Coronavirus: Fear returns to stock

markets
 6 March 2020IMAGES

Global stock markets have fallen sharply as investors continue to worry about
the broader economic effects of the coronavirus.

London's FTSE 100 share index fell more than 3% and there were similar declines in
other European markets.

In the US, upbeat data on hiring and unemployment failed to buoy investors.

The Dow Jones Industrial Average closed almost 1% lower, while the Nasdaq slumped
1.8% and S&P 500 ended down 1.7%.

The monthly report from the US Labor Department found US employers added 273,000
jobs in February - significantly beating expectations - while the jobless rate fell back to
near a 50-year low of 3.5%.

The report also revised up estimates of job gains in January and December, finding
85,000 more than previously understood.

The surveys, however, reflect data collected before the outbreak intensified. In recent
weeks, global travel has plunged, while work, school and shopping has been disrupted
in many countries.

Despite the strong data, markets were focused on the impact of the virus. "Today's jobs
report is old news," said Sarah House, senior economist at Wells Fargo.

The economic strength signalled in the report is a "little like the saying, the car was in
fine condition before being involved in a collision", said Mark Hamrick, senior economic
analyst for Bankrate.com.

"The new reality, amid tremendous uncertainty, is the world has experienced a seismic
shift," he said.

Earlier on Friday, markets in Asia had seen big falls, with Japan's Nikkei share index
dropping by 2.7%.

The 3.6% drop in the FTSE 100 wiped out the gains seen earlier this week on the index.

Shares in travel companies again saw some of the steepest falls.

Banks also took a hit, as investors anticipate that interest rates might be cut in order to
make borrowing cheaper for companies and consumers to keep the economy buoyant.
Energy firms were under pressure as well, after the collapse of a proposal by major oil
producers to keep oil supply in check sent oil prices tumbling more than 8%.

"The markets didn't even bother with the pretence of a calm start on Friday, bringing
another rough week to a close," said Connor Campbell, analyst at financial spread
better Spreadex.

"The week's various central bank rate cuts only served to reinforce the seriousness of
the situation."

Earlier this week, the Federal Reserve, the US's central bank, cut its benchmark
interest rate by 0.5 percentage points to a range of 1% to 1.25% in an attempt to
ease investor concerns.

Many analysts predict it will cut rates again - perhaps as soon as its meeting this month.

As traders seek less risky investments, they are turning to government bonds, sending
prices higher.

The bond market - which is many times larger than the stock market - includes tradable
loans to governments and businesses. Yields - how much investors will recoup in
interest from the loans - drop as the price of the loan rises.

Benchmark 10-year UK government debt now only offers a 0.24% return - a record low.
In the US, the yield on a 10-year Treasury also fell to a record low, falling below 0.7%.
"With the 10-year Treasury yield slumping to a new record low and stock markets under
pressure again today, it is questionable whether the Fed can wait until its scheduled
meeting mid-month to deliver the next rate cut," said Paul Ashworth, chief US
economist at Capital Economics.

What do I need to know about the

coronavirus?
 LATEST: Live coverage of developments
 EASY STEPS: What can I do?
 GETTING READY: How prepared is the UK?
 MAPS AND CHARTS: Visual guide to the outbreak
 VIDEO: The 20-second hand wash
All Your Questions About The Coronavirus
And The Stock Markets Answered
"If it was easy to predict, I would be rich and so would you."

Amber JamiesonBuzzFeed News Reporter

Posted on March 2, 2020, at 4:16 p.m. ET
  Tweet
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Spencer Platt / Getty Images

"Stock market crash!" read the panicked headlines last week, after the spread of
the coronavirus continued with outbreaks of COVID-19, the disease the virus causes, in
Iran, Italy, Japan, South Korea, and the United States.

The resulting fear caused the US stock market to have its worst week since the start of the
2008 recession.

But should people be stressing about the market upheaval? Is your money at risk? We
look at the experts for advice on how the coronavirus is affecting the markets.

What exactly is going on and why is the stock

market freaking out?
Markets really don't like uncertainty, because it makes it hard for businesses to plan. So
the spread of a potential global disease fuels huge panic.
Investors have been selling their stock to get their money out of the market, or into
"safer" investments. Last week $5 trillion was wiped from global financial markets.

The Dow — short for the Dow Jones Industrial Average, an index of 30 major blue-chip
stocks that is often used as an indicator for the market itself — had its single biggest one-
day drop in history, falling 1,191 points on Thursday.

But the drop felt even more dramatic because two weeks earlier the Dow hit a record
high.

"Part of the stock market decline is the result of stocks being overvalued," economist
Mark Weisbrot, codirector of Center for Economic and Policy Research, a Washington
think tank focused on economic policy, told BuzzFeed News — meaning the drop was
partly just the market correcting itself.

While it was the biggest point drop in history, there have been much larger drops in terms
of percentage of the Dow overall. For some historical comparison, the Dow dropped
4.4% last Thursday, however during the Wall Street crash of 1929, it dropped 13% one
day and 12% the day after.

Plus, it's not like years and years of investment gains got wiped out last week.

"The stock market saw its worst week since the financial crisis as coronavirus fears
gripped markets," said Greg McBride, chief financial analyst at Bankrate.com, in a
statement. "But the market is still higher than it was as recently as last August."

Yasser Al-Zayyat / Getty Images

A Kuwaiti trader wearing a protective mask follows the market at the Boursa Kuwait stock
exchange in Kuwait City, March 1.

Which stocks are being most affected?

