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business Wednesday 2 december 2020

Glimmers of hope for world economy, but dangers lurk

By JEFFREY SCHAEFFER and said, is that most Champs-
ALEX TURNBULL Elysees shops are world-
Associated Press wide brands that are part
PARIS (AP) — Vendors of larger conglomerates
broke out in applause in that might be able to ab-
the flagship Galeries La- sorb the losses in a way that
fayette department store smaller businesses can’t.
in Paris as eager shoppers The OECD, which advises
returned for the first time in countries on economic pol-
a month, after yet another icy, warned about this and
virus lockdown. other kind of economic in-
The reopening won’t be equalities that have been
enough to make up for been worsened by the
sales lost during the pan- pandemic.
demic - but reflects the It recommended investing
glimmer of hope that fore- public money in reducing
casters are starting to see in these inequalities as well as
the global economy. in other areas that deliver
The Organization for Eco- long-term benefits, includ-
nomic Cooperation and ing health, education and
Development predicted fighting climate change.
Tuesday that the world It said that governments
economy will bounce should continue to support
back to its pre-pandemic Pedestrians walk in front of the Galeries Lafayette department store illuminated as part of Christmas people who have been hit
levels by the end of next lightings, in Paris, Tuesday, Dec. 1, 2020. hardest by the virus and
year - though that recov- Associated Press ensuing lockdowns, and
ery will be uneven across Europe, Japan and the U.S. of hosting Christmas mar- what will be a catastrophic that global cooperation is
the countries and big risks will lag, while many poorer kets that usually electrify year. sorely needed to maximize
remain. countries, particularly those historic cities. Jean-Noel Reinhardt, who the impact of government
In a report on the state of that rely on tourism, will Lines of shoppers reap- presides over the Champs- efforts to bring economies
the economy, the OECD continue to suffer and re- peared this week outside Elysees Committee that back to health.
said that progress on coro- quire international aid, the the Louis Vuitton boutique oversees the avenue’s busi- Despite still-high virus in-
navirus vaccines means OECD said. on the Champs-Elysees Av- nesses, estimates a loss this fections in many countries,
that the outlook has im- It predicts the global econ- enue in Paris, glittering with year of up to 1 billion euros, some consumers are eager
proved for the first time omy will shrink about 4.2% holiday lights -- but France’s and a downturn in business to be able to shop in per-
since the pandemic be- this year and rebound by famed cafes remained activity of 70%. son again.
gan. the same rate in 2021 be- shuttered for several more “The Champs-Elysees “I bought myself a comput-
“The road ahead is brighter fore growing 3.7% the fol- weeks, the tourists that are thrives on two types of visi- er, a telephone, of course.
but challenging,” the inter- lowing year. the country’s lifeblood are tors: foreign tourists who I didn’t just buy to buy. I
national watchdog said. Across Europe, govern- gone, and many small busi- have not come, and the could have done it online
China, which has brought ments are reopening their nesses aren’t expected to second population are but the pleasure of buying
its virus infections under economies as they get a survive. those who work in the from a boutique is not the
control better than many handle on a second virus With just a few weeks until neighborhood … and these same as shopping online,”
major economies, will lead surge – but only gradually, Christmas, luxury shops and people are working from said 25-year-old legal ex-
that economic recovery and partially. Vast cobble- conventional retail stores home online,” Reinhardt pert Alexandra Esquier,
and account for a third of stone plazas stand empty alike are all hoping to claw told The Associated Press. carrying her bags down the
global growth next year. this festive season instead back a pinch of sales in The only saving grace, he Champs-Elysees.q

Airbnb hopes to raise up to $2.6B in mid-December IPO

By DEE-ANN DURBIN Airbnb will have approxi- company cut 1,900 jobs —
AP Business Writer mately 696 million shares. around 25% of its workforce
Airbnb hopes to raise as That would value the com- — and slashed investments
much as $2.6 billion in its ini- pany at nearly $35 billion in projects not related to
tial public stock offering this at the high end of its offer- its core business, including
month, betting investors will ing price, or $31 billion at movie production.
see its home-sharing model the low end. It’s a remark- But Airbnb has recovered
as the future of travel. able comeback for the more quickly than tradi-
In a filing with securities company that delayed its tional hotels as travelers
regulators Tuesday, the San IPO when the coronavirus seek whole homes in rural
Francisco company said it pandemic crippled global areas far from crowds. The
expects to offer 51.9 million travel in the spring. Airbnb number of nights and ex-
common shares priced be- has more than 7 million list- periences booked, which
tween $44 and $50 each. ings on its platform, run by 4 plummeted 72% April, were
The company is expected million hosts worldwide. down about 20% in July,
to debut on the Nasdaq Its revenue fell 32% to August and September. In this Feb. 22, 2018, file photo, Airbnb co-founder and CEO Brian
stock exchange on Dec. $2.5 billion in the first nine In Miami, for instance, short- Chesky speaks during an event in San Francisco.
10, trading under the sym- months of this year as trav- term rental occupancy Associated Press
bol “ABNB.” elers canceled their plans. reached 83% in October, firm. In Nashville, rental oc- more business people will
Including stock options, Hosts revolted when Airbnb while average occupancy cupancy was 59% while ho- book vacation rentals,
restricted stock units and canceled reservations with- for hotels was 42%, accord- tel occupancy was 44%. since many can now work
other classes of securities, out penalties. In May, the ing to STR, a hospitality data Airbnb said it also expects from home..q