Bitcoin has seen one of its worst day in a direct response to Italy announcing a lockdown of Milan and Venice.
Oil has crashed, down 50% this year and down today to near all time low since 2007.
This incredible plunge due to mass cancellation of flights and events poses considerable economic risks to oil exporting countries.
That might affect foreign exchange markets, where volatility could increase and for some countries perhaps considerably.
CNY initially opened at 6.9 to the dollar, up quite a bit from near 7 at the start of the month, now trading at circa 6.95 CNY to one USD.
They claim there the situation has stabilized and so people should be getting on as normal, but they’ve infected the whole world at this point, and allowed their people to infect the whole world for at least two months from December 8th or so to mid February.
Now beautiful Milan can’t go to gym while FTSE Mib, their stock index, has crashed in this Black Monday.
Exchanges might now be faced with tough decisions on whether to suspend trading until the situation becomes a bit clearer and normalizes.
Not least because there is a fog on information primarily due to secretive China covering up and censoring.
The statistics moreover that keep being repeated in the media are often too general as they do not differentiate between how many have been hospitalized, how old are those that departed, whether the Chinese corona was the primary cause or something else, and so on.
Nor is it clear what cost and benefit analysis has been undertaken in regards to the effects of cancelling all these things might have on the fit and young, compared to the effects of corona on seemingly primarily only the very old.
The strongest argument being made is that the health system might not be able to cope, hence the very old so affecting everyone else who might need a bed.
This has just began globally, cases double every 4 days. All are considering it as a pandemic, because it is, so all cure related research resources are probably now focused on trying to find a cure for this.
There are rumors of potential cures, but this is a virus so medicine doesn’t know how to properly cure them yet. Meaning more mitigation.
March is usually the coldest month in UK so it might laggingly follow Italy perhaps, although it is very rainy in London, which maybe cleans surfaces more quickly and so perhaps contains the spread a bit better.
In Milan and other red zone areas life is kind of going on as normal. School is out, with kinds being taught through livestreams. People are generally going to work, but those who have to go in and out of the zone for work are now taking days off.
This ‘holiday’ is being covered by employers, at least for some, with billions so lost in productivity.
What financial assistance the indebted governments of the world might provide is not clear, nor is it clear how much China might pay up for infecting the world.
What is clear however is that trading in financial markets maybe has to close for two, perhaps three weeks, not least to take out any financial incentive to fear monger.
Bitcoin’s trading can’t be closed as there are thousands of crypto exchanges, some run by kids in their basement.
You’d expect bitcoin to rise however in anticipation of more money printing, but some of bitcoin’s demand comes from international trade and that is being restricted in some places.