Coronavirus spread hits American companies, stock market

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WASHINGTON - The United States economy braced for what could be the weakest global growth since the financial crisis, as the stock market continued to take a beating on Thursday (Feb 27) and companies warned that disrupted supply chains and dampened consumer demand could squeeze profits.. Read more at straitstimes.com.

WASHINGTON - The United States economy braced for what could be the weakest global growth since the financial crisis, as the stock market continued to take a beating on Thursday and companies warned that disrupted supply chains and dampened consumer demand could squeeze profits.

"The weakness in the global economy left little buffer against a major shock. Unfortunately the Covid-19 outbreak is turning out to be that shock," wrote Mr Bhave. The market bloodbath came a day after former Federal Reserve chair Janet Yellen said the spread of the coronavirus could drive the US toward a recession, depending on how it affected Europe.

Meanwhile, the disruptions in global supply chains caused by workers in China continuing to stay home have rippled outwards.There would also be temporary iPhone supply shortages, it said, because manufacturing sites in China were ramping up more slowly than expected. The Walt Disney Company has said that its operating income could dip by US$175 million this quarter if its Shanghai and Hong Kong theme parks stay closed for months.

 

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