Not Looking Good: Russia bars all Chinese from entering, New Zealand has stopped all post and shipping from China, Apple virus shock to hit semiconductor suppliers

Summary:

  • Death toll passes 2,000 as Hubei reports 132 deaths for Tuesday
  • Japan to release first wave of 500 passengers + crew at 10:30 am in Tokyo
  • Florida health officials mysteriously refuse to share virus info with reporters
  • Russia bars all Chinese from entering
  • NYT notes signs of impending economic distress
  • South Korea announces “emergency steps” to prepare for outbreak.
  • South Korea announces 15 new cases

www.zerohedge.com/geopolitical/japan-confirms-88-more-cases-aboard-diamond-princess-one-day-quarantine-set-end

 

Effective IMMEDIATELY New Zealand has stopped all post and shipping to and from China.

If you’re waiting on a parcel to arrive from China, don’t hold your breath – NZ Post has halted all mail to and from China.

NZ Post says the suspension is because of partner airlines suspending flights to China.

“Given the current suspension of many airline services into China, NZ Post is currently not accepting any mail or parcels for delivery into China,” NZ Post’s website states.

The ban on mail and parcels is temporary and will be regularly reviewed.

www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12309715

“THIS IS THE WAKE UP CALL” – Apple Virus Shock To Hit Semiconductor Suppliers!! It begins

What a shocker – Apple cut guidance on a market holiday in the US.

The company issued a press release on Monday evening, admitting it does “not expect to meet the revenue guidance we provided for the March quarter” due to Covid-19 related issues.

Apple shares slid on pre-market Tuesday after the guidance cut, along with many of its suppliers, and the semiconductor industry as whole prints in a sea of red.

The guidance apple issued 19 days ago was nothing short of worthless and could leave many bag holders in the stock, as a correction could be nearing.

It wasn’t hard to understand the supply chain issued developing across China after the virus forced Beijing to freeze at least two-thirds of its economy and quarantine 400-700 million people.

We mentioned on several occasions that Foxconn, the company that assembles iPhones across China, had idled factories due to government orders to contain the virus. It was mentioned that if Foxconn factories did not start ramping up production early last week, full production targets by the end of the month were unattainable, which would lead to product shortages.

www.zerohedge.com/markets/wake-call-apple-virus-shock-hit-semiconductor-suppliers

DECOUPLING: Europe braces for coronavirus-induced drug shortages.

While Europe is one of the world’s top manufacturers of drugs, the raw ingredients often come from China or India. This dependence on Asia was already a source of alarm at the EU’s highest political levels, with shortages and impurities prompting calls for action in both Brussels and national capitals.

Now the coronavirus, which is shutting down factories in China and preventing authorities from making sure plants are up to snuff, is on track to exacerbate existing shortages.

“We have seen there might be a possibility [of the] risk of shortages of supplies due to the coronavirus,” said German Health Minister Jens Spahn at an emergency meeting with his EU counterparts in Brussels Thursday. “We know many active ingredients are made in China, particularly in Hubei province.”

www.politico.eu/article/europe-braces-for-coronavirus-induced-drug-shortages/

Hugh Hewitt tweeted: “So, there’s great risk in relying on PRC manufacturing, great risk in regulatory complexity and inflexibility, and great risk in prioritizing lowest cost in health care. In short, EU countries are in a bad place re drug supply.”

CORONAVIRUS UPDATE: Coronavirus Outbreak: Thieves Steal 6,000 Masks from Hospital in Japan.

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China counts over 72,000 cases of novel coronavirus as death toll rises.

We’re Reading the Coronavirus Numbers Wrong: Up-to-the-minute reports and statistics can unintentionally distort the facts.

Coronavirus: Restaurants struggle amid fears of outbreak. Passing through Boston’s Chinatown on the way to the airport yesterday, our driver told us that the restaurants and businesses there were really suffering from coronavirus fears.

Expect more companies to revisit their economic models due to coronavirus.

Too optimistic to say coronavirus impact can be wrapped up by second quarter, strategist says.

See what Shanghai, China, looks like as coronavirus fears linger.

 

GR