Trade disputes and geopolitical uncertainties had already made the prospects for global economic growth uncertain. A coronavirus has now added to the challenges facing financial markets.
The epicenter of the virus is Wuhan, an important commercial hub in China that is home to 11.9 million people, including the country's largest student population. It is also a manufacturing hub, with around 500 factories that would usually make car parts, pharmaceutical products and steel. Wuhan is home to China's third largest car manufacturer, Dongfeng Motor, while German conglomerate Siemens has a transformer plant there. It is also the headquarters for Baowu Steel Group's Wuhan Iron and Steel Corp, or Wisco, which transports its raw materials - including iron ore - along the Yangtze River.Production at these plants and across China had already wound down for the Lunar New Year holiday, making it hard to distinguish between a seasonal business slump and any more serious disruptions the virus might be causing. Remember too that the Chinese economy has been slowing for several years after a decade of exponential, mostly...