(Bloomberg) — Iran and South Korea reported another surge in coronavirus infections, while New York City, Brussels and Berlin reported their first cases. The OECD warned that global economic growth will sink to levels not seen in more than a decade and stocks resumed declines.
The European Union set up a special team to deal with the outbreak as cases rose from Italy to Spain. Earlier, central banks pledged to respond to the rout in markets. Goldman Sachs predicted the Federal Reserve will cut rates by half a point and money markets are anticipating a 25 basis-point reduction from the Bank of England this month.
Key Developments
Global cases reach 89,000; death toll rises to 3,044Iran cases surge 50%, top 1,500; 4,335 infected in S. KoreaCoronavirus drives China factories to record slumpJPMorgan warns equities will remain under pressure
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China’s Xi Urges Faster Development of Vaccine (6:59 a.m NY)
Chinese president Xi Jinping called for accelerating research and the development of medicines targeting the new coronavirus and combining medical measures in both China and the western countries, China Central Television reported.
U.S. President Donald Trump is set to meet with pharmaceutical industry executives at 3 p.m. Washington time on Monday. His coronavirus task force, led by Vice President Mike Pence, will meet at 4 p.m. Coronavirus response coordinator Deborah Birx will then brief the media at 5 p.m. local time.
Paris’s Louvre Museum Remains Shut (6:37 a.m. NY)
The Louvre museum in central Paris remained closed on Monday as staff declined to turn up because of worries over the coronavirus outbreak. Employees at the world’s most-visited museum stopped work on Sunday under rules designed to protect against serious health risks.
Downside Risks Materializing, Gentiloni Warns (6:27 a.m. NY)
The EU’s executive arm has set up a special team to help coordinate governments’ response. The European Center for Disease Control had earlier updated its assessment for the risk of infection in Europe to moderate-to-high from low-to-moderate.
Meanwhile, EU Economy Chief Paolo Gentiloni offered a bleak outlook for the economy. Downside risks to the economy are materializing, he said, adding think that the idea of a v-shaped recovery that was presented 15 days ago “could prove optimistic.”
EU finance ministers are scheduled to have a teleconference on March 4 to discuss the situation in different countries and coordinate their response. An extraordinary meeting of the bloc’s health ministers is scheduled for March 6.
S&P Futures Reverse Gains (6:14 a.m. NY)
S&P 500 futures reversed earlier gains and turned flat amid growing worries over the spread of the coronavirus and its impact on the global economy. In Europe, the Stoxx 600 Index was down 0.3% after gaining as much as 2.3% in early trading as autos, banks and travel & leisure stocks resumed their sell-off.
Putin’s Plan to Revive Russian Growth Dented (6:03 a.m. NY)
The coronavirus outbreak may be about to upend Russian President Vladimir Putin’s carefully constructed plan to revive growth. Oil prices plummeted the most in more than a decade last week and the ruble dropped. Finance Minister Anton Siluanov said that the country is bleeding about 1 billion rubles ($15.3 million) a day in losses from its trade with China.
Austria Says Vienna Meeting Is OPEC Decision (6:58 p.m. HK)
It is OPEC’s decision whether or not to proceed with a meeting in Vienna this week, Austria said. while recommending the group consider recommendations from the World Health Organization as the coronavirus forces the cancellation of events around the world.
While Austria itself has reported only a handful of cases of the disease in people returning from foreign countries, one of OPEC’s most important members, Iran, is experiencing a severe outbreak that has infected government officials and prompted curbs on international travel.
BlackRock Postpones Events, Goldman Halts Travel (6:32 p.m. HK)
BlackRock canceled its Iberia Investment Day 2020 event in Madrid on March 3 due to concerns about the coronavirus and postponed an investment conference to be held in Warsaw next week.
Separately, Goldman Sachs Group told staff that all non-essential business travel should be postponed “effective immediately,” Reuters reported. Earlier, Vodafone asked its staff not to travel for business until March 31.
Cases Surge in Iran (6:21 p.m. HK)
Iran, the hub of the outbreak in the Middle East, said the number of confirmed cases surged by 523 to 1,501. So far 66 people have died from the infection, the health ministry said. It said 7,280 suspected cases were sent to hospitals and 4,312 were tested.
Lombardy Regional Government to be Tested (6:14 p.m. HK)
All members of the Lombardy regional government are undergoing tests after one member tested positive, Health Secretary Giulio Gallera said in a Facebook video. Governor Attilio Fontana had said last Wednesday that one of his staff tested positive for the virus, and that although he remained healthy, he was putting himself in isolation.
Confirmed cases in the Italy jumped by more than 500 to 1,694 on Sunday with 41 deaths. Lombardy, the region that includes Milan, accounted for almost 1,000 cases.
Virus Pushes Global Economy Toward Contraction (6 p.m. HK)
Global economic growth will sink to levels not seen in more than a decade, challenging central banks and governments to respond to a fast-changing situation, the Organisation for Economic Cooperation and Development said.
As central banks around the world try to calm a market panic, the Paris-based group also warned of a possible global contraction this quarter. It cut its full-year growth to 2.4% from 2.9%, which would be the weakest since 2009.
Portugal Records First Confirmed Case, RTP Says (6 p.m. HK)
Portugal confirmed its first coronavirus case on Monday. The 60 year-old male patient, who is in “good” health at a hospital in the northern city of Oporto, had been on vacation in northern Italy and started having symptoms on Feb. 29, Health Minister Marta Temido said at a press conference in Lisbon.
