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Business impact of COVID-19

Business impact of COVID-19

LATEST UPDATE: May 14, 2021 - 6:50pm
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5 hours ago

Toshiba announces a return to an annual net profit and stressed it would consider "credible" buyout offers, after a proposal from a private equity fund stirred turmoil within the storied Japanese firm.

The conglomerate -- once a shining symbol of Japan's advanced technology and economic power -- has been rocked by turbulence, facing scandals and losses before staging a recovery.

It rejoined the prestigious first section of the Tokyo Stock Exchange in January after sweeping restructuring and on Friday logged a net profit of 114.0 billion yen ($1.0 billion) for 2020-21, beating its target. — AFP

6 hours ago

Honda says that its full-year net profit soared more than 40% thanks to cost-cutting efforts, shrugging off the negative impact of the pandemic.

But the company now forecasts a drop in net profit for the year ahead and a stagnation in its operating profit, citing a global chip shortage and the rising costs of materials.

The Japanese automaker posted net profit of 657.4 billion yen ($6 billion) for the year to March, up 44.3%, beating its own annual forecast of 465 billion yen. — AFP

9 hours ago

The Walt Disney Company says it was seeing "encouraging signs of recovery" across a wide range of its businesses while its streaming television service grew slower than expected in the recently ended quarter.

TV streaming service Disney+ ended the quarter with nearly 104 million subscribers, fewer than expected but still part of a stable of "direct-to-consumer" services that saw audiences swell as people turned to the internet for entertainment because of the pandemic.

Disney says that it was seeing positive signs across its operations including parks, cruises, and resorts which took the hardest hit from COVID-19. — AFP

3 days ago

Crisis-hit Japanese carmaker Nissan says it had trimmed its annual net loss to $4.1 billion but warned its outlook remained clouded by the global chip shortage that has hit the auto industry.

Nissan says it narrowed its net loss to 448.7 billion yen for the fiscal year to March, from losses of 671.2 billion yen a year earlier, beating its own forecast. — AFP

May 6, 2021

Nintendo reports its highest ever annual profit Thursday after virus lockdowns caused sales of its blockbuster Switch console to soar, but the Japanese gaming giant warns the bumper pandemic year would be hard to repeat.

While fresh waves of infections have dashed recovery hopes in many industries, successive rounds of restrictions have helped extend a run of good fortune for video game companies as people seek indoor entertainment.

The firm says surging sales were propelled by the runaway popularity of the Switch and the family-friendly game "Animal Crossing", which became a lockdown hit. — AFP

May 6, 2021

Jobless rate eases to 7.1% in March from an upwardly revised 8.8% in February.

That means 3.44 million Filipinos were unemployed, down from 4.19 million in February.

The underemployment rate, which reflects workers looking for more job to augment income, also went down to 16.2%, equivalent to 7.34 million Filipinos in March. This was down from 18.2% in February but up from 16% in January. —  Prinz Magtulis

May 5, 2021

Pfizer sharply increases its 2021 profit projections, citing much higher COVID-19 vaccine sales which are on track to provide a "durable" revenue stream in the wake of the pandemic.

The drugmaker reports a jump in first-quarter profits based on surging revenues, with nearly one-fourth of sales coming from COVID-19 vaccines. 

With German partner BioNTech, the pharma giant is ramping up vaccine production and now estimates 2021 revenues of $26 billion from the vaccine, up from the $15 billion projected in February. — AFP

May 3, 2021

The Covid-19 pandemic provided a boost for e-commerce last year, but the digital windfall was not enjoyed equally across the board, a UN study found Monday.

"Although it will take some time to get the full picture of the impact of Covid-19 on e-commerce... a number of developments point to the strong rise in e-commerce in 2020," said the report by the UN Conference on Trade and Development (UNCTAD).

The study crunched data from seven countries — Australia, Britain, Canada, China, Singapore, South Korea and the United States — representing some two-thirds of online trade. —  AFP

April 30, 2021

British pharmaceuticals giant AstraZeneca says that net profit doubled in the first quarter, with sales of its COVID-19 jab at $275 million (227 million euros).

Profit after tax jumped to $1.56 billion in the three months to the end of March, compared with $780 million a year earlier, AstraZeneca says in a results statement. — AFP

April 29, 2021

South Korean tech giant Samsung Electronics posts a 46.3% rise in first-quarter net profits, largely driven by robust sales of its smartphones and home appliances due to continued stay-at-home demand.

The firm is the flagship subsidiary of the giant Samsung group, by far the largest of the family-controlled empires known as chaebols that dominate business in South Korea, the world's 12th-largest economy.

The conglomerate is crucial to the South's economic health -- its overall turnover is equivalent to a fifth of the national gross domestic product. — AFP

April 28, 2021

Japan's Sony reports a record $10.7 billion annual net profit, thanks to unprecedented pandemic-driven demand, but issued a cautious forecast as vaccines drive hope for a return to normality.

The company reports a net profit of 1.17 trillion yen ($10.7 billion), more than doubling from the previous year on sales of 8.99 trillion yen. But for the fiscal year that began in April, they forecast net profit of just 660 billion yen. — AFP

April 28, 2021

Google parent Alphabet reports that quarterly profit more than doubled as digital advertising surged with more people relying on the internet during the coronavirus pandemic.

Profit in the first quarter leapt to $17.9 billion from $6.8 billion in the same period a year ago while revenues jumped 34 percent to $55.3 billion, led by gains in advertising and cloud computing services.

"Over the last year, people have turned to Google Search and many online services to stay informed, connected and entertained," says Alphabet and Google chief executive Sundar Pichai. — AFP

April 23, 2021

Japanese car giant Honda says it would aim to have electric and fuel cell vehicles account for 100% of all sales by 2040 to promote climate goals.

