Hello im Adrian Finnegan and this is counting the cost on aljazeera a look at the world of business and economics this week brazils president s handling of the Coronavirus Crisis could see the economy slump to its worst performance since 1900. No longer recession proof more than 1000000 Health Care Jobs have been lost in the United States during the pandemic. A recession courts against bailouts and maybe finally a fiscal union will Angela Merkels 500000000000. 00 euro plan save the european union. The coronavirus pandemic hasnt spread a single nation or economy but the way some governments have handled the crisis has raised eyebrows brazils right wing populist leda jaya balsam out o. Has been dismissive about the Health Crisis and implored people to ignore State Government ordered lock downs and social distancing measures the result brazil has the 3rd highest number of confirmed corona virus cases behind the us and russia a study by Imperial College suggests that 700021 1000000 brazilians could die depending on measures taken to hold the progress of the pandemic its Health Care System has been decimated since 2017 brazils expenditure on its National Health service has been slashed by 4. 4 1000000000. 00 or slightly less than a 3rd of its current budget and its close to collapse under the sheer number of covert 19 patients now despite a stimulus package the economy is expected to contract 4. 7 percent this year thats the biggest fall since 1900 the situation is so bad the President Trump is considering banning brazilians from traveling to the United States also now has been criticized at home and abroad so how much damage will this do to the economy and its 209000000 people lets ask him about blanco shes the head of americas Risk Insights at various maple cruft and here in the joins us now via skype from what assad is good to have you with us so hes lost to Health Ministers his ratings have dropped 9 percent he belittled the pandemic and said so whats went questions on the loss of love loss of life and what are we to make of us handling of the crisis. Well overnight im think it will be surprising to say its been dismantle not only from a Health Care Perspective but from a political perspective as well its really laying bare the. Differences and the infighting that can happen in a federal system when you have the precedent setting on one side governor sign on another and people caught in between so the main risk for the brazilian economy right now its not only stemming from the high number you know the high infection rate the mortality thats in increasing quite quickly but also from the fact that governors may now decide to go into lockdown measures rather than a very flexible quarantines in an attempt to contain the pandemic and now those measures will come in a bit too late meaning that they would need to stay in place much much longer in order to deliver the type of response that has been delivered in other countries in the region so whats the economic problem for brazil secada be like so many populists so much worse was promised his boss not a delivered. Yes well i mean the tide is turning us well there with the public because you know over 50 percent of brazilians think that the economy is heading in the wrong direction and so this year it will certainly have a contraction the question is how deep will that contraction be and you know estimates range anywhere between 5 and a half to 8 points that would put it as the biggest contraction in the country in recent history and surpassing the contractions we experienced in brazils recent recession now the economy hadnt completely recovered from that recession so unemployment remains high and the risk of a significant increase in poverty levels also remains high and what about boston are as possible impeachment and these accusations of interference in police work what is that doing to Investor Sentiment well that clearly is the strongest threat to his continuation in power because that implies criminal charges and so any impeachment would go through the Supreme Court but lets not forget that there are 30 other impeachment requests that have been filed before congress so you know even if we were to remove the criminal charges theres increasing risk of the political tide turning against the president and his former on ice in congress deciding to cut him loose you know much earlier than you would have expected otherwise hes currently a president without a Political Party because he resigned his party and hasnt been able to form one so his ability to keep alliances in congress will be crucial and at the moment he seems to be burning bridges with pretty much anyone and just quickly before we end what weve got to hear argentinas debt the go see oceans. Accredits is ready to do a deal do you think well yes i think creditors are willing to enter a deal with argentina and. Has it will have been by the deadline of today so that formally the country will enter default d and now you know there could be a quick resolution lets not forget that the amount thats been defaulted on is just the 500000000. 00 considering that theres 65000000000. 00 to be renegotiated its a very small sum but the country could also be entering a very fragmented negotiation with a variety of groups of different timelines so its going to be a story that might be ongoing for the rest of 2020 here it really good to talk to are counting the cost many thanks indeed for being with us no problem thank you. Millions of jobs are being lost due to the coronavirus pandemic despite the saying that the virus doesnt discriminate it is having an unequal and devastating impact on low income workers immigrants and women but an altogether rather startling situation despite the pandemic is that medical personnel are losing their jobs and are serious shahab returns he reports. It hasnt gone unnoticed that even as the u. S. Salutes front line workers in this case with military flyovers at a conservatively estimated 60000. 