ISA Coronavirus Update (28th of April)

Daily Summary

The number of cases of the coronavirus (Covid-19) approached 3.1 million worldwide, but the fact that the growth rates for the number of new cases has not risen significantly in recent weeks means that it is unlikely that the number of cases will reach four million by the end of the month, the expected number of cases for the end of this month that had been forecast at the beginning of the month.

The number of Covid-19 cases in the United States surpassed the one million mark, giving the US more diagnosed cases than the next five highest countries combined.  Nevertheless, infection rates in the US remained lower than those of most of Europe’s largest countries.

The number of diagnosed cases (20,000) of the coronavirus in Sub-Saharan Africa has risen sharply in recent weeks, but the number of fatalities (470) attributed to the pandemic remain relatively low in that region.  This has raised hopes that Sub-Saharan Africa may be spared the worst effects of this pandemic, although experts warn that it is far too early to draw any conclusions from this data.

While the number of new cases of the coronavirus in Turkey continued to rise, the rate of increase in the number of new cases finally began to slow in recent days.  Nevertheless, the number of active cases in Turkey (76,000) began to approach those found in countries such as Spain and France.

Key Developments

Latin America on Lockdown: Governments across Latin America continued to impose more stringent lockdown measures as fears over the coronavirus’ spread in that region continued to grow.  In Argentina, all domestic and international flights were suspended until September.

The Beleaguered Airline Industry: Few industries have been more severely impacted by this crisis than the airline industry, with tens of billions of dollars already being allocated for bailing out airlines around the world.  The longer this crisis persists, the more aid this industry will need.

Trend to Watch

The government of Chile announced that it was planning to issue certificates to people who have recovered from the Covid-19 virus in order to allow them to return to work.  However, experts have warned that there is no proof of immunity for survivors thus far.

The Coming Days

As more economic data is released in the coming days that will almost certainly confirm the severity of the current economic downturn, share prices that have rebounded strongly in recent weeks could take a major battering.