Negotiations on credit moratorium, 12,500 applications for short-time work «

The economic situation on Wednesday

1:45 p.m .: Finance Minister Blümel confirms negotiations on credit moratorium. The banks are currently working on the details, for example whether it will be a voluntary or a legal solution.

1:30 p.m .: The corona virus crisis has so far reduced the workload of a quarter of a million Austrians. So far there have been 12,596 short-time work requests that secure around 250,000 jobsMinister of Labor Christine Aschbacher (ÖVP) said in a press conference on Wednesday. Vice Chancellor Werner Kogler (Greens) said the hardship fund for the self-employed will be doubled from 1 to 2 billion euros.

The EU Commission is also preparing to introduce a system to support short-time work in the European Union. The guarantee of all member states should stand behind the “Sure” instrument, said EU Commission President Ursula von der Leyen in a video message on Wednesday.

1:12 p.m .: Of the Hardship fund in Austria is doubled from one to two billion euros.

12:50 p.m .: Protective masks are mandatory when shopping in the supermarket by April 6th at the latest. If you pay for your purchase with plastic cards, as recommended, must enter his PIN code less frequently from April 13. The card limit for contactless payments is being raised. The upper limit has been doubled from EUR 25 to EUR 50. Only from this upper limit must a four-digit PIN code (secret number) be entered. In Austria, this will apply from April 13, at the latest by mid-April, because extensive technical updates are also required in retail companies. For the time being, however, this step is limited to the duration of the Corona crisis. There is no more detailed time limit because the duration of the crisis cannot be measured. Card companies say that there is nothing to be objected to by the provider against a long-term or unlimited amount of 50 euros.

12:35 pm: ÖGB boss Wolfgang Katzian has given concrete form to his demand on Sunday for an increase in unemployment benefits in view of the current unemployment figures. “It would therefore now be a good time to get unemployment benefits to increase to 70 percent net replacement rate“said the ÖGB president on Wednesday in a broadcast. In Austria, unemployment benefit is relatively low at 55 percent of the last net income. “Unemployed people are now and were at risk of poverty even before the Corona crisis,” said the top unionist. A higher unemployment benefit would not only save people without work from a total economic crash, it would also mean more purchasing power for the economy as a whole and weaken the economic slump.

12:02 p.m .: The Spanish VW subsidiary Seat has started manufacturing ventilators. Production started at the main Martorell plant near Barcelona, ​​the company said on Wednesday. 150 employees used an assembly line for the Seat Leon to mass-produce the devices. For this, major conversions were necessary. They want to “contribute to the relief of the Spanish healthcare system, which has been hard hit by the coronavirus crisis,” it said. The devices are still pending approval. After Italy, Spain is currently the most affected country in Europe by the pandemic.

11:55 am: The German government wants to get start-ups through the corona crisis with quick aid amounting to two billion euros. Finance Minister Olaf Scholz and Economics Minister Peter Altmaier announced this in Berlin on Wednesday after a cabinet meeting. “Our economy lives from the fact that something new always comes up,” said SPD politician Scholz. Startups are particularly hard hit by the crisis following the pandemic, because they often have hardly any reserves and do not make any profits even in normal times. The two billion euros are intended to be a first tranche of the government’s already planned and altogether ten billion euro future fund for the industry.

11:20 am: Of the Motorcycle manufacturer Pierer Mobility, formerly KTM Industries AG, defends its decision to pay a dividend of EUR 0.30 per share for the 2019 financial year to distribute to its shareholders. At the same time, the company’s board of directors and majority owner Stefan Pierer supports the idea of ​​not paying out any profits to shareholders for 2020. “For 2020, for these difficult framework conditions and everything else that comes along, I fully support the demand that no dividends be distributed, there is no question about that,” Pierer said on Wednesday in the Ö1 morning journal of ORF radio. It goes without saying that under such difficult conditions, profits would have to remain in the company. The company boss did not comment on whether a legal regulation was required.

11:05 a.m .: Like other retail chains before The German department store group Galeria Karstadt Kaufhof of Austrian real estate investor Rene Benko is now also stopping its rental payments due to the corona crisis, according to a media report. There was “no other choice,” quoted the “Spiegel” on Wednesday from a letter from the company to its landlords on Monday. Since the landlords could not currently grant the “use of the rented property” to the department stores, they would not be entitled to any consideration. The department store chain has already applied for government aid in the crisis.

10:53 am: The corona crisis affects labor markets in the federal states significantly differently. The number of unemployed and AMS training participants rose in Tyrol at the end of March compared to the same month of the previous year by 174 percent to 45,147 In Salzburg there was an increase of 112 percent to 31,077 in the Styria an increase of almost 72 percent to 71,011 was recorded, including training participants by almost 91 percent. A lower rise in unemployment was registered in the other federal states: In Vorarlberg the increase was 59 percent, in Carinthia (+58 percent), Upper Austria (+53 percent), Burgenland (+47 percent), Lower Austria (+41 percent) and Vienna (+31 percent), the AMS announced on Wednesday.

