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  • Dutch state wants to guarantee billion-dollar loan for KLM

    Dutch state wants to guarantee billion-dollar loan for KLM

    Aviation group Air France-KLM initiate talks with the banks about billions of euros in emergency loans in order to curb the effects of the corona crisis, according to news agency Reuters. KLM would like to claim 2 billion euros in financial aid while Air France 4 billion euros, and the Dutch and French states would guarantee the loans. So far, Hague sources have not confirmed or infirmed the news.

    KLM planes grounded at Schiphol Airport

    KLM – vital for the Dutch economy
    Minister of Finances Wopke Hoekstra adds that he wants to do everything he can to keep KLM afloat and “help it in this difficult phase.” He thinks KLM is a vital company for the Dutch economy.
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    The Netherlands and France each own 14 percent of the shares in the Franco-Dutch airline holding company Air France–KLM.

    It became clear that the government is no longer opposed to KLM decision of cutting 2000 temporary jobs. Minister Koolmees acknowledged that the company is in a difficult situation. He and Hoekstra spoke to KLM CEO Elbers yesterday.

    KLM appeals to the emergency regulation whereby the government pays a large part of the wages of companies in trouble. According to Koolmees, the company adheres to the rules. The airline says it is doing everything it can to keep its permanent staff at work.

  • US-based airlines want more money than the federal government offers

    US-based airlines want more money than the federal government offers

    Major US airlines have asked the US government in a joint letter for $58 billion in financial aid.
    “Given the urgent and immediate need, it is imperative that these funds be paid out as soon as possible,” it is said in a letter read by Reuters news agency.
    AA airplane (public domain)
    The letter is signed by the directors of American Airlines, Delta Air Lines, United Airlines, Alaska Airlines, JetBlue, Southwest Airlines, Hawaiian Airlines and Atlas Air, and freight carriers UPS and FedEx.
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    In the $2 trillion bailout package that aims to mitigate the economic impact of the corona virus, $50 billion is reserved for airlines that carry passengers and $8 billion is reserved for grants and loans to freight carriers.

    The companies risk firing thousands of people if they don’t get enough support. The airlines based the calculations of the necessary cash on the salaries paid in the period April – September last year.

  • Tour Operator TUI receives 1.8 billion euros financial aid from German government

    Tour Operator TUI receives 1.8 billion euros financial aid from German government

    Travel organization TUI will receive a loan of 1.8 billion euros from the German state-owned bank KfW because of the corona crisis, the company announced on Friday.

    Boeing 737 TUI Airways (wikimedia commons)

    With the financial support, the buffer of the travel giant grows to 3.1 billion euros. In the message, the group says it needs the support until business can be restarted.

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    The travel industry has entered a deep recession due to the further spread of the corona virus outbreak. TUI has canceled all trips until the end of April. Stranded travelers will still be picked up.

    Other travel organizations have also canceled holiday trips. For example, Corendon canceled all trips until June 1.

  • 2.25 million Americans lost their jobs this week

    2.25 million Americans lost their jobs this week

    In the United States, 2.25 million Americans lost their jobs this week, analysts at US investment bank Goldman Sachs estimated. Last week, a total of 281,000 Americans lost their jobs, the largest number in one week since 1992.

    Coronavirus sends US labor market crashing

    According to the bank, the corona virus is to blame that so many people have become unemployed within seven days. Airlines, restaurants, hotels, sporting events, and entrepreneurs, among others, are struggling with the sudden drop in sales in the U.S. and not only.
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    Furthermore, Moody’s Analytics estimated that 27 million workers, or about 18% of the U.S. workforce, are at most risk, including leisure and hospitality, transportation and mining and energy.

    After years of steady economic growth that pushed unemployment to a 50-year low, the coronavirus pandemic has suddenly raised the specter of joblessness on a scale not seen since the start of the Great Depression.

  • Dutch economy to enter recession due to coronavirus crisis

    Dutch economy to enter recession due to coronavirus crisis

    Hard Rock Cafe Amsterdam (public domain)
    Hard Rock Cafe Amsterdam (public domain)

    The Dutch economy will shrink by 0.2 percent this year due to the corona crisis, Rabobank economists said in a report published on Friday.

    In the forecast, the economists assume that the crisis will be brought under control sometime between April and July. Economic recovery could then occur in mid-2020.

    The crisis is affecting almost all economic areas, but the biggest blows are in the construction, agriculture, hospitality and transport sectors.

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    However, these measures cannot alleviate all pain. For example, it may not be possible to apply for a reduction in working hours for flex workers or people with temporary employment contracts that will not see their contracts renewed.

    Some sectors continue to grow
    If government manages to ward off the crisis, many sectors could start growing again in the second half of this year. However, most sectors are expected to contract.

    The catering and culture sector suffer greatly from the closure of restaurants, cafes, theaters and museums. Rabobank experts believe that “these sectors will hardly have any catch-up effect in the third and fourth quarters, because consumers will not go to a museum twice in a row, for example.”