The automaker's newly appointed CEO Toshihiro Mibe described the target as "challenging" but said the firm wanted to "set high goals".

Honda has said it wants the ratio of electric vehicles and fuel cell electric vehicles sold in major markets to hit 40% by 2030 and 80 percent by 2035, before hitting 100 percent globally by 2040. — AFP

April 22, 2021

French luxury goods group Hermes said Thursday that its sales jumped 38 percent in the first quarter of the year compared with 2020, bolstered by a strong performance in Asia.

The maker of Birkin handbags said its revenues reached 2.1 billion euros ($2.5 billion) in January-March, which was higher than even the same period in 2019, before the global Covid-19 pandemic struck.

The sharp rise was driven mainly by increased demand for the group's bags, clothing and watches in China and other Asian markets, with consumers turning to online shopping despite the hefty Hermes price tags.

"The success of online sales has been confirmed," finance director Eric du Halgouet told reporters by phone, adding that internet sales had seen "growth in three figures across all regions."

Sales in the United States climbed 23 percent from a year earlier, but they stagnated in Europe, where many major economies, including France, remain locked down. —  AFP

April 20, 2021

United Airlines reports another quarterly loss, but says it sees a "clear path to profitability" now that coronavirus vaccines are becoming more widespread.

The big US carrier, which has suffered from the broad travel industry downturn during Covid-19, says it is positioned for the industry recovery after cutting costs and gradually improving its cash burn position during the pandemic.

"We're encouraged by the strong evidence of pent-up demand for air travel and our continued ability to nimbly match it," says United Chief Executive Scott Kirby. — AFP

April 16, 2021

Quarterly sales by the French cosmetics group L'Oreal exceed their pre-pandemic levels for the first time in the first three months of this year, according to figures released Thursday.

The company whose brands include Maybelline, Lancome, Kiehls and Redken sold 7.6 billion euros ($9.1 billion) in products in January through March.

That is 5.4% rise on the same period last year, but L'Oreal's sales had already begun to fall the as the Covid-19 pandemic began to sweep the world and trigger lockdowns that kept its customers from going to the office or out for the evening. — AFP

April 14, 2021

Europe faces more risks to its economic recovery due to COVID-19 variants and delays in vaccination campaigns, and should roll out temporary government spending programs, the IMF says on Wednesday.

The IMF sees European growth of 4.5% this year, 0.2 points lower than the October forecast, followed by a 3.9-percent expansion in 2022, according to the latest Regional Economic Outlook. — AFP

April 13, 2021

Asian ride-hailing and financial services company Grab plans a Wall Street listing after merging with the investment fund Altimeter Capital Management in an operation that values Grab at $39.6 billion, according to a media report.

The operation would be the biggest market launch via a Special Purpose Acquisition Company (SPAC), a statement says. — AFP

March 30, 2021

The number of jobless Filipinos increased to 4.2 million in February from 4 million in January, the Philippine Statistics Authority says.

The jobless rate inches up to 8.8% from 8.7% in the same periods. —  Prinz Magtulis

March 20, 2021

Volkswagen says it was suspending production at its four plants in Brazil for 12 days because of a new surge of COVID-19 in the hard-hit country.

Brazil is reeling from a new wave of infections and deaths that has pushed hospitals across the country close to the breaking point.

The German auto maker's Brazilian unit says that starting Wednesday it would temporarily halt vehicle production "to protect the health of its employees and their families." — AFP

March 17, 2021

German luxury automaker BMW says it expected a "significant increase" in profit before tax this year and would speed up its transition to electric vehicles as the economy recovers from the coronavirus pandemic.

For 2020, the company reported a 23-percent slump in net profit to 3.9 billion euros ($4.6 billion) compared with 2019 as the health crisis battered the economy.

BMW says it was determined to build on the upturn that begun in the second half of last year, bringing forward the launch of its key electric car the i4 and hiking sharply its sales forecasts for the new vehicles. — AFP

March 17, 2021

Japanese automaker Honda will be "suspending production" for one week at most of its plants in the United States and Canada due to factors that include a shortage of parts, the company says.

The company is dealing with "a number of supply chain issues related to the impact from COVID-19, congestion at various ports, the microchip shortage and severe winter weather over the past several weeks," especially in Texas, a Honda spokesperson in Japan tells AFP.

"In some way, all of our auto plants in the US and Canada will be impacted, with most of the plants temporarily suspending production during the week of March 22," the spokesperson says.

March 10, 2021

Hong Kong carrier Cathay Pacific says it suffered a record $2.8 billion loss last year as the coronavirus pandemic wiped out demand for travel -- and the airline warned of a long road to recovery ahead.

Chairman Patrick Healy describes 2020 as the "most challenging" in the airline's 70-year history and says much will now depend on how effective and widespread global vaccination programmes are. — AFP

March 9, 2021

The OECD sharply hiked its 2021 global growth forecast on Tuesday as the deployment of coronavirus vaccines and a huge US stimulus programme greatly improve the economic prospects.

The Paris-based Organisation for Economic Co-operation and Development said it now expects the global economy to grow 5.6 percent, an increase of 1.4 percentage points from its December forecast.

"Global economic prospects have improved markedly in recent months, helped by the gradual deployment of effective vaccines, announcements of additional fiscal support in some countries, and signs that economies are coping better with measures to suppress the virus," it said in a report.

The recovery will be largely led by the United States thanks to President Joe Biden's $1.9 trillion stimulus programme, Laurence Boone, chief economist of the OECD, told AFP.  — AFP

March 8, 2021

Asian markets mostly fell Monday as persistent inflation fears overshadowed a forecast-busting US jobs report and Senate approval of Joe Biden's huge stimulus package, while Brent crude broke past $70 for the first time since January last year after an attack on energy facilities in Saudi Arabia.

