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  • Economic impacts of swine flu - markets, business, agriculture, etc.

    Swine Flu Is An Uncertainty For Markets

    Wellington, April 27 NZPA - The spread of swine flu introduced an uncertainty to New Zealand financial markets today ahead of the United States market opening.

    The New Zealand and Australian dollars were weaker today, which some commentators attributed to worries about the spread of swine flu, which has killed more than 100 people in Mexico.

    ANZ said the winners from the uncertainty were US bonds, gold and the US dollar, which benefited from safe haven flows.

    "US futures point to a potential triple digit decline in the Dow Jones Industrial Average," ANZ said.

    The New Zealand share market closed up 7.987 points today at 2664.372 but tourism stocks were weaker and makers of pork substitutes were stronger as investors tried to assess the winners and losers from the emerging situation.

    The New Zealand dollar was at US56.43c at 5pm, down from US57.21c at 8am, but up from US56.20c at 5pm on Friday. The trade weighted index rose to 56.12 from 55.93 on Friday.

    BNZ Capital currency strategist Danica Hampton said swine flu was an issue at the margins in the foreign exchange market.

    "People know about it. People are talking about it but it is not really the big driver of the currency.

    "What we have seen today is a reversal of the squeeze we saw on Friday night," she said.

    But ANZ said expect markets to trade off swine flu developments, with risk aversion set to rise if further cases are detected.

    Governments appeared to be taking all the right steps.

    "But at a time when the global economy is still fragile, and sentiment in markets very flaky, this latest swine flu development is the last thing we need right now," ANZ said.

    There was a danger that trade barriers will be put up in response to the health crisis.

    The New Zealand market also has to digest a rate cut decision from the Reserve Bank of New Zealand on Thursday and the National Bank of New Zealand business outlook survey on Wednesday is also often a market mover.

    The central bank is expected to cut rates by 50 basis points to 2.5 percent.


    Wellington, April 27 NZPA - The spread of swine flu introduced an uncertainty to New Zealand financial markets today ahead of the United States market opening.
    "The next major advancement in the health of American people will be determined by what the individual is willing to do for himself"-- John Knowles, Former President of the Rockefeller Foundation

  • #2
    Re: Economic impacts of swine flu - markets, business, agriculture, etc.

    ANALYSTS VIEW - Markets fret over swine flu outbreak

    TOKYO (Reuters) - Worries about a global flu pandemic are unnerving financial markets after an outbreak in Mexico.

    Asia stocks retreated and the dollar hit a one-month low against the yen as concerns about the spread of the flu from Mexico prompted investors to trim riskier assets. The Mexican peso and commodities also fell.

    U.S. stocks were poised to fall when trade kicks off later in the day. S&P futures were down about 2 percent in Asia, and safe-haven U.S. Treasuries gained.

    "The next major advancement in the health of American people will be determined by what the individual is willing to do for himself"-- John Knowles, Former President of the Rockefeller Foundation

    Comment


    • #3
      Re: Economic impacts of swine flu - markets, business, agriculture, etc.

      Swine Flu To Hit European Financial Markets Monday

      LONDON (Dow Jones)--Swine flu looks set to hit Europe's financial markets hard Monday, with stocks expected to open lower, government bonds higher and the dollar firmer as analysts worry about the possible impact on world trade.

      "News over the weekend of a deadly flu outbreak is rocking financial markets and, with the vast majority of Asian indexes trading lower, this pattern is expected to follow in Europe too," said Matt Buckland, a dealer at CMC Markets.

      "It's also worth bearing in mind that after last week's gains many would have been looking to start locking in profits, but clearly this news has the potential to become a rather serious development," he added.

      The FTSE 100 index of leading London shares is expected to open down 49 points at 4107, according to CMC Markets, with the DAX in Frankfurt down 77 at 4597, and the CAC-40 in Paris down 51 at 3052.

      "As the 2003 SARS outbreak showed, swine flu has the potential to harm the prospects of recovery from recession, with the travel and leisure sectors particularly at risk," said a report by Tera Stock Brokers in Istanbul.

      "Before more clarity is secured on the issue, we think global markets will be negatively affected by the news."

      In the European government bond markets, prices opened higher, with June bund futures trading at 123.16 at 0620 GMT, up 0.70 from Friday. In the foreign exchanges, the euro eased to $1.3145 from $1.3242 in late New York business Friday. The pound dropped to $1.4566 from $1.4662.

      "It's really going to be a case of watching how this Mexican flu issue develops before deciding if these already bruised markets have another big fall coming up," said Buckland.