00 an hour over at least 22 Cities Health care workers are being funded at a low rates due to a lack of foam and thats despite 100000000000. 00 in funding post by congress specifically to help medical providers preliminary estimates for april showed a loss of 1400000. 00 Health Care Jobs with 135000 hospital stuff such as revenue rich and elective surgeries and routine visits were canceled his data report and on the situation as well. So what were seeing today is what was going on in and around the middle so i certainly think i would not be surprised to see more losses when we see next month 317 stoffel find at this hospital in san diego those who remain say some of those were frontline kovan stone as with millions of others in the u. S. Then without their employer based Health Insurance when they may need it most everybody was still devastated were reeling from that. Everybody demoralized on the or is that right now and of course there were. A lot of. Or nurses and now theyre worried that after a 14. Day between 2 to 14 database and spirit what if they get infected and that we dont have insurance so. Its easy for a lot of. Executives. You know these Health Care Workers and theres a hero and then they can really just drop it like nothing but Palomar Health which runs the hospital said it had no choice not only is revenue down in areas not connected to the pandemic it isnt treating high numbers of patients on either meanwhile Health Care Workers who remain acing that hours on wages cut while fearing job loss and thats particularly so it will have been a little noticed but a growing sector in u. S. Medicine hospitals and medical staffing controlled by private equity firms wall street spent 100000000000 dollars on Health Care Assets in 2018 aloon private equities financial bubble is based on profits for investors that beat the rest of the market and thats made these assets particularly vulnerable now private equity has moved heavily into Laboratory TestingEmergency Rooms and this is the z. O. G. Radiology as well as specialist areas like orthopedics cornering regional markets to control pricing these are services that hospitals then contract out often unbeknownst to patients those Emergency Rooms are the ones that have been at the forefront. Of cutting salaries of cutting doctor salaries its the extreme form of a for profit system they are reacting quickly in order to get their money out to repay their investors before the organizations last wall street has also bought up hospitals across the country with heavily leveraged buyouts for example this is eastern hospital bought in 2015 by the private equity firm severus is Health Care UnitSteward Services worth 43000000000. 00 in media will immediately solve property. Now that means easton is immediately outsized rent property it since 8090 and you were to hit system has done that in all of the hospital. It buys littles across the country loaded them with that and immediately sells our property underneath them and pays themselves back to the net but eastons financial precariousness as a result of the buyout presented stood with an opportunity with the pandemic yet to hit stupid threaten to shut down the hospital the regions defense against cove at 19 with a loss of 694. 00 stuff if it didnt receive a government bailout a 40000000. 00 so far the governor has given the hospital and its private equity owners 8000000 dollars from federal kovac 1000 stimulus funds but the threat remains if wall street doesnt get the rest private equity says its not to blame it has high costs because of medical Insurance Companies it claims and its true Insurance Companies are already seeing and projecting healthy profits as a result of the pandemic but as the emergency continues while many flaws within the u. S. Of Healthcare System have been revealed increasingly there is a debate as to whether it is the for profit system itself. Its broken she every time see aljazeera lets find out whats going on with the jobs market with the show and. The cofounder and chief executive of get going to be fine on sap poor suffice good to have you with us weve seen some horrendous job losses whats it been like the gig economy workers its been tough all around where Mission Driven company we pioneered inclusive credit for people with non Standard Financial backgrounds and so of course one of our users are good economy workers and we have some data on them to see what the impact has been and i dated or analysis of that suggests that income is down 72 percent since lockdown began in the u. K. For old one of the workers and some of our customers that we speak they were having to repurpose their earnings to pay for essential bills instead of saving up for retirement as an example so its a very difficult situation and what that meant feel business. Current market. Traditional lenders are really tightening their lending standards at the moment and weve seen from our own data that theres been about a 50 percent decline in the value of loans being given to good economy workers and in this current climate where offering Flexible Credit Solutions using Cutting Edge Technology this s someones credit worthiness in real time