15 June: Your round-up of the issues leading today's agenda
- A handful of super wealthy multibillionaires have accumulated vast riches from running private equity funds that have performed no better on average than basic US stock market tracker funds since 2006, the Financial Times says. The number of private equity barons with personal fortunes of more than $2bn has risen from three in 2005 to 22, according to a new analysis which estimates investors paid $230bn in performance fees over a 10-year period for returns that could have been matched by an inexpensive tracker fund costing just a few basis points.
- British Prime Minister Boris Johnson will step back into the Brexit fray on Monday as he holds talks with the European Union’s top officials, with both sides looking to reset negotiations that have drifted into stalemate, according to Bloomberg. In Johnson’s first direct intervention in the discussions since the U.K. left the bloc at the end of January, each side is looking for tacit acknowledgment from the other that a deal on their future relations can still be reached. Since March, both sides have struggled to make progress as neither has shifted dramatically from their opening positions, leaving it unclear how the deadlock will be broken.
- Almost 11,000 German holidaymakers will begin arriving in the Balearic islands from Monday as part of a pilot scheme to help Spain reactivate its tourism sector, following the disruption caused by the Covid-19 pandemic, The Guardian reports. The “safe tourist corridors” initiative will serve as a trial run as Spain prepares to reopen its borders to EU countries and those in the Schengen area on 21 June. At the request of the Portuguese government, the land border with Spain will not open until 1 July.
- Morgan Stanley economists say the global economy is in a new expansion cycle and output will return to pre-coronavirus crisis levels by the fourth quarter, Bloomberg reports. “We have greater confidence in our call for a V-shaped recovery, given recent upside surprises in growth data and policy action,” economists led by Chetan Ahya wrote in a mid-year outlook research note on June 14.