Financial Times Europe - 18 04 2020

2020·50.32 MB·English

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Europeedition
FINANCIAL TIMES
SATURDAY 18 APRIL /SUNDAY 19 APRIL 2020
Design Special
Interview with
Tim Harford:
Virgil Abloh
HOW TO
why we fail to
SPEND IT
prepare for
disasters
LIFE & ARTS
Sarah Friar
‘An economic The boss Nextdoor
PERSON IN
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iron curtain
would imperil
the recovery’
HENRY PAULSON, PAGE 7
What happened to
TV’s golden age?
SébastienThibault
LIFE &
Coronavirus threatens to knock
ARTS
$500bn hole in US state budgets
3 Democrats urge extra $150bn 3 Fiscal crunch looms 3 Congress deadlocked on more aid
Stephanie Kelton
costs,suppliesandtraining.Butgover- norwhoisaleadingchampionforstate collapseintaxrevenue.OnThursday,
BRENDANGREELEY—WASHINGTON Inside
norssaycoveringtheextraspending authority,saidthebudgetissueshad thegovernorsofWisconsin,Pennsylva-
has Lunch
Theeconomicimpactofshuttingdown related to coronavirus does not go becomeevenmoreacutefollowingPres- 3Virusreports niaandMichiganescalatedtheirappeal
local economies threatens to blow a nearlyfarenough,asthecollapseinrev- identDonaldTrump’sdecisiontoleave Pages2-4 toMrTrump.“Themagnitudeofthe with the FT
$500bnholeinstatetaxrevenuesand enuesresultingfromvirus-relatedshut- responsibility for reopening the US 3BigRead crushingeconomicimpactthisvirushas
forcesavagecutstospendingoneduca- downswillbeevenmoresignificant. economytoindividualgovernors. Page5 hadonourstatesandresidentscannot LIFE &
tionandotherpublicservices,unless DemocratsonCapitolHillhavemade “Don’t give the states this massive 3Editorial beoverstated,”theywroteinaletterto ARTS
thefederalgovernmentstepsinwith another$150bninfundingforstatesa undertakingthathasneverbeendone Comment thepresident.
bailoutfunds. centraldemandforafourthstimulus beforeandthendon’tgivethemany Page6 AstudybytheCenteronBudgetand
Evenasgovernorsfocusontheimme- package,whichisbeingnegotiatedwith resourcestodoit,”MrCuomosaidyes- 3Opinion PolicyPrioritiespredictedthesumof
diatepandemicbattle,theyarewarning theWhiteHouse.ButtheTrumpadmin- terday.“Thatispassingthebuckwith- Page7 staterevenuelossescouldreach$105bn
ofaloomingfiscalcrunchthatcould istrationandRepublicancongressional outpassingthebucks.” 3Corporatehit byJune,and$290bnforthefollowing
eclipsetheGreatRecessionadecadeago leadershaverefusedtoaddthefunding, Statecapitalsbelieveeventhe$150bn Pages8-10 fiscalyear—fargreaterthan2010,the
andtipindebtedstatesintocrisis. insistingthatthenewlegislationfocuses soughtbyDemocratsinWashingtonwill 3Markets worstyearofthelastrecession.The
Aspartofitsspendingpackageatthe onreplenishinganow-empty$350bn beinsufficient.Lastweek,theNational Pages11&12 study also predicts another $105bn
end of March, Congress approved fundforloanstosmallbusinesses. GovernorsAssociationaskedCongress 3LexPage18 shortfallin2022,bringingthetotalto
$150bntohelpstatespayforhospital AndrewCuomo,theNewYorkgover- foranother$500bntomakeupforthe $500bnoverthenextthreeyears.
P&G sales of household essentials soar
as quarantine triggers cleaning blitz
monthstotheendofMarch.P&Gexecu- MrMoellernotedthatmenwereshav-
ALISTAIRGRAY—NEWYORK
tivessaidsaleshadalsospikedfordish- inglessandwomenwereapplyingless
Procter&Gamblehasproduceditsbig- care products and Tide detergent as make-up,weighingonsalesofGillette
gestquarterlyriseinUSsalesindec- houseboundconsumersdomorelaun- razorsandSK-IIcosmeticproducts.
adesasconsumersinlockdownloaded dry and prepare food themselves at Like-for-likesalesatP&G’sgrooming
‘Contagion’virologist uponhouseholdessentialsfromDawn homeinsteadofdiningout. divisioneased1percentinthequarter
critcisespoliticalresponse dishwashingliquidandCharmintoilet Hygiene-conscious consumers are andtickeduponly1percentinbeauty,
papertoTidelaundrydetergent. also cleaning more, boosting brands incontrasttoa10percentriseinfabric
Real-lifeoutbreakiPAGE3 suchasBountyandMrClean,andexec- andhomecare,9percentinhealthcare
ThedemandsurgereportedbyP&G, utivessaidtheywerepreferringdisposal and7percentinbaby,feminineand
whichbeforethecoronavirusoutbreak productstoreusableclothsandmops. familycare.
had been staging a gradual recovery “As the pandemic unfortunately Strength in North America and
Austria €5.00 Morocco Dh55
Bahrain Din2.20 Netherlands €5.00 fromyearsoftepidsales,isthelatest developedintheUSandEuropeasthe Europewasalsooffsetinpartbyweak-
Belgium €5.00 NMacedonia Den240
Bulgaria Lev8.75 Norway NKr49 signthatsomecompaniesarebenefiting quarter progressed, demand surged,” nessinChina,wherebeautyproducts
Croatia Kn31 Oman OR2.20 fromhugechangesinconsumerbehav- saidJonMoeller,chiefoperatingofficer accountforalargerproportionofsales.
Cyprus €4.50 Pakistan Rupee450
CzechRep Kc140 Poland Zl25 iourduringthepandemicwhileothers andchieffinancialofficer.“Theseprod- Manysuchproductsaresoldindepart-
Denmark DKr50 Portugal €4.50
Egypt E£55 Qatar QR20 fightforsurvival. uctsaremoreimportantthanevergiven mentstoresandduty-freestoresinair-
Finland €5.90 Romania Ron19 Stockpilinginadvanceoftheshut- theneedspresentedbythecurrentcri- ports,whichhavebeenforcedtoclose.
France €5.00 Russia €5.00
Germany €5.00 Serbia RSD520 downwasonlypartlyresponsiblefora sis, the increased awareness around Overall,P&Gproduced$17.2bnofnet
Gibraltar £4.00 SlovakRep €4.50
Greece €4.50 Slovenia €4.50 10percentjumpinUSorganicsalesand healthandhygiene,andtheadditional salesinthethreemonthstotheendof
Hungary Ft1590 SouthAfrica R120 6percentriseinwesternEuropethat timemanyofusarespendingathome.” March.SharesinP&Grose1.4percent
India Rup260 Spain €4.50
Italy €4.50 Sweden SKr55 the company recorded in the three NotallofP&G’sbrandsarebenefiting. innoontradeinNewYork.
Latvia €7.59 Switzerland SFr7.50
Lithuania €5.00 Tunisia Din9.00
Luxembourg €5.00 Turkey TL25
Malta €4.50 UAE Dh25.00
World Markets
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APRIL 18 2020 Section:FrontBack Time: 17/4/2020 - 19:14 User: mark.alderson Page Name: 1FRONT USA, Part,Page,Edition: EUR, 1, 1
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2 ★ FTWeekend 18April/19April2020
CORONAVIRUS
Historic contraction
CORONAVIRUS
China ends four decades of growth
ROUND-UP
WorldBankpresidenturgesnations
tocontinueopentradingduringcrisis
GDPplunges6.8%in
natedinWuhanandhaswreakedhavoc expectedtocomeinatafarlowerlevel, thecountry’sleadershiptoprovidefur-
starkesteconomicsignal aroundtheworld. jeopardising the government’s 2010 therstimulusandavoidanotherdecline
DavidMalpass,presidentoftheWorldBank,hascalled Theofficialdatacomeinthesame pledgethatitwoulddoublethesizeof inthesecondquarterthatwouldplunge
fromglobalpandemic
oncountriesnottousethecoronaviruscrisisasareason weekthattheIMFwarnedoftheworst theeconomybytheendofthisyear. Chinaintoafull-blownrecession.
toclosetheirmarkets,buttoensurethattradeinfood, globaleconomicoutlooksincetheGreat Thefall,whichwasworsethanana- Beijinghasalreadytakenmeasuresto
medicalsuppliesandothergoodscontinuesasacush- Depression,withoutputlossesthisyear lystexpectations,willputpressureon supportcompaniesbypumpingliquid-
THOMASHALE—HONGKONG
ionagainstthedownturn. XINNINGLIU—BEIJING expectedtofarexceedthosethatfol- ityintothebankingsystemtoboost
“Wehavetriedtodiscouragecountriesfromhoard- China’seconomyshrankatthestartof lowedthefinancialcrisisof2008. China quarterly GDP growth lendingtostrugglingbusinessesandby
ing,”hesaidyesterday.“Thereisatendencytohunker theyearforthefirsttimeinmorethan Fixed asset investment in the first introducingtaxbreaksofRmb1.6tn.
Per cent
downinacrisisbutitisacriticalpartofglobalco-opera- 40years,afterthefalloutfromthecoro- quarterfell16percentcomparedwith Theurbanunemploymentratehad
8
tionnottodothat.” naviruspandemicendedaneraofunin- lastyear,whileinfrastructureinvest- alreadyreachedarecordhighof6.2per
6
terruptedgrowthdatingbacktothelate mentdropped20percent.Totalretail centbylateFebruary,upfrom5.3per
4
1970s. salesofconsumergoodsfellby16per centinJanuary.Thegovernmenttypi-
2
Grossdomesticproductinthefirst centinMarch. callysetsanurbanjobcreationtargetof
Amazonwarehouseworkersstrikeas 0
quarterplunged6.8percentyear-on- China’seconomy,theworld’ssecond atleast10mjobsayear.
-2
fourthpersontestspositiveforvirus year,theNationalBureauofStatistics largest, was already under pressure BeijingeasedtravelcurbsonWuhan
-4
saidyesterday. beforecoronavirushit.Lastyear,the thismonth.Economicindicators,such
-6
ThehistoriccontractioninChina,the economyexpandedby6.1percent,its astrafficlevelsinbigcitiesandfactory
-8
WorkersatanAmazondistributioncentreinnorthern engineofglobalgrowthforthepasttwo lowestlevelinalmostthreedecades. activity,haveshownsignsofrecoveryas
2018 2019 Q1 2020
Italywentonstrikeyesterday,demandingthatopera- decades,isthestarkesteconomicsignal Thedatapublishedyesterdayindicate thecountryattemptstoreturntowork.
tionsbesloweddownafterafourthpersonattheware- toemergefromapandemicthatorigi- that growth for the full year is now Source: National Bureau of Statistics of China FTBigReadpage5
housetestedpositiveforcoronavirus.Thelabourunion
FiltCGILaccusedAmazonofnotrespondingtocon-
cernsraisedbyworkersatthewarehouseinTorrazza
Piemonte,whereabout1,200peopleareemployed.It Lockdown. Unwinding restrictions
saidAmazonwouldnotdisclosewhatshiftsinfected
employeeshadbeenon,citingprivacyrights.
Denmark pioneers reopening of schools
DeathrateinItalyhasdoubledsince
thistimelastyear,officialdatasuggest
CountryisfirstEuropean
All-cause deaths, top municipalities by number of deaths in 2020
Milan nationtoletkindergarten
Genoa
Bergamo
Brescia andprimarychildrenreturn
Bologna
Parma
Piacenza
Cremona RICHARDMILNE
Pesaro NORDICANDBALTICCORRESPONDENT
Verona Mar 1-Apr 4:
Modena 2019 2020 When eight-year-old Isabella Ivraeus
Rimini
Monza returnedtoschoolintheDanishcityof
Novara AarhusonWednesday,itwashardto
0 500 1,000 1,500 2,000
missherexcitement—orthatofher
Source: Istat
parents.
DeathsinItalyfromanycausehavemorethandoubled “Shewassohappytoseeherfriends
sinceayearago,statedatapublishedyesterdaysuggest, again;theyhadn’tseeneachotherapart
withmorethan70municipalitiesrecordinga10-foldrise. fromFaceTimeforfiveweeks,”saidher
father,Poul-ErikIvraeus,whorunshis
owninvestmentbusinessfromhomein
Denmark’ssecond-largestcity.
IMFgivesgo-aheadto$1.4bnurgent
Ashiswifeisadoctor,MrIvraeushad
financingforPakistan’sfundingneeds tolookaftertheirtwochildren—Isa-
bellaandfive-year-oldTheodor,whois
atkindergarten—muchofthetimeand
TheIMFhasapproved$1.4bninemergencyfinancing headmittedithadbeenhardtowork
toPakistantohelpthecountrymeetitsfundingneeds efficiently.“ItfeltlikeSaturdayevery
asitbattlescoronavirus. day,”hesaid:“Youcan’topenbusinesses
TheIMFandotherfinancialinstitutionsdealingwith ifyoukeepthekindergartensclosed.It’s
Pakistanhaveconcludedthatthecountry’seconomyin theonlywaytoreopensociety.”
thefinancialyeartoJunewillshrinkby1.5percent, DenmarkbecamethefirstEuropean
downfromearlierestimatesofanexpectedannual nationtoreopenitsprimaryschoolsand
growthof3percent.TheIMFsaidCovid-19washaving kindergartensthisweekafteracorona- Inline:pupils hasbeenahugetasktomakeallthe mosthadbeenhappytoreturn.Butnot decidedtokeephersix-andseven-year-
a“significantimpact”onPakistan’seconomy. viruslockdown,inamovelikelytobe followsocial plansandlogistics.Thestudentshave everyone was so keen. A Facebook oldsathomebutsendher12-year-old
heavilyscrutinisedacrossthecontinent distancingrules beenverypatientandthereopeninghas groupcalled“mychildshouldnotbea sontoschoolinAllerod,about30km
as other countries examine how and ontheirfirstday been without any problems. All our guineapigforCovid-19”soongottensof northoftheDanishcapitalCopenhagen.
whentoliftrestrictions. backatschoolin routinesarenewandeverythingtakes thousandsofmembers. “Iworrythattheyoungchildrenin
Myanmarreleases25,000prisoners
The decision was taken after what Lyngby,northof moretime,butwewillfindourway,” While many schools said they had Denmarkarebeingusedasguineapigs,”
aftercallstocurbtransmissioninjails Mette Frederiksen, the prime minis- Copenhagen, saidJetteBjornHansen,headteacherat attendanceratesover90percent,some sheadded.“Nooneknowsforsurewhat
ter,calledthe“surprising”successofits onWednesday Isabella’sschool,Frederiksbjerg. parents chose to keep their children theeffectwillbewiththisopening.Her
lockdown,withdailydeathsdeclining OlafurSteinarGetsson/ Teachershadseen“allkindsoffeel- away.JannieDuunkjaer,whoworksfor oldestchildwasallowedtoreturnashe
Myanmaryesterdayannouncedthereleaseofalmost afterreachingapeaktwoweeksago. EPA-EFE ings”frompupils,MsHansensaid.But an animal protection charity, has “isabletomanagealltherestrictions”.
25,000prisoners,morethanaquarterofthecountry’s Thecountryhasreported321deaths OthercountriesaresettofollowDen-
total,amidcallstoeaseovercrowdinginjailsbecauseof and6,879cases. marksoon.Germanywillstartopening
theriskofcoronavirustransmission. StartingonWednesday,hundredsof ‘Trans-Tasmanbubble’ NewZealand’sremotelocation, schoolsnextmonth,Norway’skinder-
PresidentWinMyintannouncedtherelease,which thousands of under-12s returned to NewZealandtargets toughmeasuresandlowlevelof gartenswillopenonMondayandparts
markedthecountry’straditionalnewyearholiday, classroomsthatarebothfamiliarand internationalconnectionsarelimiting ofitsprimaryschoolsaweeklater.Pri-
eliminationofCovid-19
knownasThingyan,sayingthatitwasintended“to different. Schools have been left to thespreadofcoronaviruswith1,401 mariesinSwedenwereneverclosed.
bringdelightstothecitizensofMyanmarandtaking decidethemselveshowtomanagethe confirmedandprobablecasesand CecilieHarrits,theAarhusheadof
intoconsiderationhumanitarianconcerns”. main requirement — that pupils are Fourweeksafterimposingoneofthe ninedeaths.OnThursday,15new SkoleogForaeldre,anorganisationfor
kept2mapart.Classeshavebeensplitin world’sstrictestlockdowns,New caseswerereported,thelowesttally primaryschoolparents,saidfornowthe
two,withoneteacherforevery10or11 Zealandisoncoursetoeliminate ofnewinfectionssinceMarch22. children were coping well with their
Casessofar students.Childrenaresentoutsideas coronavirus. Theapparentsuccessofthe newschoollife.Itwasharderforparents
muchaspossible,evenforsomeclasses, Unlikemostwesternnations,which strategyisgeneratingadebatein having to weigh reports that young
2,196,109 and play exclusively in subgroups of areaimingtosuppressthevirus,the Australiaaboutwhetheritcould children were scarcely at risk from
studentsfromtheirclasstolimittherisk nationof5mpeoplehassetagoalof achieveasimilarresultandcreatea Covid-19withtheirsenseofhowpre-
casesand149,024deathsby18.35(BST)onApril17 ofspreadingthevirus. completelysnuffingoutthevirusto “trans-Tasmanbubble”toenable cioustheywere.“Wehavetobalance
Source:JohnsHopkinsUniversity,CSSE
Somestudentshavebeenallocateda enabletheprogressivereopeningof travelandtradebetweenthenations. goodsenseandfeelingsallthetime,”she
Readmoreatft.com/coronavirus
shorterschooldaytoallowothersto theeconomy. JamieSmythinSydney added.“Weallhaverationalandirra-
accessresourcesatdifferenttimes.“It tionalthoughts.”
Food production
MAKE A SMART INVESTMENT
Crop farmers stung as bees struggle to pollinate under curbs
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EMIKOTERAZONO—LONDON ingahardtimesecuringworkers,most FaniHatjinaattheHellenicInstituteof obtainpaperworkarecausingabottle-
TrumFRpIDAY3v1MsARCtH2h017eValley AFiveStWaORrLDpBUlaSINnES?SNEWSPAPER DUKe£2.7a0ChranneDlIslandos£3n.00;R.e.p.ublicofIreland€3.00 BENJAMINPARKIN—NEWDELHI of whom come from Latin America. Apiculture. neck. He said: “The next couple of
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wbNcrpfawtthosohoaoopteraoearhiI“euloevpderrnoAmmeednelppkk.nerxsIudoiteo.swisnpnoecrli,vtadlnoidssehlsiseryinrgehsiceeeantcarait,thhsftcthtnhPSatotiroeeoenaieutumennnthyntonhcsaehgee]tpwijeaythsaa.i”tbie.vniU,blrolfereadaHl[nrSaaevsfdoa,bnwtiobeimsauleaedrlaonlerrbaflfxoaedknormacueconeruurakssiummoeuntnildtssnspsmocdeo.otsteerahrHtwbsrsephsaretseaenowdenanhrslamtsdiheleeopetniheanhasfloldfad,astisasebdn,niuhthwtenheeeeltriidyeg”eesssst-
34204,Bagcilar-Istanbul,Tel.[phone].
