Coruna hits Adidas earnings hard

Revenue development mirrored the stages of the disease outbreak globally, with sales falling 58% in China, where the outbreak began, and deflation elsewhere followed.

The company added that it incurred costs in millions on product recoveries to manage inventory. She said that her revenue began to recover in China during the first three weeks of April after the quarter ended, as global e-commerce revenue showed another major acceleration.

E-commerce increased with the spread of closures to contain the emerging corona virus in March, increased by 55% in March, and continued to rise.

However, the closure of stores in Europe, North America, Latin America, emerging markets, Asia Pacific and Russia and the former Soviet Union means that revenue development has been “severely affected”.

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Net profit from continuing operations decreased by 97 percent to only 20 million euros, compared to 631 million euros in the same period last year.

The company, which is based in the German town of Herzogen Aurach, said on Monday that first-quarter revenue fell by 19 percent.

“Our first-quarter results reflect the serious challenges posed by the outbreak of the Coronavirus, even for health companies,” said Casper Roarsted, CEO of Adidas.

Revenue development mirrored the stages of the disease outbreak globally, with sales falling 58% in China, where the outbreak began, and deflation elsewhere followed.

The company added that it incurred costs in millions on product recoveries to manage inventory. She said that her revenue began to recover in China during the first three weeks of April after the quarter ended, as global e-commerce revenue showed another major acceleration.

E-commerce increased with the spread of closures to contain the emerging corona virus in March, increased by 55% in March, and continued to rise.

However, the closure of stores in Europe, North America, Latin America, emerging markets, Asia Pacific and Russia and the former Soviet Union means that revenue development has been “severely affected”.

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How large corporations act in the corona crisis

DThere are currently no big deals. Mergers, acquisitions, IPOs – everything the investment banker likes to boast about has initially put the Corona crisis on hold. And yet Patrick Frowein is anything but bored. “I haven’t worked as much and intensively in a long time as I do now,” says Frowein, Deutsche Bank’s top investment banker in German-speaking countries, in an interview with F.A.Z. “And that also applies to my entire team.” After all, every company is currently concerned with how to get through the crisis safely and with sufficient liquidity, and some of them are getting ready for the time afterwards.

Tim Kanning

TUI and Adidas show that even large corporations are stumbling, both of which had to access rescue loans from the state development bank KfW. In both cases, Deutsche Bank was not only a financing partner, but also an advisor, as Frowein points out. However, he does not want to comment on why a corporation like Adidas, which has enjoyed success for years, has to resort to government aid so quickly.

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Startups are fighting for a Corona bailout

Hamburg, Berlin The announcement on April 1, of all things, sparked euphoria among start-up lobbyists in Berlin: finance minister Olaf Scholz (SPD) announced a two-billion-euro protective shield especially for emerging tech companies. The efforts to convince the German Startups Association, which was newly formed a few months ago, had obviously borne fruit.

But now the founding lobbyists are worried about the implementation. The association now wants to put pressure on the media again.

“We have just received confirmation that the two billion euros will not be released in the Ministry of Finance. We have therefore already decided to escalate today, to send a letter to Scholz and at the same time to start a small media campaign to increase the pressure, ”says an internal WhatsApp message with which lobbyists will get signatures on Thursday wanted to. The news is available to the Handelsblatt.

Since the beginning of the corona crisis, the start-up association around its boss Christian Miele from venture capitalist Eventures has repeatedly publicly promoted a wide range of help for the industry – including in an online press conference together with the digital representative of the federal government, Thomas Jarzombek (CDU). Now the open letter should increase the pressure.

In the letter to Scholz, the association firstly wants to praise the finance minister for “recognizing the specific needs of startups”. Now the rapid use of the “promised customized instruments is required”.

The letter ends in the appeal: “Keep your word, Minister Scholz! Release the two billion euros! ”Upon request, the association confirmed the existence of the letter, which now has 500 signatories and is expected to be published at the weekend.

“While the other auxiliary instruments have already been focused, there is still no timetable for the start-up measures,” said Christoph Stresing, managing director of the Federal Association of German Startups (BVDS). “Speed ​​is now the order of the day.”

Industry should also take risks

There are obviously good reasons for the hesitant implementation. The federal government is looking for a way to deal with the special situation of the industry. After all, the early-stage investors, who are particularly strong in the German scene, calculate their investments with failure rates of around 80 percent even in normal times. That is why the Federal Ministry of Finance wants to prevent those founders whose business idea is not viable anyway from being supported.

“The topic is complex, because we are talking about support for start-ups about equity financing, which is more likely to default than normal loan financing,” said State Secretary Jörg Kukies on Friday.

So far, the industry has preferred so-called matching. The state should increase funding rounds from venture capitalists. This is how the industry should take risks.

“We want to protect start-ups, not venture capitalists. Therefore, a promotional measure makes sense in which the venture capitalists refill their own money, which is then replenished by the state, ”said the founder of the venture capitalist Lakestar, Klaus Hommels, this week’s Handelsblatt.

However, critics doubt the selfless intentions of venture capitalists. “Why should venture capitalists be the gatekeepers for state aid?” Asks Sven Schmidt, co-founder of Hamburg investor ICS and critic of the industry. Start-ups that are financed without venture capital threaten to be excluded. In addition, the large venture capitalists in particular had earned very well in the past boom years and should not immediately ask for state aid, Schmidt criticizes.

However, the federal government expects the billion dollar umbrella to start soon. “I am confident that we can get the aid on the way quickly. We are in close and constructive exchange with the representatives of the industry to develop a viable concept, “said State Secretary Kukies.

More: Start-up investor Klaus Hommels criticizes state aid for Tui and Adidas

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False incentives, fraud, debt: the side effects of the corona crisis

The Chancellor is in top form in times of corona crisis. Angela Merkel explains complicated population doubling rates and reproductive numbers. But she also knows everyday things. “They have to be washed or ironed regularly, put in the oven or in the microwave,” Merkel explains how to care for respiratory masks. “Even if that sounds a bit housewife, so to speak.”

The omniscient state – embodied in the chancellor. The subjects are explained life down to the smallest detail. With this self-image, Merkel takes “measures that have never existed in our country before”. Fundamental rights are restricted, the economy is pushed to the brink and then supported with unprecedented aid.

One of Merkel’s closest confidants, Peter Altmaier, is more than enthusiastic. “An uncle who brings something is better than an aunt who plays the piano”, the Federal Minister of Economics remembers of his childhood.

And what is brought along! If you add up everything the federal government now wants to offer to combat the corona crisis, you get a gigantic sum of at least 1.2 trillion euros. No other country in the world has raised so much money in relation to its economic strength.

Germany has a full 35 percent, far more than the EU average or the USA. Federal finance minister Olaf Scholz did not understate what he promised a few weeks ago: “It is not spilled, but padding.”

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The increase in importance and power is unique. Never in the history of the Federal Republic has a government intervened so quickly and deeply in public life and thus in the economy. After the financial crisis, German government debt rose by 315 billion euros in one year. The value of the federal, state and local governments will be far exceeded in this crisis. “I am worried whether we will be able to return to normal economic policy,” says Lars Feld, Germany’s top economy.

The measures to protect health are understandable. But the question increasingly arises: what side effects do the multi-billion dollar rescue programs have? The free market is disturbed, competition is distorted, prices lose their signal strength.

“As much market as possible, as much state as necessary”, the famous words of former Federal Minister of Economics Karl Schiller lose their meaning every day.

There is a risk of higher prices, inefficient companies and loss of wealth. It is significant that more and more companies are turning to the Bundeskartellamt during the corona crisis in order to be exempted from cooperating with competitors. The new spirit of state economy speaks.

