· CORONAVIRUS UPDATES:
Meanwhile news from mainland China reported 97 new deaths Saturday. According to the health commission, 96 deaths occurred in Hubei province and one person died in Guangdong. In addition, China also reported 648 more confirmed cases.
This brings the global total number of deaths to 2,456, and the number of confirmed cases worldwide to at least 78,442.
- Confirmed Cases and Deaths by Country, Territory, or Conveyance
The novel coronavirus COVID-19 is affecting 33 countries and territories around the world and 1 international conveyance (the "Diamond Princess" cruise ship harbored in Yokohama, Japan).
- Turkey, Pakistan and Armenia have closed their borders with Iran as the latter reported more coronavirus infections and deaths, prompting neighbouring Afghanistan to also introduce travel restrictions. It comes after Iran reported 43 cases of the disease and eight deaths.
- The measures introduced on Sunday came amid mounting over the rise of cases outside of China, particularly in Italy and South Korea alongside Iran.
- South Korea raises alert level to maximum, Italy and Iran cases spike
- More than 100 cases of coronavirus have been confirmed in Italy, as the government adopts measures to limit the spread of the outbreak.
Italy: 132 cases, two deaths.
South Korea: 602 people have been infected by the virus and five people have died.
Japan: more than 130 people have been infected and four have died.
- China braces for inevitable big hit to economy from virus, says Xi
China will step up policy adjustments to help cushion the blow to the economy from a coronavirus outbreak that authorities are still trying to control, President Xi Jinping was quoted as saying on Sunday.
Chinese policymakers have rolled out a raft of measures to support an economy jolted by the virus, which is expected to have a devastating impact on first-quarter growth.
The situation is showing a positive trend after arduous efforts but there is no room for “weariness and relaxed mentality” among officials, state television quoted the president as saying.
“At present, the epidemic situation is still severe and complex, and prevention and control work is in the most difficult and critical stage,” Xi said.
“The outbreak of novel coronavirus pneumonia will inevitably have a relatively big impact on the economy and society,” Xi said, adding that the impact would be short-term and controllable.
- China's central bank vows to take more steps to support virus-hit economy
China’s central bank will take further steps to support the virus-hit economy, including releasing more liquidity and lowering funding costs for companies, a vice governor of the bank told state media.
- China central bank vice governor: Coronavirus' impact on China's economy short-term, limited - state media
A senior Chinese central banker said that coronavirus’ impact on China’s economy is short-term and limited, and the country is fully confident that it will win the war against the epidemic, state media reported on Saturday.
Chen Yulu, deputy governor of the People’s Bank of China, said that China has ample policy tools to manage the economy, and that its accommodative monetary policy remains unchanged, according to China Central Television (CCTV).
Chen also said that the Chinese currency will not appreciate or depreciate by a big margin, and the country’s financial system is highly resilient in the face of risks.
- Austria halts train traffic with Italy
Austria has halted train traffic with its southern neighbor amid concern that two passengers on an in-bound train from Italy were infected with the coronavirus. Italy is grappling with the largest coronavirus outbreak outside of Asia, with more than 130 reported cases and three deaths.
- Air New Zealand cuts 2020 outlook
Air New Zealand cut its 2020 outlook, as the impact from the coronavirus and subsequent capacity reductions appear set to offset benefits from lower jet fuel prices, Reuters reported. The airline said the negative impact to earnings was between $22.2 million and $47.4 million, Reuters said.
- Mnuchin: Central bankers will look at options for responding to virus
Treasury Secretary Steven Mnuchin, speaking after a meeting of G20 financial leaders, told reporters that central bankers will look at options for responding to the virus as needed. “I’m not going to comment on monetary policy, but obviously central bankers will look at various different options as this has an impact on the economy,” he said.
- Official: Third person dies in coronavirus outbreak in northern Italy
A third person infected with the coronavirus has died in Italy, a regional official said, as the government struggles to contain an outbreak of the illness in the north of the country with more than 130 cases reported since Friday. Lombardy regional councilor Giulio Gallera told reporters the victim was an elderly woman from the town of Crema, east of Milan, who was also suffering from cancer. Two other elderly patients in northern Italy have died over the past 48 hours. The government has placed a dozen towns under quarantine and closed down schools.
