Finance

After a slump of 24 percent in the previous quarter

India's economy is back on a slight growth path after the corona-related slump. The gross domestic product (GDP) of the largest democracy in the world increased by 0.4 percent between October and December compared to the same quarter of the previous year, said the country's statistics office.

Between April and June 2020, economic output slumped by 24 percent within a year. That was the sharpest drop for the second most populous country since quarterly data began to be published in 1996.

In the spring, an initially strict lockdown brought economic activity to a virtual standstill and made millions of people unemployed. The country later loosened its corona measures to a large extent – in the hope of getting the economy going again.

The country with a population of 1.3 billion has the second highest known corona cases after the USA in absolute numbers. Until recently, the corona numbers were relatively low. Around 10,000 new infections were recorded every day, while at peak times last summer it was almost 100,000 a day. Some experts spoke of some immunity in the population.

However, with the lower number of cases, people's carelessness had increased, and more infectious corona mutants were recently discovered. Recently there has been an increase in the number of cases in some regions, including the metropolis of Mumbai.

India was once one of the fastest growing economies, but was already flagging before the pandemic.

CEO Bernd Spalt assumes higher net income and announces possible acquisitions.

By Anita Kiefer Bernd Spalt, CEO of Austria's largest bank, was satisfied yesterday with the course of business of his listed Erste Group in 2020. The operating result fell slightly by 1.3 percent to 2.9 billion euros, while the net result slumped 46.7 percent to 783 million euros – which is primarily due to the high risk provisions. While this was 39 million euros in 2019, it was 1.3 billion euros for 2020. The Common Equity Tier 1 ratio rose from 13.7 to 14.2 percent.

A dividend of 50 cents will be proposed to the Annual General Meeting – in line with the recommendation of the ECB. In addition, precautions have been taken to be able to distribute an additional euro per share later if the ECB revokes its recommendations. The fact that “despite the crisis-ridden environment” one would be able to “present a stable operating result” was anything but certain in the “course of 2020”, said CFO Stefan Dörfler.

Forbearance volume is decreasing

As of January 31, 2021, the Erste Group has deferred loans of around EUR 2.3 billion. As of December 31, 2020 it was around 2.5 billion euros – the active moratoriums are therefore falling. The share of non-performing loans (NPL) was 2.7 percent in 2020 after 2.5 percent and will likely deteriorate further to three to four percent in 2021, according to Spalt's assessment. How high the risk costs for his bank will be this year after 1.3 billion euros in the previous year is difficult to estimate and depends on the course of the health crisis.

For 2021, Spalt was optimistic. The year will be that of the economic “rebound of an entire region”. Once the vaccines are well administered, people's need to consume, travel and meet people will “be great”.

Follow-up effects, no wave of bankruptcies

He does not anticipate a wave of bankruptcies in 2021. Of course, there will be “follow-up effects”, also because business models would change as a result of the pandemic. A few weeks ago, Spalt had assumed an increase in the insolvency rate of 15 to 20 percent compared to the ORF. For his bank there will be a “significantly better profit result” than in 2021. Spalt did not want to commit to one level.

AcquisitionsSpalt also expects further consolidation in the banking sector – and stated that it is looking at opportunities for acquisitions in all markets. “Also in Austria.” Details will be communicated as soon as a takeover is fixed. It will be “nothing big, transformative”, but “interesting possibilities that we are examining”. If it is possible, the Erste Group will seek “additional acquisitions”.

In addition to Austria, Erste Group's core markets are the Czech Republic, Slovakia, Hungary, Croatia, Romania and Serbia.

At the beginning of the summer semester next Monday, universities should have the opportunity to request a negative corona test for participation in courses or exams. A corresponding regulation is to be decided retrospectively in the planned amendment to the University Act (UG). This will probably be implemented by the universities after the Easter break at the beginning of April.

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“Big lectures will not end,” said Education Minister Heinz Faßmann (ÖVP) at a press conference on Friday. This is less due to lecture halls that are too small than to limited entrances and exits. However, laboratory exercises, seminars, blocked courses or final exams could take place in face-to-face form. Larger face-to-face exams, such as those in law, could become possible again, according to the President of the University Conference (uniko), Sabine Seidler.

Individual universities had already announced something similar at the beginning of the week. Implementation should now be made easier with the option of entry testing. Technically, this happens through the anchoring in the currently planned amendment to the basement, which, however, still has to be passed by the National Council. For the implementation of the test strategies, the universities receive one million euros from the ministry, for which they can use the 20 million euros that were reallocated from the university's funding to combat the consequences of the pandemic. “And if we need more money, we will provide more for it,” said Fassmann. The universities of applied sciences also received financial support.