Publishedby:TheFinancialTimesLimited, Sweden:ResponsiblePublisher-ChristerNorlander thosecropscouldbeaffected,”saidNor- Zealand,MexicoandChile.However, FarooqAhmadLoneandhisworkers
BrackenHouse,1FridayStreet,LondonEC4M9BT. bertoGarciaofApimondia,theinterna- sincemanyflightshavebeencancelled migrate across large swaths of India
Tel:[phone];Fax:[phone]. ©CopyrightTheFinancialTimes2020.
Editor:RoulaKhalaf. Reproductionofthecontentsofthisnewspaperinany tionalfederationofbeekeepers. andairportsclosed,beepurchaseshave from Kashmir to Gujarat pollinating
Germany:DemirörenMedia,HurriyetAS-Branch mannerisnotpermittedwithoutthepublisher’sprior IntheUS,honeybeesgatherpollen becomeimpossibleforsomebeekeep- mustard crops and apple orchards.
Germany,AnderBrucke20-22,64546Morfelden- consent.‘FinancialTimes’and‘FT’areregisteredtrade
Walldorf,[phone].ResponsibleEditor,Roula marksofTheFinancialTimesLimited.TheFinancial andnectarfromplantsincludingber- ers,saidApimondia. Travelrestrictionshavemeantthatthey
Khalaf.Responsibleforadvertisingcontent,JonSlade. Timesanditsjournalismaresubjecttoaself-regulation
Italy:MonzaStampaS.r.l.,ViaMichelangeloBuonarroti, regimeundertheFTEditorialCodeofPractice: ries,melons,broccoliandalmonds,pol- In Europe, many beekeepers have havehadtoabandontheirnormalrou-
153,Monza,20900,Milan.Tel.[phone] www.ft.com/editorialcode linating $15bn worth of crops every beenabletomovearoundwithinstate tineoftravellingatnighttoavoidthe
Owner,TheFinancialTimesLimited;Rappresentantee
DirettoreResponsabileinItalia:I.M.D.Srl-MarcoProvasi- ReprintsareavailableofanyFTarticlewithyour year,accordingtotheDepartmentof borders,butinsomecountriessuchas daytimeheat.“Ifwe[travel]intheday
ViaG.Puecher,220037PadernoDugnano(MI),Italy. companylogoorcontactdetailsinsertedifrequired Agriculture. Greece, beekeepers have been banned the bees will die because of the
Milanon.296del08/05/08-PosteItalianeSpA-Sped.in (minimumorder100copies).
Abb.Post.DL.353/2003(conv.L.27/02/2004-n.46)art.1 One-offcopyrightlicencesforreproductionofFTarticles KelvinAdee,aleadingUSbeekeeper fromtravellinglongdistancestoallow heat...Thisisthefirsttimewehave
.comma1,DCBMilano. arealsoavailable. with75,000hives,saidvisaandtravel thebeestopollinate. Busy:ahoneybeesucksnectarand witnessedsuchhardships,”hesaid.
Spain:BermontImpresion,AvenidadeAlemania12,CTC, Forbothservicesphone+442078734816,oremail
28821,Coslada,Madrid.LegalDepositNumber [email protected] restrictionsmeantthesectorwashav- “Insomecasesbeeswillstarve,”said pollenfrommustardplantsinDhaka AdditionalreportingbyAndreaRodrigues
APRIL 18 2020 Section:World Time: 17/4/2020 - 18:42 User: john.conlon Page Name: WORLD1 USA, Part,Page,Edition: EUR, 2, 1
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18April/19April2020 ★ FTWeekend 3
CORONAVIRUS
Virologist behind ‘Contagion’ film
SouthKorea
Drive-incinemasoffer
respitetoaudiences
shifts focus to real-life outbreak
TheopeningcreditsforKorean
thrillerBeastsClawingatStraws
startedtorollasYeoShi-hyun
preparedcupsofsteaminghot
Lipkin blames insufficient and inadequate testing and tracing for growing number of deaths instantnoodlestoeatwithher
boyfriendinsidethecar.
Thecouplewereamongthe
hundredsparkedinfrontofthe
KATRINAMANSON—WASHINGTON screenatJayu-rodrive-intheatre,
whichisenjoyingasuddenjumpin
Ascooped-upfilmwatchershavetaken popularityduetocoronavirus.
macabrerefugeinthepandemicmovie “Thisismyfirstdrive-in
Contagion, the scientist who lent his experience.Ihavewantedtogoout
expertisetothe2011thrillerhascor- towatchamovie,butI’vebeen
ralledtheoriginalstar-studdedcastto reluctanttogotoatraditional
helpfightcoronavirus. theatrebecauseofthevirus,”said
Inaseriesofhomemadepublicserv- the29-year-oldMsYeo.
iceannouncements,actorKateWinslet Drive-incinemainSouthKoreais
soapsuponcameraaskingviewersto thrivingafteryearsofdeclineand
washtheirhandsliketheirlivesdepend monthsofrestrictionsonhuman-
onit,MattDamonbegspeopletostay to-humancontact.Couplesand
sixfeetfromeachotherandLaurence familiesalikearedesperatefor
Fishburne warns half the population distractionandabreakfromthe
couldcontractCovid-19. confinesoftheirapartments.
“Frankly,we’reintrouble,”saidIan YoonHye-kyung,ofthetheatre,
Lipkin,the67-year-oldvirologistand saidsaleshadrisen50percent
physicianbehindthenewsegmentsand sincethecoronavirusoutbreakhit
the movie. More deadly viruses will thecountryinFebruary.
emerge in future, he believes, and a “Youngloverswanttomeeteach
series of government mis-steps have other,nomatterwhat,”shesaid.“I
helpedspreadthecurrentonearound amsohappythatthebusinessis
theworldatanalarmingrate. booming.”
“It’sgoingtobedifficulttocomeoutof Whilecinemasacrossthecountry
hiding,”headdedinreferencetothe —typicallylargemultiplexesinside
lockdownsadoptedbymanycountries shoppingmalls—haveremained
tocontainthevirus’sspread,citingthe open,movie-madKoreanshave
absenceofvaccines,effectivecontact stayedaway.
tracingandisolationfacilitieswhilevac- Audiencenumbershavefallento
cinesaredeveloped. theirlowestlevelin15years,down
AsdirectoroftheCenterforInfection 88percentinMarchfromayear
andImmunityatColumbiaUniversity, earlier,accordingtotheKorean
heisnowhuntingtheoriginofcoronavi- FilmCouncil.LossesforFebruary
rusandleadinghisteam’sworkonCov- alonewere$400mandabout30
id-19tests,preventionandtreatment. percentofthecountry’s513
Butinthemidstofhisworkonthe theatresareclosed.
currentpandemic,hewasinfected.“I “Manytheatresareteeteringon
lostsixweeks,”hesaid. thebrinkofcollapse,asonly5per
Hefirstlearnedofthenewdisease centoftheirseatsarefilledevenon
from contacts in China, where it Thriller:Kate Butauthoritiesinthefictionalpan- mightfireAnthonyFauci,thetopoffi- ‘Nobody centric”,provokinguproaramongUS weekends,”saidHwangJae-hyun,
emerged, in mid-December. By early Winsletstarsin demic reacted markedly faster than cialadvisingtheUSonitscoronavirus allies. “None of this is going to be ofCJCGV,aleadingmultiplex
knowshow
January,hewasurgingChinesecounter- ‘Contagion’.She someoftheirreal-lifecounterparts. response, before reversing course on resolvedthroughbaitingandnational- cinemachain.“Financialsupport
parts to publish the virus’ genetic andotheractors “We[intheUS]wereslowoutthe both. farthis ism...theseareglobalproblemsthat fromthegovernmentisbadly
sequencingtoaidresearchandvisiting fromthefilm gate.SowastheUK.Thepeopleofthese ProfessorLipkindescribedDrFauci havetobeaddressedwithglobalsolu- neededtostayafloat.”
thingis
seniorChineseofficials,includingpre- havebeen nationshavepaidaprice,”Professor ashavingintegrity,callinghima“cult tions,”saidProfessorLipkin,whohas Butjustweeksearlier,thelocal
mierLiKeqiang,todiscussthedisease. recruitedfor Lipkinsaid,blaminginsufficientand hero”asthepandemicsweepsAmerica. goingto beenawardedtwomedalsforhiswork filmindustrywasatitszenith,
Hewentintoafortnight’squarantineon publicservice inadequatetestingandtracingforrising Sofarmorethan33,000peoplehave byChinaandadvisedonthe2003Sars revellinginthesuccessofParasite.
spread.It
hisreturninearlyFebruarybutsayshe announcements. fatalitynumbers.“Germanyputarapid diedwith670,000infected—theworst outbreak. Theblackcomedy,thefirstforeign-
contractedCovid-19intheUS. Below:ProfIan emphasisontestingandcontainment numbersofanycountryintheworld. couldbea Hesaidtheefforttointroduceaccel- languagefilmtowinanOscarfor
Colleaguesurgedhimtogotohospital Lipkin andmanagedtheoutbreak—there’s “It’struethatstateshavetheirability erated vaccine programmes could bestpicture,hadignitedhopesofa
third,it
buthedecidedtotreathimselffrom WarnerBros/Kobal/ nothingelsetoexplainwhytheyhave tomakedecisionswithintheircatch- delivervaccinesmuchfasterthanthe newgoldeneraforKoreanfilm.
home using hydroxychloroquine, an Shutterstock suchalowdeathrate.” mentareasbuttheytaketheirclues couldbe usual18-24months.“Peoplearetalking Sincethen,however,the
antimalarialsomebelievecouldhelp IntheUS,hebelievesoneofthegreat- fromnationalleadership,”hesaid. aboutlessthanayear,whichwouldbea openingsofabout20Koreanfilms
theentire
treatment.“Therewereacoupleofdays estchallengesistheinconsistencystem- ProfessorLipkin,whowasplayedasa dramaticchange,”hesaid,thoughhe thatwerescheduledtobereleased
whenIwasalittleafraid.Youdon’twant mingfromthetop.PresidentDonald maverickinthefilmbyElliottGould, world warnsthatgainingregulatoryapprovals inthefirsthalfofthisyearhave
togetthis,”hesaid. TrumphadarguedtoreopentheUS hastakentomakingfrequentappear- couldbethegreatesthurdle. beendelayedorcancelledbecause
population’
Therealisticthrillerhehelpedcreate economy by Easter and implied he ancesonFoxNewsinthehopethatthe Heisnowteamingupwithresearch- oftheoutbreak.
with director Steven Soderbergh and presidentorhisfriendswillhearhim ersinChinawhowanttoconductanti- Againstthatgloomyoutlook,
writer Scott Burns has risen up film advocate for measures he believes are bodytestsofdatedbloodbanksamples drive-intheatreshavemadean
charts nine years after its release, crucial to stemming the outbreak: nationwidetoseeifthediseasecircu- unlikelycomeback.Analyststhink
becoming the must-see movie of the extending lockdowns and hiring latedlongbeforepatientswereformally thatpicturesquecountryside
pandemicforitseeriesimilaritiestothe “armiesofhealthcareworkers”totrace loggedinWuhan,thecitywhereChi- locationscombinedwiththe
currentoutbreak. andisolatecontactsoncetheeconomy nese authorities say Covid-19 origi- intimacyofprivatevehicleshave
Thefilmplottracesadeadlyvirus reopens.“Nobodyknowshowfarthis nated. sparkedfeelingsofnostalgiaand
jumpingfrombattohumanviainter- thingisgoingtospread.Itcouldbea Hebelievesthevirusmayhaveorigi- romanceamongaudiences.
mediaryanimal,panic-buyingempties third,itcouldbetheentireworldpopu- nated in the wild animal trade and FansofSouthKorea’sremaining
stores,scientistsscrambleforavaccine lation. These are just numbers we’re undergone“repeatedjumps”fromani- 21drive-insarehopefulthevirus
while self-interested politicians and speculating,”hesaid. maltohumanintheweeksbeforethe willspurasecondlifeforthe
conspiracytheoristsgumuptheworks. ProfessorLipkinisalsokeentostamp firstcaseswerelogged.Thishasrecent outdoortheatres.“Evenafterthe
Whenthefilmfirstcameout,applica- out what he says is a xenophobic precedents:Mersjumpedfromdrome- virusiscontained,Ibelievethat
tionsfortrainingattheCentersforDis- responsethatblamesChinafortheSars- darycamelstohumansin2012,and peoplewillstillvisitourdrive-inas
easeControlandPreventionwentup Cov-2 virus that causes the disease, Sarsfromcivetcatstohumansin2003. theydiscoverthejoyfromthe
dramatically, he said. “The movie whichMrTrumphasrepeatedlycalled Buthesuspectsthatwhateverthey experience,”saidMsYoon.
inspiredpeopletogointothiswork.I’m the“Chinavirus”.Thisweekthepresi- find,virusesofanevenmoredamaging ReportingbySongJung-a
told they’re downloading it in China dentsuspendedfundingtotheWorld naturewillcomeinfuture.“Idon’tthink andEdwardWhite
whichIdidn’tknowtheycoulddo.” HealthOrganizationforbeing“China- thisisthelastone,”hesaid.
China World Medical Association Air support
Wuhan revises up death toll Doctors group accuses California police launch
amid claims of cover-up WHO of ‘political games’ drones to contact homeless
CHRISTIANSHEPHERD—BEIJING handlingoftheoutbreak.Wuhanbore KATRINAMANSON—WASHINGTON becauseChina,whichclaimsitaspartof PATRICKMCGEE space, a US rival to China’s DJI, the
thebruntofChina’sefforttocontrolthe CLIVECOOKSON—LONDON itsterritory,demandsthatthirdcoun- SANPABLO,CALIFORNIA world’slargestdronemaker.
OfficialsinWuhan,thecentreofthe
coronaviruspandemic,haverevisedup outbreak,withthecityandsurrounding A group representing 10m doctors triesandinternationalbodiesdonot TwopolicedepartmentsinCalifornia Adayearlier,inChulaVista,nearSan
the number of people who died by Hubeiprovinceputunderastrictlock- around the world has censured the treatitinanywaythatresembleshow havedeployedthefirst“homelessout- Diego,policecompletedathree-hour
more than 1,000, as China seeks to downinlateJanuary.Accordingtothe WorldHealthOrganizationforbeing independentstatesaretreated. reach”dronesintheUStobroadcast homelessoutreachmissionover“diffi-
dispelaccusationsthatitcoveredup newdata,about60percentofChina’s involved in “political games” by TaiwanhasaccusedtheWHOofdis- coronavirussafetymessageswhilepro- cultterrainanddensefoliage”.Without
thefullextentofthehealthcrisis. confirmedcaseshavebeeninthecity. excludingTaiwan,whichdamagedthe missingitsearlyeffortstoraisethered tectingofficers. unmannedaircraftitwouldhavetaken
ResidentsofWuhanhavebeenhailed healthbody’sresponsetothecoronavi- flag that the virus might be spread twodays.The“sensitiveandhumane”
The city announced yesterday it asheroes.Asthelockdowneasedinlate ruscrisis. amonghumansbecauseofapro-China InSanPablo,northofOakland,police mission covered 26 encampments
hadincreasedtheoriginalcountof2,579 March,theyemergedhauntedbytheir bias. saidthedronestheylaunchedonThurs- acrosseightsquaremiles,accordingto
by1,290deathsandsaid325moreindi- experiencesandcriticismbegantogrow The criticism by the World Medical It has been excluded from having daywereonepartofaprogrammethe policechiefRoxanaKennedy.
viduals with confirmed cases later bothinsideandoutsideChinaoftheoffi- AssociationcameafterPresidentDon- “observer status” at the UN body’s departmentwasacceleratingassocial The drones allowed the two police
recovered. cialversionofevents. aldTrumpthisweekcutfundingtothe annual meeting of decision makers distancingguidelineslimitoperations. departmentstobroadcastinformation
Officialssaidthechangeswerethe ZhangLifan,aBeijing-basedhistorian WHO,accusingitof“severelymisman- since2018. “Thistechnologyhasexponentially inEnglishandSpanish.Bothwereada-
result of patients who died at home and political commentator, said the agingandcoveringupthespreadofthe TheWHOisbattlingcriticismfrom growninthepastcoupleofyearsandit mantthetechnologywasbeingusedto
withoutadiagnosisintheearlystagesof revisionwasanattempttodisplaya coronavirus”. multiplefrontsdespitewidespreaddis- willexponentiallygrowoverthenext offerspecificservicesandinformation,
theoutbreakandfailuresbyhospitalsto stanceof“seekingtruthfromfacts”in TheWMAsaidtheWHO’sfailureto may at Mr Trump’s decision to pull fiveto10years,especiallyintheenvi- notpatrolpopulationsorconductunre-
reportnumberscorrectly. thefaceofthemountingdoubts. heedTaiwan’searlywarningsresulted morethan$400moffundingfromthe ronmentweareintoday—wherehav- strictedsurveillance.
