Stock markets jump as US inflation cools

NEW YORK -- Stock markets bounced on Wednesday as data showed US inflation cooled more than expected in June, raising hopes that the Federal Reserve will soon end its cycle of interest rate hikes.

The dollar fell against other major currencies while oil prices jumped, with the international benchmark, Brent North Sea crude, breaching the $80-per-barrel mark.

The Fed and other central banks have been raising borrowing costs in efforts to bring down consumer prices, which jumped as countries emerged from the Covid-19 pandemic and soared further following Russia's invasion of Ukraine last year.

Official data on Wednesday showed the US consumer price index (CPI) rose 3.0 percent from a year ago last month, down from 4.0 percent in May, coming in slightly lower than analysts expected.

While Fed officials have signaled that further rate increases are likely needed to bring inflation back to their two percent target, the June CPI report heightens market doubts about the number of additional increases needed down the line.

The Fed paused its aggressive monetary tightening at its last gathering in June but Chair Jerome Powell has warned that two more hikes were probably needed by the end of the year.

Futures markets still expect a Fed rate hike in July, but not in September.

"The Fed is extremely likely to raise interest rates by another 25 basis points but there's a good chance that it could now be the last," Craig Erlam, analyst at trading platform OANDA, told AFP.

"We're seeing progress across the board at this point, albeit more slowly than many will have hoped, but there's no longer a necessity for the Fed to be so aggressive," Erlam said.

CMC Markets analyst Michael Hewson said that the latest data make clear that "further rate hikes beyond July will be a big ask, and probably won't happen, hence today's US dollar weakness."

Nevertheless, Fed officials would likely continue to adopt a hawkish tone, he said, in order to keep market expectations in line.

Dollar sags

Wall Street stocks spent the entire session in positive territory, with the S&P 500 winning 0.7 percent, while European markets extended earlier gains following the US inflation data.

London equities had already climbed after the Bank of England announced that all major UK retail lenders passed stress tests to assess their resilience to economic shocks.

The pound rose above $1.30 for the first time since April 2022 while the euro also advanced to multi-month highs.

Higher interest rates make a currency attractive to investors looking for higher returns.

Asian equities have meanwhile enjoyed a broadly positive week so far after China signaled a long-running crackdown on the tech sector was nearing an end, while officials also pledged help for ailing real estate developers.

That was followed by reports of further growth-boosting measures and data showing new loans in China had picked up in June thanks to a central bank interest rate cut.

Optimism is now building for more announcements aimed at kickstarting the world's number two economy as its post-Covid recovery sputters.

Agence France-Presse

British crypto lender suffers $200 million hack

PARIS — Hackers on Monday stole almost $200 million from a British company that specializes in lending to crypto projects, a security firm said, in the biggest such attack for months. 

The security firm PeckShield pointed out the apparent hack to British lender Euler on Twitter, posting details of transactions it said showed losses of $197 million.

The China-based firm wrote a message to British lender Euler on Twitter saying: "Hi @eulerfinance: you may want to take a look".

PeckShield said the flurry of transactions by hackers seem to have exploited a flaw in Euler's system.

Euler said it was "aware" and "currently working with security professionals and law enforcement."

"We will release further information as soon as we have it," the lender said on Twitter.

The hack on Euler is the most substantial this year, according to crypto critic Molly White, who chronicles hacks and scams on her blog Web3 is Going Just Great.

White ranked the incident at number eight on the all-time list of biggest thefts -- though it is dwarfed by the crypto sector's biggest scams, some of which have run into billions of dollars.

The industry was flying high early last year, with the market in cryptocurrencies and digital tokens apparently worth hundreds of millions of dollars.

Crypto companies were taking out TV adverts, sponsoring sports teams and touting their technology as world-changing as they sought new investors among the general public.

But the sector has been shredded by a severe economic downturn, rampant criminality, crackdowns from regulators and the collapse of high-profile companies.

