Coronavirus impact on economy going to get worse as per experts
The worries have grown that the impact on the economy of the novel coronavirus outbreak is going to get worse than the expectations and also that the markets have been very complacent in the factoring in of risks.
The number of cases which have been confirmed have been outpacing the expectations and even these said reports are being viewed through the lenses of suspicion that the government of China has not been reporting the accurate figures.
The stock indexes of United States have been continuously hitting their record highs and there is a recoup in the losses which have followed the headlines of coronavirus initially.
Out of the 364 companies which held the calls of earnings in the Quarter 4, 138 had cited coronavirus in a call and about one fourth quarter of the ones included a bit of impact from coronavirus or the modified guidance because of the virus as per the reports.
Apple had been the latest on Monday which had said that it is not going to meet the quarterly expectations of revenue because of the limited production of iPhone and the demand in China.
This is going to end eventually in a bad manner. The experts feel that what is going on is absolutely crazy and cognitive dissonance in the market of credit has been stunning.
Chinese ramp up is going to take a lot longer than a lot of the expectations for the need of preventing a secondary flaring up in the contagion.
As per most of the estimates, if Chinese extend their new year by the two weeks it is going to not have a meaningful impact about the supply chain globally.