Corporate DispatchPRO Edition 5

Corporate DispatchPro

Issue No.5 | June 2020

Corporate DispatchPro The Journal of CI Group

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Issue No.5 | June 2020

Corporate DispatchPro The Journal of CI Group EDITORIAL TEAM Andrew Azzopardi Isabelle Micallef Bonello Jesmond Saliba

CONTRIBUTORS Andrew Azzopardi Christine Soares Guy Faulconbridge James Vella Clark Kate Kelland Keith Zahra Laurence Frost Manas Mishra Nathanael Muscat Tonio Galea

PRODUCTION ASSISTANT Laura Grima Shirley Zammit

CONTENTS Editorial

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The nexus between business, policy, & society

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What is so good with the ‘new normal’?

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Brands with a Societal Legacy

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Reinventing business on purpose

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World health-check halfway through 2020

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Summer might slow coronavirus but is unlikely to stop it

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European airlines face longer haul to recovery

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The future of media: more digital and more economic pain, Reuters Institute says

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Malta Insights

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CommuniqEU

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Local Perspective | Global Outlook 60

DESIGN TEAM Matthew Borg Nicholas Azzopardi

SOURCES

Published By

ADDITIONAL SOURCES

Design Produced

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Corporate DispatchPro Editorial

Investing in purpose Countries around the world seem to have reached an unspoken consensus to move on from the coronavirus. Calls for caution by health authorities notwithstanding, governments have decided that humanity does not live by breath alone and even regions where infections are still on the rise like South America and the Indian subcontinent, countries are pushing forward with economic restarts.

For most of the time during the first half of this year, leaders across all spheres have called for new and better ways of doing things: for improved sustainability in our operations, for a rebalancing of work and life, for more meaningful engagement with communities. In other words, to inject purpose into our activities.

For businesses, in particular, discovering purpose beyond the bottom line promises to be a Copernican Revolution. It is an opportunity for companies to attach themselves more intimately to the social cycle and assert their presence as a valid and willing actor in public life.

Purpose in enterprise is not simple philanthropy or a benevolent payback to a customer base. It involves a wholehearted commitment to a strategic cause that advances the interests of the company and the community it champions. By openly pursuing a social target – they may range from human rights to arts movements and from environmental protection to sport activities – organisations can understand better the very nature of their business. This, in turn, will help them identify the needs and the gaps and steer their innovation agenda to provide higher value and generate renewable business possibilities.

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YOUR PURPOSE IS YOUR BIGGEST ASSET

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Corporate DispatchPro Purpose helps to embed a company into its social context for the long haul in a way that feel-good advertising campaigns are unable to produce.

Establishing a purpose and actively investing in it is an, admittedly, difficult process. It means letting go of company-wide habits and practices that do not serve the aspiration. It may lead to discontent and uncertainty among employees, but with foresight and the right internal and external backing, purpose slowly redefines a business model and mobilises the workforce as well as customers towards a more profitable horizon.

The recovery phase is the moment for leaders to put their money where their mouth is and demonstrate that the business community has a significant part to play in social wellbeing. Purpose invites companies to stick with a mission, rather than a way of doing things, affording them the flexibility to adapt their business to a new world of opportunity.

JESMOND SALIBA

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Corporate DispatchPro CINEXT

The nexus between business, policy, & society Social wellbeing cannot be reduced to GDP; quality of life, ethical standards, safety systems, and personal achievements are not accounted for by the size of an economy. And in reflection of this, the contribution of business in society goes far beyond the production of wealth.

Companies have the power to spur innovation around an identified common problem. They cultivate the expertise in generating and allocating resources – financial, capital, or human – to develop practical solutions that create ripples of value.

Their products and services add value to customers directly, but valuecreation does not stop with the final transaction. Company employees also share in the created value, as do company shareholders and the country’s economy as a whole. As simple and self-centric as it appears, our market economy has evolved into a complex, community-centric system.

However, this deep link between business and people is rarely put to strategic use by social stakeholders. On the contrary, many times companies are confined to a money-generating space and their wide-reaching contribution to social wellbeing remains overlooked or, at best, acknowledged with a degree of suspicion.

The Covid-19 emergency should empower businesses to come closer to society and treat communities less like market segments and more like centres of human action.

The time is ripe for a synergetic view of the private and public sectors: their relationship within the social space should now supersede a give-and-take mechanism and both sides must collaborate as equal agents to accomplish a shared project for society.

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Corporate DispatchPro ENTER CINEXT Corporate ID Group is spearheading this vision for social innovation driven by a confluence of business, civil society, and public administrators to shape policy, implement programmes and develop products and services that address social needs while sustaining the country’s growth.

Backed by a strong network of experts in overlapping fields covering academia, business, the public sector, and the social sector, Corporate ID Group is launching CiNext – the long-term initiative to remodel Malta’s economy into a social enterprise by 2030.

Changes need to be made at the structural level for businesses and social actors to realise the broader purpose that every company has the promise to serve. By adding a social dimension to their offering, businesses are moving into the next stage of capitalism: meeting the needs of more stakeholders, delivering wellness to society, cultivating knowledge, and ensuring revenues to limit layoffs and pay current operating costs.