Agence France-Presse

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

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-

Vax appeal: Dating apps help UK vaccine drive

LONDON - Popular dating apps on Monday launched a campaign encouraging British users to post "I got my shot" on their profiles as the UK rollout reaches young adults.

In partnership with the government, apps including Tinder, Bumble and Hinge are offering special stickers, badges and bonuses for users who say they have had the coronavirus jab, the Department of Health said.

This comes as the UK rollout this week reaches the under-30s, as Health Secretary Matt Hancock confirmed Sunday.

Vaccines minister Nadhim Zahawi said he was "thrilled that we are partnering up with dating apps to boost vaccine uptake across the country".

The United States launched a similar initiative in May, linking up with apps including Tinder, OKCupid and Plenty of Fish.

In the UK, dating app users can show their support for vaccination on their profiles in return for complimentary credits or give in-app bonuses to others who say they are vaccinated.

Users of Plenty of Fish can post a badge saying "I got my shot" while OkCupid users can add a badge saying: "I'm vaccinated."

The apps are also advertising the British government's "Every vaccination gives us hope" campaign.

The Department of Health even suggested that users could boost their romantic chances by telling potential dates they are vaccinated.

It cited a YouGov poll in May that found 28 percent of adults would not date someone who was unvaccinated and 31 percent would prefer not to.

Despite turning to dating sites for help, the UK government has not formally given the green light to casual dating during the pandemic. 

The advice for England is that people can choose not to socially distance while meeting friends and family but should be "cautious". 

So far, the UK has given more than 27 million people both vaccine doses and more than 40 million have received a single dose.

Those under 40 are being offered an alternative to the Oxford-AstraZeneca vaccine due to a slightly higher risk of blood clots.

Agence France-Presse

Meghan gives birth to baby girl called Lilibet Diana

LONDON  - Meghan, Britain's Duchess of Sussex has given birth to her second child, a baby girl, who she and husband Prince Harry have named after Queen Elizabeth and his late mother Princess Diana.

Lilibet 'Lili' Diana Mountbatten-Windsor was born on Friday at the Santa Barbara Cottage Hospital in California, with Harry in attendance.

"On June 4th, we were blessed with the arrival of our daughter, Lili. She is more than we could have ever imagined, and we remain grateful for the love and prayers we’ve felt from across the globe," Harry and Meghan said in a statement.

"Thank you for your continued kindness and support during this very special time for our family."

Their press secretary said both mother and baby were doing well and were back at home.

Their first child, Archie, was born in 2019. 

(Reporting by Michael Holden and Andy Bruce; Editing by Alexander Smith and Raissa Kasolowsky)

-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-

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-

English survey finds high antibody levels from Pfizer vaccine rollout

LONDON - People in England who have received 2 doses of Pfizer's COVID-19 vaccine are generating strong antibody responses as the shot is rolled out, researchers said Thursday, adding that confidence in vaccines was high.

An Imperial College London survey showed 87.9 percent of people over the age of 80 tested positive for antibodies after 2 doses of the Pfizer-BioNTech vaccine, rising to 95.5 percent for those under the age of 60 and 100 percent in those aged under 30.

"Although there is some fall-off in positivity with age, at all ages, we get that very good response to 2 doses of the vaccine," Paul Elliott, Chair in Epidemiology and Public Health Medicine, Imperial College London, told reporters.

Antibody levels are only one part of the immunity picture, with vaccines also shown to generate strong T-cell protection.

Nearly 95 percent of under-30s tested positive for antibodies 21 days after 1 dose, but this fell in older groups.

The research found 34.7 percent of those 80 years or older generated antibody responses from 1 dose of the Pfizer vaccine, but Britain's Joint Committee on Vaccination and Immunization (JCVI) has previously found high protection from the Pfizer vaccine after 1 dose, even when antibody levels are lower.

Britain has extended the gap between doses to 12 weeks, even though Pfizer has cautioned it only has data for clinical efficacy with a 3-week gap between shots.

