Boots to cut 4,000 jobs as John Lewis to shut eight stores, putting 1,300 jobs at risk - as it happened

Graeme Wearden

from on 2020-07-09 17:46 (#55H4C)

Grim day in UK retail as Boots announces plans to cut 4,000 jobs and John Lewis Partnership shuts eight stores

6.45pm BST

A late newsflash: Ireland's finance minister Paschal Donohoe, has been elected as president of the eurogroup -- the gathering of eurozone finance chiefs.

He's just beaten Spain's Nadia Calvino to take on the role [Luxembourg finance minister Pierre Gramegna dropped out after earlier voting today].

I am deeply honored to be elected as the new President of the #Eurogroup. I look forward to working with all of my Eurogroup colleagues in the years ahead to ensure a fair and inclusive recovery for all as we meet the challenges ahead with determination pic.twitter.com/9k8EQfWSJa

I congratulate Paschal #Donohoe to his election as #Eurogroup chairman. Eurozone finance ministers have made a wise choice in electing a candidate who is skilled at finding and delivering compromises in challenging times. 1/3

BREAKING: Ireland's Paschal Donohoe is the new president of the Eurogroup, beating Spain's Nadia Calvino in a second round vote

No female president for the Eurogroup after all. https://t.co/rjS0ZISQ3A

6.09pm BST

And finally, here's our latest news story on today's job losses:

Boots and John Lewis have announced plans to cut 5,300 jobs and close stores on another bleak day for the UK high street.

Boots is cutting 4,000 jobs - or 7% of its workforce - by closing 48 opticians outlets and reducing staff at its head office in Nottingham as well as some management and customer service roles in stores.

6.00pm BST

Today's flurry of job cuts came as Britain's leading tax and spending thinktank has criticised the flagship policies in Rishi Sunak's 30bn summer statement.

The Institute for Fiscal Studies said the key measures were badly timed, poorly targeted and likely to do little to stop unemployment from rising.

The IFS said most of the 9.4bn allocated for the government's 1,000 job retention bonus scheme - to incentivise employers to take back furloughed staff - would be spent on jobs that were already safe.

It also said tax increases would be required from 2022 onwards to pay for the government's Covid-19 response, while warning that the government's budget deficit - the gap between state expenditure and tax revenue - would reach 350bn this year, the highest level in peacetime for 300 years.

5.38pm BST

The UK government took another step towards reopening the economy this afternoon, announcing plans for beauty salons, spas, gyms, pools and leisure centres to restart.

However, there will be restriction on how these places operate, including reduced class sizes and booking systems.

4.50pm BST

Time for a recap:

Thousands more jobs are being lost across the UK as businesses reel from the impact of Covid-19, prompting criticism that the government isn't doing enough to support the economy.

Walgreens swings to a loss in its fiscal third quarter because of the pandemic. It will cut more than 4,000 jobs in the United Kingdom after foot traffic to its Boots stores ground nearly to a halt. $WBA https://t.co/ckb4xcYB8l

We recognise that today's proposals will be very difficult for the remarkable people who make up the heart of our business, and we will do everything in our power to provide the fullest support during this time."

The Chancellor's statement was a missed opportunity to protect jobs with properly targeted support for the businesses and people that need it.

Ministers must acknowledge that different parts of our economy face very different challenges in the months ahead and come forward with a real plan to protect jobs in sectors fully closed or only partially reopened, and develop an urgent programme to boost retailers and save our high streets from becoming ghost towns."

4.34pm BST

As if Covid-19 wasn't trouble enough, British companies have been warned to expect new barriers selling their products in the European Union.

UK nationals will also face thorough checks" when travelling to the continent even if there is a Brexit trade deal, the European commission has said.

This week's discussions confirm that significant divergences remain between & . We will continue working with patience, respect & determination.

Regardless of the outcome, there will be inevitable changes on 1/1/21. Read more here https://t.co/CzbGX7VGQY

The choices made by the United Kingdom's government on the future relationship and on not extending the transition period mean that these inevitable disruptions will occur as of 1 January 2021 and risk compounding the pressure that businesses are already under due to the COVID-19 outbreak.

4.12pm BST

Anxiety over the economic pain of the Covid-19 pandemic is also hitting global stock markets.

A burst of selling on Wall Street has triggered losses in Europe, with the FTSE 100 down 98 points or 1.6% in late trading.