      "The next major advancement in the health of American people will be determined by what the individual is willing to do for himself"-- John Knowles, Former President of the Rockefeller Foundation

      Comment


      • #4
        Re: Economic impacts of swine flu - markets, business, agriculture, etc.

        Asian Airline, Hog Stocks Drop as Drugmakers Gain on Swine Flu

        By Chen Shiyin and Chua Kong Ho

        April 27 (Bloomberg) -- Airlines and meat-processing companies slumped in Asia on concern the growing number of swine-flu cases in the U.S. and Mexico will slow a recovery in the global economy and hurt earnings. Medical shares gained.

        Korean Air Lines Co., South Korea?s largest carrier, lost 7.4 percent, while China Yurun Food Group Ltd., the country?s biggest hog processor, tumbled 10 percent in Hong Kong trading. Chugai Pharmaceutical Co. and South Korea?s Yuhan Corp. both surged by at least 14 percent on speculation demand for the antiviral drug Tamiflu will increase, helping drive the MSCI Asia-Pacific Health Care Index to the largest gain among the regional index?s 10 industry groups.

        The MSCI Asia-Pacific Index retreated 0.4 percent to 89.13 as of 4:01 p.m. in Hong Kong. The spread of swine flu, a respiratory disease of pigs caused by type-A influenza, raised concern that the outbreak will be worse than the severe acute respiratory syndrome, or SARS, epidemic in 2003 that killed 774 people and infected 8,098 globally.

        ?The memory of the SARS epidemic is still fresh on the minds of investors in Asia,? said Daphne Roth, Singapore-based head of Asia equity research at ABN Amro Private Bank, which manages $27 billion of Asian assets. ?It?s the usual trade of avoiding airlines and buying drugmakers, insurance.?

        U.S. President Barack Obama?s administration has declared swine flu, normally spread among pigs, a public health emergency after 20 people contracted the disease. More than 80 people have died in Mexico, where the first cases were discovered.

        Flu Strains

        Three main human flu strains -- H3N2, H1N1 and type B -- circulate and cause 250,000 to 500,000 deaths a year in seasonal epidemics, according to the World Health Organization. Pandemics occur when a novel influenza A-type virus, to which almost no one has natural immunity, emerges and begins spreading.

        Korean Air lost 7.4 percent to 37,800 won, its largest drop since Jan. 15. The airline, which operates two weekly flights to Mexico via an agreement with Consorcio Aeromexico SA, doesn?t plan to cancel flights because of the outbreak in Mexico, it said in an e-mail today.

        China Southern Airlines Co., the nation?s biggest air carrier, dropped 17 percent to HK$1.83, while Cathay Pacific Airways Ltd., Hong Kong?s largest, plunged 8.1 percent to HK$8.41. Japan Airlines Corp., Asia?s largest carrier, retreated 4 percent to 191 yen. The airline set up a task force to monitor the outbreak, though its flights to Mexico via Vancouver are operating normally, spokesman Satoru Tanaka said today.

        Declines led the Bloomberg Asia Pacific Airlines Index lower by 6.1 percent, set for its biggest retreat since October 2008.

        Economic Consequences

        ?Travel gets impacted rather quickly and savagely during virus outbreaks,? said Prasad Patkar, who helps manage the equivalent of about $800 million at Platypus Asset Management in Sydney. ?The market clearly believes that the swine-flu outbreak will have economic consequences.?

        H.I.S. Co., Japan?s second-largest travel company, declined 10 percent to 1,558 yen after spokesman Takashi Nakatani said the company will make a decision on its tours to Mexico today. Kinki Nippon Tourist Co., a rival tour agency, retreated 8.6 percent to 107 yen.

        Hotel operators also declined. Shangri-La Asia Ltd., the region?s biggest luxury hotel manager, slid 8.7 percent to HK$10.70, while Banyan Tree Holdings Ltd., a Singapore-based luxury resort operator that has a property in Mexico?s Riviera Maya district, tumbled 6.7 percent to 35 Singapore cents.

        Hog processor China Yurun fell 9.9 percent to HK$9.03, set for its biggest plunge since Oct. 10. None of its livestock have been infected by swine flu and its operations have been unaffected by the outbreak, the company said today.

        Pork Ban

        China, Indonesia and Thailand are among Asian nations that have banned pork imports from Mexico and parts of the U.S. Still, Keiji Fukuda, the Geneva-based WHO?s assistant director-general for health security and environment, said there?s no evidence the disease is spread by exposure to ?pork or pigs.?

        People?s Food Holdings Ltd., a meat producer listed in Singapore, retreated 5.7 percent to 50 Singapore cents. Nippon Meat Packers Inc., Japan?s biggest producer of ham and sausage, declined 4.4 percent to 1,010 yen.