All of them! But oil stocks plummeted as travel has been cut, factories across China
closed, and manufacturing and deliveries halted.

"For now, what we know for sure is that the month of February will record the worst oil
demand contraction since the Great Recession," said Claudio Galimberti, head of
demand, refining, and agriculture analytics at S&P Global Platts, a financial information
company, in a statement.

"We also know that global aviation will be hit very hard across Asia and take months to
get back in shape," said Galimberti.
Many companies in the US — including Twitter, CNN, and Amazon — have said they
are cutting employee travel to try to reduce the disease's spread.

How will COVID-19 outbreaks across the world

affect the US?
The US stock market is often pretty robust, even when other economies are struggling.

"The US is not completely insulated, of course, from the global economy, but it's
nowhere near as dependent as most people think it is," said Weisbrot, noting that imports
only count for around 15% of the US GDP (gross domestic product, the value of all
goods and services produced annually).

That means that 85% of what we consume in this economy is made in the US and makes
the country less vulnerable to international upheaval.

People may think of manufactured products, "but most of what we consume is services,"
such as health care or transport, noted Weisbrot.

But US economic policies can determine how much other countries suffer from the
coronavirus.

Weisbrot noted that US sanctions against Iran and Venezuela may contribute to the
spread of the virus there, noting that in Venezuela "it’s the sanctions that’s keeping this
economy from having the basic infrastructure, including water, for people to be able to
avoid a public health nightmare."

Thomas Lohnes / Getty Images

The DAX Index curve shows the downward trajectory at the Frankfurt Stock Exchange of the
Deutsche Börse AG in Frankfurt, Germany, March 2.

Is the media just panicking?

On a day-to-day basis, there aren't stories written about the markets having an OK day, so
we usually only read about either record highs or scary crashes.

"I got a note today from a reporter saying, 'What are you going to do today to calm the
markets?'" Mick Mulvaney, the director of the Office of Management and Budget, said at
the Conservative Political Action Conference on Friday. "Really what I might do today to
calm the markets is tell people to turn their televisions off for 24 hours."
Weisbrot noted that the focus on the markets by the media was misguided, because "the
stock market is not the economy, and it shouldn’t be treated so much as such."

And it's also investors who are panicking.

"There’s a whole psychological component to all of this," said Weisbrot.

Frank Cappelleri, an executive director at Instinet, told the Wall Street Journal the market
is being swayed by "human emotions."

How does this affect me, a normal person and

non-billionaire?
"The majority of people don't own any stock at all, even in retirement accounts," said
Weisbrot. He noted that around 10% of people own around 80% of stocks, so only a
small percentage of people — the wealthiest — are truly affected when a stock market
crash happens.

A Gallup poll last September found just 55% of Americans own stocks, including in a
401(k) or IRA, the two most common forms of retirement accounts.

Weisbrot also noted that rising stock prices are not necessarily a good thing for everyone,
because it may reflect an increase in profits beneficial to a shareholder, but not reflect an
increase in wage to a worker at the company.

"The main concern should be actually to public health," said Weisbrot. "The two are
related, but if you get the public health part right, the stock market will take care of
itself."

Romeo Gacad / Getty Images

A woman wearing a protective face mask looks at an electronic quotation board displaying share
prices of the Bangkok Stock Exchange in Bangkok, Feb. 29.

Is my 401(k) or retirement savings account

screwed?
Retirement accounts are invested in the stock market because historically that's the safest
way to ensure that your money grows. But retirement accounts are also usually very
diversified — meaning they are split between a wide variety of stocks, bonds, and other
investments to ensure they can handle market uncertainty.
 Young people in particular should not worry or try to cash out their retirement investment
funds, experts said. Because they are built to weather the drops over many years, there is
plenty of time to make up for any losses, and taking out money early will ensure a huge
loss in compound interest.

"If you’re in there for the long haul, the conventional wisdom is basically true," said
Weisbrot.

Plus, it's a good opportunity to "buy the dip" — also known as buying when prices are
low.

What's going to happen next?

No one knows yet! A major reason for the market's volatility is uncertainty.

But, stocks go up, and stocks go down, and then, usually they go up again. And on
Monday, the Dow closed back up 1,200 points.

So wash your hands, and try to stay calm.

"If it was easy to predict," said Weisbrot, "I would be rich and so would you."

CORONAVIRUS
 Six People Have Died Of Coronavirus In Washington As New
Cases Were Reported Across The USTasneem Nashrulla · March 2,
2020
 These Charts And Maps Show How The Coronavirus Is Spreading
Across The WorldPeter Aldhous · March 1, 2020
 The Leader Of The Religious Sect That Spread Coronavirus In
South Korea Says SorryMatthew Champion · March 2, 2020
 World’s Biggest
Coronavirus Victim
in Equities Is
Southeast Asia
By 
Abhishek Vishnoi
, 
Michelle Jamrisko
, and 
Ian C Sayson
February 28, 2020, 5:24 PM GMT+8
  
Thailand entered bear market; Philippines, Indonesia are close
  
All six Asean nations count China as largest trading partner
A man walk past an electronic stock board at the Stock Exchange of Thailand (SET) in
Bangkok, Thailand. 
 Photographer: Nicolas Axelrod/Bloomberg
LISTEN TO ARTICLE
 
2:50
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In this article
SPX
S&P 500
2,741.38
USD
-140.85-4.89%

005930
SAMSUNG ELECTRON
51,300.00
KRW
-800.00-1.54%

1374905D
AP SECURITIES INC
Private Company

Follow Bloomberg on LINE messenger for all the business news and analysis
you need.
The S&P 500 Index may have witnessed its quickest correction ever,
but one of the biggest stock-market victims of the coronavirus
epidemic has been Southeast Asia.
The tumble this week has pushed equity benchmarks of Thailand,
Indonesia and the Philippines to rank among the world’s 10 worst-
performing major markets this year. Panic selling has taken the
MSCI Asean Index more than 17% below a high reached in July.

