The corona virus is burdening the economy. Aldi and Lidl report hamster purchases. The Frankfurt Stock Exchange is flying low.
- The corona virus is now extremely stressful for the German and international economy .
- On the Frankfurt Stock Exchange , investors are feeling the effects of Covid19 due to falling share prices .
- International supply chains and even small and medium-sized German companies are also affected.
8.35 a.m .: Due to the spread of the corona virus, the British airline Easyjet is canceling flights and is also launching an austerity program. Connections to and from northern Italy, where numerous infections have been reported, are particularly affected, said Easyjet on Friday in Luton near London. There, but also in other regions of Europe, demand has recently declined . The low-cost airline also announced measures similar to those previously announced by Lufthansa to reduce the impact of virus spreading on business.
This would postpone recruitment and promotions across the company and postpone subordinate projects and spending. Employees are offered unpaid leave. Costs should also be saved in administration, premiums will be cut.
Corona virus: feared severe impact on German economy - aid for closed businesses announced
Update from February 28, 2020, 8.25 a.m .:
The
Federal agency for work
pays for employees whose businesses are of a new kind
coronavirus
short-time work benefits are affected. "The
Right to short-time allowance
must always be based on an inevitable event or economic reasons. This applies, for example, when deliveries fail to appear and production has to be restricted, ”said the Federal Agency on Friday.
An inevitable event also exists if, for example, companies are closed due to state protection measures . However, it is important that the companies notify short-time work in advance to the responsible employment agency. The Federal Agency announced that the first inquiries had already been received .
Numerous companies in Germany rely on supplies of materials and components from China for their production. Economists fear significant losses if the situation around the virus does not relax relatively quickly.
Hamster purchases due to coronavirus: Aldi and Lidl are already “intensely” reacting
Update at 6:35 p.m .: The corona virus leads to an increased demand for durable food and hygiene products, Aldi-Süd and Lidl observe. "We are prepared for this and are increasing our inventory accordingly," explained Aldi-Süd. Lidl has also replenished inventories and is working “intensively” on the secure supply of goods.
The Rewe group including the Penny also -Markets, has so far not recorded any noticeable strong demand. According to the German trade association, there have been no bottlenecks so far.
Update at 4.15 p.m .: The future effects of the corona virus will also concern the federal government . For example, the crisis team of the Federal Ministry of Health and the Federal Ministry of the Interior wants to deal with the effects of the Corona outbreak on the world's largest tourism fair ITB in Berlin this Friday. As Interior Minister Horst Seehofer (CSU) announced on Thursday in Berlin, health protection and economic interests would have to be weighed up. You have to judge how many people would come from China and other stressed countries, said Seehofer.
Corona virus: There are strict rules for exhibitors at the ITB tourism trade fair in Berlin
The trade fair operators had previously announced that exhibitors who had been in the respective risk areas in China, Iran, Italy or South Korea during the past two weeks were not allowed on the exhibition grounds . The same also applies to exhibitors who have had contact with an infected person or show signs of typical symptoms such as fever, cough or difficulty breathing. According to current planning, the fair is to take place from March 4 to 8 . According to data collected by the Frankfurt m + a trade fair media, 230 trade fair events have already been canceled or postponed around the world. Including 50 events in Europe with a focus on Italy. So far, three trade fairs in Berlin, Frankfurt and Cologne have been rescheduled to later dates.
Initial report of 27 February 2020: Frankfurt - coronavirus not only has devastating health consequences, the economy is suffering from the lung disease from China. The fear of the consequences of the corona virus has now also got a firm grip on the stock exchanges . After the break from the previous day , the Dax lost a good two percent on Thursday morning in Frankfurt to 12 509.67 points . The day before, the index had already dropped to its lowest level since mid-October .
Corona virus: The economic consequences are enormous - yields have fallen to record lows
An expert emphasized that investors still did not properly assess the consequences of Covid19 * . At the same time, however, yields on the bond markets fell to new record lows . For long-term oriented investors, shares at a lower level could therefore become attractive again.
Lufthansa shares fell by almost six percent to their lowest level in three years. Analysts justified the sharp drop in the fact that investors had apparently opted to contain the corona virus in the Asia region before the losses.
Read also what symptoms the coronavirus causes in humans.
Coronavirus: German industry sees the epidemic as a "stress test" for the economy
German industry sees the corona virus , which is now more deadly than the flu, as a "stress test" for the economy . The chief executive of the Federal Association of German Industry, Joachim Lang, warns of “ noticeable negative effects ” for the economy and therefore called on the federal government to take a coordinated approach to economic policy. "In addition to health protection, politics must now also focus on economic crisis management ." Coronavirus consequences are particularly worrying for the economy, also because China is Germany's largest trading partner .
Lang explained that some supply chains with a strong focus on China would not pass the “stress test” at the moment. The more than 5000 German companies in China are severely restricted in procurement, production and sales. But not only internationally active companies from Germany are suffering from the consequences of Covid19. According to a survey by the Federal Association of Small and Medium-Sized Businesses, every fourth small and medium-sized German company is already feeling the effects of the epidemic.
You can also read at Merkur.de how high the risk of infection with the corona virus is and whether quarantined employees continue to receive salary *.
* Merkur.de is part of the nationwide Ippen-Digital editors network.
dpa / AFP / cia
Rubric list picture: © dpa / ---