GlobalVue™ September 2020 – Projecting 2021 Recovery
Since 2001, William Edwards has published the EGS GlobalVue™ country ranking analysis quarterly based on recent activities in countries, feedback from the in-country EGS GlobalTeam™ covering 43 countries and a continuous review of 40+ international information sources.
The September 2020 GlobalVue™ chart projects how countries will come out of the COVID-91 crisis in 2021.
A downloadable full version PDF covering 40 countries in the Americas, Asia, Europe, the Middle and Near East can be found at this link:
https://edwardsglobal.com/globalvue/
Key to 2021 economic recovery are the projected 2021 Gross Domestic Product growth, political and economic stability or lack thereof and the projected recovery from the pandemic. Of course, there is a high degree of uncertainty today especially as to the timing of a vaccine and political challenges in key countries.
Here are a few countries that are key to obtaining the OECD 5% GDP growth projection for the world in 2021.
| Australia | Mixed pandemic outcome, moderate 2021 growth |
| Brazil | Challenging pandemic outcome, improving economy |
| Chile | Mixed pandemic status, economy will grow in 2021 |
| China | Swift virus recovery, dual economy will have different 2021s |
| Germany | Controlling pandemic, may see 2021 government change |
| India | Huge pandemic impact, chaotic government response |
| Italy | Controlling pandemic, steps being taken on economy |
| Mexico | Poor pandemic response, anti-business government |
| Peru | Poor pandemic response, elections due soon |
| Taiwan | Positive virus control, expanding economy, China (?) |
| Philippines | Negative government pandemic management |
| South Africa | High unemployment, low new investment, corruption |
| Spain | Mixed pandemic response, but strong basic economy |
| Thailand | Pandemic tourism hit limits 2021 economic growth |
| Turkey | Democracy iffy, economy limping along |
| United Kingdom | Mixed pandemic management results and BREXIT |
| Vietnam | Tight virus control, offshoring from China impact |
EGS Biweekly Global Business Newsletter Issue 13, Monday, September 21, 2020
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
“There are two kinds of companies in this pandemic: those doing clever things to deal with the new world….and those who are not”, Pilita Clark
“Every major difficulty you face in life is a fork in the road. You choose which track you will head down, toward breakdown or breakthrough.”, John C. Maxwell
“The only way to make sense out of change is to plunge into it, move with it, and join the dance.”, Alan Watts, compliments of Sylvia Adler
“I asked a wise man, ‘tell me sir, in which field could I make a great career?’ He said with a smile, ‘be a good human being. There is a lot of opportunity in this area and very little competition”., Compliments of Brad Weinstein from a LinkedIn post
Introduction
This biweekly newsletter focuses on what is happening in more than 20 countries that impacts new trends, health, consumer spending, business investment and travel. A few highlights:
- This issue we start off by thanking the people around the world who help us curate for our newsletter readers.
- The US$88 trillion world economy by country in one chart
- What happens every minute on the Internet, Articles and Charts section
- Global Trade Returns Faster Than Expected
- U.S. to Lift COVID-19 Designated Airport Restriction
- U.S. Small-business owners gained confidence in the U.S. economy last month, outpacing expectations, according to data from a survey compiled by the National Federation of Independent Business (NFIB).
- We have added a new section that highlights what well-known brands are doing to survive and thrive in these times
We constantly monitor 30+ countries, 40+ international information sources and six business sectors to keep up with what is going on in this ever-changing environment. Our team on the ground covers 43 countries and provides us with updates about what is happening in their specific countries. Please feel free to send us your input and sources of information. Our contact information is at the bottom of this newsletter.
Many thanks to the people around the world who help us curate our global business newsletter for our 500 global readers:
Ursula Alexio, Brasil, Craig Allen, U.S.-China Business Council, Rym Bedoui, Tunisia, Paul Cairnie, Middle East, Enver Celikbas, Istanbul, Franz-Josef Ebel, Germany, Lauren Ellermeyer, California, Manal El Masry, United Arab Emirates and Egypt, Ferenz Feher, Mexico, Ichiro (Roy) Fujita, Japan, Jason Gehrke, Brisbane, Stewart German, Auckland, Paul Jones, Toronto and China, Robert Jones, Miami and Spanish speaking countries, Gabor Kaczmarczyk, Budapest, Ned Levitt, Toronto, James Liu, Greater China, Simon Lord, Auckland, Iain Martin, United Kingdom and Ireland, Tarsicio Merin, Madrid, Rajeev Manchanda, India, Sean Ngo, SE Asia, Sethaphong (Seth) Phadungpisuth, Bangkok, Gordon Schaeffer, UCLA, Don Southerton, South Korea, Andrew Stearns, Milan, Enrique Tellez, Panama, Norcia Ward-Marin, Colombia, Chris Wingo, Shanghai, Steven Wolfson, Israel, James Young, Melbourne, Rod Young, Sydney and our highly valued U.S. Commercial Service Trade Specialists in 24 countries.
This issue’s chart is the US$88 Trillion World Economy on One Chart
Global Economic Recovery Projections – GeoPolitical Futures, September 18, 2020
Sharp recovery in GDP per country in 2021
International Travel Updates
“U.S. to Lift COVID-19 Designated Airport Restriction: For nearly six months, travelers from certain COVID-19 restricted countries have only been able to enter the United States by passing through one of 15 designated airports and undergoing enhanced health screening. The restriction currently applies to those arriving from, or with recent presence in, China (excluding the Special Administrative Regions of Hong Kong and Macau), Iran, the Schengen region of Europe, the United Kingdom (excluding overseas territories outside of Europe), Ireland, and Brazil. The 15 designated airports are Boston Logan International, Chicago O’Hare International, Dallas/Fort Worth International, Daniel K. Inouye International Airport in Honolulu, Hawaii, Fort Lauderdale Hollywood International, George Bush Intercontinental Airport in Houston, Texas, Hartsfield-Jackson Atlanta International, John F. Kennedy International, Los Angeles International, Miami International, Newark Liberty International, San Francisco International, Seattle-Tacoma International, and Washington-Dulles International. The Center for Disease Control (CDC) has announced that starting on September 14, 2020, this restriction will be lifted.”, Airline Geeks, September 11, 2020
“Vigilance and trust essential if travel bans are to be lifted: If economies are to get moving again, governments will have to strike deals to allow people to cross borders without having to undergo extended periods of quarantine. Travel bans to protect populations from imported Covid-19 infections are preventing the resumption of international commerce and tourism, and cannot remain in place indefinitely. If economies are to get moving again, governments have to explore so-called travel bubbles by striking deals to allow people to cross borders without having to undergo extended periods of quarantine.
The challenge is ensuring that restrictions make communities feel safe, but are not so cumbersome that travellers are deterred.”, South China Morning Post, September 9, 2020
“These are the 40+ countries Americans can visit: Albania, Antigua and Barbuda, Aruba, Barbados Belarus, Belize, Bermuda, Brazil, Bosnia and Herzegovina, Costa Rica (some states), Croatia, The Dominican Republic, Egypt, El Salvador, French Polynesia, Honduras, Ireland (sort of), Jamaica, Kenya, Kosovo, The Maldives, Mexico, Moldova, Montenegro, Namibia, Nicaragua, North Macedonia, Panama, Rwanda, St. Barths, St. Lucia, Saint Maarten, St. Vincent and the Grenadines, Serbia, Seychelles, Slovenia (maybe), South Korea (sort of), Tanzania, Turkey, Turks and Caicos, Ukraine, United Arab Emirates (Dubai only), United Kingdom (sort of).”, The Points Guy, September 13, 2020 See this link for the ‘details’.
“Around the World, Flights to Nowhere Grow in Popularity: How much do you miss flying? Not, mind you, flying to a specific destination — just the act of boarding a flight and spending several hours in the air? With many countries restricting travel due to the pandemic, a new phenomenon has taken root in a few spots around the globe: the flight to nowhere.”, InsideHook, September 19, 2020
“Cathay Pacific and Prenetics to launch London-Hong Kong digital health passport in October in bid to ease travel: Cathay Pacific and Hong Kong start-up Prenetics are set to launch a digital health passport that allows travellers to show their negative Covid-19 test results on a mobile app before boarding, potentially easing international travel and establishing a new model to help airlines and airports ride out the health crisis. The pilot will kick-off on the Hong Kong-London route from October, Prenetics told the South China Morning Post. The partners are working in collaboration with Swiss-based non-profit The Commons Project, which is backed by the Rockefeller Foundation.”, South China Morning Post, September 18, 2020
“United Airlines Is Launching 3 New Nonstop Routes to Africa: Plus new flights to Bangalore and New Delhi in India and Kona and Maui in Hawaii. “We’re really focused on rethinking the network,” says Patrick Quayle, United Airlines’ vice president of international network and alliances. ‘We’re not just looking at adding everything back the way it was prior to the coronavirus, and so what we’re looking at trying to do is come up with more convenient travel.’ Part of that strategy includes launching new nonstop routes to Accra, Ghana, and Lagos, Nigeria, from Dulles International Airport in Washington, D.C. The routes will operate three times a week on Boeing Dreamliner 787-8s starting in spring 2021. The airline is also launching a year-round, daily nonstop from Newark Liberty International Airport to Johannesburg. When the route launches next spring, it will be the only roundtrip nonstop to the South African city operated by a U.S. airline. Typically, U.S. fliers heading to countries in Africa have to connect in Europe or the Middle East.”, Conde Nast Traveler, September 9, 2020
“Second Carnival Corporation Ship Returns To Cruising in Europe: The second Carnival Corporation cruise ship, Costa Diadema, is returning to service on Saturday, another sign that slowly but sure, the industry is getting back on track. Costa Diadema is among the first of Carnival Corporation’s ships to return to service. This is the second Costa Cruises’ ship to return to the sea with passengers.”, Cruise Radio, September 19, 2020
Global Trade Update
“Global trade is rebounding much more quickly this year than it did after the 2008 financial crisis, lifting parts of the world economy and defying predictions the pandemic could send globalization into permanent retreat. When the new coronavirus hit earlier this year, international trade in goods suffered the biggest year-over-year drop since the Great Depression. Economists warned of rising protectionism, and some companies said they would reassess overseas supply chains that were vulnerable to unexpected shocks. Trade remains below pre-pandemic levels. Still, it has snapped back robustly—and had recovered about half of this year’s historic loss by June, according to calculations by the Kiel Institute for the World Economy, a German think tank.”, The Wall Street Journal, September 21, 2020
Australia
“Victorian Government announces unprecedented $3 billion support for businesses: An extra $3 billion in cash grants, tax relief and cashflow support will be made available to Victorian businesses in a bid to keep them afloat during the extended coronavirus shutdown. In what Premier Daniel Andrews described as “the biggest package of business support in the history of this state”, more than $1 billion of that funding will support small and medium sized businesses that are most affected by the restrictions.”, News.com.au, September 13, 2020
“Australia’s COVID-19 hotspot on track for easing curbs, faces three lawsuits: Australia’s Victoria state on Wednesday said the daily rise in infections in its coronavirus hot spot of Melbourne has eased further, putting it on course to relax an extended hard lockdown in the city by the end of the month. Construction sites, manufacturing plants, warehouses and childcare facilities can reopen, allowing more than 100,000 workers to return to their jobs, if the 14-day rolling average is under 50 cases as of Sept. 28. The state has set a much tougher target of a 14-day average of five cases for lifting a nightly curfew, allowing people out of home for more than two hours a day, and reopening more businesses in Melbourne from Oct 26.”, Reuters, September 15, 2020
Canada
“Air Canada to Offer Travelers Free COVID-19 Insurance: Air Canada (AC) will offer complimentary COVID-19 insurance in partnership with Manulife, a Canadian insurance company, to travelers with new international trip bookings made in Canada between September 17 and October 31, 2020, with the coverage applying to travel completed by April 12, 2021.”, Airways magazine, September 20, 2020
Canada
“Ottawa extending its widely criticized pandemic rent-relief program: Ottawa will extend its widely criticized pandemic rent-relief program for small businesses for a final month as officials weigh options to overhaul it. Finance Minister Chrystia Freeland confirmed the news in a press release Tuesday. The Globe and Mail first reported on Saturday that the program would be extended through September while Ottawa considered changing its structure. Many small businesses saw revenue collapse immediately as jurisdictions entered pandemic lockdowns in March. Main Streets all over the country are now dotted with for-lease signs as entrepreneurs spent the past six months struggling to keep up with fixed costs – the biggest of which is usually rent. Ottawa announced the Canada Emergency Commercial Rent Assistance (CECRA) program in late April to help with these costs by offering landlords forgivable loans worth half their tenants’ rent if they absorbed a quarter of the rent and the tenants paid the final quarter. But the program required that landlords make the application – and very few did.”, The Globe and Mail, September 8, 2020
Mainland China
“China economy’s broad recovery from coronavirus continues, as retail sales grow for first time in 2020: Industry, retail and investment all showed marked improvements in August, as the Chinese economy continued its broad-based recovery from the ravages of the coronavirus earlier this year, according to new data released by the National Bureau of Statistics…”, South China Morning Post, September 14, 2020
“Chinese Car Sales Rise at Fastest Rate in More Than Two Years: Heavy discounts and new-model debuts propel a second-half recovery in the world’s largest auto market. Retail passenger-car sales in the country increased by 8.9% last month from a year earlier to 1.7 million vehicles, the China Passenger Car Association said Tuesday, marking the strongest rate of growth since May 2018. It represented the second straight month in which sales outpaced those of the same month last year. Car sales to individual customers had declined by 3.4% in the April-to-June period compared with a year earlier before bouncing back in July with a year-on-year increase of 7.7%.”, The Wall Street Journal, September 8, 2020
“Occupancy Rates for China’s Hotels Show First Year-Over-Year Growth Since Pandemic’s Start: Even if recent occupancy gains are tied to a blip in the holiday calendar, Chinese hotels continue to see a coronavirus economic recovery pattern that is the envy of the world.”, Skift, September 18, 2020
“China’s retiring ‘baby boomers’ a shot in the arm for tourism, fitness and insurance sectors: Credit Suisse: China’s “baby boomers” are nearing retirement and will spend more on travel, health foods and commercial insurance than earlier generations, according to Credit Suisse. The upcoming retirement of about 245 million people – about a fifth of China’s population – will lead to business opportunities for a host of industries, the Swiss investment bank’s China Quantitative Insight (CQi) team said in a report recently. Much like the United States after the second world war, China witnessed a spike in birth rates in the 1960s following the end of the Great Famine. This was a lucky generation, entering adulthood when China began its great reform and opening up in 1978 that would eventually led to the economy ballooning 90 times in the following four decades.”, South China Morning Post, September 14, 2020
“AmCham China Charter Flight Arrives in Beijing: History was made on Sunday as AmCham China’s Back to Work Charter Flight became the first such flight from the US to fly directly into Beijing since the pandemic began, as well as the first multi-company charter flight from any country to fly directly into the capital, as 87 passengers made the trip from San Francisco. The charter flight – a Boeing 787-9 aircraft – has been months in the making since China first effectively closed its borders to foreign nationals at the end of March. Since that moment, the Chamber has led extensive efforts to bring member executives and their families back to China, first through surveying the wider membership to find out where the most members were located, and then through lengthy negotiations with key stakeholders, most notably the Beijing government, who gave the green light for this charter flight at the end of August.”, AmCham China, September 14, 2020
Colombia
“Spirit Airlines Becomes First International Carrier to Resume Operations to Colombia
From Sept. 19, Spirit Airlines will restart direct flights from Fort Lauderdale-Hollywood International Airport (FLL), to Cartagena, Colombia. Spirit will be the first international airline to resume operations to Colombia. This flight will arrive to Cartagena at 12:36 (UTC-5) and would leave again to Fort Lauderdale at 13:36 (UTC-5). Additionally, Spirit will restart flights from Bogotá, Medellín and Cali to Fort Lauderdale from Sept. 21.”, Airline Geeks, September 20, 2020
El Salvador
“Avianca To Resume Its International Operations From El Salvador: After more than six months without operations due to the COVID-19 pandemic, Avianca has announced it is ready to gradually resume its flights from its hub in El Salvador on September 19, once the authorities allow the arrival and departure of international flights to the country.”, Airline Geeks, September 14, 2020
France
“France tries to salvage failed StopCovid tracing app as cases surge: When the pandemic was raging across Europe last spring, many politicians and health experts were optimistic that a new generation of tracing apps could eventually help keep COVID-19 at bay. France was one of the many countries to seize on this idea, but its controversial approach has failed to have an impact and is instead becoming a cautionary tale. In a report issued this week, a national committee charged with reviewing the nation’s COVID-19 response called for the government to reinvest in promoting the app, which has so far generated few notifications. In theory, someone who has the app installed on their smartphone will receive a notification if they have recently crossed paths with someone who reported a positive diagnosis via the same app.”, Venture Beat, September 18, 2020
Israel
“Emirates to Begin Flights Between UAE and Israel: As relations between the United Arab Emirates and Israel continue to improve, Emirates has received approval to launch flights from Dubai to Tel Aviv.”, Airlines Geeks, September 18, 2020
