Friday, May 08, 2020

Coronavirus Has Made China a 'Juicy' Target for Trump, Bremmer Says

Apr.20 -- Ian Bremmer, founder and president of Eurasia Group and GZERO Media, says the U.S. was late to protecting against coronavirus because of China's cover-up of the pandemic. He speaks with Bloomberg's Amanda Lang and Shery Ahn on "Bloomberg Markets."

Closing pot stores amid pandemic could 're-stigmatize' the industry: Former Canopy CEO

Bruce Linton, executive chairman of Vireo Health and former chairman and co-CEO at Canopy Growth joins BNN Bloomberg to weigh in on the challenges facing the cannabis sector amid the COVID-19 pandemic. 

He says that the closing of cannabis stores in Ontario could "re-stigmatize" the industry and reinvigorate the illicit market's supply chain.


Ontario pot orders surge amid quarantine

New data by the Ontario Cannabis Store shows online cannabis orders have surged 600 per cent since the beginning of March, as the country deals with the COVID-19 pandemic. BNN Bloomberg's David George-Cosh has the details.


CANADA

Wage-subsidies to be extended as steep job losses continue: Trudeau



OTTAWA - Prime Minister Justin Trudeau says the federal government's emergency wage-subsidy program will be extended beyond its early-June endpoint.

The program covers 75 per cent of worker pay up to $847 a week to try to help employers keep employees on the job in the face of steep declines in revenue due to the COVID-19 pandemic.

In an announcement in Ottawa, Trudeau said more details on the extension will come next week.

The Canadian economy lost almost two million jobs in April, a record high, as the closure of non-essential services to slow the spread of COVID-19 forced businesses to shutter temporarily.

The loss of 1,993,800 comes on top of more than one million jobs lost in March, and millions more having their hours and incomes slashed.


COVID-19 AND THE WORKFORCE
With some seeing more income than before, does the CERB need tweaking?
How employers can avoid backlash from COVID-19 layoffs
COVID-19 jobs tracker: Layoffs, furloughs and hiring during the pandemic

The unemployment rate soared to 13 per cent as the full force of the pandemic hit, compared with 7.8 per cent in March, Statistics Canada reported Friday morning, as the full force of the pandemic hit.

It was the second-highest unemployment rate on record as job losses spread beyond the service sector to include construction and manufacturing.

Economists on average had expected the loss of four million jobs and an unemployment rate of 18 per cent, according to financial markets data firm Refinitiv.

The unemployment rate would have been 17.8 per cent had the agency's labour force survey counted among the unemployed the 1.1 million who stopped looking for work - likely because the COVID-19 economic shutdown has limited job opportunities.

In all, more than one-third of the labour force didn't work or had reduced hours in April, an “underutilization rate” that was more than three times higher than in February before the pandemic struck.

“Canadians should be confident that we will do whatever we can to ensure that their jobs are safe as we continue to fight the global COVID-19 outbreak,” a trio of federal cabinet ministers said in a joint statement this morning in response to the jobs report.

“As provinces and territories begin to lift restrictions and our government continues to take steps towards economic recovery, we will be there for Canadians.”

Vulnerable workers who tend to have part-time or temporary work, or in low-paying jobs have been particularly impacted with heavy job losses. Women have seen larger job losses overall, but the number of men out of work in April closed the gender gap in cumulative unemployment losses.

Nearly all of the job losses for men since February were in full-time work, compared to 69.9 per cent for women.

“This, combined with the different industries in which men and women have lost their jobs - for example, more job losses among men have been in construction, and fewer have been in retail trade - signals that the challenges associated with recovering from the COVID-19 economic shutdown may be different for women and men,” the labour force survey says.


GOVERNMENT SPENDING
Trudeau's Liberal ideals now face a fundamental challenge
Feds to cover 'top ups' for front-line workers on minimum wage
Trudeau pledges $252M for COVID-19 aid to agriculture

In March, health restrictions forced the closure of non-essential businesses, leading to layoffs and cuts in work hours as companies tried to manage costs without enough or any revenue coming in.

