Coronavirus: Digest of business-focussed articles from national and international media, selected by George Hamilton. Some may require a subscription to obtain the full version (paywall).
Daily there are an increasing number of stories worldwide warning about the negative economic effects caused by the ever increasing spread of the virus. The first story is an opinion piece by Liam Halligan, Daily Telegraph, which gives a good sense of the general unease and concern followed by news of stock market panic.
Also in this issue
- Many Brits don’t want to travel abroad.
- Worried Primark sources 50 per cent of clothes from China
Should we panic about coronavirus?
As the world’s second-largest economy splutters, so do manufacturers across Asia and beyond dependent on Chinese-made parts. The global supply-chain knock-on has been brutal.
The overall global economic impact is set to be “bigger than the US-China trade war”, according to a report by Euler Hermes, the leading trade payments insurer – even if the virus is quickly contained.
It’s clear that, even if this killer bug goes no further, a lot of really terrible economic and commercial data will be published in the weeks to come.
If this emergency does spin further out of control, Xi Jinping – having declared himself President for life – will find it tough to dodge the blame.
For now, investors remain optimistic that, however bad the economic fallout from this health scare, policymakers can do enough to underpin a swift recovery.
But, unless this virus is brought under control, and soon, that optimism could yet fall foul of a related epidemic of truly shocking incoming economic news. – Daily Telegraph 24 Feb
One trillion dollars wiped off global stock markets amid coronavirus panic
European markets suffer worst drop since Brexit referendum as coronavirus cases surge in Italy
US stocks join bloodbath, with Dow Jones dropping 1,000 points at open
South Korea’s top index suffers its sharpest drop since December 2018
Gold price leaps to highest since 2013
IMF warns Covid-19 threatens global economic recovery
Stock market selloff is just the start of Europe’s problems if coronavirus takes hold
Global stock markets have turned into a bloodbath, with panicked investors selling off shares in droves on fears the coronavirus will send shockwaves through the global economy.
Traders have piled into low-risk assets such as gold and the US dollar, ditching equities in the process. The price of oil has taken a sharp hit, with airlines also plunging on concerns that outbreak will lead to a fall in travel. – Daily Telegraph 24 Feb
Coronavirus outbreak could see almost a third of Brits shun overseas travel, survey says
Nearly one third of Brits will avoid overseas travel if the outbreak of coronavirus continues, according to new research.
Some 31 per cent of UK consumers told a survey they will consider avoiding foreign travel, which could result in £17 billion of holiday spending being put on hold.
Consultancy firm Retail Economics, which commissioned the poll of more than 2,000 people, warned overseas city break destinations and popular resorts are likely to suffer the most from UK travellers staying away.
This could lead to a rise in people taking their holidays within the UK, the researchers suggested. – Evening Standard 24 Feb
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Primark warns coronavirus could affect its supply of clothes
The owner of Primark is the latest business to sound the alarm on coronavirus, as the logistical impact spreads across huge swathes of the global economy.
Finance chief John Bason, however, insisted that “we’ve got several months of stock” in warehouses in the UK already because it ordered extra stock ahead of the Chinese New Year.
The retailer, which does not sell clothes in China, has about 500 suppliers there, of which nine are in Hubei, one of China’s most affected provinces.
Its Chinese suppliers account for almost half of its trade. It might have to turn to factories in Turkey and Eastern Europe as well as Vietnam and Cambodia to make up for any gaps if they occur. Daily Telegraph 24 Feb
