(Bloomberg) — Germany’s infection rate fell further below a key threshold, while a top French health official said the country must prepare for a second wave of Covid-19 cases. Violence flared in Serbia after confirmation that the capital, Belgrade, will go into lockdown at the weekend to confront an “alarming” spike in infections.
The U.S. gave the United Nations one-year notice that it plans to exit the World Health Organization, and President Donald Trump threatened to ban TikTok in retaliation for China’s handling of the coronavirus.
States across the U.S. recorded new highs in cases and deaths Tuesday, with total infections in the country approaching 3 million. Brazilian President Jair Bolsonaro tested positive as the crisis in Latin America’s largest economy escalates.
Key Developments:
Global Tracker: Cases top 11.8 million; deaths exceed 544,000U.K.’s Sunak to unveil $2.5 billion plan to pay wages of young workersThese mistakes pushed an Australian city back into lockdownThe virus has trapped $111 billion of luxury spending in ChinaThe world’s supply-chain managers bask in their extended momentCruise ships risk rusting away while sitting idle
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Violence Erupts in Serbia Over Lockdown Plans (2:41 p.m. HK)
Thousands of protesters clashed with police in Serbia’s capital of Belgrade late on Tuesday after President Aleksandar Vucic said the city will go into lockdown this weekend.
Riot police used tear gas to repel rock-throwing protesters who briefly broke into the parliament building in central Belgrade, the N1 broadcaster reported. The Balkan country of 7 million lifted one of Europe’s strictest lockdown regimes in May after the social-distancing restrictions helped stifle contagion.
A spike in new cases of Covid-19 has filled hospitals to capacity and the situation in Belgrade is “alarming,” Vucic said. “Hospitals are literally packed.”
Japan Bankruptcies Soar As Pandemic Hits Home (2:31 p.m. HK)
A growing number of Japanese businesses are failing amid the coronavirus pandemic. Some 780 Japanese firms filed for bankruptcy in June, 148% more than the prior month and the most this year, according to Tokyo Shoko Research Ltd.
There were 94 pandemic-driven cases last month, bringing the total to 240 in the first half of the year, with sectors such as hotels and restaurants badly hit. Growing distress among businesses is in line with the record jump in bank loans and deposits in June, as companies continued to tap emergency credit facilities and hoard cash.
Norway’s Economy Grows Anew After Swift Covid Response (2:25 p.m. HK)
Norway’s economy grew for the first time since February, amid signs the government’s rapid response to containing the coronavirus pandemic is paying off.
Mainland gross domestic product expanded 2.4% in May from the previous month, Statistics Norway said Wednesday. Though less than the 4.3% economists surveyed by Bloomberg had predicted, the data show Norway is coming back to life, after GDP shrank 4.7% in April and 6.9% in March.
Norway was one of the first countries in Europe to impose a strict lockdown, and its decision to ramp up testing early helped bring the virus under control quickly.
Tokyo Skirts Lockdown Despite Surge in Cases (2:22 p.m. HK)
Tokyo confirmed 75 cases of coronavirus Wednesday, broadcaster TBS reported, the first time in a week cases were below 100.
While fresh infections have prompted stricter measures in some places — Melbourne has been locked down for the second time in four months, and Beijing recently confined whole neighborhoods to their homes — Tokyo is taking a more muted approach, arguing that this time is different. A look at the data goes some way to back that up.
Google, Amazon Funnel Millions to Virus Conspiracy Sites: Study (1:49 p.m. HK)
Digital advertising platforms run by Google, Amazon.com Inc. and other tech companies will funnel at least $25 million to websites spreading misinformation about Covid-19 this year, according to a study released Wednesday.
Google’s platforms will provide $19 million, or $3 out of every $4 that the misinformation sites get in ad revenue. OpenX, a smaller digital ad distributor, handles about 10% of the money, while Amazon’s technology delivers roughly $1.7 million, or 7%, of the digital marketing spending these sites will receive, according to a research group called the Global Disinformation Index.
“The difference between what the companies say publicly about their dedication to not monetizing hate speech and harmful content, especially around the pandemic, is not matching up with what our data is telling us that’s actually happening,” said Danny Rogers, co-founder of the Global Disinformation Index.
France Must Prepare for Second Wave, Health Official Says (1:45 p.m. HK)
Experience from the first wave should help, especially in contact tracing, but the key is to continue to wear masks and respect safety distances, Jerome Salomon, director general for health, says in an interview with Le Figaro newspaper.
Limiting travel could be one way to deal with a resurgence, Salomon says. In an experimental project, France is also watching for virus in wastewater, he said.
Separately, France’s economy is expected to contract about 9% this year, statistics institute Insee said in a report Wednesday. A potential second wave of virus cases would slow down any recovery, Insee noted.
