Corona Virus, Supply Chain, Economy, Demand

06 Feb 2020

Corona Virus and the Global Supply Chain II

The Chinese Government action in the wake of the Corona Virus crisis signals there could be a financial panic in China. China injected 1.2 Trillion Yuan into the banking system to avert a run or a panic.

Earlier, the Government extended the Lunar holiday by a week so tomorrow marks the first working day for the Chinese returning from the long holiday. China is known for taking radical actions such as banning short-selling to contain spiraling market declines.

What happens in the Chinese marke will signal to the world the extent of the crisis and its effect on the Chinese economy. The global markets will be watching closely.

Which US companies will be affected?

In addition, the Airlines already reeling from the Boeing 737 Max crisis are about to face a new blow from the Corona Virus. Travel is already affected. Now the Whitehouse is getting ready to call for a ban on all air travel from China into the US.

United Airlines will be the most affected as it has the most long haul flights from China! This may be a tough few months for the Airlines to sort through these. The silver lining is the declining oil prices that help them with lower fuel costs....

What are the other risks from these challenges? Globally, what will be the effect?


Read Part I

Read Part III

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