The region’s heavy reliance on China for trade and tourism means
the disruptions caused by the virus are dealing a bigger blow to its
economy. All six of Southeast Asia’s biggest economies count China
as their top trading partner. Open capital accounts also don’t help
when fear grips markets.
“The markets are starting to price in an escalation in COVID-19 from
a regional epidemic to a global pandemic,” said Alan Richardson, a
regional fund manager at Samsung Asset Management in Hong
Kong. Southeast Asia equities are getting hurt more than others
“because they don’t have closed capital accounts,” he added.

The virus epidemic is growing at a rapid pace in countries outside of

China. The number of confirmed infections has exceeded 2,300 in
South Korea while more cases appeared in Italy, Iran and Kuwait.
Nigeria confirmed on Thursday the first reported infection in sub-
Saharan Africa, a day after Brazil had the first in Latin America.

The benchmark stock gauges of Malaysia and Thailand entered bear

markets this week, while those of Indonesia and the Philippines are
down 19% from previous highs. Singapore’s index has lost 17% from
its May 2018 peak, and Vietnam’s is still down 27% from its high two
years ago.

READ: Growth Downgrades in Southeast Asia Fuel Calls for Stimulus

Thailand is among those hit the hardest in Southeast Asia by the
plunge in Chinese visitors, while Singapore has warned it is bracing
for a 25% to 30% decline in arrivals this year. These countries are
facing downside pressure for economic forecasts, leading policy
makers to unveil support measures. Indonesia announced $742
million of fiscal incentives this week for its tourism, airline and
housing sectors hit by the virus.
“I don’t think we have seen the bottom until we see economies
entering a recession and the damage of the coronavirus comes out
in tangible numbers,” said Manny Cruz, a strategist at Manila-based
Papa Securities Corp. “The negative sentiment is pervasive.”

Still, there are some green shoots in Southeast Asia: Indonesia has
yet to report any case, while the infection rate in Singapore has
slowed and been outpaced by recoveries.

READ: Singapore Emerges as Litmus Test

for Coronavirus Containment

But for most investors and analysts, the outlook for Southeast Asian
equities remains hazy as the epidemic wreaks havoc on lives and
supply chains.

“It’s hard to see a recovery for the market isn’t looking at

fundamentals unless the viral scare tapers down,” said Rachelle
Cruz, an analyst at AP Securities Inc. in Manila. “Investors are
pricing the coronavirus will have a widespread impact.”
— With assistance by Yantoultra Ngui

U.S. Warns on
Travel Abroad;
Cases Reach
125,000: Virus
Update
Bloomberg News
March 12, 2020, 6:33 AM GMT+8 Updated on  March 12,
2020, 12:39 PM GMT+8
Italy Orders Closure of All Shops Except Groceries, Pharmacies

Unmute

Italy Orders Closure of All Shops Except Groceries, Pharmacies

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TWTR

TWITTER INC

31.30
USD

-3.01-8.77%

CME

CME GROUP INC

194.68
USD

-12.33-5.96%

CL1

WTI Crude

31.36
USD/bbl.

-1.62-4.91%

NYT

NEW YORK TIMES-A

33.84
USD

-1.63-4.60%

The U.S. cautioned citizens against going abroad and President

Donald Trump suspended travel from Europe, as the World Health
Organization declared the coronavirus outbreak a pandemic.
Oscar-winning actor Tom Hanks said he and his wife have the
pathogen, which a top infectious-disease specialist said is 10 times
more deadly than the seasonal flu. The National Basketball
Association canceled all games until further notice, and officials
across the globe took steps to discourage or ban large gatherings as
cases reached 125,000.
 The global stock rout deepened as Trump stopped short of offering a
detailed rescue package, even as Australia and the U.K. unveiled
stimulus measures.
Key Developments:
 U.S. tells citizens to reconsider travel abroad
 NBA suspends season, Tom Hanks tests positive
 Confirmed cases at 125,000 globally; 4,600 dead
 Trump’s error-laden “foreign-virus” speech has investors
spooked
 Stock rout deepens, havens surge
 Australia unveils A$17.6 billion stimulus
 Global sports responded to the virus. Why won’t the Olympics?
 What It Means Now That the Coronavirus Is a
Pandemic: QuickTake
Subscribe to a daily update on the virus from Bloomberg’s Prognosis
team here.
Click VRUS on the terminal for news and data on the coronavirus
and here for maps and charts. For analysis of the impact from
Bloomberg Economics, click here. To see the impact on oil and
commodities demand, click here.
Travel Bans Ineffective, Asia Airline Group Says (12:26 p.m.
HK)

Governments should roll back or refrain from using travel

restrictions as the coronavirus is mainly being spread through local
transmission rather than imported cases, a trade group of Asian
airlines said.

