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During this uncertain time, the environment in which we live, and work is constantly changing. With businesses taking the hit as countries go into lockdown, there has been a vast amount of disruption across the board. But some businesses have also flourished as a result. In this article, we will be looking into how Amazon has faired throughout the Covid-19 outbreak so far.
The Global Economy As A Result Of Coronavirus
During this time of uncertainty, there have been major effects to businesses, travel and even conventional social behaviours as governments all over the world take drastic measures to flatten the curve and prevent millions of people falling victim to Covid-19. With travel suspended, borders closed, and people expected to cut out unnecessary travel, this has had a knock-on effect on several economies all over the world.
These drastic measures by all the worlds leading countries have seen a drop in the UK index as well as the drop in US stock markets. On the 12th March 2020, the UK index dropped by more than 10% seeing its worst drop since 1987. This sudden drop occurred despite the action taken by the European Central Banks and the Federal Reserve to prevent this from happening.
The Affect On Small And Large Businesses
This drop-in markets, as well as the ongoing issue of self-isolation, has wreaked havoc on businesses both big and small. With advice from governments to stay inside and lockdowns all across Europe, this is leaving businesses such as pubs, clubs, restaurants and other establishments and their staff in a problematic time. With businesses not having the funds that they need as well as the lack of bookings, several businesses are risking closure and are seeing workforces experience redundancies.
The Growth of Amazon Stock
Despite the ongoing problem for small businesses, Amazon have seen a positive impact. With several people self-isolating, the need for delivery companies and their products has risen. This has seen an increase of 2.78% in the stock price as people continue to use their services. This is a positive time to invest in the company as more and more people begin to buy amazon shares as a result of this positive trend. With this looking likely to continue as a result of Covid-19, this is the perfect time to invest in large corporations such as this one. These stock prices, though still volatile during this uncertainty, are more stable than smaller businesses, thus allowing you to make an informed investment every time, however, it is important to monitor the market closely at this time as uncertainty has the potential to lead to losses.
The Response From The Government
As part of the UK governments effort to keep the nation informed, there has been a daily address held in parliament every day. As part of the ongoing crisis for businesses, the government has outlined a series of measures that is made available to enterprises within the UK. These are as follows:
- Sick Pay Relief for small to medium enterprises
- A business rates holiday for businesses in England including hospitality and leisure.
- Funding for all businesses experiencing financial difficulty
- Grant funding for retail for those hospitality businesses
- Business Interruption Loan Scheme set up, for SME through major British banks.
- Bank of England help for larger firms.
- A new time to pay scheme.
With these elements in place as well as changes being made daily, this could all be set to change in the near future. However, as the crisis continues, who knows what this could mean for businesses up and down the country.