• Business

    With 735,000 Jobs Lost, Rich Nordic Nations Are in Shock

    (Bloomberg) -- In one of the richest and stablest corners of the globe, about three-quarters of a million people are suddenly out of a job due to the economic standstill triggered by the spread of the coronavirus.With a combined population of roughly 27 million people, the Nordic region has seen almost 630,000 workers put on temporary leave in recent weeks, many without paychecks. Another roughly 105,000 have been fired, according to calculations by Bloomberg based on company statements and data provided by national authorities as of Monday.The head of the Confederation of Norwegian Enterprise, Ole Erik Almlid, likened the development to “a tsunami” that’s rolled over the country’s businesses. “And it’s getting worse,” he said.Knut Hallberg, senior economist at Swedbank, said the situation across the entire Nordic region is “severe.”Nordic populations rely on generous welfare states that ensure those dropping off payrolls still get some form of monthly support. And the region’s universal health care and free education add an additional layer of security. But even with those safety nets, the economic shock is painful.The Numbers -Temporary layoffs in Norway: 279,000; 29,000 jobs lostShort-term layoffs in Finland: 281,000; 4,900 redundanciesTemporary furloughs in Sweden: 50,000; 37,000 job cutsJob losses in Denmark: 31,000; estimated 70,000 people’s wages partially paid by the governmentPeople reduced to part-time work in Iceland: 17,500; 4,500 terminationsSome of the biggest Nordic companies are among those caving under the strain of the crisis. Truckmaker Volvo Group has temporarily laid off its entire 20,000-strong Swedish workforce. Airlines SAS AB, Finnair Oyj and Norwegian Air ASA have all put most of their employees on leave. Scandic Hotels Group AB has locked the doors of more than 60 hotels, while retailers including Hennes & Mauritz AB have sent thousands of shop staff home.It’s “easy to imagine that the high numbers we are seeing will increase dramatically if the economy doesn’t get restarted within a relatively short time,” said Helge Pedersen, chief economist at Nordea Bank in Copenhagen.Meanwhile, Nordic governments are struggling to provide disaster relief, including subsidies of as much as 75% of wages. The goal is to prevent temporary layoffs becoming permanent.But despite these programs, there’s one group that still faces a “very, very dark situation,” according to Hallberg at Swedbank, and that’s young graduates.“If it lasts only a couple of months or a couple of quarters, it’s not a problem,” he said. “But three to four years of unemployment after school could destroy career potential and lead to lower income for life.”(Updates Finnish job cut numbers)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • World

    Mercedes F1 Develops Breathing Aid That Eliminates Need For Ventilators

    Mercedes Formula One, along with engineers at University College London and clinicians at University College Hospital London (UCLH), has developed a machine that eliminates the need for ventilators for COVID-19 patients. What Happened The Medicines and Healthcare Regulatory Authority, which regulates medical devices in the United Kingdom, has given its approval to the device, which will be delivered to the UCLH and three other hospitals for trials, according to the BBC.If these trials are successful, up to 1,000 Continuous Positive Airway Pressure (CPAP) devices could be made with production starting next week.Andy Cowell, Managing Director of the Daimler AG (OTC: DDAIF) owned Mercedes-AMG High-Performance Powertrains, commented on the support that the Formula One community was extending to the battle against the pandemic, "We have been proud to put our resources at the service of UCL to deliver the CPAP project to the highest standards and in the fastest possible timeframe."Why It Matters Medical device development can take years, but University College London engineers reverse-engineered a simple device to produce the ventilator substitute quickly and at scale.As CPAP machines push an air-oxygen mix into the lungs in a steady flow at high pressure, there is no need to use a face mask, heavy sedation, or to insert a tube into the airway.CPAP machines are being used in the treatment of COVID-19 in China and Italy. In Italy, over 2,000 patients are currently utilizing such machines.Price Action On Friday, Daimler OTC shares closed 7.26% lower at $30.The company's shares closed 8.06% lower at $30.13 in Frankfurt. See more from Benzinga * Trump Boasts About His Coronavirus Briefing Ratings Being As High As 'The Bachelor' * Mark Zuckerberg And Priscilla Chan Donate M To Gates Foundation Coronavirus Accelerator * Cramer Reveals Stock Favorites, Says Intuitive Surgical A 'Winner'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • Business
    The Wrap

    Fox to Raise $1.2 Billion After Saying Coronavirus May Have ‘Material’ Impact on Earnings

    Fox says it plans to raise $1.2 billion through the sale of senior notes and use the money “for general corporate purposes.”Hey, everyone needs a little extra cash these days.Earlier on Tuesday, Fox became the latest major media corporation to tamp down any optimistic financial expectations. As a general rule, Fox does not provide actual financial guidance, so there were technically no specifics to alter.Also Read: Fox News Insider Denies Judge Jeanine Pirro Was Drunk, Explains 'Technical Difficulties' in 1st Home BroadcastWhile Fox News has been a bright spot as viewers flock to the network for information on the pandemic, a number of canceled or postponed sporting events are threatening to offset those gains. And then there are just regular TV and film productions that are on hiatus as social distancing has become our new normal.“The impact of coronavirus disease 2019 (COVID-19) and measures to prevent its spread are affecting the macroeconomic environment, as well as the business of Fox Corporation, in a number of ways,” the company said in a Tuesday SEC filing. “For example, while the company’s national news ratings remain strong, sports events for which the company has broadcast rights have been cancelled or postponed and the production of certain entertainment content the Company acquires has been suspended. The magnitude of the impacts will depend on the duration and extent of COVID-19 and the effect of governmental actions and consumer behavior in response to the pandemic and such governmental actions.”“The evolving and uncertain nature of this situation makes it challenging for the company to estimate the future performance of its businesses, particularly over the near to medium term, including the supply and demand for its services, its cash flows and its current and future advertising revenues,” it continued. “However, the impact of COVID-19 could have a material adverse effect on the company’s business, financial condition or results of operations over the near to medium term.”Read original story Fox to Raise $1.2 Billion After Saying Coronavirus May Have ‘Material’ Impact on Earnings At TheWrap