“It will take years for the global economy to recover from the jobs taken away by the pandemic, and in Europe the recession will be significantly deeper than forecast just two months ago.
“Those were the findings on Tuesday in two reports, from the Organization for Economic Cooperation and Development and the European Commission, that provided the latest readings on how widespread and deep the economic impact of the coronavirus will be.
“The O.E.C.D. looked at jobs; the commission measured economic contraction. Experts conceded that the spread of the virus was unpredictable, making forecasts tenuous. But both reached similarly brutal conclusions.
“The number of job losses has been 10 times greater than the hit inflicted during the first months of the 2008 global financial crisis, O.E.C.D. economists said…”
“The coronavirus pandemic has hit every generation hard, disproportionately killing older Americans and spreading economic fear across the entire country.
“For Gen Z, people born between 1997 and 2012, life has practically been upended and the ramifications of the virus and the financial crisis it has engendered threatens their livelihoods for years to come.”
The U.S. Consumer Financial Protection Bureau on Tuesday issued its long-awaited payday lending measure that rescinds an Obama-era proposal requiring lenders first ensure a borrower is able to repay them.“
“Consumer advocates blasted the move as a further sign the Trump administration is going easy on predatory lenders.”
The number of UK jobseekers has surged at its fastest pace since 2009 as the coronavirus lockdown recession has hit jobs hard, recruiters have warned.“
“Salaries for new starters are falling as more applicants chase fewer jobs, as employers across all industries cut back hiring, according to the Recruitment and Employment Confederation and KPMG.”
“France, Italy and Spain will contract more than 10 percent this year, the commission said in its summer economic forecast on Tuesday.”
“Despite dealerships starting to open and the automotive sector resuming business, car sales in June in Germany, Spain and the UK were still down by more than 30% compared to 2019, and were 23% down in Italy.
“The ACEA now forecasts a 25% fall in new car sales for the whole of 2020.”
Thousands of protesters have clashed with riot police in the Serbian capital Belgrade after the country’s president announced the reintroduction of a lockdown following a spike in coronavirus cases.“
“Serbia went from one of the strictest lockdowns in Europe to a near complete reopening of the country at the beginning of May.”
Bond investors are losing their appetite for South African debt after the government increased issuance a second time this year to help plug a yawning budget deficit… “
“…some analysts questioned whether investors have the stomach to continue absorbing the pile of new debt at a cost that’s still low enough for the government to afford.”
The government of Zimbabwe has spent millions of dollars on luxury cars for senior officials despite a deepening economic collapse that has plunged its people into profound hardship.“
“The new cars, including dozens of Range Rovers and Toyota pick-up trucks… were distributed to ambassadors and senior civil servants.”
“Experts have advocated a review of the national food security structure to address an imminent possibility of food security crisis that may hit Nigeria as a result of the effects of the COVID-19 pandemic in the agricultural sector.”
Ethiopia’s Water, Irrigation and Energy Minister Seleshi Bekele has pointed an accusing finger at Egypt over recent unrest… “
“The government says the neighbouring country’s motive was to stop Ethiopia from continuing with the Grand Renaissance Dam project… Construction of the mega dam has sparked tensions with neighbouring countries that are downstream on the Blue Nile.”
Kurdish authorities fear a humanitarian disaster in northern Syria where Turkey is accused of deliberately inducing a drought by cutting off water from the Euphrates River.“
“Water levels have declined by up to two-thirds, with Syrian farmers in Qara Qawzaq — just outside Kobane — warning that their livelihood will be seriously hit by the shortages.”
During a demonstration held by small business owners in Tel Aviv in the morning, one protester, who is a single mother, said she currently has virtually no income from the four businesses she owns. “
“”I have to choose when grocery shopping, what I can afford to buy my kids,” she said. “Bills have to be paid by July 10 and I have no money. My financial situation scares me more than the coronavirus.””
“One Lebanese woman asked for sugar, milk, and soap in exchange for a child’s dress. Another wanted canned goods in return for gym equipment.
“A 65-year-old seamstress now exchanges her sewing services for food, because her clients can no longer afford to pay her.
“Bartering on Facebook has become the last resort for some people in Lebanon, where a financial meltdown has sent prices skyrocketing this year.”
Pakistan’s financial woes are going from bad to worse as the national fiscal deficit surges to over 7% of gross domestic product (GDP) and could breach 9-10% as state revenues dry up amid Covid-19 economic devastation.“
“That’s raising questions among analysts and business executives of whether the country is headed towards a budgetary blowout-induced financial collapse.”
“Investigations into at least three major crashes in Pakistan in the past decade found the pilots were either at fault or didn’t follow guidelines.
“Khan said that 262 of over 850 pilots in Pakistan had fake qualifications and many didn’t even sit the exams themselves.
“Iran has slashed crude oil production to its lowest level in four decades as storage tanks and vessels are almost completely full due to a fall in exports and refinery run cuts caused by the coronavirus pandemic…”
China went out and snapped up cheap crude at such a breakneck place that they now have their own critical oil storage issue. “
“International news has been reporting for weeks on China’s jam-packed waterways filling up with crude tankers.”
“Mexico’s state oil firm Pemex is asking some of its contractors if they would agree to be paid for their services next year, people familiar with the payment situation at the company with US$105 billion of debt told Bloomberg.”
Venezuela’s poverty rate surged in 2019 to levels unmatched elsewhere in Latin America as the once-prosperous OPEC nation’s hyperinflationary economic collapse continued for a sixth straight year, according to a study published on Tuesday…“
““There is no wealth to distribute,” said Pedro Luis España, a UCAB sociologist who contributed to the study.”
“The world’s top oil and gas companies locked in cheap borrowing rates to raise a record amount of debt in the second quarter of 2020 and boost cash reserves as a buffer against a collapse in revenues because of COVID-19.”
Big and mid-cap firms globally are expected to slash capital spending by an average 12% this year as they reel from the fallout of lockdowns and other measures imposed to rein in the coronavirus pandemic, analysts’ estimates show… “
“The predicted cut is bigger than the 11.3% decline that occurred in 2009 in the wake of the global financial crisis.”
A review of the bank-specific results published by the Fed using February’s pre-pandemic assumptions shows that some large banks would be operating with thin capital margins even under those more benign scenarios. “
“For instance, Goldman Sachs’s supplemental leverage ratio dipped as low as 3.5%; Morgan Stanley, 4.5%; JPMorgan Chase, 5.1%. Unfortunately, we don’t know how these and other large banks will fare under the more-distressed conditions caused by the pandemic.”
“Absent the sharpest of V-shaped recoveries, Europe’s banks will at some point need to recognise the new economic reality and raise their provisions for loan losses dramatically.”
“Japan’s financial regulator is running out of patience with regional banks that are struggling to adapt to an increasingly grim business environment.”
“Over the past decade, the UN, world leaders and pundits have promoted a self-congratulatory message of impending victory over poverty, but almost all of these accounts rely on the World Bank’s international poverty line, which is utterly unfit for the purpose of tracking such progress,” said Alston. “
“The expert condemned the near universal reliance on the bank’s line, which he said is deeply flawed and yields a deceptively positive picture.””