The pound pushed to its strongest level against the euro since early 2020 today as fresh lockdown measures cast doubts over the economic recovery across the continent. 

Over the last couple of weeks, as infections started rising, the euro has been falling sharply. 

From 1.22 to the dollar, it has dropped to 1.12, its lowest level in many years. 

Matthew Lynn outlines why the fourth wave will drag Europe into recession and the three reasons why investors will keep selling off the euro.

Ending summer lockdown

With cases of Covid-19 soaring across Europe, the people who were calling Britain a “plague island” a few weeks ago no longer look so clever. 

When Eastern Europe saw a surge in infections in October, it was easy to blame low rates of vaccination. 

But Ireland, Belgium, Austria, Denmark and the Netherlands have since overtaken the UK. Germany and Switzerland are close behind. 

Christopher Snowdon sets out how the chaos in Europe proves England was right to end restrictions in the summer. 

The booster vaccine programme is also aiding the nation and George Brandis, Australia’s High Commissioner to the UK, details how Australia is delivering its part of the deal after Britain helped out.

England’s tourism boost

From a tourism perspective, Britain may benefit from the situation. 

Will the nation be able to lure international travellers hungry for a rule-free festive getaway? 

Comparing the UK to rising cases in Germany and Austria, Sage scientist Professor John Edmunds said: “We’ve had high rates but [they are] fairly stable. I don’t think things will happen quite in the same way as they have done there.” 

Greg Dickinson analyses the ways Europe’s fourth wave could boost England’s holiday appeal.

Comment and analysis

Around the world: China’s hypersonic missile first

A hypersonic weapon test China executed in July reportedly fired a projectile from the system during the flight, an advanced capability that no country has previously demonstrated. US scientists were surprised by the feat, a sign that China’s military programme is far more sophisticated, and possibly progressing at a much faster pace than previously known. Experts are unsure how China managed to overcome the challenges of physics to fire a nuclear-capable missile from a vehicle travelling at hypersonic speed – at least five times the speed of sound, and with enough power to travel around the world, as this graphic shows.

Monday interview

Meet the Stoke entrepreneur who turned £20,000 into £2.4bn