(Bloomberg) —
Democrats blocked the U.S. Senate from advancing an economic rescue package and European leaders scrambled to enforce restrictions to prevent health-care systems from being overwhelmed as deaths surged across the region. German Chancellor Angela Merkel went into quarantine.
President Donald Trump said coronavirus measures shouldn’t be “worse than the problem itself,” while Japanese Prime Minister Shinzo Abe said a postponement of the Olympics may be inevitable. The crisis engulfing the aviation industry deepened.
Stocks dropped globally and bonds rose.
Key Developments:
Cases at 341,722 and 14,790 dead: Johns Hopkins tallyEurope struggles to get ahead of virus with toll mountingFed’s Bullard says U.S. unemployment may hit 30% in 2QRecession guaranteed, recovery a maybe: Bloomberg EconomicsJohnson threatens U.K. lockdown as public ignores warningsHK bans non-residents, India locks down most urban areas
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Spanish Deputy PM Calvo Hospitalized for ‘Respiratory Infection’ (6:54 a.m. NY)
First Deputy Prime Minister Carmen Calvo is being treated in hospital for a respiratory infection. Calvo checked in to hospital March 22 and she is being tested for coronavirus. Two cabinet ministers have already tested positive, as has Begona Gomez, Prime Minister Pedro Sanchez’s wife.
Iran, Spain Cases Rise; Malaysia Has Biggest Daily Increase (6:40 a.m. NY)
The number of deaths from coronavirus in Spain rose to 2,182 on Monday from 1,720, according to government data. The number of confirmed cases rose by 4,157 cases to 33,089 on Monday. Prime Minister Pedro Sanchez will seek parliamentary approval to extend a state of emergency to April 11 .
Iran reported 1,411 new cases and 127 new deaths in the past 24 hours. The country has 23,049 total cases and 1,812 people have died, while more than 8,000 have recovered so far. The health ministry said the average age of Iran’s coronavirus patients was 59, and the average age of those who died was 64. About 60% of the reported cases and deaths were men, the ministry reported.
Malaysia confirmed 212 new cases, the biggest daily jump, bringing the total to 1,518 despite imposing a lockdown that began on March 18. It has the largest number of cases in Southeast Asia, with more than half of the infections linked to a religious gathering in a mosque near Kuala Lumpur. The country initially struggled to implement the lockdown, until the deployment of the army helped raise compliance to almost 90%, from about 60% on the first day. So far, 14 people have died and 159 have been discharged.
Deutsche Bank Closes Branches (6:34 a.m. NY)
Deutsche Bank AG will temporarily close more than 200 branches in response to the coronavirus pandemic, joining other lenders in reducing physical contact between employees and customers. The measures will keep about 290 branches still open for business, down from more than 500.
Germany’s largest lender last week stopped short of closing branches even as other domestic rivals took the unprecedented measure in a race to contain the outbreak.
Russia Halts War Games on NATO Borders (6:34 a.m. NY)
The Russian military ended war games near its western borders as the country ramps up preventative measures. The drills had been ordered following plans for a NATO exercise that was billed as the biggest deployment of U.S.-based troops in Europe since the Cold War. Those plans, which were shelved last week on coronavirus fears, had been regularly criticized by the Kremlin and Foreign Minister Sergei Lavrov said in February that Russia would respond with reciprocal measures.
India’s Stocks Post Record Losses as Lockdown Kicks In (6:15 a.m. NY)
India’s stock indexes posted their worst losses on record, as the world’s second-most populous nation went into a lockdown after the number of coronavirus cases in the country surpassed 400. The S&P BSE Sensex Index tumbled 13%, its biggest one-day drop ever since data going back to 1979. The gauges triggered a trading halt earlier in the day, after a 10% fall within minutes of the opening bell tripped circuit breaker.
Prime Minister Narendra Modi and state leaders over the weekend imposed an almost-complete lockdown, which will probably worsen an economy already set to slow to an 11-year low. While the spread of the coronavirus pandemic has so far been slow in India, T. Jacob John, the former head of the Indian Council for Medical Research’s Centre for Advanced Research in Virology, warned the virus could spread to as much as 10% of India’s 1.3 billion population.
World’s Largest Trade Fair Delayed in China (6:14 a.m. NY)
The Canton Fair has been delayed on fears overseas visitors could bring the coronavirus with them and spark another outbreak just as China is getting it under control. The start date will be delayed from April 15, Ma Hua, deputy chief of Guangdong Province’s commerce department, said. The province will review the situation, Ma said, without giving a new start date.
The fair began in 1957 and is held twice a year. An average of 25,000 exhibitors and 200,000 delegates from more than 210 countries and regions take part each time. As the domestic outbreak has been controlled, the Chinese government has ramped up controls of visitors entering the country as it tries to stop people from bringing the coronavirus back. All 39 newly-confirmed cases of the virus on Sunday were people who’d come from overseas.
