[V12Doc]

Coronavirus impact on the economy is going to be a short term disruptions with implications longing for atleast 8-12 months depending upon how long the disruption goes. If they are unable to control the pandemic by May/June, we might see people defying government orders or rioting all around because an average salaried person/ business person being able to hold out their basic expenses for 3-4 months. The essential sector will be fast to recover but when it comes to the service sector especially the luxury service sector the recovery is going to be long one because they were no longer relying just on the rich to carry them but also the upper middle class which is going to be the worse hit. After this pandemic is over the governments would need to do a lot of stimulus and expenditure to build confidence is people to go out there and take risks.

[volkman10]

Maruti Suzuki Suspends Production At Gurgaon & Manesar Plants until further notice.

[volkman10]

Indian auto industry to suffer an estimated loss of Rs 15,000 crore by March 31.

As the coronavirus outbreak rattles the Indian economy and disrupts businesses, the domestic automobile industry is in for an estimated loss of about Rs 15,000 crore due to the near complete shutdown of operation till March 31, 2020, reveals ETAuto research. The magnanimity of the loss may further go up if the pandemic spread is not contained in the next one week.

As per analysis, the $104 billion India auto industry will suffer a loss of about Rs 1,800 crore per day (estimated figure) due to halt in manufacturing by automakers at major automotive clusters for the next 8 days. Notably, the sector contributes to almost 7.5 percent to the country’s overall GDP, and it has around 49 percent share in the manufacturing sector.

The spread of the novel virus first pushed the automakers to have their non-manufacturing employees to work from home and now, they have moved to stop production at their local factories.

The impact of Coronavirus on auto sector grew sharpest in the last 24 hours, as leading automakers such as Tata Motors, Hero MotoCorp, Maruti Suzuki and Mahindra & Mahindra, Ashok Leyland, Escorts, Honda Cars, Hond 2Wheelers have announced the closure of their plants due to outbreak of the coronavirus for varying periods of time

Link

[volkman10]

Hyundai temporarily suspends operations in Chennai.

The company said it will await further notifications from State Government to resume plant operations.


Link

[volkman10]

For the first time, Japan's Prime Minister says postponing the Olympics is a possibility.

- Canada will not send athletes to Tokyo Olympics and calls for the games to be postponed for 1 year.

LINK

[KL01toKA03]

Parking is becoming a huge problem globally.

Some airports are using runways to park planes.
https://edition.cnn.com/travel/artic...rus/index.html

In India, some railway stations are struggling to find space to park trains. They have to find space to park trains, and still leave the tracks open so that goods traffic happens without any issues

[ramzsys]

What is he implying?

[volkman10]

Current Situation:

[GTO]

A good read from the Indian Express on Covid-19 & the Indian economy - Source

In September 2008, when Lehman Brothers happened, the Indian economy was relatively better placed in terms of the financial health of its households, firms, banks and government. In March 2020, the economy isn’t exactly on a ventilator, but the underlying structural weaknesses are rather obvious. GDP growth in 2008-09 slumped to 6.7%, from 9.3% the previous year, only to quickly recover to 8.6% in 2009-10 and 8.9% in 2010-11. By contrast, the novel coronavirus has struck when growth has already slowed, from 6.6% in 2017-18 to 6% in 2018-19 and 4.9% in 2019-20.

The economic after-effects of COVID-19 are at present being analysed largely for creating disruptions in global supply chains — especially with China producing much of the basic active pharmaceutical ingredients, automotive component parts or mobile handset and electronic device inputs that are imported by manufacturers, including in India.

Supply apart, there is also the shock to demand from people cutting down on travelling and flying or not going to restaurants, shopping malls and movie theatres. In normal circumstances, these disturbances — along with their negative feedback loops on jobs, incomes, spending and consumer confidence — ought to end once the virus has run its course. There are reports already of Chinese factories, at least outside the original epicentre of Wuhan, limping back to life.

[ritz3645]

Originally Posted by ramzsys

What is he implying?

