The forbidden city is closed, oil falls: coronavirus strikes on the economy

the Ministry of Finance of China will allocate $ 145 million to fight the epidemic of pneumonia caused by a coronavirus 2019-nCoV. The number of cases has exceeded 800 people. In the US the pharmaceutical company announced the development of vaccines and test-systems for detection of coronavirus, their shares have grown.

More than 800 infected, dozens of deaths, closed cities and quarantine in China: pneumonia caused by a new type of coronavirus is spreading around the world.

First, the court declared Asian countries: Vietnam, Singapore, India, South Korea, Thailand, Japan. Now the virus has even reached the United States. The disease is transmitted from person to person, and among those infected there are and the doctors. But that’s not all.

the Chinese virus was also struck by the world’s stock exchanges and even penetrated to the top of the Forbes list. U.S. investment Bank Goldman Sachs warned that the expansion of the outbreaks before the epidemic can adversely affect the oil market and dropping quotes 3 percent.

the Experts thought the situation to 2003, when the world is also from China has spread the SARS virus. Dynamics of prices on energy resources of the period: the failure at the time of the spread of the disease and initiation of growth after the announcement that the virus will soon be defeated.

Data from the oil market on January 24. With the beginning of the year, Brent is losing value. And some experts just the same it is associated with reports of coronavirus.

“Outbreak of the virus occurs at an inconvenient period, a significant impact can be in the Chinese retail, the tourism business,” they predict.

Experts at Goldman Sachs believe that the consumption of petroleum products may be reduced by 260 thousand barrels per day. The bulk of this decline is reducing demand for jet fuel due to the fall in tourist activity during the epidemic. Moreover, now in China New year, and people are actively traveling around the country

these fears greatly subsided shares of Chinese airlines. And in General, exchange of the PRC closed with a significant disadvantage before the holidays. The key indices lost up to four percent.

“China is now approaching the celebration of the New year. This is the end of the reporting period. It was a historic event — the fall of the exchange, this is the worst close in history. Big players prefer to fix profit” — analysts have noted the exchange.

against this background, in the red zone traded American and European exchanges. Losses can incur not only Chinese airlines but also international companies.

for Example, the largest producers of goods of a class Lux. China is one of their key markets. In the New year and the holidays sales are growing, but these days not many gifts. Therefore, stocks of companies Louis Vuitton, Richmond, Estee Lauder, Burberry significant disadvantage.

And the Frenchman Bernard Arnault, the owner of a giant Louis Vuitton, lost their status as the richest man in the world. On the background of stock market shake-up, his condition became cheaper by $ 3.5 billion.

Losses in the event of a midst of the epidemic may incur and tourism sector, including Russian firms. China is a pretty popular destination for Russians. According to the results of incomplete 2019, the country was visited by nearly 2 million of our compatriots. And the vast majority — namely for tourism purposes. Now in China, some cities are under quarantine, and the famous Museum — the Forbidden city in Beijing is also temporarily stopped its work

the CPS released a report which recommended that the Russians to refrain from trips to China. But in the meantime, say the representatives of the tourism industry, to cancel a pre-paid rounds until no hurry.

“Our tourists mainly visit the island of Hainan. He is far away from mainland China. Bounce from tours there, as there is no evidence of an epidemic on this island,” — emphasizes the Vice-President of the Association of tour operators of Russia Dmitry Gorin.

But in the advantage of pharmacists. Already several American companies have announced that they will develop a vaccine against the new coronavirus. They plan to conduct the first clinical trials in mid-may. Their shares soared up. However, not only can they benefit from the emergence of a new virus, plus the whole pharmaceutical industry.

“Previous experience with the virus, who also came to Asia, as statistics show, gave a leap in the sales of medical masks. And earn”, — said General Director of “ODAS Pharma” Robert Jones.

meanwhile, Russia on the threat of the epidemic reacted quickly: the Ministry of health reported that a rapid test for detection of coronavirus will be ready in February. And at the same day Rospotrebnazor said that the diagnostic tool has been developed. Medzdrav also started work on a vaccine. It is not excluded that Russia will do it first — so it was with a vaccine against Ebola in 2016.