The economy is threatened by an even stronger downturn – if credit rating officers continue to downgrade companies and states like Italy. Finance professor Loriana Pelizzon reveals the way out of this.
The saga of the Boeing 737 Max continues and the continuous postponements of the restart of operations and tests that did not pass the controls of the relevant authorities, added to the company the outbreak of the coronavirus. In this framework, are the Boeing 737 Max flying again?
After being grounded since March 2019, now the aviation giant estimates that the plane could return to the skies in August this year, a date that may seem premature, taking into account several factors.
On the one hand, the closings of borders with the consequent fall in international flights. On the other, workers from both Boeing and regulatory agencies who are unable to work normally due to quarantine and isolation.
To get a more accurate view, airlines tend to give a slightly more accurate picture than Boeing’s. For example, the American airline Southwest, the largest 737 Max operator in the world, announced that it will not use these aircraft again until at least October 30.
The Federal Aviation Administration (FAA) has repeatedly said that it does not have a timetable to approve the plane’s return to heaven.
Add to that that Boeing itself said in early April that it needed to make two new software updates on its flight control computers.
Boeing canceled the purchase of Embraer
In a series of complex events, with the aviation industry at its worst in history as a result of the uncontrolled outbreak of COVID-19 by the Chinese government, Boeing also announced that it is canceling the purchase of the Embraer company.
After more than two years of negotiations, the company canceled its proposal to acquire the Brazilian firm for $ 4.2 billion.
Embraer responded with a strong statement speaking of Boeing’s bad faith: “Embraer firmly believes that Boeing has unfairly terminated the agreement, that it has fabricated false claims as a pretext to try to avoid its commitments to close the transaction and pay Embraer the price of purchase of $ 4.2 billion. We believe that Boeing has engaged in a systematic pattern of delay and repeated breaches of the agreement due to its unwillingness to complete the transaction in light of its own financial situation and the 737 MAX and other business and reputation issues. ”
Google convinced people to have made an app that allowed them to talk to their plants and, for example, to ask plants for water. Google had supposedly developed the service, Google Tulip, in collaboration with the university in Wageningen.
The Netherlands can win even more prizes at the Webby Awards, the ‘Internet Oscars’. The nominees in the dozens of categories were announced on Tuesday. For example, the website of the project The Ocean Cleanup, which aims to remove plastic waste from the oceans, has been nominated in the category ‘Green’. The site was created by the Amsterdam creative agency GRRR.
The Amsterdam company WeTransfer can also win a Webby. His service Paste, with which colleagues can set up a presentation together, has been nominated for the prize for winning the best web service. Founded in 2009, WeTransfer is primarily known as a free service to exchange large files online.
The Freedom Stories that hung in Amsterdam on May 4 last year have also been nominated. Billboards throughout the city had codes. Whoever scanned it with a smartphone heard what had happened there during the Second World War. The ‘Memorials of Amsterdam’ project, as the Webby Awards call it, has been nominated in the best music category in a podcast.
The Amsterdam advertising agency 72andSunny has been nominated in the Webby category ‘Experimental and strange’, with an advertisement for shower and shaving cream from Lynx, a British brand of Unilever that is sold in the Netherlands under the name Ax. One of the five contenders for the prize for best architecture site in the world is the website of the Rotterdam architecture firm Powerhouse Company.
KLM has a chance to win two Webby’s with the iFly KLM 2020 project, which shows twenty striking souvenirs from all over the world. The site has been nominated in the tourism and website design categories.
The awards are said to be presented in New York on May 11, but that show has been canceled due to the corona virus. Instead, there will be an online show on May 19.
Less than two years after its creation, Taurus raises an eight-digit amount (confidential) from existing and new investors, including Arab Bank Switzerland, the listed real estate group Investis Group, Lombard Odier and the Tezos Foundation. The Geneva-based company, which supplies equipment for digital finance, intends to accelerate its development thanks to this capital.
“From around twenty employees, the majority of whom are engineers, we plan to double our workforce within two years and seize growth opportunities in terms of infrastructure in Europe, Asia or the Middle East”, explains Lamine Brahimi, former head of digitalization at Lombard Odier and one of the four co-founders of Taurus (who remain majority shareholders after the fundraising).
For the moment, the company has been mainly active in the field of digital asset infrastructure (transmission, storage, connectivity), and claims to have among its customers the whole spectrum of banks and technology companies: “The market needed to equip themselves, a small number of precursor establishments launched in 2018-early 2019 and, now, we see a much wider interest, including from systemic and universal banks in Switzerland and in the rest of world ”, specifies Sébastien Dessimoz, another of the co-founders.