This is the beginning of a repurposing exercise that will transform the way companies bring lasting value to the communities they serve.

Backed by a strong network of experts in overlapping fields covering academia, business, the public sector, and the social sector, Corporate ID Group is launching CiNext – the long-term initiative to remodel Malta’s economy into a social enterprise by 2030.

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Corporate DispatchPro PROF. ANDREW AZZOPARDI | DEAN, FACULTY FOR SOCIAL WELLBEING

What is so good with the ‘new normal’?

We are all cognizant that social life is construed of building blocks that when combined form a social structure. That people are closely engaged with each other is indeed fundamental and necessary. We can take the current epidemic paradigm as a case in point and the consequential reactive strategies as a rejoinder.

It immediately shows that the need to be together is evident in the recurring appeals from the Health Authorities and politicians ‘to stay away’ from each other. Some resisted and some persisted because being together is sine qua non to human nature. In fact, Government had to resort to coercive action and invoke the Police Force to disperse groups on occasions. This is evidence of the need for people to be with each other, which at times outweighs the fear of this noxious virus.

Covid-19 has affected millions of persons globally and almost everything and everywhere has grinded to a halt. Notwithstanding, it is interesting to note that it has not taken away our desire to be with each other – it has in fact worked the other way round!

Now that we seem to be seeing the tail-end of this pandemic many are asking how Covid-19 will have impacted our communities and what would have changed after this phenomenon, that has hit us all by surprise, almost literally, knocked us off our feet. As many people have said, written and shared in many ways, it has been a surreal period of time. Now governments are hot on their heels trying to jump-start the economy. At the moment, there is an embedded sense that the ‘new normal’ is nothing we are looking forward to because there are so many issues we still need to contend with.

Because let’s face it.

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Corporate DispatchPro Covid-19 has hit us straight where it hurts, for example, our governance mechanisms. Where it not for an abundant, and what has been referred to, as an over-heating economy we would be going round in circles. The measures taken by Government helped a lot. However, this doesn’t mean we are out of the woods; homelessness, our social temperament, loneliness, anxiety levels, mental health are challenges we are going to be faced with and hence we need to see drastic changes and mega investments being made by the Government if we are going to overcome this wobble.

Naturally, the social sector has taken a good beating which is something we are experiencing as we speak. Vulnerable people are enduring inequalities, this mixed with lack of funding mingled with moral panic and the fear of the unknown as legacy of COVID-19.

To get us out of this mishap, we need to mutilate from our current social psyche which is embedded in fear and unease.

I want to believe what Oscar Wilde (1891) claims in The Soul of Man under Socialism, when he said; ‘The State is to make what is useful. The individual is to make what is beautiful.’ True community does not fit into a prescribed model but the basic elements that govern it are real: humanity, inclusion, and sensibleness. But is this the case? Many who have been experiencing this imposed ‘distancing’ have really and truly been snubbed from our communities.

But there is hope.

People are essentially designed to be with each other. It is fascinating that even though the neo-liberal economic model, we embrace, has endeavoured to distance us, we have maintained an entrenched need to hang on dearly to one another as if our lives depended on it. Emile Durkheim’s ‘collective consciousness’ as a building block in promoting the fundamental notion of solidarity is key. This notion creates an oath between individuals leading eventually to edict and steadiness. In the absence of a moral consensus the opposite would happen; skirmish and disarray, we now call social distancing.

But who knows? Maybe Covid-19 is an excellent opportunity to think about all those we’ve decided to plonk in the socially induced Bermuda Triangle and maybe undo this physical and social distancing we forced on them. Perhaps now we have a teeny-weeny bit of understanding on how these persons are feeling. It’s up to us at this point to reach out – Covid-19 has provided us with a golden opportunity.

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Corporate DispatchPro JAMES VELLA CLARK

Brands with a Societal Legacy In a recent article about doing marketing with a mission, published in the Harvard Business Review, the author argues that “brands can and must play a critical role in tackling global health issues, from violence to infectious disease to poor fitness and diet.”

It is an assertion that can set any business leader and marketeer thinking. Because when push comes to shove, people will retort with the proverbial “but it’s business.” So, this begs the question: ‘Are businesses there to make profit and deliver value to their shareholders or to make society better?’

I would say both.

Naturally, a better, healthier, and happier society is a society with a higher feel-good factor, and we all know that the higher the feelgood factor, the more people tend to want to consume.

At face value, this might sound egoistic. However, it is only egoistic if considered outside the wider context where all businesses and brands should be willing to strike a healthy balance between profit, ethical behaviour, and societal well-being.

Brands should never underestimate their potential for social reach.

Those who do, miss out on a huge opportunity to bring the muchneeded societal change. And we all know how much change society needs to undergo at this point in time.

When brands become attuned to the potential role they can be playing in their respective communities, the way they will start

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communicating will be one with a purpose. This purpose will define what they stand for as brands, what their place is in the community and why their role matter.

