We’ve got our usual Friday weekly roundup of global payments news. The theme this week is COVID-19 and it’s growing impact on business evident in the lineup of stories below. First, the markets were in absolute pandemic pandemonium with no other apparent trigger for a massive market correction than what some analysts say was several years overdue. The losses are staggering, and investors may need the services of both doctors and psychiatrists.
Several US states including hardest-hit Washington state, California and New York have jumped into the gap between the inaction and ineffectiveness of the Trump administration’s response to coronavirus planning, testing, and crisis management. Denial is not a strategy. The result is gatherings large groups of people and events are postponed and the scale is beginning to make Americans nervous. These and other states have taken over their own testing rather than wait for long-promised testing kits from the CDC as confirmed US cases and deaths rise.
US politicians have not been personally immune to the coronavirus either, particularly with the US big-crowd political rallies and fundraising events in high gear. Sen Ted Cruz, Congressman Matt Gaetz, Rep Paul Gosar of Arizona, Georgia Rep Doug Collins and numerous other high-ranking GOP officials went from denial to self-quarantine quickly after exposure at the annual CPAC convention. Gaetz wore a gas mask as a publicity stunt and statement on coronavirus last week which now has backfired in addition to showing obvious poor judgment and taste. Tours in the US Capitol in Washington, DC are now canceled.
Canadian Prime Minister Justin Trudeau self-quarantined after his wife came back from a UK speech with flu symptoms. At least one Brazilian government official who attended meetings with Trump at Mara Lago returned home and was diagnosed with the virus. Sen Lindsey Graham who also attended has self-quarantined. Meanwhile, President Trump and some White House officials say they have no plans to be tested. This clown show is spiraling out of control.
Dozens of other international political leaders have been diagnosed with the virus in the UK, Italy, France, other European countries, Iran, Iraq and a long list of others. To the chagrin of European leaders, Trump implemented US travel bans to Europe without consultation or a clear rationale with some EU leaders pointing out that Trump golf resorts were not included in travel bans from the US. Trump announced his “plan” several days before leaving officials scrambling on how to implement it by Friday.
Sports fans are also victims as many now face the prospect of layoffs, income loss or work from home with few of their favorite sports to watch. Cancellations or suspensions include the NBA, Major League Baseball spring training and season openers, and National Hockey League seasons, a 30-day postponement of MLS soccer, NCAA basketball finals, The jobs and economic impact extend through the teams and into the entire broadcasting and advertising world.
The tourism industry has also taken a huge hit as tourists and business travelers canceled travel plans. The cruiseship industry, hotels, resorts, airlines, and the conference and events business are the hardest hit.
The good news is the incidence of new cases seems to have leveled off in China. The bad news is the US doesn’t really know what it’s faced with yet because of poor planning and lack of testing. This list of stories and business impact of coronavirus could go on for hundreds of pages but following are key highlights of big concern to business leaders.
Stocks plunge despite the Fed’s $1.5 trillion offer to banks
Trading was turbulent, with a brief rebound after the Federal Reserve offered at least $1.5 trillion worth of loans to banks to help keep the financial markets working smoothly. But the downdraft gathered pace again by midafternoon. The S&P 500 fell about 9.5 percent, its biggest daily drop since the crash in 1987 that came to be known as Black Monday. Stocks in the United States are now firmly in a bear market, meaning they have fallen at least 20% from the most recent peak. Read more…
COVID-19: Implications for business [McKinsey]
The coronavirus outbreak is first and foremost a human tragedy, affecting hundreds of thousands of people. It is also having a growing impact on the global economy. This article is intended to provide business leaders with a perspective on the evolving situation and implications for their companies. This is a big picture must-read. Read more…
COVID-19: The politics of pandemics [The Economist]
To see what is to come look to Lombardy, the affluent Italian region at the heart of the COVID-19 outbreak in Europe. Its hospitals provide world-class health care. Until last week they thought they would cope with the disease—then waves of people began turning up with pneumonia. Having run out of ventilators and oxygen, exhausted staff at some hospitals are being forced to leave untreated patients to die. Read more…
‘Mortgage holiday’? Borrowers in Italy, UK may get a break from payments, and Canada could follow
Some US cities are protecting renters with eviction bans during the outbreak. In Italy, where the entire population of 65 million has been under lockdown since early this week, the country’s finance minister has announced a policy that has earned some attention: Mortgage payments ― as well as other loan repayments for individuals and households ― will be suspended during the crisis. Detail, such as how long the holiday will last, or how lenders will be compensated, haven’t been worked out yet. Read more…
How the coronavirus is affecting online retailers 47% of retailers expect some downside in revenue due to the coronavirus, according to a survey conducted in March 2020 of 304 retailers by Digital Commerce 360. 33% of retailers say it’s too early to tell. However, a majority of retailers, 58%, say the virus will impact consumer confidence, and 22% say there will be a significant impact. Consumer confidence is often used as a measure of how consumers feel about the economy.
