The coronavirus lockdown has virtually halted international travel and tourism, hitting airlines and other travel companies, aerospace and auto manufacturers and oil companies hard.
As these businesses adjust to dramatically reduced revenue projections, job losses are starting to mount alarmingly. More than 40,000 redundancies have already been announced across these sectors, with more than 10,000 likely to be in the UK.
The jet-engine manufacturer has confirmed that 3,000 job cuts, of a planned 9,000 worldwide, will be made in the UK. Rolls-Royce will make the first round of redundancies through a voluntary programme, with about 1,500 posts being lost at its headquarters in Derby, as well as 700 redundancies in Inchinnan, near Glasgow, another 200 at its Barnoldswick site in Lancashire, and 175 in Solihull, Warwickshire.
The economic downturn in the US triggered by the pandemic has been officially declared a recession.
The National Bureau of Economic Research made the designation on Tuesday, citing the scale and severity of the current contraction.
It said activity and employment hit a “clear” and “well-defined” peak in February, before falling.
The ruling puts a formal end to what had been more than a decade of economic expansion – the longest in US history.
Meanwhile, US markets continued their rebound on Monday, as investors remained optimistic that the downturn will be short-lived.
Opening beer gardens before the end of the month would give struggling pubs a psychological boost but most would still lose money, JD Wetherspoon’s founder, Tim Martin, has said.
The government is reportedly ready to let pub beer gardens in England reopen from 22 June as part of plans drawn up by a group of ministers, dubbed the “Save Summer Six”, who are looking at ways to restart the hospitality industry earlier than initially planned.
The proposals, first reported in the Financial Times, would allow some of the 27,000 pubs that have outdoor space to serve customers for the first time in three months.
Ministers have identified June 22 as the date when they hope to reopen England’s pubs and restaurants serving customers outdoors, amid fears of mass job losses if the hospitality sector misses out on the lucrative summer season. Chancellor Rishi Sunak is among half a dozen ministers, calling themselves the “save summer six”, seeking to accelerate the reopening of the economy. The hospitality sector was not due to open until July 4. Downing Street said on Monday that the government “continued to follow the road map” published by the government last month, which said the hospitality sector would open no sooner than July 4, but three senior Whitehall officials said the target date was June 22.
Here is a round-up of the latest news in response to the coronavirus pandemic on Monday, June 1.
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SpaceX and NASA are gearing up for a historic mission: On Saturday, they plan to launch humans in a commercial spacecraft for the first time ever and restore the US’s ability to send its own astronauts into space.
If clouds don’t delay the launch again (as they did on Wednesday), NASA astronauts Bob Behnken and Doug Hurley will board SpaceX’s Crew Dragon spaceship, perched atop its Falcon 9 rocket, and hurtle into Earth’s orbit. The plan calls for them to reach the International Space Station on Sunday morning.
A split three-day week with workers separated into two different teams should be considered as part of the economic recovery from the COVID-19 crisis, a report has urged.
The Royal Society for the encouragement of Arts, Manufactures and Commerce (RSA) has suggested firms arrange “A teams” and “B teams”, typically working Monday to Wednesday or Thursday to Saturday.
A Michigan judge has ruled that a barber who defied the state’s stay-at-home order and opened his business does not have to close.
Karl Manke, 77, has kept his Owosso, Michigan, barbershop open since May 4, despite a license suspension, a cease-and-desist order, and a temporary restraining order from the state’s attorney general. A Shiawassee County judge ruled Thursday that he can remain open
The electric car maker earned net income of $16 million, while income excluding special items, such as stock based compensation, came in at $227 million. The company lost money on both those measures in the year-earlier quarters. Analysts surveyed by Refinitiv had forecast the company would post a narrow loss due to the shutdowns of its factories in California and Shanghai at times during the quarter and a drop in completed vehicle sales compared to the fourth quarter of last year.