Smaller companies - defined as those with less than 20 employees - have shed 30.8 per cent of their workers, medium-sized firms have let 25.1 per cent of workers go, and large companies have seen employment decline by 12.6 per cent.

Hard-hit sectors at the outset include retail, hotels, restaurants and bars, which continued to see losses in April. The losses in the service sector continued in April, down 1.4 million or 9.6 per cent, Statistics Canada says.

Proportionally, the losses were greater in goods-producing sectors like construction and manufacturing, which combined lost 621,000 jobs for a drop of 15.8 per cent after being virtually unchanged in March.

Job losses in April were spread across all provinces, with Quebec particularly hard-hit. The unemployment rate in the province climbed to 17 per cent, the highest rate among all provinces and the highest rate for Quebec itself in over more than four decades of comparable data

GOOGLE CELEBRATES GROUP OF SEVEN CENTENNIAL


  1. New stamps, digital project mark centenary of Group of Seven's debut  CBC.ca
On the 100th anniversary of the Group of Seven's inaugural exhibit, the influential art collective is being recognized with efforts putting their distinctively Canadian paintings in front of a fresh crop of art lovers.





 
The Group of Seven staged its first formal exhibition at the Art Gallery of Toronto 100 years ago


Canada sees record job losses in April, shedding almost 2M positions

Erik Hertzberg, Theophilos Argitis and Shelly Hagan, Bloomberg News
The Open Canadian jobs report is 'devastating': Frances DonaldThe Canadian economy shed just under two million jobs last month, and while that was far short of estimates, Frances Donald, chief economist at Manulife Investment Management, says it's a "devastating" result. She says it doesn't fully reflect the severity of the economic pain that many Canadians are experiencing.


Now Showing 

3:29
Difficult road ahead following employment shock


Canada lost 2 million jobs in April as a result of pandemic-related shutdowns, by far the biggest decline on record but only about half what economists had expected.

The drop in employment adds to the 1 million decline in March. The jobless rate jumped to 13 per cent in April, the agency said Friday in Ottawa. Economists were anticipating a loss of 4 million jobs last month, with the unemployment rate rising to 18 per cent.

The data provide the most complete picture yet of how nationwide lockdowns are affecting the Canadian economy, which has been hammered by two shocks -- the COVID-19 pandemic and tumbling oil prices that have devastated the energy sector.

Bloomberg News first reported the 2 million job loss figure earlier Friday morning, citing a person familiar with the data who spoke on condition of anonymity. The Canadian dollar gained on the news, rising 0.2 per cent to $1.3941 per U.S. dollar at 8:10 a.m.

READ MORE: BNN Bloomberg's jobs tracker

Business closures have also been more widespread than in the U.S. European economies meanwhile have seen the effect of job losses mitigated by generous furlough programs, a policy that is only now being rolled out in Canada.

But Friday’s numbers suggest government measures are working to cushion the blow.

A new wage subsidy program is expected to entice companies to bring back some workers, while provinces have begun outlining plans to reopen parts of the economy to allow more businesses to operate in the coming weeks.


RELATED
U.S. jobless rate triples to 14.7% in sharpest labour downturn


Pattie Lovett-Reid: Bleak jobs report shows extent of virus’ economic devastation

About 7.6 million Canadians -- or more than one-third of the pre-crisis labor force -- have applied for benefits under the Canada Emergency Response Benefit, which pays recipients $2,000 per month.

The government allows people to earn as much as $1,000 a month while still drawing the benefit, which may have kept more people employed than anticipated, the person said.

Job-posting data also suggest the labour market carnage may have plateaued. While postings are down significantly on a year-over-year basis, they started to level off toward the end of April, figures from Indeed Canada show. Another strong signal is that the number of people seeking income benefits seems to have peaked.

Yet, it’s unclear how quickly the economy will recover given the unprecedented scale of the downturn and the anxious mood among consumers. A recent survey found more than one in three Canadians anticipate spending less on discretionary items than they did pre-crisis, even after lockdowns lift.