For Seidler, however, there are still financing questions: You cannot understand why the universities have been excluded from the company testing law. This enables funding of ten euros per test.

The uniko president announced that when opening face-to-face events, particular attention would be paid to students in their first year of study. “There are new students who have not yet seen their university from the inside,” said the chairwoman of the Austrian Students' Union (ÖH), Sabine Hanger.

Both Seidler and Faßmann emphasized the importance of social exchange and discourse at universities: “University education is not a school for young adults,” said Seidler.

According to a survey of around 500 students carried out from February 18 to 24, around 60 percent said they were very or rather stressed by the pandemic in everyday university life – almost 40 percent, on the other hand, felt little or no stress. Conversely, around 60 percent also rated the switch to distance learning as very good or fairly good.

By far the greatest change is the restricted social life. “You can be grateful to have a roof over your head and food in the refrigerator, and yet it can be stressful just to watch university life on the screen,” says Hanger. In response to the greater psychological stress, Faßmann announced an increase in the number of positions in the psychological student counseling service by around 15 full-time equivalents or 40 percent.

Faßmann's initiative comes too late for the FPÖ: the summer semester will start next Monday and only today will the minister present a kind of timetable for the universities, criticized science spokesman Martin Graf. His NEOS counterpart Martina Künsberg Sarre called for the “test paragraph” to be implemented quickly. The Greens and Alternative Students (GRAS) demand that the organization of the tests is not left to the students, but is regulated locally at the universities. Student union list representative Desmond Grossmann urged the ÖH top in a broadcast “not to cower behind the government, as it sometimes seems”.

Former Spanish King Juan Carlos has paid another four million euros to the tax authorities to avert criminal proceedings for tax evasion, according to media reports. Deputy Prime Minister Carmen Calvo interpreted the news as evidence that Spain was “a functioning country” that “holds all citizens accountable”. In Spain, “nobody is above the law,” Calvo said in a radio interview on Friday.

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Citing circles of the judiciary and the tax authorities, the newspaper “El País” reported on Friday that the former head of state had paid a tax debt with the voluntary additional payment, which had resulted from the receipt of around eight million euros. A foundation transferred the money to him until 2018, among other things to pay for private trips.

Previously, the 83-year-old “Rey Emérito” (retired King) had paid 678,000 euros to the tax authorities last December for other undeclared income. It was about years of use of credit cards, which, according to media reports, had been made available to him by a Mexican entrepreneur. The royal house in Madrid takes on such private affairs as the father of King Felipe VI. never position.

Juan Carlos, besieged in Spain by corruption allegations and judicial investigations, left his home country more than six months ago and has since lived in exile in the desert emirate of Abu Dhabi. He is said to be close friends with the local Crown Prince Sheikh Mohammed bin Zayid Al Nahyan (Said Al Nahjan). The Old King let it be known through his lawyer that he was still available to the Spanish judiciary abroad.

The Supreme Court launched an investigation into the ex-head of state in June on suspicion of tax fraud and money laundering. For the four decades that he was king, Juan Carlos enjoyed immunity. However, the Supreme Court could put him in the dock for any offenses that might have occurred after his abdication in June 2014.

Journey into an uncertain future: AUA is in a deep crisis, now more aircraft have been sold.

The airline is selling three of a total of twelve long-haul aircraft.

Austrian Airlines has sold three of its twelve long-haul aircraft. There are three Boeing 767s with an average age of 28.5 years, as the AUA announced on Friday. How much the sales flush into the airline's coffers is not known. With the buyer MonoCoque Diversified Interests (MDI) it was agreed not to disclose the purchase price. The AUA board assumes that the airline will come out of the crisis a quarter smaller.

AUA boss Alexis von Hoensbroech spoke of a “big step for our fleet conversion”. The first of the three planes with the registration OE-LAT is scheduled to leave Vienna in early March for Pinal Airpark in the US state of Arizona. The next transfer flight is planned for May with the OE-LAX.

It had been known since April 2020 that AUA is parting with the three oldest of the six Boeing 767s. The remaining three Boeing 767s are between 20 and 22 years old. The six larger Boeing 777 long-haul jets are also to be kept.

A total of 28 aircraft will have left the fleet by the beginning of 2022: In addition to the three Boeing 767-300ERs that have now been sold, 18 Dash Turboprops and seven Airbus A319 jets will be handed over. The AUA will then only be on the move with around 60 aircraft. Before the pandemic, it was over 80.

