Thursday, June 18, 2020

Virus layoffs top 45.7 mn as US economic distress persists

Chris Stein, AFP•June 18, 2020

Another 1.5 million people filed new claims for jobless benefits in the United States last week, barely changed from the prior week and indicating that layoffs continue (AFP Photo/Olivier DOULIERY)


Washington (AFP) - Layoffs caused by the coronavirus pandemic in the United States have passed 45.7 million, raising fears that despite some positive signs, the economy faces a halting recovery from the downturn.

Another 1.5 million US workers filed new claims for unemployment benefits last week, the Labor Department said Thursday, a decrease of only 58,000 from the prior week and higher overall than analysts expected.

An additional 760,526 filed claims under a program for those who would not normally be eligible for benefits, while the insured unemployment rate showing people still receiving aid was unchanged as of the week ended June 6 at 14.1 percent, with 20.5 million people getting benefits.

"Based on this side of the firing and hiring equation, labor market improvement is muted," tweeted Mohamed El-Erian, chief economic adviser at Allianz.

The world's largest economy has seen a protacted downturn since businesses began closing in mid-March to stop the spread of the coronavirus, with the unemployment rate climbing to 13.3 percent in May and millions of layoffs reported each week.

In an interview with The Wall Street Journal, President Donald Trump reiterated his expectation that the economy would recover by the time voters decide whether to give him a second term.

"We will have created a lot of jobs prior to November 3," Trump told the newspaper on Wednesday. "I expect a tremendous increase in GDP. And we'll be heading for the top. We'll be back."

- Claims 'still so high' -

The wave of jobless claims peaked in late March and has been decreasing ever since. Yet it remains well above any single week reported during the global financial crisis in 2008, even as states move to reopen businesses and get consumers spending again.

Those efforts have paid off in sectors such as retail sales, which the Commerce Department said spiked 17.7 percent in May, nearly double the gain analysts expected, while other data has shown growing optimism among consumers and businesses.

Wall Street has also recovered much of its losses for the year after plunging as the virus arrived, though markets had an uneventful session Thursday, with traders holding back as they weighed the claims data.

"It's not clear why claims are still so high; is it the initial shock still working its way up through businesses away from the consumer-facing jobs lost in the first wave, or is it businesses which thought they could survive now throwing in the towel, or both?" said Ian Shepherdson of Pantheon Macroeconomics.

"Either way, these are disappointing numbers and serve to emphasize that a full recovery is going to take a long time."

In congressional testimony earlier in the week, Federal Reserve Chair Jerome Powell said that unless consumers feel confident COVID-19 has been defeated, "a full recovery is unlikely."

"The levels of output and employment remain far below their pre-pandemic levels, and significant uncertainty remains about the timing and strength of the recovery," Powell told the Senate Banking Committee.

The central bank chief has predicted the contraction of GDP in the April-June quarter "is likely to be the most severe on record," and called for more support to the economy.

But the Fed can only lend, not spend, and it will be up to Congress to decide whether to act ahead of the expiration of parts of the $2.2 trillion CARES Act stimulus package in the coming weeks.

The United States has seen the world's worst coronavirus outbreak with more than 117,000 deaths and 2.1 million cases diagnosed.

The epicenter has shifted from New York and states in the northeast to the south and west of the country.
US jobless claims worse than expected despite reopening

BBC  June 18, 2020

A business closed sign in NYC

A further 1.5 million Americans filed for unemployment last week, a higher-than-expected number that signals the economic damage caused by the pandemic is continuing.

Although reopening is underway throughout the country, the number of new applications for benefits fell by just 58,000, the Labor Department said.

It was the 13th week in a row the figures have held above one million.

The claims remain more than double the pre-pandemic record set in 1982.

The smaller-than-expected decline in claims last week likely reflects "some moderation" in the pace of reopening, Wells Fargo economics said.
Human suffering

US employers added a surprise 2.5 million jobs last month and the unemployment rate fell to 13.3%, the Labor Department said earlier in its monthly report.

But most analysts expect the US unemployment rate to be above 9% at the end of the year - close to the high set in the aftermath of the 2008 financial crisis.

The Labor Department's report on Thursday showed more than 29 million people - nearly one in five American workers - continued to collect jobless benefits as of 30 May.

"Like the threat posed by the virus, we must not become complacent about the level of human suffering associated with the economic downturn simply because of its persistence," said Mark Hamrick, senior economic analyst at Bankrate.com.

The head of the US central bank this week warned of "significant uncertainty" regarding the recovery and told Congress he thought further economic relief would be necessary.
UPDATED
Wirecard Suspends Executive After $2.1 Billion Goes Missing



 Eyk Henning, Jan-Patrick Barnert and Sarah Syed

Bloomberg June 18, 2020


View photos
(Bloomberg) -- Wirecard AG has temporarily suspended its outgoing chief operating officer after revealing that auditors couldn’t find about 1.9 billion euros ($2.1 billion) in cash, spooking investors and casting doubt on the company’s leadership and survival.

Jan Marsalek has been suspended on a revocable basis until June 30, the company said in a statement on Thursday. James Freis, who had already been tapped to lead the company’s new “integrity, legal and compliance” department starting next month, will begin in his role immediately. Marsalek was due to step down from the COO role to a new position in charge of business development, Wirecard said in May.

The company suffered one of the worst stock slumps in the history of Germany’s benchmark index on Thursday after revealing that auditors had been unable to find billions of cash that was supposed to be held in Asian banks. The company warned loans of as much as 2 billion euros could be terminated if its audited annual report, delayed for the fourth time, was not published by June 19.

