(Bloomberg) — Singapore reported more than 1,000 new cases for the third straight day as another surge among migrant workers living in dormitories pushed total infections past 10,000. New coronavirus cases in Germany stayed close to a three-week low as the country begins gradually lifting lockdown measures.
The European Central Bank has a call on Wednesday where it may discuss new help for lenders, while the U.S. Senate sent a $484 billion package of new relief funds to the House for likely approval on Thursday.
The Chinese ambassador to the U.S. called for a “serious rethinking” of relations between the world’s biggest economies in the face of the pandemic. Earlier, President Donald Trump stopped short of a sweeping immigration ban, but hinted at possible additional restrictions.
Key Developments
Virus Tracker: Cases top 2.5 million; deaths exceed 175,000China’s coronavirus handling aggravates European diplomatsMoon calls for Korean ‘New Deal’ to create jobs after pandemicFar-right social media helps galvanize U.S. quarantine protestsIndia’s young population could make herd immunity work thereIsraeli investors proposed a build-it-yourself breathing machine
Subscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click VRUS on the terminal for news and data on the coronavirus.
Russia Cases Rise 10% (3:49 p.m. HK)
Confirmed coronavirus cases rose by 5,236, the government’s virus response center said. That is a small decrease from the 5,642 infections reported on Monday, but the number of new daily cases has now remained above 4,000 for six straight days. The death toll rose by 57 to 513.
Corporate Roundup (3:45 p.m. HK)
Heineken NV canceled its interim dividend and said its board will take a pay cut to mitigate the impact, while Kering said it doesn’t see a recovery in the U.S. or Europe before at least June or July after sales at its flagship brand Gucci tumbled. Read the European earnings wrap here.
Akzo Nobel NV rose after earnings topped expectations, but the company said shoppers will need to “have money in their pocket” before shelling out for decorative paints. In one of the only industries cushioned from the virus, Roche Holding AG advanced after saying it still sees a small profit gain this year as demand for its medicines holds up and the drugmaker works on developing tests for Covid-19.
Meanwhile, UniCredit SpA became the first big European bank to try to quantify the impact of the coronavirus, setting aside 900 million euros ($977 million) to cover potential loan losses stemming from the outbreak.
Earlier, Netflix Inc. reported explosive growth as locked-down families binge-watch its programs and Chipotle Mexican Grill Inc’s loyalty program is helping it connect with customers. Macy’s is looking to raise as much as $5 billion in debt, CNBC reported, while United Airlines Holdings Inc. and Delta Air Lines Inc. are in talks with banks on new debt issuance.
Singapore Sees Another Jump in Cases (3:15 p.m. HK)
The total number of coronavirus cases in Singapore exceeded 10,000 on Wednesday as infections among migrant workers living in dormitories continued to surge. As of noon, the city-state preliminarily recorded 1,016 new cases, bringing the total number of infections to over 10,000. Of the new cases, the vast majority are work permit holders living in dormitories across the island, while 15 cases are Singaporeans or permanent residents.
Low-wage foreign workers comprise a fifth of the overall population in Singapore, but largely live separate from the local community. More than 200,000 of the laborers, many of whom toil on Singapore’s construction sites, live in dormitories.
China Plans Tighter Controls to Counter Social Unrest Over Virus (3:09 p.m. HK)
The Chinese government is ramping up efforts to curb emerging social unrest in the aftermath of the coronavirus outbreak, as the country faces an economic downturn that could leave millions of people unemployed.
The ruling Communist Party has formed a task force of law enforcement officials to “defend political security” and “resolve conflicts related to the coronavirus outbreak,” according to a report from the official Xinhua News Agency. The group held its first gathering on Tuesday.
China Considers Late May for Legislative Gathering (2:31 p.m. HK)
China is considering holding its highest-profile annual political meeting in late May, according to people familiar with the matter, after it was postponed for the first time in decades amid the coronavirus pandemic.
The gathering of the National People’s Congress, usually runs for about two weeks in Beijing and is attended by President Xi Jinping and other top leaders. At least one set of dates being considered is May 23-30, according to the people, who asked not to be identified.
The NPC is the venue for announcing key annual economic targets. This year’s goal’s will be closely watched after the pandemic pushed China’s economy into its first contraction in decades in the first quarter.
Pandemic May Set Back 5G Rollouts in Europe (1:31 p.m. HK)
Europe risks falling further behind on fifth-generation mobile networks as phone carriers postpone upgrades to the latest cellular technology due to coronavirus lockdowns, Ericsson AB said.
The pandemic is already making it harder for the Ericsson, a key communications equipment supplier, to deliver its services, though this had only a limited effect on operating income and cashflow during the first quarter, the company said in a statement.
First U.S. Death Came Earlier Than Thought (1:12 p.m. HK)
The first U.S. coronavirus death appeared to have come weeks before the Feb. 29 date that officials have pinpointed, according to autopsy results of two cases released by Santa Clara County, in California, Axios reported.
