According to the latest reports from the Italian media, the "patient No. 1" in Italy has been found so far. The large-scale outbreak of the new crown in Italy is directly related to the trajectory of "Patient No. 1". Before the diagnosis, the patient had participated in many gathering sports events such as the 10,000-person marathon and football match, and dine with friends many times.
Within half a month, "patient No. 1" affected 50,000 people and 10 towns. It is worth noting that the Italian "patient No. 1" was infected with the new coronavirus after taking a vacation to Hawaii, USA, and had no history of Chinese residence. Therefore, from this perspective, the outbreak of the Italian epidemic has nothing to do with China.
Not only does the epidemic in Italy have nothing to do with China, other infected countries have no direct relationship with China. Researchers in the United States have reinvestigated people who died from the flu, and most have died of the new coronavirus. An elderly person infected with the new coronavirus has never contacted outsiders in rural Japan, and there are also cases in Spain and Iran. So the origin of the new coronavirus is not China! !!
Friends to help turn around, it is best to let unsuspecting foreigners also see that this is not a Chinese virus.
For the innocence of China, please forward, thank you
Italy quarantines millions in virus lockdown around Venice, Milan
A man wearing a protective mask passes by the Coliseum in Rome on March 7, 2020 amid fear of Covid-19 epidemic. — AFP
ROME: Millions of people were placed under forced quarantine in northern Italy early Sunday as the government approved drastic measures in an attempt to halt the spread of the deadly coronavirus that is sweeping the globe.
Prime Minister Giuseppe Conte said on Twitter he had signed off on plans to strictly limit movement into and out of a large area including Venice and the financial capital Milan for nearly a month.
“#Coronavirus, the new decree is finally approved,“ Conte wrote, confirming reports published by Italy’s Corriere Della Sera newspaper and other media.
With more than 230 fatalities, Italy has recorded the most deaths from the Covid-19 disease of any country outside China.
The total number of people infected with the virus worldwide has passed 100,000 while 3,500 have died across 95 nations and territories.
According to Corriere Della Sera, without a “serious” reason that cannot be postponed people will not be allowed to enter or leave the entire Lombardy region around Milan – home to 10 million – as well as areas around and including Venice and the cities of Parma and Rimini.
Museums, nightclubs, gyms and casinos will be closed in these areas, the newspaper reported, adding that the measures would be in place until April 3. — AFP
Chinese police wear AI helmets to check pedestrians’ body temperature
Shenzhen, which shares a border with Hong Kong, police have also begun
to inspect drivers who come into the city with the help of the helmets.
The innovative equipment — named Smart Helmet N901 — is developed by
Shenzhen-based tech firm Kuang-Chi for curbing the epidemic. — Pix from
Daily Mail
https://youtu.be/U3YO9VMa9V4x
AMID the coronavirus crisis, police officers in China have started wearing AI-powered smart helmets which can automatically take pedestrians’ temperatures as they patrol the streets.
According to South China Morning Post (SCMP), the high-tech headgear has an infrared camera attached to it. It will scan the people within the radius of 5 metres which will light up and sound an alarm if anyone within the radius has a body temperature above 37.3°C.
The helmets are equipped with QR codes scanner and facial recognition features. It will display their personal information in a virtual screen inside when a police officer passes by a pedestrian. They are also furnished with Wi-Fi, Bluetooth and 5G connectivity.
SinChew Daily reported that with the help of this helmet, two police officers were able to scan a total of 100 people on the streets in less than two minutes.
The imported COVID-19 cases have become the primary
source of new infection in China as they accounted for around one third
of the daily new cases on Friday, official data suggested Saturday
Malays say they are falling behind other ethnic groups in many fields. They seem to think that it is all because the non-Malays are in control of the economy and the country. The solutions offered to them by their political and religious leaders are the same; they were told that they must unite and that they must follow the real teachings of their religion. It is the same advice given to them all these years since independence. It did not work out to help the Malays and the poor. How much more unity can the Malays achieve, and how much more Islamic can they be?
I wish to offer the Malays a new practical solution to their problems. They need to abandon their political groupings where only Malays are members of that group. They tried UMNO PAS and lately Bersatu; for sixty years now, and what have they achieved? Very little. The Malays should abandon the Malay only parties altogether. They are not only useless but damaging to the welfare of the Malays.
