Economic fallout from coronavirus grows
The New York Times :
Economic fallout from the coronavirus epidemic continued to spread Tuesday, with new evidence emerging in manufacturing, financial markets, commodities, banking and other sectors.
HSBC, one of the most important banks in Hong Kong, said it planned to cut 35,000 jobs and $4.5 billion in costs as it faces headwinds that include the outbreak and months of political strife in Hong Kong. The bank, based in London, has come to depend increasingly on China for growth.
Jaguar Land Rover warned that the coronavirus could soon begin to create production problems at its assembly plants in Britain. Like many carmakers, Jaguar Land Rover uses parts made in China, where many factories have shut down or slowed production; Fiat Chrysler, Renault and Hyundai already have reported interruptions as a result. U.S. stocks declined Tuesday, a day after Apple warned that it would miss its sales forecasts because of the disruption in China. Stocks tied to the near-term ups and downs of the economy slumped, with financials, energy and industrial shares the leading losers.
The S&P 500 index fell 0.3%. Bond yields declined, with the 10-year Treasury note yielding 1.56%, suggesting that investors are lowering their expectations for economic growth and inflation.
With much of the Chinese economy stalled by COVID-19, the disease caused by the new coronavirus, demand for oil has fallen and prices were down Tuesday, with a barrel of West Texas Intermediate selling for roughly $52.
In Germany, where the economy depends heavily on global demand for machinery and automobiles, a key indicator showed economic sentiment has tumbled this month, as the economic outlook has weakened.
At least 150 million people in China - more than 10% of the country's population - are living under government restrictions on how often they can leave their homes, The New York Times found in examining dozens of local government announcements and reports from state-run news outlets.
More than 760 million Chinese people live in communities that have imposed strictures of some sort on residents' comings and goings, as officials try to contain the new coronavirus epidemic. That larger figure represents more than half of the country's population, and roughly 1 in 10 people on the planet.