The AUA had to be rescued last year because of the corona crisis with 450 million euros in state money. Specifically, the Lufthansa subsidiary received a subsidy of EUR 150 million from tax money and EUR 300 million as a loan, 90 percent of which is secured by the Republic of Austria. The German parent company injected a further 150 million euros. If the Lufthansa subsidiary AUA should not be able to repay the loan, the – then insolvent – AUA and its non-leased aircraft will become the property of the state, as it was called when the contract was signed.

Helmut Ettl has been elected to the Board of Directors of the European Banking Authority for 2.5 years.

FMA Board Member Helmut Ettl has been elected to the Management Board of the European Banking Authority (EBA) based in Paris for 2.5 years.

The Austrian financial market regulator announced on Friday. The EBA's supervisory body consists of the chairman and six other representatives with voting rights from among the 28 national supervisory authorities.

The EBA Executive Director and a representative of the EU Commission also take part.

Upper Austria extends the hardship fund for cultural workers and the art @ home funding program for online projects. As part of the Upper Austria Plan – a five-year investment package by the state with a volume of 1.2 billion euros – a total of 13 million euros have been reserved for culture. The money should go into the culture budget this year and 2022. Cultural advisor LH Thomas Stelzer (ÖVP) presented details on how it is used on Friday.

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The 13 million euros from the Upper Austria Plan are used to fund investment projects from cultural initiatives and institutions, including clubs and small cinemas. Measures for digitization, maintenance or corona measures such as the installation of plexiglass panes or ventilation are supported. Depending on the amount of the investment, a maximum of 40 to 75 percent will be replaced, but not more than 300,000 euros.

In addition, there should be a restart bonus for events. This affects both the implementation of the annual artistic program and projects with festival character or regional cinemas. Festivals that have been moved from 2020 to 2021 can apply for funding for the postponed program this year, although they have already received them in 2020.

The hardship fund for Upper Austrian cultural workers, which would have expired in March, will be extended until the end of June. Likewise, the special fund art @ home, which supports artists who have been looking for new presentation formats – such as online – in view of the Corona restrictions, will continue to run in 2021.

The culture platform (KUPF) Upper Austria was pleased in a press release: “The additional money is important so that the cultural sector can also invest out of this crisis”, says Managing Director Thomas Diesreiter. He sees it as “a good sign from Governor Stelzer that the long-term austerity program will be suspended for this year”. For a real turnaround, however, more basic financing is needed from 2022, this tab would be for an increase of five million euros.

The European Union wants to provide a “strategic compass” in security and defense policy by March 2022. This was announced by EU Council President Charles Michel on Friday at the end of the video summit of heads of state and government. This is to make it clearer what role the EU should play in defense matters. It is controversial, for example, whether and to what extent one should act independently of NATO and the USA. Federal Chancellor Sebastian Kurz (ÖVP) pushed the fight against terror.

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Michel said that the compass should determine what exactly the EU should and should not be able to do in a crisis. The basis for the work on the compass is a threat analysis completed at the end of 2020. The secret document describes, among other things, based on intelligence findings, the dangers that could arise from countries such as Russia and China.

The EU must “take on more responsibility for its security” and expand its possibilities to “act autonomously”, declared the heads of state and government after the consultations. At the same time, the Union wants to continue “to cooperate closely with NATO”. “I am convinced that strong partnerships require strong partners,” said EU Council President Charles Michel at the top talks.

Kurz emphasized that for Austria as a neutral country, multilateral cooperation with the UN and OSCE is particularly important, as well as with NATO within the framework of the Partnership for Peace. “This applies above all to peacekeeping missions and observer missions, such as that of the OSCE in eastern Ukraine, where Austria is making its contribution.” In view of the terrorist attack in Vienna on November 2nd, Kurz emphasized the fight against Islamic terrorism and “the ideology behind it, political Islam”. “We rely on a mix of national and European measures, especially with regard to foreign terrorist fighters.”

Apart from the extent of cooperation with NATO, it is also controversial how strong the EU should become in military matters. France is committed to the goal of being able to act completely independently in the long term – especially against the background of the bad experiences that were last made during the tenure of US President Donald Trump.

Countries like Germany, on the other hand, are concerned that the EU could provoke problems in relations with the USA with such a requirement. It is also argued that the EU will not be able to achieve full autonomy for the foreseeable future.

The reason for this is the comparatively low expenditure by Europeans on armaments and defense. According to comparative figures from NATO, the USA spent around 785 billion US dollars (647 billion euros) on it last year. The EU countries, on the other hand, come together to less than 300 billion dollars. Another obstacle is the special role of non-aligned and neutral states like Austria.

