(Bloomberg) — President Donald Trump proposed a risk classification system for the U.S. to help businesses return to normal as the nation’s death toll from the coronavirus exceeds 1,000. Italy reported its biggest jump in new cases in the past five days.
China, where the outbreak began, will temporarily suspend the entry of foreigners holding valid visas and residence permits starting Saturday.
Federal Reserve Chairman Jerome Powell vowed to support the flow of credit in the U.S. economy after the Senate passed a $2 trillion package.
Key Developments:
Cases top 510,000; 22,000 dead, 120,000 recovered: Johns HopkinsU.S. death toll tops 1,000; confirmed cases in Canada surge 72%Fauci warns of potential for another cycle of coronavirus infectionsChina’s Wuhan lockdown may delay feared second wave, study showsSpanish doctors are forced to choose who to let die from virus
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Trump Considers Plan to Rank Counties by Risk (2:15 p.m. NY)
President Donald Trump said his administration is working on a plan that would rank U.S. counties into one of three categories as a step toward the relaxing the tight restrictions put in place to halt the spread of the coronavirus.
The administration, using criteria developed based on expanded testing capabilities and in consultation with health officials, proposes to designate countries as high-risk, medium-risk and low-risk. This ranking will help local officials decide on maintaining, increasing or relaxing social distancing and other measures, the president said in a letter to U.S. governors.
“Americans across the country are hoping the day will soon arrive when they can resume their normal economic, social and religious lives,” Trump wrote in the letter released by the White House.
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Italy Virus Cases Rise, Fueled by Lombardy (1:11 p.m. NY)
Italy reported its biggest rise in coronavirus infections in the past five days, as the disease spread further in the northern Lombardy region, even after weeks of rigid lockdown rules.
The civil protection agency reported 6,153 new cases on Thursday, up from 5,210 a day earlier.
Fatalities from the outbreak over the past 24 hours totaled 662, down from 683 for the previous day, according to figures provided at the agency’s daily news conference on Thursday. Confirmed cases in the country now total 80,539.
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N.Y. Patients Staying on Ventilators (12:20 p.m.)
Some New Yorkers are staying on ventilators as long as 30 days, dimming hopes for their recovery and adding to the shortage of the lifesaving machines, Governor Andrew Cuomo said.
Cuomo reported 100 more fatalities, for a total of 385, as hospitals brace for more. The city is deploying refrigerated trailers for use as temporary morgues.
Until the outbreak is under control, Cuomo said officials are focused on reducing the rate of increase, not the reducing the number of cases, so hospitals don’t run out of beds.
New York added almost 6,500 cases, for a total of more than 37,000.
China Blocks Foreigners (11:55 a.m. NY)
China will temporarily suspend the entry of foreigners starting Saturday as cases worldwide surge, the Ministry of Foreign Affairs and National Immigration Administration said on its website.
China has to take “necessary and temporary” measures in response to the current coronavirus situation, using practices of various countries as reference, the agencies said. Adjustments will be made according to the situation, they said.
U.K. Police Get Extra Powers (11:50 a.m. NY)
The U.K. government gave police strengthened enforcement powers to ensure people stay at home unless their trip is essential. From Thursday, the police may issue a penalty of 60 pounds ($73), rising to 120 pounds for second-time offenders.
Those not paying the fine can be taken to court and police can arrest those who continuously refuse to comply.
U.S. Delays New ID Deadline by Year (11:40 a.m. NY)
The U.S. delayed by a year, until October 2021, the deadline for states to issue new identification documents that meet the federal Real ID standards. Chad Wolf, acting Homeland Security secretary, said states needed time because motor vehicle offices that issue driver’s licenses have been closed in response to Covid-19.
U.K. Warns on ‘Coughing’ as Harassment (11:26 a.m. NY)
The U.K. is ready to crack down on coughing as a way to threaten or intimidate police officers and shop workers. The nation’s prosecution office issued a statement after reports that emergency workers were coughed at by people claiming to be infected. That could lead to assault charges and two years in jail, the prosecution service said.
Expo in Dubai Could be Delayed (11:26 a.m. NY)
A global exposition set for Dubai in late October could be delayed for up to a year, a setback for organizers who for years have touted the event as a potential bonanza for the United Arab Emirates. Dubai has spent billions of dollars building hotels and facilities in anticipation of attracting 25 million visitors during the six-month event.
A final decision must be made by member states of the Paris-based International Bureau of Expositions, which awarded the event to Dubai and the U.A.E. in 2013.
Iran Bans In-Country Travel (10:15 a.m. NY)
Iran banned travel between cities and ordered people to return to their hometowns or face fines after millions defied calls to stay indoors and went out to celebrate the Persian new year. President Hassan Rouhani warned of a second surge of the disease after new cases surged followed the holiday period.
Emergency services and cargo vehicles are exempt from the travel ban, the semi-official Tasnim news agency quoted Iran’s police chief as saying.