  • Cryptocoins not a threat, Bank of Japan Governor says

    Cryptocoins not a threat, Bank of Japan Governor says

    The Governor of the Bank of Japan, Haruhiko Kuroda, said in front of the parliament members last Tuesday that cryptocurrencies are not a threat to the Yen and won’t pose a danger to existing standard payments in the near future.

    Haruhiko Kuroda
    BOJ Governor Haruhiko Kuroda (pic: wikimedia commons)

    “For the time being, the digital coins are generally used for speculative trading rather than making payments”, said the governor adding that the Bank of Japan keeps an eye on the cryptocurrency market to ensure they do not “erode public trust” on existing settlement systems the bank currently oversees.

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    A survey conducted by John McAfee revealed that 58% of over 45,000 poll participants see cryptocurrencies more as an investment than a means of payment. However, this figure is expected to change once the virtualcoin market has matured and then increasingly more financial transactions will be done in Bitcoin, Ethereum and their alternatives.

    So far, Japan is known to be one of the most crypto friendly nations in the world as cryptocurrencies have been regulated by the government and increasing number of shops and businesses in the country accept Bitcoin and other altcoins as a means of payment.

  • Turkish club Harunustaspor buys player with Bitcoin in world’s first crypto payment in football

    Turkish club Harunustaspor buys player with Bitcoin in world’s first crypto payment in football

    Harunustaspor, a sports club competing in the regional amateur football league Sakarya First Division Group B in Turkey, acquired a player using cryptocurrency Bitcoin, a football’s first.

    football bitcoin payment
    Celebration after football’s first official bitcoin payment (pic: cnnturk.com)

    According to local media outlets, 22-year-old Omer Faruk Kiroglu has accepted an offer of 0.0524 Bitcoin (about 431 euros) and 2,500 Turkish Lira (534 euros).
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    “We did so to be known to the world. This transfer has become the first of this kind in Turkey and even in the whole world. If such a trade was made by professionals, it would have been widely advertised on television. However, as amateurs, we were the first to do it and we are proud of that,” said club’s president, Haldun Sehit.

    Omar Faruk Kiroglu was delighted with this experience. “I’m a man open to new things. For me it is a historic moment, as it is for the whole soccer world,” he added.

  • Cryptocoins – an “ecological disaster,” BIS chief says

    Cryptocoins – an “ecological disaster,” BIS chief says

    Central banks need to be prepared to intervene and counteract the risks created by digital currencies, such as bitcoin, which have become a “combination of speculative bubble, pyramid scheme and ecological disaster,” said Agustin Carstens, general manager of the Bank of International Settlements (BIS), according to The Wall Street Journal.

    Agustin Carstens
    Agustin Carstens (public domain photo)

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    Agustin Carstens, a former governor of the Central Bank of Mexico, is the latest in a series of decision-makers who have ruled against digital currencies after Bitcoin, the best known cryptocoin, has seen a spectacular rise of over 1,000% in 2017.

  • VirtualCoin market will collapse and then strengthen, Ethereum co-founder says

    VirtualCoin market will collapse and then strengthen, Ethereum co-founder says

    The crypto market will grow stronger only when all alternative coins having “no substance” and now competing with Bitcoin, will fail. This is the opinion of Charles Hoskinson, the co-founder of one of the most successful virtual coins, Ethereum.

    Charles Hoskinson
    Charles Hoskinson (pic: iohk.io)

    In a recent interview with CNBC, Hoskinson said that, from his point of view, a “consolidation” of the cryptocurrency would be triggered by a “crash” of the altcoin market segment.

    Charles Hoskinson now runs blockchain research firm IOHK, but was previously in charge of Ethereum, which develops the underlying technology for the cryptocurrency ether (also known as ethereum).

    “What’s going to occur is a lot of these ventures that don’t have strong fundamentals, don’t have good tech, or just unrealistic projects, they will eventually run into some major wall they can’t quite overcome. They will fracture up and you will see a lot of them are certain to fail,” Ethereum co-founder explained.
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    After hitting an unprecedented $20,000 threshold last December, Bitcoin started to decline slowly, negatively influencing other virtual currencies such as ether (Ethereum) and Litecoin, because of investors’ fears that regulators will tighten the market control.

    Regulatory authorities in China, South Korea and India strengthen the oversight of bitcoin and mining transactions, while the US Stock Exchange and Securities Commission began controlling its tradings as of the end of last year.

    Video: CryptoMarket to crash and then consolidate, Ethereum creator says

     

  • Arizona residents could pay taxes with cryptocurrency

    Arizona residents could pay taxes with cryptocurrency

    The Senate of the US state of Arizona passed a bill a few days ago which aims at enabling people to pay their taxes using cryptocoins.

    arizona cryptocurrency
    Arizona to ease legislation for cryptocoins use (pic: wikimedia commons)

    The bill, which was approved by a 16-13 margin, could allow taxpayers to make use of their digital coins such as ethereum, bitcoin or ripple, to pay “tax and any interest and penalties” to the state’s Department of Revenue.

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    Arizona State lawmakers claim that the tax measure is intended at making the state an accommodating place for users of the technology.

    Practically, the crytocurrency focus sends out a signal to the entire US and throughout the world, that Arizona is very likely to become an attractive spot for blockchain and digital currency technology in the near future.