Spend as much as you can. The year 2020 will be disastrous. Kristalina Georgiewa (IMF chief)

Certainly, help for companies with no fault of their own must be provided. But with the flood of support funds, the risk of misallocation is high. Capital and labor are tied up in companies with below-average productivity, less investment and innovative strength.

A few weeks ago, after a parliamentary request from the FDP for possible support from zombie companies, the Federal Ministry of Finance had to admit that “necessary market processes of creative destruction are hindered”.

The concern is justified that the state is eating itself too deeply into the economy, throwing privacy and data protection partially overboard and that the influence on the market will not be reversed after the end of the crisis.

A look at history suggests little good. The federal government is still 25 years after the IPO Deutsche Telekom still the largest single shareholder.

Fundamentally, there is a problem that is known in the economy as moral hazard: companies and citizens behave irresponsibly or carelessly due to existing false incentives. The news of fraudsters sneaking up subsidies is increasing.

“The state is a lousy entrepreneur”

The appearances of Altmaier and Scholz are characterized by superlatives. At the federal press conference, they will be presenting the rescue packages worth billions to the public with great regularity. “This is the most comprehensive and effective guarantee that there has ever been in a crisis,” said Altmaier in mid-March. “This is the bazooka, we’ll look for small arms later,” the Federal Minister of Finance said at the appearance.

The small arms that have now been added are quite large-caliber. Scholz announced a debt-financed supplementary budget of 156 billion euros. This includes an emergency fund with a volume of 50 billion euros, which is aimed at the self-employed and small businesses with up to ten employees.

The federal guarantee for the state bank KfW is increased by up to 450 billion euros. And then there is an Economic Stabilization Fund (WSF) with a volume of 600 billion euros. The majority is earmarked for government guarantees to keep companies liquid.

100 billion euros are reserved for possible investments, i.e. partial nationalization of companies. The battered Lufthansa is already holding talks about state participation.

You can still hear Altmaier’s words: “The state is a lousy entrepreneur.” The Federal Minister of Economics at least dedicated the most beautiful hall in the ministry to Ludwig Erhard. But he is currently just as far away from Erhard’s mantra as the Germans are from summer leaves in Mallorca.

Minister of Economics Peter Altmaier (standing) and Minister of Finance Olaf Scholz (front)

The father of the “German economic miracle” throbbed to measure, he remembered sentences, the state should not be a player, but an arbitrator in the economy. Now the state is preparing to take over the entire football club.

No other industrial country is helping its economy with such large sums as the Federal Republic. This shows a new evaluation by the International Monetary Fund (IMF). He does not criticize Germany, on the contrary. “Spend as much as you can,” advises IMF chief Kristalina Georgiewa. The economic situation is too depressing.

The Council of Experts is now assuming that the economy will decline by more than 5.5 percent this year. This is the case that was previously treated as a worst-case scenario. The economic downturn would be worse than in the global financial crisis. 725,000 companies have registered financial difficulties and short-time work.

Including: hospitals. Health Minister Jens Spahn ordered them at the beginning of March to postpone all planned operations. For the hospital operator, this means severe revenue losses. More than a third of the intensive care beds are not occupied. With the Hospital Relief Act, the federal government created a regulation to compensate the clinics for the failures. But that’s far from enough.

This is the bazooka, we’ll look at small arms later. Olaf Scholz (Federal Minister of Finance)

Some private organizations have registered short-time work, including the Schön-Klinik group. The head of the German Hospital Society, Gerald Gaß, sees the time for a “careful, gradual resumption of regular care”.

Spahn also said last week that clinics could “gradually return to normal”. “We do not want to keep 40 percent of the intensive care ventilation beds in Germany permanently”, said the minister.

The pressure on the companies is huge, the need for help is great. This year alone, the federal government is raising 156 billion euros in new debt. The federal states are also preparing an extensive flood of money for pumps.

According to a survey by the Handelsblatt newspaper among the 16 state finance ministries, they are currently planning 65 billion euros in new debt to fight the crisis. In addition to the federal government’s huge € 1.2 trillion rescue package, the federal states are also helping their companies and the self-employed. Bavaria alone has launched a fund with 60 billion euros.

The IMF chief not only welcomes the gigantic aid package in Germany, the monetary fund also calls for thorough control. “Keep the bills,” said Georgiewa. Transparency and accountability should not be put off in the face of the crisis. Whether Germany is world champion in this discipline, doubts are increasing.

Risk zombie company

The financial crisis shaped a saying by the former head of central bank in Europe, Mario Draghi: “What ever it takes”. In this crisis, it becomes a “Whatever, take it!” Aid is mostly spent without checking, the money cannot be distributed quickly enough.

According to an overview by the Ministry of Finance and the Ministry of Economics, over 26 billion euros were applied for by KfW Hilfen. Almost 13,000 of the more than 13,200 applications were approved. In other words, almost anyone who wants help gets it, most likely companies that didn’t have a working business model before the pandemic.

This easily creates zombie companies that are only alive because of generous state aid. After all: With the large sums, the KfW steering committee seems to be examining it more closely. So far, around 8.5 billion euros have been approved. So it takes a little longer for the large-volume applications.

In contrast, the self-employed and small businesses with up to ten employees are suspiciously fast. So far, according to the overview of 1.65 million applications, around 1.1 million have been approved and more than nine billion euros paid out. These are not loans, but aid that does not have to be repaid.

“Speed ​​and thoroughness go hand in hand: it is carefully checked who receives the money,” Finance Minister Scholz promised. But is that true? North Rhine-Westphalia and Berlin were even recently forced to suspend immediate payments because large-scale fraudsters wanted to get to the pots.

There are also problems with honest entrepreneurs. In North Rhine-Westphalia, for example, the self-employed and small businesses are always granted the maximum amounts of EUR 9,000 and EUR 15,000 – regardless of need. This practice is not well understood in the Federal Ministry of Economics. Because a flat-rate payment of maximum amounts was actually not intended.

The aid should amount to up to 9,000 euros for companies with up to five employees and up to 15,000 euros for up to ten employees. The emphasis here is on the “up to”. According to the Ministry of Economic Affairs, the actual amount should be based on sales and operating expenses for the next three months. An entrepreneur with zero euros turnover and 1000 euros costs would be entitled to 3000 euros in emergency aid.

But these details were lost somewhere in the confusion between the federal states and the federal states. The up to 50 billion euros are provided by the federal government. Although federal money is at stake, it is up to the federal states how much they scrutinize companies. In Hamburg, for example, a liquidity check is required. Other countries are significantly less strict so that aid can flow as quickly as possible.

In Berlin, more than a billion euros were paid out to solo and small entrepreneurs within days. And the Berlin Senate also admits behind the scenes that surely there are also deadweight effects. Since no examination was carried out, almost everyone received 14,000 euros in a combination of federal and state funds. These include the self-employed, who normally have annual sales that are significantly lower, they say.

Some recipients are now voluntarily repaying the aid for fear of sanctions. But whether a subsequent thorough examination is possible to convince fraudsters is skeptical in financial management.

Dangerous false incentives

The economic nonsense, which is operated partly in the name of Corona, is great. Governments in the federal and state governments are increasingly creating the illusion that they can regulate everything with state trillions. And more and more, government intervention and expansion is creating false incentives in all areas of the economy, which can be revenged bitterly.

Take the housing market as an example: the Federal Minister of Justice, a woman from the SPD, wanted to protect the tenants. The result is a half-baked law that gets small landlords into trouble. The law was so badly made that solvent companies like Adidas or Deichmann used the gaps and simply suspended the rent payments. Only after a storm of indignation did Adidas row back.

Take the example of KfW loans: After the institutes hesitated to pass on the subsidized loans from the Staatsbank KfW to companies because they still had to bear ten percent of the default risk, the state assumed full liability. With the danger that house banks will now be able to provide loans to companies that have long been bankrupt.

