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World Stocks Follow Wall Street Lower On Renewed Virus Fears

BEIJING (AP) — Global stock markets followed Wall Street lower Friday after a spike in new virus cases in South Korea refueled investor anxiety about China’s disease outbreak.

Benchmarks in Tokyo, Hong Kong and Sydney retreated and London and Frankfurt opened lower. Shanghai advanced.

Traders shifted money into bonds and gold, a traditional safe haven.

Bond markets are “sounding a warning on global growth” as virus fears spread to South Korea, Singapore and other economies, DBS analysts said in a report.

Markets had been gaining on hopes the outbreak that began in central China might be under control following government controls that shut down much of the world’s second-largest economy. Sentiment was buoyed by stronger-than-expected U.S. economic data and rate cuts by China and other Asian central banks to blunt the economic impact.

But investors were jarred by South Korea’s report of 52 new cases of the coronavirus, raising its total to 156, most of them since Wednesday. That renewed concern the infection is spreading in South Korea, Singapore and other Asian economies.

In early trading, the FTSE 100 in London sank 0.5% to 7,402.58 and Frankfurt’s DAX lost 0.4% to 13,606.41. France’s CAC 40 tumbled 0.6% to 6,019.63.

On Wall Street, the future for the benchmark S&P 500 index retreated 0.4% and that for the Dow Jones Industrial Average lost 0.5%.

In Asia, Tokyo’s Nikkei 225 declined 0.4% to 23,386.74 and Hong Kong’s Hang Seng sank 1.1% to 27,308.81. In Seoul, the Kospi lost 1.5% to 2,162.84.

The Shanghai Composite Index bucked the regional trend, climbing 0.3% to 3,039.67.

The S&P-ASX 200 in Sydney lost 0.3% to 7,139.00. New Zealand advanced while Southeast Asian markets declined.

On Thursday, the S&P 500 index lost 0.4% after being down as much as 1.3% at one point. The Dow fell 0.4%.

Gold touched its highest price since early 2013, gaining $14.50 to $1.634.30. The 10-year Treasury’s yield sank to 1.49% from 1.57% late Wednesday.

Yields on 30-year U.S. Treasuries are below 2%, a level last seen in September “when U.S.-China trade fears were acute,” said the DBS analysts.

A pickup in economic activity “is still elusive,” despite a decline in numbers of new Chinese cases, they wrote.

China reported 118 deaths and 889 new cases in the 24 hours through midnight Thursday.

That raised the death toll to 2,236 since December and total cases to 75,465.

The number of new cases reported each day has been declining but changes in how Chinese authorities count infections have raised doubts about the true trajectory of the epidemic.

The Korea Centers for Disease Control and Prevention said 41 of the new 52 cases were in the southeastern city of Daegu and the surrounding region.

South Korea’s government declared the area a “special management zone” Friday. The mayor of Daegu urged the city’s 2.5 million people to stay home and wear masks even indoors if possible.

Also Friday, a measure of Japan’s manufacturing activity tumbled to an eight-year low and a companion gauge of service industries dropped even more sharply.

The preliminary purchasing managers’ index for February declined to 47.7 from the previous month’s 48.8 on a 100-point scale on which numbers below 50 show activity contracting. The preliminary services PMI plunged to 46.4 from January’s 51.0.

The decline “underlines that the coronavirus has started to weaken activity,” Marcel Thieliant of Capital Economics said in a report.

To contain the disease, China starting in late January cut off most access to Wuhan, the central city where the first cases occurred, and extended the Lunar New Year holiday to keep factories and offices closed and workers at home.

Some Chinese factories and other businesses are reopening but restrictions that in some areas allow only one member of a household out each day still are in place. Forecasters say auto manufacturing and other industries won’t return to normal until at least mid-March.

A rise in new cases in Beijing, the capital, “raises alarm” because it suggests major Chinese cities “may be under pressure to contain the virus amidst returning workers” as companies reopen, Mizuho Bank said in a report.

A growing number of companies say they expect to suffer losses due to the virus.

The world’s largest shipping company, Denmark’s A.P. Moller Maersk, said Thursday it expects a weak start to the year. Air France said the disease could mean a hit of up to 200 million euros ($220 million) for its results from February to April.

The worries overshadowed encouraging data on the U.S. economy.

A survey of manufacturers in the mid-Atlantic region jumped to its highest level since February 2017. A separate report showed leading economic indicators in the United States rose more in January than economists forecast. The number of workers applying for jobless claims rose but stayed low.

