VIRUS DISEASES – CHINA

Earnings shredded as virus fears bite

roymorgansocial Leave a comment

Original article by Eli Greenblat, David Rogers
The Australian – Page: 17 & 24 : 26-Feb-20

The coronavirus outbreak has become a major theme for the February reporting season, with a growing number of listed companies issuing earnings downgrades due to the impact of the virus. Treasury Wine Estates, Blackmores and Seek are among the latest companies to issue profit warnings; Treasury has downgraded its earnings expectations for the third time in 2020. Meanwhile, retail group Mosaic Brands had advised that its dividends have been put on hold until the impact of the coronavirus becomes clear.

CORPORATES
TREASURY WINE ESTATES LIMITED – ASX TWE, BLACKMORES LIMITED – ASX BKL, SEEK LIMITED – ASX SEK, MOSAIC BRANDS LIMITED – ASX MOZ

Already 1-in-6 Australian businesses have been affected by the coronavirus (COVID-19)

roymorgansocial Leave a comment

Original article by Roy Morgan
Market Research Update – Page: Online : 25-Feb-20

In mid-February around 1-in-6 Australian businesses (15%) have already been affected by the coronavirus. This new threat to business comes after 28% of Australian businesses said they have been affected by the extensive bushfires over the last few months, according to a special Roy Morgan Snap SMS Survey of 1,170 Australian businesses. A little over a week after the Australian Government stopped all direct commercial flights to China in early February the coronavirus (COVID-19) is already striking several industries. Around two-fifths of Manufacturers are already reporting being affected, closely followed by a third of Education & training businesses and those in the Wholesale industry. Other industries to already be feeling the effects of the coronavirus include Accommodation & Food services (which includes travel and tourism businesses), Community services, Administrative & Support services and Property & Business services. Meanwhile, a deeper analysis of the industries most heavily impacted by the bushfires/floods shows that over 40% of businesses in the Accommodation and Food services sector, which includes travel and tourism, say they have been affected either ‘A great deal’ or ‘Somewhat’. Around a third of businesses in the Retail and Property & Business services industries have been affected, while there have also been disproportionately large impacts on Manufacturing, Transport, Postal and Warehousing, Public administration & defence, Education & training and Recreation & personal.

CORPORATES
ROY MORGAN LIMITED

World is approaching coronavirus tipping point, experts say

roymorgansocial Leave a comment

Original article by Angela Giuffrida, Patrick Wintour, Sam Jones
The Guardian – Page: Online : 24-Feb-20

The global death toll from the coronavirus has risen to 2,470, and more than 78,000 people worldwide have been diagnosed with the respiratory illness. There have been 2,444 confirmed deaths in China, while the number of fatalities in other countries is rising; there have now been eight deaths in Iran, six in South Korea and three in Italy. South Korea has raised its alert on the coronavirus to the highest level, while coronavirus expert Paul Hunter of the University of East Anglia has warned that time is running out to avert a global pandemic.

CORPORATES
UNIVERSITY OF EAST ANGLIA

First coronavirus deaths among Diamond Princess passengers and in South Korea; health experts warn of mounting cases beyond China

roymorgansocial Leave a comment

Original article by Gerry Shih, Rick Noack, Lateshia Beachum, Teo Armus
The Washington Post – Page: Online : 21-Feb-20

The death toll from the coronavirus in mainland China has risen to 2,118; some 74,546 people across the nation have now contracted the respiratory illness. Meanwhile, media reports in Japan have confirmed that two elderly passengers on the quarantined cruise ship ‘Diamond Princess’ have died from the coronavirus, while the first death from the virus has been reported in South Korea. World Health Organization director-general Tedros Adhanom Ghebreyesus has warned that the number of coronavirus infections outside of China could rise.