ECB’s Costa Says Euro Area Should Mull ‘Coronabonds’ Issue (5:24 p.m. HK)
ECB policy maker Carlos Costa said Euro area governments should consider the issuance of common coronabonds, Reuters reports. The bonds could be repayable through the European Union’s long-term budget and have a maturity of several decades. He welcomed flexibility measure taken by the European Commission, but said more had to be done.
Singapore to Announce More Support Measures (5:14 p.m. HK)
Singapore’s Minister for Finance Heng Swee Keat will deliver a statement on extra support measures for workers, businesses and households in response to the COVID-19 pandemic, according to a statement.
Tokyo Games Could Be Delayed (4:54 p.m. HK)
The Japanese government has decided to tell the International Olympic Committee soon that it will accept if the IOC decides to postpone the Tokyo Olympics planned for this summer, Kyodo reported, citing an unidentified Japanese government official.
The Tokyo Olympics looked likely to be the first games postponed since the modern games were launched in 19th century, as national teams pulled out and Japan’s leader acknowledged a delay may be unavoidable due to the coronavirus.
Prime Minister Shinzo Abe told parliament Monday that the Olympics, set to start in July, will have to be postponed if safety can’t be guaranteed for spectators and athletes due to the pandemic. His comments came a day after the International Olympic Committee said it would decide within four weeks how to handle the event amid the deadly outbreak, with a delay being an option.
Separately, Abe said tackling the economic crisis caused by the coronavirus may require a bigger economic package than was compiled to take on the Lehman shock.
Wuhan Still Finding Symptom-Free Virus Cases (4:42 p.m. HK)
People are still testing positive for the new coronavirus in Wuhan four days after China said there have been no new cases at the epicenter of its outbreak, a local magazine reported, raising concerns that the virus could still be spreading in the city.
“There are still a few or a dozen asymptomatic people every day,” an unidentified official at the Chinese Center for Disease Control and Prevention said in a Monday article by Caixin, referring to those who have the virus but don’t display any symptoms. “It can’t be determined whether transmission has been completely cut off in Wuhan,” the official said.
International Baccalaureate Organization Scraps April-May Exams (4:42 p.m. HK)
Students will instead be awarded a diploma or course certificate reflecting their current work. The diploma is one of the world’s most popular university-entrance qualifications.
Italy to Start Production Shutdown as Deeper Recession Looms (4:20 p.m. HK)
Italy is being dragged deeper into a recession after the coronavirus outbreak that’s crippling its northern regions forced the government to ban movement inside the country and shutter almost all industrial production.
The impact of virus on the economy will be strong even as measures by the European Central Bank and European governments help limit the intensity and length of the slump, Bank of Italy chief Ignazio Visco and Prime Minister Giuseppe Conte said in separate interviews in La Stampa newspaper.
Conte called for a new financial architecture centered on joint European Union debt issuances, or at least a guarantee fund to safeguard the European economy. European finance ministers are due to discuss their response to the crisis later on Monday amid comments from multiple officials that dramatic steps are needed.
Johnson Warns of U.K. Lockdown (4:17 p.m. HK)
U.K. Prime Minister Boris Johnson warned Britons they face “tougher measures” to fight the outbreak, including a potential full lockdown if they continue to ignore calls to stop social gatherings. The government stepped in to shore up the country’s rail operators on Monday and the chief justice halted new jury trials “for a short time.”
H.K. Imposes 14-Day Ban on Non-Resident Arrivals (3:47 p.m. HK)
Hong Kong will ban non-residents from visiting for 14 days and prevent bars from serving alcohol as the city sees a second wave of imported coronavirus cases. The travel measure will take effect starting on midnight Wednesday, the city’s Chief Executive Carrie Lam said in a news conference on Monday. Hong Kong will also halt all airport transit services and impose harsher punishments for quarantine violators, she said.
Hong Kong has seen imported coronavirus cases spike as foreign and local residents returned from overseas ahead of a government deadline last week imposing a mandatory 14-day quarantine on all arrivals. Before the virus spread in the U.S. and Europe, the city had initially managed to contain the outbreak.
U.K. FRC Urges Delay of Corporate Reports (3:12 p.m. HK)
The U.K.’s Financial Reporting Council said companies should consider delaying all non-essential corporate reports for the next two weeks. The FRC will soon announce measures to ensure companies and auditors “take the necessary time in these uncertain times to prepare appropriate disclosures and address current practical challenges.”
“Recent unprecedented events mean that the basis on which companies are reporting and planning is changing rapidly. It is important that due consideration is given by companies to these events in preparing all reporting,” the FRC said in an emailed statement.
