safety of the drug and be used both to prevent the disease and to stop it from progressing in patients already infected. 

Results from the trial are expected by the end of this year.

This latest trial involving AstraZeneca, which has its global headquarters in Cambridge, eastern England, comes in addition to its partnership with the University of Oxford on the development of a separate coronavirus vaccine, which is said to have produced encouraging results.

News of the latest trial prompted shares in AstraZeneca to rise in early trading on Tuesday.

Agence France-Presse

UK state debt tops $2 trillion on virus support

LONDON - British government debt has exceeded £2 trillion for the first time following massive state borrowing as the coronavirus pandemic pushed the UK economy into a record recession, official data showed Friday.

At the end of July, total accumulated debt hit £2.004 trillion ($2.61 trillion, 2.2 trillion euros), the Office for National Statistics (ONS) said in a statement.

That was equivalent to more than 100 percent of the country's annual gross domestic product, or total economic output, for the first time since 1961.

By comparison, Apple this week became the first US company to have a market valuation totaling $2 trillion (£1.5 trillion), boosted as it is seen as a key winner in the new post-coronavirus economy.

Compared with July 2019, UK debt increased by £227.6 billion, reflecting the huge increase in borrowing needed to tackle the pandemic.

'SIGNIFICANT STRAIN'

"This crisis has put the public finances under significant strain as we have seen a hit to our economy and taken action to support millions of jobs, businesses and livelihoods," finance minister Rishi Sunak said.

"Without that support things would have been far worse."

Net borrowing between April and the end of July is estimated to have hit £150.5 billion, the ONS said.

Last month's figure alone came in at £26.7 billion, as the UK emerged from a strict lockdown imposed at the end of March to curb the spread of the coronavirus.

"Today's figures are a stark reminder that we must return our public finances to a sustainable footing over time, which will require taking difficult decisions," said Sunak, whose official title is Chancellor of the Exchequer.

"It is also why we are taking action now to support the growth and jobs which pay for our public service, by helping businesses to reopen safely."

POUND PUMMEL

The pound fell by more than 1.0 percent against the dollar on Friday as the EU and Britain traded blame for the lack of progress after the latest round of post-Brexit trade talks, with Brussels warning that a deal looked unlikely.

Sterling was changing hands at $1.3074 in afternoon trade, compared with $1.3214 late Thursday.

The pound is being punished "by Brexit talks which seem to be going nowhere," said Neil Wilson, analyst at Markets.com.

"The two sides are still far from reaching agreement on key terms" of their post-Brexit relationship.

RETAIL RECOVERY

Separately, data showed that British retail sales jumped by 3.6 percent in July from June as shops, restaurants and pubs reopened.

"Retail sales have now regained all the ground lost during the height of the coronavirus restrictions as more stores open for trade and online sales remain at historically high levels," ONS statistician Jonathan Athow said.

"While still below their pre-pandemic levels, both fuel and clothing sales continued to recover.

"Meanwhile, food sales fell back from their recent peaks as people started to venture back into pubs and restaurants," Athow said.

Marks and Spencer, the British food and clothes retailer, announced this week that it was cutting 7,000 jobs as COVID-19 increasingly pushes customers to shop online.

The company joins the likes of UK department store chains Debenhams and John Lewis, as well as pharmacy group Boots, in cutting thousands of jobs owing to pandemic fallout.

Britain's economy shrank by one fifth in the second quarter, more than any European neighbor, as the lockdown plunged the country into its deepest recession on record.

Even though the UK economy is beginning to rebound as the government eases strict confinement measures -- private sector output grew rapidly in August according to data Friday -- analysts expect a surge in unemployment by the end of the year.

In October, Sunak plans to end the government's furlough scheme that is paying up to 80 percent of wages for around 10 million workers during the pandemic.

Agence France-Presse

Britain bans China's Huawei, handing US big win

LONDON - Britain on Tuesday bowed to growing US pressure and ordered the phased removal of Chinese telecoms giant Huawei from its 5G network despite warnings of retaliation from Beijing.

The policy reversal hands a long-sought victory to US President Donald Trump's administration in its geopolitical tug-of-war with China.

The White House said the decision "reflects a growing international consensus that Huawei and other untrusted vendors pose a threat to national security, as they remain beholden to the Chinese Communist Party".

But the move threatens to further damage Britain's ties with the Asian power and carries a big cost for UK mobile providers that have relied on Huawei equipment for nearly 20 years.

Huawei called it "politicized" and likely to put Britain "in the digital slow lane".

The politically-fraught change in Britain's digital future was made by Prime Minister Boris Johnson during a meeting with his cabinet and National Security Council.

It requires companies to stop buying new 5G equipment from Huawei starting next year and strip out existing gear by the end of 2027.

"This has not been an easy decision, but it is the right one for the UK telecoms networks, for our national security and our economy," digital minister Oliver Dowden told parliament.

US SANCTIONS

Johnson infuriated Trump and upset some members of his own Conservative party by allowing the Chinese leader in global 5G technology to help roll out Britain's speedy new data network in January.

The UK was then completing its tortuous departure from the European Union and looking to establish strong ties with powerful Asian economies that could fulfill Johnson's vision of a "Global Britain".

But the Trump administration told the UK government that its choice imperiled intelligence sharing because British signals could be intercepted or manipulated by China.

Washington believes the private company can also shut down rival countries' 5G networks under Beijing's orders in times of war.