Marsalek had tried to get in touch with the two Asian banks and trustees over the past two days to recover the missing money, but wasn’t successful, according to a person familiar with the matter. It’s unclear if the funds can be recovered, the person added.

A representative for Wirecard didn’t respond to requests for comment. Marsalek couldn’t immediately be reached for comment.

Ernst & Young was unable to confirm the location of the cash in certain trust accounts, and there was evidence that “spurious balance confirmations” had been provided, Wirecard said in a statement on Thursday. That’s about a quarter of the consolidated balance sheet total, Wirecard said.

“We are stunned,” said Ingo Speich, a fund manager at Deka Investments, a top 10 shareholder at the firm. “A new start in terms of personnel is more urgent than ever.”

The escalating crisis also calls into doubt the future of Chief Executive Officer Markus Braun, who is the company’s biggest shareholder. Braun has been at the helm since 2002, building the company from a startup into a payment provider whose technology facilitates transactions around the world.

Braun painted the company as a potential victim in a separate statement. The CEO has been resisting calls to resign and aggressively defending the company against accusations of accounting fraud, led by a series of articles in the Financial Times.

“It is currently unclear whether fraudulent transactions to the detriment of Wirecard AG have occurred,” said Braun, adding that the company will file a complaint against unnamed persons.

The stock dropped as much as 67% to 35.85 euros in Frankfurt on Thursday, the biggest fall on record and the largest for a member of Germany’s prestigious 30-company DAX stock index. Wirecard’s bonds also suffered a record plunge.

Loan Issue

Wirecard warned loans up to 2 billion euros could be terminated if its audited annual report was not published by June 19. Analysts at Morgan Stanley estimated that Wirecard has available cash of around 220 million euros, if it cannot locate the missing $2.1 billion.

“While we would expect Wirecard to seek covenant waivers, if the banks call 2 billion-euros of debt and that is mostly drawn, then we expect investor focus to turn to the balance sheet and liquidity,” said analysts at Morgan Stanley in a note on Thursday.

Wolfgang Donie, analyst at NordLB, warned that the “overall situation at Wirecard can only be described as insupportable and the scandal is now becoming a crisis that is threatening the existence of the company.”

German financial markets regulator BaFin said it is examining Wirecard’s disclosure on Thursday as part of its investigation into whether the company violated rules against market manipulation, according to a spokeswoman.

In September 2018, Wirecard reached a market valuation of 24.6 billion euros, replacing Commerzbank AG in the DAX alongside titans such as Volkswagen AG, Siemens AG, and Deutsche Bank AG. Following Thursday’s collapse, the company is valued at around 6.7 billion euros.

“Wirecard’s retreat could be terminal,” said Neil Campling, an analyst at Mirabaud Securities.

Asian Banks

EY told Wirecard that their results will require additional audits after two unnamed Asian banks that have been managing the company’s escrow were unable to find accounts with about 1.9 billion euros in funds, Wirecard said in an additional statement. Those funds had been set aside for risk management, the company said.

Wirecard said last month that the latest delay in publishing results was due to Ernst & Young needing more time to finish its review, and that the auditor hadn’t found anything material within the scope of its work. Wirecard had previously postponed the results while it was working with KPMG on a probe into allegations about accounting irregularities.

Braun has aggressively fought against allegations that the company’s financials have been mismanaged. Braun has also resisted calls from activist investors TCI Fund Management Ltd. to step down, promising to regain investor confidence and improve compliance and control.

Wirecard headquarters were searched in May by German prosecutors as part of a probe involving the company’s senior management.

Wirecard said in February that full-year revenue rose about 38% to 2.8 billion euros while earnings before interest, taxes, depreciation and amortization jumped 40% to 785 million euros.

(Updated with Wirecard statement, CEO comment, context on loans.)

©2020 Bloomberg L.P.

Crypto Card Issuer Wirecard Says It’s Missing $2.1B in ‘German Enron’ Scandal

 Paddy Baker CoinDesk June 18, 2020


Former German blue-chip Wirecard has said a quarter of its total balance sheet is missing after “spurious cash balances” were provided to its auditor, EY.

In an explosive statement Thursday, the Munich-based card issuer, said a total of €1.9 billion ($2.1 billion) could not be accounted for and that some members of the company had purposefully filed false or misleading statements “in order to deceive the auditor and create a wrong perception of the existence of such cash balances.”

Wirecard admitted the accounting hole was roughly a quarter of the company’s total balance sheet.

A former poster child of the German tech scene, Wirecard has been heavily scrutinized over supposed irregularities in its accounting practices. The company was accused last year of fraudulently inflating sales and profit figures, and that it was using client funds held in escrow accounts to boost cash balances.


Wirecard’s share price has tanked. At press time, shares traded at the €36 (~$40) mark, down 70% since Wednesday. The credit card issuer had once been one of Germany’s most prestigious companies, even surpassing Commerzbank with a €24.6 billion( ~$27.6 billion) market valuation in September 2018.

Lionel Barber, former editor-in-chief of the Financial Times, said on Twitter that Wirecard was turning into a German version of the Enron scandal.


Wirecard subsidiary Wirecard Card Solutions branched out into crypto when it became the issuer for crypto payment card providers Crypto.com and TenX. Wirecard had also partnered with TON Labs, the developer house behind Telegram’s blockchain. A court document also claimed Wirecard’s COO participated in the $1.7 billion token sale in 2018.

