(Bloomberg) — Italy’s lockdown looks set to continue, France will likely extend a confinement period and Britain could tighten restrictions on citizens. European Union chief Brexit negotiator Michel Barnier said he had tested positive and Spain reported a surge in fatalities.
European cases now exceed those in China, and Wuhan, the epicenter in the mainland, reported no new infections. China is planning a fiscal stimulus package of several trillion yuan, Reuters reported.
Government relief packages reached at least $1.9 trillion, seeking to blunt the fallout from the epidemic. European Central Bank President Christine Lagarde said the bank has set “no limits” after starting a 750-billion-euro ($820 billion) emergency debt-buying program. Bonds rallied.
Key Developments:
Cases hit 217,506 worldwide, death toll tops 9,000China’s virus epicenter sees no new casesDrug trials on patients in China yield mixed resultsYounger adults aren’t as impervious as originally thoughtAustralia, Indonesia, Philippines, Taiwan cut ratesBig Tech tries to help the U.S. narrow the virus testing gap
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Gilead Analyst Doubles Down on Call for Drug Approval (7:10 a.m. NY)
The stock is up 2.3% in pre-market trading and poised to open above a two-year high after analyst Tyler Van Buren doubled down on his call for positive results from the biotechnology company’s experimental therapy for the novel coronavirus. It was his second positive call on the medicine in less than 24 hours. “It should get approved ASAP,” he told clients in a Thursday note.
China to Expand Budget Deficit, Reuters Says (7:01 a.m. NY)
China is planning a fiscal stimulus package of several trillion yuan, Reuters reported, citing four unidentified people familiar with the policy. Chinese economic growth target 2020 may be lowered to as low as 5% from originally about 6% and the budget deficit may be pushed to as high as 3.5% due to increased spending.
Cases Soar in Iran and Spain (7 a.m. NY)
Iran has reported 1,046 new coronavirus cases and 149 new deaths in the past 24 hours, bringing the total to 18,407 cases and 1,284 deaths. The health ministry also said the number of new cases had decreased in some provinces.
Spain also reported a surge in cases, to 17,147 from 13,716, and said the total death toll had risen to 767 from 598.
Virus Cuts Burberry Sales in Half; Next Withholds Guidance (7 a.m. NY)
The coronavirus pandemic is taking a growing toll on U.K. fashion brands, with luxury label Burberry Group Plc saying sales have fallen by as much as half since late January and store chain Next Plc withdrawing financial guidance. Burberry said about 40% of its stores worldwide are shut, with additional closures expected in the coming days as governments implement lockdowns to curb the outbreak.
London Hedge Fund Gains 94% (6:40 a.m. NY)
Hedge fund Chenavari Investment Managers has extended its gains this year to as much as 94% thanks to bets on credit-market volatility during the coronavirus pandemic. The firm’s $400 million Dynamic Credit Cycle Fund achieved the gains through March 16 after having already made 70% by March 12. Its strategy for the past two years has been to seek to benefit from a possible widening of spreads.
EU Chief Brexit Negotiator Barnier Tests Positive (6:26 a.m. NY)
The European Union’s chief Brexit negotiator Michel Barnier has tested positive for coronavirus, he said in a tweet Thursday. Trade negotiations between the U.K. and EU had earlier been postponed due to the virus outbreak. U.K. Prime Minister Boris Johnson excluded a Brexit transition extension on Wednesday during a press conference.
Alibaba Pitches Diagnostic Tool to Europe in China Outreach Move (6:10 a.m. NY)
Alibaba Group is offering Europe’s embattled health systems a cloud-based coronavirus diagnostic tool it says it has successfully tried in China’s hospitals. The move by billionaire co-founder Jack Ma’s technology giant comes amid a bigger push by China to promote its efforts to contain the pandemic that started in the city of Wuhan before spreading to the rest of the world.
