- COVID-19 coronavirus
- COVID-19 coronavirus in Russia
- Tests for COVID-19 coronavirus
- COVID-19 coronavirus medicine
- Vaccine against COVID-19 coronavirus
Mishustin included media in the list of the industries which were injured from a coronavirus
Mass media and publishing are included in the list of the industries most affected by deterioration in an economic situation because of spread of a new koronavirusny infection. The government decree is signed by the prime minister Mikhail Mishustin.
Publishers of books, newspapers, magazines, the periodical presses, TV companies and radio stations, online medias, news agencies and also the releasing newspapers of printing house will be able to use the operating measures of support.
With development of a pandemic of COVID-19 in the media industry proceeds from sales of the products fell, advertizing revenues decreased, the subscription is reduced. Especially, note in the government, the small companies and the organizations in regions, in the majority belonging to small and medium business suffered.
| ||At the same time domestic media continue the information work. "Now the role of media is especially important: citizens should obtain operational and reliable information about the events", - the press service of the government quotes the prime minister Mikhail Mishustin|| |
Kelly Services: 70% of heads of an average or the top management note reduction of hiring of personnel
On May 25, 2020 the companies Kelly Services and Avito Work provided data researches "Work during the quarantine: what happens in the companies during epidemic coronavirus?". During the research more than 66 thousand Russians were polled. Respondents from eight federal districts participated in poll RUSSIAN FEDERATION, it is more than a third (38%) – residents of million-plus cities and the large regional centers: Moscow St. Petersburg Nizhny Novgorod Samara Novosibirsk Yekaterinburg Vladivostok Rostov-on-Don Kazan Krasnodar.
Most of heads of an average or the top management which participated in poll note reduction of hiring of personnel (70%). About preserving of rates of hiring in the company declared to 23% of respondents, another 7% increased hiring because of new business needs (fig. 1). Finance Investments/Insurance Education, state Management structures belong to the spheres which increased set of employees/ TransportLogistics,/, Mechanical engineering and also Consumer goods (production and sale).
The situation with hiring of personnel remains to the stablest in the cities where a large number of the enterprises of a continual loop is concentrated: Novosibirsk (67%), Rostov-on-Don (29%), Moscow (28%), St. Petersburg and Samara (on 20%), in Nizhny Novgorod (17%) (fig. 2). In terms of hiring the situation in Yekaterinburg is represented to the most problem – 100% of the managers who participated in poll reported that hiring in the companies of the city is suspended. Nevertheless even during preserving of a quarantine some companies continue to look for new employees. The greatest number of the companies which increased set of employees is recorded in Rostov-on-Don (14%), in Kazan and Krasnodar (on 12%) and also in Moscow (7%).
Difficulties with business in the conditions of self-isolation, threat of fall of income and attempt to adjust work from the house, not in the best way affect mood of workers. Only a third of respondents (34%) noted that the mood of workers in the company did not change. Most of respondents (61%) notes that the mood in collective worsened (33%) or significantly worsened (28%). Growth of motivation connected with an opportunity to work from the house was noted by only 5% of respondents.
The rating of the most disturbing regions where the mood of workers significantly worsened, and employees are completely demotivated, head Krasnodar (32%), Rostov-on to Don (31%), Novosibirsk and Vladivostok (on 30%), Moscow and Kazan (on 29%). The stable remains the atmosphere in the companies of Samara (36%), St. Petersburg, Yekaterinburg and some companies of Vladivostok (all on 35%) (fig. 3).
At the same time work in coronavirus propagation conditions for many respondents is represented risky. More than a half of respondents (54%), consider that work in the conditions of epidemic poses a serious threat of their life and to health. About a third (30%) are not sure of risk. Another 16% do not see the special risks work-related during epidemic (fig. 4). Among spheres which workers consider that they risk life and health, on the first place Medicine, Pharmaceutics / Clinical trials / the Medical equipment, Retail and also Structures of public administration.
The situation with a coronavirus threatens many companies not only financial problems and loss of the positions in the market, but also loss of loyalty of workers without whom it will be impossible to overcome crisis. Work in the conditions of epidemic became check of loyalty for many employers. More than a third (36%) of respondents are going to replace the employer as soon as possible. Another 38% did not decide how they will arrive after the end of crisis. And only 26% said that they are going to remain with the current employer as he behaved adequately in the current situation.
| ||"The most part (67%) of respondents noted decrease in income level. Especially it concerns workers whose industries suffered most of all. It should be seized quickly new specialties and to agree to any work for providing the families. There will be reductions among management of the companies. Koronakrizis forced us to reconsider our value systems, our relation to health, security, the and people around. In modern conditions it, perhaps, is even more important than whether our income will remain or not. There will be new standards, new professions connected with security of health. Remote work will become a norm. Employers will have new tasks of attraction, deduction and motivation of personnel on an udalenka",|| |
| ||"Labor market is very sensitive to external changes. It is no wonder that in this sphere approach of a crisis situation is most quicker felt and, as a result, most quicker there is a recovery. The question of search of new work or a side job is important for many people. We see it on activity of our applicants, and we try to offer them versions of the fast solution of a question, for example, using a bot – he daily in a chat notifies on suitable vacancies. Nobody definitely knows how long we will live in the self-isolation mode. However it is possible to say surely that on its end usual to us institutions will begin to open again. On services of beauty shops, dry-cleaners, workshops and cafe demand will return quickly enough, and it means that right after self-isolation canceling applicants will be able to find work in these spheres",|
'Artyom Kumpel, the managing director of Avito Work noted'
Only 10% of the companies received state support for overcoming economic effects of a pandemic of a coronavirus
Only 10% of the companies received state support for overcoming economic effects of a pandemic of a coronavirus, RBC reports in May, 2020. Survey results, carried out by Centre for Strategic research are like that.
- Representatives of 75% of the companies participating in a research told that they do not get under conditions of providing support from the state though it is necessary for them.
- Many enterprises of small and medium business faced failure in receiving a number of privileges though they had the right to them.
- As a rule, refused to entrepreneurs receiving the credits under a zero rate for salaries. The enterprises of it did not manage to make 38%.
- 32% of respodent declared failure of banks in providing an interest-free delay for half a year, another 25% received the negative answer to a request for a delay of charge of percent on a preferential rate.