“Given that the Covid-19 outbreak is now progressing across the

globe, it is time for a fundamental rethink on travel restrictions,” the
Association of Asia Pacific Airlines said in a statement, shortly before
U.S. President Donald Trump announced a 30-day suspension of
travel from continental Europe to the U.S.
Emergency Virus Measure Introduced by House Democrats
(12:18 p.m. HK)
House Democrats introduced their multibillion-dollar response to the
economic dislocations caused by the coronavirus outbreak,
legislation that would provide emergency paid sick leave, enhanced
unemployment benefits and free coronavirus testing.

Speaker Nancy Pelosi plans to have the chamber vote on the bill
Thursday, a day after President Donald Trump announced his own
plan to try to contain the virus and deal with the economic impact.

Final Death Toll at 29 in China Hotel Collapse (11:53 a.m. HK)

A total of 29 people were killed after a hotel in southeastern Fujian

province that was used to quarantine people affected by the
coronavirus collapsed on March 7, China News Service reported.

U.S. Says Citizens Should Reconsider Travel Abroad (11:22

a.m. HK)

The U.S. State Department cautioned American citizens against

traveling abroad because of “the global impact of Covid-19.” The
travel advisory was a Level 3, one below the most severe category.

The department warned that many parts of the world dealing with
outbreaks of the virus “are taking action that may limit traveler
mobility, including quarantines and border restrictions.”

“Even countries, jurisdictions, or areas where cases have not been

reported may restrict travel without notice,” the department added.

New York Postpones St. Patrick’s Day Parade (11:16 a.m. HK)

New York Governor Andrew Cuomo said organizers have agreed to

postpone this year’s St. Patrick’s Day Parade in an effort to contain
the spread of the coronavirus, according to a statement from his
press office. No new date was given for the parade, which draws
about 250,000 marchers and 1 million to 2 million spectators to
Manhattan.

Trump Cancels Campaign Events (11:11 a.m. HK)

U.S. President Donald Trump canceled campaign events in Colorado

and Nevada “out of an abundance of caution from the coronavirus
outbreak,” White House spokeswoman Stephanie Grisham said in an
emailed statement. The campaign’s Tim Murtaugh said in a Twitter
post that Trump’s March 19 event in Milwaukee is also postponed
and will be rescheduled

Twitter Makes Working From Home Mandatory (11:09 a.m.

HK)
Twitter Inc. escalated its coronavirus response by mandating that all
employees must work from home, having previously only
recommended the practice. The San Francisco-based company has
more than 35 offices around the world, with its Hong Kong, Japan
and South Korea locations already put on mandatory remote work
due in part to government restrictions.
Pentagon Sets Travel Restrictions for Defense Staff (10:12
a.m. HK)

The U.S. Defense Department announced new travel restrictions for

military personnel, civilians who work for the department and family
members because of the coronavirus.

The restrictions, effective Friday, would “stop movement for the

next 60 days” to and from “Level 3 designated locations,” Secretary
of Defense Mark Esper said in a memorandum. Countries that have
been designated Level 3 by the Centers for Disease Control and
Prevention include China, Italy, South Korea and Iran.
South Korea Adds 114 New Cases (9:45 a.m. HK)

South Korea’s health ministry reported 114 new coronavirus cases

as of March 12, raising the total tally to 7,869 according to a
statement. The total death toll rose to 66 from 60.

Seoul Mayor Park Won-soon said earlier that a total of 99

coronavirus patients are related to a call center in Guro District,
according to JTBC. Seventy of those cases are from Seoul.

NBA Suspends Season After Player Tests Positive (9:39 a.m.

HK)

The NBA will suspend its season following Wednesday’s basketball

games, after a player preliminarily tested positive for coronavirus.

“The NBA is suspending game play following the conclusion of

tonight’s schedule of games until further notice,” the league said in
a statement. “The NBA will use this hiatus to determine next steps
for moving forward in regard to the coronavirus pandemic.”

The league also announced that a player on the Utah Jazz has
preliminarily tested positive for coronavirus.

Tom Hanks and Wife Have Coronavirus (9:31 a.m. HK)

Tom Hanks and Rita Wilson.

Photographer: Kevork Djansezian/Getty Images

American actor Tom Hanks says he and his wife, Rita Wilson, tested
positive for the coronavirus while in Australia.

Hanks, in Twitter post, says he and Wilson will be tested, monitored

and isolated for “as long as public health and safety requires.”
Trump Says He’s Suspending All Travel From Europe (9:15
a.m. HK)
President Donald Trump said he will suspend all travel from Europe
to the U.S. for the next 30 days, the most far-reaching measure yet
in the administration’s efforts to combat the spread of coronavirus.
The restrictions, which will not apply to the U.K., will go into effect
Friday at midnight, he said Wednesday in an Oval Office address.

Mexico Low Coronavirus Count Spurs Doubts About Testing Rate

What It Means Now That the Coronavirus Is a Pandemic
SoftBank’s Son Backtracks on Proposal for Free Virus Tests
Italy Shuts Down All Non-Essential Services as Virus Toll Rises

READ MORE FROM PROGNOSIS  

The president asked Congress to take action to deliver paid sick

leave to hourly workers who risk their livelihoods if they stay home.
He also recommended that nursing homes curtail non-medically
necessary visits.

Trump said he is deferring tax payments for certain individuals and

businesses affected by the virus. He said the deferments would
provide $200 billion in additional liquidity. He added that he is
instructing the Small Business Administration to provide emergency
capital to affected firms.