The company said it presented its machine-learning software for chest scans to health-care representatives in France and Italy. Alibaba’s efforts come as China and its top technology companies step up their outreach in Europe, showcasing virus-diagnosis and analysis tools. Telecoms giant Huawei Technologies said it offered Italian hospitals video conferencing and wireless connectivity capabilities. Internet search engine Baidu is proposing an algorithm to analyze the virus’s biological structure.
As Europe becomes the epicenter of the virus, Beijing’s diplomatic and material efforts in the fight against the outbreak coincide with what’s seen as an attempt by the Trump administration to distance itself from the region.
Swiss Banks May Win Capital Relief (6:05 a.m. NY)
The Swiss National Bank said it’s “examining whether a relaxation of the countercyclical capital buffer would be possible despite the risks on the mortgage and real estate markets.” While banks in the country are “equipped for difficult situations,” lowering the requirement would increase their room for manoeuvre, it said in a statement.
World’s Biggest Airlines Ground Fleets, Idle Thousands of Staff (6 a.m. NY)
Three of the world’s leading airlines laid bare the devastation the coronavirus is inflicting on air travel, with Deutsche Lufthansa AG and Delta Air Lines Inc. parking a total of 1,500 planes and Qantas Airways Ltd. laying off close to 30,000 employees in some of the industry’s deepest cuts to date.
The measures at Lufthansa, Europe’s biggest carrier, go furthest, with Chief Executive Officer Carsten Spohr saying Thursday he’ll eliminate 95% of seats, shrinking the timetable to a level last seen in 1955. Delta is grounding half the fleet to wipe out 70% of capacity, while Qantas, which has been idling planes weeks, is ceasing international operations.
Wristband Trackers to Control Infected Travelers in Asia (5:40 p.m. HK)
Asian countries battling a new wave of coronavirus infections brought in by travelers from abroad are turning to high-tech wristband monitors, jail time and steep fines in an escalation of containment measures.
Hong Kongers With Virus Went to Gyms in City’s Center (5:30 p.m. HK)
Two coronavirus patients visited gyms near the heart of Hong Kong’s central business district, adding to concern about a recent uptick in cases in the Asian financial hub. While Hong Kong moved more quickly to contain the outbreak than some other cities, it now has 208 confirmed cases, including 9 from the stricken Diamond Princess cruise ship. That’s more than double the level two weeks ago.
German Confidence Plunges (5:06 p.m. HK)
German business confidence is falling off a cliff, offering chilling evidence that Europe’s largest economy may be headed for its worst recession since the global financial crisis. Sentiment plunged the most since 1991, to levels not seen in more than a decade. A measure of expectations also dropped after the government shut down large parts of public life and factories temporarily suspended production to prevent the spread of the deadly coronavirus.
Malaysia May Send Army to Uphold Lockdown (4:43 p.m. HK)
Malaysia will resort to deploying its army if the public continues to flout the two-week lockdown that the government imposed. “If there is no choice, and compliance is still at 60%-70%, I believe that it’s highly likely the army will be deployed,” Ismail Sabri Yaakob, senior minister for defense, told reporters.
Europe Weighs Steps as Cases Overtake China (4:40 p.m. HK)
Italian Prime Minister Giuseppe Conte said he will extend a national lockdown, as coronavirus cases continue to climb in Europe’s worst outbreak. The number of deaths reached almost 3,000. The government will maintain its ban on non-essential activities and keep retailers other than grocery stores, pharmacies and gas stations closed beyond the original March 25 deadline, the premier said in an interview with Corriere della Sera.
In France, confinement measures are likely to last longer than the planned 15 days, the head of French health agency Sante Publique France said in an interview with France Info.
In the U.K., the government is mobilizing military personnel and preparing to put London in lockdown. The prime minister threatened to tighten restrictions on movement in the capital, which is at the center of the outbreak, at a press conference on Wednesday.
Austria’s Tyrol province put all of its 279 municipalities under quarantine overnight. The small western province had Austria’s first case, and now has more than a quarter of the country’s infections.