ENERGY: Benchmark U.S. crude lost 75 cents to $53.13 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 49 cents on Thursday to settle at $53.78. Brent crude oil, the international standard, lost 90 cents to $58.41 per barrel in London. It rose 19 cents the previous session to $59.31 per barrel.

CURRENCY: The dollar declined to 111.72 yen from Thursday’s 112.09 yen. The euro rose to $1.0815 from $1.0790.

Source: World stocks follow Wall Street lower on renewed virus fears

Subscribe: http://bit.ly/SubscribeTDAmeritrade The COVID-19 coronavirus has broken out in China. Tens of thousands have been infected, and more than a thousand have died. Airlines have canceled flights and shops have closed, but the virus is also impacting global financial markets in ways you might not expect. We dig deeper to find other ways the COVID-19 coronavirus may impact markets and considerations for hedging risk. TD Ameritrade is where smart investors get smarter. We post educational videos that bring investing and finance topics back down to earth weekly. Have a question or topic suggestion? Let us know. Connect with TD Ameritrade: Facebook: http://bit.ly/TDAmeritradeFacebook Twitter: http://bit.ly/TwitterTDAmeritrade Open an account with TD Ameritrade: http://bit.ly/SignUpTDAmeritrade

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Could the 2020 Tokyo Olympics Be a Victim of COVID-19?

In a promotional video featuring Japanese tennis superstar Naomi Osaka, as well as fans of different nationalities, the organizing committee for the Tokyo 2020 Olympic and Paralympic Games revealed on Feb. 17 the event’s official motto: United by Emotion.

Yet if there’s one emotion linking the world today, it might be fear. The COVID-19 outbreak shows little sign of weakening. As of Feb. 19, the disease has infected more than 75,000, killed 2,014 and prompted over 50 countries and territories to close their borders to arrivals from China. The “devil” virus, as Chinese President Xi Jinping has called it, has already surpassed the combined death toll of SARS and MERS and lies on the cusp of becoming a pandemic that spreads around the globe. The next few weeks will determine whether containment efforts can prevent COVID-19 becoming the “black swan event” that Alibaba CEO Daniel Zhang has warned may derail the global economy.

The economic repercussions already look severe. According to analysis by research firm Capital Economics, COVID-19 will cost the world economy over $280 billion in the first quarter of this year, meaning that global GDP will not grow from one quarter to the next for the first time since 2009. China’s growth is expected to slow to 4.5% over the same period. Some 5 million companies have Chinese suppliers, according to data company Dun & Bradstreet, and all are under threat from slashed manufacturing capacity.

Korean automaker Hyundai has shut its huge factory in Ulsan due to a shortage of parts. Apple has told investors it will fail to meet quarterly revenue targets and warned of global “iPhone supply shortages” from the shutting of Chinese factories. The slowdown may also undermine U.S. plans to massively boost exports of agricultural goods, energy and services to China, hampering any potential recovery in farming communities and the Rust Belt.

Travel in and around the region has ebbed significantly. Some 21 airlines have cancelled all flights to mainland China. Hong Kong-based Cathay Pacific has cut 40% of network capacity and asked 27,000 employees to take unpaid leave to help it stay afloat. Events from the Hong Kong Rugby Sevens to K-Pop concerts have been cancelled or postponed.

Now, speculation is mounting about one of the year’s biggest events due to take place directly in the orbit of the outbreak—the 2020 Olympic Games, which are to be held in Tokyo beginning July 24. Japan has the second highest rate of COVID-19 infections after China, with 695 people testing positive for the virus, most of them on a cruise ship docked at the city of Yokohama. Yet the Olympics torch relay is due to begin next month and traverse to all of Japan’s 47 prefectures over 121 days, coinciding with its popular cherry blossom bloom.

The chill on visitor numbers across Asia already risk making the Games a subdued affair. Japan received 9.6 million visitors from China in 2019, accounting for a third of foreign tourist expenditure, but Chinese arrivals have virtually ceased since the outbreak. According to Japanese public broadcaster NHK, Tokyo 2020 organizing committee chief executive Toshiro Muto said on Feb.5 he was “extremely worried that the spread of the infectious disease could throw cold water on the momentum toward the Games.”