Germany’s Infection Rate Falls Further Below Key Threshold (1:24 p.m. HK)
Germany’s coronavirus infection rate remained below the key threshold of 1.0, while the number of new cases stayed far below the level at the height of the outbreak.
The reproduction factor — or R value — dropped to 0.81 on Tuesday from 0.97 the previous day, according to the latest estimate from the Robert Koch Institute, the country’s health body. A number below 1.0 is seen as preventing exponential growth in the number of cases and a second wave of infections.
There were 279 new cases — and 10 fatalities — in the 24 hours through Wednesday morning, bringing the total caseload to 198,343, according to data from Johns Hopkins University. That compares with an average of 432 in the last seven days and is significantly below the almost 7,000 recorded at the peak of the pandemic in late March.
Mumbai Eases Rules on Virus Testing (1:12 p.m. HK)
Mumbai will no longer require a doctor’s prescription from people seeking a test for coronavirus, as India’s largest city and the epicenter of its outbreak seeks to catch more cases early. The move comes as cases continue to surge across India, which this week became the third-worst affected country in the world with 719,665 cases. Mumbai has seen 86,509 infections, according to data from the city.
Mumbai has been criticized for only managing about 4,000 tests per day, and municipal officials have said the relaxed guidelines aim to increase use of private labs that offer testing for a fee. Free testing at government facilities will still be limited to admitted patients.
Virus May Deal Lasting Blow to U.S. Consumer Spending (12:50 p.m. HK)
New data show American consumers may not be prepared to return to pre-pandemic spending levels. More than 40% of people who spent money on movies, event tickets or at bars before the pandemic now plan to spend less on those activities, according to a new survey for CreditCards.com.
Meanwhile, more than 60% of small businesses say they need spending to return to normal by the end of the year to stay open, according to American Express data.
Victoria Outbreak Spreads to Australian Capital Territory (12:36 p.m. HK)
The outbreak in Victoria state has spread to the Australian Capital Territory, which reported its first new cases of the virus in a month Wednesday.
Two of the three people who tested positive arrived in the ACT from a Melbourne hotspot July 2, while the third is a household contact. They visited a shopping center and markets before being tested, and authorities are urging people who also visited those places to monitor themselves for symptoms.
Apple will temporarily close all five of its stores in Victoria as stringent restrictions come into effect, Nine News Melbourne reports, citing an Apple spokesperson.
Virus on the Retreat in Spain, Health Chief Says: FT (12:33 p.m. HK)
The doctor spearheading Spain’s fight against coronavirus said recent regional outbreaks — particularly in Catalonia — are worrying, but the infection rate is going down in most of the country.
“We are not going up in general in Spain, we are going up in these specific areas,” Fernando Simon, the chief epidemiologist leading the government’s battle against Covid-19, told the Financial Times in an interview. “Outside these areas, the number of cases is still going down.”
Spain has recorded more than 28,000 deaths from the pandemic but Simon said the true count might not be known until fall, as some death certificates may have been filled out inadequately at the peak of the outbreak.
Trump Says May Ban TikTok in Retaliation for Virus (12:06 p.m. HK)
President Donald Trump said his administration is considering banning the short video app TikTok in the U.S. to retaliate against China over its handling of the coronavirus. Trump’s comments on Tuesday came one day after Secretary of State Michael Pompeo said officials were looking at barring the app, whose parent company is China’s ByteDance Ltd.
“It’s something we’re looking at, yes,” Trump said when asked in an interview with Gray Television’s Greta Van Susteren about Pompeo’s remarks. “Look, what happened with China with this virus, what they’ve done to this country and to the entire world is disgraceful.”
Trump said banning TikTok is “one of many” ways he is looking to hit back at the Beijing government over the virus.
New Zealand Reviewing Security After Quarantine Breach (11:36 a.m. HK)
New Zealand officials are reviewing security at mandatory quarantine hotels after a man who tested positive for Covid-19 escaped and spent an hour wandering city streets.
The man, who was under compulsory hotel quarantine, left the hotel’s outside smoking area when a fence was being replaced, visiting a grocery store before returning to the hotel, Health Minister Chris Hipkins told reporters. On Wednesday it was reported that the man had tested positive for the virus.
New Zealand citizens who return from abroad face a mandatory 14-day quarantine period in isolation hotels. The man’s escape comes after a woman at another Auckland hotel climbed two fences last week before being apprehended.
AirAsia’s Future in Doubt, Ernst & Young Warns (10:55 a.m. HK)
AirAsia Group Bhd.’s ability to continue as a going concern may be in “significant doubt” because of the impact of coronavirus, auditor Ernst & Young said.
The airline’s current liabilities already exceeded its current assets by 1.84 billion ringgit ($430 million) at the end of 2019, a year when it posted a 283 million ringgit net loss, Ernst & Young said in a statement to the Kuala Lumpur stock exchange Wednesday. The financial performance and cash flow have now been further hit by virus-related travel restrictions.
