The International Air Transport Association, representing 290 airlines, estimates that airlines around the world will lose $ 84 billion. With this, the jobs of one million people will end.
This week, United Airlines, one of the three largest carriers in the United States, has warned its employees that it may cut 36,000 jobs due to a severe reduction in air travel.
Helen Baker, managing director and senior research analyst at investment firm Cowen, says that the epidemic could result in American airlines leaving two million of their 7.5 million employees.
The consortium of US airlines is pressuring the Trump government to increase the bailout package of $ 25 billion.
To get the help released by the government, airlines have to hire people till the next September.
But IATA says that doing so will bring broad benefits.
An IATA spokesperson said that the number of jobs that are going on in the aviation sector shows how serious the financial crisis is facing the aviation sector and all those who depend on air connectivity.
Along with this, it has been said that the restrictions imposed by the government to protect people from the corona virus are fully understood, but in doing so the economic and social consequences of these steps should be taken into consideration.
Emirates Airlines President Sir Tim Clarke has said that Emirates Airlines is going to cut at least 9000 jobs in the coming days due to the Corona virus crisis.
This is the first time that the world's largest international airline has told how many people are going to be fired.
Before this crisis came to the fore, 60 thousand people worked at Emirates Airlines.
Sir Tim Clarke has said that airlines have already laid off ten percent of their employees. But we may have to lay off some more of our employees, perhaps 15 percent of the total.
The global aviation industry has been severely affected by the Corona virus as work has been stalled for the past several months.
In an interview with the BBC, Sir Tim Clarke said that his airlines were not affected as badly as other airlines.
Tim Clarke said that this year was going to be one of the best years for Emirates, but Emirates' current situation shows that Emirates has seen a huge drop in earnings.
Employees of Emirates Company are also worried about the coming days due to dwindling jobs in the aviation sector.
According to the staff, the lack of transparency and communication from the airlines has led to disappointment.
This week, 700 out of 4500 pilots of airlines have been given redundancy notices. This means that after the Corona virus crisis, at least 12 people have been told that they are leaving their jobs.
Due to this crisis the jobs of those who fly Airbus planes are going away.
It does not seem to have much effect when the Boeing aircraft flown.
Emirates uses the Superjumbo Airbus A380 for its airlines that can carry up to 500 people at a time.
At the same time, fewer people travel on Boeing 777 aircraft and they are easy to fill even during this, global crisis when international flights are running low.
With this, thousands of cabin crew employees have also been informed that the company does not need them at the moment.
Iran's currency rial continues to fall drastically. According to Bonbast.com, the price of one dollar on Monday was 2,15,000 rials. This riyal is almost five times the official rate of 42,000 rial.
According to the news agency Reuters, the central bank had to take steps due to the continuing decline in the last few weeks. The bank put millions of dollars into the market to bring some stability. Central Bank Governor Abdulnansir Hematti has described the move as wise and in the right direction.
He informed that the bank had sufficient reserves of foreign exchange without giving any information. According to economists, the use of those reserves has become necessary due to the impact on the current account and fiscal deficit during the economic crisis caused by the corona virus.
According to Gabris Iradian, chief economic adviser to the Middle East and North Africa at the Institute of International Finance, "They have limited foreign exchange reserves to invest in the market and are now isolated due to isolation from the international community in addition to US sanctions." It will not be possible to prevent any further decline. ''
In 2015, Iran signed a nuclear deal with 6 countries, including the US, but in the year 2018, the US canceled the deal and banned Iran again. Due to this, the value of the currency of Iran was reduced by about 70 percent.
The government tried to fix several exchange rates to reduce the financial burden of importers. But the Rial's decline continued even after the Central Bank's intervention in the free market.
The United Nations watchdog has asked Iran to allow it to visit two suspected old nuclear facilities. In addition, the recent decline has been recorded due to the negativity created by the macroeconomic decline due to Corona Mahamari. But these too can lead to major changes.
Can boycott damage Facebook? The answer is 'yes'.
The 'Abolitionist Movement', which took place in the 18th century, prevented the British people from buying enslaved goods.
This movement had a big impact. Nearly three lakh people stopped buying sugar, which increased the pressure to abolish slavery.