Cases Rise in Germany, Belgium (5:22 p.m. HK)
The number of cases in Germany has risen to 150, from 129, according to the latest figures from the Robert Koch Institute. More than half, or 86, are in the western state of North Rhine-Westphalia, while the capital Berlin reported its first case.
Separately, Brussels reported its first infection — a person who had traveled from a coronavirus risk area and will stay in quarantine — the Belga news agency said, citing official sources. Belgium now has eight confirmed cases and federal government ministers will meet on Monday.
Earlier on Monday, Austria sent back a bus with 45 students coming from the German city of Aachen because one of the students had been in contact with an infected person. Deutsche Telekom canceled a cyber security conference scheduled for March 11 in Bonn and DMG Mori closed its location in Pfronten, Germany after one of its workers was infected.
India Reports Two More Cases (5:15 p.m. HK)
Two people have been diagnosed with the new coronavirus in India — one in the country’s capital New Delhi and another in the southern state of Telangana, the Press Information Bureau of India reported Monday. Stocks fell and the rupee declined to a 15-month low.
Earlier, Indonesia confirmed its first cases. A 64-year-old woman and her 31-year-old daughter — who had recently been in contact with a Japanese tourist — have been infected.
Credit Suisse May Split Teams (5:10 p.m. HK)
Credit Suisse Group AG is considering splitting teams in Switzerland into different offices to ensure business can continue, which would be an extension of what has already been rolled out in Asia, according to a person familiar with the matter. The bank is also weighing whether to ask employees in the country to work remotely.
Virus Threat Dogs Israel’s Third Election in a Year (4:40 p.m. HK)
Even Israelis under quarantine for the coronavirus get to vote in the country’s third election in a year. Special tents with transparent panels that will allow election officials to supervise the process have been set up, and voters will be asked to don masks and gloves.
Hong Kong Retail Sales Tumble for 12th Straight Month (4:38 p.m. HK)
Hong Kong retail sales by value tumbled again in January, entering a 12-month losing streak after a Lunar New Year holiday interrupted by the coronavirus outbreak and amid months of anti-Beijing protests.
Italy’s Misiani Sees Deficit-GDP at 2.4% (4:37 p.m. HK)
Italian Deputy Finance Minister Antonio Misiani sees the 2020 budget deficit-GDP ratio reaching 2.4% on measures to boost the economy. The government had expected the ratio at 2.2% and new measures would add 0.2 percentage points, Misiani told the Italian daily Il Messaggero.
Italy’s government is seeking to widen the nation’s budget deficit to pay for at least $4 billion in proposed emergency economic measures as it grapples with Europe’s worst coronavirus outbreak.
Central Banks Step In; G7 Finance Ministers to Meet (4:29 p.m. HK)
Global central bankers pledged action aimed at stabilizing markets rattled by the outbreak as pressure builds on them to ease monetary policy to safeguard their economies. Goldman Sachs economists say central banks may deliver the reductions in tandem for the first time since 2008. Stocks rallied and Europe’s debt risk fell the most since September.The Bank of Japan said in an emergency statement that it would strive to provide ample liquidity and the Bank of England followed up with a pledge to ensure all necessary steps are taken to protect stability. The commitments came after Federal Reserve Chairman Jerome Powell opened the door to cutting interest rates in the U.S.
Separately, French Finance Minister Bruno Le Maire said Group of Seven finance ministers need to ensure that their responses are “as coordinated as possible” in order to be effective. They will hold a teleconference this week and there will be “concerted action,” Le Maire said, adding he spoke to U.S. Treasury Secretary Steven Mnuchin on Sunday.
South Korea Adds More Cases (4:22 p.m. HK)
The country reported 123 more cases, taking its tally to 4,335. Earlier on Monday, Jung Eun-kyeong, the director of the Korea Centers for Disease Control and Prevention, said the nation’s coronavirus fatality rate stood at 0.5% — with the figure spiking to 3.7% for people aged 80 and older.
Lufthansa Extends Mainland China Flight Suspension (4:15 p.m. HK)
Lufthansa extended a suspension of flights to mainland China until April 24 and to Tehran until April 30, according to a statement. The airline will also cut capacity to Italy.
New York City Reports First Case (10:22 a.m. HK)
Governor Andrew Cuomo said New York state’s first case had been discovered in a lab in Albany, adding that there was no reason for undue anxiety and that the general risk in New York remained low. The infected woman, in her late thirties, contracted the virus while traveling in Iran, Cuomo said, and was in isolation at home. He said she had respiratory symptoms and was not in serious condition.
Seattle, King County Report Second Virus Death (10:17 a.m. HK)
Health officials in Seattle, the county seat, confirmed the deaths in a statement and also said four additional cases had been reported, bringing the the total number in the area to 10. The new infections impacted the elderly, including a woman in her 80s, another in her 90s, and two men in their 70s.
–With assistance from Adveith Nair, Zaid Sabah, Dominic Lau, Max Zimmerman, Derek Wallbank, Jihye Lee, Iain Rogers, Joost Akkermans, Sybilla Gross, Boris Groendahl, William Horobin, Aoife White, Tommaso Ebhardt and Patrick Winters.
To contact Bloomberg News staff for this story: Karen Leigh in Hong Kong at [email protected];Steve Geimann in Washington at [email protected]
To contact the editors responsible for this story: Stuart Wallace at [email protected], Adveith Nair
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