This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.nytimes.com/2020/04/08/business/europe-economy-france-germany.html

The article has changed 13 times. There is an RSS feed of changes available.

Version 11 Version 12
Europe’s Big Economies Brace for Sharpest Drop Since World War II Europe’s Big Economies Brace for Sharpest Drop Since World War II
(8 days later)
PARIS — Cavernous factories devoid of workers. Cranes frozen in midair over construction sites. Millions of people confined to their homes, spending a fraction of what they used to before the coronavirus hit.PARIS — Cavernous factories devoid of workers. Cranes frozen in midair over construction sites. Millions of people confined to their homes, spending a fraction of what they used to before the coronavirus hit.
Europe’s pandemic-induced lockdowns were widely expected to throw the continent into a deep recession. On Wednesday, Germany and France, the largest economies, showed just how bad it’s about to get, warning that they were headed toward their sharpest downturns since World War II.Europe’s pandemic-induced lockdowns were widely expected to throw the continent into a deep recession. On Wednesday, Germany and France, the largest economies, showed just how bad it’s about to get, warning that they were headed toward their sharpest downturns since World War II.
France officially slid into a recession after suffering one of the worst quarterly contractions in more than 50 years. Growth tumbled an estimated 6 percent from January to April, from the fourth quarter, when the economy shrank slightly because of nationwide strikes, the central bank said. For every two weeks the population remains under confinement, the economy shrinks by at least 1.5 percent, it added.France officially slid into a recession after suffering one of the worst quarterly contractions in more than 50 years. Growth tumbled an estimated 6 percent from January to April, from the fourth quarter, when the economy shrank slightly because of nationwide strikes, the central bank said. For every two weeks the population remains under confinement, the economy shrinks by at least 1.5 percent, it added.
And Germany is sliding toward its deepest recession on record, with growth expected to plunge almost 10 percent from April through June, five leading economic institutes said Tuesday.And Germany is sliding toward its deepest recession on record, with growth expected to plunge almost 10 percent from April through June, five leading economic institutes said Tuesday.
Together, the reports underscored how quickly the situation is snowballing, putting pressure on governments as they scramble to calculate timetables for reopening their economies and weigh billions more in fiscal support to blunt the damage — beyond trillions already pledged in recent weeks.Together, the reports underscored how quickly the situation is snowballing, putting pressure on governments as they scramble to calculate timetables for reopening their economies and weigh billions more in fiscal support to blunt the damage — beyond trillions already pledged in recent weeks.
“The worst growth that France has seen since 1945 was after the great financial crisis of 2008,” the French finance minister, Bruno Le Maire, told the Senate earlier this week. “We will probably go far beyond that.” President Emmanuel Macron was expected to announce in a televised address Thursday night that France would remain under lockdown beyond an April 15 deadline.“The worst growth that France has seen since 1945 was after the great financial crisis of 2008,” the French finance minister, Bruno Le Maire, told the Senate earlier this week. “We will probably go far beyond that.” President Emmanuel Macron was expected to announce in a televised address Thursday night that France would remain under lockdown beyond an April 15 deadline.
In Italy, where a lockdown has been in place for more than a month as the country logs one of Europe’s highest death tolls from the virus, the economy will shrink 9.6 percent in the second quarter, according to forecasts by economists at the Dutch bank ING. Spain, one of the hardest-hit countries, will see its economy decline by 8.9 percent in the same period, ING said.In Italy, where a lockdown has been in place for more than a month as the country logs one of Europe’s highest death tolls from the virus, the economy will shrink 9.6 percent in the second quarter, according to forecasts by economists at the Dutch bank ING. Spain, one of the hardest-hit countries, will see its economy decline by 8.9 percent in the same period, ING said.
Countries are trying to balance public health with concerns that a prolonged, deep recession may prove more costly than keeping their economies frozen to stem the spread of the virus. Economists expect countries to rebound slowly whenever their shutdowns end. Austria and Denmark are already planning exit strategies to reopen businesses and lift quarantines in small waves.Countries are trying to balance public health with concerns that a prolonged, deep recession may prove more costly than keeping their economies frozen to stem the spread of the virus. Economists expect countries to rebound slowly whenever their shutdowns end. Austria and Denmark are already planning exit strategies to reopen businesses and lift quarantines in small waves.
Yet if Germany, the biggest economy, is a marker, any rebound later this year will not be enough to compensate for a dismal first half. For the full year, the German economy will have shrunk 4.2 percent, the German institutes predicted.Yet if Germany, the biggest economy, is a marker, any rebound later this year will not be enough to compensate for a dismal first half. For the full year, the German economy will have shrunk 4.2 percent, the German institutes predicted.
In the eurozone, the group of 19 European Union nations that share the same currency, analysts expect a recession and a contraction of around 13 percent this year. By contrast, in 2009, the worst financial crisis year for the bloc, the economy shrank 4.5 percent.In the eurozone, the group of 19 European Union nations that share the same currency, analysts expect a recession and a contraction of around 13 percent this year. By contrast, in 2009, the worst financial crisis year for the bloc, the economy shrank 4.5 percent.
The economic damage from the coronavirus has been faster, deeper and spread across nearly every economic sector. With nonessential workers ordered to stay indoors, construction activity in France plunged by 75 percent, while industrial activity shrank by half during the first quarter.The economic damage from the coronavirus has been faster, deeper and spread across nearly every economic sector. With nonessential workers ordered to stay indoors, construction activity in France plunged by 75 percent, while industrial activity shrank by half during the first quarter.