The nation also relies more heavily on small and medium-sized businesses that are less resilient to a shock this size.

Aldo Group today announced that it has filed for bankruptcy, blaming the COVID-19 crisis for hurting its financial position.
Montreal-based shoe chain Aldo Group is seeking protection from its creditors in Canada, the United States and Europe because of disruptions caused by COVID-19.Montreal-based shoe chain Aldo Group is seeking protection from its creditors in Canada, the United States and Europe because of disruptions caused by COVID-19
http://glbnews.com/url.html?p=https://footwearnews.com/2020/business/financial-news/aldo-group-bankruptcy-1202981570/

CNW Telbec/ - The ALDO Group Inc. ("ALDO" or the "Company") announced today that it sought and obtained an Initial Order (the "Initial Order") pursuant to the.../CNW Telbec/ - The ALDO Group Inc. ("ALDO" or the "Company") announced today that it sought and obtained an Initial Order (the "Initial Order") pursuant to the...
NEWS COVERAGE OF ALDO 

IS THE CANADIAN PENSION PLAN SAFE?

AFTER THE NEIMAN MARCUS BANKRUPTCY

CPP IS THE OWNER





With Neiman Marcus bankruptcy, CPPIB's investment wiped out
https://www.pressreader.com › canada › the-globe-and-mail-bc-edition
1 hour ago - CPPIB partnered with Los Angeles-based Ares Management to buy Neiman Marcus, which also owns Bergdorf Goodman and the Last Call ...


News Today | Neiman Marcus Bankruptcy: Debt And ...
https://www.facttehz.com › News Today › trend › World news
6 hours ago - News Today | Neiman Marcus Bankruptcy: Debt And Coronavirus Aren't ... in the present day's chapter submitting a “blow” to Ares and CPPIB.




Neiman Marcus's bankruptcy filing wipes out Canada Pension ...
https://www.theglobeandmail.com › business › article-neiman-marcuss-ban...
17 hours ago - Neiman Marcus, not CPPIB and Ares, was the borrower. Leveraged buyouts are a large part of CPPIB's private equity investing program. The ...


CPP-owned retailer Neiman Marcus files for bankruptcy ...
https://www.nationalnewswatch.com › 2020/05/07 › retailer-neiman-marcu...
20 hours ago - Luxury retail chain was bought by consortium that includes Canada Pension Plan Investment Board in 2013. Neiman Ma\rcus, the 112-year-old ...


Neiman Marcus Bankruptcy: Debt And Coronavirus Aren't The ...
https://www.forbes.com › sites › pamdanziger › 2020/05/07 › neiman-mar...
21 hours ago - The Wall Street Journal calls today's bankruptcy filing a “blow” to Ares and CPPIB.

Neiman Marcus Files for Bankruptcy, Plus More Retailers ...
https://people.com › Style
21 hours ago - Neiman Marcus Files for Bankruptcy, Plus More Retailers Facing Financial ... Corp and Canada Pension Plan Investment Board (CPPIB).

ytheresa Distances Itself From Bankrupt Parent Neiman ...
https://www.pressenterpriseonline.com › bfegshop › business › retail › myt...
22 hours ago - Why Mytheresa Is Not Part of Parent Neiman Marcus' Bankruptcy ... with about $6 billion in debt after its 2013 purchase by Ares and the CPPIB.


Friday, May 8, 2020 from Luxury Daily Register now for Luxury ...
feed.informer.com › widgets
Thursday, May 7, 2020 from CPP-LUXURY. Neiman Marcus Group filed for Chapter 11 bankruptcy Thursday in Texas, becoming the highest-profile retail ...

APRIL

Exclusive: Investors to challenge Neiman Marcus bankruptcy ...
https://www.channelnewsasia.com › news › business › exclusive--investors...
Apr 28, 2020 - CPPIB did not immediately respond to a request for comment. Like other brick-and-mortar department store operators, Neiman Marcus struggled ...