- 34% announced unsuccessful attempts to agree with the lessor about lease payment postponement. 30% of the companies did not receive grants on salary payment at the rate of the minimum wage on one employee.
- 54% of MSP could not expect reduction of tariffs of insurance premiums.
- The bureaucracy, lack of a clear procedure for granting of the help, obstinacy of lessors, failures of banks and FTS became the main obstacles for receiving different privileges, according to the polled entrepreneurs.
- On average 10% of the companies received at least one measure of support, 10% are in process of receiving, another 50% are only going to receive the help.
- As for a segment of small and medium business, every tenth enterprise received at least one measure of support, two of ten — are in process of receiving, seven of ten expect to use it.
- Data of poll are based on the personal interviews conducted by specialists TsSR within weekly monitoring of moods of business. 2.5 thousand companies from different sectors of economy participated in poll s4 till May 10, 2020.
Putin proposed new measures of support self-employed and SP
- Since May 12 the uniform period of non-working days for the whole country and all sectors of economy comes to the end. The next stage — mitigation of the mode of restrictions from which exit fast will not be.
- For people 65 years and persons with chronic diseases are more senior the mode of self-isolation remains.
- Heads of subjects still make decisions on exit terms from the mode of restrictions. Governors have right in coordination with the government to limit work of the enterprises which are not providing sanitary standards.
- All mass actions are prohibited.
Help to business and NPO
- Since June 1 the credit line of support of employment in the amount of 1 minimum wage rate on the employee will be started. The final rate on the credit — 2%, the rest subsidizes the state, percent should not be paid monthly. A repayment period — on April 1, 2021.
- It will be possible to utilize the credit both on a salary employee benefit, and on refinancing of earlier taken salary credit under 0%.
- If the enterprise saves not less than 80% of personnel, a half of the credit and percent will be written off.
- If the enterprise saves 90% of personnel, the credit and percent will be written completely off.
- The saved not less than 90% of the staff of the level of April of the company will receive a direct subsidy for salary payments to employees for April and May.
- Taxes and insurance premiums of SP, MSP and socially oriented NPOs for the second quarter will be written completely off.
- In addition to the credits, the enterprises will have to co-finance salary payment.
- Salary at the enterprises which activity is suspended should remain.
In the conditions of COVID-19 coronavirus pandemic the President of Russia Vladimir Putin suggested to return in full self-employed the tax paid in 2019 and also to provide them the tax capital. Today, on May 11, at a meeting on fight against a pandemic the head of state announced end in the country of the period of non-working days.
The tax capital offered by the president for all self-employed should be in the amount of one minimum wage rate. "At the expense of it (the tax capital. — Kommersant) they will be able to register tax payments this year, without distracting own means, saving the income" — he added. Now in Russia 650 thousand citizens have the status of self-employed.
For the individual entrepreneurs (IE), victims of a pandemic, Vladimir Putin suggested to make in 2020 tax deduction in one minimum wage rate on insurance premiums. "Now it is necessary to lower a fiscal burden and on SP which are engaged in the most affected industries" — he added.
Also the president suggested to write off for the second quarter all taxes, except the VAT, and insurance premiums for SP and small and medium business from the affected industries and also for socially oriented NPOs. Before the company of the affected industries received a delay on taxes and insurance payments for six months with an opportunity to extinguish them smoothly within a year.
Help to self-employed citizens
- Return a tax on income for 2019 in full.
- Provide the tax capital in the amount of one minimum wage rate that they registered tax payments, without raising own funds.
- Provide tax deduction of SP.
Help to families with children
- The needing families with children will be able to receive one-time about 33 thousand rubles on one child in June for half a year at once.
- Twice the minimum size of a child care allowance — up to 6 thousand 751 rub will increase. Such benefit will be received by unemployed people, including students.
- Since June 1 will one-time pay to families with children from three to 15 years 10 thousand rubles.
- Families with children will receive 5 thousand rubles within three months. On each minor child payment in 3 thousand rubles is set.
- Family which have no right to maternity capital will receive monthly payment in 5 thousand rubles for April, May and June.
- For support of the people who lost work separate measures will be prepared.
Help to doctors and caseworkers
- From April 15 to July 15 special federal surcharge for physicians and caseworkers is established.
- — Doctors will receive 40 thousand rubles for two-week change, during the work with koronavirusny patients — 60 thousand rubles.
- — Caseworkers will receive 25 thousand rubles, during the work with koronavirusny patients — 35 thousand rubles.
Research of Kelly Services: 68% of workers noted decrease in level of income during the quarantine
On May 7, 2020 it became known that Experts of Kelly Services and Avito Work polled more than 66 thousand Russians about what happens to their work and income. Respondents from eight federal districts of the Russian Federation participated in poll, it is more than a third (38%) – residents of million-plus cities and the large regional centers: Moscow, St. Petersburg, Nizhny Novgorod, Samara, Novosibirsk, Yekaterinburg, Vladivostok, Rostov-on-Don, Kazan, Krasnodar.
As it was reported, citizens aged from 25 up to 40 years (59% of respondents) were the most active survey participants. Another 26% − young people aged from 18 up to 25 years, 16% − workers of advanced age from 40 to 65 years, less than 1% respondents of 66 years are also more senior. The most part of respondents carry themselves to specialists (59%). About a quarter (26%) – workers of initial level, the middle manager (11%), the upper manager (4%).
Nearly a half (45%) of respondents noted that from the beginning of epidemic of a coronavirus the volume of their work was reduced. Cannot unambiguously estimate change of workload of 25% of respondents. Another 22% of respondents work in the normal mode, and 7% noted that their workload increased. Increase in loading workers from spheres of Structure of public administration, Medicine, Pharmaceutics / noted Clinical trials / the Medical equipment, Retail and online trade, Consumer goods (production and sale), an IT / Telecom and also Education.
At the same time, respondents note that the content of their work completely (33%) or partially (31%) changed because of the existing conditions. For 36% of respondents the work content remained the same.
Actions of the companies in relation to workers are distributed depending on as far as employers were ready to transition to remote employment.
