Good morning! We’re covering the economic effects of the coronavirus outbreak for Brazil. How fires in Australia can benefit Brazilian meat producers. And the latest feud within Odebrecht that could push the company into an even bigger crisis.
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How coronavirus fears caused Brazilian markets to plummet
Investors began panicking on Monday, after recent developments concerning the coronavirus outbreak. The World Health Organization has raised its risk of a global outbreak to “high,” after Chinese officials suggested people may spread the virus before showing symptoms and the number of nations with confirmed coronavirus infections reached 15. A coronavirus crisis could drive China’s economy into reverse, said Pantheon Economics in a new research note.
Why it matters. For Brazil’s economy, which is still trying to gain momentum, risks to the global economy can deliver a big blow. In 2003, a SARS epidemic caused a 0.1-to-0.5-percentage-point drop in the global GDP. For Brazil, short-term impacts will be felt on the stock market and in currency exchange rates—but long-lasting effects will depend on how the coronavirus outbreak develops in China, where almost 3,000 cases have already been confirmed.
Big hit. Commodity companies had a...