The banks don’t care, they are released from any liability, but of course they still make good money from their business. The fool is the taxpayer who has to answer for the defaults.

Example of short-time work: Short-time work allowance is a tried and tested crisis instrument. The state replaces up to 67 percent of net wages. However, the SPD was not enough. In the coalition committee on Wednesday, she pushed for an increase to 80 percent.

It is the most comprehensive and effective guarantee that there has ever been in a crisis. Peter Altmaier (Federal Minister of Economics)

However, a general increase would have significant deadweight effects: Many companies are already increasing short-time benefits from their own resources. Apart from that, the short-time work allowance is not meant to secure the standard of living, but rather to ensure the survival of companies and thus avoid unemployment.

In other areas, the federal corona strategy is rather arbitrary. The craft complained that the vehicle registration offices were closed. There is also much discussion about opening shops up to the limit of 800 square meters. This border was communicated at least improperly and caused confusion and indignation among the shopkeepers.

Now a Hamburg administrative court has declared the 800 square meter rule to be illegal. The court could not understand why opening larger sales areas alone should attract more people to the city center. Necessary infection protection measures could be followed at least as well in larger stores as in smaller facilities.

Whimsical and impractical was initially the requirement that repair shops were allowed to remain open, but the sales rooms had to be closed. Many craftsmen wondered if they could lead the customers through the sales room into the workshop. Another detail from this series of undesirable side effects of the rescue policy.

The border closures, for example with the Czech Republic, mean that the bricklayers are missing in the construction industry and the harvest workers in agriculture from Romania. The state decides a lot, but the consequences are borne by the entrepreneurs and their employees.

The argument for the state’s rapid generosity in the crisis is: rather spend more now to prevent the economy from crashing and millions of jobs be lost than have to finance mass unemployment for a long time. This approach is absolutely correct. But it also remains true: somehow the state rescue billions have to be financed at least in the medium term if the next generations are not to be overwhelmed.

Currently this is done through the use of reserves and debts. Germany certainly has scope. The Federal Republic had just pushed the debt level to below 60 percent, thereby meeting the Maastricht criteria for the first time in many years in 2019. But that will be the last time for a long time.

As a result of the corona crisis, the federal government expects a general government deficit of 7.25 percent of gross domestic product (GDP) this year. The debt ratio as a share of all debts in GDP is estimated at 75.25 percent, as can be seen from the German Stability Program 2020.

“The projection is currently subject to very high levels of uncertainty,” says the current report. In other words, the debt level could be even higher. This mainly depends on how high the losses are that the federal government will incur from its guarantees and sureties.

Given the huge commitments, some in the grand coalition are trying to put the brakes on. “I don’t like the fact that we almost always get new suggestions every hour, what else can you do,” said Union leader Ralph Brinkhaus. “All of this must also be paid for.”

In a crisis, the state’s money is loose. Some sense their chance to finally implement long-held plans.

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Current economy: Lufthansa makes billions of dollars – economy

Here you will find the latest business news in chronological order, with the latest news coming first.

Lufthansa makes billion loss in the first quarter because of Corona

Thursday, April 23, 5:38 p.m .: Lufthansa flew in an operating loss (adjusted EBIT) of 1.2 billion euros in the first quarter due to the corona crisis. In the previous year, the minus in the traditionally weak quarter at the beginning of the year was 336 million euros. In March alone, almost 1.4 billion euros in sales were lost, the Dax group announced on Thursday in a mandatory announcement to the stock exchange. In the entire quarter, revenues of EUR 6.4 billion were of a similar magnitude below the previous year’s figure of EUR 7.8 billion. dpa

4.4 million initial jobless claims in the United States

Thursday, April 23, 2:53 p.m .: As a result of the corona pandemic, millions of people in the United States have submitted their first jobless claim for the fifth week in a row. 4.4 million new applications were registered in the week ending April 18, the U.S. Department of Labor announced on Thursday. As a result, more than 26 million people lost their jobs within a month. In the previous week alone, 5.2 million people had submitted an initial application for support.

The initial applications are an indicator of the short-term development of the labor market in the world’s largest economy. They now point to a dramatic economic downturn as a result of the Corona crisis. By March, the number of initial applications had regularly been below 100,000 a week.

According to experts, the US unemployment rate should already be well over ten percent, and some analysts even expect it to be around 15 percent. There is still no exact value because the statistics could not keep up with the speed of job losses. The unemployment rate was still 3.5 percent in February, the lowest level in decades.

The rapid spread of the corona virus has largely brought public life to a standstill in the United States. The vast majority of the approximately 330 million Americans are subject to exit restrictions. Many shops and businesses are closed, restaurants and hotels remain empty, flights are canceled en masse, events are canceled. Many employees of closed companies must therefore apply for unemployment benefits. In addition, layoffs in the United States are generally far easier than in Germany, for example.

US President Donald Trump hopes that easing the protective measures imposed due to the epidemic will improve. He wants the states to gradually return to normal and hopes that the economy will start again “like a rocket”. However, most experts assume that the economy will experience a severe recession this year and that a recovery is not in sight until 2021. This is extremely inconvenient for Trump – who is applying for a second term in November.

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In view of the crisis at the end of March, the government and Congress had launched a huge stimulus package to pump around $ 2.2 trillion into the suffering economy. This week, Congress wanted to add another $ 500 billion. Then a total of more than $ 650 billion should be available for a program that will largely replace small and medium-sized companies in the coming months with wage costs to limit the rise in unemployment. However, the impact of the program on labor market data was not yet foreseeable. New unemployment data in March and preliminary figures for April will not be released until early May. dpa

Thursday, April 23, 7.53 a.m .: Before the EU summit on the consequences of the corona crisis on Thursday, the Stuttgart-based carmaker Porsche is calling for the introduction of so-called corona bonds. “European community bonds are now urgently needed, which would be a clear sign that Europe is in a crisis,” said CFO Lutz Meschke the Süddeutsche Zeitung. “If we don’t show solidarity now, Europe will be lost,” appeals to the deputy CEO of Porsche AG. He would like the German government to rethink: “Germany in particular, as an export nation, benefits from a sustainably economically strong Europe like no other country.” In view of the corona pandemic and its drastic effects on the economy, “now is no time to insist on dogmatic attitudes”.

Meschke appeals to the heads of government to “systematically and responsibly manage the crisis”. The 54-year-old business economist warns of a “deep and lasting recession in Europe”. To prevent this, “the use of very large public funds is essential”. Meschke explicitly calls for the support of Italy and Spain: “These countries were hit hardest by the pandemic and have comparatively little financial leeway.” The European Union must now “together” avoid “that we are at the beginning of the next major sovereign debt crisis.”

The 27 EU countries have been arguing for weeks about so-called corona bonds, i.e. joint bonds with joint liability of all member countries. France, Italy and Spain, which have been badly hit by the pandemic, appeal for intra-European solidarity and call for joint borrowing. The advantage of such bonds would be that highly indebted countries would receive loans at lower interest rates. But countries like Germany, Luxembourg and the Netherlands refuse joint liability.

Lutz Meschke demands a sign of solidarity from the EU summit: “The positive impact would be gigantic if Europe shows itself as a unit – as a strong partner in the global economy alongside Asia and the USA.” According to Meschke, even if the implementation needed some time, the decision to use corona bonds would be “a strong signal and a real motivation boost”. Not only for the citizens, but also for the capital markets. In view of the concerns from countries like Germany, Meschke emphasizes that the corona bonds are “a unique measure to deal with the crisis”. It is not a matter of rescheduling old debts, but “only of jointly financing the economic start-up”. All EU countries would have to be financially able to stabilize their economy, says Meschke. Not every country can do this on its own because some countries would have to bear an excessive interest burden.

