· China's Hubei province, center of virus outbreak, confirms 25 new deaths
The death toll from the coronavirus outbreak in China rose to 131 as health authorities at the epicentre of the epidemic reported another 840 confirmed cases, even as Beijing reiterated its confidence in containing the disease.
Fears of the spreading virus led airlines to reduce flights to China and global companies to restrict employee travel to the country. CNBC reported that the White House had told U.S. airlines it may suspend all China-U.S. flights due to the outbreak.
The Hubei province health authority said in a statement early Wednesday that 25 further people had died as of end-Tuesday. The virus emerged late last year in Wuhan, Hubei’s capital and a major transportation hub, and much of the province has been under virtual lockdown as China seeks to contain the virus from spreading further.
With Hubei’s latest figures, the total number of confirmed cases in China is at least 5,355. China’s National Health Commission on Tuesday reported a total of 4,515 cases as of end-Monday and is expected to give an updated national tally later on Wednesday.
· Coronavirus live updates: Chinese health officials say death toll has risen to 132
8:13 am: China’s National Health Commission reports latest figures as of end of Tuesday
Chinese health officials said confirmed 1,459 new cases and 26 additional deaths (25 in Hubei and 1 in Henan). Those figures bring the total cases to 5,974 confirmed cases, with 132 deaths and 103 cured, according to the National Health Commission.
7:27 am: Scientists in Australia have reportedly recreated a lab-grown version of coronavirus
Reuters reports that a team of scientists have successfully grown a version of coronavirus in the lab. The news service reported that the breakthrough would help researchers around the world as they race to develop a vaccine and detection tests.
· White House holds off on suspending China-U.S. flights amid virus outbreak
The White House on Tuesday opted not to suspend flights from China to the United States as it discussed ways to deal with the coronavirus outbreak, sources briefed on the matter told Reuters.
The administration is holding daily meetings on the coronavirus and has considered a wide range of potential options. Two U.S. officials said the administration had not taken any options off the table, including a temporary ban on flights, if public health data supported the move.
· Safe-haven currencies stay in demand on China virus fears
Concerns about the economic fallout from the coronavirus outbreak in China supported safe-haven currencies on Tuesday, with the dollar index at a two-month high and the Swiss franc at a nearly three-year peak against the euro.
Though global markets had stabilized somewhat after Monday’s sell-off, risk aversion in currency markets persisted, with the Australian dollar leading losers and the greenback strengthening to an eight-week high against a basket of six rivals.
The Japanese yen was off of Monday’s high, last 0.26% weaker at 109.14 per dollar.
Global stock markets and oil prices have tumbled in recent days on fears the virus could further damage China’s already weakened economy. That also briefly inverted the three-month, 10-year U.S. Treasury yield curve, considered a fairly reliable recession predictor.
Still, currency moves were subdued, with the U.S. dollar adding to previous gains ahead of the start of a two-day U.S. Federal Reserve meeting later on Tuesday. Fed policymakers are largely expected to reiterate that interest rates will remain on hold this year.
The dollar index was last up 0.19% at 98.06, its highest since early December and taking its gains so far this month to 1.8%. Versus the euro, the dollar firmed 0.05% to $1.101.
Stability in the offshore yuan, after a recent drop, provided some calm to nervous currency markets. The Chinese currency firmed 0.19% versus the dollar, rising off three-week lows.
· Oil rebounds from coronavirus-related sell-off, snaps 5-day losing streak
Oil futures edged up on Tuesday after falling for five days, gaining support from a rebound in Wall Street stocks and talk that OPEC and its allies might tighten the market amid fears the coronavirus could weigh on oil demand.
U.S. stocks rose as gains in technology and financial shares helped major indexes recover from their biggest selloff in about four months on worries over a coronavirus outbreak and its possible impact on global growth.
Brent futures rose 13 cents, or 0.2%, to $59.43 a barrel, while U.S. West Texas Intermediate crude gained 34 cents, or 0.6%, to settle at $53.48 per barrel.
· Amid uncertainty over the key question of whether to call witnesses in President Donald Trump’s Senate impeachment trial, Trump’s legal team wrapped up its opening arguments on Tuesday with an appeal for a quick acquittal.
· U.S. budget deficit to top $1 trillion in 2020 despite strong economy, CBO says
The U.S. economy will grow at a “solid” rate of 2.2% this year, the non-partisan Congressional Budget Office forecast on Tuesday, but the federal budget deficit will hit $1.02 trillion.
The economy will be strong during this presidential election year, thanks in part to consumer spending, CBO said, but it forecast “higher inflation and interest rates after a decade in which both remained low, on average.”
Economic growth will slow to an average annual rate of 1.7% from 2021 to 2030, CBO predicted, while inflation and interest rate increases will slow in 2023.
CBO projections assume that current laws governing taxes and spending will generally remain unchanged.
Under the current system, budget deficits will push overall U.S. federal debt held by the public to $31.4 trillion by the end of 2030, CBO estimated.
That would be 98% of gross domestic product, or the total monetary value of all goods and services produced in the United States. That’s a higher rate than at any point since just after World War II, CBO said, and “more than double what it has averaged over the past 50 years.”
As a result, U.S. federal spending will grow more than revenues through 2050, CBO estimates.
· The Bank of Japan ought to conduct a review of its monetary policy framework as the economy suffers prolonged low growth and subdued inflation, one of its board members said in a rate review in January.
Reference: Reuters, CNBC
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