A sinking fast its the worst week in a decade for global stocks and investors in hong kong on the only ones seeking safer territory in london where some firms like chevron sent their workers home this week the footsie dropped 4. 5 percent early on friday elsewhere in europe losses on frankfurt dax index reach more than 5 percent germanys and the worlds biggest chemicals maker be a asset says its braced for the unpredictable impact of coronavirus. I mean you know in africa lower demands on production outages in Many Industries are already visible consequences of the measures taken to prevent the further spread of the virus begin to fade to the adverse effects of the corona virus will have a Significant Impact worldwide particularly in the 1st and 2nd quarters of this year. As the corona virus continues to spread to more and more countries so it has its negative impact on their economies this is milan in northern italy europes worst affected area normally busy tourist hot spots are now deserted and restaurants are empty. The International Monetary fund says its still getting to grips with how deep the global effects will be the virus is going to have an impact. On growth. A lot just depends on. The speed of recovery in ensuring you know other countries the spillover effects. The effects on supply chains with concern about the economic and Health Implications of coronavirus growing government looking for Global Solutions but experts warn that the world is not prepared for what may be down the road. Ok lets bring in a great hang in singapore and Chelsea Delaney in frankfurt our financial correspondent chelsea starting with you crash correction what are we seeing here. I think for now its a correction that could very easily turn into a longer term crash investors are very concerned that this could turn into a global recession but that the also about the unpredictability of the situation we dont know at this point how much further the virus is going to spread what this is going to do to businesses if its going to lead to more production shutdowns more supply chain disruptions how this is going to in fact impact consumers theres all these Big Questions that are really unanswerable right now but if this does turn into a session this could certainly put an end to this 11 year rally in stocks that we. Weve had good times and. Still in some of yours the numbers are dropping like flies today but whats interesting is there is no single safe haven that investors are running to. Youre right over there it was red red red all of the markets probably better than the jacket that im wearing right now even here in singapore stocks were a tumble down to a 15 month low of the benchmark s. T. I. Dropping down to 3. 00 dropping 2. 2 percent but since youre asking that actually is the one safe haven that investors are looking to pump money at in these jittery times and they stay in all of the stocks now you know according to one report investors found that Technology Stocks are the more resilient ones compared to traditional blue chip stocks and so a lot of people are putting their money in there analysts say that 2 reasons to this its a show that the government Chinese Government particularly is introducing the right support measures amid the outbreak but at the same time its also because chinese consumers themselves are starting to look at Technology Stocks and Technology Products ever since the u. S. Sanctions on china because singapore is a hub of oil activity tell us what what oil markets are doing this hour. Well obviously it is something that is low but the coronavirus isnt the only reason for the lower numbers in the oil markets theres also one of the culprits and thats asian demand in general now just to give you some numbers been endless say that the demand in asia for Refined Oil Products has tumble is going to tumble rather and that number is 380000 Barrels Per Day now just to give you a comparison that number in 2019 was 780000 barrels a day its somewhat to do with the slow it can all make activity in china yes due to the corona Virus Outbreak but also with the recession thats looming because of the u. S. Sanctions are putting a lot of pressure on the chinese economy so did mine generally is slower and produces a special operating rate Climate Change is actually the 2nd biggest reason behind this. Then usual winter months contributing to the also a number and the travel industry of course is. One that has a lot of oil its going through its was way since 911 chelsea. Yeah the stock 600. 00 ths travel and leisure section which mostly includes airlines is down a whopping 20 percent this week airlines have obviously been hit really hard by having to cancel flights to china since since last month but they are also now facing a similar travel shutdown travel bans and other disruptions for the European Market as well weve seen a lot of companies in the Airline Industry come out and say that theyre going to be putting people on leave that theyre going to be stopping hiring lufthansa here in germany air france also meet someone and outspend someone analysts estimate that this could cut 100000000000 euros from the Airline Industry its revenues this year chelsea can i just ask you really quickly are we going to see Emergency Action from Central Banks. Emergency action from Central Banks is really in the spotlight today a lot of investors think that the Central Banks the fed need to come out and really reassure markets and investors and consumers right now but so far what weve heard from central bankers including Christine Lagarde here in frankfurt yesterday was that they dont really believe that this is going to be a long Term Economic problem and theyre not really ready to step in with Interest Rate cuts chelsey the lady in favor therefore is another thing in singapore thank you. Look at the effects of the coronavirus is having on certain say is now officials calling off the Geneva International motor show the