(Bloomberg) — German Chancellor Angela Merkel pledged to do “whatever is necessary” to face the crisis. Confirmed cases globally topped 119,000 after a surge in Iran and Italy, where the government will spend $28.3 billion to help combat the outbreak.
The Bank of England cut interest rates and the European Central Bank’s president warned of a significant economic shock. U.K. and European stocks advanced, while U.S. equity futures dropped after the Trump administration failed to to offer details on its economic package.
Key Developments:
Confirmed cases top 119,000 globally; 4,241 deadCure depends on rare lab mice, but there aren’t enough of themAboard Air Force One, Trump was shaken into action on virusFed faces debate on whether and how quickly to cut rates to zero
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Merkel Says EU Must Work in Concert to Fight Spread (7:03 a.m. NY)
German Chancellor Angela Merkel said European Union member states will act in concert to slow the spread of the deadly coronavirus, calling for the bloc to maintain economic life even as it mobilizes to fight the epidemic. Citing virology experts, Merkel said that without natural immunity against the virus, and a lack as yet of vaccination or therapy options, as much as 70% of the population is at risk.
Italy Announces $28 Billion Plan to Cushion Economy (6:52 a.m. NY)
Italian Prime Minister Giuseppe Conte’s government is ready to spend as much as 25 billion euros ($28.3 billion) on stimulus measures to shield the economy from Europe’s worst outbreak of the coronavirus.
Finance Minister Roberto Gualtieri said the cabinet is likely to approve a first package worth about 12.5 billion euros by Friday. The rest will be a reserve to pay for any further measures, he said in a joint press conference with Conte on Wednesday. Gualtieri said the government will ask parliament to increase the country’s deficit targets by 20 billion euros.
Cases Jump in Iran, Switzerland (6:53 a.m. NY)
Iran reported 958 new coronavirus infections, taking its tally to 9,000. Iran’s death toll now stands at 354 after 63 people died over the past 24 hours, Jahanpur said. The country earlier urged the U.S. to ease sanctions that have been preventing the Islamic Republic from importing medicines and food needed in its efforts to fight the coronavirus outbreak.
The number of cases in Switzerland rose to 645 from 476 on Tuesday, Patrick Mathys, head of crisis management at the Federal Office of Public Health, told reporters in Bern. He said the canton most affected was Ticino, which borders Italy, with 120 cases. The government said there is currently no legal basis to close the border with Italy.
Sunak Says U.K. Has Economic Tools to Overcome Virus (6:37 a.m. NY)
Coronavirus is “front and center in our minds” U.K. Chancellor of the Exchequer Rishi Sunak tells cabinet on Wednesday ahead of delivering budget statement to House of Commons later on Wednesday.
Olympic Official to Raise Possibility of Delay: Kyodo (6:36 a.m. NY)
Japanese Olympic organizing committee executive member Haruyuki Takahashi plans to propose next month that the committee consider the possibility of postponing the 2020 Games, Kyodo reported, citing a phone call with Takahashi. Olympics minister Seiko Hashimoto had earlier called postponement “inconceivable,” while acknowledging that the final decision rests with the International Olympic Committee.
SoftBank’s Son Offers Free Tests (6:14 a.m. NY)
“I would like to provide PCR tests to the many that are uneasy about the coronavirus, and will start with 1 million tests,” SoftBank founder Masayoshi Son said in a tweet.
Turkey Acts Against 29 for Posts on Coronavirus (6:12 a.m. NY)
The posts on social media aimed to “create concern in the public,” state-run Anadolu Agency reported. Turkey earlier confirmed the first case of coronavirus had been identified in the country. “A male Turkish citizen has tested positive for coronavirus on Tuesday evening,” Health Minister Fahrettin Koca said.
The person contracted the virus from Europe and his family has been placed under monitoring. Vacations for all health personnel have been canceled as a precaution.
Next Week’s U.K.-EU Brexit Trade Talks Still On (6:04 a.m. NY)
Next week’s round of trade talks between the U.K. and European Union are still set to go ahead, officials said, amid growing speculation the coronavirus outbreak may force them to be delayed. The negotiations, set to be held in London between March 18 and 20, are being kept under review. A decision to delay them could yet be made in coming days.
China Seeks to Boost Foreign Investment Despite Virus (5:55 p.m. HK)
China will continue to expand support measures to attract foreign investment this year as it revises the list of where these firms are encouraged to invest, National Development and Reform Commission said.
