Coronavirus started in December 2019 is now reportedly expected to become a pandemic virus, at least according to some "cheap" expert (as in paid-for) who was rolled-out by BBC News. The globalisation of the virus was the headline-news story of the day. As we will observe, the re-named virus, officially "covid-19" is causing business and economic disruptions.
Coronavirus Distraction More Than "Disruption"
Never mind that being the headline news, but on the same day of 24th February 2020, on which journalist Julian Assange is facing a sham hearing on whether he should be extradited to America. His alleged crime is exposing war-crimes of America via WikiLeaks. Journalistic press-freedom should be paramount concern for the world. This hearing in Woolwich Crown Courts (see below about this Court) is in remote South East London, where he is being held in H.M.P Belmarsh Prison. (Update here: "Your Man in the Public Gallery – Assange Hearing Day 1" and another from Consortium News with Live Updates From The Hearing Here.)
"Woolwich Crown Court is nothing but the physical negation of the presumption of innocence, the very incarnation of injustice in unyielding steel, concrete and armoured glass. It has precisely the same relationship to the administration of justice as Guantanamo Bay or the Lubyanka. It is in truth just the sentencing wing of Belmarsh prison." Craig Murray 25/02//2020
Yet "Disruption" Evidenced By Stock Markets Tumble
Fake Tweet! Source:Twitter @LineBallTennis, CNN
The Importance of Business-Cycles In Forecasting
We at Financial Portfolio Management understand business cycles since the fledgeling organisation's founder initiated a dissertation when at Middlesex Unversity in his youth about business-cycle boom-and-bust, specicially studying the "Kondratieff Cycle" economic cycle factors.
Professional investor greed and fear means share price valuations are currently trending ever higher at near record levels (see proxy FTSE100 chart below). These dizzy heights justified or otherwise WILL cause speculator trader and real-money investors to expereince wild uncertainties / swings, especially before settling into a secular reversal or possible up-trend. This is a precept about technical chart analysis and mean reversion in market behavioural analysis. Which is more short-term orientated cycles of stocks and stock markets.
|Proxy FTSE-100 Near Record Levels. Source: Yahoo, FPM|
So what is the fundamental long-term catalyst for putting the brakes on global economic activity? Which is undoubtedly causing catastrophic human-added climate change. The evidence of climate-changing is before our eyes via high definition mainstream television news. We've seen flooding in wetter climates, droughts with forest fires and bush fires in drier climates, and so on. The evidence is numerous. Mainstream news source nowadays bang-on about it' but not as prominently featured 10-20 years back sadly; or even further back when the science and extrapolation of trends first suggested "global warming from anthropic activities".
Slowdown Or Disruption Of Economic Activity
|FPM's Understanding of Neoliberalism in Manifestation - Source: Naomi Klein "The Shock Doctrine" 2007|
Of course referring to the wealth-inequality issue, and circumstances of 2007-09 global financial-crisis. Especially how the ridiculed taxpayer via its government saved banks and other financial institutions from insolvency. After banks' self-regulating profligacy of virtually gambling. And of course regime-change agenda followed by western democracies in the Middle East / Gulf region. To keep the war-machine in these old-power countries chugging along. Again, who is paying for waging wars in the Gulf? Yep, the #stupidelectorate taxpayer! (Stupid Electorate hashtag was coined for some of the UK voters after the December 2019 General Election defeat in UK of Jeremy Corbyn and Labour Party)
"Stealth Super Slowdown" has to happen in the name of saving the planet and environment as we know it. We all acknowledge China's emergence to eminent economic super-power is the future driving-engine of global economic growth in the 21st Century. So by China peddling its soft-power of business-wealth potential, it can perhaps direct a new sustainable way of achieving economic life other than from fossil-fuels based industries. But the shock-impetus towards stealth slowdown of China's powerhouse economy is underway, see below excerpt from Reuters. Reminder that generally China's economy has been growing at double-digit rate or averaging 7% economic growth.
|Economic data for January had been fairly upbeat, but analysts have since sharply cut their forecasts for economic growth in China. J.P. Morgan now expects Chinese GDP to shrink 3.9% this quarter, while Capital Economics sees it outright contracting. Reuters 27-Feb-20|