Asian markets fall on fears over economic impact of virus
Hong Kong: Asian markets fell on Thursday with investors concerned about the economic impact from the spread of the new coronavirus as China reported more than 1,700 new infections.
Airlines around the world are either suspending or paring back services in and out of China following cases of human-to-human transmission outside the country and manufacturers have also been cutting their Chinese operations.
The World Health Organisation, which initially downplayed the severity of the disease, warned all governments to be "on alert" as it weighs whether to declare a global health emergency.
US Federal Reserve Chairman Jerome Powell said the coronavirus posed a new risk to growth in China and elsewhere. In Asian stock markets, Hong Kong was down 1.4 per cent and Tokyo dropped 1.6 per cent.
Japanese automaker Toyota said it would keep its plants in China closed until at least February 9 over concerns about the outbreak of the SARS-like virus which has killed 170 people and infected more than 7,700.
Taipei fell 4.9 per cent, with shares in Apple supplier Hon Hai Precision Industry plunging more than nine per cent after it said most of its manufacturing plants in China would remain closed until February 10.
The tech giant, better known as Foxconn, is the world's biggest contract electronics maker and assembles Apple's iPhones as well as gadgets for other international brands.
The move will likely impact global supply chains for tech companies that rely on the Taiwan firm to manufacture everything from iPhones to flat-screen TVs and laptops.
Foxconn, which employs more than one million workers in China, accounts for the most US-bound exports by volume from Hubei province which is at the epicentre of the virus outbreak.
Among other markets, Seoul slipped 1.3 per cent and Sydney was down 0.5 per cent.
"Equity markets remain acutely vulnerable to adverse developments in the Wuhan virus situation," said OANDA analyst Jeffrey Halley. The Fed held its policy interest rate steady on Wednesday but was on alert for possible contagion to the domestic and global economies.
"There will clearly be implications at least in the near term for Chinese output and I would guess for some of their close neighbours," Powell told reporters following the Fed's policy meeting.
However, "the situation is really in its early stages and it's very uncertain about how far it will spread and what the macro-economic effects will be," he said. "We are very carefully monitoring the situation."
Oil fell following a higher-than-expected jump in US inventory, with the Brent and WTI contracts both down one per cent.
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Cong slams Modi govt as 'anti-worker', calls for review of new Labour code
New Delhi (PTI): The Congress on Friday accused the Modi government of being "anti-worker" and demanded that the new labour code be reviewed, MGNREGA be revived as well as a national minimum wage of Rs 400 per day be established.
On International Labour Day, Congress president Mallikarjun Kharge took a swipe at the government and said unemployment in India today is a direct consequence of the 'Hum Do, Hamare Do' policies.
"Driven by the 'Hum Do, Hamare Do' policy, the Modi government implemented an anti-worker Labour Code. As a result, unrest has erupted everywhere - be it in Noida, at the IOCL facility in Panipat, Adani's factory in Raikheda, NTPC Patratu, or the Samsung factory in Sriperumbudur," Kharge said in a post in Hindi on X.
Instead of ensuring job security, this Code promotes policies such as contract labour and 'Hire & Fire' practices, Kharge said and called for a review of the new Labour Code.
The Modi government has effectively dismantled MGNREGA by forcibly pushing legislation through Parliament, he alleged.
"Mr. Modi has shifted 40% of the wage burden onto the State governments. State governments are unable to bear this financial strain and will eventually be forced to stop providing work," he claimed.
The Modi government has compelled workers into a state of unemployment and pushed them towards 'gig work', Kharge said.
Currently, 69% of the workforce is working for wages below the statutory minimum wage, he said.
The Modi government has engineered a crisis of stagnant wages, Kharge alleged.
"When adjusted for inflation, the wages of the majority of India's workers have grown by less than 1% annually over the last decade (from 2014-15 to 2022-23)," he said.
The Modi government has created a massive unemployment crisis among the educated workforce, specifically, among graduates, Kharge claimed and added that jobs have been eliminated through the sale of Public Sector Undertakings (PSUs).
"The government has refused to fill approximately 30 lakh vacant government positions. Furthermore, the government's policy blunders have led to the decimation of Micro, Small, and Medium Enterprises (MSMEs)," the Congress chief said.
The Congress reiterates its five demands for India's workers including revival of MGNREGA and its expansion to urban areas, Kharge said.
He said a national minimum wage of Rs 400 per day should be established, with MNREGA included within its scope.
Kharged demanded that a 'Right to Health' law must be enacted, providing Universal Health Coverage of up to Rs 25 lakh for laborers and workers.
"'Life Insurance and Accident Insurance' coverage must be provided for all unorganized workers. Preventing the contractualization of employment must be made a core priority of the government, and the new Labour Codes must be reviewed," Kharge asserted.