Risk sentiment deteriorated quickly over the last hour following the Trump tax return headlines + the daily Florida COVID update (record day of new deaths and hospitalizations, daily positivity rate jumps to 18.4%).

WTI getting hammered -3%. S&P -1%. $USD now broadly higher.

Shares of companies that would benefit from the economy reopening struggled. United Airlines, Delta and American all fell more than 4%. Carnival Corp dropped 3.7% and Royal Caribbean slid 5.3%. Kohl's declined by 5.8%.

4.07pm BST

Even Harley-Davidson can't escape the shadow of job cuts.

The motorcycle maker has just announced plans to cut 700 positions worldwide, as part of an overhaul to create a leaner, more nimble organization". That's about 14% of its workforce, Marketwatch estimates.

3.51pm BST

Company share prices have a nasty habit of rising when job cuts are announced - but not today.

Walgreens shares have tumbled almost 9% in New York, after it announced it was cutting 4,000 UK staff after suffering a slump in sales.

Although the layoffs make up 7% of its Boots workforce, it's a tiny fraction of the 440,000 Walgreens employees worldwide. Still, it's a sign of the financial challenges Walgreens faces during the Covid-19 pandemic.Walgreens announced the layoffs Thursday alongside downbeat quarterly results.

Adjusted earnings fell more than 43% -- worse than analysts expected -- and the company posted an operating loss of $1.6 billion.

3.17pm BST

In another blow, hundreds of jobs are being cut at Wales's Celtic Manor.

It is clear the Covid-19 crisis will continue to have a catastrophic effect on the global economy, our nation and the travel, tourism and events industries for many months to come, and the Celtic Collection must reshape and resize its business to ensure that it is fit for the future.

With drastically reduced occupancies and revenues, its current financial model is not sustainable.

This is shocking news & cannot be allowed to happen. Celtic Manor owner, Sir Terry Matthews, is a billionaire. He should use his own money to sustain his hard working & loyal workforce until the crisis is over. It wouldn't make a dent to his fortune.https://t.co/gTRyERmpEE

On a day with many job cuts announced, more bad news for workers at the Celtic Manor hotel in South Wales.
The hotel, which hosted the Ryder Cup in 2010, is making 450 workers, almost half its permanent staff, redundant. It opened a new convention centre, ICC Wales, last autumn https://t.co/ziqkEMr5tD

2.50pm BST

Lucy Powell MP, Labour's Shadow Minister for Business and Consumers, says retailers such as John Lewis and Boots need more targeted support from the government:

This is deeply worrying news for staff at John Lewis and Boots and the travel hubs and town centres these stores are in. These announcements underline the dangers facing our high street, as many businesses struggle to survive through the Covid-19 crisis and the necessary public health measures which limit capacity and demand.

The Chancellor's statement was a missed opportunity to protect jobs with properly targeted support for the businesses and people that need it.

2.42pm BST

West Midlands mayor Andy Street, the former managing director of John Lewis, says the company is wrong to shut the Birmingham department store (which he opened five years ago).

Street says John Lewis's failure to make a success of the store is extremely disappointing".

At this stage the closure is only a proposal, and one I believe risks being a terrible mistake. Therefore I will be making the case for why the company should not give up this tremendous opportunity in Birmingham.

The proposed closure of Birmingham's John Lewis store risks being a dreadful mistake. My reaction to this morning's deeply disappointing news: pic.twitter.com/JWLhPHBafw

2.33pm BST

Boris Johnson's spokesman has told journalists in Westminster that the government will help John Lewis and Boots workers in any way we can".

On job losses; PM's spokesman said announcements today will be worrying" for individuals. Adds the government stands ready to support "in any way we can"

2.15pm BST

Labour MP Bill Esterson points out that manufacturing is also struggling.

As covered earlier, 2,000 Rolls-Royce staff are expected to take voluntary redundancy or early retirement by August, following the slump in air travel.

Job losses at @RollsRoyce @jlandpartners @BootsUK suggest the chancellor's announcements have not worked. He needs to come up with support for manufacturing, retail and millions of @ExcludedUK people. Otherwise the recovery will not happen.

2.02pm BST

The scale of the job cuts being imposed at Boots and John Lewis shows that Covid-19 is still battering the UK high street, says the FT's John Eley:

John Lewis's decision to shut two full-size department stores in large centres - the Intu complex in Watford and the Grand Central development above Birmingham's New Street station - is likely to send shockwaves through the retail industry.

The 136,000 square foot Birmingham store opened in 2015 as part of an ambitious redevelopment of the city centre.