Europe Shies Away from Retooling Production for Gear (9:36 a.m. NY)
The European Union signaled that efforts to increase the supply of medical gear will involve ramping up existing production capacity. The European Commission said converting production lines at the likes of automotive and aeronautics businesses “would be time-consuming and not always necessarily successful.” The EU’s executive arm commented after President Ursula von der Leyen and European Industry Commissioner Thierry Breton held a phone call with representatives of various businesses.
U.K. Should Brace for $240 Billion Budget Deficit (9:28 a.m. NY)
Britain’s budget deficit could easily exceed 200 billion pounds ($240 billion) in the coming fiscal year as the coronavirus crisis hammers the economy and forces the government to unleash a huge package of fiscal stimulus. The warning came Thursday from the Institute for Fiscal Studies.
Chancellor of the Exchequer Rishi Sunak will announce assistance to the self-employed on Thursday in what will be his fourth set of emergency measures.
Caterpillar Withdraws Forecast, Halts Some Operations (9:11 a.m. NY)
Caterpillar Inc. is suspending operations at some U.S. facilities and withdrawing its 2020 financial guidance. The heavy-equipment maker said Thursday that the virus is starting to affect its supply chain.
Lombardy Data Worse Than Wednesday (9:09 a.m. NY)
The Lombardy region reported about 2,500 new positive coronavirus cases on Thursday, Governor Attilio Fontana said during a press conference on Facebook.
U.S. Jobless Claims Surged to Record (8:31 a.m. NY)
The number of Americans filing for unemployment benefits surged to a record 3.28 million last week. Initial jobless claims in the week ended March 21 were up from 282,000 in the prior week and more than quadruple the previous record high of 695,000 in 1982, according to Labor Department data released Thursday. The figures date back to 1967.
Economists’ projections had ranged as high as 4.4 million.
Faster Virus Tests (8:30 a.m. NY)
Henry Schein said an antibody rapid blood test, known as Standard Q COVID-19 IgM/IgG Rapid Test, is now available. The test is intended to be administered at the point of care and delivers results within 15 minutes from a pinprick with no instrumentation required.
Earlier, Robert Bosch GmbH said it developed a test that can diagnose Covid-19 in less than 2.5 hours. The new test uses the Vivalytic molecular diagnostics platform made by Bosch’s healthcare division, used in hospitals, laboratories and medical practices. Patients typically must wait one or two days before they get test results.
Separately, U.K.-based Mologic Ltd. has sent prototypes of a 10-minute coronavirus test to laboratories for validation before it can begin full-scale manufacturing. The company and its partner, the Senegalese research foundation Institut Pasteur de Dakar, have developed a finger-prick test to determine whether a person had the illness and the state of their immune system. The company is also working on a separate saliva test to detect the presence of the virus.
Walmart Hires Thousands (8:25 a.m. NY)
Walmart Inc. has taken on 25,000 new employees and given offers to thousands more in the first week of a hiring push, as the biggest private employer in the U.S. scrambles to keep its shelves stocked and checkouts staffed.
The retailer has compressed a hiring process that can often take two weeks into as little as three hours by eliminating formal interviews and written job offers.
German Tour Operator TUI Said to Near State Aid (8:20 a.m. NY)
TUI AG, the world’s biggest tour operator, is close to securing almost 2 billion euros ($2.2 billion) in government aid in what’s seen as a litmus test for Germany’s pledge to rescue businesses ravaged by the pandemic.
The company and its adviser reached an agreement with Germany’s state-owned KfW development bank on the terms of loans earlier this week, said the people, who asked not to be identified because discussions are private. That financing package is now with TUI’s lending banks, which are expected to sign off in the coming days, they said.
Portugal Confirmed Coronavirus Cases Rise 18% (8:16 a.m. NY)
The number of confirmed coronavirus cases in Portugal rose to 3,544 as of 11 a.m. on Thursday, an 18% increase from 2,995 on Wednesday morning, the government’s Directorate-General of Health said. Confirmed cases rose 27% on Wednesday from the previous day, following a 15% increase on Tuesday. The total number of deaths increased to 60 on Thursday from 43 reported through Wednesday morning; 43 patients have now recovered, up from 22 on Wednesday.
BOE Warns of Long-Term Damage; Holds Rates (8 a.m. NY)
The Bank of England left rates unchanged, but said it’s ready to provide more support for the economy after warning that a very sharp reduction in activity was likely. The pound stayed stronger in a broad trend for a weaker dollar across global markets and gilts continued to gain.
“Given the severity of that disruption, there is a risk of longer-term damage to the economy, especially if there are business failures on a large scale or significant increases in unemployment,” the central bank said. The BOE has already slashed interest rates by 65 basis points in total in two emergency announcements, taking them to their lowest ever at 0.1%. It also added 200 billion pounds ($239 billion) to its quantitative-easing target, raising it to 645 billion pounds.