CORPORATES
WORLD HEALTH ORGANIZATION

Coronavirus could cost global economy $1.1tn in lost income

roymorgansocial Leave a comment

Original article by Phillip Inman
The Guardian – Page: Online : 20-Feb-20

The death toll from the coronavirus in mainland China has risen to 2,004, and more than 74,000 people across the nation have been infected with the respiratory illness. Meanwhile, two people have died in Iran after testing positive for the coronavirus, while Hong Kong has reported its second death from the illness. Oxford Economics has estimated that the coronavirus would reduce global economic growth by 1.3 per cent in 2020 if it becomes a pandemic; this could reduce global output by more than $1trn. However, the firm expects the impact of the virus to largely be limited to China.

CORPORATES
OXFORD ECONOMICS LIMITED

Top unis face $1.2bn virus hit

roymorgansocial Leave a comment

Original article by Tim Dodd, Adam Creighton, Jill Rowbotham
The Australian – Page: 1 & 6 : 19-Feb-20

The value of Australia’s education exports to China topped $12bn in 2019; analysis by the Centre for Independent Studies suggests that this could fall by up to 40 per cent in 2020, even if the coronavirus outbreak has been contained by June. Meanwhile, 10 of Australia’s top universities – including the so-called Group of Eight – could lose up to $1.2bn worth of fees from Chinese students who have been affected by the federal government’s travel ban. It has prevented about 65,000 students from arriving in Australia for the start of the academic year.

CORPORATES
THE CENTRE FOR INDEPENDENT STUDIES LIMITED, THE GROUP OF EIGHT LIMITED

Rates to stay low ‘for decades’: RBA

roymorgansocial Leave a comment

Original article by Cliona O’Dowd
The Australian – Page: 19 & 29 : 14-Feb-20

Reserve Bank governor Philip Lowe has conceded that the coronavirus outbreak is likely to have a near-term impact on the economy, although he does not expect the outlook for 2020 to be significantly affected. He adds that the Australian economy will benefit from stimulus measures in China when the virus is brought under control. Lowe has also warned that climate change has ‘profound’ economic implications for Australia, while he says official interest rates may remain low for a long time.

CORPORATES
RESERVE BANK OF AUSTRALIA

Bali tourist tests positive to coronavirus as more than 14,000 new cases confirmed

roymorgansocial Leave a comment

Original article by
The New Daily – Page: Online : 14-Feb-20

The global death toll from the coronavirus has risen to 1,369; Japan has reported its first death from the respiratory illness, and more than 60,000 people worldwide have now been infected. An additional 14,840 cases of the virus have been reported in the Chinese province of Hubei, after health officials changed the methodology for diagnosing the illness. Meanwhile, a Chinese national who has returned to Shanghai after holidaying in Bali recently tested positive to the disease.

CORPORATES

Travel bans set to knock $6bn from economy

roymorgansocial Leave a comment

Original article by Richard Ferguson
The Australian – Page: 7 : 13-Feb-20

Investment bank UBS expects Australia to record negative GDP growth in the March quarter, due to the introduction of travel bans in response to the coronavirus. UBS economist George Tharenou warns that annual growth could fall by about 0.9 per cent, which equates to a $6bn economic hit. The federal government’s national security committee will shortly decide whether to extend the ban on people travelling to Australia from mainland China; the ban has affected sectors such as education, tourism and retailing.

CORPORATES
UBS HOLDINGS PTY LTD

Virus slows Rio Tinto copper sales

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 17 : 13-Feb-20

The Oyu Tolgoi copper mine is located in the Khanbogd province, where the Mongolian government has declared a state of emergency due to the coronavirus. Rio Tinto has advised that Mongolia’s efforts to contain the virus’s spread will result in shipments of copper concentrate being delayed. The mine’s output is usually shipped across the border to China via trucks. BHP also recently advised that its copper shipments to China may be delayed, while OZ Mineral has indicated that it has not yet been impacted by the coronavirus outbreak.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, OZ MINERALS LIMITED – ASX OZL