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Coranavirus Outbreak



· China confirms 64 additional deaths and 3,235 new cases

China’s National Health Commission said there were an additional 64 deaths and 3,235 new confirmed cases. It said all of the additional deaths were in Hubei, where Wuhan is located. That brings the country’s total to 425 deaths and 20,438 confirmed cases, the government said.

· The United Arab Emirates announced it will suspend all flights to and from China starting on Wednesday, a state news agency reported. Flights from Beijing were exempted from the ban. The UAE is home to Dubai, which has the world’s third-busiest airport.

· Top WHO official warns world may be ‘dangerously unprepared’ for next pandemic

WHO Director-General Tedros Adhanom Ghebreyesus said the world may be “dangerously” unprepared for the next pandemic. At a World Health Organization executive board meeting in Geneva, Tedros urged the 196 member countries to “invest in preparedness,” not “panic.” He said funding for outbreak preparedness in surrounding countries “has remained grossly inadequate” in the past.


· China has agreed to allow U.S. health experts into the country as part of a World Health Organization (WHO) effort to help fight the fast-spreading coronavirus, as the number of cases and deaths continued to mount.

· China’s Foreign Ministry accused the U.S. on Monday of setting a “very bad example” when it comes to tackling the fast-spreading coronavirus outbreak, saying President Donald Trump’s administration is spreading fear instead of providing much-needed assistance.

A ministry spokesperson said it’s unreasonable for countries around the world to try to prevent people from crossing borders.



· Yen, Swiss franc slide as China takes measures to limit virus impact

The safe-haven yen and Swiss franc declined on Monday, as risk sentiment improved and fears about the coronavirus eased after China took measures to cushion the economic impact of the new epidemic and pledged to do more to contain it.

China’s offshore yuan dropped to a more than seven-week low against the U.S. dollar on Monday, but trimmed its losses as New York trading got under way.

Chinese markets still took a beating in the first trading session after an extended Lunar New Year break. The offshore yuan dropped as low as 7.023 yuan per dollar CNH=EBS. The dollar was last up 0.2% against the Chinese currency at 7.014 yuan.

In afternoon trading, the dollar rose 0.3% against the yen to 108.67 JPY=, off a three-week low set on Friday.

The dollar also extended gains versus the yen after data showed the Institute for Supply Management’s U.S. manufacturing index unexpectedly rose in January.

The Swiss franc also fell against the dollar, which climbed 0.3% to 0.9660 franc CHF=.

Gains against the yen and Swiss franc pushed the dollar index up 0.4% at 97.805 .DXY.

The euro also fell 0.3% versus the dollar to $1.1062 EUR=.

Sterling, meanwhile, tumbled after Britain laid out a tough opening stance for future talks with the European Union following its departure from the bloc last week.

Sterling was last down 1.6% at $1.3030 GBP=, retracing all of its gains following the Bank of England's decision last week to keep interest rates on hold.



· Fed's Bostic says U.S. inflation, employment on target

With inflation stable and the U.S. economy close to full employment, the Federal Reserve will be able to keep interest rates where they are for the time being, Atlanta Federal Reserve Bank President Raphael Bostic said on Monday.

“In general I think both on the inflation and employment side, we are performing pretty much close to target if not right on it, so that’s encouraging,” Bostic said at a Global Interdependence Center conference in San Diego. “I think that can be sustained for a while, and so in that context, I think our policy stance of stability makes a lot of sense.”

The Fed cut rates three times last year to a target range of 1.5% to 1.75%, and most policymakers have signaled it will likely be appropriate to leave rates there through the end of 2020, unless there is a material change in the outlook. By contrast traders are betting the Fed will need to cut rates again by June.



· Oil falls to a more than 1-year low

Oil fell to its lowest level in more than a year in midday trading as fears of slowing demand hammered crude prices. “The oil market has been subject to many supply shocks over recent years, but an acute demand shock has not been felt since the 2008 financial crisis,” RBC’s Michael Tran said in a note to clients, adding that the coronavirus has “roiled the oil market.” China is the world’s largest oil importer and the second-largest oil consumer, so a demand slowdown could have a big impact on prices.



· Oil hits 13-month lows as coronavirus cuts demand

Oil prices fell to the lowest in more than a year on Monday as the coronavirus outbreak curtailed Chinese demand and sparked potential supply cuts by OPEC and its allies.

Brent crude LCOc1 settled down $2.17, or 3.8% at $54.45 a barrel, its lowest since January last year.

U.S. West Texas Intermediate (WTI) crude CLc1 fell $1.45 a barrel to $50.12 after touching a session low of $49.91, also the lowest since January 2019.

Independent refineries in Shandong province, which collectively import about a fifth of China’s crude, cut output by 30% to 50% in a little more than a week, executives and analysts said.



Reference: Reuters, CNBC