Coronavirus surge is starting to put consumers on alert
Wall Street forecaster James Bianco warns the new economic lockdowns will hurt the holiday rush. According to Bianco, the fallout from surging coronavirus infections is starting to put consumers on alert due to job market uncertainty — particularly for those who can’t work from home. “Roughly around 30% of the jobs in the American workforce can be effectively done at home. Seventy percent of them can’t,” the Bianco Research president told CNBC’s “Trading Nation” on Thursday. “Think surgeon to waitress. They can’t do that at home.” It appears the latest weekly jobless claims numbers are already reflecting reopening reversals. Last week, 742,000 unemployed workers filed for first-time benefits versus the 710,000 consensus. Bianco notes the impact will also widen the wealth gap. “The people who can effectively work at home are at the higher end of the spectrum,” he said. “They won’t be hurt as much by another work-from-home wave…
Huawei’s nine-month revenue growth slows as U.S. restrictions bite
China’s Huawei Technologies Co Ltd reported a 9.9% rise in nine-month revenue on Friday, as U.S. export restrictions and the global COVID-19 pandemic weakened sales growth in products such as smartphones and telecoms equipment. Revenue reached 671.3 billion yuan ($100.44 billion) over January-September, it said in a statement, without providing a segment breakdown. Revenue grew 13% in the January-June period. Net profit margin for the nine months was 8.0%, versus 8.7% over the same period a year earlier. Consumer Business Group Chief Executive Richard Yu earlier this year said Huawei would soon stop making high-end Kirin chips as U.S. restrictions on supplying the firm take effect. Analysts expect its stockpile of the chips to run out next year. Domestically, consumers have rushed to buy Huawei smartphones on concerns over the availability of newer models. Overseas, however, Huawei has faced sluggish sales, due in part to its lack of access to…
Trump’s unemployment program pays up to $1,800 in extra benefits to workers who qualify
Most unemployed workers will get up to $1,800 in extra jobless benefits through the Lost Wages Assistance program created last month by the Trump administration. The program pays a $300-a-week federal subsidy on top of the unemployment benefits workers currently receive. It follows the lapse of a $600 weekly supplement in late July. States, which had to apply and be approved for the Lost Wages aid, will issue up to six weeks of payments to eligible workers, a spokeswoman for the Federal Emergency Management Agency, which is overseeing the program, said Thursday. “States should plan to make payments to eligible claimants for no more than six weeks from the week ending Aug. 1, 2020,” according to the spokeswoman. $2,400 in some states That equates to a maximum $1,800 — or three weeks’ worth of the prior $600-a-week subsidy, which was enacted by the CARES Act coronavirus relief law in March. Some…
Coronavirus bringing record $1 trillion of new global corporate debt in 2020
Companies around the world will take on as much as $1 trillion of new debt in 2020, as they try to shore up their finances against the coronavirus, a new study of 900 top firms has estimated. The unprecedented increase will see total global corporate debt jump by 12% to around $9.3 trillion, adding to years of accumulation that has left the world’s most indebted firms owing as much as many medium-sized countries. Last year also saw a sharp 8% rise, driven by mergers and acquisitions, and by firms borrowing to fund share buybacks and dividends. But this year’s jump will be for an entirely different reason – preservation as the virus saps profits. “COVID has changed everything,” said Seth Meyer, a portfolio manager at Janus Henderson, the firm that compiled the analysis for a new corporate debt index. “Now it is about conserving capital and building a fortified balance…
Goldman Sachs offers employees an extra 10 days of family leave to cope with coronavirus
Goldman Sachs has offered its employees worldwide an extra 10 days of leave to help them care for children or elderly relatives affected by the coronavirus. The US bank told employees last night that they were entitled to the extra time off to handle the “unique personal circumstances related to the profound impact of Covid-19”. Bentley de Beyer, who took over as head of human capital management at Goldman in January, sent a memo to staff telling them about the additional leave. Schools have been closed as a result of the pandemic, placing additional strain on parents, and older people are more susceptible to severe cases of the respiratory disease. “To support employees, we will now offer 10 days of family leave to our people globally to care for family members, as needed, due to Covid-19-related illness or childcare needs, including homeschooling,” de Beyer wrote in the memo. The move…
Waiting for your coronavirus stimulus check?