It’s unclear if Crypto.com, which only rolled out is payment card in Europe last month, is planning on switching its card issuer. CoinDesk reached out for comment but hadn’t heard back by press time.

Wirecard had already delayed the release of its audited financial statements and Thursday was supposed to be the final publication date. Today’s news has now pushed this back indefinitely. The delay means creditors will be able to pull up to €2 billion (~$2.2 billion) worth of loans as of Friday.

Wirecard’s board is now working “intensively” with EY “towards a clarification of the situation.”






 German payments firm Wirecard and its missing billions

Reuters June 18, 2020


(Reuters) - Billions of euros of loans to Wirecard could be called in as early as Friday after the German payments company said its auditor had refused to sign off on its 2019 accounts, knocking more than half the value off its shares on Thursday.



Wirecard said that its auditor EY had informed it that sufficient evidence could not be found for 1.9 billion euros ($2.1 billion) in cash balances on trust accounts - or around a quarter of its balance sheet total.



Following are some key facts about the company and pivotal dates in its recent history:



* Founded in 1999, Munich-based Wirecard has 5,800 employees in 26 countries around the world. It processes digital payments for both consumers and businesses and reported revenues of more than 2 billion euros ($2.3 billion) in 2018, more than triple the figure in 2014.



* Wirecard's expansion was driven by its chief executive and leading shareholder Markus Braun, an Austrian who has led the company since 2002. It was promoted to Germany's blue chip index in September 2018 when it ousted Commerzbank.



* In Feb. 2019, Singapore police said they were looking into reports by the Financial Times of alleged financial irregularities at Wirecard's local office, allegations that had driven its shares sharply lower.



* In Oct. 2019, Wirecard rejected any impropriety after the Financial Times published documents on the company's accounting practices which it said appeared to indicate an effort to inflate sales and profits.



* An independent investigation by auditor KPMG published in April this year found Wirecard did not provide sufficient documentation to address all allegations of accounting irregularities made by the Financial Times.



Wirecard said the KPMG audit had not uncovered any incriminating evidence to support allegations it manipulated its accounts and it would not restate its accounts for the years 2016 through 2018.



* On June 5, Munich prosecutors said they had searched Wirecard's headquarters and opened proceedings against the payment company's management board as part of a market manipulation probe initiated by financial regulator BaFin.



Prosecutors said the company was suspected of having issued misleading information which may have impacted Wirecard's share price between March 12 and April 22.



($1 = 0.8885 euros)



(Editing by Keith Weir and Alexander Smith)

Wirecard shares plunge after saying auditor can’t find billions of missing cash
Published: June 18, 2020 By Steve Goldstein

The headquarters of the technology and financial services company Wirecard in Aschheim near Munich, Germany, on September 18, 2018. 


Referenced Symbols
WDI
-66.35%
WCAGY
+5.27%
DAX
-1.13%


Shares in Wirecard lost two-thirds of their value as the German payment processor said on Thursday its auditor can’t find evidence for a quarter of the cash on its balance sheet.


Wirecard WDI, -65.97% WCAGY, +5.27% shares lost 65% as the firm said Ernst & Young said it didn’t have sufficient audit evidence for €1.9 billion euros in cash.
“There are indications that spurious balance confirmations had been provided from the side of the trustee,” the company said.

“Previously issued confirmations by the banks were no longer recognized by the auditor. All parties involved are endeavoring to clarify the matter as quickly as possible,” said Markus Braun, Wirecard chief executive, in a statement. “It is currently unclear whether fraudulent transactions to the detriment of Wirecard AG have occurred.”


Wirecard said the banks managing the escrow accounts are two Asian banks that have investment grade ratings. The trustee, who has been in office since 2019, holds numerous mandates in Asia, Wirecard said.

The DAX DAX, -1.12% component postponed its 2019 annual financial statements for a fourth time, and if not completed by Friday, some €2 billion of loans can be terminated.

It is the latest twist in a long-running saga. The Financial Times reported in October that Wirecard staff appeared to have conspired to fraudulently inflate sales and profit at subsidiaries. Wirecard has denied those charges, while KPMG has conducted a special investigation and said it couldn’t prove the revenue of its third-party acquiring business.

“Even today Wirecard’s long standing CEO Marcus Braun has brazenly tried to portray the company as a victim of fraud and instead tried to focus investors on apparently strong reported revenue growth,” said Barry Norris, manager of the Argonaut Absolute Return Fund, who said the stock was his biggest short position. “During our first-quarter conference call we previously described the company as ‘having more red flags than you would see at a communist rally.’”

Wolfgang Donie, an analyst at NordLB, cut the stock’s rating to sell from hold, and his target price to 20 euros from 80 euros, saying the new allegations are leading to an “existential crisis.”

Germany’s stock-market regulator separately is investigating Braun over insider-trading allegations. Braun held 7% of the stock, according to FactSet data, making him the largest shareholder








Wirecard Bet Hammers Star U.K. Stock Picker


Suzy Waite and Lucca de Paoli
Bloomberg June 18, 2020




(Bloomberg) -- Star U.K. stock picker Alexander Darwall’s investment trust slumped as its biggest holding went into freefall amid accounting concerns.

Wirecard AG accounted for just over 10% of the European Opportunities Trust Plc’s investments as of May 31, according to the website of Devon Equity Management, where Darwall is chief investment officer.