Neiman Marcus Becomes Covid-19's First Major Retail Casualty
https://finance.yahoo.com › news › neiman-marcus-becomes-covid-19s-22...
Apr 24, 2020 - (NYSE:ARES) and the Canada Pension Plan Investment Board (CPPIB), is preparing to file for bankruptcy after missing a $72 million interest ...

Will Neiman Marcus Sting CPPIB and OMERS? - Pension Pulse
https://pensionpulse.blogspot.com › 2020/04 › will-neiman-marcus-sting-c...
Apr 24, 2020 - Neiman Marcus could file for bankruptcy as soon as Sunday and is in talks with its current lenders about raising roughly $600 million in ...

Should Neiman Marcus Exist? – Texas Monthly
https://www.texasmonthly.com › More Stories › News
Apr 24, 2020 - Luxury specialty stores—like Neiman Marcus, its sister brand Bergdorf ... acquired the Neiman Marcus Group (comprising Neiman's itself, its Last ... a handsome exit by selling to Ares Management and the CPPIB for $6 billion.

Virus hit Neiman Marcus to file for bankruptcy, owes US$4.8bil ...
https://www.klsescreener.com › news › view › virus-hit-neiman-marcus-to-...
Apr 20, 2020 - Neiman Marcus Group is preparing to seek bankruptcy protection as soon as this ... Corp and Canada Pension Plan Investment Board (CPPIB).

Neiman Marcus to File for Bankruptcy | Voice of America ...
https://www.voanews.com › covid-19-pandemic › neiman-marcus-file-ban...
Apr 19, 2020 - Neiman Marcus and Ares declined to comment, while CPPIB representatives did not immediately respond to requests for comment. Other ...

Exclusive: Neiman Marcus to file for bankruptcy as soon as ...
https://www.reuters.com › article › us-neimanmarcus-bankruptcy-exclusive
Apr 19, 2020 - Neiman Marcus and Ares declined to comment, while CPPIB representatives did not immediately respond to requests for comment. The signage ...

Neiman Marcus may seek bankruptcy protection | CBC News
https://www.cbc.ca › news › business › neiman-marcus-1.5520199
Apr 3, 2020 - Canada's national pension plan CPP was part of a group that bought Neiman Marcus for $6 billion US in 2013. The retailer is considering filing ...


HUFFINGTON POST CANADA CPPIB STORIES
https://www.huffingtonpost.ca/news/cppib/

CPP Investment Board - Wikipedia
https://en.wikipedia.org › wiki › CPP_Investment_Board
The Canada Pension Plan Investment Board operating as CPP Investments (French: RPC ... Notable investments include 50% of the American pet store chain Petco, 50% of American luxury department store chain Neiman Marcus, 50% of Australian ... In 2012 CPPIB acquired a 45% stake in ten shopping centers and two ...

CPP Investment Board - Wikiwand
https://www.wikiwand.com › CPP_Investment_Board
The Canada Pension Plan Investment Board , operating as CPP Investments , is a ... store chain Petco, 50% of American luxury department store chain Neiman Marcus, ... In 2012 CPPIB acquired a 45% stake in ten shopping centers and two ...



NEIMAN MARCUS HAS BEEN AN ALBATROSS SINCE CPPIB BOUGHT IT

Neiman Marcus - Wikipedia
https://en.wikipedia.org › wiki › Neiman_Marcus
Neiman Marcus Group, Inc., originally Neiman-Marcus, is an American chain of luxury ... Ares Management (50%); CPP Investment Board (50%). Number ... The company filed for bankruptcy on May 7, 2020 due to high debts and the 2019–20 ...
Owner‎: ‎Ares Management‎ (50%); ‎CPP Invest...
Founders‎: ‎Carrie Marcus Neiman‎, ‎Herbert Mar...
Number of locations‎: ‎42
Number of employees‎: ‎14,300 (2017)

Neiman Marcus" headlines | Every Source, Every ... - NewsNow
https://www.newsnow.co.uk › search="Neiman+Marcus"

The Neiman Marcus Bankruptcy: Separating The Myths From The Realities. Forbes 15: ... CPP-owned retailer Neiman Marcus files for bankruptcy CBC.ca 08:

2019

The Fed Calls it “Collateral Stripping.” These PE Firms Took it ...
https://wolfstreet.com › 2019/06/12 › the-fed-calls-it-collateral-stripping-th...
Jun 12, 2019 - Private-equity owned Neiman Marcus disclosed two things on ... Ares and CPPIB have now taken collateral stripping to the next level, from a ...