There is also some fascinating and useful research that is demonstrating how brands with perceived positive impact are outperforming brands who partially show purpose or show nothing at all.

One particular study, the Kantar Purpose 2020 study showed how over a period of 12 years the brands with high perceived positive impact have a brand value growth of 175%, versus 86% for medium positive impact and 70% for low positive impact.

Saying that your organisation has a defined purpose means nothing if this purpose is not tangibly defined and factually activated. And while the majority of market leaders might believe that purpose drives longterm growth, much less companies tend to turn their purpose into a shared company-wide movement within their organisation.

No matter a company’s purpose, this should never be viewed as a marketing opportunity but as a ‘systematic approach to change’. In fact, as brand purpose gradually becomes a more mature and integrated discipline, the successful brands will be those who will manage to create purpose by being more innovative and delivering products and services in new and better ways.

Brands can also communicate purpose by taking political stands that are aligned with their core values. Consumers will always stand by those brands who have specific views on societal issues and who are bold enough to express them by campaigning for them. Activism is on

In fact, as brand purpose gradually becomes a more mature and integrated discipline, the successful brands will be those who will manage to create purpose by being more innovative and delivering products and services in new and better ways.

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Corporate DispatchPro the rise and as the leadership void becomes wider, brands can find their purpose and shine by standing up to what they believe is right and, in the process, create meaningful connections with people.

Brand purpose is also an effective means to engage and inspire your own people and the impact that a company with a clearly stated and implemented purpose can have on talent can never be overstated; brands and companies with a social purpose tend to energize their employees and give them a stronger sense of belonging. People want to be part of the change and they will affiliate with companies who bring them the change they want. Brand purpose can also attract talent. Research by LinkedIn showed how an organisation’s purpose is increasingly becoming a deciding factor for professionals as they consider whether to take up a job offer or not.

Brand purpose is also being driven by business circularity which involves more conscious decisions about how we manage resources, how we create and use products, and how we capture the value of materials. It is a concept that is driving innovation and disruption even internally as companies and business leaders are finding themselves challenged to question their ingrained processes and to transform the ways that they understand their own business. Therefore, brand purpose means moving away from ‘business as usual’ and finding purpose in a deeper existence.

Finally, brands can discover meaningful purpose through partnerships with innovative NGOs, social enterprises and start-ups that can enable breakthrough innovation and help solve new problems, feeding exciting new incubator approaches and invest in ideas that can help solve environmental and social problems.

Brand purpose is not about corporate responsibility but about acknowledging the opportunity to use resources to contribute to a better world in new and better ways, using their resources and scale for good. It is not about ‘good’ but ‘less bad and more good’.

Some brands have the power to build a meaningful purpose that resonates on a global level, amplifying their core values to the extent of creating a whole movement. Other brands might not be big enough to change the world, but their little contribution can be the source of small changes in their immediate communities.

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Corporate DispatchPro NATHANAEL MUSCAT

Reinventing business on purpose As demarcation lines between industries and offerings become ever more blurred, purpose is fast emerging as a key strategic driver for sustainable growth. Traditionally, high-growth strategies involve the creation of new markets, extending the range of products and service, or disrupting the industry. All of these approaches focus on the forces external to the company.

A purpose-driven strategy, by contrast, concentrates on the internal forces of the organisation, although this is by no means an inward-looking approach. Simply put, purpose establishes the raison d’etre of a company.

A MATURE PURPOSE ORIENTATION Research by Thomas W. Malnight, Ivy Buche and Charles Dhanaraj published in 2019 surveyed leaders from 28 companies across the United States, Europe and India that registered an average compound annual growth of at least 30 percent for five consecutive five years. The study found that, in these businesses, the company’s purpose was clearly spelled out and integrated into its core functions.

Very often, purpose is a tangential aspect of businesses that companies whip out in their marketing campaigns but remains a hazy idea beyond that. On the other hand, the research team discovered that the high-growth companies they were analysing had all developed a strategic view of organisational purpose and made it the centre of their business. The study concludes that rebuilding a company in the image of its stated purpose becomes transformative in two ways: it redefines the playing field and reshapes the value proposition.

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NEW FRONTIERS OF OPPORTUNITY The paper argues that businesses that constrain themselves to one sphere, constantly competing for market share, are destined for low growth because expansion comes at a high cost. Instead, organisations driven by purpose have the strategic flexibility to think in terms of ecosystems that fulfil their meaning, not markets that need their products.

This approach means that organisations have to re-evaluate and, frequently, reconfigure their core competencies to deliver new products for new demands. But change does not merely follow opportunities that come the company’s way; on the contrary, it is a firm sense of purpose that attracts opportunity.

SHARING PURPOSE WITH PARTNERS Businesses with purpose have the elasticity to innovate and propose new value offerings that address the needs of multiple stakeholders who respond to its broader mission. The researchers outline three fundamental methods that help companies reshape their value propositions.

The first is observing trends and acting on them to translate purpose into fresh offerings to a changing market. The second method is investing in trustworthy relationships that help stakeholders grow and the business to grow with them. The third way is identifying pain points across different sectors and responding to them meaningfully.

