Poundstretcher could close nearly half its stores in six weeks’ time, with 2,000 jobs at risk, after landlords and other creditors approved a rescue restructure, my colleague Sarah Butler reports.

Rents will be cut by up to 40% on 84 stores and held at current rates on 94 stores under the insolvency process known as a company voluntary arrangement (CVA) approved late on Thursday night.

Poundstretcher has agreed to pay rent on 253 stores for six weeks but warned landlords that the outlets could close after that if new deals could not be agreed. A further 23 stores owned by a company directly linked to Poundstretcher may also close as the division is expected to be put into administration next week.

The Labour Party has thrown its support behind calls for a wealth tax to cover the cost of the pandemic.

PA has the details:

Shadow chancellor Anneliese Dodds, in her first major speech in the role, told the government on Friday “to not increase taxes or cut support for low and middle-income people” during the crisis.

But she said a “new settlement” is needed to address the injustice of the worst-off paying more tax proportionally than high earners, while the richest derive a significant part of their income from wealth.

Dodds criticised the prime minister’s “muddled, confusing” and “much too slow” response to protecting the nation’s health during the Covid-19 outbreak.

An update on the pub situation - landlords in England can throw their doors open at 6am tomorrow, as part of the relaxing of Covid-19 rules.

That may not seem completely consistent with the government’s calls for responsible drinking, but at least it should prevent bars opening at 00.01am for late-night revelry.

Also, pubs would still need a licence to open that early, so it can’t be a total free-for-all. And, as flagged earlier, some are taking a cautious approach.

The slump in retail sales since the pandemic began has left many retailers unable to meet their rental payments.

Landlords are now counting their losses. Property group Landsec, which owns Bluewater in Kent and the Trinity Leeds shopping centre, has revealed it only received a third of the rent it was due last week, to cover the next three months.

Some retailers are hanging onto their cash, to ride out the downturn, while other unlucky chains have fallen into administration.

Here’s my colleague Larry Elliott on the recovery in China’s service sector, and the market reaction:

Tomorrow has been billed as Super Saturday, when thirsty Brits will be hammering on the nearest pub door for a pint after months of lockdown.

However, while pubs in England can reopen tomorrow, many are taking a cautious approach - concerned not to act riskily while Covid-19 is still around.

Pub chain Fuller, Smith & Turner told the City it will only open 27 pubs tomorrow.

Many (including one of my own fine Oxford locals, the Butchers Arms) will remain closed for a little longer, while the initial excitement dissipates, so publicans can operate safely.

Fullers says:

The Company is undertaking a phased, gradual reopening across the estate. On 4 July 2020, 27 pubs will open, with further pubs opening in groups over the following weeks. By the end of July, over 80% of our Managed Pubs and Hotels will be open.

We expect the majority of our Tenanted Inns to also reopen during July.

Rival chain Mitchells & Butlers is moving faster, planning to reopen three-quarters of its pubs tomorrow. It needs the business, having posted a loss of £121m for the last six months.

But, M&B also admitted yesterday that it has concerns:

We will be transparent with guests as to these measures such that they can trust in us.

Equally some consumers may not heed the measures put in place to restrict the spread of the virus, potentially putting our team members and other guests at risk.”

The CBI sums up the situation....

British consumers struggling to repay their car loans, or other credit bills, have been thrown a small lifeline:

The UK’s financial regulator has given customers of car finance and other forms of high-cost credit the option of freezing payments and repossessions for three more months, amid concerns about a mounting economic toll from the coronavirus pandemic. More here:

Duncan Brock, group director at the Chartered Institute of Procurement & Supply, says UK services companies (who make up around 70% of the economy) are struggling, based on today’s PMI report.

“Pipelines of new work were still severely weakened for the fourth consecutive month, and export orders were still in dire straits. With imposed travel and logistics restrictions disrupting supply chains overseas clients shied away from placing orders as the pandemic’s presence is still felt.

He’s also concerned that many more will be forced to cut jobs:

Businesses securing their premises to ensure Covid safety for staff and customers means operating costs are rising. Some firms are resorting to heavy discounting, others accelerating innovative solutions to change their operating model to stay in business. For others, the decision to shed jobs may be the only solution as the fight for survival continues and the UK economy grits its teeth for the months ahead.”

The UK PMI index may look like a V - but it’s not showing a V-shaped recovery. Instead, it suggest activity has stabilised.

Although, as economist Rupert Seggins points out, surveys will struggle to capture exactly what’s happening in the economy right now.

Just in: The eurozone’s economy shrank again last month - but at the slowest rate since the pandemic started.

Data firm Markit’s eurozone composite PMI, which measures activity across the economy, has risen to 48.5 from 31.9. That’s shows a small contraction (50 = stagnation).

It is better than the ‘flash’ reading of 47.5 recorded last month, suggesting growth picked up towards the end of June. But its much weaker than China (which, of course, emerged from lockdown earlier).

Companies reported that new business continued to decline in June, but at a much slower rate, with weak demand at home and abroad. Levels of new export business continued to fall at a severe pace in June.

France had a relatively good month, returning to growth during the month. However, Ireland suffered another chunky contraction.

Markit says:

Despite the sharp improvement since May, the index was nonetheless indicative of challenging economic conditions across the region.

Both manufacturing output and service sector activity continued to fall according to the latest data as the coronavirus disease 2019 (COVID-19) pandemic again weighed on wider economic activity. Country level data for June showed that all countries enjoyed their best Composite PMI readings since February.

Of note, growth was seen in France, which was the best-performing country overall. Spain moved close to stabilisation, but activity continued to fall at solid rates in Italy and Germany. Ireland was the worst-performing nation.

Here’s more detail:

With Wall Street closed for the Independence Day holiday, European stock markets are rather subdued.

• FTSE 100: down 10 points or 0.17% at 6229
• German DAX: up 23 points or 0.2% at 12,631
• French CAC: flat at 5,048

Australia’s service sector returned to growth last month after its Covid-19 slump.

Companies reported that new business volumes returned to growth, as firms reopened and individuals resumed consumption. This lifted business confidence, although (as in China) firms kept cutting jobs.

This lifted the Commonwealth Bank of Australia’s Business Activity Index from 26.9 in May to 53.1 in June -- showing a steady return growth after a shocking plunge.

China’s overall recovery is becoming more balanced and broader based as life slowly returns to normal, says Reuters, adding:

The Caixin survey showed a sub-index for new business received by Chinese services firms rose to 57.3 from 55.8 in May, with the rate of growth accelerating to the fastest since August 2010.

New export business also expanded for the first time since January on firmer foreign demand, in contrast to overseas orders for manufactured goods, which continued to contract as many of China’s trading partners remained in lockdowns.

Growth across the wider Chinese economy has also hit a 10-year high, as new business accelerates.

With service sector firms and manufacturers both reporting growth, the China Composite PMI has hit its highest level since November 2010.

Importantly, though, that doesn’t mean companies have recovered to their pre-crisis levels. Just that, after a severe economic shock, things are improving.