10:45 a.m .: The The maximum period of use for foreign harvest workers is extended during the corona crisis. In addition, other groups are to be used for agricultural activities, show laws of the third Corona package, which the National Council passed on Friday. The increase in funds for short-time work from 400 million to one billion is now also legally fixed.

10:30 am: Italy plans to extend the lockdown decided on March 12. The curfew and the freeze on non-vital activities are to be extended from April 3 to April 13Italy’s Health Minister, Roberto Speranza, told Parliament in Rome on Wednesday. Rumors that the lockdown could be extended until May 4 have not been confirmed. The government is now working on a € 25 billion aid package to support the economy. Prime Minister Giuseppe Conte informed the opposition parties of this on Wednesday.

10:09 a.m .: At the German automotive supplier Continental, the slump in demand and supply chain problems due to the corona crisis have meanwhile resulted in significant cuts in production. As the company reported on Wednesday, more than 40 percent of the locations worldwide are currently at a standstill, especially in the core business with automotive technology and in the tire division. In Germany for about half of the employees Short-time work registered, around 30,000 employeesr are affected. The Dax group from Hanover wants to cut additional costs and postpone investments.

9:53 am: The After a look at the aid package for the German economy, SPÖ is also demanding more money for businesses in Austria. The hardship fund, endowed with a billion euros, is too small. “The Germans have 50 times the volume and with 15,000 euros up to 2.5 times the maximum payment compared to Austria,” said the Social Democrats in a press release on Wednesday.

9:50 am: Paid special care time will also be possible for employees until the end of Maywho have to step in as a replacement for the 24-hour nurses or when a nursing home is closed. This is provided for in a draft law that the National Council is to pass as part of the third Corona package on Friday. The catch as well as for parents and caregivers for whom the rule has already been decided: the employer has to agree. However, he receives part of the salary subsidy.

9:30 a.m .: March unemployment in Austria rose by 52.5 percent, 562,522 unemployed across Austria.

9:28 am: The Lufthansa Group wants to be in the corona crisis send around two thirds of its global workforce into short-time work. A company spokesman confirmed on Wednesday in Frankfurt that the social benefits in different Countries for a total of 87,000 employees has been. Depending on the company and part of the company, this will apply retrospectively as of March 1, but mostly from April.

The portal “Business Insider” had previously reported. The largest aviation group in Europe employed around 135,000 men and women in 2019.

9:10 a.m .: Fed central banker Loretta Mester considers an unemployment rate of more than ten percent in the United States conceivable. According to CNBC, it pointed to the economic shutdown to combat the coronavirus epidemic. New numbers on the US job market are expected on Thursday and Friday.

8:43 am: Italy’s Minister of Economy Roberto Gualtieri expects the economy to shrink by around six percent this year. A corresponding estimate by the trade association Confindustria is unfortunately realistic, he says to the newspaper “IL Fatto Quotidiano”. At the same time, he can also say that the Italian economy can aim for a strong recovery. In the fight against the effects of the coronavirus pandemic, the European Stability Mechanism ESM is not an option under the current conditions. Europe needed a common fiscal policy as well as new solutions to find an appropriate and common answer to the crisis.

8:30 a.m .: The Chinese industry slowly picked up speed in March after the February crash. The Caixin-Markit Purchasing Managers’ Index released on Wednesday rose to 50.1 points from the record low of 40.3 points last month and was thus just above the growth threshold of 50 points. Analysts had expected an increase to 45.5 points. The survey by the private research institute was thus worse than the official purchasing manager index. After factory closures and travel restrictions to curb the coronavirus, companies in the country have reopened and life for millions of people is slowly starting to return to normal. But while the government in Beijing wants to protect the country from a second wave of infections from abroad, business activity is only slowly starting up again.

8:24 a.m .: Given the coronavirus pandemic the European banking authority EBA has advised financial institutions to use bonus payments with prudence. The banks should act conservatively. And the procedure must reflect the current economic situation, the authority said. However, the EBA did not request a complete stop of the bonuses. Such a well-considered approach is also appropriate for dividends. The European Central Bank (ECB) had already asked financial institutions in the euro area to forego profit distributions on Friday given the virus pandemic. The British central bank (Bank of England) advises the country’s financial institutions to refrain from paying bonuses to their top managers during the coronavirus crisis. In addition, the central bank welcomed the announcements by the largest financial institutions to temporarily suspend dividends and share purchases, the BoE said.