Traders were given a stellar lead from Wall Street, where the three main indexes surged following news that the world's top economy created 379,000 jobs in February, reaffirming the view that it is on track for a strong recovery.

The report came just ahead of senators passing Biden's $1.9 trillion rescue plan, setting it up for the president's signature by the end of the week. — AFP

March 7, 2021

Offical data show China's export growth jumped to the highest in over two decades, with imports also surging in a sharp bounceback from the coronavirus outbreak that had brought activity to a near halt.

Exports spiked 60.6% on-year in the January-February period, above analysts' expectations and boosted by electronics and mask shipments, while imports rose 22.2%, official data show. — AFP

February 28, 2021

The International Monetary Fund estimates the GDP of the United States will expand by 5.1% this year, after contracting by 3.5% in 2020 as the pandemic forced lockdowns that shuttered businesses nationwide.

But economists think the growth rate could accelerate further.

The nearly $3 trillion in government stimulus programs last year, including a $900-billion measure approved in late December, were key to helping the US economy bounce back.  — AFP

February 16, 2021

Germany sportswear group Adidas says it will sell off its US subsidiary Reebok after struggling for years to lift the brand's fortunes.

As part of a new five-year turnaround plan, Adidas "has now decided to begin a formal process aimed at divesting Reebok", the group says in a statement. 

It did not name any potential buyers, but said further details would be announced at a meeting on March 10. — AFP

February 16, 2021

Singapore unveils a fresh multi-billion-dollar package to help pandemic-battered businesses and fund a vaccination drive, as part of the city-state's annual budget.

The coronavirus has plunged the financial hub into its worst-ever recession, with the crucial aviation and tourism sectors hit particularly hard as global travel ground to a halt. — AFP

February 10, 2021

Dutch brewing giant Heineken says it would cut around 8,000 jobs worldwide as the coronavirus pandemic saw it record a net loss of 204 million euros ($247 million) in 2020.

"The COVID-19 pandemic and governments' measures continue to have a material impact on our markets and business," Heineken says in a statement accompanying its results for last year. — AFP

February 10, 2021

Toyota says that net profit soared 50% in the third quarter and upgraded its full-year forecast again as the global auto industry recovers from the pandemic.

Net profit came to 838.7 billion yen ($8.0 billion) in the three months to December, compared with 559.3 billion yen a year earlier, the world's top carmaker says, revising up full-year forecasts for the second straight quarter. — AFP

February 6, 2021

Electronics giant Samsung is considering the US state of Texas as a possible location for a new $17 billion chip-making plant, according to filings with state officials.

The project would involve building a huge new semiconductor factory on a 640-acre site in the city of Austin already owned by Samsung, and result in the creation of at least 1,800 high-paying jobs, documents available on Friday indicated.

A Samsung subsidiary cautioned in the filings that the project is "highly competitive" and that the company is also considering sites in Arizona, New York, and in South Korea, where its parent company is based. — AFP

February 5, 2021

Ford announces a dramatic acceleration of its investment push into electric autos and signaled deepening collaborations with technology giants on the increased digitization of driving.

The US auto giant, released fourth-quarter and annual results, and said it plans $22 billion in electric car investment through 2025, nearly twice the earlier plan.

The announcement is the latest big bet on electric autos by a legacy automaker in the wake of upstart Tesla's growth and in anticipation of Biden administration initiatives to encourage emission-free vehicles. — AFP

February 4, 2021

Finnish telecoms equipment and key 5G player Nokia announces a fall in net income for 2020 despite a strong fourth quarter and warned of "meaningful headwinds" in the coming year. 

"We saw healthy gross margin and operating margin performance for both (the fourth quarter) and full year 2020," thanks to a renewed focus on North America and ongoing research and development efforts, chief executive Pekka Lundmark says in a statement.

Full-year operating income rose 5.5% to 2.1 billion euros, with the gross margin increasing 2.5 points to 39%, as the firm seeks to meet tough competition in the 5G market. — AFP

February 4, 2021

Consumer goods group Unilever announces a dip in annual net profit to 5.6 billion euros ($6.7 billion) in what it said was a volatile year.

"In a volatile and unpredictable year, we have demonstrated Unilever's resilience and agility through the COVID-19 pandemic," chief executive Alan Jope says as Unilever's 2020 net profit slipped 0.8% from 2019. — AFP

February 1, 2021

Adult joblessness in the Philippines drops to 27.3% of the labor force, according the latest Social Weather Stations survey.

The poll firm says this is 12 points lower than the 39.5% in September 2020.

"The November 2020 Survey found the adult Labor Force Participation Rate at 66.7%, or an estimated 46.3 million adults. It was 86.5%, or an estimated 60.1 million adults, in September 2020," SWS says.

 

January 28, 2021

Samsung Electronics, the world's biggest smartphone and memory chip maker reports fourth-quarter net profits up by more than a quarter year-on-year, with coronavirus-driven working from home boosting demand for devices powered by its chips.

But the figures were below market expectations according to Bloomberg News, and the company warned of persisting uncertainties over the pandemic, and lower profits in Q1 2021 due to falling prices.

Samsung Electronics is the flagship subsidiary of the giant Samsung group, by far the largest of the family-controlled empires known as chaebols that dominate business in South Korea, the world's 12th-largest economy. — AFP

January 27, 2021

Microsoft says profit rose sharply in the recently ended quarter as the coronavirus pandemic reinforced the shift to relying on services hosted in the cloud for work, play and socializing.

The US technology stalwart reported net income of $15.5 billion in the final three months of last year, a 33% jump from the same period in pre-pandemic 2019.

Overall revenue rose 17% from a year ago to $43.1 billion, Microsoft says in its update for its fiscal second quarter. — AFP

January 18, 2021

China's economy grew at the slowest pace in more than four decades last year despite a rebound after the country's coronavirus outbreak, official data showed Monday.

