The spread of swine flu has raised concerns across the world as governments plan for a possible pandemic.

It is also creating fluctuations on stock markets, with some firms capitalizing on the flu scare and others reeling from losses as travel restrictions and worries about possible health risks hit the tourist industry.

Pharmaceutical companies have profited from the news that swine fever is spreading. Several pharmaceutical stocks started this week with significant rises.

Roche, who markets Tamiflu, one of the antivirus used to treat the H1N1 virus, saw its shares rise 3.5 percent on Monday and edge up further on Tuesday. The company has already seen large revenue increases as authorities around the world stock up on the drug.

Since the global onset of avian flu in 2006, many governments have built up large stockpiles of Roche's Tamiflu as well as Relenza made by British pharmaceutical giant Glaxosmithkline (GSK). The GSK has also made gains as its share price lifted by 6 percent on Monday with further increases on Tuesday.

Worldwide, Roche saw sales in excess of 347 million U.S. dollars for the first quarter of 2009. The company has said that 264 million dollars worth of the drug was for stockpiling while around 84 million dollars worth was for general seasonal use.

While many developed countries are prepared for a medical emergency, the timing of the crisis is adding to the economic instability around the globe. The combination of a banking crisis and swine flu is creating worries and stress in many sectors.

Russia has already banned imports of products from Mexico as well as the U.S. states of California and Texas despite the fact that pork and under goods pose no biological threat.

TRAVEL, TOURISM AFFECTED

EU Health Commissioner Androulla Vassiliou has said there's no need to panic, but her suggestion on avoiding travel to Mexico and other affected areas has aroused some anger.

Mexico City is said to be losing more than 85 million dollars per day in business. Many public buildings have closed and some restaurants and coffee shops are also shutting their doors. The number of tourists visiting Mexico is dropping and British travel agency Thomas Cook on Tuesday cancelled all its flights to the country for seven days.

Outbound passengers at Manchester Airport found themselves stranded on Tuesday morning with the 09:30 flight to Cancun, Mexico grounded. Tourism and travel related stocks have been hit by the potential health crisis.

British travel company Thomas Cook saw their share price drop 4.42 percent on Monday and 1.67 percent on Tuesday.

Several airlines saw significant falls with Lufthansa sinking nearly 10 percent and British Airways dropping nearly 8 percent on Monday. Further falls were also seen as trading began on Tuesday.

Most major indices around the global all saw drops, adding to the economic uncertainty which has gripped the financial markets in recent months.

The World Health Organization on Tuesday raised its threat level to Phase 4, meaning that the virus cannot be contained. Such a pandemic could also damage confidence in the market.

The World Bank has said that a pandemic on the scale of that seen in 1918 could cost the world economy around 3 trillion dollars. However, medicine has improved greatly over the last century, as has people's general health status.

There has been criticism that the threat is being over-hyped by the media. Front pages of many newspapers in Britain have carried sensational headlines. The Daily Express shouted the headline, "Killer Pig Flu Fear in Britain".

And it is not just confined to the tabloids. Suggestions that up to 1 million could die and 9 million could contract the virus in Britain have adorned many front pages.

In response, one media analyst said: "The sheer volume of coverage creates the impression that the story is bigger than it really is."

FACE MASKS "NO DEFENCE"

The repetition of headlines and pictures of people wearing masks on rolling news channels are adding to the panic. Britain's Secretary of State for Health Alan Johnson has dismissed the usefulness of face masks.

"Many people will wish to know whether they should wear face masks. Although we are aware that face masks are being given out to the public in Mexico, the available scientific evidence does not support the general wearing of face masks by those who are not ill whilst going about their normal activities," he said.

However, he said the British government was looking to increase stockpiles of face masks for healthcare workers who are treating sick patients.

In the U.S. Centers for Disease Control (CDC), officials have also said the use of masks was unnecessary at this time. In contrast to statements given by the officials, the website of U.S. Federal Drug Administration says that N95 face masks "help protect the caregiver and patient against microorganisms, body fluids, and small particles in the air."

Some firms are already cashing in on people's fear. One company trading under the name Active Training Network is selling what it calls a Pandemic Kit for 44.99 pounds (65 U.S. dollars). The kit, containing three face masks, two biohazard bags, gloves and disinfectant spray, is marketed as a protection against epidemics such as bird flu.

Despite the experts' and governments' saying that face masks provide little protection, many suppliers said they were flying off their shelves.

After several hours' use, the masks would become damp and more porous and decrease their efficiency in preventing germs from passing through. There is also the problem of how to dispose of millions of potentially infected masks. This may trigger an even greater public health hazard.

However, many Britons shun the idea of wearing masks even if it proved to be useful. This is because these people consider it looks "uncool" to wear a face mask.

(Xinhua News Agency April 29, 2009)