(Bloomberg) —
Spain had its deadliest day yet and Germany’s public health authority warned that the nation is just starting its fight against the virus. In Britain, the government moved to shut parliament and Prince Charles, the heir to the throne, tested positive.
Donald Trump’s administration reached a deal on a package to combat the fallout from the virus while European Union leaders inched toward a rescue package and Germany closed in on a historic bailout.
Trump said he’s hoping to have the economy reopened by mid-April, even as California’s governor said it would be misleading to suggest his state could emerge from its shutdown by then. In Brazil, President Jair Bolsonaro also urged the country to resume normal life to protect the economy.
Key Developments:
Cases top 435,000; 19,625 dead, 111,822 recovered: Johns HopkinsTrump will stop using the term “Chinese virus,” easing blame gameTokyo asks people to stay inside as new cases spur lockdown riskIndia locked down, U.K. shuts parliament; Iran, Singapore tighten curbsFired Americans send state unemployment websites crashing downThe humming of Chinese plants returns as rest of world reels
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Ackman Puts Part of His Fortune in Covid-19 Testing (9:04 a.m. NY)
Bill Ackman said he invested a portion of his personal wealth to help manufacture antibody testing kits produced by Covaxx, a newly formed subsidiary of closely-held United Biomedical Inc.
Ackman has repeatedly called for a complete shutdown of the U.S. for 30 days to help combat the spread of the virus. He has also called for antibody testing, like the one Covaxx develops, across the country to determine who has already contracted the virus.
Bullard Says 2Q Will See Most Pandemic Disruption (8:52 a.m. NY)
St. Louis Fed President James Bullard told CNBC the second quarter is likely to see the most disruption from the coronavirus outbreak, but the economy should bounce back by year’s end. “If we can get this to work right, everything will snap back to normal once this is over,” he said.
Bullard tempered earlier remarks predicting that the U.S. unemployment rate may hit 30% in the second quarter. “This number will be unparalleled, but don’t get discouraged.”
Switzerland Expands Entry Curbs (8:47 a.m. NY)
Switzerland on Wednesday stepped up the curbs on incoming travel to include all countries within the Schengen area. It previously had limited arrivals from Spain, Italy, Germany, France and Austria.
The Schengen area is a passport-free travel zone among 26 European nations.
Portugal Confirmed Coronavirus Cases Rise (8:35 a.m. NY)
The number of confirmed coronavirus cases in Portugal increased 27% to 2,995 on Wednesday from 2,362. That compares with a daily increase of 15% reported on Tuesday and a 29% gain on Monday.
The total number of deaths increased to 43 on Wednesday from 33 reported through Tuesday morning; 22 patients have now recovered, unchanged from Tuesday. Almost 80% of coronavirus-related deaths in Portugal so far are of people aged 70 or older.
Schumer Expects Senate to Pass Stimulus Deal Today (8:34 a.m. NY)
Senate Democratic leader Chuck Schumer calls the stimulus deal the “art of compromise” and says help is on the way for American workers, state and local governments and small businesses. He told CNN he expects the Senate to pass the bill today.
U.K. Support for Self-Employed Coming Soon (8:29 a.m. NY)
U.K. Chancellor of the Exchequer Rishi Sunak will announce measures to support self-employed workers “in the next couple of days,” Prime Minister Boris Johnson said. “There are particular complexities about the self-employed which do need to be addressed; they are not all in the same position,” Johnson said.
One in 20 Britons has lost a job because of the outbreak and 9% experienced a reduction in hours or pay, according to YouGov. The survey was taken on the first two days of the U.K.’s official lockdown, with the government banning all unnecessary movement of people for at least three weeks and requiring the closure of non-essential businesses. There have been about 477,000 new claims for state support payments, according to the Department for Work and Pensions.
EU Leaders Call for Corona Bonds (8:26 a.m. NY)
Nine EU leaders, including Emmanuel Macron and Giuseppe Conte, urged the introduction of so-called coronabonds in a letter cited by AFP on Wednesday.
India Delays Plans for Population Register (7:50 a.m. NY)
The government has indefinitely postponed plans to begin surveys leading to its next census and a comprehensive population register. The process was to have begun in April and was seen as a precursor to a national citizens register that, along with a new citizenship law, had led to angry protests across India since December.