Over 154,000 participants took part in Imperial's home surveillance study for COVID-19 antibodies, which monitors antibody levels from natural infection as well as among the vaccinated, between Jan. 26 and Feb. 8.

The survey also looked at confidence in vaccines, and showed it was high, with 92 percent having accepted or were planning to accept a vaccine offer, though confidence was lower among Black people, dropping to 72.5 percent.

-reuters-

UK retailers report biggest annual price falls since May

LONDON - British retailers reported the biggest annual fall in prices since May this month, adding to signs of pressure on the sector since non-essential stores had to close to the public from Jan. 5 as part of renewed COVID lockdown measures.

The British Retail Consortium, a trade body, said on Wednesday that its members saw average prices fall by 2.2 percent in January compared with a year earlier, the largest such fall since the depths of Britain’s first lockdown in May.

Food prices rose by 0.2 percent, the smallest increase since January 2017, and non-food prices dropped by 3.6 percent.

“Post-Christmas sales and the national lockdown drove non-food prices down – especially for clothing and DIY goods,” BRC chief executive Helen Dickinson said.

Britain’s official measure of consumer price inflation, which covers a wider range of goods and services, showed annual prices rises of 0.6 percent in December.

Dickinson said that as well as facing softer consumer demand, retailers were under pressure from higher costs which they may prove unable to absorb.

“Brexit-related red tape, rising global shipping costs and food commodity prices, as well as the weight of forced closures and restrictions for many retail businesses, means that pricing pressures are stacking up,” she said.

New lockdown measures to combat a surge in COVID-19 cases and deaths have added to a normal post-Christmas belt-tightening by British consumers.

Experimental data last week from the Office for National Statistics, which is not seasonally adjusted, showed a 35 percent fall in consumer spending in early January, and on Tuesday the Confederation of British Industry reported its weakest retail number since May.

-reuters-

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-

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

Bank of England sees less severe UK downturn

LONDON - Britain's economic downturn fuelled by the coronavirus pandemic will be less severe than thought -- but the nation's surge in unemployment will delay any recovery, according to a forecast by the Bank of England.

The pound rallied on the update, which included news that the BoE held its main interest rate at a record-low 0.1 percent.

The BoE added that its cash stimulus programme used to prop up the economy before and during the coronavirus pandemic would remain at £745 billion ($967 billion, 813 billion euros).

The amount includes £300 billion added to its so-called quantitative easing programme since March when COVID-19 prompted a UK lockdown.

The economy was now expected to contract by 9.5 percent this year, the BoE said, altering its prior guidance of a 14-percent contraction.

"Nonetheless, the recovery in demand takes time as health concerns drag on activity," the BoE said in minutes of its latest regular meeting that took place Tuesday.

"GDP is not projected to exceed its level in 2019 Q4 until the end of 2021, in part reflecting persistently weaker supply capacity," it added.

The BoE estimated that UK gross domestic product would rebound in 2021 by nine percent, but down on an earlier forecast for output growth of 15 percent.

- Negative rates -

The Bank added that it "does not intend to tighten monetary policy until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the (bank's) two percent inflation target sustainably".

BoE governor Andrew Bailey told a virtual press conference that negative interest rates were in the bank's "toolbox", but said there were no immediate plans to use the controversial measure.

"The Bank thoroughly bashed the idea of negative interest rates, at least in the next six months or so," noted Ruth Gregory, senior UK economist at Capital Economics research group. 

"It suggested that while negative rates can work in some circumstances, it would be 'less effective as a tool to stimulate the economy' at this time when banks are worried about future loan losses."

- 'Unemployment at 7.5%' -

The BoE on Thursday also forecast that Britain's unemployment rate would shoot higher to around 7.5 percent by the end of the year.

"Employment appears to have fallen since the COVID-19 outbreak, although this has been very significantly mitigated by the extensive take-up of support from temporary government schemes," the minutes said. 