PURPOSE IN PRACTICE Purpose-centric organisations, according to the research team, take either a retrospective or a prospective approach to the strategy.

Companies of the former type typically dig into their own heritage and legacy to refine their reason for existence; they ask what makes them unique and what events have shaped their business’ development.

This approach seeks to establish purpose on differentiation.

A prospective approach observes connections between different organisms that make an ecosystem and looks at possible gaps that are not yet being addressed. In this sense, a prospective outlook is about future possibilities rather than inherited lessons. As such, purpose in this approach is built on aspiration.

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THE HARD WORK OF PURPOSE For purpose to be truly a driving force, leadership needs to find ways to reorganise a company from an input-output structure to a mission-supporting one. The paper admits that this is no mean feat, but it describes how such radical shift has also been adopted with remarkable success by a publicly held company operating in a traditional industry.

Together with restructuring, the researchers recommend an active dissemination programme that communicates purpose throughout the company. This is not merely a matter of informing internal stakeholders about change, but of mobilizing them to pursue better and more relevant ways of accomplishing the organisation’s collective mission.

Malnight et al. argue that purpose-driven businesses further benefit from the growth strategy because it facilitates management by unifying co-workers around an articulated, solid goal. Secondly, they claim that stakeholders are energised by a purpose-led company and are more prepared to trust it. Finally, purpose allows a business to connect with a fuller range of social players, forming new partnerships and broadening its impact.

Discovering purpose is a strategic revolution that challenges companies to let go of what they do and grow into what they are.

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Corporate DispatchPro TONIO GALEA

World health-check halfway through 2020 A quick glance at the current situation in the world gives a rather grim picture of the global civilization.

The coronavirus is still claiming lives, young and old, and wreaking havoc on the finances of companies and whole economies. Known cases have reached eight million worldwide killing over 433,000 people as the pandemic is now moving deeper into developing countries such as India and Brazil. This not to mention the mental toll on the very young and old who were left in a somewhat ambiguous situation with a lot of questions still unanswered about their future.

The educational sector in most counties lies in tatters.

The United States has once more been rocked by protests stemming from racial violence while still trying to get a grip on the coronavirus, as the nation with the highest number of infections. The protests that started in Minneapolis calling out racially-motivated police brutality have quickly spread to other cities from Bristol to Berlin, and from Sydney to Stockholm.

Meanwhile, diplomatic tension between the United States and China is reaching worrying levels.

In Europe, governments such as those in Bulgaria, Denmark and Hungary, are adopting an ever more nationalistic tone when it comes to protecting their borders and economy. Others, like Belgium, Italy and Luxembourg take it to the other extreme putting the economy first and issuing mixed messages that made a murky situation even murkier.

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Our focus is creating the change that matters by working together with our clients and by partnering with industry experts to develop and realise business goals.

Our support, speciality and advisory services offer an integrated solution to our clients’ toughest challenges across all business functions.

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While the pandemic seems to have stopped life as we knew it and interrupted regularity in every corner of the world, it has not arrested the development of deep-seated issues and struggles.

The members of the medical profession around the world, which until only a few days ago were hailed as heroes, have now nearly being labelled as troublemakers for continuing to do what they always did: protect lives.

In the Mediterranean, the Libyan conflict is giving conflicting signs. Turkey is cementing its position and is expected to start oil exploration whilst Russia seems to be digging in on the Eastern side of the country in the hope of achieving its long sought-after military foot hold in the Mediterranean basin.

Further East in the region, little has changed in Syria whilst the Israeli-Palestinian issue continued to claim more lives, even if they were lost to the eyes of the world amid all the cacophony.

Above all this, the climate is still playing up and with various regions, especially in Africa or South East Asia are seeing record swarms of locusts that are depleting harvests in an already very precarious food supply.

While the pandemic seems to have stopped life as we knew it and interrupted regularity in every corner of the world, it has not arrested the development of deep-seated issues and struggles. If anything, it has helped spread even more unrest around the globe.

On one hand, a step back from the world gives a distressing and pessimistic view of things. On the other, it demonstrates a surprising tenacity in humanity that keeps jumping through crises and other blazing hoops.

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Corporate DispatchPro KATE KELLAND, MANAS MISHRA AND CHRISTINE SOARES EDITING BY PETER HENDERSON, MATTHEW LEWIS AND PETER COONEY

Summer might slow coronavirus but is unlikely to stop it The arrival of warmer weather in the Northern Hemisphere raises the question of whether summer could slow the spread of the coronavirus outbreak. Here is what science says.

While warmer weather typically ends the annual flu season in temperate zones, climate alone has not stopped the COVID-19 pandemic from sweeping any part of the globe. In fact, outbreaks in hot and sunny Brazil and Egypt are growing.

Still, recent data about how sunlight, humidity and outdoor breezes affect the virus gives some reason for optimism that summer could slow the spread.

IS THE NEW CORONAVIRUS ‘SEASONAL’?

The virus has not been around long enough to be certain.

Respiratory infections like flu and the common cold follow seasonal patterns in temperate regions. Environmental conditions including cold weather, low indoor humidity, and spending more time indoors can all hasten the spread of an epidemic.