CPPIB Capital Inc. Canada Pension Plan Investment Board
https://www.ise.ie › debt_documents
Jun 7, 2019 - The Issuer is a wholly-owned subsidiary of CPPIB and was ... Neiman Marcus Group, Livingston International, 99 Cents Only Stores, The Gates ...

Ares mulls GP-led restructuring of Neiman Marcus fund ...
https://www.secondariesinvestor.com › News & Analysis
Mar 26, 2019 - Among the remaining assets in the fund is Neiman Marcus, which ACOF III and Canada Pension Plan Investment Board acquired for around $6 ...

2018

Neiman Marcus Charged in Court with, among Other ...
https://www.prnewswire.com › news-releases › neiman-marcus-charged-in-...

Dec 10, 2018 - PRNewswire/ -- Neiman Marcus Group, Inc. ("the Parent") and related ... These assets were stripped from its insolvent subsidiary Neiman Marcus ... Board ("CPPIB"), which are the beneficial owners of Neiman Marcus Group, ...

Neiman Marcus Seeks Debt Restructuring To Avoid Bankruptcy
https://retailtouchpoints.com › features › news-briefs › neiman-marcus-see...
Oct 25, 2018 - In 2013, Ares Management and Canadian public pension fund CPPIB acquired Neiman Marcus from two other private equity firms for $6 billion.

Neiman Marcus debtholder calls out CPPIB for asset transfer
https://www.benefitscanada.com › pensions › other-pensions › neiman-mar...
Martha Porado | September 24, 2018 He suggests the sale of the MyTheresa business, as well as real estate owned by Neiman Marcus, would be the better option and would benefit all stakeholders in ..

Bondholder says Neiman Marcus might default - FashionUnited
https://fashionunited.ca › news › business › bondholder-says-neiman-marc...
Sep 21, 2018 - Things aren't looking pretty for Neiman Marcus. ... firms, acquired Neiman Marcus for 6 billion in 2013, leaving the company with 4.7 billion dollars in debt. ... from the creditors of the company and (gifts it) to Ares and CPPIB.

Neiman Marcus bondholder says company may be in default .
https://www.reuters.com › article › neiman-marcus-bondholder-says-comp...
Sep 21, 2018 - Buyout firm Ares Management LP and the Canada Pension Plan Investment Board (CPPIB) acquired Neiman Marcus for $6 billion in 2013, ...

Andrew Coyne on Twitter: "CPPIB paid $6-billion for luxury ...
https://twitter.com › acoyne › status
Jan 22, 2018 - CPPIB paid $6-billion for luxury retailer Neiman Marcus. The bet backfired. - The Globe and Mail ...

CPPIB paid $6-billion for luxury retailer Neiman Marcus. The ...
https://www.theglobeandmail.com › streetwise › article37678127
Jan 21, 2018 - When CPPIB bought Neiman Marcus, which operates 42 of its brand name stores across the U.S., as well as two Bergdorf Goodman department ..

2017


Debt-laden Neiman Marcus abandons hope of a sale ...
https://www.todayonline.com › business › upscale-retailer-neiman-marcus-...
Jun 13, 2017 - U.S. department store operator Neiman Marcus said on Tuesday it had ... public pension fund CPPIB acquired it from other private equity firms.
Neiman Marcus' troubles run deeper than Amazon or other 
https://www.dallasnews.com › business › retail › 2017/04/20 › neiman-mar...
Apr 20, 2017 - CPPIB and Ares bought it from Fort Worth-based TPG and New York-based Warburg Pincus, investment firms that took Neiman Marcus private ...