For many years now, we are full of corruption and abuse of power; and where religion has become a political tool. The purity and sanctity of religion are compromised — the need for politics soils religious values every day.
They must now join the grouping that they believe is a "threat "to them. DAP is seen by many as a threat to the Malays, according to these failed Malay leaders. If that is true, then the Malays should join the DAP in droves.
You may say that DAP is a Chinese party, but that's because the Malays refuse to join them. If we all join DAP then DAP becomes a multiracial party where Malays will be fairly represented. It will cease to be a Chinese party. It can be a dominant Malay party; not that it's essential.
DAP is a party in government. Its a strong democratic party. Besides PKR, this is the party that the Malays should join and try to get better economic benefits for them by having a government with good policies for the Rakyat.
Some questioned if the Chinese will share the fruits of the country's economic development with the Malays. Of course, they will. They have been sharing the wealth of the country with the Malays for three hundred years now. Except that in the past; the wealth was shared with the Malay elites.In Perak, the tin miners were partners with the aristocracy. Since the NEP the Chinese were partners with the Malay political leaders. I am sure you must know how many Malay political leaders become wealthy because they have good Chinese and Indian friends. I don't have to elaborate.
In this religious country; PAS leaders tell you that we must elect Muslim leaders first. They conveniently do not follow what they preach. You must know that the big timber tycoons and developers in the country are mainly Chinese. PAS leaders, too, are close to wealthy Chinese people in the business. So you see the Chinese do share their wealth with the Malays.
What must change is that the ordinary Malays like you and me must get together to create a new political force and become a genuine business partner of the non Malays? Why should the Chinese deal with the 'middlemen' like they have done for hundreds of years when they can deal directly with the "Rakyat" to make this country prosperous and to share its prosperity?
The reason why our leaders, both political and religious, want to keep the Malays and the non Malays apart is to make them"relevant' as power brokers. After sixty years of independence, I urge you, the people of this country, regardless of race, to take ownership of the country. Enough of the leaders using the politics of race and religion to divide the people; and enrich themselves.
When the Malays and the non-Malays have real political power and willing to collaborate as one, we can devise policies and programs that will benefit all Malaysians. We can do so directly; addressing the real needs of the people. Only then can we give real development to the people; without the need to continue with the services of the rent-seekers and wealthy politicians and wealthy civil servants.
All the Malays need to change is to abandon their fear of the non-Malays. After all the non-Malays have always been sharing their wealth with the Malays; since the days of Yap Ah Loy, the Perak miners and the estate owners. This time we just have to tweak the formula; Let the non-Malays unite with the Malays. Political and economic benefits will flow to the ordinary Rakyat instead of the elites of this country when politics ceases to be about race and religion.
Relax Non-Malays, Sit
Back & Enjoy The Show! Don’T Over-React – Let Malays Have Their
‘Supremacy’ Day & See If They Like It: Watch Muhyiddin Sweat As Hadi
Demands ‘Hudud’, Najib & Zahid Insist On ‘Free Pardons’ & The
Rest Of The ‘Backdoor Gang’ Clamor & Fight For Posts & Gravy
Train
PUTRAJAYA: Prime Minister Tan Sri Muhyiddin Yassin will be in charge of all ministries and government departments until the appointment of Cabinet ministers, says the latest Federal Government gazette.
The gazette signed on Tuesday by the Chief Secretary to the Government Datuk Seri Mohd Zuki Ali, also stated that the Yang di-Pertuan Agong, pursuant to Article 43 of the Federal Constitution, has appointed Muhyiddin as Prime Minister.
“This Order is deemed to have come into operation on March 1,2020, ” said the notice that was uploaded on the Attorney General’s Chambers website.
“It is notified that the Prime Minister, (Tan Sri) Muhyiddin (Yassin) shall be charged with the responsibility in respect of all departments of the Federal Government and the subjects for which the departments are responsible until the appointment of other ministers in the Cabinet.”
Muhyiddin, who was sworn in as Prime Minister on March 1, met chief secretaries from the Education and Foreign Ministries yesterday.
The newly minted Prime Minister posted pictures on Facebook of him meeting the duo in his office that featured empty shelves and empty tables, a sign of someone who has just moved in.
In the Facebook post, Muhyiddin said Education Ministry secretary-general Datuk Dr Mohd Gazali Abas briefed him on developments and suggestions to upgrade the education sector.
