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Three Wall Street stocks rose more than 50% in May

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Three Wall Street stocks rose more than 50% in May
Three Wall Street stocks rose more than 50% in May

The technological Twilio, the best value on Wall Street during the past month of May.

Little by little, the stock markets around the world are recovering normality after the shock that the Covid-19 coronavirus caused in mid-March. Last May, Wall Street recovered an average of 5.3% with just over 70% of the Russell 1,000, which includes the 1,000 largest US companies by market capitalization, registering increases.

According to the analysis carried out by Bespoke Investment, three companies registered revaluations greater than 50% in the Russell 1000.

The best of all stocks was Twilio, which went from closing April at a price of $ 112.3 to reaching $ 200 per share with a cumulative rise of 73%. So far this year, the technology has practically doubled, although it is still less known than other companies in the sector. Twilio is a cloud communications platform that enables voice, video, or messaging capabilities. When you receive a message from Uber that warns you that your vehicle is on the way, it is very likely that you are using its software.

Arconic, a supplier to the automotive and aerospace industry, and another 2U technology company, also stood out.

The US created a record-breaking job record in May

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The US created a record-breaking job record in May
The US created a record-breaking job record in May

The American economy created 2.5 million jobs in May. It was expected to destroy 8.3 million

The US unexpectedly created 2.5 million jobs in May, according to data released this Friday by the Labor Department, much better than expected by economists, which could indicate that the economic recovery is closer.

Analysts polled by Dow Jones hoped that job destruction had continued last month. Specifically, they calculated 8.3 million fewer jobs and that the unemployment rate increased to 19.5% from 14.7% in April. However, this fell to 13.3%. If the economists had guessed correctly, it would have been the worst figure since the Great Depression. But in the end, May numbers have shown that the US may be recovering after the fastest collapse in history. In April, the pandemic suddenly destroyed 20.5 million jobs.

Wall Street futures soared after hearing the news of the job. After opening, the Dow Jones rose 2.6%, almost 700 points; the S&P rebounds 2% and the Nasdaq 1%.

World Economics Data

May job creation has been by far the highest in a month in the US since at least 1939, when the historical series begins. The previous record took place in September 1983, when 1.1 million jobs were added.

Despite the improvement, the unemployment rate is still at record highs. In October 2009, the peak of the global financial crisis that started in 2008, the unemployment rate in the United States reached 10%, while the all-time high was in December 1982, when it reached 10.8%. In this way, the unemployment rate escalated during April to its highest level since records began in 1948.

In terms of job destruction, the ‘shock’ of March and April was so severe that the level of employed persons has still been at its lowest since 2011. The worst month for employment after the 2008 crisis and before that of the Coronavirus occurred in March 2009, when 800,000 jobs were destroyed.

The number of long-term unemployed, those who have been unemployed for a minimum of 27 weeks, rose to 1,164 million people, equivalent to an increase of 225,000 unemployed. Their weight with respect to the total number of unemployed rose by more than 1 percentage point, to 5.6%.

On its side, the total number of unemployed people was 20,985 million people, so it fell by 2.09 million unemployed in March. For its part, the participation rate in the labor market grew six tenths, up to 60.8%. Compared to April, the active population grew by 1.7 million people.

By groups of workers, the unemployment rate among women was 13.9%, one and a half points lower than that of April, while among men it fell by 1.4 points, to 11.6%. Unemployment among young people fell to 29.9%.

In the fifth month of the year, the number of employees in the manufacturing and construction sectors grew by 669,000 people, while retail businesses hired 367,000 people and the health sector increased its workforce by 390,000 workers. The greatest increase occurred in the leisure, tourism and hospitality sector, which again hired 1.24 million people.

The duration of the average work week increased by five tenths, to 34.7 hours in May. At the same time, median hourly earnings fell 29 cents from the previous month, to $ 29.75.

Likewise, the Labor Department has reported that the number of jobs destroyed in March has been revised upwards, to 1.4 million (881,000 more), while the April data has been adjusted to -20.7 million jobs working (150,000 less).

Tax on the wealthiest after the pandemic? The idea advances in the United Kingdom

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Tax on the wealthiest after the pandemic? The idea advances in the United Kingdom
Tax on the wealthiest after the pandemic? The idea advances in the United Kingdom

The economic consequences of the health crisis are harsh: massive unemployment, serial bankruptcies, impoverishment of the most vulnerable.

