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Ikea scraps famed catalogue after 70 years

Dec 07,2020 - Last updated at Dec 07,2020

STOCKHOLM — Swedish furniture giant Ikea said on Monday it would stop printing its famed annual catalogue, ending a seven-decade tradition as customers moved to digital alternatives.

The catalogues offered a snapshot on contemporary living that made them intensely popular, with circulation reaching a peak in 2016, when 200 million copies in 32 different languages were distributed worldwide.

But with fewer people reading the printed catalogue as online shopping soared, the retailer said it had taken the "decision to respectfully end the successful career of the Ikea Catalogue”.

"After a 70-year-legacy, we have taken the decision to turn the page and say: No, we won't be printing the catalogue any more going forward, nor do a digital version," said Konrad Gruss, Managing Director at Inter Ikea Systems.

Gruss called it "an emotional but also very rational decision", as he noted a "big change in customer behaviour", with customers now also choosing to "interact on the web, in apps and social media".

In 2000, a digital version of the catalogue was launched, but this would also not be renewed.

According to Ikea, the very first catalogue was put together by the Ikea founder Ingvar Kamprad himself in 1951, and it was printed in 285,000 copies, which were distributed around the southern part of Sweden where the company was also started.

While talks about the future of the catalogue had been ongoing for the last four years, Gruss said the final decision was taken in the last few months as discussions on a 2022 edition were underway. 

He added that if not now the decision would probably have been taken in 2022 or 2023, and even if it was not due to the COVID-19 pandemic, the arrival of the virus "has maybe been speeding up the decision."

Even though the catalogue would not have a digital replacement, Gruss stressed that dropping it was "not a cost saving exercise."

"The money that we're not using for production [of the catalogue] we will reinvest into other media," Gruss said, while declining to say how much the catalogue cost.

"What we can say is that the catalogue has traditionally been a large share of our marketing spending," Gruss said.

 With large numbers of copies printed over the past years, Gruss said he was unsure whether the catalogue ever claimed the top spot.

"I can't say that with proof but I can say that we have been at least among the biggest ones over a long period of time," Gruss said.

The last printed catalogue was the 2021 version that shipped this summer.

Forty million copies were made.

Pound weighed down by Brexit fears, equities mostly drop

By - Dec 07,2020 - Last updated at Dec 07,2020

British one pound sterling coins and one Euro coins are arranged in front of the European Union flag in a photograph in London, on December 14, 2017 (AFP file photo)

LONDON — The pound slumped around 1 per cent against the dollar and euro on Monday as post-Brexit trade talks between Britain and the European Union hung in the balance.

Major stock markets dropped except for London, as the sliding pound helped boost share prices of multinationals trading on the benchmark FTSE 100 index.

Around 14:30 GMT, the pound was down by 0.8 per cent against the dollar, while the euro jumped by 1 per cent versus the British currency.

The FTSE held steady, while oil prices retreated by about 0.8 per cent.

Down by around half-a-per cent, sterling's losses widened sharply after Britain's Sun newspaper said Prime Minister Boris Johnson was willing to abandon post-Brexit trade talks with the European Union.

Johnson is set to have a phone call with EU Chief Ursula von der Leyen at 16:00 GMT, an EU spokesman said, with time running out to strike a deal before Britain leaves the EU single market on December 31.

"Sterling is in the firing line because of the nerves surrounding the stand-off, and that is the reason why the FTSE 100 is outperforming against its eurozone counterparts," said David Madden, analyst at CMC Markets UK. 

"International stocks like British American Tobacco, AstraZeneca, Unilever, Diageo and Imperial Brands are all helping the index.

"Those companies benefit from the slide in sterling as they earn a large portion of their revenue overseas," Madden added.

The threat of a wrenching "no-deal" comes after Brussels' Chief Negotiator Michel Barnier briefed ambassadors from EU member states at a pre-dawn crisis meeting, warning that divisions were still stark after talks with his UK counterpart David Frost broke up overnight.

 

Vaccine stimulus 

 

Market focus was also firmly on COVID-19 vaccine developments as the new trading week got underway.

Traders are keeping tabs on the deployment of vaccines around the world, with Britain in line to start giving jabs this week.

US approval of its first drug could come as soon as Friday. Belgium, France and Spain have said jabs will begin in January for the most vulnerable.

There is optimism also that US lawmakers will finally agree on a long-awaited stimulus package.

