Despite the memes and all, the Coronavirus is still affecting China. A quarantine is no small issue, and already the ripples the virus has had are starting to influence other aspects of global life, so today we will discuss how they have affected the world of business.
Numerous articles from the New York Times, and wall street journal hint at a very unfortunate reality. World economy is without a doubt going to be affected. China is the second largest market, if my sources are to be believed, and the fact that numerous megacorps have temporarily shut down their business to China in light of the outbreak speaks volumes. Add to that multiple airlines stopped their China flights and you can get a pretty good picture.
Boy, where to begin with this?!
Lets start with the airline issues. Delta, American Airlines and United Airlines have stopped their flights to and from China, following the outbreak, shortly before the Trump administration issue more travel restrictions as well. The impact this had was seen soon after as "Share prices in all three airlines were down for the day — nearly 4 percent for United, more than 3 percent for American and nearly 2.5 percent for Delta — as concerns about the virus led to a broad market decline. The S&P 500 was down nearly 2 percent." this article by the new york times read.
Furthermore many corporations, including starbucks and apple report that they are expecting their profits to take a hit due to the virus.
"Starbucks has closed more than 2,000 outlets in China and cautioned that its annual financial results had been threatened by the coronavirus, highlighting the challenges facing corporate America from the spread of the deadly infection." ft.com reports while according to this article by the New York Times, Apple has a lot to lose in the Chinese market ""given its enormous manufacturing and sales presence in China."
Finally, at least up until February 1st, according to this synopsis done by the New York times, the transport of passengers and goods has been halted by the US to China, and we can only wait and see the impact this might have in the world economy
Photo by Brian McGowan on Unsplash
Photo by Adeolu Eletu on Unsplash
It is clear that viral outbreaks always have a heavy impact on the day to day life of the areas affected, but so far we have not seen something that could potentially impact the entire world economy. With China still facing the virus, while also having the second largest market globally, it is curious to see how the quarantine will affect the business scene should this continue. So far we have not seen any major impact, but concerns have been raised and it is subject worth keeping track of.