When the German payments firm delayed the release of its annual report for a fourth time on Thursday, shares in Darwall’s trust fell 11.6%. That was the biggest daily drop since 2008.

Devon’s Chief Executive Officer Richard Pavry declined to comment.

Darwall built his reputation over almost a quarter century at Jupiter Fund Management Plc, where he at one time managed nearly 8 billion pounds ($10 billion) focusing on large bets on European firms. Many of his vehicles were heavily invested in Wirecard, which had proven to be a profitable wager for the manager. In the 10 years before Darwall left Jupiter, the German firm’s share price surged from 6 euros to around 150 euros.

Wirecard stock dropped by a record 62% in Frankfurt on Thursday after auditors were unable to find about 1.9 billion euros ($2.1 billion) in cash, causing analysts to question liquidity at the German payments firm.

In January, Darwall apologized to investors of the trust about its large stake in Wirecard, and said at the time he would not have out-sized positions in any stock in the future. He also reiterated his confidence in the stock, despite a number of reports questioning the accounts of the growing business.

Investors pulled 4.5 billion pounds from Jupiter in 2019, which CEO Andrew Formica said was “almost entirely” because of Darwall’s decision to leave. His departure was announced in July last year.

(Updates with closing share prices in 3rd and 6th paragraphs)

©2020 Bloomberg L.P.


SEE


https://plawiuk.blogspot.com/2020/06/wirecard-committed-elaborate-and.html


https://plawiuk.blogspot.com/2020/06/wirecard-fights-for-survival-as.html
FRENEMIES
Viruses: an intimate 'enemy', yet essential for life on EarthBy Patrick Forterre, Morgan Gaïa, Rafa Cereceda • last updated: 20/04/2020

Fire festival in Yunnan, China, where live the species of bat at the origin of the new coronavirus - Copyright AP

As heads of state from around the world wage war against the new coronavirus SARS-CoV-2, defending viruses seems rather like swimming against the tide.

However, understanding viruses may prove essential to deciphering this COVID-19 pandemic, stopping it, and possibly avoiding future epidemics.

Science is just beginning to discover the essential role of viruses for biodiversity, the evolution of species - starting with our own- and even on climate regulation.

The lack of knowledge about viruses is closely related to the history of medical research.

The definition of viruses as we know them, i.e. as agents responsible of infectious diseases, began to emerge in the 19th century, while research focused mainly on their pathogenic aspect. It was not until the end of the 20th century that scientists began to take a closer look at the other roles they might play in life on Earth.

Just as we now accept the presence of "good" bacteria that we can even buy as dietary supplements, viruses act on many (if not all) processes that scientists are only beginning to discover.

What is a virus?

The definition of viruses evolves with technological advances and scientific discoveries. Traditionally, a virus is described as a molecule of genetic information, coated with a shell (the capsid) that protects it.

Some viruses, such as SARS-CoV-2, also have a lipid envelope surrounding their capsid, which explains its sensitivity to handwashing with soap.

SARS-CoV-2, the virus that causes COVID-19 and its envelope.AFP / National Institutes of Health HANDOUT

Viruses can only replicate by infecting a host cell that they reprogram to their own advantage. This lack of autonomy is often at the centre of the still raging debate about whether viruses are living or not.

Long considered as particles smaller than 0.2 µm (micrometer), the discovery of giant viruses in 2003 undermined this certainty.

Viruses are present almost everywhere on Earth and are far more abundant than bacteria. It is estimated that there are at least 10^31 viral particles on our planet at any given time, compared to 10^23 stars in our observable universe.

Viruses can also be infected by other viruses. In 2008, scientists discovered virophages, which can only replicate in cells that are already infected by giant viruses. The replication of these virophages hampers that of the giant virus.
Viruses as regulators of biodiversity

Of course some viruses can, like some bacteria, cause disease in humans, as exemplified by the new coronavirus.

But there are also viruses that target pathogenic bacteria. These can be used to treat diseases of bacterial origin: this is the phagotherapy, a particularly interesting approach at a time when antibiotic resistance is increasing. Commonly used in Georgia, it is the subject of many research projects around the world.

The role of viruses in biodiversity is still largely unknown, despite their omnipresence. The scientific community is just beginning to realise the extent of our ignorance in this area.

Bloom of Emiliana huxleyi algae in the Barents SeaJeff Schmaltz/ NASA Earth Observatory

Take the case of a marine microalga, Emiliania huxleyi. It stores carbon taken from the air by forming a calcareous shell, and episodically multiplies in large quantities.

This massive bloom is then controlled by a virus that kills the algae. The calcite released in this process forms white tides over hundreds of thousands of square kilometres, visible from space.

The calcite containing the carbon then sinks to the bottom of the ocean. Researchers have tried to replicate this phenomenon by killing the algae artificially but found that without the "help" of the virus, this carbon-storing phenomenon is reduced with the algae expelling a larger portion of carbon back into the atmosphere.
A key role in the evolution of species

Beyond their role as predators, viruses also appear to have played a major role in the evolution of many species, including our own.

Indeed, the evolution of mammals has been possible thanks to syncytin, a protein of viral origin derived from an ancient retrovirus (of the same family as HIV) and incorporated into our genetic code. These proteins have evolved to evade our immune system, preventing the mother from rejecting the foetus. So it's a virus that spares us from having to lay eggs!

Another protein of retroviral origin seems to have played a key role in the formation of the nervous system in vertebrates.

