(Bloomberg) --
The governors of New York, New Jersey and Connecticut banned all gatherings of 50 or more people, and said bars, restaurants and gyms must close Monday at 8 p.m. The U.S. surgeon general predicted the nation would need eight weeks to get over the worst of the outbreak.
The Federal Reserve slashed rates to near zero to blunt the financial impact, and Goldman Sachs Group (NYSE:GS) predicted the American economy would shrink 5% in the second quarter. Airlines cut flights, and a consultant warned many could go bankrupt by May. U.S. stocks plunged as investors fled risk assets amid the mounting economic toll.
Infections outside China surpassed those on the mainland, with Europe reporting more new cases each day than China did at its peak.
Key Developments:
- Cases top 169,000 worldwide, as deaths exceed 6,600
- China has 80,860 confirmed cases, rest of the world tops 86,000
- Asian central banks hit crisis mode amid Fed emergency moves
- Music’s most powerful executive hospitalized for coronavirus
- From schools to bars, closures mark America’s big shutdown
Click VRUS on the terminal for news and data on the coronavirus and here for maps and charts. For analysis of the impact from Bloomberg Economics, click here. To see the impact on oil and commodities demand, click here.
Paris Shuts Parks and Gardens (10:15 a.m. NY)
Paris closed public parks and gardens while the transportation system reduced buses and trains to adapt to a sharp drop in passengers on Monday.
France has already is shuttered restaurants, cafes and shops deemed non-essential, following in the footsteps of neighboring Italy.
Hungary Shuts Border (10:15 a.m. NY)
Hungary is shutting its border to all personal travel except for nationals returning home, Prime Minister Viktor Orban said. Shops and restaurants, with the exception of pharmacies and grocery stores, must close by 3 p.m. daily while all events are banned. Schools were already closed starting Monday.
U.S. Health Agency Suffers Cyber-Attack (8:59 a.m. NY)
The U.S. Health and Human Services Department suffered a cyber-attack on its computer system Sunday night during the nation’s response to the pandemic, according to three people familiar with the matter.
The attack appears to have been intended to slow the agency’s systems down, but didn’t do so in any meaningful way, said the people, who asked for anonymity to discuss an incident that was not public.
Spain Cases Soar; Belgium Tops 1,000 (8:32 a.m. NY)
Coronavirus infections in Spain increased to 9,191, as of 1pm local time, up from 8,744 reported earlier on Monday. Deaths rose to 309 from 297. The State of emergency declared by the Spanish government will be extended beyond the 15 days effective from March 14, Transport Minister Jose Luis Abalos said. “It’s apparent we’ll have to extend this situation,” Abalos said. “We won’t be able to win this battle in 15 days.” The emergency places severe restrictions on movement and Spaniards will only be allowed to leave their houses under specific circumstances.
Separately, Belgium reported an additional 172 cases, taking the total of people infected in the country since the start to 1,085. A total of five people have died from the illness. Austria also has more than 1,000 confirmed cases.
Lombardy New Cases Slow (8:32 a.m. NY)
Lombardy governor says growth in new cases in the region is no longer exponential. Cases in Lombardy, the hub of the virus in Italy, rose by 1,587 on Sunday to 13,272, less than the 1,865 increase the previous day.
Italy’s government will meet Monday to pass a new package of measures including increased spending for its stricken health-care sector and moves to cover extraordinary layoffs after deaths in the country from the coronavirus jumped by 368 on Sunday.
Premier Giuseppe Conte said the country will need a “recovery plan” as the new package won’t be enough to sustain the economy, according to an interview with Corriere della Sera. Damage to companies will be “serious and widespread,” he said.