Employees of the organizations of a continual loop and the companies which passed to a remote format of work practically did not notice changes in the work (35%). The companies which business appeared under the threat because of spread of a coronavirus got under reductions of 22%, received a warning of the employer of possible reduction of staff of another 22% of respondents. The greatest number of the employees who underwent reductions is mentioned in Vladivostok (44%), Moscow (29%) and Krasnodar (29%). Another 20% of respondents announced reduction of number of working hours or canceling of a bonus part of a salary (20%). 16% of the respondents who do not have an opportunity to perform the work remotely continue to come to work.
The companies also try to lower loading due to departure of employees in a holiday − 32% of respondents noted that they took a forced leave at the request of the employer.
At the same time a part of the organizations to aim to support the workers it is information – 13% noted that the management increased the number of communications and tries to keep workers informed of last modifications, or practically – 3% of the companies organized transfer of employees to other employer.
Employees of the companies which increased turnovers in connection with the increased number of orders and services noted that the employer appointed awards in connection with the increased work volume (4%). For May, 2020 IT/telecommunications TransportLogistics,/, Consumer goods (production and sale), Retail and online trade, Medicine, Pharmaceutics / Clinical trials / the Medical equipment belong to the growing spheres.
Most of respondents (68%) noted decrease in level of income. The greatest falling of income level workers of spheres note Sports clubs / Fitness / Beauty shops, Tourism/ Hotels/ Restaurants, Arts / Entertainments / Mass media, Architecture / Design and also Professional services/ Consulting. About a third (29%) saved the previous level of income, and 2% said that their income increased from the moment of the beginning of epidemic. Preserving of income level workers from spheres of Structure of public administration marked out, Oil and gas industry and Power Chemical industry, Meditsin Metallurgy, Agricultural industry/ Agriculture, Pharmaceutics / Clinical trials / the Medical equipment.
| ||the Most part (67%) of respondents told noted decrease in income level. Especially it concerns workers whose industries suffered most of all. It should be seized quickly new specialties and to agree to any work for providing the families. There will be reductions among management of the companies. But, nevertheless, we are on the threshold of very interesting future. Koronakrizis forced us to reconsider our value systems, our relation to health, security, the and people around. For May, 2020 it, perhaps, is even more important than whether our income will remain or not.
There will be new standards, new professions connected with security of health. Remote work will become a new norm. Employers will have tasks of attraction, deduction and motivation of personnel on an udalenka.
| ||Labor market is very sensitive to external changes. It is no wonder that in this sphere approach of a crisis situation is most quicker felt and, as a result, most quicker there is a recovery. The question of job search or a side job is important for many people for May, 2020. We see it on activity of our applicants, and we try to offer them versions of the fast solution of a question, for example, using a bot – he daily in a chat notifies on suitable vacancies. Nobody definitely knows how long we will live in the self-isolation mode. However it is possible to say surely that on its end usual to us institutions will begin to open again. On services of beauty shops, dry-cleaners, workshops and cafe demand will return quickly enough, and it means that at once self-isolation cancellings applicants will be able to find work in these spheres.|
Artyom Kumpel, the managing director of Avito Work told
Information on a research:
- 66,373 respondents participated in poll.
- Term of carrying out research: On April 13 – on May 6, 2020.
- Floor: men – 39%, women – 61%. Age: 18-25 years − 25%, from 25 to 40 years – 60%, from 40 to 65 - 14%,
- 65 years are also more senior – less than 1%.
- Industry: Retail, networks – 19%, Transport and logistics – 17%, Construction/ Real Estate – 14%, Tourism / Hotels / Restaurants – 7%, Consumer goods (the ave. - in, sale) – 7%, Medicine – 4%, Mechanical engineering – 3%, IT / Telecommunications – 3%, Structures of a state administration – 3%, Sports clubs / Fitness / Beauty shops – 3%, Neftegaz / Power – 3%, Agricultural industry / Agriculture – 3%, Arts / Entertainments / Mass media – 2%, Professional services / Consulting – 2%, Electronics/ Electrical equipment – 2%, Metallurgy – 2%, Finance/ Investments / Insurance – 2%, Education, NPO – 1%, Architecture / Design – 1%, Chemical industry – 1%, Pharmaceutics / Clinical trials / Medicine – less than 1%.
- Specialization: Profile specialty of the industry – 24%, Sales – 22%, Transport / Logistics / Delivery – 18%, Administrative personnel – 9%, Security – 5%, Production management – 3%, Accounting – 3%, Engineering – 2%, Law – 2%, IT support – 2%, Marketing Advertisement/ / PR – 2%, Management personnel / Trainings – 2%, Finance – 1%, Business development – 1%, Purchases – 1%, Quality management – 1%, Analytics/ Statistics – less than 1%
- Level of a position of respondents: the specialist (59%), the middle manager (11%), the upper manager (4%), initial level / without experience (26%).
- Geography: 38% – residents of million-plus cities and the large regional centers: Moscow, St. Petersburg, Nizhny Novgorod, Samara, Novosibirsk, Yekaterinburg, Vladivostok, Rostov-on-Don, Kazan, Krasnodar. 62% − inhabitants of regions: (28%), (17%), (14%), Northwestern Federal District (11%), (9%), North Caucasian Federal District (8%), Ural Federal District (8%), Crimean FO (3%), Far Eastern Federal District (2%).
As COVID-19 accelerates oil digitalization in Russia
On May 6, 2020 it became known of different projects of digitalization in the Russian oil industry. The companies began to implement quicker information technologies because of a pandemic of a coronavirus of COVID-19 which bears for itself serious consequences for economy. Read more here.
Business, the victim of COVID-19, will be able to submit the application for a state subsidy through circuit.ex-sloe
On April 30, 2020 the SKB Kontur company announced a possibility of application for a state subsidy through the Circuit. Ex-sloe. To small and medium business, the victim of COVID-19, the state will provide subsidies for salary payment to employees in April and May. It is possible to send the request for receiving financial aid through the Circuit system. An ex-sloe since May 1. Read more here.
The IT companies in Russia estimated the scale of influence of a coronavirus on the software market and supports proposed measures
The IT companies in Russia estimated the scale of influence of a pandemic of a coronavirus of COVID-19 on the software market and supports which were directed to the Ministry of Telecom and Mass Communications proposed measures. On April 13, 2020 reported about it in Russofta according to the results of poll of 42 members of this non-profit partnership. Read more here.
