Creditworthiness in the Corona crisis: Fitch sees Italy only one step above “junk level”

The global economy suffers from the Corona crisis, millions of people have to cut corners. News ticker.

• The corona virus * damages the global economy enormously. 
• Numerous countries set up aid programs * . 
• But not all companies suffer from the economic consequences of the pandemic .
• Here you will find the basic facts about the corona virus * and the corona news from Germany *. You can also find current case numbers in Germany here as a map *.

Update from April 29: For the rating agency Fitch , Italy , which was particularly hard hit by the  Corona crisis, is  only one step above the so-called  junk level . Fitch lowered the country's credit rating from BBB to BBB- on Tuesday. Fitch therefore sees Italy only just above the threshold of the states whose bonds are  riskybe rated.

The Italian Ministry of Finance then asserted that the foundations of the Italian economy and public finances were still "solid". However, economic output is expected to decline by eight percent this year. The Italian government has therefore already launched several measures.

In addition, the EU heads of state and government had agreed on joint financial aid against the crisis - as a first step towards a rescue package of 500 billion euros . However, the corona bonds * required by Italy and other countries have not been agreed. With these joint bonds, Italy would benefit from the higher creditworthiness of other countries like Germany.

Boeing chief: Corona crisis will burden aviation for years

Update of April 27, 10:02 p.m .:  The US aircraft manufacturer Boeing assumes that the international aviation industry will recover only very slowly from the corona crisis. "We expect it will take two to three years for travel volume to return to 2019 levels," Boeing chief Dave Calhoun warned shareholders on Monday at the Group's annual general meeting. Because of the pandemic, the event could only take place on the Internet this time.

It would take a few more years for the aviation industry to regain its long-term growth trend, Calhoun said. The crisis is "different from anything we have ever experienced" and it is "difficult to estimate when the situation will stabilize". The Boeing chief made no specific statements about measures such as production cuts and job cuts that Boeing could use to respond to the crisis two days before the quarterly report.

At first, the Boeing boss also kept a low profile on the schedule of the intended re-registration of Boeing's after two devastating plane crashes with prohibited 737 Max crisis jets. To the blown-off on Saturday acquisition of commercial aircraft division rival Embraer Calhoun said that a point had been reached, were "no longer useful negotiations" from. Embraer is seeking compensation and has initiated arbitration.

In the negotiations for possible Corona assistance, Lufthansa should also examine self-administered bankruptcy.

Corona crisis: Ryanair boss directs serious allegations to Lufthansa

Update of April 23, 5:23 p.m .: Ryanair boss Michael O'Leary has accused Lufthansa of abusing the corona crisis . "I think that airlines like Lufthansa and Air France are using the Covid 19 crisis to enrich themselves with unbelievably high sums from the state," said the opinion leader, the airline manager on Thursday, the Handelsblatt . Meanwhile, Lufthansa has already announced that 10,000 jobs will be cut.

O'Leary excluded state aid for his own company because he had sufficient cash reserves. Ryanair would likely survive significantly longer than any other airline. The manager admitted that state short-time work benefits in many European countries improve the financial situation of the aviation company *. In winter, 10 to 20 percent job cuts were “almost inevitable”. The CEO also commented on the safety precautions in air traffic:

Vouchers go faster than refunds. ... nobody will lose their money: #Ryanair will have to be measured against that. #No compulsory vouchers Handelsblatt: Ryanair boss O'Leary: "Lufthansa wants to enrich the state" https://t.co/UqT8HSgzPZ

Austria threatens historical recession due to coronavirus pandemic

Update from 14.13:  Austria is threatened by a historic recession due to the  corona pandemic  . According to its forecast, the Vienna Economic Research Institute (WIFO) is forecasting a decline in gross domestic product of between 5.25 percent and 7.5 percent this year. The economy is expected to grow by 3.5 percent again next year.

The crisis has a significant impact on the unemployment rate . According to Wifo, this will increase to 8.75 to 9.1 percent. At the same time, the extensive state aid in the crisis is reflected in the Austrian budget: the researchers anticipate a deficit of up to ten percent.

A Swedish epidemiologist says about the currently very different numbers from Sweden (high death rate) and Germany (comparatively low death rate): In the end, the numbers will adjust - with one difference: Germany will have destroyed its economy.

Corona crisis: New data show dramatic situation on the US labor market

Update of 11:22: As the unemployment rate in the United States increases dramatically, the government of US President Donald Trump wants to support Greenland with a multi-million dollar aid package . The support package is expected to amount to around 82 million Danish kroner ( around 11 million euros ), reported the Greenland radio station KNR and the Danish newspaper Berlingske . 