Travel and tourism industry revenue in selected countries in 2019 and projected impact of the coronavirus (COVID-19) pandemic in 2020
According to the Mobility Market Outlook on COVID-19, the revenue for the travel and tourism industry in China will be the most affected by the pandemic, decreasing from $117.8 billion in 2019 to about $70.5 billion in 2020. Read more…
New York will ban most gatherings of more than 500 people, including at Broadway shows New York will ban most gatherings of more than 500 people, including at Broadway shows, and restrict smaller groups, Gov. Andrew M. Cuomo announced on Thursday. The restrictions, intended to slow a growing outbreak in the state, are expected to have a profound impact on the city’s cultural institutions, including theater, a multibillion-dollar industry at the heart of New York’s tourist trade. Read more…
Coronavirus: Countries enforce mass closures to stem spread
France is one of the latest European countries to close all schools, universities, and nurseries. President Emmanuel Macron described the outbreak as France’s most serious health crisis for a century. More than 125,000 people have been diagnosed with Covid-19 in 118 countries around the world, according to the World Health Organization. The total number of deaths is more than 4,600. Read more…
Coronavirus is pushing US consumers to contactless payments
Contactless cards are a potential refuge for consumers who fear plastic and cash are carrying COVID-19. The coronavirus, also known as COVID-19, has drawn attention to the safety and cleanliness of basic activities that many take for granted, such as air travel, being in enclosed places, or how transactions happen at stores. China and South Korea are reportedly burning or sanitizing banknotes, and new research suggests U.S. consumers are becoming more interested in contactless payments. Read more…
COVID-19 Concerns may boost e-commerce as consumers avoid stores
New research shows that the degree to which they have done so depends on the severity of the outbreak in each country. According to a March 2020 YouGov survey, 85% of internet users in China and 83% of those in Hong Kong said they had avoided crowded public places in the past two weeks. Just more than a quarter (27%) of those in the US and 14% in the UK said the same. Read more…
Starbucks will offer ‘Catastrophe Pay’ to baristas affected by coronavirus
Starbucks announced that it will provide “catastrophe pay” to baristas in the U.S who have been exposed to the coronavirus, CNBC reported. The coffee chain will pay employees for up to 14 days if they have tested positive for coronavirus or are exposed to or in close contact with someone who has coronavirus. Read more…
How the coronavirus outbreak is roiling the film and entertainment industries
Most recently, Disney closed all of its theme parks, Broadway shows shut down, and the releases of Mulan and The New Mutants were delayed. The immense and lucrative Chinese film industry was hit almost immediately as movie theaters across the country were closed and major releases were delayed. Hollywood soon began to feel the effects too, and as time passes, the impact of the coronavirus on the global film and entertainment industries will certainly grow. Read more…
Disney World and Disneyland are closing amid Covid-19 fears
All Disney parks across the globe will be shut down as of Monday, March 16. the operators of the world’s largest theme parks announced that California’s Disneyland would close for only the fourth time since it opened in 1955; the park will be shuttered March 14 through the end of the month. A few hours later, The Walt Disney Company confirmed it would be also closing Walt Disney World Resort in Florida and Disneyland Paris for the rest of the month starting Monday, March 16th, marking the first time in history all six Disney theme park resorts would be closed simultaneously. Read more…
The most ridiculous ways companies are trying to profit from the coronavirus outbreak
From anti-spitting hats to doctor robots, new business opportunities are abundant and weird. sellers of some lesser-known products also seem to view the coronavirus as a unique business opportunity. These companies are pushing the idea that gadgets like air purifiers, robots, and even spit-shielding hats could be helpful in combating the virus. While some of these vendors are actively promoting the link between their products and Covid-19, the disease caused by the coronavirus, other companies say consumers are making the connection themselves and seeking out their products. Read more…
Coronavirus: Life inside the China lockdown
Two young local Chinese filmmakers have been recording life inside Wuhan, the epicenter of the coronavirus outbreak, for over 50 days since the city went under lockdown in January. It’s startling viewing and provides a context you’re certainly not seeing yet in the US and maybe a sign of things to come. That’s the value of reading widely to stay informed. Read more…
Live coronavirus map used to spread malware
Cybercriminals constantly latch on to news items that captivate the public’s attention, but usually, they do so by sensationalizing the topic or spreading misinformation about it. Recently, however, cybercrooks have started disseminating real-time, accurate information about global infection rates tied to the Coronavirus/COVID-19 pandemic in a bid to infect computers with malicious software. Read more…
Opinion | You Can’t Gaslight a Virus
President Trump’s usual political tricks won’t work now. “Three years after taking the oath of office, President Trump has made more than 16,200 false or misleading claims — a milestone that would have been unthinkable when we first created the Fact Checker’s database that analyzes, categorizes and tracks every suspect statement he has uttered.” Read more…
Google News Alerts: the Coronavirus / COVID-19 Edition
Research Buzz has an excellent set of Google News search tips to help
businesses find the news that’s relevant despite the overwhelm. I want to find those resources and
when relevant include them in ResearchBuzz, but needless to say my current
Google Alerts are not up to the task. I thought you might find it interesting
to see how I put together a new set of Google Alerts to help keep informed
during this – the word “crisis” seems inadequate. With so many things
converging at once, I think I’ll use “whirlwind of WTF” instead. Read
more…
Take care of your employees and customers during this pandemic and keep your lines of communication open with all your important stakeholders.
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