Federal Reserve chair Jerome Powell has warned that America faces a slow and painful economic recovery without additional government relief. The dark forecast from the head of the US central bank is a turnaround from early April, when he said he expected a robust rebound.

It comes as lawmakers debate additional spending to shield the US economy from coronavirus shutdowns. Mr Powell said further measures would be “costly but worth it”. Employers in the US cut more than 20 million jobs last month, sending the unemployment rate to 14.7%, with the many of the losses falling on poor and minority households.

Analysts expect the jobless rate to climb further in May, before starting to subside. Mr Powell said on Wednesday that unemployment levels are likely to to remain elevated – particularly compared to the 50-year lows the US labour market enjoyed as recently as February.(BBC)…[+]

France has said it would be “unacceptable” for French drug giant Sanofi to prioritise the US market if it develops a Covid-19 vaccine. The government was reacting to remarks by Sanofi CEO Paul Hudson, who said “the US government has the right to the largest pre-order because it’s invested in taking the risk”.

Prime Minister Edouard Philippe said access for all was “non-negotiable”.  Many labs worldwide are involved in research to find a Covid-19 vaccine. Vaccines usually take years to develop. “For us, it would be unacceptable for there to be privileged access to such and such a country for financial reasons,” Deputy Finance Minister Agnès Pannier-Runacher told France’s Sud Radio.

The prime minister later tweeted that a vaccine should be for the benefit of everyone worldwide. President Emmanuel Macron said that recent efforts proved that a vaccine should not be subject to market forces, the Elysée Palace said. He is due to meet top Sanofi officials next week.(BBC)…[+]

Scores of UK and US children have been affected by a rare inflammatory disease linked to coronavirus. In a tiny number of children it can cause serious complications, with some needing intensive care. Up to 100 children in the UK have been affected and studies suggest the same reaction is being seen in children elsewhere in Europe.

It is likely to be caused by a delayed immune response to the virus which looks like Kawasaki disease. In April, NHS doctors were told to look out for a rare but dangerous reaction in children. This was prompted by eight children becoming ill in London, including a 14-year-old who died.

They all had similar symptoms when they were admitted to Evelina London Children’s Hospital, including a high fever, rash, red eyes, swelling and general pain. Most of the children had no major lung or breathing problems, although seven were put on a ventilator to help improve heart and circulation issues.(BBC)…[+]