Source: ACCJ Journal
We’ve been looking forward to 2020 for a long time. The Tokyo 2020 Olympic and Paralympic Games were certain to herald an eruption of good fortune in business and excitement in general. But there has been an outbreak of something else instead: coronavirus. So far, the year is not turning out as planned.
Covid-19, the illness caused by the new coronavirus, has rapidly spread throughout China and much of world. The impact on business has been sudden and strong. As I sat down to write this column, reports were coming in that the Dow Jones Industrial Average had plummeted 1,031 points on concerns over covid-19. That’s a 3.1-percent drop—one of the largest single-day losses ever and the worst since February 2018.
HIT THE BREAKS
Global supply chains have been disrupted and manufacturing facilities closed in China, causing companies such as Apple Inc. to adjust their revenue guidance for the next quarter and look for alternate sources of parts and locations for production.
On the afternoon of February 26, the Japanese government asked organizers of large sports and cultural events to cancel them for the next two weeks. Almost immediately, we received notifications that concerts, exhibitions, and other events—some scheduled to start just hours after the government request—had been called off.
A cloud of uncertainty has also settled over Tokyo 2020. The negative impact on Japan’s economy would be immense should the Games be canceled or moved to another city. London mayoral candidate Shaun Bailey took to Twitter on February 20 to say that the host of the 2012 Games is ready to step in again.