rather than relying on static Credit Bureaus scores so we really do expect demand for our inclusive products to skyrocket as a result and if this crisis is anything like what we saw in q 1008 the overall market size of the gig economy may also grow and so those things you know from a purely business perspective are positive development for a business like ours how long is it going to take the full anyone a moment whos looking for work when will hiring restock would it be back to what it was before the pandemic i really wish i knew the answer to that one i think there are too many unknowns in the current at the current time to predict an exact timing of when we might see a reversal but i think there are a few lessons that we might be able to learn from history so if you look at the crisis of 20081 could estimate that the selfemployed and the get economy are going to play a vital part in any recovery that we might see for example in the u. K. Following the 2008 recession we saw that 80 percent of the new jobs created came from self employment and good work and so i think you can perhaps. Say that self employment a good work will be vital to a recovery although the exact timing is difficult to predict at this moment in time it is the young the eldest women ethnic minorities that have been the hardest hit by by job losses. What are we to make of that and how to wage sure that going forward. We make an economy that thats its more inclusive that its a great question and an important one so in our own analysis we actually seen that women are more likely to hold jobs that in the u. K. Are classified as essential work compared to men and so i think that while i do agree with you know the questions promise that the impact of kogut is going to be uneven and could potentially cause further inequality i do think were still really see how this is going to play out considering that the impact of furloughs and job losses are only starting to be to be felt but in any scenario what definitely remains true is that we as a society have an obligation to invest in then design Inclusive Services and thats not just in finance i think thats across health care and other industries and its and its certain that we do that is that were doing our part by partnering inclusive credit products that are fair and really recognize the financial worthiness of people and we hope that what were doing can inspire others to do similar things as well really good to talk to show many thanks indeed for being with us and counting the calls thank you very much europes biggest economy is back in recession a little over a decade since the last financial crisis but trouble was brewing for germany before the pandemic and like everywhere else was is yet to come the government has pledged one trillion euros to support the economy but its chancellor Angela Merkels radical 500000000000 euro plan to help fellow european nations that could face opposition and push the union towards another crisis aljazeera still that case reports. A show of European Solidarity by the 2 countries with its biggest economies vast financial grants not loans for the worst affected areas of the e. U. Obama says im still in europe to stand together which means we need to aim for a swift economic recovery thats why we want to set up an open and shut fund to the sum of 500000000000 euros this should cover each new Household Expenses not loans but expenses of the hardest hit sectors and regions where convinced that this is not only justified but also necessary to make money available on a european level which will then pay back in stages from the various european budgets with this proposal does face a few potential pitfalls 1st it must gain support from other countries and were clearly some southern Member States may very well agree with it notably the austrians and the dutch well they may take some convincing and then theres yet another potentially formidable obstacle for Angela Merkel her own countries through priem court which has just ruled that the German Parliament and government to fail to scrutinise the way german money is used by the European Central bank and set a deadline for ministers to provide evidence that what has been done so far is proportionate and constitutional if not the German Central Bank would have to withdraw from the European Public spending Payment Program and while that possibility is a few months away right now the coronavirus has plunged germany into recession the economy is projected to shrink by almost 10 percent in this quarter but ministers have just learned of a near 100000000000 euro shortfall in tax revenue in. One area that has traditionally been seen as crucial to the German Economy is the Automotive Industry around 800000 jobs depend on it and yet now that same sector is stalling many firms have placed staff on short working and some forecasters predict as many as 40. Scent of jobs may be cut when god. Is specially here in germany a lot of people think that we have reached the lowest point already that the worst is over but unfortunately the general perception does not correspond with reality the outlook for 2020 ladies and gentlemen is gloomy. Which is why the major merger manufacturers have sought special help from the government asking for a socalled cash for Clunkers Program allowing old vehicles to be scrapped and replaced with new aversions but so far ministers have not agreed but we have an economic shock that goes across the entire spectrum of the economy which for example its domestic restaurants probably much more much worse than it is the car indus