8:12 am: The fear of the consequences of the corona virus on the global economy is causing pessimism in Japanese large-scale industry for the first time in years. According to a quarterly survey (“Tankan”) by the central bank published on Wednesday among around 10,000 companies in the country, the sentiment index for the large production companies determined therein fell in March negative for the first time in years. The index fell from 0 to minus 8. A negative index means that the pessimists are now in the majority. There is growing concern about a new recession in Japan.

8:06 am: The government works on a legal deferral of loans for individuals and small businesses, writes the “standard”. The duration is still being negotiated, but a bill from the Ministry of Finance provides for three months, which can be extended for a further three months. The deferrals should take effect automaticallywhoever does not want to participate would have to unsubscribe.

05:00 a.m .: The Pension funds are likely to experience negative investment income in the first quarter in view of the stock markets that collapsed in the corona virus crisis have seen the shares bottom out. The pension funds themselves didn’t call for government aid, Aid is needed by their customers, i.e. companies and their employees, said pension fund chairman Andreas Zakostelsky about the APA. However, all government aid would be obtained if the government took measures quickly and consistently. In the case of short-time work, Zakostelsky suggests compensation for the pension fund contributions. For example: if a gross salary of 1,500 euros per month had previously been paid 3 percent or 45 euros as a pension fund contribution, this would drop to 40 percent if the working time was reduced due to corona short-time work to 18 euros per month. The employer only pays 600 euros in this phase. For the beneficiary, it would make sense to replace the now missing 27 euros with the labor market service (AMS) in the sense of his pension provision, since this bears the non-wage costs for short-time work. Here you could also take the pension fund contributions in the interest of the employees. For the stock markets, Zakostelsky assumes that the low point has been reached grosso modo, but swings up and down are still possible.

The economic situation on Tuesday

7.45pm: Zara founder Amancio Ortega donated € 63 million worth of medical equipment to Spanish hospitals to fight the coronavirus epidemic.

Through his foundation, the Spanish fashion tsar supplied clinics across the country with a total of 1,450 ventilators, 450 beds, 3 million protective masks, one million rapid test kits and other medical equipment. He procured some of the material from China, where the Zara parent company Inditex has numerous textile suppliers. He had some of the protective masks manufactured in the ten large textile factories that Inditex has in Spain.

7:20 pm: Due to the uncertainties resulting from the Corona crisis, the German sporting goods manufacturer Adidas stopped its share buyback program for this year. Adidas wants to maintain its financial flexibility in the current environment, said Adidas on Tuesday evening.

6:45 pm: The Covid 19 pandemic on the German stock market caused a historically weak first quarter. The German leading index DAX closed Tuesday after a volatile day with a plus of 1.22 percent at 9,935.84 points. However, he could not keep above the 10,000 point mark. The index has lost a whopping 25 percent in value since the beginning of the year.

6:10 p.m .: The Vienna Stock Exchange closed on Tuesday with price gains. The Austrian leading index ATX rose on the last trading day of the first quarter by 0.60 percent to 2,001.60 points. The quarterly performance was not very encouraging, since the beginning of the year the index has lost over 37 percent.

6:00 p.m .: In the U.S., employees of online retail giant Amazon have demonstrated against poor protection against corona infections while at work. Between 50 and 60 workers joined a rally in front of an Amazon warehouse in New York on Monday – The company itself said only 15 people participated.

Further information

5:45 pm: Almost a third of the approximately 105,000 apprentices in Austria are in their last year of apprenticeship. These apprentices will be able to complete the vocational school in the summer, since they received intensive teaching units via distance learning, the Chamber of Commerce announced today (Tuesday) and welcomed a corresponding announcement from Education Minister Heinz Faßmann (ÖVP).

5:30 p.m .: Volkswagen extends the closure of the factories its core brand in Germany for another ten days because of the corona pandemic. Instead of until April 9, as planned, production is now to be suspended until April 19, it said on Tuesday from the German company. The interruptions had already been extended. VW has reported short-time work for tens of thousands of employees.

5:10 pm: As a result of the corona virus in Germany every fifth company announced short-time working. The Federal Employment Agency (BA) spoke of around 470,000 companies on Tuesday. “This keeps millions of employees in their jobs,” said German Labor Minister Hubertus Heil. He did not name the numbers of those affected. CDU labor market expert Peter Weiß expects over four million short-time workers.

17:00 o’clock: As is well known, the corona crisis affects all economic sectors. If it is to blame for companies not being able to meet certain disclosure, publication and information requirements in good time, the Financial Market Authority (FMA) should be able to extend them based on a reasoned application. A corresponding, soon-to-be law decision should apply until the end of the year.

4:45 pm: Wearing Mouth-nose masks in supermarkets, drugstores and drugstores will become mandatory at the beginning of the next week at the latest. This emerges from a decree of the Ministry of Health, which was issued to the federal states on Tuesday ( “The additional hygiene rules must be implemented immediately, but no later than April 6, 2020,” it says.

