Coronavirus: a selection of business-focussed stories from national and international publications, some of whom may require a subscription to view in detail (paywall) from George Hamilton
China seeks to restart economy despite coronavirus outbreak
Many businesses across China are set to remain closed on Monday, despite the government’s efforts to restart the world’s second-largest economy following a deadly outbreak of coronavirus.
China’s State Council has urged critical industries — such as aviation — to resume operations as soon as possible, and most provinces have asked local businesses to reopen on Monday following an emergency 10-day extension to the annual Lunar New Year holiday.
Many cities, led by Beijing and Shanghai, are encouraging people to work from home, while some of China’s biggest technology companies, such as Alibaba and Meituan, have extended the holiday break to February 16 or later
Financial Times 9 Feb
Coronavirus will dampen ‘Boris bounce’, economists warn
The “Boris bounce” will be dampened by the disruption caused to the global economy from the coronavirus outbreak, economists have warned.
City forecasters predicted the expected rebound in growth in the first quarter will be scuppered by the severe slowdown in China’s economy and problems in global supply chains.
The outbreak will knock 0.15 percentage points off UK growth in the first quarter, pulling it down to a lacklustre 0.1pc, warned economists at Goldman Sachs.
The coronavirus could cost the world economy more than $280bn in the first quarter and break a 43-quarter growth streak, predicted Simon MacAdam, economist at Capital Economics.
Daily Telegraph 9 Feb
How coronavirus is impacting the global luxury market
The world’s luxury labels are beginning to feel the effects of the coronavirus, with British label Burberry announcing that it will close 24 of its 64 mainland China stores. Reports also suggest that almost a quarter of US companies in China expect revenues to take a minimum 16% hit this year due to the spread of the virus.
Meanwhile, Capri Holdings, which own brands such as Versace, Jimmy Choo and Michael Kors, has shuttered 150 of its 250 mainland China stores, while Ralph Lauren has closed half of its 115 stores. Sports titan Adidas has temporarily shut a ‘considerable number’ of its 12,000 Chinese stores, it has been reported.
https://www.telegraph.co.uk/
Daily Telegraph 7 Feb
Coronavirus impact on Hong Kong economy could be more severe than 2003’s Sars, finance chief warns
Hong Kong’s finance chief has warned that the economic impact of the coronavirus outbreak could be more severe than in 2003 when the city was hit by Sars.
Writing on his official blog, Financial Secretary Paul Chan Mo-po said he expected more people to lose their jobs, admitting that the effects of the health crisis now were more notable because of the city’s growing reliance on tourism and retail.
Chan cited latest figures showing mainland tourists accounting for 78 per cent of arrivals, compared with 41 per cent from 2002 just before the severe acute respiratory syndrome outbreak.
https://apple.news/ABoU-
South China Morning News 9 Feb
China’s rise puts threat from coronavirus on different scale
By the time the Sars epidemic emerged in China almost two decades ago, the country had already become the world’s factory. The outbreak rattled global growth, dented trade flows and weakened stock markets.
Yet the risks presented by the coronavirus are on a different scale. In 2003, China generated a little over 8 per cent of world gross domestic product; today, it accounts for almost 20 per cent. China’s economy is now the world’s second largest and its products, parts and people are intertwined into global supply chains and industrial networks.
The outbreak has already upended a string of multinational companies, but although the crisis is having a short-term impact, it threatens also to have a long-term significance, as manufacturers and retailers reconsider their supply chains and whether they now rely too much on China.
https://apple.news/
The Times 8 Feb
Why the Market’s Reaction to Coronavirus Isn’t the Same as SARS
The coronavirus outbreak has infected more than 31,000 people in China and has led to multiple lockdowns of cities, travel restrictions, store closures, and manufacture disruption. But global markets seem to be looking past the epidemic and shrugging off its negative impact on the Chinese and global economy.
Many factories are slated to reopen Monday, but it’s uncertain whether that will happen given the continuously rising number of infected cases.
“The biggest economic risk at this point is fear of a Chinese market collapse and a drop in Chinese productivity and supply chain to the rest of the world,” writes Michael Shaoul, CEO and portfolio manager of Marketfield Asset management.
For now, investors appear to be optimistic that the economic disruption could come to an end soon.
https://apple.news/AP-
Barrons 9 Feb
