Boeing, Apple, Google top growing list of companies warning about a coronavirus impact

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="China’s coronavirus (Covid-19) outbreak remains largely contained to the mainland and its immediate region. It’s one of the reasons investors have had their faith restored to markets recently, in spite of ongoing fears of a global pandemic.” data-reactid=”15″>China’s coronavirus (Covid-19) outbreak remains largely contained to the mainland and its immediate region. It’s one of the reasons investors have had their faith restored to markets recently, in spite of ongoing fears of a global pandemic.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Despite grappling with the crisis for more than a month, China has yet to stem the rising tide of infections, with the domestic death toll hitting 1,000 on Tuesday.” data-reactid=”16″>Despite grappling with the crisis for more than a month, China has yet to stem the rising tide of infections, with the domestic death toll hitting 1,000 on Tuesday.

Meanwhile, a wide range of industries — including technology, retail, food and travel/leisure — are warning that the disease is hampering their ability to operate in the world’s largest economy, which just began bringing its factories back online this week after the Lunar New Year break.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="A growing list companies have been affected by the outbreak, and are expected to feel the effects through the first half of the year. Among the latest is Boeing (BA), which on Wednesday said the outbreak is affecting Q1 jet deliveries and air traffic, amid widespread travel restrictions and airlines suspending China travel.” data-reactid=”18″>A growing list companies have been affected by the outbreak, and are expected to feel the effects through the first half of the year. Among the latest is Boeing (BA), which on Wednesday said the outbreak is affecting Q1 jet deliveries and air traffic, amid widespread travel restrictions and airlines suspending China travel.

Some economists are waiting to see just how much of an impact it has on the global economy. Yet it is becoming increasingly clear that multinationals with heavy exposure to China will feel the sting during the first quarter of this year, and perhaps beyond.

Federal Reserve chair Jerome Powell has said the U.S. is watching the developments of the virus, but still anticipate a low impact to the country. However, during earnings calls in the past few weeks, the virus has been cited as a material factor going forward.

The numbers are likely to start showing up by March, and multiple year-end earnings calls are already reflecting concern over the impact of the virus.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Emerson Electric&nbsp;(EMR) CEO David Farr told analysts on an earnings call that “for people not to think that it would not be a negative short term, I don’t think they’re thinking straight…It will be a negative for the global economy.”” data-reactid=”22″>Emerson Electric (EMR) CEO David Farr told analysts on an earnings call that “for people not to think that it would not be a negative short term, I don’t think they’re thinking straight…It will be a negative for the global economy.”

Worldwide, there are more than 43,000 active cases, and over 1,000 deaths, mostly in ChinaWorldwide, there are more than 43,000 active cases, and over 1,000 deaths, mostly in China
Worldwide, there are more than 43,000 active cases, and over 1,000 deaths, mostly in China

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Travel bans, shut offices” data-reactid=”34″>Travel bans, shut offices