India is likely to agree on an economic stimulus package of more than 1.5 trillion rupees (about $20 billion), Reuters reported, citing two unidentified people familiar with the plans.
Italian Opposition Pushes Takeover Protection for Weakened Banks (7:50 a.m. NY)
Italy must toughen the rules shielding strategic sectors from hostile takeovers because the coronavirus has left banks, insurance companies and pharmaceutical firms vulnerable to foreign predators, according to a senior opposition lawmaker.
Senator Adolfo Urso, vice-president of the parliament’s security and intelligence committee, said in an interview Wednesday that he will file amendments to the government’s decree on a 25 billion-euro ($27 billion) stimulus package for the economy by Friday afternoon.
Stock Rebound Fades (7:45 a.m. NY)
European equities swung between gains and losses in a volatile session as optimism about a U.S. stimulus package dimmed amid renewed worries over the economic blow from the coronavirus outbreak. The Stoxx Europe 600 Index was up 0.6% after having earlier risen as much as 4.8%. U.S. stock futures declined and Treasuries gained.
Amazon, Walmart Struggle to Cope as India Enters Lockdown (7:45 a.m. NY)
The country’s 1.3 billion people are in a three-week lockdown, sending many to scour the web for food and daily essentials. But unlike in China, where online fresh grocery services offered a lifeline during its Covid-19 outbreak, Indian authorities are stopping food trucks on highways, and shutting down warehouses and rice mills. They’re also preventing delivery and supply-chain workers from doing their jobs.
Europe Working to Unleash Bailout Fund to Aid States (7:44 a.m. NY)
EU leaders are expected to endorse a proposal to set up credit lines with the euro area’s bailout fund worth as much as 2% of each country’s output to help them deal with the outbreak. Leaders “will welcome progress made by the Eurogroup to set up a Pandemic Crisis Support instrument, within the provisions of the ESM Treaty,” according to a draft of a joint statement seen by Bloomberg. The statement is subject to changes.
Stockpiling Gives U.K. Grocers a Bumper Month (7:23 a.m. NY)
An index of grocery sales surged to the highest since 2009, and specialist food and drink stores also posted a strong increase. But retailers’ expectations overall plummeted to the lowest for 11 years, as consumers postponed discretionary purchases in the face of uncertainty about their jobs and health. Clothing and furniture are being especially hard hit, while car sales fell for the first time since November. Even online sales growth, which has boomed in recent years, slowed to below average.
Credit Suisse Suspends Buyback (7:10 a.m. NY)
Credit Suisse Group AG froze its plan to buy back as much as 1.5 billion francs ($1.53 billion) of shares this year. Shareholder and executive compensation has come under scrutiny as governments plan to spend an unprecedented amount of public money to help companies weather the economic disruption caused by the virus.
Europe’s top banking lobby is trying to find common ground among lenders in the region on whether to scrap dividends to conserve capital as the coronavirus batters the economy.
U.K. Health System Can Withstand Pressure, Researcher Says (7 a.m. NY)
Stringent quarantine and social distancing measures the U.K. has taken to suppress the coronavirus should help keep the country’s intensive-care capacity from being overwhelmed, according to Neil Ferguson, an Imperial College London researcher who makes mathematical projections of viral outbreaks. Pressure on ICUs should peak in about two to three weeks, and some hospitals and units will be more strained than others, he told a parliamentary committee on science and technology Wednesday.
U.S. Mortgage Applications Plunge (7 a.m. NY)
U.S. loan applications for buying and refinancing homes plunged last week by the most since the global financial crisis, amid coronavirus shutdowns and related financial turmoil that pushed borrowing costs higher.
Putin Plans Statement to Nation As Cases Soar (6:45 a.m. NY)
Russian President Vladimir Putin is preparing a statement to the nation at around 3 p.m. local time. Putin canceled a planned trip to St. Petersburg on Wednesday and officials are discussing possible changes to an April 22 referendum vote and May 9 military parade. Earlier, Russia reported a 33% jump in coronavirus cases in a day to 658.
Saudi Arabia Locks Down in Riyadh, Two Holy Cities (6:41 a.m. NY)
Saudi Arabia locked down its capital Riyadh and Islamic holy cities of Mecca and Medina. People in the three cities will be prohibited entry or exit, while curfew times there will be extended by four hours, the Saudi Press Agency reported. The country also imposed further travel restrictions on 13 regions.