Sanofi (PA:SASY), Regeneron to Begin Initial Treatment Trials (8:15 a.m. NY)
Sanofi (PA:SASY) and Regeneron Pharmaceuticals Inc (NASDAQ:REGN). will soon begin evaluating an experimental treatment in patients hospitalized with severe Covid-19. The companies initiated a later-stage clinical trial for a drug called Kevzara, a full-human monoclonal antibody that inhibits the so-called interleukin-6 pathway. Regeneron, which will be leading U.S.-based trials, will begin enrolling as many as 400 patients across 16 sites immediately. Sanofi will lead trials outside the U.S. in the coming weeks.
SEC Rejects Speculation Markets Should Be Shuttered (8:12 a.m. NY)
“Markets should continue to function through times like this,” U.S. Securities and Exchange Commission Chairman Jay Clayton told CNBC. “We’ve been in contact with the various institutions” across Wall Street, he said. Clayton was responding to speculation that stock exchanges might suspend trading as the coronavirus continues to fuel wild market swings.
IMF Ready to Mobilize $1 Trillion Loan Capacity (8 a.m. NY)
The International Monetary Fund is ready to mobilize its $1 trillion lending capacity to help nations counter the coronavirus outbreak, with Managing Director Kristalina Georgieva calling for global coordination on monetary, fiscal and regulatory support. Georgieva reiterated in a blog post Monday that the fund has $50 billion in flexible and rapid-disbursing emergency funds for developing nations, with as much as $10 billion available at zero interest rates.
U.S. May Need 6-8 Weeks to Get Over the Worst (7:30 a.m. NY)
U.S. Surgeon General Jerome Adams says the nation may need six to eight weeks to get over the majority of coronavirus-related pain, if the situation develops as it did in China and South Korea.
Adams, speaking on Fox News, acknowledged there is a chance the U.S. does worse than South Korea, and that the situation could get as bad as in Italy.
EU Regulator Tightens Short-Selling Rules (7:25 a.m. NY)
Traders in EU shares must report net short positions of more than 0.1% of a company’s equity to their national authorities, compared with the current level of 0.2%, the European Securities and Markets Authority said on Monday. While markets have functioned orderly since the selloff began in February, they’re nevertheless in a “fragile state” and short selling can pose an additional threat, according to the Paris-based regulator.
Geneva Invokes Emergency (7:20 a.m. NY)
Geneva, home to international organizations such as the United Nations and the World Health Organization, will see bars, restaurants, and all shops closed from 6 p.m. CET today. Exempt are those selling groceries and household products as well as pharmacies, kiosks, petrol stations and take-aways. The measure will remain in place until March 29. As of Sunday, Switzerland had 1,563 confirmed cases and 14 fatalities.
Bailey Pledges Prompt Action (7:10 a.m. NY)
The Bank of England is very keen to make sure economic effects that materialize during the virus outbreak don’t extend onward, Andrew Bailey says on first day as BOE Governor. “That’s why you saw prompt action last week, that’s why you’ll see prompt action again when we need to take it.”
Iran Has Almost 15,000 Cases (7:05 a.m. NY)
In Iran, total deaths from the virus rose to 853 after 129 people died over the past day. Total confirmed cases stand at 14,991 after 1,053 new infections were reported since yesterday, a health ministry spokesman said on state TV. Nearly 5,000 people have recovered.
Everyone Entering Schengen Subject to Health Checks (6:35 a.m. NY)
The European Commission handed EU member states guidelines on the controls of external borders in the bloc’s Schengen area of free travel. According to a draft of the proposal seen by Bloomberg, all people entering the area, whether they are EU nationals or not, will be subject to systematic health checks, and they can be denied entry or quarantined if they are suspected of carrying the virus. Any decision to refuse entry should be “proportionate and non-discriminatory,” the Commission said.
The guidelines are being discussed over a call of EU home affairs ministers, with some governments pushing for tougher restrictions.
Passengers Shun London Underground (6:25 a.m. NY)
A growing number of people are changing their travel behavior as customers work from home, Transport for London said. Tube passenger volumes have dropped about 19% and 10% on buses.