The Central Bank of the Russian Federation told about methods of theft of money from cards under the pretext of a coronavirus
On March 7, 2020 the Central Bank of the Russian Federation told about new methods of fraud which are used for theft of money from bank cards under the pretext of COVID-19 coronavirus. Schemes are constructed on the principles of social engineering — psychological methods of a vymanivaniye at citizens of data necessary for swindlers. Read more here.
Chubais found positive effect from a coronavirus for Russia
The head of Rusnano management company Anatoly Chubais at the end of March, 2020 called effect, positive for Russia, of spread of a new coronavirus. According to him, the pandemic will promote growth of digital economy.
| ||Occurs, you know, such "coercion to digit". Life pushed us to it a tough hand, but we anyway will experience all these passions with a coronavirus. And I think that upgrades technology and upgrade psychological partly will remain. Therefore I think that the amount of digital economy in general will grow up a little, and it is one of the few positive consequences of all story with a coronavirus — he said on air of RBC TV channel.|| |
Chubais noted that 75% of staff of Rusnano by the end of March, 2020 work in the remote mode. According to him, short-term effect was the fact that, first, performance fell.
| ||Output number two — it is so possible to work, occurs catastrophic nothing … Now I do not see any failures — he told. At the same time, the board of the company works at office, Chubais reported.|| |
According to him, against the background of mass transfer of employees to work from the house there will be program problems, to decrease quality of Wi-fi and Internet access.
| ||But inevitably we will live in it, and at least, month, I think, as it is more, and we will begin to master these technologies. What will occur after end of all these horrors koronavirusny? We will obviously not return to an initial status — he said.|| |
Earlier Anatoly Chubais estimated losses of economy of Russia from a coronavirus at trillions of rubles and suggested to distribute to some citizens money from stabilization fund of Russia. According to the top manager of Rusnano, it will help to save the most vulnerable category of Russians from poverty.
In the world
Gartner: IT market will sink for 8% because of COVID-19
On May 13, 2020 the Gartner analytical company submitted the updated forecast after world to IT market. If in January experts expected growth of expenses on information technologies by 3.4% at the end of 2020 (to $3.9 trillion), then after review sounded a negative indicator —-8% (to $3.4 trillion). Read more here.
Expenses on corporate a blockchain projects will grow by 60% despite a coronavirus
At the beginning of May, 2020 the Research Firm IDC published the forecast according to which expenses on corporate a blockchain projects in Europe in 2020 will grow by 60% despite COVID-19 coronavirus pandemic. Read more here.
IDC estimated influence of a coronavirus on world IT market
At the beginning of May, 2020 the IDC analytical company published results of the research devoted to influence of a coronavirus of COVID-19 on a situation in IT market. According to forecasts of experts, world IT expenses in 2020 will be reduced by 5.1% to $2.25 trillion. In January analysts expected growth by the same 5.1%. Read more here.
The UN urges to form immediately new economy because of a coronavirus
| ||Return to "old normality" will not be. The mass redistributions of financial resources which are carried out by the governments these weeks and months, … are a future gleam … Crisis of COVID-19 plunges world economy into recession with historical unemployment rates and poverty, the study says.|| |
Experts consider that the countries should combine efforts for support of social, economic and ecological wellbeing in the future.
| ||All of us are interconnected and we need boundless solidarity — emphasized in the UN.|| |
The international organization considers that because of COVID-19 without work there can be 195 million people, and unemployment rate and poverty can become "historical". The greatest losses as a result of crisis will be suffered by small and medium business, agriculture, self-employed citizens and labor migrants.
According to the UN Secretary General Antoniu Guterrish, "one of key components of work of the UN is preserving of lives, protection of people, reconstruction of the best conditions for society after under the auspices of WHO the answer is given to threat of health".
The UN listed three main actions which, according to the organization, need to be undertaken in fight against a koronavirusny pandemic:
- work of Fund of solidarity (Solidarity Response Fund, is created at the initiative of WHO for financing of fight against a coronavirus) in fight against an infection under control of UN Fund and Swiss charitable foundation for elimination of immediate threat to human health;
- implementation of the plan of the UN for the global humanitarian answer to a pandemic;
- accomplishment of the plan of the UN for social and economic recovery.
Why the Indian IT companies will suffer stronger than others
In April, 2020 it became known that the Indian IT companies can suffer from COVID-19 pandemic more, than the hi-tech companies in other countries. As the big percent of the projects which are not connected with continued operation of business — i.e. that is the share of them, costs for which can be postponed. Read more here.
The card of a financial support of citizens and business in the countries of the world
The Canadian authorities compensate to the companies 75% of salaries that they did not dismiss people
On April 11, 2020 in Canada adopted the bill of subsidizing of the salary in attempt to stabilize national economy, COVID-19 which was affected by a coronavirus which the prime minister Justin Trudeau called the biggest problem of the generation. Read more here.
Head of Veon: The coronavirus accelerated digitalization of economy by 10 times
The codirector of Veon Kaan Terzioglu considers that the pandemic of a coronavirus of COVID-19 promoted acceleration of digitalization of world economy by 10 times. He expressed such opinion in an interview to Vedomosti which was published on April 13, 2020.
| ||Perhaps, the coronavirus is some kind of call that the world integrated around one platform for free trade and acceleration of globalization again. Working in a telecom, I feel to some extent exclusive, the coronavirus proved that the Internet and networks is the main means of livelihood of communities, the countries, people and businesses — Terzioglu noted.|| |
According to him, crises come from time to time, but the situation with a coronavirus will change the future of the world fundamentally. Digital inequality which divided people on those who are connected, and those who are not connected will disappear very quickly, the head of telecommunication corporation is sure.
Speaking about influence of COVID-19 on global economy, Terziogla expressed opinion that in the next 12 months unemployment rate will especially strongly grow, and economies of some countries will appear in decline. However, according to the top manager of Veon, these negative factors should make mankind stronger and more smart, it will take the greatest possible benefit from crisis.
| ||I think, it will really positively affect all sources of the creative ideas, perhaps, will become the catalyst of the world and free trade on all globe — he emphasized.|| |
Terzioglu's koan also noted that the situation with a coronavirus confirmed a key role of telecom industry in existence of business, the countries and ordinary people once again. He called workers of a telecom and health care "two heroes of this stage of history of mankind" and explained that specialists of Veon try to increase in every way capacity of networks and also to correct the problems arising at the same time.