1.55pm BST

Boot's jobs cuts are likely to hit its Support Office in Nottingham, which covers some 279 acres and dates back to 1929.

Deputy and assistant managers, and beauty and customer advisers in stores are also at risk, according to the Evening Standard. Plus, of course, the staff who work at the 48 Boots Opticians outlets which will close.

The proposals announced today are decisive actions to accelerate our transformation plan, allow Boots to continue its vital role as part of the UK health system, and ensure profitable long-term growth. In doing this, we are building a stronger and more modern Boots for our customers, patients and colleagues.

1.40pm BST

Over in the US, jobs are still being lost at a scary rate too.

The latest initial claims' report, just released, shows that 1,314,000 Americans filed new claims for unemployment support last week.

US Initial Jobless Claims Weekly Report - DOLhttps://t.co/tRHpu7676z pic.twitter.com/mwk5V6Nqg8

One of the best timely indicators we have on the US economy is out. Initial jobless claims (Jul 4) are at 1375K (below consensus) and continuing claims (Jun 27) are at 18750K (below consensus as well). 16th straight week in which initial claims are above 1 million. pic.twitter.com/NZmfm7JB7y

1.20pm BST

Barely 24 hours ago, Boris Johnson declared that his government wants jobs, jobs, jobs", before his chancellor outlined a 30bn package to support employment.

Well, so far today it's got cuts, cuts, cuts".

Today, just 24 hours after the "the jobs, jobs, jobs" mini budget, we've had a miserable tide of threatened redundancies.
* 1,300 John Lewis
* 1,600 Burger King
* 4,000 Boots@RishiSunak splashed the cash to get us to here but his honeymoon has come to a screeching end.

1.10pm BST

As major employers, John Lewis and Boots will get the headlines today. But there are many more companies in distress, and likely to cut jobs.

So warns Julie Palmer, partner and restructuring expert at Begbies Traynor:

Even after yesterday's government announcement there will be a significant amount of job losses on the high street. Many of the biggest companies have been fighting against the tide of destruction before this crisis, and there is a huge dam of distressed businesses building and waiting to break.

Investment will be poured into parts of the business that are strengthening and pulled from areas that unsuitable for these modern ways of trading. The likes of John Lewis and Boots will exist in the future, but they cannot maintain their empires under their current structure.

12.54pm BST

You can read the details of the Boots job cuts here: Walgreens Boots Alliance Reports Fiscal 2020 Third Quarter Results

John Lewis's announcement is here: EIGHT JOHN LEWIS SHOPS NOT TO REOPEN AS THE PARTNERSHIP PROGRESSES WITH MAJOR BUSINESS STRATEGY REVIEW

12.54pm BST

TUC policy adviser Alex Collinson says today's jobs cuts show that Rishi Sunak's 1,000 bonus for taking back furloughed workers is insufficient:

Boots, John Lewis, Rolls Royce and Burger King have all announced thousands of redundancies today.

The job retention bonus announced yesterday is insufficient. We need proper investment in a green economy, and a decent social safety net for those who do lose their job.

Boots and John Lewis announcing thousands of job losses today. Places like London are deserted - shops, offices, stations etc empty. Public are scared and public transport dysfunctional. Govt must stop Project Fear or our cities will suffer permanent damage.

12.39pm BST

Here's Reuters' take:

British health and beauty retailer Boots plans to cut 4,000 jobs and close 48 optician stores, in the latest major blow to the country's retail sector from the COVID-19 crisis.

British brands including John Lewis and Harrods have announced thousands of job cuts in the last two weeks after the pandemic forced customers to shop online and many remained reluctant to return to the high street even as restrictions eased.

12.38pm BST

This has turning into a grim day for UK retail - with John Lewis and Boots both axing jobs, and Burger King suggesting it could close stores in future too.

It suggests that Rishi Sunak's summer statement yesterday is not going to prevent unemployment rising in the coming months, and will fuel concerns that the package isn't big enough.

Another shocking day for retail job losses... 1,300 staff in consultation as @jlandpartners closes eight stores and a whopping 4,000 jobs to go at @BootsUK and 48 stores closing.

Tough morning for Chancellor. A day after Rishi Sunak launched his jobs retention bonus scheme, Boots to cut 4000 jobs and John Lewis 1300. Meanwhile UK's top tax official says he doesn't believe the job retention bonus scheme is good value for money.

Boots to cut 4,000 jobs. 7% of its workforce.

