International Women’s Day highlights impact of pandemic

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• Almost one in eight recent graduates was unemployed in the third quarter of 2020, highlighting the pandemic’s toll on the UK labour market

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Calls grow for ‘feminist economic recovery’

“The road to economic recovery should not be across women’s backs,” say Hawaiian authorities arguing for a change of focus in how authorities tackle the damage from the pandemic.

In an article for the Financial Times to mark International Women’s Day, Sanda Ojiambo, head of the UN Global Compact, an initiative to encourage businesses to adopt sustainable policies, says the Hawaiian proposals for a feminist economic recovery that highlights public spending and policies to support women and children should become the norm.

Although men are more likely to die from Covid-19, the pandemic has had a disproportionate economic effect on women: they are 1.8 times more likely than men to have lost their jobs, have dramatically increased their unpaid caring roles for children and older relatives and are at greater risk of coronavirus exposure from jobs in sectors such as health, where they comprise 70 per cent of the world’s workforce. They are also more likely to be the victims of domestic violence as lockdowns heighten household tensions.

Our Women in Business special report details some of the hurdles facing female executives thrown up by the pandemic. While the more widespread adoption of flexible working policies is welcome, there are dangers that women working predominantly from home will be left out of decision-making. In traditionally male-dominated societies such as Mexico, progress in equality has taken a knock during the crisis as women become much more vulnerable to losing their jobs. And in the US, access to credit, a vital option during the crisis, is a serious problem for black businesswomen — the fastest-growing demographic of entrepreneurs. The legacy of discrimination, the lack of advisers in black neighbourhoods and mistrust of traditional institutions all play a part. “It’s not that we want to take over the old boys’ club,” said the head of the Black Chamber of Commerce in Georgia. “We just want an invitation.”

A global survey of FT readers, meanwhile, found that one in five working mothers has taken, or was considering taking, a step back at work, as pandemic parenting takes its toll. 

Global economy

The US Senate’s approval of President Joe Biden’s $1.9tn stimulus plan at the weekend means the bill could come into law by Tuesday. Apart from reviving the economy, it has an important secondary goal of tackling inequality, writes Washington bureau chief James Politi. Its main planks — such as $1,400 cheques for those earning less than $75,000 — are aimed at those less able to cope with the crisis, rather than businesses and markets.

Our Big Read examines the crisis in Brazil, where new coronavirus infections and a delayed vaccination response are adding to despair at corruption and bloody violence in Rio de Janeiro. President Jair Bolsonaro has been blamed for mismanaging the crisis but is banking on an emergency benefits package worth R$44bn ($7.7bn) — including monthly cash transfers to the country’s poorest — to bolster his popularity.

Masayoshi Amamiya, the Bank of Japan’s chief monetary strategist, has signalled that the bank will continue monetary easing when it concludes its set piece policy review on March 19 as the country’s vaccination programme gets off to a difficult start. The lack of change will disappoint the financial sector which had hoped the BoJ would allow long-term bond yields to rise and make it easier for banks and pension funds to get returns on their money.

Business

Deliveroo announced details of a London stock market listing as it revealed a 54 per cent growth in revenues but a loss of £224m in 2020. The London-based food delivery company said the business was enabling more than 6m people to order from more than 115,000 restaurants, but the losses — during an unprecedented boom created by the pandemic — may raise questions over its long-term business model.

Retail expert Mary Portas writes for the FT on the importance of saving UK high streets scarred badly by the pandemic. Business rates need urgent reform but short-term handouts are not the answer, she says. High street locations are, however, proving attractive for one particular segment: overseas fast-food chains.

Wall Street is increasingly optimistic about first-quarter results for US businesses as they recover from the pandemic downturn. S&P 500 companies are forecast to record a 21.5 per cent rise in earnings per share compared with last year.

Markets

Chinese stocks today fell 3.5 per cent, the biggest single day’s fall in seven months, as the recovery rally peters out and fears grow about the effect of rising US bond yields. The decline — now totalling 12 per cent from recent highs — came even as new data showed a jump in exports of 60 per cent and a rise in imports of 12 per cent.

The sell-off in US bonds sparked by the fear of a return of inflationary pressures continued as President Biden’s stimulus package neared approval. “If it does make it through the House relatively unscathed, then you may see another round of US growth upgrades and probably more concerns about yields and inflation,” said a Deutsche Bank strategist. “The battle royale will continue.”

Lower prices for US bonds may make them more attractive to investors — but they are still not as attractive as equities, as the latest in our Charts that Matter series illustrates.

Have your say

For God Sake comments on Do young people really need the office?

“A lot of older people here are speaking for themselves, assuming that their opinions somehow resonate with the younger groups. They have all had the benefits of enjoying an office environment in their youth and enjoy the benefits of remote working now. Whereas new grads and other young professionals now do not have the pleasure of learning from others in the office, especially when you can turn your head for an answer. Now you have to wait for a response on email/IM, where people can deliberately take their time to reply (or are just genuinely busy) and that slows the learning process.

It’s much tougher operating remotely for people starting out. The office is needed. Even if it is at a reduced weekly rate, it holds its benefits. Anyone who says otherwise is simply at a point in their career where they do not have to worry about getting out there.”

Final thought

The one clear loser from THAT interview was Britain’s royal-watching press, says Joshua Chaffin, as Meghan and Harry talked to Oprah on everything from accusations of racism to serious mental health issues. “Its members will have sat astonished as Winfrey, one of the US’s most celebrated interviewers, unearthed enough gossipy nuggets in one session to sustain tabloids for a decade,” writes Josh.

We would really like to hear from you. Please send your reactions or suggestions to covid@ft.com. Thanks

Source: Economy - ft.com