“Israel marks Jewish New Year with second lockdown: Israel is entering a second nationwide lockdown to curb surging coronavirus cases, just as people begin to mark the start of Jewish New Year. Rosh Hashanah is traditionally a time for big, family get-togethers. But under the new three-week lockdown, Israelis must stay within 1km (0.6 miles) of their homes, with exceptions, and the number of people allowed in synagogues has been greatly reduced.”, BBC News, September 18, 2020
Italy
“Rome Fiumicino Airport Awarded 5-Star SkyTrax COVID-19 Airport Rating: The COVID-19 pandemic that has wreaked havoc on commercial aviation over the past months has caused the traveling public to modify the parameters used to evaluate the service they receive when they board an aircraft or they transit through an airport. Therefore, SkyTrax Ratings — the World Airline and Airport Star Rating program that has been providing their ratings since 1999 — has launched a new airport ranking aiming to evaluate airport based on its COVID-19 procedures and facilities.”, Airlines Geeks, September 21, 2020
Japan
“Tokyo lowers alert level as coronavirus fears ease: Tokyo’s government on Thursday dropped its coronavirus alert by one notch from the highest level as cases continue to trend down, opening the path for a loosening of restrictions on night-time activity. ‘Regarding the infection situation, we have lowered one level down to orange from the highest level of red. But, we need to be cautious about increases again,’ Tokyo Governor Yuriko Koike said at a coronavirus response meeting.”, Reuters, September 10, 2020
New Zealand
“New Zealand ends all pandemic restrictions outside main city of Auckland: New Zealand Prime Minister Jacinda Ardern on Monday lifted all coronavirus restrictions across the country, except in second-wave hotspot Auckland, as the number of new infections slowed to a trickle. Some restrictions were also eased in Auckland to allow gatherings of up to 100 people, but the country’s biggest city needed more time before all curbs could be lifted, Ardern said.”, Reuters, September 20, 2020
Peru
“Peruvian Government Announces Oct. 1 Restart of International Flights: Peruvian Minister of Transport and Communications Carlos Estremaydoro indicated that the country’s sanitation protocols necessary to begin international service will be defined this month in concordance with the Ministry of Foreign Trade and Tourism, the Ministry of Foreign Affairs, the Ministry of Economy and Finance, and airlines representatives. As a result, airlines should be able to begin international flying on Oct. 1.”, Airline Geeks, September 8, 2020
Singapore
“Singapore August exports rise 7.7% year/year, higher than forecasts: Singapore’s August non-oil domestic exports (NODX) rose 7.7% from a year earlier, beating forecasts, official data showed on Thursday, helped by items such as non-monetary gold and specialised machinery.”, Reuters, September 17, 2020
“Singapore rolls out Covid tracing tokens: Singapore is distributing thousands of devices that can track where a person has been and who they have interacted with. The small bluetooth device is meant for those who do not own smartphones and cannot use a contact tracing app that was previously rolled out by the Singapore government. While there are some concerns over about data protection, authorities say the token helps vulnerable groups to feel safer when out and about. For instance, the token helps elderly people keep a precise record of their whereabouts.”, BBC News, September 19, 2020
Sweden
“Sweden beating coronavirus with herd immunity, expert claims: Evidence is mounting that Sweden has beaten the coronavirus epidemic with herd immunity rather than lockdowns, according to a renowned expert on the spread of disease. Sweden’s infection rate has remained low and stable at a time when other European countries are facing a strong resurgence. In Britain there are 69 cases per 100,000 people compared to just 28 for every 100,000 in Sweden which did not implement stringent lockdown measures this spring. The infection rate in France is almost seven times higher than in Sweden and the virus is ten times more prevalent in Spain, both countries that implemented strict lockdowns.”, The Sunday Times of London, September 21, 2020
Thailand
“Thailand Woos Tourists With A New Long Stay Visa: The popular Asian destination has seen a reduction of Covid-19 cases and wants to welcome back foreigners. On 15th September 2020 the Thai Cabinet, as proposed by the Ministry of Tourism and Sports, created a new “special tourist visa” for long-stay visitors. One precondition, which is certainly achievable by most, is to agree to a 14 day state quarantine on arrival in Thailand. To qualify for the visa, long-stay visitors are required to show evidence of accommodation beyond the quarantine period. This can be in the form of hotels or other licensed lodging, so long as they comply with the health stipulations as mandated by the Ministry of Public Health.”, Forbes, September 17, 2020
United Kingdom
“The economy recorded its third consecutive month of growth in July, growing 6.6 per cent month-on-month, according to data released this morning by the Office for National Statistics. City economists had forecast a 6.7 per cent month-on-month rise in gross domestic product (GDP), following 8.7 per cent month-on-month growth in June. More than two thirds of the growth came from service industries — including pubs, restaurants and hotels — as lockdown restrictions eased, the ONS reported. Despite the growth, however, the ONS calculates that the UK economy is still 11.7 per cent smaller than in February, before the full impact of the coronavirus hit.”, The Times of London, September 10, 2020
“UK’s Johnson to levy 10,000 pound fine on COVID-19 rule-breakers: People in England who break new rules requiring them to self-isolate if they have been in contact with someone infected with COVID-19 will face a fine of up to 10,000 pounds ($12,914), Prime Minister Boris Johnson said on Saturday.”, Reuters, September 19, 2020
“Downing Street threatens to shut bars that let in too many people: Chief Medical Officer Chris Whitty will warn this morning that the nation is at ‘a critical point in the pandemic’. Last night Downing Street warned the UK is ‘in the last chance saloon’ as coronavirus cases continue to rise. Boris Johnson expected to set out plans for new restrictions this week which could last for up to six months. Health Secretary Matt Hancock was today unable to guarantee that pubs will still be open at the weekend.”, The Daily Mail, September 21, 2020
United States
“U.S. Small Business Optimism Up In August: Small-business owners gained confidence in the U.S. economy last month, outpacing expectations, according to data from a survey compiled by the National Federation of Independent Business (NFIB). The NFIB Optimism Index rose 1.4 points in August to 100.2, slightly above the historical 46-year average. Seven of the 10 Index components improved, two declined, and one was unchanged. The NFIB Uncertainty Index increased two points in August to 90, the second-highest reading since 2017. “Small businesses are working hard to recover from the state shutdowns and effects of Covid-19,” said NFIB Chief Economist Bill Dunkelberg. “We are seeing areas of improvement in the small business economy, as job openings and plans to hire are increasing, but many small businesses are still struggling and are uncertain about what the future will hold.’”, Franchising. Com, September 17, 2020
“Study Finds Consumers Returning To Stores, But Shopping Habits Have Changed: As Covid-19 lockdown measures continue to be scaled back around the world, almost three-quarters of global consumers (71%) now report feeling comfortable returning to physical stores, according to research by Mood Media entitled ‘Shopper Sentiments: A September 2020 Global Mood Survey.’ But their shopping habits have changed and they see a “return to normal” as still being a ways off.”, Franchising.com, September 9, 2020
“Planning to fly for the holidays? 6 things to know before you book: Airfares may be much lower, but passengers who book for Thanksgiving or Christmas should make backup plans, too…. For those willing to buy a ticket, the flying future is shifting in more dramatic ways, too—for this season and beyond.”, Fortune, September 19, 2020
Brand News – a new section highlighting what major brands are doing to survive and grow in these times
“Burger King unveils ‘touchless’ store concept with suspended kitchens, conveyor belts and canopies: Burger King has unveiled a new ‘touchless’ concept store, designed to meet the challenges of doing business during a pandemic, and adapt to the ‘new normal’. The new stores will feature physically contactless experiences, such as mobile ordering and curbside pick-up areas, as well as drive-in and walk-up order areas. ‘In March our in-house design and tech team accelerated new restaurant design plans and pushed the limits of what a Burger King restaurant could be,’ said Josh Kobza, COO at Restaurant Brands International. ‘We took into consideration how consumer behaviours are changing and how our guests will want to interact with our restaurants. The result is a new design concept that is attractive to guests and will allow our franchisees to maximise their return.’ The ‘touchless’ store is expected to provide multiple ordering and delivery modes, and boast a physical footprint 60% smaller than a traditional Burger King restaurant.”, Smartcompany.com.au, September 8, 2020
“Chili’s parent company CEO says new virtual delivery-only restaurant first of other, similar concepts: Brinker International, parent company of Chili’s and Maggiano’s, discussed the concept behind It’s Just Wings during calls with investors and the media, Restaurant Business Online reports. According to him, the delivery-only restaurant is just the first of a developing portfolio of similar concepts that the company is developing. It’s Just Wings is reportedly already generating revenue at an annual rate that will exceed $150 million. The delivery-only restaurant uses kitchens across various Chili’s and Maggiano’s restaurants and makes deliveries through DoorDash, MarketWatch reports.”, Fox Business, August 16, 2020
“Chipotle’s Chief Says the Online Boom Will Outlast the Pandemic: CEO Brian Niccol wants to protect employees, but won’t require them to get vaccinated. As the pandemic made people hesitant or unable to eat inside its restaurants, Chipotle Mexican Grill Inc. saw its online orders and delivery business take off. CEO Niccol thinks much of that digital business is here to stay.”, Bloomberg, Businessweek, September 16, 2020
“Starbucks continues on the road to recovery as sales performance is almost completely back to normal in China; with flat sales in August representing a major improvement from negative 10% sales in July, according to chief financial officer Patrick Grismer who gave an update on the company at the J.P. Morgan Gaming, Lodging, Restaurant & Leisure Management Access Forum. Starbucks’ U.S. performance, however, has a longer road ahead, and Grismer predicted that it will take six more months to completely recover. Sales incrementally improved from negative 14% in July to negative 11% in August as the company continues to reopen cafes and dining rooms. At this point, about 3% of their stores remain closed, and about half of the stores have seating available. Grismer noted that at cafes that have opened, drive-thrus — which represent about 60% of the company’s portfolio — have boosted sales significantly at a time when food traffic is still low. ‘We’ve seen that as we’ve progressively opened our ordering and sales channels, from drive-thru to entry way pick-up to in-store ordering and seating, sales have improved and they’re continuing on that path,’ Grismer said. ‘Looking ahead, we expect three key initiatives will fuel our future recovery in the US: first, the deployment of handheld POS at the drive-thru; second, the roll-out of curbside pick-up where we have convenient parking; and third, today, the launch of Stars for Everyone.’”, National Restaurant News, September 16, 2020, compliments of Paul Jones, Jones & Co., Toronto and China
“This week Texas Chicken™ (Church’s Chicken™) had a virtual conference success story. While everything seems to be online nowadays, being online isn’t always negative! Texas Chicken hosted a multi-day International Virtual Summit that spanned 16 time zones while promoting a “Stronger Together” theme to unite teams worldwide. The event brought franchisees, corporate brand leadership, and field team members together to celebrate their alignment on strategic goals accompanied by an energetic display of faces on a single platform. Through this event, Texas Chicken honored their people worldwide through various awards. ‘We respect and recognize our international franchisees in the 26 countries in which we operate. Their commitment and ability to face the challenges of 2020 is worthy of applause and recognition,’ said Joe Christina, Chief Executive Officer.”, Franchising.com, September 14, 2020, compliments of Brianne Barbakoff, Ink Link Marketing
Articles And Charts About Doing Business in The Times Of COVID-19 and Beyond
“Here’s What Happens Every Minute on the Internet in 2020: Data never sleeps”, Visual Capitalist, September 15, 2020
“The Shape of Economic Recovery, According to CEOs: Is the glass half full, or half empty? Whenever the economy is put through the ringer, levels of optimism and pessimism about its potential recovery can vary greatly. The current state mid-pandemic is no exception. This graphic first details the various shapes that economic recovery can take, and what they mean. We then dive into which of the four scenarios are perceived the most likely to occur, based on predictions made by CEOs from around the world.
“It’s Go Time for Digital Transformation: If people had doubts about the new capabilities that companies everywhere are implementing as part of digital transformations, the response to the COVID-19 crisis appears to have put them to rest. The vast majority of both managers and employees believe that these capabilities helped counter the effects of the pandemic and will aid businesses in getting back on their feet once the crisis is over, according to a new survey commissioned by Boston Consulting Group.”, August 4, 2020
“What 12,000 Employees Have to Say About the Future of Remote Work: Although the COVID-19 pandemic has led to economic, health, and social devastation, it has also created an unprecedented opportunity: to run the world’s biggest-ever workplace experiment. This experience is yielding fascinating insights that have significant implications for the way we should organize work. To assess employee sentiment on these changes, from the end of May through mid-June we surveyed more than 12,000 professionals employed before and during COVID-19 in the US, Germany, and India.”, Boston Consulting Group, August 2020
Who We Are And What We Do
Edwards Global Services, Inc. (EGS) provides a complete International solution for U.S. businesses Going Global. From initial global market research and country prioritization, to developing new international markets and providing operational support around the world. Our U.S. based executive team has experience living and working in many countries. Our Associate network on the ground overseas covers 40+ countries.
Founded in 2001, Edwards Global Services, Inc. (EGS) takes U.S. businesses global and currently has activity in 25 countries. Our Clients are all consumer-faced brands. Edwards Global Services, Inc. (EGS) has twice received the U.S. President’s Award for Export Excellence
Find out more about the services we provide U.S. companies Going Global at: www.edwardsglobal.com
William Edwards, CFE, is CEO and Global Advisor of Edwards Global Services (EGS). He has 46 years of international operations, development, executive and entrepreneurial experience and has lived in 7 countries. With experience in the franchise, oil and gas, information technology and management consulting sectors, he has directed projects on-site in Alaska, Asia, Europe and the Middle and Near East. Mr. Edwards advises a wide range of companies on early to long term global development of their brands.
For global cross business sectoral updates and advice, contact Mr. Edwards at bedwards@edwardsglobal.com or +1 949 224 3896.
EGS Biweekly Global Business Newsletter Issue 12, Tuesday, September 8, 2020
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
“A man does what he must – in spite of personal consequences, in spite of obstacles and dangers and pressures – and that is the basis of all human morality.” Winston Churchill
“Oh yes, the past can hurt. But you can either run from it, or learn from it.”. Rafiki, from ‘The Lion King’
I have not failed. I’ve just found 10,000 ways that won’t work.”, Thomas A. Edison
Introduction
This issue is coming out on a Tuesday due to the Monday USA national holiday.
This issue focuses on what is happening in more than 20 countries that impacts new trends, health, consumer spending, business investment and travel. A few highlights:
- The 40+ sources of information we monitor and curate for this biweekly newsletter are listed below
- The DLA Piper Guide To Going Global Series for 2020 is a powerful database on how to doing business in 54 countries. August 2020
- Visualizing The Social Media Universe in 2020 graphically displaying the 21 top social media networks worldwide
- For much needed fun in these times, scroll down to Sweden: “A Tiny Record Store For Mice Has Arrived In Sweden”
- Projected World Population 2100: “Will the global population surpass 10 billion by the end of the century?
Sources of Information for the EGS Biweekly Global Business Update Newsletter
We constantly monitor 30+ countries, 40+ international information sources and six business sectors to keep up with what is going on in this ever-changing environment. Our team on the ground covers 43 countries and provides us with updates about what is happening in their specific countries. Please feel free to send us your input and sources of information. Our contact information is at the bottom of this newsletter.
This issue we start off by listing some of information sources we currently monitor worldwide and then curate for our newsletter readers. Here are the sources we currently monitor:
ABC News, Airline Geeks, airwaysmag.com, AmCham China, Associated Press, Australian Retail Association, Axios, BBC.com, The Bangkok Post, Bloomberg, Boston Consulting Group, British Museum Friends, Business Insider, caixinglobal.com, Conde Nast Traveler, CBS News, CNBC, CNN Traveler, The Daily Mail, The Daily Telegraph, Denver Business Journal, Deutsche Bank Research, District Export Council, The Evening Standard, EdgeDweller.net, Economist.com, Economist Intelligence Unit, Executive Next Practices (ENP), Fast Company magazine, ft.com, Forbes, Fox News, Franchise.com, The Franchise Advisory Centre (Brisbane), Franchise New Zealand magazine, FUNG Business Intelligence Group, The London Guardian, Geopolitical Futures, Global Chamber, The Globe And Mail, Global Franchise magazine, INC.com, The Independent, iMore.com, John Wiley & Sons Legal firm, LinkedIn, Lonely Planet, McKinsey & Company, Mexico Business Daily, Miami Herald, Nation’s Restaurant News, National Geographic, New Zealand Herald, thepointsguy.com, Radio.com, Reuters.com, The Singapore Times, skift.com, Sky News, South China Morning Post, Stratfor, The London Sunday Times , Tech Republic, Travel + Leisure, The Times of London, Timeout UK, USA Today, Viator, Visual Capitalist, wsj.com, The Washington Post, Wilson Perumal & Company, WIRED magazine, World Affairs Council, World Bank, World Economic Forum, Yahoo Finance and 9to5MAC.
Visualizing The Social Media Universe in 2020
“Take a look at how social networks compare in terms of monthly active users (MAUs)—an industry metric widely used to gauge the success of these platforms.”, Visual Capitalist, August 28, 2020
Go to this link to see a graphical presentation on the social media universe today covering the 21 largest social media networks and their details.