Russia Aims to Stir ‘Distrust’ in Europe (4:39 p.m. HK)
“A significant disinformation campaign by Russian state media and pro-Kremlin outlets regarding COVID-19 is ongoing,” according to an internal EU document dated March 16 and seen by Bloomberg News. “The campaign is designed to exacerbate confusion, panic and fear, and to prevent people from accessing reliable information about the virus and public-safety provisions.”
The EU analysis found that disinformation was spread in multiple languages including English, Italian, Spanish, Arabic and Russian.
Abe Reiterates Desire to Hold ‘Complete’ Olympic Games (4:29 p.m. HK)
Japanese Prime Minister Shinzo Abe reiterated his desire to hold the Olympic Games in their “complete form,” and indicated he wasn’t thinking of reducing the scale of the event or holding the games behind closed doors. His remarks come after the Tokyo 2020 CEO said the organizing committee hadn’t yet planned ways to ensure the safety of athletes, fans and staff.
Abe has recently begun to shift his messaging on the games, in a sign that he may have accepted the spread of the coronavirus will make it necessary to postpone the event, set to start in July. The number of visitors to Japan has hit its biggest monthly fall since the country’s devastating March 2011 earthquake, tsunami and nuclear disaster as tourism collapsed.
Amazon Case in U.S. Warehouse (1:04 p.m. HK)
Amazon revealed an employee working at one of its Queens, New York shipping facilities has contracted the virus, the first infection reported in a U.S. delivery network that’s become a lifeline of essentials for consumers sheltering at home. The company temporarily closed the warehouse near LaGuardia Airport — sending workers home with full pay — so it can be cleaned and sanitized.
Tesla Offers to Make Ventilators (1:02 p.m. HK)
Tesla Inc. joined General Motors Co. in offering to make hospital ventilators in car factories shut by the coronavirus outbreak. It’s an effort that would echo Detroit’s contribution to Allied powers during World War II.
Australia, New Zealand Shut Borders (12:58 a.m. HK)
Australia will close its borders to non-citizens and non-residents from 9 p.m. local time on Friday, Prime Minister Scott Morrison said Thursday. Similar controls in New Zealand come into force at midnight, Prime Minister Jacinda Ardern said.
Australia’s Central Bank Cuts Rates (11:30 a.m. HK)
The Reserve Bank of Australia spent its remaining conventional interest-rate ammunition and moved to additional policy measures to try to support an economy spiraling toward its first recession in almost 30 years. Governor Philip Lowe cut the cash rate 25 basis points to 0.25%, its effective lower bound, in an emergency meeting. The RBA will buy government bonds and it announced term funding of at least A$90 billion ($50 billion) for the banking system to target small and medium-sized businesses.
In a complementary program, Australia’s government will invest up to A$15 billion to allow smaller lenders to support consumers and smaller businesses during the outbreak.
Two Members of U.S. Congress Test Positive (9:32 a.m. HK)
Two representatives from the U.S. House were infected with the virus. Mario Diaz-Balart, a Florida Republican, developed symptoms over the weekend and has been working from an apartment in Washington while in quarantine, according to his office. Ben McAdams, a Utah Democrat, said he tested positive after experiencing symptoms Sunday. He also is working in quarantine.
The House is on recess this week. Several congressional staffers have also tested positive for the virus.
China’s Virus Epicenter Sees No New Cases (9:10 a.m. HK)
Hubei, the Chinese province at the center of the outbreak, reported no new infections for the first time since the pathogen emerged more than two months ago.
China still faces another concern as imported cases continue to add to the country’s tally of infections. The National Health Commission reported 34 new cases for March 18, all of them patients who brought the disease from other countries.
Early Drug Trials Yield Mixed Results (8:08 a.m. HK)
Drug trials on coronavirus patients in China yielded mixed results, with an HIV pill showing little benefit and a flu medication made by Fujifilm Holdings Corp. resulting in faster clearance of the virus.
The combination of lopinavir and ritonavir, marketed by AbbVie Inc. as Kaletra, didn’t improve the condition of patients or stop them from dying more than standard care in a randomized, controlled trial of 199 patients. The research was published Wednesday in the New England Journal of Medicine.
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