Coronavirus: Chinese retail giant Alibaba sees ‘recovery’ after virus
Chinese e-commerce giant Alibaba said it has seen a “steady recovery” in the country since March, but warned that the path to an economic rebound remains uncertain. The firm’s sales grew 22% in the three months to 31 March, despite virus-related restrictions denting activity. The...
Coronavirus: Leading economist warns of 10 years of depression and debt
Economist Nouriel Roubini has warned of a prolonged downturn and sluggish recovery from the coronavirus. Nicknamed Dr Doom for his gloomy predictions, Professor Roubini said there are some jobs that simply will not come back after this crisis. Even if the global economy recovers this...
UK borrowing soars to cope with impact of virus
The government borrowed £62.1bn in April, the highest monthly figure on record, according to the Office for National Statistics (ONS). It underlines the cost of coping with the coronavirus pandemic through jobs schemes and loans, and is higher than many economists forecast. The cost of...
China scraps annual economic growth target for first time
China will not set an economic growth goal for this year as it deals with the fallout from the coronavirus pandemic. It is the first time Beijing has not had a gross domestic product (GDP) target since 1990 when records began. The announcement was made...
Is New Zealand’s government spending a window into Europe’s financial future?
New Zealand announced on Thursday that its public debt will more than double over the next three years as it unveiled a massive investment plan to mitigate the economic impact of the COVID-19 pandemic. The island nation will invest 50 billion New Zealand dollars (€27.7...
Zuckerberg: Facebook in ‘arms race’ against electoral interference
Facebook founder Mark Zuckerberg has told the BBC that preventing electoral interference is an “arms race” against countries such as Russia, Iran and China. He admitted that the firm was “behind” in the 2016 US presidential election. In his first UK broadcast interview in five...
Why Ethiopia is limiting cash withdrawals
Ethiopia’s central bank has issued a directive limiting cash withdrawals for individuals and businesses. It said the move is aimed at tackling tax evasion and encouraging a more efficient use of cash. Under the directive, individual Ethiopians cannot withdraw more than 200,000 birr ($5,800; £...
Trump will lose in a landslide because of the economy, election model predicts
The economy has gone from President Donald Trump’s greatest political asset to perhaps his biggest weakness. Unemployment is spiking at an unprecedented rate. Consumer spending is vanishing. And GDP is collapsing. History shows that dreadful economic trends like these spell doom for sitting presidents seeking...
The pandemic could push 60 million people into extreme poverty, World Bank warns
The global coronavirus pandemic and the resulting economic shutdown could push 60 million people into “extreme poverty,” warned David Malpass, President of the World Bank Group, in a press release Tuesday. The World Bank defines “extreme poverty” as living on less than $1.90 per person...
Toy and vegetable costs rise as fuel price drops
The UK’s inflation rate fell in April to its lowest since August 2016 as the economic fallout of the first month of the lockdown hit prices. The Consumer Prices Index (CPI) fell to 0.8% from 1.5% in March, the Office for National Statistics (ONS) said....
Coronavirus: Rolls-Royce to cut 9,000 jobs amid virus crisis
Rolls-Royce has said it will cut 9,000 jobs and warned it will take “several years” for the airline industry to recover from the coronavirus pandemic. The Derby-based firm, which makes plane engines, said the reduction of nearly a fifth of its workforce would mainly affect...
Coronavirus: Fed chairman Powell warns downturn ‘may last until late 2021’
The chairman of the Federal Reserve says the US economy could “easily” contract by 20-30% amid the pandemic. Jerome Powell added in a CBS interview that the economic downturn might last until late 2021, and a full rebound may not be happen until a vaccine...
Japan’s economy falls into recession as virus takes its toll
Japan has fallen into recession for the first time since 2015 as the financial toll of the coronavirus continues to escalate. The world’s third biggest economy shrank at an annual pace of 3.4% in the first three months of 2020. The coronavirus is wreaking havoc...
Spanish government to reopen some airports to international travel
The Spanish government will re-open some airports on several islands and in the southern part of the country to international travel, the country’s Transport Minister Jose Luis Abalos, announced on Saturday More details are expected Sunday, Abalos said. “Tomorrow [Sunday] I will sign a resolution...
How Covid-19 is threatening Central America’s economic lifeline
During the 20 years that Alejandro Carrillo has worked in the United States, he has always sent money home. Earnings from his time with construction crews in Florida were enough to provide food and an education to each of his seven children and to build...
