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The World Health Organisation has warned that coronavirus “may never go away” as its experts predicted that a global mental health crisis caused by the pandemic was looming.

“The global health body on Wednesday cautioned against trying to predict how long coronavirus would keep circulating, and called for a “massive effort” to overcome it.

““It is important to put this on the table: this virus may become just another endemic virus in our communities, and this virus may never go away,” said Michael Ryan, the WHO’s emergencies chief.”

https://www.theguardian.com/world/2020/may/14/global-report-who-says-covid-19-may-never-go-and-warns-of-mental-health-crisis


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“After dismissing warnings about risky debt when times were good, many corporations are resorting to a familiar tactic to ride out the recession: borrowing even more money.

The Federal Reserve — once among those sounding the alarm — now is helping corporations pile on debt.”

https://www.washingtonpost.com/business/2020/05/13/with-feds-encouragement-corporations-accelerate-debt-binge-hopes-riding-out-pandemic/


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“…a corporate landscape that’s leveraged up to the hilt is simply much more vulnerable to future crises and shocks than one that’s not.

“We’ve still not seen the full repercussions of Covid-19 for businesses and the economic ecosystem. We don’t know how severe the damage will be on a financial and human scale.”

https://www.independent.co.uk/voices/coronavirus-economy-wall-street-debt-boeing-shares-junk-a9513176.html


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“…the historic slump that has put some 30 million Americans out of work is likely to get worse — much worse — before it gets better, according to Goldman Sachs.

“The investment bank predicts in a new report that unemployment, which surged to nearly 15% in April, could soar to 25% this year.”

https://www.cbsnews.com/news/unemployment-rate-could-hit-25-percent-great-depression-prediction/


Two prominent retail chains — J.Crew Group Inc. and Neiman Marcus — helped push the U.S. leveraged loan default rate in that struggling sector to 10.34%, a record high that, amid the catastrophic impact of the coronavirus pandemic, will almost certainly continue to climb.”

https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/retail-sector-defaults-soar-to-record-high-in-us-leveraged-loan-market-58579317


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Did you make your rent payment this month?

If you’re struggling to make that happen, you are not alone. According to Edison Research, over 62% of renters are concerned about being able to make the rent. Welcome to the newest symptom of the coronavirus: the 2020 Rental Housing Crisis.”

https://www.forbes.com/sites/chriswestfall/2020/05/13/why-renters-and-landlords-are-getting-crushed-the-rental-housing-crisis-has-arrived/#791d85807eee


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The strains were already starting to show [in Canada] before the pandemic sped up the process… a lot of businesses were struggling amid a slowing economy even before the lockdowns put a freeze on economic activity—meaning some of the businesses laying off workers were already at risk of closing for good.

“Starting last fall, the number of business insolvencies began to rise on a year-over-year basis for the first time since the early 2000s…”

https://www.macleans.ca/economy/the-economy-may-never-return-to-what-it-once-was-coronavirus-canada/


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The first step into the deepest recession in living memory has been taken. With only two weeks of lockdown measures accounted for, Britain entered an economic slump unparalleled since the 2008 financial crisis

“…the early evidence from the Office for National Statistics for the first quarter of 2020 shows Covid-19 will easily eclipse the last crisis. And the worst damage is yet to come.”

https://www.theguardian.com/business/2020/may/13/first-quarter-slump-just-a-foretaste-of-worst-to-come-uk-economy-covid-19


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Six years of negative interest rates have done as much to boost profitability at eurozone banks as they have to weigh it down, the European Central Bank said in a research paper that is likely to raise eyebrows among financiers

“The findings may be contested by some bank executives, who complain that their sector has paid €25bn in negative rates to the central bank since its deposit rate went below zero in June 2014, eating into their already weak profits.”

https://www.ft.com/content/52de6e70-56bc-4da9-adf7-b228c8da79a0


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A group of financial experts from Deutsche Bundesbank, Imperial College London and the US Federal Deposit Insurance Corporation has recently reviewed the European Central Bank’s (ECB) 2014 asset quality review (AQR) data and analyzed whether banks “dress up” for the regulator by changing their assets’ risk composition.