'Stop Hate for Profit' is the latest campaign in which 'boycott' is being used as a political weapon. The campaign claims that Facebook does not do enough to remove hateful and racist content on its platform.
The 'Stop Hate for Profit' campaign has persuaded many large companies to remove their advertisements from Facebook and some other social media platforms.
After Coca-Cola, Unilever and Starbucks, now well-known companies such as Ford, Adidas and HP have also joined their advertisers.
Microsoft also stopped advertising on Facebook and Instagram in May, according to news website 'Axius'. Microsoft has stopped advertising on Facebook due to unknown 'inappropriate content'.
Meanwhile, other online platforms such as Reddit and Twitch have also taken anti-hate steps on their own and have increased the pressure on Facebook.
So can such a boycott cause huge damage to Facebook?
The short answer to this question is yes. Because a large part of Facebook's revenue comes from advertisements.
David Cumming of Aviva Investors told the BBC that Facebook had lost people's trust and that users found a lack of moral values in Facebook's attitude. Davim Cumming believes that these assumptions can hurt Facebook's business badly.
On Friday, the share price of Facebook was down by eight percent. As a result, the company's CEO Mark Zuckerberg lost at least five and a half trillion rupees.
But can the damage be bigger? Could this threaten the existence of Facebook in the coming days? There are still clear answers to these questions.
The first thing is that Facebook is not the first social media company to face boycott.
In the year 2017, many big brands announced that they will not advertise on YouTube. This happened because an ad for a particular brand was shown after a racist and homophobic (hateful against homosexuality) video.
The boycott of this brand is now almost forgotten. YouTube changed its advertising policies and now YouTube's parent company Google is also doing fine in this regard.
This boycott may not have caused much damage to Facebook. There are other reasons for this.
The first thing is that many companies have talked about boycotting Facebook only for the month of July. Secondly, a large part of Facebook's revenue also comes from advertising by small and medium companies.
According to a CNN report, Facebook earned nearly three trillion rupees from the top 100 brands spent last year and it was just six per cent of the total advertising revenue.
Matt Morrison, head of the advertising agency Digital Whiskey, told the BBC that it is not possible for many small companies to 'not advertise'.
Says Morrison, "For companies that cannot afford to pay huge amounts of money for advertising on television, Facebook is a necessary medium. Business can succeed only when companies reach their potential customers. So they will continue to advertise. ''
Furthermore, Facebook's structure is such that it gives Mark Zuckerberg the power to make any kind of changes. If they want to change a policy, they can change it. For this, only their views need to be changed. If Zuckerberg does not want to take action, he will not.
However, in the last few days, Mark Zuckerberg has indicated changes. Facebook announced on Friday that it would begin tagging hate comments.
On the other hand, other companies are taking action on their own.
On Monday, social news website Reddit announced that it was banning a group called 'The Donald Trump Forum'. Members of this group are accused of making hate and threatening comments. The group was not directly associated with President Trump, but its members shared their supporting mimes.
In addition, Amazon-owned video streaming platform Twitch has also temporarily banned an account run by 'Trump Campaign'. Twitch has said that two of the videos from President Trump's rallies were said to promote hatred.
One of these videos was in the year 2015 (before Trump was elected president). In this video, Trump said that Mexico is sending rapists to the United States.
Twitch said in his statement, "If there is any hateful feeling in any political comment or news, we do not consider it an exception. We stop it."
This year is going to be a challenge for all social media companies and Facebook is also not outside the scope of these challenges. However, companies always take decisions keeping their balance sheet in mind. So if this boycott prolongs and more companies join, then this year will change a lot for Facebook.
In the era of Corona virus epidemic, while the world economy is crumbling and jobs are facing a crisis, on the other hand, the prices of gold and silver are skyrocketing day by day.
After the pandemic, India's economy has already reached a worse state. The International Monetary Fund (IMAF) has estimated India's growth rate in this year to be 4.5%.
Not only India, the IMAF has estimated this growth rate for the world economy at 4.9%.
Amidst all this, one news that definitely attracts attention is the price of gold.