The 2.3 percent expansion is the lowest figure since the Chinese economy embarked on major reforms in the 1970s.

The National Bureau of Statistics (NBS) said last year was a "grave and complex environment both at home and abroad" with the pandemic having a "huge impact".

The figure was a marked slowdown from 2019 growth of 6.1 percent — itself already the lowest in decades — with the country hit by weak domestic demand and trade tensions.

But it is better than that forecast by an AFP poll of analysts from 13 financial institutions, who predicted a 2.0 percent expansion. — AFP

January 8, 2021

Shares in South Korean automaker Hyundai soar on the back of reports it was in talks with Apple for a joint project to manufacture self-driving electric vehicles.

Hyundai Motor shares rocketed 19.4% in Seoul, with its affiliate Kia also jumping 8.4 percent at the close. — AFP

December 17, 2020

New Zealand roared back from a coronavirus-induced recession with record economic growth of 14.0 percent in the July-September quarter, official data showed Thursday.

The strong figures followed an 11.0-percent decline in the previous quarter — when New Zealand was in a COVID-19 lockdown.

Finance Minister Grant Robertson said the recovery was a pay-off for New Zealand's success in containing the virus, with only 25 deaths among a population of five million.

"The economic bounce back is a result of our decision to go hard and early during the COVID-19 pandemic," he said. 

"We supported more than 1.8 million workers through the Wage Subsidy Scheme and invested billions of dollars into infrastructure, training and creating jobs." — AFP

December 14, 2020

Confidence among major Japanese manufacturers has recovered further after plunging on pandemic woes to its worst level since the global financial crisis, a key survey showed Monday.

The Bank of Japan's December Tankan business survey — a quarterly poll of about 10,000 companies — showed a reading of minus 10 among big manufacturers, after recording minus 27 in the previous survey and minus 34 in the June survey.

The latest figure compared with a market consensus estimate of minus 15.

The June figure was the lowest since June 2009 when worldwide financial shocks hammered the planet's third-largest economy. — AFP

November 30, 2020

Asian markets fell Monday as hopes that vaccines will soon be rolled out were overshadowed by concerns over a pick-up in virus cases around the world.

Oil prices were also under pressure ahead of a two-day meeting of major producers, with traders worried that they had still not agreed on an extension of the output cuts that have provided crucial support for most of the year.

World markets have surged this month thanks to breakthroughs on vaccines, while investors have also been cheered by Joe Biden's US presidential election win and signs that incumbent Donald Trump will allow a smooth transfer, despite claiming voter fraud.

With at least three vaccines in the pipeline and approval in some countries said to be just weeks away, there is a general feeling of optimism on trading floors as dealers forecast an economic rebound next year. — AFP

November 27, 2020

British electric appliance pioneer Dyson, famed for its bagless vacuum cleaners, announces that it will invest $3.7 billion to double its product range by 2025.

Dyson says in a statement that it will plough the cash into operations in Britain, the Philippines and Singapore under ambitious plans to also start producing goods designed for outside the home.

The news comes after Dyson abandoned plans last year to produce electric cars after concluding that the project was commercially unviable. — AFP

November 26, 2020

Most stocks rose in the US rose Thursday — continuing this month's vaccine-fuelled markets rally — but traders moved cautiously, with an eye on virus infections across the globe that are forcing governments to impose containment measures.

With at least three inoculations in the pipeline and possibly rolled out within weeks, the general mood on trading floors is upbeat for 2021, but a fresh batch of data out of the US underlined the immediate impact of the disease and the long road ahead for economies.

And notes from the Federal Reserve's latest policy meeting warned that the country's recovery would be tougher without a new stimulus package.

Official figures showed applications for jobless aid rose for a second straight week as businesses were hit by a sharp increase in new infections and deaths that have led several major cities including New York and Los Angeles to close bars and restaurants.

The readings gave traders a dose of reality following weeks of fervent buying in reaction to vaccine successes and Joe Biden's election victory. — AFP

November 24, 2020

Airline revenue this year will plunge 60% as a result of the coronavirus pandemic which threatens the survival of the industry, the International Air Transport Association (IATA) says.

"The COVID-19 crisis threatens the survival of the air transport industry," with 2020 likely to go down in history as its "worst" year ever, IATA says.

It says that while airlines have been slashing costs by $1 billion a day, grounding fleets and cutting jobs, they are still racking up huge and "unprecedented" losses. — AFP

November 19, 2020

The global economy faces a hard road back from the COVID-19 downturn, and nations should remove trade barriers on medical technologies to aid the recovery, the IMF chief says on Thursday.

"While a medical solution to the crisis is now in sight, the economic path ahead remains difficult and prone to setbacks," IMF Managing Director Kristalina Georgieva says in a blog post ahead of this week's G20 leaders summit held virtually. — AFP

November 17, 2020

Asian airlines rallied Tuesday as hopes the world could begin to return to normal were boosted by news that another vaccine candidate appeared to be effective against the coronavirus.

However, broader markets struggled to build on Wall Street's rally, with investors moving out of tech firms and others that have benefited during the pandemic.

Surging infections across the US and Europe and concerns that Washington lawmakers are unlikely to pass any big stimulus package before the end of the year were also causing nervousness on trading floors.

The mood among dealers has been upbeat this month after Joe Biden's US election win paved the way for a little more certainty on the world stage and pharma giants Pfizer and BioNTech announced their virus vaccine had been 90 percent effective.

The news fanned hopes the global economy could soon begin to get back on track. — AFP

November 6, 2020

Toyota announces it has almost doubled its full-year forecasts, saying sales and production were recovering quickly from the coronavirus pandemic, which has shredded the global auto market this year.

Japan's top car maker now projects net profit of 1.42 trillion yen ($137 billion) for the fiscal year to March 2021, up from an earlier estimate of 730 billion yen.