If you haven’t received your coronavirus stimulus check yet, there’s a chance you’ll get it in the form of a prepaid debit card rather than a check in the mail. The Treasury Department announced Monday that around 4 million people who do not have their direct deposit information on file with the IRS will receive a prepaid debit card with their stimulus funds on it. “Prepaid debit cards are secure, easy to use and allow us to deliver Americans their money quickly,” Treasury Secretary Steve Mnuchin said in a statement. “Recipients can immediately activate and use the cards safely.” The Economic Impact Payments are worth up to $1,200 for individuals and $2,400 for couples, plus $500 for eligible dependents. Issued through Treasury’s U.S. Debit Card program, the Economic Impact Payment cards, as Treasury is calling them, are Visa debit cards that can make purchases online and at retailers, transfer funds…
Economic crisis recovery perceptions low: TRA
New Delhi: India’s crisis recovery perceptions are positive on the health front but lagging in terms of economic recovery, a white-paper by consumer insights and brand analytics company TRA Research said. There is a significant gap between the ongoing national lockdown in terms of decision making and implementation, and fears of long-term financial and economic impact are prominent among citizens, the white-paper said. TRA Research chief executive N. Chandramouli said: “There are also big gaps in information and knowledge about the coronavirus transmission. The misinformation is impacting attitudes and actions of citizens.” While consumer trust about India’s ability to combat the health crisis is considerably high, the belief that India will be able to combat the economic crisis is significantly lower, he said. The white-paper said within the Family Worry Index, the highest concern across cities was that the family may contract the disease, while job/business loss was the second…
Paul Volcker, inflation-busting economist who served under six presidents, dies at 92
“Volcker was the man who made America a country that was regarded as not willing to take inflation anymore,” one financial analyst said. Former Federal Reserve Chairman Paul Volcker, who guided economic policy for more than half a century and served under six presidents, died Sunday. He was 92. Perhaps best known in recent years for his work with President Barack Obama to pull the nation out of the depths of recession in 2008, Volcker was instrumental in setting speculative limits for financial institutions to cull risks that could bring down the financial system, a construct known as the Volcker Rule. “Paul A. Volcker was a giant among American public servants,” Thomas W. Ross, president of the Volcker Alliance, said in a statement issued Monday morning. “He was a man of great courage and integrity who committed most of his working life to the public good. Mr. Volcker was admired…
Most Generous People in the World – part 2
Last week we show you 5 most generous people in the world, moving on, we will show you top 5 most generous people in the world : 5. Charles Francis Feeney Lifetime donations: $6.3 billion Net worth: $1.5 million Generosity Index: 420,000% Known as the “James Bond of philanthropy,” retail magnate Chuck Feeney is on a mission to give away his entire fortune – and with his current net worth down to $1.5 million, it seems he’s succeeded. The Atlantic Philanthropies, Feeney’s foundation, supports education, science, healthcare, and civil-rights causes across several countries, including the US, Vietnam, and Bermuda. 4. Azim Premji Lifetime donations: $8 billion Net worth: $15.9 billion Generosity Index: 50% In addition to serving as the chairman of Indian consulting and IT company Wipro,Azim Premji is the founder and chairman of the Azim Premji Foundation, which works to reform India’s school and examination systems. The organization operates…
Most Generous People in the World – part 1
As 14th February is the day of love, what else is the love if not spreading your own wealth in the finance world? Pioneering American philanthropist Andrew Carnegie once set the standard for giving back: “No man can become rich without himself enriching others,” he said. “The man who dies rich dies disgraced.” Scores of the world’s wealthiest people have taken to his philosophy, donating their riches to hundreds of causes. We will show you 10 individuals who are the top philanthropists in the world. 10. George Kaiser Lifetime donations: $3.3 billion Net worth: $9.3 billion Generosity Index: 35% George Kaiser, chairman of BOK Financial Corporation, also founded the George Kaiser Family Foundation, which gives to educational, health, religious, social, and community-development-related causes, includingthe Tulsa Community College Foundation, Oklahoma City Educare, National Energy Policy Institute, the Tulsa Community Foundation and the University of Tulsa. In 2010, Kaiser joined the Giving…