What if the richest were forced to contribute to recovery after the pandemic? The idea is gaining ground in the United Kingdom, a country known for its generosity to great fortunes where the health crisis threatens to exacerbate inequalities.

The economic consequences of the health crisis are harsh: massive unemployment, serial bankruptcies, impoverishment of the most vulnerable.

But for billionaires, the new world might look a lot like the old.

The assets of the UK’s one thousand largest fortunes have been reduced by £ 54bn ($ 68bn) in just two months from the impact of the pandemic, but remain at £ 743bn.

There are 147 billionaires in the country and London is its world capital, led by inventor James Dyson, known for his bagless vacuum cleaners, with an estimated fortune of £ 16.2 billion.

“Money keeps raining on top,” says Rowland Atkinson, a professor at the University of Sheffield in northern England and author of the book “Alpha City: How London Was Captured by the Super-Rich.”

Some billionaires have been accused during the health crisis of wanting to take advantage of public aid, resorting to loans or partial unemployment systems, to round off their businesses.

The Greenpeace NGO has accused Richard Branson, founder of Virgin, of not paying taxes in the UK for 14 years and now demanding that the government save his airline Virgin Atlantic.

After the coronavirus pandemic, the specter of a new decade of austerity emerges after the one caused by the 2008 financial crisis, which only reinforced inequalities to the detriment of the poorest.

The Boris Johnson government is currently spending tens of billions of pounds to cushion the shock and prevent excessive social harm.

But the deficit will skyrocket to nearly £ 300bn in a year and its funding will be a nightmare for conservatives, who have traditionally been reluctant to tax the wealthy.

Radical action

This time the government is going to have a hard time not involving the super-rich in the national effort to avoid excessive cuts in public services, after low-income workers, especially those in the health sector, have risked their lives in the fight against the covid-19.

“In the current context, I do not see political support for more public cuts,” says Arun Advani, a professor at the University of Warwick, in central England.

“The government has shown that it can do something radical now, such as financing partial unemployment or supporting the self-employed. I am optimistic that it will make new proposals to increase taxes” to the wealthiest, he tells AFP.

A YouGov poll released in mid-May showed that 61% of Britons favor a wealth tax on fortunes of more than £ 750,000.

Proof that anxiety is growing, the economic daily Financial Times organized a question-and-answer session for its readers last month about the operation of an wealth tax, which drew a record number of comments.

Richard Murphy, a professor at City University London, believes that the government has many tools at its disposal to tax the wealthiest without necessarily imposing a wealth tax.

Simply by taxing capital income more, to put it at the same level as labor income, £ 174 billion would be deposited in the public coffers every year. This would largely finance the annual health system budget of some £ 120 billion.

For Stanford University historian Walter Scheidel, major global disasters like wars and pandemics can make a profound difference and reduce inequalities.

This could be the case for the coronavirus, he defended in early April in an op-ed in the New York Times.

Germany will withdraw the warning not to travel to Europe, except for Spain and Norway

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Germany will withdraw the warning not to travel to Europe, except for Spain and Norway
Germany will withdraw the warning not to travel to Europe, except for Spain and Norway

The German Foreign Minister, Heiko Maas, announced on Wednesday that Germany will raise the recommendation on the 15th of not to travel abroad due to the coronavirus pandemic, although it will still maintain it for Spain and Norway.

“Spain and Norway are expected to allow tourists to enter somewhat later, and once they make the decision, we will apply it immediately,” the minister said of the German decision on Wednesday.

He recalled that in the case of Spain, his Parliament plans to debate today on an extension of the restriction on entry to the country until the next day 21. Once lifted, the same decision made for the rest of the countries will apply to Spain, he stressed.

In this way, this global warning not to travel, in force since mid-March, will be lifted in the middle of this month for 25 of the 26 partners of the European Union (EU), as well as three of the four associated with the Schegen area -, in this case Iceland, Switzerland and Liechtenstein-, in addition to the United Kingdom.

The warnings not to travel will be replaced by specific information on the situation in each country or region and will be updated “daily,” he said.

He noted that the decision has been made after “intensive consultations with European partners” and based on the “positive evolution” observed in terms of containing the pandemic.

He specified, however, that if the warnings against travel “are not prohibitions”, neither the indications that will be made now about each country should be understood as an “invitation” to travel.

“We must jointly prevent the revival of tourism from leading to a second wave” of infections, he added, and recalled that there is no need to rely on “false security”, because the pandemic is still there.

