Page 2 - Coronavirus Pandemic by Elias Amash

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a clear indicator of a looming recession that could come more quickly than many experts
feared.

On top of all that, oil prices plunged over 25% in New York and London. It immediately resulted
in dragging down stock markets in both Europe and Asia. In New York, for instance, stocks fell

more than 20% from their peak, putting the Dow in Bear Market territory.

The fear now captivating the world’s financial markets reflects recognition of this increasing

economic impact. The coronavirus, which had already disrupted many industries and trade

markets in China and across East Asia, is now causing trouble all across Europe. Furthermore,
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Japan’s economy shrank last quarter much more than initially predicted. It doesn’t come as a
surprise that Tokyo is struggling with another huge fiscal stimulus to bring the economy back to

life. Germany , is considering a multibillion-euro economic stimulus in order to offset the worst
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of the crisis, whereas France is experiencing a huge economy and supply chain hit as well. Italy
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has experienced a huge coronavirus shock and has shut down the entire country as fatalities
continue to rise, all but foreseeing another recession for them.

On the other hand, American companies have warned of the coronavirus’s impact on its

production facilities and supply chain. For instance, Coca Cola hasn’t been able to get artificial

sweeteners for its diet sodas due to its massively disrupted supply chain. Procter & Gamble,
which has some very popular brands as Pampers, Tide and Pepto-Bismol, has also said its 387
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suppliers from China have major challenges in resuming operations and supplying industries.

In addition, the automaker and electronic sectors are specifically hard hit. Apple has warned

investors about their supply-chain disruptions. They are particularly worried about a sudden

drop in customers in China, where all of its stores were closed for weeks – and it’s causing a

2 https://finance.yahoo.com/news/treasury-yields-plunge-record-lows-004348502.html
3 https://www.japantimes.co.jp/news/2020/03/09/business/economy-business/japan-gdp-recession/
4 https://www.bloomberg.com/news/articles/2020-03-09/germany-boosts-investments-to-bolster-economy-amid-
virus-fallout
5 https://www.bloomberg.com/news/articles/2020-03-09/france-economy-hit-by-virus-as-central-bank-slashes-
outlook
6 https://www.bbc.com/news/world-europe-51799956
7 https://www.forbes.com/sites/andriacheng/2020/02/20/chinas-coronavirus-outbreak-threatens-to-send-global-
supply-chain-into-a-tailspin-pg-alone-has-17600-items-that-could-be-affected/#b38a9bf156fa