        Chugai Pharmaceutical, a unit of Roche Holding AG and a seller of Tamiflu, surged 14 percent to 1,845 yen, its largest gain since January 2000. Yuhan, the biggest South Korean drugmaker by market value, soared by the 15 percent daily limit to 211,500 won, the biggest gainer on the MSCI regional health- care index. The company was chosen in 2006 to supply Roche Holding AG with a key ingredient to make Tamiflu.

        Cipla, Biota

        Cipla Ltd., India?s second-biggest drugmaker by market value, climbed 2.4 percent to 245.95 rupees after saying it can supply 1.5 million doses of generic Tamiflu drugs to fight the outbreak. Biota Holdings Ltd., which earns royalties from sales of GlaxoSmithKline Plc?s flu drug Relenza, jumped 82 percent to A$1.58 in Sydney trading.

        In Malaysia, Top Glove Corp. rallied 7.3 percent to 5.90 ringgit, set for its highest close since Jan. 14. The world?s largest rubber glove maker expects global demand to increase 5 percent in the next three to four months because of the spread of swine flu, Chairman Lim Wee Chai said today.

        Universal Inc., a Taiwanese maker of non-woven fabrics such as baby diapers and surgical gowns, rose 6.8 percent to NT$12.50, while TTY Biopharm Co., a drugmaker, rose by the daily limit of 7 percent to NT$88.80, the highest since it went public in Taipei in 2001.

        ?As the concerns increase, these companies stand to gain,? said Stanley Chou, a fund manager at Mega International Investment Service, a unit of Taiwan?s third-largest financial service company. ?With other stocks falling, these shares look least vulnerable.?

        To contact the reporter on this story: Chen Shiyin in Singapore at schen37@bloomberg.net; Chua Kong Ho in Shanghai at kchua6@bloomberg.net

        Last Updated: April 27, 2009 04:07 EDT
        "The next major advancement in the health of American people will be determined by what the individual is willing to do for himself"-- John Knowles, Former President of the Rockefeller Foundation

        Comment


        • #5
          Re: Economic impacts of swine flu - markets, business, agriculture, etc.

          GLOBAL MARKETS-World stocks, oil tumble as flu fears spread
          Mon Apr 27, 2009 1:40pm IST

          * MSCI world equity index down 0.7 pct at 220.60
          * Swine flu fears hit risk assets

          * Oil and euro tumble; govt bonds firm


          By Natsuko Waki

          LONDON, April 27 (Reuters) - World stocks tumbled on Monday, after seven weeks of gains, and oil and the euro fell as concerns intensified the spread of swine flu, which has killed more than 100 people in Mexico, would hit the global economy.

          Travel and leisure-related stocks tumbled while the Mexican peso fell 2 percent against the dollar as the World Health Organization warned the flu, which has spread to the United States and possibly as far as New Zealand, has the potential to cause a worldwide pandemic.

          "A nasty chill will run through the market with swine flu as people think back to the SARS virus," said Justin Urquhart Stewart, investment director at Seven Investment Management.

          "The threat of the pandemic will add further weakness to global trade -- we saw with SARS tangible percentage points knocked off the index and that was in a buoyant time. Put that in a weaker time and it is likely to be more unpleasant." MSCI world equity index .MIWD00000PUS fell 0.7 percent after rising 0.2 percent last week, posting seventh weeks of consecutive gains.

          The FTSEurofirst 300 index .FTEU3 dropped 1.3 percent while emerging stocks .MSCIEF lost 1.4 percent.
          In Europe, travel and leisure sector stocks .SXTP fell 4.5 percent while airlines such as British Airways (BAY.L: Quote, Profile, Research), Air France-KLM (AIRF.PA: Quote, Profile, Research) and Deutsche Lufthansa (LHAG.DE: Quote, Profile, Research) dropped up to 13 percent.

          U.S. crude oil CLc1 fell 4.1 percent to $49.45 a barrel.

          The euro fell 0.7 percent to $1.3148 <EUR=>, hit by a rise in risk aversion, while the dollar .DXY rose 0.6 percent against a basket of major currencies. The yen rose to 0.2 percent to 96.70 per dollar <JPY=>.

          "If the disease proves to be more fatal, the dollar would rally and cross-yen would come under pressure," BNP Paribas said in a note to clients.

          "Given the recent 'green shoots', the market would take any worsening of the outbreak as an obstruction to the global recovery process."

          The Mexican peso <MXN=> fell as low as 13.69 per dollar, its lowest in almost three weeks.

          The June Bund future FGBLc1 rose 75 ticks, garnering safety-seeking flows.