Officials have since closed ranks as speculation about the Games has increased. Organizing committee president Yoshiro Mori insisted Feb. 13, “we are not considering a cancelation or postponement of the Games—let me make that clear.” As he spoke, some 3,700 people remained quarantined on the Diamond Princess cruise liner, anchored less than two miles from Yokohama Baseball stadium, a key Tokyo 2020 venue. (Those uninfected were scheduled for release beginning Feb. 19.)

Four days later, the city canceled the Tokyo Marathon due to take place on March 1 for all except elite runners. Dick Pound, a former Olympian swimmer and member of the International Olympic Committee, told TIME the organisation was monitoring the situation closely but said no one was talking about relocation or cancelation with five months still to go. “If there’s a legitimate pandemic that is potentially a lot more lethal than normal illnesses of flu, that’s when you need to start thinking about it. But not at this stage.”

Mori’s confidence is in line with projections that COVID-19 will fade during warmer and more humid summer months, as SARS did in 2003. But it’s still not clear why SARS declined as temperatures rose. Some coronavirus strains—like MERS—thrive in the heat, says Prof. Michael Osterholm, an epidemiologist at the University of Minnesota. The theory of COVID-19’s summer regress is simply “based on wishful thinking,” he says. “There is no data to support it.”

It’s hard to overstate the economic impact on Japan were the Olympics forced to be canceled or relocated. The investment surrounding the event is staggering; the Games are set to cost $25 billion, according to latest predictions, nearly four times the original estimate. According to hospitality research firm CBRE Hotels, 80,000 hotel rooms were forecast to open across Japan’s nine major cities between 2019 and 2021. Tokyo’s Okura hotel reopened in September after a $1 billion renovation. In May, national carrier Japan Airlines is due to launch a low cost subsidiary, Zipair Tokyo, at a cost of around $200 million, to meet increased demand surrounding the Olympics. It will be based at Tokyo Narita International Airport, which is currently undergoing an expansion to nearly double capacity. (Tokyo’s other main airport, Haneda, is also due to boost capacity by 70%.)

The coronavirus is already keeping international visitors away beyond China. Capital Economics research suggests tourism arrivals in Japan will fall by 40% this quarter due to COVID-19, knocking off 0.4 percentage points from growth. The U.N.’s International Civil Aviation Organization forecasts that Japan could lose $1.29 billion in tourism revenue over the same period. Koichiro Takahara, CEO of Tokyo-based ride-sharing app nearMe, says he fears the Olympics could get cancelled if the outbreak worsens. That, he says, “would have a big impact on my business, so I am keeping my fingers crossed.”

It would also impose a political cost on Japan’s Prime Minister Shinzo Abe. Already, his insistence during the bidding process that radiation from the 2011 Fukushima Daiichi Nuclear Power Plant meltdown would be tackled has been called out after Greenpeace found radiation hotspots in December near where the Olympic torch relay will pass. Similar assurances that COVID-19 will not disrupt the Games will be treated with skepticism, says Jules Boykoff, a politics professor at Pacific University, Oregon who studies the Olympics and played soccer for Team USA. “For many, when they hear Abe and other officials saying that COVID-19 will not affect the Olympics, they hear the unmistakable ring of previous empty promises.”

But it’s unclear what a Plan B might look like. Simon Chadwick, professor of the Eurasian Sport Industry at France’s Emlyon business School, suggests a networked event held across different countries is a more likely alternative. (The 2020 UEFA European Soccer Championships and 2022 Commonwealth Games are slated for such a format.) Yet there will be considerable resistance from sponsors and broadcasters who have already ploughed vast resources into securing rights deals and promotional activities. NBC alone spent $1.4 billion on broadcasting rights for Tokyo 2020. In this regard, both host and business interests will be furiously resisting any deviation. “The Japanese government is surely lobbying the IOC hard as it seeks to protect its multitude of investments,” says Chadwick.

That might explain an apparent unwillingness to address the uncertainty. Asked what contingency plans were in place for moving or postponing the Games, the Tokyo Metropolitan Government told TIME, “We cannot provide a definitive answer to a hypothetical situation.” Yet as the virus spreads its tendrils further into the Asia region, the risks are only becoming more tangible.

By Charlie Campbell February 20, 2020

Source: Could the 2020 Tokyo Olympics Be a Victim of COVID-19?