Real-world evidence about the effect of weather on the new virus is mixed. One study of 221 Chinese cities found that temperature, humidity and daylight did not affect speed of spread.

Two other studies did find an effect, including a look at new infections in 47 countries that linked higher temperatures to slower transmission in places like the Philippines, Australia and Brazil.

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The reason why cold weather is presumed to cause spreading of coughs, colds and flu is that cold air causes irritation in the nasal passages and airways, which makes us more susceptible to viral infection “The Northern hemisphere may see a decline in new COVID-19 cases during summer and a resurgence during winter,” concluded the authors of another study of 117 countries, which found that each 1-degree of latitude increase in distance from the Equator was associated with a 2.6% increase in cases.

The head of the World Health Organization’s emergencies programme, Mike Ryan, cautioned: “We cannot rely on an expectation that the season or the temperature will be the answer to (the disease’s spread).”

WHY DO RESPIRATORY DISEASES SPREAD DIFFERENTLY IN SUMMER AND WINTER? “The reason why cold weather is presumed to cause spreading of coughs, colds and flu is that cold air causes irritation in the nasal passages and airways, which makes us more susceptible to viral infection,” said Simon Clarke, an expert in cellular microbiology at Britain’s University of Reading.

Winter weather tends to inspire people to spend more time indoors, although air conditioning may also bring people back inside in the summer.

In the lab, when temperatures and humidity rise, coronavirus particles on surfaces more quickly lose their ability to infect people - and they are inactivated especially fast when exposed to sunlight, U.S. government researchers found.

It is still a good idea for people to wash hands frequently, practice social distancing and wear a mask in summer, experts say. While virus particles coughed or exhaled by an infected person will disperse faster outdoors, one study found a gentle breeze could carry saliva droplets up to 6 m (19.69 feet).

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WHAT ELSE ABOUT SUMMER COULD SLOW THE VIRUS? Vitamin D: Researchers are investigating whether levels of immunityregulating vitamin D in people’s blood affect how vulnerable they are to infection with the new coronavirus or how sick they become.

The majority of vitamin D in the body comes from skin exposure to sunlight.

Pollen: A study in the Netherlands of all “flu-like” illness, including COVID-19, in recent years concludes that pollen concentrations are a better predictor than sunlight of respiratory disease trends.

Clouds of pollen act as air filters, snagging virus particles, and pollen activates immune responses, even in people without overt allergies.

The study found that flu-like illness started to drop when pollen in the air reached 610 grains per cubic metre, a typical level from early spring to October in most middle latitudes.

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Corporate DispatchPro LAURENCE FROST EDITING BY MARK POTTER

European airlines face longer haul to recovery A patchwork of national restrictions and a reluctance among travellers to cross borders mean European airlines face a bumpier return to the skies from coronavirus lockdowns than U.S. and Asian rivals.

After almost three months of bleeding cash as air travel was brought to a virtual halt, airlines are returning to service or announcing more flights. But while U.S. and Chinese domestic markets are starting to recover, the prospects in Europe look shakier.

“In comparison to every other part of the world, it’s lagging,” aviation analyst John Grant said of Europe during a recent presentation by industry data and analytics firm OAG. Wariness of foreign travel weighs more heavily on European airlines, whose domestic markets are smaller and less profitable than U.S. and Asian rivals’, and more exposed to rail and road competition.

They must also contend with a variety of European restrictions, including Britain’s 14-day quarantine, which has prolonged the slump on contested health grounds.

That contrasts with larger unified markets in Asia and the Americas.

In Brazil and India, domestic operations are picking up despite COVID-19 rates still growing faster than Europe’s.

Even shorter European trips put you in “a different country, with a different language and where you don’t know how the health system works,” said Joao Pita, head of airline business at Sao Paulo’s Guarulhos airport. “That’s different from domestic Brazil or domestic China.”

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EasyJet and Lufthansa-owned Brussels Airlines restarted operations this week as European internal borders reopened. Others including Air France, British Airways and Wizz Air are increasing frequencies.

“We’re focusing on the performance of the flights and to make sure that we have flights where the Belgians want to fly,” Brussels Airlines CEO Dieter Vranckx said.

The problem is, many Belgians don’t want to fly anywhere much.

Among the 63% of Belgians still planning a 2020 holiday, the new top destination is Belgium, according to a survey reported by travel newsletter Pagtour. Runners-up France and the Netherlands are accessible by road or rail.

CANCELLED FLIGHTS Despite the pared-down food service and mandatory masks on board, avoiding planes may not be the main concern.

Consumers in France are more interested in flying nine hours to the country’s Caribbean territory of Martinique than in a short hop to Spain or Italy, according to Google search data described to Reuters by an airline sales manager.

“Their thinking goes, ‘At least if I’m in a French overseas territory the government will have some obligation to look after me. I can turn up to a hospital and be served as if I’m in Paris,’” the manager said.

That spells bad news for all but a handful of European departures operated by the likes of Air Caraibes or Air France.

