It was not at all unexpected to see a turnaround in perspectives regarding the situation of the coronavirus epidemic, because from the beginning of the crisis it was clear that the Chinese authorities were far behind the evolution of the crisis, hence the measures they have taken have been unique in the history of the humanity. The fact that the number of infected cases soared in about 15,000 in a single day and with more than 250 fatalities, almost all reported in the province of Hubei, which is at the epicentre of the epidemic, derives from a methodological change in the assessment and classification of incidents .
But despite this dramatic rise, the fact is that many investors were already waiting for the unofficial reports circulating in various information agencies, hence the market reaction yesterday was more cautious due to uncertainty about whether there will be new reassessments that will raise the scenario to a much more serious level, as well as the unpredictability of economic impact of the epidemic.
This impact will certainly continue to be dominant in the second economy in the world, not only the services sector being severely damaged, but also in the remaining major economies in the world the harmful effects will be felt, which could be the last straw that will overflow the glass of the recession in Europe. This is not just due to the decrease of exports from the main companies to China, the reduction of products imported from the Asian country for later manufacture of others or direct sale, also in the services sector, the case of the recent cancellation of the important event in Barcelona of the mobile communications industry, the Mobile World Congress, which is the showcase of the main companies in the sector, represents almost 500 million euros in revenue and 14,100 part-time jobs for the city.
Photo by Jose Llamas.