The EU Commission has already developed a model that aims to limit joint liability. Commission boss Ursula von der Leyen wants to present the plan on Thursday. On this basis, the heads of state and government could explore further compromise lines and instruct Leyen to continue working on the plan. Because of the Corona crisis, Porsche has also cut production and requested short-time work for a third of the staff. Lutz Meschke believes, however, that Europe and the auto industry can overcome the corona pandemic: “We will emerge stronger from the crisis if we join forces.” Stefan Mayr

Thursday, April 23, 2:17 p.m.: As a result of the pandemic, the car company Daimler has to make a substantial downward revision of its forecasts for the financial year. The company reported preliminary earnings before interest and taxes for the first quarter, which dropped 78 percent to EUR 617 million. The impact of the Corona crisis on customer demand, supply chains and vehicle production could not be estimated as nearly as detailed and as reliably as was possible in previous crises. . This complicates a new forecast for the 2020 financial year. The full quarterly figures are due to be published on April 29.

Wednesday, April 22, 12.49 p.m .: The minimum wages for Geriatric nurses in Germany are to be increased and expanded. This provides for a regulation that was a topic in the federal cabinet. The Federal Ministry of Labor will now issue this regulation at short notice, it said afterwards in a joint communication from the Ministry of Labor and the Federal Ministry of Health. At the end of January, a commission of employers and employees decided that by April 1, 2022, the minimum wage for nursing assistants in four steps from today’s 10.85 euros (east) and 11.35 euros (west) to 12.55 euros in east and West Germany should rise.

From July 1, 2021, there will also be a minimum wage for specialists of 15 euros for the first time. It is expected to increase to EUR 15.40 by April 1, 2022. The regulation is intended to make this decision binding across the industry.

Minister of Labor Hubertus Heil (SPD) and Minister of Health Jens Spahn (CDU) said that the corona epidemic once again shows how important nursing staff are for society. Your responsible task should be rewarded better than before. The regulations on minimum nursing wages are “a good start”.

In the meantime, the planned Corona special premium of € 1,500 for elderly care workers is likely to fail due to unsettled funding. Massive resistance has been formed in the health insurance companies against the previously expected funding from the contribution-financed long-term care insurance, reports the Frankfurter Allgemeine Zeitung.

Wednesday, April 22, 11:37 a.m .: That particularly hard hit by the consequences of the corona crisis Catering trade According to the SPD, state support should be provided in the Bundestag until restaurants and hotels are reopened. “The main thing now is to develop an opening perspective,” said Carsten Schneider, Parliamentary Managing Director of the SPD parliamentary group in Berlin. “Up to this opening date, we should extend the direct grants for the smallest companies that were previously paid for the months of March to May.” These emergency aids are declared as grants for operating costs, they amount to 9,000 to 15,000 euros for three months. “I am in favor of extending the grants because they help directly and for a limited period,” said Schneider. He rejected the lowering of the VAT on the reduced rate as “completely wrong”. gam

Wednesday, April 22, 7:11 a.m .: The corona pandemic and series hits like “Tiger King” have the online video service Netflix helped to its strongest quarter so far. In the three months to the end of March, the number of payment subscriptions skyrocketed by 15.8 million, according to the streaming market leader after the US exchange closed. Netflix thus posted the quarter with its largest number of customers to date and far exceeded both its own forecast and the expectations of Wall Street analysts. But not that of the investors: after the exchange, the Netflix shares only rose temporarily – and then slipped slightly into the red.

At the end of the quarter, Netflix had almost 183 million paid memberships. The growth had increased rapidly in March when people in more and more countries were instructed to stay at home because of the corona virus, the letter to the shareholders said.

Revenue increased approximately 28 percent year over year to $ 5.8 billion. The profit more than doubled to $ 709 million.

Tuesday, April 21, 3.09 a.m .: The US car rental company Hertz Global fires about 10,000 employees in their North America business. “Like the rest of the global travel sector, the downturn in Hertz’s COVID-19 suddenly came and the reversal in customer demand was significant,” said CEO Kathryn Marinello. To cut costs as a result of the economic crisis in the Covid-19 pandemic, the layoffs would come into effect on April 14th for unionized workers and April 21st for unionized workers, the car rental company said. Official filing shows that there is a total of $ 30 million in severance pay available to employees. The company hopes to recruit as many former employees as possible as global travel demand recovers.

Monday, April 20, 8:20 a.m .: More than 450,000 single parents in Germany work in so-called systemically relevant areas. In the healthcare sector alone there are 179,000, according to figures from the Federal Statistical Office, which the New Osnabrück newspaper templates. The numbers had previously been requested by the left faction. Economic sectors are considered systemically important and must be maintained even in times of crisis and thus during the current coronavirus pandemic. Around 117,000 single parents are reported to work in public administration, 50,000 in food retail, 36,000 in financial services and insurance, and 30,000 in warehouse logistics. Up to now, systemically relevant employment has been decisive for access to emergency care for children from daycare to the sixth grade. Details are regulated differently in the federal states.

“It is good that single parents and other parents who work in critical infrastructures have emergency care available,” said Sabine Zimmermann, a left-wing MP. “But a solution is needed for all 1.8 million working single parents so that they can ensure that their children are looked after without financial losses.” The federal and state governments had already agreed in principle on Wednesday to expand emergency care.

Sunday, April 19, 12.10 p.m .: From Monday onwards, stores with up to 800 square meters of retail space can reopen in many federal states. North Rhine-Westphalia is even more liberal in its easing and also allows furniture stores and baby specialty stores to be reopened. The Swedish furniture store Ikea initially does not want to make use of this. A message on the company’s website states that the first step is to develop a comprehensive hygiene and safety concept. That would not be possible until Monday. The houses in Bielefeld, Dortmund, Dusseldorf, Duisburg, Essen, Kaarst, Kamen, Cologne, Siegen and Wuppertal will remain closed. Many owners of small businesses across Germany write on social media that they will not reopen their stores for the time being. Some are not as far as they want with their own safety concepts, many fathers and mothers with shops cannot work because daycare centers and schools are still closed and childcare facilities are lacking.

Sunday, April 19, 6.55 a.m .: In Germany, 70,000 hotels and restaurants are threatened with bankruptcy due to the corona virus crisis. Around 223,000 companies in the industry lost around ten billion euros in sales by the end of April, said Ingrid Hartges, managing director of the hotel and restaurant association Picture on Sunday. Without additional government support, every third company is facing bankruptcy, said Hartges. The easing for other areas presented this week offers no prospects for the catering trade. “The first thing we had to do was close and we will probably have to suffer the longest,” said Hartges. The association is therefore calling for the responsible opening of restaurants and cafes, the reduction of VAT to seven percent and a state rescue fund with direct aid for businesses.

Federal Finance Minister Olaf Scholz offered financial support to the industry. “Of course, we look closely to see if and where we need additional help,” he said Welt am Sonntag. The government has above all those sectors in view, for which it does not start quickly. “The hotel and restaurant industry is certainly one of them.” The required reduction in VAT deserves careful consideration, said Federal Minister for Economic Affairs Peter Altmaier the Picture on Sunday. But he can also imagine concrete help with modernization and cost savings.

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Share price in the red: Adidas’ flight stopped

Dhe corona pandemic has abruptly stopped Adidas’ soaring success in recent years. At the beginning of the year, the Chinese market was already suffering massively – it is one of the largest and most profitable markets for the sporting goods manufacturer.

However, CEO Kasper Rorsted was still comparatively confident that he could compensate for this through other markets such as North America and Europe. However, while China is now slowly returning to normal, the rest of the world has been largely at a standstill since March. And with it the business of Adidas.