As the coronavirus improved air quality in the cities
Google will distribute $1000 to families in San Francisco which suffered from COVID-19
On April 12, 2020 Google announced payment for $1000 to families in San Francisco most of which strongly suffered from COVID-19 coronavirus pandemic. As a financial support the company selects $1 million through the Google.org fund, the CEO Sundar Pichai as much will provide. Is in total going to collect $5 million from the staff of Google and other people through GiveDirectly charitable organization. Read more here.
The coronavirus will lead to the explosive growth of expenses on AI
Spread of a coronavirus of COVID-19 will lead to the explosive growth of expenses on artificial intelligence in the world, analysts of IDC who read the forecast on April 9, 2020 consider. Read more here.
The economy of France endures the strongest recession since World War II
At the beginning of April, 2020 the Central bank of France published the next quarterly economic report, having emphasized that GDP in the first quarter reflected the deepest quarter recession for all history of observations. It happened because of COVID-19 coronavirus pandemic. Read more here.
As the coronavirus changes digital transformation in the world
By the beginning of April, 2020 the pandemic of a coronavirus of COVID-19 is in a heat, having struck at all markets and the countries. Effects of spread of an infection will affect also how the companies and public institutions carry out digital transformation. Analysts to whom the TechRadar edition refers came to such conclusion. Read more here.
Singapore will issue $417 to each inhabitant for support in pandemic conditions
Japan will pay $2700 to all citizens at whom income because of a coronavirus sharply fell
On April 7, 2020 the prime minister of Japan Shinzo Abe declared a local emergency rule and selection about 108 trillion yens ($990 billion) for support of business and the population in the conditions of COVID-19 coronavirus pandemic. This amount equals about 20% of GDP of Japan. Read more here.
Visa donates $210 million for the help to small business and charitable organizations
At the beginning of April, 2020 the Visa Foundation fund announced about start of programs with a total amount of $210 million for support small firms and also immediate assistance in COVID-19 coronavirus propagation conditions . Read more here.
The president of Philippines ordered to shoot at violators of a quarantine
At the beginning of April, 2020 the president of Philippines Rodrigo Duterte ordered to shoot at violators of the quarantine entered because of COVID-19 coronavirus pandemic.
| ||My orders of police, to military and local officials: if disorders begin if they beat off and if there is a threat to your lives, you can shoot them — said to Duterta in a televised address to the nation.|| |
The Philippine leader also declared inadmissibility of ill treatment of medics which will be considered by law enforcement authorities of the country as a non-capital offense.
The statement to Duterta is connected with detentions on Philippines for violation of restrictive measures. From the middle of March, 2020 of the power entered the strengthened quarantine because of a coronavirus on the island of Luzon. On April 1 it became known that in the city of Quezon City the police dispersed a mass meeting and arrested 20 people for abuse of regulations of a quarantine.
The police of Philippines hurried to play down an impression of the statement of the president. The chief of national police Archie Gamboa assured that his subordinates will not open fire at protesters.
| ||The president, most likely, excessively insisted on application of the law during this crisis period — reported Gamboa.|| |
The Amnesty International human rights organization expressed concerns because of the statement of the Philippine leader. The organization considers that it is impossible to permit police to kill people during emergency which the coronavirus pandemic is.
| ||Very much the fact that the president to Duterta extended policy disturbs "shoot on defeat" for law enforcement agencies — the head of the Philippine department of the organization Butch Olano said. — Such killing uncontrollable force never should be used in emergency, such as COVID-19 pandemic.|| |
As of April 2, 2020, on Philippines revealed more than 2.6 thousand new infected with a coronavirus. More than 100 people died.
Expenses on IT will be cut down for 4.6% in the world because of a coronavirus
Cost reduction on IT in 2020 in the world is predicted at the level of 4.6%. According to analysts, positive expectations are caused by transition of a large number of employees to remote work that should stimulate development of the corresponding IT infrastructure. Nevertheless, many organizations are convinced that the pandemic will lead to decrease in demand and violation of supply chains. Learn more here.
Denmark sets an example: compensate to the companies up to 90% of salaries and lease
At the beginning of April, 2020 it became known that the government of Denmark compensates the rent to the affected companies and also from 75 to 90% of the salary of workers within the next three months provided that the companies will not dismiss in large quantities people. Read more here.
Inconceivable rise of unemployment in the USA because of a coronavirus
The number of jobless claims in the USA against the background of epidemic of a coronavirus of COVID-19 grew at the end of March, 2020 to record 3.28 million in a week.
The balance of U.S. Fed for the first time in the history exceeded $5 trillion
At the end of March, 2020 against the background of COVID-19 coronavirus epidemic the balance of FRS for the first time in the history exceeded $5 trillion.
China called a coronavirus pandemic the beginning of dedollarization of the world
At the end of March, 2020 the Chinese media called a coronavirus pandemic the beginning of dedollarization of the world. The Chinese edition The 21st Century Business Herald published article in which the journalist outlined economic problems of the USA during a pandemic and also explained why crisis of COVID-19 can take away the status of world reserve currency from dollar, i.e. lead to dedollarization of the world.
For many years China purchased more and more significant role in trade relations, however the dollar only strengthened the positions as the dominating reserve currency. Despite an initiative "One belt and one way" which had to advance new model of the international cooperation and development the share of China in the trade sector expressed in yuans made only 14%. After crisis of 2008 the volume of non-bank debts in US dollars almost doubled while the share of other leading currencies stagnated or was reduced.
In the Chinese article different forecasts of economic downturn in the USA as a result of the crisis caused by a coronavirus are considered the dependence of economy of the USA on consumption and also ghost effects of decrease in demand for other countries is selected. At the same time the author of article claims that neither fiscal, nor monetary policy of the USA will not be effective during koronavirusny crisis. He considers that aggressive monetary policy and stimulation of demand will lead to inflation because of violation of a supply chain, production reduction and a business volume.
The author claims that the stock market of the USA became just a bubble because of ten years' stimulation, and finds possible crisis in bond market. He says that the USA could not play the integrating role during crisis and "caused damage to other countries to own advantage".