China has been attacked in recent “Thistouchesupontheglobalratioof in“errorsthatledtotheworldpayinga bodyfromUSalliesandhealthprofes- ingthatphysicalpoliceofficerresponse “Thelastthingwe’dwantisforsome-
days by a number of world lead- infectionstodeathandsomehavenoted highprice”duetoitshandlingofthe sionals,citingitsfailure“toadequately isn’t always the best solution,” said onetoviewthisasanenforcementtool,”
ers.EmmanuelMacron,Frenchpresi- thatChina’sfiguresseemabnormally 2003Sarsoutbreakandthecoronavirus obtain,vetandshareinformationina policecaptainBrianBubar. MrBubarsaid.
dent,toldtheFinancialTimesthatthere low,”MrZhangsaid. pandemic.ItcalledontheWHOtogive timelyandtransparentfashion”. Drones have been used to enforce SergeantRobertRicher,whomanages
was a lack of transparency from the OnWeibo,theChinesesocialmedia greater participation to Taiwan and The US chapter of the WMA was quarantinesinChina,buttheUShas SanPablo’sdroneteam,saidhehad“no
countryoveritshandlingofthecorona- platform,manycommentatorspraised heeditswarningsandearlyinsightsin among those who have criticised Mr shied away from them. In Elizabeth, doubt”policeacrossthecountrywould
viruscrisis. theupwardsrevision.However,some future. Trump’sdecisionas“dangerousmove”, NewJersey,therewasabacklashwhen beusingdronesforsimilarmissionsin
“Let’snotbesonaiveastosay[China continuedtoquestionthereliabilityof “The Covid-19 pandemic has illus- callingforinternationalco-operationto policeuseddronestoencouragesocial futureastheyare“waycheaper”than
has]beenmuchbetterathandlingthis,” theofficialdataforWuhanandtherest tratedwithterribleconsequenceshow fight the pandemic. Richard Horton, distancing with automated messages helicopters.“Itjustallowsyoutodoalot
hesaidinaninterview.“Wedon’tknow. ofthecountry.“Ifthedeathfiguresadd wronganddamagingforglobalhealthit editor-in-chiefofTheLancetmedical tellingpeopletodisperse. morewithoutexposingofficerstodan-
Thereareclearlythingsthathavehap- athird,thenshouldn’ttheconfirmed istoexcludeTaiwanfromunrestricted journal, described the US president’s InSanPablo,theuseofdronesgave ger,”hesaid.
penedthatwedon’tknowabout.” casesalsogrowbyathird?IfWuhan andeffectiveparticipationintheWorld decisionas“acrimeagainsthumanity”. officerstheirfirstpointofcontactwith Withinmonths,theSanPablopolice
DominicRaab,UKforeignsecretary, deathsgrowbyathird,thenshouldn’t HealthOrganization,”twoWMAlead- “Everyscientist,everyhealthworker, homelesscommunitiessinceMarch19, departmentalsohopesitcanautomate
saidonThursdaytherecouldbe“no deathsinothercitiesintheprovince erswroteinalettertoTedrosAdhanom every citizen must resist and rebel whenContraCostacountyfellunder its drones to link up with the city’s
returntobusinessasusual”withChina, alsogrowbyathird?”oneuserwrote. Ghebreyesus, WHO director-general, againstthisappallingbetrayalofglobal “shelterinplace”orders. “ShotSpotter”programme,whichcan
andsaidtheinternationalcommunity Additional reporting by Emma Zhou in releasedyesterday. solidarity,”hesaidinatweet. The operation involved two of its already detect gunfire with precision
willwantfurtherclarityaboutBeijing’s Beijing TaiwanisexcludedfromtheWHO SeeLex threedronesmadebyImpossibleAero- thankstosensorsdottingthelandscape.
APRIL 18 2020 Section:World Time: 17/4/2020 - 18:38 User: john.conlon Page Name: WORLD2 USA, Part,Page,Edition: USA, 3, 1
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4 ★ FTWeekend 18April/19April2020
CORONAVIRUS
Bleak outlook Debt relief
BoE chief fears ‘scarring’ to UK economy G20 urged
to bolster
emerging
Governorbacksforecasts Responsibility’sassessmentthatgross to keep them viable, although he bleaboutasecond-quarternumberof ruptionloanscheme,hesaidthecurrent economies
domesticproducthadfallenoffacliffin stressedthiswasadecisionforthechan- thatnature.” situation“hastobesortedout”.
ofGDPfallingoffacliff
thepastmonthwasfairandsuggested cellorratherthanthecentralbank. Whilethegovernorsaidamonthago He suggested one way to ease the
inthepastmonth Britain’seconomicplightmightbeeven Mr Bailey said the BoE was in the thathewaslookingatlotsof“V-shaped” pressureonbankswasforthegovern-
worsethanthepicturepaintedbythe process of putting together its own chartstosignifyarapidbounceback, menttooffera100percentstateguar-
Britishfiscalwatchdog. forecasts for the UK economy to be yesterdayhewasmuchlesswillingtobe anteeratherthan80percentforthe JONATHANWHEATLEY,MICHAELSTOTT
CHRISGILES—LONDON
WithBritainfacingalongperiodof publishedinearlyMay. drawnontheshapeoftherecovery,say- largenumberofsmallcompaniesseek- ANDDAVIDPILLING—LONDON
Andrew Bailey has backed fore- pain,hesaidbanksmustquickly“sort Thebankwaslookingatreal-time ingtheBoEwaslookingathowmuch ingnottoborrowmorethan£25,000. Richcountriesfacecallstooffermore
caststhatoutputintheUKeconomyhas out”thedelaysingettingloanstosmall indicatorsshowingbigdropsinoutput persistentscarringoftheeconomywas The longer the coronavirus crisis supporttothedevelopingworldinthe
alreadyplunged35percentsincethe businesses. formanysectors,largerisesinclaims likelyaftersuchadeepdownturn. lasted,headded,themorecompanies fightagainstcoronavirus,aftertheG20
coronaviruslockdownbutwenteven But Mr Bailey warned there also foruniversalcredit,andbusinesssur- ChancellorRishiSunakhasrepeat- would need new equity rather than dealthisweektosuspenddebtrepay-
furtherbywarningtherecouldbeper- neededtobecautioninprovidingloans veyssuggestinghighusageofthegov- edlysaidthatthegovernmentcannot loans. mentsfortheworld’spoorestcountries
sistent“scarring”totheeconomythat to companies that may not be able ernment’sfurloughschemeforstaff. saveeverycompanyoreveryjob.But Thegovernorsaid:“It’sanissuethat wascriticisedfornotgoingfarenough.
wouldcreatealastinghangover. topaytheirdebtsafterthelockdown AskedabouttheOBR’ssecond-quar- thegovernorsaidthatwhilehesympa- willcomeontotheagendamore.For
Speakingonaconferencecalltojour- ended. terGDPforecastofa35percentdecline thisedwiththebanks’operationaldiffi- largefirmsitisequityinamoreconven- Internationalreliefeffortshaveconcen-
nalistsyesterday,theBankofEngland Hesuggestedthatsmallcompanies fromthestartoftheyear,hesaid:“I cultiesindealingwithhugedemandfor tionalsense.Forsmallfirms,itisproba- tratedontheworld’spoorestnations,
governor said the Office for Budget mightneedgrantsfromthegovernment don’tthinkthereisanythingimplausi- financeunderthestate’sbusinessinter- blymoreintotheworldofgrants.” many of which are in sub-Saharan
Africa,butsomeargueothereconomies
alsoneedurgenthelp.Manydeveloping
countriesnotcoveredbytheG20agree-
Middle East. Coexistence tension ment,whichfrozebilateralloanrepay-
mentsfor76countriesuntiltheendof
thisyear,sufferedfromlargedebtbur-
Arab medics dominate Israel’s frontline fight
densbeforethecrisisstruck.
“Developedcountriescanfindtheir
ownsolutionsandtheycanalsoorgan-
isebillionsinaidforthepoorestnations
but the middle-income countries are
sandwichedinthemiddlewithnoth-
Majorityofthenation’skey ing,”saidJuanManuelSantos,former
presidentofColombia.
healthworkerscomefrom
Hehasjoinedformerpresidentsof
theminoritycommunity Brazil,MexicoandChileinanappealto
multilateralinstitutionstodoublenet
lendingtoLatinAmericaandtheCarib-
bean,andtotheIMFtoexpandliquid
MEHULSRIVASTAVA—HAIFA
assetsknownasspecialdrawingrights.
ZahiSaidwasdrivingtothemedical “TheCovid-19pandemicisashockof
clinicherunsintheIsraelicityofHaifa unprecedented magnitude, uncertain
when his phone rang — Benjamin duration and catastrophic conse-
Netanyahuwantedtoseehim. quencesthat,ifnotproperlyaddressed,
The four-time prime minister had couldleadtooneofthemosttragicepi-
justwatchedtheArabdoctorontelevi- sodesinthehistoryofLatinAmerica
sion,discussinghowthegovernment andtheCaribbean,”theywrote.
needed to reach out to Arab Israelis TheIMFforecastthisweekthatLatin
aboutthedangersofcoronavirus,and American gross domestic product
hewantedsomeadvice. wouldshrinkby5.2percentthisyear.
Dr Said, who also advises one of Africannegotiatorssaidfurthersteps
Israel’slargesthealthcareproviderson wereneededtohelptheircontinent.
Arabissues,turnedhiscarroundand VeraSongwe,secretary-generalofthe
drovestraighttoMrNetanyahu’sofficial UNEconomicCommissionforAfrica,
residenceinJerusalem.Sincethen,Dr callingfor“atwo-year,across-the-board
Said has been on national television moratorium”ondebtrepayments,said
almostdaily,takingquestionsfromAra- thatwithoutit“thiscrisiswillthrow
bicspeakers,bustingmythsandbegging everybodyoffacliff.Whatyouwillhave
peopletostayathometohelpbreakthe isatotallydisorganiseddefault.”
chainofnewinfections. DonaldKaberuka,anAfricanUnion
ButwhenhewasaskediftheArab specialenvoyondebt,saidafterbilat-
community in Israel could expect to eralandmultilateraltalksitwouldbe
receiveequalaccesstocoronaviruscare importanttodiscussthe$115bnofdebt
as the Jewish majority, Dr Said gave a owedbyAfricancountriestoprivate
diplomaticanswer. creditors.Anystandstillonpayments
“Weknowit’snotasecretthatthe wouldhavetostopshortofadefault,
resourcesinthiscountryarenotequally whichcouldlockAfricangovernments
distributed,butIhavetolookatthe outofthemarketsforyears,hesaid.
glassashalf-full,”hesaid.“WhenImeet Evenexpandingthisweek’sG20deal
Netanyahu,atleastheislisteningtous.” Lifesaver: afterthetwocountriessignedapeace politicalalliesthatArabswereignoring ‘AsanArab, racistagainstthem;thisisaveryslip- tocoverrepaymentstoprivateinves-
Since Mr Netanyahu first came to DrJameel dealin1994andIsrael’sArabcommu- health directives, none of the Arab peryanddangerousnotion.” torswouldbe“woefullyandshockingly
otherjobs
powerin1996hehasdenigratedArab Mohsenat nitycontinuestoholdmedicalworkers majoritycities,eventhedenselypopu- TheworkofArabmedicssofarhas inadequate”, according to Stephanie
politiciansassupportersofterrorism, workasheadof inhighregard. latedneighbourhoodsofEastJerusa- areclosed not brought their communities any Blankenburg,headofdebtanddevelop-
strippedArabicofitsstatusasanofficial theinfectious “ThePolish[Jewish]motherusedto lem,hashadmajoroutbreaks. immediatebenefits,saidHaniDaoud, mentfinanceatUnctad,theUN’strade
offtous,so
languageandlastyearpassedalawthat diseases wanthersontobeadoctor,butnowshe ButforOsamaTanous,a34-year-old headofapharmacists’associationrep- anddevelopmentagency.“Thebreath-
gave Jews alone the right to self- departmentat wantshimtogetatechjob,”DrSaid paediatricianwhoquotesthe19thcen- webecame resenting almost 300 pharmacies in ingspace[oftheG20deal]iswelcome
determination in the state of Israel. HillelYeffe joked.“TheArabmotherstillwantsher tury German pathologist Rudolf Vir- Israel’spredominantlyArabnorth. butitisatinysteptowardswhatwill
doctors’
Now,inthebattleagainstCovid-19,Mr MedicalCenter childrentobeinmedicine.” chowinhisanalysis,thesuddeneleva- Hiscolleagueswerethefirstdefend- have to be very comprehensive sover-
Netanyahuneedstheirhelp. InKafraQara,anArabtownsouthof tionofArabdoctorstonationalsaviours ersagainstthevirusaspeoplerushedto eigndebtcancellationandrestructuring
JameelMohsen
ArabsmakeuponlyafifthofIsrael’s Haifawithsomanymedicalprofession- willnotusherinnewequalityforArab stockuponmedicine,masksandhand forthedevelopingworld,”shesaid.
population,butrepresenthalfthecoun- alsthatresidentscallitthecityofdoc- communities.Instead,hesaid,itwillbe sanitiser.“Thegovernmentdidn’tmake Unctadhascalledfor$2.5tninassist-
try’spharmacists,aquarterofitsnurses tors,JameelMohsenwasmorecritical. usedtojustifycontinuedprejudice. anyprecautionsforus,”hesaid,point- ancefordevelopingcountries,including
and just under a fifth of its doc- “AsanArab,otherjobsareclosedoff “Israelhasawayofcelebratinggood ingtotheinadequatemaskshisstaff $1tnindebtcancellationand$500bnfor
tors,accordingtotheCentralBureauof tous,sowebecamedoctors,”hesaid, Arab doctors, while discriminating woreinthefirstfewweeks. healthandsocialservicesintheformof
Statistics.Someofthenation’slargest peelingofflayersofprotectiveequip- againstallotherArabs,sothatdoctors At the century-old Ziv Medical grantsfromrichcountries.
hospitals have Arab doctors heading mentaftersettingupaCovid-19wardat becometheambassadorsofthisbeauti- Center,JalalTarabeia,theheadofinfec- SonjaGibbsattheInstituteofInterna-
majordepartments,andthecountry’s theHillelYeffeMedicalCenter,where ful Israeli system of coexistence,” he tioncontrolsandaconsultantforthe tional Finance, an industry body,
leadingvirologistisArab. heisheadofinfectiousdiseases. said,referringtoaflurryofrecentarti- ministryofhealth,saidthepaceofwork warnedoftheriskofarecurrenceofthe
Arabsaredisproportionatelyrepre- Israel’sdependenceonitsArabdoc- clesinIsraelinewspaperspraisingArab hasbeensofranticthatheandhisArab pandemic. “Purely in terms of self-
sented in the medical community torshascomeatatimewhentheout- medics. colleagueshadnothadtimetoponder interest,ifwedon’tacttoaddressthe
becauseattainingprofessionalqualifi- break is developing quickest in the “Itmakesitappearthatnowthatyou thepoliticsofthesituation. problem—andhighdebtlevelsareone
cationshasbeenonewaytopushback country’s Jewish ultraorthodox com- haveArabdoctorssavingJewishlives, “Weareveryproudtobeonthefront- facetofglobalinequality—itwillcome
againstpoliticalmarginalisation,Arab munities. In contrast, despite claims andhelpingIsraelatatimeofnational line;leavepoliticsfaraway,wejustwant backtohauntus,”shesaid.
doctorssaid.ManytrainedinJordan fromMrNetanyahuandhisrightwing crisis,thereforeitistimetostopbeing tosavelives,”hesaid. SeeLex
Default worries Brazil
Argentina crisis deepens as Fernández offer Bolsonaro alleges plot to remove him after
on debt restructuring leaves investors cold sacking of health minister prompts anger
BENEDICTMANDER—BUENOSAIRES omynowinitsthirdconsecutiveyearof ciousnegotiationthatwillonlyendin BRYANHARRISANDANDRESSCHIPANI seriousnessofcoronavirus,reactedfuri- Forweeks,MrBolsonarohasfaced
COLBYSMITH—NEWYORK recession. oneoftwooutcomes:harddefaultor SAOPAULO ously,accusingMrMaiaofturningthe unrelentingcriticismfromacrossthe
InvestorsrecoiledatArgentina’sharsh The stakes for securing a deal are Argentinasweeteningthedealterms”. BrazilianpresidentJairBolsonarohas nation’sgovernorsagainsthimandtry- politicalspectrumasaresultofhisplay-
debtrestructuringofferon$83bnof heightenedasArgentina’seconomyhas Headds:“Whenpushcomestoshove, accusedthecountry’spoliticalleaders ingto“stickaknife”inthefederalgov- ing down of the Covid-19 outbreak,
foreign debt, with many warning it littlefiscalspacetomanoeuvreandis AlbertoFernándezwillhavetotakea oftryingtoousthimafterhesackedhis ernment. whichhasalreadykilledalmost2,000
would lead to the country’s ninth alreadybattlinghighinflationasthe politicaldecisiontomakeadeal.” popular health minister following “Itseemsthattheintentionistoget Brazilians.
defaultunlesstermswereimproved. pandemicthrowstheglobaleconomy Sebastián Brown, Deutsche Bank’s clashesoverhowtohandlethecorona- me out,” Mr Bolsonaro said in a TV TheBrazilianleaderhasrepeatedly
intodisarray. chief economist for Latin America, virusoutbreak. interview. Local media reported that urged the nation’s governors to end
TheLatinAmericancountry’seconomy Without plans explaining how the describedthe“hardball”offer—which theBrazilianpresidentclaimedtohave lockdownssothatbusinessescanreo-
hasbeenhardhitbythecoronavirus governmentcanrepayadebtburdenit includedadrasticreductionininterest ThedismissallateonThursdayofLuiz inhispossessionanintelligencebrief penandcitizenscangetbacktowork.
crisis,butitwasunclearwhetherthe insistsisunsustainable—aclaimthatis ratestoanaverageofjust2.3percent, Henrique Mandetta — whose profes- allegingthatCongress,somemembers Hisapproach,however,triggereda
leftistgovernment’sattemptonThurs- backedbytheIMF,Argentina’slargest compared with a current average of sionalcompetencedrewcomparisons oftheSupremeCourtandcertaingover- publicspatwithMrMandetta,atrained
daynighttoavoidalldebtobligations creditor after lending the country around6.6percent—as“veryunpalata- withAnthonyFauci,theUShealthoffi- norswereplottingtoousthim. doctor,whobackedworldhealthguide-
forthenextthreeyearsandcutinterest $44bnsinceacurrencycrisisin2018— bleforcreditors”.Hepredictedahard cialwhohasbecomeoneofhiscountry’s linesonsocialdistancing.
paymentsby62percentrepresenteda analystssaythereislittleincentivefor defaultgiventhatitwillbe“difficult”to mosttrustedfacesinitsresponsetothe Thetwomenalsosplitontheuseof
finaloffer,orjustthebeginningoftough investorstosignadeal. reachadealwithinthenext20days,as coronaviruspandemic—immediately chloroquineandhydroxychloroquineto
negotiations. “Argentinacontinuestoseekmaxi- thegovernmentwants. sparked protests and condemnation treatpeoplewiththevirus.WhileMr
“Ifitisatake-it-or-leave-itoffer,then mum[debt]reliefwithoutarticulatinga JaredLou,aportfoliomanageratWil- fromacrossthepoliticalspectrum. Bolsonaro has followed US president
therewon’tbeanagreement,”warned credibleplanforhowthedebtwillbe liam Blair Investment Management, “MostBrazilianshopethatPresident DonaldTrump’sleadinpromotingthe
oneinternationalcreditorclosetothe paidinthefuture.Moneyfornothing describedthetermsas“garbage”.He JairBolsonarodidnotfireMandettain drugsasaremedytotheCovid-19virus,
negotiations. doesnotsellwelleveninthebestof warnedagainstarepeatofArgentina’s order to...undermine the need for MrMandettarefusedtosanctiontheir
Echoes of Argentina’s last major times,”saidWalterStoeppelwerth,chief restructuringexperiencefollowingthe socialdistancing,”DavíAlcolumbre,the widespreaduse.
default in 2001 increased investors’ investmentofficeratPortfolioPersonal 2001 default, seeing similarities presidentoftheSenate,andRodrigo ApollreleasedbyAtlasonThursday
worries,asPresidentAlbertoFernández Inversiones,aninvestmentfirminBue- betweenThursday’sproposalandthe Maia,theSpeakerofthelowerhouseof showedthat76percentofBrazilians
appearedtobeseekingtopleasevoters nosAires. offermadein2005,whichledtoanacri- Congress,saidinajointstatement. opposedsackingMrMandetta,while58
athomewhileignoringinvestors’calls He argues that the government’s moniouslegalbattlewithbondholders MrBolsonaro,whoisamongahand- LuizHenriqueMandetta:differed percentdisapprovedofMrBolsonaro’s
foracoherentplanforrevivinganecon- aggressiveproposal“pointstoafero- thatwasnotsolveduntil2016. ful of world leaders to question the withpresidentonuseofcertaindrugs handlingofthecountry.