Foreign Ministry chief secretary Datuk Seri Muhammad Shahrul Ikram Yaakob was also seen explaining Malaysia’s current diplomatic relationships and pending international conferences.
“Mohd Gazali gave explanations on developments in the education sector as well as statistics of achievements, and gave suggestions on how to build up the education sector.
“Shahrul of the Foreign Affairs Ministry briefed the prime minister on the current relationship between Malaysia and other countries, as well as collaborations and important conferences which will take place this year, ” said the post.
It is believed that one of the main subjects discussed was the Asia-Pacific Economic Cooperation (Apec) inter-governmental forum that will be held in November in Kuala Lumpur.
GPS, having played the kingmaker in the political saga, expects to be well rewarded. Thus, drawing up the Cabinet list will be a more complicated task this time around, as there are just so many variables that need to be considered.
AS Prime Minister Tan Sri Muhyiddin Yassin thinks about the composition of his Cabinet list, he will certainly need to take heed as to how Sarawak should be rewarded.
There is no doubt that the 18 Members of Parliament from Gabungan Parti Sarawak (GPS) were the ones who made the critical difference in the numbers game last week.
The GPS consists of Parti Pesaka Bumiputera Bersatu (PBB), Sarawak United People’s Party (SUPP), Parti Rakyat Sarawak (PRS) and Progressive Democratic Party (PDP).
It was game over when these lawmakers chose Muhyiddin instead of Tun Dr Mahathir Mohamad to be prime minister.
Sarawak Chief Minister Datuk Patinggi Abang Johari Openg put it aptly when he told the media that “now you know the value of GPS votes.”
He said the ruling state coalition initially supported Dr Mahathir to continue leading the country.
“After that, he resigned. Then he resigned from Bersatu. After that, he was back again. So left, right, left, right, what else to expect?
“That’s why we supported Muhyiddin. At the same time, our Sarawak interest is uppermost, ” he added.
And the rest, as they say, is history.
Datuk Seri Anwar Ibrahim had hoped that GPS would remain neutral at least but the political reality was that GPS had to make a stand.
If there was one big factor that had made up the final decision of the GPS, it has to be the DAP.
Outspoken Deputy Chief Minister Tan Sri James Masing has consistently said that GPS would not support a coalition that included DAP in the ongoing political crisis.
He blamed DAP’s “administrative arrogance” for this, adding that the party did whatever it pleased without listening to others, citing Lim Guan Eng as an example.
He pointed out that the former Finance Minister had announced that Sarawak would go bankrupt within three years when the DAP leader came to the state last year.
The reality is actually the opposite.
In 2019, S&P Global Ratings has affirmed its ‘A-’ rating on Sarawak with stable earnings outlook and said the state’s exceptional budgetary performance and liquidity will likely mitigate its elevated debt, supporting its creditworthiness.
The state’s healthy financial standing and its stable socio-political environment have earned Sarawak commendable investment-grade credit ratings of A-, A3 and AAA by reputable international and domestic rating houses.
A Google search of the financial standing of the country’s largest state is sufficient to show that.
Lim’s hurtful remark, and other past disputes with the DAP, seem to have left a deep-rooted resentment of the party among GPS members, and last week, was payback time.
While it has been said that there are no permanent friends or foes in politics, this doesn’t seem to apply in the case of the GPS in this regard.
At one point, Masing even said the GPS was “more comfortable working with PAS than DAP.”
As the situation turned desperate, Sarawak DAP chief Chong Chieng Jen said the party was willing to make concessions with GPS to keep the Pakatan Harapan government intact, appealing to GPS “to put aside all past political differences and work together with Pakatan to save our country.”
Many interpreted the offer to mean the DAP’s readiness in not contesting in the upcoming Sarawak state elections.
But it came too late as the GPS had already made up its mind after having huddled together for two days at the Ritz Carlton hotel in Kuala Lumpur.
It remains to be seen what the GPS had asked for and what Muyhiddin has to offer.
It will be Sarawak’s gain over neighbouring Sabah as Chief Minister Datuk Seri Mohd Shafie Apdal opted to stay with Pakatan.
A statement from the Sarawak Chief Minister’s Office on Feb 29 said GPS supported Muhyiddin to restore political stability in the country without sacrificing Sarawak’s interest.