- There’s a ‘clear will’ from governments to react if coronavirus outbreak persists: EU commissioner
Paolo Gentiloni, the European commissioner for economic affairs, told CNBC that there’s a “clear will” from governments to react if the virus outbreak persists. “Our assessment that was made here at G20 was to update continuously information on this situation and be ready to react if the downside risk will materialize,” he said.
Earlier in the day, Gentiloni said the European Union sees “no need to panic” over a coronavirus outbreak in Italy that has already killed two people and infected more than 100 in the country. The comments came after a meeting of G20 financial leaders in Saudi Arabia.
- Central bankers will look at options for responding to coronavirus: Mnuchin
U.S. Treasury Secretary Steven Mnuchin said on Sunday central bankers will look at options for responding to the fast-spreading coronavirus as needed.
Mnuchin told reporters after a meeting of finance officials from the world’s 20 largest economies that it was too early to speculate about the longer-term impact of the deadly outbreak, but more would be known in three to four weeks.
“I’m not going to comment on monetary policy, but obviously central bankers will look at various different options as this has an impact on the economy,” Mnuchin said.
- G20 finance heads eye impact of coronavirus outbreak on growth, see modest pickup
Finance chiefs of the world’s top 20 economies vowed to monitor the impact of the coronavirus outbreak on global growth and act if needed, as they said loose monetary policy and easing trade tensions would prompt a pick-up in 2020 and 2021.
The Group of 20 (G20) finance ministers and central bank heads faced a sober presentation by the International Monetary Fund (IMF), which predicted the epidemic would shave 0.1 percentage points off global growth.
Japan called on G20 countries with fiscal space to ramp up spending to help the global economy weather risks, including the fallout from the coronavirus outbreak, Finance Minister Taro Aso said on Saturday.
- IMF chief sees negative economic impact from virus, even if outbreak contained
The coronavirus that originated in China will have a negative impact on the global economy even if it is rapidly contained, and it would be to prepare for more significant consequences, the head of the IMF said. International Monetary Fund Managing Director Kristalina Georgieva, in a statement issued after a meeting of finance officials from the world’s 20 largest economies, called for coordinated action to contain the human and economic impact of the virus.
- IMF lowers global growth forecast, cases surge in South Korea
The International Monetary Fund (IMF) said on Saturday that the virus will likely cut off 0.1% from global growth, and drag down growth for China’s economy to 5.6%, which is 0.4% lower from its January outlook.
“But we are also looking at more dire scenarios where the spread of the virus continues for longer and more globally, and the growth consequences are more protracted,” said International Monetary Fund Managing Director Kristalina Georgieva at the G20 Finance Ministers and Central Bank Governors Meeting.
- G20 ready to adopt policies to limit economic impact of virus
Saudi Arabia’s finance minister said that finance officials from the Group of 20 major economies agreed to continue monitoring the risk from the coronavirus outbreak and to adopt appropriate policies to limit the global economic impact.
- France has seen a 30% to 40% fall in tourists following the coronavirus outbreak: Finance minister
France’s tourism sector has taken a beating following the coronavirus outbreak, according to the country’s finance minister.
“We have less tourists, of course, in France, about 30%, 40% less than expected,” Bruno Le Maire told CNBC’s Dan Murphy on Sunday at the G-20 Finance Ministers and Central Bank Governors’ Meetings in Riyadh, Saudi Arabia.
“That’s, of course, an important impact for the French economy,” he said.
The new coronavirus infection first surfaced in late 2019 in the Chinese city Wuhan, and the disease has since killed nearly 2,500 people in China.
Amid travel bans and trip postponements, demand for air travel has fallen, leading to more than 200,000 flight cancellations.
France is one of the most visited countries in the world. According to the country’s Ministry for Europe and Foreign Affairs, 89.4 million visitors toured France in 2018 and tourism accounts for nearly 8% of its gross domestic product.
It also welcomes around 2.7 million Chinese tourists each year, Le Maire said. “It won’t be the same, of course, in 2020.”