International Travel Updates
“Just How Risky Is It To Fly In A Pandemic? Although borders are now open between some countries and domestic flights available, many travelers are still afraid to fly. The thought of being in an enclosed space like an aircraft with a bunch of strangers can seem counter-intuitive, despite all the reassurances from airlines. Studies have been done about the spread of disease in the past, but documented cases of passengers contracting a serious illness on an aircraft are rare. Before COVID-19, there were also no flights where everyone, including the crew, was wearing a mask or such care was taken over cleaning the aircraft. A study from scientists led by Professor Arnold Barnett at MIT recently looked into the risk of catching COVID-19 on a flight.”, Forbes, August 27, 2020
“United CEO says air travel demand will roar back once there’s a coronavirus vaccine: “We’ve got a tough year ahead until there’s a vaccine,” Kirby answered. ‘The good news is, I can see the light at the end of the tunnel.’ This is the world of Kirby a little over 100 days into his tenure as CEO. Despite aggressive cost cuts, United is still burning through an estimated $40 million every single day. The airline has parked about 40% of its fleet and could cut up to 36,000 jobs starting Oct. 1. As bleak as the outlook is for United and the airline industry as a whole, Kirby believes demand will come roaring back once there’s a vaccine for Covid-19.”, CNBC, August 31, 2020
“How Airports, Hotels, and Restaurants Are Embracing the New Normal: Once-familiar spaces have seen big changes in the past few months. Even more innovations are coming soon — and that’s nothing but a good thing. If you ventured out recently, you already know the drill: masks, gloves, and hand sanitizer, plus plexiglass screens and more frequent cleaning at airports, hotels, and restaurants. But deeper changes will soon complement the quickly implemented hygiene protocols and MacGyver-style hacks introduced this spring and summer.”, Travel + Leisure, September 7, 2020
“How clean is the air on planes? High-tech filters and low-tech masks: How technology and personal responsibility might make flying safer than you think….. Thanks to HEPA filters and efficient circulation on commercial aircrafts, the air you breathe in flight—though not necessarily entirely virus-free—is much cleaner than the air in restaurants, bars, stores, or your best friend’s living room. Here’s why you don’t need to fear the air up there.’, National Geographic, August 28, 2020
“SAS Set to Operate Entire Network This Fall: Scandinavian Airlines (SAS) is slated to boost the number of flights it will operate and reinstate more destinations in Europe, the U.S. and Asia throughout autumn as the airline continues to see a rise in demand for travel and transport to, from and within Scandinavia. Scandinavia’s ‘domestic”’ flights — those within Sweden, Norway and Denmark — will cover almost the airline’s entire pre-COVID-19 network when it resumes flights from Stavanger, Norway to Trondheim, Norway and from Stockholm to Ronneby and Sundsvall, both in Sweden. With the flight expansion, SAS will increase accessibility and maintain essential air service to small communities in Scandinavia.”, Airline Geeks, August 31, 2020
“China calls for U.S. visitors to show negative COVID-19 tests: China will demand that passengers taking direct flights from the U.S. provide negative coronavirus test results within 72 hours before takeoff starting Sept. 15, China’s U.S. embassy said in a statement. People who transit in the U.S. ahead of a flight to China will be asked to submit health declarations to airlines or hold a green health code, per the statement.”, Axios, September 5, 2020
“American, Delta and United plan to add 15 long-haul international routes in September: American Airlines, Delta Air Lines and United Airlines will resume as many as 15 long-haul international routes in September, even as the return of flights during the coronavirus pandemic slows. If schedules hold, Accra (ACC), Barcelona (BCN), Buenos Aires (EZE), Lagos (LOS), Mumbai (BOM) and Rome (FCO) are all due to see their first U.S. airline-operated flights since the pandemic began. However, as in months past, the plans remain subject to change until flights are actually in the air. For example, American and United’s flights to Hong Kong remain suspended due to local COVD-19 testing concerns. The Star Alliance carrier has postponed plans to add flights between Chicago O’Hare (ORD) and Hong Kong this month after a more than year-long hiatus.”, The Points Guy, September 2, 2020
“Airlines urge UK, U.S. to start London-New York passenger testing trial: Major airlines want the U.S. and British governments to launch a passenger testing trial for the coronavirus for flights between London and New York to pave the way for a resumption of more international travel. In a letter to government transportation officials seen by Reuters, the chief executives of Airlines for America, Airlines UK, Heathrow Airport and Virgin Atlantic Airways said both governments should “establish passenger testing solutions in air travel. ‘We believe that in the immediate absence of a vaccine, testing of passengers in aviation provides the best and most effective frontline defense.’ They urged the governments to establish a testing trial between New York and London by month’s end ‘to gather real world evidence and data.’”, Reuters, September 3, 2020
“Etihad to provide COVID-19 insurance to passengers to boost travel confidence: Abu Dhabi’s Etihad Airways on Monday said it would cover medical and quarantine costs for passengers if they contract the new coronavirus after traveling on one of its flights. Medical costs of up to 150,000 euros ($177,000) and quarantine costs of up to 100 euro a day for 14 days will be covered by Etihad for its passengers who contract the disease within 31 days of first travel.”, Reuters, September 6, 2020
“United Places Bets on Latin America, Hawaii in October Schedule: United will fly 46% of its 2019 domestic schedule in October – compared to 38% in September – and 33% of its October 2019 international schedule, compared with 29% in September.”, Airline Geeks, September 5, 2020
Asean Countries
“Reimagining emerging ASEAN in the wake of COVID-19: A focus on five key levers could both accelerate the region’s recovery and make the gains more enduring….. McKinsey’s research on emerging ASEAN countries explored a series of trends that the pandemic has caused or accelerated. Within these trends lie the potential recipe for recovery, but stakeholders must be prepared to reimagine their country’s economy. Five key levers—manufacturing hubs, green infrastructure, investments in digital, talent reskilling, and high-value food industries—could not only speed up the economic recovery in these countries but also lay the foundation for extended growth.”, McKinsey & Company, September 2, 2020
Australia
“Australia extends ban on people leaving the country until December: Australian citizens and permanent residents will have been barred from leaving for almost nine months by the end of the year. The “Human Biosecurity Emergency Period” has been in place since March and prevents Australian citizens or permanent residents from leaving the nation’s shores. It can only be circumvented with permission from the government, which must be approved beforehand.”, Sky News, September 3, 2020
“Metcash reaps benefits as consumers shop more locally: Metcash says sales continue to benefit from the change in consumer behaviour since the advent of Covid-19. Chairman Robert Murray said consumers have been shopping more in their local neighbourhoods since the advent of Covid-19, bringing new customers to independent Metcash businesses which the company is focusing on ensuring they are retained in the future. In a trading update released at its annual meeting today, CEO Jeff Adams said total sales are up 11.4 per cent in the first quarter of the new trading year, with supermarket sales – excluding tobacco – up by 13.8 per cent.”, Insider Retail Australia, August 26, 2020
“NSW Court offers retailers extended rent relief: The New South Wales supreme court has ruled that retailers could be eligible for a further six months of support after the mandatory code of conduct expires in October. Thousands of small businesses could be impacted by the decision, which found landlords cannot effectively kick a tenant out of a premises until after a “reasonable subsequent recovery period”, which could range as far as six months. The decision was handed down on a case between retailer Sneakerboy and its landlord Georges Properties, in which Sneakerboy was found to have been unfairly removed from its store and had its lease terminated.”, Inside Retail Australia, September 2, 2020
Brazil
“Brazil manufacturing PMI hits record high 64.7 in August: IHS Markit: Brazilian manufacturing expanded at a record pace in August, a survey of purchasing managers’ activity showed on Tuesday, extending its solid recovery from the COVID-19 crisis as new orders rose to new peaks and employment hit a 10-year high. IHS Markit’s headline Brazil manufacturing purchasing managers index (PMI) jumped to 64.7 in August from the previous all-time high of 58.2 in July, the highest level since the index was first compiled in February 2006.”, Reuters, September 1, 2020
Canada
“Canada Extends Foreign Travel Ban And Coronavirus Quarantine Restrictions: On Friday, Public Safety Minister Bill Blair announced via Twitter that the Canadian federal government has decided to extend travel restrictions by at least an additional month to curb the spread of the coronavirus. The restrictions will be extended until September 30 and could even be extended again. Originally the quarantine mandate was set to expire on August 31. In his tweet, Blair stated that: ‘Our government is extending the existing restrictions on international travel to Canada by one month – until September 30, 2020 – to limit the introduction and spread of COVID-19 in our communities.’ He went on to tweet ‘Canadian citizens and permanent residents returning to Canada will continue to be subject to strict quarantine measures.’”. Forbes, September 2, 2020
“Canada to extend rent-relief program for small businesses: Globe and Mail: The Canadian government will extend its coronavirus rent-relief program for small businesses into September, the Globe and Mail reported late on Saturday, citing sources familiar with the policy discussions. The Canada Emergency Commercial Rent Assistance Program offered loans to landlords of entrepreneurs worth half the tenant’s rent from April through August, if tenants pay a quarter and the landlord absorbs the remaining quarter.”, Reuters, September 6, 2020
Chile
“Chile central bank softens 2020 recession projection, expects stabilization: Chile’s central bank on Wednesday softened its prediction for an economic contraction in 2020 due to the impact of the coronavirus on the world’s top copper producer to between -4.5% and -5.5% from the 5.5% and 7.5% contraction it foresaw in June.”, Reuters, September 2, 2020
Mainland China
“Fast-food chain Yum China bags $2bn in Hong Kong listing: Chinese operator of KFC and Pizza Hut prices shares in latest ‘homecoming’ offering. Yum China has raised more than $2bn from a secondary share sale in Hong Kong, marking the latest ‘homecoming’ listing by a major US-listed Chinese company…Total proceeds of HK$17.3bn ($2.2bn) would be spent on expanding the company’s restaurant network and investing in ‘digitalisation,’ it said.”, The Financial Times, September 4, 2020
“U.S. Businesses’ Commitment To China Market “Strong And Intact”: Forbes China Forum: A long-term commitment by U.S. businesses to China’s market is ‘quite strong and intact’ despite currently strained political ties between the two countries, a former China diplomat and business association leader (Kenneth Jarrett) said at the ‘U.S.-China Business Forum’ organized by Forbes China on Wednesday.”, Russel Flannery, Forbes, August 28, 2020
“China’s service industries catching up as life returns to normal after coronavirus shock wave slammed economy: August’s official non-manufacturing purchasing managers’ index (PMI) jumped to 55.2 from 54.2 in July, reaching the highest level since January 2018. The rise was driven by the service sector, which climbed to 54.3 in August from 53.1 in July as cinemas and hotels have slowly returned to normal operations.”, South China Morning Post, August 31, 2020
“The Chinese consumer: Resilient and confident: Two China-based McKinsey partners impart advice on how companies can succeed in China’s fast-recovering consumer market. Even as many parts of the world continue to battle the COVID-19 crisis and its knock-on effects, much of China has reopened: people are going out, streets are bustling, and businesses have resumed almost-normal operations. In this episode of the McKinsey on Consumer and Retail podcast, McKinsey’s Felix Poh and Daniel Zipser discuss the present and future of the Chinese consumer sector. An edited transcript of their conversation with executive editor Monica Toriello is below (at this link).”, McKinsey & Company, September 3, 2020
“China’s Exports Ramp Up as Countries Emerge From Lockdowns: Outbound shipments rose 9.5% in August from a year earlier, picking up pace from the previous month and beating economist forecasts. August marked the third consecutive month that China’s exports outpaced those of the same month last year. It marks a stark turnaround from the start of the year, when the pandemic crippled China’s factories and global shipping networks.”, The Wall Street Journal, September 7, 2020
Sign of the Times: “Guidelines for Emergency Response and Business Continuity Management of Chain Operation Enterprises, a Public Solicitation of Comments”. The China Chain Store and Franchise Association (CCFA) has asked affected businesses for comments on how best for the government to help such businesses cope with “Business interruptions caused by sudden natural disasters, external services or sudden internal operations, etc., will bring huge risks and even significant impacts on corporate operations.”, Paul Jones, Jones & Co., Toronto
Colombia
“Avianca Resumes Operations in Colombia: Avianca announced that on September 1 the carrier will return to the Colombian skies, connecting from Bogotá to destinations such as Barranquilla, Bucaramanga, Cali, Cartagena, Cúcuta, Medellín, Montería, Pereira and San Andrés; From September 7 it will restart operations from Bogotá to Pasto, Santa Marta and Villavicencio, and from Medellín to Cali and Cartagena. The company will apply strict biosecurity protocols that have already been successfully tested on more than 330 special flights transporting more than 34,380 people. Operations will begin with only 12% of what was before COVID-19. The carrier expects that demand and the need for connectivity will rise quickly. In the same way, it will adapt its itineraries, routes and frequencies to the extent that the activation scheme designed by the Civil Aeronautics allows it.”, Airline Geeks, August 29, 2020
Dominican Republic
“Dominican Republic Eliminates Mandatory COVID-19 Tests, Adds Free Insurance As Part of New Tourism Recovery Plan: The new policies will go into effect on Sept. 15. With many Caribbean nations competing for the economic boost of much-needed tourism dollars, the Dominican Republic made some policy changes to make visiting the island a bit easier. As part of its newly announced “Responsible Tourism Recovery Plan,” visitors will no longer be required to show proof of a negative COVID-19 test in order to enter the country, starting Sept. 15. Additionally, mass testing will not be performed at the airport upon arrival, but will instead be done at random.”, Travel + Leisure, September 3, 2020
Europe
“Back to school: how European classrooms are coping with COVID: Schools across Europe are reopening as summer break ends and governments insist that students return to the classroom after months of online learning due to the coronavirus pandemic. Countries are taking different approaches to minimise contagion in schools….”, Reuters, September 1, 2020
France
“France Tightens Mask Protocols Amid Gain in Virus Infections: More than 7,000 new cases were reported on Friday, the most since the nation was under a strict lockdown. For the moment, the number of deaths and hospitalizations remains relatively low, with young adults making up the bulk of new contaminations. Still, the French government isn’t taking any chances. From Tuesday, masks will be mandatory for companies with groups working in enclosed spaces, Labor Minister Elisabeth Borne said Sunday on BFM TV. While opera singers are among those who can be granted exemptions, mask-wearing is becoming entrenched in daily life. Cities from Paris to Marseilles are making masks compulsory, even outside, while students over 11 years old will have to cover their faces when returning to school next month.”, Bloomberg, August 30, 2020
Germany
“Germany Expects V-Shaped Economic Rebound From Coronavirus: After experiencing one of the world’s mildest Covid-19 epidemics, Germany is experiencing a faster-than-expected recovery. Germany’s factories and offices remained open during the coronavirus lockdown, which helped to cushion the country’s economy. The country’s gross domestic product should contract by 5.8% this year, a 0.5 percentage-point improvement on earlier forecasts and on par with the decline recorded in the wake of the 2008 financial crisis, the economy ministry said on Tuesday.”, The Wall Street Journal, September 1, 2020
India
“India’s turning point: An economic agenda to spur growth and jobs: A clarion call is sounding for India to put growth on sustainably faster track and meet the aspirations of it growing workforce.”, McKinsey & Company, August 26, 2020
Ireland
“Irish pubs make plea to reopen as they endure longest shutdown in Europe: Publicans are demanding the urgent reopening of bars across Ireland, which is now the only country in the EU imposing their closure for health reasons. Ireland’s pubs were shut in March, as coronavirus case numbers began to rise. On 29 June, pubs that could serve a “substantial meal” valued at €9 (£8) were allowed to reopen, subject to strict conditions. However, vintners estimate that 60% of pubs (which don’t serve food and are known as “wet pubs”) remain shut, with owners incurring increasing debt, and with thousands of job losses across the sector.”, Sky News, September 6, 2020
Israel
“Israel has a population of 9 Million inhabitants. 75% are Jewish, 20% Arab and the remaining 5% Christian. The Israel Economy is strong and stable. Often referred to as the “Start Up Nation”, Israel, enjoyed an unemployment rate of 3.8% in 2019, with a GDP per capita of $42,000. Despite the woes of the Covid-19 Pandemic, the Israeli economy will still increase by 3% this year, with its currency (New Israeli Shekel) still very stable. Like in many other countries, the job market in Israel during the Covid-19 crisis has been challenged, but Steven Wolfson, EGS associate for Israel, believes that this is actually good for the growing franchising due to easy access of government funding being pumped into the small and medium business sector. Lastly, the recent normalisation of diplomatic ties between Israel and the UAE will open up many more doors, especially from global brands, heavily invested in the UAE, who were previously hesitant to do business with Israel. This may lead to a new era of global business opportunities for not only Israel, but the Middles East as a whole.