Donald Trump speaks during a televised address in the Oval Office on March 11.
Photographer: Doug Mills/The New York Times/Bloomberg

White House Offers Strategies for New York Suburb (9:01

a.m. HK)

The White House Coronavirus Task Force on Wednesday weighed in

on containment efforts in the New York suburb of New Rochelle. In a
statement, the task force said “these mitigation activities are
designed to address the effects of Covid-19 on areas that are
experiencing community spread.”
On Tuesday, New York State imposed a containment zone with a
one-mile radius in the Westchester County city, which is about 20
miles from Manhattan. Governor Andrew Cuomo said that the
National Guard would be called in to close large, public gathering
spaces.

Vice President Mike Pence spoke to Cuomo on Wednesday about

“these community mitigation strategies,” according to the task force
statement.

China Sees Lowest Number of New Cases Since Jan. 18 (8:48

a.m. HK)

China reported 15 additional coronavirus cases as of March 11, the

lowest number since Jan. 18. Eight of the new cases were from
Hubei, the province at the center of the outbreak, according to
statement from China’s National Health Commission.

China now has 80,793 total confirmed coronavirus cases. Its death
toll rose by 11 to 3,169. Ten of the latest fatalities are from Hubei.
Discharged patients rose by 1,318 to a total of 62,793.
Medical staff treat a coronavirus patient at Red Cross Hospital in Wuhan, March 11.
Photogrpher: AFP via Getty Images

Duterte to Test for Virus as Cabinet Exposed to Patient (8:26

a.m. HK)
Philippines President Rodrigo Duterte will test for the new
coronavirus after his finance and transportation secretaries
announced they were exposed to an infected person and will go on
self quarantine.
Finance Secretary Carlos Dominguez said he met with an infected
person on March 5 and 6 and while he’s not showing any symptoms,
he will be isolating himself until he gets tested. Transportation
Secretary Arthur Tugade also said he will go on a quarantine.
Australia Unveils A$17.6 Billion in Stimulus (8:12 a.m. HK)
Australia unveiled a A$17.6 billion ($11.4 billion) fiscal stimulus plan
to buttress the economy from the coronavirus outbreak that
threatens to tip the nation into its first recession since 1991.
The plan announced by Prime Minister Scott Morrison includes A$1.3
billion in support over two years to safeguard the jobs of 120,000
apprentices. The government will also spend A$6.7 billion over four
years to support the cash flow of small and medium businesses so
they can pay wages during the expected downturn. In addition, the
government will expand a tax write-off program with A$700
million in funding over four years to help businesses buy new
equipment.
Nation With No Virus Bans Visitors, Quarantines Locals (8:01
a.m. HK)
El Salvador is imposing some of the world’s toughest controls to
curb the spread of the new coronavirus before it has a single
confirmed case of the disease.

Governments from China to the U.S. have been accused of reacting

too slowly to prevent the deadly illness from spreading. El
Salvador’s President Nayib Bukele said he doesn’t want to repeat
their mistakes. “How much would Italy give to be in our position and
be able to declare a quarantine before having thousands of cases?”
Bukele said in a national address.

The measures involve a ban on all visitors to the country via all
ports of entry who aren’t residents or diplomats. Residents who
return to El Salvador will be quarantined for 30 days. Schools are
suspended for 21 days.

CME to Close Trading Pits in Ripple to Agriculture (7:25 a.m.

HK)
Shutdowns are starting to expand to the middle-America agriculture
industry. Derivatives exchange CME Group said it will close its
famed trading pits in Chicago at the end of Friday, a precaution to
prevent a large gathering that may contribute to the virus’s spread.
Elsewhere, the Houston Livestock Show and Rodeo shut down more
than a week early, and the Commodity Futures Trading Commission
said it was postponing an agriculture conference that had been
scheduled for Kansas in early April.

Cleaning supplies and antiviral cleaner outside a store in New Rochelle, New York,
March 11.
Photographer: Yuki Iwamura/Bloomberg

U.K. Likely to Move to ‘Delay’ Phase of Response (6:30 a.m.

HK)

Prime Minister Boris Johnson will chair a meeting of the U.K.

Government’s emergency committee Thursday afternoon, and his
office said he’s likely to announce that the virus response is moving
to the “Delay” phase.
That means accepting that the virus spread can no longer be
contained, and instead looking to slow its spread. Options include
encouraging home-working, restricting large gatherings, and closing
schools. Johnson’s government has faced questions about why it
hasn’t done that sooner, but has insisted it’s following scientific
advice about the most effective time to shift response.

Iranian firefighters disinfect streets and alleys in southern Tehran on March 11.
Photographer: Atta Kenare/AFP via Getty Images
Basketball Tournament to Be Played Without Fans (4:46 p.m.
NY)

The NCAA will conduct upcoming championship events, including

Division I men’s and women’s basketball tournaments, with only
“essential staff and limited family attendance,” NCAA President
Mark Emmert said.

Seattle Closing Public Schools (3:47 p.m. NY)

Seattle will close its public schools starting Thursday for at least two
weeks. With more than 53,000 students, it would be the first major
public school district in the U.S. to shut its doors in an effort to
contain the spread of the coronavirus. Several other schools in the
area, including the University of Washington, have already
suspended in-person classes.
U.K. Govt to Draft Emergency Laws (3:15 p.m. NY)

U.K. Health Secretary Matt Hancock offered to work with his Labour
opponents on writing emergency laws to tackle the virus outbreak.
Labour welcomed the move and said it would join talks, expected to
start on Thursday. Emergency laws are likely to allow teachers to
teach larger classes, hauliers to work longer shifts.

Matt Hancock
Photographer: Simon Dawson/Bloomberg

Hancock said Parliament will remain open, despite the WHO

declaring a pandemic, and a health minister becoming infected.