APRIL 18 2020 Section:World Time: 17/4/2020 - 18:51 User: john.conlon Page Name: WORLD3 USA, Part,Page,Edition: USA, 4, 1
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18April/19April2020 ★ FTWeekend 5
FT BIG READ. CHINA
Afteradisastrousfirstquarter,theChineseeconomyisshowingsignsofastrongrecovery.Butthatcould
beputatriskifthereisasecondwaveofinfectionsandifdemandinitsmainexportmarketscollapses.
ByTomMitchellandXinningLiu
O n the same day that Chinesegovernmentremainsonhigh
Chinese authorities began alert.
torelaxa77-dayquaran- “Containing infection remains a
tine on Wuhan, the city dauntingtask,withimportedcasesand
thatexportedcoronavirus sporadiclocalinfectionsentwined,”a
acrossChinaandultimatelytoevery ChineseCommunistpartycoronavirus
corneroftheworld,asmalltownonthe taskforceheadedbyPremierLiKeqiang
country’sborderwithRussiawaslocked said on Thursday. “The situation
down for the second time in three demandsfullattentionandallowsforno
months. slackeningofefforts.”
OnApril8,residentsofSuifenhein
‘Nowcomesthehardpart’
northeastern Heilongjiang province
wereorderedtostayathome,withonly Thenervousnessisparticularlyevident
onememberofeachhouseholdallowed inWuhan.Thecity’s“liberation”hasin
outeverythreedaystobuyfoodand realitybeenonlyapartialone.Resi-
othersupplies.TrainservicestoHarbin, dentsfromotherareasofChinawho
theprovincialcapital,weresuspended. weretrappedtherewhenthecitywas
LikeWuhan,Harbinisamajorindus- quarantinedhavebeenallowedtoleave
trialcitywithapopulationofabout11m —providedtheypassmedicalchecks.It
people. isevenharderfornativeresidentsof
MostoftheChinesecities,townsand WuhanandotherareasofHubeiprov-
villagesthatwerelockeddownatthe incetotravelwithinChina.
peakofWuhan’sepidemicinJanuary MinZhou,aHubeinative,hadhoped
andFebruarywererelativelyunscathed toresumeherlifeasamigrantfactory
bythefirstoutbreakofcoronavirus.At workerinsouthernGuangdongprov-
thetime,Suifenhewasreportedtohave inceafterherhometown,Ezhou,reo-
hadnoofficialcases. penedonMarch25.
ButnowSuifenhefacesarealcrisis, Intheend,shesays,shechosenotto
afterChinesenationalsreturninghome useherreturntraintickettoGuang-
fromRussiatriggeredamuch-feared dong,fearingitwouldbedifficulttofind
“secondwave”ofinfections.Thecity factoryjobsasoverseasordersdriedup
hasmorethan320confirmedcasesand andthatworkersfromHubeimightbe
almost1,500peopleincentralisedquar- shunnedbyemployersbecauseofmore
antinefacilities. stringenthealthchecksandquarantines
“Lotsofsmallbusinessesheredidnot requiredbylocalauthorities.MsMin
makeittoMarch,”saysLinXianfeng, hasinsteadfoundworkatanelectronics
whorunsarenewablescompanyinthe factoryinEzhou,whichisnearWuhan.
citythatturnsbiomass,suchasscrap Fortheirpart,authoritiesinBeijing
lumberandforestdebris,intoenergy. are enforcing strict quarantine rules
“Theyjustclosedforgood.Nowweface thatmakebusinesstraveltoorfromthe
averytoughtimeaswell.Iworryabout capital impossible. Anyone arriving
mybusinesseveryday.” fromotherpartsofChinamustobeya
ThesituationinSuifenhetypifiesone
endofanextremelydiversespectrumin
China,asPresidentXiJinping’sadmin- 90 1.2
% %
istrationstrugglestorestoretheworld’s
Coalconsumption IMFpredictionof
second-largesteconomytosomething
atlargepower China’sgrowththis
approachingnormality.
plantsrelativeto year;USoutputis
At the other end of the spectrum, average2019levels forecasttofall5.9%
many large cities across the country
A tricky route to recovery
appeartohavebouncedbackfromthe strict 14-day quarantine, sometimes
lockdown,withtheonlyreminderofthe enforcedwithdoorsensorstoensure
crisisbeingthenumberofpeoplewear- theydonotleavetheirhotelroomor
ing masks on the streets, on public residence.
transportandintheiroffices. The Chinese government also took
US sportswear company Nike said theextraordinarystepofbanningfor-
thisweekthat80percentofitsChina eignresidentswhopossessvalidresi-
storeswereopenincitiessuchasShang- dencepermitsfromenteringthecoun-
hai,whichshowsfewvisiblesignsofthe ‘Firstwehad suggestChina’seconomymayhaveat yearbecauseofitsevengreaterstrug- recentweeks,highlightsjusthowwor- Eveningrush try,eventhoughthevastmajorityof
pandemic. Car factories in Chengdu, leasthitbottominthefirstquarter.Coal gleswithcoronavirus,whileChinawill rieditisaboutanynewoutbreak.That hourinBeijing’s recent“imported”infectionsinvolved
ordersbut
capitalofsouthwesternSichuanprov- consumptionatlargepowerplantshas manage1.2percentgrowthforthefull in turn is an indication of the even centralbusiness returningnationals.Thishascompli-
ince,haverestoredoperationswithlittle noworkers recoveredto90percentof2019levels. year. greater challenges that will confront districtthis cated efforts by many multinational
disruption,otherthantheuseofface China’sofficialunemploymentratealso Chineseexportersarealreadybracing NewYork,Londonandothermetropo- week.The companiesandsmallercompaniesreli-
masksandotherprotectivegearand tofulfil improvedslightlyinMarch,fallingto themselvesforafallinmanyoftheir liseswhentheytootrytojump-start shadowof ant on foreign investment to restart
socialdistancinginthecanteen. 5.9percentfromFebruary’sall-time main markets, wary that a modest theireconomies. coronavirus theiroperations.
them.Now
“Companiesareallbacktoworkand highof6.2percent. recoveryinshipmentslastmonthwas Some 68,000 of China’s confirmed continuesto “Iworrythat[thebanonforeignresi-
workingwithoutrestrictions[although] ourworkers GeorgeLau,whorunsaninspection flatteredbyordersthatdidnotmakeit 84,000cases,or80percent,werein hangoverthe dents] is going to be for quite some
wearingmasksintheofficeisnormal andcertificationbusinessinsouthern ontoshipsinJanuaryandFebruary. WuhanorsurroundingHubeiprovince, economy time,”saysMrSives.“Therewillbea
andwearingmasksoutsideisnormal,” arebackbut Guangdongprovince,says“thetraffic “External demand is one of three withnootherregionrecordingmore secondwaveofissuesthatcompanies
ThomasPeter/Reuters
saysPaulSives,headoftheEuropean jamsarealmostasbadasbefore”. major economic headwinds ahead than1,600infections.TheUS,bycon- willbeaffectedbyverysoon.”
wedon’t
ChamberofCommerceinsouth-west EswarPrasad,aChinaexpertatCor- which will cause the recovery to be trast,iswellonitswaytohavingmulti- Manyanalystsbelievethat,fornow,
China,ofthesituationinChengdu. haveany nellUniversity,saysFriday’sGDPnum- W-shaped instead of V-shaped,” says ple Hubeis, with nine states having theresumptionofnormalworkandlife
Whether Suifenhe’s relapse — or bersare“abellwetherofwhatthedata Larry Hu, chief China economist at morethan20,000caseseach. routinesinChengduismoreindicative
Chengdu’s relative vibrancy — is the orders.My forothermajoreconomieswillrevealin Macquarie.Theothertwochallenges, Formanypeople,includingUSpresi- ‘Iworrythat ofthecurrentstateoftheChineseecon-
more accurate harbinger of China’s onlygoalis thecomingweeks”.Headdsthatwhile henotes,arefallingpropertypricesand dentDonaldTrump,China’sinfection [thebanon omythanthecontinuingdisruptionsin
near-termfuturehasenormousimpli- the“apparentstabilisation”inrecent deflation. countseemstoolowtobetrue.TheChi- Suifenhe,WuhanandBeijing.
cationsforbothitseconomyandthe survival’ indicatorshasprovided“groundsforat Ding Shunlian, whose company nesegovernmentwaitedatleastaweek foreign Abusinessactivityindexcreatedby
rest of the world. The first country to leastmildoptimism,themagnitudeof makes machine tool components in beforefirstpubliclyacknowledgingthat residents]is Trivium,aBeijing-basedconsultancy,
haveasignificantoutbreakofthevirus, thiscollapsemakesitevenmorepuz- easternShandongprovince,describes the disease could spread by human estimatestheChineseeconomyiscur-
goingtobe
Chinaisalsothefirstlargeeconomyto zlinghowChina’seconomyseemstobe the Catch-22 that Chinese exporters transmission.AndWuhan’smayorsaid rentlyoperatingat83percentof“typi-
trytoreopenafteralockdown.HowBei- gettingbackonitsfeetdespitethegov- have experienced over the first four publiclythatatleast5mpeopleleftthe forsome caloutput”,comparedwith66percent
jingfaresintryingtorestarteconomic ernment’s relatively modest stimulus monthsofthisyear.“Firstwehadorders city, many of them flying overseas, inmid-March.Thatiswelcomeconsid-
time.There
activitywithoutsparkinganewround measuresthusfar.” butnoworkerstofulfilthem,”hesays. before the city was locked down on eringChina’spredicamentinFebruary
ofinfectionswillshapetheresponsein “Nowourworkersarebackbutwedon’t January23. willbea butstillrepresentsadevastatingdrop
Workers,butnoorders
muchoftherestoftheworld. haveanyorders. Yet,whilemostexpertsagreealarge fromwhatmighthavebeenexpected.
secondwave
OnFriday,theNationalBureauofSta- ForMrXi,therearetwomaindangersto “Myonlygoalissurvival,tomakeit numberofinfectionsanddeathswent “Ifwegetstuckatthislevelofoutput
tisticsreportedthefirstofficialyear-on- thisincipientrecoveryasChinastartsto through this year,” Mr Ding adds. unrecordedeitherintentionallyoracci- ofissues formuchlonger,thereisnowaythe
yeardeclineineconomicoutputinmore gobacktowork.First,aresurgenceof “Hopefullyafterthevirus,orderswill dentally in the weeks and months economy can expand this year com-
thatwill
than 40 years. First-quarter gross thepandemicintheworld’smostpopu- comebacktous.” before Wuhan’s lockdown, there has paredtolastyear,”saysTriviumco-
domesticproductfell6.8percent— louscountry.Andsecond,acollapsein TheChinesegovernment’srapidreac- beennocompellingevidencethatout- affect founderAndrewPolk.“Itwasimpres-
something unimaginable in the pre- demandintheUSandEU. tiontothenewoutbreakinSuifenhe, breaksarecurrentlybeinghiddenor companies sivetogettowhereweare,butnow
coronavirusera.However,arangeof OnTuesday,theIMFpredictedtheUS anditsextremelycautiousmanagement overlooked. While Wuhan on Friday comesthehardpart.”
verysoon’
otherindicators,formalandanecdotal, economywouldshrink5.9percentthis ofcitiessuchasWuhanandBeijingover raiseditsdeathtollby50percent,the AdditionalreportingbyQianerLiu
Obituary
PhyllisLyon’sweddingbellswereheard Lyon’s95-yearsspannedthehistoryof StreetoverlookingSanFrancisco.Itwas versity.“Itgavepeoplehopethat‘Ican
aroundtheworld.OneofAmerica’sear- thegaycivilrightsmovementintheUS: tobetheirlife-longhome.Gradually, haveahappylifeasalesbian.’”
A pioneer who liestgay-rightsadvocates,sheandher fromhelpingtofoundthefirstlesbian theymetothergaycouples,whoshared Lyon worked at Glide Memorial
partner,DelMartin,werealsoamong organisation,in1955,tofrontingvicto- theirsenseoffearandisolation.Lyon Churchformorethan30years,andher
thefirstsame-sexcouplestobelegally riesformarriageequalityinthe2000s. describedthenear-universalprejudice activismwaswideranging,including
made a happy
marriedinCalifornia—twice. “Shewasapioneer”,saidKayLahusen,a inAmericaatthetimethathomosexu- women’s rights, domestic abuse and
Theirfirstwedding,in2004,after50 photojournalistandfellowactivistwho als“wereillegal,immoral,andsick”. lateradvocacyforseniors.SheandMar-
life possible for yearstogether,wasanactofprotest.In met Lyon through the group she Gaypeoplewerealsoseenasathreatto tinwereamongthefirstlesbianstojoin
defianceofastateban,themayorofSan founded,theDaughtersofBilitis,inthe thestateduringthecoldwar,andfired theNationalOrganizationforWomen.
FranciscoGavinNewsom—whoisnow early1960s.“Weallwereonthecutting fromgovernmentpostsandotherjobs. KateKendell,afriendofLyonfor25
US lesbians
governor of California — decided to edgeofamovement.”’ Newspaperswouldnamepeoplewho years, said their later life was quiet,
issue marriage licences for gay wed- PhyllisAnnLyonwasbornonNovem- werecaughtinpoliceraidsongaybars. punctatedbyexplosivecheeringforthe
dings.LyonandMartinwerenominated ber10,1924inTulsa,Oklahoma.After Theinitialobjectivesofthelesbian San Francisco Giants baseball team.
byactiviststobethefirstinline,but completingajournalismdegreeatthe socialclubweremodest:LyonandMar- Their Castro house was a Mecca for
theirunionwasthrownoutbytheCali- UniversityofCalifornia,Berkeley,she tinjustwantedto“meetsomeotherles- younger activists, where Lyon and
PhyllisLyon forniaSupremeCourt.Whenthelegal becameapolicereporterinFresnoin bians”.TheirlivingroomhostedSunday Martinsatinapairofreclinerarmchairs
decisionwasreversedin2008,thecou- the 1940s. She later recalled being afternoonmeetings,andsomeraucous andtoldstories.
Feministandgay-rightsadvocate
ple—thenintheireighties—tiedthe attractedtowomenfromanearlyage, parties where women could dance, Asthegayrightsmovementbecame
1924-2020
knotonceagain. butnotknowingtheword“lesbian”. awayfromtheriskiergaybars. morepublicafterthe1969Stonewall
Earlierintheirlongcareersoffemi- Awarmpresencewithareadysmile Overtime,theirrolesbecamemore Lyonin1972.HerSanFrancisco riotsandwonconsiderableprogress,it
nist and gay-rights activism, both and large glasses, Lyon met Dorothy public.Theywereamongthefirstto homebecameaMeccaforactivists canbedifficulttorememberhowbrave
women had expressed ambivalence “Del”Martinin1950whentheyworked publishtheirrealnamesinTheLadder, LyonandMartin’sorganisingwasinthe
abouttheinstitutionofmarriage.Butby at a magazine in Seattle. Lyon told alesbianmagazinethatLyonedited. 1950s, said Eric Marcus, host of the
‘Imarvelledintheir
2008,Lyonsaidshefound“solace”in friendsthatMartinwasthefirstwoman Theymadesuretolisttheirnumberin MakingGayHistorypodcast,whointer-
enactingthe“ultimateriteofloveand sheeversawcarryingabriefcase.Over thetelephonebook,andfieldedcount- viewedthepairinthe1980s.
confidencethatthey
commitment” months before Martin drinksattheSeattlePressClub,Martin lesscallsforhelpandadvice. “Imarvelledintheirconfidencethat
diedat87.Almost12yearslater,Lyon confidedtoLyonthatshewasalesbian. Thesecontactshelpedinformtheir wererightandtheworld they were right and the world was
hasdiedaftersufferingfromdementia. “Ithoughtthatwasthemostfascinating 1972bookLesbian/Woman,whichwas wrong,”hesaid.“Intermsofthemove-
waswrong.Theywere
SpeakeroftheUSHouseofRepresenta- thingI’deverheard”,Lyonrecalled. “transformational”formanylesbiansof ment,theywerefoundational.Shewas
tivesNancyPelosipaidtributetoheras In1955,thecoupleboughtamodest, thatgeneration,saidEliseChenier,pro- foundationalpeople’ oneofthelastofthosepeoplealive.”
a“trailblazer”. one-bedroomhouseatthetopofCastro fessorofhistoryatSimonFraserUni- JoshuaOliver
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6 ★ FTWeekend 18April/19April2020
Letters Email:[email protected]
Includedaytimetelephonenumberandfulladdress
Corrections:[email protected]
IfyouarenotsatisfiedwiththeFT’sresponsetoyourcomplaint,youcanappeal
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SATURDAY18APRIL2020
After the lockdown,
another ‘new normal’
Lifewillnotquicklysnapbacktohowitwasbeforewithoutavaccine
ItisFebruary2021andtheSmithfam- therisks,somechildrenwillbebackat
ilyareexcitedtohaveticketstowatch schools,otherswillstayathome.
theirfavouritefootballteam.Sportis Those returning to the workplace
newlyemergedfrommonthsofbeing willfindachangedenvironment:staff
playedbehindcloseddoors.Outside workingshiftsorinrotatingweek-in,
thestadium,securityguards’handsets week-at-hometeamstoallowadequate
registerCovid-19immunitycertificates distancing.Staggeredstartandfinish
encodedontheSmiths’smartphones; timeswillattempttolessenrush-hour
fanswithouttheappfaceadditional crushesonfetidsubwaytrains.
checks.Thefamilypassthroughbody Thenewsocialmoresofthelock-
temperaturesensors,checktheirface downwillpersist.Handshakesarestill
masksandentertheground.Theview out.Ifnotofficiallycompulsory,masks
isunimpeded—seatsallaroundthem maybesociallyderigueur.Manyinter-
havebeenblockedfromsale—butthe actionsfrombusinessmeetingstodat-
half-empty stands mean the atmos- ingwillstayonline.Airports,planes At last I can work and sleep in peace and silence Isthereanotherelement
pherelackstheoldelectricity. andtrainswillbesparselypopulated.
toLucy’shappiness?