Italy
“Pope has first live audience with pilgrims in six months: A maskless Pope Francis greeted pilgrims at his first general audience with the public in six months this morning, as the Vatican starts a slow return to normality. The pope kept about a yard back as he spoke to some of the 500 people present, who lined up behind a barrier. Smiling, he said he was happy to restart ‘our face-to-face, rather than screen-to-screen meetings’.”, The Sunday Times of London September 2, 2020
Japan
“’Tokyo Olympics Will Take Place Next Year ‘With Or Without Covid,’ Says IOC VP: The Tokyo Summer Olympics will go forward despite the coronavirus, International Olympic Committee Vice President John Coates told Agence France-Presse Monday, as Olympics officials still scramble to figure out what the postponed summer games will look like amid the Covid-19 pandemic. Coates said the summer games will start as planned on July 23, 2021 “with or without Covid,” after being postponed for a year amid the pandemic.”, Forbes, September 7, 2020
“Students in Japan return to in-person, but socially distanced classes: While the coronavirus pandemic is keeping many American students at home, children in Japan are back in the classroom. Schools there have been able to reopen because Japan, with about one-third of the U.S. population, has only 1% as many COVID-19 cases.”, CBS News, September 5th, 2020
South Korea
“An Insider’s View. Been on the ground in Korea for 12+ days. COVID 2.5 restrictions in place, 2nd typhoon in 2 weeks, but tackling business as usual. No lack of exciting projects. As a friend shared it’s all about having an insider’s view and connections. Don Southerton, LinkedIn, September 2, 2020
https://www.linkedin.com/posts/activity-6706841250630299648-vbmp
New Zealand
“International research involving New Zealanders has found two commonly used drugs help save critically ill patients with Covid-19. To avoid the uncomfortable nasal swabs, Air New Zealand want their crew to take saliva tests for the virus instead. Numbers show they have similar accuracy rates to nasal swabs. And a Nobel Prize-winning economist has labelled New Zealand’s method of response to the pandemic, which he describes as the exact opposite to America’s, as the best in the world.”, New Zealand Herald, September 3, 2020, compliments of Stewart Germann, Stewart German Law Offices, Auckland
Sweden
“A Tiny Record Store For Mice Has Arrived In Sweden: Ricotta Records is the latest installation from mouse-loving art collective AnonyMouse, which calls itself “a loosely connected network of mice and men”, originally from the city of Malmö in southern Sweden. AnonyMouse started building miniature installations for mice in 2016. Since then, the wacky team of ultra-secretive Swedish creatives has unveiled more than 25 projects, including Hair and Furever barbershop, a shelter named Paw to Paw, an Italian bistro called Il Topolino that serves cheese and crackers (what else?), French-inspired nut shop Noix de Vie (or Nuts of Life), boasting every mouse’s favorite treats of hazelnuts, pistachios, and almonds, as well as Paneer Indian restaurant, The Stilton Hotel, Frankie and Benjy’s bookstore, the Moles Antiques, and an entire amousement park.”, Forbes, September 2, 2020
United Arab Emirates
“Emirates (Airlines) To Receive $2 billion State Aid Package: In the midst of massive layoffs and reorganizations of aircraft orders, Emirates has secured a bailout that will give the company some momentary peace of mind. An aid package of 7.3 billion dirhams, or about $ 2 billion, was granted to Emirates by Dubai’s government, which further reported in a document that it is ready to send more aid to the airline. ‘Any additional support will be subject to the requirements of the airline and will depend on the impact and duration of the current situation of the Covid-19 pandemic,’ the government’s statement said, per a Reuters report.’, Airline Geeks, September 1, 2020
United Kingdom
“Spending surge lifts services at fastest rate for five years: A surge in spending strengthened the services sector last month, but did not stop companies from laying off more staff owing to fears about tough times to come with the end of government support schemes. The UK services sector grew at its fastest rate in more than five years in August, rising to 59.1 from 57.0 in July.”, The Sunday Times of London, September 3, 2020
“Rush hour returns: traffic up in major cities: Rush-hour congestion rose in many cities today as schools reopened and commuters returned to the office. An analysis of road data showed that traffic worsened in more than half of the UK’s biggest cities this morning compared with the previous week, despite continuing high rates of home working across the UK. In London vehicles suffered delays of 36 per cent during today’s rush hour, a rise from 31 per cent a week earlier. In Nottingham, levels of congestion increased from 27 per cent last week to 49 per cent this morning. However, the figures from TomTom made it clear that towns and cities remain significantly quieter than before the pandemic. It suggests that the government’s repeated calls for people to return to the workplace to boost urban economies were still largely being shunned.”, The Sunday Times of London, September 1, 2020
“Amazon to create 10,000 jobs: Amazon is taking advantage of the surge in online shopping during lockdown to expand in Britain. It plans to create 10,000 permanent jobs over the coming months after increasing its hiring during the lockdown. Amazon, America’s third-largest company, has already hired 3,000 new employees this year and plans to take on a further 7,000 by the end of the year, increasing its headcount in the UK to 40,000. The new positions would include engineers, human resources staff, IT experts, health and safety and finance specialists, as well as workers to pick, pack and ship customer orders.”, The Times of London, September 3, 2020
“With hand-wash and emotional support, pupils return to London school: Primary school children returning to the Harris Academy in London on Thursday will find themselves sitting in rows, regularly washing their hands and supported by teachers who have been trained to provide emotional support after lockdown. Children started to return to schools this week – for many the first time they have been back in full-time education since the spread of COVID-19 forced classes to shut in March. To prevent large gatherings, schools are staggering arrivals, keeping pupils in smaller groups, controlling where they walk in communal areas and requiring the provision of water bottles and pencil cases to prevent sharing. Desks are likely to be placed in rows so pupils do not sit in groups on a table.”, Reuters, September 3, 2020
“Manufacturing recovers amid job loss fears: Output at British manufacturers grew at the fastest pace in more than six years last month, underpinned by the fastest increase in new orders since November 2017. The upturn in domestic demand and signs of recovering exports was put down to the easing of Covid-19 restrictions by the August manufacturing purchasing managers’ index. The index rose to 55.2 from 53.3 in July, the third month of growth it shrank to a record low of 32.6 in April and to 40.7 in May. On the downside, companies remained cautious about hiring staff, with job losses recorded for the seventh month in a row. Business leaders and economists fear more jobs could be lost when the government’s furlough scheme ends at the end of October.”, The Times of London, September 1, 2020
United States
“These restaurant chains are unveiling new designs inspired by the pandemic: Taco Bell, Shake Shack and Burger King are among the restaurant chains who have introduced new designs inspired by the pandemic and its impact on consumer behavior. Among the new features in these designs are more drive-thru lanes. Visits to drive-thrus skyrocketed by 26% in April, May and June, according to data from the NPD Group. Other chains are accelerating plans to update their store formats with a focus on convenience.”, CNBC, September 5, 2020
“California Theme Parks Ready To Reopen With Proper COVID Guidelines: Disneyland, Seaworld, and Universal have announced that they are prepared to open as soon as California health officials provide the necessary requirements and safety guidelines. Josh D’Amaro, chairman of Disney’s parks, products and experiences unit, said the company is waiting for the green light, according to USA Today. “As soon as a date and those guidelines are set, I can tell you, we’re ready,” D’Amaro told Roger Dow, president and CEO of the U.S. Travel Association trade group Tuesday. All properties including Knott’s Berry Farm have been able to open select shops and dining, but all attractions and rides continue to be closed. Disneyland was prepared to open July 17th, but had to postpone due to spiking coronavirus numbers. All theme parks have been closed since March.”, Radio.com, August 27, 2020, compliments of a LinkedIn post by Doug Gabbard.
“Top 10 Fastest, Biggest, Most In U.S. Trade (Without A Peep About China): And now, 10 of the “fastest,” “biggest” and “most” in the most recent U.S. trade data. After all, we could all use a little good news now and again, no? So, here we go. A story about U.S. trade with Switzerland, Vietnam, Hungary, Cambodia, Sweden, Denmark, Australia, Mexico, Honduras and Saudi Arabia. But not a word about China.”, Forbes, September 6, 2020
“8 Countries Americans Can Visit Right Now: To the jetsetters, family vacationers, romantic retreaters, solo voyagers, spring breakers, and everyone who’s travel plans have been interrupted by COVID-19: We feel your pain. While you can’t take an epic Italy or Greece getaway yet, there are still some great options available to venture beyond American borders. If you need to get your wanderlust fix ASAP (or just want some inspiration for the future), we’ve rounded up a few countries to consider.”, Trip Advisor & Viator, September 3, 2020
“New York City Gyms Reopen for First Time Since Pandemic: Crunch, Equinox and others resume operations with ramped up hygiene, health-screening efforts. New York City gyms reopened Wednesday after a five-month lockdown brought about by the novel coronavirus pandemic, giving stir-crazy New Yorkers a long-awaited chance to hit the treadmills and free weights inside. Gyms were among the last businesses in the state to be given the approval to resume operations. Gov. Andrew Cuomo had indefinitely delayed the reopening of gyms in June, citing concerns about the spread of the coronavirus in states that had brought them back. But after several weeks of low transmission throughout the state, the governor said in mid-August that he felt comfortable allowing gyms to reopen at significantly reduced capacity.”, The Wall Street Journal, September 2, 2020
Articles And Charts About Doing Business in The Times Of COVID-19 and Beyond
The DLA Piper Guide To Going Global Series for 2020 is a powerful database on how to doing business in 54 countries. August 2020
Projected World Population 2100: “Will the global population surpass 10 billion by the end of the century? All signs have pointed to yes – until now. Steadily rising estimates from the United Nations have typically been the status quo. However, recent research from the Institute for Health Metrics and Evaluation (IHME) suggest that the global population may actually start shrinking well before 2100.” Visual Capitalist, September 2, 2020
Possible Changes by 2100: China = 732 million and India = 1.09 billion. Detailed chart at this link
A timely update to the Global Complexity Index 2 done by Wilson Perumal & Company
“4 Methods to Enhance Intentionality at Work: Working harder than ever but getting less done? Then it’s time to incorporate these purposeful practices.”, INC.com, Entrepreneurs’ Organization (EO), compliments of a LinkedIn Post by Lauren Ellermeyer.
“How Organizations Need To Manage Supply Chain Risk Today: In modern multi-tier supply chains, sourcing needs and production processes are often spread across hundreds of suppliers operating in multiple countries to maximize economic efficiency, usually at the cost of greater transparency and resilience. Market volatility caused by COVID-19, alongside sweeping regulatory changes, has driven companies across various industries to urgently re-evaluate their complex global supply chains to gain control of new and significant supplier risks quickly. Supply chain diversity is essential for successful business operations, but it’s critical that companies evaluate and understand the risk associated with current and potential suppliers in their physical and digital supply chains.”, Forbes, September 7, 2020
Who We Are And What We Do
Edwards Global Services, Inc. (EGS) provides a complete International solution for U.S. businesses Going Global. From initial global market research and country prioritization, to developing new international markets and providing operational support around the world. Our U.S. based executive team has experience living and working in many countries. Our Associate network on the ground overseas covers 40+ countries.
Founded in 2001, Edwards Global Services, Inc. (EGS) takes U.S. businesses global and currently has activity in 25 countries. Our Clients are all consumer-faced brands. Edwards Global Services, Inc. (EGS) has twice received the U.S. President’s Award for Export Excellence
Find out more about the services we provide U.S. companies Going Global at: www.edwardsglobal.com
William Edwards, CFE, is CEO and Global Advisor of Edwards Global Services (EGS). William Edwards has 46 years of international operations, development, executive and entrepreneurial experience and has lived in 7 countries. With experience in the franchise, oil and gas, information technology and management consulting sectors, he has directed projects on-site in Alaska, Asia, Europe and the Middle and Near East. Mr. Edwards advises a wide range of companies on early to long term global development of their brands.
For global cross business sectoral updates and advice, contact Mr. Edwards at bedwards@edwardsglobal.com or +1 949 224 3896.
EGS Biweekly Global Business Newsletter Issue 11, Monday, August 24, 2020
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
“I always like to look on the optimistic side of life, but I am realistic enough to know that life is a complex matter”, Walt Disney
“Without dreams and goals there is no living, only merely existing, and that is not why we are here”, Anonymous, Compliments of Karl Morningstar in a LinkedIn post on August 19, 2020
“Positive thinking will let you do everything better than negative thinking will”, Zig Ziglar
Introduction
We constantly monitor 30+ countries, 25 daily international information sources and six business sectors to keep up with what is going on in this ever-changing environment. Our team on the ground covers 43 countries and provides us with updates about what is happening in their specific countries.
Many of our newsletter readers send us their input and perspectives to help us publish a balanced overview about the world every other week. Our contact information is at the bottom of this newsletter.
Highlights In This Issue
This issue focuses on what is happening in more than 20 countries that impacts new trends, health, consumer spending, business investment and travel. A few highlights:
- Several countries in the Americas, Asia and Europe that have reopened are seeing COVID-19 cases rise
- Countries are struggling to decide how to reopen schools
- The UK economy has sprung back to life with July retail sale volumes higher than last year
- S. movie theaters reopen this weekend, but it’s unclear if audiences will return
- In the articles section to get a link to a daily updating country COVID cases chart
Where and Where Not Countries are Reopening Businesses
Many countries that started reopening businesses in late June are now seeing new COVID-19 cases as shopping and eating out increases. In most cases, the increases are due to people not wearing masks or social distancing despite there being laws that say they must do so. Nevertheless, consumers are spending in these countries, airports are functioning and business continues.
2020 Consumer Types – Who They Are and How They Live – Euromonitor
“Understanding what consumers are driven by, how they live and shop are key factors which businesses need to consider when approaching consumers. This webinar explores 11 key consumer types from lifestyle choices to buying habits and how each category is reacting to the current pandemic.”, AMRUTHA SHRIDHAR, Research Consultant – Consumer Insights, Euromonitor International, August 2020
http://bit.ly/EMConsumerTypes2020Study
Feeling optimistic: 71% of microbusiness owners expect to recover from COVID-19 financial hit within a year
“Feeling optimistic: 71% of microbusiness owners expect to recover from COVID-19 financial hit within a year: Revenue is down for 75% of small businesses, but business owners are equally confident that recovery will happen within a year, according to a new survey by GoDaddy. The “2020 Global Entrepreneurship Survey” included 5,265 small business owners around the world and measured the impact COVID-19 on microbusinesses, including business operations, finance, recovery, technology, and charitable giving. This survey was conducted by research firm Savanta in June 2020. The research surveyed 5,265 small business owners in Australia, Canada, Germany, India, Mexico, Philippines, Spain, Turkey, the United Kingdom, and the US. In the US, the survey included 500 small business owners with 25 or fewer employees.”, Tech Republic, August 19, 2020
3D Mapping The Largest Population Density Centers
Please visit the link below to see some amazing population density 3D maps around the world. Especially look at the difference between cities in China and the USA. 95% of the world’s consumers are outside the USA. These 3D maps tell where these customers are around the world.
http://bit.ly/VCPopulationDensity
International Travel Updates
“How COVID-19 Is Continuing to Change the Way We Fly: The design of airplanes won’t be all that different from what we’re used to, but the feeling of being on them sure will. While airplanes offer less room for change—literally—than airports, the passenger experience in the air will get a makeover to rival the one on the ground. The first change fliers will notice, of course, will be the mandatory face masks…. The aviation consultancy Simpliflying predicts that the jet bridge will do double duty as a disinfection tunnel, misting passengers with a sanitizing spray. On board, fliers will find changes to cabins designed to assuage their concerns… Planes will also have new crew members. Both Etihad Airways and Turkish Airlines now have hygiene experts who act as health inspectors and ensure that fliers are following health protocols. (No mask? No seat.) An in-flight janitor, responsible for disinfecting high-traffic, high-touch areas like the lavatory, will also become the norm….”, Conde Nast Traveler, August/September magazine issue.
“Delta Air Lines to resume 50 international routes: Delta Air Lines announced Friday it will resume 50 international flight routes — all to Asian countries — this winter and into 2021.
