INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Coronavirus has infected more than 43,000 people globally, the latest data from global health authorities showed.
Out of them,
42,638 are confirmed cases in mainland China, with the toll surpassing 1,000 deaths.
Could it spread too fast so that it can be called a
So far, WHO says it is not.
Pandemic is the spread of a disease across a large region while epidemic is widespread occurrence of a disease
in a particular region.
When the new virus came to light, investors were not too sure how it would hit financial markets
But now things are getting clearer.
S-P Global Ratings has cut China's 2020 growth forecast to 5 per cent from 5.7 per cent
The brokerage said nine out of the top 10 countries in Asia are vulnerable to the virus and they include India
Hong Kong, Singapore, Taiwan, Japan, South Korea, Thailand, Malaysia and the Philippines.
China has allocated more than $10 billion to
Many China provinces have shut businesses for weeks now and it is not certain whether they will re-open anytime soon.
The virus outbreak
made RBI Governor Shaktikanta Das take note and suggest the need for a contingency plan to deal with the unfolding situation
of SAMCO Securities.
If the global environment remains weak, commodity prices would fall, as is the case with the 20 per cent drop in crude
oil prices, which should benefit India
But India is not immune to a global slowdown
the Wuhan virus Coronavirus and SARS in 2003 have led many investors to question the extent of the impact on India
At this early stage, we only see a negligible economic impact, but India is not immune
India's tourism contributed only 1 per cent of GDP in FY19
But, China is India's third-largest goods export partner ($17 billion; 5 per cent share in India's exports)
Any likely slowdown in growth in affected Chinese cities could result in a further drag on raw material demand from India and thus could
equity markets sell off, though how far they fall may be highly dependent on how stretched their valuations had previously been, so US
markets may be more exposed here than some in Europe or Asia
In general, we would expect EM currencies to underperform those of the DM universe, which may hinder the ability of local central banks to
So far, UBS has cut its global GDP forecast for March quarter to 0.7 per cent from 3.2 per cent in December quarter
