Forwarded from 📡Guardians of Hong Kong
Why the new coronavirus will hit the world economy harder than SARS
- Qualcomm’s exposure in 2003 was limited to $310 million in sales of chips and telecom products to China. That’s 48% of the San Diego firm’s total revenue, reflecting China’s spectacular rise as a global manufacturing power.
- China’s economy today is 8½ times larger than it was in 2003. Trade with the U.S. is nearly four times bigger.
- China’s large and growing middle class has made the country the biggest source of travelers and a voracious buyer of luxury brands.
- China today is the largest market for cars, cellphones, computers and many other goods. As Chinese consumers cut back, U.S. corporate profits could take a dive, which could hammer stocks and in turn weaken consumer spending.
- But global crude prices have sunk in recent days amid China’s expected pullback in oil demand, prompting Saudi Arabia to push for production cuts. Lower oil prices could weaken drilling activity and investments in the United States.
Full Article: LA Times (04-Feb)
https://lat.ms/2OYND7F
Further reading:
Coronavirus/China stocks: supply chain reaction
https://publielectoral.lat/s/guardiansofhongkong/17342
#Economy #WuhanPneumonia
- Qualcomm’s exposure in 2003 was limited to $310 million in sales of chips and telecom products to China. That’s 48% of the San Diego firm’s total revenue, reflecting China’s spectacular rise as a global manufacturing power.
- China’s economy today is 8½ times larger than it was in 2003. Trade with the U.S. is nearly four times bigger.
- China’s large and growing middle class has made the country the biggest source of travelers and a voracious buyer of luxury brands.
- China today is the largest market for cars, cellphones, computers and many other goods. As Chinese consumers cut back, U.S. corporate profits could take a dive, which could hammer stocks and in turn weaken consumer spending.
- But global crude prices have sunk in recent days amid China’s expected pullback in oil demand, prompting Saudi Arabia to push for production cuts. Lower oil prices could weaken drilling activity and investments in the United States.
Full Article: LA Times (04-Feb)
https://lat.ms/2OYND7F
Further reading:
Coronavirus/China stocks: supply chain reaction
https://publielectoral.lat/s/guardiansofhongkong/17342
#Economy #WuhanPneumonia
Los Angeles Times
Why the new coronavirus will hit the world economy harder than SARS
Whatever the economic loss may be from the coronavirus, the hit to the world will be harder than what was felt from SARS because China’s role in the global economy is greater.