Senators and their teams worked all weekend on a detailed bill, which "will probably come out early this week", Republican Senator Bill Cassidy told "Fox News Sunday".

Wall Street opened mixed with the Dow slipping by 0.3 per cent however, after the three major indices all posted record highs on Friday.

Argentina team to meet IMF in Washington in 'coming days'

By - Dec 06,2020 - Last updated at Dec 06,2020

WASHINGTON — Officials from Argentina will meet with International Monetary Fund (IMF) staff soon to continue talks on a new aid programme, a fund spokesman said on Thursday.

An IMF team opened talks with Buenos Aires last month, and officials made "good progress in defining the initial elements" of a loan programme, IMF spokesman Gerry Rice told reporters. 

Discussions are "very fluid and constructive", and a team from the Economy Ministry "is indeed coming to Washington... for meetings in the coming days," Rice said, but there is no timeline for a final agreement.

Even prior to the COVID-19 pandemic, the South American country was facing a severe economic crisis despite massive aid in recent years from the Washington-based crisis lender.

The coronavirus crisis exacerbated already high unemployment and poverty rates, and the government of President Alberto Fernandez is aiming to renegotiate repayments on a $44 billion loan received from the IMF in 2018. 

The south American country has been in recession since that year, and the IMF projects gross domestic product will contract nearly 12 per cent in 2020 while poverty has already soared to over 40 per cent.

Last-ditch effort to save Brexit trade talks from failure

By - Dec 06,2020 - Last updated at Dec 06,2020

An aerial view shows lines of new Honda cars parked up at the Royal Portbury Dock in Avonmouth, near Bristol in south-west England, on Friday (AFP photo)

BRUSSELS — British and EU negotiators embarked on probably their final two-day scramble to secure a post-Brexit trade deal on Sunday, after failing for eight months to reach agreement. 

David Frost and Michel Barnier took up from where they left off in EU headquarters in Brussels, ending a two-day pause after a fruitless week of late-night wrangling in London.

"We're working very hard to try to get a deal. We'll see what happens in the negotiations today," Frost told reporters as he arrived at the city's Gare de Midi train station.

Talks were expected to go late on Sunday and into Monday, as a small team of the most senior negotiators haggled over the last remaining, but most contentious issues.

Meanwhile, UK Prime Minister Boris Johnson will reportedly lobby European leaders, after a call with EU chief Ursula von der Leyen on Saturday ended with the sides still wide apart.

The pair's next call will be on Monday evening and then the 27 EU leaders will gather in Brussels on Thursday for a two-day summit planned to tackle their own budget dispute, but which will now once again be clouded by Brexit worries.

Johnson and von der Leyen issued a downbeat joint statement after their call, with divisions still wide over fishing rights, fair trade rules and an enforcement mechanism to govern any deal.

"Whilst recognising the seriousness of these differences, we agreed that a further effort should be undertaken... to assess whether they can be resolved," they said.

 

'No sense' 

 

Ireland would be the EU member worst hit by a failure to strike a deal and Foreign Minister Simon Coveney insisted agreement was crucial to avoid more damage to an economy already reeling from the COVID-19 pandemic.

Failure "doesn't make any political sense and it certainly doesn't make any economic or social sense either", he told RTE news.

"And for all those reasons, I think that the negotiating teams and senior politicians will find a way of getting a deal here, but at the moment we're in a difficult place as we try to close it out," he said.

Britain formally left the EU in January, nearly four years after a referendum on membership that split the nation down the middle and two months after Johnson won an election touting what he claimed was an "oven ready" Brexit deal.

The UK is bound to the EU's tariff-free single market until a post-Brexit transition period expires at the end of the year — an immovable deadline by which time the two sides must try to agree on new terms for their future relationship.

"It's in a very difficult position, there's no point denying that," British Environment Minister George Eustice told Sky News.

"We're going continue to work on these negotiations until there's no point in doing so any further."

Without a deal, the bulk of cross-Channel trade will revert to World Trade Organisation terms, a return to tariffs and quotas after almost five decades of close economic and political integration.

Johnson has insisted Britain will "prosper mightily" whatever the outcome of the talks, but he will face severe political and economic fallout if he cannot seal a deal.

"If there is no deal now, I see huge international implications... because we would be in an economic war with Europe that would cost us very dearly," former Labour prime minister Gordon Brown told Sky News.

European capitals have remained remarkably united behind Barnier through the fraught Brexit process, but some internal fractures have now begun to surface.

