Global Business Daily: Wretched Brazil, Renault is rethinking, expanding Wizz Air | Instant News


“We think it’s too big in sales.”

That’s the temporary CEO of Renault Clotilde Delbos, who explains why the French automaker is cutting several thousand jobs and trying to save more than $ 2 billion over the next three years.

Stick to cars – we know this has been a terrible year for sellers and manufacturers around the world so far. But new figures from the UK SMMT trade body highlight how bad: the country’s production lines produced 197 vehicles in April. That’s down from 71,000 in the same month a year earlier.

In a far more optimistic statement, Wizz Air boss Jozsef Varadi said: “We see the potential to re-stimulate demand for low-cost travel and contribute to the vital recovery of tourism in these markets,” when he announced the low-cost airline. is expanding to four new bases in Europe. The company – which was far from canceling all flights at the start of the COVID-19 outbreak signed a government contract to repatriate Hungary – quickly became one of several “winners” of the pandemic and economic crisis.

And now for something completely different – have you ever wondered which European country has the most forest cover? Now, don’t be surprised to be a better reader, because my colleague Danny has collected very detailed statistics in the chart at the bottom of this briefing.

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Happy reading,

Patrick Atack

Digital business correspondent

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The euro zone – a bloc in the EU that uses the euro – is in the threshold fell into deflation, as the pandemic continued to hit business and spending, pulling growth down to 0.1 percent. The European Central Bank meets next week and is expected to produce further monetary stimulus after this news.

Hungarian airline Wizz Air hopes to increase the return of the air travel industry by expanding to four new European bases: Milan, Italy; Larnaca, Cyprus; Lviv, Ukraine; and Tirana in Albania. There will be 50 new routes in the plan, the company said.

U.S. consumer spending in April suffered the biggest decline since 1959, with a 13.6 percent drop month-on-month. However, personal income grew during the same period, at least in part thanks to the Payment Protection Plan passed by Congress.

Brazil’s GDP fell 1.5 percent in the first quarter of 2020, as Latin America’s largest economy moved towards recession. From February to March, nearly five million Brazilians lost their jobs, leaving a total of more than 12 million unemployed.

The wings of driving a Chinese car-ride business Didi Chuxing have raised at least $ 500 million in the first round of funding, according to the company statement. The ride-calling service began experimenting with autonomous vehicles in 2016, before separating business in 2019.

EHang, a Chinese company that has turned drones into flying taxis, owns obtained permission from the Chinese Civil Aviation Administration to lift and ship heavy goods. It will run a service trial in Taizhou, southeast China.

German car company Volkswagen will invest $ 2.3 billion in electric vehicle collaboration in China, said the company. It takes a 50 percent stake in JAC Motors and 26 percent Guoxuan High-tech Co. to move forward with its EV ambitions.

French car maker Renault will cut 15,000 roles as part of a plan to save more than $ 2 billion in the next three years. Interim CEO Clotilde Delbos said “the mindset of the company has completely changed” thanks to the coronavirus pandemic and previous commercial failures.

China’s central bank has removed “clean coal” from the list of projects that qualify for “green bonds” as The country is trying to turn its energy sector towards environmentally friendly methods.

Hungarian Prime Minister Viktor Orban has criticized the European Union’s recovery package, saying the 824 billion dollar Commission bond plan sparked a “red light” and accused the proposal of “financing the rich from the coffers of the poor.”

In Norway, the The Oslo government has proposed spending $ 369 million to make its economy more environmentally friendly, because it emerged from the coronavirus crisis. Norway currently produces oil and gas for energy and exports.

The major shareholder of the French oil company, Total, rejects a group of investors change the company’s constitution to fulfill its obligations under the Paris Climate Accord.

The British car industry may have fallen to the least productive year since the 1980s, according to warnings from the Motorcycle Manufacturers and Traders Society. Only 197 cars were produced by the country’s factories in April, down from 71,000 in the same month last year.

The Spanish government has approved a basic income of $ 514 for 2.3 million people aged 23 to 65 years with assets of less than $ 18,477. Deputy prime minister Pablo Iglesias said the scheme would include incentives to find work.

Greek airlines Aegean Airlines has asked the country’s largest banks for a $ 166.9 million bailout loan, which, according to the company, is 11 percent of its annual turnover.

Sports and business leagues around the world have set a date to return – with big competitions like football The English Premier League starts again in June. The top cricket season in Australia is not ready, but the short format competition in Darwin will start next week.

1:43

Guy Ryder is the director general of the International Labor Organization. He spoke to CGTN Europe about the impact of the increase in youth unemployment triggered by the virus on the global economy.

The global youth unemployment rate almost reached 14 percent last year. How did COVID-19 change this?

Yes, I think we have seen COVID-19 have three impacts on young people at work. In the first example, our estimate is that more than one in six young people who worked at the beginning of the pandemic, they no longer worked. They have been expelled from their jobs. So it’s the first impact already from the starting point of high unemployment.

The second surprise is about education and training. Because of the impact of the pandemic, much education and training has been interrupted. Ten percent of young people told us in surveys that they did not know how and when they would complete their education. So they will have real problems in terms of skill acquisition. And the third surprise for young people, and we think at the end of the school year, are people who are trying to enter the labor market for the first time now. They really have no place to go because we are in a locked economy. And if you bring these three impacts together, we have a very serious situation for young people, which we call the danger of the “locked generation” of young people left behind.

Why do you think children are considered far more risky?

Yes, in the first example, pre-pandemic youth are concentrated in vulnerable occupations, high concentrations in the informal economy, in much of the world. In sectors that have been severely affected by pandemics, I think of food, accommodation, hotels and also retail and wholesale. Many young people are at work too. And they are in the wrong place at the wrong time and they suffer the consequences.

Then what pattern do we see developing globally in terms of gender disparities?

This is interesting. What we see, again, in general and before the pandemic, young women are far worse than young men in the labor market, a high concentration in the so-called NEET population. These are people who are not in education, employment or training. So women are in a bad place again to start.

I think the impact of the pandemic on young men and young women, is rather ambiguous. We see that reducing work hours affects men more than women. But I think we have to see how it works. But there is no doubt in the bigger picture about things that are not beneficial for young women in the labor market.

In your opinion, what are the long-term prospects for young people?

I think we have to differentiate between two things when the economy opens and people go back to work. How many young people will drift back into the labor market and continue more or less where they left off? That is one thing.

But I think what’s even more worrying is, we don’t know the numbers for this now. People whose effects of this pandemic shock will be long term. And this is very worrying for young people because all the evidence from past experience is that when young people leave the labor market for a significant period of time, say a year or more at the beginning of their careers, the effects of scarring, as we call it, stay with them more or less permanently. They did not catch up at all with the passage of time. And we have an example of a young man who was hit by a crisis, financial crisis, 2008/09. Many of these people are still at a disadvantage.

And this is where the idea of ​​a lost generation arises. Unless we give these young people real priorities, we run the risk of leaving them behind, leaving them on one side and creating frank labor reserves. And we cannot allow this to happen. Youth employment is a major challenge in the pre-pandemic labor market. Now the problem is twofold.



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