Among the restored flights will be from Seattle to Tokyo, Seoul, Beijing and Shanghai.”, Fox Business, August 21, 2020
“Airlines amplify cleaning in coronavirus fight: American, Delta double down with new protocol: wo major airlines are doubling down with enhanced cleaning protocol to amplify aircraft cabin sanitization in the fight against COVID-19. American Airlines and Delta Air Lines are augmenting current protocol with respective new measures, Reuters reports, as carriers vie to boost consumer confidence in commercial air travel amid the ongoing outbreak.”, Fox Business, August 24, 2020
“IATA Medical Advisor Reports Studies Concluding Air Travel Is Still Safe: The collapse of demand for air travel that has invested the airline industry following the outbreak of the COVID-19 pandemic has two main drivers: the restrictions to international mobility imposed by governments to curb the spread of the disease and the natural fear of prospective travelers to spend many hours in a confined space in close proximity to total strangers. While travel bans are largely outside the control of airline operators, there is a lot the industry can do to educate the traveling public about the real risks involved in getting on an aircraft. Since general prevention measures have pivoted mainly on physical distancing and the need to maintain a distance of at least 3-6 feet between people, air travel is seen as incompatible with this requirement.”, Airline Geeks, August 23, 2020
“Singapore to allow New Zealand, Brunei visitors in first border easing: Singapore on Friday said it would reopen its borders to visitors from New Zealand and Brunei from next month, in the city-state’s first steps towards resuming leisure travel since it sealed its borders to control COVID-19 outbreaks. The city-state, which currently only allows official and business travel to selected countries, also said it would allow students to travel for study overseas if distance-learning was not available. The measures would take effect on Sept. 1, with various restrictions, the health ministry said.”, Reuters, August 21, 2020
“Prices plunge as tourists turn their backs on foreign holidays: Holiday prices to Greece and Turkey have dropped by almost 30 per cent as nervous Britons begin to turn their backs on international tourism. Travel companies are offering heavily discounted trips overseas as industry experts said that fears of quarantine being introduced at 30 hours’ notice were putting off holidaymakers. Research by Travel Supermarket, a comparison site, found that on average the cost of holidays to Greece and Turkey, where there is no quarantine, have fallen by an average of 28 per cent. A week in Italy has dipped by more than 50 per cent.”, The Sunday Times of London, August 15, 2020
“Qatar Airways Continues UK Expansion: Qatar Airways (QR) announced today that it would continue to rebuild its UK network by adding London Gatwick (LGW) back on its destination list for the first time. The decision comes after UK and worldwide restrictions on flights during the COVID-19 Pandemic lockdown start to ease. With this announcement, it will now see the carrier increase its UK network to four destinations with more to follow. This is a good sign, as restrictions to certain countries around the world continue to be eased.”, Airways, August 14, 2020
“Airbnb Has Banned House Parties Indefinitely: Groups of more than 16 will have to book elsewhere. Now, the company is taking its tactics a step further, officially and indefinitely banning house parties at all future Airbnb bookings across the globe. With bars and restaurants in stages of reopening around the country, ‘some have chosen to take bar and club behavior to homes, sometimes rented through our platform,’ says Airbnb in a statement.”, Conde Nast Traveler, August 20, 2020
“JetBlue confirmed its much-anticipated London flights will be delayed: JetBlue Airways CEO Robin Hayes confirmed to Bloomberg on Thursday that the airline’s launch of transatlantic flights will be delayed to late-2021. Flights to London from New York and Boston were announced in April 2019 with new planes ordered to fly the routes.”, Business Insider, August 17, 2020
Latin America
“Latin America: The global epicenter of COVID-19: The number of COVID-19 cases in Latin America and the Caribbean has positioned the region as the global epicenter of the virus. Health professionals and regional experts are warning that if nothing is done, the region will see major setbacks, including a massive rise in poverty and a rise in authoritarianism, as leaders see an opportunity to crackdown on dissent. Latin America, which accounts for 8% of the world population, has reported nearly 30% of the global fatalities.”, CBS News, August 14, 2020
Australia
“Shopping Centre Council warns landlords can’t keep supporting rent: Nationwide rental assistance to retailers has eclipsed $1.6 billion, according to the Shopping Centre Council of Australia, with the largest level of support given to cafes and restaurants, followed by retailers such as hairdressers, beauty salons and nail bars. The relief data was released by the Council to give a “real dollar value” to the support it has extended to the retail industry – and to say that it’s unlikely shopping centre owners can continue to do so.”, Inside Retail, August 14, 2020. Compliments of Jason Gehrke, Managing Director, The Franchise Advisory Centre, Brisbane
http://bit.ly/AustraliaMallRentRelief
The Caribbean
“Cayman Islands says no cruises allowed for the rest of 2020: The Cayman Islands, a once-popular destination within the cruise industry, has announced that it will be closing itself to cruise tourism until the end of this year. This news comes as international cruise lines have only just started to return to the waters.’< Fox News, August 18, 2020
Mainland China
“China Eases Entry Rules for Citizens of 36 European Countries: China has relaxed entry restrictions for some European countries’ citizens with valid residence permits, offering a route back into the country for thousands of people displaced by border closures and cancelled flights amid the coronavirus pandemic.”, Caixin Global, August 13, 2020
https://bit.ly/CaixinChinaEntryRules
“US and China to double weekly flights, handing lifeline to grounded carriers facing industry’s worst travel slump: Air China, China Eastern Airlines, China Southern Airlines and Xiamen Airlines will be allowed to double their weekly US services to eight round trips. A day earlier, the Civil Aviation Authority of China (CAAC) gave the green light for Delta Air Lines and United Airlines to increase their weekly China services to two round-trip flights.”, South China Morning Post. August 19, 2020
“United Airlines To Double San Francisco-Shanghai Services: Having resumed its flights to China in June, United Airlines (UA) will now double its San Francisco-Shanghai frequencies. Starting on September 4, the airline will operate four weekly flights using its Boeing 777-300ER aircraft. The services from the US to China will be on Wednesdays, Fridays, Saturdays and Sundays at 11 am. On the other hand, flights from Shanghai to San Francisco will be Mondays, Thursdays, Saturdays and Sundays at 9:40 pm.”, Airways, August 19, 2020
“Shanghai Disney Resort to increase capacity, update reservation system: Next week will be especially magical at Shanghai Disney Resort, as the Chinese theme park increases daily guest capacity and debuts a simplified reservation system for greater flexibility. Shanghai Disneyland announced the changes on Monday, revealing that the updates will take effect on Aug. 24. In a statement posted to the park’s website, officials cited new guidance from China’s Ministry of Culture and Tourism in allowing the expanded guest capacity; the ministry recently issued a notice allowing tourist sites to bump their operational capacity from 30% to 50%.”, Fox News, August 17, 2020
“Mainland-listed companies’ first-half profits provide a peek into sectors leading China’s economic recovery after Covid-19. Over 55 per cent of the 732 companies that have reported earnings have posted a year on year increase in profits. Companies in sectors such as brokerages, petrochemicals, pharmaceuticals led the pack in terms of profitability.”, South China Morning Post, August 2020
“Premium Retailers Ride China’s Recovery From Covid-19 Crisis: From autos to liquor, higher-end retailers are thriving as Chinese consumers bounce back. The coronavirus pandemic has created a divide in China’s consumer economy, with makers of premium products rebounding strongly but those catering to mass-market consumers finding it tougher to return to growth. Driving the trend: the relative stability of upper middle-class incomes in China throughout the pandemic, with many white-collar workers able to work and ride out the crisis from home. In contrast, up to 80 million Chinese people, mainly lower earners in services and manufacturing, have lost their jobs this year as a result of the pandemic, according to the state-backed Chinese Academy of Social Sciences.”, The Wall Street Journal, August 19, 2020
“Alibaba Quarterly Sales Soar as Concerns Linger Over U.S. Pressure: Chinese e-commerce giant Alibaba Group Holding Ltd. reported better-than-expected quarterly results as sales rebounded to the pre-pandemic level. But rising policy uncertainties from the U.S. still cast a shadow over its outlook. Alibaba posted 34% year-on-year growth in sales for the quarter ended in June to 153.8 billion yuan ($22.2 billion), beating Wall Street estimates. Net income totaled 47.6 billion yuan, surging 124% from the same period last year. The company said its number of annual active consumers in China rose by 16 million during the June quarter to 742 million.”, Caixing Global, August 21, 2020
Europe
A detailed European country update on the status of franchises as we hope to come out of the COVID-19 crisis is available in this recent ‘Global Franchise’ online article.
“Financing the EU’s recovery Increased budget ceiling and (new) EU revenues”, Deutsche Bank Research, August 5, 2020
France
“France plans masks at work as daily COVID-19 cases surpass 3,000: Employment Minister Elisabeth Borne said she would propose on Tuesday at talks with employer and union representatives that masks be compulsory in collective workspaces. ‘A theme that appears in all scientific opinions is the value of wearing them (masks) when there are several people in a confined space,’ Borne said in an interview with French newspaper Le Journal du Dimanche. Doctors have increasingly called for masks to be required in the workplace while the HCSP, a body advising the government on health policy, issued a recommendation calling for masks to be compulsory in all common indoor spaces.”, Reuters, August 15, 2020
Greece
“Greece tells students to wear masks when schools reopen Sept. 7: Greek teachers and students will be required to wear masks in class and indoor spaces when schools reopen in September due to a surge in COVID-19 infections, the country’s education minister said on Monday. The rise in coronavirus cases in recent weeks has forced Greek authorities to gradually reimpose restrictions to curb the spread of COVID-19.”, Reuters, August 24, 2020
On Sunday, Greece reported 284 new cases, a new daily record since its first case surfaced in February. In total, the country has registered 8,664 COVID-19 infections and 242 deaths.
Iceland
“Visitors to Iceland Will Now Have to Get Tested for COVID-19 Twice, and Quarantine in Between: Visitors can also chose to skip the tests by staying in quarantine for 14 days. Visitors to the country will now be required to get tested twice: once upon arrival and then a second time a few days later, quarantining for five to six days in between, according to the country’s Directorate of Health.”, Travel & Leisure, August 21, 2020
Japan
“On 7 August we opened a pop-up store in Fukuoka airport located on Kyūshū island, one of Japan’s food hot spot. This new pop-up store features, amongst others, products from local producers – honey, fruits, snacks and iconic local craft brands including ceramic and homeware. This store is in line with our and Made in Pierre Hermé’s CSR commitments of promoting and supporting local economies, producers and artisans.”, Lagardère Travel Retail, LinkedIn post, August 21, 2020
Singapore
“How big businesses in Singapore are managing the challenges of coronavirus: The coronavirus pandemic has thrown into sharp focus the role of government in supporting the economy during periods of crises. But it has also highlighted the role big business can play. Look at Singapore. As the Asia-Pacific headquarters for many major corporations, the country has long invested in business stability even as geopolitical tensions flare globally. So when a spike in Covid-19 cases threatened to tip that equilibrium, authorities moved quickly, announcing more than $73 billion in stimulus — with the latest top-up just last week.”, CNBC Make It, August 23, 2020
South Korea
“South Korea imposes coronavirus lockdown rules following nine days of triple-digit increases in new cases: Health Minister Park Neung-hoo announced new bans on large gatherings, with closures for beaches, nightspots and churches, as well as removing fans from professional sporting events. The government said it did not take the decision lightly, but felt the restrictions were necessary after nine straight days of triple-digit increases in infections.”, Fox News, August 22, 2020
“South Korea’s Coronavirus Return Looks Familiar, With a Church at the Center: Recent surge in Covid-19 cases, like February outbreak, involves a church and an inability to locate all the followers. The country is teetering on the verge of a national outbreak, local health officials warn, and faces a possible return of its most stringent social-distancing measures in the coming days. On Friday, the country reported 324 new virus cases—its largest one-day rise since March 8. Daily infections have hit triple digits for more than a week straight.”, The Wall Street Journal, August 21, 2020
Panama
“Why Being Grounded for Months Was the Best Pandemic Outcome for This Airline: U.S. airlines are flying all they can and selling cheap fares to fill planes. Copa was required by its government to do the opposite. It effectively stopped flying for months. It lost a lot of money in the second quarter, but perhaps not as much as you might think. Copa, which has just one domestic route, is back in business, but only in a small way. Thanks to Panama Government Executive Decree No. 300, Copa is launching limited flights to New York, San Jose, Costa Rica, Santo Domingo, Dominican Republic, and Quito and Guayaquil in Ecuador. Assuming it goes OK, the government should allow more flights next month.”, Brian Sumers, SKIFT, August 21, 2020
Poland
“Poland to reopen schools despite new coronavirus record: Poland on Monday insisted it would reopen schools next week for the first time since mid-March despite reaching a record high number of daily registered coronavirus infections late last week. Poland was at first successful in containing the outbreak, but cases have started rising in recent weeks and on Friday authorities reported 903 new infections, the highest daily increase to date.
The rise in infections has caused concern among some parents contemplating sending their children back to class.”, Reuters, August 24, 2020
Portugal
“Portugal dropped from UK quarantine list: Rush to book as travel curbs end on Saturday. Portugal has finally been ruled safe for travel by the government, with airlines and holiday companies expecting a surge in bookings from Britons desperate for a late summer getaway.”, The Times Of London, August 21, 2020
Russia
“Russia’s economic contraction. Russia’s economy felt the full effects of the coronavirus pandemic in the first half of 2020, according to a new report on the federal budget published by Russia’s Accounts Chamber. The report said that in the second quarter, the economy contracted by 8.5 percent year over year, real disposable incomes decreased by 8 percent, retail turnover declined by 16.6 percent and unemployment increased to 6.2 percent in June. The report noted that the peak of the economic decline was in April, and that a slow recovery in a number of indicators has been seen since then.”, Geopolitical Futures, August 20, 2020
Singapore
“Singapore relaxes coronavirus travel restrictions for mainland China, Taiwan and Malaysia: Passengers from ‘low-risk’ territories – which also include Vietnam, Macau and most of Australia – will serve seven-day stay-home notices, rather than 14. Travellers from Brunei and New Zealand will not need to serve a stay-home notice at all, but will be tested at the airport.”, South China Morning Post, August 21, 2020
“Singapore announces another $5.8 billion to boost its coronavirus-hit economy: Singapore reported one of the worst economic contractions in Asia for the first half of the year. Its open and trade-dependent economy has taken a hard hit, as lockdown measures around the world aimed at slowing the spread of the coronavirus halted much of global economic activity.”, CNBC, August 19, 2020
Spain
“Socialising pushes Spain’s Covid-19 rate far above rest of Europe : Surge in cases may affect reopening of schools, officials warn. Coronavirus is spreading far faster in Spain than in the rest of Europe, confronting the country with a race against time to bring the outbreak under control before the return to school and work next month following the holiday season.”, The Financial Times, August 21, 2020
“Apple stores reclosing in Madrid following COVID-19 surge: Apple is reclosing four stores in Spain. It comes after a fresh wave of COVID-19 cases in the country. It bring the total number of stores closed to five.”, iMore, August 21, 2020
South Africa
“Alcohol for sale again as South Africa eases lockdown: A ban on the sale of alcohol and tobacco will be lifted in South Africa in a significant easing of the lockdown to restart the economy. President Ramaphosa said that nearly all restrictions on economic activity would end amid signs that infections had slowed significantly. In a televised speech he acknowledged that nearly five months under some of the world’s strictest measures had been “extraordinarily difficult”, with millions suffering ‘hardship and hunger’. South Africa still has the fifth-highest number of cases in the world with 583,653 infections registered. Yet its mortality rate is lower than in Europe at 11,677 deaths, and the number of daily confirmed cases has more than halved over the past week. Provincial borders will open from tomorrow for leisure travellers, although international borders are expected to stay closed until 2021. Bars and gyms can also trade but a 10pm curfew remains in place.”, The Sunday Times, August 17, 2020
United Kingdom
“UK economy springs back on summer of spending: Purchasing managers’ index at 7-year high while shopping levels move above pre-coronavirus levels. Britain’s economy leapt back to life at the height of summer as consumers rushed out of lockdown to start spending freely — attracted by the government’s incentives to visit pubs and restaurants. After months of staying home and tightening their belts, data yesterday showed shoppers spent more in July than before the pandemic hit, with businesses also reporting stronger activity in August.”, The Financial Times, August 21, 2020
“Tesco plans to create 16,000 new permanent roles to support growth in its online business. The country’s biggest supermarket chain has benefited from increased food sales due to the pandemic. Grocery sales have grown at their fastest rate since 1994, up 16.9 per cent to £31.6 billion, and online sales have risen from 9 per cent of total sales before lockdown to more than 16 per cent. The new roles will include 10,000 to make up orders, 3,000 delivery drivers, plus other roles in stores and distribution centres. The jobs are in addition to the 4,000 jobs created since the start of the pandemic. Tesco has 3,635 shops in Britain and Ireland, employing around 320,000 people.”, The Times of London, April 24, 2020
“Coronavirus: Bowling alleys, stadiums and salons have lockdown rules eased – as mask fines doubled: The maximum fine for not wearing a mask is to double from £1,600 and fines of up to £10,000 are planned for hosting illegal raves. But at the same time, the PM says lockdown rules will be eased to allow: Bowling alleys, skating rinks and casinos to reopen for the first time as well as indoor play and soft play centres; Beauty salons, tattoo studios, spas and barbers in England to offer all close contact services and treatments; Sit-down wedding receptions for up to 30 people to resume in coronavirus-secure premises; Indoor arts and music performances with socially distanced audiences; Sports and business events pilots to resume.”, Sky News, August 14, 2020
“Qatar Airways (QR) announced today that it would continue to rebuild its UK network by adding London Gatwick (LGW) back on its destination list for the first time. The decision comes after UK and worldwide restrictions on flights during the COVID-19 Pandemic lockdown start to ease. With this announcement, it will now see the carrier increase its UK network to four destinations with more to follow. This is a good sign, as restrictions to certain countries around the world continue to be eased.