CPPIB faces a challenge with its US$6 billion luxury retail ...
https://business.financialpost.com › FP Street › News
CPPIB faces a challenge with its US$6 billion luxury retail acquisition Neiman Marcus. Barry Critchley. March 9, 2017 5:12 PM EST. Filed under:.

Neiman Marcus reportedly hires debt restructuring adviser ..
https://ww.fashionnetwork.com › news › Neiman-Marcus-reportedly-hires-d...
Mar 3, 2017 - N) and CPPIB, acquired it from other private equity firms. Following the news of Lazard's hiring by Neiman Marcus, some Neiman Marcus ...

2016

Opinion | Some Canada Pension Plan investments that might ...
https://www.yorkregion.com › opinion-story › 6498086-some-canada-pensi...
Apr 14, 2016 - In March, CPPIB bought more student housing, this time in Britain. Liberty Living ... CPPIB ownership: Equal majority stake in Neiman Marcus.

2015
Canadian Pension Plan and Permira to Buy Informatica in ...
https://www.nytimes.com › informatica-agrees-to-5-3-billion-buyout
Apr 8, 2015 - ... Canada Pension Plan Investment Board are acquiring the enterprise software ... investments in Neiman Marcus, Univision and other big companies. ... Permira and C.P.P.I.B. share both our vision for Informatica to power the ...

2014
Neiman Marcus not coming to Canada after all - Toronto Life
https://torontolife.com › style › shopping › neiman-marcus-not-coming-to-...
Jan 9, 2014 - Neiman Marcus not coming to Canada after all ... retailer was recently bought by the Canadian Pension Plan Investment Board. ... Instead, Neiman Marcus is planning for ultra-conservative expansion, ... The current scandal where Neiman Marcus perjured itself in front of our Congress is a disgrace. CPPIB.

2013

NEIMAN MARCUS NOT LIKELY TO OPEN IN CANADA ...
https://www.retail-insider.com › retail-insider › tail-insider.com › 2013/09
Sep 10, 2013 - CCP's purchase of Neiman Marcus makes for a substantial number of international department stores owned either wholly or partly by Canadian ...

Ares and CPPIB acquire Neiman Marcus for $6bn | Private ...
https://www.privateequityinternational.com › ares-and-cppib-acquire-neim...
Sep 10, 2013 - Ares and CPPIB acquire Neiman Marcus for $6bn ... Investment Board have agreed to buy luxury retailer Neiman Marcus for about $6 billion.

Neiman Marcus sold for $6 billion to Canada Pension Plan ...
https://www.reuters.com › article › us-neimanmarcus-ares › neiman-marcu...
Sep 9, 2013 - The owners of Neiman Marcus Inc agreed to sell the U.S. luxury ... the Canada Pension Plan Investment Board (CPPIB), said on Monday they ... In July, Hudson Bay Co bought Saks Fifth Avenue, another storied U.S. retailer.

Ares Management and Canada Pension Plan Investment ...
https://www.cppinvestments.com › headlines › cppib-ares-neiman
... Plan Investment Board Complete Acquisition of Neiman Marcus Group ... Canada Pension Plan Investment Board (CPPIB) is a professional investment ...

SEC EDGAR FILING
EX-99.1 2 a13-21743_3ex99d1.htm EX-99.1 Exhibit 99.1 ..
https://www.sec.gov › Archives › edgar › data
Neiman Marcus Group LTD Inc. Prices Offering of $960 Million of 8.00% Cash ... Canada Pension Plan Investment Board (“CPPIB”) (the “Acquisition”) and will ..




Leningrad siege survivor supplies needy amid pandemic

By IRINA TITOVA

1 of 11

In this photo taken on Thursday, April 30, 2020, Galina Yakovleva holds an origami swan made by her, near her van in St.Petersburg, Russia. Every day amid the coronavirus pandemic, 80-year-old Leningrad siege survivor Galina Yakovleva has driven to the city in her white minivan to bring charity groceries and goods to elderly people and families with children in need. (AP Photo/Dmitri Lovetsky)


ST. PETERSBURG, Russia (AP) — As a child during the World War II siege of Leningrad, Galina Yakovleva learned how to make the best of fearful times. Today she’s using those lessons as she brings food and supplies to needy people locked down in the coronavirus pandemic.