On Friday, France threatened to veto any deal that falls short of their demands on ensuring fair trade and access to UK fishing waters, where they have demanded a durable agreement, whereas Britain wants frequent renegotiations.

"We know that 100-per cent access to fishing waters in the UK maritime zone is finished," European Affairs Minister Clement Beaune told French weekly le Journal du Dimanche.

"But we need lasting access. The British can't have total access to our EU single market and exclude fish."

Barnier was to brief envoys from the bloc member states early on Monday with several countries sharing Paris's concerns that the EU side could give too much ground, especially on fair trade rules.

Malaysian goldsmiths mould a profit out of pandemic

By - Dec 05,2020 - Last updated at Dec 05,2020

Kota Bharu, Malaysia — In a backroom workshop in Malaysia, goldsmiths with blowtorches and chisels sit at wooden desks as they melt and mould the precious metal into glittery jewellery.

Demand for the safe-haven commodity has soared during the coronavirus pandemic and it is not only professional investors who are cashing in, but small businesses too.

The Makmur Gold company, which is based in northern Kelantan state and mainly makes jewellery, has enjoyed brisk business this year even as the Southeast Asian nation's economy fell into recession.

"We've seen good developments — during COVID, our sales were much better," said company Director Muhammad Nur Hisyam Che Mahmood.

Gold surged this year as the pandemic accelerated and stock markets tumbled, hitting a record above $2,000 an ounce in August, although it has since slipped back to about $1,800.

Makmur Gold recorded strong sales of about 80 million ringgit ($19.5 million) over the past eight months as buyers sought to park their cash somewhere safe.

The business sells goods directly to customers from its four outlets as well as online, offering items ranging from bracelets and rings to small gold bars. Most of its gold is sourced in the form of jewellery from a small number of suppliers in the country or bought second-hand from customers, before being melted down and fashioned into new products.

 

Gold rush 

 

In addition to regular customers, the business has agents who sell on its behalf and then keep a share of the profits.

One such agent is Tuan Zubaidah Tuan Abdul Rahman, who made half-a-million ringgit ($120,000) in sales during three months of buying and reselling gold jewellery part-time.

"People are seeing that rather than hold on to their money in the bank, it is better for them to buy gold," said the woman, who is also a teacher.

"People can wear it, and it can be a valuable asset."

Nurse Nor Fazilah Jamaludin said she sold gold jewellery during the pandemic to increase her income.

"Women will buy these for beauty, but the benefit of buying gold is more towards our investment for the future," she said.

Malaysians began rushing to buy gold in May as authorities allowed businesses to reopen after a six-week virus lockdown, said Steven Siow, president of the Federation of Goldsmiths and Jewellers Associations of Malaysia.

People had extra cash after not spending much for a while and due to a six-month government moratorium on repaying loans aimed at boosting the economy, and gold shops doubled or even tripled their sales, he said.

The gold price has slipped as hopes rise that vaccines will be rolled out soon, but experts believe the world economy faces a bumpy recovery and the precious metal will remain a safe bet for some time.

"Gold, in any crisis, would be the key asset to look out for," said Yeah Kim Leng, economics professor at Sunway University Business School.

TikTok keeps ticking in US as deadline for asset sale passes

By - Dec 05,2020 - Last updated at Dec 05,2020

A general view of the TikTok building, in Culver City, California (AFP file photo)

SAN FRANCISCO — TikTok continued serving up short videos in the US despite missing a Trump administration deadline to come up with an acceptable deal to put its American assets into US hands.

Talks between TikTok parent ByteDance and government negotiators were continuing despite the missed deadline set by the Committee on Foreign Investment to carry out an executive order by President Donald Trump, according to a source familiar with the matter.

"The committee is engaging with ByteDance to complete the divestment and other steps necessary to resolve the national security risks arising from the transaction, consistent with the president's August 14 order," said a spokesperson for the Treasury, which oversees the committee.

TikTok declined to comment.

ByteDance, based in China, had been given until midnight Eastern time on Friday to come up with a plan to sell its US operations to American buyers.

But after the deadline passed, users could still tap into the smartphone app for a seemingly endless stream of video snippets, an AFP visit to the platform showed.

The White House claims TikTok is a national security risk because of potential links to the Chinese government through ByteDance.

TikTok has repeatedly defended itself against allegations of data transfers to the Chinese government, saying it stores user information on servers in the United States and Singapore.

