The joy of the chance to reconnect tomorrow over a Thanksgiving meal is tempered by concerns about U.S. inflation and a revival in Covid-19 infections across the states.
President Joe Biden announced the largest release of stored oil in an effort to drive down petrol prices and eliminate a crude market boom that, according to his administration, poses a threat to the global economic recovery.
The president’s attempt to lower oil prices, which has doubled in the past year, may have shot back. Brent, the international crude benchmark, closed 3.3 percent higher at $ 82.31 a barrel yesterday.
The oil expansion also appears to be in direct opposition to Biden’s talks on reduce carbon emissions. However, the president had to be seen to do something, as the increase in cost of living for Americans will be evident tomorrow at family gatherings.
Increases in the key components of the Thanksgiving turkey meal have made the price of food for friends and family significantly higher this year than it was in the pre-pandemic 2019, according to an FT analysis.
Another sign of the impact of US inflation was yesterday’s announcement by Dollar boom, the discount store chain known for its “Everything’s $ 1” slogan, that it will raise prices for most goods to $ 1.25.
It’s not just the cost of living that is proving difficult to tame in the US. Health officials have warned that a fifth wave of Covid infections could overwhelm hospitals in the worst-affected states.
Cases have increased, even in states with high vaccination rates, such as Vermont and Maine. “We are preparing for the absolute worst,” said Andrew Jameson, a physician for infectious diseases at Mercy Health Saint Mary’s Hospital in Michigan, a state where daily Covid-19 case numbers have nearly doubled since early November, said.
For the latest news updates, visit our live blog
Must know: the economy
Olaf Schulz will be Germany’s next chancellor after his Social Democratic party entered into a coalition agreement with the Greens and Liberals to govern Europe’s largest economy.
One of his government’s top priorities will be to tackle a sharp increase in Covid cases that threaten to overwhelm Germany’s healthcare system. Authorities reported 66,884 new coronavirus infections in the past 24 hours – a record.
Latest for UK / Europe
The EU has Italy warned to curb the growth of government spending and pursue a “prudent” fiscal policy next year as the European Commission flags budgetary risks in high-debt economies, whose spending increased during the pandemic.
Brussels has also softened its defense of Covid vaccine patents for companies developing the jabs, and suggested that poorer countries be allowed to manufacture the vaccines. Trade Commissioner Valdis Dombrovskis, who opposed a plan to reduce IP protection, now said he could support limited exemptions.
Daily Covid 19 cases per 100,000 citizens in the UK are now behind more than 10 European countries, including Belgium and Greece, while the UK’s daily rate of Covid-related deaths per 100,000 is 40 per cent below the EU average, according to ‘ a FT analysis of official data.
The Turkish lira has suffered a historic retreat yesterday after President Recep Tayyip Erdogan praised a recent rate cut and declared his country waging a “war of economic independence”.
The currency pulled together somewhat today when the Crown Prince of Abu Dhabi visited Ankara for the first time in almost a decade and markets were supported by the prospect of Emirati investment.
But analysts warned of increased dollarization, hyperinflation and the rising cost of debt as a result of the actions of Erdogan, who has fired three central bank executives since mid-2019 and is a lifelong opponent of high interest rates.
Must know: business
Lidl is to create 4,000 jobs in Britain and add 100 stores over the next four years to expand the reach of its low-cost brick-and-mortar business model, which was tested by a surge in online shopping during the pandemic.
Pascal Soriot, CEO of AstraZeneca, fight came out for his company’s Covid vaccine by linking the widespread use of the prick in the UK to the country’s relatively low hospitalization rate compared to its European neighbors.
The World of Work
Call it French Exception, but France has managed to avoid the labor exodus seen in recent months in the US and UK. Instead, France posted its highest employment figures ever, according to the latest article in the FT series on how the pandemic has reformed employment practices. Find out why French workers do not join the “Big Quit”.
Covid cases and vaccinations
Total global cases: 258.2m
Get the latest global picture with us vaccine tracker
And finally …
The eighties slogan jumper is back, but with more wholesome messages than the originals. If you are considering one as an alternative Christmas sweater or perhaps as a gift for a loved one, review Nicholas Foulkes of Weekend FT the best of this genre of knitting.
Thank you so much for reading The Road to Recovery. We’ll really enjoy sharing this newsletter with friends and colleagues who may find it valuable, so please forward it. And if it’s sent to you, you’re very welcome to sign up and enjoy it – and access to all the FT – for free for 30 days. Please sign up here.
Please also share your feedback with us email@example.com. Thank you