Coronavirus update: 213 deaths vs 130 yesterday. More than 12,000 suspected cases. 1,476 in serious or critical condition. ALL regions of China are reporting cases

Below information is what is driving Stocks Lower, The disruption of Business

Fourteen provinces and cities have said businesses need not start operations until at least the second week of February. They accounted for almost 69% of China’s gross domestic product in 2019, according to Bloomberg calculations. (BBG)

BBG: At Least Two-Thirds of China Economy to Stay Shut Next Week
The longer holiday is also likely to be disruptive for China’s trade, hitting both exports & imports. The 14 provinces included in the extended holiday were the source of 78% of China’s exports in December last year, according to BBG calculations. All the key eastern manufacturing provinces have extended the holiday: – Guangdong, home to the tech city of Shenzhen – Shanghai, home to China’s largest port & a new Tesla plant – Jiangsu, where Nike shoes are made – Henan, which has a large Foxconn plant making iPhones.(BBG=Bloomberg)

Chicago-based United said it would implement a second phase of flight cancellations between its hub cities in the United States and Beijing, Hong Kong and Shanghai, resulting in 332 additional roundtrips being called off through March 28. The cancellations will reduce the carrier’s daily departures for mainland China and Hong Kong to four daily departures from 12. (Reuters)

Chinese Economy being shut down for an additional week obviously not good For Global GDP .The magnitude of Impact is Unknown but as Markets like to so fear the Worse and trade accordingly. The flood of Chines tourists whom normally shop, Vist and spend money while vacationing is another dent to global GDP. Be on the Lookout for Casino, Hotel and high end retailer’s revenue warnings .Per BBG “the number of mainland Chinese going abroad rose 50% since 2014”

Amazon Earnings blew it out of water Stock +12%, Valued at over $1 trillion again stock +$200 pre cash open as one day delivery and new prime members drove the surge in earnings.

A touch of Risk Off in markets again Core PCE in Line which is a positive sign after yesterday’s Disappointing Quarterly PCE, Chicago PMI at 8:42 and Final Look at Michigan Confidence at 9:00 the Feds Vice Chair Clarida will be on Bloomberg TV at11:00 and it appears that Senate will vote as early as Tomorrow to acquit president trump .Iowa Caucus on Monday might cause a big of Angst of Bernie is clear winner. China PMi data released last night but no one cares as next months and subsequent months are what will be important

Copper down for 12 consecutive days a new record in futuility,Oil trying to stave A total collapse as OPEC threatening to call an emergency meeting,30 year yields threatened a break of 2% but failed,3m 10 year spread still negative

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.