Samples from two people who died on Feb. 6 and Feb. 17 were sent to the Centers for Disease Control and Prevention, which confirmed they both tested positive for the virus that causes COVID-19, according to a statement from the county. That’s earlier than the previously-thought first-known death from the virus — a Washington state patient who died Feb. 29. The first confirmed U.S. case arrived in Washington state from Wuhan on Jan. 15, according to the CDC.
Taiwan Navy Ship Outbreak Raises Concerns (12:12 p.m. HK)
A coronavirus outbreak on one of Taiwan’s navy ships has raised concerns that a re-infection could threaten one of the world’s success stories in the fight against the pandemic.
Twenty-seven sailors on a navy-supply ship were confirmed to have the virus shortly after it returned from a visit to Palau this month. Taiwan’s defense minister apologized Tuesday night and said he was willing to resign if requested to do so by President Tsai Ing-wen. Tsai said Wednesday an investigation is under way and punishment will follow its completion.
South Korea Plans Third Extra Budget (10:51 a.m. HK)
South Korean President Moon Jae-in ordered the government to draw up third extra budget to help key industries suffering from coronavirus outbreak and to secure jobs.
A 40 trillion won ($32 billion) fund will be created to provide liquidity and payment guarantees to companies, Moon announced after leading emergency meetings on the economy on Wednesday. An existing program will be expanded by 35 trillion won, to help mom and pop stores, purchase corporate bonds and provide liquidity to companies with lower ratings. In addition, some 10 trillion won will be used to help stabilize employment.
China’s Banks Saw Surge in Bad Loans (10:36 a.m. HK)
Bad debt at Chinese banks climbed in the first quarter after the coronavirus outbreak brought the world’s second-largest economy to a standstill.
The non-performing loan ratio rose to 2.04% at the end of March, the China Banking and Insurance Regulatory Commission said on Wednesday. The ratio stood at 1.86% in December. Lenders delayed 880 billion yuan ($124 billion) in loan repayments for smaller businesses in the period, the regulator said at a press briefing in Beijing.
European banks are also bracing for a surge in troubled loans, along with a hit to trading revenue.
Tokyo Governor Considers Supermarket Restrictions (9:26 a.m. HK)
Tokyo Governor Yuriko Koike said the metropolitan government is considering measures to reduce crowding at supermarkets, which it believes poses a risk of spreading the coronavirus. Koike said Wednesday she wants to implement measures quickly, and will look at asking supermarkets to limit the number of customers that can enter at once or observe social distancing when lining up.
While Japan has thus far avoided the explosive surge in cases seen in other parts of the world, a continued steady rise over the last month forced the government to declare a state of emergency. The number of confirmed cases in Japan stood at 11,135 as of Wednesday morning, according to data collected by Johns Hopkins University and Bloomberg News.
Australia’s Bondi Beach to Reopen (8:27 a.m. HK)
Sydney’s famous Bondi Beach will reopen next week for swimming and surfing. That’s after Australia’s government said Tuesday that lockdown measures have led to a “sustained and consolidated” slowdown in new coronavirus cases.
A month after being closed to the public, the local council announced it will lift the bans on Bondi and nearby Bronte and Tamarama beaches from next Tuesday, while limiting opening hours to weekdays between 7 a.m and 5 p.m, the Australian Broadcasting Corp. reported. Access will be restricted to water activities, with sunbathing and gathering on the sand still prohibited.
The country separately reported Wednesday that retail sales soared by the most on record in March, as households embarked on a buying frenzy led by massive purchases of toilet paper.
Improvement in U.S. Metropolitan Areas (6:40 a.m. HK)
Almost all major U.S. metropolitan areas are seeing improvements in their outbreaks, said Deborah Birx, a top health official on the Trump administration’s coronavirus task force. She spoke after data showed that the nationwide infection tally had accelerated.
Cases appear to be flattening in areas including Chicago and Boston, while New Orleans is back to its baseline for infections, Birx said at the daily White House briefing. Philadelphia, Houston, Atlanta and Nashville are also among cities improving, she said. The Washington, D.C., region is one where “we don’t see a decline yet,” Birx said.
Hackers Target Top WHO Officials (6:31 a.m. HK)
Top officials at the World Health Organization are being targeted by hackers as they work on the global response to the coronavirus pandemic. The WHO’s security team has seen an increasing number of attempted cyber-attacks on the officials since mid-March, according to the organization’s chief information officer, Bernardo Mariano. WHO itself hasn’t been hacked, but targets have included WHO Director General Tedros Adhanom Ghebreyesus, as well as Bruce Aylward, a senior WHO envoy who led a Covid-19 response team in China.
Trump to Ask Big Companies to Repay Aid (6:15 a.m. HK)
President Donald Trump said he’ll ask larger companies to return money they accessed from the federal stimulus package because it was intended to help small businesses. Speaking at the same press conference, Treasury Secretary Steven Mnuchin threatened “severe consequences” for those who take money from the program without meeting the criteria and fail to return it.
Trump also said Harvard University had received funds intended for small business and he would be asking the university to “pay it back.” A Harvard spokesperson denied the university had applied for or received such funds. Harvard said it got funds as part of the CARES Act Higher Education Emergency Relief Fund, and pledged to use all the money for students facing urgent financial needs due to the pandemic.
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