- Kuroda says BOJ will be 'fully prepared' to act on virus risk
The Bank of Japan will be fully prepared to take necessary action to mitigate the impact of the coronavirus on the world’s third-largest economy, its Governor Haruhiko Kuroda said.
Kuroda said there was no major change to the BOJ’s projection that Japan’s economy would keep recovering moderately thanks to an expected rebound in global growth around mid-year.
He also repeated the view that, while the central bank stands ready to ease monetary policy further “without hesitation”, it saw no immediate need to act.
- BOJ's Kuroda blames yen's fall on strong dollar, upbeat on economy
Bank of Japan Governor Haruhiko Kuroda said on Saturday the yen’s recent declines were largely driven by a strong dollar, shrugging off some market views that the widening coronavirus epidemic is triggering an outflow of funds from Asia.
Kuroda also said he had not changed his view that Japan’s economy would continue to recover moderately, suggesting that he saw no immediate need for the BOJ to expand stimulus.
“If needed, we will take additional monetary easing steps without hesitation,” he told reporters upon arriving at a Group of 20 finance leaders’ gathering in Riyadh.
“But the situation is still uncertain. I don’t think our scenario projecting a moderate economic recovery has been derailed.”
· In next downturn, Fed may opt for quick, strong action
In the next economic downturn, the Federal Reserve and other central banks may need to roll out their big guns sooner and use them more aggressively, or risk getting mired in growth-sapping deflation or worse.
That was the argument laid out Friday by a group of veteran monetary policy analysts and Federal Reserve Governor Lael Brainard, who called for using now-familiar policy tools like forward guidance more forcefully, and adopt new ones like capping interest rates to bolster the Fed’s clout.
· Dollar dented as data disappoints; yen catches a safety bid
The U.S. dollar fell across the board on Friday after a survey of purchasing managers showed U.S. business activity in the manufacturing and services sectors stalled in February and as investors fretted over the fast-spreading coronavirus.
The IHS Markit flash services sector Purchasing Managers’ Index dropped to 49.4 this month, the lowest since October 2013 and signaling that a sector accounting for roughly two-thirds of the U.S. economy was in contraction for the first time since 2016. Economists polled by Reuters had forecast a reading of 53.
The manufacturing sector barely escaped a slip into contraction, with a flash reading of 50.8, the lowest since August.
Against a basket of six other currencies, the U.S. dollar was down 0.59%.
The euro was 0.68% higher against the greenback. Business activity in the euro zone picked up more than expected this month, a business survey showed on Friday, in welcome news for policymakers at the European Central Bank, who are trying to revive growth and chronically low inflation.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 99.428 after seeing highs around 99.9 last week.
The Japanese yen traded at 111.50 per dollar following a weakening from levels below 110.4 in the previous trading week.
· Democratic rivals aim to slow Sanders' momentum after his big win in Nevada
Democratic presidential contenders fanned out across the United States on Sunday to try to blunt Bernie Sanders’ momentum after his dominant victory in Nevada solidified his front-runner status ahead of 15 key nominating contests in the next 10 days.
· Oil slides 1% on renewed fears over toll from coronavirus
Oil prices fell about 1% on Friday on renewed concerns about crude demand being pinched by the economic impact of the coronavirus outbreak, while OPEC and allied producers appeared to be in no rush to curb output.
The latest signs of infections outside the Hubei province epicenter in China spurred a selloff across financial markets, as G20 policymakers traveled to Saudi Arabia for talks on the global economy.
Brent crude LCOc1 tumbled as more than 2% at one point before settling down 81 cents, or 1.4%, at $58.50 a barrel. U.S. crude futures CLc1 settled 50 cents lower, or 0.9%, at $53.38.
Both benchmarks were on track for their second consecutive weekly rise, with Brent up 2% and U.S. crude rising 2.6%, as fears over the virus’ impact on demand eased earlier in the week and after a smaller-than-expected U.S. crude stock build.
Reference: Reuters, CNBC, New York Post, Al Jazeera, Worldometers, Saraacarter, The Guardian
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