Digital assets are tokens to which stocks and bonds can be attached. By issuing such tokens – also called “tokens” – a company will be able to finance itself more fluidly and less costly than if it had to go through the stock market.
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“Historically, only the largest companies have access to stock market listing, for cost reasons in particular,” continues Sébastien Dessimoz. In Switzerland, this is the case for 200 to 230 companies, while the country has more than half a million companies. To raise funds and allow the exchange of their securities, the others still have to go through paper and manual procedures. Technologies like blockchain and digital assets are making it possible to digitize these processes. ” Ultimately, buying or exchanging “tokenized” stocks or bonds of unlisted companies could become as simple as buying a book on an e-commerce platform.
Need to be able to buy and sell easily
To get there, specialized exchanges on digital assets will have to exist. This is not yet the case, and investors may fear acquiring tokens that they could not resell unless they place the equivalent of a classified ad on a specialized site.
In video: Virtual currencies explained simply
Several token exchange platform projects are underway around the world. In Switzerland, the operator of the SIX exchange wants to open a dedicated segment. Taurus also aspires to create a market place which will be focused on private capital. The company has applied to Finma to do so, and will need a “securities firm” license, the new name for the activity of securities dealer.
The director general of Amazon France, Frédéric Duval, explained to senators on Tuesday that he wanted his group to establish physical stores of Amazon Go types in France. Asked by the Senate Economic Affairs Committee about ways to strengthen the complementarity between digital platforms and physical stores, he said that three requirements should remain at the center of economic transformations: price, choice and delivery time.
Amazon opened its Just Walk Out technology to third-party distributors last March. First introduced in 2016 in the United States in Amazon Go stores without checkout, this technology is based on computer vision, sensor fusion and in-depth learning to eliminate queues at checkouts. On a website for third-party distributors, Amazon says that the new offering is based on “proven technology that has worked with great reliability and precision for years in our stores”.
But this technology has not yet entered France. Last March, Michel-Edouard Leclerc expressed his disagreement with the wishes of the North American competitor. “We will remain Leclerc, we will remain independent and we will remain French,” argued the president of the French brand.
“In the spring, all of Leclerc’s websites – through which we already generate more than 3 billion euros in turnover – will be unified under one portal to conquer Amazon on food and non-food, “he said, adding that” over the next ten years, I think Leclerc will be the French Amazon, but with more employees and more experts. “
The tax issue
For the president of the economic affairs committee, Sophie Primas, “online commerce, whether from Amazon or from another company, is complementary to physical commerce and offers many opportunities for producers, by opening up very important commercial possibilities for them, including international ones, only for consumers, whatever the density and commercial offer of their place of residence ”.
The president believes that “this complementarity can only be expressed fully and fairly if the rules, including fiscal, environmental, digital and of course health, are the same for all stakeholders.” During the hearing, the senators underlined the weakness of the amount of tax paid in France by Amazon, its refusal to sign the charter of e-commerce and a form of “blackmail with wild dereferencing” vis-à-vis the sellers third parties to comply with its commercial requirements.
To which Frédéric Duval replied that it was “very simplistic” to “reason only on the fiscal contribution of the company through corporate tax” and that in any event, “our direct contributions , including employers’ contributions, amount to 150 million euros for a turnover of 4.5 billion euros ”, or 3.3%.
Concerning the possible application of the tax on commercial surfaces to the warehouses of the actors of the online trade, he clearly dismissed this possibility by indicating that “TASCOM applies to warehouses which welcome the public; however, our warehouses do not accept them and pay other production taxes linked to the nature of these warehouses, “reports the Senate.
In the midst of a health crisis, while Amazon’s warehouses are still closed for an unspecified period, management says it is assessing “the best way to operate” in light of the Versailles Court of Appeal’s decision. Frédéric Duval says he is “puzzled” by this judgment, which “has enormous consequences for customers, French SMEs and our employees”.
WASHINGTON.- Deserted cities. Theaters, cinemas and closed stadiums. Parked planes. Restaurants and bars with empty tables and bare bars. The United States entered 2020 with one of the best economies in its history, and in just a couple of weeks the new coronavirus disintegrated it, and left the country facing its worst crisis since -at least- the Great Depression.
coronavirus. “data-reactid =” 20 “> After more than a decade of expansion, the longest recorded boom, the US economy stood on the threshold of a new recession, falling at an annualized rate 4.8% in the first quarter, the worst collapse since the peak of the global financial crisis, at the end of 2008, and just the first stumbling block of the catastrophe unleashed by the new coronavirus pandemic.
