Wealthy Europe has been given a tax cut by oil markets as its price plunges, down from $70 at the opening of the year to now $45 with futures even lower.
Kuwait suspended trading in premier market as their Index dropped by 10% amid flights cancellations and travel bans.
While Saudi Aramco has lost some $500 billion in market cap from all time high in December, making that a 25% drop for the company that effectively runs Saudi Arabia.
Italy has taken the unprecedented step of locking down Milan, one of the wealthiest city in the world.
Some 15 million Italians in the rich north region are now in the red or orange zone, where numerous restrictive measures have been taken, including the closure of gyms.
42,000 people have been tested in Italy with nearly 6,000 infected while circa 570 are in hospital.
This is about three months after the outbreak in China, where they’re now trying to go back to normality as if nothing, strengthening CNY slightly, while the rest wonder just what on earth happened there and where are the impartial reports on what effect their drastic measures had considering a study estimated it would infect as many as it did even without any measures.
In Italy the situation is ongoin so not quite time for enquiries, but this is now clearly a very political matter that raises considerable questions, especially in regards to just what on earth happened in China.
They were at fever pitch just a couple of weeks ago and now they censor even the word corona, in addition to silencing the 8 doctors that blew the whistle back when this could have actually been contained.
Now, this is flue that has been spreading for three months. Measures maybe can slow it down and for anyone over 60, especially 70+, fully staying indoor for the next 2-3 weeks would probably be sensible.
But it has spread already so the ultimate measure hopefully will be the weather as spring now begins to greet the west.
Where the economy is concerned this hopefully is all just temporary so once it clears, the pent up demand maybe cancels off the dip.
Shanghai stocks strongly bounced after new infections began leveling off, so that might repeat in the west too.
For now however bitcoin and other cryptos are down 10% as markets are taken by surprise, but there is no curfew in Milan. Caffes are still open. The Milanese are going about as relatively normal.
What happens in America is another question. Trump media is already blaming Democrats for making a big deal out of this in order to oust el presidente.
Biden probably has a good chance of doing that himself without much help, but New York has declared a state of emergency.
Full lockdowns are probably unlikely in US because at this point you’d have to lock down the whole country as this has been spreading for months.
China’s lockdown of Wuhan still has managed to infect the entire world, so they haven’t contained anything except for the whistleblowing doctors.
The World Health Organization also needs to answer for its shambolic handling of this, to the point somehow they made a mistake of saying the risk was mild to the world while apparently they meant high.
They still haven’t declared a pandemic, leading plenty to think this organization should be declared as useless because if the rest locked down China as soon as they locked down Wuhan, it might have slowed the spread to the point spring might have fully contained it in China.
Now that it has spread everywhere, however, this might become part of the seasonal flue as it probably can’t be contained at this stage except for hopefully by spring.