For European carriers forecast to lose $21.5 billion this year, a return to service promises no swift return to profit, with many flights expected to run below two-thirds full. The hope is to burn less cash in the air than on the ground. The European sector is on course for a negative 14.3% return on invested capital this year, compared with projected deficits of 12.7% for Asia and 10.5% for North America, according to global airline body IATA. Behind the relaunch publicity, airlines are still making schedule cuts that go deeper in Europe, experts say. Undersold flights are cancelled at least two weeks before departure, when passengers gain compensation rights.

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Global schedules for this week have been reduced by 28.5 million seats to 40 million since late May, according to OAG. Western European capacity was slashed from 17.8 million seats to 3.9 million as rebound hopes receded.

“We’re keen to publish capacity because our messaging to the market is that none of us are blinking,” said one executive at a major European airline.

“We don’t want rivals to think they can add more capacity in our key markets,” he added. “Everyone’s playing that game at the moment - then we cancel if we see very poor bookings.”

Competitive pressure on fares may bring more pain as pent-up demand for travel thwarted by lockdowns is exhausted. Ryanair CEO Michael O’Leary expects a price war, and many analysts agree.

Fares for July-September are down 7% year-on-year from Britain, 8% from France, 10% from Italy and 12% from Germany, according to Airbus-owned Skytra, which offers pricing data and risk management to airlines.

“Countries that are further along with the lifting of restrictions actually have the cheaper pricing,” the firm’s strategy chief Matthew Tringham said. “Probably because they’re trying to stimulate demand.”

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Corporate DispatchPro GUY FAULCONBRIDGE VIA THE REUTERS FOUNDATION EDITING BY STEPHEN ADDISON

The future of media: more digital and more economic pain, Reuters Institute says The coronavirus outbreak has prompted a significant increase in news consumption, but the economic turmoil is forcing news businesses to accelerate their move to digital, The Reuters Institute for the Study of Journalism said.

The coronavirus lockdowns prompted a global rise in viewing of television and online news though concerns about misinformation remain high, with Facebook and WhatsApp seen as the main channels for spreading so called “fake news”.

The broader picture is that the outbreak is accelerating the trends wrought by the technological revolution, including the rise of smartphones as an interface of news consumption, The Reuters Institute said in its annual Digital News Report (www. digitalnewsreport.org).

“The headline is that we see an accelerated move to digital media and mobile media and various kinds of platforms,” Rasmus Kleis Nielsen, director of the Reuters Institute, said by telephone.

“This is accompanied by a continued decline in trust in news and growing concerns over misinformation, in particular on social media and from some politicians.”

The biggest increase in concern over media misinformation was in Hong Kong - where anti-government protesters have opposed attempts by China to tighten its control of the former British colony.

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The business of news remains bleak. Media across the world are cutting staff to cope with a dramatic fall in advertising revenue.

But a ray of hope may be that increasing numbers of people are willing to pay for news online, though that may also increase informational inequality as many cannot afford top quality journalism.

The Reuters Institute for the Study of Journalism is a research centre at the University of Oxford that tracks media trends. The Thomson Reuters Foundation, the philanthropic arm of Thomson Reuters, funds the Reuters Institute.

And a “winner takes all� process can be seen: Around half of those that subscribe to any online or combined package in the United States use the New York Times or the Washington Post, the Reuters Institute found.

A similar trend can be seen in the United Kingdom with The Times or the Telegraph.

And for those predicting the dominance of video news, the Reuters Institute found that in a number of countries including the United Kingdom, Australia, France, and South Korea, people under 35 preferred to read rather than watch news online.

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Corporate DispatchPro CI CONSULTA

MALTA RECORDS SECOND-HIGHEST EMPLOYMENT GROWTH IN EU Malta was one of only ten EU states to register an increase in employment in the first quarter of 2020 compared with the previous quarter. Eurostat data shows that Malta registered a growth of 1.3 percent, second only to Lithuania at 1.6 percent and ahead of Croatia with 1.0 percent.

Overall, the EU registered a decrease of 0.1 percent, the first decline since 2013. The biggest dips were observed in Spain (-1.0%) and Bulgaria (-0.9%) while Portugal, Slovakia and Sweden saw their employment fall by 0.5 percent.

Compared with the same period last year, however, EU employment increased by 0.4 percent with a total 209.1 million people in employment across the bloc.

Meanwhile, GDP in the EU fell by 3.2 percent from Q4 2019 to Q1 2020, registering the sharpest decrease since 1995. Compared with the first quarter in 2019, GDP also decline by 2.6 percent. Decreases in the euro area were more pronounced, slipping by 3.6 percent from the previous quarter and by 3.1 from a year before. Four EU countries still registered an increase from the fourth quarter of 2019: Ireland (+1.2%), Bulgaria and Romania (+0.3%), and Sweden (+0.1%). France and Italy suffered the biggest decreases (both -5.3%) followed by Spain and Slovakia (both -5.2%).

GDP in Malta fell by 2.3 percent compared with the previous quarter but grew by 0.7 percent from the same period in 2019.