According to the KNR , investments should flow primarily in tourism, the raw materials sector and education - such as English lessons. The US embassy in Copenhagen initially did not comment on the reports at the request of dpa . 

Update from 9.42 a.m .: In the USA , the impact of the corona crisis has already led to a devastating situation on the labor market. Around 22 million people have applied for unemployment benefits for the first time since mid-March - more than ever before in such a short time. On Thursday afternoon (CET), the U.S. Department of State released the number of new initial jobless claims for the week ending April 18. Experts anticipate a further rise in unemployment in the world's largest economy.

The corona pandemic has made unemployment an extreme problem in the United States. 

© dpa / John Locher

The previous week there were 5.2 million new applications . They are considered an indicator of the short-term development of the US labor market. Most recently, the data indicated a dramatic economic downturn. Prior to the escalation of the coronavirus pandemic, fewer than 100,000 initial applications had been made weekly. According to experts, the unemployment rate in the United States is already well over ten percent , and some analysts even expect it to be around 15 percent. In February the rate was still 3.5 percent, the lowest level in decades. 

Corona crisis: Oil price rebounds slightly - but the situation remains tense

Update of April 23, 8:26 a.m .: A slight recovery in oil prices continued on Thursday morning . In the wake of the double burden of supply and demand slump due to the corona pandemic, the oil market remains tense . In the morning, a barrel (159 liters) of the North Sea Brent last cost $ 21.80. That was $ 1.45 more than the day before. The US WTI was traded at $ 15.21 per barrel. It was $ 1.46 more than on Wednesday. At the start of the week, the price of a futures contract on US oil that had expired had fallen below the zero line. It was the first time that the WTI price was negative.

Corona crisis hits the global economy: The oil market is going downhill

Update from April 22, 8.35 a.m .: The oil market continues to fall sharply . At the start of trading on Wednesday, the price of Brent in North Sea was particularly under pressure - in two cases it fell to the lowest level since the late 1990s . Deliveries in June fell by up to $ 3.35, or 17 percent, to $ 15.98. This is the first time since 1999 that a barrel (159 liters) of Brent from the North Sea cost less than $ 16.

Update of April 21, 12:54 p.m .: The drop in the price of the US reference variety WTI is not noticeable in Germany when it comes to fuel prices. However, heating oil prices have fallen sharply in the face of turbulence on the oil market and the signals point to a further drop in prices .

Recently, 100 liters of heating oil in Germany cost an average of around 52 euros (when buying 3000 liters, including VAT), various heating oil portals report on the Internet. In many regions, the price is already under 50 euros, according to the measurement device manufacturer Tecson. At the beginning of the year it was around 70 euros.

The prices are currently approximately reach to levels last seen three years ago and also the lows of 2016 could soon. At that time, heating oil prices were between 40 and 50 euros per 100 liters for long stretches of the year.

Corona crisis: oil price falls to record low - effects on the German gas price?

Update of April 21, 12:12 p.m .: The oil price in the USA fell to a historic low. The price recovered slightly on Tuesday. On the Asian marketplaces, the price for the barrel of the US reference variety WTI left the negative range and rose to $ 1.10 per barrel (159 liters). 

In Germany , this crash will not affect fuel prices. This is apparently mainly due to the fact that the WTI oil grade "is not decisive for the German market," said a spokesman for the ADAC on Tuesday. Rather, it depends on the North Sea variety Brent in the Federal Republic . Their price is currently “above the low from the end of March”. The MWV petroleum industry association also referred to Brent as a decisive variety for Europe.

Corona crisis: WTI oil price plummets to record low - impact on German petrol price?

There were initially no comparative figures for Tuesday on fuel prices , since this is typically a nationwide daily average. However, this has already had a strong downhill run: on January 1, according to MWV, it was still 1.431 euros per liter for petrol of the E10 type and 1.323 euros for diesel. On Monday there were only 1.161 and 1.079 respectively. Although these are annual lows, they are only slightly below or on par with the previous days. The ADAC determined minimal aberration in prices of 1.163 euros at E10 and 1.082 for diesel and a slight increase since Saturday for Monday.

The current prices are "reasonable" , it said from the ADAC. The MWV emphasized that the lower oil prices had been passed on to consumers. The price at the petrol pump also depends on costs other than the price of oil: taxes alone accounted for 72 percent for gasoline and 60 percent for diesel.

