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Coronavirus & The Global Economy


Virus COVID-19, known as the coronavirus, is todays new epidemic that has surpassed 90,000 cases with more than 3,000 deaths, and now has spread to 84 countries as of March 5th. As the coronavirus worsens, so does the economy. Due to the fear of getting the virus, consumers are choosing to avoid activities such as going shopping or eating out. With the significant decrease in travel and tourism is it expected that it will definitely effect the United States economy. With March Madness coming up and music festivals such as Coachella and Ultra, many companies are looking at an extreme loss of money. The stocks remain inconsistent all week and many are questioning: Is the United States heading towards a recession?

" Wait like the drink"?  

Is the coronavirus good or bad for famous beer brand Corona sales? A survey conveyed by 5W Public Relations argued wether not the coronavirus would be a PR disaster for the popular beer brand. Results of the survey stated that 38% of Americans who actively drink beer with not, under any circumstance, buy Corona. While 16% of Americans are confused about wether or not the virus is related to the beer. This virus couldn't have come at a worse time for the brand as they get ready to launch their new Corona branded hard seltzers. 

Constellation Brands, who owns Corona, released a statement that puts these rumors to rest. In fact, the company claims that sales have increased 5% in the past four weeks. 
According to Tom and David Gardner, founders of The Motley Fool, Constellation Brands is one of the best stocks for investors to buy right now. 

Speaking of Stocks...

This past week, the first week in March, the Dow Jones Industrial percentage has fallen at 6.59% and on Tuesday faced the worst two-day percentage drop in two-years. It has been a roller coaster of a week for the stock market, which has concerned many investors.

On the same day, March 5th, Trump warns the U.S. that if he doesn't win the reelection that the U.S. the stock market will crash. Trump stated "if I don't win, you're going to see a crash like you've never seen before."

Airlines Hit Hard

According to the International Air Transport Association, global airlines are expected to loose $113 Billion in sales due to the coronavirus. Due to travel rescissions and lack of demand many airlines were forced to cancel flights to locations that are experiencing outbreaks. With peak travel periods such as spring break and summer approaching many airlines fear a financial crisis. 

Daniel Roeska, a senior analyst for European transportation at Bernstein Research, stated that this crisis has "a 9/11 feel because the demand -induced shock is not really related to economics." After 9/11 many developed a fear of flying and now people fear to fly with the possibility of getting a life threatening illness. 

On The Bright Side..

On the bright side of things, due to the economic slowdown, NASA pollution monitoring satellites had detected there has been a significant drop in nitrogen dioxide. As factories, especially in China, pause their operations to avoid widespread contamination.

Chart showing China pollution from factories

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