Finance

One of the last larger Salzburg city bakeries has to cease operations at the end of February. Dozens of employees lose their jobs as a result.

The Ketter bakery in Salzburg will cease operations at the end of February in order to avoid bankruptcy proceedings, “salzburg.orf.at” reported on Wednesday. After the closure of the works council and the union has been approved, one of the last larger city bakeries in Salzburg closes. As the reason for the closure, the managing director Hartmut Ketter cites the increasingly difficult situation in retail in recent years. Among other things, bakery shops in supermarkets, where deep-frozen dough pieces are baked directly in the market, are one of many factors that have made the situation in retail for local bakeries increasingly difficult for years, according to “salzburg.orf.at”.

But the decisive factor for the closure – as for many in the retail industry – was the corona crisis. Due to the pandemic and the associated measures to contain it, many restaurants and canteens would currently no longer be customers. So that there are no bankruptcy proceedings, Ketter wanted to close the company properly on time, he emphasized.

As a result of the closure, the currently employed employees will also lose their jobs. In total, there are more than 50 workers who have to be terminated at the end of February. However, there will be a transition period of around one Monday, said Daniel Mühlberger from the production union according to “salzburg.orf.at”.

“Of course, the works council and the union are now supporting the employees concerned – for example with questions about severance payments or outstanding vacation entitlements. We also help when it comes to how to report to the AMS. We have now received the balance sheet and we will Above all, we also want to help those who are about to retire or who have existential problems because they have previously used a company apartment. “

The managing director Hartmut Ketter regrets the closure, but it is necessary.

Fewer hotel stays in the Corona summer – more in holiday homes.

Germany, Berlin: Walldorf Astoria. Based on the myth of the famous original in New York's Park Avenue combined with a strong shot of Berlin cosmopolitanism, the hotel will offer a luxurious address in the German capital from January. The only Guerlain Spa area in Germany will be located here.

Travel restrictions to contain the corona pandemic have torn deep holes in the sales balance of the tourism industry in Germany. The Federal Statistical Office put the decline in sales of travel agencies, tour operators and reservation service providers in the first nine months of 2020 at 61 percent. The slump in the second quarter (minus 91 percent), in which a large part of the first lockdown fell, was particularly severe, the Wiesbaden authority announced on Thursday.

Hotels, inns and guest houses were particularly hard hit by the absence of guests in the summer, with overnight stays down by 40 percent compared to the same period of the previous year. There was not only a lack of domestic guests, but above all from abroad. Trade fairs, congresses and events did not take place because of the pandemic.

The providers of holiday homes and apartments, on the other hand, recorded a slight increase of one percent in the summer half-year. Between May and October, campsites recorded six percent more overnight stays than in the same period last year. The absence of travelers from abroad was more than offset in both cases by an increase in domestic guests.

In the coastal states of Mecklenburg-Western Pomerania and Schleswig-Holstein, the number of guest overnight stays fell the least sharply in the summer half-year (minus 5 / minus 6 percent). In contrast, the city-states of Berlin and Hamburg, most of which are the destination of foreign travelers, recorded a decline of 68 and 54 percent respectively.

The board wants to be in the black again this year after a loss in the previous year – forecasts depend on vaccination success – board: need short-time work longer.

After the massive slump in 2020, Vienna Airport is hoping for an upswing from the middle of the year. “While the first three to six months will develop weakly from today's perspective, a significant increase in passengers is to be expected from summer and in the second half of the year,” the listed company announced on Thursday. After 7.8 million passengers in 2020, the board is expecting 12.5 million passengers and a small profit this year.

Due to the corona crisis, Vienna Airport handled 75 percent fewer passengers in 2020 than in 2019. The airport recorded the strongest drop in passenger numbers in April and May 2020 with over 99 percent fewer passengers, but the minus was over 90 in June, November and December as well Percent. On the weakest day of the year, Easter Monday on April 13, 2020, just 154 travelers frequented the terminal building.

Flughafen Wien AG made a loss for the first time in its history in 2020. In the 2021 financial year, however, the board wants to be back in the black. From today's perspective, this year sales of 430 million euros, an operating result (EBITDA) of 150 million euros and a net profit of 4 million euros are expected. Net debt will drop to around 100 million euros and investments will be around 62 million euros. The press release said that liquidity was secured for all foreseeable crisis scenarios.

