- ÖBB send thousands of employees on short-time work
- OMV has to save 4 billion euros this year
- Economic output drops by at least 2 to 2.5 percent
- Budget deficit 5.5 percent – forecast by IHS and Wifo
- German airlines and tour operators are to be financially relieved
- Prominent economic researcher: Coronavirus strengthens the welfare state
- Export expectations have never been so low
- Consumer climate at the lowest level since the financial crisis
- Open garden centers rely on delivery
and much more
Current news from the business world
13.55: A sharp, short slump in the first half of the year could result in a strong economic recovery in the second half of the year and then in 2021 if IHS and Wifo normalize again. This is also called the V recession. “There is a great deal of uncertainty,” said IHS chief Martin Kocher.
The forecast was “very difficult” because the general conditions changed constantly. For Wifo manager Christoph Badelt “there was no reliable forecast with sufficient certainty”. The extent of the economic downturn will depend largely on how long the measures to contain the virus remain in force.
1.30 p.m .: There is resistance to the plan to initially only hand out vouchers to canceled flights and package tours. “Consumers must not be forced to give the travel industry a loan if they want to use the money for other things like rent or food,” said consumer advocates.
1:28 p.m .: The large food chains have already announced bonuses for those working in the supermarkets in the Corona crisis response. The union demanded tax-free “corona allowances” for bank employees on Thursday.
Despite increased electronic processing, staffing in local branches is still necessary in the banks. At the turn of the month, despite all appeals to avoid visiting bank branches as far as possible, according to the GPA, increased customer frequency is again to be expected.
For the thousands of employees in the bank branches who are currently working under difficult conditions, “we are demanding a corona allowance that should also be treated tax-free,” wrote the chairwoman of the union of private employees, printing, journalism, paper (GPA-djp ), Barbara Teiber, and bank union boss Wolfgang Pischinger.
13.07 clock: The union GPA-djp renewed their demand for reduced opening hours in the trade in order to reduce the pressure on the retail employees somewhat. The grocer Hofer showed this with yesterday’s initiative to reduce the opening hours to 6 p.m.
The Premium paymentsThe GPA-djp is generally positive that the big food chains have announced. “But the point is not to make these payments dependent on the goodwill of individual employers, but to create a binding regulation,” said Anita Palkovich, KV negotiator at GPA-djp. The government’s tax exemption for payments in the sense of a 15th salary now had to be secured immediately.
1.00 p.m .: ÖBB are planning short-time work for thousands of employees
Passenger traffic has almost completely broken down at ÖBB and freight traffic has also declined sharply. “This means that we have to register short-time work for parts of our company because we cannot cover the costs with sales,” said ÖBB boss Andreas ÖBB boss Andreas Matthä in an interview with the magazine “News” (Friday edition). Several thousand employees are affected.
“In passenger transport, we have a passenger decline towards 90 percent, and freight transport has also been going down significantly this week,” Matthä is quoted as saying. In traffic with Italy, the decline is “dramatic”, two thirds are gone. In the maritime cargo business there is a minus of 50 percent. And nationally, ÖBB is feeling the short-time work at Voest and the shutdown of car production across Europe. The number of passengers on the Postbus also fell sharply.
12.25 p.m .: The Viennese stock market presented itself with a negative trend in the midday trading on Thursday. At around 12:15 p.m., the ATX fell 1.31 percent to 1,991.51 units. The ATX Prime fell 1.02 percent to 1,019.30 points.
12.20 p.m .: Household customers and small corporate customers will not switch off electricity, gas or heat in the event of late payment due to the Corona crisis. This was assured by the domestic energy industry, as Energy Minister Leonore Gewessler (Greens) and Energy Control Board Member Wolfgang Urbantschitsch announced on Thursday in a joint press conference.
The regulation is valid until May 1st and targets private individuals and small businesses alongside private customers. Gewessler and Urbantschitsch were pleased with the “quick and unbureaucratic” solution. The energy suppliers would share the risk with the network operators, said the minister responsible for energy and the environment.
According to Urbantschitsch, one is possible with the provider Deferred payment or an installment plan to agree, at most also a reduction in advance payments for companies, since there is a reduction in energy consumption for company closings.
11:52 a.m .: The auction of additional frequencies for the Expansion of the new 5G mobile radio standard is postponed until the coronavirus crisis is over. Minister of Telecommunications Elisabeth Köstinger (ÖVP) confirmed this in a morning press conference. The auction planned for April will not take place before summer. The mobile operators already have frequencies and regional offers, but there are no more slots for the major expansion. Magenta boss Andreas Bierwirth pointed out in the press conference that one should not speak of Austria’s backlog at 5G, but rather of catching up. In three years there will be no more distance.