The role of viruses in the evolution of living things could go further, as it has been suggested that they may even be behind the appearance of DNA!
The invasion and destruction of ecosystems, key to the emergence of new viruses

If we all cohabit with viruses at all times - to the point of having some of them ‘embedded’ into our genetic code - how can we explain the emergence of an epidemic that is taking the world's health systems by storm and causing the most powerful economies to tilt?

The rapid expansion of this new coronavirus, its effectiveness and its dangerousness, is surprising, leading some to raise conspiracy theories. But, for science, microbiological diversity is broad enough to explain the genesis of such a virus.

Let's draw a rather simplistic parallel with the hypothetical invasion of a new species of dangerous feline in a city centre: rather than imagining a Machiavellian zoo practising genetic manipulation, the most credible lead would be to think that the never-observed-before tawny has gained access to the city centre because of changes that deprive it of feeding and evolving in its natural habitat. The same goes for viruses.

Viruses all have a certain degree of specificity and affinity for a cell type: this will limit viruses to one or more species. But when its environment is modified, the virus can evolve to adapt to new species.

With the reduction of natural spaces (through urbanization, deforestation, etc.), it is not surprising that some viruses end up adapting and infecting humans.

This has already happened several times: it was notably the case for the SARS and MERS epidemics and for the current COVID-19 pandemic. The reservoir species - for which the virus is naturally adapted - appears to be a particular species of bat and this new coronavirus seems to have been transmitted to humans by pangolin.


Will this new coronavirus be eradicated?

It is technically possible to imagine the eradication of SARS-CoV-2, which affects humans, but it is only one type of coronavirus. More generally, therefore, it seems unlikely. COVID-19 disease can be contained, treated and even defeated, but on the scale of the 7 billion humans and animal species in which coronaviruses circulate, it would be better to rely on health systems and societies that are better prepared to deal with this type of pandemic.

Patrick Forterre is a French biology researcher, university professor and scientific writer. He has been Head of Unit and Professor at the Pasteur Institute.

Morgan Gaïa is a researcher on co-evolution between viruses and cells, currently at Génoscope - CEA
Germany needs to do more to tackle the climate crisis. It has a chance now to take the lead

05/06/2020 By Colombe Cahen-Salvador and Andrea Venzon 
Co-founders of Now!

Today is World Environment Day, and countries like Germany are still battling with huge environmental issues caused by decades of disregarding the global crisis that is climate change. In Germany, decades of open-cast mining have led to environmental pollution causing health issues, and our agricultural policy has led to a dramatic loss of biodiversity in our forests and fields. On top of that, Germany opened a new coal-fired power plant last week.

The pandemic has brought many countries to their knees and shifted people’s attention away from another global crisis that will impact billions of people. Climate change has already started destroying not only our planet but our lives, too; more than 22.5 million people per year are forcibly displaced due to extreme weather disasters. By 2050, 140 million more will be added to that figure. Climate change is a ticking bomb that can only be disarmed if we work as one. This sword of Damocles is putting human existence into question.

Following months of lockdown, the future suddenly looks less gloomy. Over the first quarter of 2020, global emissions were down by 5% and global energy demand has declined by 3.8%. This could be one of the biggest reductions in CO2 emissions on record.

The clock is ticking. In less than a month, the world will be watching as Germany chairs the most important intergovernmental organisation on earth. The world will be watching whether Chancellor Merkel's previously strongly-worded declarations on the climate crisis are met with equally powerful actions

However, this is far from being enough. As we speak, governments around the world have prioritised the fight against the virus, and - intentionally or not - abandoned several of their commitments to the climate. In some countries, the situation is worse as passivity leaves room for damaging actions that will put our planet further at risk. It is the case of Canada, where Alberta's energy minister, Sonya Savage said that a ban on public protests due to coronavirus meant that now is a "great time" to build a pipeline. In Germany, Uniper, a company owned by a Finnish state-owned enterprise, opened a coal power station on the edge of Datteln to protests.

Times of crisis are often times of change. The key question is whether Germany will step up to the challenge, whether it will be the progressive force leading the world out of darkness? As the popular saying goes, there is no better time than the present, especially due to Germany’s upcoming role on the international scene. Indeed, July will mark the start of Germany’s semester as the EU Council president, but most importantly, although admittedly more often overlooked, Germany will also chair the United Nations Security Council that month.

While the UN has often been paralysed in recent crises because of its deep divisions and outdated governance structure, the Security Council still holds huge power when the world faces threats to peace or security. As defined by Chapter VII of the UN Charter, a threat to peace (such as climate change) would oblige the UN to make recommendations, or decide which measures to take to counter it. Those decisions would be binding on all member states.

While this treaty article has been largely utilised for war and humanitarian crises, it should now be used to deal with the climate crisis. There is a large consensus that the deterioration of our environment will cause a sharp increase in displacement, famine, and conflicts. As UN Secretary-General, António Guterres has stated: “Today peace faces a new danger: the climate emergency, which threatens our security, our livelihoods and our lives.”

As such, Germany can have a pivotal role in declaring a Global Climate Emergency, which would push the world to acknowledge the existence of this threat, and take necessary steps to counter it. For example, the UN Security Council could demand that all countries stick to the Paris Agreement, or otherwise face sanctions.

The clock is ticking. In less than a month, the world will be watching as Germany chairs the most important intergovernmental organisation on earth. The world will be watching whether Chancellor Merkel's previously strongly-worded declarations on the climate crisis are met with equally powerful actions. Tackling climate change is indeed a matter of survival.