Huge retail job losses a day after the Chancellor sets out Govt support to protect jobs.

Is he right though to focus on high street hospitality services rather than retail, which is moving online anyway?

12.33pm BST

Walgreens Boots Alliance CEO Stefano Pessina says the pandemic drove the company into the red in the last quarter, mainly due to the slump in UK sales:

Prior to the pandemic our financial performance for fiscal 2020 was on track with our expectations. However, this unprecedented global crisis led to a loss in the quarter as stay-at-home orders affected all of our markets.

Shopping patterns are evolving more rapidly than ever as consumers further embrace digital options, spurring us to accelerate our ongoing investments in digital transformation and neighborhood health destinations

12.27pm BST

Boots also warns that retail conditions are expected to remain very depressed" in the UK, despite the gradual easing of lockdown restrictions.

12.19pm BST

NEWSFLASH: UK retailer Boots is cutting 4,000 jobs, after being badly hit by the coronavirus pandemic.

In a fresh blow to Britain's labour market, its parent company Walgreens Boots Alliance says it will cut around 7% of its UK workforce.

The adverse impact of COVID-19 on sales in the quarter was approximately $700 million to $750 million, with the majority of the impact related to the Retail Pharmacy International division. This reflected a dramatic reduction in footfall in Boots UK stores - down 85 percent in April - as consumers were advised to leave home only for food and medicine.

Key elements of the proposed plan include a reorganization of the Boots store employee structure, the closure of 48 Boots Opticians stores and an additional 20 percent headcount reduction in the UK support office.

Subject to labor consultation, these reorganization actions will impact more than 4,000 positions (7 percent of the workforce).

More grim high street news: Boots cutting 4,000 jobs across head office, stores and opticians teams. Closing 48 Boots Opticians.

12.05pm BST

Andy Street, the major of the West Midlands, may be particularly upset that Birmingham's John Lewis is closing.... as he opened it less than five years ago when he ran the retailer!

Back in 2015 Street, then the managing director of John Lewis, was gushing about Birmingham's prospects. He reckoned the city was enjoying an economic revival, after being neglected too long by politicians who focused on London or the North.

Let's be clear, manufacturing is a success story here now. Jaguar Land Rover is an incredible success story. We could have been like Detroit - the fact is this is nothing like Detroit, this is an economic revival.

There will be a Harvard business case about the revival and the change in the economy here."

John Lewis to close in Birmingham. Bit awkward for West Midlands mayor and former John Lewis MD, Andy Street.

Yes! Absolutely. And on a symbolic/political level, John Lewis leaving Birmingham is quite a painful sign of the way things are going. Andy Street will go into the election as the John Lewis exec who couldn't keep John Lewis in Birmingham. It's just not a great look.

11.49am BST

A spokesperson for Birmingham's Bullring & Grand Central has said they are disappointed" that the flagship John Lewis store won't reopen.

They say, via the Birmingham Mail:

They opened the store in 2015 as part of Grand Central's 750m regeneration project and this September would have been their fifth year of trading.

The Bullring Estate is a leading retail and leisure destination with shoppers and brands including Selfridges, which has been a draw for Birmingham for the past 17 years.

11.44am BST

Liam Byrne, Labour MP for Birmingham Hodge Hill, tweets:

Awful news for the staff and Birmingham economy. This will leave a huge hole in Birmingham city centre.

This shows why we need a proper track and trace system in place to give people the confidence to go back to the shops.https://t.co/RcrlQIuXyl

11.31am BST

Labour MP Shabana Mahmood who represents Birmingham, Ladywood, says the closure of the Bullring store at New Street is terrible news':

Terrible news that @jlandpartners is closing their Birmingham store.

They have made clear to me today that a package of support is in place for employees and the wider community. If you are a constituent and need advice or support, please get in touch.https://t.co/Ft2vd7Qz2Q

Devastating news that John Lewis plan to close their Croydon store - huge blow at such a difficult time for the local economy, I'm arranging an urgent conversation with managers to discuss the situation https://t.co/CavzzOt7M1

11.21am BST

Many other retailers are also laying off thousands of workers, due to the slump in high street trade since Covid-19 struck.

My colleague Sarah Butler explains:

The job losses come after the announcement of nearly 9,000 high street job cuts last week, after a swathe of redundancies at retailers ranging from Harrods to Topshop owner Arcadia group and SSP, the company behind hundreds of railway and airport eateries.