“Coronavirus: Airport testing could end ‘quarantine roulette’ for holidaymakers – but how would it work? Bosses at Heathrow Airport say it would allow those who test negative to spend less time in quarantine. Heathrow Airport wants to test passengers arriving from certain countries for coronavirus when they enter the UK, potentially allowing them to spend less time in quarantine if they test negative. Airport bosses are calling on the government to approve the scheme, which would allow Britons returning to the UK from “at risk” countries to leave quarantine between five and eight days after they land – instead of the current 14.”, Sky News, August 19, 2020
“Poll: Two thirds of (UK) parents intend to send children back to school: All schools across England are scheduled to return full-time from September. A new poll showed 69 per cent of parents intend to send their children back. Almost a third of parents said they don’t feel comfortable sending children back.”, The Daily Mail, August 21, 2020
“Numbers eating out in UK surpass pre-lockdown levels by a quarter: The first two weeks of the UK government’s Eat Out to Help Out dining scheme has seen the number of people eating in restaurants from Monday to Wednesday increase by an average 26.9% year-on-year. This compares to an average 21.3% year-on-year decline for Thursday to Sunday in the same period, according to data published by OpenTable, a restaurant booking service. One effect of the scheme is that it has encouraged some restaurant goers to eat out Monday to Wednesday, instead of during the other days, according to the Centre for Economics and Business Research (CEBR).”, Yahoo Finance, August 17, 2020
United States
“Movie theaters reopen this weekend, but it’s unclear if audiences will return: AMC, Regal, Cinemark and Marcus Corp and other major theater chains are reopening their doors to the public Friday after five long months of being shuttered due to the coronavirus. But even with stringent safety protocols and new film releases, moviegoers may be hesitant to return to cinemas.”, CNBC, August 21, 2020
“U.S. business activity surges to early 2019 levels: Markit flash PMI: Data firm IHS Markit said its flash U.S. Composite PMI Index rose to a reading of 54.7 this month – the highest since February 2019 – from 50.3 in July. Its flash – or preliminary – indicator for the manufacturing sector stood at its highest since January 2019 and for the services sector it was the highest since March 2019.”, Reuters, August 21, 2020
“Domino’s Pizza plans to hire 20,000 U.S. team members to serve ongoing demand: Domino’s Pizza, the international pizza franchise with upward of 17,100 stores, is looking to radically expand its U.S. workforce with the planned hiring of 20,000 new team members as soon as possible. This extends across both corporate and franchise stores, and the roles available aren’t just for pizza makers; supply chain experts, managers, and customer service representatives are just a handful of the other positions on offer.”, Global Franchise Magazine, August 18, 2020
“American Airlines Group Inc said Thursday it plans to suspend flights to 15 U.S. airports in October as travel demand remains low as a result of the coronavirus pandemic. Congress has been weighing for weeks whether to grant U.S. airlines another $25 billion in payroll assistance that would keep tens of thousands of airline workers on the job for another six months and extend minimum service requirements. American said it will cancel just over 700 flights in October to and from those 15 airports but warned it could make additional cuts or could reconsider if Congress provides additional assistance.”, Reuters, August 20, 2020
“How US companies and people are adjusting to the pandemic: A nationwide survey measures views on mental-health impacts, safety measures, and new working models. Faced with the persistent threat of COVID-19, companies and people in the United States must make tough decisions about when to return to workplaces and resume normal activities. To help address the issues they face, McKinsey conducted a nationwide survey and interview program in partnership with Business Roundtable. Scroll down to view findings with respect to four topics: the mental-health impact of the crisis, the factors that people say would make them feel safer returning to normal activities, the safety measures employers are implementing, and the need for new working arrangements if schools partially reopen.”, McKinsey & Company, April 24, 2020
Articles And Charts About Doing Business in The Times Of COVID-19 and Beyond
“Global COVID-19 Containment: Confirmed Cases, Updated Daily: This continuously updated chart from Our World in Data provides a more complete look at the efficacy of COVID-19 containment strategies, sorted by country. It is a variation of the Epidemic Curve (or “epi curve”), showing confirmed COVID-19 cases per country in relation to their testing rates—what’s revealed is the strength of each country’s containment strategy.”, Visual Capitalist, August 17, 2020
http://bit.ly/ContinuouslyUpdatungCOVIDChart
“Redrawing the Map of Global Trade: As it destabilizes economies, intensifies geopolitical friction, and exposes the risks of current global manufacturing and supply networks, the pandemic is also likely to redraw the map of world trade. To visualize these shifts, we have prepared two maps depicting major trade corridors. One shows the actual change in trade volumes from 2015 through 2019; the other projects changes from 2019 through 2023 under our baseline economic scenario.”, Boston Consulting Group, July 2020
“An airline cabin crew reveals the reality of working during coronavirus pandemic: One of the industries hit the hardest is aviation. While we’re all doing our bit and staying on the ground in an attempt to slow the spread of the virus, some planes are still flying to cater for those who must travel. That means that some airline crew from around the world are still working, putting themselves at risk daily to help people get where they need to be. Requiring face masks, mandatory temperature checks and little-to-no meal service are just some of the drastic steps airlines are taking to limit the spread of the virus. Plus, the measures to limit contact between the crew and passengers on board. Alex is a senior cabin crew member for British Airways. She agreed to document a recent flight from London to Hong Kong to give a snapshot of what it’s like to fly right now — and potentially for some months to come.”, The Points Guy, August 22, 2020
http://bit.ly/AirlineCreaWorkingDuringCOVID
Who We Are And What We Do
Edwards Global Services, Inc. (EGS) provides a complete International solution for U.S. businesses Going Global. From initial global market research and country prioritization, to developing new international markets and providing operational support around the world. Our U.S. based executive team has experience living and working in many countries. Our Associate network on the ground overseas covers 40+ countries.
Founded in 2001, Edwards Global Services, Inc. (EGS) takes U.S. businesses global and currently has activity in 25 countries. Our Clients are all consumer-faced brands. Edwards Global Services, Inc. (EGS) has twice received the U.S. President’s Award for Export Excellence
Find out more about the services we provide U.S. companies Going Global at: www.edwardsglobal.com
William Edwards, CFE, is CEO and Global Advisor of Edwards Global Services (EGS). William Edwards has 46 years of international operations, development, executive and entrepreneurial experience and has lived in 7 countries. With experience in the franchise, oil and gas, information technology and management consulting sectors, he has directed projects on-site in Alaska, Asia, Europe and the Middle and Near East. Mr. Edwards was named to the District Export Council of Southern California by the U.S. Secretary of Commerce in 2016 and again in 2019.
For global cross business sectoral updates and advice, contact Mr. Edwards at bedwards@edwardsglobal.com or +1 949 224 3896.
EGS Biweekly Global Business Newsletter Issue 10, Monday, August 10, 2020
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
“Every day is an opportunity to be a better version of ourselves. Progress is more important than perfection.” Simon Sinek.
“Great leaders believe they work for their team. Average leaders believe their team works for them.” Alexander Den Heijer
“Nothing is worth more than this day. You cannot relive yesterday. Tomorrow is still beyond our reach.” Johann Wolfgang Von Goethe
Introduction
We monitor 30+ countries, 25 daily international information sources and six business sectors to keep up with what is going on in this ever-changing environment. Our team on the ground covers 43 countries and provides us with updates about what is happening in their specific countries.
Many of our newsletter readers send us their input and perspectives to help us publish a balanced overview about the world every other week. Our contact information is at the bottom of this newsletter.
Highlights In This Issue
This issue focuses on what is happening in more than 20 countries that impact new trends, health, consumer spending, business investment and travel. A few highlights:
- What global brands are doing to survive COVID-19
- S. State Department lifts the ‘do not travel’ advisory in place since March 19
- Reimagining European restaurants post COVID-19
- the June Economist Intelligence Unit’s Global Business Barometer (GBB), tracked sentiment as global executives started thinking about recovery. Readings reveal a variety of views.
- Several updates on international travel ups and down
- The new Global Markets Complexity Index (GMCI) launches to helps multinationals navigate international expansion and contraction
Coping With COVID – What Global Brands are Doing to Survive
In 46 years of doing international business and living in 7 countries, I have seen numerous wars, natural disasters, political meltdowns, and trade disputes. But nothing prepared us for the 2020 Covid-19 global disaster. I have been monitoring what franchisors have done from February to July to manage their international operations. Restaurant, retail, and fitness franchisors have seen their units shut down worldwide, resulting in drastically lower sales and royalties. Unit revenues often fell to zero for several months, as they did in the U.S. My recent article on Franchising.com shows best practice examples of what top international franchisors have done to save their international business and prepare for a better future.
https://bit.ly/WhatGlobalBrandsAreDoing
Cell Phone Technology Now and Then
Ashley Short, Director of Operations for Tim Hortons®, published this graphic on LinkedIn. Having owned one of these phones when living in Central Europe in 2000, this is self-explanatory!
The Growth of Digital Business Due to COVID-19
“Yum!’s Digital Business Has Gained Over $1 Billion: Yum! generated $3.5 billion in digital sales in Q2, a 40 percent year-over-year boom that equated to a $1 billion step-up from 2019 levels.”, QSR Magazine, July 2020.
https://bit.ly/YUMDigitalGrowth
It took the COVID-19 crisis to cause an uptick in e-commerce sales in the U.S.
International Travel Updates
“US State Dept. lifts “do not travel” global travel advisory, but COVID-19 is still a worldwide risk. The U.S. State Department just revoked the emergency “Level 4: Do Not Travel” global advisory implemented on March 19. ‘With health and safety conditions improving in some countries and potentially deteriorating in others, the Department is returning to our previous system of country-specific levels of travel advice,’ the department stated in a press release dated Thursday, Aug. 6. ‘We continue to recommend U.S. citizens exercise caution when traveling abroad due to the unpredictable nature of the pandemic.’”, The Points Guy, August 6, 2020
This is NOT a joke: “Taiwanese airlines offer fun flights to Japan, but don’t expect to land: Carriers and cruise lines seek to give people an escape from Covid-19 with a range of local holiday packages. Idea comes after Songshan Airport in Taipei began offering airport tours and the chance to sit on a stationary plane on a runway.”, South China Morning Post, August 2, 2020
https://bit.ly/SCMPSpecialFlights
“When will international travel return? A country-by-country guide to coronavirus recovery: The bad news is very few countries are open to tourism right now. The good news is that some countries are slowly opening up again and more are providing timelines on when travel might again be possible.”, The Points Guy, July 31, 2020
https://bit.ly/TPGCountryReopening
“What to Look for If You Have to Travel for Business: Take these factors into consideration when planning your accommodations during business travel. For a business traveler, traveling and staying in a hotel during the coronavirus pandemic might be a cause for concern. While you may have prepared the company for business travel, it may still feel overwhelming trying to keep up with all of the information that is constantly changing. If you might have to book a business flight soon and find accommodations, you’ll want to be sure you are doing it safely.”, INC.com, August 9, 2020
https://bit.ly/INCBusinessTravel
“This is what it’s like to fly across the Pacific during COVID: The flying experience has been turned upside down since the coronavirus pandemic began affecting travel earlier this year. Perhaps nowhere is the disruption to air travel more pronounced than on international flights, which have borne the worst fallout of the pandemic. So, what is it like to fly overseas right now?”, The Points Guy, August 4, 2020
https://bit.ly/TPGFlyingToAsia
“The Path Forward: The Airline Industry with Delta CEO Ed Bastian: ‘We are focused on restoring confidence in air travel, particularly the safety and the health of our people, our employees as well as our customers.’”, The Washington Post, August 4, 2020
https://bit.ly/DeltaCEOGuidance
“Lufthansa Boosts Its Fall Destinations: Boosting its fall season, Lufthansa (LH) has announced that it will operate five further European destinations. The services are set to begin in September and October. Starting on September 7, the carrier will offer services from Munich (MUC) to Marseille (France), Gothenburg (Sweden), Kiev (Ukraine) and Sibiu (Romania). In addition, on October 5, the German company will fly again to Graz (Austria). With these additions, LH expects to operate an increased MUC timetable by the end of October. These include 86 destinations in Germany and Europe and 13 long-haul destinations.”, Airways Magazine, August 4, 2020
“China Adds Flights From Japan and South Korea as Travel Curbs Ease: China allowed more scheduled passenger flights from Japan and South Korea as the Asian countries gradually ease coronavirus travel curbs. But finding affordable tickets is still difficult for many travelers as average prices are up nearly tenfold amid high demand. There will be 15 passenger flights between China and Japan every week in August, up from 12 a week last month, according to the Japanese embassy in China and airline companies.”, Caixin, August 6, 2020
“A growing number of cruise lines are canceling sailings into 2021: The first Crystal voyage now available for booking isn’t until Jan. 5, 2021. Crystal isn’t alone. A growing number of cruise lines are giving up on efforts to bring back voyages before the end of the year. Among them are Celestyal Cruises, which recently canceled all sailings through March 6, 2021, and Victory Cruise Lines, which has dropped all sailings until April 24, 2021. Canada cruise specialist Adventure Canada also has canceled all 2020 departures. One of the world’s biggest cruise lines, Princess Cruises, recently canceled nearly all its sailings in the Caribbean and many other regions through at least Dec. 15.”, The Points Guy, August 8, 2020
Latin America
“Covid-19 Derails Latin America’s Bid for Middle-Class Prosperity: Region faces a record GDP decline this year and will likely lag behind other emerging markets in any recovery. The pandemic has devastated hundreds of thousands of businesses across Latin America, setting back the clock on the social and economic gains made over the past two decades when a global commodities boom powered breakneck growth. Now Latin America’s economy is expected to contract 9.4% this year, according to the International Monetary Fund, the worst downfall on record for a region that was already wrestling with political turmoil and social unrest before it became a hot spot for Covid-19.”, The Wall Street Journal, August 6, 2020
Australia
The state of Victoria is on a Stage 4 lock down. “A curfew is in place between the hours of 8pm until 5am. This means you must be at your home during these hours. The only reasons to leave home between 8pm and 5am will be work, medical care and caregiving.
The four reasons that you can leave home remain, but further limitations are now in place for: shopping for food or other essential items; exercise (applies to outdoor exercise, and with only one other person); permitted work; and caregiving, for compassionate reasons or to seek medical treatment also remains a permitted reason to leave home. As much as you can, you must stay at home. When you leave home, you must use a face covering, unless you have a lawful reason for not doing so.”, Victoria State Government, Health and Human Services, August 2, 2020
https://bit.ly/VictoriaShutDown
“Restructuring Virgin Australia to shed wide-body jets, shrink to an all-Boeing 737 airline. The Brisbane-based carrier will prune its more fleet of more than 130 planes to just about around 75 Boeing 737s and will shrink its network to include only domestic Australia and short-haul international routes, Virgin Australia said Wednesday.”, The Points Guy, August 5, 2020
“McDonald’s closes restaurants and moves to delivery only in Melbourne while the city is under coronavirus curfew: McDonald’s stores in Melbourne move to delivery-only under Stage 4 lockdown. Popular fast food restaurant said there doors will be shut between 8pm and 5am. Those looking to fix their French fry craving will need to download an app.”, Daily Mail, August 6, 2020
“Pandemic Leave Disaster Payment: Prime Minister Scott Morrison today announced that the pandemic leave offer of $1500 may extend to states and territories outside of Victoria. The Prime Minister this week announced a new $1500 payment which will be available to workers who have exhausted, or do not have, sick leave and have been directed to self-isolate or quarantine by a public health official. People will be able to access the payment more than once, if they need to self-isolate more than once. The payment does not apply to people on JobKeeper or JobSeeker.”, Australian Retailers Association, August 5, 2020
Brazil
“Brazil’s economy: nowhere to go but up?: Brazil’s central bank is expected to cut its benchmark interest rate today to 2%—a record low— amid a devastating recession and the world’s second-highest number of covid-19 deaths. Paulo Guedes, the economy minister, has had to abandon his trademark austerity in favour of measures to help businesses and boost spending, including a monthly payment of 600 reais ($115) to more than 60m Brazilians. The central bank has sought to dispel gloomy predictions. Its president said recently that the economy has started a “V-shaped” recovery and that a previous GDP forecast of -6.4% for 2020 was too pessimistic. The economy ministry thinks the drop will be -4.7%. It is betting on congress to pass an ambitious tax reform that would simplify accounting for businesses and attract more foreign investment. The reform has been years in the making—and has spent years on the shelf—but during a pandemic, anything is possible.”, The Economist, August 5, 2020
Mainland China
“China factory activity expands at fastest rate in 9 years: Manufacturing survey data beat expectations….The Caixin manufacturing purchasing managers’ index, a private sector survey, beat expectations to hit 52.8 in July, its highest level in more than nine years. A figure of more than 50 indicates expansion compared with the previous month. The reading reflects a bounce back of activity after a sharp contraction earlier this year, when the country was under lockdown because of the coronavirus pandemic. China’s economy returned to growth in the second quarter and factory activity has increased in each of the past three months.”, The Financial Times, August 3, 2020
“China becomes a refuge for U.S. companies after overcoming COVID-19: U.S. companies, including Nuke and tesla, have been buoyed by strong results from China.”, The Wall Street Journal, August 7, 2020
Costa Rica
“Costa Rica to begin staggered reopening as July coronavirus cases jump: The Costa Rican government will begin an economic reopening on Saturday in a bid to reverse a sharp coronavirus-induced slowdown, the president said on Wednesday, even though the official tally shows the COVID-19 caseload continuing to rise. The government will allow businesses and restaurants to reopen during the first nine days of August, but will then pause the effort for the following 12 days and resume restrictions, according to Alvarado’s plan, who added that the cycle was expected to be repeated.”, Reuters, July 29, 2020
Europe
“Reimagining European restaurants for the next normal: To win in the next normal, European restaurants will need to embrace innovation in their channel strategy, menu offerings, and business model.”, McKinsey, August 5, 2020
https://bit.ly/ReimagingingEuropeRestaurants
France
“Paris Rolls Out Red Carpet for Those Who Can Make It: Travel restrictions on the U.S. and China, and the threat of a coronavirus rebound, have kept most foreigners away. How desperate is the City of Light for tourists these days? Even the waiters are friendly. The lines are gone. Public transportation is a breeze, with plenty of seating and social-distancing. Hotels and restaurants—bereft of deep-pocketed American, Chinese and Middle Eastern clientele—are hustling to fill rooms and tables. The main beneficiaries: other Europeans.”, The Wall Street Journal, August 1, 2020
Ireland
“Ireland to Introduce COVID-19 Testing at Airports: The Irish government is to introduce COVID-19 testing at airports. The measure is a response to the rise in cases in other countries. Health Minister Stephen Donnelly said, ‘We’re introducing random testing at the airports and an increased public health presence…We’re examining other options as well for further restrictions on non-essential travel.’”, Airways Magazine, August 2, 2020
Japan
“Japan Sees 1,000-Plus Daily Hikes In Coronavirus Cases As Economy Slowly Rebounds: Japan, which initially saw success in keeping the coronavirus from swamping the nation, posted more than 1,000 new cases for at least five consecutive days between July 29 and Aug. 2, according to local reports, even as the nation eases some portions of a travel ban to boost its economic recovery…the Japanese case counts have been rising, according to Kyodo News and Nipon.com, as the Tokyo metropolitan government on Tuesday reported 309 new cases, with people in their 20s and 30s accounting for about 62% of Tuesday’s cases in the capital.”, Forbes, August 4, 2020
Kenya
“Kenya Airways Restarts International Flights: Kenya Airways (KO) resumed today its international flights. The carrier is set to fly to about 30 destinations since the routes were suspended due to COVID-19 in March. The airline resumed domestic flights in mid-July after the government cleared local air travel. Air France KLM holds a small stake in KO.”, Airways Magazine, August 1, 2020
Kuwait
“Kuwait Bans Commercial Flights from 31 Countries Over Covid-19: While other flights will resume, countries on the barred list include India, Iran, China, Brazil, Lebanon, Spain, Singapore, Egypt and Sri Lanka, the Directorate General of Civil Aviation said in a statement. The airport resumed commercial flights on Saturday as part of a phased re-opening after a five-month suspension when the country imposed measures to control the spread of the coronavirus. It plans to reach full capacity by mid-2021.”, Bloomberg, August 1, 2020
Mexico
“Carl’s Jr. to open new restaurants in Baja California Sur: Outlets to open soon Cabo San Lucas, San José del Cabo. At a time when restaurants are failing worldwide due to the coronavirus pandemic, American fast-food chain Carl’s Jr. says it is expanding in Baja California Sur (BCS).”, Mexico News Daily, July 28, 2020
New Zealand
“Coronavirus: New Zealand marks 100 days without community spread: New Zealand has gone 100 days without recording a locally transmitted Covid-19 case, a milestone that has both been welcomed and brought warnings against complacency. The last case of community transmission was detected on 1 May, days after the country started easing its lockdown. Sunday was the fourth day in a row that no new cases of Covid-19 were reported.”, BB News, August 9, 2020
Panama
“Copa Airlines will resume commercial operations in mid-August, bringing to an end an almost five-month period where the Star Alliance member’s entire fleet has been grounded because of the COVID-19 pandemic. A wider network expansion is planned from early September, providing additional coronavirus-related travel restrictions are not imposed. The August flight program will only include 10 cities in the region. Copa plans to reach 30%-40% of the company operation by December 2020.”, Enrique Tellez, Franchise Consultant, Panama City
The Philippines
“Philippine Airlines Suspends Domestic Service from Manila: Following the Philippines’ decision to resume lockdown, Philippine Airlines (PR) announced the suspension of its domestic flights at Manila’s Ninoy Aquino International Airport (MNL) until August 18. However, the airline will continue to fly between the capital and international destinations when circumstances allow it. Apart from Manila, PR has not announced the suspension of any other domestic route.”, Airways Magazine, August 5, 2020
Russia
“Russia Resumes International Flights To Select Destinations: After approximately four months of international isolation, on Aug. 1 some airports in Russia were able to welcome international departure to a small number of foreign destinations. Earlier in the month, Russian consumer watchdog Rospotrebnadzor had sent a memo to the Transport Ministry and the Federal Air Transport Agency containing a list of 13 countries that meet epidemiological safety requirements for safe welcome of travelers. The list included the U.K., Hungary, Germany, Denmark, Italy, the Netherlands, Norway, Poland, Finland, Vietnam, China, Mongolia and Sri Lanka, online outlet eTN reported.”, Airline Geeks, August 2, 2020
Saudi Arabia
“For the first time in Saudi history, the government barred Muslims from entering the kingdom from abroad for the (annual) Hajj. Some 2.5 million pilgrims usually visit the Saudi Arabian cities of Mecca and Medina for the week-long ritual – a once-in-a-lifetime duty for every able-bodied Muslim who can afford it. But this year as few as 1,000 people already residing in Saudi Arabia will take part in the gathering in an effort to control the spread of COVID-19.”, Sky News, July 29, 2020
Singapore
“Singapore Deploys Drones to Monitor Social Distancing: Will Other Tourist Destinations Follow? Singapore‘s police have been trialling two pilotless drones developed by Israel’s Airobotics to help enforce social distancing measures aimed at containing the spread of COVID-19. The small machines weigh 10 kg (22 pounds) and are programmed to track anomalies such as gatherings and stream footage to the police.”, Skift, August 8, 2020
Thailand
“The American Chamber of Commerce in Thailand (AmCham Thailand) has presented a white paper in responding to the government’s “New Normal” initiative, offering advice about long-term measures to support sustainable economic growth in Thailand.
