Breaking
France in recession as virus-hit economy shrinks 5.8 percent
The French economy officially fell into recession after contracting 5.8 percent in the first quarter, the national statistics office said Thursday, underscoring the massive toll of the country’s nationwide shutdown to curb the coronavirus outbreak.Even though the business closures and stay-at-home orders were imposed only the final two weeks of the quarter, the drop-off inactivity was a hammer blow that has put more than half of France’s private-sector employees out of work.
It was the worst quarterly performance since the Insee statistics agency began charting French gross domestic product in 1949, and follows a 0.1-percent decline in the last quarter of 2019 — meeting the definition of a recession as two consecutive quarters of contraction.
Insee said the drop was due mainly to the halt of non-essential activities since mid-March, underscoring a 7.3-percent collapse in household spending on goods — a drop that reached 17.9 percent in March alone.
The government has already said it expects an eight-percent contraction for the French economy this year as it prepares to start lifting the lockdown on May 11.
It has announced 110 billion euros ($120 billion) in financial aid and other relief for businesses, and President Emmanuel Macron has vowed that “no company would be abandoned to the risk of bankruptcy.”
But Finance Minister Bruno Le Maire told lawmakers Wednesday that “we must be realistic about the fact that once the shock has been absorbed,” there is a risk of a “cascade of failures” and a “severe” impact on unemployment.
In addition to the aid package, the government is guaranteeing up to 300 billion euros in loans for affected businesses.
Health vs growth
Entire sectors of the French economy have effectively been shut down, the Labour Ministry says, with nine out of ten workers in hotels and restaurants, as well as in construction now unemployed.
Business groups have warned that even with the loans and financial relief such as delayed payment of payroll taxes and other charges, thousands of small and midsize companies could be facing bankruptcy this year.
The government announced this week that if encouraging declines in COVID-19 cases continue, many businesses will be allowed to open on May 11, and some children will progressively start returning to class.
But bars, restaurants and cinemas will remain closed until June at the earliest, and companies are being urged to keep their employees working from home, to avoid a second wave of coronavirus deaths.
“We must protect the French without immobilising France to the point that it collapses,” Prime Minister Edouard Philippe said in announcing the measures this week.
The toll has also been heavy on France’s blue-chip companies, with top bank Societe General reporting Thursday a first-quarter loss of 326 million euros, its first quarterly loss since 2012.
The bank said it would cut costs by an additional 600 to 700 million euros this year to weather the crisis.
Tyre giant Michelin said late Wednesday that its sales slid 8.3 percent in the quarter to 5.3 billion euros, reflecting the worldwide slump in vehicle sales and construction activity.
Breaking
Senator Ifeanyi Ubah dies at 52
The Senator representing Anambra South in the National Assembly, Ifeanyi Ubah, is dead.
Ubah, who was the Chief Executive Officer of Capital Oil, was said to have died in a hotel in London, the United Kingdom, on Saturday.
He would have been 53 on September 3.
Senate spokesperson, Yemi Adaramodu, confirmed Ubah’s death to our correspondent on Saturday.
He said, “It’s confirmed, but I am sending an official statement soon.”
Ubah, who was re-elected into the 10th Senate under the Young Peoples Party, had last year defected to the All Progressive Congress.
In September 2022, Ubah escaped assassination when he was attacked by gunmen on his way to Nnewi in Enugwu-Ukwu in Anambra State.
Breaking
JUST IN: Edo state Assembly impeaches Deputy Governor Shaibu
The Edo State House of Assembly, on Monday, impeached the state’s Deputy governor, Comrade Philip Shaibu.
The impeachment followed the adoption of the report of the seven-man investigative panel set up by the Assembly to probe allegations of misconduct against Shaibu.
Breaking
JUST IN: Olubadan of Ibadanland, Oba Lekan Balogun joins ancestors at 81
The Olubadan of Ibadanland, Oba Lekan Balogun has joined his ancestors after a brief illness.
He joined his ancestors at the age of 81.
It was gathered that the late monarch was taken to the hospital Wednesday morning having stayed indoor throughout Tuesday on account of slight malaria fever, though, he was hail and hearty on Monday during which he personally received few guests that paid him congratulatory visits on his second year anniversary on that day.
Making this announcement was the Baba-Kekere Olubadan and his younger brother, Dr Kola Balogun in a statement by the Personal Assistant (Media) to the late monarch, Oladele Ogunsola.
According to the statement, Dr. Balogun disclosed that Oba Balogun would be buried at his Aliiwo ancestral home by 4.00pm on Friday according to Islamic rites just as he said that the State Governor Seyi Makinde, though already verbally informed, would be formally notified early in the morning.
The late Olubadan was the first most educated to have emerged as Ibadan monarch, a British trained P.hd holder, a former university lecturer, former member of management staff of Shell British Petroleum, former gubernatorial candidate of the defunct Nigeria People’s Party, NPP, former Senator and a successful business man.
His last official outing was the Olubadan Advisory Council’s meeting which he presided over last Saturday where the decision to derobed Mogaji Akinsola, Olawale Oladoja was taken.
He however, on Tuesday instructed the Ekerin Olubadan, Oba Hamidu Ajibade to midwife a small committee to deliberate on last Friday’s decision on what should be the position of Ibadan Zone in the proposed newly reconstituted Oyo State Council of Obas and Chiefs.
The decision of the small committee was earlier on Thursday ratified by the Olubadan Advisory Council at a meeting presided over by Otun Olubadan and the former governor of Oyo State, High Chief Rashidi Ladoja and was to be taken to the late Oba Balogun for his signature Friday morning so as to meet the deadline for submission to the state Commissioner for Local Government and Chieftaincy Matters later in the day.
The late Olubadan is survived by wives, children and grandchildren.
Announcing the passage of the monarch, Governor Makinde, in a statement, stated that Olubadan, who joined his ancestors late Thursday evening at the University College Hospital, UCH, Ibadan, described him as an epitome of royal excellence and a great achiever, who made great marks on Ibadanland in just a little over two years of his reign.
He expressed his condolences to the Olubadan-in-Council, the Oyo State Traditional Council and the people of Ibadanland and Oyo State, praying to God to grant repose to the soul of the deceased monarch.
Makinde said: “With total submission to the will of God, I announce the passing unto glory of our father, His Imperial Majesty, Oba Dr. Mohood Lekan Balogun, Alli Okunmade II, the 42nd Olubadan of Ibadanland.
“A mighty Iroko has fallen; Oba Dr. Balogun has joined the ancestors.
“In Kabiyesi, Ibadanland had a cosmopolitan and well-experienced Olubadan, who made indelible marks on the sands of history and achieved greatly within a short while.
“On behalf of the Government and good People of Oyo State, I condole with the immediate family of the Oba Dr. Balogun, the Olubadan-in-Council, the Oyo State Traditional Council and the people of Ibadanland.
“It is my prayer that God grants repose to the soul of our late monarch.”
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