(Bloomberg) — The coronavirus caused two deaths in California in early and mid-February, suggesting the pathogen was circulating in the U.S. weeks earlier than health officials thought. Singapore reported more than 1,000 new cases for the third day, pushing total infections past 10,000.
Global remittance flows will tumble 20% this year, deepening hardship for families in poor and developing nations, according to the World Bank. The European Union is floating a 2 trillion-euro ($2.2 trillion) plan for the post-pandemic recovery, 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 178,800China’s coronavirus handling aggravates European diplomats‘Scary time’ for American middle class as office jobs disappearIndia’s young population could make herd immunity work thereIsraeli investors proposed a build-it-yourself breathing machineEuropean Central Bank may discuss new help for lenders
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Prisoners Could Add 100,000 to Death Toll: ACLU (10:55 a.m. NY)
The Trump administration’s projection for U.S. deaths from the coronavirus pandemic may be short by about 100,000 because it isn’t fully accounting for the nation’s high prison population, the American Civil Liberties Union said.
Models that properly account for the roughly 740,000 people in jail in the U.S. on any given day suggest the country will experience “much higher death rates” than currently projected if inmate populations aren’t reduced rapidly, the organization said in a statement about its findings on Wednesday.
Mnuchin Sees Economy Reopened by Late Summer (10:15 a.m. NY)
Treasury Secretary Steven Mnuchin said he anticipates most of the U.S. economy will restart by the end of August after the coronavirus has led to social distancing measures that have shuttered many businesses.
“We’re operating under the environment that we are going to open up parts of the economy and we’re looking forward to — by the time we get later in the summer — having most of the economy, if not all of the economy, open,” he said on Fox Business Network.
Analysis Suggests 5.5% of Geneva Exposed (10:03 a.m. NY)
An antibody analysis by the Geneva University Hospitals suggests that 5.5% of Geneva’s population — some 27,000 people — were exposed to Covid-19 as of April 17. The estimate was based on blood tests from a representative sample of 760 individuals. The result was preliminary and the prevalence of the virus among the population was likely to increase in coming weeks, the Geneva University Hospitals said in a statement.
U.K. Deaths Lower Than Day Before (9:49 a.m. NY)
A further 759 people have died from coronavirus in U.K. hospitals, the latest figures show, as the country prepares to start human trials of a vaccine for the disease. Some 4,451 more people have tested positive, up from 4,301 yesterday, according to data released by the Department of Health and Social Care on Wednesday.
Amazon Accused of Price-Gouging During Pandemic (9:47 a.m. NY)
Amazon.com Inc. unlawfully increased prices on numerous consumer goods in the wake of the Covid-19 pandemic, in some cases by more than 500%, a new proposed class suit in California federal court alleges.
World Bank Sees Record 20% Drop in Remittances (9 a.m. NY)
Transfers to low- and middle-income countries from workers abroad probably will plunge by a fifth to $445 billion, the Washington-based development institution said in a report on Wednesday. This would mark the sharpest decline in records going back to 1980 and compares with a 5% drop during the 2009 financial crisis.
Apps Must Keep Big Brother at Bay: Watchdogs (8:52 a.m. NY)
Europe’s data privacy watchdogs warned that virus-tracking technologies must not be allowed to morph into dystopian snooping on citizens.
Technologies should be used to “empower, rather than to control, stigmatize, or repress individuals,” the EU group of data protection authorities said in guidelines, published on Wednesday, which generally support the use of apps to contain the spread of the new coronavirus.
British Airways Owner Said to Seek Deal Price Cut (8:48 a.m. NY)
British Airways owner IAG SA is seeking to slash the agreed 1 billion-euro ($1.1 billion) purchase price for Spain’s Air Europa as the value of both airlines is hit by the coronavirus, people familiar with the situation said.
IAG plans to discuss adjustments to the terms of the deal with Globalia Corp., Air Europa’s parent, to reflect the deteriorating market environment, according to the people, who asked not to be named as the matter is confidential.
House Will Pass Virus Relief Package Tomorrow: Pelosi (8:36 a.m. NY)
House Speaker Nancy Pelosi tells MSNBC that House will pass the emergency relief package tomorrow, to give small companies quick access to additional loans.