코로나19 확산 일로…도쿄 올림픽도 불안감 증폭 With the 2020 Tokyo Summer Olympics just five months away from kicking off in the Japanese capital,… the COVID-19 outbreak is raising concerns about whether the world’s biggest and most-celebrated sporting event might have to be called off. Lee Seung-jae reports. The Tokyo Marathon scheduled for March 1st will be held on a much smaller scale than originally planned this year in the light of the COVID-19 outbreak. Roughly 38-thousand amateur runners will not be allowed to participate,… instead it’ll be limited to only 200 elite runners and wheelchair participants. However, the bigger concern is the 2020 Tokyo Summer Games that’s scheduled to start on July 24th. As the COVID-19 outbreak is not yet under control,… there are concerns over whether the event could even take place. The WHO says it hasn’t made a decision on the matter. “We have not offered advice to the IOC for the Olympics one way or the other, and neither would we. It is not the role of WHO to call off or not call off any event. It is the role of WHO to offer technical advice, to support a considered a multi-layered risk assessment around an event, to offer advice on risk reduction and risk mitigation measures, to offer advice on risk response measures and it is the decision of hosting countries and the organizing agencies to make that decision.” According to the Tokyo 2020 Organizing Committee chairman,… the committee isn’t even considering cancelling or delaying the event,… and will press on with the Olympics regardless. Citing a Japanese virologist,… the New York Post reported on Wednesday,… that if the Olympics were to happen tomorrow,… they would have to be cancelled. The Tokyo organizing committee and the IOC have reiterated that they’re going to continue following the advice of the WHO. It raises the possibility that, if the outbreak spreads further,… the Tokyo 2020 Olympics could be postponed or completely called off. Lee Seung-jae, Arirang News. #COVID19 #coronavirus #Olympics Arirang News Facebook: http://www.facebook.com/arirangtvnews

Cruise Ship Stranded At Sea Over Coronavirus Fears To Dock In Cambodia

Topline: A cruise ship that was turned away from several ports in Asia over coronavirus fears—despite no cases onboard—will now dock in Cambodia after days of uncertainty and mounting anxiety among passengers.

  • The Holland America Line’s MS Westerdam was banned from docking by Thailand earlier this week, over concerns about coronavirus on the ship. Holland America Line, which is owned by Carnival Cruise, says nobody onboard has reported symptoms.
  • It will now dock in Sihanoukville in Cambodia on Thursday, where passengers will disembark over a few day and will be transported to the capital, Phnom Penh, and flown home. Holland America Line says it will pay for the flight sand refund passengers their entire trip.
  • The MS Westerdam had planned to disembark its passengers in Thailand after Japan, The Philippines and Guam turned away the cruise ship. The Thai government on Tuesday offered fuel, food, and medicine to the cruise ship.
  • Stephen Hansen and his wife are two of the 1,500 passengers stuck on the vessel, which sailed from Hong Kong on February 1st and had been scheduled to end its cruise in Japan on February 15.
  • Hansen told Forbes: “While I can understand that countries want to protect their own citizens first before helping us their decisions to turn us away are based more on misinformation and fear than facts.”
  • Holland America said in a statement on Wednesday: “All approvals have been received and we are extremely grateful to the Cambodian authorities for their support…All guests on board are healthy and despite erroneous reports there are no known or suspected cases of coronavirus on board, nor have their ever been.”
  • Passengers had been calling for political intervention, with Hansen saying that the countries’ decision to reject the vessel was down to “misinformation and fear,” rather than facts.

Key background: Cruise ships have become an unlikely flashpoint in the battle to stop the international spread of the coronavirus. The British-owned Diamond Princess cruise was quarantined in Tokyo last Monday, with 174 out of the 3,700 passengers on board now ill with the pneumonia-like illness. Around 3,600 passengers and crew were held aboard the World Dream cruise ship for four days in Hong Kong over concerns the ship staff had contracted the virus from infected passengers on an earlier cruise. Cruise Lines International Association, the industry’s trade organization, announced last week its members would bar passengers who had visited China, Hong Kong, or Macau, 14 days before their cruise, from boarding.

News peg: Coronavirus, this week renamed Covid-19, has now killed more than 1,000 people and infected at least 42,000 more. The outbreak is concentrated in mainland China, after the virus was first detected in patients who are thought to have visited a Wuhan market in December. Airlines have also been badly disrupted, with some international carriers suspended their flights to and from China, and a number of international companies and manufacturers have been impacted by the Chinese government’s move to extend the Lunar new year holiday in a bid to restrict the spread of the virus. Tens of millions were placed under lockdown by Chinese health authorities in cities like Wuhan that have seen the highest number of reported cases.