In the white paper “Better than Before — Creating Long Term Growth in Thailand Post-Covid-19”, AmCham demonstrates its support for the Thai government’s vision of making the nation a high-income country by 2037 and suggests cooperation in key areas such as trade relations, global supply chains, digital economy, small and medium enterprises, tourism, healthcare, and energy to accelerate US investment in the region.”, The Bangkok Post, July 31, 2020
https://bit.ly/BPThailandGovernmentIncentives
United Arab Emirates
“Emirates Introduces COVID-19 Insurances to Passengers, Cuts Crew Costs: Emirates, a Dubai-based airline, is trying a new method to boost confidence for international travel by introducing a brand-new insurance to passengers. Emirates’ new program will compensate passengers if they are diagnosed with COVID-19 during their travel. According to an airline press release, the program is valid from now until the end of October and offered for free to Emirates customers regardless of the passenger’s nationality, class of travel or destination. Passengers will be covered for medical expenses up to 150,000 euros ($176,000) and quarantine costs of 100 euros per day for 14 days. The insurance is valid for 31 days from the start of the passenger’s journey. Passengers will be covered automatically when booking with the carrier and don’t need to register. ‘We are now taking it to a next level, by being the first in the industry to offer our customers free global cover for COVID-19 medical expenses and quarantine costs should they incur these costs during their travel,’ said HH Sheikh Ahmed bin Saeed Al Maktoum, the chairman and chief executive of Emirates Group.”, Airline Geeks, July 29, 2020
United Kingdom
“UK manufacturing began the third quarter on a stronger footing with output in July growing at its fastest pace in nearly three years. The closely watched manufacturing purchasing managers’ index (PMI) rose to 53.3 from 50.1 in June as the lockdown eased and demand picked up. A reading above 50 indicates growth. While the figure was slightly less than the flash estimate of 53.6, it is the highest since March 2019. Orders grew for the first time in five months and optimism increased by the most in two years. Economists cautioned that the sector would take a while to recover from the pandemic. Rob Dobson, at survey compiler IHS Markit, said: ‘There is a significant risk of further redundancies and of furloughed workers not returning unless demand and confidence stage more substantial and long-lasting rebounds in the months ahead.’”, The Times Of London, August 3, 2020
Trend? “Apple asks UK retail landlords to cut rent by 50% and offer a ‘rent-free period’ due to COVID-19. The report explains that Apple would like its rent to match what is being paid by other retailers amid the slowdown caused by the COVID-19 pandemic. In light of the COVID-19 shutdown and much lower foot traffic, many mall operators in the UK offered discounted rent to their tenants. Simply put, mall operators are looking to incentivize struggling tenants to stick to their lease despite the economic downturn.”, 9to5MAC, August 2, 2020
“More British workers are staying at home than in any other major European nations – but those who have gone back are doing so for longer. Little more than a third (34 per cent) of UK staff are back at their desks. Contrasts with 83 per cent of French office staff and 70 per cent of Germans. But Britons who have returned are doing so for more days a week than rivals.”, The Daily Mail, August 6, 2020
“The British Museum will be re-opening selected galleries to the public from Thursday 27 August. A new one-way route round the Ground Floor and Lower galleries will allow you to see objects from ancient Egypt, Greece, Rome and Assyria, before exploring Africa, North America, Mexico and the Enlightenment Gallery. everyone – including Members – will need to book a free ticket in advance to visit the Museum. In recognition of your invaluable support, Members will have the opportunity to book ahead of the general public.”, British Museum Friends, August 7, 2020
United States
“63% of U.S. consumers are willing to pay more to have seats blocked. Many airlines instituted blocking middle seats to increase safety for passengers amid the coronavirus, but some have already stopped. Here’s a roundup of airline policies.
https://bit.ly/USAirliinePolicies
Fish Consulting has issued an update on the status of the U.S. restaurant, travel 7 hospitality, fitness, health & wellness, home services, retail and beauty sectors.
https://bit.ly/USSectorUpdates
“Regal Crown theaters are schedule to reopen on August 21st in California”, Regal Crown Club member email, August 6, 2020
“Here are five charts illustrating U.S. economic trends amid the coronavirus pandemic: States are taking differing approaches to reopening and closing, and the economy is feeling the impact differently depending on the sector. The economic worry tied to rising coronavirus cases has impacted the health of certain areas of the economy.”, CNBC, August 2, 2020
https://bit.ly/USAIn5Charts
Articles And Charts About Doing Business in The Times Of COVID-19 and Beyond
“COVID-19 seems to have changed lifestyles for good: Google search traffic for cooking, exercise and crafts remains above normal levels.”, The Economist, August 5, 2020
“The third edition of the Economist Intelligence Unit’s Global Business Barometer (GBB), fielded in June, tracked sentiment as global executives started thinking about recovery. Readings reveal a variety of views. The most optimistic would create a V-shaped chart. Should more disruption follow, we might see a volatile W-shaped chart. More likely is a U-shape, where economies tred the bottom for a period before gradual upturn.”, Economist Intelligence Unit, July 2020
Innovation: “Panera’s Unlimited Coffee Subscription Program Is Already A Big Success: Panera launched an unlimited subscription coffee program in late February, a move CEO Niren Chaudhary called ‘disruptive.’ Indeed, no other chain had launched such a program without restrictions on size, daypart or channel. Then the pandemic hit. Workers stopped commuting to the office (and leaving their homes in general), and the only thing that was actually disrupted was business as usual. Still, Panera has so far managed to break the 835,000-subscriber level on its fledgling, $8.99-a-month program, including over 700,000 sign-ups alone in July.”, Forbes, August 4, 2020
Global Markets Complexity Index: A Guide for Multinationals Navigating Expansion and Contraction Developed in Association with The Wall Street Journal. The GMCI is a framework for geographic footprint strategy that helps multinationals navigate international expansion and contraction. Explore the analysis of market, operational, and regulatory complexity across 100 countries…”, Wilson Perumal & Company, August 10, 2020
https://bit.ly/GlobalMarketsComplexityIndex
“Your ultimate guide to working from home productively: As the remote work experiment drags on, here are five critical things you should be doing every day to maximize productivity. The remote work shift has crystallized into a long-term reality, with many workers accepting (and even looking forward to) this new way of life. Research shows that the longer workers operate remotely, the more likely this habit will stick. Kate Lister, president of Global Workplace Analytics, anticipates 25-30% of the workforce will be working at home multiple days a week by the end of 2020.”, Fast Company, August 4, 2020
Who We Are And What We Do
Edwards Global Services, Inc. (EGS) provides a complete International solution for U.S. businesses Going Global. From initial global market research and country prioritization, to developing new international markets and providing operational support around the world. Our U.S. based executive team has experience living and working in many countries. Our Associate network on the ground overseas covers 40+ countries.
Founded in 2001, Edwards Global Services, Inc. (EGS) takes U.S. businesses global and currently has activity in 25 countries. Our Clients are all consumer-faced brands. Edwards Global Services, Inc. (EGS) has twice received the U.S. President’s Award for Export Excellence
Find out more about the services we provide U.S. companies Going Global at: www.edwardsglobal.com
William Edwards has 46 years of international operations, development, executive and entrepreneurial experience and has lived in 7 countries. With experience in the franchise, oil and gas, information technology and management consulting sectors, he has directed projects on-site in Alaska, Asia, Europe and the Middle and Near East. Mr. Edwards was named to the District Export Council of Southern California by the U.S. Secretary of Commerce in 2016 and again in 2019.
William Edwards, CFE, is CEO and Global Advisor to Chief Executives, of Edwards Global Services (EGS). Contact Bill at bedwards@edwardsglobal.com or +1 949 224 3896.
EGS Biweekly Global Business Newsletter Issue 9, Monday, July 27, 2020
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
“A pessimist is one who makes difficulties of his opportunities; an optimist is one who makes opportunities of his difficulties.” Harry Truman, the 33rd President of the United States
“Do the best you can until you know better. Then when you know better, do better.” — Maya Angelou
“The main thing is to have good health and to embrace opportunities which come along every day. As Sir Winston Churchill once said: “Success is not final, failure is not fatal; it is the courage to continue that counts!”, Stewart Germann, Auckland
Introduction
The goal of this biweekly newsletter is to update the economic and business situation in key trading countries across the world. In our business, we monitor 30+ countries, 25 daily international information sources and six business sectors to keep up with what is going on in this ever-changing environment. Our team on the ground covers 43 countries and provides us with updates about what is happening in their specific countries.
Many of our newsletter readers send us their input and perspectives to help us publish a balanced overview about the world every other week. Our contact information is at the bottom of this newsletter.
Highlights In This Issue
This issue focuses on what is happening in more than 20 countries that impact health, consumer spending, business investment and travel. A few highlights:
- McKinsey U.S. Survey says masks will be on people’s faces at least through early 2021
- Google to Keep Employees Home Until Summer 2021 Amid Coronavirus Pandemic
- The World Trade Organization has five charts that indicate the worst may be over for coronavirus and global trade
- Patty power: The Economist’s latest Big Mac index: The McDonald’s Big Mac hamburger. It costs about US$3.10 in China and $5.71 in America. See below for what a Big Mac costs in key countries.
- How retail shopping and eating will change as result of the pandemic
McKinsey Survey says masks will be on people’s faces at least through early 2021
“As of late May/early June, 88 percent of respondents in the United States thought the coronavirus infection rate would be the same or lower in the first quarter of 2021—whether there’s a vaccine or not. But most expect to still be wearing masks.”, McKinsey, July 14, 2020
International School Openings
“Some Countries Reopened Schools. What Did They Learn About Kids and Covid? Studies from around the world suggest that success depends on class size, distancing, the age of the students, and how prevalent the virus is locally. As school officials try to figure out whether to open classrooms this fall, the science they need to make these tough choices is still evolving. A few things are clear: That most kids don’t become as seriously ill from Covid-19 as adults, and have much lower fatality rates. That’s according to data from the US and China published by the Centers for Disease Control.”, WIRED, July 27, 2020
https://bit.ly/WIREDReopeningSchools
International Travel Updates
“Here Are The New Rules For Air Travel After The Pandemic: Canceled flights. Mandatory masks. Temperature screenings. Air travel just isn’t the same since the COVID-19 outbreak. We’re flying in a strange and often confusing world. So what are the new rules for air travel after the pandemic? Some changes, like new airline refund policies and mandatory face coverings, are widely known. Others aren’t. And it’s these unpublicized shifts — happening quietly behind the scenes — that suggest passengers have an advantage that they haven’t had in years.”, Forbes, July 24, 2020
https://bit.ly/ForbesNewTravelRules
“Business travel changed– but not forever: In the thick of the pandemic, it seemed hard to imagine that we would ever travel for business again. Health and hygiene concerns coupled with global lockdowns, conspired to take all our meetings online. However, now the future is looking brighter, will businesses stay loyal to Zoom, or will we return to the old ways of travel and doing business face-to-face?