TheSmiths’storymayproveoverly Whorealisticallyexpectstotakeafor-
gloomy,ornotgloomyenough.Evenas eignsummerholidaythisyear? DidIdetectanelementof
countriestentativelystarttoemerge Immunityregistrationsystemswill ItotallyagreewithLucyKellaway’s absolutelyuselesspolicethatwon’t andsleep.Birdshavecomebacktomy SchadenfreudeinLucyKellaway’s
fromtheCovid-19lockdown,itisclear behelpfultoidentifythosewhocanre- article“IsitOKtobehappy?”(Life& intervenetohelppoorresidentslike terraceandI’mnowwaitingforthe articleonlifeunderlockdown?(“Isit
thatlifewillnotspringbacktohowit enterpubliclifewithoutrisktothem- Arts,April11).Likeher,I’mateacher; metohaveabitofrest.Ihavesuedthe swallowstoreturn.WhenIopenthe OKtobehappy?”,Life&Arts,April
waspre-crisisuntilthereisavaccine. selvesorothers—especiallythosewho unlikeher,I’mlongretiredasI’m82, municipalityofRome,withoutsuccess. windowsthestinkofpollutionhas 11.)Theresheis,enjoyingthe“bubble
Organisations and individuals must hadtheillnesswithoutsymptoms.But andIlivealoneinRomeandnotwith IamamemberoftheVivere givenwaytoclearunpollutedair. ofmyprivilegedhousewithitsprivate
adapttoanother“newnormal”. theymustnotturnthesofarvirus-free myfamilyinLondon. Trastevereassociationforthedefence Trastevereisspotlessandcalm,no garden”whileherex-husbandis
Monumental efforts will still be intosecond-classcitizens,creatingper- IliveinTrastevere,intheveryheart ofourborough’srights.Ihavespent drugs,noscreamsandyellstillthe confinedtoanupstairsflat,grunting
neededtoavoid,orlessen,asecond verseincentivestogetinfected. ofRome,wherein“normal”timesa thousandsofeurosondoubleglazing.I earlyhours,andthefountainshave loudlywhenexercising,andtryingto
waveofinfection.Cyclesofrelaxing Amongthebiggestchallengeswillbe deafening24-hourmovidatakesplace havethrowneggsandrottentomatoes recoveredtheirrunningwaterandall play“We’llMeetAgain”(how
andreimposingshutdownsmayfollow. preventinginequalitiestheGreatLock- undermywindows.Istillwork frommyterrace . . . tonoavail. theirlostancientbeauty . . . Ihope poignant)onthepiano.The
Testingandtracingthosewhocontract downhasalreadycompoundedfrom translatingfromEnglishquitealot, WhyamIsohappynow?Becauseall oncethistragicpandemicisover,wild accompanyingillustrationshowsLucy
theviruswillbecrucial.Somepleas- beingwidenedbytheGreatEasing.The andhavetouseearplugswhenatthe Ihavedescribedhasimmediately Romancitizenswon’tforgetwhatbeing relaxinginbucolicblissinthegarden.
uresandfreedomsthelockdownhas youngwillregaintheirfreedomsfaster computerorsimplytryingtoreada stoppedwithcoronavirus.My civilmeans. Perhaps,giventhewarmweather,a
takenawaywillstillbedenied. thantheoldandvulnerable.“Knowl- book.Nottospeakofthenights apartmenthasbecomeanoasisof GraziellaDeiGiudice dishisbeingservedcold.
Countriesthathavebuiltupmass edge”workerscanshelterbehindlap- withoutsleeping,despitethe peaceandsilence,whereIcanwork Rome,Italy RobinWhite
testingandtrackingcapabilitieswill topsathomewhilethosewhoseworkis LondonSE27,UK
emergefastest.Testandsymptomdata physicalareforcedoutintoastillhaz-
needtobelinkedtoappsthatregister ardous environment. Millions who Mnuchin’sdiplomacyhas assembledwithalightandartful I’mleftwondering Hastheever-sensibleLucyKellaway
thosefallingillandalertpeoplewho havelostjobswillnotquicklyregain touch,inabrightredFolger’scoffee takenleaveofhersenses?(“IsitOKto
beenworthyofKissinger howWojcickicouldtell
havebeennearthem.Creatingworka- themandwillneedsupportingthrough can.I’veneverforgottenit.Jollyand behappy?”,Life&Arts,April11.)She
bleappsistricky,butcountriessuchas thenextphase.Poorercountriesmay TheFTgivesunnecessarilylowmarks joyful,theperfectgift,aworkofart AnneWojcickitellsHannahKuchler, writesthatshewishesthegrasswould
SingaporeandSouthKoreahavedone takelongertocontroltheoutbreakand totheTrumpadministration’sefforts fromawell-lovedgarden. whomshehasmetforthefirsttime growfaster,soshemightmowthelawn
so.Technologiesshouldbeshared. exit lockdowns. Travel bans to and inbluntingCovid-19’seconomicimpact MargaretMcGirr overLunch(April11),that“ifyouhave everythreedays.Noteventhe
Withincountries,somesectorswill fromrichercountriestryingtoavoid (“Fed’sradicalpoliciesarein Greenwich,CT,US apropensityforcriminalbehaviour, splendourofanEnglishlawncould
emerge faster than others. Essential reinfectionwillworsentheirplight. unchartedterritory”,editorial,April whichIthinkisaveryunlikely justifysuchexertions.
DohangontoRobin!
andoutdoorworksuchasconstruction Juggling such challenges will test 11).TreasurysecretarySteven situationhere,thenthere’sobviouslya PaulDrexler
maycomefirst;barsandnightclubs governmentsasneverbeforeinpeace- MnuchinhaspractisedKissinger-like hugeenvironmentalcomponent”. Seattle,WA,US
last. Many white-collar employees time.Howtheyrespondwilldetermine shuttlediplomacytopassbipartisan RobinLaneFoxisbyfarthebest Withoutwishingtoimpugnyour
‘Eatingthefridge’
whosejobscanbedoneathomewill justhowpoisonousisCovid-19’sglobal legislation.Partnershipbetweenthe gardencolumnistinthewesternworld correspondent’sgoodcharacter,it
stay there, perhaps for months. legacy—longafterrich-worldsports FederalReserveandtheTreasury (“Anapostleofflowers”,House& wouldhavebeenveryinterestingto isgoingdownwell
Dependingonhowgovernmentsweigh stadiumsarefulloncemore. departmenttoactivate13(3)powers, Home,April11).IfirstboughtFT haveexploredthebasisonwhichMs
morecomplicatedpostDodd-Frank, Weekendtogethiscolumn . . . butthat Wojcickifeltabletomakesuch Justperfect.WendellSteavensonon
hasbeenseamless.Youmaynotthink ledtothestrongbookreviewsand assertions. “Bunkerfood”(April11)hitthenailon
theadministrationisaherobutits splendidtravelsections.NowI’ma JonathanBrewer thehead.I’vejustfinishedmakinga
performanceisfarfromazero. dailyprintsubscriberandread NewYork,NY,US chickenpotpiewithparsnips,
GraySchweitzer everything.DohangontoRLF! mushroomsetc.Andtheleftover
The Fed’s junk purchases Gallaghers’tributeto
Brooklyn,NY,US LornaMarsden applesarecookingwiththatlastlittle
Member,FederalReserveBoard’s Toronto,ON,Canada thegeniusofLennon scrapoflingonberryjamfromIkea.
InsurancePolicyAdvisoryCommittee Youreditorialsandlettersarethe
should be short term Doublediamonds
Iverymuchenjoyedreadingthelifeof firstthingsIreadnowadays.Andasfor
Jollyandjoyful,
“Imagine(“Thelifeofasong”,Life& Banx—well,it’salaugheverytimehe
theperfectgift Sir,PaulMendelson(Bridge,Life& Arts,April11).Ihavealwaysthought appears.
Arts,April11)speculatesonthe thatthepianoplayedinthe AnneJones
Measurestakenincrisisneedtobetransparentandunwoundquickly RobinLaneFoxsays,eloquently,thata declarer’sabilitytoplayouttheirhand introductionoftheOasishit“Don’t Scituate,MA,US
garden(oranarrangementofflowers,I successfully;buthereonewondersif LookBackInAnger”strongly
WhenWalterBagehot,theVictorian boostersunderalreadyrocketingrates wouldadd)“becomesartthroughlove” thedealhasnotprovedthegreater resembledJohnLennon’s“Imagine”,
economist,wantedtoexplainhowcen- ofunemployment.Inthepastmonth (“Anapostleofflowers”,House& challenge,forthehandscontaintwo anditisactuallyconsideredbymany OPINIONONFT.COM
tralbanksshouldactaslendersoflast therehavebeen22mapplicationsfor Home,April11).Yearsago,an Jacksandtwo9ofdiamonds.Bizarrely, tobeatributepaidbytheGallaghersto
Alphaville
resort,hequotedadirectoroftheBank unemployment benefits in the US; acquaintancebroughtmefromher thisseemsnottoaffecttheplay. theLiverpoolgenius. Afiercedebateragesoverwhethervirus
ofEngland.“Welentitbyeverypossi- potentiallyeradicatingalljobgrowth owngardenabunchofbloomsofvivid ThomasKier AlessandroLusi lockdownsareanoverreactionorimperative
blemeansandinmodeswehadnever since2009. shadesandavarietyoftextures, Scottsdale,AZ,US Rome,Italy ft.com/alphaville
adopted before,” the central banker Distinguishing between those
saidoftheBoE’sresponsetoafinancial deservingandundeservingofsupport
panic. isdifficulteveninnormaltimes.Trying
Changing rituals
TheUSFederalReserve’sdecisionto to do so in the middle of a crisis is Lastyear,KristinaJacobsen,an involvinggestures,wordsandobjects, movingonline.Newritualsare
includejunkbondsinitslatestasset impossible.Itiseasytosayspeculators Americanmusicalanthropologist, performedinasequesteredplace”; emergingtosalutehealthcareworkers
in the age of
purchaseschemesreflectsthiscentu- andcorporateraidersshouldnotenjoy movedtoSardiniatoresearchthe typically,iteithermarksthepassage andcreatecommunitysolidarity:just
ry-oldprinciplethatwhenthefinancial thesamelevelofsupportasviablebusi- island’svibrantstreetlifeandmusic oftime,definesacommunity, lookattheeveningpot-bangingand
sectorisintroubleitisoftenbetterto nesses,butdrawingalinebetweenthe coronavirus culture.Fate,intheshapeofCovid-19, highlightsachangedstate,expresses cheeringthatoriginatedlastmonthin
hoseitwithcashthanbetoodiscrimi- twoisdifficult.Manytakeordinary intervened:Sardiniawasplacedin oursenseofidentity,reaffirmsshared northernItaly,whichhasnowbeen
natingabouttheeffects.Buyingjunk corporatepracticestoanextreme.The lockdownanditsnoisystreetculture memories,ordoesalloftheseatonce. emulatedinLondonand(very
bondsmeanstacitlysupportingsome Fediswiselylimitingpurchasestocor- vanished.SoJacobsenpivoted,andis Thecoronaviruslockdownhas noisily)inManhattan.
oftheprivateequitycompaniesthat porate bonds that were investment- nowstudyinghowSardinian tossedusintoanewlandscapeof Insideourhomes,meanwhile,many
havespecialisedincapitalengineering gradebeforetheshutdown. householdshavestartedtouseonline profounduncertainty.Weare,assome familiesareusingritualsonce
andloadingcompaniesupwithdebt. However,thepoliticsofthissupport andat-homemusicalritualstocope havecleverlyidentified,livingina reservedforchildhood—suchas
For many this violates the funda- areterrible.Publicangeraccompanied withthestressofcoronavirus. stateculturallyakintothe changingclothes—todividethe
mentalbasisofcapitalism:badly-run bailoutsforthebanksduringthefinan- “Into[the]voidofdailyscentsand Schrödinger’scatproblem(wherethe endlessdaysinto“playtime”,“work
businessesshouldgobustandspecula- cialcrisis;supportingthejunkbond sounds,amultitudeofmelodieshas catwasneitherdeadnoralive).Our time”and“familytime”,observes
torsshouldexpecttolosetheirmoney marketmaybeevenmorecontrover- beenborn:balconyconcerts, communitiesseemsimultaneouslyto businessanthropologistMarthaBird.
ifbetsturnbad.Thatincludesthose sial.Althoughdebtdidnotcausethis recordingsandin-homevideos,”she haveandtonothaveCovid-19;we “Withsomanyofusathome,notions
whodidnotprepareadequatelyfora crisis,therewillhavetobeareckoning explainsinanarticleforsocialscience expectnormalitytoresume,butalso abouttimehavebegunto
crisiswhetherthroughoverlyleverag- oncethemomentofdangerispassed. magazineSapiens,notingthata nottoresume,allatonce.Inthe (re)formaliseintodiscernible
ingtheirassetsormakingtheircompa- CorporateAmericashouldexpectto plethoraofperformanceshave meantime,weareself-isolatingbut momentsorrituals,”shesays.
niesfragilethroughstockbuybacks.If runmuchlowerlevelsofleverage,as appearedonlinewithhashtagssuchas alsoconnectedtoavastonlineworld. Ofcourse,somemightconsiderit
shareholders enjoy the rewards of wellastopaymoreintaxtothefederal #iorestoacasa(“I’mstayinghome”), Inthisconfusingkaleidoscope, distastefulordefeatisttoevencreate
beinglessrisk-aversethanothersso, governmentthathaspreservedmany #lamusicanonsiferma(“themusic manyhaverespondedbyrefashioning coronavirusrituals.Afterall,new
too,shouldtheycarrythecosts.Work- ofthemasgoingconcerns. doesn’tstop”)and#tuttoandràbene theirritualsinstrikingways.Sardinia’s ritualssuggestweareadaptingtothis
ers,manyAmericanspointout,have Mostimportantly,theFedwillneed (“everythingwillbeOK”). musicalperformancesarejustone newlife—andthuscannotignoreitas
Notebook
beenencouragedtoputasideenoughof toselltheseassetsquickly.Suchrapid Theseofferings,sheadds:“Wail caseinpoint.So,inasense,arethe justatemporarynightmare.ButI
theirpaytocoverforunforeseencir- actionwouldmakeitclearthisisan aboutcorona[and]expressdefiance digitaleventsthatcompaniesare prefertoseewhatishappeningin
cumstances;soshouldbusinesses. attempt to ease a temporary dollar byGillianTett towardsthedisease.”Necessityhas launchingtoenabletheirdispersed Sardinia—andelsewhere—asasign
Yetenforcingtheseprincipleswould fundingsqueezeandnotabailout.Con- sparkedculturalinvention,whichis stafftobondremotely,orthatsocial ofhowinnovativehumanscanbe
meanmanywell-runcompanieswould gressionaloversightovertheschemeis alsoreinforcingcommunityties—and groupsarecreating.Myowndiaryis understress,eveninapeculiar
become collateral damage. It is the vital,too;neitherFedchairJayPowell resilience.Itisastrikingpointto increasinglydefinedbyanewcycleof Schrödinger’scatculturalworld.
Fed’sjobtomaintainorderlyfinancial nor Treasury secretary Steven considerasmanypartsoftheworld ritualisedvideocallswithcolleagues Thatpromptstwomorequestions:
marketsandtheinfrastructureforcop- MnuchinareelectedandmanyAmeri- enduremoreweeksofthelockdown. andcyber“drinks”withfriends. whenthislockdownfinallyends,what
ingwithsuchalargewaveofbankrupt- cansworrytheschemeisrewardingthe Innormalcircumstances,mostofus Onlineritualsareevenemergingto ritualswillwemaintain?Andhowwill
ciesdoesnotexist.Uncertaintywould politicallyconnected. neverstoptoponderhowritualsand markthepassageoftheseasons:last wemarktheendofthisstressful
swiftlycripplewholesalefundingmar- Fightingacrisiscanbeadirtybusi- symbolsshapeourdailylives.That’s weekItookpartinavirtualEaster scourge?Ponderthiswhenyounext
ketsasinvestorstriedtoassesswho ness. It often requires compromise. nosurprise.Asthe20thcentury churchservice,followedby“tea”with feelboredathome;betterstill,discuss
wascarryingbadassetsontheirbooks. TheFed’sactionsarejustified,butthey BritishanthropologistVictorTurner 10cousinsaroundtheworld. itinavideochat.
Thiswouldfurtherburdentheecon- willberightlycontroversial:thebest noted,aritualisessentially“a Moretragically,ofcourse,andby
omywithafinancialcrisisinaddition approachistomakethemasshort- stereotypedsequenceofactivities necessity,somefuneralritualsare [email protected]
to a shutdown, and put even more termandtransparentaspossible.
APRIL 18 2020 Section:Features Time: 17/4/2020 - 18:21 User: alistair.hayes Page Name: LEADER USA, Part,Page,Edition: USA, 6, 1
UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws
18April/19April2020 ★ FTWeekend 7
Opinion
Save globalisation to secure the future
integration.Butevenbeforethepan- insufficient capital to absorb the willbelongtothetechno-nationalists. the Bretton Woods institutions are protocolsneededtopreventandmiti-
Henry
demic,thebalancewastiltingtowards impending large credit losses and to Butifwegotoofarbyslashingtiesand underfinancedandover-governed. gatefuturetragedies.