The price of gold in India at the beginning of June was around 46,600 per 10 grams, which has now crossed Rs 48,000 per 10 grams.
At the same time, in the month of June, the highest recorded increase in gold prices in the world in the last eight years.
The fall in gold prices was recorded on Friday but it was only around 400 rupees. Experts believe that the prices of gold will be seen more quickly.
Employees of Bajaj Auto, one of India's leading motorcycle manufacturers, have asked management to close a plant in Western Maharashtra after 250 employees were found to be infected with the Corona virus and two died.
Union leaders of Maharashtra state say that people are scared to come to work. The factory employs 8,000 people.
At the same time, the company says that the functioning will continue with adequate security measures.
After the lockdown at the end of March, all the industries of India were almost completely stalled and after more than two months now they started functioning.
A few days ago the International Air Transport Association (IATA) announced that by 2037 the number of air passengers would reach 8.2 billion and the aviation industry worldwide is gearing up for this increase in passenger numbers. But like other sectors, this sector was also ruined due to severe injury of corona virus.
The impact of the epidemic was so deep that countries had to close their borders and the aviation industry had to stand their planes in lockdown.
According to the International Air Transport Association (IATA), air travel has decreased by up to 98% and it is estimated that airlines by around the world will lose $ 84 billion by 2020.
IATA has also estimated that revenue per passenger will also fall by 48 per cent in 2020 compared to 2019, and the biggest threat is the aviation industry and 32 million jobs associated with it.
The Indian aviation sector will also face difficulties in the coming years due to the Corona virus. Rating agency CRISIL has estimated that the Indian aviation industry may incur a revenue loss of 24,000 to 25,000 crores.
Crisil Infrastructure's Transport and Logistics Director Jaganarayan Padmanabhan said in a press note, "Airlines are likely to incur a loss of around 17 thousand crores, airport retailers Rs 1,700 to 1,800 crores and airport operators about 5,000 to 5,500 crores.''
Rating agency Moody's has dropped India's rating. Rating means credit rating which can also be called credit in easy language.
What is meant by someone's credibility in the market is exactly the same as the country's rating in the international market. This means that it will be difficult to get loan and the pressure to return will be increased for those who have already taken loan. Moody's is the third major rating agency in the world to have downgraded India. Two other agencies Fitch and Standard and Poor had already dropped this rating.
Moody's rating drop means that bonds issued by the Indian government to raise debt in foreign markets or domestic markets will now be considered less reliable. This rating has reached the lowest level in the last twenty two years. Earlier in 1998, the rating was dropped, and it reached the same level. When the US imposed economic sanctions on India after India's nuclear tests.
The price is so low that Moody's has dropped the rating to Baa3, which can be called the lowest rung of the investment grade. This means that long-term bonds issued by the Government of India will still be considered worth investing, just as the risk is increased.
Even in November last year, there was a fear that Moody's might drop the rating, but then it retained the rating a notch above that at Baa2. However, at that time he changed his perspective on India. That is, he was expecting a problem. He changed his outlook on India to negative from stable.
Then the analysts said that there is not much worry because the economy will pick up and Moody's mood will also improve rather than deteriorate. But now this expectation is proving to be far-fetched. And the matter of concern is that even after dropping the rating, Moody's has kept its outlook negative. This simply means that he is afraid of worsening the situation from here.
It is also important to take a look at the reasons that Moody's has cited for dropping ratings. According to him, the work of implementing economic reforms in the country since 2017 has been very slow. For a long time, the pace of growth in economic growth ie GDP growth is looking weak. The condition of the treasury of the governments is deteriorating, the condition of both the central and state governments. And there is increasing stress or tension in India's financial sector. Stress here means the risk of debt not being returned or imposed or returned.
And the outlook worsening means that the agency is seeing a number of threats linked together in India's economy and financial structure, due to which the Government of India's financial situation may be weakened even more than what the agency is currently anticipating.
And the most dangerous or worrisome thing is that the economic crisis arising out of Corona is not at all the reason for this downgrade of Moody's. He says that this epidemic has only magnified the dangers which were already flourishing in the Indian economy. Seeing these dangers, Moody's changed its outlook last year.
