America to seek $3.055trn in fresh debt
The US Treasury Department said it would borrow $2.999trn in the second quarter to fund America’s covid-19 recovery programmes. Washington will borrow an additional $677bn in the third quarter. Last year the US borrowed $1.28trn; the previous annual record was $1.8trn, raised in 2009. Total US government debt is currently around $25trn. Sources: BBC, CNBC, Marketwatch, NPR and Reuters.
Apple borrows at low rates
The technology giant Apple raised $8.5bn by selling four sets of bonds, with some coupons ranging between 0.75% and 1.125%, its lowest rates since 2013. The company said the funds would go to share repurchases and repay existing debt. Sources: Apple Insider, Marketwatch, Reuters and Seeking Alpha.
EU and world leaders raise billions for coronavirus programmes
40 countries and donors pledged €7.4bn for covid-19 vaccine development, treatment research and test production. The European Commission pledged €1bn, the Bill & Melinda Gates Foundation pledged $100m and the pop star Madonna pledged €1m to the EU-led initiative. Luxembourg pledged €5.45m. The US did not participate. Sources: AFP, BBC, CNN, Deutsche Welle and The Guardian.
France refuses Amazon application for crisis aid
The French government rejected Amazon’s request for partial unemployment funds for 10,000 workers at its six warehouses in France, which remain shuttered over a virus-related safety dispute. Sources: AFP, France 24, Reuters and Seeking Alpha.
Amazon VP quits over “firing whistleblowers”
Tim Bray, a senior engineer at Amazon, resigned in protest of the firings of US warehouse workers who criticised labour and safety practices. Amazon declined to comment. Sources: Associated Press, CNBC, CNN, Financial Times and Vice.
Neumann accuses Softbank of “abusing its power”
Adam Neumann, the co-founder of the office sharing outfit Wework, who was ousted as CEO last year, filed suit against Softbank, its largest investor, over Softbank’s refusal to buy a further $3bn in Wework shares. Softbank called the case “meritless”. Sources: Bloomberg, Financial Times, Reuters and Techcrunch.
EU OKs Air France-KLM rescue
The European Commission approved the €7bn bailout of Air France-KLM by the French and Dutch governments. As part of the package, Air France will have to cut domestic flights in a bid to improve its environmental performance. Sources: BBC, Bloomberg, Politico and the Telegraph.
A quarter of British jobs supported by state
Nearly 1 in 4 (23%) of UK workers have been furloughed under the country’s covid-19 economic support scheme. So far, companies have claimed £8bn from the British government to cover wages. Sources: The Guardian, Reuters, Sky News and Yahoo Finance UK.
Transatlantic trade talks begin
London and Washington start negotiations over a prospective UK-US free trade deal later today. Sources: BBC, CityAM, Financial Times and The Guardian.
Global fair rescheduled
The World Expo in Dubai has officially been postponed by a year. It had originally been set to open on 20 October 2020, but now will start on 1 October 2021 and run to 31 March 2022. Sources: AFP, Associated Press and Reuters.
Agenda
Tuesday 5 May, 4pm-5:15pm: European Investment Bank’s “What is available for social entrepreneurs?” webinar. Tuesday 5 May, 8:05pm-9:30pm: Ara City Radio’s online pub quiz. Wednesday 6 May, 9am-10am: Eurocontrol hosts a webinar on piloting drones. Wednesday 6 May, 7pm-9pm: Virtual edition of British Ladies Club’s monthly cocktail. Thursday 7 May, 2pm-3pm: British Chamber of Commerce webinar on covid-19 tax measures. Thursday 7 May-Sunday 10 May: Luxembourg Street Photography Online Festival. Tuesday 12 May, 10:45am-12:15pm: Paperjam Club’s “Beyond project management” online workshop. Tuesday 12 May, 2pm-3:30pm: Paperjam Club’s “Covid-19: A renaissance of value investing” online workshop.
Lucky numbers
A man in the US state of Colorado won two separate $1m lottery prizes on the same day. Sources: Associated Press, CNN and the Daily Mail.
Today’s breakfast briefing was written by Aaron Grunwald