Huawei has always denied this and pointed to two decades of cooperation with British security agencies that checked on the safety of its existing 3G and 4G networks.

The British review was triggered by Washington sanctions in May that blocked Huawei's access to US chips at the heart of 5G networks.

The sanctions did not impact older 3G and 4G providers and Britain left its guidance for those networks unchanged.

'OUTAGES'

Johnson had come under intensifying pressure to not only dump Huawei but also adopt a tough line with China for its treatment of Hong Kong and repression of ethnic Uighurs in the western Xinjiang region.

But he also pledged to voters last year to bring broadband access to all Britons by 2025.

British telecoms companies had lobbied strongly against the policy reversal because of the cost of taking existing equipment out and finding untested alternatives.

Dowden conceded Britons will now have to wait longer to get full access to the speedy new network.

"This means a cumulative delay to 5G roll-out of two to three years and costs of up to £2 billion ($2.5 billion, 2.2 billion euros)," he said. 

"This will have real consequences for the connections on which all our constituents rely."

But officials insisted that Huawei had managed to install only a "small amount" of equipment since the 5G system began being offered to UK consumers last year.

DIVERSIFICATION

Johnson has challenged the Trump administration to come up with a reliable and cost-effective alternative to the Chinese firm.

Britain is pushing for the creation of a 5G club of nations that can pool their resources and provide individual components for an alternative solution that could be applied across the world.

The UK government said the process would begin with South Korea's Samsung and Japan's NEC -- two veterans with broad production capabilities -- while offering protection for Finland's Nokia and Sweden's Ericsson to ensure they remained viable players in the field.

Ericsson's regional head Arun Bansal said his firm was "ready to work with the UK operators to meet their timetable, with no disruption to customers".

Nokia's chief executive for UK and Ireland, Cormac Whelan, said the firm also has "the capacity and expertise to replace all of the Huawei equipment in the UK's networks at scale and speed".

But UK officials caution that all existing players have some Huawei equipment in their supply chains that need to be taken into account.

-Dmitry Zaks, Agence France-Presse-

Shell says will take up to $22 billion hit from coronavirus

LONDON — Anglo-Dutch energy giant Royal Dutch Shell will take a vast second-quarter charge of up to $22 billion due to coronavirus and collapsing oil prices, it announced Tuesday.

The company said in a statement that it would face a charge of between $15 billion and $22 billion in the second quarter, after reviewing chronic fallout from the deadly COVID-19 outbreak that crashed global demand for energy.

"In the second quarter of 2020, Shell has revised its mid and long-term price and refining margin outlook reflecting the expected effects of the COVID-19 pandemic and related macroeconomic as well as energy market demand and supply fundamentals," the London-listed firm said.

"This has resulted in the review of a significant portion of Shell's upstream, integrated gas and refining assets." 

The energy major added that the move also reflected a planned reshaping of refining activities as it seeks to move towards becoming carbon neutral by 2050.

Shell's announcement comes after rival BP revealed earlier this month that it was taking a hit of between $13 billion and $17.5 billion in the same period as a result of "sustained" coronavirus fallout that ravaged the world's appetite for oil.

Agence France-Presse

Bank of England rebuilds stimulus war-chest with an extra 100 bln pounds

LONDON - The Bank of England increased its bond-buying program by 100 billion pounds ($125 billion) on Thursday as it sought to help steer the economy away from a record slump in March and April caused by the coronavirus lockdown.

The BoE kept its benchmark interest rate at 0.1%.

Eight members of the nine-strong Monetary Policy Committee voted to increase the bond purchase program while BoE Chief Economist Andy Haldane voted for no increase.

All nine members voted to keep Bank Rate unchanged.

The central bank said it would spend all the extra 100 billion on government bonds but would slow the pace of its purchases, saying it expected the new total 745 billion-pound target would be hit by the end of the year.

A Reuters poll of economists had pointed to a 100 billion-pound increase in the asset purchase program and Bank Rate remaining at 0.1%.

The BoE is using its bond-buying program as its main policy tool as it tries to help steer Britain's economy away from a record 25% slump in March and April.

There was no mention of the negative interest rates - an option the central bank has said it will consider - in the minutes of the BoE's policy meeting.

($1 = 0.7981 pounds) (Reporting by William Schomberg, editing by David Milliken)

-reuters-

One-fifth of Britain's coronavirus patients were infected in hospitals - Telegraph

About one in five of Britain's patients with COVID-19 caught the disease while in hospital, the Daily Telegraph newspaper reported, citing papers by government scientists.

At the peak of the coronavirus outbreak in Britain, transmission within hospitals was believed to account for up to 22 percent of cases in hospitalized patients, and up to 11 percent of deaths, the report added.

Data from Public Health England showed that as Saturday, the UK has logged 292,950 cases of the disease, with 41,481 deaths.

-reuters-

Queen Elizabeth back in the saddle as British lockdown eases

LONDON -- Britain's Queen Elizabeth was photographed riding a 14-year-old Fell pony in Windsor Home Park on Sunday as the country eases stringent measures to stop the spread of the novel coronavirus.

The Queen has been living at Windsor Castle, west of London, during the lockdown with her 98-year-old husband Prince Philip.

From there, she has issued a number of rallying messages to the nation, including televised addresses that have been a rarity during her 68-year reign.

-reuters-