The corona virus is burdening the economy. Aldi and Lidl report hamster purchases. The Frankfurt Stock Exchange is flying low. And Lufthansa is curtailing its flight offer.
- The corona virus is now extremely stressful for the German and international economy .
- On the Frankfurt Stock Exchange , investors are feeling the effects of Covid-19 due to falling share prices .
- International supply chains and even small and medium-sized German companies are also affected.
Update from February 29, 2.35 p.m .: As Aldi reported a few days ago, there is increased demand for food in the discounters. Aldi claimed to face this challenge and respond to it. On Aldi's Facebook page, many customers complained that this reaction had not been adequate at all: the shelves that some users post are yawningly empty.
Empty shelves at Aldi.
© Facebook Aldi Süd Community
"Fill up your shelves again ... everyone goes crazy", writes a user with the zip code 71. "For God's sake", another user commented on the photo.
Empty shelves at Aldi.
© Facebook Aldi Süd Community
Another user from Eschweiler wrote: “Today my life partner was shopping with you. What can I say, everything bought empty from panic customers. I'm curious how the coming week will look like.
Aldi doesn't seem to be able to cope with the increasing demand as well as expected.
A connection with the corona virus is of course not handed down - after all, discounter customers are generally quite happy to buy on Saturdays.
Corona virus and the economy: Michelin cancels event in Hamburg
Update of February 29, 1:10 p.m .: The restaurant guide Guide Michelin has canceled the star award in Hamburg planned for Tuesday due to the corona virus. Michelin Europe North gave the reason in a statement on Saturday as the health risks for the participants. The awarding of the restaurants takes place in a "digital press communication".
Update from February 29, 8.32 a.m .: Bavaria is potentially at risk due to its proximity to Italy. This is what the current measures for corona virus protection in Bavaria * look like.
Corona virus and the economy: Berlin travel trade fair canceled - Lufthansa takes a drastic step
Update from February 28, 8:18 p.m .: Lufthansa is responding to the spread of the corona virus and plans to significantly reduce its short-haul flights in the coming weeks. The offer on the short and medium-haul routes could drop by up to 25 percent, the Dax group announced on Friday in Frankfurt. The airline is also examining the possibility of applying for short-time work in various areas.
The aggravated situation should also be felt on long-haul flights, with the number of long-haul aircraft remaining on the ground increasing from 13 to 23 in the group. The expected negative impact on earnings from current developments cannot yet be estimated, it said. On March 19, the group plans to present financial figures at the annual press conference.
19:34: The ITB travel fair in Berlin is canceled due to the new corona virus. In a message on Twitter it says: "Due to the increasing spread of the novel coronavirus COVID-19, the Federal Ministry of Health and the Federal Ministry of Economics have spoken out to cancel the ITB Berlin."
⚠️ ITB Berlin 2020 canceled! #MesseBerlin # ITB2020 pic.twitter.com/JuRMoDD9lH- Messe Berlin (@MesseBerlin) February 28, 2020
Coronavirus: 345 trade fairs canceled - German exhibitions also affected
4:44 pm: Meanwhile , several trade fairs have already been canceled worldwide, now increasingly in Europe. A total of 345 trade fairs and exhibitions were postponed or canceled altogether, according to figures from m + a Messemedien Frankfurt, of which 227 in Asia and 67 in Europe.
Trade fairs in Italy (Bologna, Milan, Parma, Verona, ...) are particularly affected, but also German exhibitions. The following trade fairs in Germany do not take place due to the corona virus :
- Berlin: Asia Apparel Expo
- Düsseldorf: METAV
- Frankfurt am Main: Light + Building
- Cologne: International Hardware Fair
- Nuremberg: Frontale window construction
- Nuremberg: IWA OutdoorClassics
4:04 pm: By Friday evening, Messe Berlin would like to announce whether the ITB travel fair can take place next week in view of the new Corona virus. If major events are canceled, this would also affect hotels, restaurants and caterers . The industry association Dehoga reiterated on Friday that the industry has so far only been able to identify "a single point of concern". "Occasionally, hotels report cancellations by Chinese travelers," it said in a statement.
Corona virus and the economy: massive effects on the stock market - worst losses since 2011
2:35 p.m .: Shares of alleged profiteers of the viral disease were in demand on the stock exchanges on Friday, including the respiratory mask manufacturer Drägerwerk and the provider of video conference software Teamviewer. Meanwhile, the oil price continues to fall. At noon, a barrel (159 liters) of North Sea Brent cost $ 51.13. That was $ 1.05 less than the previous day. From a weekly perspective, the market is heading for the worst losses since 2011 .
11.45 a.m .: In view of the coronavirus epidemic , the Geneva Motor Show has been canceled. The well-known international vehicle trade fair will be canceled this year, the local authorities said on Friday. The opening of the motor show was scheduled for next Thursday.
Because of Corona: Deutsche Bank makes an unpleasant forecast - is Germany slipping into recession?
11.40 a.m .: According to Deutsche Bank, the spread of the corona virus could lead to a recession in Germany. "The export-oriented German economy is particularly badly hit by the interruption of international supply chains," said Stefan Schneider, chief economist for Germany, on Thursday evening in Frankfurt. It is therefore likely that the German economy will shrink in the first two quarters of the year.
Even in the year as a whole, growth should “not be much” above the zero line if the main scenario expected by the bank occurs, Schneider said. The previous official forecast of economic growth of 0.7 percent would then not be hold. In its main scenario, Deutsche Bank expects the number of people suffering from the coronavirus to increase to three million worldwide and that 30,000 people will die. Chief economist David Folkerts-Landau attributes this to a probability of 50 percent.
The price slide due to concerns about a coronavirus pandemic peaked on Friday with a Dax loss of more than 5 percent at times. With a drop of a good 13.5 percent since last Friday, investors are experiencing the blackest week since the beginning of the global financial crisis in 2008 .
Meanwhile, an expert on Maybrit Illner's corona virus talk (ZDF) lost patience.
Corona virus: stock market investors in “panic mode”
9.55 a.m .: The spread of the corona virus continues to push the stock market prices deep into the red. The German share index DAX fell again on Friday by more than three percent and was trading 3.85 percent below the previous day's value at the start of trading. Since Monday, the index of the 30 largest German companies has lost a good twelve percent.
At the trading centers in London, Paris and Milan, the price losses continued on Friday morning. Investors have switched to "panic mode" , commented analyst Ipek Ozkardeskaya, from Swissquote Bank.
The outgoing head of the British central bank, Mark Carney, has warned of the economic consequences of the new corona virus. The virus crisis could slow global growth and subsequently the UK, Carney told Sky News on Friday.
Because of corona virus: Easyjet cancels flights - demand decreased
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 of February 28, 2020, 8.25 a.m .: The Federal Employment Agency pays short-time work allowance for employees whose companies are affected by the new corona virus. "The right to short-time work benefits must 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: © Facebook Aldi Süd Community