_Colombe Cahen-Salvador and Andrea Venzon are co-founders of Now!, a global movement pushing for humanity to work as one to solve the biggest challenges of our time_
THE OTHER 1%
UN: 1% of all humanity on the move as refugee numbers rise

AP • last updated: 18/06/2020 -

Refugees and migrants wearing masks arrive at the port of Piraeus, near Athens. 11 June 2020. - Copyright
Petros Giannakouris/AP Photo

The UN refugee agency says the number of asylum-seekers, internally displaced people and refugees worldwide shot up by nearly nine million people last year - the biggest rise in its records.

In its annual "Global Trends" report released on Thursday, the Office of the United Nations High Commissioner for Refugees says that the 79.5 million people account for 1% of all humanity amid conflict, repression and upheaval.


UNHCR chief Filippo Grandi points out that of the 79.5 million people forcibly displaced, 68% come from only five countries: Myanmar, Afghanistan, Syria, South Sudan and Venezuela.

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"Which proves the point that if crisis and conflicts were resolved in these countries, most or a big part of the forced displacement problem would be, would be finished, would be resolved", Grandi told The Associated Press on Wednesday.

The surge was chalked up in part to a new way of counting people displaced from Venezuela and "worrying" new displacement in the persistent trouble spots of the Democratic Republic of Congo, the Sahel region of Africa, Yemen and Syria.
Syria

War-torn Syria alone accounted for more than 13 million of those people on the move.

While the total figure of people facing forced displacement rose from 70.8 million at the end of 2018, some 11 million people were "newly displaced" last year, with poorer countries among those most affected.

Grandi said that the global pandemic had had a major impact on refugees and the displaced, as 164 countries either partially or totally closed their borders to fight the new coronavirus.

He explained that many relied on the "informal economy" often involving day work - activities at risk as governments ratchet up lockdowns.

He especially expressed concern about the impact of the new coronavirus in Latin America, where millions of Venezuelans have fled upheaval at home and could face hardship abroad among lockdowns and other restrictive measures to fight the pandemic.


Coronavirus: 657 new cases in German slaughterhouse

GERMANY, AMERICA, ALBERTA MEAT PACKERS ARE SUPER SPREADERS

By Alessio Dellanna & Natalie Huet with AP • last updated: 18/06/2020 - 

A woman walks past a vending machine that offers washable face masks in a station of the subway in Berlin, Germany, Monday, April 27, 2020 - Copyright AP Photo/Michael Sohn


Germany has been hailed as a European success story in the fight against coronavirus, but two new major clusters have put authorities on high alert.

Hundreds of new cases of COVID-19 have been recorded among workers at a slaughterhouse near the western city of Gütersloh in North Rhine-Westphalia.

Regional officials said on Wednesday that the number of new COVID-19 cases linked to the Tönnies slaughterhouse in Rheda-Wiedenbrueck had risen to 657.

Meanwhile, in the capital Berlin, 369 households are back under lockdown after dozens of people tested positive for the virus in the southern district of Neukölln.

"We see from these outbreaks that the virus isn't gone," Chancellor Angela Merkel said as she met with Germany's 16 state governors to discuss progress in tackling the pandemic.

Company officials at Tönnies said the outbreak at the slaughterhouse may have been linked to workers taking the opportunity to visit their families in eastern European countries as border controls were relaxed.

Officials ordered the closure of the slaughterhouse, as well as isolation and tests for everyone else who had worked at the site – putting about 7,000 people under quarantine.

Dozens of people tested positive for COVID-19 in the Berlin outbreak, which involves at least six apartment buildings.

"The special thing here is that it went so incredibly fast," said Mayor Martin Hikel. "We realised quite soon that entire apartment blocks were concerned and that we had to put them under quarantine.

"What's also new and what is special is that the housing conditions are extremely tight, and that it is not easy with eight people in a two-room-apartment to stay out of each other's way or to be locked in for two weeks.

"These are now the very special and difficult challenges we have to face. And that makes the work here very difficult and it is a huge challenge to defuse and pacify the situation on site."

As of Wednesday, Berlin had recorded 7,474 cases of COVID-19 and 210 deaths, according to official figures.

The rise in infections in the city came just days after another cluster, accounting for 112 infections and one death, was reported in the north German city of Bremerhaven, according to Deutsche Welle.

On Tuesday, Germany launched its coronavirus tracking app in an effort to track new infections.

Experts say finding new cases quickly is key to clamping down on fresh clusters, especially at a time when European countries are lifting lockdown restrictions and reopening their borders.

On Monday, Germany opened its borders to travellers from the EU, the UK, Switzerland, Norway, Iceland, Liechtenstein, and the UK.
Destruction of nature is 'driver of pandemics', says WWF
By Euronews • last updated: 18/06/2020 -

In this Nov. 23, 2019 photo, a burned area of the Amazon rainforest is seen in Prainha, Para state, Brazil. - Copyright AP Photo/Leo Correa

Environmental factors including deforestation and the trade and consumption of high-risk wildlife are driving the emergence of pandemics, WWF International warned on Wednesday.

"We must urgently recognise the links between the destruction of nature and human health, or we will soon see the next pandemic," Marco Lambertini, director-general of WWF International said in a statement.

A new report from the environmental NGO lists the trade and consumption of high-risk wildlife, land-use change leading to deforestation and conversion, the expansion of agriculture and unsustainable intensification and animal production as key drivers behind the emergence of zoonotic diseases.

