The 2019-nCoV coronavirus outbreak, that has sickened 43,000 people and killed at least 1,018, according to the latest numbers from the World Health Organization, may be a smaller risk to Chinese manufacturing than feared, according to JPMorgan.
Ciara Linnane for MarketWatch:
Manufacturing facilities in Hubei are limited, they wrote. And the biggest industries, autos and health care, are not very time-sensitive, they wrote.
“In this regard (time sensitive and complex supply chain), the tech sector still needs to be monitored for idiosyncratic dislocations,” they wrote. “So far, gradual supply resumption seems on track. Some new products (like iPhone SE 2) may get delayed but existing products appear to have sufficient inventory. Thus, our analysts worry more about demand than supply.”
The potential damage to consumer sentiment is the key issue, they wrote. Until the current outbreak, data globally was good with only bond and commodity markets showing some skittishness.
MacDailyNews Take: Hopefully, JPMorgan is right and the risk of the coronavirus infection spreading is under control. As usual, the information we get out of China is murky.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
8200 American’s die of the Flu every year, China six times that, this Corona is new kid therefore more news is given for now…..