The slump in air travel and the carrier’s financial performance “indicate existence of material uncertainties that may cast significant doubt on the Group’s and the Company’s ability to continue as a going concern,” Ernst & Young said in its unqualified audit opinion statement.
Japan to Skip Primary Surplus Target in Basic Policy: Jiji (10:52 a.m. HK)
The Japanese government, which is compiling a policy document on economic and fiscal management, won’t directly refer to its target of achieving a primary surplus in fiscal 2025 as measures against coronavirus have increased the deficit, Jiji reports.
NHK reports the government will seek to diversify supply chains of products whose parts are all produced in a single country, and will promote remote work to reduce the concentration of workplaces in the Tokyo area. The government hopes to gain cabinet approval of the policy next week.
Aussie Banks Extend Loan Holiday as 800,000 Defer Payment (10:03 a.m. HK)
Some of Australia’s biggest banks will extend loan-repayment deferrals for as long as four months as the nation scrambles to contain the threat of a second wave of coronavirus infections.
Customers will be contacted as they approach the end of the six-month deferral period, and those with reduced incomes and ongoing financial difficulty can be given extensions, the Australian Banking Association said in an emailed statement. Options will include extending the length of the loan and converting to interest-only payments.
Red Tape Holds Up Indonesia’s Virus Relief Spending (9:41 a.m. HK)
Indonesia’s bureaucratic red tape is preventing almost $50 billion in fiscal support from being disbursed to virus-hit businesses and health care workers, risking a deeper economic slump amid a surge in cases.
The government has spent less than 5% of the 87.6 trillion rupiah ($6 billion) set aside for priority health care because of delays in verification and approval processes. Some 85% of 120.6 trillion rupiah in tax-breaks and other benefits for companies has yet to be allotted, official data show.
Australia Plans More Income Support Amid Virus (8:54 a.m. HK)
Treasurer Josh Frydenberg said the government will announce a “new phase” of income support for people impacted by the coronavirus crisis when it hands down its economic and fiscal update later this month.
Economists have warned of a looming fiscal cliff at the end of September, when the government’s flagship wage subsidy program known as Jobkeeper is due to expire. Frydenberg told the Seven Network that another phase of temporary and targeted support would be announced July 23.
Beijing Records No New Cases for Second Day (8:42 a.m. HK)
The capital city also reported zero new suspected or asymptomatic cases Tuesday, the Beijing Municipal Health Commission said in a statement.
Duterte Cautious on Reopening as Philippine Cases Spike (8:40 a.m. HK)
Philippine President Rodrigo Duterte said he will “have to be very circumspect in reopening the economy” given the recent spike in coronavirus cases.
The firebrand leader said he can’t emulate the “devil-may-care attitude” of U.S. President Donald Trump or Brazilian President Jair Bolsonaro because the Philippines is poor. “We cannot afford really a total epidemic or pandemonium,” he said in an address aired Wednesday.
His comments came after Finance Secretary Carlos Dominguez and central bank Governor Benjamin Diokno both backed further easing of virus curbs to reignite an economy facing its deepest contraction in three decades.
U.S. Plans Testing Surge in Three States (8:34 a.m. HK)
The federal government is ramping up coronavirus testing in Louisiana, Texas and Florida, three states seeing a surge in Covid-19 infections, as health officials attempt to get a firm grasp on how the fast-moving pandemic is evolving.
Eight temporary testing sites will each perform as many as 5,000 free tests a day, the U.S. Department of Health and Human Services said. Increased testing could give health experts a clearer picture of how the coronavirus is moving through the population, as officials weigh how far to go in reopening the economy — or in rolling back steps already taken to revive business.
Tokyo District Eyes Aid for Bars If Clusters Found: NHK (8:13 a.m.)
Tokyo’s Toshima ward, whose nightlife district has seen a spike in coronavirus infections, will provide financial aid to establishments that shut if clusters are discovered there, public broadcaster NHK reported.
The ward is urging about 100 workers at 8 bars to take PCR tests to prevent further spread of the virus. The metropolitan government is considering providing the financial aid.
Most U.S. Meat Plant Workers With Virus Are Minorities (8:08 a.m.)
Virus outbreaks at meat-processing plants across America, which sickened thousands and led to beef shortages, have gotten worse — and minority workers have been hit hardest.
More than 16,200 U.S. meat plant workers had tested positive for Covid-19 by the end of May and 86 had died, the Centers for Disease Control and Prevention said. Of the cases that disclosed race and ethnicity, 87% involved minority workers — with employees identified as Hispanic accounting for 56% of infections despite making up less than one-third of the workforce.
Colombia Extends Lockdown Through August 1 (7:56 a.m. HK)
Colombia will extend its lockdown through Aug. 1, while allowing some exceptions to recover “productive life,” President Ivan Duque said on state television.
