Current And Projected Implications Of COVID-19 Outbreak On US Businesses

ALBANY, Calif. - April 7, 2020 - PRLog -- Coronavirus disease (COVID-19) is an infectious disease caused by a new virus. The disease causes a respiratory illness with symptoms such as a cough, fever, and in more severe cases, difficulty in breathing. Coronavirus disease (COVID-19) is an infectious disease caused by a new virus. The majority of nations are suffering from the same and US is no exception.

Current Situation of US

• US lost 5,779 US$ millions due to China's slowdown through global value chains. The country has since witnessed   lower valuations and increased volatility in its financial market
• In the US, the non-financial debt of large companies has amounted to US$10 trillion in 2019, up from around US$4.8 trillion in 2003. The disruptions of the supply chain are making it difficult for the US firms to finish their production
• The country has also witnessed a low consumer buying trend as they are worried about the spreading of the virus
• Mass flight cancellations to and from China, which has been designated as a "do not travel" destination in the US means almost no Americans are traveling to China and no Chinese tourists are not traveling overseas
• MNC's and luxury goods suppliers who rely on Chinese consumers have already suffered, with some already announced the closure of stores
• Traditionally, US treasuries were seen as a very safe investment. However, money coming into the United States from abroad typically strengthens the dollar value, and a stronger dollar value eventually makes US exports costlier, making it more difficult for US firms to compete globally
• US interest rates have fallen to historic lows in a sign of increasing economic uncertainty. The 10-year Treasury yield fell from 1.69% to 1.50%  in the last week of January after remaining steadily around 1.7% to 1.8% throughout 2019 and early 2020
• Shorter-term interest rates have increased compared to longer-term interest rates, the opposite of what happens in normal economic times

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