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Corporate DispatchPro TRADE DEFICIT NARROWS IN APRIL Imports and exports decreased between March and April, reducing the trade deficit by €90.8 million to close at €139.4 million. Figures by the National Statistics Office for the fourth month this year show that Malta registered a decline of €146 million in imports driven mainly by a fall of 96 million in machinery and transport equipment.

Meanwhile, a decrease of €30.5 million in exports and mineral fuels and of €18 million in machinery and transport equipment were the main agents behind a general drop of €55 million in exported goods.

Just over half of imports in April came from EU members, accounting to €192 million – a drop from €230 million in the same month last year. Exports to the EU27 also fell from €159 million in April 2019 to €79 million in 2020.

Exports to Asia and Africa increased by €19 million and €10 million, respectively, compared with last year. Imports from Asia registered a €17 million decrease, but they rose by €29 from Africa. The trade of balance with North and Central America went from a surplus of €6 million in April 2019 to €0.2 million this year.

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LOCAL FILM PRODUCTIONS MAKE €99,000 AT THE BOX OFFICE IN 2019 Maltese film productions attracted just under 14,000 cinemagoers in 2019 registering a total €99,000 gross box office. Data by the National Statistics Office shows that there were 14 local productions last year, totalling a combined 650 screenings.

Nine in every ten of films watched at cinema theatres were produced in the US, while 1.9 percent were made in Malta. By the end of 2019, cinemas registered almost 750,000 admissions generating a total gross box office topping €5 million.

Of the 409 film titles screened, ‘The Lion King’, ‘Aladdin’, and ‘Joker’ were the most popular attracting nearly a quarter of all cinemagoers between them.

The favourite genre among film enthusiasts was non-animated fiction, attracting 72 percent of all admissions and projecting 238 different titles. Animation films were the second-most popular, accounting to 26 percent of ticket sales, but Live/Encore screenings were second-highest in terms of releases, with 65 productions.

There are six operating cinemas in Malta with a combined 28 screens and a total seating capacity of 5,700. Eleven of the screens are set up for 3D productions, which accounted to 18 percent of all admissions last year.

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Corporate DispatchPro HIGHEST EMISSIONS FROM TRANSPORT IN A DECADE Emissions of greenhouse gases reached more than 2,190 kilotonnes net in 2018 according to the latest Greenhouse Gas Inventory data published by the National Statistics Office. CO2 emissions increased by 1.3 percent from 2017 and by 12.4 percent from 2016. Compared with 2008, however, 2018 registered a decrease in emissions of 28 percent.

The biggest contributors to CO2 were energy industries, creating just under 700 kilotonnes of emissions, and transportation, generating just over 660 kilotonnes. While emissions from energy industries fell by 2.7 percent from the previous year and achieved the second-lowest net CO2 for the sector in ten years, greenhouse gas emissions produced by transport jumped by 4.4 percent from 2017 and registered the highest total for a decade.

The rise in mobility-related emissions coincides with an increase in road, air, and sea transportation in the year under review. The number of licensed vehicles grew from 372,000 in 2017 to 385,500 in 2018, reflecting an increase in all vehicle types except garage-hire minibuses and self-drive motorcycles. Passenger cars increased by almost three percent to surpass 300,000 in 2018. Figures by Transport Malta show that the number went up to more than 307,000 in 2019.

More than 380,000 vehicles on the roads in 2018 were powered either by petrol of diesel engines, increasing from the previous year by 3.1 percent and 3.4 percent, respectively. Nevertheless, alternative powertrain technologies enjoyed a sharp rise as licenses for hybrid cars jumped by 66 percent and licenses for electric vehicles by 138 percent. Data for 2019 shows that there was a sustained increase across all four engine types: 237,000 petrol cars (+2.3%), 154,000 diesels (+3.0%), 2,200 hybrids (+52.7%), and 2,300 electrics (+147.6%).

Departing passenger flights in 2018 went up 14 percent from the year before to more 23,500. Data by Malta International Airport shows that the figure continued its upward trend in 2019, reaching over 25,000 outbound passenger flights.

Sea transport between Malta and Gozo also rose between 2017 and 2018, resulting in more than one thousand added trips year-on47

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Corporate DispatchPro year to reach 23,619. Ferry crossings, then, increased exponentially in 2019, exceeding 27,600.

The number of cruise liner calls decreased by 32 in 2018 compared with the previous year. In fact, at 310, there were fewer calls than even 2017. The dip was reversed in 2019, however, registering the highest figure of in five years, at 359 cruise liner calls.

INDUSTRIAL PRODUCTION INDEX REACHES LOWEST SCORE IN A YEAR Industrial production registered a drop for the third consecutive month in April, decreasing by 3.8 percent from March. Seasonally adjust figures by the National Statistics Office show that the index of total production fell to 100.4, a drop of 3.0 percent compared with the same month last year. In fact, results for April are the lowest over the twelve-month period.

Declines were reported across all main industrial groupings, but the biggest changes were registered in the production of capital goods and energy, falling by 13.2 percent and 8.0 percent, respectively.

Intermediate goods decreased by 2.2 percent and consumer goods by 2.1 percent.