Zoonotic diseases are caused by germs that spread between animals and people. The current COVID-19 pandemic, which has claimed the lives of more than 445,000 people worldwide, is believed to have been transmitted to humans by bats and pangolins.

China, where the virus originated and spread through markets, has since announced a comprehensive ban on the consumption of wild animals.

Viruses: an intimate 'enemy', yet essential for life on Earth

But WWF warned that much more needs to be done.

"Our unsustainable global food system is driving large-scale conversion of natural spaces for agriculture, fragmenting natural ecosystems and increasing interactions between wildlife, livestock and humans," it said.

Its report estimates that between 60% and 70% of the new diseases that emerged in humans over the past 30 years had a zoonotic origin.

During that period, 178 million hectares of forest — equivalent to the size of Libya, the 18th largest country no the world — has been cleared and converted for food or livestock production.

Land conversion for agricultural activities has caused 70% of planetary biodiversity loss and half the loss of tree cover globally to date, the WWF report states.

The NGO is calling on governments to agree on a "New Deal for Nature and People" that would see them take credible action to halt and reverse the loss of biodiversity and set nature on a path to recovery by 2030.

Lambertini described COVID-19 as a "tragedy" but stressed that also provides "an opportunity to heal our relationship with nature and mitigate risks of future pandemics".

"But a better future starts with decisions governments, companies and people around the world take today," he said.


UK companies with historic slave ties fund minority programs
By Danica Kirka The Associated Press
Thu., June 18, 2020

LONDON - Two of Britain’s largest companies have promised to financially support projects assisting minorities as Britain continues to reckon with its role in the slave trade.

Insurance giant Lloyd’s of London and the pub chain Greene King made the pledges after they were included in a University College database of companies with ties to the slave trade.

“Lloyd’s has a long and rich history dating back over 330 years, but there are some aspects of our history that we are not proud of,’’ Lloyd’s said in a prepared statement. “In particular, we are sorry for the role played by the Lloyd’s market in the eighteenth and nineteenth Century slave trade. This was an appalling and shameful period of English history, as well as our own, and we condemn the indefensible wrongdoing that occurred during this period.’’

The pub chain was founded in 1799 by Benjamin Greene. He was among the 47,000 people who received compensation intended for slave owners when the British Empire abolished slavery in 1833. Greene surrendered three plantations in the West Indies for the equivalent of 500,000 pounds ($628,000) in today’s currency.

The database showed that Simon Fraser, a founder subscriber member to Lloyds, was given 400,000 pounds ($502,00) in today’s currency, to surrender an estate in Dominica.

The companies have taken action in the wake of the May 25th death of George Floyd at the hands of police in Minneapolis. A video surfaced of a white police officer pressing a knee to Floyd’s neck for more than eight minutes. U.S. racial equality protests have spread overseas.

Protesters in the English city of Bristol hauled down a statue of Edward Colston, a 17th-century slave trader and philanthropist, and dumped in the city’s harbour.


There are revived calls for Oxford University to remove a statue of Cecil Rhodes, a Victorian imperialist in southern Africa who made a fortune from mines and endowed Oxford University’s Rhodes scholarships.

Greene King’s chief executive Nick Mackenzie told the Daily Telegraph that the company would update its website to mention past connections to slavery. He also offered an apology.

“It is inexcusable that one of our founders profited from slavery and argued against its abolition in the 1800s,” he told the newspaper. “We don’t have all the answers, so that is why we are taking time to listen and learn from all the voices, including our team members and charity partners, as we strengthen our diversity and inclusion work.“


Slavery, colonialism, the industrial revolution – and why Britain really became rich

400 years of British economic history have been reduced to crass Marxist caricature


TYPICAL BRITISH CONSERVATIVE CLAIMING THE MANTLE OF JS MILL'S LIBERALISM

AMBROSE EVANS-PRITCHARD
17 June 2020 •

The slave trade was already deemed unconscionable by the Puritans in the English Revolution

By emotional linkage, the crime of slavery and the larger story of colonialism have been fused into one immense atrocity. From there the indictment has jumped categories into a broader repudiation of four centuries of European and British achievement.

Much of this is unhistorical and corrosive, and has gone unchallenged in Europe itself. It is taken for granted that the collision of world civilisations has been inherently destructive. Many Asians, paradoxically, are more forgiving.

“You shared with the world your beautiful advantages. You shared the gift of reasoning and we learnt from you,” says Kishore Mahbubani, the prophet of Eastern ascendancy and the author of Has the West Lost It?

“If the West had not succeeded, we would not have succeeded. We would still be in extreme poverty.”

The British have long had a collective blind-spot about the industrial scale of the slave trade and the activities of the Royal African Company, as if the subsequent redemption of Wilberforce and Pitt closes the matter, or as if slavery was somehow an ‘American’ saga.

The slave trade was already deemed unconscionable by the Puritans in the English Revolution. A ruling by Cromwell’s state council in 1650 prohibited shipments from the African coast. It was the absolutist Stuarts who brought this curse into our national life – and pursued it systematically – to gain a revenue free from dependence on Parliament.


We should have created a national slavery museum years ago on the site of Elephant & Castle, which happens to be the coat of arms of the Royal African Company, and that is where the Bristol statue of Edward Colston ought to stand.

What is not true is the broader narrative that the Great Enrichment of Europe and Britain in particular was a function of plunder, essentially the zero-sum transfer of wealth from exploited peoples by means of violence from the 16th Century onwards.

