China president Xi says that need to mend the loopholes exposed in this coronavirus outbreak

Comments by China president Xi Jinping via state television

  • Says to push the rollout of biosecurity law as soon as possible
  • Ensuring safety, health of the people is a major task for the country
  • To improve medical insurance and aid system for major diseases
Not the sweetest of Valentine’s messages from Xi but I’m not sure what he actually means by “mending the loopholes” here.
China has taken a major reputation hit as a result of the virus outbreak and how poorly it was handled during the initial stages, with many questions and doubts – still persisting – about the actual figures and cases reported across the country.
Does mending the loopholes mean that they will be more transparent and act quicker next time? Or does it mean that they will double-down efforts to make sure something as malicious as this will not surface among international media if we see a repeat?

Singapore reports 9 new coronavirus cases, overall tally now at 67

The daily jump is bigger than the eight cases reported yesterday

As the situation within China is reported to be more contained, it is not exactly the case in Singapore as the tally continues to pick up during the week.

Do be reminded that Singapore has already raised its warning level on the virus to ‘Orange’ earlier this month, so there is a risk that we could see the country revise the status to ‘Red’ – signifying a pandemic situation.


Eurozone December trade balance €22.2 billion vs €19.3 billion expected

Latest data released by Eurostat – 14 February 2020

  • Prior €19.2 billion; revised to €19.1 billion
  • Non-seasonally adjusted trade balance €23.1 billion
  • Prior €20.7 billion
The trade surplus improved as exports grew by 0.9% on the month while imports fell by 0.7% on the month. However, the data here acts as more of an accompaniment to the overall GDP report release at the same time so it isn’t really a key release.

German economy ministry says that economic impact of coronavirus cannot be estimated at the moment

Says that risks from abroad have increased due to the coronavirus outbreak

  • German economy is still experiencing a period of weakness
  • Industrial sector remains weak
  • But improved business sentiment suggests some stability in the coming months
  • Impact of virus outbreak on China and trade partners cannot be estimated currently
A couple of general commentary by German lawmakers after the Q4 GDP report earlier. The report saw German economic conditions stagnate in the final quarter of 2019 and the brighter outlook going into this year has been largely tempered by the virus outbreak.
As such, any expected recovery may have to be shelved and that may could mean softer economic conditions in the euro area the longer that the virus continues to impact the Chinese economy and global supply chains.

Chinese equities wrap up the week with modest gains

A solid performance on the week

CSI 300

The CSI 300 index closes up by 0.7% while the Shanghai Composite closes up by 0.4% on the day. For the week, the former is up by 2.3% while the latter posts gains of 1.4%.
Chinese authorities continue to keep the calm in the market and the continued injection of liquidity certainly helps in that regard – and it is working.
Both the CSI 300 and Shanghai Composite have pretty much closed the gap from the sharp drop last Monday and this should breathe more confidence among investors ahead of the weekend as coronavirus fears show signs of abating for now.

US stocks end the session down marginally

S&P and NASDAQ snap 3 day winning streak

The major indices are ending the session marginally lower. The S&P index and the NASDAQ index at 3 day winning streak. The Dow has been down 3 last 5 trading days.
The final numbers are showing:
  • The S&P index -5.51 points or -0.16% at 3373.94
  • NASDAQ index -13.993 points or -0.14% at 9711.96
  • Dow -128.11 points or -0.43% at 29423.34
I guess every day does not close with a record.
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