Markets were mostly subdued on Monday as gold hit a record high and investors weighed in on the government’s new travel restrictions, causing travel-related stocks to drop.
European markets were mixed, no more than 0.5 percent higher or lower, following the example of Asian markets. Futures on Wall Street predicted a modest rise in the markets when trading begins.
The yield on 10-year US Treasury bonds declined, a sign that investors were looking for security, and oil futures were modestly lower.
The spot gold price, which has been rising steadily since March, hit a record $ 1,944 an ounce on Monday. The price of gold generally rises amid financial uncertainty, and its recent rise reflected a number of factors, including concern over U.S.-China relations, the decline in the U.S. dollar amid Reserve stimulus efforts Federal and lower interest rates. The last time gold reached this level was after the 2008 financial crisis, again when the Fed flooded the economy with dollars to generate economic activity.
The abrupt decision by the British government over the weekend to order travelers arriving from Spain to isolate themselves for 14 days, citing an outbreak in coronavirus cases in that country, added to the uncertainty about restrictions on travel and caused the immersion of shares of companies related to travel. The British low-cost airline. EasyJet and the European travel agency You each lost more than 10 percent on Monday; IAG, the parent company of British Airways and Iberia, fell more than 7 percent.
In Asia, Japan’s Nikkei closed 0.2 percent lower, Hong Kong’s Hang Seng lost 0.4 percent, while China’s Shanghai Composite gained 0.3 percent. In South Korea, the Kospi index ended the day 0.8 percent higher.
The pandemic has jeopardized a vital artery in global finances: remittances sent to rich countries by migrant workers.
According to the World Bank, these payments, which support hundreds of millions of families worldwide, totaled $ 554 billion last year, more than three times the amount of development aid distributed by rich countries.
But as the coronavirus has sent economies into closure, people used to caring for family members at home have lost their paychecks, forcing some to depend on those who have depended on them. The bank estimates that remittances are likely to drop a fifth this year, representing the most severe contraction in history.
The fall equates to a catastrophe, increasing the certainty that the pandemic will produce the first global increase in poverty since the 1998 Asian financial crisis. Between 40 and 60 million people are expected to fall into extreme poverty this year, what the World Bank defines as living on $ 1.90 a day or less.
Less spending in the poorer nations means less economic growth for the world. Developing countries account for 60 percent of the world economy based on purchasing power, according to the International Monetary Fund.
In some countries, migrant workers can access unemployment insurance and other government programs. But in many countries, migrants operate in gray areas, without government protection and especially vulnerable to difficult times.
“Some people, naively or with good intentions, say that this Covid-19 democratizes us all, and we are all exposed to that equally,” said Mahmoud Mohieldin, an Egyptian economist who serves as the United Nations special envoy to finance sustainable development. “This is not true. The impacts are very disproportionate.”
As countries around the world tighten the rules on the use of masks, consumers demand more of their face covers. And companies are responding.
Inventors have dreamed up masks with motorized air purifiers, Bluetooth speakers, and even disinfectants that kill germs by heating the face cover (but hopefully not the face) to over 200 degrees. In South Korea, electronics giant LG has created a mask with fans that makes it easier to breathe.
In boutiques, patterned masks appear on mannequins, exquisitely paired with designer dresses. An Indian businessman said he spent $ 4,000 on a custom mask made of gold. And a French costume designer has filled Instagram with spooky designs that range from pterodactyls to dolls.
The need to innovate has been great in Japan, where masks were widespread even before the pandemic. On Takeshita Street in Harajuku, the mecca of youth fashion, shop windows are filled with masks ranging from playful (plush animal faces) to punk-inspired (studded leather straps and safety pins).
But while these masks may be in style, shoppers should be careful, said Kazunari Onishi, an infectious disease expert at the Graduate School of Public Health at St. Luke’s International University in Tokyo.
“If your priority is to reliably prevent infection, these masks will not protect your life,” he said, adding that even if you wear a mask, “you must maintain a safe social distance.”
When new visa restrictions confirmed that new au pairs preparing to come to the United States would not be able to enter the country, American families who hoped they would struggle to find replacements.
The current shortage of au pairs in the country has further highlighted the lack of affordable child care in the United States, to the point that young foreigners who wait for a year or two of cultural exchange have become lifelines, often unintentionally, for couples of two who want to keep both their jobs
“Almost everyone says it’s quite unlikely that you will get an au pair,” said Erin Burkhart, a high school teacher and host mother in the Seattle area, whose most recent au pair joined her family. germany summer. “The search process itself is a full-time job. At this time I will send an email to everyone, I will communicate with everyone. I’ve had about 15 video chats in the last week. “
On the other hand, while au pairs entering the program can speak to only two or three families in the initial interview process, candidates in the country are now listening to 10, 20, sometimes closer to 50 potential families. Even male au pairs, who often find it harder to match, are having an easy time. “Since they know they have no options, they are also accepting men for their families,” said an au pair from Brazil. “It’s not a big deal anymore.”
Many au pairs in the country now tell interested hosts that they are only willing to match in exchange for certain guarantees, such as a personal car or a payment of more than $ 400 per week. The minimum stipend for au pairs is $ 195.75 a week for a maximum of 45 hours of work, established by the State Department.
Host families have also taken note of the new dynamic: Examining some Facebook groups in mid-June, I found posts advertising benefits like unlimited public transit passes, new cars, access to beach houses and skydiving trips, and double of pay. “We are offering a $ 2,000 sign-in bonus,” wrote one parent.
