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 Back on the road
The U.S. auto industry is slowly returning to life with assembly
plants scheduled to reopen on Monday and suppliers gearing up in
support as the sector that employs nearly 1 million people seeks to
recover from the coronavirus pandemic.
General Motors Co, Ford Motor Co and Fiat Chrysler Automobiles NV (FCA)
all have been preparing for weeks to reopen their North American
factories in a push to restart work in an industry that accounts for
about 6% of U.S. economic activity.
The reopening will be a closely watched test of whether workers
across a range of industries can return to factories in large
numbers without a resurgence of infections.
Hitting new lows
Japan's economy became the world's largest to slip into recession
after the pandemic, first-quarter data showed on Monday, putting the
nation on course for what could be its deepest post-war slump.
The GDP numbers underlined the broadening impact of the outbreak,
with exports plunging the most since the devastating March 2011
earthquake as global lockdowns and supply chain disruptions hit
shipments of Japanese goods.
But analysts warn of an even bleaker picture for the current quarter
as consumption crumbled after the government in April requested
citizens to stay home and businesses to close.
China on alert for new wave
While much of the rest of the world is experimenting with easing
restrictions, one Chinese province is back in a partial lockdown
after a spate of infections.
Jilin in the northeast reported two more confirmed cases over the
weekend to take its total number of new infections to 33 since the
first case of the current wave was reported on May 7. Separately,
the financial hub of Shanghai reported one new locally transmitted
case for May 17, its first since late March.
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Pop-up carparks
Australia's most populous state New South Wales encouraged its residents to
avoid peak-hour public transport as it began its first full week of loosened
lockdown measures, which saw people heading back to offices.
To help with maintaining social distancing, extra bicycle lanes and pop-up car
parking lots will be made available, officials said.
"We normally encourage people to catch public transport but given the
constraints in the peak..., we want people to consider different ways to get to
work," state premier Gladys Berejiklian told reporters in Sydney.
Furloughs no cure-all
Temporary unemployment schemes have spread far wider and faster than during the
2008-2009 global financial crisis, but are not likely to save jobs in sectors
which face a tougher recovery post-pandemic, such as leisure and tourism.
These schemes, which typically provide at least 80% of pay for workers for whom
there is no work now, mean companies do not face firing and potential re-hiring
costs. Workers are more inclined to keep spending and so help prop up the
economy.
"If it's more than a year, you need other solutions and will need other policies
like retraining," said Gregory Claeys, senior fellow at economic think-tank
Bruegel. "It's good in a lockdown, but if there is more social change, you need
alternatives."
(Compiled by Karishma Singh and Mark John; Editing by Mark Heinrich)
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