How the dispute over direction will turn out will probably be seen in spring 2022. Until then, the EU states want to agree on a common “strategic compass” for the first time. It is intended to determine what the EU should be able to do in a crisis – but also what not. The basis for the work on the compass is a threat analysis completed at the end of 2020. The secret document describes, among other things, based on intelligence findings, the dangers that could arise from countries such as Russia and China.

On the sidelines of their talks on the course of the EU, the heads of state and government also exchanged views with NATO Secretary General Jens Stoltenberg. This promoted an even stronger cooperation. “More than 90 percent of the people who live in the European Union live in a NATO country,” he argued. This shows that they have a very large common population and are largely confronted with the same neighborhood and the same challenges. “It all makes it perfectly clear that we need to work together.”

In this context, Stoltenberg also pointed out that the new US President Joe Biden wants to strengthen alliances that were neglected by his predecessor Trump. No country and no continent can face the current security challenges alone. “Not Europe alone, not North America alone, just Europe and North America together,” he said.

Michel said they had common priorities. Specifically, he mentioned the fight against cyber crime and misinformation. The main task of NATO is to ensure that the health crisis does not turn into a security crisis, because the threats to NATO remain, said Stoltenberg.

“Ave Caesar, morituri te salutant!” Not only every high school student knows this saying. It is questionable whether the protagonists in Olga Flor's new novel “Morituri” are really doomed. In the short, rapidly changing sections of the book they are in any case quite lively: the landlady and mayor, the speech writer, the chicken farmer and his daughter, the colored “Moa” who rhymes so well with moor, and Dr. Mur from the “Good Life Center”.

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In the low moor “a rural community which mainly consisted of urban sprawl and which, from this point of view, was incidentally planting its way up to a mountain range that was not yet recognizable in glory, meanwhile contented itself with a landscape that had to be described as hilly and generally not very outstanding” Big things are planned: A private clinic project is to be set up here – provided the environmental impact assessment procedure, which is admittedly only a matter of form, is positively concluded. There are rumors of money laundering, but superficially it is about blood laundering: Two human blood circuits are connected. What this is really supposed to do is unclear. The pioneers (or guinea pigs) of the new method, called parabiosis, are the architect, dropout and chicken and tomato breeder Maximilian and the colored Maurice. M&M, so to speak.

The inconspicuous 3485 souls community is not an idyll, that quickly becomes clear. What Olga Flor is actually about is less clear. The little life lies, political and economic tricks with which one is confronted move within the framework of what can be expected. Many problems of the rural area are gathered, including the consequences of globalization: “global province”. The refugee problem also keeps coming up. Gradually something is brewing. At the opening of the private clinic (“the entrance area was called the immigration center, that sounded so inviting”) the president is expected as a media star, meanwhile an assassin is preparing for his ultimate appearance. All of this culminates in a “showdown”, which is more confusing than clarifying.

In novels such as “Die Königin ist tot”, “Ich in Gelb” and “Klartraum”, the multiple award-winning author has shown a lot of wit and a pointed, sarcastic approach to the present. With “Morituri” she only succeeds in parts. Much is sketched out, but not pointed, more mixed up than clarified. The indecision that Olga Flor inscribes in her scene “in the semi-central mountains” has rubbed off on the Morituri in the moor: Everything is not so wild. But only half as fun. So it is best to stick to the final sentence: “You could say that nothing happened.”

(SERVICE – Olga Flor: “Morituri”, young and young, 208 pages, 22 euros)

The largest US trading platform for cryptocurrencies analyzed risks for the market before going public.

The cryptocurrency trading platform Coinbase presented the necessary documents on Thursday in the course of its IPO. These also contain possible risks for the company, as Business Insider reports.

According to Coinbase, one such is that the true identity of the Bitcoin inventor could be known with the pseudonym Satoshi Nakamoto. This would destabilize the market and cause Bitcoin to decline in value. The documents also refer to Nakamoto's personal supply of bitcoins, which amounts to over a million. Should those get into circulation, this would have massive effects on the value of the cryptocurrency.

Coinbase also warns that exposing Nakamoto's confidence in the independence of Bitcoin could suffer.

Worth 100 billion

Coinbase is currently valued at over $ 100 billion. The platform's success is also heavily related to the rise of Bitcoin. The portal is now the largest of its kind in the USA.

Nakamoto is responsible for creating the Bitcoin whitepaper, in which he describes the decentralized currency system and how it works. Since the rise of Bitcoin, there has been much speculation as to who might be behind the pseudonym. However, his identity has not yet been clarified.