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Spanish companies have already begun to send investors the first warnings about the impact of the coronavirus on their business.

BBVA has taken advantage of a recent modification of one of its debt issuance brochures sent to the CNMV to leave in writing the existence of a new risk that threatens operations in the financial sector. The Spanish bank warns that there is "uncertainty" about the impact of the coronavirus on China's economic growth and, in a chain, on the world economy. And at lower growth, less demand for financing and a more complicated environment for banking.

But who is currently suffering the effects of panic unleashed around the disease is the tourism sector. Meliá, one of the main Spanish hotel chains, has taken advantage of the 2019 results report to warn of the "impact" on its business due to the cancellation of major events such as the MWC in Barcelona and the loss of tourists in Milan.

The biggest crisis for the group so far is concentrated in China, where Meliá keeps five hotels open. "The excellent evolution in China (+ 9.2% in revenues) in 2019 will be truncated in the first quarter of 2020 due to the impact of the coronavirus, whose impact on the rest of Asia-Pacific destinations is not significant so far," he says. the group that Gabriel Escarrer directs .

In their perspectives on the thriving Asian market, the group emphasizes that "there is little visibility in the first quarter, although the month of January will be little impacted since the crisis begins at the end of the month. February will be more complicated and from March will depend on the evolution of the situation. " "In general, the tourism sector in China is currently paralyzed and waiting for the measures implemented to cause the desired effect. If that occurs, the return to normalcy could be relatively fast based on the experience of similar outbreaks in the past, "he concludes.

Microsoft will breach its revenue plan

Microsoft , has been the last to adjust the belt. He has warned that he does not expect to meet his income expectations for the third quarter of his fiscal year, which includes the months of January to March, in the area of ​​personal computing (Windows, Surface, Bing or the Xbox console) as a result of the impact on the supply chain of the Covid-19 coronavirus outbreak .

On January 29, during the presentation of its second quarter accounts, Microsoft had anticipated that between January and March 2020 it expected to reach a turnover of between 10,750 and 11,150 million dollars (9,845 and 10,212 million euros) in its personal computing division, which already included a wider range than usual as a reflection of uncertainty about the health situation in China,

"Although we observe a strong Windows command, in line with our expectations, the supply chain is returning to normal at a slower pace than expected in the presentation of the results of the second quarter," said the multinational.

Stock breaks

On the other hand, the hardware and DIY distribution market in Spain, which grew 4.8% in 2019, according to data from the last sector barometer of the Association of Manufacturers and Distributor Companies (Aecoc), may also be affected by the coronavirus crisis in the form of stock breaks.

The head of the hardware and DIY sector in Aecoc, Alejandro Lozano, recalls the uncertainty opened by the coronavirus, which will affect Asian production. "Stock breaks are expected from May , not only on products manufactured there, but also on European productions that depend on components that come from Asia," he added.

EDreams recognizes cancellations in Italy

For its part, the online travel agency eDreams Odigeo that presented results this Thursday, with a net profit of 29.4 million euros during the first nine months of its fiscal year, has recognized that after the expansion of the coronavirus in Italy the company has registered a 12% drop in reserves.

"Once the virus is controlled, we expect the reserve patterns to return to normal," said eDreams CEO Dana Dunne.

First layoffs in Spain

The economic effects derived from the coronavirus crisis have reached Spain. The electronics manufacturer Fujitsu has presented a Temporary Employment Regulation File (ERTE) for its factory in Malaga due to production problems caused by the breakdown in activity in China. The process will affect more than 300 employees and will be extended in principle over the next two months.

The announcement is part of the cascade of downward revisions of its revenues and contingency plans announced by very different companies as a result of the coronavirus epidemic. The Lufthansa airline, especially clear in this regard, has already stated in a statement "the budget reduction in administrative areas" and the "suspension of contracts" , among other measures.

The German company understands that at this time "it is not possible" to calculate the impact on its revenues, but it has already begun to make decisions to reduce its costs. The company now offers its workers vacation leave without pay, among other options for working part-time. In addition, Lufthansa has proceeded to cancel courses for flight personnel, and participants in the development training programs "will not be hired." The airline has already canceled its flights - and those of Swiss and Austrian Airlines - with mainland China, at least until March 28.