As a result of the rapid spread of the corona virus worldwide, Adidas has had to temporarily close almost all of its own and partner-operated stores in Europe, North America, Latin America, the emerging markets, Russia and large parts of the Asia-Pacific region since mid-March. The stationary wholesale and retail activities in these markets account for around 60 percent of Adidas’ business. In addition, there are the losses from the China business. For the first quarter, the sporting goods group expected sales in China to be up to one billion lower than in the previous year at the beginning of March. The operating result is likely to be 400 to 500 million euros weaker. The country contributed almost a quarter of total sales of 23.6 billion euros in 2019. With currency-adjusted growth of 15 percent, it was one of the growth drivers.

The sporting goods manufacturer has therefore deleted the annual forecast. To make matters worse, no sporting events are currently taking place. Prestigious events such as the European Football Championship or the Olympic Games were postponed to the coming year. This is painful for sporting goods manufacturers, primarily because of the lack of advertising effects. On the sales side, Rorsted had declared in March that the financial effects of a postponement were marginal and put the loss of sales at a total of 50 to 70 million euros.

Loan to redeem the government loan?

However, while the business is down, the costs keep going. To secure the urgently needed liquidity, Adidas receives a billion dollar loan from the state-owned development bank KfW. The company has received approval from the federal government for a syndicated loan totaling 3 billion euros to bridge the Corona crisis. The syndicated loan included a loan commitment of EUR 2.4 billion from KfW and further commitments of EUR 600 million from a bank consortium.

The terms include the de facto suspension of dividend payments over the term of the loan agreement. In addition, the Management Board recently decided to stop the current share buyback program and to waive short-term and long-term bonuses, which together make up around 65 percent of the annual target compensation.

According to Reuters, the manager magazine reports, Adidas wants to replace the KfW loan in the coming year with a corporate bond. For this, however, a rating rating by a rating agency is still required, which is currently being worked on. Adidas has not yet commented on this.

Short-time work for 1200 employees

Adidas therefore agreed in Germany with the employee representatives on a reduction in working hours for some employee groups. Among other things, the agreement provides for paid vacation, overtime cuts and short-time work for 1200 employees. Adidas is also exploring other such measures, it said recently.

Adidas was also recently criticized when the corporation announced in the wake of the Corona crisis that it would no longer pay rent for closed stores in Europe from April. Thereupon there had been harsh criticism from all parts of society. Boycott calls were made on the Internet. At the beginning of April Adidas then rowed back and still paid. The company also apologized. In the past few weeks, many experts have initially shortened their goals for Adidas and lowered their ratings. They expect an extremely weak development, at least in the first half of the year. However, the first optimists ventured back into the market at the end of March and made new purchase recommendations.

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Investor Klaus Hommels criticizes state aid for Tui and Adidas

Hamburg Venture capitalist Klaus Hommels criticizes government aid for listed companies such as Tui and Adidas. The state subsidized the corporations “with a loan, although they could simply make a capital increase, in which the mostly foreign existing investors would have to invest,” he told the Handelsblatt. “We protect foreign investors in listed companies. This is where money comes in without old investors reinvesting. “

Hommels supports the European start-up lobby United Tech of Europe. “We want to protect start-ups, not venture capitalists. Therefore, a promotional measure makes sense in which the venture capitalists refill their own money, which is then replenished by the state, ”said the founder of the venture capitalist Lakestar.

But not all young companies could survive: “I think some startups will die that were only kept artificially alive anyway. For this you concentrate on the promising ones. If the government increases such rounds, even more money could flow into better projects in the crisis. ”

Hommels calls for government co-investments in collaboration with the industry. “Therefore, we also need a relevant advocacy group in Brussels with its own ethics, which in itself ensures that no free riders appear,” he said. However, individual European venture capitalists tried to take advantage of the situation. “Some are behaving impossible. We want to counteract this at the association level. It is not about winning the crisis, ”said the 53-year-old.

He sees the crisis as an opportunity for founders to concentrate on real problems. This could help Europe to become more independent of the United States in critical infrastructure. “We cannot rely on Americans for all system-related things. Think about it: The Americans could turn off the credit card infrastructure for us at any time, ”warns Hommels.

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“Wouldn’t the biotech company Curevac be from Germans like that? SAP-Funded with founder Dietmar Hopp, the Americans would have snatched this vaccine developer out of our hands. This is a realization that is finally pervading: We have to finance our economy ourselves. ”

Read the entire interview here:

Mr. Hommels, have you postponed or canceled investment rounds yourself because of the crisis?
The most important rule for me is: A promise, also verbally, has to be kept. This is a cultural asset because we come from the land of good merchants. We continue to look at new opportunities as normal.

There is no hesitation?
Well, a no-go is when founders arrive with documents from pre-crisis times that they have not adapted to the new times. In addition, there is now a screening process for everyone: A few months ago, funding was less critical. Now there is a harder selection.

Is it bad?
On the contrary: that brings clarity. This is always the case in difficult times. In the financial crisis, for example, some of today’s very big companies were built – like Zalando, Uber and Airbnb. Why? Because their ideas are based on real needs, which are much more obvious in tough times. More modest means are then sufficient for such ideas.

In your opinion, what are these real needs at the moment?
The topic of helping – something like Nebenan.de. In addition, delivery services go through the roof. Above all, venture capitalists are given a new role. If the biotech company Curevac had not been financed by Germans like SAP co-founder Dietmar Hopp, the Americans would have snatched this vaccine developer out of our hands. This is a realization that is finally pervading: We have to finance our economy ourselves.

Do we not have to count on fewer rounds of financing from overseas simply because travel is currently hardly possible?
On the other hand, the acceptance of video calls has increased. Before Corona, I would have said that you should have met in person first – that’s always better because you get a feel for whether it fits on a human level. In the meantime, however, it is totally accepted to only meet virtually.

Would you make a deal if you only knew people by video?
Meanwhile yes.

They have brought together start-up associations from several European countries – probably also via video calls – and are calling for more coordination on the current rescue plans. Why?
Many small associations are not heard in Brussels, so we have to speak with one voice there.

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Isn’t your industry lobbying much better than in previous crises? In Germany in particular, start-ups were included in the rescue packages very early on.
Yes that’s true. Through the start-up association, we led Christian Miele with Jörg Kukies, Secretary of State for Finance, Thomas Jarzombek, Digital Representative, and KfW Capital’s Chief, Dr. Jörg Goschin, ideas exchanged. The three do a great job in this difficult situation. However, aid for start-ups is basically not government programs, but is based on initiatives by individuals. Just like Kukies and Jarzombek in Germany, individual politicians are doing this in other European countries. As associations at European level, we want to provide you with an overview and contacts.

How do you start?
First we put an overview of the respective national programs online. We don’t want to evaluate, we want to enable a comparison and exchange of ideas.

Why is it needed?
We need it to prevent deadweight effects. Otherwise no politician can assess what the relevant demands are. That is why we also need a relevant advocacy group in Brussels with its own ethics, which in itself ensures that no free riders appear.

Do you see black sheep in the industry?
Yes, there are also venture capitalists in Germany who no longer stick to existing, written financing commitments in the crisis. Some are behaving impossible. We want to counteract this at the association level. We are not concerned with being crisis winners. Therefore, the aid programs also take some time, because it is very complicated to prevent deadweight effects.

Nevertheless, there is criticism of state aid for start-up financiers. After all, there is already the word risk in the risk capital asset class – and every investor should expect to lose his entire stake.
At first glance this is understandable, but actually pure polemic. Have a look who really should receive billions of state aid: the listed companies Adidas and Tui. But there are hardly any German shareholders behind it. The state supports this with a loan, although they could simply make a capital increase, in which the mostly foreign existing investors would have to invest. In the case of listed companies, we protect foreign investors. This is where money comes in without old investors reinvesting. However, we want to protect start-ups, not venture capitalists. Therefore, a promotional measure makes sense, in which the venture capitalists refill their own money, which is then replenished by the state.