EU Eyes $2.2 Trillion Plan for Recovery (8:20 a.m. NY)
The European Union’s 27 leaders will be asked to consider a 2 trillion-euro plan for the region’s post-pandemic recovery on Thursday, according to a document seen by Bloomberg News.
The compromise proposal has emerged from a north-south squabble over how to pay for the effects of lockdowns that is set to play out on a video conference. The plan would partially use the EU’s seven-year multi-annual budget and also establish a new financing mechanism, the document said.
Dutch New Cases Fall for Fifth Consecutive Day (8:14 a.m. NY)
The Netherlands reported 708 new cases, marking a fifth consecutive day of declines and the lowest daily increase since March 23. It was the third day that infections grew by 2%, the smallest gain since the first case was reported in late February.
Fatalities rose 4% to 4,054. The Netherlands on Tuesday announced it would extend lockdown measures until May 19.
AT&T Pulls Outlook, Delta to Cut Cash Burn (7:40 a.m. NY)
AT&T withdrew its forecast of 2% revenue growth for the year and said the outbreak had knocked $600 million off of revenue. Kimberly-Clark also pulled its outlook for the year and suspended share buybacks, while Delta Air Lines Inc. vowed to cut its daily cash burn in half by the end of June amid a collapse in travel demand.
Netflix Inc. reported explosive growth as locked-down families binge-watch its programs, but warned the boom may not last. Snap Inc. soared in pre-market trading after the social-media company reported results that were much stronger than anticipated.
In Europe, Heineken NV canceled its interim dividend and said its board will take a pay cut to mitigate the impact. 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. Meanwhile, UniCredit SpA became the first big European bank to try to quantify the impact of the coronavirus, setting aside almost $1 billion to cover potential loan losses stemming from the outbreak. For more on European earnings, click here.
Jakarta Partial Lockdown Extended (7:30 a.m. NY)
Indonesia extended social distancing rules in Jakarta, home to more than 10 million people. The measures, which include a ban on gathering of more than five people, limited public transport services and mandatory work-from-home, were extended to May 22. The restrictions, first imposed on April 10, were to end Thursday.
Jakarta and its satellite cities have emerged as the hub of the pandemic in the world’s fourth-largest populous country with infections more than quadrupling to 7,418 since the start of the month. The outbreak has killed 635 people in Indonesia, the most in Asia after China and India, according to Johns Hopkins University data.
Turkey Cuts Rates Again (7:10 a.m. NY)
Turkey lowered interest rates for an eighth time in less than a year, as the central bank looks past the lira’s steep decline to spur credit and mitigate the economic fallout from the coronavirus outbreak.
The Monetary Policy Committee reduced its benchmark on Wednesday to 8.75% from 9.75%. While most economists predicted the key rate will be lowered by half a percentage point, a sizable minority in a Bloomberg poll saw a larger move. Five analysts forecast a hold.
U.K. Had ‘Ample’ Opportunity to Join EU Procurement (6:30 a.m. NY)
The U.K. was “aware of the work that was ongoing” on an EU program for procurement of medical supplies related to the pandemic, European Commission spokesman Stefan de Keersmaeker said. The British government “had ample opportunity to express its wish to participate in a joint procurement if it wanted to do so,” Keersmaeker told reporters in Brussels.
That comes a day after the most senior official in the U.K. Foreign Office reversed his testimony to a parliamentary committee hours after telling it that Britain missed out on a EU-wide effort to procure medical supplies because of a “political decision.”
Death Hit U.S. Weeks Earlier Than First Thought (6:28 a.m. NY)
The coronavirus caused two deaths in California in early and mid-February, new tests show, suggesting the pathogen was circulating in the U.S. weeks earlier than health officials believed. Two residents of Santa Clara County, California who died at home on Feb. 6 and Feb. 17 were infected with the virus, according to a statement Tuesday from the local medical examiner’s office.
Previously, the first report of a U.S. death from Covid-19 had come on Feb. 29 in Washington state. Days afterward, two earlier deaths in the state were attributed to the illness, both occurring on Feb. 26.
German Public Deficit to Hit 7% of GDP (6:22 a.m. NY)
Germany’s public-sector deficit will likely widen to more than 7% of gross domestic product this year due to extra spending to tackle the coronavirus crisis. Public debt will also increase after several years of declines, rising to about 75% of total output.
