“When Italy’s COVID-19 lockdown began in early March, it resulted in an estimated 11.5 million Italians losing their income and having to apply for state aid, amounting to half the official workforce.
“Two months on, and their loss of income is already taking its toll as the country sees the biggest jump in numbers of those in poverty since the aftermath of WWII.
“Agricultural lobby Coldiretti has now estimated that another 1 million Italians will have to turn to food banks and other forms of assistance as a result of losing their jobs under COVID-19 lockdown.
“At Banco Alimentare, Italy’s largest food bank, there has been a 40% increase in the number of requests, many of those coming from the middle classes… Many businesses that closed temporarily under coronavirus lockdown now look likely to never reopen.”
“Two months after Germany’s economy minister vowed to do everything so “no job” would be lost to the pandemic, unemployment has already risen more than during the entire 2008/2009 financial crisis.
“The emerging strains in Europe’s largest labor market show that even countries with well-established safety nets struggle to shield workers.”
“Germany threw Lufthansa a 9 billion euro ($9.8 billion) lifeline on Monday, agreeing a bailout which gives Berlin a veto in the event of a hostile bid for the airline.
“The largest German corporate rescue since the coronavirus crisis struck will see the government get a 20% stake.”
“Berlin saw new protests against the country’s coronavirus lockdown over the weekend.
“As well as protests in the capital, crowds also gathered in Munich and Stuttgart to demonstrate the German government’s response to the COVID-19 outbreak.”
“The UK’s largest arts centre has joined other cultural organisations in warning of the dire financial effects of Covid-19 on the creative industries. In a statement released on Monday the Southbank Centre says it is at risk of closure until at least April next year.”
This may be an optimistic assessment:
“Europe’s banks have built enough buffers to face the effects of the coronavirus pandemic, but not all will be able to weather a sharp fall in profitability as loans turn sour and the cost of raising funds rises, a banking regulator said on 25 May.”
“Singapore will sink into a deeper recession this year than expected earlier, amid the deterioration in global demand from the coronavirus pandemic as well as the expected impact of circuit breaker measures at home…
“There is still considerable uncertainty and the country must be prepared for retrenchments to increase, an official of the Ministry of Manpower at a virtual press conference on Tuesday.”
“South Korea’s central bank is expected to cut its policy rate to a record low on Thursday, as the coronavirus pandemic hits exports in the trade-reliant economy and prospects of a second wave of infections cloud the outlook.”
“One by one, Michelle Asinto’s six children take the plate of rice doused in soy sauce and eat their share before passing it on. This is what a meal can look like in the slums around the Philippine capital Manila.
“Under lockdown since March 16, many families have lost regular incomes and forced to survive on government aid that can be sporadic and often not enough.”
“South African president Cyril Ramaphosa has begun to ease one of the strictest lockdowns in the world, despite warning the outbreak is likely to get much worse…
“…the last few weeks have been catastrophic for the country’s poorest, many of whom live hand to mouth in crowded slums.”
“Thousands of people have taken to the streets in Ecuador…
“…to protest against the government’s economic response to the coronavirus outbreak.
“Around 2,000 people demonstrated in the capital Quito, defying restrictions aimed at combatting the virus.”
https://www.bbc.co.uk/news/world-latin-america-52803400
“Chile’s government is struggling to control a coronavirus outbreak that’s pushed hospitals toward collapse and could threaten to revive mass social unrest.
“With a population of just 18 million, Chile is reporting new Covid-19 cases at a pace comparable to that of Spain at the peak of the virus’s spread in March, on a per-capita basis…”
“Latin America’s largest airline LATAM has today filed for Chapter 11 bankruptcy protection in the US. The company, along with its affiliates in Chile, Peru, Colombia, Ecuador, and the US, have applied for the voluntary protection.”
https://simpleflying.com/latam-bankrupt/
“Mexico on Monday posted its sharpest trade deficit on record in seasonally-adjusted terms as demand for its products abroad fell faster than imports…
“…a gloomy sign for Latin America’s second largest economy struggling with the pandemic’s fallout.”
“…the former governors [of California] agreed that nothing they confronted was as dire or will be more consequential than what the current occupant of the office, Gov. Gavin Newsom, now faces.
“The economic collapse resulting from the coronavirus pandemic “dwarfs any problem the four of us had,” Mr. Davis recalled saying at the meeting, which took place late last month and was convened by Mr. Newsom.
““There’s no playbook,” he said. “There’s no precedent.””
https://www.nytimes.com/2020/05/26/us/coronavirus-california-economy.html
“Federal health officials are warning of a spike in the rat population, along with unusual, aggressive behavior as the rodents get desperate in their search for food.
“With many restaurants closed or offering limited service due to the coronavirus response, rats have not been able to dine-out on the scraps left behind.”
“Have the end times finally come for oil? Of course, the industry is no stranger to the endless cycles of boom and bust, repeated decade after decade with jobs created in the good times and then chopped away swiftly in the bad.
“This time may be different, say industry insiders. For many oil producers, coronavirus may represent an extinction event.”
“The oil price collapse is hurting not only U.S. shale firms and their drilling activities.
“The crash has severely crippled the royalty payments to a dozen million American oil and gas royalty owners of land on which companies pump oil.”
https://oilprice.com/Energy/Crude-Oil/Shale-Bust-Hits-Rural-Communities-As-Oil-Royalties-Plunge.html
“Iraqi Finance Minister and acting Oil Minister Ali Allawi arrived in Saudi Arabia on Friday to seek emergency funds to stave off an impending financial crisis brought on by collapsing oil prices, Iraqi state media reported.
“In an interview with state television before his departure, Allawi said his priority would be to secure funds to plug gaps in Iraq’s budget.”
https://thearabweekly.com/iraq-seeks-gulf-funds-stave-liquidity-crisis
“A month after U.S. crude oil prices collapsed into negative territory, European gas markets are facing the prospect of also slipping into the red after a slump in demand and surging inventories pushed prices into low single digits.
“Dutch and British gas prices have plunged due to weak demand amid coronavirus lockdowns and strong renewables output, compounding an already oversupplied market with little available storage space left.”
“Invesco’s Kristina Hooper warns the coronavirus is not the biggest threat to the market. She sees flaring U.S.-China trade tensions potentially doing the most harm to stocks.”
“Several businesses are attempting to restore the United States’ rare earth minerals and metals industry, as the federal government seeks to reduce its dependence on China, the world’s leading miner, processor and exporter of the materials.”
https://www.axios.com/rare-earth-minerals-us-china-019e8561-962a-4fa4-8159-e63a45459ace.html
“Global trade flows tumbled in the first quarter, a preview of what could be the largest contraction in international commerce in decades…
“A Dutch body considered an authority in world trade, CPB Netherlands Bureau for Economic Policy Analysis, said…
““We expect a strong decline in trade in April and May. Leading indicators point to a stronger decline in global trade in the coming months.””
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