Corona: Now and the Future

Hello, I  started this as the learning portfolio for my "Finance for Everyone" course.

I will talk about the material related to my first week in the course first, then I will add extra comments and thoughts about COVID 19 and how it will affect the economy.

Who is currently benefiting from COVID19?

 Pharmaceutical and medical companies are obvious winners, but we have to pore over a little bit and see who else might be benefiting.

Online stores (E-Commerce): With everything being done digitally now, people ordering online and executing all their shopping and daily routine online. Websites such as Amazon are benefiting from the current circumstances

 Telecom companies and ISP providers: People are at home 24/7, extra data buckets and increased speed is a probable assumption.

 Video streaming services: Netflix, Hulu, Amazon prime and all these services are benefiting from the quarantine.

 Food processing industry and Food industry in general: I believe that there will be an increased in sales of the Food industry as people cook and eat more.

Who is losing due to COVID19?

The first plain answer is the government. Spending billions on healthcare and in form of subsidies and spending other billions to stop the economy from crashing. What about the private sector?

Tourism: Tourism sector has crashed and completely stopped due to world wide stoppage of travelling.

Education: It can be a win or a lose as some universities benefited from E-Learning, but I would go for lose as not all universities world wide were ready, lots of expenditure to update the digital base for the E-Learning experience. Paying university's staff even though the university is shut.

Manufacturing: Heavily negatively affected by COVID19 due to social distancing and quarantine time.
Movie industry and cinemas: Cinemas are closed due to covid 19.

Future of the market

The United States pumped 1.1 trillion USD into the market and Europe is going to pump 300 billion EUR, is this going to be enough? I don't think so, this will lighten the effect on the market for sure, but it won't stop it. The loss is huge on both sides (firm and consumers) to be stopped even by this huge amount of money. 
What happened in the European Union is a shame as  we expected more cooperation and better co-management of the virus, but all we have seen is 0 cooperation.
What's going to happen? I don't know, but I am expecting a power shift globally and new alliances. Some developing countries might use this chance to leap frog into the front spots. 
World won't be the same as it was before COVID19. The fact that E-Learning and work from home proved to be somewhat efficient will be a huge turning point for us.

 Until then
Ibrahim Teleb
01/04/2020

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