The federal government deficit is set to widen to almost 5% of GDP in 2020, the finance ministry projected.
Italy to Double Stimulus, Spain to Extend Emergency (5:10 p.m. HK)
Italy and Spain — the worst-hit countries in Europe — are preparing more resources to limit the damage to their economies. Ahead of a planned restart schedule, Italian Prime Minister Giuseppe Conte’s cabinet is expected to seek parliamentary approval to broaden the budget deficit by about 55 billion euros ($60 billion).
Spain reported a small increase in the number of new cases, though the numbers remain steady. The country’s parliament on Wednesday will vote on Prime Minister Pedro Sanchez’s request to prolong a state of emergency for two weeks through May 9. Spain has the most extensive outbreak in Europe and made its first move on Tuesday to relax curbs. Children under 14 will be allowed out of their homes as of April 26 for walks, in the company of an adult and following social-distancing and health rules.
Germany’s ruling parties will hold talks on the virus response on Wednesday evening amid tension over the pace of loosening curbs. The number of new coronavirus cases in Germany stayed close to a three-week low as the country allowed small shops and hardware stores to open starting on Monday.
HK Tycoon Pleads for Help for His Newspaper (5:05 p.m. HK)
Hong Kong pro-democracy media mogul Jimmy Lai pleaded for help for his flagship newspaper the Apple Daily, as advertising income slumps to almost nothing due to political retaliation and the Covid-19 pandemic.
The paper, part of Lai’s Next Digital Ltd., has championed the city’s months of protest against Beijing’s tightening grip and faces substantial losses and a decline in subscriptions, the tycoon said in a video statement. Its number of subscribers has dropped to below 600,000 from 800,000, he said, adding he had personally poured in about HK$550 million ($71 million) to keep the publication going.
Lai, 72, has long been denounced as a traitor by Chinese state media and was named as one of the city’s “Gang of Four” behind protests that erupted last year in opposition to legislation that would allow the transfer of criminal suspects to the mainland.
First Covid-19 Clinical Trial to Start in Germany (5 p.m. HK)
BioNTech SE and Pfizer Inc. said the German regulatory authority, the Paul-Ehrlich-Institut, has approved the Phase 1/2 clinical trial for BioNTech’s BNT162 vaccine program. The companies are jointly developing BNT162.
The trial is the first clinical trial of a COVID-19 vaccine candidate to start in Germany, the companies said, and is part of a global development program. Pfizer and BioNTech will also conduct trials for BNT162 in the U.S. upon regulatory approval, expected shortly.
BioNTech surged 18% in U.S. premarket trading.
Americans’ Fear of Job Loss Surges to 45-Year High (5 p.m. HK)
A quarter of working Americans believe it’s “very likely” or “fairly likely” they will lose their job or be laid off in the next 12 months, according to a Gallup poll. That’s a 17 percentage-point swing in one year, from matching its lowest reading since 1975 to its highest, driven by the rapid impact of the coronavirus pandemic on the U.S. economy. The survey, released Wednesday, was conducted April 1 through 14.
North Korea to Issue Public Bonds (4:40 p.m. HK)
Authorities have completed preparations to issue public bonds for the first time in 17 years as part of efforts to overcome difficulties posed by coronavirus outbreak, Daily NK reported, citing an unidentified source in North Korea.
U.K. Under-Invested in Testing Infrastructure: Roche CEO (4:20 p.m. HK)
The U.K. only has half the testing capacity of other European countries such as Switzerland when it comes to running Roche Holding AG’s most efficient equipment for Covid-19 tests, Chief Executive Officer Severin Schwan said on a call with reporters. Countries struggling to scale up pandemic screening failed to invest enough in health-care infrastructure for decades, he said.
“They are just not able to ramp up because they don’t have the know-how, they don’t have the personnel, because they simply don’t have the capabilities,” Schwan said. “Which is not surprising, because you cannot just start up a lab on a green field out of nothing.” Among those who did invest, he cited Germany, South Korea and Singapore.
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.
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 (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 Legislative Gathering Could Happen in May (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 goals 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 Europe 5G Rollouts (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.
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 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.
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