To reduce FDA New Drug release time line for Corona Virus.

Link: https://www.fda.gov/drugs/developmen...-process-drugs



Drug companies seeking to sell a drug in the United States must first test it. The company then sends CDER the evidence from these tests to prove the drug is safe and effective for its intended use. A team of CDER physicians, statisticians, chemists, pharmacologists, and other scientists reviews the company's data and proposed labeling. If this independent and unbiased review establishes that a drug's health benefits outweigh its known risks, the drug is approved for sale. The center doesn't actually test drugs itself, although it does conduct limited research in the areas of drug quality, safety, and effectiveness standards.

[volkman10]

It is now Volkswagen's turn to care for all!

[volkman10]

Originally Posted by ramzsys

What is he implying?

It is just between Dollors vs Death.

Dollars versus deaths -- At the bottom of Trump's tweet is a terrible calculus: How many lives is the economy worth?

his preference is to open the country back up regardless of what doctors tell him. He said the shutdown will cause problems like suicides, and complained that the economy had been blazing before the virus hit.

We have to open our country because that causes problems that could be far bigger

Doctors, he said, would shut down the whole world. "We can't let that happen to our country, we have the greatest country in the world, I'm not going to let that happen,"

Link

[mvadg]

$20 tn lawsuit filed in US against China over coronavirus pandemic

New Delhi/Washington, March 23 (IANS) A Washington-based advocacy group and a Texas company have filed a class-action lawsuit against the Chinese government for the novel coronavirus, demanding $20 trillion compensation for the damages caused by the pandemic.
The lawsuit was filed on behalf of a conservative lawyer Larry Klayman, his advocacy group Freedom Watch and Buzz Photos, a Texas company that specializes in high school sports photography. The petitioners have accused the Chinese government of developing the novel coronavirus as "an illegal biological weapon". The complaint has alleged that the virus was "released by the Wuhan Institute of Virology, located in Wuhan, China, where the coronavirus outbreak originated".
"Although it appears that the COVID-19 virus was released at an unplanned, unexpected time, it was prepared and stockpiled as a biological weapon to be used against China''s perceived enemies, including but not limited to the people of the US," the complaint said.
The US government has blamed Beijing for the coronavirus pandemic after the Chinese government held American soldiers responsible for bringing the contagious disease to China. The Trump administration pointed out that the Chinese government covered up the outbreak of the virus for a long time and even punished the whistleblowers who tried to expose it
...

My question: Given that India had more than sufficient warning and information on the effects of this virus. the current situation was completely avoidable. Why didn't it act in time? Who will sue the Indian Government for the delay in taking decisive action and force it to compensate the public for the loss in lives and monetary losses?

[alpha1]

Originally Posted by SmartCat

Incidentally, fear is a measurable parameter in the financial world!

Attachment 1979694

This is the FEAR GAUGE or Vix or Volatility Index. The current vix value is 77.

What this means is that market participants are as fearful about the financial future of the world as they were at the peak of 2008 financial crisis. But not as much as they were in 1987.

But at a given instant: the current levels of volatility / fear is dependent on the doomsday picture drawn based on current information.

How does it stand today, now that we have another 3 weeks of lock-down?
And quite possible that at the end of this period, another lock-down till the number of cases dwindle or at least become steady.

[SmartCat]

Originally Posted by alpha1

But at a given instant: the current levels of volatility / fear is dependent on the doomsday picture drawn based on current information. How does it stand today, now that we have another 3 weeks of lock-down? And quite possible that at the end of this period, another lock-down till the number of cases dwindle or at least become steady.

In Indian markets, the fear levels are at all time highs (5x times normal levels). There has just been a minor drop today, because of the lockdown.



Market participants consider this as a minor positive move (unlike most business leaders and talking heads, who think this lockdown will solve India's Covid-19 problems once and for all)

In US markets, the passage of $2 trillion stimulus bill means that fear levels are significantly lower now, but still 4x times normal levels.