It also said that GPS would be friendly to the new Federal Government but was not a member of the Perikatan Nasional coalition.
Some senior leaders of the GPS said privately that they wanted to see what would be on the table but expected to be rewarded accordingly.
Others said that they were prepared to wait till the state elections were over – as these veteran politicians were aware that Pakatan would most certainly use the alliance with Perikatan Nasional as a rallying call against the GPS in the state polls.
Unlike Peninsular Malaysia, Sarawakian leaders are more interested in protecting and keeping their state positions rather than federal posts.
“The interest of Sarawak is more important than the interest of lawmakers, ” Masing told this writer.
But the immediate priority would be to demand a higher oil royalty from the current 5% and if this was a sticky point under Pakatan, it will likely remain so for the new Perikatan Nasional government.
The other is the Malaysia Agreement 1963, or more popularly known as MA63.
The agreement – an 18-point pact for Sarawak and 20-point for Sabah – was signed on July 9,1963, before the formation of Malaysia.
It is an important document safeguarding the rights and autonomy of the two states.
The 18-point and 20-point agreement covers religion, language, constitution, immigration, the position of the indigenous people, finance, tariffs and citizenship.
Sabahans and Sarawakians are understandably annoyed when they hear “orang Malaya” remark that these two states “joined Malaysia”, pointing out that they had, in fact, helped to form Malaysia.
In the peninsula, the governing state leaders are known as state executive councillors but over in Sabah and Sarawak, they are known as state ministers.
That also explains why Malaysians from the peninsula side need their identity card or passport when entering these two states, and state immigration have the right to deny anyone entry.
“Orang Semenanjung” who want to work in these two states have to apply for a work permit.
The same goes for lawyers who wish to appear in the courts of either state – they have to get approval beforehand.
Most Malaysians may not understand fully what MA63 is all about, even if they have become contentious political issues.
But most believe that the Federal Government has not given due recognition to the MA63 or that these safeguards have not been honoured or taken away.
Sarawakians want a greater degree of financial and political autonomy as compared to other states in the peninsula and not end up being merely one of the 13 states in Malaysia.
It remains to be seen how or what posts would be given to the GPS MPs, and whether this state coalition wishes to wait till the state polls are over before moving in but what is certain is that the new Prime Minister certainly cannot ignore the Land of the Hornbill.
Abang Jo’s words (now you know the value of the GPS) would surely ring continuously in the ears of the Prime Minister.
And now, this explains why a tiny country like Malaysia, with a population of over 32 million people, has a big Cabinet – it is simply because the Prime Minister has to accommodate so many geographical and ethnic interests.
It is also very possible that the Prime Minister may announce the appointments in batches, starting with the crucial ones.
This will allow him time to tinker.
Drawing up the Cabinet list will be a more complicated task this time, unlike previously, as there are just so many variables that need to be considered.
Exchanging views: Muhyiddin (from right) with Mufti Datuk Seri Dr
Zulkifli Mohamad Al-Bakri and Chief Secretary to the government Datuk
Seri Mohd Zuki Ali at Bangunan Perdana Putra. — Bernama
PETALING JAYA: With all eyes on who will make it into Prime Minister Tan
Sri Muhyiddin Yassin’s Cabinet, the business sector and moderation
advocates are urging for quality over political loyalty.
Malay Businessmen and Industrialists Association of Malaysia (Perdasama) vice-president Datuk Sohaimi Shahadan said the new Cabinet line-up must include those with enough experience and expertise in their respective ministries.
“They should not be appointed based on political appointment or connection, networking, or to pay back any form of political assistance.
“The individual must be highly educated, experienced, and understands his job scope to strengthen the current government,” he said.
He proposed that the Cabinet should be a mix of old and new leaders from various backgrounds, as well as professionals who could be appointed as senators to become a Cabinet minister.
“We have experienced ministers from the previous government who did not carry any weight, could not perform their duties well and incapable of executing government objectives.
“A minister must be able to connect with those on the ground. For instance, we have many young business people who are doing everything online creatively. We want someone who is capable of connecting with them,” he said.
He urged the government to conduct a holistic review on the composition of the ministries as some could be merged or separated.
“Some ministries have too many agencies and departments under them while others have so few. The government should properly study and come up with a better structure,” he said.