More Big Meetings Banned Across U.S. (2:50 p.m. NY)

Local and state officials across the U.S. took several steps to
discourage or ban large gatherings in an effort to slow the spread of
the coronavirus. Washington recommended that meetings of more
than 1,000 people in the nation’s capital be canceled or postponed
through at least March 31.

San Francisco public health officials banned events of 1,000 people

or more, including games for the National Basketball Assocation’s
Golden State Warriors, which will play without fans during its game
Thursday night against the Brooklyn Nets. The order lasts for two
weeks but can be extended as needed.

Kuwait Shuts Down Country (2:21 p.m. NY)

People queue in front of a bakery in Kuwait City on March 11.

Photographer: Yasser Al-Zayyat/AFP via Getty Images
The government declared the period of March 12-26 an official
holiday in an effort to limit exposure to the coronavirus outbreak,
state-run Kuwait News Agency reported on Wednesday. Employers
will continue to pay salaries. All commercial flights will be
suspended.

WHO Declares Pandemic (12:37 p.m. NY)

The outbreak of coronavirus is now a pandemic, the World Health

Organization’s top official said Wednesday in a press briefing. The
long-awaited pronouncement came as worldwide cases topped
120,000 while the number of deaths exceed 4,300.

“All countries can still change the course of this pandemic,” WHO
Director-General Tedros Adhanom Ghebreyesus said in the briefing.
“If countries detect, test, treat, isolate, trace and mobilize their
people in the response, those with a handful of cases can prevent
those cases becoming clusters and those clusters becoming
community transmission.”
A coronavirus patient receives acupuncture treatment at Red Cross Hospital in Wuhan
on March 11.
Photographer: AFP via Getty Images

The new coronavirus is the cause of the first pandemic since 2009,
when a novel influenza strain swept around the world, infecting
millions of people.

Coronavirus Far More Lethal Than Flu, Fauci Says (11:53 a.m.
NY)

Anthony Fauci, director of the National Institute of Allergy and

Infectious Diseases, told U.S. lawmakers the new coronavirus is 10
times more deadly than the seasonal flu.
“The flu has a mortality of 0.1%. This is ten times that. That’s the
reason I want to emphasize we have to stay ahead of the game.”

Coronavirus Is 10 Times More Lethal Than Seasonal Flu, Fauci Says

National Institute of Allergy and Infectious Diseases Director Anthony Fauci says the
novel coronavirus is “10 times more lethal than the seasonal flu.”
(Source: Bloomberg)

U.K. Unveils Stimulus (8:54 a.m. NY)

U.K. Chancellor of the Exchequer Rishi Sunak says announced a total
fiscal stimulus package valued at 30 billion pounds ($39 billion) to
support jobs and businesses. That came hours after the Bank of
England cut interest rates.
The government will fund statutory sick pay for employees of small
and medium-sized companies who are off work because of
coronavirus, Sunak said.
— With assistance by John Harney, Kim Chipman, Tim Ross, Jennifer Jacobs,
Saleha Mohsin, Michael Hirtzer, Cecilia Yap, Clarissa Batino, Jason Scott,
Alexandra Veroude, and Derek Wallbank
UP NEXT

Coronavirus in Philippines: The

Covid-19 risk, impact and measures
By Praveen Duddu
 

SHARE
Philippines, one of the high-risk countries from the Wuhan
coronavirus outbreak, recorded the first death outside China.

Visit our Covid-19 microsite for the latest coronavirus news, analysis and
updates

Follow the latest updates on coronavirus outbreak:

Coronavirus outbreak: Full list of the affected countries

 Coronavirus-affected countries: Italy Iran Middle East USA South
Korea Japan Singapore Malaysia China UK Thailand  Philippines  India

Countries that tested negative – see where coronavirus has not yet reached

Coronavirus timeline of events and latest updates

Coronavirus safety measures at world airports

How long do you think it will take for a Covid-19

(coronavirus) vaccine to be made available globally?
  Within three months

  Within six months

  Within one year

  More than one year

View Results

Vaccines/drugs in the pipeline for coronavirus prevention and treatment

Countries with suspected coronavirus cases

When did coronavirus reach the

Philippines?
The first case of novel coronavirus (2019-nCoV, now Covid-19) in the Philippines was confirmed
on 30 January 2020, in a 38-year old woman who arrived from Wuhan. Two days later, the
Philippines recorded the first death outside China on 01 February 2020.

The Philippines government has declared a health emergency on 09 March, following a spike in
new confirmed cases and local transmission. The move will release funds to local governments
and healthcare officials to handle any further surge in cases.

Coronavirus: Philippines Covid-19 cases

As of 11 March, the total Covid-19 cases in the Philippines stand at 49. One of the coronavirus-
confirmed on 06 March was confirmed to be a human-to-human transmission putting the
nation on a high alert. The man attended prayer in late February, which increases the concerns
of possible transmission to other devotees who attended the same.

Educational institutes in the country are announced to be closed from 09 March to 15 March.
Coronavirus-affected Filipinos on
Diamond Princess cruise ship
Seven passengers onboard the Diamond Princess cruise ship and more than half of the crew are
from the Philippines, among who 80 have been confirmed to have contracted the virus.

The Philippines government repatriated 445 of its citizens onboard the ship including ten
recovered cases on 25 February. The evacuees have been placed under a two-week quarantine at
New Clark City in Capas.

A total of 70 confirmed cases were not allowed to board the evacuation flight.