For its part, the Air France-KLM group has estimated the impact of Covid-19 on its operating profit between 150 and 200 million euros, and has also announced austerity measures, from a break in investments to the temporary freezing of hiring for the "great impact" of the coronavirus.

Drinks without celebrations

The food sector is also being affected. Thus, the French food group Danone expects a negative impact in relation to the coronavirus epidemic of about 100 million euros in its first quarter sales.

The French company includes in the forecasts for this year 100 million euros in sales lost by Covid-19, mainly in the water business in China, one of its main markets. The gala company is present in the bottled water market with brands as well known in Spain as omo Font Vella and Lanjarón.

Also, the British giant of spirits Diageo, owner of Guiness or Johnny Walker , already estimates that the epidemic in China and the entire Asia-Pacific region will reduce the number of net organic sales between 225 and 325 million pounds (269 and 388 million euros) in this year, which ends in June. In its organic operating result it is estimated between 140 and 200 million pounds sterling (167 and 239 million euros).

Projections are influenced by the closure of bars and restaurants in mainland China, where celebrations have been substantially reduced, as Diageo explained. The leap of the virus to other countries such as South Korea, Japan and Thailand has also delayed and canceled events, a drag for consumption that in this British company expect to improve in its last quarter of the year, between April and June.

There are numerous sectors exposed to the coronavirus because of its relationship with China, especially textiles, depending on the supplies of the Asian giant. The president of the Business Association of Textile, Accessories and Leather Trade (Acotex), Eduardo Zamácola, has warned that some companies will increase the price of clothing due to the impact of the coronavirus on the supply chain, as recorded by Europa Press.

The following most exposed areas, according to Standard & Poors, computing and electronics, electrical equipment and motor vehicles. Others, such as the toymaker, the pharmacist or the hotelier, are also resenting their connections with China.

The plans of the electric

The electricity companies Naturgy and Iberdrola have joined Endesa in the last few hours with the implementation of contingency plans to avoid contagion by the coronavirus. The first of these groups has temporarily suspended all international trips of its employees and has created a Travel Committee to assess those that are considered essential. This limit also affects trips within the national territory with the express request to "reduce them as much as possible." For its part, Endesa - whose parent is the Italian Enel - also announced yesterday the suspension of all trips to its headquarters in Rome.

The bank joins the sanitary cord

The majority of Spanish financial institutions have decided to activate action protocols for their entire workforce. As a prudential measure, banks are recommending to avoid traveling to Asian countries and even to Italy, unless it is of absolute necessity, cases in which they request extreme preventive measures.

Banco Sabadell has two offices in China, one in Shanghai and one in Beijing. The employees of these branches are working remotely until the authorities give a new notice. The entity chaired by Josep Oliu has not made a mass statement to all its workers, but it has sent certain recommendations to those in areas of greatest impact.

BBVA, on the other hand, updates the relevant information on the subject every day on its occupational health portal, where it explains that the masks should only be used if you have a cough or sneeze or if someone suspected of having a coronavirus infection is treated.

Banco Santander, which has no record of affected employees, underlines the continuous monitoring of the situation, and asks to avoid unnecessary trips.

CaixaBank, which also has offices in China and Italy, launched an informative note a few days ago and has taken over telecommuting in the most affected areas.

Bankia, for its part, has established a transversal working group to carry out the analysis and monitoring of the possible impact of the coronavirus on the entity.

Beyond Mobile

Telecommunications companies are also taking measures for the coronavirus, beyond the cancellation of the Mobile World Congress (MWC), which should have been held this week. Vodafone has restricted trips to China, Hong Kong and Macao, as well as all non-essential displacements in the Asia Pacific region and Italy, the European country currently most impacted by the epidemic.

DAZN , which this week celebrated its first anniversary in Spain, has also restricted travel (its headquarters for southern Europe is in Milan). Indra, on the other hand, recommends promoting "to the maximum" the meetings by videoconference as well as any alternative to the physical meetings.

Tobias Martinez, CEO of Cellnex , has argued that its employees should "travel only and exclusively when necessary," and has recommended video calls and conference calls to get in touch with other countries. "" If you talk to me about trips and you tell me about northern Italy, then I would tell you that we will try not to do them unless it was absolutely essential, "said the CEO of the multinational based in Barcelona, ​​which presented results on Wednesday.

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