Allianz Research

Allianz Global Wealth Report 2024:
Surprising relief

COVID-19 crisis in Europe to put 13,000 corporates at risk

In the context of the COVID-19 crisis, we estimate that turnovers of Eurozone companies could fall between -15% to -25% y/y at the peak of the crisis end of March. Operating margins could be indented by 1.0pp to 1.5pp.

Reading the recession in the PMI leaves

Eurozone March PMIs are “old news” for financial markets but they reiterate the historical  proportions of the economic setback currently underway, with many survey components reaching all-time lows. While a dramatic setback in Eurozone manufacturing was widely expected amid the COVID-19 crisis and already largely priced in by financial markets, today’s release still underlines the swiftness and severity of the resulting economic downturn.

COVID-19: Quarantined Economics

The COVID-19 outbreak has forced governments to put the world on an unprecedented pause, for at least three months, to flatten the contagion curve. Since January, the impact of the outbreak has unfolded from a China-centered supply shock, which sent shockwaves across global trade and disrupted supply chains, to an unraveling of financial markets as investors realized the unavoidability recession, to a violent demand shock hurting consumption and investment in China, Europe, and the U.S..