February 19, 2020

CORONAVIRUS EPIDEMIC TESTS THE WORLD’S ECONOMIC VIGOR:

In the last three weeks, a spate of corporate and governmental announcements shows the U.S. and Chinese economies remain entwined.

For example, Apple warned investors that the coronavirus epidemic will prevent it from meeting first-quarter profit expectations. Domestic Chinese demand for Apple products has declined sharply. The epidemic has also disrupted iPhone production in China. Apple remains a blue chip company, but it faces demand and supply chain problems.

The epidemic has also disrupted the world’s largest mobile phone industry trade show, the Mobile World Congress. On Feb. 12, the MWC decided to cancel its annual Barcelona conference. Fear the disease may spread is one reason, but travel restrictions from East Asia would have reduced attendance.

The virus even bugs the oil business, “with Iran a definite loser.” Read the entire essay.

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