"Surveys indicate that many workers have already returned to work from furlough, but considerable uncertainty remains about the prospects for employment after those support schemes unwind."

UK companies -- from major retailers to airlines -- are axing thousands of jobs despite government efforts to safeguard employment during the pandemic.

The state has been paying up to 80 percent of wages for almost ten million workers under its furlough scheme, which finance minister Rishi Sunak plans to end in October.

Replacing the scheme is a stimulus package worth £30 billion, including bonuses for companies retaining furloughed staff and offering apprenticeships, amid fears of mass youth unemployment resulting from the virus fallout.

Britain's official unemployment rate stands at 3.9 percent, while annual inflation is at 0.6 percent.

Other recent official data showed Britain's economy tanked in the first quarter by 2.2 percent -- the biggest quarterly contraction for more than 40 years. 

Economists expect there to have been a far sharper slump in the second quarter, or three months to June, placing Britain in a technical recession. 

Confirmation is due Wednesday when the first official estimate on second-quarter output is published.

Agence France-Presse

UK signs up for Sanofi-GSK coronavirus vaccine

PARIS - Pharma giants Sanofi and GSK have agreed to supply Britain with up to 60 million doses of a potential COVID-19 vaccine, the firms announced Wednesday.

The agreement covers a vaccine candidate developed by France's Sanofi in partnership with the UK's GSK and is subject to a "final contract".

Amid a global race to find a vaccine to halt the pandemic, Sanofi announced "ongoing discussions with the European Commission, with France and Italy on the negotiation team, and other governments to ensure global access to a novel coronavirus vaccine."

Both companies voiced in a statement their commitment "to making their COVID-19 vaccine candidate affordable and available globally."

The vaccine candidate "has the potential to play a significant role in overcoming the COVID-19 pandemic, both in the UK and around the world," said GSK Vaccines President Roger Connor.

Sanofi predicted regulatory approval for the vaccine "could be achieved by the first half of 2021."

UK Business Secretary Alok Sharma, quoted in the statement, hailed the progress but noted "the fact remains that there are no guarantees."

“In the meantime, it is important that we secure early access to a diverse range of promising vaccine candidates, like GSK and Sanofi, to increase our chances of finding one that works so we can protect the public and save lives."

Britain has already secured access to 90 million doses of potential coronavirus vaccines in deals with biotech firms BioNTech, Pfizer and Valneva.

The deals involve 30 million doses of a vaccine being developed by US pharma giant Pfizer and Germany's BioNTech, and 60 million doses of another created by France's Valneva.

The government in London has also said it would purchase 100 million doses of a vaccine currently being trialed by Oxford University in partnership with AstraZeneca.

Britain has been one of the worst affected countries in the world since the outbreak began, with more than 45,750 deaths.

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-

UK newspaper publisher to cut 550 jobs on virus fallout

LONDON, United Kingdom -- Reach, publisher of UK newspapers Daily Mirror and Daily Express, plans to axe about 550 jobs as the coronavirus forces readers online and slashes advertising revenues, it said Tuesday.

"Structural change in the media sector has accelerated during the pandemic and this has resulted in increased adoption of our digital products," Reach chief executive Jim Mullen said in a statement.

"However, due to reduced advertising demand, we have not seen commensurate increases in digital revenue."

Reach said the company plans a reduction in headcount of about 550 staff, or 12 percent of its workforce -- as it looks to make annual cost savings of £35 million ($43 million).

The company, which owns also a number of UK regional newspapers, said the restructuring would cost the group £20 million.

"Editorial will move to a more centralised structure bringing together national and regional teams across print and digital to significantly increase efficiency and remove duplication while maintaining the strong editorial identity of our news brands," Reach said. 

The company will also have "fewer locations and a simpler management structure", the statement said.

Reach added that its revenue slumped 27.5 percent in the second quarter, "impacted by reductions in circulation and advertising".

Agence France-Presse