https://bit.ly/RegusBusinessTravelChanges
“EU extends travel ban on Americans amid spike in US coronavirus cases: The European Union extended its travel ban on Americans on Thursday, as coronavirus infections continued to rise across the United States. The EU first started lifting international travel restrictions on July 1, welcoming visitors from 14 countries, including Canada, South Korea and Australia. The U.S. was left off that initial list and Americans remain barred from visiting the bloc for at least another two weeks under Thursday’s decision, announced by the European Council.”, USA Today, July 16, 2020
“U.S., Canada, Mexico to Keep Land Border Closed Until August: The borders will be closed until at least Aug. 21. ‘Based on the success of the existing restrictions and close collaboration with Mexico and Canada, @DHSgov will continue to limit non-essential travel at our land ports of entry with Canada and Mexico until Aug 20,’ Chad Wolf, the acting U.S. Secretary of Homeland Security, said in a tweet. ‘Close collaboration with our neighbors has allowed us to respond to #COVID19 in a North American approach and slow the travel-related spread of the virus.’ Canadian Prime Minister Justin Trudeau said the extension was a move ‘to keep people in both our countries safe.’ Since the land border was closed, passenger crossings have dropped by 90 percent or more, Reuters reported.”, Travel and Leisure magazine, July 26, 2020
“Virgin Atlantic resumed passenger flights on July 20, ending a three-month hiatus caused by the coronavirus outbreak. The first flight was London’s Heathrow Airport to Hong Kong. The first service, operated by a Boeing 787-9 aptly named Leading Lady, had special measures implemented to ensure that passengers can fly safely. These included mandatory face masks and a Health Pack for each passenger, which included three masks, surface wipes and hand gel. Since this flight, Virgin has resumed services to two additional destinations. These include New York, operated by an Airbus A350 named Queen of Hearts, and Los Angeles, which was served by the Dreamliner called Queen Bee.”, Airline Geeks, July 22, 2020
“U.S. passenger flights to India can resume July 23: The government of India has agreed to allow U.S. air carriers to resume passenger services in the U.S.-India market starting July 23, the U.S. Transportation Department said on Friday.”, Reuters, July 17, 2020
“Set sail and social distance: Taiwan resumes ocean cruise amid pandemic: Taiwan resumed an island-hopping ocean cruise on Sunday, joining a handful of places in the world to restart voyages after the coronavirus pandemic brought the industry to a virtual standstill. Some 900 holiday makers are adapting to new safety measures when boarding Genting Hong Kong’s (0678.HK) Explorer Dream embarking from Taiwan’s northern Keelung port. The company now offers trips of up to five days from Taiwan to its scenic outlying islands of Penghu, Kinmen and Matsu.”, Reuters, July 26, 2020
“Southwest Airlines backtracks on a full schedule by year-end as recovery stalls. It was less than two months ago when Southwest Airlines unveiled plans to fly a nearly full schedule by December in an effort to grow out of the coronavirus pandemic as it has past recessions. Dallas-based Southwest plans to fly about 25% less than it flew at the end of 2019 by December, CEO Gary Kelly said during the airline’s second quarter earnings call on Thursday.”, The Points Guy, July 26, 2020
Africa
“Welcome to Africa: A country-by-country guide to reopening: We’ve been doing a lot of stories about our dream trips and when we can realistically book them. Africa is at the top of our wish list. And several countries in Africa have reopened to tourism.”, The Points Guy, July 26, 2020
https://bit.ly/TPGGettingtoAfricaNow
Greater Asia
“A Country-by-Country Look at How Asia Is Reopening: All the reopening statuses and current travel restrictions. Nearly every country in the world has been touched by the virus, there are travel restrictions at most borders and, for the imminent future, we’re all staying pretty close to home. But because countries in Asia like China, Japan, and South Korea were impacted early on, they’ve also been earlier to peak, earlier to flatten their curves, and, generally, earlier to reopen.”, CNN Traveler, July 15, 2020
https://bit.ly/CNNTravelerAsiaReopening
Australia
“McDonald’s to open its 1,000th store in Australia – and the cutting-edge super green Melbourne restaurant will use solar panels, fibre cutlery and renewable energy. McDonald’s is set to open its 1,000th restaurant following 50 years in Australia at the end of the year.”, Daily Mail, July 25, 2020
“Australia extends jobs support as new COVID-19 outbreaks threaten economy: Australia will spend A$16.8 billion ($11.8 billion) to extend its wage subsidies for businesses hit by the coronavirus pandemic, as a surge in new infections in the country’s southeast threatens to keep the economy in recession.”, Reuters, July 20, 2020
“Bank chief executives have backed the government’s revamp of a scheme to provide up to $40 billion in taxpayer-backed loans to help the recovery of small and medium-sized firms. Changes to the $40 billion scheme include lending larger amounts for longer terms of up to $1 million for five years, which is an increase from the scheme’s initial limits of $250,000 for up to three years.”, The Brisbane Times, July 20, 2020, compliments of Jason Gehrke, Managing Director, The Franchise Advisory Centre, Brisbane
Canada
“WestJet Announces Schedule Expansion for August: As the summer travel season moves forward, Canada’s WestJet is expanding its August schedule and continuing its flight operations for July. The Calgary, Canada-based carrier plans to add more than 200 flights to 48 destinations across Canada and beyond. Even though there seems to be no end in sight for the global pandemic, the airline is also dedicating efforts to safeguard its passengers.”, Airline Geeks, July 20, 2020
Mainland China
“Chinese GDP grows 3.2% in second quarter: Gross domestic product grew 3.2 per cent in the three months to the end of June, compared with the same period last year. The positive economic data follow the first annual decline in decades in the previous quarter, when China’s GDP fell 6.8 per cent as the country struggled to deal with the impact of the Covid-19 crisis.”, The Financial Times, July 16, 2020
“Passengers Now Need a Negative Covid Test Certificate Before Flying to China: The test, paperwork, and five-day time frame all add up to a lot of extra work for the traveler. Those airlines that are allowed to fly to China will probably be hoping it’s a very temporary measure.”, July 21, 2020
“Getting Expats Back to China During COVID-19: With the new school year due to resume in the fall, some AmCham China members are having to arrange alternative plans for their children’s schooling to contend with the very real possibility that they will not be able to return to China in time for the start of the fall term.”, AmCham China, July 24, 2020
https://bit.ly/GettingExpatsBacktoChina
“Yum China Holdings Inc was named as an official retail food services sponsor for the Beijing 2022 Winter Olympics, the KFC operator in China said on Monday. Yum China’s brands, including KFC and Pizza Hut, will be on site at the Olympic and Paralympic Winter Games in Beijing. The company, a licensee of Yum Brands Inc in mainland China, was also named as an official sponsor of the Chinese Olympic Committee through the end of 2024.”, Reuters, July 20, 2020
https://bit.ly/YUMChinaOlympics
“Beijing partially reopens movie theaters as coronavirus threat recedes: Cinemas in parts of the city deemed at low risk of cross-infection began admitting moviegoers under social distancing rules. Tickets must be booked in advance, attendance is capped at 30% of capacity and no eating or drinking is allowed during the show. As with most venues in China, a temperature check and online travel record were required for entry. Cinemas have been closed for around six months but began reopening this week in major cities throughout the country.’ Fortune and Associated Press, July 24, 2020
“Cinemas in China begin to reopen after six-month coronavirus closure: Some cinemas in Chinese cities from Shanghai to Chengdu reopened on Monday after a six-month closure, raising hope that the world’s second largest movie market can start to recover from painful losses during the coronavirus pandemic.”, Reuters, July 20, 2020
“Chinese car stocks get Covid-19 sales boost as consumers look for safer alternative to public transportation. Car sales improved in June as buyers returned to showrooms after worst of the coronavirus”. South China Morning Post, July 20, 2020
https://bit.ly/SCMPChinaautosales
The EURO Zone
“Eurozone business activity rebounds from pandemic hit: Bloc’s services sector posts notable uptick and German manufacturing recovers. Services sector businesses across the eurozone reported a substantial strengthening in July, according to the IHS Markit flash purchasing managers’ index that rose to 55.1, from 48.3 in June. The result exceeded the expectations of economists polled by Reuters, who had forecast a reading of 51.The index for manufacturing rose from 47.4 in June to 51.1 in July, and the composite PMI, an average of the two sectors, improved from 48.5 in the previous month to 54.8, above the 51.1 forecast by analysts.”, The Financial Times, July 24, 2020
France
“Disneyland Paris Is the Latest Disney Theme Park to Reopen Amid the Coronavirus Pandemic. Disneyland Paris welcomed guests back this week for the first time in months.”, Travel And Leisure magazine, July 16, 2020
Germany
“In Germany, the COVID-19 induced economic dive has led to a surge in Franchise leads by at least 50 percent; however, not all sectors are benefitting equally. There is massive interest for franchise systems that are doing well despite the downturn such as logistics brands InXpress or Mail Boxes Etc., security brand Signal 88 or care concept Home Instead. But buyers shun others, especially from the food, retail, fitness and wellness sectors out of fear of a second wave and another lockdown. “Candidates will be much more selective than in the past and will look at sectors that are COVID- and recession proof,” summarizes Franz-Josef Ebel, Managing Director of Master Franchise Germany.
“German cruise ship, Mein Schiff 2, sails with 1,200 people on board in first return voyage: Occupancy was limited to 60% so passengers can keep their distance. There were 1,200 people on board compared to the ship’s normal 2,900 capacity. The ship sailed from the port of Hamburg toward Norway, and passengers will spend the weekend at sea with no land stops before returning to Germany on Monday.”, USA Today, July 25, 2020
Italy
“It has been another important week for Lagardère Travel Retail Italia, which continues with the reopening of its stores around the country. Thanks to the collaboration of all the staff, we have achieved this new success, putting the safety of our employees and customers first. We are happy to celebrate these results once again, as we keep on looking into the future, working hard every day, to remain an important point of reference for Italians and international travelers.”, Lagardère, LinkedIn post, July 24, 2020
Japan
“Theme parks in Japan are telling visitors to ‘scream inside your heart’ — and it’s 2020 in a nutshell: As weird as this year has been, though, we didn’t see this new policy in Japan coming — namely, that you’ll have to “scream inside your heart” while riding roller coasters to stop the spread of COVID-19.”, The Points Guy, July 17, 2020
Mexico
“Mexico tightens coronavirus curbs in tourist spots, other pockets: The spread of the coronavirus has spurred Mexican authorities to impose local restrictions on mobility, commerce, and leisure, particularly in popular tourist destinations, even as the government seeks to revive the battered economy.”, Reuters, July 16, 2020
New Zealand
“There are lots of good things happening with business – new franchisors are preparing to break forth and multiple, and existing franchise systems are appointing new franchisees as many people are keen to own their own business and help shape their destiny….As a nation we should embrace the good things happening and not dwell on the negative – yes, there are escapees from hotels under isolation and that will continue, there are new cases of Covid but no community spread so far, and we live in NZ with our borders closed except for Kiwis returning from overseas.”, Extracted from a July 16, 2020 LinkedIn post by Stewart Germann, Germann Law Office, Auckland
Panama
“Panama has delayed the process of reopening the economy due to the increase in Covid-19 cases. There are only two economic sectors open out of six sectors . Restaurants were scheduled to open in June but because of the above reason, the entire opening process has been paused until an undetermined date. air travel suspended. Reopening of airport pending.”, Jose Enrique Tellez, Franchise and Business Consultant, Panama City
“Copa Airlines Pushes Back Restart for Fourth Time: The Panamanian carrier Copa Airlines was repeatedly forced to modify the restart date of regular operations. According to ALNNEWS, the Civil Aeronautical Authority (CAA), extended for the fourth time the suspension that weighs since March 22 on commercial aviation in Panama. Due to the suspension of flying until August 22, Copa Airlines reported that the new restart date would be September 5. With this new postponement, the 102 aircraft fleet will have been grounded for a total of 6 months.”, Airline Geeks, July 25, 2020
Saudi Arabia
The government is expected to restart travel to and from the Kingdom in August or September according to a Riyadh consulting firm.
Spain
“Spain’s coronavirus epidemic is under control, government says: Spain’s coronavirus epidemic is under control, the (Spanish) foreign ministry said on Sunday, after the British government imposed a 14-day quarantine on all travellers returning from the Mediterranean country in response to a surge in new cases there. Hospitals are coping well with the increase in infections and more than half of new cases are asymptomatic, the ministry said, adding that outbreaks in Catalonia and Aragon should soon be brought under control.”, Reuters, July 26, 2020
South Africa
“After Early Success, South Africa Buckles Under Coronavirus Surge: Lauded in the early stages of the pandemic for taking decisive steps to limit Covid-19 infections, South Africa is now battling one of the world’s fastest-growing outbreaks that is overpowering hospitals and has caused a dramatic increase in deaths. Public schools, which partially reopened in early June, will close for four weeks starting Monday, as the country enters a peak-infection period that models suggest could stretch into September. Africa’s most developed economy now has confirmed 434,200 cases of Covid-19, the fifth-highest toll in the world behind the more-populous U.S., Brazil, India and Russia. ‘The coronavirus storm has indeed arrived,’ President Cyril Ramaphosa said Thursday, in his 11th address to the nation since the first case of coronavirus was identified in early March.”, The Wall Street Journal, July 26, 2020
United Kingdom
“Retail sales rose by a better-than-expected 13.98 per cent month-on-month in June as they continued to recover after record falls at the height of the lockdown, according to data released this morning by the Office for National Statistics. City economists had forecast an 8 per cent rise. Jonathan Athow, from the ONS, said: “Retail continued to recover from the sharp falls seen in April, with overall sales now almost back to pre-pandemic levels.”, The Times of London, July 24, 2020
“Coronavirus: Gyms and swimming pools reopen in England as tourists are welcomed back to Wales: Indoor gyms, swimming pools, dance studios and leisure centres in England are allowed to reopen today for the first time in four months – but at least a third of public facilities are expected to remain shut due to financial hardship. Earlier this month, Culture Secretary Oliver Dowden announced that gyms and leisure centres would be able to reopen today, with strict hygiene and social-distancing measures.”, Sky News, July 25, 2020
“McDonald’s has announced plans to reopen hundreds of restaurants for dine-in services across the UK from this week. Last week, it was reported that the fast food chain was testing safety measures as it moved towards reopening dine-in restaurants in the near future. The firm has now stated that around 700 restaurants across the UK will be reopened for dine-in customers from Wednesday 22 July.”, The Independent, July 21, 2020
“Coronavirus: Heathrow packed as passengers turn up eight hours before flights: Concern grows as families prepare for big getaway this weekend. Air passengers are arriving up to eight hours before flights at Britain’s biggest airport, fuelling concerns over crowding in terminals. Passengers told of being packed in “like sardines” at Heathrow with claims that some were failing to wear facemasks or comply with one metre-plus social distancing rules.”, The Times of London, July 23, 2020
“Air passengers from commercial hotspots like New York, Singapore and Dubai could be made exempt from quarantine in bid to boost economy: Government is being urged to approve new ‘test-on-arrival’ scheme at airports. Would see all passengers tested and, if negative, avoid 14 days of quarantine. Hoped new scheme would encourage business travel and boost the UK economy.”, Daily Mail, July 25, 2020
United States (including Hawaii)
“Hawaii islands could allow visitors to quarantine in ‘resort bubbles’: Officials on three Hawaiian islands – Maui, Kauai, and the Big Island – are considering a plan to let tourists have a vacation-like experience while adhering to their 14-day quarantine. The concept is known as the “resort bubble,” and it would let visitors roam beyond their hotel rooms as long as they stay within a “geofence,” or within the confines of the property where they’re staying. The plan, which is still tentative, would be in effect for selected resorts..”, Business Insider, July 26, 2020
“American Airlines has flown more than its competitors during the pandemic, and it’s paying off: Faced with the worst crisis in airline history, American cut less of its schedule and did so at a slower pace than either Delta or United in March. But by April, it had decided to fly a more robust schedule for the upcoming summer, providing connectivity across the country that presumed ‘some recovery in demand,’ as American vice president of network planning Brian Znotins put it. Soon, American’s hubs in Charlotte (CLT) and Dallas/Fort Worth (DFW) were hopping once again. So much so that DFW was the busiest airport in the U.S. in May. There were even traveler complaints about crowded flights despite the airline never promising to block middle seats — even in the early days of the pandemic. Then, in a clear signal that America was ready to move again, more and more people kept buying plane tickets and flights filled up. So many people were buying seats that the carrier lifted what caps it had bookings even as competitors extended seat blocking measures saying they were needed to assure customers.”, The Points Guy, July 24, 2020
“Universal canceling Halloween Horror Nights because of virus: It’s hard to scare the bejesus out of someone in a haunted house while socially distancing, which may explain the decision by Universal to cancel its Halloween Horror Nights this year at its U.S. theme parks.”, ABC News, July 25, 2020
Articles About Doing Business in The Times Of COVID-19 and Beyond
“Google to Keep Employees Home Until Summer 2021 Amid Coronavirus Pandemic: Search-engine giant pushes back return to normalcy. Google will keep its employees home until at least next July, making the search-engine giant the first major U.S. corporation to formalize such an extended timetable in the face of the coronavirus pandemic. The move will affect nearly all of the roughly 200,000 full-time and contract employees across Google parent Alphabet Inc., GOOG +0.92% and is sure to pressure other technology giants that have slated staff to return as soon as January.”, The Wall Street Journal, July 27,2020
https://bit.ly/Googletokeepemployeeshome
“COVID-19 and the great reset: Economic recovery depends on the return of the consumer—but shopping will never be the same. New McKinsey research considers the possibilities.”, McKinsey, July 23, 2020
https://bit.ly/COVIDbusinessreset
“5 charts that show the worst may be over for coronavirus and global trade: World trade fell steeply in the first half of 2020 as the COVID-19 pandemic hit. Government and central bank intervention helped stem the losses. World Trade Organization economists now say we have avoided the worst-case scenario. Risks to the outlook include a second wave of COVID‑19 or trade restrictions. The worst-case scenario for global trade in the wake of the COVID-19 pandemic has been avoided, according to economists from the World Trade Organization (WTO).,” World Economic Forum, July 15, 2020
https://bit.ly/WEFGlobalTradeRecovering
“How Retail Shopping and Eating Will Change as a Result of the Pandemic: Both the retail and restaurant markets have been in a constant state of evolution, responding to generational shifts, technological advancements… and now, Covid-19. Will shopping at retail stores ever be the same post–Covid-19? How about dining at retail stores? The incorporation of food into retail stores was on the rise before Covid-19 (partially owing to the emerging Millennial generation and their experiential preferences), and is now on pause with stores closing or limiting their customer capacity.”, Franchising.com, July 26, 2020
https://bit.ly/FranchisingcomHowRetailWillChange
“Patty power: The Economist’s Big Mac index: In foreign-exchange markets, 7 yuan will buy you a dollar. But 7 yuan stretches further in China than a dollar does in America. One example is the McDonald’s Big Mac hamburger. It costs about 21.70 yuan (US$3.10) in China and $5.71 in America, according to prices collected by The Economist. July 16, 2020
About US
Edwards Global Services, Inc. (EGS) provides a complete International solution for U.S. businesses Going Global. From initial global market research and country prioritization, to developing new international markets and providing operational support around the world. Our U.S. based executive team has experience living and working in many countries. Our Associate network on the ground overseas covers 40+ countries.
Founded in 2001, Edwards Global Services, Inc. (EGS) takes U.S. businesses global and currently has activity in 25 countries. Our Clients are all consumer-faced brands. Edwards Global Services, Inc. (EGS) has twice received the U.S. President’s Award for Export Excellence
Find out more about the services we provide U.S. companies Going Global at: www.edwardsglobal.com
William Edwards has 46 years of international operations, development, executive and entrepreneurial experience and has lived in 7 countries. With experience in the franchise, oil and gas, information technology and management consulting sectors, he has directed projects on-site in Alaska, Asia, Europe and the Middle and Near East.
Mr. Edwards was named to the District Export Council of Southern California by the U.S. Secretary of Commerce in 2016 and again in 2019.
William Edwards, CFE, is CEO and Global Advisor to Chief Executives, of Edwards Global Services (EGS). Contact Bill at bedwards@edwardsglobal.com or +1 949 224 3896.