A further 2,000 are at risk at Poundstretcher which has warned it could close half its estate if landlords do not agree to rent cuts.

11.17am BST

More than 20 John Lewis stores have reopened from the lockdown, with another 21 due to open later this month.

Here's the details:

11.05am BST

Here are the details of the eight John Lewis stores which are to permanently close:

10.56am BST

John Lewis's decision to shut eight stores highlights the wider crisis in UK retail, says James Child of Estate's Gazette.

John Lewis often earmarked as the bellwether for UK retail performance. Department store woes have not been uncommon in recent years; high rents, reduced footfall & USP erosion contributing to shift from expensive anchor stores. Closures indicate the economic effects of Covid-19

Sad news for those losing roles at John Lewis - but overdue. Waitrose have closed a number of stores for similar reasons and it's vital that the chain is as lean as possible.

Plus vanity projects like Heathrow and St Pancras aren't needed.

John Lewis closing in Watford, following on from the closure of the flagship new Debenhams. Grim news.

V bad news for Birmingham. John Lewis is the heart of the relatively new New Street shopping destination. https://t.co/usHKlCC4wW

10.40am BST

Sharon White, Chairman of the John Lewis Partnership, says the decision to shut eight stores is sad, but also necessary.

Closing a shop is always incredibly difficult and today's announcement will come as very sad news to customers and Partners. However, we believe closures are necessary to help us secure the sustainability of the Partnership - and continue to meet the needs of our customers however and wherever they want to shop.

Redundancies are always an absolute last resort and we will do everything we can to keep as many Partners as possible within our business.

Waitrose and John Lewis are two of the UK's most loved and trusted brands and we have adapted to the challenges of the pandemic by responding to the new needs of customers. We will soon announce the output of our strategic review which will ensure our brands stay relevant for future generations of customers."

10.25am BST

Newsflash: John Lewis has announced that eight of its stores in the UK are to permanently close, putting 1,300 jobs at risk.

If redundancies are confirmed, every effort would be made to find new roles where possible for Partners who wish to remain within the Partnership. Opportunities could include transferring to local Waitrose shops or working for johnlewis.com and waitrose.com as they continue to grow.

The Partnership has also made a commitment to provide support through a unique Retraining Fund, which will contribute up to 3,000 towards a recognised qualification or course for up to two years for any Partner with two years' service or more.

Prior to the pandemic, the eight shops identified were already financially challenged and the pandemic has accelerated the switch from shopping in-store to online. Before the virus struck, 40 percent of John Lewis sales were online. This could now be closer to 60 to 70 percent of total sales this year and next.

A further nine shops in Aberdeen, Ashford, Brent Cross, Chichester, Oxford, Peterborough, Reading, Sheffield and White City Westfield will reopen on 30 July.

Leicester will also reopen when the local lockdown for the city is lifted, taking the total number of reopened John Lewis shops to 42. The Swindon outlet will also reopen on 30 July.

John Lewis shops in Aberdeen, Ashford, Brent Cross, Chichester, Oxford, Peterborough, Reading, Sheffield and White City Westfield will be reopening. Leicester will reopen when lockdown lifts as well as Swindon outlet.
As a result John Lewis will shrink to 42 stores from 50

10.04am BST

German manufacturing firms are largely optimistic that they'll return to growth next year, a new survey shows.

Industry body VDMA has reported that a majority of engineering firms are optimistic of achieving nominal sales in 2021.

GERMANY'S VDMA SAYS MORE THAN HALF OF ENGINEERING FIRMS EXPECT REVENUES TO DECLINE BY 10-30% IN 2020

9.45am BST

Shares in UK housebuilders are rallying this morning, on signs that the sector may be recovering from the pandemic.

Our build programmes had returned to normal levels by period end [30 June], and we have seen encouraging sales levels throughout the period, in particular, over the last six weeks when net reservations have been c. 30% ahead year on year.

We enter the second half in a strong position, with work in progress well advanced, forward sales c. 15% ahead year on year, and cash holdings of c. 830m.

9.10am BST

Back in the UK, jet engine maker Rolls-Royce has lifted the lid on the cost of the Covid-19 crisis, and warned that a full recovery could take several years.

Due to the deterioration in the medium-term outlook caused by COVID-19, absent mitigating actions, we forecast a shortfall of US$ denominated cash receipts over the next seven years compared to our hedged position

Just seen on the FT that Rolls Royce expects significantly lower income for 7 years - yes that's 7 - from its wide-body engine business. Also owing currency hedges will result in cash costs of about 1.45bn over the same time frame. Shares really don't look pretty!