France sends troops in the cities for control of movement of citizens because of coronavirus epidemic
On March 16, 2020 information is brought to the management of hospitals of France that in the country will impose state of emergency. It will be followed by input of army parts and prohibition on free movement for 45 days.
As cybercriminals earn millions from a coronavirus
The ECB increases purchases of assets because of epidemic by 120 billion euros
On March 12, 2020 the ECB expanded the existing program of purchase of assets in connection with COVID-19 epidemic. Before the bank bought assets on average of 20 billion euros a month; now the decision until the end of the year in addition was made to buy assets of 120 billion euros, and a considerable part in a packet of purchases will make corporate bonds. Experts of the ECB claim that it will allow to support the markets of the countries in which risks on government bonds – for example grow the Italian market. Read more here.
Millions of children pass school because of a coronavirus
Collapse of the stock markets
So far the number of the diseased quickly grows therefore economic forecasts are regularly reviewed, generally towards lowering of expected results. So, on February 24 became in the worst afternoon for the world stock markets for the last three years. Sharp falling happened at the leading world exchanges: in particular, Stoxx Europe 600 decreased by 3.6%, the Nasdaq index dropped by 3.2%. The crisis phenomena are fully characteristic also of Asian security markets. Decrease in indexes was provoked by rapid spread of a virus outside China — the number infected grew in Iran, South Korea and Italy.
In the Russian Federation on February 24 there was in the day off therefore biddings took place on February 25 — the index of the Moscow Exchange calculated in rubles for one session lost 3.33%. Negative dynamics was shown by many blue chips among which there are securities of Gazprom, Lukoil, Norilsk Nickel, Rosneft and other companies of the first echelon. Growth against the background of panic of investors is shown by only protective assets — gold and the American state bonds. Stocks of the domestic gold mining companies have positive dynamics.
It is possible to select a number of the industries which will suffer from epidemic stronger than the others. Among them there are a tourism, retail, energy carriers, the technology sector. The profit of participants of the listed markets in the first quarter can decrease 2020 by 5–10%. Fall of stocks of some companies is capable to reach 20%. Naturally, stocks of these corporations will be under pressure in the nearest future, falling can be estimated at 15–20%.
Epidemic already had very serious impact on the market of automotive industry. According to analysts of Moody's Investors Service, at the end of 2020 car market can decrease by 2.5%. This dynamics is connected also with narrowing of demand which is observed because of epidemic, and with failures in supply chains. The greatest falling concerned the Chinese automobile market: for the first two weeks of February of sale of passenger cars in the People's Republic of China, by estimates of China Passenger Car Association, decreased by 92%.
The forecast for the general macroeconomic indicators is regularly reviewed towards decrease. The role of China in world economy is very big therefore negative trends were outlined in the middle of January when growth of incidence was observed mainly in the People's Republic of China. Experts of Bank of America are afraid that 2020 will come to the end with the worst indicators according to the results of the last 10 years. In my opinion, growth rates of world economy as a result of epidemic will decrease by 0.5-1% of percent points.
What sectors of the market epidemic will strike first of all
The outbreak of a coronavirus in China – not only a source of economic risks which can cause changes (or "reshuffle") production chains worldwide, but also the reason of growth of social tension in the country. And citizens of China, and at the foreign governments even more often have suspicions that epidemic could be avoided if the reply of the Chinese authorities to primary flash was more operational. Experts of the international Coface group specializing in trade insurance and risk management analyzed the developed situation in the world market in general and the market of the People's Republic of China in particular and made a number of forecasts of rather possible scenarios of further succession of events in the short-term and long term.
Epidemic can give up as a bad job ambitious economic targets of the People's Republic of China for 2020
Whether epidemic can become a critical event which will cut the grass from under feet the governments of the People's Republic of China and will force it to review the domestic policy? Economists of Coface consider that such scenario is improbable, in particular if actions of the authorities of Celestial Empire in the following are several months effective and will allow to constrain further spread of a virus. In spite of the fact that the risk of radical political or economic scenarios is estimated as low at present, current situation anyway will negatively affect also the Chinese market, and world. First of all the markets of the countries of Asia which are closely connected with economy of the People's Republic of China will suffer. Possibly, as a result of the chaos seeded by epidemic, the Central Banks of a number of the Asian countries this year should optimize the monetary policy in one way or another.
It is at the moment obvious that the outbreak of a coronavirus will render much more considerable influence on the world market, than in 2003 epidemic of atypical pneumonia rendered. Actually, China was isolated from the international trade scene that causes significant interruptions in transnational chains of creation of added value, and today China is integrated into the world market much more densely, than in the 2003rd therefore epidemic of a coronavirus and the related stops of the Chinese plants anyway will affect all sectors of the world market. The share of Celestial Empire in world GDP makes 17% today (4% in the 2003rd), and volumes of private consumption grew from 13% of the volume of consumption of the American households in the 2003rd to nearly 40% in the 2018th.
By estimates of Academy of social sciences of the People's Republic of China, the epidemic outbreak of a coronavirus can cost to China about 60 billion dollars that means that growth rates of GDP of Celestial Empire in 1 quarter of the current year can fall up to 4.5% and even below in annual terms. And this scenario is considered optimistic as in it only the interruptions which resulted from epidemic in the first quarter year whereas it is at the moment difficult to foretell how the situation will develop next quarters are taken into account. Anyway, already now it is clear that that growth rates of national GDP reached target 6% according to the results of the current year, the authorities of China should take a number of system measures.
Risks in the short term (3-6 months)
The first all sectors anyway connected with passenger traffic will be damaged. Some Chinese companies working in the transport sector, the service industry and retail receive an essential share of the annual profit during celebration of the Chinese New year. Considering that this year during a holiday season movement over the country was strongly limited in connection with quarantine measures, many enterprises, especially small, can fall into a difficult situation. It is also necessary to consider that the service industry role strongly increased in the Chinese economy since 2003. About 40% of national GDP are the share of private consumption. At the same time it is possible to expect that in the nearest future consumption of households will remain at record-breaking low level established even during trade war of China and the USA. The volume of "free" money at the disposal of households grows quicker, than volumes of private consumption that means that the consumers concerned by not clear perspectives on the future switched to savings behavior model.