Restaurant Reopenings Boost New Zealand Lobster Sales (7:40 a.m.)
New Zealand exports of live lobster are surging as Chinese gourmets return to restaurants.
More than 300 tons of the crustaceans were airfreighted to China in May, up 53% on-year, according to data Wednesday from Auckland International Airport. That’s welcome relief for New Zealand lobster exporters, who were forced to release thousands of the shellfish back into the sea in February after China closed restaurants and canceled orders in response to the coronavirus outbreak.
Ann Taylor Owner Ascena Prepares Bankruptcy to Cut Debt (7:32 a.m. HK)
Ascena Retail Group Inc., the owner of mall brands that occupy almost 3,000 stores in the U.S., is preparing to file for bankruptcy and shutter at least 1,200 of those locations, according to people with knowledge of the plan. The company, which owns brands such as Ann Taylor and Lane Bryant, could enter Chapter 11 as soon as this week with a creditor agreement in place that eliminates around $700 million of its $1.1 billion debt load.
Ascena shut its shops in mid-March as the coronavirus outbreak spread, and began to re-open locations in early May as state authorities lifted restrictions. Customer traffic is much lower than normal at the revived stores, the company said in an update on the impact from Covid-19 on its business.
More U.S. Baseball Teams Suspend Workouts (7:26 a.m. HK)
The San Francisco Giants have suspended workouts due to delayed Covid-19 testing results, becoming the latest team to raise doubts about Major League Baseball’s reopening efforts.
On Monday, the Washington Nationals, Houston Astros and St. Louis Cardinals suspended their workouts, while the Los Angeles Angels and Arizona Diamondbacks had to reschedule planned practices.
New York City to Reopen Childcare Centers July 13 (7:20 a.m. HK)
New York City Mayor Bill de Blasio says in tweet that the Board of Health has voted to reopen 3,000 childcare centers as of July 13.
Meanwhile, New York’s Long Island has been cleared to enter the fourth stage of reopening starting Wednesday, Governor Andrew Cuomo said in a statement. The move applies to higher education, “low risk” arts and entertainment activities, media production and professional sports with no fans.
Trump ‘Flexible’ on Convention Plans (6:45 a.m. HK)
President Donald Trump signaled that he would be “flexible” about holding the Republican National Convention in Jacksonville, Florida, if coronavirus cases continue to rise across the state.
“It really depends on the timing,” Trump said in an interview with Gray Television’s Greta Van Susteren. “Look, we’re very flexible. We can do a lot of things, but we’re very flexible.”
Earlier this month, the Republican National Committee announced that most of the party’s convention, including Trump’s speech accepting the nomination, would take place in Jacksonville the week of Aug. 24. Covid-19 cases have been increasing across Florida.
Texas Infections Jump by More Than 10,000 (5 p.m. NY, Tuesday)
New cases in Texas topped 10,000 for the first time, rising by 5%, or 10,028, from Monday to 210,585. That exceeded the seven-day average daily increase of 3.9%. Sixty more people died, a 2.3% increase, versus an average 1.4% rise over the previous seven days. An additional 588 hospitalized with Covid-19 also topped the state’s seven-day average.
U.S. Cases Rise 1.8% (4 p.m. NY, Tuesday)
Coronavirus cases in the U.S. rose 1.8% from a day earlier to 2.96 million, according to data collected by Johns Hopkins University and Bloomberg News. That matched the average daily increase over the past week and marked a fourth day in which new cases topped 50,000. Deaths rose 0.6% to 130,813.
Florida had 213,794 cases, up 3.6% from a day earlier, compared with an average increase of 5% in the previous seven days, according to state health officials. Deaths reached 3,841, an increase of 1.7%California reported a 3.4% daily jump in virus hospitalizations, to a record 5,989 patients. San Francisco will delay plans to open indoor dining and outdoor bars as planned July 13Arizona health officials reported 3,653 new cases, bringing that total to 105,094, a 3.6% increase. Deaths rose by a record 117 to 1,927New Jersey’s virus transmission rate rose to 1.05, the highest in about 10 weeks, according to Governor Phil Murphy’s office. Weeks ago, the rate was 0.64Montana cases rose 6.2% to a total 1,327, according to data compiled by Johns Hopkins and Bloomberg News
U.S. Starts Clock to Quit WHO (3:49 p.m. NY, Tuesday)
The Trump administration sent a letter giving the United Nations a one-year notice for the U.S. to quit the World Health Organization, formalizing President Donald Trump’s decision to leave the agency even as the coronavirus rages.
The administration sent the letter to UN Secretary-General Antonio Guterres, making the U.S. withdrawal official on July 6, 2021, according to Stephane Dujarric, the secretary-general’s spokesman. It’s almost certain that Democratic rival Joe Biden will reverse Trump’s decision if he’s elected in November.
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