How risky is coronavirus to the

Philippines?
Due to its proximity to China, the Philippines is at a far greater risk of witnessing increased
cases of the novel coronavirus infection compared to other countries.

The Philippines is also home to hundreds of workers from China working in the Philippine
Offshore Gambling Operation (firms offering online gambling services). More than 230,000
migrant Filippinos often referred to as Overseas Filipino Workers (OFW) are also working in
China particularly Hong Kong and Macau as household workers.

A temporary ban was imposed on the workers from travelling to China or its special
administrative regions after the coronavirus outbreak on 2 February. The ban was lifted on 18th
February allowing OFWs to return to Hong Kong and Macau.

Manila is among the top 30 global cities receiving airline passengers from 18 high-risk cities in
China, according to WorldPop which ranked Philippines 14th among the 30 high-risk countries.

Chinese nationals account for the majority of the tourist population visiting the country as trade
and cultural relations have increased between the two countries in the recent past.

Coronavirus Philippines update: First death

outside China
The 44-year old Chinese national, who died, was the relative of the first patient diagnosed with
2019-nCoV. The patient developed severe pneumonia.

Preventive measures taken by the

Philippines government
The Philippines government is taking several steps to control the spread of the virus, including
travel restrictions, closure of schools and colleges, as well as training schools of the Philippines
National Police.

The government announced on 2 February 2020 that all persons except Filipino citizens and
permanent resident visa holders were temporarily barred from entering the country.

A temporary ban on Filipinos from travelling to China or its special administrative region was
also imposed. A mandatory 14-day quarantine for Filipinos returning to from China or its
special administrative region was announced.

Further, visa upon arrival for Chinese nationals has been temporarily suspended.

Travel ban to South Korea

The Philippines government issued a temporary ban on 26 February on all citizens from
travelling to South Korea, as the country reported a spike in the number of confirmed cases.

Further, people from the affected regions of South Korea including Gyeongbuk, Daegu and
Cheongdo have been banned from entering into the country.

Coronavirus in the Philippines: Measures at

airports
The Philippines Government announced travel restrictions to and from China, Hong Kong, and
Macau to minimise the spread. It also banned entry of passengers from the three countries.

Airlines cancelled flights from Philippines to China resulting in stranding.

Face masks shortage – importing from India and

Thailand
Philippines witnessed a surge in demand for face masks as fears over the coronavirus infection
increased, despite assurance from the government that there is no need to wear face masks yet.

The government reiterated that healthcare workers and patients with symptoms of the disease
should be given priority for masks.

The Philippines International Trading Corporation (PITC), meanwhile, identified two face mask
suppliers from India and Thailand to meet the demand for face masks.

The suppliers are expected to take more than 30 days to supply the masks. The India-based
supplier is expected to supply one million units, while the exact number of face masks that the
Thailand-based supplier can supply is yet to be determined.
The masks will be imported either by the DoH or the PITC.

Coronavirus outbreak: Impact on the

Philippines

Coronavirus and the Stock Market:

The Power of Panic
C O N TR I B U T O R

Martin Tillier

PUBLISHED

FEB 28, 2020 10:37AM EST

 CREDIT: LUCAS JACKSON / REUTERS - STOCK.ADOBE.COM






It has been quite a week! As I write this morning, S&P 500

futures are falling again, indicating an opening that would
represent a decline of over thirteen percent since last
Friday’s close, which was already off from recent highs.
There are all sorts of records being broken within that. It
includes the biggest single-day point drop in the Dow and is
the biggest weekly decline since the financial crisis. All
scary stuff, right? But maybe scary is the point we should
be focused on.
This a full-blown panic and has gone way beyond the logical
already. That is an inescapable conclusion when you see
news like this , that 40% of American beer drinkers won’t
buy Corona right now because of the coronavirus. Markets
aren’t the only place where rationality and reason are the
first casualties of panic, obviously.
The level of panic and lack of logic is visible in the other
direction too. Shares of Alpha Pro Tech (APT ), a maker of
surgical masks, have risen over 500% this week as
everyone looks for a winner in all of this.

For even the most calm and logical trader or investor,

however, panic creates a dilemma. As the old traders’
saying goes, the market can stay illogical a lot longer than
you can stay solvent.

Most of us like to think that the big players in the markets

are smarter than us, that everything they do is reasoned
and rational, but that is a hard belief to cling to at times
like this. It is, however, quite possible that that is still true.
Traders understand the power of panic and will use that to
make money the same way they will use anything else. In
many cases, the reason for a move is irrelevant, all that
matters is squeezing the most out of it that you can.

Even before we plunged these depths, it was obvious that

while coronavirus was the oft-stated reason for the selloff,
there had to be something more going on here. Do you
really think that a flu-like illness, even one that is
spreading quickly and has what seems at this point to have
a fairly high rate of fatality, will wipe an average of thirteen
percent off the earnings of all 500 companies in the S&P
index for a sustained period? The history of previous virus
scares suggests it won’t.

The size of the stock market reaction is more likely the

result of inflated stock valuations and other risks that were
known before anybody had heard of the novel coronavirus.
As I pointed out last Thursday morning , just before all this
began, stocks were primed for a drop before too long, virus
or no virus.

Much more relevant than any disease is the fact that prior
to the earnings season just ended, we had four consecutive
quarters of declining year-on-year profits for S&P 500
companies. That is not that surprising after such a
sustained, strong growth in profit but the fact that all the
major indices continued to hit record highs throughout that
suggested that something had to give.