“The depth and duration of the economic recession are extraordinarily uncertain, and will depend largely on how quickly the virus is controlled,” said Federal Reserve (Fed, in financial parlance) president Jerome Powell in a virtual press conference in which he gave a gloomy picture.
The United States’ gross domestic product (GDP) fell at an annualized rate of 4.8% in the first quarter of this year, the Commerce Department reported, the steepest decline since the last quarter of 2008, in the midst of the global financial crisis. , when the activity suffered a drop of 8.4 percent. The fall was only the first step in a crisis of uncertain duration: economists, investment bank analysts, the federal government and the Fed have already anticipated that the collapse was much more marked during the following months, when the world closed in as governments, one after another, shaped the “Great Confinement” in a desperate attempt to subdue the new disease with a medieval recipe, which slowed down the global economy.
Donald trump , declared a national emergency on March 13, and the federal government recommended that people stay home and adopt “social distancing” as standard practice for the first time on March 16. Starting that day, states began to restrict business, a gradual and partial closure that began to reverse last week, and will expand over the coming weeks. “Data-reactid =” 23 “> President Donald Trump, declared a national emergency on March 13, and the federal government recommended that people stay home and adopt “social distancing” as standard practice for the first time on March 16. From that day on, states began to restrict business, a gradual and partial closure that began to reverse last week, and will expand in the coming weeks.
Even with a “normal” January and February, consumption plummeted at an annual rate of 7.6% as restaurants, bars, cinemas, theaters, and all businesses deemed “nonessential” lowered their blinds to curb the spread of the virus. Businesses cut their investments dramatically: equipment spending plunged 15.2 percent. Hotels, airlines, restaurants, department stores, and other retail businesses were particularly hard hit by the crisis. One of the few companies that showed auspicious data: Netflix, which added 15.8 million subscribers.
All figures for the first months of the year are forecast to worsen during the April-June period, for which economists expect the worst indicators since -at least- the Great Depression that began in 1929. The White House has said that He expects a robust recovery in the following months, as restrictions on the movement of people and businesses begin to be lifted, but that forecast of a “V” recovery is tied to pandemic control, which is far from guaranteed.
The outlook Powell drew was otherwise bleak: He said the economy had suffered an “abrupt halt”, and that most indicators had yet to “catch up” with reality. More than 26 million people have already been fired or suspended, most in April. Powell anticipated that unemployment will climb to “double digits,” and that the fall in the second quarter will occur at an “unprecedented” rate. Powell promised that the Fed will use all available tools to support the economy, making it clear that the economic recovery is tied to controlling the new disease.
Epidemiologists and public health experts expect a relapse of Covid-19, the disease causing the new coronavirus, in the fall and winter, a relapse that could force the return of restrictions, or, at least, maintain consumption depressed. Therefore, there are economists who foresee that the recovery of the economy will be more complicated, shaped like a “W”.
The vietnam war, one of the most traumatic events in the country’s recent history. “data-reactid =” 32 “> The United States is the country most affected by the pandemic that erupted in Wuhan, China. The country crossed two new barriers: it overcame the million confirmed cases of the new disease, and recorded more than 60,000 deaths, more than the 58,220 American victims left by the Vietnam War, one of the most traumatic events in the country’s recent history.
the longest bonanza of which there is a record. Trump, whose popularity was sustained by the rampant economy, said on several occasions that the United States had achieved “the best economy in the world” and “the best economy ever seen,” and has promised a speedy recovery. Unemployment fell to 3.5%, the lowest level in half a century, and Wall Street achieved its longest bullish run in its history. “Data-reactid =” 33 “> The fall of the first quarter opened a new recession for The United States after the longest recorded boom, Trump, whose popularity was sustained thanks to the rampant economy, said on several occasions that the United States had achieved “the best economy in the world” and “the best economy ever it has been seen, “and has promised a speedy recovery. Unemployment fell to 3.5%, the lowest level in half a century, and Wall Street achieved its longest upward trend in its history.
The pandemic put an end to all that.
During the first quarter of the year, América Móvil achieved revenues of 250 billion pesos, which implied an increase of 1.8 percent in terms of Mexican pesos.
Through a report sent to the investing public of the Mexican Stock Exchange (BMV), lto a company owned by the Mexican magnate Carlos Slim Helú He detailed that at constant exchange rates, service revenues increased 5.0 percent, the fastest pace in more than a year.