Couldn’t venture capitalists simply inject enough own money, which is still available in most funds?
We plan with different scenarios when we finance start-ups. A reserve is always calculated. But such a lockdown case, in which sales are zero for months, is of course not factored in, so we technically don’t have the money at our disposal. The start-ups therefore need state aid in order to survive a break of several months unscathed – for this special situation alone.

Doesn’t that help you as a venture capitalist?
No, it’s about the survival of innovative start-ups. I myself could just sit back and relax. But we go in full, help the companies, do 1000 things. We are even considering helping KfW Capital with personnel. It’s actually nice that we can now do something together with colleagues like Holtzbrinck Ventures and Eventures. It is a clean event.

They have long advocated that European start-ups should be less dependent on money from the United States and Asia. Do you think that the renationalization tendencies in the corona crisis, for example with closed borders, bring the topic more into the general consciousness?
Yes, because we are now seeing what such a sell-out means: If we could not independently support start-ups in Europe, America could have stolen the German vaccine invention from Curevac. This concerns us all and certainly contributes to the general awareness of the need for action.

The Americans deny that. And wouldn’t that be an exception that occurs every 100 years anyway?
No, that also applies to artificial intelligence, climate issues and many other systemically relevant fields. Do we want to fight the pandemic of movement data from Google and Apple be dependent? We cannot rely on Americans for all system-related matters. Think about it: The Americans could turn off the credit card infrastructure for us at any time.

Does the crisis raise awareness of this?
If we do nothing there, we cannot act autonomously and become technically dependent. That mustn’t happen.

The idea of ​​economic self-sufficiency has long since been a thing of the past in times of globalization, and many corporations operate globally without discrimination. Why should it be different in the start-up area?
I am not concerned with start-ups, but with system-relevant infrastructures. However, these are also developed by start-ups.

The alternative would be an even stronger anchoring of free trade, so that national egotisms are excluded – for example a new edition of the failed transatlantic free trade agreement TTIP.
I would have agreed with you when the President was still called Barack Obama. But at the moment, the politics of the Americans are not reliable.

Do you think that the crisis can lead to a stronger European response, for example in the area of ​​start-up financing?
In any case. There is now a chance to make the voice of start-ups audible in Brussels and explain what kind of regulation we need after the crisis.

How fast do you think the situation will return to normal?
I can’t say that – at the moment everything depends on how quickly we get a vaccination.

Do you dare to predict how severe the slump will be?

I think some startups will die that were only kept artificially alive anyway. For this you concentrate on the promising ones. If the government increases such rounds, even more money could flow into better projects in the crisis.

Mr. Hommels, thank you for the interview.

More: Dependency on foreign donors is becoming a problem for start-ups

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We are not all the same “

Munich Stephan Grünewald, member of the “Corona Expert Council” of the North Rhine-Westphalian state government, sees signs that social cohesion is disappearing in the virus crisis. “In the first few weeks there was an unparalleled collaboration between politics, experts, the media and the population,” said the psychologist and co-founder of the Rheingold Institute to the Handelsblatt. After a “tolerance to toleration”, the debate polarized again. “More and more doubters are reporting whether all of this is really appropriate.”

Corona is still experienced as an equalizer. “Everyone is affected. And all of a sudden, nurses, nurses, supermarket cashiers and garbage collectors are valued socially, ”Grünewald explains. As soon as the measures were relaxed, the “collective fate” ended and, for example, different grants or exit regulations created increasing rivalries. It will soon become clear: “We are not all the same.”

According to Grünewald, the polarizing positions of people can be determined by the agreement with the attitude of various politicians. He mentions the prime ministers Armin Laschet (CDU, North Rhine-Westphalia) and Markus Söder (CSU, Bavaria). “Some want a variant” Söder plus “, a leader – someone who is even more assertive and who rules even more clearly,” explains Grünewald, “Laschet is the type of moderating, weighing politician who takes citizens with him and takes all risks into account.”

Read the full interview here

Mr. Grünewald, you have been researching the state of the soul in the country for years. Did the behavior of the Germans in the corona crisis surprise you?
Nobody had anything like that on the screen. This is the deepest cut since World War II. As a person I am horrified, as a psychologist it is exciting to watch what happens there mentally.

What did you notice?
How we deal with a threat that we do not perceive sensually. In phase one, people tried to address the feeling of helplessness. The spring cleaning was even more martial than usual, you secured supplies in hamster purchases. In the first few weeks there was an unprecedented collaboration between politics, experts, the media and the population. All restrictions were carried.

And phase two?
The turning point came at the end of March. When the last bans were pronounced, we fainted. It was clear to everyone that the crisis could only be sat out. Most people succumbed to a tolerance of tolerance, a social fast. On the other hand, the debate is polarizing again. More and more doubters are reporting whether all of this is really appropriate.

In your last book, published in 2019, it says that there is no common spirit of departure in the troubled society: “With fearful anticipation, you look forward to the collapse.”
And the pandemic is this disturbing event. Everything breaks down that has given our life stability and security. Germany was one of the last paradises. Now you are afraid of infection, personal bankruptcy, bankruptcy and the loss of social cohesion.

And in response, are we chasing from one web conference to the next?
Working through is a counter strategy. We are experiencing a consolidation of work through digitization. Expansion joints are eliminated, you no longer have to sit in the train for two hours to get to the customer. Others, in turn, allow themselves to slow down and the richness of everyday analogue: they play, do handicrafts, talk. Then reality splits.

Escapism would be normal in such a situation.
Some actually flee into the daydream world of the Internet and from Netflix. However, this leads to unrest in the long term, and the anger potential increases. If, on the other hand, decommissioning is used as a pause for reflection, such purpose-free spaces can be the breeding ground for great ideas. It’s up to the Germans. We become inventive in the crisis.

You have criticized in the past that Germany has no master plan and no visions. Now we have to develop a plan against Corona and for a new economic miracle.

It is a negative vision. We want to ward off a great danger together. But this attitude will crumble.

In politics there are currently two politicians with different plans: Armin Laschet, whose expert council you are sitting on, and Markus Söder from Bavaria.
In our studies on Corona, we actually experience a split. Some want a variant “Söder plus”, a leader – someone who is even more assertive and rules out more clearly. The one who offers recipes. The others say the lockdown is deprived of liberty. You would need a more open, lax approach. Everyone has to be responsible for that – as in Sweden. Laschet is the type of moderating, weighing politician who takes citizens along and takes all risks into account.

And what about Angela Merkel? In your surveys, she was previously considered “caring” and “comforting”.
She has this trust bonus and again acts as a national guardian angel, just like before the refugee crisis. Oppositions will soon emerge again. The AfD will most likely occupy the “Söder plus” position, with the virus as a new enemy. The FDP will advocate more personal responsibility and relaxation. Both will get people behind.

Is there a new social gap here like 2015 in the refugee question?
I see parallels. We notice that there are cracks in the families. You no longer talk to each other – either because you consider the other person to be negligent in dealing with the virus, or because you believe in authority.

How long is a person able to do without in a lockdown?
The maximum is 40 days. The word quarantine comes from the Italian “quaranta”, forty – at the time of the plague danger in the 17th century, people were locked away in Venice during this period. That’s why our summer holidays are so long, by the way. At the beginning of May we have to give people a new perspective – and from then on it is best to do it every three weeks.

As a psychologist, what have you actually achieved in the expert council of the NRW state government?
I have pointed out the growing danger of an everyday mental collapse and renewed social polarization. The latter can now increase because there are no longer any collective measures, but differentiated ones. This has to be argued wisely, but threatens jealousy and lack of understanding.

How do you assess the easing measures that the federal and state governments decided last Wednesday?
This opening must not lead people to believe that they are back to normal. From a psychological point of view, the relief must therefore be combined with new precautionary measures so that the citizens feel that they are still vigilant and active. This includes the obligation to wear a mask and an app that shows infected people.