Corona crisis: Oil price drops to record low - Spain is suffering an unprecedented recession

Update from April 20, 7:50 p.m .: The oil price on the US stock exchange reached an all-time low on Monday . The price of a barrel (159 liters) of the US reference variety WTI dropped to $ 4.04. 

The reason for the collapse is probably the low oil demand due to the corona pandemic . The price war between the oil producers Saudi Arabia and Russia has also pushed the price further in recent months. 

In the meantime, the price has recovered slightly and even exceeded the five-dollar mark. For comparison: at the peak of the oil price in 2011, a barrel cost $ 114.  

Corona crisis: Spain's economy is suffering an "unprecedented" decline

Update April 20, 17:10:  Spain stands by the Corona pandemic a historic slump of the economy before. Depending on the duration of the massive restrictions due to the virus, Spain's gross domestic product could shrink by 6.6 to 13.6 percent this year, Spain's central bank said on Monday. This decline in economic output has been "unprecedented" in recent history. However, the estimate is preliminary and must be adapted to the further course of the pandemic.

The central bank used different scenarios in its estimation . At the earliest possible loosening of strict corona restrictions on 9 May could be the GDP decline from 6.6 to 8.7 percent. If the economy comes to a standstill for a longer period of time, however, it could be significantly higher.

The central bank cited the significant decline in domestic demand, an explosion in the unemployment rate and the absence of tourists important to Spain as the decisive factors for the slump . Spain is one of the countries most affected by the coronavirus worldwide. To date, more than 20,000 people have died from the virus. Almost 3.9 million workers were temporarily released, and one million self-employed are unemployed.

Corona crisis forces Norwegian airline to its knees - subsidiary bankruptcy

Update April 20: Four subsidiaries of Norwegian airline Norwegian Report  insolvency on. This was decided on Monday, the airline said on its website. Accordingly, there are companies in  Denmark and  Sweden that employ the  pilots and  cabin crew  .

“The impact of the corona virus on the aviation industry is unprecedented. We did everything we could to avoid this decision in the final analysis, ”said CEO Jacob Schram. "It is heartbreaking that our Swedish and Danish subsidiaries for pilots and cabin crew are now forced to file for bankruptcy , and I am really sorry to see what consequences this will have for our colleagues."

1571 pilots and 3134 cabin employees are affected. The Norwegian staff are not affected by the bankruptcy because the Norwegian state assumes the salary-related costs due to the virus outbreak . "Unfortunately, there is no equivalent coverage in Sweden or Denmark," the company said.

Corona crisis in the global economy: Denmark decides to inject further funds

Update April 19: Also Denmark grapples with the economic crisis due to the Corona pandemic - and now has its state aid again increased by 100 billion kroner (almost 15 billion euros). What is special: The government of Prime Minister Mette Frederiksen excludes some companies from the support.

According to a report on the bloomberg.com website , there should be no money for companies and companies that pay dividends , buy back their own shares or have company headquarters in so-called “ tax havens ”. At the same time, the measures will be extended until July 8, 2020. The decision was supported by all parties in Parliament, the Folketing.

The advance also finds first supporters in Germany: The chief economist of the trade union ver.di , Dierk Hirschel praised on Twitter, Denmark sanctioned “anti-social corporate policy” - “Why can't Berlin do what is possible in Copenhagen and Paris?” The Left Bundestag member also Doris Achelwilm was impressed. "Would be too nice if the federal government came up with such ideas."

Antisocial corporate policy is also sanctioned in # Denmark. Companies that distribute dividends, buy back shares and have a mailbox in a tax haven do not receive state aid. Why can't Berlin do what is possible in Copenhagen and Paris?

Corona crisis in the global economy: Major industrial nations adopt pioneering measures

Update of April 18: The foreign ministers of more than ten countries , including Germany, France and Great Britain, agreed in a conference call to work to keep international trade and transport routes open in the Corona crisis . It is now important to pay attention to the restoration of essential supply chains and flight connections , said the Minister of State at the Federal Foreign Office, Niels Annen (SPD), on Saturday. "Only through international cooperation can we secure this and help ensure that urgently needed goods arrive and that the economy gets going again."

According to the Federal Foreign Office, 15 countries participated in the switching of ministers and their representatives on Friday, including Italy, Brazil, Canada, Turkey, Indonesia, Morocco and Mexico. The countries agreed to work to ensure that key transportation hubs around the world remain open to transit and freight transportation, to maintain supply chains and to allow stranded travelers to return to their home countries.