Reckitt Not Aware of Evidence Ibuprofen Impacts Patients (6:20 a.m. NY)
Appropriate use of ibuprofen and paracetamol is still currently being recommended by most European health authorities as part of the symptomatic treatment of COVID-19, Reckitt said. The company said it’s “not aware of any evidence that ibuprofen adversely impacts the outcome in patients suffering from COVID-19 infection.”
Malaysia to Drop ‘Big News’ on Coronavirus Measures (6 a.m. NY)
Malaysian Prime Minister Muhyiddin Yassin declined to comment on rumors of a lockdown when asked by reporters, telling them to wait for the announcement instead. The Health Ministry said the announcement is set for 9 p.m. Monday in Kuala Lumpur. The country has the largest number of confirmed cases in Southeast Asia, with 125 new cases reported on Monday to push the overall tally to 553.
Macron to Detail Coronavirus Measures (5:58 p.m. HK)
French President Emmanuel Macron plans to address the nation at 8pm CET on Monday, AFP reported, citing the Elysee. Macron will detail new measures to combat the coronavirus and the measures will be decided at a defense cabinet meeting.
Macron warned, in a tweet after his call with Ursula Von der Leyen, Charles Michel and Angela Merkel, of “demanding decisions in the next few hours.”
Bavaria to Declare State of Emergency (5:56 p.m. HK)
The southern German region of Bavaria declared a state of emergency for 14 days, banned all public gatherings and shut down sport and leisure facilities, its prime minister, Markus Soeder, said on Monday. Grocery stores and banks will remain open. The border to Austria was shut down for most citizens and is open only to commuters and trucks transporting food.
Bavaria has 886 confirmed cases, with four deaths, while Germany’s overall tally is 4,838 cases and 12 fatalities.
China Urges Officials to Dine Out, Shop (5:40 p.m. HK)
In provinces such as Anhui, Jiangxi and Jiangsu, government notices urged officials to spend money on food or shopping and encourage their friends and family to do the same.
While the number of virus infections in China has tapered off in recent days, many residents are still hesitant to leave their houses after weeks of government warnings about the dangers of mingling with others. Data released Monday showed retail sales in the world’s second-biggest economy plunged 20.5% in the first two months of the year, with the catering sector tumbling 43.1%.
ECB Freed Up $112 Billion at Banks to Bolster Credit (5:35 p.m. HK)
The money will be available for lending after the ECB decided to allow banks to operate with lower capital buffer and use subordinated debt to help meet their individual requirements, European Banking Authority Chairman Jose Manuel Campa said on Bloomberg TV.
HK Charges Cash for Quarantine to Stop Freeloaders (5:15 p.m. HK)
Hong Kong, the world’s most expensive property market, is going to start charging people quarantined in government housing after it found some were abusing the system.
VIX Futures Flash Market Fear (5:10 p.m. HK)
A measure of fear in U.S. stocks surged to the highest since 2009, surpassing last week’s peak as an emergency move by the Federal Reserve to ease policy did little to calm markets on edge over the spreading coronavirus.
The generic front-month futures contract for the CBOE Volatility Index jumped as high as 57.9 on Monday. The gauge measures traders’ expectations for where the VIX will trade a month from now.
Ikea Shutters Headquarters (5 p.m. HK)
Ikea of Sweden’s headquarters in Almhult will remain closed for two days after several employees showed flu-like symptoms, SVT reported. The world’s biggest furniture company plans to have its 2,300 hq staff return on Wednesday. One employee had tested positive on coronavirus earlier after returning from a holiday trip, but had not come to the office after falling ill, the report said.
Sweden Announces $31 Billion Crisis Plan for Companies (4:43 p.m. HK)
Details of the proposed plan include liquidity support by deferring tax payments for companies. The government will take over companies’ sick leave expenses for two months and help finance temporary lay-offs to avoid job losses. Sweden is exploring talks with Denmark’s government to figure out how to support Scandinavia’s main carrier, SAS AB.