Poland Shuts Schools and Cinemas (5:52 p.m. HK)
Poland’s government shut schools for the next two weeks as part of its campaign to contain the spread of the coronavirus, Prime Minister Mateusz Morawiecki said. About 6 million school and preschool children, along with 1.2 million university students will be affected. The government will also close museums, cinemas and cultural centers. Poland has confirmed 25 cases.
Universal Studios Japan to Extend Closure (5:52 p.m. HK)
Universal Studios Japan will extend its shutdown to March 22 to help prevent the coronavirus from spreading. USJ has been closed since Feb. 29 and the extension is in response to a government request on cancellation of large events.
Earlier, Oriental Land Co. delayed the re-opening of the Tokyo Disneyland and DisneySea resorts until at least early April, following a call by Prime Minister Shinzo Abe to extend cancellations of large events for another 10 days as Japan battles the spread of coronavirus. Oriental Land, which operates the resorts, had initially planned to keep the parks shut until March 15, having closed them on Feb. 29.
Natixis-backed H2O Funds Hammered in Virus Rout (5:48 p.m. HK)
H2O Asset Management suffered heavy losses of as much as 30% across its funds during Monday’s market rout, adding to severe declines that have pummeled its strategies over the past month. The firm saw record daily drops in at least three of its money pools as coronavirus fears and an oil-price plunge rocked markets. H2O’s Multiequities fund lost about 30%, its biggest ever daily loss, erasing about six years of gains. Its Multibonds strategy lost 20%, while the firm’s flagship Allegro strategy fell 18%.
Brevan Howard Asset Management’s flagship hedge fund, however, rose 6.8% last week as the escalating coronavirus outbreak rocked markets.
Seoul City Confirms Total 69 Cases from Call Center (5:37 p.m. HK)
Seoul Metropolitan Government confirmed a total of 69 coronavirus cases related to a call center in Guro District, according to a text message from the city office. Total tally in Seoul rises to 217, as of 5pm Korea Time
BOE Has More Policy Space If Needed (5:20 p.m. HK)
Incoming Governor Andrew Bailey said the Bank of England had more policy space if needed and noted the monetary policy committee was scheduled to meet later this month. The central bank had earlier cut interest rates in an emergency move and announced measures to help keep credit flowing through the economy. The move to cut the benchmark rate by 50 basis points came a week after the Federal Reserve slashed its main rate, and just hours before the U.K. government announces its budget.
The European Central Bank, which holds its policy meeting tomorrow, is expected to join the growing wave of crisis easing with its own measures. Its president Christine Lagarde said Europe risks a major economic shock similar to the financial crisis unless leaders act urgently. Earlier on Wednesday, Iceland’s central bank cut its benchmark interest rate to its lowest level ever at an emergency meeting.
Brazil to Scale Back Privatization Push (5 p.m. HK)
The Brazilian government decided to focus efforts in the privatization of two companies for now, adjusting its ambitious estimates amid the fallout from the coronavirus epidemic, an official with direct knowledge of said.
Nigeria Plans Steps to Counter Economic Fallout (4:57 p.m. HK)
Nigeria’s fiscal and monetary authorities will announce measures in coming days to deal with the economic fallout from the coronavirus outbreak. “We will not hesitate to deploy additional measures to shield the Nigerian economy from headwinds,” central bank Governor Godwin Emefiele said at a conference in the capital, Abuja, on Wednesday.
Trump Retweet Fuels Tensions With Beijing (4:50 p.m. HK)
Both U.S. President Donald Trump and China’s Xi Jinping have good reasons to deflect political blame for the coronavirus outbreak. And that has both of them zeroing in on the pathogen’s name.
As the disease formally designated as COVID-19 expands across the U.S., Trump and other top Republicans have sought to highlight the outbreak’s foreign origin and even use it to justify curbs on immigration — including a wall on the southern border with Mexico. On Tuesday, Trump retweeted supporter Charlie Kirk calling it the “China virus” — with the president agreeing “we need the Wall more than ever!”
Beijing Tightens Quarantine Measures for Inbound Visitors (4:41 p.m. HK)
Beijing will quarantine all inbound visitors from overseas for 14 days, Zhang Qiang, an official of the city’s party committee, said. Beijing earlier quarantined inbound travelers from South Korea, Italy, Iran and Japan.