4:30 p.m .: Magna starts its production again in stages. Of course, with special protection and hygiene measures. After Easter, 2000 employees will work in two shifts. Full start from April 20.

Further information

4:15 pm: The furnished one Hardship fund not only supports small companies, but also farmers. In order to make a valid application, the last valid notification of unit value is mandatory. Further documents, such as proof of a drop in sales or cost increases, are only required for phase 2. This is being prepared under the leadership of the Ministry of Agriculture.

Full-time businesses with a unit value of up to EUR 150,000 or a net turnover of up to EUR 550,000 and additional income below the de minimis threshold are entitled to this. A drop in sales of at least 50 percent due to the corona crisis compared to the same month of the previous year must be demonstrated.

3:20 pm: The Airlines face unparalleled losses worldwide due to unprecedented traffic restrictions. The umbrella organization IATA appreciates that Net loss in the second quarter of this year to $ 39 billion (€ 35 billion), as Secretary General Alexandre de Juniac reported in Geneva on Tuesday. There were $ 7 billion in profits in the second quarter of 2019.

Air traffic has plunged worldwide due to the coronavirus pandemic. Many airlines have temporarily ceased operations.

3:00 p.m .: The government announced The requirement to wear a protective mask in supermarkets continues to raise many uncertainties – especially regarding the organization of the mask distribution in the shops. Uniform handling is not yet in sight – in most food chains, the distribution of the masks is likely to be attributed to the employees.

More information

2:40 p.m .: According to Labor Minister Hubertus Heil, one of 470,000 companies in Germany has been in the corona crisis so far Ad responded to short-time work. How many people will be affected by short-time work cannot yet be estimated, said Heil on Tuesday in Berlin. However, it should be expected that there will be more than during the financial crisis; at that time this affected 1.4 million people.

2:30 p.m .: In Europe, the rating agency S&P expects credit losses on bonds with a low credit rating to quadruple due to the corona crisis. By December 2020 the default rate for junk bonds soar to 8 percentStandard & Poor’s (S&P) credit watchers predicted on Tuesday. At the end of December it was only 2.2 percent in Europe.

14:05: Decontamination is becoming increasingly important. At least temporarily, a small business field has expanded for the ISS Austria, a service company around buildings. The company has had small decontamination teams for several years. They are also used for the output of protective masks.

12:25 p.m .: The German carmaker BMW reports due to its production stops in Germany Short-time work for 20,000 employees. A group spokeswoman explains that employees in the factories in Dingolfing, Munich, Regensburg and Leipzig are mainly affected.

12:00 o’clock: The telecom regulator has now formally postponed the second 5G spectrum auction planned for April due to the coronavirus outbreak. The auction would take place “at a later date”, announced the Telekom Control Commission (TKK) on Tuesday. Agriculture Minister Elisabeth Köstinger (ÖVP), responsible for Telekom, had already announced the postponement.

11:15 a.m .: The National Bank expects the Austrian economy to shrink by over three percent this year in a “moderate COVID-19 scenario”. For 2021, however, a “comparatively strong upswing” could follow, according to the first estimate by the OeNB forecasters. If government restrictions are not relaxed before summer, the economy will shrink more.

10:25 am: In the U.S., employees of online retail giant Amazon have demonstrated against poor protection against corona infections while at work. Between 50 and 60 workers joined one in New York on Monday Rally in front of an Amazon warehouse on. They asked for the building to be closed and disinfected after an employee there tested positive for the new virus.

9:55 am: The tourist office group, Austria’s largest tourism group, Has all 3000 employees in Austria registered for short-time work. The applications for the holding company as well as for the operational subsidiaries Ruefa, Eurotours, Verkehrsbüro Business Touristik, the Verkehrsbüro Hotellerie and Palais Events with the Cafe Central were submitted to the AMS offices, was announced on Tuesday.

9:45 am: Industry insiders are expecting a sharp drop in car demand this year due to the corona virus pandemic. That would in the EU a minus of 30 percent to the original estimates, according to a company survey. In the United States, the decline is 30 to 35 percent.

8:55 am: After criticizing the implementation of the government’s coronavirus hardship fund for small businesses, Vice Chancellor Werner Kogler (Greens) has made it clear that the circle of recipients will be expanded. “We agreed yesterday that neither multiple insurance is considered a handicap, nor is the income limit up or down. Can too Company founder, who have only just started, everyone in this program, “said the Vice Chancellor

8:50 am: The Dutch flower trade is badly hit by the Corona crisis. Of the Sales declined by more than 70 percentsaid Royal Flora Holland spokesman Michel van Schie, DPA news agency. If the crisis persists, the sector expects total losses of two to three billion euros.

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