Further reading: Thailand Turns Away Cruise Ship Rejected By Three Nations Over Coronavirus Fears

Crew Members Plead For Rescue As Coronavirus Outbreak On Cruise Ship Grows To 135 Cases (Rachel Sandler)

Follow me on Twitter. Send me a secure tip.

I am a breaking news reporter for Forbes in London, covering Europe and the U.S. Previously I was a news reporter for HuffPost UK, the Press Association and a night reporter at the Guardian. I studied Social Anthropology at the London School of Economics, where I was a writer and editor for one of the university’s global affairs magazines, the London Globalist. That led me to Goldsmiths, University of London, where I completed my M.A. in Journalism. Got a story? Get in touch at isabel.togoh@forbes.com, or follow me on Twitter @bissieness. I look forward to hearing from you.

Source: Cruise Ship Stranded At Sea Over Coronavirus Fears To Dock In Cambodia

A luxury liner has been stranded for days after been denied entry in the Philippines and Japan. The Westerdam, owned by Holland America Line, has not reported any cases of coronavirus among the 2,200 passengers and crew. Subscribe to our channel here: https://cna.asia/youtubesub Subscribe to our news service on Telegram: https://cna.asia/telegram Follow us: CNA: https://cna.asia CNA Lifestyle: http://www.cnalifestyle.com Facebook: https://www.facebook.com/channelnewsasia Instagram: https://www.instagram.com/channelnews… Twitter: https://www.twitter.com/channelnewsasia

No Customers, Closed Stores: Chinese Entrepreneurs Brace For The Worst Amid Coronavirus Outbreak

Zhou Yuxiang was not in the mood for festivities during China’s Lunar New Year holiday this year. The 30-year-old CEO of Shanghai-based software startup Black Lake Technologies had to figure out how to manage his company amid the country’s deadly coronavirus outbreak. Working from home to comply with local quarantine rules has lowered productivity, while expenses remained high as he still needs to pay rent even when no one is using the office.

What’s more, Zhou says, clients are slower to take on new contracts as factories remain shut and production is delayed, hurting his otherwise fast growth.

“This epidemic caused production suspension for a considerable number of factory clients,” he says, who counts 300 factory owners as customers of his cloud-based management software. “Unpredictability on when factories could resume production has increased uncertainty for our first quarter growth.”

As the deadly virus, temporarily called 2019-nCoV, shows no sign of slowing, China’s vast business scene is taking a hit. While some companies, including Zhou’s, hope to recoup any losses before the year’s end, others are suffering a much more devastating blow.

This is because the epidemic’s economic damage is far and wide. It is believed to be more contagious than the 2003 Severe Acute Respiratory Syndrome (SARS) epidemic, causing the Chinese government to impose nationwide mall closures, movie cancellations and factory shutdowns to prevent the disease’s further spread. As manufacturing and business activities cease, first quarter GDP growth will plummet to 3.8%—which equals to $62 billion in lost growth—and drag full-year GDP growth below 6% to 5.4%, according to UBS economist Wang Tao.

Sectors that are hardest hit include catering, entertainment, hospitality, retail and transportation. These businesses tend to have heavy inventory or a lot of expenses, but they can’t generate any meaningful revenue when people stay indoors.

Jia Guolong, founder of popular restaurant chain Xi Bei, told local media this week that his company only had enough cash for the next three months. He still needs to pay rent and salary to more than 20,000 employees, even when his restaurants are largely empty. To preserve cash, Hong Kong’s flag carrier, Cathay Pacific has asked its 27,000 employees to take three weeks of unpaid leave, warning that the condition is as grave as the 2009 global financial crisis. And fast-food operator Yum China is expecting negative impact on 2020 full-year sales and profit, after temporarily shutting down 30% of its stores in China.

While these larger businesses may eventually have the resources to weather through, smaller startups could experience a life-and-death moment. Zhang Yi, founder of Guangzhou-based consultancy iiMedia Research, says he won’t be surprised if a wave of bankruptcies occur. And Wang Ran, founder of Beijing-based investment firm CEC Capital, urged startups to do whatever they can to survive.

“Downsize if you need to, relocate if you need to and lay off people if you need to,” Wang wrote in a recent blog post. “Only those who lived through this can see spring, and have a future.”

Beijing has put out rescue measures. The country’s central bank, the People’s Bank of China, announced on February 2 that it would pump $174 billion worth of liquidity into the markets to help cushion the impact. Local governments have called for rent deductions and more flexible salary arrangements, with the Shanghai municipal government promising tax and insurance refunds to employers who don’t engage in layoffs.