It says full-year sales are now expected to hit 26 trillion yen, against a previous estimate of 24 trillion yen. — AFP

November 5, 2020

Chinese e-commerce leader Alibaba reports solid 30% year-on-year revenue growth for the July-September quarter, providing some much-needed good news amid turmoil over its Ant Group affiliate's abandoned IPO.

Hangzhou-based Alibaba said revenue -- a key measure of the internet giant's business health as well as overall Chinese consumer spending -- rose to 155 billion yuan ($23 billion).

The announcement comes ahead of China's November 11 "Single's Day" shopping festival next week, which was popularized by Alibaba and is now the world's biggest annual shopping event. — AFP

November 5, 2020

Japanese gaming giant Nintendo says its first-half net profit soared 243.6 % on-year as it upgraded its full-year sales and profit forecasts, with coronavirus lockdowns driving extraordinary demand.

The gaming industry has been one of the few sectors to thrive during the pandemic, with people forced to stay at home often turning to games for some escapism and to pass time.

That has translated into soaring sales and demand, with Nintendo saying its bottom line profit jumped to 213.1 billion yen ($2.0 billion) for the six months to September. — AFP

October 31, 2020

According to official data published Saturday, factory activity in China dipped slightly in October but remained in growth territory as the world's second-largest economy continued its recovery after being hammered by the coronavirus.

The closely watched Purchasing Managers' Index (PMI) is a key gauge of manufacturing activity in China, which has largely bounced back after plunging in February because of tough pandemic-control measures.

In October, the PMI figure stood at 51.4, slightly below the reading of 51.5 for September. Any figure above the 50-point mark represents growth while below it signals a contraction. — AFP

October 29, 2020

Samsung Electronics reports that its net profit jumped by almost half in the third quarter, as its mobile and chip businesses were boosted by US sanctions against its Chinese rival Huawei.

The world's biggest memory chip maker says profits in the July-to-September period were up 48.8% year-on-year to 9.36 trillion won ($8.3 billion), beating expectations according to Bloomberg News.

The firm is the flagship subsidiary of the giant Samsung Group, by far the biggest of the family-controlled conglomerates that dominate business in the world's 12th largest economy, and it is crucial to South Korea's economic health. — AFP

October 28, 2020

Japan's Sony reports net profit doubled in the April-September period and revised up its full-year net profit forecast, citing growth in key sectors -- including gaming -- and financial factors.

The results beat analyst expectations, and came as the tech giant gearing up to launch its much-anticipated PlayStation 5 console next month, setting up a holiday season head-to-head with the new Xbox.

The gaming sector has been one of the few beneficiaries of the coronavirus pandemic, with people around the world forced indoors by lockdowns increasingly turning to gaming, with title downloads and streaming soaring. — AFP

October 28, 2020

As the COVID-19 pandemic swept the United States, Keith managed to keep his job in financial services, but his income dried up as commissions grew scarce. 

Suddenly struggling financially, Keith began relying on meals handed out by a charity in Bethesda, a suburb of Washington known for the wealth of which the 52-year-old now finds himself bereft.

"We try to save what we can," Keith, well-dressed in a red-striped polo shirt, told AFP on condition of anonymity. "I don't want to take more resources than I need. If I don't have to come every week I won't."

Eight million more people have been driven into poverty as the United States struggles with the world's biggest coronavirus outbreak — triggering tens of millions of layoffs and a sharp contraction in growth. — AFP

October 27, 2020

HSBC says its third-quarter post-tax profits plunged 46% on-year as the Asia-focused banking giant continued to take a hammering from the coronavirus pandemic and spiralling China-US tensions.

The global economic slowdown caused by the virus has hit financial giants hard and there is little optimism on the horizon as Europe and the United States head into the winter with infections soaring once more. 

But HSBC has a further headache -- geopolitical tensions via its status as a major business conduit between China and the West.  — AFP

October 16, 2020

Global stock markets plunge, with investor sentiment hammered by fears that tighter coronavirus restrictions could derail the tentative economic recovery.

In London, equities closed 1.7% lower after the British government announced that the capital faces more stringent coronavirus restrictions as case numbers rise. 

Paris suffered a drop of more than 2.0% after the French government announced a curfew for the capital and eight other cities -- covering almost a third of the country's population -- for as long as six weeks. — AFP

October 14, 2020

Singapore's coronavirus-hit economy shrank at a slower pace in the third quarter as restrictions were eased, official data shows Wednesday, but the trade-reliant city-state still faces a long road to recovery.

The financial hub plunged into its first recession since the 2008 global financial crisis in the second quarter when the government closed businesses as part of drastic measures to contain infections.

One of the world's most open economies, Singapore is seen as a bellwether for the health of global trade, and its economy's dramatic deterioration rang alarm bells.

"The worst is over for Singapore, but the path to recovery is still a bit bumpy," Song Seng Wun, a regional economist with CIMB Private Banking, told AFP. — AFP

October 9, 2020

Canadian coffee shop chain Tim Hortons vows to create 2,000 UK jobs by 2022, tapping into strong drive-through demand as a result of the coronavirus pandemic.

The upbeat news comes amid challenging times for Britain's under-pressure hospitality sector, which is reeling from the government's tightening of coronavirus restrictions last month. — AFP

October 9, 2020

The Nagkaisa Labor Coalition says it rejects a proposal by the Department of Labor and Employment to extend the six-month floating status of employment and the deferment of the mandated 13th month pay.

"The labor standards law cannot be amended or repealed by executive fiat. The spring cannot be above the source," the labor coalition says.

"Under the law, suspension of employment cannot exceed six months. The DOLE's proposal allowing an extension of the period when employment is suspended for six more months does not have any support in law," it also says.