11.44 a.m .: Daimler sends tens of thousands in short-time work. After Volkswagen, Daimler now wants one because of the corona crisis Most of his workforce in Germany is on forced leave send. Management and works council had agreed to apply for short-time work from April 6 to April 17, the Stuttgart-based car group announced on Thursday. The exact number is currently being determined, said a spokeswoman. But it is already clear that a large part of the approximately 170,000 employees in Germany will be affected. A large part of the production at Daimler is currently at a standstill, the employees are currently reducing vacation and their working time accounts.
At VW, too, the European plants are largely at a standstill. The Wolfsburg-based company wants to send around 80,000 employees in Germany on compulsory vacation due to the loss of work due to the coronavirus crisis.
11:32 am: In view of the coronavirus pandemic, the Austrian Mineral oil company OMV now massive on the cost brake. In 2020, over 4 billion euros are to be savedto “ensure the financial strength and economic stability of the company” and “to ensure security of energy supply,” as the company said on Thursday.
Organic investments will be reduced this year by around EUR 500 million to just under EUR 2 billion, costs will be reduced by around EUR 200 million and projects worth around EUR 1.5 billion will be postponed. Furthermore, according to OMV, over 2 billion euros for the takeover of a further 39 percent of the chemical company Borealis will not be due until the end of next year – a corresponding adjustment agreement to the purchase agreement dated March 12, 2020 was signed today. The entire purchase price of around 4.1 billion euros can be paid in installments.
10.40 a.m .: Wifo and IHS submit their spring forecast for 2020 and 2021. To check here:
Economic output is expected to decrease by at least 2 to 2.5 percent in 2020, but “great downside risk” – Less tax revenue and billions in aid package brings budget deficit of 5.5 percent.
The corona virus pandemic is causing Austria’s economy to contract significantly this year. The economists of the Institute for Advanced Studies (IHS) expect economic output to decline by at least 2 percent; the economic research institute (Wifo) expects a decrease of 2.5 percent. Due to the corona crisis, these are preliminary estimates, there is a “large downside risk”, it said on Thursday.
More information can be found here.
9.50 a.m .: Open garden centers also rely on delivery
The federal government’s measures against the spread of the corona pandemic have hit many industries hard. The florists also had to close their shops. However, agricultural horticultural holdings are excluded from the closure. You can shop in nurseries and nurseries and there is also one greatly expanded delivery service.
9.25 a.m .: At canceled flights and vacation packages should be consumers based on suggestions from the German government will in future receive vouchers instead of reimbursements. This could provide financial relief for airlines and tour operators in the corona crisis and protect them from liquidity bottlenecks. In the coming weeks enormous refunds due for canceled trips. The industry association DRV anticipates 4.8 billion euros by the end of April. “Even healthy companies can no longer stand this. In fact, a voucher solution could secure liquidity here, “it says. But it is important that the customer remains certain that their money is not lost. This must be put on a proper basis.
In Austria too, the travel industry is calling for a rescue package. The travel agency business has collapsed completely.
More information can be found here.
8.30 a.m .: The mood among German exporters rose in March due to the coronavirus pandemic clouded more than ever. The barometer for export expectations of the industry plummeted from minus 1.1 to minus 19.8 points, as the Ifo Institute announced on Thursday in its monthly survey of 2,300 companies.
This is the sharpest decline since reunification and the lowest since May 2009. “The corona pandemic is slowing global trade. Cross-border logistics is becoming more difficult, “said Ifo President Clemens Fuest.” Germany as an export nation is particularly affected. “
The prospects fell in almost all industrial sectors. It is particularly hard on the carmakers, who expect significant declines in exports. The outlook is also bleak in mechanical engineeringThe same applies to the manufacturers of textiles and clothing. The declines in the manufacturers of electrical equipment and in the chemical industry were comparatively moderate.
8.28 a.m .: The virus crisis is depressing Consumer sentiment in Germany at the lowest level since the global financial crisis. For April, market researchers at GfK forecast a drop in their consumer climate barometer by 5.6 points to 2.7 points on Thursday. The value was last lower in May 2009. Economists had only expected a drop to 7.1 points.
The sharp rise in infections and the associated restrictions had led to the sudden drop, according to the Nuremberg researchers.
7.50 a.m .: The corona virus with the resulting challenges finally takes the wind out of the sails of neoliberalism, says Stephan Schulmeister, economist and professor at the University of Vienna. He sees one in the current crisis Opportunity for strengthening the welfare state and the implementation of measures that were overslept after the 2008 financial crisis.
That will become particularly clear Importance of a good health system and social security by the state. For countries like the USA, Schulmeister fears “the worst” in this regard. Populists are currently not gaining strength, the basic mood is more cohesion and solidarity.
Looking back at the events of March 25th