Coronavirus

Rich world is a safer distance from virus fallout

10 Feb 2020

Disruptions to Chinese demand and factories will hurt Japan, Australia and South Korea more than the United States, despite damage done to the likes of Apple and Starbucks. But worst hit will be poor nations that rely more on the People’s Republic for trade, tourists and funding.

IPhones will display China’s back-to-work power

10 Feb 2020

The $38 bln Apple supplier Foxconn is re-opening a key Chinese plant as officials ease curbs. But the handset-maker and others face labour shortages as workers struggle to return home and travel with ongoing contagion fears. The complexities of restarting supply chains run deep.

Coronavirus pushes wobbly LNG market to the edge

10 Feb 2020

China’s leading liquefied natural gas importer claims the coronavirus has made fulfilling its contracts impossible. This might not pass legal muster – but the desperate measure shows just how weak Chinese demand might be. The unbalanced LNG market is in trouble.

Chinese panic is more contagious than coronavirus

7 Feb 2020

Shoppers are aggressively hoarding rice, toilet paper and vegetables, and sealing off their gated apartment complexes. That suggests they think things will get a lot worse before they get better. Such anxiety may become self-fulfilling; economic malaise can outlive an epidemic.

FCA’s China virus immunity only goes so far

6 Feb 2020

The Italian-American carmaker has struggled to make inroads in the Middle Kingdom’s vast market. The low exposure is an antidote to coronavirus concerns that are keeping customers off the road. But if a lockdown in China drags beyond February, FCA’s supply chain may unravel.

Virus reveals China as global oil’s swing consumer

6 Feb 2020

Saudi Arabia may cut output to offset a demand slump due to the coronavirus. The People’s Republic’s thirst for imported oil, and uncertainty about the length and severity of the crisis, make that a tricky call. Getting it wrong risks opening the door to other exporters.

China virus may fast-track drone flight

6 Feb 2020

Contagion fears and quarantines have made it costly and tricky for Alibaba and others in e-commerce and food delivery. Reducing human contact might help. Just as past Asian crises were catalysts for the likes of JD and Line, the new outbreak will give flying robots a push.

Hadas: China virus upends development hierarchy

5 Feb 2020

For poor countries hoping to become richer, vaccines and clean water are the priority. Hygienic food chains and fast responses to contagion tend to come later. The rapid spread of the devastating coronavirus is the result of this ranking. Healthier growth may need to be slower.

China shocks to global tourism have room to grow

5 Feb 2020

Travel curbs on the virus-hit country have shaken airlines and hotels. Even with a fast recovery as with the SARS epidemic, it’s a reminder of China’s vital role in the $1.7 trln tourism market. With millions more set to travel, any future jolts will only be more brutal.

Oil swoon entrenches BP’s strategic quandary

4 Feb 2020

The UK oil major delivered decent 2019 results on CEO Bob Dudley’s last day. New broom Bernard Looney is taking over an improved balance sheet and a hiked dividend. But the virus-led crude price slump makes it harder for him to steer the group away from harmful carbon emissions.

Carlsberg premium rating’s days are numbered

4 Feb 2020

The Danish brewer’s Chinese exposure means investors value it more highly than peers. But with the coronavirus shutting nightclubs and half of restaurants in the $22 bln group’s biggest market, that will change. Boss Cees ‘t Hart needs a plan B.

For Macau investors, all bets are off

4 Feb 2020

The territory is closing casinos for two weeks to contain the virus. Visits to Sands and rivals may be postponed, not lost, but only a real gambler would double down on Macau now. Home entertainment from the likes of iQiyi, China Literature or Perfect World offer better odds.

Epidemic impact will simulate China mini-recession

4 Feb 2020

The virus is eating into consumer spending. As restaurants lay off cooks and property developers default, local governments and banks will be stressed. Growth will stay positive, but for a generation that hasn’t experienced a downturn, this one might feel like the real thing.

Beijing’s virus response leaves seeds of doubt

3 Feb 2020

China’s effort to contain the disease is tougher than most nations could manage, just as its top-down structure allowed its economy to grow fast. But a yes-man culture initially allowed the problem to spread. It’s one reason promises on market opening and such may be unreliable.

Xi’s market watchdogs get black swan for new year

3 Feb 2020

The benchmark index fell 9% as traders returning after a week-long holiday dumped stocks on coronavirus concerns. The slide may be hard to brake; Beijing’s stimulus options are constrained. Finance regulators, restructured after the 2015 crash, face a major credibility test.

Chinese virus will afflict ailing globalisation

31 Jan 2020

Trade wars and Brexit-type barriers have knocked worldwide integration. As the Wuhan coronavirus spreads and borders harden, companies have fresh reasons to rethink the merits of cross-regional businesses and supply chains. A rise in security-based protectionism can be expected.

Virus tests Hong Kong market’s resistance

29 Jan 2020

A full-blown epidemic would rock what is already the year’s worst-performing major exchange index following a fresh 3% fall. Though a protest-related tourism tumble may prove a blessing in disguise, anti-Beijing public sentiment is also complicating the health response.

Virus lockdown hands LVMH tricky start to 2020

28 Jan 2020

The $230 bln luxury group’s comparable sales grew 10% in 2019. But at least the current quarter could be rocky with the fallout from the new coronavirus likely to infect its hefty Chinese sales. That makes smooth progress towards its acquisition of Tiffany even more important.

Virus panic makes OPEC cat-herding even harder

28 Jan 2020

Oil prices have dipped below $60 a barrel on fears the coronavirus will hit growth. The Saudi-led producers group already has a job convincing the likes of Russia to keep supporting cuts agreed in December. The virus jitters might make others, such as Riyadh, want to double down.

New China virus is bigger threat for world economy

27 Jan 2020

Growth rebounded quickly after the 2003 SARS outbreak. Stronger prevention measures this time are offset by the potentially more contagious coronavirus. China’s economy is also more fragile and accounts for a larger share of world growth. No wonder investors are jittery.