The Long Arm Of The coronavirus Part I

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I was appointed the finance correspondent for Senior Life Advisor, an online magazine for investors near or in retirement.  The articles for Senior Life Advisor were designed to offer actionable information as well as items of interest about economics, investing and personal finance.

China contributes about a third of all growth in global gross domestic product (The U.S.,about 18%), and when the country’s economy virtually shuts down, it sends shivers up the spine of markets and bourses around the world.  The effects are widespread and below, color on why four industries are feeling pain:  

Pharma.  Drug companies have been hit as the as the FDA suggested that some 150 drugs are at risk for shortages because China is a major supplier of ingredients used to manufacture many drugs sold in the U.S.

Big oil.  Energy prices have fallen because Chinese oil demand is down sharply on dwindling air travel, road transportation and manufacturing. The fall in prices and demand has driven down U.S. energy giants such as Chevron and Exxon.    

Agriculture. Speculation that the outbreak will reduce demand for food in China have sent prices for soybeans, corn, cattle and hogs falling, taking with them the prices of companies such as Tyson Foods, ConAgra and Hormel Foods.

Lodging.  The hotel industry has been hit taking down shares of companies like Wynn Resorts and Hilton.  In the case of Wynn, gaming in Macau has ceased leaving the company with nothing but expenses there.  Meanwhile Hilton has closed 150 of its hotels in China.  These hotels contain 33,000 revenue generating rooms. 

Next up:  Four more industries feeling the pinch, plus one surprising winner amid the blood on Wall Street.  

Sources:  

Drugs

https://www.biospace.com/article/coronavirus-update-drug-shortages-criticism-of-trump-administration-s-efforts-and-politicization/

Energy

https://oilprice.com/Energy/Energy-General/3-Energy-Sectors-Most-Threatened-By-The-Coronavirus.html#

Agriculture

https://www.dtnpf.com/agriculture/web/ag/news/article/2020/01/27/coronavirus-raises-concerns-markets

Lodging

https://money.usnews.com/investing/stock-market-news/articles/2020-02-12/coronavirus-stocks-companies-most-affected-by-the-outbreak