          Two-year euro zone government bond yields hit their lowest in almost one month of 1.303 percent <EU2YT=RR> after European Central Bank Governing Council member Nout Wellink was quoted as saying the central bank should discuss lowering interest rates below 1 percent. (Additional reporting by Joanne Frearson, editing by Mike Peacock)

          "The next major advancement in the health of American people will be determined by what the individual is willing to do for himself"-- John Knowles, Former President of the Rockefeller Foundation

          Comment


          • #6
            Re: Economic impacts of swine flu - markets, business, agriculture, etc.

            USDA: Swine not infected with swine flu

            WASHINGTON, April 26 (UPI) -- U.S. officials said Sunday there is no evidence the outbreak of swine flu has affected swine and consumers cannot get the virus from eating pork.

            "There is no evidence at this time showing that swine have been infected with this virus," Secretary of Agriculture Tom Vilsack said in a statement.

            Citing scientists at the Department of Agriculture and the U.S. Centers for Disease Control and Prevention, Vilsack said swine flu viruses are not transmitted by food "so you cannot get swine flu from eating pork or pork products." Vilsack reminded consumers that food must be properly handled and cooked to kill viruses and other foodborne pathogens.

            "USDA has in place, and did so before the last week's events, a surveillance system to monitor animal health," Vilsack said. "As an additional precautionary measure, I have asked USDA to reach out to agriculture officials in every state to affirm that they have no signs of this virus type in their state."

            U.S. Department of Homeland Security Secretary Janet Napolitano said Sunday she has declared a public health emergency to free up funds to fight the virus' spread and to release one-quarter of the government's stockpile of anti-virus medications Tamiflu and Relenza.

            Richard Besser, acting director of the U.S. Centers for Disease Control, said his agency has confirmed 20 non-fatal cases of swine flu within the Unites States, including eight cases found among New York City high school students. The other cases were detected in Ohio, Kansas, Texas and seven in California.

            U.S. officials said Sunday there is no evidence the outbreak of swine flu has affected swine and consumers cannot get the virus from eating pork.
            "The next major advancement in the health of American people will be determined by what the individual is willing to do for himself"-- John Knowles, Former President of the Rockefeller Foundation

            Comment


            • #7
              Re: Economic impacts of swine flu - markets, business, agriculture, etc.

              Swine Flu Fears Spill Beyond Grains, Across China Commodities

              Mon, Apr 27 2009, 08:50 GMT



              Swine Flu Fears Spill Beyond Grains, Across China Commodities

              BEIJING (Dow Jones)--Fears of a widening swine flu epidemic have rattled commodities markets beyond agriculture futures, as investors already skittish due to doubts about prospects for a quick economic recovery consider the potential financial toll of the disease.

              "There's definitely a link between swine flu and what's happening in the metal markets today," said Gao Yanrong, futures analyst for Dalu Futures in Shanghai. "If the outbreak gets any more serious, it would have a large effect on global finances."

              On the pessimistic end of the scale, the swine flu epidemic could cost the global economy more than $3 trillion in lost output and cut 5% off global growth, Gao said, citing World Bank figures last year on the potential effects of a flu pandemic.

              In a market already souring after a growth spurt, swine flu is adding "fuel to the fire," Gao said.

              "The combination of a realization that there will be no quick recovery in the global economy, despite the recent rebounds in equities and commodities, plus new concerns about another potential pandemic with outbreaks of swine flu in Mexico, are rattling the markets," William Adams, analyst for BaseMetals.com, said Monday.

              Copper futures posted losses for a sixth consecutive session Monday on the Shanghai Futures Exchange, taking aluminum and zinc contracts down as well.

              Agricultural futures fell sharply on Dalian Commodity Exchange, with soybean, soymeal and palm oil futures falling to their 5% lower limit in the morning session.

              The benchmark soybean contract eventually settled down 4%, and the rest of the agricultural complex on Dalian followed the beans south.

              The benchmark Shanghai Futures Exchange rubber contract fell 0.8%, tracking metals and equities.

              Swine flu cases have not been reported in China yet.

              But along with some other Asian nations Monday, China banned imports of both hogs and pork from Mexico and the southern U.S. states of Texas and Kansas, adding an extra layer of security despite assurances that consumption of meat isn't a source of infection.

              Still, some analysts urged circumspection in tying swine flu to the wider financial markets outlook.

              "Agricultural futures are more affected, and where there's a link to metals, it's only in investor sentiment, not fundamentals," said Liu Biyuan, of GF Futures.

              Declines in metal prices Monday could be coincidental, Liu said.

              Analysts in China, Asia's biggest pork consumer, said the outbreak will have limited impact on pork consumption as long as the new virus hasn't been detected on the mainland.