It should be remembered here that two years before that in November 2017, Moody's had raised India's credit rating. At that time, he hoped that some important economic reforms would be implemented in India, which would gradually strengthen the economic condition of the country. But now he complains that since that time the pace of reforms has also been slow and whatever has happened does not show much effect.
Now it is important to understand what is the harm of falling rating and its effect? This is also added when deciding ratings.
The Government of India and the State Governments borrow from many international agencies. Moody's says that even before the Corona crisis, the debt of governments was seventy-two percent of the country's GDP, and now in the changed situation i.e. after the Corona crisis, when governments are needing more money for expenditure, it is estimated that This burden can increase to 84% of GDP.
You should calculate your budget. When you go to take a loan from a bank for a house or a car, the bank officer says that the EMI of all your debts should not exceed forty percent of your earnings in total. If you want to take more loan than this, then you get a private bank or an NBFC who gives you a loan at a higher rate than the market rate. There are also some private financiers who give personal loans to the people of trouble, who charge interest from three to four times and the takers get stuck in bigger trouble than before.
Similarly, when a country issues a bond or wants to borrow directly after a rating falls, it has to pay a higher interest because it is considered a risky task to lend it. As the credit rating of the country falls, the maximum rating of all the companies of the country becomes the same. According to any rating agency, the rating of any private or government company cannot be above the sovereign rating of that country. That is, it becomes difficult and expensive for private companies to raise debt. Those whose bonds or debentures are already in the market, their prices fall and the pressure on them to return the money increases.
Now where India's rating has reached, it is at the bottom of the investment grade. That is, international financial institutions can invest in it right now. But if this rating falls below this, many of the big financial institutions around the world will be forced to immediately withdraw the money of the government of India or the bonds of Indian companies, or at a paltry price. Sell in the market. This is because it is clear to these fund managers that they will not invest in any instrument below the investment grade.
After this some funds are invested, but they are just like money lenders. In this situation, countries get trapped in debt. That is why it is a matter of great concern to drop this rating.
However, there is another aspect of the coin. At this time, if the government started curbing spending in the concern of rating, then it will be very difficult to get the economy back on track. That means a well on one side and a ditch on the other side. But many experts are giving the opinion that the government should leave the worry of ratings for some time and revive the economy with full vigor and once the economy runs, it will not take much time to improve the rating.
Moody's also predicts that India's economy will show a strong boom next year after a fall of nearly four per cent in this financial year. Still, he is afraid that there will be trouble for many years ahead, that is why his outlook is weak. Now if the government does something that the picture is reversed, then this attitude will change automatically.
India's Central Reserve Bank Governor Shaktikanta Das announced on Friday to extend the loan repayment period for another three months, while providing relief to the people repaying the loans.
Reserve Bank Governor Shaktikanta Das said that the global economy has moved towards recession. The Corona epidemic has affected the government's income.
Earlier on 27 March this year, RBI had advised banks to extend the loan moratorium period for 3 months.
Repo rate reduction
Reserve Bank of India Governor Shaktikanta Das has announced 40 basis points in the repo by holding a press conference. The repo rate has been reduced from 4.4% to 4%.
The Reserve Bank has cut the repo rate three times in a row since the lowdown.
The cut in the repo rate affects the loan from banks. This affects the interest rates.
The reverse repo rate has also been cut by 40 basis points and now it has come down to 3.35%.
The International Labor Organization of the United Nations Labor Agency has warned India of suspension of labor law and violation of workers' rights at the time of Kovid-19.
Three provinces of India, Uttar Pradesh, Madhya Pradesh and Gujarat have suspended labor laws. These three provinces are ruled by the ruling BJP at the center of India. Uttar Pradesh has suspended labor laws for three years while in Gujarat also labor laws are being suspended. In the last April itself, the working hours in Gujarat factories have been increased to 12 hours daily.
According to news agency Reuters, so far such news has come out from six states. It is being said that these states are taking these steps to improve the economy. Most of these are those states with ruling BJP governments at the center.
But the International Labor Organization has said that any such step can be taken only after talks between the government, workers and employers. Any change in the labor law without doing so would be a violation of international labor standards.