The new coronavirus could dampen emerging markets
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There are a lot of unknowns with COVID-19, but it definitely isn’t good for the global economy. On Monday, oil markets crashed more than 30%, 10-year Treasury yields dipped below 0.4% and the Stoxx Europe 600 Index fell the most since 2016.
Ian Bremmer, founder of the political risk consultancy Eurasia Group, said this upheaval could be especially challenging for less-industrialized countries.
“The global economy was already softening. A lot of big investors weren’t looking to put more cash in emerging markets. And now those countries look scarier,” Bremmer said in an interview with Marketplace’s David Brancaccio.
“Especially if this coronavirus plays out in their own countries with outbreaks — nevermind the problems of supply chain and global slowdown — they’re the ones that are going to get hurt the most.”
But there could be a silver lining for some countries as companies look to diversify their supply chain in the future.
“One thing that you are going to see is a tipping point towards globalization and regionalization. Suddenly companies are finding that having awful lots of labor in China makes them really vulnerable to disruption,” Bremmer said.
Click the audio player above to hear the full interview.
COVID-19 Economy FAQs
How many people are flying? Has traveled picked up?
Flying is starting to recover to levels the airline industry hasn’t seen in months. The Transportation Security Administration announced on Oct. 19 that it’s screened more than 1 million passengers on a single day — its highest number since March 17. The TSA also screened more than 6 million passengers last week, its highest weekly volume since the start of the COVID-19 pandemic. While travel is improving, the TSA announcement comes amid warnings that the U.S. is in the third wave of the coronavirus. There are now more than 8 million cases in the country, with more than 219,000 deaths.
How are Americans feeling about their finances?
Nearly half of all Americans would have trouble paying for an unexpected $250 bill and a third of Americans have less income than before the pandemic, according to the latest results of our Marketplace-Edison Poll. Also, 6 in 10 Americans think that race has at least some impact on an individual’s long-term financial situation, but Black respondents are much more likely to think that race has a big impact on a person’s long-term financial situation than white or Hispanic/Latinx respondents.
Find the rest of the poll results here, which cover how Americans have been faring financially about six months into the pandemic, race and equity within the workplace and some of the key issues Trump and Biden supporters are concerned about.
What’s going to happen to retailers, especially with the holiday shopping season approaching?
A report out recently from the accounting consultancy BDO USA said 29 big retailers filed for bankruptcy protection through August. And if bankruptcies continue at that pace, the number could rival the bankruptcies of 2010, after the Great Recession. For retailers, the last three months of this year will be even more critical than usual for their survival as they look for some hope around the holidays.