Panics like this are part and parcel of trading and investing.
They come and go. Some of the fears turn out to be
justified, as they were in 2008 and 2009, but that was a
panic about the very fabric of the financial system. More
usually, they end up like the Ebola panic, forgotten and
moved on from a few months later.
 The problem is that panic is much more contagious than
even the coronavirus. I will avoid using the now-cliched
quote from Warren Buffett, but for long-term investors in
particular, maybe it is nearly time to start getting greedy.

The views and opinions expressed herein are the views and
opinions of the author and do not necessarily reflect those
of Nasdaq, Inc.

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OTHER TOPICS
MARKETS  WORLD MARKETS
 Martin Tillier



Martin Tillier spent years working in the Foreign Exchange

market, which required an in-depth understanding of both

the world’s markets and psychology and techniques of

traders. In 2002, Martin left the markets, moved to the U.S.,

and opened a successful wine store, but the lure of the

financial world proved too strong, leading Martin to join a

major firm as financial advisor.

Why is the PH stock
market down?
By: April Lee-Tan - @inquirerdotnet
Philippine Daily Inquirer / 04:00 AM February 03, 2020

The Philippine Stock Exchange Index (PSEi) ended January on a very

weak note, down by 7.9 percent in a span of just one month.

This, despite the Philippines’ brighter economic outlook for 2020: benign
inflation, the timely passage of the government’s budget, the falling risk
of a global economic recession and stocks’ attractive valuation.
ADVERTISEMENT

Nevertheless, there are also several factors pulling the stock market
down. These include the following:

Taal Volcano eruption: Last Jan. 12, the Taal Volcano erupted, belching
ash that reached as far as Manila and parts of Central Luzon.

More concerning though is the uncertainty over how violent the eruption
could be or how long it could last. If history were to repeat itself, Taal
could remain active for several months. Note that in 1754, Taal’s unrest
lasted from May 15 to Dec. 1, or almost seven months.

Taal’s eruption is expected to negatively affect the country’s tourism and

agricultural sectors. In fact, inflation could go up because of supply
disruptions. The longer the eruption lasts, the larger the impact on the
economy as tourists continue to avoid Tagaytay while farmers cannot
plant.
If Taal’s eruption becomes violent, it could also hurt some manufacturers
located near the area. Luzon could also suffer from brownouts as 30
percent of the island’s power generating capacity is located in Batangas.

Worsening 2019 novel coronavirus (2019-nCoV) outbreak: Although the

first case of the coronavirus was identified in December last year, global
markets only started reacting last week after the number of infections
and deaths increased exponentially in a growing number of countries
around the world. The World Health Organization already declared a
global health emergency last Friday.

Compared to 2003, when the severe acute respiratory syndrome (SARS)

outbreak took place, the spread of the new virus is much faster. More
than 11,000 people are now infected globally since it was first identified
in December.

The new coronavirus is spreading much faster as Chinese domestic and

international travel have increased significantly from only 16.6 million
trips in 2003 to 149.7 million in 2018 based on government estimates.

This recent outbreak is expected to hurt the tourism sector the most as
people avoid traveling to reduce the risk of catching the virus.
ADVERTISEMENT

The Philippines is also expected to be more vulnerable to the 2019-nCoV

as there are now significantly more Chinese tourists coming to the
country. By the end of October in 2019, there were 1.5 million Chinese
tourists accounting for 22 percent of all inbound tourists.

Water concession issue remains unresolved: Last December, the

Philippine government decided to revoke the extension of Manila Water
and Maynilad’s water concessions from 2022 to 2037.

The President also threatened to sue the water firms for economic
sabotage, and to nationalize the water concessions if the water firms do
not accept a new contract. Until a new contract that is favorable to both is
drafted, concerns that the government can change regulations anytime to
fit its need is causing many investors to stay away.

Irrelevance of the Philippines in the emerging market basket: The

Philippine stock market’s weight in the MSCI emerging market index is
only less than 1 percent. Given the Philippines’ small size, foreign
investors are deciding to just stay away until most of the risks are
resolved.

For the month of January, foreign investors remained net sellers in the
stock market to the tune of P8.4 billion. The impact of their selling activity
is significant as they account for more than 50 percent of the Philippine
market’s value turnover.

Weak global market: After performing strongly the past few weeks,
global markets are now suffering from a correction, largely due to
concerns of how the novel coronavirus outbreak would hurt economic
growth. Unfortunately, the weak performance of global markets is also
hurting the performance of the local bourse even though we never
participated in the rally that took place earlier on.

There is a silver lining though, as most of the risks hurting the

performance of the Philippine stock market are only temporary. Note
that the Taal Volcano alert level was downgraded to 3 from 4, meaning
there is a smaller chance that a hazardous eruption would take place.

Although it took around eight months to resolve the SARS outbreak in

2003, there is a chance that the new coronavirus outbreak will be
stemmed quicker as China and the rest of the world are responding faster
to address the pandemic.

We also believe the water concession issue will eventually be resolved.

After all, Justice Secretary Menardo Guevarra recently said the
government doesn’t want to kill the water concessionaires and that the
case will be resolved in the next six months.

That said, although the Philippine stock market could continue to go

down in the short term, we don’t expect it to stay down for a very long
time as we expect the risks facing the country to be resolved in less than a
year. This should create an opportunity for investors to buy cheaply,
allowing them to book substantial gains going forward. INQ

Read more: https://business.inquirer.net/289580/why-is-the-ph-stock-market-
down#ixzz6GS1DMvTm
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