IMF chief Kristalina Georgieva quoted on Friday during a press conference that the world might be heading towards a recession that will be surpassing the likes of the 2009 recession thanks to the ongoing COVID-19 pandemic. “We have stated that the world is now in recession and that the length and depth of this recession depend on two things: Containing the virus and having an effective, coordinated response to the crisis,” she quotes. “We should not go with small measures now when we know that it is a gigantic crisis,” she further quotes. “We’ve never seen the world economy standing still. Now we do. How we go about revitalizing it is another important topic.” However, she also feels with a certain ambiguity that the world coordinated efforts by the world leaders will push the virus out
Amazon, the tech firm has been often criticized for mistreating their employees, especially their warehouse staff. Often protests are displayed from the staff against conditions such as unfair pay and difficult work conditions. However, at a time of severe global crisis, Amazon has put itself into the most modest of workplaces by increasing overtime pay for their workforce. CEO Jeff Bezos, also said on Saturday, “My own time and thinking is now wholly focused on COVID-19 and on how Amazon can best play its role,” as posted on the message board on the company’s website. Amazon took the drastic and noble deed of paying overtime for their workforce to meet the growing demand for online shopping for consumers who are stuck at home during the outbreak of the pandemic. Hourly workers at Am
While the ongoing novel strain of COVID-19 has seen pick apart the economy of China at an alarming rate. The latest sector to take a hit was the Federal Domestic Investment. On a daily basis, China experiences a healthy dose of investments owing to their superior production techniques and their overall GDP share on the international stage. The FDI totaled 134.4 billion yuan (USD 19.2 billion) for the period of January-February 2020 as quoted by Zong Changqing, director of foreign investment department, which functions under the Ministry of Commerce. An initial breakdown of the total FDI reveals an increase of 4% for investments in January, however, the rate pummeled 25.6% throughout February owing to the outbreak. Zong further warns of a complex and grim FDI situation for the follow
According to reports, Lebanon’s top leadership has raised issues about repaying the country’s sovereign debt. The following rumors come from the President’s office, on Saturday. The following remarks indicate that Lebanese looks to drive itself into the grounds further as it looks to head towards a major financial crisis in the future. Lebanon’s economy took a turn for the worse starting from October as its local currency was slashed in value by 40% as leading banks in the country denied complete access to their accounts further tightening the situation. Lebanon has garnered a $1.2 billion Eurobond in debt which is due on 9th March which is just a subset of the entire $31 billion in dollar bonds in its entirety. Prime Minister Hassan Diab is expected to address the Eurobond issue as well
While China’s economy has already taken a hit due to closed manufacturing sectors, Italy seems to be second in line to follow suit. Italy was the first European country besides South Korea that has reported a major surge in cases surrounding coronavirus, with numbers quickly climbing from the tens to the hundreds. At the time of writing, the towns in Lombardy in Northern Italy face the same lockdown measures as Wuhan, with a very a smaller number of people allowed to roam the streets. Lombardy alone accounts for 40% of Italy’s industrial output. A lockdown of the town has put Italy in a financial headlock with the economy leading to millions of currency being bled from the economic total. Milan serves as the country’s key center for finance and other valuable range of services. While at
The British government under the reign of Boris Johnson has now unveiled the country’s new, blue post-Brexit passports that bring back an “iconic” document that was considered to be the only thorn during Brexit’s negotiations amid deportation. The “iconic” passports which were taken away from Britain since 1988. Boris Johnson further praised the color change as a "wonderful thing" and even echoed his displeasure when they were being taken away citing “A sense of personal loss and outrage.” "I think it's a wonderful thing if people want to have a blue passport again," Johnson told ITV News in 2017. While the UK had no obligation to change the color of its passports in 1988, they, however, decided to do so cementing “Political closeness” with its fellow EU members. Sources dictate that th
U.S. stocks usually remain unaffected to an extent in times of crisis. However, due to the rise of the novel virus strain, U.S. stocks have sold off and the Nasdaq had their worst daily percent growth in three weeks on Friday as growing fears overturned economic growth. The biggest drags on the S&P index were caught by the technology sector affecting big-boys such as Microsoft Corp (MSFT.O), Amazon.com Inc (AMZN.O) and Apple Inc (APPL.O). The S&P technology index (.SPLRCT) dropped 2.3% which shows an indirect response from China’s economic slowdown. China recently reported new increases in cases with South Korea becoming the latest hotspot with 100 new cases and a further 80 people being infected in Japan. “It’s creating a wild card” for companies and investors, said Peter Tuz, p
Tesla began its rollercoaster ride at the beginning of February surpassing their share price by almost $1,000 with the highest intra-day stock price recorded at $968.99. Elon Musk was mentioned in the halls of Wall Street during last week as Tesla’s stocks swung hundreds of dollars in both directions. To begin the story, the stock begun with a record high price of $670 a share. This did not however, come as a surprise after Tesla’s better-than-expected quarterly earnings. However, that was nothing compared to what was to come for Tesla. Share prices continued to climb up after two consecutive days of trading and climbed almost 20% on Monday and 14% on Tuesday rising to the highest share price during the intra-day trading. However, the rocketed rise for Tesla’s stock came due to a phenome
Ever thought that a novel epidemic can affect the stock market? Well, think again. The coronavirus has now affected 213 poor souls with the official cases rising to 10,000 as the World Health Organization declaring it a national emergency on Thursday. While it has an indirect effect due to lower trading with China, European stocks closed lower on Friday after the first two cases surfaced in the U.K. The pan-European Stoxx 600 ended 1% lower with the basic resources falling 1.7% across all the lead losses as all major sectors in trading were balancing in the red. Losses for European markets were deepened as initial GDP losses were estimated lower than usual during the fourth quarter of 2019. Core inflation slowed further growth of the economy as indicated by the European Central Bank. A q...
The latest continent to be added to the list of countries to be affected by the coronavirus is Australia. While the origin of the virus has been scaled down to China, the Chinese have been more than quick to take the required steps to contain the virus amongst themselves. However, the mere outbreak of a new virus has certain effects on the country, in addition to the obvious, as dictated by the Chinese officials at a recent press conference. The most affected sector that has taken the most hit seems to be the traveling sector as sales from travel dropped 28.8% from the previous year, as quoted Liu Xiaoming (Vice Minister of Transport). Furthermore, China also faces a severe shortage of medical supplies as the population of China exceeds far than that of any country on Earth. Furthermore, ...