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="No industry has seen as immediate an impact as travel and leisure, but consumer-facing tech and food companies have sharply curtailed operations in China. Major U.S. restaurant chains such as Starbucks (SBUX), McDonalds (MCD), Burger King and YUM Brands’ (YUM) have shut down many or all stores in mainland China.” data-reactid=”35″>No industry has seen as immediate an impact as travel and leisure, but consumer-facing tech and food companies have sharply curtailed operations in China. Major U.S. restaurant chains such as Starbucks (SBUX), McDonalds (MCD), Burger King and YUM Brands’ (YUM) have shut down many or all stores in mainland China.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="On the mainland, big U.S. technology firms have closed offices or manufacturing plants, and restricted travel to the region. Apple (AAPL) is likely to take a hard hit, with its Foxconn manufacturing plant having resumed minimal operations Tuesday after a significant delay. The production halt in the past few weeks is likely to impact the first quarter, as well as availability of products such as Air Pods.” data-reactid=”36″>On the mainland, big U.S. technology firms have closed offices or manufacturing plants, and restricted travel to the region. Apple (AAPL) is likely to take a hard hit, with its Foxconn manufacturing plant having resumed minimal operations Tuesday after a significant delay. The production halt in the past few weeks is likely to impact the first quarter, as well as availability of products such as Air Pods.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The tech giant is also launching a new phone in March, and it is unclear if it can still make the target launch date following the virus’s impact. Separately, Google (GOOG) has also shuttered all offices in mainland China and Hong Kong, while Nintendo said its popular Switch consoles are sold out in Japan — with future shipments delayed because of the virus.” data-reactid=”37″>The tech giant is also launching a new phone in March, and it is unclear if it can still make the target launch date following the virus’s impact. Separately, Google (GOOG) has also shuttered all offices in mainland China and Hong Kong, while Nintendo said its popular Switch consoles are sold out in Japan — with future shipments delayed because of the virus.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="China is a big part of the supply chain for automakers, and names like General Motors (GM) and Tesla (TSLA) have at least temporarily shut down their operations in the country.” data-reactid=”38″>China is a big part of the supply chain for automakers, and names like General Motors (GM) and Tesla (TSLA) have at least temporarily shut down their operations in the country.

With virus scares cropping up on at least a few ships, cruise liners have been denied entry to several ports and have had to quarantine passengers when a positive case is identified. They have also canceled some trips bound for China and the surrounding region, added additional layers of screening — and banned people who have traveled to the affected region.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Carnival Cruise Lines (CCL) said Wednesday it was expecting a material impact from the virus, which it did not immediately quantify — and that it would consider canceling all cruises to Asia if need be. Meanwhile, Carnival and Norwegian (NCLH) continue to deny passengers with passports from China, Hong Kong or Macau, meanwhile Royal Caribbean (RCL) recently revoked that policy.” data-reactid=”44″>Carnival Cruise Lines (CCL) said Wednesday it was expecting a material impact from the virus, which it did not immediately quantify — and that it would consider canceling all cruises to Asia if need be. Meanwhile, Carnival and Norwegian (NCLH) continue to deny passengers with passports from China, Hong Kong or Macau, meanwhile Royal Caribbean (RCL) recently revoked that policy.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Amid stiffening travel restrictions and a viral spread that’s yet to be checked, major airlines have curtailed and suspended travel to China en masse, until early spring at the earliest. The list includes United Airlines (UAL), American Airlines (AAL), Delta (DAL) and Cathay Pacific (CPCAY).” data-reactid=”45″>Amid stiffening travel restrictions and a viral spread that’s yet to be checked, major airlines have curtailed and suspended travel to China en masse, until early spring at the earliest. The list includes United Airlines (UAL), American Airlines (AAL), Delta (DAL) and Cathay Pacific (CPCAY).

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Ryanair (RYAAY) CEO Michael O’Leary told analysts on the company’s earnings call that “longer term, we don’t think the coronavirus will have any impact whatsoever,” citing past experiences with severe acute respiratory syndrome and the avian bird flu.” data-reactid=”46″>Ryanair (RYAAY) CEO Michael O’Leary told analysts on the company’s earnings call that “longer term, we don’t think the coronavirus will have any impact whatsoever,” citing past experiences with severe acute respiratory syndrome and the avian bird flu.

“More people were likely to holiday in Europe rather than travelling long-haul to Asia…and we would think that will play out again,” O’Leary said. “But we should be wary on the short-term impact.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Luxury and retail bigs like Nike (NKE) and Burberry (BURBY) have also shut down a large number of stores.” data-reactid=”48″>Luxury and retail bigs like Nike (NKE) and Burberry (BURBY) have also shut down a large number of stores.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Anjalee Khemlani is a reporter at Yahoo Finance. Follow her on Twitter:&nbsp;@AnjKhem” data-reactid=”49″>Anjalee Khemlani is a reporter at Yahoo Finance. Follow her on Twitter: @AnjKhem

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Read the latest financial and business news from Yahoo Finance” data-reactid=”56″>Read the latest financial and business news from Yahoo Finance

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