              But the latest epidemic is a reminder for the Chinese of the avian flu outbreak in 2004, Gao said.

              Investors are likely to watch closely to see whether the outbreak escalates, he said.

              "If it doesn't rise to a higher threat level, these (market jitters) will go away in two or three days," he said. "But if it escalates, sentiment will worsen and really spread to commodities like metals and oils."

              -By Chuin-Wei Yap, Dow Jones Newswires; 8610 6588 5848; chuin-wei.yap@dowjones.com (Zheng Xiaolu in Beijing and Yue Li in Shanghai contributed to this report.)

              Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?...9uImXNeg%3D%3D. You can use this link on the day this article is published and the following day.

              (END) Dow Jones Newswires

              April 27, 2009 04:50 ET (08:50 GMT
              "The next major advancement in the health of American people will be determined by what the individual is willing to do for himself"-- John Knowles, Former President of the Rockefeller Foundation

              Comment


              • #8
                Re: Economic impacts of swine flu - markets, business, agriculture, etc.

                Market Update from Trade The News


                Published 04/27/2009 - 1:54 a.m. EST

                ABOUT THE AUTHOR


                Asian Market Update: Poor Results from Japan's Shippers Add to Swine Flu Concerns as Bourses Reverse Early Gains; Japan Confirms Negative GDP Forecast Revision; Weekend ECB Speakers Remain Cautious, while Swiss Officials Look to De-escalate Tax Haven Conflict; USD, JPY Rise on Risk Aversion

                - Fear over the spread of Mexican swine flu virus has infected investor sentiment midway through trading in Asia, where the initial catch-up rally on the heels of a strong session in the US on Friday has first fizzled and then turned into a downward slide. Despite US officials' best efforts to contain panic stemming from reports of the virus transported to New York by hapless Cancun spring-breakers and apparently effective response to treatment in early stages, growing fatality figures in Mexico, fears of a virus mutation to a more potent form, along with concerns of a rapid global dissemination sparked a broad-based risk aversion across the asset classes. In Tokyo, the Nikkei halted its 1.5% advance, turning negative shortly after coming out of midday break and subsequently testing its lowest level in 2 weeks. Korea's Kospi was off by over 1.2% after trading up nearly 1%, and Sydney's S&P/ASX entered final hour down 0.7% after initial 1.8% gain. Selloff is even more severe in denser Asian markets of Hong Kong, Taiwan, and Singapore, - all regions impacted by 2002-03 SARS outbreak - with those bourses declining by over 2.5%. In US, front-month S&Ps shrugged prospects of greater clarity from financials' stress test results and automaker bankruptcy saga, trading lower from the get-go toward a near 2% session decline. Earlier this weekend, GM CEO Henderson announced plans to brief the media on company's revised visibility plan on Monday morning, while UAW had reportedly reached an agreement with Chrysler, Fiat, and US govt on the framework for industry reorganization.

                - Across the board, shares of companies related to travel and tourism were hit in Asia while healthcare names were generally firmer - this trend is likely to be replicated across financial markets on Monday. Airlines Qantas, Singapore Air, and Japan Air were sharply lower; in turn, Swiss pharma Roche - the maker of Tamiflu - is expected to open very strong. In other company-specific developments, results from Japan shippers released during Nikkei break appeared to add to bearish sentiment. Mitsui OSK and Nippon Yusen FY08/09 results as well as their next year guidance were unanimously below estimates. Kawasaki Kisen net and operating profits were much lower on a y/y basis, with similarly poor next year prospects. In Sydney, the Australian reported that Telstra could be forced to take significant writedowns and lower its financial targets in the near-term. Spirits maker Lion Nathan was one of the few bright spots in risk aversion sensitive consumer sector, benefiting from Kirin Holdings investment paying near A$12/share for the 54% stake in the company that sent its shares up as much as 40%. In Korea, chipmaker Hynix extended its relative strength to trade up 4% in early session as Goldman Sachs raised Korea's tech sector to
                "Attractive" from "Neutral" and Deutshe Bank upped its 2009 GDP forecast for South Korea to -2.9% from -5% prior.

                - In macro-oriented news, light economic calendar in the session was balanced by new govt growth forecasts from Japan, central banker sentiment from ECB, and banking developments from Switzerland. Japan's officials confirmed that it cut its 2009/10 growth forecast to -3.3% from outdated flat target, pinning y/y figure estimate for Q1 as low as -14%. Bank of Japan was reportedly even more pessimistic, noting that the economy may contract as much as 4%. Separately, Japan's government has also pledged to expand its 2009 JGB issuance to ?134.3T v the initial plan of ?117.4T. Over the weekend, ECB's Weber suggested there was little chance for Eurozone recovery in the near future with jobs markets only seeing some relief in 2011. ECB Pres. Trichet reiterated that sentiment, but did suggest that the rate of economic decline was slower. In Switzerland, officials took a step toward removing highly publicized stigma of the country's banking sector as a "tax haven", pledging to pass a new tax accord in exchange for the US dropping its legal actions calling for client info disclosure against the Swiss banks.