Paulson closedeconomies.Nowrecession,surg- providethelendingneededtohelpspur forbidding technical exchanges and WhentheG20meetsinSaudiArabia Theforcesthatadvocateforclosure
ingunemploymentandChina’sfailure recovery.Wemustassurethatcapital jointresearch,itwillimpedeinnovation thisNovember,leadersshouldcommit will resist strengthening multilateral
to handle the coronavirus outbreak canflowtobusinessesthatneeditmost. and potentially world-changing basic tomarketprinciplesandcomplemen- organisations.Butthatonlyincreases
transparently are emboldening these Suchoverseasflowswillbeinthepro- research,includingonaCovid-19vac- taryactiontosupporteconomicgrowth. theriskstoourcitizens.Whilethenear-
C ovid-19hasresultedinmore voices. We should recalibrate while tectionists’ crosshairs, but nations cineandinreducingcarbonemissions, Butthatisnotnearlyenough.Asustain- termprospectsofreformseemdim,I
thanadeadlypandemic.It retainingthebestfeaturesofglobalisa- shouldstillpursuejob-creatingforeign whichareatickingtimebomb. ableeconomicfuturedemandsaneffec- ammoreoptimisticthiscrisiswillulti-
hastippedtheworldecon- tion.Therightpolicieslienotonanend investmentthatpromotesrecoveryby tivesetofglobalrulesfortrade,invest- matelyspurco-operationamongmajor
omyintoitsmostseverecri- butonthecontinuumbetweenopen- buildingbridgesinsteadofwalls. ment,intellectualpropertyandtech- nationstobeginthehardworkofbuild-
FTseries:theworld
sissincetheDepression. nessandclosure. Technologydecouplingalsorisksfur- nologystandards.Multilateralinstitu- ingamorepeaceful,sustainablefuture.
afterthepandemic
Asthevirus’sspreadslowsandgov- Intensebattlesaresuretobefought theringtheshifttoeconomicclosure. tionsmustalsoplayalargerrolehelping Theworldhasfacedmoredaunting
Whattoexpectwhen
ernments rebuild, they face another over trade. Multinational companies Innovationthrivesondisruptive,cross- thelockdownsend vulnerablenationsavoidhumansuffer- challenges than coronavirus. But the
forcesweepinginitspath:isolationism. willensurethattheynolongerrelyona bordercollaborations.Buttheriseof ingandpoliticalinstability. recovery—andthefuture—canonlybe
ft.com/aftermath
Theimpendingbattlewillpitforcesof singlecountrytosourceeachnecessary techno-nationalistsisthenaturalout- The leading economies in the G20 secured if major economies pull
opennessrootedinmarketprinciples component.Eachcountrywillalsoneed growthofagenerationoftechnologies, mustalsoconfrontriskacrossabroader together. Strategic competitors and
against those of closure across four to source some critically important includingartificialintelligence,thatare Globalinstitutionshaveadutyandan range of threats. The fact they were adversaries struggle to find common
dimensions:trade,capitalflows,inno- medicalproductsdomestically.Taken intrinsicallymulti-use.Theseinnova- opportunitytotakeonthesechallenges. notreadyforaverypredictablepan- groundevenwhenitisintheirselfinter-
vationandglobalinstitutions. toanextreme,thiscouldleadtodeinte- tionswillbecentraltoeconomicsuccess Buttheyhavenotshownthemselvesup demicshouldbeawake-upcall.They est.Buttherewillbenolastingrecovery
Allowinganeconomicironcurtainto grationofamajorindustryatatime sogovernmentsmustinvest,provide tothetask.Theirpastfailuresarethe mustprepareforotherobviousrisks ifthelargesteconomies,especiallythe
descendwouldimperiltherecoveryand whentheUShasalreadyleviedtariffson incentives for entrepreneurs and resultofmembernationsfailingtodo such as terrorism, cyber warfare, USandChina,cannotfindaworkable
jeopardiseeconomicandsocialstability. steelandindustrialgoodsontenuous develop standards that protect both thehardworktomakethemeffective. climatechangeandnuclearprolifera- strategic framework. The global eco-
Individualnationsmustresistefforts “national security” grounds. Govern- nationalandeconomicsecurity. TheUScanleadbyreinvestinginthe tion.Nowisthetimetostartdeveloping nomicorderisnotperfect.Butittrulyis
toslashcross-borderlinkagesandglo- mentsshouldprotecttheircriticalsup- Beijing’semphasisonindigenisation very international institutions it has aframeworkforglobalco-ordination. toobig,andtooessential,tofail.
bal institutions will need to step up plychains,whilealsoadvancingrobust andWashington’sonrelocatingsupply largelysoughttoemasculate.TheWorld The world will be a very dangerous
andtransform. tradeandinvestmentacrossallsectors. chains and sequestering technology Trade Organization has not kept up placeifwedonotfixtheglobalinstitu- Thewriter,aformerUSTreasurysecretary,
Theworldhasprosperedbecauseof The banking industry globally has suggestthatthefutureunfortunately withtoday’smoderntradingworld.And tions and establish the treaties and chairsthePaulsonInstitute
In a crisis we keep calm
and are kinder than ever
Nextdoorbossisunder majority of visitors were leaving the
Tim
wooduntouched,theydidlikewise.I
pressureasuseofthe
Harford wouldnotbeatallshockedtolearnthat
hyperlocalsocialmedia scolding reports of sunbathing only
The undercover encouragemoreofustosunbathe.
hubexplodes,writes
economist Thesurprisingtruthisthatpeople
HannahMurphy tendtobehavedecentlyinacrisis.To
theBritish,theall-too-familiarexample
isthecheerfuldemeanourofLondoners
F irsttherewasthepanicbuy- duringtheBlitz.Inhindsightthatseems
A s coronavirus lockdowns ing. Then came the selfish, natural. But Rutger Bregman’s forth-
have spread, Sarah Friar, reckless refusal to maintain comingbookHumankindpointsoutthat
thechiefexecutiveofNext- physical distance: the beach inthe1930sWinstonChurchillandoth-
door,hasfoundherselfon parties in Florida and the ersfearedpanicifLondonwasattacked
thehornsofadilemma. housepartiesinManchester;the500- fromtheair.Britonsfailedtotakethis
Thehyperlocalsocialmedianetwork mileroundtriptoadmiretheLakeDis- lessontoheart:theyassumedthatwhen
sherunshasexplodedintoachaotichub trictandthemasssun-worshippingin Germancitieswerebombed,German
forneighbourlybehaviour:groceryruns Londonparks.Andthere’sworse:the civilians would crack. They didn’t.
fortheelderly,mask-sharing,feel-good scamartists;thepeoplewhousecough- Thesemythshavefatalconsequences.
doorstepsingalongs.Dailyactivemem- ingasanassault;thethieveswholoot Nor is calm co-operativeness
berswereup80percentgloballyfrom medicalsuppliesfromhospitals. restrictedtotimesofwar.Inthewakeof
February to March. Nextdoor now Thesecoronavirusstoriesperpetuate acatastrophicearthquakeinTurkeyin
serves260,000neighbourhoodsin11 agrimviewofhumannature.Thatgrim 1999, the emergency relief expert
countriesworldwide. viewismistaken,apersistentandcoun- ClaudedeVilledeGoyetberatedmedia
Butthefledglingplatformhasalso terproductive myth. There are some organisationsforpropagatingwhathe
attractedcurtain-twitchersindroves.If terriblepeopleintheworld,andsome called“disastermyths”.“Whileisolated
Facebookisbroadcastinginadigital ordinarypeoplebehavinginaterrible casesofantisocialbehaviorexist,”he
townsquare,Nextdoorisgossipingover way,buttheymakeheadlinesprecisely wrote,“themajorityofpeoplerespond
the garden fence. On group threads, because they are rare. Look more spontaneouslyandgenerously.”
paranoiaandsuspicionarebeingchan- closelyandtheevidenceformassself- ThewriterDanGardner,whopunc-
nelled into trolling, nimbyism and ishnessisextremelythin. turedthedisastermythinaseriesof
racialprofiling.MsFriar’schallenge,17 Startwiththereportsofpanicbuying, viraltweets,wasrepeatedlyrebutted
months into the job, is to tame the whichformanypeoplewerethefirst bypeoplewhoregardedNewOrleans
nastieswhileretainingthenewcomers, glimmersofthetroublethatlayinstore. after Hurricane Katrina as a potent
andwinadvertisingdollarsasthecom- BythemiddleofMarchintheUK,the counter-example.
panyseekstomonetiseitsuserbase. newspaperswerefullofstoriesabout Thatonlyunderlinesthemalevolence
Tosupporters,the47-year-oldavid shortages of toilet paper, flour and ofthemyth.Atthetime,rumoursran
readerpersonifiesthegoodneighbour. pasta.Thenaturalassumptionwasthat wildaboutthemurderandrapeofchil-
Notonlyhassheaddedanarrayofcoro- wewereanationoflocusts,strippingthe dreninsidetheLouisianaSuperdome;
navirus-relatedtoolstotheplatform, supermarketsasweselfishlypiledshop-
but she also added a “kindness pingcartshighwithproduce.
reminder”featurelastyear.Userswrit- ButKantar,aconsultancy,toldme Theevidencefrompast
inghurtfulcommentsreceiveaprompt thatamere3percentofshoppershad
disasterssuggeststhatwe
whentheytrytopost,urgingthemto bought “extraordinary amounts” of
rethink.Onaverage,one-quarteroptto pasta.Mostofusweremerelyadjusting shouldexpectmoreof
rewrite. “She strikes me as someone ourhabitstolifespentawayfromres-
Personinthenews|SarahFriar eachotheratthistime
who’dleaveanoteonyourdoor,offering taurants,sandwichbarsandofficeswith
apie,”saysStewartButterfield,chief theirownloopaper.Weallwentshop-
executiveofSlack,whereshesitsonthe pingabitmoreoften,andwhenwedid, butwhenthenationalguardshowedup,
‘Chief neighbour’
board.ButhenotesthatmanyNextdoor spentalittlemore.Nocauseforcollec- armedandpreparedforpitchedbattle,
postsareessentially“eye-rollingathow tiveshame,butitwasenoughtostrain theyweremetinsteadbyanurseasking
ridiculous your neighbours can supermarketsupplychains. formedicalsupplies.Fearofcivildisor-
be...There’s no affinity except that Whataboutthosewhoignorepleasto dermaywellhavecausedmoreharm
youliveneareachother.” keep their distance? Again, the mis- thanthecivildisorderitself—aswhen
BorntoanurseandanHRmanager, deedsareexaggerated.Lambethcoun- peopletryingtowalkoutofNewOrle-
extends her watch
MsFriarwasraisedinNorthernIreland cilgrumpilyclosedBrockwellParkin ansacrossthebridgetonearbyGretna
andretainsabitofaliltinherotherwise south London, complaining of 3,000 wereturnedbackbyarmedpolice.
Americanaccent.“Sheunderstandsthe visitorsinasingleday—notmentioning Thispandemichasnoexactprece-
importanceofpeoplecomingtogether thattheparkmighteasilysee10times dents,buttheevidencefrompastdisas-
tobridgedivisions,”saysReidHoffman, thatnumberonanormalsunnySatur- ters suggests that we should expect
former chairman of LinkedIn and a day,northattakingexerciseinaparkis moreofeachother.Manypeopleand
partneratventurecapitalgroupGrey- perfectlypermissible. businesses took voluntary action on
lock,inanodtotheregion’sTroubles. Exaggeratingproblemsmightdrive socialdistancingwhileboththeBritish
MsFriar’sfirstroleafterreceivinga webtrafficormakezealousofficialsfeel andUSgovernmentsdithered;theUK
mastersinengineering,metallurgy,eco- children,hasadheredtothe“leanin” learningandhumanmoderatorstotry FriartoldtheFinancialTimeslastyear. important,butthesetalesofmisbehav- administrationwasalsosurprisedby
nomicsandmanagementfromOxford, philosophypropagatedbyFacebook’s toweedoutthevitriol,misinformation “Nobodytodatehasdonelocalwell.” iourarelikelytobecounterproductive. howmanypeoplequicklyvolunteered
wasasabusinessanalystforMcKinsey SherylSandberg.SherunsLadiesWho andconspiracytheories. Aconsummatenetworker,shelured Ifwearetoldthatothersareactingself- tohelpwithtransportandsuppliesfor
intheUKandSouthAfrica.Shethen Launch, a non-profit focused on Still, critics detect opportunism: DavidSolomon,theGoldmanCEO,to ishly,wefeelinclinedtobeselfish,too. vulnerablepeople.
spentmorethanadecadeasatech- “empowering” female entrepreneurs. Nextdoor’s business model relies on speakatatechdinnerlastyear,andcon- AsYossarianofCatch-22putit,“I’dcer- Wecanbebothnimbleandaltruistic,
focused equity analyst at Goldman AftermeetingUSsecretaryofstateMike advertising from companies such as vinced New York governor Andrew tainlybeadamnedfooltofeelanyother andperhapstheauthoritiesshouldstart
SachsinSanFrancisco,whereshewas Pompeoandothertechexecutives,she Ring, the doorbell-cum-surveillance Cuomo,tostartusingtheplatformlast way,wouldn’tI?” takingthatintoaccountintheirfuture
knownasa“risingstar”.Ashortstintat explainedherparticipationasaneffort camera,thatcanprofitiftheplatform’s weektopasson“criticalinformation ThepsychologistRobertCialdinihas, policies.Givenclearguidanceastothe
Salesforcewasfollowedbysixyearsat “tohavethatseatatthetable.Ithinkit’s duringthispublichealthcrisis”toresi- withcolleagues,studiedthisinsightin bestthingtodo,mostofustrytodoit.
paymentsgroupSquare,whereshewas incredibly important for there to be dents.Itwaspartofabroadereffortto the Petrified Forest National Park in Rebecca Solnit wrote in A Paradise
chieffinancialofficer. diverseperspectives.” ‘Shestrikesmeas woogovernmentstothesite—several Arizona.Whenvisitorsweretoldthat MadeInHell:“Whatyoubelieveshapes
WhensheleftSquareforNextdoorin At Nextdoor, where she serves as London local councils and police the forest was being endangered howyouact.”Let’sstartbybelievingin
someonewhowould
2018,herformercompany’sshareprice “chief neighbour” according to her departmentsarevisiblyactive—and becauseotherswerestealingpetrified eachother;kindactswillfollow.
slumped15percent,andsomeobserv- LinkedInprofile,MsFriarmayeventu- leaveanoteonyour spreadher“kindnessiscool”message. wood, they stole too. When tourists
ersaskedwhythefounderandchief allyheadtothepublicmarkets—she “Sheisgravitasatitsbest,”saysRosie weretold—truthfully—thatthevast [email protected]
door,offeringapie’
executiveJackDorseydidnotappoint helpedthegroupraise$123mata$2bn Rios,aformerUStreasurerwhointro-
herasCEO,giventhathealsorunsTwit- valuationlastyear. ducedMrCuomoandMsFriar.“She
ter.“Iwasunrealisticallyexpectingtobe Butfirstshemustboostrevenuewith- usersgethetupaboutreportsoflocal introduced me to [Salesforce chief]
workingwithSarahwellintoourlate outdamagingthetight-knitcommunity crime.MsFriarisexploringotherreve- MarcBenioffviaemail.JackDorseywas TopreadsatFT.com/opinion
90s(swappingthestanduptablesfor thesiteseekstobuild.Nextdoorpoints nuestreamssuchascharginglocalbusi- morethanheartbrokenwhensheleft.
rockingchairs),”MrDorseywroteina toitsstrictonboardingprocess—many nessestoofferdealsontheplatform,or Totakethoserelationshipsforwardand
companymemoatthetime.“Unrealis- usersareverifiedbyhavingapostcard chargingcertainbusinessesincluding always with glowing and positive 3Hackingforhumanitystartswith 3Whenthegovernmentcalls,companies
ticbecauseIknewofSarah’slife-long senttotheirhomeaddressandproving utilitiestotargetparticularcommuni- stampsofapprovalisn’tsomethingyou solutionstothesmallproblems mustanswer
ambitiontorunherowncompany.” theyreceiveit—toarguethatitdoesnot tieswithinformation.“Fromaproduct learnincharmschool.” Hackersshouldrattlethestatusquobut Theaimistoemergewithagoodreputation
LikemanywomeninSiliconValley, prioritisegrowthatallcosts.Thecom- perspective,Ireallywanttoseeuslean formrealisableideas,writesJohnThornhill andstafftrust,writesRobertArmstrong
Ms Friar, who is married with two panyisusingacombinationofmachine intothelocalbusinessopportunity,”Ms [email protected]
APRIL 18 2020 Section:Features Time: 17/4/2020 - 18:42 User: alistair.hayes Page Name: COMMENT USA, Part,Page,Edition: USA, 7, 1
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8 ★ FTWeekend 18April/19April2020
Swedish exceptionalism Volvo Cars plans Crisis mode Investors hunt for survivors
to restart factory at full pelt in US earnings season
— ANALYSIS, PAGE 10 — MARKETS, PAGE 11
Gilead shares leap on positive Cuts loom at Booking.com
despite $4bn fundraising
signs from Covid-19 drug trial
ALICEHANCOCK—LONDON in four tranches of senior notes due
between2025and2030,sayingthatthe
Booking.com,theonlinetravelbook-
proceeds would be used for “general
ingsite,hastoldemployeestoexpect
3 Labs race to produce virus treatments 3 Remdesivir is ‘no silver bullet’ corporatepurposes”.
lay-offs,justdaysafteritsecured$4bn
KevinKopelman,ananalystatthe
in bonds from investors to see it
investmentbankCowen,saidthathe
throughthecoronaviruscrisis.
estimated Booking now had around
OnaninternalcallheardbytheFinan- $8.5bnincashatitsdisposaltoseeit
cial Times, Booking’s chief executive throughthecrisis—aboutfourtimes
GlennFogeltoldstaffthatcost-cutting theamountofExpediaandAirbnb.
wouldbe“tailoredtodifferentpartsof “Bookingclearlyhasplentyofcash
thecompany”.Inresponsetoaquestion butthatdoesn’tmeanthattheywon’t
onwhethertherewouldbelay-offs,he takeahardlookattheirexpenses,given
responded“probably,yes”. thefactthatitcouldtakeyearstoreach
TheWorldTravelandTourismCoun- afullrecovery,”MrKopelmanadded.
cilhasestimatedthatcoronaviruscould MrFogeldescribedthesaleofsenior
resultinupto75mjobsbeinglostfrom notes to employees as “expensive
thetravelsectorasaresultofcountries money...but it’s good because that
shutting borders and hotels closing. moneynowmakesusfeelsafe”.
Booking’srivalExpediahasalreadylaid Cowenanalystsaremodellingfora
offabout3,000staffthisyear. returnto2019revenuelevelsin2022,
MrFogeltoldthe530employeeson whichMrKopelmansaidwas“poten-
thecall,whichwasfirstreportedbythe tiallyslightlyoptimistic”.
DutchnewspaperNRC,thatbookings ThisweekAirbnbannounceditwas
haddropped85percentyear-on-yearin raising$1bnofseniordebt,aweekafter
theprecedingweekandthatthelossin ithadraised$1bnfromtheinvestment
revenueduetoreducedratesathotels firmsSilverLakeandSixthStreet.
wasevengreater. Unlike Airbnb and Expedia, which
Tocutcosts,theAmsterdam-based takepaymentsinadvance,mostBook-
travelcompanyhasstoppednearlyall ing customers pay when they reach
marketing,cutseniormanagementsal- theirhotel.Thismeansithasnothadto
ariesandputinplaceahiringfreeze. sufferthesamecashoutflowasitsrivals
Lastweek,Bookingraisedabout$4bn asconsumersclaimrefunds.
Tobacco
Willard departs as Altria chief
after recovering from virus
MAMTABADKAR—NEWYORK majorityofitsinvestmentinJuulLabs,
Investorsarereadytopounceonanysignofatreatmentthatmightencouragegovernmentstoreopeneconomies thatslashedthevalueofthee-cigarette
—AP Altria,theUStobaccogroup,saidits
companytoafractionofthe$12.8bn
chairmanandchiefexecutiveHoward
thatAltriapaidattheendof2018.Fol-
Willard, who was recovering from
HANNAHKUCHLER—NEWYORK wasup1.5percentinmid-morningin Leerink, said the stock market had SharesinRocherose2percentto lowingthedeal,Juulcameunderregula-
Covid-19,haddecidedtostepdownthis
DONATOPAOLOMANCINI—LONDON NewYork,asinvestorslookforsigns given Gilead “a generous amount of SFr324.8. ItsElecsysserologytestwill toryscrutinyoveritsmarketingandthe
week.