biggest in the world it was a joke to Begin Next Week but this was government has banned gatherings of a 1000 people or more of the hof a 1000000 people attended. But its low cost Airline Easyjet says its witnessed a significant softening of demand as a result of the bars the drop is primarily on flights in and out of its northern italian bases so far these yeezy jets shares a full of more than 20 percent. And British Airways says its expecting a drop in profits this year due to cancelled flights on the back of the coronavirus flights to and from china italy singapore and south korea have been cancelled. The growing spread of the coronaviruses sparking the sell off of socalled pandemic bones there an initiative of the world bank the bones they met shifting some of the burden of preparing against the pandemic onto Financial Markets instead of low Income Countries most at risk of a pandemic but now as the risk of a coronavirus pandemic grows the potential for a payout on the bonds shrinks and thats the sell off. A report on other sullivan is following this story for us. This is very very timely or timely i guess youd have to say. These holders basically cutting their losses yeah that is basically whats happened so as the reporter said there when the World Bank Brought these funds in 3 years ago there were 2 different tranche of the bonds and the risk here of the 2 is the one that were talking about now that bond had about 100000000 worth which was sold to investors and those investors have been getting rid of those in the last week absolutely as quickly as they can because their value is essentially worth nothing anymore because they know that the conditions have been met for those bonds to be paid to as you said low Income Countries so yes in that sense they are cutting their losses and not take your tranche the bonds the other less risky tranche that has and those conditions have not yet been met so in that case theyre still making some money for the investors so theyve made some money there cashing in cutting their losses where does that leave low Income Countries theyre the ones who were hoping for this money in this sort of situation and thats the big question about these old pandemic bonds and they have courted controversy from the very beginning so if you look at it from the point of you are they working from an investor point of view which is of the the least important concern here but they have worked to an extent lots of investors lots of hedge funds have made some money from these but the most important reason behind these pandemic bond. It was to get money to poor countries and all countries really want to especially low Income Countries in the event of a pandemic and the ultimate proof to show that these dont work is if we look at the original idea came from the Ebola Outbreak in west africa between 20142016 bombs were brought in and yet in 2018 when there was a new outbreak of ebola the conditions were not met in the democratic republic of congo for the money to be paid to that country which is a very low income country and which needed the money the reason the conditions werent met is because the virus at that time the boat of ours did not cross an International Border so even though you had more than 2000 deaths from ebola in the congo at the time the conditions for not one penny of this money was met to be paid simply because it hadnt crossed the border despite the size of the country so what are you saying that the pandemic bonds we already knew that the that they did what effectively yes and lots of experts in this area have said the same thing for years if you look at what they said for example jonas shes a short the world bank for 3 years shes now at the Harvard Global Health Institute shes extremely critical of them for a long time long before the corona Virus Outbreak she said in a very interesting article sure all for the magazine journal the scientific journal nature a few weeks a few months back she said this structure of financing has been very good for investors but not good for Global Health Larry Summers former u. S. Treasury official in the Clinton Administration he described them as i think goofball economics or goofball finance so no theyve been relatively good for investors not good for developing countries have a solution thank you very much and nice to do business with you. The 1st. To use crime fighter car back africas most successful radio drama series continues this season the stories focus on hate speech prevention and sustainable cargo production. All of the sos are Available Online and of course you can share and discuss on africas Facebook Page and other social media platforms. Crime fighters now. I think everything challenging 1st on how to make. So much difference. Between here and there. So a challenge in court if. Some of the 7 year was worth it for me to come to germany. To govern ourselves to work as a swimming instructor to share knowledge to children confidence to some of the toughest. Whats your story take part cherish on info my current stock next. To any of the slowest surprises. Coming out. To do some sit in the game play in the footsteps of the great privilege im concerned. Most towns uplifts trysts. Played 3 times wanted to kill mary much obliged. To specialise in germany. Recognize a player exactly. Muslim learn a lot of our culture history. Detail travel extremely worth a visit. Places. Player. Play. Space is d. W. News live from berlin the migrants in turkey begin moving towards europe after taking issues a fresh threat to open its borders and chris says it will not longer block migrants from entering the engagement in spain fueled by soaring tensions in the region. Dozens of turkish troops were killed in a syrian government. Also coming out. Level for the coronavirus as the pathogen sweeps the globe global cases of the infection but Health Officials say its not too late to contain
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