"Nagkaisa is gravely  concerned with the various extra-legal measures that have recently been proposed in the guise of coping with the current pandemic including the extension of employment floating status and the deferment of the payment of 13th month pay and other benefits," it adds.

According to its website, the coalition counts the following groups and formations as members:

  • Alliance of Free Workers (AFW)
  • All Filipino Workers Confederation (AFWC)
  • Automobile Industry Workers Alliance (AIWA)
  • Alab Katipunan
  • Association of Genuine Labor Organizations (AGLO)
  • Associated Labor Unions (ALU)
  • Associated Labor Unions- Association of Professional Supervisory Officers Technical Employees Union (ALU-APSOTEU)
  • ALU-Metal
  • Associated Labor Unions-Philippine Seafarers'Union (ALU-PSU)
  • ALU-Textile
  • ALU-Transport
  • Associated Labor Unions-Visayas Mindanao Confederation of Trade Unions (ALU-VIMCOMTU)
  • Alliance of Progressive Labor (APL)
  • Association of Trade Unions (ATU)
  • Bukluran ng Manggagawang Pilipino (BMP)
  • Confederation of Independent Unions (CIU)
  • Confederation of Labor and Allied Social Services (CLASS)
  • Construction Workers Solidarity (CWS), Federation of Coca-Cola Unions (FCCU)
  • Federation of Free Workers (FFW)
  • Kapisanan ng Maralitang Obrero (KAMAO)
  • Katipunan
  • Pambansang Kilusan ng Paggawa (KILUSAN)
  • Kapisanan ng mga Kawani sa Koreo sa Pilipinas (KKKP)
  • Labor education and Research Network (LEARN)
  • League of Independent Bank Organizations (LIBO)
  • Manggagawa para sa Kalayaan ng Bayan (MAKABAYAN)
  • MARINO
  • National Association of Broadcast Unions (NABU)
  • National Federation of Labor Unions (NAFLU)
  • National Mines and Allied Workers Union (NAMAWU)
  • National Association of Trade Unions (NATU)
  • National Confederation of Labor (NCL)
  • National Confederation of Transport Union (NCTU)
  • National Union of Portworkers in the Philippines (NUPP)
  • National Union of Workers in Hotel, Restaurant and Allied Industries (NUWHRAIN)
  • Philippine Airlines Employees Association (PALEA)
  • Pepsi Cola Employees Union of the Philippines (PEUP)
  • Philippine Government Employees Association (PGEA)
  • Pinag-isang Tinig at Lakas ng Anakpawis (PIGLAS)
  • Philippine Integrated Industries Labor Union (PILLU)
  • Philippine Independent Public Sector Employees Association (PIPSEA)
  • Partido Manggagawa (PM)
  • Philippine Metalworkers Alliance (PMA)
  • Public Services Labor Independent Confederation (PSLINK)
  • Philippine Transport and General Workers Organization (PTGWO)
  • SALIGAN
  • Trade Union Congress of the Philippines (TUCP)
  • Workers Solidarity Network (WSN)
October 8, 2020

Samsung Electronics flags a leap of nearly 60% in third-quarter operating profits, as its mobile and chip business were boosted by US sanctions against its Chinese rival Huawei.

The South Korean tech giant says in an earnings estimate that it expected operating profit to reach 12.3 trillion won ($10.6 billion) for July to September, up from 7.8 trillion won in the same period last year.

The prediction would represent the firm's biggest operating profit of any quarter for two years and was also ahead of analyst forecasts.

October 2, 2020

Amazon says that slightly more than 19,800 of its employees have tested positive for COVID-19 since the start of March.

Data on the e-commerce giant's 1.37 million frontline workers, including those at its Whole Foods Market grocery stores in the United States, showed a lower infection rate than expected, Amazon says.

The release of the figure comes as some workers in logistics centers have criticized the company's safeguards to protect them from the pandemic as well as its reluctance to share information about colleagues who get infected. — AFP

October 1, 2020

British aerospace giant Rolls-Royce, facing plunging demand as the coronavirus pandemic sparks an air transport crisis, launches plans to shore up its finances by up to £5.0 billion ($6.4 billion, 5.5 billion euros).

The company, whose products power Airbus and Boeing aircraft, is strengthening its balance sheet to help navigate the damaging fallout from the ongoing global health emergency that has grounded jets worldwide.

Rolls-Royce says in a statement that the package would comprise a £2.0-billion rights issue of shares, a bond offering of at least £1.0 billion, a new £1.0-billion loan facility, plus state support from UK Export Finance for an extension of an existing loan guarantee of up to £1.0 billion. — AFP

September 28, 2020

As the president is set to announce new quarantine classifications for Metro Manila on Monday, the Trade department says it supports the downgrading to a modified general community quarantine for the capital region.

Trade Secretary Ramon Lopez says that a further opening up of the economy will be favorable without easing health standards.

"Kahit na GCQ, but open some more the economy. That is a good alternative. Kahit di Modified GCQ, kahit GCQ parin basta remaining sector... allow more workers makabalik sa trabaho," Lopez says in a CNN Philippines report.

September 27, 2020

Many retailers have been caught off-guard by coronavirus restrictions and shifting consumer habits, but DIY stores are enjoying a boom as people spend money on their homes and gardens.

A recent report by consulting group McKinsey found that faced with a prolonged period of financial uncertainty due to the pandemic, consumers "intend to continue shifting their spending largely to essentials... and cutting back on most discretionary categories".

Data has shown consumers worldwide are cutting back on clothing and shoes, but spending more to improve their homes. — AFP

September 24, 2020

Major automakers Tesla, Volvo, Ford and Mercedes-Benz have sued the US government over tariffs on Chinese goods, demanding customs duties paid on imports be returned, with interest.