On the other hand, he expressed the hope of not having to reintroduce restrictive measures, although he pointed out that if more than fifty new infections are registered for every 100,000 inhabitants in seven days, it will be necessary to react and possibly re-issue a warning regarding to the affected region or country.

He also warned that this summer his ministry will not organize a repatriation of tourists stranded abroad.

Regarding countries that do not belong to the EU or are not associated with the Schengen area, Maas said that Germany will wait to know the decision that the European Commission (EC) must take this week.

Spain: The ruin of Social Security: its debt will amount to 9,700 euros per pensioner

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Spain: The ruin of Social Security: its debt will amount to 9,700 euros per pensioner
Spain: The ruin of Social Security: its debt will amount to 9,700 euros per pensioner

In the mid-1990s, the Social Security system was going through a serious crisis. From the PSOE government that Felipe González presided over, Spaniards were invited to save on private pension plans as a precaution against such drift. It should not be forgotten that between 1982 and 1996 hardly any employment was created in net terms, so that felipismo inherited a Spain with twelve million employees and delivered a country with a very similar number of employed persons.

The slow rise in Social Security income, actually supported by tax increases, contrasted with an increasing number of retirees, introducing new spending pressures. The system seemed to be on the way to bankruptcy and, after José María Aznar came to the government, the PP cabinet was forced to request a loan to meet Social Security’s payment commitments.

The intense job creation that occurred during Aznarism helped to rebalance the system and dispelled the phantoms of bankruptcy of pensions. Between 2004 and 2008, under the government of the socialist Rodríguez Zapatero, the positive balance of Social Security was maintained, although with an income component increasingly tied to employment generated by the housing bubble.

The collapse of the brick knocked down the illusion of prosperity of the first ZP legislature and led Social Security into a worrying drift. If in 2008 it still had a surplus of 1.3% of GDP, in 2010 it was already on the verge of deficit. Since 2011, the system has been in the red, with annual deficits that have been between 15,000 and 20,000 million.

The only way to continue paying pensions in such a situation was to use the Social Security Reserve Fund created by the José María Aznar government. This vehicle accumulated 66,800 million between the year 2000 and the 2011 academic year. However, the imbalances between contribution income and benefit expenses forced to empty that piggy bank between 2012 and 2019. Currently, there are only about 1,500 million in cash .

In fact, since these resources were no longer sufficient to offset the deficit of the system in 2016, Social Security debt has soared since 2017, rising from 17,000 to 50,000 million.

The impact of the covid-19

However, the 2020 accounts threaten to raise this figure to unprecedented levels. At the beginning of the year, the government already expected to inject 14,000 million to cover the extra payments for summer and Christmas, but the crisis of the covid-19 has caused a fall in revenue valued at another 14,000 million. To this second figure should be added the increase in spending on unemployment benefits, which will increase by 17,000 million.

It is true that the European reinsurance program that will finance the payment of ERTEs can mitigate these obligations by 15,000 million, but even discounting such item we find that the deficit of the system is going to double. Therefore, everything invites us to think that the 2020 course will close with obligations close to 85,000 million, equivalent to 9,700 euros per pensioner.

During the last fifteen years, the only attempt to reform the system was the introduction of the sustainability factor, promoted under the government of Mariano Rajoy. Under the years of the popular leader’s mandate, pensions experienced very moderate increases: 1% in 2012 and 2013, 0.25% in 2014, 2015 and 2016.

This system managed to stop the increase in spending and began to favor a turnaround in the system’s balance forecasts. However, this perspective was shattered in 2017, when the PP’s parliamentary negotiations with Cs and PNV ended in the revaluation of pensions under the CPI. Since then, increased spending on the system has only contributed to widening the Social Security deficit. The Covid-19 crisis comes, then, at the worst moment, since the only attempt to correct the imbalances of the pension fund was buried a few years before the outbreak of the pandemic.

H&M closes stores in the US out of solidarity with demonstrators

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H&M closes stores in the US out of solidarity with demonstrators
H&M closes stores in the US out of solidarity with demonstrators

H&M temporarily shuts down nearly a hundred of its stores in the United States because of the violent protests in the country. The clothing chain says it does so out of solidarity with the demonstrators.

H&M says he is “heartbroken” and “devastated” by the death of black detainee George Floyd and subsequent events. The chain promises to donate $ 500,000 (more than € 447,000) to human rights organizations and other groups.

Protests against the alleged racist police brutality have also led to shop looting. That happened yesterday, for example, in Los Angeles, New York and St. Louis.

H&M is the second largest fashion chain in the world. The company has six hundred branches in the US.

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