The population accepts that without grumbling?
Politicians should know the well-being of the population beforehand. For example, many are eager to go to the hairdresser again, they are afraid to go wild in social isolation. The well-groomed hairstyle distinguishes people from barbarians. And hairdressers are important conversation therapists who wash our heads in two ways.

How important is it to continue playing the Bundesliga in May?
People have endured social fasting only through small escapes. The good weather for weeks was something of a heavenly consolation. You went for a walk or jog. Football is often the dramatic climax of the week, so it’s a great escape.

Show professional games to fulfill TV contracts – doesn’t that seem like an arbitrary privilege for a certain industry?
Without a spectator, the Bundesliga is surely an imposition. But it is so: we have bread, games are missing. Activities in opera and theater – all without an audience – would have to be expanded for streaming. The protagonists keep more distance on stage than the footballers in duels.

The debate about the Bundesliga and exemptions gives a foretaste of the social question of who will win the crisis and who will lose.
That will be one of the major disappointments and dangers in the future. Corona is still experienced as an equalizer. Everyone is affected. And nurses, nurses, supermarket cashiers and garbage collectors are suddenly valued socially. But it will soon become clear that we are not all the same. If we relax the measures, the collective fate ends. If one branch is allowed to do more than another or one federal state more than another, this creates “sibling rivalries”.

And the role of politics in this?
It will be harder for politicians to moderate these conflicts. Your current high approval ratings are just a snapshot.

What will media consumption look like? The arousal over Corona spread faster than the pathogen, you noted.
For three or four weeks, people have absorbed everything on the subject. Our interviews show that this has now been exhausted. You really heard everything and you know how to behave. Now you watch less news again. It would be dangerous if the media wanted to counteract this through greater dramatization. They have to further educate, classify and create context, for example through country comparisons.

The phenomenon of “fake news” seemed to be a thing of the past. Everyone was interested in science and its facts. Will it stay that way?
There is still a basic interest in the factual. But conspiracy theories also fatally promise easy orientation. But here there is a guilty person, a scapegoat and with it the hope that one can turn fate if one punishes the supposed originators.

Germany has struggled with digitization for years. Now it is developing almost on its own – a gain in the market situation?
Necessity means that maneuverability arises from need. We are experiencing an unprecedented surge in digitization. However, this can lead to collateral damage if, for example, there is more digital control and control anger and the analog expansion joints break away in everyday life.

How will the country as a whole develop from the corona crisis? More foreclosure? Or more courage to find your own answers in and with globalization?
We are increasingly withdrawing from ourselves during the crisis and narrowing our horizons. It is human, but it is important to expand the radius again soon. For example, I appeal to Germans to show solidarity again in Europe.

After 1945 the Germans had the dream of rebuilding the destroyed country. Does this mechanism work now?
It is certainly a different reconstruction. The Germans have made great sacrifices recently – it would therefore not be enough to simply bring everything back to the old state. There is a longing for a new picture. It starts with the question of how fast you want to live your life. We never had the experience of extreme deceleration before. That comes into play.

What new values ​​are important when restarting?
Empathy and a new sensibility for solidarity. Who can I rely on in an emergency? Which politicians, friends and brands? That has the fiasco of Adidas shown that the rents simply did not want to pay. And leisure becomes important. In a recent study, we found that many Germans rediscovered the puzzle. You have to go step by step here, you need milestones and a framework. And all parts are equally important. It is like restarting society.

Mr. Grünewald, thank you for the interview.

More: The country heads’ resistance to Merkel’s basta policy is good and correct.

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The anti-covid weapon from Mainz – morning briefing

Good morning dear readers,

have you ever had of Biontech belongs? Probably not. But now it is Mainz biotechnology company World famous in one fell swoop – because the Paul Ehrlich Institute authorized him to test a vaccine against Covid-19 on 200 people together with the US partner Pfizer. Company founder Ugur Sahin expects the first interim results at the end of June and approval – if successful – not before 2021.

Biontech belongs now Moderna (USA) and Cansino Biologics (China) among the pioneers among 80 Covid-19 vaccination projects worldwide, is analyzed by our medicine man Siegfried Hofmann in the current cover story. Biontech’s stock temporarily rose by almost 50 percent on Tuesday, and the company is now worth almost ten billion euros. Mainz, how it researches and laughs.

Top investor Klaus Hommels, Founder of the Lake Star Fund, knows everything about gimmicks and Quirks of the financial market. Therefore, listen carefully if he likes government aid for listed companies Tui and Adidas criticized. Here there are loans for companies, which could also simply make a capital increase, in which then mostly foreign shareholders would have to go along, says the capital professional in the Handelsblatt interview. “With the corporations we protect foreign investors”, continues Mosel Hommels – and thus aims at the Egyptian billionaire Nassef Sawiris (Adidas) and on the Russians Alexei Mordashov (Tui). Theodor Fontane comes to mind: “Where there is a lot of money, there is always a ghost.”

With regard to the easing of the “lockdown” in Germany, Christian Drosten criticizes that there are now “free interpretations” of the easing and a lot of imagination in the economy.

If Germany is happy about the easing of the “lockdown”, the man, who has been a for weeks Virologist of the Republic occurs – as reliable as the Schäffler, who turn at noon at the carillon in front of Munich City Hall. He regrets very much these days, “that we are perhaps just about to completely lose our lead in Germany,” warns Christian Drosten from the Charité. One has to ask oneself “whether all of this still makes sense,” he says with a view to the reopened shopping malls.

There would now be “free interpretations” of the easing everywhere and a lot fantasy in the economy, Drosten said, and it would not surprise him if a situation arises in May or June “that we can no longer control”. Perhaps the Germans no longer follow the Warner as usual, but they still appreciate him: for his NDR-Podcast “The Corona Virus Update” has been nominated for the Grimme Online Award, Information category.

In his current studies, psychologist Stephan Grünewald is experiencing a political dichotomy among the people.

What does corona mean for the psyche of the Germans? I spent a long time discussing this with the psychologist Stephan Grünewald entertained, head of the Rheingold Institute and member of the Corona Expert Council of the NRW state government. He is actually experiencing one in his current studies political division in the people, he says: Some wanted a variant “Söder plus”, that is, a “leader” who is even more assertive and rules through more clearly, like Markus Söder So in Bavaria. The others, on the other hand, think that the lockdown limits deprivation of liberty, you need more open dealings and more Personal responsibility. This is where the prime minister comes in Armin Laschet from NRW, “the type of moderating politician who takes citizens with him and includes all risks.”

The climate in the Grand coalition had recently become rougher again. The initial one Magic the common fight against corona seemed to have evaporated. But now the tops of union and SPD at her meeting with Chancellor Angela Merkel a coup: because of the corona crisis, you lift that Short-time work allowance at. Now it is no longer 60 and 67 percent of the last income, but much higher rates.

The aid payment should increase to up to 80 percent and for parents up to 87 percent, staggered according to the duration of the benefit. More than 700,000 companies have already registered short-time work in Germany – the new benefit will probably be the one Opinion values per Union.

It’s been a bit since the lingerie brand “Victoria’s Secret” hip and was an ornament of the parent company L Brands. That was before “Metoo” and “Body Shaming”. However, even the resale of the former cult company has burst. Financial investor Sycamore Partners Bang on Fall ends the February 2005 takeover of 55 percent of the capital for $ 525 million.

To run the business back, the refugees have one legal action filed with a Delaware court. Justification: Because L brands The deal was null and void in the corona crisis, when several branches were closed, staff was on leave, and rent payments were suspended. The former owner of “Victoria’s Secret” sees it completely differently and in turn thumps it up Performance of the contract. The old wisdom “Sex Sells” seems to be overridden in this dispute.

