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More than 1m people have been locked out of the UK government’s support schemes, according to a Treasury select committee report published on Monday.

The committee’s chair called for urgent action “to help those who have fallen through the cracks” if the government is to fulfil its promise of “doing whatever it takes” to protect people and businesses from the impact of the pandemic.

The economic challenge was laid bare by April’s 20.4 per cent drop in output, fuelling calls for more rapid loosening as non-essential retailers reopen from Monday. But Boris Johnson said that 2-metre social distancing rules will persist until next month.

Infection rates are still falling across Britain with early moves to loosen lockdown measures having little impact. Of all of the UK’s mis-steps in tackling coronavirus, the epidemic in care homes is the worst, Sebastian Payne writes. (FT)

Coronavirus digest

  • Larry Kudlow, White House economic adviser, opposed extending $600 weekly jobless payments beyond July, arguing the measure was a “disincentive” to work. Some 21m people remain unemployed in the US.

  • Beijing is bracing for a second wave of coronavirus, locking down residential compounds and closing a large market in response to new infections.

  • Emmanuel Macron has lifted most of France’s remaining restrictions, with schools to reopen from June 22. Read more about Europe reopening below.

  • Emerging economies have raised more than $83bn through bond markets since April despite a G20 debt relief offer. Indonesia’s finance minister told the FT that unprecedented quantitative easing is on the table for as long as it takes.

  • Russian authorities have filed dozens of cases under a fake news law passed last year for “knowingly spreading false information” about the pandemic. (FT)

Get the latest with our coronavirus tracker and our live coverage.

In the news

Exclusive: SoftBank’s circular financing The Japanese group has quietly poured more than $500m into Credit Suisse investment funds that in turn made big bets on the debt of struggling start-ups backed by SoftBank’s Vision Fund. At the centre of the funding flow is Greensill Capital, a Vision Fund-backed company that employs David Cameron and selects all of the assets that go into the Credit Suisse funds. (FT)

Clashes in London Boris Johnson outlined a commission into racial inequality after a weekend of the worst disorder in the UK since Black Lives Matters protests were sparked last month, with police fighting running battles with rightwing protesters in central London. Elsewhere:

  • Atlanta’s police chief resigned after a white officer fatally shot a black man on Friday. The deaths of two men in California have fuelled calls for investigations.

  • Generation Z have become leaders of the protest movement. Voting and political groups are tracking protesters’ phone data to target messaging.

  • A Hong Kong riot police officer was reprimanded after chanting “Black lives matter” and “I can’t breathe”. (FT, NPR, WSJ, SCMP)

Exclusive: ByteDance’s banking bid ByteDance has joined forces with Singapore’s Lee family, one of the founders of OCBC Bank, south-east Asia’s second-biggest lender by assets, to bid for a digital bank license. As the economy reels, Big Tech companies are placing bets on growth. (FT, NYT) 

Back to the office Asset managers are taking tentative steps to reopen workplaces in London and across Europe almost three months after shutting in response to coronavirus. But regular office life remains a way off, Andrew Hill warns: “worker’s block” looms. (FT)

L’Oréal’s digital future Lockdowns have sparked broad changes to how women shop for beauty products by pushing activity online, especially among older customers. “In ecommerce, we achieved in eight weeks what it would have otherwise taken us three years,” L’Oréal’s chief digital officer said. (FT)

Column chart of As a % of total showing L'Oreal rising ecommerce sales

Battle to head WTO The race for the next WTO director-general is shaping up over candidates’ political legitimacy as much as their personal competence. Meanwhile, Pedro Sánchez, Spain’s prime minister, backed Nadia Calviño, his country’s economy minister, to head the eurogroup, setting up another top job contest. (FT)

Juiced returns Calpers is moving deeper into private equity and private debt, seeking an ambitious 7 per cent return rate for the $395bn public sector pension fund, the largest in the US. Private equity barons have cashed in despite their funds performing no better than basic trackers. (FT)

Financial course demand rises Business schools are reporting an increase in applications for specialist finance masters programmes because of the qualification’s value and the current economic turmoil. Read the FT’s annual ranking and more about how they were compiled. (FT)

Is business school good value for money? Join Andrew Jack and Jonathan Moules for a live Q&A at 12pm UK time on Monday June 15.

The days ahead

Brexit talks Boris Johnson will push for rapid progress on a call with EU chiefs on Monday, the PM’s first since the UK left in January. But Brussels has warned it will not sacrifice its economic interests for a deal, and Britain formally rejected extending the post-Brexit transition period on Friday. (FT)

Europe reopens The biggest milestone yet on Europe’s road to recovery comes on Monday and Tuesday, when nine countries reopen borders to other EU nations. But will visitors return? Five FT correspondents report. (FT)

BoJ meets No big change in policy direction is expected when the Bank of Japan meets on Monday and Tuesday. Japan has already unveiled its largest supplementary budget and pledged to buy unlimited government bonds. (FT)

Earnings diary American Express, Goldman Sachs and Morgan Stanley begin quarterly earnings reports for US financial services this week, as the banks’ employees prepare to return to offices. Ecommerce group eBay also reports after embarking on one of the pandemic’s biggest sale processes. (Reuters, FT)

What else we’re reading

America’s unsettled Asian allies Since Donald Trump’s election, Washington’s Asian allies have worried that his transactional foreign policy could see their interests sidelined — and that the regional hegemon is less committed to and capable of protecting them, as China wields its increasing economic and military clout. (FT)

The president’s dispute with South Korea reflects widening cracks in the US-built security order in the region © FT montage

Is Covid-19 dragging women back to the 1950s? Decades of advances are under threat as research already shows women are disproportionately hurt by the pandemic’s economic fallout. Pilita Clark asks how the selfie generation will cope with a new Depression: today’s workers aren’t all better off. (FT)

Colonists crumble Across Britain, hundreds of statues commemorating pioneers of slavery and imperialism have been targeted with a vigour that has startled minority rights campaigners and authorities alike. Simon Schama writes that statues are not history, but rather, its opposite: history is argument; statues brook none. (FT)

For all its pretensions to perpetuity, statuary is vulnerable to unpredictable shifts in public opinion © Ingram Pinn

K-pop stardom in service? Fans of Korean band BTS are nicknamed the “Army”. But mandatory service in South Korea’s actual military could bring the music to a halt just as a planned flotation is expected to value the agency that manages them at $4.3bn. (FT)

What is and isn’t working in the virus fight Latin America, home to just 8 per cent of the global population, is suffering half of coronavirus deaths, stoking fears of another lost decade and a new debt crisis. New Orleans’ switch from drive-through testing to mobile walk-in clinics helped flatten the city’s curve. In Camden, long-term sellers are facing tough choices. (FT)

Cemetery workers carry a coffin at the municipal cemetery Recanto da Paz, in Breves, Brazil © Tarso Sarraf/AFP/Getty

Black Lives Matter is about race and class Protests over racial justice also have the potential to seed a new labour movement in the US, writes Rana Foroohar. The UK can no longer close its eyes to racial inequality, former minister Sam Gyimah writes. (FT)

Lunch with the FT: Fiona Hill The former White House Russia expert became a global talking point after her explosive impeachment testimony. Six months on, over a virtual lunch with Demetri Sevastopulo, she weighs in on studying Putin and the turmoil of Trump’s White House. (FT)

‘I knew more about what was going on in the Kremlin than what was going on in the White House.’ © James Ferguson

Video of the day

Road to Brexit: lockdown edition Robert Shrimsley and Miranda Green are back, looking at whether rage against ‘the blob’ is a vote winner and Keir Starmer’s progress against Boris Johnson. (FT)



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