Shares of China’s Luckin Coffee (LK) slipped in New York amid reports of a travel lockdown in China related to the recent coronavirus outbreak. WHAT’S NEW:
The New York Times reported that authorities have greatly expanded a travel lockdown in central China to include 12 cities close to the center of the coronavirus outbreak, effectively barring 35M residents from traveling in an effort to contain the virus.
Just a day after the country restricted travel in and from Wuhan, the center of the outbreak with a population of 11M, and the capital of Hubei Province, as well as four nearby towns, the government announced plans to suspend public transportation services covering over half the population of the province, according to the Times. WHAT’S NOTABLE:
Earlier this week, reports emerged of the new strain of coronavirus originating in China that has infected nearly 300 people and killed six.
The U.S. Centers for Disease Control on Tuesday confirmed the first case of the virus in the U.S. in the state of Washington, noting that the patient had recently returned from Wuhan, China, where an outbreak of pneumonia caused by the virus has been ongoing since December 2019.
While the World Health Organization said Thursday that it is too early to declare a public health emergency of international concern for the virus, Bloomberg reported on Friday that the CDC has announced a second case of the virus in the U.S. in Chicago, Illinois. PRICE ACTION: Luckin Coffee shares are down 7.1% to $41.51 in morning trading in New York. The stock opened on Tuesday in New York at $47.74 per share.