Swine flu

Fears that a swine flu outbreak could turn into a global pandemic intensified on Monday, as governments across the globe stepped up their response and tensions rose between Europe and the US following a warning by a senior EU health official against all but non-essential travel to America.

On the first day of trading, financial markets were volatile  after warnings that the flu outbreak in Mexico could become a pandemic and damage any prospect of a fragile economic recovery. Airline, travel, tourism and meat producer stocks fell sharply on swine virus worries, but pharmaceutical stocks rose.

There is no vaccine to prevent the spread of A/H1N1, and even if officials were to start work on one today it would take months to produce.

On the positive side this virus is, at least for now, responding to common antiviral treatments such as Tamiflu. The WHO has an emergency stockpile of 5m or so antiviral drugs, which it plans to make available for the hardest-hit countries.