As the Foreign Office said, the talks are the result of an initiative by Canada . The group of foreign ministers from several countries coordinate every two weeks on concrete steps to overcome the consequences of the pandemic.

Corona virus: two disasters with one stone? Austria wants to help Austrian Airlines

Update from April 17, 9:05 p.m .: Austria apparently wants to put climate change on the agenda at least in part with government aid in the Corona crisis. Environment Minister Leonore Gewessler wants to link possible payments for Austrian Airlines to climate protection requirements. "If we take several hundred million in hand, this money must be conditional," said the Green politician of the newspaper Kurier. It is taxpayers' money and the taxpayer must have something from it "if the company is better again," said Gewessler.

Corona crisis - Austrian Airlines extends flight stop

© dpa / Unknown

The aviation industry is "heavily challenged in the climate crisis," said Gewessler. With regard to possible financial aid for Austrian Airlines, it must therefore "be about setting conditions where climate protection can be promoted". The minister referred to suggestions from experts that, among other things, would have severely restricted short-haul flights and the use of alternative fuels.

The Greens in Austria have been in a government coalition with the conservative ÖVP of Chancellor Sebastian Kurz since January . The party has promised massive investments in climate protection. The Lufthansa subsidiary Austrian Airlines extended its flight stop to May 17 because of the Corona crisis and asked for state aid. According to media reports, the necessary aid amounts to 500 to 800 million euros.

In Germany, an entrepreneur is meanwhile criticizing the Federal Government's measures. Meanwhile, US President Donald Trump wants to meet with New York Governor Andrew Cuomo - previously the two had exchanged views on how to deal with the Corona crisis.

Corona Crisis Economic Impact: US Retailers Have Bad News

Update 3:52 p.m .: The measures to contain the new corona virus in the USA have caused the retail sales to plummet. Sales in March were down 8.7 percent compared to the previous month, the US Department of Commerce said. In the United States, retail accounts for a comparatively high proportion of total economic output. 

The corona crisis does not seem to affect his company: The assets of Amazon CEO Jeff Bezos , according to the Bloomberg Billionaires Index, have risen by $ 24 billion to $ 138.5 billion since the beginning of the year. The reason is the ongoing soaring of the Amazon share . It rose by a good five percent on Tuesday and reached a new record high , from which the founder of the group benefits as a major shareholder. 

Amazon delivery services in demand in corona crisis - Group is accused of lacking employee protection

Amazon's delivery services are in high demand in the Corona crisis. The world's largest online retailer is having a hard time with the rush, many customers currently have to wait a long time or cannot place orders. Amazon is also accused of not doing enough to protect employees. The group faces protests and is criticized for controversial layoffs. This does not bother investors, however, despite the general fall in prices on the stock exchanges, Amazon shares have risen by almost a quarter since the beginning of the year.

Corona crisis: Von der Leyen wants investment program in the trillions

EU Commission President Ursula von der Leyen wants to fight the economic consequences of the pandemic * European investments in the trillions . "We're not talking about billions here, we're talking about trillions," said von der Leyen on Wednesday in Brussels. The EU budget is the right means for the “huge investments” .

Amazon CEO Jeff Bezos makes billions in the corona crisis.

© dpa / Andrej Sokolow

Are the corona bonds coming? Von der Leyens deputy leaves the question open

Leyens' deputy Valdis Dombrovskis had recently shown how this should be financed: via bonds that the EU Commission intends to borrow and for which the EU countries must guarantee. Dombrovskis left open whether and how such bonds differ from the controversial corona bonds *.

Von der Leyen confirmed the principle: “leveraging” money from the EU budget with the help of guarantees from the member states. This is a tried-and-tested instrument, if not yet on the scale envisaged, said the head of the commission.

Charles Michel: EU single market damaged in the Corona crisis

She pointed out that the EU and its member states had already mobilized three trillion euros in the corona crisis * and had become heavily indebted for it. But be convinced together with EU Council President Charles Michel that more needs to be done.

Michel announced plans to discuss the level and funding of massive investments at the video summit of leaders next week. Above all, he emphasized the importance of reviving the EU single market , which suffered during the crisis * . The European economic area must be strengthened again.

In Bavaria there is a requirement for a mask because of the corona pandemic - we explain the background.

dpa / AFP / frs

* Merkur.de is part of the nationwide Ippen digital editorial network.

List of rubric lists: © dpa / Tim Brakemeier