Germany enters recession as economy shrinks 2.2% in first quarter of 2020
Germany is in recession after its economy saw two consecutive quarters of negative growth. The country’s GDP shrank 2.2% in the first quarter of 2020, the German economy’s worst performance since the financial crisis. Growth for the fourth quarter of 2019 was also downgraded to...
Global oil demand forecast slightly improves as lockdowns ease, says International Energy Agency
Global oil demand is likely to increase slightly during 2020 as lockdowns are gradually eased around the world, according to the International Energy Agency (IEA). Better than expected mobility across the countries which form the Organisation for Economic Co-operation and Development has also helped increase...
Europe redeploys funding firepower to fight Covid-19
In this episode, Real Economy focuses on how the European Union is redeploying its cohesion policy funds to tackle Covid-19. At 355 billion euros, the EU’s structural and cohesion funds constitute a significant chunk of the bloc’s spending. Cohesion policy aims to reduce disparities in...
One of the world’s largest tourism businesses warns it may cut 8,000 jobs worldwide
TUI Group — one of the world’s largest tourism operators — is making significant cuts following a severe loss over the last few months, due to the coronavirus pandemic. The Germany-headquartered travel group announced today that it will gradually resume its travel activities after suspending...
These celebrities are committed to Bitcoin – and predict it
Some don’t like Bitcoin, others praise it: Celebrities from the world of finance and glamor also have their very own views about it. The Bitcoin boom can no longer be overlooked – the price of cryptocurrency has skyrocketed since the beginning of 2017 – currently...
Brussels Airlines will cut 25% of its workforce
Brussels Airlines has said it is cutting its workforce by 25%. The airline has a total of 4,200 employees, according to its website. In a statement on its website, the airline, which is part of the Lufthansa group, says it is taking measures to combat...
Toyota predicts profits could plunge nearly 80% this year because of coronavirus
Toyota expects profits this year to plunge nearly 80% as it deals with the fallout from the coronavirus pandemic. The Japanese automaker, one of the world’s largest, said Tuesday that it expects operating profits to reach just 500 billion yen ($4.7 billion) this fiscal year...
Budget airline Ryanair to restore 40% of flights from July
European budget carrier Ryanair will restore 40% of its flights from July 1, according to a statement from the airline on Tuesday. Ryanair will operate a daily flight schedule of almost 1,000 flights, subject to government restrictions and public health measures, the statement said. In...
Trump hardens campaign tone after virus batters economy
US President Donald Trump tipped his hand about how he plans to make up for the loss of the roaring economy that formed the foundation of his reelection campaign — rhetoric laced with racial overtones and a new and unfounded conspiracy theory he dubbed “Obamagate.”...
Marriott says its business in China is rebounding
Marriott’s profits were slammed in the first quarter of this year, plunging about 92%. The world’s biggest hotel chain on Monday reported net income of just $31 million from January to March compared to $375 million in the same period last year. Revenue per available...
Foreign holiday season likely to be cancelled, says minister
Many British people are unlikely to be able to take foreign holidays this summer because of the virus, Health Secretary Matt Hancock has said. In another blow to airlines and ferry firms, he told ITV’s This Morning it’s “likely to be the case” there won’t...
Coronavirus: As shops reopen in Greece, owners fear second wave – and second lockdown
Most shops in Greece can reopen as the country gradually eases its lockdown measures, but some of their owners are now worried about what comes next. They fear that if coronavirus infections rise again in the coming weeks or months, and restrictions are reinstated, their...
Coronavirus: Elon Musk vows to move Tesla factory in lockdown row
Billionaire Tesla boss Elon Musk has said he will move the electric carmaker’s headquarters out of California, after he was ordered to keep its only US vehicle plant closed. “Tesla will now move its HQ and future programs to Texas/Nevada immediately,” the CEO tweeted. The...
Amazon to take shutdown of its distribution centers to French Supreme Court
Amazon France is planning to take the case over the shutdown of its distribution centers to the French Supreme Court, the company said in a statement. A Paris court ruled last month that Amazon had to stop selling anything but essential items while the company...
Facebook and Google extend working from home to end of year
Facebook and Google have said they will let employees continue working from home for the rest of the year. The tech giants have announced plans to reopen their offices soon but are allowing more home working flexibility. Google originally said it would keep its work...