                - In currencies, US Dollar and Japanese Yen gained broadly against commodity and European majors on a spike in risk aversion largely inspired by the pandemic flu threat. GBP/USD fell to 1.4580's, EUR/USD declined to 1.3150's, and USD/CHF advanced above 1.1440. Commodity FX was also in favor of USD, with USD/CAD rising near one big figure toward 1.2180 and AUD/USD collapsed over 100 pips to 0.71. USD/JPY traded down to April lows around 96.50, while Yen gains were magnified in the crosses with EUR/JPY declining to 127 and GBP/JPY falling to 140.70's.

                - Crude oil prices are lower by more than 1% on today's Asia session, tracking the weakness being seen in equities. In terms of OPEC related news, the Saudi oil minister Naimi noted that the oil market is still oversupplied, but that inventories will eventually decline from current levels. Naimi added that it is too early to discuss OPEC's next move. Additionally, Qatar's oil minister Al Attiyah said that the outcome of the next OPEC meeting is hard to predict. With respect to oil demand, the IEA's Chief Tanaka was quoted as saying that the group was unlikely to lower its oil demand forecast again, unless its economic forecast changes. On April 10, the IEA cut its global oil demand forecast by 1M bpd to 83.4M bpd. Spot Gold is higher on the session and tracking the weakness in equities prices. Overall, gold prices are gaining for the 4th consecutive session and trading at their best levels since April 3. In other commodities trading, the swine flu outbreak in Mexico is weighing on some of the agricultural commodities. Specifically, US corn and soy futures are sharply lower on the session on possible concerns that the outbreak could lead to lower demand for feed grains in the hog industry. Additionally, China announced that it would place an import ban on hog and pork products from the US and Mexico due to the outbreak.
                "The next major advancement in the health of American people will be determined by what the individual is willing to do for himself"-- John Knowles, Former President of the Rockefeller Foundation

                Comment


                • #9
                  Re: Economic impacts of swine flu - markets, business, agriculture, etc.

                  .Mexico Tests Smithfield Hogs
                  U.S. Meat Company Says Its Pork Is Safe.ArticleCommentsmore in Business ?.

                  The Mexican government is testing hogs on Smithfield Foods Inc. farms in Mexico but the big U.S. meat company says its pork is not related to the swine flu outbreak.

                  "We are very comfortable that our pork is safe," Smithfield president and chief executive Larry Pope said in an interview. "This is not a swine issue. This is a human-to-human issue."

                  Mr. Pope said Mexican authorities have been on at least some Smithfield farms in Mexico for "several days" testing hog herds to confirm that there is "no incidence of this virus on our farms."


                  In recent days scores of Internet postings have attempted to link a large Smithfield hog operation in the Mexican state of Veracruz and the outbreak of swine flu that has cost more than 100 Mexican lives. Mr. Pope characterized the postings as "rumors," adding, "We don't have any reason to believe that this has anything to do with Smithfield at all."

                  A recently released World Organization for Animal Health briefing said "the virus has not been isolated in animals to date. Therefore, it is not justified to name this disease swine influenza." The organization noted that the virus "includes in its characteristics swine, avian and human virus components." Instead, the agency said the disease should be called "North-American influenza."

                  Smithfield Foods, based in Smithfield, Va., said it routinely tests its swine herds for instances of various bacteria and disease, including influenza. Company officials said it's common for the company to administer a "genetic sequence analysis" to its swine herds to examine the presence and identity of different flu strains.

                  So far, Mr. Pope said, "this variant has never presented itself in any of our herds" in any country where the company operates, including Mexico and the U.S. He also added that "we know of no pigs that are sick, no people on those farms that are sick and no people in our plants" who are sick.

                  The pork industry has been losing money for months now, as elevated feed costs over the past year have cut into profits and in many cases made raising hogs unprofitable. The recession has made matters worse as consumers cut back on meat consumption. In February, pork exports were down about 13% versus February 2008, said the U.S. Agriculture Department.

                  The industry had hoped to make some improvements over the summer, a time when bacon and pork sales tend to be strong. But the flu situation makes any chance at recovery more difficult, Mr. Pope said. "It's coming at a horrible time," he said. "I am concerned that there may be some consumer reaction to this in terms of their buying habits."

