British inflation unexpectedly jumped above the Bank of England's target in May when it hit 2.1%, part of a post-lockdown climb in prices that is expected gather pace, Reuters reported. The acceleration of the consumer price index from April's 1.5% largely reflected how weak inflation was in May 2020 when the economy was reeling from its first tight lockdown. The figure represented the first time inflation has gone above the BoE's 2% target in almost two years and was above all 33 forecasts in a Reuters poll of economists which had pointed to a rise in inflation to 1.8%.

Britain’s decision to extend the last remaining Covid-19 lockdown rules another month will cause barely a ripple in the pace of economic growth this year but put thousands of jobs at risk in the industries hit hardest by the pandemic, Bloomberg News reported. UKHospitality, which represents restaurants, hotels and bars, said its members will lose another 3 billion pounds ($4.2 billion) in sales in addition to the 87 billion pounds foregone during the pandemic, threatening 300,000 jobs across the industry.

Intrum AB, the biggest debt collection company in Europe, says that its latest survey of businesses in the region shows many are bracing for growing payment issues, Bloomberg News reported. “Companies themselves expect increases in late payments,” Anders Engdahl, Intrum’s chief executive, said by phone. “Overall, the aggregate loan-to-value ratio in relation to GDP in the European economy has increased quite sharply in 2021.” After more than a year of pandemic-induced restrictions, it’s still unclear how quickly Europe’s economy will bounce back from the Covid crisis.

Credit Suisse is preparing its first insurance claims on losses stemming from its $10bn of funds tied to collapsed finance group Greensill Capital, the Financial Times reported. The Swiss bank is trying to recoup billions of dollars owed to the group of supply-chain finance funds, which it was forced to close in March. While its recovery team is mainly focused on negotiating with debtors to recover money on behalf of more than 1,000 investors, it has also started the process of claiming on the related insurance, primarily from Japanese group Tokio Marine.

Sweden’s government refused to back down after the left-wing opposition threatened to try to unseat Prime Minister Stefan Lofven over plans to deregulate the country’s rental housing market, Bloomberg News reported. Minister for Justice Morgan Johansson said the Cabinet will continue to prepare a formal bill, after the Left Party demanded it to drop the intention to allow landlords charge market rates for new rental apartments. The government expects to come back with a final proposal late this fall, Johansson said.

Sanofi’s defined benefit (DB) pension scheme has additional insolvency protection of up to £730m for 20 years, following intervention from The Pensions Regulator (TPR), Pensions Age reported. The regulator worked with the global healthcare company to secure the increased financial support for the scheme, which also includes deficit repair contributions and an upfront payment of £37m, after warning that it would take enforcement action if necessary.

The European Union is testing investors’ appetite to fund nearly $1 trillion of debt over five years as it seeks to finance its recovery from the coronavirus pandemic, Bloomberg News reported. The bloc opened books on debut 10-year bonds as part of its NextGenerationEU (NGEU) program, which will finance grants and loans to member states.

The number of employees on British company payrolls surged by a record amount in May as COVID restrictions eased and pubs and restaurants resumed indoor service, though it still remains more than half a million below its pre-pandemic peak, Reuters reported. Tax data released on Tuesday showed that British companies increased their number of employees by 197,000 in May, the biggest single-month increase since records began in July 2014, taking the total to 28.5 million.

Britain and Australia announced a free trade deal on Tuesday which the British government hailed as an important step in building new trade relationships following its departure from the European Union, Reuters reported. Britain said cars, Scotch whisky and confectionery would be cheaper to sell in Australia because of the agreement, which removes tariffs and reduces red tape. Australia said it was a "great win" for Australian agriculture. The deal is the first bilateral trade accord Britain has negotiated from scratch since leaving the EU last year.

The U.S. and Europe are expected to announce a five-year suspension of tariffs in their 17-year-old dispute over aircraft subsidies on Tuesday, allowing them to focus on the threat posed by China’s nascent commercial aircraft industry, Reuters reported. A deal to pause the world's largest corporate trade dispute would help U.S. planemaker Boeing (BA.N) and Europe's Airbus (AIR.PA), while granting relief to dozens of other industries affected by tit-for-tat tariffs that were suspended in March. They face a renewed trade war within weeks if there is no progress. U.S.