Uber and Lyft Lose Bid to Delay Worker Reclassification Order in California
• On Thursday Uber and Lyft lost their bid to delay a preliminary injunction that forces the companies to reclassify drivers as employees.
• A California superior court judge denied the companies’ request to delay the order from going into effect August 20.
• Uber’s CEO Dara Khosrowshahi said in a recent interview that “it’s hard to believe we’ll be able to switch our model to full-time employment quickly,” noting it would force the company to [temporarily] shut down in California.
UK Officially Enters Recession
• On Wednesday it was announced that the UK’s economy shrank by a record 20.4% between April and June, when the Covid-19 lockdown was tightest. See here for detail.
• This marks the largest contraction reported by any major economy so far.
• The data showed the UK economy entered a recession as it shrank for a second quarter in a row.
• However, there were signs of a recovery in the month of June alone when gross domestic product grew by 8.7% from May.
• What a sh1te show… The massive extent and speed of the contraction, though not surprising, reflects an economic hit that has affected every high street and town and city in the country.
• The scale of the decline of Gross Domestic Product may revive questions about Prime Minister Boris Johnson's handling of the Covid-19 pandemic.
• Thousands of holidaymakers (maybe as many as 500k) have seen their plans thrown into chaos after quarantine measures were imposed on France from Saturday.
• The 14-day isolation requirement begins at 04:00 BST and also applies to people arriving from the Netherlands, Monaco, Malta, Turks and Caicos, and Aruba.
Some Good News
• But at the same time, Boris Johnson says lockdown rules will be eased to allow:
- Bowling alleys, skating rinks and casinos to reopen for the first time as well as indoor play and soft play centres
- Beauty salons, tattoo studios, spas and barbers in England to offer all close contact services and treatments
- Sit-down wedding receptions for up to 30 people to resume in coronavirus-secure premises
- Indoor arts and music performances with socially distanced audiences
- Sports and business events pilots to resume.
The R Value is Up Again
• The Covid-19 R value in the North/South West & London could be as high as 1.1, according to the latest government data, released late last Friday afternoon.
• Moreover, in London, the R rate was higher again, between 08-1.1.
• Whilst the R value across England was stable at 0.8-1.0.
• (Please remember, an “R Value” above 1.0 is bad).
• Meanwhile, the UK’s new daily infections and death curve now is showing an upwards trend (see chart below).
• It's concerning that the R Value is estimated to be above 1 in London and the North/South West; this is coupled with an increasing trend of new daily infections.
• However, we take some comfort that any further lockdowns will only be localised.
A smart man learns from his mistakes. A wise one learns from the mistakes of others.