                  Already at least four countries ? Russia, Japan, China and South Korea ? have stopped or slowed pork purchases from the U.S. Mr. Pope said he believes this is "reactionary."

                  "The next major advancement in the health of American people will be determined by what the individual is willing to do for himself"-- John Knowles, Former President of the Rockefeller Foundation

                  Comment


                  • #10
                    Re: Economic impacts of swine flu - markets, business, agriculture, etc.

                    Glaxo, Roche Start to Map Swine-Flu Game Plans.

                    Growing concern about swine flu may put Roche and GlaxoSmithKline at the center of the action.

                    Roche makes Tamiflu, known generically as oseltamivir, and Glaxo makes Relenza, known generically as zanamavir. For a primer on these prescription antiviral drugs, take a look at our Q&A on swine flu. They may cut the severity and duration of the disease, though most of the patients who contracted swine flu in the U.S. have recovered without taking them. They?ve also been approved to reduce the risk of contracting the seasonal flu, though they don?t provide long-lasting protection.

                    Roche spokeswoman Martina Rupp told Dow Jones Newswires that the company has the key ingredients in place to quickly ramp up production of Tamiflu. She said the company so far hasn?t yet received any new big orders for the drug, adding that the number of orders will depend on how the World Health Organization classifies the outbreak.

                    Tamiflu?s fortunes in the past have risen and fallen amid fears about global flu pandemic. Roche had ramped up production of the drugs a few years back when fears about avian flu were rising. But sales of the drug were down recently as those concerns subsided.

                    U.S. Homeland Security Secretary Janet Napolitano said 25% of U.S. antiviral stockpiles are being released, and that the Defense Department ?has procured and strategically positioned 7 million treatment courses of Tamiflu,? Bloomberg reports.

                    Contacted by Dow Jones Newswires, Glaxo didn?t comment immediately on the possible impact of this outbreak on production and sales of Relenza. The drug beat Tamiflu in terms of sales to governments for the first time last quarter, Bloomberg says, in part because of concern about resistance of a seasonal flu virus to Tamiflu. But resistance to seasonal flu doesn?t predict resistance to pandemic strains of flu, Bloomberg adds.

                    Meanwhile, Novartis said the World Health Organization had contacted it about developing a vaccine against swine flu. The company has received some preliminary information about the virus and expects to get a sample of it soon. It typically takes three to six months to produce a new vaccine, but it?s unclear how long it will take for swine flu, the company said.

                    "The next major advancement in the health of American people will be determined by what the individual is willing to do for himself"-- John Knowles, Former President of the Rockefeller Foundation

                    Comment


                    • #11
                      Re: Economic impacts of swine flu - markets, business, agriculture, etc.

                      10 Countries Ban Pork Imports Over Swine Flu Fears

                      By MARK McDONALD
                      With fears deepening Wednesday over the outbreak of swine flu around the world, at least 10 countries ? from China to Russia to Ukraine to Ecuador ? have established bans on the importing of all pork products, despite a declaration from the World Health Organization that the virus cannot be transmitted by eating pork.

                      ?There is no risk of infection from this virus from consumption of well-cooked pork and pork products,? the W.H.O. said in a statement.

                      Also Wednesday, Malaysia took the extraordinary step of asking the W.H.O. to endorse a ban on all travel out of Mexico.

                      ?We have spoken to W.H.O. officials and asked them to stop those in Mexico leaving the country,? said Liow Tiong Lai, the Malaysian health minister, quoted by Bloomberg News.

                      The Malaysian request came despite a W.H.O. statement that said there was no need for any ?restriction of regular travel or closure of borders.? Such measures, the agency said, would be ineffective in stopping the spread of the virus.

                      Bloomberg also quoted John MacKenzie, a noted virus specialist from Australia, as saying the Malaysian proposal was ?ridiculous.?

                      The Centers for Disease Control and Prevention has advised Americans only to ?avoid all nonessential travel to Mexico.?

                      Swine flu has sickened at least 2,500 people in Mexico, and all 159 deaths believed attributable to the flu have occurred there.

                      Outside Mexico, several countries reported new cases.

                      New Zealand said Wednesday that 14 cases had been confirmed there. The Health Ministry, on its Web site, called it ?Mexican swine influenza.?

                      New Zealand has been screening all arriving air passengers, and Dr. Fran McGrath, the deputy director of public health, said that five foreign travelers were being treated under quarantine for mild cases of the flu. All five were being ?kept in isolation? at an undisclosed location in Auckland.

