The corona virus has had a major impact on the global economy. Australia is going to cut its interest rates in order to not go into a recession as they have not had one in the last 28 years. The banks of Australia reduced interest by a quarter percentage to an all time record low of 0.50% after the coronavirus outbroke. The outbreak of the virus led to issues with exports, foreign education and tourism. The US and Chinese economy is much weaker than expected. The virus has infected more than 80,000 people and killed more than 3,000. This disrupts global supply lines and jolts stock markets. During the past week the confirmed cases outside of China have quickly escalated. Many banks in central Asia have cut interest rates to support growth as we get over this outbreak. Oxford Economics says that the damage from the corona virus will be larger, broader and longer lasting than any other virus spreads in the past. Last year Australia had three rate cuts in order to help reverse a downturn in its housing market. It is difficult to tell how large and long lasting the economic effects will be.
Tuesday, March 3, 2020
Australia Cuts Interest Rates as World’s Central Banks Weigh a Response to Coronavirus
https://www.wsj.com/articles/coronavirus-drives-interest-rates-lower-in-australia-11583213364?shareToken=stb9d7b6fba649420c9f498798e58ced4f
Coronavirus Slams U.S. Hotel Industry’s Global Operations
Biggest brands like Marriott, Hyatt report declines in Asia businesses; Hilton says outbreak could hurt full-year earnings
The Coronavirus is having a global impact, there is no doubt about that. We are seeing small business facing production problems from their suppliers in China, there are shortages of face masks and adequate medical gear, and stock markets are as volatile as ever due to the Coronavirus.
In this article it talks about how the Hotel industry is seeing reservations and profits plummet due to the scare of the coronavirus. People are not wanting to travel and potentially be caught in the middle of a pandemic where they may be stuck in the place they are traveling. The other side to this is the fact that hotels, airlines, and even cruise lines are starting to lower prices to entice the people who are not afraid or are willing to travel. What is interesting as it relates to marketing is how these businesses who are suffering lower sales and profit can market this situation in a positive light to entice and bring in new business. It may not be a good strategy to market a "coronavirus sale" or a sale related to the virus, so marketers will have to figure out marketing schemes and plans that can bring them business but at the same time not scare away potential customers.
Retailers Confront Coronavirus Uncertainty
Retailers Confront Coronavirus Uncertainty
Target projected improved sales growth in the current quarter.
PHOTO: BESS ADLER/BLOOMBERG NEWSMonday, March 2, 2020
Tim Cook and Apple Bet Everything on China. Then Coronavirus Hit.
Tech giant Apple acknowledged that it would not get the expected revenue for the first quarter of the year due to the coronavirus outbreak, which has hurt the sale and production of iPhone phones in China, the company said in a statement released this Monday.
"We do not expect to meet the revenue we had anticipated for the March quarter," the company admitted.
The Apple company has a heavy reliance on China: it makes a fifth of its sales in the Asian giant and relies on Chinese workers to manufacture and assemble much of the components of its iPhones, iPads, and Mac computers, which, then, sells worldwide.
Apple is one of the first companies to recognize that it will suffer consequences for the impact of coronavirus.
That's why Apple acknowledged on Monday that both the sale and production of its products had been affected by the coronavirus, which already leaves more than 1,800 dead in China alone.
"The shortage of iPhone supplies will temporarily affect worldwide revenue," he stressed.
Explicitly, he explained that the production of their iPhone phones has declined because Chinese employees are re-employment "slower" than anticipated.
And he also claimed that demand in China has also fallen. "All of our stores in China and many of our partners' stores have been closed. Also, the open establishments are operating with reduced hours and very few customers," the firm said.
Companies Step Up Efforts to Keep Workers From Quitting
Companies Step Up Efforts to Keep Workers From Quitting
Many companies are attempting to raise benefits within their employees in order to retain them and keep them from finding jobs that are offering a higher pay. Last year, it was noted that many employees quit their jobs because of better offers elsewhere. The labor market has decreased and there are fewer people looking for jobs than companies offering, resulting in a surplus. Additionally, it has become about two times more expensive to replace employees. Most employees end up receiving 15% increase in their salary than the two to three percent they would receive in their current job. This has driven many to continously quit and search for jobs that pay higher. Employers recognize this and have incentivize employees by providing better benefits. In order to reduce the costs of replacing employees, they are attempting to keep employees by providing clearer paths to promotions, flexible work arrangements and benefits that can help with their life outside of work.
I think this is such an interesting article because as we prepare to enter the job market, we are under the impression to accept any job that comes our way. From my personal experience, I have felt that it is very competitive with so many applying for the same jobs as I am. From the article, it looks like there are not many looking for jobs which feels a little hopeful for the future.
https://www.wsj.com/articles/companies-step-up-efforts-to-keep-workers-from-quitting-11583058602?mod=hp_lead_pos13
https://www.wsj.com/articles/companies-step-up-efforts-to-keep-workers-from-quitting-11583058602?mod=hp_lead_pos13
Sunday, March 1, 2020
Amazon Opens Cashierless Supermarket
 |
| Amazon Opens Cashierless Supermarket in Latest Push to Sell Food |
Amazon has launch its first cahierless store in Seattle, the purpose of the concept is to enable customers to go in, pick up the items they need and get out with out the hassle of waiting in line for self check out or a cashier to check those items out. The use of an application will enable customers to go in and out of the store, get charged for items bought and once the transaction has been complete a receipt will be generated. The concept will allow Amazon to learn what customers want from a grocery store and how to better prepare in order to have those items available. Amazon is also looking into licensing the checkout free technology to other retailers. A similar concept has inspired other retailers and some of the ideas include smart shopping carts.
https://www.wsj.com/articles/amazon-opens-cashierless-supermarket-in-latest-push-to-sell-food-11582617660?mod=searchresults&page=1&pos=8
Subscribe to:
Posts (Atom)