The Bags sank for fear of the expansion of the coronavirus in the US

Paula Lugones

02/27/2020 - 19:40

• Clarín.com
• World

The stock exchanges around the world sank on Thursday and Wall Street suffered a dramatic fall in fear of the constant expansion of the coronavirus globally and the possibility that the epidemic will expand strongly in the United States, where on Wednesday the first case of illness in a patient who had not traveled abroad. The US Stock Exchange threatens to close Friday the worst week since the financial crisis of 2008.

The press conference given on Wednesday at the White House by President Donald Trump was not enough to reassure the nervousness of the markets today nor that of the Americans . Chinstraps begin to run out, schools send parents and students communications about how to take care of themselves and conversations on the street revolve around that virus that seemed distant before and now begins to stalk the country.

So far all cases of infection in the United States (about 60) were from people who had traveled to China or European countries, today the main sources of infection. But the alarm grew on Thursday when a patient was detected in California who had not traveled to the risk areas or, in principle, had been in contact with anyone carrying the virus.

This is a woman who lives in Solano County, not identified by privacy issues , who showed up at the hospital with symptoms and her illness was later confirmed. Before being diagnosed, the patient went to work and was in contact with countless people who are now trying to locate.

Financial nervousness was already perceived strongly on Wednesday in the European markets, with an average drop of 3%, while Japan and South Korea lost 2% average. But it was even more serious: with a sharp fall today (-4.28 the Dow Jones and -4.39 the Nasdaq), Wall Street is on its way to closing on Friday the worst week since the 2008 crisis, experts say.

Until now, the focus of financial fear in the United States had been the impact of the coronavirus on the production chain, which has strong ties with Chinese factories. But when public health officials confirm the risks of expansion in US territory, experts predict a greater threat to the local economy: daily routines can be disrupted, classless schools, mass meetings canceled and businesses can close their doors. .

Designated Vice President Mike Pence, appointed by Trump to lead the fight against the virus (Bloomberg).

The coronavirus has infected more than 82,000 people for now and killed 2,813 worldwide . The director general of the World Health Organization (WHO) said Thursday that the epidemic reached a "turning point", and asked countries to act quickly to contain this "very dangerous virus", which started in China and already affects to more than 45 nations.

In this context, no one doubts the impact of this epidemic on world growth, although it is still difficult to assess it. At a press conference in Washington, the spokesman for the International Monetary Fund, Gerry Rice, pointed out that the coronavirus will have undeniable consequences on global economic projections, but that with the level of uncertainty about the epidemic's expansion they are difficult to assess.

For the coronavirus, the organization analyzes to suspend the meeting of all the ministers of Economy and the heads of the Central Banks of the planet that is usually held in April in Washington.

Aware that the virus can be a fierce enemy, particularly in a year in which he seeks re-election in November, President Trump yesterday sought to reassure the Americans. In an unusual presentation in the press room of the White House, he said that "risk is low" in the United States and that in this country "there are the best scientists in the world."

The president sought to convey that the crisis is under control, but his message was contradictory , because although he minimized the risk by saying that the outbreak “could increase slightly; nothing could increase, ”he called on the Americans to prepare to face the virus. In addition, he kept his distance from the express opinion of public health officials who say it is inevitable that the virus will spread in the United States.

Hours before his conference, via Twitter he had blamed the press and the Democratic opposition for the fall of the markets of the previous days. He said they had caused unnecessary fears and therefore damaged the financial markets.

More expensive. A scene in the Chinatown neighborhood of Manhattan (Bloomberg).

The Democrats counterattacked because they have already been criticizing the president for his cuts to national security sectors responsible for disease outbreaks and for lowering the budget of the Center for Disease Control and Prevention, the agency that handles these issues.

Presidential candidate Michael Bloomberg said wryly that he felt "much better" after the president's words. "I hope you're right that the virus doesn't come here ... The bottom line is that we're not prepared for this kind of thing." Democrats also criticized the appointment of Vice President Mike Pence as an official in charge of the crisis because they say it was not effective in fighting the HIV epidemic in the past, when he was governor of Indiana.