Global

The number of corporate bankruptcies may reach a 10-year high, and the U.S. economy is in a deep hole?

According to the latest report released by S & P, as of August 9, 424 U.S. companies have filed for bankruptcy this year, exceeding the same period level in any year since 2010. With novel coronavirus pneumonia attacks, the number of companies filing bankruptcy this year will hit a 10 year high. The impact of the epidemic on consumer companies is particularly serious. According to S & P, more than 100 U.S. consumer companies have filed for bankruptcy this year, including many well-known retailers such as Penney and Niman Marcus. < / P > < p > companies with high pressure are not limited to the retail industry. The novel coronavirus pneumonia data showed that nearly 100 companies in the industrial and energy sectors filed for bankruptcy due to heavy fuel demand and new oil prices, which were more severe than the beginning of the year, including car rental giant Hertz, shale oil and gas pioneer Chesapeake energy, etc. Of the companies that have filed for bankruptcy protection this year, 35 have more than $1 billion in debt. As of July 10, 26160 restaurants in the United States have been closed due to the epidemic, of which 60% are permanently closed. Shams, vice president of public relations at the California food and Beverage Association, said 30 percent of California’s restaurants are expected to be closed permanently. A similar crisis had occurred in 2008 and two or three years after 9 / 11, but this time it was even worse. According to the former CEO of Toys R US, the number of bankruptcies that should have occurred in 5-10 years has been reduced to one to two years, and there will be a second wave of bankruptcies next year. In the second quarter, the US GDP contracted by 9.5% month on month, with an annualized contraction of 32.9%. Whether from the strength or speed of contraction, it is unbearable. At the same time, the U.S. unemployment rate rose from 3.5% in February to 14.7% in April due to the suspension of non essential economic activities under the epidemic. Although the unemployment rate fell to 10.2% in July, the number of unemployed is still higher than the peak in the 2007-2009 recession. In the week ending August 1, more than 1 million people applied for unemployment benefits for the 20th consecutive week. During the great depression, economic activity in the United States shrank “only” 4% in 18 months, and the unemployment rate was 10%. Mark Zandi, chief economist at Moody’s Analytics, said the latest data showed that the U.S. economy “fell into a deep black hole” in the second quarter and “took a long time to climb out.”. The U.S. Congress and the U.S. Congress will face a serious risk of a double dip before the end of August. At present, the epidemic situation in the United States is still accelerating. According to the latest data from Johns Hopkins University, the cumulative number of confirmed cases in the United States has reached nearly 5.2 million, with more than 160000 deaths. Although the United States has the largest number of confirmed and fatal cases in the world, the U.S. epidemic may not be at the “worst stage,” according to U.S. epidemiologists. The threat of the epidemic will make the road of economic recovery in the United States even longer. US Federal Reserve Chairman Colin Powell said at a news conference recently that the U.S. economic outlook is full of uncertainty, and the economic outlook largely depends on whether the epidemic can be successfully controlled. Thomas Barkin, governor of the Richmond Federal Reserve, also said that the epidemic may turn the “hole” facing the US economy into a “deep hole”. He warned that outbreaks across the country were hampering the U.S. economic recovery. < / P > < p > “when the United States sneezes, the world catches a cold.” If U.S. policies used to push the world economy higher, it is now U.S. policies that threaten and drag down the world, Reuters said. The U.S. GDP accounts for about a quarter of the world’s GDP. The loss of jobs will lead to a decrease in consumer spending and a decline in imports. Poor economic conditions of enterprises will lead to a decline in equipment investment or inventory, which is usually produced outside the United States. Therefore, the weak US economy will have an impact on the economic recovery of other countries. According to Bai Ming, deputy director of the International Market Research Institute of the Ministry of Commerce, even if the U.S. economy recovers, the driving effect on the world economy will not be as significant as before. Gao Lingyun, a researcher at the Institute of world economics and politics, Chinese Academy of Social Sciences, told China news agency that the US economic recovery will be slower than market expectations and the rebound may not be as strong as expected. Under such circumstances, it is estimated that Sino US trade will hardly recover in the short term. According to Chinese statistics, Sino US trade in the first seven months of this year decreased by 3.3% year-on-year. Among them, China’s export to the United States was 1.56 trillion yuan, a year-on-year decrease of 4.1%. Over the same period, China’s imports and exports with ASEAN, EU, Japan and other major trading partners have achieved positive growth. Analysts believe that the global economic recovery needs new momentum and new markets. Countries in the world should adapt to the new global economic environment in the “post epidemic era” as soon as possible, and tap new market potential and economic growth points. How much fart is normal? How much harm does suffocating fart do to human body? How dare you hold your breath after watching it

Similar Posts