The COVID-19 virus, also known as the coronavirus, is continuing to spread around the world, and it’s affecting everything from movie release dates to air travel.
The Wall Street Journal is reporting that movie theaters in China are closing, and many movies that were produced and released in the U.S. are getting postponed in China.
“Dolittle,” a movie starring Robert Downey Jr. that flopped in America, has been postponed indefinitely for release in China. So has “Sonic the Hedgehog” and “1917.”
Disney also has several movies coming out, including “Mulan,” which was predicted to make a significant amount of money in China. Now, everything is uncertain.
Also, Paramount said it was suspending the production of “Mission: Impossible 7,” a Tom Cruise vehicle, over coronavirus fears in Italy.
“We will continue to monitor this situation, and work alongside health and government officials as it evolves,” Paramount said.
The global toy industry is also suffering due to the coronavirus. About 85 percent of the world’s toys are made in China, and many factories are closed, and the open ones are not running at full capacity. The shortages could have implications for the holiday season if things continue the way they are going.
“This is going to put some companies out of business if it goes on too long,” said Steve Pasierb, president and chief executive of the Toy Association Inc.
Toy company Zuru, which makes X-Shot blasters and Bunch O Balloons water balloons, said it had to cancel plans for a new product launch and that it’s out tens of millions in revenue.
The airline industry is not faring any better, according to a report by CNBC.
The NYSE Arca Airline Index, which keeps track of 16 airline carriers in North America and Latin America, dropped over 15 percent, the biggest loss since March of 2009, during the last recession.
American Airlines shares are the lowest since 2013.
“Every day we think we could be near a bottom, and every day we are not,” Cowen airline analyst Helane Becker said.
Airlines are out more than $29 billion in revenue as demand for air travel plummets over coronavirus fears.
Another dark spot comes from Goldman Sachs, which revised its earnings estimate for the year and said it sees zero earnings growth for U.S. companies because of the coronavirus.
Goldman Sachs revised its estimate for U.S. companies to $165 a share, down from $174 a share, which is representative of zero percent growth.
“US companies will generate no earnings growth in 2020,” Goldman’s chief U.S. equity strategist, David Kostin, said in a note to clients Thursday (Feb. 27). “We have updated our earnings model to incorporate the likelihood that the virus becomes widespread.”