Interruptions in the international supply chains and creations of added value will become the following effect of epidemic flash. The stop of work of the Chinese factories which in the long term can drag on not for one month, will cause interruptions in supply chains and creations of added value worldwide. Cambodia, Vietnam, South Korea, Malaysia, Indonesia, Philippines and Australia are especially dependent on deliveries of intermediate products from the People's Republic of China (so, and are vulnerable in the conditions of suspension of such deliveries). And Japan and South Korea are in this situation vulnerable doubly – not only as importers, but also as exporters: the enterprises of these two countries sell intermediate products and raw materials to the plants of Celestial Empire, many of which were closed for an indefinite term. It is expected that is the strongest as a result of epidemic the world automotive industry, the sector of ICT and production of electronics will suffer.
The Chinese consumers already became nearly main target audience for a number of the industries of global market. Considering that this audience as it was already noted above, switched to tough savings behavior model, business in a number of the industries can miss essential volumes of profit. So, for example, according to the forecast of McKinsey published in the 2019th this year on the Chinese consumers 36% of all sales volume in a segment of luxury goods is necessary. In other words, today in the world there is a huge number of the companies depending both on the Chinese demand, and on the Chinese production capacities – Apple strongly depends on the last, for example. Considering this fact, volume of warehouse stocks of the Chinese enterprises – one of key factors which can give to business the chance to overcome the period of idle time of production capacities with the minimum losses. Certainly, no warehouse stocks are infinite, and a lot of things in this situation depend on how the restrictions of transportation of loads between China and other countries imposed in connection with epidemic will long remain in force. By the current estimates, most the foreign enterprises working in a segment of production and sale of electronics, there will be enough warehouse stocks approximately until the end of March or the beginning of April.
Risks in the medium and long term
Gain of a macroeconomic imbalance: high inflation will not allow China to mitigate monetary policy (growth of consumer price index in January, 2020 was 5.4% – in comparison from only 1.7% for the same period of last year). At the same time the authorities of China set very ambitious goal – to achieve doubling of growth rates of GDP in comparison with 2010 the current year, and for this purpose Beijing anyway should take a number of system measures. In spite of the fact that the People's Bank of China will hardly go for increase in a key interest rate and will work more "precisely", it is possible to expect depreciation of yuan. If yuan exchange rate to dollar falls to a mark of 7.20 yuans or more for dollar, the essential capital outflow from the country can begin. To achieve growth, the companies should increase a share of borrowed funds in working capital, at the same time for some companies which work with rather high debt load already now, service of additional loans can be problematic. As a result it is possible to expect increase in number of payment defaults practically in all sectors of the market, but first of all in the transport sector, retail, automotive industry and the sector of ICT.
Political risks: doctor Li Venlyan is a doctor who publicly announced the first a new coronavirus and tried to sound the alarm and whom the authorities not just ignored, but also accused of "distribution of groundless rumors", not so long ago died from that coronavirus. After his death over the country the wave of national discontent swept. Considering deterioration in an economic situation, there is a risk that the discontent which arose in connection with actions of the authorities in this situation will develop into the general dissatisfaction of the general public with a political situation in the country and the existing mode. In addition to it the country is expected by the surge in rise in unemployment connected with a stop of factories in quarantine areas. At the moment a lot of things depend on how the authorities of China will manage development of the situation in the following several months and whether will be able to provide 60 million people begetting in the localities which are cut off from the outside world in connection with quarantine measures, medical and any other necessary assistance.
Also It should be noted that current situation can show to entrepreneurs and the authorities worldwide, how strongly they directly or indirectly depend on China and the international supply chains "passing" through it and creation of added value. It, in turn, can push business and the authorities to review the order existing in international market and to redistribute transnational economic chains to reduce the dependence on the Chinese import or demand that will hardly do good to the Chinese economy.
The telecom operator, largest in Japan, urges to work 200 thousand employees from the house
In the middle of February, 2020 the Nippon Telegraph & Telephone telecom operator, largest in Japan, urged to work 200 thousand employees from the house to avoid trips to work per hour peak and to be protected from a coronavirus. Read more here.
IDC: As the coronavirus will help the ICT industry
On February 16, 2020 analysts of IDC published a research in which reported that the outbreak of a coronavirus of COVID-19 in China not only undermines world economy, but also is capable to affect favorably development of the ICT industry and opens new business opportunities for developers of information and communication technologies. Read more here.
The Mobile World Congress exhibition in Barcelona was cancelled because of a coronavirus
The international exhibition of the mobile industry Mobile World Congress (MWC) which had to take place in Barcelona from February 24 to February 27 is cancelled because of the mass failure of the companies provoked by a coronavirus to take part in it, País writes on February 12.
According to the newspaper, the guide of the organizer of the event, GSMA association which represents the interests of mobile operators made such decision on Wednesday according to the results of a meeting.
More than 20 companies, including Ericsson, Sony, LG, Umidigi, Nvidia, NTT Docomo, Gigaset, Amazon, McAfee, Vivo, ARCEP, Deutsche Telekom, STMicroelectronics, Nokia, Rakuten, AT&T, Orange and Vodafone refused participation in MWC. The Spanish authorities called the companies for tranquility and asked not to give in to panic.
As epidemic of a coronavirus will be reflected in economy of the People's Republic of China and the neighboring countries of Asia: analysis of experts of Coface
On January 23 the authorities of China recognized a coronavirus which outbreak began in Wuhan, a class B infection – atypical pneumonia was carried to the same class in due time. Beijing involved a number of the measures directed to suppression of spread of a disease including completely isolated 16 large cities in which about 50 million people live. Also restrictions for the international passenger traffic were introduced – in particular, the USA, Hong Kong and Taiwan cut air traffic with the People's Republic of China.
Sharp decrease in passenger traffic – and during a season of celebration of the Chinese New year, the most popular two-week season for travel among citizens of China became an effect of epidemic flash: on average for one such season more than 3 billion passenger traffic are made. Measures for fight against spread of a disease will lead to fall of income of business in a number of sectors, experts of the international Coface group specializing in trade insurance and risk management consider. First of all negative effects will be shown in the transport sector, retail and the service industry. So far early to say about how epidemic will affect growth rates of GDP of Celestial Empire, however all signs indicate that it will slow down.