But analysts say business survival may ultimately depend on whether the virus can be contained. Since originating in the central Chinese city of Wuhan in December, it has spread across the country, infecting more than 28,000 people and killing over 500. There are now coronavirus cases around the world, including Japan, Thailand, Germany, the United States and the United Arab Emirates. The World Health Organization declared the outbreak a global health emergency and dozens of nations, including Italy, Singapore and the U.S., have placed travel restrictions from China.

“The longer this drags on, the bigger the damage,” iiMedia Research’s Zhang says. “If it lasts for another month, then it would be unbearable for any business.”

Startups are doing what they can to minimize damage. Black Lake’s Zhou is offering discounted services, especially to clients who are based in the most affected areas. Zhou Wenyu (not related to Zhou Yuxiang), founder of Shaoxing-based software startup Youshupai, is slowing down marketing activities and transferring its first quarter sales goal to the second quarter. And Joanne Tang, founder of travel and marketing agency Infinite Luxury, says she is diversifying to other Asian markets while reminding overseas-based clients not to reduce efforts in China.

“For sure, we are in a challenging time,” Tang says. “We have to monitor how it goes, but we won’t be standing still and just wait until this is over.”

I am a Beijing-based writer covering China’s technology sector. I contribute to Forbes, and previously I freelanced for SCMP and Nikkei. Prior to Beijing, I spent six months as an intern at TIME magazine’s Hong Kong office. I am a graduate of the Medill School of Journalism, Northwestern University. Email: ywywyuewang@gmail.com Twitter: @yueyueyuewang

Source: No Customers, Closed Stores: Chinese Entrepreneurs Brace For The Worst Amid Coronavirus Outbreak

CNBC’s Eunice Yoon reports on how the coronavirus outbreak is expected to take a serious toll on China’s economy. Expect supply disruptions as China takes measures to contain an ongoing coronavirus outbreak, says REYL Singapore’s Daryl Liew. “The sharp action taken by the Chinese government to basically delay workers going back to work is definitely going to cause some supply disruptions,” Liew, who is chief investment officer at REYL Singapore, told CNBC’s “Street Signs” on Thursday. With the virus infecting at least 7,700 and killing 170 in China, authorities have taken measures to curb the disease’s spread. At least three provinces have declared that businesses, other than some essential industries, are barred from resuming work before Feb. 10. In Hubei province, where the majority of cases have been found, resumption of local business has been delayed till at least Feb. 14. A “big question mark” remains over how long the disruptions could last, Liew said, as it depends on whether the situation can be contained. That comes as manufacturing numbers were showing “some normalization,” he added. “It’s a bit of a lagging indicator but the December ISM numbers have all been broadly positive, especially for Asian economies … which suggest essentially that global trade is normalizing. It’s not bouncing back significantly but it is rebounding,” Liew said, adding that that has translated to better manufacturing numbers. “The current virus … and the extended shutdown in China will definitely put a crimp to that,” Liew said. Potential impact on US businesses The outbreak has sent tremors across markets in Asia and beyond in recent days, as investor concerns about the potential economic impact grow. “We’re concerned that there could start to be … some overall impact on the Chinese economy which could lend itself, from a sentiment perspective, to greater concerns … for the global economy,” Shannon Saccocia, chief investment officer at Boston Private, told CNBC on Thursday. That could spillover into the performance of U.S. businesses at a time when the “strain of lower production” is being felt stateside, Saccocia said. “If we start to see that upended by the fact that factories aren’t opening and … we’re not able to get the components that we need from the Chinese economy, you know, that could … certainly slow any sort of manufacturing reacceleration that we were hoping for in the first two quarters of 2020,” she said. The Chinese city of Wuhan, the capital of Hubei province, is the epicenter of the outbreak, and authorities have placed multiple cities in the province under partial or complete lockdown. Wuhan and the surrounding region of Hefei and Jiangsu are major manufacturing hubs that work with American firms. But they have also been shut down due to the virus outbreak. “As an investor, you need to understand … where the supply chain starts and ends and factor in to your expectations … for those companies,” Saccocia said, though she acknowledged that it’s “a little early” to “paint the picture that half of the year is going to be meaningfully lower from a growth standpoint due to this virus.” For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://www.cnbc.com/pro/?__source=yo… » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC #CNBC #CNBC TV

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