The 80-year-old drives a white minivan every day through the city, now named St. Petersburg, on a one-woman charitable mission for the elderly and needy families with children. She’s been doing this for a decade and hasn’t let the virus deter her.

“I’m not afraid of it; I drive my van alone,” she said. “My soul does not let me leave all my people in need without attention.”

“I have arrangements with certain food stores and grocery depots on certain dates of the month. So if I don’t pick up what I am to get, that food will get spoiled and people who need it won’t get it.”

Wasting food is abhorrent to someone who went through the privations of the 1941-44 siege, when the city came under bombardment from Nazi forces, supply lines were cut off and some 800,000 civilians died.

“We never threw away anything. … How can you throw away bread?” she said.

Her kindergarten she attended was bombarded, forcing her and some other children to hide in a cast iron pipe. The shock was so great that she didn’t speak for year afterward, she says.

In adulthood, Yakovleva held several jobs in which she learned skills that she now uses to collect and distribute aid: She variously drove a tractor, an ambulance and a trolley bus.

Yakovleva organized her Dobrota (Kindness) Foundation about 10 years ago to help socially disadvantaged people. She built connections with the city food stores, bakeries, farms and even theaters.


The operation is a lifeline for more than 500 people.

Her activities haven’t changed much during the pandemic, except for some adjustments in picking up and delivering the goods. Men now load her van without direct contact with her and she sometimes leaves her deliveries at a doorstep.

But many of her care recipients still open the door for her and want to communicate.

“I don’t know how I’d live here indoors for a month if not for Galina. She brings me milk, bread, everything so I won’t die from hunger”, said Lyubov Travkina, 83. “I’m amazed. This person lives only for others, not for herself.”

“We should always think of helping others, at least a bit. Not just lie on the sofa,” Yakovleva said.



While nonstop global news about the effects of the coronavirus have become commonplace, so, too, are the stories about the kindness of strangers and individuals who have sacrificed for others. “One Good Thing” is an AP continuing series reflecting these acts of kindness.

AP

SHOSTAKOVICH SYMPHONY #7 LENINGRAD 

Jobless rate spikes to 14.7%, highest since Great Depression


SOMETHING ELSE FOR TRUMP TO BRAG ABOUT


WASHINGTON (AP) — The U.S. unemployment rate hit 14.7% in April, the highest rate since the Great Depression, as 20.5 million jobs vanished in the worst monthly loss on record. The figures are stark evidence of the damage the coronavirus has done to a now-shattered economy.

The losses, reported by the Labor Department Friday, reflect what has become a severe recession caused by sudden business shutdowns in nearly every industry. Nearly all the job growth achieved during the 11-year recovery from the Great Recession has now been lost in one month.

The report indicated that the vast majority of April’s job losses — roughly 90% — are considered temporary, a result of businesses that were forced to suddenly close but hope to reopen and recall their laid-off workers. Whether most of those workers can return to their jobs anytime soon, though, will be determined by how well policymakers, businesses and the public manage their response to the public health crisis.

The collapse of the job market has occurred with stunning speed. As recently as February, the unemployment rate was a five-decade low of 3.5%, and employers had added jobs for a record 113 months. In March, the unemployment rate was just 4.4%


The jump in the unemployment rate didn’t capture the full devastation wrought by the business shutdowns. The Labor Department said its survey-takers erroneously classified millions of Americans as employed in April even though their employers have closed down. These people should have been classified as on temporary layoff and therefore unemployed. If they had been counted correctly, the unemployment rate would have been nearly 20%, the government said.

President Donald Trump, who faces the prospect of high unemployment rates through the November elections, said the figures were “no surprise.”

“What I can do is I’ll bring it back,” Trump said. “Those jobs will all be back, and they’ll be back very soon. And next year we’ll have a phenomenal year.”