“As it turned out—yes, they totally do.”

https://decrypt.co/28713/german-banks-cheated-on-european-central-banks-stress-tests


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A judge in Germany’s highest court has warned that EU infringement proceedings against Berlin over the court’s contentious ruling on the European Central Bank would plunge Europe into crisis.

“Peter M Huber, who drafted last week’s constitutional opinion, told the Frankfurter Allgemeine Zeitung that such a procedure “would trigger a significant escalation, potentially tipping Germany and other member states into a constitutional conflict that would be very difficult to resolve”.”

https://www.ft.com/content/f48e3a6b-6a95-4187-8a7d-0f8dad3fbecb


Italian banks are vulnerable because of their large holdings of bonds issued by the government of Italy, one of the most indebted countries in the world

““Clearly the doom loop is still there,” said Lorenzo Codogno, who was previously the director general at the Treasury Department of the Italian Ministry of Economy and Finance. “If you have this strong link, if you have a widening of spreads, inevitably that puts pressure on the banks.””

http://archive.vn/Nh6yD#selection-675.0-683.287


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For Japan’s shell-shocked small businesses, a promised $1.1 trillion in stimulus is proving too little, too late, raising the likelihood of a surge in bankruptcies at companies that employ nearly three-quarters of the workforce…

“…small businesses, which employ 70% of the workforce, are already on the brink of disaster.”

https://business.financialpost.com/pmn/business-pmn/as-japan-slow-walks-stimulus-small-businesses-fear-collapse


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India’s shadow lenders are facing fresh turmoil after asset manager Franklin Templeton shut funds late last month, prompting other large investors to dump the financiers’ debt. Mutual funds are big buyers of non-bank financial firms’ bonds and some are struggling to meet redemptions after the biggest-ever forced closure of funds in the country.”

https://finance.yahoo.com/news/fresh-crisis-looms-india-shadow-025655912.html


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As much as 20 per cent of Yemen’s total foreign currency deposits were held in Lebanon’s banks as of October 2019, and are now trapped

“Lebanon’s banks have banned all foreign transfers abroad since November 2019, in an attempt to prevent rapid capital flight as the country faces its worst economic and financial crises in 30 years.”

https://www.middleeastmonitor.com/20200513-report-lebanons-financial-collapse-traps-yemeni-banks-money/


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Six protesters have died in Guinea during clashes with security forces over roadblocks erected to curb the spread of the coronavirus.

“”There were five deaths in Coyah and one in Dubreka,” police spokesman Mory Kaba told AFP news agency on Tuesday.”

https://www.aljazeera.com/news/2020/05/guinea-protesters-killed-clashes-police-200513071249521.html


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Before lockdown regulations halted work in the hospitality industry and the casual labour and domestic work markets, many Karoo [South Africa] residents were already battling poverty.

“The lockdown made the situation desperate.”

https://www.dailymaverick.co.za/article/2020-05-13-hunger-and-desperation-rip-through-the-karoo/


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Latin America’s economic history has long been forged through crises and shocks that stem from the global system.

“But there is no historical precedent for the turmoil that is just beginning to unfold in the region.”

https://thewire.in/world/an-economic-storm-is-going-to-devastate-latin-america-very-soon


A rerun of the oil market plunge that took the New York Mercantile Exchange’s now expired May crude contract into negative price territory on the eve of its expiration last month can’t be ruled out, the Commodity Futures Trading Commission warned Wednesday, urging the futures industry to be prepared.”

https://www.marketwatch.com/story/oil-prices-could-go-negative-again-so-be-prepared-cftc-warns-futures-industry-2020-05-13


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Financial Secretary Paul Chan has described Hong Kong’s economic challenges as unprecedented.

“In the first quarter, the city had its worst slump on record. Even pillars of the economy that had been holding up, like finance and real estate, are showing signs of softening.”

https://www.theedgemarkets.com/article/hong-kongs-economic-crisis-just-keeps-getting-worse


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Global trade is projected to record a quarter-on-quarter slump of 27% in the second quarter of 2020 as a result of the Covid-19 pandemic, after falling by 3% in the first quarter, a new report by the Committee for the Coordination of Statistical Activities (CCSA) warns.”

https://www.miningweekly.com/article/global-trade-set-to-slump-27-in-q2-report-warns-2020-05-13/rep_id:3650


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