Coronavirus latest: UK records lowest excess deaths since late March

California, Arizona, Florida and southern states see rise in new cases
Peter Wells in New York
New coronavirus cases continue to hover at elevated levels in Arizona, California and Florida and a number of other cases across the south, which were among the first in the US to begin reopening their economies.
There were a further 16,240 new cases of coronavirus in the US over the past 24 hours, according to data compiled on Monday by the Covid Tracking Project, out of 379,625 new tests.
The number of new cases was down from 19,932 on Sunday and at the lowest level in a week that was likely helped by the absence of new data from Texas. But a handful of states across the south of the country saw one-day increases exceeding 500, fuelling concerns about a second wave of Covid-19 in those regions that reopened too quickly.
California reported the highest number of new cases over the past day, with 2,507, down about 300 from Sunday’s level but about 600 below Saturday’s level, which was a record for the state. Illinois was next, with 1,382 new cases and also remains the US state with the fourth-highest number of overall deaths.
Arizona and New York — with 789 and 702 new cases, respectively — had the fifth- and sixth-highest one-day increases in new cases. In the case of Arizona, the state on Friday had its highest one-day increase in new cases, of 1,579. By contrast, New York, the main hotspot for the virus in the US, continues to show progress bringing it under control.
Of the 10 US states with the most number of new cases, the remaining six were in the south. Florida and North Carolina had 966 and 938, respectively, while Georgia, Virginia, Tennessee and South Carolina each had between 500 and 600 new cases.
A further 640 people in the US died from coronavirus over the past 24 hours, according to Covid Tracking Project, led by a one-day increase of 198 for Illinois. Since the pandemic began, 105,040 across the country have died from the disease.

France unveils €15bn aid package for aerospace industry

France has unveiled a €15bn support plan for the aerospace industry, warning that 100,000 jobs were on the line after Covid-19 saw borders close and travel curtailed as governments sought to stem the spread of the virus.
The plan, which includes support already announced by the state, “is commensurate with the violence represented by the crisis at the start of the year and its lasting impact on air traffic”, Bruno Le Maire, French finance minister, said at a press conference on Tuesday morning. 
“If the state doesn’t intervene straight away then one-third of the jobs in the sector could disappear,” he added.

The aerospace sector employs 300,000 people in France either directly or indirectly and brings in €58bn in revenues every year. 
The French economy has been hit hard by the pandemic. On Tuesday, the French central bank predicted that the economy was set to contract by more than 10 per cent this year even though it would start to recover in the second half.
Unemployment was expected to rise from 8.4 per cent last year to a four-year high of 10.1 per cent this year and then to hit 11.7 per cent next year, the bank said. By contrast the German economy was expected to shrink by about 6 per cent.
Bruno Le Maire: ‘If the state doesn’t intervene straight away then one-third of the jobs in the sector could disappear’ © Eric Piermont/AFP/Getty
Companies across the aerospace sector and throughout the supply chain are struggling as orders have been cancelled and cash flow has dried up. Airbus, which is based in Toulouse in the south of France, has already slashed production by a third and industry leaders are warning that low levels of demand could last for years.
France’s plan includes a €7bn loan package already announced for airline Air France-KLM, €300m to modernise the supply chain and an investment fund starting at €500m, which aims to climb to €1bn, designed to help the development of small and medium-sized industries. 
The fund will start with €200m from the state, €200m from companies such as Airbus, Thales and Safran, and another €100m from the fund manager.

The government is putting €1.5bn on the table over three years for research into greener aircraft, while strengthening existing schemes for the sector such as unemployment support and export credit guarantees. It is also accelerating planned military orders that were to take place in the coming years.

Mr Le Maire said the country “must save our aeronautical industry and avoid any loss of position relative to the US’s Boeing and China’s Comac.
The already announced a €7bn loan package for Air France-KLM, the Franco-Dutch airline, is made up of a €3bn direct loan from the state and €4bn provided by commercial banks but guaranteed by the government.
This is the third sector-specific support plan after an €18bn package for tourism and €8bn in support for the auto industry and comes ahead of the government’s third budget update on Wednesday, which will take account of crisis spending due to the impact of the pandemic.

Stocks sink after gloomy economic reports dull glow from US rally

European stocks slid and Wall Street futures pulled back as a rally that wiped out this year’s losses for the main US benchmark ran out of fuel.
The continent-wide Europe Stoxx 600 dropped 1.2 per cent in mid-morning trade, with markets in London, Frankfurt and Paris off by an even greater margin. Germany’s Dax index fell 1.9 per cent. US S&P 500 futures slipped almost 1 per cent.
US Treasury bonds rallied, suggesting a rising demand for perceived safety assets. The yield on the 10-year note fell 0.06 percentage points to 0.83 per cent.

Reports released on Tuesday highlighted that, even while markets have recovered, particularly in the US, signs of acute strain in the global economy have persisted. France’s central bank forecast that output this year will contract 10 per cent, adding to gloomy forecasts from other big regional economies.
Exports from Germany, Europe’s biggest economy, plunged the most on records dating back 70 years in April, figures revealed. Data from Japan, meanwhile, showed orders for machinery last month fell the most in more than a decade.
Tai Hui, chief Asia market strategist at JPMorgan Asset Management, said global economic activity was “far from where we were before the pandemic”. There were many threats to the recovery, he said, such as a second wave of coronavirus infections, US-China trade tensions and the ripple effects of rising unemployment and corporate bankruptcies.
Global equities have recovered from the lows they struck in March as stimulus measures from governments and central banks have helped to bolster investor confidence. The slow easing of lockdown measures in many countries, with no major second wave of Covid-19 infection reported so far, has also bolstered sentiment, analysts have said.
Overnight, Wall Street’s S&P 500 closed up 1.2 per cent, bringing its gains over the past month to 10.3 per cent. The index is now flat for 2020, after the darkest days in March had pushed it down a third for the year.

Mr Hui said that the rally in US stocks was “good news” in that it “shows central banks’ effort to stabilise the market have worked”.

“Equities at these levels are supported by reopening economies and continued monetary and fiscal stimulus. But the move does increase the importance of selectivity — looking for the stocks and sectors that still have room for growth,” added Mark Haefele, chief investment officer at UBS Wealth Management.
In Europe, the travel and leisure index fell 2 per cent, squeezed particularly by airline groups IAG and easyJet, which have been under persistent pressure amid a plunge in global travel.
Oil prices rose following a sell-off on Monday that was prompted by Saudi Arabia’s admission that the extension of Opec+ production cuts until the end of July would not include voluntary curbs by a trio of Gulf producers.
Brent crude, the international benchmark, fell 1.9 per cent to $40.04 a barrel while West Texas Intermediate, the US marker, dropped 2.4 per cent to $37.25.