LONDON (AP) — Stock markets are heading for their worst week since 2008, Europe’s top auto show has been canceled and companies keep lowering their earnings estimates. Here’s a look at the latest developments:
MARKETS: Share indexes are down sharply again, with losses of over 3% in Japan and Germany. Wall Street is expected to drop further, with futures down 1%. At this pace, stocks are set to have their worst week since 2008, at the height of the global financial crisis. The price of oil is dropping, with Brent close to falling under $50 a barrel for the first time since the middle of 2017.
EVENTS: The Geneva auto show was canceled after Swiss authorities banned large events of more than 1,000 people. The trade fair is a big event, particularly for European automakers, which are already struggling with the need to reduce carbon emissions. Sports events were being canceled in many parts of the world. Tourism is heavily affected, too, with hotels laying off staff. A theme part in Thailand shut down for the foreseeable future.
RUN ON MASKS: Fear of the virus has led to a global run on sales of face masks despite medical experts’ advice that most people who aren’t sick don’t need to wear them. Many businesses are sold out, while others are limiting how many a customer can buy. Amazon is policing its site, trying to make sure sellers don’t gouge panicked buyers.
EARNINGS AND JOBS: The owner of British Airways warned that its earnings have been hit by weaker demand as a result of the virus. International Airlines Group said it has seen lower demand on its Asian and European routes as well as weaker business travel due to the cancellation of industry events and corporate travel. Philippine Airlines is laying off 300 ground personnel as part of an ongoing restructuring that was aggravated by travel restrictions caused by the virus.
ECONOMIC OUTLOOK: Policymakers were downgrading their forecasts due to the widespread disruption to business. The outgoing head of the Bank of England told Sky News that it is unclear how big the economic knock will be.