The lawsuits, which were filed in recent days in the New York-based Court of International Trade, concern tariffs imposed by the Office of the US Trade Representative (USTR) on imports from China, which Tesla in its filing called "arbitrary, capricious, and an abuse of discretion." — AFP

September 22, 2020

Tesla chief Elon Musk has promised "insane" battery news at a streamed event after the company's annual shareholders' meeting on Tuesday.

Speculation includes that Tesla will announce it has come up with ways to pack more energy into battery cells, slash production cost and dramatically extend battery life.

Musk, however, seemed to tap the brakes a bit on expectations in a tweet Monday, saying announcements will affect long-term production, particularly of Tesla's Semi, Cybertruck and Roadster models. — AFP

September 21, 2020

Europe's top equity markets tumbled by 3.0% Monday, as investors fretted over mounting fears of a second wave of coronavirus and a lack of fresh central bank stimulus, dealers said.

The banking sector was also rocked by the findings of an international journalism investigation that claimed massive sums of allegedly dirty money have flowed for years through some of the world's largest banking institutions.

In late morning deals, London stocks dived by 3.0% after Health Minister Matt Hancock warned Britain's coronavirus crisis was at a "tipping point", fueling expectations of more restrictions aimed at curbing COVID-19.

In midday eurozone trade, Frankfurt and Paris had each shed 3.0%, Milan dropped by 3.3%, and Madrid sank by 3.5% after a partial virus lockdown began in the Spanish capital's densely-populated south.

The European single currency was pushed under $1.18 as dealers sought the traditional safety of the dollar, while oil prices shed almost 2.0% on weak energy demand concerns. — AFP

September 17, 2020

New Zealand's economy plunges into recession for the first time in a decade, posting a record contraction in the June quarter due to the coronavirus pandemic, as Prime Minister Jacinda Ardern heads into next month's general election.

"The 12.2-percent fall in quarterly GDP is by far the largest on record in New Zealand," the national statistics agency says.

The reporting period covers April to June, coinciding with a strict lockdown that began in late March and began easing in late May. — AFP

September 15, 2020

Data show Chinese retail sales rose in August for the first time since the coronavirus pandemic struck as officials try to kickstart the crucial domestic consumer sector to fuel recovery in the world's number-two economy.

Spending had previously remained sluggish despite China bringing the virus largely under control, with shoppers still cautious owing to global uncertainty -- but economists believe the latest data suggests recovery is on a firmer footing.

The key indicator of consumer sentiment rose 0.5 percent on-year last month. A poll of analysts by Bloomberg News had forecast no growth. — AFP

September 11, 2020

Official data show that the British economy continues to recover in July, expanding by 6.6 percent, a slower pace of growth than in June when the country emerged from its virus lockdown.

Gross domestic product had surged by 8.7 percent in June and by 2.4 percent in May, following a record contraction of 20 percent in April, the Office for National Statistics says in a statement.

"While it has continued steadily on the path towards recovery, the UK economy still has to make up nearly half of the GDP lost since the start of the pandemic," says ONS director of economic statistics, Darren Morgan. — AFP

September 8, 2020

Google says it is dropping talks to rent office space for up to 2,000 staff in Dublin, after most of the US tech giant's employees were told to work from home until 2021 amid the global pandemic.

A spokeswoman says that "after much deliberation" Google "has decided not to proceed with leasing" the Sorting Office -- a seven-floor development in the "Silicon Docks" of the Irish capital.

Irish media reported the 202,000-square-foot (18,700-square-metre) office would have housed up to 2,000 employees in the Republic -- where the internet search leader maintains its European headquarters and a stable of 8,000 staff. — AFP

September 3, 2020

Amazon will create 7,000 permanent jobs in the UK by the end of the year, the American e-commerce giant announces in a boost for Britain's virus-hit economy.

"The company will add a further 7,000 new permanent roles by the end of 2020 across more than 50 sites, including corporate offices and two new fulfilment centres," Amazon says in a statement, adding that its total permanent UK workforce will number more than 40,000.

While a number of British retailers have axed thousands of jobs following the country's lockdown, others are creating vast amounts of new positions to cope with a surge in online shopping. — AFP

September 2, 2020

Australia has fallen into recession for the first time in three decades and Brazil's economy shrank by almost 10 percent because of the coronavirus, leaving China as the only major nation still recording economic growth during the pandemic.

A raft of bleak data from India to Europe in recent days has laid bare the toll from lockdowns as nations try to keep a lid on an illness that has killed more than 850,000 people and infected over 25 million.

The challenges were further highlighted Wednesday when Australia announced a record contraction of seven percent despite authorities providing billions of dollars in support to struggling firms.

"Today's national accounts confirm the devastating impact on the Australian economy from Covid-19," said Treasurer Josh Frydenberg. — AFP

August 31, 2020

China's "big four" banks have suffered a rare profit decline in the first half of the year, joining a growing body of financial institutions worldwide that have been hit by the coronavirus pandemic.

Bad-loan provisions rose as the pandemic hammered Chinese business activity, causing a historic first-quarter contraction and weighing on an economy that was already in long-term growth slowdown.

Bloomberg News said the profit declines — reported over the weekend — were the largest in more than a decade for the banks, which are closely supervised by the Chinese government and for years have typically posted slight but steady increases.

"The pandemic sent the world economy into a serious recession, posing heavier pressure on banks' business operations and asset quality in 2020," Industrial and Commercial Bank of China ICBC said in an earnings report. — AFP

August 26, 2020

Shares in Chinese e-commerce giant Alibaba jump to a new record, a day after the group's financial arm filed paperwork for a joint Shanghai and Hong Kong listing.

The IPO for Ant Group, the financial technology arm of Alibaba, is being billed as one of the world's largest listings, potentially eclipsing the record $29 billion raised by Saudi Aramco last year.

The company filed paperwork on Tuesday evening for a joint listing closer to home as tensions spiral between the United States and China. — AFP

August 24, 2020

US stocks opened the week like they closed last week: on a high note, amid news the US Food and Drug Administration (FDA) had authorized the use of a COVID-19 treatment.