                      The first three cases in Germany were reported by the country?s disease control agency, the Robert Koch-Institut, making it the third European nation to have confirmed infections, along with two cases each in Britain and Spain. British health authorities are awaiting results from tests on people who came into contact with a couple in Scotland who contracted the illness during their honeymoon in Cancun, Mexico.

                      The resort on the Yucat?n peninsula is a popular vacation destination for Europeans. Health and airport authorities in Munich said the first direct flight carrying vacationers back to Germany since the outbreak of the disease in Mexico was expected and might be quarantined if passengers showed symptoms of swine flu.

                      Britain?s Department of Health also said Wednesday that leaflets about the virus would be distributed to all British households.

                      Two infections have been confirmed in Israel.

                      The W.H.O. has documented 64 cases in the United States and six in Canada.

                      In Washington, President Obama asked Congress for $1.5 billion in supplemental funding, as state and federal officials intensified their response to the outbreak.

                      Numerous countries in Europe, Asia and Latin America have been screening arriving passengers, including thermal facial scans and on-board checks of air travelers. Several countries have set up diagnostic and quarantine facilities for travelers suspected of being ill.

                      Cuba has canceled all flights to and from Mexico, and Argentina banned all flights from Mexico.

                      Five cruise lines, including the world?s two largest, Carnival and Royal Caribbean, said they were immediately stopping all port calls in Mexico. Princess Cruises, Holland America and Norwegian Cruise Line also said they were suspending Mexican stopovers. Cruises to Mexico accounted for about 7 percent of cruise traffic worldwide in 2008, according to the Cruise Line Industry Association.

                      Mexico City was looking increasingly like a ghost town as the city government ordered all restaurants, except those that serve take-out food, closed until May 6 to prevent large gatherings of people. About 30,000 restaurants are affected.

                      Movie theaters, bars and discos have also been shut.

                      But the city has yet to make the decision to shut down public transportation, a move that would freeze most economic activity in the capital. Most bus and subway riders have taken to wearing face masks.

                      Schools all over the country have been closed, affecting some 33 million students, and many tourist sites ? including museums and archaeological sites ? were put off limits.

                      Citigroup?s Mexican subsidiary, Banamex, ran a newspaper ad asking customers to wear their masks and wash their hands. At bank branches, where employees have been told to wash their hands every hour, antiseptic gel dispensers were being installed. Banamex also asked customers to do as much banking by phone and Internet as possible.

                      Dr. Richard E. Besser, the acting director of the Centers for Disease Control and Prevention, termed the early days of swine flu in the United States as a ?prepandemic period? and was blunt about the potential impact of this influenza. ?As this moves forward,? he said, ?I fully expect that we will see deaths from this infection.?

                      He said that five people confirmed to have swine flu had been hospitalized in the United States ? two in Texas and three in California, where Gov. Arnold Schwarzenegger declared a state of emergency. But the nation?s highest number of cases continued to be in New York City, where 45 people were confirmed to have swine flu.

                      In Washington, Congressional hearings addressed the seriousness of the outbreak.

                      ?I really think we need to be prepared for the worsening of the situation,? Rear Adm. Anne Schuchat, the C.D.C.?s interim science and public health deputy director, told a Senate Appropriations health subcommittee. ?It?s more of a marathon than a sprint,? she said, echoing what Dr. Besser had said on Sunday, when the country first declared swine flu a public health emergency.

                      Senator Tom Harkin, the Iowa Democrat who heads the subcommittee, noted that ?there?s a lot of anxiety right now across the country.?

                      "The next major advancement in the health of American people will be determined by what the individual is willing to do for himself"-- John Knowles, Former President of the Rockefeller Foundation

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                      • #12
                        Re: Economic impacts of swine flu - markets, business, agriculture, etc.

                        Citigroup?s Mexican subsidiary, Banamex, ran a newspaper ad asking customers to wear their masks and wash their hands. At bank branches, where employees have been told to wash their hands every hour, antiseptic gel dispensers were being installed. Banamex also asked customers to do as much banking by phone and Internet as possible.
                        Sounds familiar - just search historical threads here on FT!

                        .
                        "The next major advancement in the health of American people will be determined by what the individual is willing to do for himself"-- John Knowles, Former President of the Rockefeller Foundation

                        Comment


                        • #13
                          Re: Economic impacts of swine flu - markets, business, agriculture, etc.

                          Rep. Jerry Moran, R-Kan., is asking major news networks to stop referring to the H1N1 virus as “swine flu,” saying it is harming the pork industry and farm families across Kansas and the nation. In the letter, Moran says that the term “swine flu” confuses consumers and could lead them to believe pork is unsafe […]


                          Kansas politician asks media to stop using the term "swine flu".

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