8.59am BST

The latest inflation figures from China also suggest the world economy is in recovery mode.

Chinese producer prices (what stuff costs at the factory gate) jumped by 0.4% in June, reversing a 0.4% decline in May. That implies that higher demand allowed manufacturers were lift prices a little.

China's factory deflation eased back in June as the economic recovery continued https://t.co/unXXdXkWb0 pic.twitter.com/25nXZRrMGV

8.43am BST

Germany's main stock index has jumped 1% at the start of trading, as investors welcome the pick-up in exports.

European stock markets are off to a decent start on Thursday, following a couple of days of declines as indices continue to linger close to recent highs.

There's no doubt that the bounceback has stalled but, encouragingly, we're not yet in reverse despite the growing concerns about Covid second waves. Naturally, the sheer amount of monetary and fiscal stimulus and the promise of more if needed, is giving investors reason to stay strong, despite the economic outlook being far from as promising as what the markets would suggest.

8.35am BST

German software maker SAP has also reported a pick-up in demand.

Software licenses revenue, while still below normal levels, recovered more than expected.

The outlook continues to be based on the assumption of a gradually improving demand environment in the third and fourth quarter as economies reopen further and population lockdowns ease.

8.27am BST

German exports have staged a first comeback" by jumping 9% in May, says Carsten Brzeski of ING, but there's plenty more room for improvement.

Looking ahead, while April was the worst month ever in terms of most economic data releases, the month of May has been one of the best months ever.

However, it will need a couple of these best month evers' to bring the economy back to its pre-crisis level. Particularily the divergence between domestic and external demand is remarkable.

The different degrees of lockdowns across eurozone countries are also reflected in German export data, with exports to France, Italy and Spain dropping more significantly in April than to most other trade partners. Interestingly, the share of exports to China increased to the highest level ever.

German exports staged a comeback but still have a long way to go before returning to pre-crisis levels, says @carstenbrzeski https://t.co/TlohuGGh9R

German trade data showed exports and imports growing. Services have been hit more than manufacturing by the virus, so trade should outperform the economy for now.

German exports rose 9% m/m in May, in line with manuf. orders & output, but the level remains well below that of imports in a sign of a (relative) resilience in domestic demand, lingering supply-chain disruptions & weak global demand. Overnight stays were still down ~75% in May pic.twitter.com/otfM9LX4LE

8.18am BST

Today's trade figures also show that German companies only sold half as much to British counterparts as usual in May, compared with a year earlier.

Destatis explains:

The degree to which year-on-year exports were affected depended on the trading partner. Exports to the People's Republic of China decreased rather moderately by 12.3% to 7.2bn euros in May 2020 compared with May 2019.

Exports to the United States, which have been hit particularly hard by the coronavirus pandemic, dropped by 36.5% to 6.5bn. Compared with the same month last year, exports to the United Kingdom showed a particularly strong decrease, by 46.9% to 3.5bn.

In May 2020, most imports came to Germany from the People's Republic of China. Goods to the value of 10.7bn were imported from there, which was 23.4% more than in May 2019. Imports from the United States fell by 26.9% to 4.4bn in May 2020. German imports from the United Kingdom were down by 20.3% to 2.2b euros.

8.00am BST

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

As Europe's powerhouse economy, Germany will play a huge role in leading the region out of its coronavirus slump. And today we can see that exports have picked up sharply as the lockdown eased - although there's still a long way still to go.

German trade balance (May): 7.6 billion vs 5.2 billion expected, prior 3.2 billion

Exports (May): 9% vs 13.8% expected, prior -24%

Imports (May): 3.5% vs 12% expected, prior -16.5%

Compared with April 2020, exports were up 9.0% and imports 3.5% after calendar and seasonal adjustment. Compared with February 2020 - the month before the corona lockdown, exports decreased by a calendar and seasonally adjusted 26.8%, and imports by 18.2%.

#Exports in May 2020:+9.0% seasonally adjusted on April 2020. However, exports are still by 26.8% below the pre-crisis level of February 2020. https://t.co/jo0V5AAGyz #foreigntrade pic.twitter.com/USoZV7x9nG

Looking ahead, a rather quiet calendar awaits, the highlight being the weekly US initial & continuing jobless claims reports

Other than that, focus remains on the latest coronavirus headlines, and today's eurogroup meeting

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