Good morning from the Financial Times.

Today is Tuesday, July 21st,

and this is your FT news briefing.

EU leaders are closing in on a deal

for a landmark coronavirus recovery package.

The largest laboratory company in the US has a warning when it comes to testing capacity,

and European banks are bracing for hundreds of billions of euros of loan losses over the next few years.

Plus, the F.T.'s James Pallidi will explain what the rise in infection rates in the U.S.

means for economic recovery.

I'm Mark Filipino, and here's the news you need to start your day.

Marathon talks on Europe's coronavirus recovery fund continued early into the Brussels morning,

but EU leaders are closing in on a deal to help the members of the block hardest hit by the pandemic.

As part of the deal comes a compromise laid out by European Council President Charles

Michel for so-called frugal countries, Denmark, Austria, the Netherlands, and Sweden

would receive increased rebates on their contributions to the

Block's budget.

And it comes with another part of Mr. Michel's proposal that 390 billion euros of the package

will be distributed to virus-stricken countries as grants.

The figure is less than the 500 billion euros originally proposed in May, but it's higher than

earlier demands from the frugal nations. The rest of the package would be made up of loans.

And alongside the Recovery Fund, leaders are expected to sign off on the EU's next budget.

It'll go from 2021 to 2027 and is a little more than a trillion euros.

...