SharesinGileadjumpedasmuchas that better treatment options could creditforaproductthatthecompany beavailableinearlyMayinEuropeand healtheffects.
11percentafteraleakthatsuggested embolden governments to open up hasspecificallystipulatedwillnotbe othercountriesthataccepttheCEmark The56-year-oldMrWillardhadstepped Juul’stroublesdeepenedthismonth
one of the biotech group’s potential lockeddowneconomies. sold for a profit”. But he added that accreditation.Rocheisapplyingforan asidethreedaysago,onApril14,after when the Federal Trade Commission
coronavirusdrugswasperformingwell ButUmerRaffat,abiotechanalystat “investors may be discounting that emergencyauthorisationfromtheUS 28yearsattheVirginia-basedcompany suedtounwindAltria’sinvestmentin
inatrialinChicago. Evercore,saidthetrialwasnotwithout commentary,orsimplylookingtobuy regulator. behindMarlborocigarettes,Altriasaid thee-cigarettemakeronthegrounds
The disclosure raised hopes of an faults,notleastthatitdidnotcompare anypositiveCovidnews”. AbbottLabsandBD,bothbasedinthe yesterday.Itfirstdisclosedhisdiagnosis thatthetobaccogrouphadboughtthe
effective treatment for Covid-19, but the patients to a control arm. He said Whilefindingatreatmentcouldhelp US, have already launched antibody tostaffandtheboardonMarch19. stakeunlawfullytoeliminatecompeti-
Gileadandtheuniversityrunningthe remdesivirshouldnotbeconsidereda tests,buttherearestilldoubtsaboutthe ThecompanytappedBillyGifford, tioninthesector.
trialcautionedthatitwasincomplete “silverbullet”. ‘Investorswanteithera reliabilityofsometestsforpastinfec- whomostrecentlyservedaschieffinan- Altriashares,whicharedown19per
andfullresultswereneededbeforeany “The ultimate thing investors are tionaroundtheworld. cialofficerandvice-chairmantosuc- cent year-to-date, rose 2 per cent in
drugthatcausessymptom
conclusionscouldbedrawn. lookingforiseitheradrugwhichcauses The US government expanded its ceedhim.MrGiffordhasalongback- middayNewYorktradeyesterdayalong
The news came as other efforts to immediate symptom resolution and resolutionoravaccine commitmenttocreatingdrugsandvac- grounddatingtothePhilipMorrispred- withabroaderriseinUSstockfutures.
combat coronavirus accelerated with hospitaldischargeoravaccinethatpre- cinestotacklethecoronavirus,withthe ecessorcompany.HetookoverMrWil- MrWillardhadoverseenthecom-
thatpreventsinfections’
RocheofSwitzerlandlaunchingananti- ventsinfections,”hesaid. NationalInstituteofHealthlaunchinga lard’schiefexecutivedutiesafterMr pany’stransitionawayfromtraditional
body test and the US government Remdesivirisanantiviraldrugthat public-private partnership, working Willardtookatemporarymedicalleave combustibletobaccotothefastergrow-
announcingaresearchpartnership. emergedfromanefforttotacklethe patientsgetoverCovid-19,bettertests with 16 pharmaceutical and biotech ofabsence. ingvapingmarket.
InvideofootageonGilead’sremdesi- westAfricanEbolaepidemicof2013-16. arealsoneededtotracktheprogressof companies. Altria also said it had separated the “TheboardthanksHowardforhis
virdrug,whichwasleakedtoindustry Butitwasneverfullyevaluatedtothe thediseaseifcountriesaregoingtoend Thegroupwillworktowardsprioritis- roleofchairmanandCEO,withboard nearly30yearsofdistinguishedservice
publicationSTATnews,atrialspecialist satisfactionofregulatorsandremains theirlockdowns. ing the correct vaccines and drugs, memberThomasFarrell,whoseback- toAltriaandforhelpingtosetthecourse
attheUniversityofChicagosaidmany anunlicensedmedicineeverywhere. Rochesaidyesterdayitwaslaunching streamliningclinicaltrialsandco-ordi- groundinmainlyintheenergysector, forAltria’s10-yearvisiontoresponsibly
patientstakingitwererecoveringand Gilead was up7.7percentat$82.046 anantibodytestthatwillhelphealth natingonregulation. steppinguptobecomechairman. leadthetransitionofadultsmokerstoa
beingdischargedquicklyfromhospital. bymiddayinNewYorkyesterday. professionalstestwhetherpeoplehave AdditionalreportingbyCliveCooksonin The leadership and governance non-combustiblefuture,”saidMrFar-
ThenewsbuoyedtheS&P500,which GeoffreyPorges,ananalystatSVB- previouslyhadthevirusornot. London changescomeafterAltriawroteoffthe rell.
Travel & leisure. Gaming
Sport embraces virtual competition to replace real-life action
haswarneditriskslosingatleast£1.1bn OneSkySportsinsidersaid:“Aswe alternative.Mainstreamsportsexecu- JamesEarl,headofthesportsbusi- pastandpresent,orevenathletesfrom
Horseracing,F1andfootball
fromfootball’sshutdown,whileLaLiga stand now, esports would never really tivesalsobelievetheeffortcanattracta nessgroupatlawfirmFladgate,said:“It othersports.
switchtoonlineeventsas hassaiditfacessimilarlossesifthesea- countertheaudiencenumbersforlive youngergenerationoffans. hasbecomeanessentialbecauseright TheePremierLeaguefinals,thetop
soncannotbecompleted. sport.It’snotlikeforlike.”Theyadded, Esports,rangingfromdroneracing nowit’squiteliterallyprobablytheonly tier’s official esports tournament for
industryadaptstolockdowns FormulaOnehasbeenforcedtopost- however: “It’s definitely showing its tocompetitivevideogaming,remains wayyoucanengagewithyourfansand Fifa20playersintheUK,duetotake
poneorcancelnineGrandsPrix,with valueandtheaudiencesaregrowing. a nascent industry. Before the lock- alsotrytosatisfyyoursponsorsand placeinLondonlastmonth,werecalled
each race worth between $40m and “Butyou’renevergoingtoconvertthe down,PwC,theauditfirm,wasfore- broadcasters.” off,showingthatesportsreliesonthe
SAMUELAGINIANDMARKDISTEFANO $70minpromoterfeesfromracetracks. over-55demographictowatchinglive casting that global esports revenue F1,whichhasbeenownedbyLiberty old-fashionedbusinessoffillingarenas
Shut down by the coronavirus pan- IthasinsteadstagedvirtualGrandsPrix gameplay.Youwon’t.Thisismorecon- would rise to $1.8bn by 2023 — up Mediasincean$8bntakeoverin2016,is withspectatorsaswellasstreaming.
demic,traditionalsportsareturningto withdriverspastandpresent. sumptionforthe18to35demographic, from$775min2018.Buttherearesigns slashingcostsinitsmainbusiness,fur- Apersonwithknowledgeofthemat-
virtual competitions as they seek to JulianTan,headofdigitalbusiness andevenyoungerconsideringkidsare thatesportscangainwideaudiences. loughinghalfits500staffandcutting tersaidtopfootballersaresettotake
keepfans,broadcastersandsponsors initiativesandesportsatF1,concedes homefromschool.” Morethan4.8mviewerswatchedvir- seniorexecutivepaybyafifth.Whileit partinanalternativeFifa20knockout
enthralled—andcushiontheblowof that“FormulaOneracingisnotreplace- Thoughthereislittlehopeofreplicat- tualhorsePottersCornerwinacompu- isunabletoorganiseliveraces,F1is tournamentbeingorganisedbythePre-
revenuelostfromthehalttoliveaction. ablethroughesports”,butsaiditis“an ingtheboisterousterracesorthesmell tersimulationoftheGrandNational holdingvirtualGrandsPrixtoreplace mierLeagueanditsclubs.Aswithother
ThePremierLeagueisintalkswithits opportunitytocreatesomethingdiffer- ofracingfuel,esportsisthenextbest onITVthismonth. everypostponedevent,thoughchampi- virtualeventssuchastheGrandsPrix,
clubstolaunchanesportstournament ent,somethingnew,somethingthatour onshippointsarenotupforgrabs.Itis thereislikelytobebroadcastinterest.
onFifa20,avideogameplayedbymil- fanscanengagewith”. alsoanopportunityforstarsfromother Witheliteclubsdeliberatingtheir
lionsofpeople,accordingtoaperson ButTomCassels,jointheadofthe sportstotakepart. options,LeytonOrient,aclubinEnglish
withknowledgeoftheplan.Spain’sLa sportssectorteamatlawfirmLinklat- “I’m in a WhatsApp group with it football’sfourthtier,tooktoTwitterin
LigahasalreadydonesowiththeFifa20 ers,warnedtraditionalleaguesseeking mustbelike100or200drivers,”said March to arrange Ultimate Quaran-
LaLigaSantanderchallenge. tosatisfyvaluablebroadcastandspon- LandoNorris,theyoungesteverUKF1 Team,a128-strongFifa20eventthat
“Thiskindofglobalenergy[ofmov- sorshipdealsthroughesportsofferings driver,whoracesforMcLaren.“Someof raisedmorethan£50,000forcharity.
ingtoonlineevents]willhelpthesport maystruggletohonourtheircontracts. themdon’thaveasteeringwheelora Notalloftheinterestwillstickwhen
returnstrongerthaneverinthemonths “There’s uncertainty generally in pedalsetoranything.Butnowthey’re liveeventscantakeplaceagain.Jane
ahead,”AlfredoBermejo,LaLiga’sdig- business around the effect of force seeingsomanyotherdriversgetintoit Weedon,directorofbusinessdevelop-
italstrategydirector,said. majeureclausesintheCovidworld,” anddoitandstartstreaming.” mentatTwitch,saidtheathletesthem-
Theaimistoprovidesupporterswith saidMrCassels.“Itwouldtakeathor- Norrischatstofansashewatches selveswillnothavetimetogameand
an alternative way to follow sport, oughly aggressive interpretation of a clips or broadcasts his own esports stream for hours on end once they
broadcasterswithvirtualactiontofill contractoranextremelybadlydrafted exploitsonTwitch,anonlinestreaming resumetheirintensetrainingschedules.
emptyairtimeandprooftosponsors contractforesportstobecapableoffill- platformthatwasacquiredfor$970min Whiletherewouldbe“someinevita-
thattheirbrandsarestillreachingfans. ing the gap for something that was 2014byonlineretailerAmazon.Intak- bledrop-off”,shesaid,leagueswitha
ThePremierLeague,theworld’smost intendedtobelivebroadcast.Goodluck ingpartinthevirtualGrandsPrix,Nor- “communitythatthey’vebuilt”online
valuabledomesticfootballcompetition, toanyonethatistryingthat.” LiverpoolFCstarTrentAlexander-Arnold,left,playsinFifa20 riscomesupagainstotherF1drivers, willsee“incentivestokeepthatgoing”.
—ScottWilson/PAWire
APRIL 18 2020 Section:Companies Time: 17/4/2020 - 18:40 User: cathy.pryor Page Name: CONEWS1, Part,Page,Edition: USA, 8, 1
UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws
18April/19April2020 ★ FTWeekend 9
COMPANIES. WEEK IN REVIEW
Bailouts need more
A ttheendof2008,Detroit Sosharpisthehitfromcoronavirus administrationpushedGMand Evenbefore Ifthereisdilution,sobeit.Existing
carbossesflewonprivate thatextraordinaryandrapidstate Chryslerthroughbankruptcytoshed shareholdershavenorighttobebailed
thevirus
jetstoWashingtontoask supportisjustified,especiallyfor someoftheirdebts.Althoughcreditors out.Juniorcreditors,too,shouldaccept
of us to share the
formultibillion-dollar smallerbusinesses.Butforlarger criedfoul,officialspersuadedacourt struck,US theriskthatcomeswiththeterritory.
rescuepackages. companiesthatareaskingforspecific thatastheonlylenderintown,itcould TheironyisthattheUSgovernment
corporate
“Couldn’tyouhavedowngradedto rescues,thepainsharematters. dictatetheterms,anditwantedtosave maystillendupwithsizeableequity
pain — and gains
firstclassorsomething?”one True,thereisnotthesamemoral companiesandemployees,nottheir debtwasat stakesintheairlines.Noonehasthe
lawmakerasked.Pressedtotakeapay hazardasinthefinancialcrisis,when creditors. faintestideahowquicklythetravelling
record
cut,Ford’sthen-chiefexecutivesaid:“I companiesthattookrecklessrisks WhenitbailedoutAIG,theUS publicwillreturntotheskies.If
thinkI’mOKwhereIam.” wererescued.Butevenbeforethevirus governmenttook80percentofthe levels—the revenuesremaindepressed,thedebts
Today’sbailoutshavebarelybegun, struck,UScorporatedebtwasatrecord insurancegroup’sequity,angering willneedrestructuringintoequity.
highest
buttheyarealreadytriggering levels—thehighestrelativetoassetsin someexistingshareholders.The Asimilarphenomenononamore
flashbackstothefinancialcrisis.Some 20years.Companiesthatchosetotake interventionwasfodderforacademics, relativeto alarmingscalecouldoccurwiththe
thingshavechanged,buttherearealot onhugedebtstopayforshare politiciansandthecourtsforyears.But TreasuryandFed’snewcorporate
assetsin
ofrepeatargumentsoverhowto“share buybacksoverthattimedonotdeserve againAIGhadnoalternatives,the creditprogramme,whichincludesthe
thepain”. bailoutswithnostringsattached. interventionstoppedaworsecrisis, 20years centralbankbuyingjunkbondsforthe
Executivesarecertainlysavvierthan YettheUSairlinesbailout anditmademoney.Thereturnforthe firsttime.
theirpredecessorsinmakingpersonal announcedthisweekismainlygrants taxpayerwasabout$23bn. WearenotfarawayfromtheFed
TheTopLine sacrifices.VirginAtlanticchief andloans.Onlytheadditionof Asthegovernment’schief buyingshares,apolicyendorsedby
executiveShaiWeisswasanearly warrantsgivesthetaxpayerachanceto restructuringofficerinthatperiod,Jim formerchairJanetYellen.Despite
Tom mover,takinga20percentpaycut. benefitfromagroup’srecovery,and Millstein,says,moredebtdoesnot effortstothecontrary,thegovernment
Thatisprudentwhenyoufollowupby onlytoapaltrydegree—about1per solvetheproblemforoverleveraged willendupowningmoreofUSAInc.
Braithwaite askingtheUKgovernmentfor“clear, centofthesharesinDelta,forinstance. businesses;andequitygivesthe
decisiveandunwaveringsupport”. Incontrast,theObama taxpayersomechanceofupside. [email protected]
BEST OF
Dealmaker wins Saudi support for Newcastle United buy
BUSINESS
Eyefordetail:AmandaStaveleyhas
Corporate earnedareputationasatrusted Vaccine push
person in
intermediaryforMiddleEastern
the news
investors
—JennyGoodall/ANL
AmandaStaveley 3GlaxoSmithKlineandSanofiarejoiningforcesto
ForsixyearsPCPranaYemeni developaCovid-19vaccinewiththeaimofgettinga
Founder,PCPCapitalPartners
telecomsgroup.Butotherwould-be treatmenttomarketinthenext12to18months.
blockbusterdeals,suchasaChinese- Thecompaniessaidtheyplannedtostartphase1
LastOctoberontheRedSea,British backedattempttoinvestinLiverpool trials,whichgivehumansthedrugforthefirsttime
financierAmandaStaveleyandher footballclub,havefoundered. totestitssafety,inthesecondhalfofthisyear.
husbandsteppedaboardthe In2011MsStaveleymarried Ifsuccessful,furthertestingforefficacywouldbe
megayachtofSaudiArabia’scrown MehrdadGhodoussi,aformerbanker neededwiththeaim
prince,MohammedbinSalman. whoisnowmanagingpartnerofher ofmakingavaccine
AlsoamongthepartywereYasiral- firm;thepairliveatLondon’sPark availablebythesec-
Rumayyan,headofSaudiArabia’s Lanewiththeirfive-year-oldson. ondhalfof2021.
sovereignwealthfund,andglobal Twoyearsafterherweddingshewas
businesschiefsincludingSoftBank’s diagnosedwiththegenefor 3The Facebook-led
MasayoshiSonandReliance Huntington’sdisease,arareand digital currency
IndustriesfounderMukeshAmbani. incurablebraindisorder.Thatadded project Libra
Thisweekoneofthefruitsofthat urgencytoanalreadydriven announcedadrastic
tripbecameevident.Discussionson personality,saythoseclosetoher. downgrading of the
theyachtSerenehelpedrevivean Herdiaryforthecomingmonthsis scope of its initial
attemptledbytheSaudifundtobuy full.Withassetpricesdroppinginthe vision, overhauling
thePremierLeaguefootballclub pandemic,MsStaveleyiseyeing severalelementsoftheprojectinanattempttopla-
NewcastleUnited.Despitefootball ‘Sheisvery intermediaryforMiddleEastern Undeterred,shemadethemostof furtherdeals.AndinJune,hearings categlobalregulators.“Libra2.0”planstoofferaset
beingsuspendedinthecoronavirus billionsthroughcharm,aneyefor contactsgarneredthroughher begininher£1.5bnlitigationagainst ofdigitalversionsofsinglecurrencies,suchasaLibra
cleverat
pandemic,anagreementwasreached technicaldetailandaferocious previousbusinessesandsetupPCP Barclays,inwhichsheaccusedthe dollaroraLibraeuro,thatwouldbefullybackedone
thisweekfora£300mpurchaseof penetrating determinationtomakedealsshe CapitalPartners,heradvisoryand bankofdeceitoverpaymentsmadeto toonebycashorcashequivalents,plussupportfrom
theclubfromretailtycoonMike envisagesbecomereality. privateequityfirm,whichhasoffices Qatartosecureitsinvestmentinthe acapitalbuffer.
thesedeep-
Ashley.ThetalkswereledbyMs MsStaveleyisthedaughterof inDubaiandLondon. financialcrisiscashcall.Thebank
Staveley,whoseprivateequityfirm pocketed Yorkshirelandedgentry;herfather Onepersonwhohasworkedwith deniestheclaims. 3Larry Fink, chief executive of BlackRock, hit
willalsoinvest. foundedtheLightwaterValleytheme hersaid:“Sheisverycleverat IftheNewcastledealisapprovedby backatcriticismsthatitsworkwiththeFederal
circlesand
Theacquisition—MsStaveley’s park.Butinheryouthherparents penetratingthesedeep-pocketed thePremierLeague,MsStaveley’s Reserveisakintoa“bailout”oftheworld’slargest
firstwithSaudiArabia’sPublic shedoes toldhershewouldneedtoearnor circlesandshedoesitwithcharm companywillactasassetmanagers assetmanagerandtheexchangetradedfundindus-
InvestmentFund—marksareturnto marrymoneybecause,inkeeping andpersistence.Shehobnobswith fortheclub.Shewillthenneedtoturn tryitdominates.
itwith
high-profiledealmakingforawoman withfamilytradition,theywould theseguysandsomeoftheseguys hercharmontoadevotedfanbase TheNewYorkFedhiredBlackRocklastmonthto
bestknownfororchestratingthe charmand leavetheirestatetotheireldestson. arenotverysophisticated . . . Shehas desperatetomoveonfromyearsin runthreestimulusprogrammes,includingonesetto
purchaseofManchesterCitybythe Asachildshedreamtofbeinga awayofdealingwiththesepockets thedoldrums.“Whatshe’sgottodo[at purchase its credit ETFs. The appointment has
persistence’
AbuDhabiroyalSheikhMansourbin stuntwoman,repeatedlywatchingthe thatisantitheWallStreet Newcastle]iscarefullymanage attractedcriticismforcreatingapotentialconflictof
ZayedAlNahyanin2008,and daredevilsequencesinJamesBond playbook . . . Ithinkpartofher expectations,”saidaseniorexecutive
shortlyafterwardsa£3.5bnAbu films.Afterdroppingoutofuniversity, successisthatsheissystematically whohasworkedwithher.
