COVID19

Why China will emerge from COVID-19 stronger than the U.S.

By Tommy Flemm 1 year ago

As COVID-19 cases hit new highs in the U.S., it’s clear this scourge isn’t going away anytime soon. Besides all the short and medium term issues, another point to consider is the disease’s impact on bigger trends. 

The coronavirus’ effect on the digital revolution for instance has been much discussed—basically the pandemic serves as an accelerant—Exhibit A being the fortunes of the FANG companies and their ilk. Much less recognized though is how the pandemic is reshaping another mega-trend, that being the rise of China and more particular to us, our relationship with the Chinese.

It’s a complicated scenario because there’s the effect of COVID on China’s economic growth and ambitions, mixed in with an on-going trade war, plus President Trump’s campaign rhetoric. Teasing this out is tricky, but bottom line: I think that China is going to end up in better shape than the U.S. after COVID.

First some

… Read More

Here comes a 20% stock market plunge if Trump and Democrats don’t agree on trillions more in COVID-19 stimulus

By Tommy Flemm 1 year ago

Add the potential of not getting another massive new fiscal stimulus plan as beginning to weigh on the minds of otherwise exuberant investors.

“I think you are looking at a 10% to 15% range minimum [if there isn’t a new stimulus plan],” warned EvercoreISI senior managing director Dennis DeBusschere on Yahoo Finance’s The First Trade. “And then from there it’s going to be about your expectation for the policy response. So you probably go down 10% to 15%, and then we’ll all wait around to see if that 10% to 15% causes the political apparatus to get moving quickly. And if you ultimately get nothing, by the way, you know it’s a down 20%. And you know, we’ll reassess from there.”

In March, lawmakers passed the $2 trillion Coronavirus Aid, Relief and Economic Security Act (CARES). It surpassed the $700 billion bailout package handed out to Wall Street during the

… Read More

Chuck E. Cheese and GNC bankruptcies highlight America’s economic ‘washout’ from COVID-19

By Tommy Flemm 1 year ago

The rallying stock market may not care about it right now, but the economic devastation from the COVID-19 pandemic continues in full force.

Indeed this week highlights the ongoing pain ripping through Corporate America. Overly indebted vitamin seller GNC filed for bankruptcy on Wednesday, crushed by mall closures brought on by the pandemic. Chuck E. Cheese — also boasting a ton of debt following a 2014 leveraged buyout — filed for bankruptcy on Thursday as the prospect of catching COVID-19 by touching dirty games keeps parents and children away.

“I think what you’re seeing is what we’ll call the prolonged washout from COVID,” said Barclays chief U.S. economist Michael Gapen on Yahoo Finance’s The First Trade. Gapen says he is most concerned about the prospect for service-oriented companies in life after COVID-19, and doesn’t rule out more bankruptcies in the months and years ahead.

“We think that [those sectors] will

… Read More

Trump fans controversy on COVID-19 testing as cases spike worldwide

By Tommy Flemm 1 year ago

President Donald Trump sparked a new controversy over the weekend by suggesting that testing more people for the coronavirus has contributed to the U.S. holding the top spot in the world for COVID-19 diagnoses, in the midst of the worst daily case spike the world has seen since the crisis began.

With the world’s largest economy struggling to contain the virus, the president made waves after a rally in Tulsa, where turnout was less than expected. Trump said that when testing is widespread, “you’re going to find more people. So I said to my people, ‘slow the testing down please.’”

White House officials have said the president was kidding, and never directed the coronavirus task force to slow down testing. However, the comments drew widespread criticism, and flew in the face of worrying trends in states like Florida, which despite a slight decrease in testing is seeing cases surge.

… Read More

COVID-19 quarantines gave hackers time to perfect presidential election attacks: tech security CEO

By Tommy Flemm 1 year ago

Cloudflare CEO Matthew Prince continues to warn that the coming presidential election may unleash hackers again just like in 2016 in a bid to influence the outcome.

The recent actions of these faceless bad actors look to be practicing their craft while quarantined at home because of COVID-19.

“I think as sports are canceled around the world, it’s getting hackers to spend more time focusing on how they can hack various things. And we see some versions of that, which are relatively harmless. For instance, we seen a big uptick in relatively unsophisticated attacks, which is actually similar to what we see when schools let out. I think there are a bunch of kids out there trying to test their chops if they can hack various systems. What has been concerning is especially over the last month, there has been a rise in nation states sponsored attacks targeting both political

… Read More