China's economy is the second largest in the world, and with America's economy so beholden to it for supply and stability, the affects of COVID 19 reach far beyond the Chinese borders. As the virus spreads internationally, sectors across the world brace for dips in profit. Things will remain uncertain for weeks to come as we wait to see the full impact of the spread of the virus, but for now, these eight industries have been affected the most by the pandemic.
Chinese consumers account for "more than a third of the value of so-called personal luxury goods purchases, which includes apparel, beauty and jewelry," according to Financial Times. Joëlle de Montgolfier, director of Bain's luxury practice, said the coronavirus could have a "double whammy effect" on the luxury sector. "Not only will Chinese people buy less domestically during the key New Year shopping season, they will also have to cancel trips abroad, during which they often buy luxury goods," she said.
The wholesale price of chicken has dropped as much as 70% in India specifically due to rumors that the virus can be transmitted through eating poultry. Similar drops in the value of poultry have been reported all over the globe, particularly in countries with many cases of COVID-19.
According to the Guardian, "more than 85,000 flights touching China have been canceled in the three weeks since the outbreak closed Wuhan airport on 23 January." While these cancellations have the largest impact on airlines, there has also been a notable decrease in flying globally—not just to China—because of customers fears of contracting the disease. "If people take a view they shouldn't be traveling or shouldn't go to a place or be on planes with people who might have been to certain places, they're less likely to travel," said Andrew Charlton, a Geneva-based aviation analyst. "It's going to have an impact on passenger numbers."
Wuhan (the center of the COVID 19 outbreak) itself is a major hub for the automobile industry, particularly for European carmakers. Renault, Peugeot, Volkswagen, BMW, and Jaguar Land Rover, Honda, have still not reopened factories run with Chinese partners. These delays could be catastrophic to the car industry because "carmakers hold very little stock at their assembly operations, instead relying on just-in-time supply chains that see parts delivered to the assembly plant hours or even minutes before required in the factory."
The Chinese were responsible for the majority of the growth in global demand for oil last year, but the International Energy Agency expects demand to fall in coming months for the first time in more than ten years thanks to the far reaching affects of COVID 19.
Cases of COVID 19 have been confirmed or suspected on upwards of 5 cruise ships so far, and thanks to the close quarters of these ships, confirmation of the disease results in infected ships being quarantined at sea. Obviously, that makes it an unappealing time to book a cruise, and to make matters worse for the cruise industry the US State Department just put out a statement saying: "U.S. citizens, particularly travelers with underlying health conditions, should not travel by cruise ship." To try to bolster flagging bookings, many cruise lines are now offering major discounts and lenient cancellation policies.
Coronavirus fears have already canceled SXSW, a major American music festival, and it's likely that more festivals will be called off in coming months. The music industry isn't the only leisure activity being affected. Macau, a popular destination for gambling off the coast of China, reported an 80% dip in visitors from China compared to the same day last year. As COVID 19 continues to spread, it's likely that casinos, concert venues, sporting events, theme parks, movie theaters, and other destinations for leisure activities will close their doors across the world.
Analysts expect the virus to have a major impact on world banks thanks to rapid slowdown in loan growth and a reduction in fee income. Many banks are also operating below normal standards because of the shuttering of many offices across China and other infected cities. For example, Swiss bank UBS told its workers in Hong Kong to stay home for at least two weeks if they have travelled to China recently.
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Whether you are looking for a new job or trying to grow in your current one, getting a certification can be a great way to improve your skills.
Anyone can put that they are proficient in a computer program on their resume but having a certificate can help you stand out amongst the competition and give credence to the strength of your skills.
But what's the best way to invest in yourself without breaking the bank? Some certification programs can cost hundreds if not thousands of dollars. We are going to walk through six of the best certifications you can get for $100 or less.
Who is it best for: Those who work with analyzing and presenting data.
Cost: $100 for Tableau Desktop Specialist; additional certifications are available for a larger fee.
More companies than ever see themselves as data companies. Being able to understand data and use it to guide decisions at your company is often critical to taking on a leadership role. Not to mention, being able to present the data in a clean, attractive, and compelling way can help get buy-in from others in your organization or clients. That's why Tableau is a great tool to have in your toolbox.
Tableau allows you to create interactive visual analytics dashboards. In layman's terms, you can take data; create graphs, maps, or charts; and then allow end-users to interact with these graphics to better understand the information. It's a fantastic tool allowing non-technical users to gain insights for data-driven decision-making.
Tableau Desktop Specialist certification starts at $100 and has no expiration date. There are many videos on Tableau's site to prepare for your exam as well as Tableau Starter Kits allowing you to play around and learn the different capabilities of the program. Tableau offers a 14-day free trial as well as free license for one year for students.
Additional certifications after Desktop Specialist are Desktop Associate and Desktop Professional. Those working with a Tableau server may also be interested in a separate certification as a Server Associate or Server Professional.
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When you take out a loan for a car, charge something to your credit card, or get a personal line of credit, there is going to be an interest rate that applies to your loan.
A lot of different factors go into what you will be charged, including your own personal credit score. But even those with flawless credit still see a minimum charge that they can't get around. That all goes back to the Federal Funds Rate.
One thing consumers rarely realize is that all of our banks are lending money to each other every night. Banks are legally required to maintain a certain percentage of their deposits in non-interest-bearing accounts at the Federal Reserve to ensure they have enough money to cover any withdrawals that may unexpectedly come up. However, deposits can fluctuate and it's very common for some banks to exceed the requirement on certain days while some fall short. In cases like this, banks actually lend each other money to ensure they meet the minimum balance. It's a bit hard to imagine these multibillion-dollar financial institutions needing to borrow money to tide them over for a bit, but it happens every single night at the Federal Reserve. It's also a nice deal for those with balances above the reserve balance requirement to earn a bit of money with cash that would normally just be sitting there.
The Federal Reserve
The exact interest rate the banks will charge each other is a matter of negotiation between them, but the Federal Open Market Committee (FOMC) (the arm of the Federal Reserve that sets monetary policy) meets eight times a year to set a target rate. They evaluate a multitude of economic indicators including unemployment, inflation, and consumer confidence to decide the best rate to keep the country in business. The weighted average of all interest rates across these interbank loans is the effective federal funds rate.
This rate has a huge impact on the economy overall as well as your personal finances. The federal funds rate is essentially the cheapest money available to a bank and that feeds into all of the other loans they make. Banks will add a slight upcharge to the rate set by the Fed to determine what is the lowest interest that they will announce for their most creditworthy customers, also known as the prime rate. If you have a variable interest rate loan (very common with credit cards and some student loans), it's likely that the interest rate you pay is a set percentage on top of that prime rate that your lender is paying. That's why in times of low interest rates (it was set at 0% during the Great Recession), a lot of borrowers should go for fixed interest rate loans that won't increase. However, if the federal funds rate was relatively high (it went up to 20% in the early 1980's), a variable interest rate loan may be a better decision as you would be charged less interest should the rate drop without the need to refinance.
The federal funds rate also has a major impact on your investment portfolio. The stock market reacts very strongly to any changes in interest rates from the Federal Reserve, as a lower rate makes it cheaper for companies to borrow and reinvest while a higher rate may restrict capital and slow short-term growth. If you have a significant portion of your investments in equities, a small change in the federal funds rate can have a large impact on your net worth.
Whether you're leaving a job involuntarily, departing for something new, or just want to prepare for the unknown, it is smart to understand all your options regarding your 401k.