ECB’s Villeroy Backs Europe’s Rescue Fund (3:07 p.m. HK)
Bank of France Governor Francois Villeroy de Galhau said Europe’s rescue fund should be activated to lend to states struggling with the coronavirus outbreak, a move that could pave the way for further sovereign bond purchases by the European Central Bank.Villeroy’s call comes as euro-area officials consider a plan that would see the European Stability Mechanism set up multiple credit lines for euro-area nations. Such a step would be necessary, although not sufficient, for the ECB to undertake bond buying under its Outright Monetary Transactions program.
Airbus Pulls Outlook, Dividend to Bolster Funds (2:48 p.m. HK)
Airbus SE said it’s withdrawing its earnings guidance and proposed dividend payout as part of a range of measures to bolster liquidity as the coronavirus pandemic rips through the aviation industry.
The payout to shareholders of 1.8 euros a share, valued at 1.4 billion euros ($1.5 billion) in total cash, will be pulled, Airbus said in a statement Monday. The company also converted a credit facility of about 5 billion euros into a new line amounting to 15 billion euros. In total, the Toulouse, France-based company now has about 30 billion euros in available funds, it said.
WHO Warns Against Scams (2:41 p.m. HK)
Criminals are increasingly trying to steal money or sensitive data by claiming to be from the World Health Organization, which warned individuals to verify the authenticity of any request. The only call for donations the WHO has made is the COVID-19 Solidarity Response Fund, and any other appeal claiming to be from the WHO is a scam, it said.
Emirates, Singapore Air Ground Flights (1:25 p.m. HK)
The world’s biggest international carriers continued to announce drastic measures to cope with the coronavirus outbreak, with giants Emirates and Singapore Airlines Ltd. among the latest to slash flights.
Dubai-based Emirates, the world’s largest long-haul airline, is suspending passenger flights to most destinations from Wednesday because travel restrictions imposed by governments have put many nations off limits to visitors. Singapore Airlines said it’s cutting 96% of its capacity through April, mirroring an announcement by Hong Kong’s Cathay Pacific Airways Ltd. on Friday.
Trump to Make Decision on Measures After 15 Days (12:33 p.m. HK)
U.S. President Donald Trump said his administration will make a decision as to “which way we want to go” regarding coronavirus measures after a 15-day period. “WE CANNOT LET THE CURE BE WORSE THAN THE PROBLEM ITSELF,” Trump said in a tweet.
Thailand Reports 122 More Cases (12:23 p.m. HK)
Thailand’s coronavirus cases rose by 122, bringing the total in the country to 721. Some of the new cases are related to existing clusters from a boxing stadium event, as well as to overseas travel or foreign arrivals, Taweesilp Witsanuyotin, a spokesman for the Health Ministry, said in a briefing.
Thailand’s confirmed cases rank fifth in Asia, behind China, South Korea, Malaysia and Japan.
Amazon Delivery Delays on Many Products Extended (11:38 a.m. HK)
Amazon.com Inc.’s delivery delays of non-essential goods will extend for at least another month for many customers in the U.S. and Europe, stirring panic among online merchants who rely on the web retailer for business. The lengthening delivery times come on top of confusion over how the company identifies essential products, a task that appears to be performed by algorithms with little human oversight.
Japan to Impose Quarantine on Arrivals From U.S. (11:35 a.m. HK)
Prime Minister Shinzo Abe said Japan will ask people coming from the U.S. to go into a voluntary quarantine for 14 days after arrival. The measure will be in effect from March 26 to the end of April, he said. The restrictions are being imposed as coronavirus cases spiral to more than 30,000 in the U.S.
Facebook Donates Emergency Wildfire Mask Stash (10:31 a.m. HK)
Mark Zuckerberg said Facebook Inc. has donated its emergency reserve of 720,000 face masks, joining other tech corporations declaring aid in fighting the coronavirus pandemic. Facebook built up a stockpile of masks in case wildfires in its home state of California persisted. It’s now donated that supply, the Facebook chief executive officer said on his feed without specifying recipients.
China’s Top Envoy to U.S. Breaks With Foreign Ministry (10:15 a.m. HK)
China’s ambassador to the U.S. reaffirmed his opposition to promoting theories that the virus that causes Covid-19 originated in an American military lab, in an unusual break with the country’s foreign ministry.
Chinese Ambassador Cui Tiankai said in an interview with “Axios on HBO” that he stood by his Feb. 9 statement that it would be “crazy” to spread such theories. Since his original remarks, the Ministry of Foreign Affairs in Beijing has repeatedly posted statements speculating about a possible U.S. origin for the virus, which was first detected in the central Chinese city of Wuhan.
Cui’s comments represent a sharp public rebuke to Foreign Ministry spokesman Zhao Lijian, who has publicly questioned whether the virus originated in China and even touted the idea that it may have been introduced by U.S. Army athletes.
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