OPEC is said to be alarmed by the coronavirus outbreak
Reuters is reporting on the matter, citing three OPEC sources, in saying that the bloc aims to extend the current oil output cuts through to June at least.
WHO chief, Tedros Adhanom, is in China this week to discuss ways of containing the virus outbreak
The spokesman also said that Tedros has met up with top Chinese officials and discussed measures to protect Chinese and foreigners in areas affected by the coronavirus. They are also said to have discussed possible alternatives to evacuations.
Says that interbank markets will also observe the extended holiday period
For those unaware, China is observing an extended holiday until 2 February in an attempt to curb the spreading of the coronavirus infection. The central bank also reaffirms that they will offer ample levels of liquidity after the holidays via OMOs.
Via Bloomberg, question of the day ?
- Treasuries: One of the first ‘go to places’.
- Gold: Another quick go to place for value. Short term it makes sense for a quick spike, but longer term the improving US outlook means that gains should be capped
- Bitcoin: Sometimes mirrors gold as a digital ‘gold’, but for some investors the jury is still out whether bitcoin is here to stay or a first flush of a changing digital age that may or may not be here. For me, when investing in a safe haven on the coronavirus fears, I would favour gold over bitcoin every time. Is that just an unfair bias and unnecessary conservatism, or sensible? Anyone take the other view?
- Tech stocks: Seen as less vulnerable as industrials, finance or energy stocks. Perhaps long health stocks?
From the headline, it doesn’t appear to be a hard rule but more of a travel advisory – along the lines of asking travelers to reconsider their plans. These travel warnings have always been a bit of a blur line and in my view, I don’t ever see them having much impact.
All 1,500 people who have flown in from Wuhan since mid-January will be asked to remain in isolation for at least a fortnight reports the UK Telegraph (link may be gated)
- But it is understood that they only have contact details for one in 10 cases who arrived on such flights.
4,295 confirmed cases
- 106 fatalities
- 855+ in serious/critical condition
- 15 countries reporting cases
- Jan 17: 41
- Jan 19: 62
- Jan 20: 201
- Jan 21: 291
- Jan 22: 440
- Jan 24: 830
- Jan 25: 1,287
Reuters conveying the news
Here’s a bit of (useful) fun, The Economist’s “Big Mac index” to gauge whether currencies are at their “correct” level against the US dollar.
- Burgernomics was never intended as a precise gauge of currency misalignment, merely a tool to make exchange-rate theory more digestible. Yet the Big Mac index has become a global standard, included in several economic textbooks and the subject of dozens of academic studies.
Some of the results (more at that link)