5 Things You Need to Know About Coronavirus — As It Spreads and Impacts Global Financial Markets

CDC Warning and Recommendations:

The CDC advises:

"While the immediate risk of this new virus to the American public is believed to be low at this time, everyone can do their part to help us respond to this emerging public health threat.

It’s currently flu and respiratory disease season and CDC recommends getting a flu vaccine, taking everyday preventive actions to help stop the spread of germs, and taking flu antivirals if prescribed.

If you are a healthcare provider, be on the look-out for people who recently traveled from China and have fever and respiratory symptoms.

If you are a healthcare provider caring for a COVID-19 patient or a public health responder, please take care of yourself and follow recommended infection control procedures.

If you have been in China or have been exposed to someone sick with COVID-19 in the last 14 days, you will face some limitations on your movement and activity. Please follow instructions during this time. Your cooperation is integral to the ongoing public health response to try to slow spread of this virus. If you develop COVID-19 symptoms, contact your healthcare provider, and tell them about your symptoms and your travel or exposure to a COVID-19 patient.

For people who are ill with COVID-19, please follow CDC guidance on how to reduce the risk of spreading your illness to others."

Wall Street Performance Over the Past Two Days

The S&P Dow Jones lost $1.7 trillion in value from the U.S. stock market.

The Wall Street Journal reports, “A rout in global financial markets deepened Tuesday, sending the Dow Jones Industrial Average down nearly 900 points and heightening the anxiety of investors around the world.

The latest wave of selling marked the blue-chip benchmark’s worst two-day percentage decline in two years. Fear rippled across financial markets, sending the yield on the 10-year U.S. Treasury note to a record low and crude-oil prices tumbling below $50 a barrel.

For much of the past several weeks, money managers have been fixated on one issue: the potential for a growing coronavirus epidemic to hit global economic activity.”

Guidance from U.S. Health and Human Services

Alex M. Azar II of the U.S. Health and Human Services said in a press conference on Tuesday, "As of this morning, we still have only 14 cases of the China coronavirus detected in the United States, involving travel to China or close contacts with travelers; 3 cases among Americans repatriated from Wuhan; and 40 cases among American passengers repatriated from the Diamond Princess.

There are five major priorities within the supplemental, which I underscored this morning before the Senate appropriations committee.

First, we need to expand our surveillance work, building on an existing system we have within CDC's influenza surveillance network.

Second, we will need funds to support public health preparedness and response for state and local governments for what could be a very large-scale response. This support complements the significant funds that these partners have received from CDC for preparedness—about two-thirds of a billion dollars a year in recent years.

Third and fourth, we need to support development of therapeutics and fourth, we need to support development of vaccines.

Given the scale of this outbreak, the private sector sees a real market for both kinds of countermeasures, as well as for diagnostics, but federal funding and guidance can help accelerate this work. Dr. Fauci will address the current status of that work in more depth.

Fifth and finally, we need funds for the purchase of personal protective equipment for the Strategic National Stockpile, a topic that Dr. Kadlec can address."

Big International Trade Impact

Whether it is the production of iPhones or global shipping -- international trade is going to have a significant decrease in the first quarter.

"The largest U.S. gateway for seaborne imports from China is projecting a 25% drop in container volumes this month as the economic impact of the coronavirus spreads across shipping operations far from the outbreak.

Container ship operators have canceled 40 sailings at the Port of Los Angeles between Feb. 11 and April 1, mostly for vessels coming from China, port Executive Director Gene Seroka said in an interview. The first quarter of this year I project that we’re going to be down 15% year-over-year, with a heavy bit of that related to the coronavirus,” he said. The decline has accelerated, he said, with February cargo volumes expected to be down 25% from the same month a year as the epidemic’s impact ripples through supply chains, according to the Wall Street Journal.

The Lack of Equipment in the U.S.

Last week, the Washington Post reported, "As the number of coronavirus cases in China skyrocketed in the past week, a small Texas manufacturer was inundated with orders from 8,000 miles away. Prestige Ameritech, the largest full-line domestic surgical mask manufacturer, was producing 600,000 masks each day but struggling to meet demand."

On Tuesday the shortage became the topic of a showdown between members of Congress and representatives of President Donald Trump's administration.

The Hill reports, "Sen. John Kennedy (R-LA) slammed acting Department of Homeland Security (DHS) Secretary Chad Wolf on Tuesday for Wolf's lack of answers during a tense grilling on the U.S. response to the coronavirus outbreak.

In a subcommittee hearing on the 2021 DHS budget, Wolf failed to provide specific answers to Kennedy's questions, including one on how many people are predicted to become infected with the new strain of virus.

'We’re working with HHS to determine that,' Wolf said, repeatedly deferring to the Department of Health and Human Services.

'Yes, sir, but you’re head of Homeland Security and your job is to keep us safe,' Kennedy shot back, often talking over Wolf. 'Don’t you think you ought to check on that?”