Germany in ‘Calm Before the Storm’ (7:50 a.m. NY)
Germany is only in the early stages of the coronavirus epidemic and medical staff there are preparing for their biggest challenge since the Second World War, according to Health Minister Jens Spahn. “Policy makers are in crisis mode,” Spahn said at a news conference in Berlin. “This is still the calm before the storm and nobody can say what will happen in coming weeks.”
Germany has more than 37,000 confirmed cases and 203 deaths, according to data compiled by Bloomberg from regional governments.
Ford Plans Gradual Restart of North American Plants (7:30 a.m. NY)
Ford Motor Co. plans to resume vehicle production in Mexico on April 6, with some U.S. plants cranking up again about a week later. After halting North American production as of March 19 to help slow the spread of the coronavirus, Ford said it’s aiming to restart production first at its factory in Hermosillo, Mexico, which builds the Fusion and Lincoln MKZ sedans.
Ford then plans to restart production on April 14 at plants in Michigan, Kentucky and Ohio that assemble profitable F-Series pickups and commercial vans. Other factories that make transmissions and press metal parts for those vehicles are also due to resume on that day. The F-Series is Ford’s best-selling model and provides most of its profit.
Powell Says Fed Will Keep Credit Flowing (7:18 a.m. NY)
“We will keep doing that aggressively and forthrightly, as we have been,” Powell said in an interview on NBC Thursday. “When it comes to this lending we’re not going to run out of ammunition.” Over the past three weeks, the U.S. central bank has introduced an unprecedented series of measures pushing it deep into uncharted territory.
Powell said the U.S. may well be in recession, but expects activity to resume and move back up in the second half of the year. He said “we would tend to listen to the experts” on when normal activity should resume and added that the virus would dictate the timetable.
Spain Reports Fewer Deaths, Cases Surge (6:32 a.m. NY)
Total cases rose to 56,188 from 47,610 and fatalities jumped by 655, fewer than on Wednesday, to 4,089. Hospitals in the country are struggling to cope with the surge.
Europe Accounts for 7 out of 10 Virus Deaths, WHO Says (6:20 a.m. NY)
The number of cases tripled in the past week in Europe, with the disease spreading faster in Spain, France, Germany and Switzerland, Hans Kluge, the World Health Organization’s director for Europe, said at a press briefing in Copenhagen. Italy’s infection rate has slowed slightly, but it’s too early to say the disease has peaked there, he said. The country has 6,200 infected health-care workers, he added.
Kluge said Europe needs to attack the disease in solidarity, because if the European Union manages to fight it but it takes hold in eastern Europe, it will just come back.
Iran Reports 157 New Deaths (5:38 p.m. HK)
Iran reported 157 new deaths and an additional 2,389 cases. About 29,400 people have been infected in total, of which 2,234 have died and more than 10,000 recovered.
Austrian GDP Seen Down 2.5% if Economy Back to Normal in Summer (5:30 p.m. HK)
Austrian output of goods and services will contract 2.5% this year if lockdown measures lift gradually from May and the economy returns to normal over the summer, researcher Wifo said.
Irish Unemployment Set to Hit 30-Year High (5:20 p.m. HK)
Irish unemployment may surge to the highest level since the 1980s, as the coronavirus takes an unprecedented toll. The jobless rate could rise 18% in the second quarter, the government-backed ESRI think-tank said on Thursday, should current restrictions remain in place for 12 weeks as planned. About 350,000 people would lose their jobs, the think tank said, with unemployment jumping from below 5%.
EU Leaders to Hold Virtual Summit (5:15 p.m. HK)
European Union leaders will on Thursday pledge to protect companies from foreign takeovers, discuss an exit-strategy from the looming recession, and likely agree on credit lines to help keep borrowing costs low while governments go on a spending spree. As EU nations move to tackle the fallout, leaders will tacitly admit that they were unprepared for the “unprecedented challenge” of the rapidly spreading disease, according to the latest draft of a joint statement to be issued following a video conference.
Their discussion is expected to highlight divisions, especially when it comes to possible joint debt issuance and the conditions attached to any borrowing from the euro area’s bailout fund.
Cases Rise in Asia (4:51 p.m. HK)
Fatalities from novel coronavirus infection in Indonesia jumped to 78, the most in Southeast Asia, as the world’s fourth-most populous nation continues to see a surge in fresh cases. The total number of peopled infected rose to 893 on Thursday from 790 a day earlier. The number of new infections topped 100 for a third consecutive day.
Malaysia added 235 confirmed cases of the new coronavirus, the biggest daily jump so far, after Prime Minister Muhyiddin Yassin decided to extend the lockdown until April 14. And Hong Kong reported 43 additional cases, the second biggest daily jump in confirmed cases.
Thailand, a Southeast Asian country now entering what’s traditionally one of its hottest periods of the year, saw total cases surpass 1,000 following confirmation of 111 new cases. The total number may reach 3,500 by the end of April if the infection rate continues at this pace, according to Anupong Sujariyakul, senior expert in preventive medicine at the Disease Control Department.
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