Belgium Has First Death From Coronavirus (4:31 p.m. HK)
The Belgian government announced the first death from the coronavirus Wednesday, according to Belga News Agency. The victim was a 90-year-old treated in Brussels. Belgium so far has 267 confirmed cases of the virus.
Heathrow Introduces Regular Deep Cleaning (4:31 p.m. HK)
London Heathrow airport has introduced regular deep cleaning across all terminals, it said after two British Airways baggage handlers last week tested positive for coronavirus. Europe’s busiest airport on Wednesday reported an almost 20% drop in Asia Pacific traffic during February.
Virus to Cut Adidas Profit by Half a Billion Dollars (3:41 p.m. HK)
Adidas AG said first-quarter sales in China will fall by 800 million euros to 1 billion euros ($908 million to $1.1 billion) because of the coronavirus and that business is slowing in Japan and South Korea. The company said sales in China were 80% below 2019 levels from Jan. 25 through end of February, but since then stores and warehouses have gradually reopened and consumer traffic is slowly picking up.
Abe Faces Rising Calls for More Stimulus (3:39 p.m. HK)
Prime Minister Shinzo Abe still faces calls to put together another large-scale stimulus to shake off the impact of the coronavirus, despite a second round of emergency measures unveiled on Tuesday. Most economists see the world’s third-largest economy falling into recession despite the two rounds of measures aimed at helping struggling businesses and workers.
China’s Hubei Province Allows Some Work Resumption (2:07 p.m. HK)
Hubei, the Chinese province at the center of the coronavirus outbreak, will allow some work resumption after the region was locked down in January. Companies in sectors including utilities, daily necessities and agriculture necessities in Wuhan city and Hubei province can restart production, the provincial government said in a statement.
Three TSA Agents in California Test Positive (1 p.m. HK)
Three Transportation Security Administration agents at Mineta San Jose International Airport in California have tested positive for coronavirus, the agency said. All TSA employees they came in contact with in the past 14 days have been quarantined at home. Santa Clara County, which has reported 45 cases, has banned large gatherings of more than 1,000 people effective midnight Wednesday.
Cathay Projects ‘Substantial’ Loss on Virus (12:38 p.m. HK)
Cathay Pacific Airways Ltd. forecast its first loss in two years as the coronavirus hurts travel demand and aggravates the challenges facing a carrier that battled through the Hong Kong protests last year. Hong Kong’s flag carrier is expecting a “substantial loss” in the first half of 2020, it said in a statement. That would be the first time the company lost money since the first half of 2018.
The airline has slashed capacity to mainland China by 90% and reduced its entire international network by about 40% because of the coronavirus. Cathay, which is particularly exposed to the virus because close to half of its revenue comes from Hong Kong and mainland China, also asked employees to take unpaid leave as it tries to weather the latest crisis.
U.S. Cases Top 1,000 in Johns Hopkins Tally (11:37 a.m. HK)
The U.S. has 1,001 confirmed cases of coronavirus, according to a Johns Hopkins University tally, which also shows 28 deaths in the country. The list includes cruise ship cases, with 46 from the Diamond Princess and 21 from the Grand Princess. The U.S. has shifted into a new phase of its coronavirus response after efforts to stamp out sparks of an outbreak have failed. Authorities now are focusing on limiting damage.
White House to Meet Google, Facebook (9:42 a.m. HK)
U.S. Chief Technology Officer Michael Kratsios will host a meeting Wednesday with Google, Amazon.com Inc., Facebook Inc. and other technology companies to coordinate responses to the outbreak. Social media companies have been attempting to prevent the spread of misinformation, while companies such as Amazon have tried to manage panic selling of goods.
–With assistance from Adveith Nair, Robert Hutton, Sophie Alexander, Jason Scott, Ryan Beene, Justin Sink, Greg Sullivan, Anurag Kotoky, Joyce Cutler, Dina Bass, Golnar Motevalli, Viktoria Dendrinou, Siddharth Philip, Charlotte Ryan, Lisa Du and Jan Dahinten.
To contact Bloomberg News staff for this story: Adveith Nair in London at [email protected];Jeff Sutherland in Tokyo at [email protected]
To contact the editors responsible for this story: Stuart Wallace at [email protected], Adveith Nair, Angus Whitley
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