French restaurants, hotels, transportation and wholesalers saw business slump by two-thirds, exacerbated by a sharp drop in tourism. With people confined to their homes, consumer spending dropped by a third in the first quarter, while the use of credit and debit cards, a measure of consumer activity, sank by half after France’s quarantine was put in place a month ago.French restaurants, hotels, transportation and wholesalers saw business slump by two-thirds, exacerbated by a sharp drop in tourism. With people confined to their homes, consumer spending dropped by a third in the first quarter, while the use of credit and debit cards, a measure of consumer activity, sank by half after France’s quarantine was put in place a month ago.
The scale of the shock is similar across Europe, according to a report by the Organization for Economic Cooperation and Development released Wednesday. A composite of leading indicators that shows turns in economic cycles fell to the lowest on record, reflecting the economic impact of the lockdowns.The scale of the shock is similar across Europe, according to a report by the Organization for Economic Cooperation and Development released Wednesday. A composite of leading indicators that shows turns in economic cycles fell to the lowest on record, reflecting the economic impact of the lockdowns.
In Germany, joblessness will rise, the German institutes said, but the increase will be relatively modest because of a so-called short-work program that allows companies to furlough workers or reduce their hours rather than letting them go. The government pays about two-thirds of the lost wages.In Germany, joblessness will rise, the German institutes said, but the increase will be relatively modest because of a so-called short-work program that allows companies to furlough workers or reduce their hours rather than letting them go. The government pays about two-thirds of the lost wages.
One in four workers has been put on paid furlough in France, part of a support program worth 45 billion euros that the government has unleashed to try to prevent mass joblessness and the widespread collapse of the small and medium-size businesses that make up the backbone of the economy.One in four workers has been put on paid furlough in France, part of a support program worth 45 billion euros that the government has unleashed to try to prevent mass joblessness and the widespread collapse of the small and medium-size businesses that make up the backbone of the economy.
Updated July 7, 2020
The coronavirus can stay aloft for hours in tiny droplets in stagnant air, infecting people as they inhale, mounting scientific evidence suggests. This risk is highest in crowded indoor spaces with poor ventilation, and may help explain super-spreading events reported in meatpacking plants, churches and restaurants. It’s unclear how often the virus is spread via these tiny droplets, or aerosols, compared with larger droplets that are expelled when a sick person coughs or sneezes, or transmitted through contact with contaminated surfaces, said Linsey Marr, an aerosol expert at Virginia Tech. Aerosols are released even when a person without symptoms exhales, talks or sings, according to Dr. Marr and more than 200 other experts, who have outlined the evidence in an open letter to the World Health Organization.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles.
A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.
The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
Germany had a budget surplus before the crisis began and can afford to support businesses with cheap loans and other aid during nationwide restrictions that have forced most nonessential businesses to close.Germany had a budget surplus before the crisis began and can afford to support businesses with cheap loans and other aid during nationwide restrictions that have forced most nonessential businesses to close.
“Germany is in a good position to cope with the economic slump,” Timo Wollmershäuser, head of forecasts at the ifo Institute in Munich, said in a statement. Ifo was one of the five institutes preparing the forecasts for the government.“Germany is in a good position to cope with the economic slump,” Timo Wollmershäuser, head of forecasts at the ifo Institute in Munich, said in a statement. Ifo was one of the five institutes preparing the forecasts for the government.
But other European governments are not so flush. Italy and Spain, both hard hit by the virus, will struggle to provide financial support to people and businesses. They and virtually all European countries are also likely to suffer severe economic slowdowns.But other European governments are not so flush. Italy and Spain, both hard hit by the virus, will struggle to provide financial support to people and businesses. They and virtually all European countries are also likely to suffer severe economic slowdowns.
A growing number of officials and analysts believe the European Union needs an enormous financial response on a scale that will confront the calamity. Short of that, they warn, the bloc risks a larger financial, economic and potentially social disaster.A growing number of officials and analysts believe the European Union needs an enormous financial response on a scale that will confront the calamity. Short of that, they warn, the bloc risks a larger financial, economic and potentially social disaster.
But European finance ministers ended a marathon overnight teleconference Wednesday without reaching an agreement on measures to counter the economic effects of the pandemic, including proposals to aid financially weak countries.But European finance ministers ended a marathon overnight teleconference Wednesday without reaching an agreement on measures to counter the economic effects of the pandemic, including proposals to aid financially weak countries.
The measures, which would be on top of policies adopted by individual countries to aid their own economies, consist of a three-part package worth about a half-trillion euros, including 240 billion euros in emergency loans from the eurozone’s standing bailout fund, credit guarantees from the European Investment Bank to keep companies from collapsing and support for short-work schemes that help companies avoid layoffs.The measures, which would be on top of policies adopted by individual countries to aid their own economies, consist of a three-part package worth about a half-trillion euros, including 240 billion euros in emergency loans from the eurozone’s standing bailout fund, credit guarantees from the European Investment Bank to keep companies from collapsing and support for short-work schemes that help companies avoid layoffs.
Germany, the Netherlands and some other European Union countries are insisting that aid come with restrictions on government spending and other conditions that are politically unacceptable in Italy and Spain, where residents object to northern countries telling them what to do.Germany, the Netherlands and some other European Union countries are insisting that aid come with restrictions on government spending and other conditions that are politically unacceptable in Italy and Spain, where residents object to northern countries telling them what to do.
Liz Alderman reported from Paris, and Jack Ewing from Frankfurt.Liz Alderman reported from Paris, and Jack Ewing from Frankfurt.