The airport board makes the prognoses dependent on the vaccinations. “The increasing confidence of the population in the usefulness and effectiveness of the vaccination should, despite the current difficult phase, mean that more people are booking vacation flights again for summer and autumn,” explained board member Günther Ofner. “For the year as a whole, we expect around 12.5 million passengers at the Vienna location, more than 70 percent of which we expect in the second half of the year,” added board colleague Julian Jäger. The board duo is pushing for an extension of the Corona short-time work. This is a prerequisite for avoiding layoffs at the airport.

Bank of Japan Governor Haruhiko Kuroda

The Japanese central bank is sticking to its extremely loose monetary policy in view of the ongoing corona pandemic. The Bank of Japan (BoJ) decided after two days of deliberations. Japanese commercial banks can use it to get money from the central bank almost free of charge. Loans for business investments and for consumers should remain cheap.

The economy is expected to shrink by 5.6 percent in the fiscal year that runs until March 31, it said. Three months ago, the BoJ was still assuming a decline in gross domestic product (GDP) of 5.5 percent. In the coming fiscal year, however, the economy is likely to grow again by 3.9 percent, which is stronger than the initially estimated 3.6 percent.

Numerous supermarket chains in Austria are now offering FFP2 masks at a competitive price for all customers. From Monday this will be mandatory equipment.

The government presented the “3rd COVID-19 Emergency Measures Ordinance” to extend the lockdown. Also on board is the extended minimum distance and the previously announced FFP2 mask requirement.

This would have meant an enormous financial burden, especially for low-income families. As a check from “Today” showed this week, up to 300 euros a month would have been due for FFP2 masks. The government's promise to offer the citizens cheaper masks was followed by a big surprise on Wednesday.

Discounter Hofer rushed ahead and announced that it would be offering FFP2 masks in all branches at cost price of only 59 cents. A huge difference to the pharmacy price of 7.50 euros per item!

Read more: Hammer Lockdown – These new rules apply from Monday

The competition immediately followed suit. From this Thursday, FFP2 masks for 59 cents will also be available at Spar , Lidl and the supermarkets of the Rewe Group, which includes Billa , Merkur , Penny , Bipa and Adeg .

The masks will be available from almost all supermarket chains individually or in packs of 10. The delivery takes place everywhere only in household quantities of a maximum of five pieces per customer or a pack of 10.

In the fashion trade there are 50 million unsold items that have to be sold at a greatly reduced price after the lockdown. Trading makes losses.

One man's sorrow, the other's joy. Austria's fashion and shoe trade has to suffer, it is badly hit. The 4,200 dealers sit on around 50 million unsold winter items. They complain about a loss of sales of almost six billion euros because of the lockdown. 45,000 jobs are at acute risk, reports the trade association (HV).

Bargain hunters, on the other hand, can be happy: After the end of the lockdown, a huge wave of discounts will sweep across the country. “For better or worse, many dealers will sell below the cost price and thus have to accept huge losses,” says HV CEO Rainer Will about ” Today” . What is left of the winter range is sold in outlets or donated to charitable institutions, says Will. Storing the goods for the next year doesn't pay off.

The trade association is now demanding immediate “survival aid” and wants the state to reimburse 90 percent of the expenses for seasonal goods.

When his owner decided that male “Full” was too old to hunt, he made a cruel decision. He put him in a kennel in the woods.

This story moves to tears: Hunting dog “Full” certainly served its Italian owner well as a hunting dog for years, but when he got too old for that, his master made a terrible decision and simply put him in a kennel in the middle of the forest. From then on, the 12-year-old boy had to live his isolated and sad existence there. An elderly lady was his only contact, feeding him a few times a week and letting him out for some fresh air.

Fortunately, the animal rights activists of the Italian association OIPA found out about his sad existence and freed the dog grandpa from his prison. Due to the long undersupply, “Full” had to endure a few medical treatments for a chronic ear infection and even an operation to remove an ulcer from his mouth. The zookeepers regularly post the progress of “Full” on their Facebook page and are downright in love with the friendly and cuddled dog man.

