As the coronavirus extends beyond China, early indicators of the outbreak's full economic impact are trickling in.
One report from China Beige Book, an economic forecasting firm, which surveyed more than 1,400 companies, shows an economy reeling from shutdowns and quarantines.
"Not only has every major index that we track turned negative, but every major sector of the economy is currently in contraction territory," Shehzad Qazi, managing director of China Beige Book, told Cheddar. "This is the worst result we've seen in nine years."
Armed with the fresh data from the last two months, Qazi pushed back against the narrative that China is already bouncing back from the worst ravages of the coronavirus.
"You've got people going in and flipping on the light switch, but there isn't any work happening," he said. "Many of the employees are still stranded. They can't even get back to their job sites."
Nationwide, some 31 percent of executives reported that their firms have remained closed since the Lunar New Year holiday. Among those businesses that did open back up, 29 percent still have employees working from home, and only a third of businesses say they're functioning normally.
"Most of the Chinese economy has remained under a virtual lockdown throughout the month of February," said Qazi.
Chinese auto factories, which are tightly linked to western auto part suppliers and buyers, had higher than average firm closures with 35 percent reporting they were shut down due to the virus. The numbers were roughly the same for logistics firms.
IT manufacturers fared a bit better, with just 20 percent reporting closures — though that doesn't account for the 53 percent of management who have not returned to the office.
Right now, global firms with links to China are working down their inventories, but the economic blast radius could expand if suppliers don't get up and running before those supplies run out.
"As inventories start running thin in the U.S. or Europe and supplies are not coming out of China, we may start seeing the risk of factory shutdowns right here in the United States," Qazi said.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence.