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“The figures for the first quarter in this report show a limited impact so far of the pandemic. Our consolidated results were solid, and all of our main operations performed well. ”
However, he clarified, after contingency measures were applied in all countries, most of them in mid-March, operating trends began to change.
“There is no clarity regarding its duration and magnitude in general or its impact in the countries where we operate,” explained the telecommunications company.
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He specified that in March they ended with 283 million mobile subscribers, after incorporating 3.5 million subscribers from the acquisition of Nextel.
Organically, he said, they earned 1.4 million postpaid mobile subscribers in the first quarter, including 874,000 in Brazil and 215,000 in Mexico.
Its postpaid base increased 7.8 percent year-over-year, and its prepaid base decreased 2.6 percent, while fixed broadband continues to be the main driver in the fixed line platform, as they connected 432 thousand new accesses, including 107 thousand in Brazil and 105 thousand in Mexico.
Postpaid mobile and fixed broadband services were the main drivers of revenue growth, increasing 13.6 and 7.8 percent, respectively.
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Prepaid service revenue increased 3.9 percent, with Mexico, Colombia and the Dominican Republic showing increases of 13 percent.
Ebitda -operating flow- totaled 77.6 billion pesos in the quarter and increased 2.9 percent in terms of Mexican pesos and 8.3 percent at constant exchange rates, with a faster Ebitda increase in Mexico, 11.9 percent; Brazil, 7.5 percent; and Colombia, 8.2 percent.
The operating profit was 39 billion pesos, which meant an increase of 9.9 percent, compared to the same quarter of the previous year.
However, after the financing costs of 79.6 billion pesos, driven by the exchange losses derived from the devaluation of the Mexican peso and other Latin American currencies against the US dollar and the euro, they registered a net loss of 29.4 billion of pesos in the quarter.
Updated April 29, 2020, 2:28 p.m.
The national mask requirement is there and the offer is already tight. If you still need masks, you have the chance from Thursday. The discounter Lidl will be selling disposable masks in a pack of 50 from April 30th – at cost price. Other chains also offer masks. © 1 & 1 Mail & Media
The judges decided: Swisscom had abused its dominance on the internet for years
Swisscom has lost a long dispute over the fees for data transmission on the Internet. The Federal Administrative Court approved a complaint from the smaller Internet provider Init7, which had resisted excessive fees.
The dispute has been raging for eight years. In 2012, Swisscom terminated the Init7 contract and charged higher fees for the forwarding of data from the Init7 network to the Swisscom network (IP interconnection). Init7 had previously had a contract with Swisscom in which both parties had to bear their own costs.
The case is about dominance on the Internet. So far, the Internet providers have asked for money from the content providers (YouTube, Zattoo etc.) for the connection to the customer. They had no choice but to pay – either the telecom provider or a transit provider – because they did not come directly to the end customer.
Only the very big providers like Netflix or Google could avoid paying, Init7 boss Fredy Künzler said on request on Wednesday. Swisscom buckled against Netflix a few years ago. All other providers such as Zattoo would have to pay for access to Swisscom, said Künzler.
Comcom has to set new fees
Init7 had filed a lawsuit against what they considered to be “massively excessive compensation” for the interconnection of the networks and the forwarding and had lost them to the Federal Communications Commission (Comcom). However, the Federal Administrative Court now came to the conclusion that Swisscom is dominant on the market: It is undisputed that the largest telecommunications group in Switzerland, as the owner of the “national telecommunications infrastructure, has a technical monopoly on access to its end customers”, the ruling said by the news agency AWP is available.
The court overturned the decision of the telecom regulator Comcom and approves Init7. The Comcom must now set the cost-based price for data forwarding, Init7 wrote in a communiqué. This is a request from Swisscom for CHF 550,000 to Init7. Init7 also saves the procedural costs of CHF 126,400 still imposed by the lower court.
Judgment has further effects
Init7 wrote further that market-powerful providers with many broadband customers could no longer make IP interconnection artificially more expensive through competitive agreements and that it would make it difficult for smaller providers to access their customer base. Swisscom is about more money, said Künzler. How much exactly is unclear.
The “blue giant” explained: “Swisscom takes note of the decision and is currently examining it in detail.” It was now up to Comcom to set the prices that Init7 would have to pay for data transmission to the Swisscom network by the end of 2015. In addition, Comcom must examine the market and competitive situation from 2016. The ruling by the Federal Administrative Court made it clear that data forwarding was to be paid for, albeit cost-based and not free of charge as Init7 originally requested.
The decision of the Federal Administrative Court cannot be appealed to the Federal Court. “It is therefore final,” says the judgment. (oli / sda / awp)
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