Malaysian Associated Indian Chambers of Commerce and Industry (MAICCI) president Datuk N. Gobalakrishnan said ministerial positions should be given to those who are most qualified even if it means choosing an ordinary party member rather than a president or chairman.
“We would rather the posts be given not based on loyalty or who has the higher post in a party, instead to those who are most qualified even if they are just ordinary members,” he said.
The new government must also look into creating a more business-friendly environment for domestic direct investment (DDI), which has been sidelined in the previous administration’s focus to spur foreign direct investment (FDI), said Gobalakrishnan.
“There is a one-stop centre to give perks such as tax exemption and customs clearance under one roof to foreign investors, but there is no such facility for DDI.
“The government must focus on levelling the playing field for DDI so that the country stops losing local investments that are flowing outside as FDI to countries like Thailand, Vietnam and Cambodia,” he said.
Gobalakrishnan also expressed hope for a special allocation of RM500mil yearly to aid Indian businesses in moving forward.
He said they were put in the same basket as non-bumiputra businesses which caused stiff competition and Indian businesses to be sidelined from securing funds.
“When we are placed in a non-bumiputra basket, fundamentally, or predominantly, other people tend to get the funds rather than Indian businesses,” he said.
Meanwhile, moderation advocates said the main focus for the Cabinet ministers, when appointed, should be to get the economy back on track and to promote unity among a divided nation.
Anas Zubedy said boosting a dampened economy and bolstering unity among Malaysians would be the two “key concern areas” for the new Cabinet.
“The ministers must be individuals who not only can reconcile people between the races but also who can bring the Malays back together,” he said.
He said the Cabinet should be a mix of experienced veterans and young blood, depending on their past records.
“The Umno ministers who did a good job in the past should be brought back. It is about getting things done,” he said, adding that it must not be someone who currently has a court case.
“We must take the best talent from everywhere and I believe this was the best option for our country when the idea of the unity government was proposed,” he said.
Mohamed Tawfik Ismail, the son of former deputy prime minister Tun Dr Ismail Abdul Rahman, said education reforms and national unity would be some of the priority areas the new Cabinet must look at.
He said any potential minister must be financially independent and preferably be from a profession.
“This is so that this person will not only be less attracted to bribes but can resign on principle and go back to his or her profession,” he said.
He added that ministers must also be transparent in their family’s involvement in business. - The Star front page
Calmer days: In this May 9,2018, photo, Dr Mahathir with Muhyiddin
speaking to reporters after the results of GE14 was announced.
Yesterday, the King declared Muhyiddin as the Prime Minister. – AP
“WATCH for the game within the game, ” a tycoon who bankrolls political parties told me over coffee in Kuala Lumpur on Monday.
On that afternoon, Tun Dr Mahathir Mohamad shockingly announced that he quit as the Prime Minister.
The tycoon and I were discussing the botched Sunday game plan to install a Perikatan Nasional (or is it Pakatan Nasional?) government.
Something awry had happened which went against the playbook of the Perikatan Nasional plotters.
Was it because the rule of the game was changed?
Was it that the politicians had played each other out?
Was there a game within a game?
In this fast-paced political game, the entire truth has not surfaced, but soon we’ll know.
Tuesday and Wednesday’s process of the King meeting 220 MPs (except for Dr Mahathir and Padang Regas MP Datuk Seri Nazri Aziz who was overseas) individually looked like a done deal. Pakatan Harapan, Parti Pribumi Bersatu Malaysia (which quit PH on Monday), sacked PKR deputy president Datuk Seri Azmin Ali and his 10 MPs, and other minor parties had endorsed Dr Mahathir.
Then came the game within the game.
On Tuesday, after their MPs met the King individually, PKR, DAP and Amanah (which are in Pakatan Harapan) announced that it had backed PKR president Datuk Seri Anwar Ibrahim.
From a quick MPs calculation, PH with 92 MPs minus Barisan Nasional/PAS/PBRS with about 60 MPs (who not all are voting according to party line) which voted for bubar (Parliament dissolved), it was clear that Dr Mahathir had lost the vote count.
Many thought that the master of the game, Dr Mahathir, kena game (had been played).
On Thursday, Dr Mahathir – without waiting for the King to reveal the outcome of his majesty’s face to face meeting with individual MPs – declared there was no prime minister candidate with a clear majority. The interim Prime Minister announced there would be a special Parliament sitting on March 2 to determine who will be the next prime minister.