 

Ban stalled 

 

The US had already backed off enforcing a ban on TikTok, in compliance with a court order in favour of the social media sensation.

A US federal judge in late October issued an injunction temporarily blocking an executive order by Trump aimed at banning TikTok.

The judge's ruling put the brakes on a Trump threat to knock TikTok offline by cutting it off from US businesses providing website hosting, data storage and other fundamentals needed to operate.

But TikTok influencers suing the president over the ban convinced US District Judge Wendy Beetlestone to issue the injunction against it.

It was the second restraint issued in favour of TikTok by US judges against a set of executive orders issued by Trump which sought to ban new downloads of the app beginning in September, and ban it outright by mid-November.

A temporary injunction issued in September in a separate suit filed by TikTok itself prevented the government from removing it from mobile application download platforms.

Judges in both cases said in rulings that the chances of proving in court that Trump overstepped his authority were good.

They also equated TikTok to films, photographs, and news wires with legal protections.

 

Washington versus Beijing 

The Friday deadline was for ByteDance to come up with a deal to sell TikTok operations in the US.

A tentative deal has been unveiled that would make Silicon Valley giant Oracle the technology partner for TikTok and a stakeholder in a new entity to be known as TikTok Global.

Oracle would manage data security through its cloud servers, while TikTok would retain control of its algorithms and technology, according to details of the proposed deal shared earlier this year.

However, Trump has said he would not approve a deal with any Chinese ownership or control.

China, meanwhile, has tightened control of technology exports in a move that promised to complicate any deal for TikTok to sell US assets.

World food prices jump to six-year high — UN

By - Dec 04,2020 - Last updated at Dec 04,2020

ROME — Global food commodity prices rose sharply in November to their highest level in nearly six years, the UN food agency said on Thursday, due in part to adverse weather conditions.

The Food and Agriculture Organisation (FAO) said prices of the most globally traded foodstuffs were up across the board, putting extra pressure in particular on 45 countries that need outside help feeding their populations.

The FAO Food Price Index averaged 105 points during the month, up 3.9 per cent from October and 6.5 per cent from a year earlier.

"The monthly increase was the sharpest since July 2012, putting the index at its highest level since December 2014," the Rome-based agency said.

The biggest rise was in the vegetable oil price index, which jumped 14.5 per cent because of low palm oil stocks.

The cereal price index rose 2.5 per cent from October — making it nearly 20 per cent higher than a year ago.

Wheat export prices were also up, because of reduced harvest prospects in Argentina, as were maize prices, with lower output expectations in the US and Ukraine and large purchases by China, the FAO said.

The sugar price index was up 3.3 per cent month-on-month amid "growing expectations of a global production shortfall" as bad weather sparked weaker crop prospects in the EU, Russia and Thailand.

Dairy prices also rose 0.9 per cent to near an 18-month high, in part because of a boom in sales in Europe. Meat prices were up 0.9 per cent from October, but significantly down on a year ago, the report said.

The increase in prices is an extra burden for those who saw their income fall as a result of the coronavirus pandemic, which the FAO said is proving to be "an important driver of the levels of global food insecurity".

"The pandemic is exacerbating and intensifying already fragile conditions caused by conflicts, pests and weather shocks, including recent hurricanes in central America and floods in Africa," it said.

"Forty-five countries, 34 of them in Africa, continue to be in need of external assistance for food," it said.

What is more, it noted a risk of above-average rainfall in southern Africa and east Asia, while parts of near east Asia and east Africa were expecting reduced rains, "conditions that may result in adverse production shocks".

Brazilian economy rebounds 7.7 per cent in third quarter

By - Dec 04,2020 - Last updated at Dec 04,2020

RIO DE JANEIRO — Brazil's economy rebounded by 7.7 per cent in the third quarter, surging out of recession as it tries to shrug off the effects of the coronavirus pandemic, according to figures released on Thursday by the national statistics institute.

The recovery is significant but remains below the average 8.8 per cent growth predicted by analysts surveyed by Brazil's largest financial newspaper, Valor.

"To say that a 7.7 per cent increase is disappointing shows just how exceptional a period we are living in for economic activity," said Andre Perfeito of Brazil's Necton consultants. "The fact is we were expecting a bigger increase."

Overall, gross domestic product (GDP) has fallen 5 per cent over the same period in 2019.