While the new coronavirus even has no own name, it is known to specialists under code name 2019-nCoV. It is considered that the first cases of infection occurred in the market in Wuhan – possibly, as a result of consumption of meat of the infected animal. Local authorities in the first days after flash tried not to allow broad disclosure of information on infections, however Beijing interfered personally, closed the market on a quarantine, recognized a new virus an infection of a class B and entered a number of measures for prevention of spread of a disease, including prohibition on movement. For treatment of the diseased the separate hospital as internal cross-contamination in public health organizations became one of basic reasons of spread of a disease was constructed. Also Beijing discharged of a position of the mayor of Wuhan and in a tough form warned local authorities in all other cities and provinces about inadmissibility of concealment of new disease outbreaks.
Such quick and resolute reaction of the authorities of the People's Republic of China, however, could not dispel a concern of players of international financial market. The problem is also that the outbreak of disease matched with the Chinese New year and long two-week vacation during which nearly 3 billion passenger traffic are made. For many enterprises this period – the most important in a year because at this particular time they receive an overwhelming part of the annual revenue. It is possible to expect that the first because of epidemic carriers, retailers and the service industry will suffer. More important, however, how events will develop further: if the situation is aggravated, consumers across all China can seriously begin to limit themselves in expenditure and to save all "free" money till the best times.
For the industry of China epidemic will also not pass without effects. China participates in a set of the international production chains, and some of them are already broken. The Province of Hubei from where the coronavirus began to extend, is in the central part of China and therefore is an important transport and logistic node for the whole country. Besides, in the province production capacities of the Chinese automobile concerns and also metallurgical, petrochemical, textile, agrofood and other enterprises are located. Certainly, during a quarantine business can sell goods from the warehouse stocks located in other provinces, however if the period of a quarantine drags on, idle time of the Chinese plants can be reflected not only in economy of the Celestial Empire, but also in international market in general.
Epidemic of atypical pneumonia had no significant effect on the Chinese economy in due time. Sales of retailers and car makers decreased a little, but quickly returned to former indicators. The stock market of the People's Republic of China also showed not the best dynamics within 2-3 months after the beginning of epidemic, however quickly returned to a track after the initial stage of epidemic flash. Influence of epidemic of a coronavirus on the stock markets can be estimated not earlier than March 16 when the authorities of the People's Republic of China publish indicators of business activity for January-February. At this stage it is difficult to predict what impact the coronavirus will have on growth rates of the Chinese and world GDP, however if to consider the general deceleration of dynamics of expansion of the market of the People's Republic of China, it is possible to assume that the coronavirus at least will become one of factors of deterioration in key indicators of market development of Celestial Empire this year.
1. Decrease in growth rates of GDP: at this stage to give the specific forecast too early, however in general as it was noted above, the coronavirus can become one of negative factors because of which the Chinese market at the end of 2020 will slow down growth rates.
2. Growth of number of payment defaults and bankruptcies: in sectors which more than the others will suffer from the quarantine measures connected with coronavirus epidemic already in the nearest future the number of bankruptcies and payment defaults can increase. First of all it is about the transport sector, retail and the service industry. However if the situation worsens, also the heavy industry of the Province of Hubei, in particular automotive industry, the textile industry and the sector of information and communication technologies will begin to suffer.
3. "Cooling" of the next Asian markets: on average the Chinese tourists spend abroad 130 billion dollars a year. 20% of this amount – in Hong Kong, 15% – in Macau, 6% – in Thailand and 5% – in Japan. The restriction of movements connected with a quarantine can lead to the fact that the countries dependent on the tourism industry can miss usual volumes of profit.
Closing of all of Apple Store in China
Google closed all the offices in China because of a coronavirus
At the end of January, 2020 the Google company closed all the offices in China because of the outbreak of a coronavirus. These measures covered all offices in continental China and also offices of Internet giant in Hong Kong and Taiwan. Read more here.
The Chinese companies in large quantities pass to remote work
At the end of January, 2020 the companies in China were advised employees to work from the house in attempt to slow down spread of a fatal coronavirus. The enterprises also offer workers longer holiday and advise the workers returning from the most affected areas not at once to come to work.
The Chinese government also prolonged New Year's holidays for three days. Bytedance company which possesses the platform for exchange of video TikTok and the Chinese game giant Tencent was ordered to employees to work from the house. The network of Hotpot Haidilao restaurants closed the branches across all China for a week. And the government of the city of Suzhou stated that the local enterprises will be closed at least till February 8.
Several companies, including the Swiss banking group UBS and builder Country Garden, ordered to the employees returning from the city of Wuhan or the Province of Hubei to spend the incubatory period at home. In Hong Kong the stock exchange cancelled a ceremony of Lunar New year because of concerns concerning an infection.
Global markets also suffered: investors are afraid that quarantine measures will have a negative impact on world economy. In Tokyo the stock index of Nikkei 225 dropped by 2% after the government of China prolonged holidays. Stock exchanges in Shanghai and Shenzhen which had to open on January 31 were closed till February 2. In the markets the prices of everything, from oil to copper as traders stake on decrease in the global demand for time of isolation of the Chinese cities fell. The price of oil dropped by 2.2%, despite attempts of the Ministry of Energy of Saudi Arabia to weaken market fluctuations. Copper prices in London dropped by 5.5% that became the sharpest reduction in cost of copper for the last five years.
Huawei cancelled a conference for developers because of a coronavirus
At the end of January, 2020 Huawei postponed a large developers conference in connection with the outbreak of a coronavirus in Wuhan. The HDC.Cloud 2020 conference was going to be held in Shenzhen from February 11 to February 12, but for security of participants the action was postponed to March 27-28. Read more here.
- ↑ the Putin's Address to Russians in connection with a coronavirus. Who will be helped
- ↑ Putin proposed new measures of support self-employed and SP
- ↑ Chubais called coronavirus pluses for business
- ↑ A UN framework for the immediate socio-economic response to COVID-19
- ↑ 
- ↑ Coronavirus: Philippine president Rodrigo Duterte says he will bury people who break quarantine laws
- ↑ Covid-19 will trigger de-dollarization claims Chinese press
- ↑ Influence of a coronavirus on the stock market
- ↑ Coronavirus: Companies tell workers 'stay at home'