However, on Friday, the Parliament Speaker Tan Sri Mohd Ariff Yusof announced that there would not be a special Parliament sitting to determine who will be prime minister.
On that day, Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah decided to give party leaders who have MPs in the Dewan Rakyat the opportunity to nominate a prime minister.
The frontrunners to be our next PM were Bersatu president Tan Sri Muhyiddin Yassin and PKR president Anwar. Seemingly, Dr Mahathir was out of the game.
The fight was shaping up to be Perikatan Nasional (a Muslim and Bumiputera majority government) versus Pakatan Harapan (a non-Muslim majority government).
From the WhatsApp messages I could barely have time to monitor, the rakyat choice depended on who they hated the most.
Some who hated DAP supported the Perikatan Nasional government and those who hated Umno and PAS preferred the Pakatan Harapan government.
Grassroots politicians were getting emotional. Some were hysterical that they have to swallow the hate words they uttered against their political enemies as they might be in the same government.
Last night, a retired veteran journalist WhatsApp-ed me: “Instead of the tik-tok of the horse race and the numbers, why isn’t anyone reporting what this is all about: a battle for Malaysia’s future and what kind of country we want to be?
“A Malaysia focused on race and religion, or a Malaysia focused on building a better tomorrow in the Digital Age?”
I agree with him.
But the game is played fast and furious that we’re trying our best to keep pace with it.
Based on a quick calculation of MPs from political parties, in the numbers game, Muhyiddin had more than Anwar.
Bersatu 36 MPs (from 26 overnight it increased by 10 MPs with Azmin and gang), Umno 39 MPs, PAS 18 MPs, Gabungan Parti Sarawak 18 MPs and minor parties, Muhyiddin won.
Whereas Anwar only had his Pakatan Harapan ally (PKR 39 MPs, DAP 42 MPs and Amanah 11 MPs).
Game over for Anwar?
No. On Friday night, it became clear that the party leaders had no control of their MPs who had different allegiance. Karma had struck Bersatu – it was civil war between Team Mahathir and Team Muhyiddin.
Some sleeper MPs were awakened to go against their party leader.
Some MPs are honourable.
Some are for sale.
Not surprising as this is the games politicians play.
The shocker was yesterday. Dr Mahathir was back in the game.
The interim Prime Minister had thrown his name in the Game of Thrones. He was now the game-changer.
Some of those who backstabbed him when they met the King on Tuesday and Wednesday were now backing him.
Yesterday, the situation was very fluid. Too many games played and play outs.
I would have preferred a bubar endgame.
Let the rakyat be the kingmakers instead of MPs.
The endgame turn out to be the king declaring Muhyiddin as Prime Minister.
To the winners of the Game of Thrones, I wish them: GGWP (Good Game, Well Played).
Tourists wearing protective masks walks by
the Duomo in central Milan on February 27,2020 amid fears over the
spread of the novel Coronavirus. - The number of COVID-19 infections in
Italy, the hardest hit country in Europe, hits the 400 mark late on
February 26, with 12 deaths. (Photo by Miguel MEDINA/ AFP)
But keep cool, negative volatility will likely be followed by positive volatility
The coronavirus (Covid-19) outbreak has officially reached Western shores.
Since last week, the virus has spread to Europe, Brazil and the Middle East.
New cases have emerged across Europe.
There have been more than 81,000 people infected with nearly 3,000 deaths so far.
Just the previous Wednesday on Feb 19, stocks in the US were complacently at record highs, never mind that Asian markets were roiling and taking huge hits, thanks to the coronavirus that first took roots in Wuhan, China.
Asia has been battling this disease since January. Markets have been volatile but have since recovered as the number of infections have reduced and governments have been diligent at handling the disease.
It is like the domino effect, with the same reactions, panic and emotions that happened throughout Asia now migrating to the West.
It is almost deja-vu, seeing the fear and market reaction, no doubt the impact to the Dow and S&P 500 has a significantly larger impact.
The Covid-19’s largest impact is the fear it has transmitted with rapid speed.
In the US, stocks fell for a sixth straight day on Thursday, with the S&P 500 price index falling 4.4% and bringing this pullback officially into correction territory. On a six-day basis, the Dow Jones was down 13.4% at 25,766.64.
