EARLY NOTES
Good website for China news:
https://gisanddata.maps.arcgis.com/apps/opsdashboard/index.html#/bda7594740fd40299423467b48e9ecf6
The death toll is now being reported at 362. Confirmed cases as we write this is 17,489. Mainland China remains the bulk of it.
The People’s Bank of China said it will inject 1.2 trillion Yuan ($174 billion) into the market to help with any liquidity issues. Central banks continue to have no limitations and no accountability.
The China Securities Regulatory Commission issued a directive to brokerage houses to bar clients from shorting stocks. The length of this directive is up in the air. It is being reported China oil demand is down a whopping 20%. We gather this number is open to change but nevertheless, anything close to that number is plain scary.
Apple originally said it was going to shut only 1 store. On Saturday, it said it would shut all 42 of its stores in Mainland China. This is Apple’s 3rd biggest market making up approximately 1/6th of their sales. Wynn’s Resorts gets 75%+ of their sales and earnings from Macau. Estimates are that traffic has been down by more than 2/3 since the outbreak. The stock has dropped from $153 to $126 in 9 trading days.
We bounce this morning. We question duration and strength but with central banks already doing their thing, anything is possible.