Duterte Widens Lockdown to Main Philippine Island (4:10 p.m. HK)
Philippine President Rodrigo Duterte on Monday widened a lockdown he’s implementing in the capital region to the entire Luzon island to contain an outbreak of the novel coronavirus. Duterte announced “an enhanced community quarantine” of the island with a population of more than 57 million people.
The central bank will consider a rate cut this week.
Airlines Slump (4:05 p.m. HK)
The Stoxx 600 Travel & Leisure Index fell 14% to lowest level since July 2012 as more airlines announced drastic capacity cuts. EasyJet pulled guidance and TUI said it will seek state aid. British Air parent IAG (LON:ICAG) SA said it plans to cut capacity in April and May by at least 75%. The company is also taking action to cut operating expenses.
Elsewhere, Qantas Airways Ltd. plans a fourth set of capacity cuts after a global clampdown on travel accelerated and Australia said anyone arriving from overseas must isolate themselves to limit the spread of the coronavirus. Separately, United Airlines Holdings Inc. is slashing capacity by about 50% in April and May, and cutting salaries. The moves follow peers including American Airlines (NASDAQ:AAL) Group Inc., which is reducing long-haul international flights by 75%.
Second U.K. Lawmaker Tests Positive (4 p.m. HK)
U.K. MP Kate Osborne, a lawmaker for Britain’s opposition Labour Party, says in a tweet that she has become the second lawmaker in the U.K. Parliament to be diagnosed with coronavirus. Osborne’s diagnosis comes after Conservative MP Nadine Dorries announced last week that she had become the first U.K. lawmaker to be diagnosed with the virus.
Bank of Korea Slashes Rate (3:52 p.m. HK)
The Bank of Korea slashed its benchmark interest rate to a record low of 0.75% in an emergency move following actions by the Federal Reserve and other central banks. The BOK convened its first emergency board meeting since the global financial crisis on Monday and cut the seven-day repurchase rate by 50 basis points, effective March 17.
Earlier, the Bank of Japan strengthened stimulus but stopped short of cutting its negative interest rate at a meeting to address the rapidly mounting shocks from the coronavirus. The BOJ doubled its target for net purchases of exchange-traded funds to 12 trillion yen ($112 billion). The bank also introduced a new lending program to help businesses hit by the pandemic.
The BOJ’s move was among a wave of actions following a rate cut by the U.S. Federal Reserve. New Zealand’s central bank slashed its benchmark interest rate by 75 basis points and the Reserve Bank of Australia, which already cut its cash rate earlier this month, said it will boost liquidity in short-term funding markets.
Russia Sets Tax Holiday, Crisis Fund: Vedomosti (2:28 p.m. HK)
Russia is planning measures to combat the impact of the coronavirus, including a 300 billion ruble ($4.1 billion) crisis fund, tax holidays for businesses and paid leave for quarantined workers, Vedomosti reported, citing two government officials it didn’t identify.
The crisis fund will be formed in part by optimizing budget spending, the paper said.
Virus to Bankrupt Most Airlines by End of May: Consultant (2:24 p.m. HK)
The coronavirus pandemic will bankrupt most airlines worldwide by the end of May unless governments and the industry take coordinated steps to avoid such a situation, an aviation consultant warned.
Many airlines have probably been driven into technical bankruptcy or substantially breached debt covenants already, Sydney-based consultancy CAPA Centre for Aviation warned in a statement. Carriers are depleting cash reserves quickly because their planes are grounded and those that aren’t are flying more than half empty, it said.
White House NSC Says Rumors of U.S. Quarantine Fake (12:35 p.m. HK)
The White House National Security Council, in a Twitter post on a verified account, said text-message rumors of a national quarantine “are fake,” adding there’s “no national lockdown.”
There is an ongoing effort to spread misinformation and cause undue panic in the U.S., a senior administration official said. The effort includes text messages with false information being sent to mobile phones across America, the official said.