The government of far-right leader Jair Bolsonaro forecasts an overall decline of 4.5 per cent for Latin America's biggest economy in 2020.

The International Monetary Fund is less optimistic, however. On Wednesday it predicted a 5.8 per cent drop in Brazil's GDP in 2020 and a 2.8 per cent rebound next year.

The Q3 recovery "is a bit weaker than had been expected, but the data still confirm that the economy has fared better than other major Latin American countries so far during this crisis”, said William Jackson, chief emerging markets economist at Capital Economics, in a note.

 

Overall decline 

 

Brazil, with 212 million people, entered a recession after two consecutive quarters of contraction in 2020 — 2.5 per cent in the first quarter and 9.7 per cent in the second.

The country has been hit hard by the pandemic, which has killed more than 174,000 people, the second-highest death toll worldwide after the United States.

The third-quarter rebound is driven by government aid to businesses and the 60 million or so poorest Brazilians, but at the price of an increasingly high public deficit and debt.

"It looks like activity held up well going into Q4 and the latest vaccine developments are clearly good news," said Jackson, though he warned that fiscal austerity "remains a headwind to the outlook in 2021".

The aid, initially amounting to the equivalent of around $115, was reduced by half in September and is set to be eliminated at the end of this month.

The government has been providing almost a third of the population with the emergency aid since April 3, which has been credited with preventing greater economic devastation from the pandemic.

It has already cost the government more than $115 billion, or 8.6 per cent of GDP.

Public debt already represented 90.7 per cent of GDP in October, as against 75.8 per cent in December 2019.

These are worrying figures for Economy Minister Paulo Guedes, an ultra liberal who promised a major austerity drive and reforms to clean up public finances when he took office two years ago.

"We are living in a moment of uncertainty, with more questions than answers," said Jason Vieira, a consultant at Infinity Asset Management.

He said Brazil badly needs reforms to compensate for the fast-approaching end of emergency aid that has reinvigorated the economy.

But many uncertainties remain about the government's ability to implement unpopular reforms, with Bolsonaro seeking reelection and often at loggerheads with Congress.

OPEC and allies seek to thrash out cuts deal

By - Dec 04,2020 - Last updated at Dec 04,2020

Saudi Minister of Energy Prince Abdulaziz Bin Salman Al Saud arrives for the 177th Organisation of the Petroleum Exporting Countries meeting in Vienna, Austria, on December 5, 2019 (AFP file photo)

LONDON — The members of the Organisation of the Petroleum Exporting Countries (OPEC) cartel of oil producers are meeting with their allies on Thursday to see if they can reach an accord on extending production cuts over the coming months.

The video-conference meeting of the OPEC+ grouping was pushed back from Tuesday and comes after three days of inconclusive discussions among the 13 members of OPEC proper.

Observers say the postponement points to an agreement being harder to reach than initially thought.

The meeting was originally scheduled for 13:00 GMT but eventually started almost two hours later.

The first wave of the coronavirus pandemic sent oil demand — and prices — plummeting in the spring, with the benchmark American contract even going into negative territory for the first time in history.

After tough negotiations in April, OPEC+ — which includes Russia — agreed on drastic production cuts in order to try to put a floor under oil prices.

Despite hitting producers' revenues hard, those cuts did help drag prices back up again.

However, the second wave of the pandemic has dashed hopes of a rapid "V-shaped" recovery for the economy and for oil demand.

Most producers, including OPEC kingpin Saudi Arabia, therefore favour an extension of the current agreement, which entails a cut of 7.7 million barrels per day (bpd) and was scheduled to be eased to 5.8 million bpd on January 1.

"OPEC and allies are said to be leaning towards a rollover of current cuts with a gradual increase in output," according to analyst Neil Wilson from Markets.com."Whether the easing would begin in January or after the three-month delay discussed before the meeting is unclear," wrote Stephen Innes of Axi.

After falling slightly in early Thursday trading, prices for both the US crude oil benchmark West Texas Intermediate (WTI) and Europe's Brent North Sea were holding steady just after the start of the OPEC+ meeting, at $45.30 and $48.36, respectively.

 

Thorny subjects 

 

Markets were expecting producers to be able to agree on an extension of three to six months, with many viewing Monday's meeting as a formality to sign it off.

But a recent surge in crude prices — up by 25 per cent over the course of November — together with positive news from several companies on coronavirus vaccines means some countries may need more convincing of the need for further sacrifices.