Compared with April 2019, the variation in the production of capital goods was even more marked, dropping by 18.7 percent.

Intermediate goods slipped by 1.5 percent, but increases were recorded in consumer goods (+2.4%) and energy production (+3.4%).

The index of industrial production is a main indicator for economic development and is used to pinpoint changes in trends at an early stage.

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Corporate DispatchPro KEITH ZAHRA

CommuniqEU

Health The European Investment Bank (EIB), the European Commission and Investitionsbank Berlin (IBB) have launched €64 million EU Malaria Fund, which aims to support feasible and affordable innovative solutions to prevent and treat malaria.

The major contributor to the Fund is the InnovFin EU programme funded

by EU Horizon 2020 and jointly managed by the European Commission and the EIB. Part of the project is supported by the European Fund of Strategic Investments, the financial pillar of the Investment Plan for Europe. In this initiative, the EIB and the European Commission partner to mobilise €500 billion in the European economy.

“Malaria is the world’s current most deadly infectious diseases. To fight it is more urgent than ever,” said Ambroise Fayolle, EIB Vice-President in charge of health. “Progress has largely stalled in recent years, resistance to traditional drugs is on the rise, and new treatments are often costly.

It is high time that we joined forces with public and private actors in and outside the EU to tackle the problem. If it can increase the number of ways to help prevent or cure malaria, our fund could be a life-saver for hundreds of thousands of people every year.”

An additional €6 million is being provided by various national and private investors, including the Bill & Melinda Gates Foundation.

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Corporate DispatchPro KEITH ZAHRA

CommuniqEU

Technology The European Union is turning to technology to help it bounce back from the coronavirus crisis and compete better in key areas with the United States and China.

As part of a 750 billion euro recovery plan announced earlier in May, the European Commission insisted on its desired objective to achieve technology sovereignty in crucial areas after it emerges from the crisis caused by the coronavirus pandemic.

“The pandemic and its consequences on our lives and economies have highlighted the importance of digitisation across all areas of EU economy and society,” the bloc’s executive body said as it announced the plan to help EU countries.

The EU is looking at a number of areas where to promote 5G and even 6G networks, with key beneficiaries indicated as being health, education, transport, logistics and media. Other areas which are expected to receive the lion’s share of funds in this field include artificial intelligence, cybersecurity, secured communication, data and cloud infrastructure, supercomputers, quantum and blockchain.

The Commission also reiterated plans to pass a data law to further protect consumers, whether individuals or businesses, online. “It will offer greater security for consumers online, prevent the abuse of market power by platforms and ensure a fair marketplace with equal opportunities for smaller businesses,” the Commission insisted in its plans.

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Corporate DispatchPro KEITH ZAHRA

CommuniqEU

Business Retail activity throughout the EU suffered an inevitable blow during the past months with Member States taking a wide variety of restrictive measures. Among other limitations, non-essential retail shops have closed, affecting the retail trade volumes.

In March 2020, EU’s volume of retail trade fell by 10% compared with February 2020 and by 8% compared with March 2019. The fall of the EU retail trade continued in April 2020 when the retail volume fell by 11% compared with March 2020 and by 18% compared with April 2019.

In the EU, sales of food, beverages and tobacco registered an increase of 5% in March, which is significantly higher than a usual increase (around 0.2%). After the significant increase of March, the retail trade volume of food, beverages and tobacco fell by 6% in April.

Retail trade of non-food products excluding automotive fuel dropped by 20% in March 2020 and by 15% in April 2020, both compared with the previous month. The strongest declines were recorded for textiles, clothing, and leather products (-54% in March and -21% in April). The sales volume of pharmaceutical products, cosmetics and similar increased by 1% in March yet fell by 9% in April.

Unusually large reductions were recorded also in the purchase of electric products and furniture (-24% in March and -7% in April) as well as computers, books and similar products (-27% in March and -4% in April).

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Corporate DispatchPro KEITH ZAHRA

CommuniqEU

Environment As part of the EU’s efforts to boost the shift towards eco-friendly investment, the European Parliament is expected to vote on rules to define what qualifies as green or sustainable activities. This would establish a common classification system across the EU, provide business and investors with clarity, and encourage an increase in private sector funding for the transition towards climate neutrality.

Sustainable development requires the preservation of natural resources and respect for human and social rights. Climate action is an important aspect, as the need to limit and mitigate the effects of climate change becomes more and more urgent.

The EU is committed to gradually decreasing its greenhouse gas emissions. The European Green Deal, the EU’s flagship initiative on climate action, sets a goal of zero net emissions by 2050.

To achieve the goal, the EU must invest in new technologies. The European Commission estimates that Europe needs about €260 billion in extra investment every year over the next decade.

Public investment will not suffice, and private investors will have to step into finance climate-friendly projects. This requires clear criteria on what exactly is sustainable and eco-friendly; otherwise, some funding might be directed to “greenwashing” projects that claim to be green, but in reality, are not.

Some EU countries have already started developing classification systems. Both companies seeking funding and investors interested in supporting sustainable projects would benefit from common EU standards.

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