Dhabiinvestmentaspartofan sheborrowedmoneytobuya underestimated.” Thatmaybechallenging.Amongthe
emergencycashcallbyBarclaysbank restaurantpopularwithGulf MsStaveley’sfirmhasbeeninvolved club’sfansisAlexHart,a26-year-old
BlackRock’sassetstumbledto
attheheightofthefinancialcrisis. racehorseowners.Hernextventure inabout£8bnofdealsoverthepast cheffromtheareawhohaspledgedto
The47-year-oldYorkshirewoman wasahigh-techconferencecentre decade,includingaseriesofproperty celebratethedealwithanewtattoo:a $6.5tnattheendofthefirst
haslongprovidedtabloidfodder thatwasboughtbythelisted anddistresseddebtpurchaseson portraitofMsStaveley.
quarter,downfromarecordhigh
thankstoherglamourandformer communicationsgroupEuroTelecom, behalfofSaudiandEmiratiinvestors; Hesaid:“Ifshe’spartoftheteam
relationshipwithPrinceAndrew.But butthecompany’scollapseinthe sheadvisedonthe2015Qatari thathelpsmakeNewcastlegreatagain, of$7.4tnattheendof2019
thosewhohaveworkedwithhersay dotcombustforcedMsStaveley acquisitionforabout£1bnofthree I’mafanofhers.”
shehaskeptherpositionasatrusted intoinsolvency. LondonhotelsincludingClaridge’s. JudithEvansandArashMassoudi
Under the hood Banks ramp up reserves to tackle loan problems
interestgivenBlackRockrepresentsnearlyhalfof
thefixedincomeETFmarket.
“Ithinkit’sinsulting,”MrFinksaidinresponsetoa
ProvisionsatsixbiggestUSlendersreach$25.4bninthefirstquarter,anincreaseof350%yearonyear questiononanearningscallwithanalystsonThurs-
day.“Iobjecttothewayyouframeditasabailout.”
Mr Fink’s comments came after BlackRock
BigUSbanksarebatteningdown US banks set bleak tone to results season reportedarecorddropinassetsundermanagement
thehatchestodealwithan asitsclients’portfoliosdroppedinvalueduring
expectedsurgeinloanlossesasthe theturmoilinglobalmarketsstemmingfromthe
2020 Q1 results (year-on-year change, %)
pandemiccastsseriousdoubtsover coronaviruspandemic.Thegroup’sassetstumbled
thecapacityofconsumersand to$6.5tnattheendofthefirstquarter,downfroma
companiestopaytheirdebt. recordhighof$7.4tnattheendof2019.
Credit provisions
Loan-losschargesatsixbigUS
banksreached$25.4bninthefirst Divisional revenues as a % of revenues 3TheUKaccountingindustrywasplungedintoits
quarter.Thismarksa350percent Q1 Q1 worstcrisisinmorethanadecadeasthe“BigFour”
Investment
surgeincollectiveprovisionsacross Net profit FICC Equities banking Revenue 2019 2020 firmsslashedpartners’paybyuptoaquarterand
BankofAmerica,Citi,JPMorgan, theirmid-tierrivalsfurloughedjuniorstafftocope
WellsFargo,GoldmanSachsand withthepandemicfallout.
MorganStanleyversusayear Bank of America* 4.4 20.9 London-headquarteredKPMG,PwC,Deloitteand
earlier,aschargessoaredtolevels EYhavereducedtheamountofprofitsthataredis-
notseensincethefinancialcrisis. 33.9 tributedtotheirpartnerseachmonthbybetween20
Thechangeillustrateshowbanks Citigroup 10.7 Revenue was up 12% and25percenttobuildupcashreservesandhelp
arerampingupreservestodeal
because of higher
withanticipatedloanproblems
fixed-income and equity
amongclients,astopeconomists
warnthattheworldeconomyhas Goldman Sachs 10.7 trading. But loan-loss £720,000 1,000
2.5 reserves cut profits in half
fallenintorecession.Theprovisions Averageearnings Numberof
areadditionstoreservessobanks forUKpartners WeWorkjobsat
29.3
haveenoughintheirrainydayfund in‘BigFour’firms riskinfreshround
JPMorgan* lastyear ofcost-cutting
tocoverfuturelosses.
Sincethestartoftheyear,US
5.1
bankshavebeenoperatingundera
newaccountingstandard,which Morgan Stanley 4.3 Ratio of loan losses
makesithardtocomparethemost 0.3 to revenues increased surviveadownturninwork.PartnersattheUKunits
recentchargeswithpast six-times year on year ofthefourfirms,whichbetweenthememployabout
22.6
performance.Previously,banks Wells Fargo Not Not to 29%, the highest since 74,000people,earnedanaverageof£720,000last
madeprovisionsforloanlossesonly disclosed disclosed 3.9 the financial crisis year.Theeconomicblowtotheprofessionalservices
whencustomersmissedpayments; industry follows years of corporate failures and
underthenewaccountingstandard, accountingscandalsthathavehurttheirreputations.
theyhavetomakeprovisionsbased
onaloan’slifetimevalue,which TOTAL 3WeWorkchiefexecutiveSandeepMathranitold
involvesalotofjudgment. employeesthatplansforanewroundoflay-offs
Morgan Stanley had
Ofcoursewhatmattersinthe wouldbefinalisedbytheendofMay,asthelossmak-
the smallest fall in first quarter WWWeeellllllsss,,, ttthhheee fffooouuurrrttthhh---bbbiiiggggggeeesssttt UUUSSS bbbaaannnkkk,,,
longtermisnothowmuchbanks ingofficespaceproviderimplementsanothercost-
profits because it has the least reported an 89% drop in
expecttoloseonsouredloans,itis cuttingplan.Thenextroundofcutscouldaffect
exposure to Main Street lending first-quarter profits to $653m
howmuchtheyactuallyloseas more than 1,000 of WeWork’s roughly 10,000
borrowersdefaultandtheirloans employees, according to people familiar with
havetobewrittenoff.Investorswill *JPMorgan’s trading figures do not include credit valuation adjustment of -$95 1m, in the first quarter of 2020 and of +$136m for the first quarter of 2019 – the bank does not break itsplans.
havetowaitmuchlongerforaclear out those between fixed income and equities. Thecompanyhasalreadyshedthousandsfromits
pictureonthat.LauraNoonan Sources: company reports; companies; Refinitiv payrollasitsoughttocontainitsexpenses,including
2,400peopleitlaidofflastyear.
APRIL 18 2020 Section:Companies Time: 17/4/2020 - 18:42 User: cathy.pryor Page Name: CONEWS2, Part,Page,Edition: USA, 9, 1
UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws
10 ★ FTWeekend 18April/19April2020
COMPANIES & MARKETS
Carmakers start up factories again
Telecoms
Orange cuts
dividend by
while striving to keep workers safe
a third with
rivals poised
Most adopt a running-slow approach, but Swedish exceptionalism entails that Volvo go at full pelt
to follow
PETERCAMPBELL—LONDON
NICFILDES—LONDON
AsdawnbrokeonTuesday,morethan LEILAABBOUD—PARIS
2,000factoryworkersarrivedatMagna France’sstate-backedtelecomsopera-
Steyr’splantinGraz,Austriaforthefirst torOrangehascutitsdividendforthe
timeinamonth. firsttimeineightyearsinthefaceofthe
Thestaff,whoassembletheMercedes coronavirus pandemic but has held
G-Classwagonforthecontractmanu- backfromcancellingitoutright.
facturer,weregiventwofacemaskson
arrival. ChiefexecutiveStéphaneRichardsaid
Sittingspacedapartonthefloorofthe thatthedecisiontoreducetheannual
carplanttoavoidcrowdingoneofthe dividendbyone-thirdto50centsper
meeting rooms, they listened to an sharewasmadewitha“heavyheart”.
hour-longbriefingonthehealthmeas- Healsosaidtherehadbeendisagree-
uresputinplaceacrossthefacility,from ment about whether any dividend
newwashstationstocardboardparti- should be paid at all at board level,
tionsthatseparatelunchbenches. including from the “reference share-
Inthecomingdays,thescenewillbe holder”—theFrenchstate,whichowns
replicatedacrossasmatteringoffacili- a23percentstakeandappointsthreeof
tiesfromSwedentoFrancetoGermany, 14directors.Withthecountryinitsfifth
asthefirstofEurope’shaltedcarlines weekoflockdown,thesubjectofshare-
begin moving again after weeks of holderpayoutshasbecomecontentious,
silence, while shuttered US sites are andgovernmentministershavewarned
likelytofollowsuitinthecomingweeks. companieswhotakestateaidnottopay
AfterdecidingtoclosedowninMarch them.
tocontaintheoutbreak—andbecause Orangehaspledgednottoputanyof
ofacollapseindemandandstoppagesin its87,000Frenchworkersonstatewel-
thesupplychain—carmakersincluding fareschemes,andMrRichardsaidthat
Toyota,Volkswagen,Volvo,Renaultand thecompany’sstrongfinancialposition
Hyundaiarefiringupfactoriesagain, meant that eliminating the dividend
whiletryingtokeepworkforcessafe. European car output hit Europe’s car sales slump Italy worst hit in continent wouldbeunfairtoshareholders.
“It’s easy to shut down. It’s much “Wehadtopaysomething,”hesaid.
Jobs and output (’000) Rolling 12-months sales, units (m) Sales by country, year to Mar 31 (annual % change)
more complicated to open up,” says “Itisgoodnewsinthecurrentcontext.
HakanSamuelsson,chiefexecutiveof 600 16 Therewillbefewcompanies,especially
VolvoCars,whichwillopenitsTors- Germany* Sweden withpublicownership,thatwillpaya
landasiteinSwedenanditsGhentplant 500 Netherlands dividend.”
15
inBelgiumonMonday. s Sweden Belgium RobertGrindle,ananalystatDeut-
e
Yetwhileallcarmakerssaytheyare ye400 Germany scheBank,saidthedividendcutwasa
o
committedtoprotectingworkers,there mpl 14 Poland case of “political correctness”.
aresubtledifferencesinapproachas ct e300 Portugal Romania Switzerland
eachtriestobalanceefficiencyofsites Dire200 13 Spain ‘Wehadtopaysomething.
withthewellbeingofstaff. UK
“Youhavetowatchforthehealthof Italy France 12 Austria Itisgoodnewsinthe
100
thepeoplebutalsothehealthofthe UK Spain France currentcontext’
company,” said Frank Klein, Magna 0 11 Italy
Steyr’smanufacturinghead.“Peopleare StéphaneRichard,OrangeCEO
0 100 200 300 400 500 1991 95 2000 2005 2010 2015 2020 -40 -30 -20 -10 0
happytobeofffortwoweeks,butthey Production
allknowthatiftheshutdownistoolong Source: Acea *Production, administrative and development employees OrangeisthefirstlargeEuropeantel-
thereisalwaysarisktojobs.” ecomscompanytoreduceitsdividend
With the pandemic spreading in ‘Youhave greenlighttoopen,willreopenwith othercarmakersareintroducing,itech- Workersonthe Hyundaihastransformeditscanteen asaresultofthevirus.Otherscoulddo
March, some North American plants slowerlines. oestheSwedishmentalityofindividual assemblylineat withplasticpanels,creatinganetwork thesame,notablyBT,whichisexpected
towatch
werehitbystaffwalkoutsoversafety Themeasureswillslowthenumberof responsibility,whichhasseenthecoun- MagnaSteyr’s ofboothsforworkerstoeatinisolation. to follow Orange’s lead in coming
concerns.Thenewprotectivemeasures forthe vehiclesproduced.Butforaglobalecon- trykeepsomeschoolsandrestaurants Grazplant, Itwillsanitiseitssitebetweentwoshifts, weeks.
are being introduced in consultation omy buckling under the disruption openwhileothernationshavebeenin whichreopened whichhavebeenspacedfurtherapartto Investorsaretypicallyattractedtothe
healthof
withunions. wroughtbycoronavirus,analystssay completelockdown. thisweek allowcleaning. sectorbecauseofitsreliabledividends
—Ritz
“Safetyofhealthisakeypriority,” thepeople that is not necessarily an immediate Other carmakers are restarting at ToyotawillreopentwoFrenchplants anddefensivenature,butthisyearthe
saidJohannNeuhold,theleadofthe problem. speedbecauseofthecomplicationsof nextweek,withalldoorsheldopento European telecoms index has lagged
butalso
workscouncilatMagnaSteyrinGraz. “You can run the plant like this, reorganisingtheirfactories. avoidusinghandles.Wherenotpossi- behindthebroadermarketandisdown
“Nevertheless,safetyofjobsshouldnot thehealth thoughitobviouslywouldn’tbeaseffi- “Wehadalongdiscussionaboutit,” ble, door handles will be fitted with 24percentcomparedwitha17percent
beunderestimatedinthesetimes.” cient,”saidTimLawrencefromPACon- saidMrKleinatMagnaSteyr,which devicesthatallowstafftoopenthem declinefortheStoxxEurope600index.
ofthe
TheassemblylineatHyundai’splant sulting,whoadvisescarmakersonman- buildsmodelsforJaguar,BMWandToy- withelbows. “TheemergencysituationgivesBT
intheCzechRepublic,whichreopened company’ ufacturing and supply chains. “You otaaswellasMercedes. Othermeasuresincludereorganising massivecovertocut,”saidMrGrindle,
thisweek,willrunataslowerspeedto mightlose20-30percentofyoureffi- Anychangetoproductionalsomeant smoking breaks to avoid worker citingtheUKcompany’spensionand
FrankKlein,
allowworkerstokeeptheirdistance. ciency,butifdemandfalls,outputwill retrainingworkers,whilekeepingcom- crowding. fibre broadband investment costs as
MagnaSteyr
Normallyanemployeemovesalong havetocomedownanyway.” pletedistancewas“unrealistic”,hesaid. Almostallthecompaniestesttemper- factorsinapotentialreduction.
thelinewiththecarwhilecompleting CarsalesinEuropefell55percentin “Peoplehavetowalktopickupparts, aturesofstaffenteringandleavingthe Telecomsoperatorshavehadtocope
theirtask,suchasinstallingthedash- March,andareexpectedtodropfurther havetomovealongtheassemblyline, site,whileFerrarihasasanitisingmat withbigchangesindemandduringthe
board.Withspeedsreduced,staffwill inAprilwhenthefullimpactofthelock- youwillalwaysrunintootherpeople. forvisitorstocleantheirshoes. virus crisis, with millions of people
carryoutthesametaskbutwilltravela downsinbigmarketsbites. That’swhywemakeitmandatoryfor TheItaliancarmakerintendstousea workingfromhomereliantonresiden-
shorter distance, keeping them in a Others have rejected the running- peopletowearmasks.” localhoteltohouseanystaff—andtheir tial networks. Companies including
smallerareaandfurtherapartfromthe slowapproach.Volvoplanstorestartits Thegrouphastakenothermeasures families—whodevelopsymptoms. Orangehaveclosedhundredsofhigh-
nextworkstation. mainSwedishfactoryat“fullspeed” to minimise staff contact with each Carmakersarebeingforcedtorestart streetstoresbuthavenotfurloughed
Ferrari,whichhasnotyetreopened andcontroloutputbylimitinghours otherandwithpeopleoutsidetheplant. productiontorecouplossesmadedur- staff.
butispreparingtostartuponcecleared instead,somethingthatrequireswork- Workersarerequiredtocometothefac- ingtheshutdowns. Orangemaintaineditsguidancefor
by the Italian government, has two ersonitsassemblylineoperatingclose toryalreadyintheiroveralls,toavoid VW, which on Tuesday said first- 2020despitethedividendcutandeco-
staff on a car at any time, and will togetherasusual.“Wewillalwayswork crowdingthechangingrooms.Onceit quarterprofitsfell80percent,hasbeen nomic uncertainty with potentially
require all workers to remain at atfullspeedwhenwework.That’show reopenstheJaguarandBMWlinesnext paying€2bnperweekinfixedcosts lower revenue and earnings before
diagonallyoppositeendsofthecarfrom youmanageamodernassemblyfac- month,inanefforttoencouragestaffto whileitsEuropeanfactoriesareoffline. interest, taxation, depreciation and
theirpartner. tory,”saidMrSamuelsson. avoidpublictransport,MagnaSteyrwill “It’sanenormousinfluenceonour amortisation offset by lower capital
Thecompany,whichhastheluxuryof Workerswillwearmasksandgloves, addparkingbyusingspacenormally bottomline,thebigvolumedrop,and spendingasthepaceofinvestmentin
slower production than mass-market and be advised to wash hands fre- allocatedtocompletedcars. wedideverythingtoreducefixedcosts,” fasterbroadbandnetworksslowsdueto
manufacturers,normallyproduces48 quently at the newly-installed basins Staff are asked to bring packed saidVolvo’sMrSamuelsson.“Butwe thelockdown.
cars a day from three lines, but will andsanitisingpoints.Temperaturetests lunches, while Magna contacted its cannothaveshuttingdownasthelong Thegroupsaiditwouldreviewitsdiv-
restartatlowervolumestolimitthe atthesiteentrancearevoluntary. packaging supplier to provide large termsolution.Wecannotwaitforavac- idendstrategyatalaterdatebutthatit
numberofstaffatthesite. Whiletheapproachmayappearlax cardboard partitions for the lunch cine,sowehavetolearntoliveandwork intendedtoreturnthefull-yearpayout
Fiat, which is also waiting for the comparedtothedistancingmeasures areas. inasafeenvironment.” tothe70cents-a-sharelevelovertime.
APRIL 18 2020 Section:Companies Time: 17/4/2020 - 18:14 User: peter.bailey Page Name: CONEWS3, Part,Page,Edition: USA, 10, 1