Global Business Daily: Australian recession, Swiss trouble, Lego openings
Patrick Atack in London
Europe;

"An awful and heart-breaking blow to Australians and their families."

That's the straightforward way Australian Prime Minister Scott Morrison addressed the country's first recession since 1990 and its steepest fall in productivity since 1959. 

In the U.S., the FBI is investigating the deaths of two former mining executives who were on a road trip, after authorities in London named them as potentially important witnesses in a seven-year bribery case. 

Meanwhile, the head of the German stock exchange said he wants to see those responsible for the Wirecard scandal "named and shamed." 

Separately, the Deutsche Bank chief said Europe's support of private companies with state aid could lead to "zombie companies" that wouldn't be able to keep up with their U.S. competitors.

Meanwhile, headlines in the UK yesterday highlighted the success of the government's scheme to pay for half the nation's dinners if they ate at restaurants from Monday to Wednesday. In today's graphic, we compare the OpenTable data from other countries around Europe to see how effective it was. 

Happy reading, 

Patrick Atack

Digital business correspondent 

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Australia has dipped into recession for the first time since the early 1990s, with GDP dropping seven percent in the second quarter, compared with the previous three months – marking the steepest fall since 1959. The Australian government had pumped $147 billon into the economy to mitigate the effects of COVID-19, but it also shut its borders, which has negatively impacted many sectors, including retail as seen in today's photo of Melbourne's city center. 

The Swiss finance regulator Finma has begun "enforcement proceedings" against Credit Suisse, following the investigation it began late last year. Finma's action began when details of a corporate spying scandal broke. It has already led to the departure of CEO Tidjane Thiam, despite the lender's board insisting the Ivorian had no involvement in the espionage. 

The deaths of two former mining executives who died on a road trip across the U.S. are being investigated by the FBI, after it emerged James Bethel and Gerrit Strydom were potential witnesses in the UK's Serious Fraud Office case against Eurasian Natural Resources Corporation. Both Bethel and Strydom had held senior positions in the Africa division of the firm. 

CEO of the Deutsche Bourse, the leading German stock exchange, said he wants to "name and shame" those involved in the Wirecard scandal. Theodor Weimer made the comments while presenting reforms he would consider following the largest corporate fraud case in unified German history. 

Unilever, the commercial behemoth, said it would remove fossil fuels from its cleaning products and replace them with plant-based resources such as algae by 2030. The British and Dutch firm, with brands including Omo, Cif, and Domestos announced it would invest $1.2 billion in the effort to cut its carbon footprint by 20 percent. 

The U.S. administration has banned private evictions for non-payment of rent, citing public health concerns, despite the lack of any partisan bailout deal with Congress. The announcement came from the Centers for Disease Control and Prevention. 

Deutsche Bank chief Christian Sewing told a conference in Frankfurt Europe could create "zombie companies" if it continues to bail out firms with state aid due to the coronavirus pandemic. He said the funds could lead to a fall in productivity and competitiveness. 

Chinese e-commerce giant Alibaba has doubled its stake in courier group YTO Express for approximately $1 billion. The firm has recorded a jump in sales since the COVID-19 outbreak, but has sometimes struggled with delivery partners. The move is seen as a bid to control more of the delivery sector. 

Spirits giant Pernod Ricard has revealed a drop in full-year profits, with the blame leveled at COVID-19. The owner of Absolut vodka and Martell cognac, along with the eponymous Anis, said European supermarkets were a bright spot, as many drinkers turned to consuming at home. 

Ryanair's August passenger levels were up to seven million in August, a 59 percent increase month-on-month. In part because the low-cost airline is only running 60 percent of its flights, the passenger level is still 53 down year-on-year. 

The European Commission has opened an antitrust investigation into the bookmaker Ladbrokes over its "virtual betting" activities in Belgium. The Commission said Belgium authorized Ladbrokes to operate virtual betting in its outlets in February 2014 and online in March 2015, but then denied requests from other operators.

Danish toy brand Lego said it will defy the economic downturn sparked by the pandemic and continue opening at least 120 new stores. CEO Niels Christiansen said the new openings would bring the number of stores in China up to 80.

 

Watch: Bruno Cucinelli, the Italian 'king of cashmere,' found himself with $38 million worth of unsold clothing due to the temporary closure of his store during lockdown.
 

02:21

 

Torsten Muller-Otvos is the CEO of luxury car firm Rolls-Royce and spoke to CGTN Europe about launching a new model in the midst of a global pandemic and economic downturn. 

 

This is a very expensive car and a lot of people are losing money rather than making it at the moment why do you think they'll want to spend on a luxury item now?

We start around $295,000 ... This is a truly unique Rolls-Royce in every single detail. We call it the architecture of luxury, and, yes, Rolls-Royce belongs to BMW Group, but it's not here sitting on a BMW body whatsoever.

 

You don't seem nervous has Rolls-Royce been badly affected by the pandemic?

Yes, of course, we have seen a dip in our sales due to COVID-19. I mean, everybody has seen it and we are recovering and we are recovering very well. 

We are seeing order intake not only from Asian markets, China is back strong, Japan, Asian markets in general. We see the same happening in Europe.

I can also tell you that our plan is in the next couple of days to go back to a two-shift program and we are building then cars in the same pattern as we have done it before COVID-19.

 

What about the bottom line, have you taken a huge financial hit? 

For the total year, I am not in any way dissatisfied. I would say that probably by the end of the year we can all look back in confidence on what we have achieved under current circumstances of COVID-19.