But economists increasingly worry that it will take years to recover all the jobs lost. The nonpartisan Congressional Budget Office expects the jobless rate to be 9.5% by the end of 2021.



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FILE - In this May 7, 2020 file photo, a pedestrian walks by The Framing Gallery, closed due to the COVID-19 pandemic, in Grosse Pointe, Mich. The U.S. unemployment rate hit 14.7% in April, the highest rate since the Great Depression, as 20.5 million jobs vanished in the worst monthly loss on record. The figures are stark evidence of the damage the coronavirus has done to a now-shattered economy.. (AP Photo/Paul Sancya, File)

The government’s report noted that many people who lost jobs in April but didn’t look for another one weren’t even counted in the unemployment rate. Their exit helped drive down the proportion of working-age Americans who were employed in April: It’s now just 51.3%, the lowest proportion on record.

In addition to the millions of newly unemployed, 5.1 million others had their hours reduced in April. That trend, too, means less income and less spending, perpetuating the economic downturn. A measure of what’s called underemployment — which counts the unemployed plus full-time workers who were reduced to part-time work — reached 22.8%, a record high.

Though some businesses are beginning to reopen in certain states, factories, hotels, restaurants, resorts, sporting venues, movie theaters and many small businesses are still largely shuttered. As companies have laid off tens of millions, lives have been upended across the country.

One of the newly unemployed, Sara Barnard, 24, of St. Louis, has lost three jobs: A floor manager at a pub and restaurant, a bartender at a small downtown tavern and the occasional stand-up comedian. Her main job was at McGurk’s, an Irish pub and restaurant near downtown that closed days before St. Patrick’s Day. She had worked there continually since high school.


McGurk’s tried selling food curbside, Barnard said, but it was costing more to keep the place open than the money that was coming in. Around that time, the bar where she worked closed, and comedy jobs ended when social distancing requirements forced clubs to close.

McGurk’s is a St. Louis landmark, and Barnard expects it to rebound quickly once it reopens. She just doesn’t know when.

Job losses and pay cuts are ranging across the world. Unemployment in the 19-country eurozone is expected to surpass 10% in coming months as more people are laid off. That figure is expected to remain lower than the U.S. unemployment rate. But it doesn’t count many people who either are furloughed or whose hours are cut but who receive most of their wages from government assistance.


In France, about half the private-sector workforce is on a government paid-leave program whereby they receive up to 84% of their net salary. In Germany, 3 million workers are supported in a similar system, with the government paying up to 60% of their net pay.

In the five weeks covered by the U.S. jobs report for April, 26.5 million people applied for unemployment benefits.

The job loss reported Friday was a smaller figure because the two are measured differently: The government calculates job losses by surveying businesses and households. It’s a net figure that also counts the hiring that some companies, like Amazon and many grocery stores, have done. By contrast, total jobless claims are a measure of just the layoff side of the equation.


For the United States, a key question is where the job market goes from here. Applications for unemployment aid, while high, have declined for five straight weeks, a sign that the worst of the layoffs has passed. Still, few economists expect a rapid turnaround.

A paper by economists at the San Francisco Federal Reserve estimates that under an optimistic scenario that assumes shutdowns are lifted quickly, the unemployment rate could fall back to about 4% by mid-2021.

But if shutdowns recur and hiring revives more slowly, the jobless rate could remain in double-digits until the end of 2021, the San Francisco Fed economists predict.

Raj Chetty, a Harvard economist, is tracking real-time data on the economy, including consumer spending, small business hiring and job postings. Chetty noted the economy’s health will hinge on when the viral outbreak has subsided enough that most Americans will feel comfortable returning to restaurants, bars, movie theaters and shops.

The data suggests that many small businesses are holding on in hopes that spending and the economy will rebound soon, he said. Small business payrolls have fallen sharply but have leveled off in recent weeks. And job postings haven’t dropped nearly as much as total jobs have. But it’s unclear how much longer those trends will persist.

“There’s only so long you can hold out,” Chetty said.


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