About 30 minutes into the Monday trading session, the benchmark Dow Jones Industrial Average climbed 0.5% to 28,081.45.

The broad-based S&P 500 jumped 0.7% to 3,419.92, and the tech-rich Nasdaq Composite Index increased 0.8% to 11,400.51, remaining buoyant after more than 30 record closes in 2020. — AFP

August 20, 2020

Home-sharing startup Airbnb says it has confidentially filed with US regulators for an initial public offering.

The number of shares and price has yet to be determined, according to the San Francisco-based company.

The move comes as the travel industry suffers an economic blow from the coronavirus pandemic amid slowdowns in tourism. — AFP

August 18, 2020

Marks and Spencer, the British retail chain selling clothing and food, is to cut around 7,000 jobs as the coronavirus pandemic keeps shoppers away from its stores, it announces.

The job cuts, to be carried out over the next three months, include losses from its central support centre, in regional management and in its UK stores, M&S says in statement. – AFP

August 14, 2020

Mobile wallet GCash announces that it has breached P100 billion in terms of transaction volume during the first seven months of 2020. 

It is a 280-percent surge from the same period in 2019. 

“The Philippines is in the midst of a cashless revolution, which is thrust upon us more swiftly by the pandemic. We at GCash continue to innovate and provide relevant financial services that will help Filipinos to do more with less by using their mobile phones,” GCash President Martha Sazon says.

August 12, 2020

Hong Kong carrier Cathay Pacific says it lost HK$9.9 billion (US$1.27 billion) in the first half of this year, making it the latest major airline to reveal how badly the coronavirus pandemic has eviscerated its business.

"The first six months of 2020 were the most challenging that the Cathay Pacific Group has faced in its more than 70-year history," chairman Patrick Healy says in a stark statement announcing the results.

"The global health crisis has decimated the travel industry and the future remains highly uncertain, with most analysts suggesting that it will take years to recover to pre-crisis levels," he adds. — AFP

August 9, 2020

The Department of Energy is urging 'conscious consumption' of electricity as more people are expected to stay home because of the quarantine and because of jobs lost due to the recession.

"I am appealing to our consumers; let us be mindful of our power consumption habits in this pandemic time," the department quotes Energy Secretary Alfonso Cusi as saying.

He says keeping piwer consumption down will also help lower expenses as Filipinos face the prospect or the reality of losing their jobs.

"As the nation battles the economic recession, there is a need to be conscious of our expenditures. Napakahalaga ng pagtitipid para sa ating lahat sa mga panahong ito," he says.

August 7, 2020

Uber reports a $1.8 billion loss in the recently ended quarter as the COVID-19 pandemic caused its shared-ride business revenue to plunge.

Overall revenues skidded 29 percent from a year ago to $2.2 billion, as gains from delivery failed to offset a massive 75 percent drop in its ride-hailing bookings, San Francisco-based Uber said.

Uber shares dropped more than four percent in after-market trades that followed release of the earnings figures. — AFP

August 6, 2020

Toyota warns of a 64% drop in full-year net profit and reported a slump in quarterly earnings, as the coronavirus pandemic shreds the global auto market.

Japan's top car maker, which had previously declined to give a bottom-line forecast because of ongoing uncertainty, now projects net profit at 730 billion yen ($6.9 billion) for the fiscal year to March, down from 2.07 trillion yen the previous year.

Its forecast of annual operating profit remained unchanged at 500 billion yen, down nearly 80% from the previous year. — AFP

August 6, 2020

Nintendo says its quarterly net profit leapt to $1 billion, as the gaming industry enjoys extraordinary demand from players stuck at home because of the coronavirus pandemic.

The Japanese gaming giant says its net profit rose to 106.5 billion yen for the three months to June from 16.6 billion yen a year earlier. — AFP

July 23, 2020

The central bank says South Korea's economy recorded its worst performance in more than 20 years in the second quarter as the coronavirus pandemic hammered its exports.

Asia's fourth-largest economy contracted 2.9 percent year-on-year in the April-June period, the Bank of Korea says.

It was the fastest decline since a 3.8 percent drop in the fourth quarter of 1998, in the aftermath of the Asian financial crisis. — AFP

July 21, 2020

Swedish auto maker Volvo forecasts a strong rebound in the second half of 2020, after the coronavirus hit its results in the first six months of the year.

With sales falling by 14 percent from January through June, Volvo, which is owned by the Chinese car maker Geely, says it was poised to bounce back after gaining market share in China, the United States, and Europe.

The company nonetheless posted a first half net loss of 1.17 billion kroner (114 million euros, $130 million), compared with a net profit of 3.4 billion kroner for the same period a year earlier. — AFP

July 21, 2020

Swiss pharma giant Novartis reports higher profits in the first half of the year despite the coronavirus pandemic causing swings in sales.

During the first six months of the year net profit came in at $4 billion (3.5 billion euros), a 9 percent increase when currency fluctuations are stripped out.

Sales rose by 6 percent from the same period last year to $23.6 billion. — AFP

July 17, 2020

Hong Kong carrier Cathay Pacific issues a profit warning, estimating it will suffer a historic loss of HK$9.9 billion (US$1.3 billion) in the first half of 2020 as it reels from the coronavirus pandemic.

"The Group will record a net loss attributable to shareholders of approximately HK$9.9 billion, which compares to a net profit to shareholders of HK$1.3 billion for the same period in 2019," the airline says in a statement.

Like airlines worldwide, Cathay has been battered by the evaporation of global travel during the pandemic. — AFP

Companies are facing massive challenges as they continue to navigate the impacts of the COVID-19 pandemic. Follow this page for regular updates. Main image by The STAR/Miguel de Guzman

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