, Columnist
The World's Biggest Companies Should Plan for the Worst
There may be tentative signs of recovery in China, but the coronavirus still means acute uncertainty for manufacturers in Europe and the U.S.
Misplaced optimism?
Photo: Bloomberg
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Is the coronavirus a temporary shock or will it do lasting damage to the global economy? This question will dictate the severity of the measures companies are taking to cut costs and preserve cash, and determine the shape and effectiveness of government bailouts.
The short answer is: companies don’t know yet, because none of them have dealt with a pandemic of this magnitude before. Hence their early assessments of the seriousness of the problem have been quite different to those of their peers; and they’re being revised continually, mostly not for the better.