Coronavirus — A Detailed Report on Causes and Impacts on Major Economies, Aviation and E-Commerce
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First identified in the 1960s, the coronavirus, spreading through general contact from person to person has today become a well-renowned virus in the news headlines. Killing at least 56 people in total, 3 cases of coronavirus are detected from the united states which prove that the virus is not only confined to Asia but is spreading to other parts of the globe at a rapid pace. the virus has sickened more than 1800 people in China.
HOW IT ALL STARTED?
In 2002, Coronavirus emerged as SARS coronavirus or(severe acute respiratory syndrome) which caused serious severe respiratory diseases among people who had many symptoms like fever, cough, muscle pain and difficulty in breathing. Another coronavirus was discovered in the Middle East in 2012 erupting from Saudi Arabia and then spreading to other parts of the world including France, Germany, and Jordan, which eventually killed around two-thirds of people.
China celebrates its lunar new year on the 25th of December. this is when a huge number of tourists come here to celebrate the new year. Wuhan is the transport hub of china which is preferred by a lot of tourists and especially the seafood market of this city is well known, and until now the reason behind the outbreak of coronavirus this time is this seafood market itself, the market where anyone can get any kind of animal, including bats, the same mammals which were one of the main reason of transmission of this disease.
HOW TO STAY AWAY FROM THIS VIRUS?
Amidst the fear of this deadly disease spreading at a fast pace, everyone wants to know the prevention of this disease, but sadly there is no vaccination for coronavirus.
The only way to prevent oneself from this virus is to follow some basic rules of hygiene which may include keeping your hands clean with a hand sanitizer. as this virus spreads from person to person, anyone diagnosed must be isolated from other people and no form of contact should be made with that person.
It can even spread by the objects which are even touched by the patient. So it should be ensured to evacuate any environment where there is any sign of this virus.
SYMPTOMS
Symptoms of coronavirus include runny nose, headache, cough, sore throat, fever, and a general feeling of sickness, it may also cause pneumonia and bronchitis in the lower respiratory tract. People can die from the coronavirus when they develop complications like respiratory failure or hypoxia (a condition where your body doesn’t get enough oxygen) secondary to pneumonia Some people have had myocarditis, which is inflammation of the heart. The very young, and the elderly are the most at risk of serious complications of coronavirus.
EFFECT ON ECONOMY
The coronavirus has affected the Asian economy on a large basis. almost all the major Asian markets fall after the fear of the coronavirus gripping the nations. even the European markets are under the pressure due to this fast-spreading virus. the most affected economies are China’s neighbors. India’s seafood export to china has been hit badly as restrictions have been imposed on such goods. Crab exports from India have been affected badly. Thailand’s stock market tumbled on the prospect of economic turbulence after China banned outbound group tours. the tourism industry of the neighboring countries has also been affected. The airport and tourism-related stocks of Thailand declined the most.
Crop futures traded in Chicago sank after the reports of the virus spreading gained momentum. Soybean and corn imports were also declined in Chicago, which is the largest importer of these goods.
Oil prices have also declined on the outbreak of the coronavirus which in turn is beneficial for India which imports 80% of oil for consumption, it, in turn, will also ease pressure on the rupee as fewer rupees will be required to buy the oil.
Chinese shares were worst hit after the Shanghai composite index fell 2.75% to 2976.53 points.
A Chinese economic slowdown would hurt the earnings of Japanese companies, and concern among investors would result in downward pressure on stock prices.
“Risks will grow for such stocks as retailers that have been propped up by inbound tourism demand,” said Yoshinori Shigemi at JPMorgan Asset Management.
The yen rose to 108.73 per dollar, its strongest level since Jan. 8, before paring gains slightly to trade up 0.3% at 108.95, Reuters reported, while the yield on the benchmark 10-year U.S. bond dropped to a 3–1/2-month trough of 1.627%.
Mini futures on the S & P 500 index also dropped by around 1%, after the benchmark stock market index on Friday suffered its sharpest drop in three months.
Affect of Coronavirus in the Aviation Industry
The CDC(Centers for Disease Control and Prevention) is conducting public health screenings at five U.S. airports: San Francisco, New York Kennedy, Los Angeles, Chicago O’ Hare, and Atlanta. CDC officials said they are evaluating continued screening in light of the travel restrictions imposed by China. About 2,000 people have been screened at the airports and only one sent for further testing, CDC said. Neither of the two people with confirmed cases of the coronavirus had symptoms while they were traveling.
Other countries also are taking action. Singapore has implemented temperature screening for all passengers arriving from China. Taiwan’s EVA Air is requiring crew members on all its flights to China, Hong Kong, and Macau to wear sanitary masks and to use gloves when they collect food trays from passengers
A spokesperson for Airlines for America, a U.S. airline trade association, said it is closely monitoring developments but that U.S. carrier operations have not been impacted so far. The International Air Transport Association also said it is monitoring developments and both are looking to CDC and the World Health Organization for guidance.
The WHO has convened its emergency committee but has not yet declared a “public health emergency of international concern,” which could then trigger a coordinated international response.
The CDC is recommending that travelers avoid all nonessential travel to Wuhan, but otherwise is urging travelers to other parts of China to practice usual precautions, such as avoiding contact with sick people, avoiding animals and animal markets and washing hands with soap and water for at least 20 seconds.
During a press briefing, CDC officials said it was too early to say how the coronavirus compares with the deadly Severe Acute Respiratory Syndrome (SARS), which killed 774 and sickened nearly 8,100 in its 2003 outbreak.
SARS had a significant impact on international aviation. At the height of the outbreak, Asia Pacific airline traffic fell 35% from pre-crisis levels, according to IATA data, and took months to recover. Overall, airlines in the region lost 8% of their annual traffic and $6 billion in revenues.
“The experience of SARS demonstrates that a loss of confidence and uncertainty can lead to a chain reaction in key sectors, such as travel and tourism, which would impose heavy economic damage,” IATA said in 2006.
Effect of coronavirus on E-commerce and Amazon
As a result of this exponential uptick on e-commerce business, Wuhan’s new coronavirus outbreak — which has killed a total of 25 people so far — could have a positive impact on online consumer spending and companies like Amazon if the virus doesn’t spook people into storing their cash.
“The direct effect of coronavirus on Amazon’s sales is likely positive to the extent shoppers stay at home rather than frequent brick-and-mortar businesses,” Kerry Murdock, editor, and publisher of online e-commerce magazine Practical Ecommerce told FOX Business. “Indirectly, coronavirus could negatively impact all businesses — Amazon included — to the extent [the virus] spooks consumers, prompting them to hang on to their money,”
“A disruption in the availability of China-manufactured goods could eventually impact Amazon if resellers and direct-to-consumer manufacturers cannot obtain the inventory,” Murdock added. “Amazon’s sales in China are small and immaterial to the company’s overall top- and bottom-line results.”
Amazon and other e-commerce giants have already experienced a significant uptick in mask and thermometer sales. Online retailers such as Taobao, Suning, and JD.com promised not to let merchants raise the prices of these in-demand products while people are in need. Alibaba said it would subsidize mask products to ensure customers can buy them “at reasonable prices,” the South China Morning Post reported.
UBS Global Wealth Management Chief Economist Donovan said in his Thursday economic briefing that social media, however, could scare the public about the scope of the virus and therefore hurt sales.
“Compared to 17 years ago, online spending is more significant,” Donovan said. “That reduces the economic impact of the virus. However, most economic damage from a virus comes from fear. Social media is far more widespread today. We know that social media spreads fake news farther and faster than it spreads the truth.”
