/perspectives/media/coronavirus-will-hit-corporate-earnings-free-cash

Coronavirus Will Hit Corporate Earnings, Free Cash Flow

Scott Minerd, Chairman of Investments and Global CIO, discusses on CNBC the threat the coronavirus poses to corporate earnings and the U.S. economy.

February 26, 2020

 

Key Takeaways:

  • The impact of coronavirus could slow annualized Q1 GDP growth in China to minus 6 percent, which would shave 200 basis points off global growth.
  • Expect major supply chain interruptions and pressure on corporate earnings and free cash flows.
  • Coronavirus pandemic could also have a severe impact on employment numbers.
  • The target yield for the 10-year Treasury note is 25 basis points on a technical count.
  • Stocks could regain momentum if the coronavirus is contained soon.
  • That said, economic outlooks will have to be revised if the S&P500 falls below 3,000.


Read Global CIO Outlook: “Peace for Our Time”


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