The strong expansion of the coronavirus (Covid-19) outside of China and the possibility that evil becomes a pandemic hit all world markets, afraid that the world economy will register a slowdown as China has already begun to live, a focus of evil.
And is that the number of infections by Covid-19 continues to grow in South Korea, Iran and Italy, while the World Health Organization (WHO) said that although at this time you can not talk about a pandemic, it is “time to prepare for it.”
South Korea, with 800 infected and eight dead, is the second most affected place after China, while in Iran there are already 12 dead and 64 affected; In Italy there are more than 224 infections and the death toll is seven.
(You may be interested: The world must prepare for an ‘eventual pandemic’, according to WHO)
The expansion of the coronavirus outside of China and the intensity of the epidemic in Italy, one of the great European economies, He punished the world stock exchanges on Monday, especially Milan.
In addition, the price of oil sank 3.65 percent in the WTI reference to $ 51.43 a barrel and 3.8 percent Brent (Colombia’s crude oil reference) to $ 56.30 and virtually all other commodities (raw materials) of the world; and shifted investment towards refuge assets such as gold or debt securities of countries with healthy economies.
Italian economy hit
Uncertainty about the scope that the coronavirus can have in Italy will also hit the economy of the regions of Lombardy and Veneto, which represent a third of the country’s gross domestic product (GDP), and blocking productivity in these areas can lead to country to a recession, said economist Andrea Giuricin.
“The two regions are worth 550,000 million euros themselves, the equivalent of 31 percent of Italy’s GDP, and account for 40 percent of exports.”
Globally, it has already been seen how air and land transport, tourism of people, fairs and congresses, business trips, sports championships and consumption have begun to resent with its consequent effects on corporate profits and economic prospects in general.
The International Monetary Fund warned that the epidemic could put at risk an already fragile global economic recovery. The outbreak will reduce global growth by approximately 0.1 percentage points and limit China’s growth to 5.6 percent this year, he said.
The American millionaire Warren Buffett said what happens “will not affect the stock market, but for the human species, when there is a pandemic, it is scary. ” “The prospects at 20 or 30 years will not change for the coronavirus,” he said.
The numbers of infections outside of China, which already counts 77,658 affected and 2,663 dead from China, they are still low in other countries but they are of concern to WHO, which announced that it will send scientists to Italy and Iran to help their authorities to implement the necessary containment measures.
The head of the WHO mission sent to China 15 days ago, led by Canadian epidemiologist Bruce Aylward, said that “the country’s containment measures are the most ambitious, agile and aggressive in history.” He said that “contagions and deaths in China are falling because of the actions that have been taken.”
The winner of the crisis
The French company Novacyt, creator of the test to detect Covid-19, continues its explosion in the Paris Stock Exchange and its profits so far this year are close to 1,000 percent. In January, its shares closed at 0.167 euros each. Now, two months later, they exceed 2.12 euros.
The European Commission (EC) on Monday asked the countries of the European Union that any measures they take to contain the coronavirus, including possible border controls, be coordinated with their partners and proportional to the risk of the outbreak, while calling to avoid falling in panic
Help North Korea
The International Federation of Red Cross and Red Crescent Societies (IFRC) indicated that it obtained an exemption from the UN to bring medical supplies to North Korea against the risk of the coronavirus. The United Nations sanction against Piongyang will be lifted only to bring aid.
China decided on Monday to ban “completely” and immediately trade and consumption of wild animals, a practice that allegedly contributed to the spread of the new coronavirus. The measure was taken to effectively protect the health and life of the population in the country.
Filming in Venice of the movie Mission Impossible 7, the new installment of the saga starring Tom Cruise, was suspended due to the expansion of the coronavirus in Italy. All public and private events were also canceled and schools and museums will be closed until March 1.
BLOOMBERG, AFP AND EFE