Abigail Disney is upset that entertainment company Walt Disney has taken more than a hundred thousand low-income workers to its parks.

(Photo: Getty Images)

And then there is Abigail Disney, Descendant of the famous American cartoon clan without influence, but with opinion. The granddaughter of Walt Disney’s brother Roy is upset that the entertainment company more than a hundred thousand low earners on vacation in his parks after the managers got lavish bonuses and the shareholders got a nice dividend. “What the actual F *** ?????”, tweeted Mrs. Disney and criticized the company for not caring about its workers. Earlier she had the salary of the one who left in February Ex-CEO Bob Iger (2019: $ 47.5 million) labeled “crazy” – it was 911 times higher than the average salary for all employees.

I wish you a harmonious day on which everything will hopefully be worthwhile for you.

Greetings to you warmly

Hans-Jürgen Jakobs
Senior editor

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Morning briefing: Alexa

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Economy up to date: Daimler expects profit slump – economy

Here you will find the latest business news in chronological order, with the latest news coming first.

Thursday, April 23, 2:17 p.m.: As a result of the pandemic, the car company Daimler has to make a substantial downward revision of its forecasts for the financial year. The company reported preliminary earnings before interest and taxes for the first quarter, which dropped 78 percent to EUR 617 million. The impact of the Corona crisis on customer demand, supply chains and vehicle production could not be estimated as nearly as detailed and as reliably as was possible in previous crises. . This complicates a new forecast for the 2020 financial year. The full quarterly figures are due to be published on April 29.

Wednesday, April 22, 12.49 p.m .: The minimum wages for Geriatric nurses in Germany are to be increased and expanded. This provides for a regulation that was a topic in the federal cabinet. The Federal Ministry of Labor will now issue this regulation at short notice, it said afterwards in a joint communication from the Ministry of Labor and the Federal Ministry of Health. At the end of January, a commission of employers and employees decided that by April 1, 2022, the minimum wage for nursing assistants in four steps from today’s 10.85 euros (east) and 11.35 euros (west) to 12.55 euros in east and West Germany should rise.

From July 1, 2021, there will also be a minimum wage for specialists of 15 euros for the first time. It is expected to increase to EUR 15.40 by April 1, 2022. The regulation is intended to make this decision binding across the industry.

Minister of Labor Hubertus Heil (SPD) and Minister of Health Jens Spahn (CDU) said that the corona epidemic once again shows how important nursing staff are for society. Your responsible task should be rewarded better than before. The regulations on minimum nursing wages are “a good start”.

In the meantime, the planned Corona special premium of € 1,500 for elderly care workers is likely to fail due to unsettled funding. Massive resistance has been formed in the health insurance companies against the previously expected funding from the contribution-financed long-term care insurance, reports the Frankfurter Allgemeine Zeitung.

Wednesday, April 22, 11:37 a.m .: That particularly hard hit by the consequences of the corona crisis Catering trade According to the SPD, state support should be provided in the Bundestag until restaurants and hotels are reopened. “The main thing now is to develop an opening perspective,” said Carsten Schneider, Parliamentary Managing Director of the SPD parliamentary group in Berlin. “Up to this opening date, we should extend the direct grants for the smallest companies that were previously paid for the months of March to May.” These emergency aids are declared as grants for operating costs, they amount to 9,000 to 15,000 euros for three months. “I am in favor of extending the grants because they help directly and for a limited period,” said Schneider. He rejected the lowering of the VAT on the reduced rate as “completely wrong”. gam

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Wednesday, April 22, 7:11 a.m .: The corona pandemic and series hits like “Tiger King” have the online video service Netflix helped to its strongest quarter so far. In the three months to the end of March, the number of payment subscriptions skyrocketed by 15.8 million, according to the streaming market leader after the US exchange closed. Netflix thus posted the quarter with its largest number of customers to date and far exceeded both its own forecast and the expectations of Wall Street analysts. But not that of the investors: after the exchange, the Netflix shares only rose temporarily – and then slipped slightly into the red.

At the end of the quarter, Netflix had almost 183 million paid memberships. The growth had increased rapidly in March when people in more and more countries were instructed to stay at home because of the corona virus, the letter to the shareholders said.

Revenue increased approximately 28 percent year over year to $ 5.8 billion. The profit more than doubled to $ 709 million.

Tuesday, April 21, 3.09 a.m .: The US car rental company Hertz Global fires about 10,000 employees in their North America business. “Like the rest of the global travel sector, the downturn in Hertz’s COVID-19 suddenly came and the reversal in customer demand was significant,” said CEO Kathryn Marinello. To cut costs as a result of the economic crisis in the Covid-19 pandemic, the layoffs would come into effect on April 14th for unionized workers and April 21st for unionized workers, the car rental company said. Official filing shows that there is a total of $ 30 million in severance pay available to employees. The company hopes to recruit as many former employees as possible as global travel demand recovers.

Monday, April 20, 8:20 a.m .: More than 450,000 single parents in Germany work in so-called systemically relevant areas. In the healthcare sector alone there are 179,000, according to figures from the Federal Statistical Office, which the New Osnabrück newspaper templates. The numbers had previously been requested by the left faction. Economic sectors are considered systemically important and must be maintained even in times of crisis and thus during the current coronavirus pandemic. Around 117,000 single parents are reported to work in public administration, 50,000 in food retail, 36,000 in financial services and insurance, and 30,000 in warehouse logistics. Up to now, systemically relevant employment has been decisive for access to emergency care for children from daycare to the sixth grade. Details are regulated differently in the federal states.

“It is good that single parents and other parents who work in critical infrastructures have emergency care available,” said Sabine Zimmermann, a left-wing MP. “But a solution is needed for all 1.8 million working single parents so that they can ensure that their children are looked after without financial losses.” The federal and state governments had already agreed in principle on Wednesday to expand emergency care.

Sunday, April 19, 12.10 p.m .: From Monday onwards, stores with up to 800 square meters of retail space can reopen in many federal states. North Rhine-Westphalia is even more liberal in its easing and also allows furniture stores and baby specialty stores to be reopened. The Swedish furniture store Ikea initially does not want to make use of this. A message on the company’s website states that the first step is to develop a comprehensive hygiene and safety concept. That would not be possible until Monday. The houses in Bielefeld, Dortmund, Dusseldorf, Duisburg, Essen, Kaarst, Kamen, Cologne, Siegen and Wuppertal will remain closed. Many owners of small businesses across Germany write on social media that they will not reopen their stores for the time being. Some are not as far as they want with their own safety concepts, many fathers and mothers with shops cannot work because daycare centers and schools are still closed and childcare facilities are lacking.

Sunday, April 19, 6.55 a.m .: In Germany, 70,000 hotels and restaurants are threatened with bankruptcy due to the corona virus crisis. Around 223,000 companies in the industry lost around ten billion euros in sales by the end of April, said Ingrid Hartges, managing director of the hotel and restaurant association Picture on Sunday. Without additional government support, every third company is facing bankruptcy, said Hartges. The easing for other areas presented this week offers no prospects for the catering trade. “The first thing we had to do was close and we will probably have to suffer the longest,” said Hartges. The association is therefore calling for the responsible opening of restaurants and cafes, the reduction of VAT to seven percent and a state rescue fund with direct aid for businesses.

Federal Finance Minister Olaf Scholz offered financial support to the industry. “Of course, we look closely to see if and where we need additional help,” he said Welt am Sonntag. The government has above all those sectors in view, for which it does not start quickly. “The hotel and restaurant industry is certainly one of them.” The required reduction in VAT deserves careful consideration, said Federal Minister for Economic Affairs Peter Altmaier the Picture on Sunday. But he can also imagine concrete help with modernization and cost savings.

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