This plummet followed California governor Gavin Newsom’s revealing on Thursday that the state was monitoring 8,400 people for potential Covid-19 infections.
Adding to the bleak outlook, Goldman Sachs slashed its profit outlook and warned the outbreak could cost Donald Trump his reelection in November.
The MSCI all-country global index has dropped more than 7% over this six-day period. Considering stocks were at record highs the previous Wednesday, this is very harsh and painful.
Why, Tesla was all the hype earlier in February. It was US$901 on Feb 21, and new higher target prices were being touted by analysts, nevermind that the stock still didn’t have a price to earnings ratio.
In the last five days, Tesla’s share price had tumbled more than US$200 or 32.7% as of Thursday to close at US$679.
Don’t panic
For the average investor, panic has likely set in.
Whose confidence level would not be shaken with a 12% decline in the S&P 500 in six trading days?
Now talk of a 20% decline is starting to emerge.
Meanwhile the 10-year US treasury yield dropped below 1.3%, remaining in record-low territory.
The downward spiral in oil also continued with WTI crude toppling 2.71% to trade at US$47.41 per barrel on Thursday.
Brent oil hovered at the US$51.42 level.
So just barely two months into 2020, it is Covid-19 which has been responsible for crushing markets and dismantling profits across the globe.
Many have already slashed market forecasts for the year.
In the past two market stories featured on StarBizweek, readers would know that Fisher MarketMinder thinks that fears over the virus’ market impact are overdone. It thinks that this is part of a longer-running pattern prevalent throughout this bull market.
“The stock market will do what it does – rise and fall.
“If you’ve got a plan based on your risk tolerance and investment horizon, don’t let fear make you swerve in the wrong direction and lose traction.
“Panic is never a good investment strategy, ” says Fisher MarketMinder.
It adds that Covid-19 is grabbing attention because it is new and somewhat novel, but that doesn’t mean its economic effects far outweigh more familiar diseases.
The Center for Disease Control and Prevention estimates that there were 34,200 deaths in the United States from influenza during the 2018-2019 flu season.
For infections of Covid-19 outside of China, the mortality appears very low.
Furthermore, the people who are dying tend to be the old and immuno-suppressed or otherwise sick.
“Supply chain disruptions as officials work to contain the outbreak probably dent growth temporarily, but markets are efficient and likely pricing in these expectations as companies issue statements.
“Short-term volatility could linger, but patience should pay off, in our view, ” it adds.
As legendary investor Ben Graham once said, stocks are a voting machine in the short term and a weighing machine in the long term.
“Sentiment wins in the short term, but fundamentals matter most over more meaningful stretches.
“The ‘why’ and ‘how much’ behind sentiment swings strike us far less important.
“The emotional swing itself is what matters.
“Market fundamentals likely didn’t change on a dime seven days ago, ” says Fisher MarketMinder.
Thursday’s drop simply put US stocks back at mid-October levels.
Furthermore, the world hasn’t fundamentally changed.
While there is no way to know when this drop will end or how much further it will fall, no drop is permanent.
“Whether the rebound starts in days or weeks, whether it is fast or slow, if you have held on thus far, we think you ought to reap the good that comes with the bad.
“Corrections hurt your long-term returns only if you don’t participate in the rebounds that follow them.
“Selling may feel good at a time like this. But when you remove emotion from the equation, all it does is transform a market decline into an actual portfolio loss, ” says Fisher MarketMinder.
Another investor who is cheering is one of the smartest investors in the world, Warren Buffett, chairman and CEO of Berkshire Hathaway.
He says the stock market rout we’re witnessing today is “good for us.”
“We’re a net buyer of stocks over time, ” he says on CNBC.
“Most people are savers, they should want the market to go down.
“They should want to buy at a lower price.”
Buffett’s comments came as Dow futures were down by about 800 points or 3% on Monday as stocks around the world plunged as the Covid-19 outbreak escalated.
Regarding the coronavirus specifically, Buffett made clear that he is “not a specialist.” And he warns that “a very significant percentage of our businesses one way are affected.”
However, he reiterates that investors should be more focused on the long term, not the short term.
“If you’re buying a business, and that’s what stocks are... you’re gonna own it for 10 or 20 years, ” he says.
“The real question is has the 10-year or 20-year outlook for American businesses changed in the last 24 hours or 48 hours?” the legendary investor asks.
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