· The dollar checked its march higher on Tuesday, as investors sharply raised bets that the growing fallout from the coronavirus outbreak would prompt U.S. interest rate cuts.
That helped to stay a steep slide in Asian currencies that has accompanied the virus’ recent rapid spread beyond China and allowed the pound and euro to drift slightly higher.
The Australian and New Zealand dollars were each about 0.2% stronger against the greenback. The Chinese yuan rose 0.2% and the Korean won mostly recouped heavy losses made on Tuesday.
Against a basket of currencies the dollar was a touch weaker at 99.321. However, without much good news on the virus, few expect the dollar to give back too much of its recent gains.
Japan’s Prime Minister Shinzo Abe said on Tuesday that clusters of cases had emerged there and that the government would take stronger steps to fight contagion, giving Asian investors another reason to stay cool on the yen.
It traded only modestly stronger at 110.82 per dollar.
CORONAVIRUS OUTBREAK
· China’s top legislature said it will immediately ban the trade and consumption of wild animals, in a fast-track decision it says will allow the country to win the battle against the coronavirus outbreak.
The use of wild animals for non-edible purposes, including scientific research, medical use and display, will be subject to strict examination, approval and quarantine inspection.
· A cabin crew member of Korean Air has tested positive for the coronavirus, the South Korean airline said on Tuesday, according to Reuters. That has caused the airline to shut its office near the Incheon International Airport at the city’s capital Seoul.
Details of the routes and flights where the crew member were on were not immediately available, the report said.
· South Korea aims to test more than 200,000 members of a church at the center of a surge in coronavirus cases as countries stepped up efforts to stop a pandemic of the virus that emerged in China and is now spreading in Europe and the Middle East.
· Two more Iranians infected with a coronavirus have died, media website Eghtesaonline said on Tuesday, taking to 14 the toll in the Islamic Republic, which has the highest tally of deaths outside China, where the virus emerged late last year.
On Monday, the health ministry said 61 people had been infected in Iran.
· The Japanese government on Tuesday urged companies to recommend telecommuting and staggered shifts for workers in a bid to curb the spread of the new coronavirus.
The plan, approved at a cabinet meeting on Tuesday, also urged people with symptoms of cold or fever to stay at home and asked event organizers to carefully consider whether to proceed with their plans.
· South Korea reports 60 new cases of coronavirus. The country's total is now 893
South Korea recorded 60 additional cases of novel coronavirus overnight, bringing the country’s total to 893 cases, the South Korean Centers for Disease Control and Prevention (KCDC) said in a statement.
Here's a breakdown of the new cases:
Seoul: 2
Busan: 3
Daegu: 16
Gyeonggi Province: 5
North Gyeongsang Province: 33
South Gyeongsang Province: 1
More than half of the country's total cases are associated with a branch of a religious group in the southern city of Daegu.
· A fourth passenger from the cruise ship “Diamond Princess” moored in Japan has died from the coronavirus, NHK public television said on Tuesday. The passenger was in their 80s, NHK said.
Japan has come under fire for its handling of the situation on the cruise ship, which is operated by Carnival Corp (CCL.N) and where hundreds became infected. The number of patients is rising around Japan, with the government set to announce a set of measures to combat it later on Tuesday.
· The U.S. and South Korean militaries said on Monday they are considering scaling back joint training because of mounting concerns about the coronavirus, in one of the first signs of the epidemic’s fallout on global U.S. military activities.
· Major American companies are reeling from coronavirus
A growing number of major American companies are saying coronavirus is hurting their business.
Late Monday, United Airlines announced that it has suspended flights between the United States and four destinations in China, routes that represent approximately 5% of the company's planned capacity, because of the virus.
The airline said near-term demand for flights to China has fallen to near zero, and the demand for flights to the rest of its trans-Pacific routes has declined 75%.
The canceled flights were between the US and Beijing, Chengdu, Shanghai and Hong Kong and will be suspended through April 24. United said that despite these "short-term" issues, the company believes "it will be in a strong position to deliver earnings growth in 2021 and beyond."
· CDC raises travel advisory for South Korea to Level 3
The US Centers for Disease Control and Prevention (CDC) has raised the travel advisory for South Korea to Warning Level 3, due to the novel coronavirus outbreak.
The CDC recommends that travelers avoid all nonessential travel to South Korea, because there is limited access to adequate medical care in novel coronavirus affected areas.
South Korea has a total of 893 confirmed cases of the coronavirus.
· CDC raises travel advisory for Italy and Iran to Level 2
The US Centers for Disease Control and Prevention (CDC) has raised its travel advisories for Italy and Iran to Alert Level 2, due to the novel coronavirus outbreak.
According to the CDC, both Italy and Iran are experiencing “sustained community spread of respiratory illness (COVID-19) caused by the novel coronavirus.”
Older adults and people with chronic medical conditions should consider postponing nonessential travel to these countries, the CDC recommends.
Travelers should also avoid contact with sick people and clean their hands often by washing with soap and water for at least 20 seconds or using an alcohol-based hand sanitizer with 60%–95% alcohol, the CDC says.
Also on Tuesday, the CDC raised its travel advisory for South Korea to Warning Level 3 -- recommending that travelers avoid all nonessential travel to South Korea.
· The Chinese government has enlisted the help of technology companies to create products to help contain the spread of the coronavirus.
Technologies from drones to facial recognition are being used to track people.
Experts told CNBC that the ramp up in surveillance could continue even after the virus is contained.
· Malaysia’s Mahathir Mohamad went back to work on Tuesday with the new title of interim prime minister, a day after he resigned the leadership in a shock move that plunged the country into political turmoil.
It was not immediately clear how long Mahathir would remain in the interim role, when a new cabinet would be appointed or how the next government would be formed.
· Oil steadied on Tuesday as investors sought bargains after crude benchmarks slumped almost 4% in the previous session, although concerns about the coronavirus spreading out of China denting major economies and curbing fuel demand capped gains.
Brent crude rose 19 cents, or 0.3%, to $56.49 a barrel by 0436 GMT, after slipping 3.8% on Monday, the largest single-day price fall since Feb. 3.
U.S. crude futures gained 17 cents, or 0.3%, to $51.60, recovering from a 3.7% drop in the previous session.
· OPEC and its allied oil-producing nations are still working well together and still have options to try to rebalance global crude markets, Saudi Energy Minister Prince Abdulaziz bin Salman said Tuesday.
His comments came amid speculation that there is tension in the alliance, known as OPEC+, over whether to cut oil production further. Prices continue to be weighed on by ample supply and falling demand and, lately, fears surrounding the coronavirus and its impact on the global economy.
OPEC and its non-OPEC allies, led by Russia, will meet in Vienna on March 5-6 but there is uncertainty over whether the entire group will agree to cut their collective oil output further with rumors that Russia is still undecided. As it stands, the alliance has reduced its total oil output by 1.7 million barrels a day in a bid to stabilize oil prices.
Reference: Reuters ,CNBC, CNN
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