Virus Wreaks Economic Havoc As Global Cases Top 17 Million

The scale of economic devastation from the pandemic was laid bare on Thursday as Western economies recorded historic slumps, just as resurgent caseloads forced many countries into agonising new trade-offs between health and financial stability.

Six months after the World Health Organization declared a global emergency, the novel coronavirus has infected more than 17 million people worldwide.

The WHO warned Thursday that young people are "not invincible" and were helping to drive resurgences in many places that had largely curbed the disease.

"Spikes of cases in some countries are being driven in part by younger people letting down their guard during the northern hemisphere summer," said WHO chief Tedros Adhanom Ghebreyesus.

COVID-19 has killed more than 668,000 people and is forcing governments into a persistent balancing act between saving lives and preventing economic devastation.

Nowhere is that challenge more evident than the world's hardest-hit nation -- also the world's biggest economy -- with the United States posting a second-quarter loss of 9.5 percent compared with the same period a year ago, the worst figure on record.

If that trajectory carried through the entire year, its economy would collapse by nearly a third (32.9 percent), the data showed.

Historic contractions were additionally recorded in Germany (10.1 percent), Belgium (12.2 percent), Austria (10.7 percent) and Mexico (17 percent).

Across the globe, companies were also taking a hit with Volkswagen, oil producer Shell, UK bank Lloyds and Japanese consumer electronics giant Panasonic all reporting huge losses.

With travel down to a trickle, aerospace giant Airbus said it burned through more than 12 billion euros in cash in the first half of the year, with a net loss of 1.9 billion euros ($1.4 billion) and plans to cut production by 40 percent.

But several Big Tech firms delivered better-than-expected results Thursday, underscoring growing consumer reliance on giants like Amazon during the pandemic as well as their extraordinary economic power.

Apple profits rose eight percent to $11.2 billion, Amazon meanwhile said profits nearly doubled to $5.2 billion and Facebook said its profits doubled to $5.2 billion compared with the same period last year.

Global daily cases are now approaching the 300,000 mark, with the curve showing no sign of flattening -- it took just 100 hours for one million new cases to be recorded.

The US counted 1,379 new deaths in the 24 hours before 8:30 pm Thursday (0030 GMT Friday), plus another 72,238 new infections.

And the country also recorded another grim milestone: the death of Buddy, the first US pet dog to test positive for the virus. The seven-year-old German shepherd died after suffering from difficulty breathing and other symptoms for several months.

In Japan, Tokyo's governor called for restaurants, bars and karaoke parlours to shut earlier as the capital reported a record number of new infections.

Sweden, whose controversial softer approach to curbing coronavirus has received worldwide attention, said it would encourage people to keep working from home into next year where possible, as the country passed 80,000 recorded cases.

And Mexico became the world's third hardest-hit country in terms of deaths as it notched more than 46,000 fatalities, according to a tally maintained by AFP.

Two island countries that were early poster children for containing the virus offered warnings against complacency on Thursday.

In Australia, there were 723 positive tests in the southeastern state of Victoria alone, well beyond the previous nationwide record of 549 cases set on Monday.

And Iceland recorded its first hospitalisation since mid-May, as well as 31 new cases, forcing the government to reimpose social distancing and masks, and limit the size of gatherings to 100.

Hong Kong, which was also initially lauded for its coronavirus response, is struggling to balance fears of a third wave among its 7.5 million residents, which authorities fear could cripple the healthcare system, against anger at new restrictions.

Just a day after restaurants were banned from serving customers indoors, the decision was reversed following a torrent of online criticism over images of mostly blue-collar workers forced to eat on pavements and in parks -- and even inside public toilets to escape a torrential downpour.

Ivory Coast however bucked the trend, announcing that bars, nightclubs and cinemas would reopen on Friday.

The EU meanwhile carried out its fortnightly update to its list of safe countries. US travellers are still barred and Algeria was removed after a spike in cases.

The safe list currently consists of Australia, Canada, Georgia, Japan, Morocco, New Zealand, Rwanda, South Korea, Thailand, Tunisia and Uruguay -- and would also include China if Beijing reciprocated.

Copyright AFP. All rights reserved.

RECENT NEWS

How Hedge Funds Differ From Mutual Funds

In a world where successful investment plays a significant role in one's financial success, it becomes paramount to unde... Read more

Basics Of Hedge Funds And Their Strategies

In the realm of finance, hedge funds often make tantalizing headlines. With their high rewards and greater risks, they'r... Read more

The Role Of Hedge Funds In Financial Markets

Over the years, the prominence of hedge funds within the financial market landscape has grown exponentially. The role of... Read more

Revolutionizing Finance: A Deep Dive Into The Role Of Machine Learning In Hedge Fund Management

The financial landscape has undergone radical transformations over the years, shifting from traditional models of financ... Read more

Emerging Cybersecurity And Compliance Trends In The Hedge Fund Industry

The hedge fund industry, a central force in the global investment landscape, faces both the promise and peril of ever-ad... Read more

Understanding Key Compliance Challenges For Hedge Funds In The Post-Pandemic Era

As societies grapple with the aftermath of a globally destructive pandemic, exploring the intricate operations of hedge ... Read more