How companies are responding to China virus impact

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Fast-food giant McDonald's has closed all of its 'several hundred' restaurants in Hubei province. FMTNews China

People snapping up face masks and other personal hygiene items in Hong Kong.

Paris department stores, a de rigueur stop for Chinese tour groups, are unusually quiet. So are casinos in Macau.MSC Cruises, Costa Cruises and Royal Caribbean have cancelled stops by their ships in China. Club Med has closed six of its holiday villages in China, keeping open only its Sanya resort on Hainan island.

The move could affect global supply chains for tech companies that rely on Foxconn to manufacture everything from Apple’s iPhones to flat-screen TVs and laptops. Electric pioneer Tesla, which has just started rolling out cars from a giant new factory in Shanghai, says the virus could delay a planned acceleration of production there, and potentially affect earnings this quarter.Mainland China is the second-biggest market of US coffee chain Starbucks, with more than 4,000 outlets. Half of them have been closed by the outbreak.

China is an important market for heavy-equipment maker Caterpillar, which has already suffered from the Sino-US trade war.

 

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