Deaths Surge in Spain (6:40 a.m. NY)
Spain reported its deadliest day yet with 738 fatalities, taking the total death toll to 3,434. Total cases rose to 47,610 from 39,673. Spain has been rocked by the second-worst outbreak in Europe after Italy, which had its second-deadliest day Tuesday. That dashed hopes the toll of Italian fatalities is declining. Hospitals there are overflowing and the government is struggling to bring the crisis under control.
Still, the latest Italian data showed active cases rose the least in nearly a week — a possible early indication that severe restrictions on movement are slowing the spread of the disease. Confirmed cases in the country now total 69,176.
Virus Hits U.K. State With Charles Sick and Parliament to Shut (6:40 a.m. NY)
The coronavirus crisis hit the highest levels of the British state with the heir to the throne, Prince Charles, testing positive for the disease as the government moved to shut down parliament for four weeks. The U.K. outbreak is most advanced in London and several politicians have fallen ill, including a health minister.
Parliament had been scheduled to break for Easter on March 31, but the House of Commons will close on Wednesday if — as expected — lawmakers vote for the move, British officials said. The Commons would reopen on April 21.
Target Ditches Guidance, Halts Buybacks (6:30 a.m. NY)
Target Corp. dumped the full-year sales and profit forecast it gave just three weeks ago even as sales in March have soared, underscoring the difficulty retailers face in navigating the unfolding crisis.
Citing an “unusually wide range of potential outcomes” for its first-quarter performance and $300 million in additional costs as it scurries to keep shelves stocked, the retailer withdrew its sales, operating profit and earnings-per-share guidance for the first quarter and the full year. It suspended share buybacks and will reduce the number of stores it remodels and opens this year, while giving no update on when testing for Covid-19 will begin in its parking lots.
Death Toll Surges in Belgium (6:15 a.m. NY)
Deaths in Belgium jumped by almost 46% from the prior day to 178, though experts have warned the processing of these numbers can sometimes take a few days. Total cases rose by less than 16% from the prior day to 4,937. Belgian hospitals were treating a total of 2,152 people, more than 470 of them in ICU units.
World Ventilator Demand Now 10-Fold What’s Available (6:10 a.m. NY)
The growing number of patients critically sick with the coronavirus is fueling demand for ventilators to at least 10 times of what’s available at hospitals around the world, said China’s top medical device maker. Shenzhen Mindray Bio-Medical Electronics Co., along with other Chinese ventilator makers, has seen overseas orders surge as countries scramble for more of the machines used in intensive care units.
Iran Tightens Curbs as Cases Rise (6 a.m. NY)
President Hassan Rouhani said the country could face a new wave of infections and the government announced tighter social distancing measures on Wednesday, including a ban on non-essential travel between cities and plans to shutter parks and public gathering spaces.
Fatalities in Iran reached 2,077 after 143 people died from the virus in the last 24 hours. With more than 2,200 new confirmed cases since Tuesday, total infections surged to 27,017.
Germany Sees Beginning of Epidemic (5:33 p.m HK)
Germany is just starting its fight against the new coronavirus, the country’s public health authority said. “I want to emphasize, as I have been doing for a long time, that we are at the beginning of the epidemic,” Lothar Wieler, president of the Robert Koch Institute, said at a press briefing on Wednesday. “Naturally the number of deaths will also rise in Germany.”
Some 32,705 patients have been confirmed with the virus in Germany, up from 28,942 yesterday, according to data from regional health authorities compiled by Bloomberg. So far 154 have died, compared with 118 yesterday.
Germany Closes In on Historic Bailout (4:45 p.m. HK)
Finance Minister Olaf Scholz urged lawmakers to open up debt limits. New borrowing of 156 billion euros ($169 billion), equivalent to half of Germany’s normal annual spending, will be used to fund social benefits and direct aid to virus-hit companies. “There is no blueprint for countering such a crisis,” Scholz said.
Germany’s ruling coalition cast aside infighting to push for emergency powers, abandoning its long-standing balanced-budget policy. Lawmakers will vote on the legislation later on Wednesday. Backed by broad political support, the government plans to unleash a barrage of debt-financed measures totaling more than 750 billion euros. Business confidence in the country collapsed the most in three decades after restrictions to slow the spread of the coronavirus forced mass closures of companies and stores across Europe’s largest economy.
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