gita: i understand it as a consequence of two things.unprecedented policy support, and especially by major central banks in the world. provisions, asset prices, and that is one important factor. the second important factor is given the uncertainty of the path forward, and they are upside risks to goodell the markets are focused on the ,pside and the rest of us are and that is the other reason why we can expect to see ever covering much faster and a disconnect, but we are concerned about excessive risk-taking and the at this point, and we think of this as a vulnerability for the world. guy: are you concerned about the fact that there seems to be, as a result of policy, particularly from global central banks, a huge amount of money going into the credit market allowing companies that may not be able to survive, to be able to survive this? they will be loaded with debt. i'm wondering if you think that is a mistake because these companies are not going to be useful economic actors in terms of the recovery in the long term story. really a kno

shery: that was gita gopinath.g news out of qantas, the airline announcing details of the $1.9 billion share purchase plan. the issue price for the new shares under the placement will e. in otherssi details, we are getting confirmation that they will be reducing their pre-crisis workforce, and this represents a 20% cut across the total workforce, about 30,000 for qantas and jet star. a grim day for aviation. 100 aircraft will be grounded for up to 12 months. domestic flights are at a minimum level at the moment and qantas delayed the presumption of international flights until at least late october. qantas says $500 million australian will be put in place as well as a $1.4 billion underwritten institutional placement. the key headline is those 6000 jobs that will go at qantas. plenty more to come on "daybreak australia." this is bloomberg. ♪ shery: the reserve bank of new zealand expressed concern after a policy meeting about the kiwi dollar's appreciation and the pressure on export earnings. paul allen joins us. th

economist gita gopinath.isneyland reopening in california delayed by the company. they were aiming for a phased reopening starting mid july, but we have now seen california reported a record daily jumping coronavirus cases, as the u.s. struggles with more than 2.3 million infections. on's continue our discussion the global economy. thailand not predicting its steepest slump in two decades, as the pandemic takes a toll on his tourism and trade sector. the central bank left rates unchanged at a record low .5% yesterday to support the economy. the philippines central bank, also new to report a rate decision today. they are expected to hold. joining us from singapore is nomura chief asean economist euben paracuelles. great to have you with us, the consensus is that they will hold rate steady. you are expecting a cut. why? euben: that is right. its based on the growth and inflation dynamics in the country, and i think it is still supported by the case for more easing by the central bank. we have seen unemployment

gita, welcome. >> hi, sara. >> this was a shockingly bad downgrade, down to 4.9% growth for the globalst april you were projecting a 3% slide what changed so much that made you so much more pessimistic about the world economy? >> there were a couple of reasons. one is that the first half of this year turned out to be somewhat worse than we anticipated in april in many countries the period of lockdown was extended and going forward, we expect to have much more persistent social distancing because the health crisis is not over and that's going to have an effect also on potential growth. so these factors led to the downgrade. >> let's talk about the u.s. which you see a sharp 8% contraction for the year in terms of economic growth and then in 2021, only growth of 4.5% which dashes a lot of hopes that people have in the market about a v-shaped recovery and claiming back the growth we lost why don't you see that happening? >> so i'm sorry. we're projecting a very big hit to the second quarter gdp growth i think minus 45% annualized we have a recovery after that. 2021 is below the prepsorias

few minutes ago, we spoke to exaggerate a it is a -- we spoke to alexandre de juniac -- we spoke to gita gopinath. when the lockdowns were more severe, the lockdowns were worse and we anticipated in april. the second factor because they're still no medical solution to this crisis, we are expecting much more persistent social-distancing into the second half of this year, so the combination will have an impact to growth potential for economies, too. these are some of the main factors behind the downgrade. now is stephen king. gopinath has been downgrading her numbers. we are seeing the virus counts ticking up in a number of places around the world, including and that that it stays, but latin america,, seeing mary dramatic numbers. -- seeing very dramatic numbers as well. >> i think the level of insurgency is enormous -- oven 70 is enormous -- i think the level of uncertainty is enormous. that uncertainty is enormous. even when you have official lockdowns ending within countries, and there are still some potential lockdowns existing between countries, and this sort of thing is highly unusua

here's the imf‘s chief economist gita gopinath to put that into context.worse. and for pretty much all countries in the world the kinds of numbers we have for growth, that the us we have —8%, for the uk —10%. these are numbers that are also historically lows for pretty much all countries of the world. across the world, the pandemic has changed almost every aspect of people's lives. we're going to take a look now at how it's affected women in particular though. this article in the guardian newspaper has gone as far as to declare "the pandemic is destroying women's rights". and whilst that might be an extreme way of describing it, there's an increasing body of evidence supporting the idea that as a group, women are being particularly adversely affected. first — domestic violence. the un has called the increase in domestic violence globally the shadow pandemic. it says across the world, domestic violence helplines and shelters across the world are reporting rising calls for help. professionally, women seem to be at a disadvantage too. this article in the scie

almost 5% this year, wiping $12 trillion from the world economy over two years as imf chief economist gitagreat depression and it is truly a global crisis because the pandemic is everywhere and all countries are being hit and we have had downgrades across the board for many economies. have had downgrades across the board for many economiesm have had downgrades across the board for many economies. it is being driven by the fact that the impact on the economy of the impact on the economy of the pandemic is worth? is it because the pandemic itself is worth or some combination of the two? a combination of the two and that is the first half of this year the impact of the pandemic was worse than we anticipated in april. secondly, because we have not had many medical breakthroughs and the crisis is not over, we are expecting persistent social distancing into the second half of the year and that, along with the fact that will have implications for markets for how work is organised and productivity associated with it, that will affect growth potential. giving us a historical context on these number