Market Commentary

Executives Try to Assess Financial Impact of Coronavirus Measures

Posted by Anton Murray Consulting on . Posted in Market Commentary

WSJ

Finance executives at international companies are taking measures to protect their employees and their customers against the coronavirus, but say it is too early to tell what the financial implications might be for their businesses. Companies across a range of industries, including travel, leisure and consumer products, could be negatively affected by the continued spread of the virus that originated in the Chinese city of Wuhan and has since moved across China and to other countries, including the U.S., according to analysts at Moody’s Investors Service. “The fear of contagion could dampen consumer demand, and affect tourism, travel, trade and services in affected countries,” said Atsi Sheth, a managing director at Moody’s, according to a news release.

Stocks of some travel companies, alongside casino and hotel operators, have taken a hit, and more businesses are expected to report a financial impact should the virus keep spreading, analysts said. Costa Cruises, a subsidiary of Miami-based Carnival Corp., said it has canceled four cruises but declined to comment on what this would cost the company. PerkinElmer Inc., a Waltham, Mass.-based testing and diagnostics company, said it anticipates a potential negative impact on some of its franchise businesses, as patients in China may avoid going to the hospital for immunology and infectious disease testing, according to a Monday earnings call.

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