Meanwhile, the perennially thorny subject of whether all members are respecting production quotas laid down in previous agreements seems to once again be on the table.

Some insist that those who are currently overproducing be made to comply before further restrictions are imposed.

"It is unlikely that the strict implementation of the agreed cuts... will be achieved, which will undermine their effectiveness and confidence in the group," according to Eugen Weinberg of Commerzbank.

The cartel will also have to pay attention to developments in the three members which have been granted exemptions from quotas — Libya, Iran and Venezuela.

Libya's production had been almost wiped out by civil conflict but has spiked since October and now stands at over 1 million bpd, according to the country's National Oil Corporation.

In the longer term, Iran's offer on the oil market may also increase if the incoming US administration pursues a policy of detente with Tehran and relaxes sanctions.

That would lead hundreds of thousands of barrels coming on to the market, exerting a fresh downward pressure on prices.

Shoppers flock to England’s reopened high streets as lockdown ends

Dec 02,2020 - Last updated at Dec 02,2020

Tesco has decided to repay the British government for COVID-19 support it received after having weathered the pandemic  (AFP photo)

LONDON — Shoppers returned to England’s high streets on Wednesday as shops reopened following the end of a four-week coronavirus lockdown.

On a day dubbed “Wild Wednesday” because of an expectation of huge numbers of shoppers, customers wearing masks and laden with bags flocked to stores on Oxford Street in central London.

One customer, Charlotte Cobb, told AFP the latest lockdown had been “tricky” but said she was “just so happy to be back”. “With Christmas, it’s just brilliant”, she said.

“I’m really excited.”

At Selfridges’ flagship department store, staff greeted crowds with applause and a sequined Santa Claus danced under glittering silver disco balls as customers shopped.

Store director, Maeve Wall said it was a Christmas “like no other,” and “certainly not one we would have anticipated”.

“It’s about making the experience as pleasurable as we can for customers, so we will maintain the fun and excitement,” she added.

The easing of restrictions has come as a relief to the hard-hit retail industry. Non-essential shops were forced to close, compounding losses made during lockdown from March to June.

But a new regional system for curbing the spread of the coronavirus is now in place, with parts of the country in the highest of three tiers still effectively shuttered.

The system — designed to allow families and friends to gather at Christmas — has been criticised as doing little to reinstate cherished freedoms and help the ailing economy.

Most of England’s 55 million population has gone straight into Tier 2 or 3, depending on local infection rates, limiting household mixing and the reopening of the hospitality sector.

Just 1 per cent of the country — the southwest county of Cornwall, the Isles of Scilly, and the Isle of Wight in the south — are in the least restrictive Tier 1.

Prime Minister Boris Johnson, himself a COVID survivor, succeeded in winning a vote on the measures in parliament on Tuesday night, despite opposition within his own Conservative ranks.

 

Economic concerns 

 

Hopes that life could return to normal came a step closer after Britain announced approval had been given to roll out Pfizer-BioNTech’s COVID jab from next week.

The government, under pressure after 59,000 deaths in the outbreak, hopes to use it and other vaccines due to be given the green light alongside rapid community testing.

Relief also came for some of the most vulnerable as family and friends were allowed to visit care home residents for the first time in eight months.

Two visitors for each resident will be allowed twice a week, provided the visitors test negative for the virus. Physical contact is allowed using infection control measures.

Mixing of households outside support bubbles remains banned under the guidelines, although individuals can meet in groups of six outside.

London — Britain’s capital and driving force of the UK economy — is in Tier 2, meaning pubs where food is served and restaurants can reopen, obeying social distancing rules.

But in Tier 3 areas, which take in some 23 million people and includes Britain’s second city Birmingham, hospitality venues will remain closed except for takeaways.

Shopkeeper Robert, in Manchester, northwest England, said rates of infection had fallen in the city and surrounding area in recent weeks, but the area was in Tier 3.

“It makes no sense to me. And especially all the businesses now — hospitality... pubs, restaurants, bars, etc. — they’re going to suffer,” he added.

The restrictions have prompted fresh concerns for the economy, which finance minister Rishi Sunak said is facing a 11.3 per cent contraction this year — the worst in 300 years.

Those fears were stoked further this week by the collapse of retail group Arcadia, which owns popular high-street stores Topshop and Burton, and the Debenhams chain.

They have been forced into administration, blaming the impact of coronavirus restrictions on trade already under pressure from online competitors.

 

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