The main reason for the price increase was higher electricity prices

In Germany, prices at the manufacturer level rose for the first time in almost a year. The Federal Statistical Office announced on Wednesday that producer prices increased by 0.2 percent compared to the same month last year. That was the first increase since January 2020. Analysts, on the other hand, had expected a further decline. In a month-on-month comparison, the prices that producers receive for their goods rose by 0.8 percent.

The statisticians said that the main reason for the price increase was higher electricity prices. In a year-on-year comparison, electricity prices have risen by 5.9 percent. In contrast, total energy prices were slightly lower than a year earlier. The producer prices flow into the consumer prices with a time delay, on which the European Central Bank (ECB) bases its monetary policy.

Like its competitors Goldman Sachs and JP Morgan, Morgan Stanley also benefited from a flourishing stock and bond trade. The profit jumped in 2020 by a good fifth to eleven billion dollars, as Morgan Stanley announced on Wednesday. Bank boss James Gorman sees his institute in good shape to continue to withstand the Corona crisis. “I am very confident that we have good opportunities for further growth in our position.”

In the capital market segment in particular, income climbed in the past year. The stock markets had rushed from one record to the next by the end of 2020, customers traded more and there were more IPOs. For banks, advising on such share issues is a lucrative business. Goldman Sachs and JP Morgan also had strong growth in their investment banking businesses in the fourth quarter. Experts assume that Deutsche Bank, which plays a leading role in bond trading in particular, has significantly increased its earnings in the business. The largest German financial institution presented its figures in early February.

At Morgan Stanley, group-wide revenues increased 16 percent to $ 48 billion in 2020. This was also a record. Gorman is trying to make the bank more independent of the volatile capital market business and has recently initiated two acquisitions to strengthen asset management.

In the fourth quarter, profits jumped 57 percent to $ 3.3 billion. That was the equivalent of $ 1.81 per share. Analysts surveyed by the data provider Refinitiv had only expected a profit of 1.27 dollars per share. Gorman also reiterated the plan to buy ten billion dollars of its own shares this year. Stock marketers were pleased: The shares on Wall Street rose 1.8 percent in pre-market trading.

Mankind is in the greatest crisis since the end of the Second World War – more than two million people have died with or from Covid-19, tens of millions of jobs have been destroyed and countless companies are on the verge of bankruptcy.

But the World Economic Forum's “Global Risk Report 2021” reads as if this was just the beginning. According to this, the most likely risks that the world will face in the next ten years are extreme weather events, the failure of climate protection measures and man-made climate damage. But also the concentration of digital power, digital inequality and the failure of cybersecurity are on par with the threats posed by the environment.

Infectious diseases will also remain with us: they are among the risks with the greatest negative effects. There are also weapons of mass destruction, existential and debt crises and the collapse of the IT infrastructure.

Economic dangers looming

However, according to the study, the risks mentioned are not among the most immediate dangers. Much sooner, because expected in the next two years, one reckons with employment and livelihood crises, widespread disillusionment among young people, digital inequality, economic stagnation, the erosion of social cohesion, terrorist attacks and human-made environmental damage.

In the three to five year timeframe, the focus is on economic risks, including asset bubbles, price instability, commodity shocks and debt crises, followed by geopolitical risks, including interstate relationships and the geopoliticalization of resources.

In five to ten years' time, environmental risks, loss of biodiversity, crises in natural resources and failure of climate action are most likely. Add to this the weapons of mass destruction, the negative effects of technology and the collapse of states or multilateral institutions.

The digital divide is growing

The World Economic Forum also highlights the effects of global inequalities. In the current corona crisis, different levels in the areas of health, education, financial stability and technology would have meant that the crisis hit certain groups and countries disproportionately. The shock wave of the pandemic destroyed working hours equivalent to 495 million jobs in the second quarter of 2020 alone. That too will further exacerbate inequality.

Only 28 economies are expected to grow in 2020. The further loss of human life in the wake of this and future pandemics will increase the risk of “erosion of social cohesion” – which is further increased by the growing digital divide, the fourth industrial revolution of digitization, which was accelerated again by the pandemic.

Finally, the authors recommend learning from the current crisis and arming yourself for the coming one, for example through professional risk analyzes, international cooperation and improving risk communication and combating misinformation.