This version of events has the causality backwards. Europe achieved supremacy because it had reached technological and economic take-off in a way that no other civilization had ever done before. The roots of this lie in what we can loosely call the Baconian Method, the interrogation of nature to “discover its secrets”, or plain science.

Israeli historian Joel Mokyr argues in The Culture of Growth that there have been many “flourishings” of technology over time but they were mostly incremental forms of know-how – better water mills, or horse collars – and never reached the threshold of ignition. Flirtations with free thought ran into autocratic suppression. 

Protesters throw a statue of Edward Colston into Bristol harbour during a Black Lives Matter protest rally CREDIT: Ben Birchall /PA

These flourishings were of a different character to the Age of Reason in Europe, where a pluralistic market for ideas undermined the suffocating orthodoxies of the unitary Thomist system. This bubbling competition – and an irreverent willingness to challenge settled practice – was itself made possible only by the fractured mosaic of states, all vying to get ahead, and none with sufficient ascendancy to stamp out dissent. The ideological priesthood lost control.

Britain had a peculiar variant. The Origins of English Individualism by anthropologist Alan MacFarlane digs deep into parish records of the 15th-17th Centuries to find a modern society that was largely free of immobile castes – not to be confused with fluid classes – and was quite different even then from most of Continental Europe.


It was governed by political contract and constraint, with remarkable equality between men and women. It had broadly shared values from near top to near bottom. The rule of law generally prevailed.

England had already freed itself from the developmental curse of “amoral familism”, the Cosa Nostra mindset that society is hostile and treacherous, and therefore that moral obligation ends with your own kin. It was a country where people mostly assumed that others were decent and they acted on that basis.

It was this bedrock national character – turbocharged by the parallel advances of Europe’s intelligentsia – that in my view explains why Britain exploded on the world scene in the late Elizabethan age, went on to Bacon and Newton, and from there to the spinning jenny, the steam engine, and Faraday’s electricity.

“The British Industrial Revolution of the late eighteenth century unleashed a phenomenon never before even remotely experienced by any society,” says Prof Mokyr. It was not a foreordained advance. It was the result of a rare cultural alchemy. 

YOUR CHOICE HISTORICAL MATERIALISM OR CONSERVATIVE METAPHYSICS
I'LL TAKE DIALECTICS THANKS

Behind the great leap forward was the Common Law, the sanctity of contract, the respect of patents, and that unsung hero, the joint stock company, which distributed risk and allowed for creative failure. The trade doctrines of Adam Smith opened minds to the concept of expandable wealth and liberated us from the extractive and inert psychology of mercantilism.

Fractional reserve banking made possible an unprecedented expansion of credit. Deep bond markets vastly increased the ability of the state to sustain long endeavours. The Bank of England regulated the liquidity of commerce with modern sophistication even in the 1690s. These were the springs of British prosperity.

The history of imperialism is taught today as a catalogue of outrages but such a narrow focus is not illuminating. There were too many variants to reach any sweeping conclusion. I learned my version at the feet of the Indian historian Anil Seal at Cambridge, and the story he taught was that the British empire in India took over the existing Mughal administration lock, stock, and barrel, one set of foreigners displacing another.

It rested on alliances with ruling princes. It evolved through many iterations – each starkly different – and the core objective was trade and captive markets, not the same as extraction, nota bene. It is for Indians to judge the moral quality of the Raj in all its aspects with the distance of time. I doubt that hard-Left agitators bent on tearing down every vestige of colonialism in London have much grasp of the subject.

All great protests have a specific objective: Catholic emancipation; the vote for suffragettes; or the US civil rights movement, targeting the legal architecture of racial segregation that still existed in the 1950s and early 1960s. The Black Lives Matter movement – and especially its sympathy protests in Europe – is rich in emotion but frustratingly unfocussed by comparison. 

THEY SHOULD HAVE AN OBJECT TO ACHIEVE, ACHIEVEMENT BEING THE HIGHEST ORDER OF A BOURGEOIS MERITOCRACY SAME THING DROVE THE MEDIA COO COO WITH OCCUPY

America has been striving for half a century to overcome the legacy of racial injustice and the sort of reflexes that led to the police killing of George Floyd. That is what Lyndon Johnson’s Great Society was all about. Failure is not entirely for lack of trying. That is what makes this case so doubly sad.

But at the risk of sounding old-fashioned: all lives matter. British society should be wary of entering too deeply into this sort of race politics. 

OH FUCK OFF YOU TWAT

A colour-blind social and political system – all equal in the eyes of the law and the state institutions – took a long time coming and is a shining feature of modern liberal democracies. I reject the fashionable argument that defence of this ideal is implicitly racist, supposedly because it justifies a status quo of exploitation, to borrow from Marxist diction.

MARX LIVED IN BRITAIN HE KNEW IT QUITE WELL AT ITS TIME THANKS


We have moved through the gears from the goal of equal opportunity, to the goal of equal outcomes, and from there to the jurisprudence of hate crimes, with different prison tariffs depending on racial motive, arriving at a point where everything is filtered through the prism of race and sectoral interests.

Whether they know it or not, proponents of our “re-racialised” society are drawing on the toolkit of empires through the ages. Imperial systems manage their ethnic and religious cauldrons with a panoply of special codes, protections, laws, and classifications.

Such a method of governance is inimical to liberal values. We risk coming full circle.


IMPERIALISM WAS NOT A COMMONPLACE TERM ONE HUNDRED YEARS AGO UNTIL ENGLISH HISTORIAN HOBSON WROTE ON IT AND LENIN EXPANDED ON THAT