· CORONAVIRUS UPDATES:
Ø Total confirmed cases: More than 90,433
Ø Total deaths: At least 3,119
Ø The coronavirus COVID-19 is affecting 76 countries and territories around the world and 1 international conveyance (the Diamond Princess cruise ship harbored in Yokohama, Japan).
- More nations report virus cases
Morocco joined Latvia and Senegal in reporting the first cases of COVID-19 in each country on Monday. The outbreak, which originated in China, has since spread to more than 60 nations and five continents. While the vast majority of cases remain in China, the number of new cases outside the country are surging.
- WHO says new coronavirus cases outside China surge over the last 24 hours
The number of new coronavirus cases outside China was almost 9 times higher than that inside the country over the last 24 hours, World Health Organization officials. As epidemics spread across other continents, new cases in China are falling, WHO Director-General Tedros Adhanom Ghebreyesus said during a press briefing at the agency’s headquarters in Geneva. It reported just 206 new cases of the coronavirus, COVID-19, on Sunday, the lowest number of new cases in that country since Jan. 22, he said. Outside China, the total number of cases now tops 8,739 across 61 countries, including 127 deaths, Tedros said. About 81% of cases outside China are from four countries, he added.
- EU coronavirus deaths reach 38, bloc raises risk level to high
The president of the European Commission said the European Union’s disease prevention agency had raised the bloc’s risk level to high, as the coronavirus continues to spread. Ursula von der Leyen told a news conference in Brussels that the European Center for Disease Prevention and Control had raised its risk level up from moderate, with more than 2,100 cases of coronavirus confirmed in 18 of the 27 EU states. EU Health Commissioner Stella Kyriakides confirmed that 38 EU citizens had died as a result of the flu-like virus.
- Pence says coronavirus-related travel restrictions may expand
Vice President Mike Pence said the administration’s decision on whether to expand its travel advisories for Italy and South Korea will be based on how many new cases they report. “The action the president authorized this weekend, raising the travel advisory, the American people should know we’re saying you should not travel to certain sections of Italy or South Korea. Those advisories may expand, but we’ll allow the caseload in those countries to define that,” he said during a White House press briefing. The Trump administration currently recommends Americans refrain from visiting regions of Italy and South Korea impacted by the virus.
- Coronavirus deaths rise to six in Seattle area as U.S. pushes for more testing
Six people in the Seattle area have died of the illness caused by the new coronavirus, health officials said on Monday, as authorities across the United States scrambled to prepare for more infections with the emphasis on increasing testing capacity.
- Texas city declares emergency after CDC releases woman infected with coronavirus
Ron Nirenberg, mayor of San Antonio, Texas, declared a public health emergency after the federal government released a woman from quarantine who tested positive for COVID-19, San Antonio officials confirmed to CNBC. The woman was among the 91 Americans evacuated from Wuhan and placed in federal, 14-day quarantine at Joint Base San Antonio-Lackland. The woman tested negative twice for the new coronavirus and was released Saturday under guidance from the Centers for Disease Control and Prevention, Nirenberg said. Representatives from San Antonio declined to comment on the nature of the emergency declaration or how long it will last.
- Goldman sees the Fed getting even more aggressive in the face of coronavirus scare
The U.S. Federal Reserve is likely to join other global central banks in cutting interest rates aggressively in response to the coronavirus scare, Goldman Sachs economists said Sunday. With fears over a global slowdown intensifying, the Fed likely will announce a 50 basis point cut at its March meeting, if not sooner, the firm said. In all, Goldman sees the Fed cutting 100 basis points this year, which is an increase from just Friday, when it saw a cut of 75 basis points.
- CME Group’s FedWatch tool shows traders have priced in a 100% probability of a 50 basis-point rate cut later this month. Expectations for another rate cut in April are around 70%.
Powell and Mnuchin will lead G-7 emergency call on the coronavirus Tuesday
Global financial ministers and central bankers will hold a conference call on Tuesday to coordinate the financial and economic response to the coronavirus.
The teleconference call will be led by Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell on Tuesday at 7 a.m ET, CNBC’s Steve Liesman reported. Representatives of the Group of Seven industrialized nations will attend the call.
It will be a “coordinating call” for the financial and economic response to virus, according to a source.
- Bank of Japan Governor Haruhiko Kuroda said on Monday that Japan’s central bank would take necessary steps to stabilize financial markets. That followed a similar move by Fed Chair Jerome Powell last Friday.
- Consumers buy up survival foods like dried beans and vitamins
Consumers are shopping for more foods with long shelf lives and packaged items as the number of coronavirus cases in the U.S. rises, according to the latest Nielsen data. At U.S. stores, sales of fruit snacks were up by nearly 13%, dried beans were up 10% and pretzels were up 9% in the week that ended Feb. 22, according to Nielsen data that compared the period to the same time a year earlier. Sales of energy drinks, pet medicine, vitamin supplements and first aid kits also saw sales spike. On the other hand, sales of fresh fruit and vegetables have dropped. Mandarins were down 4% and celery was down 16% in the week that ended Feb. 22.
- The coronavirus outbreak could mean no summer vacations this year
Summer vacations could be off the table this year as tourists put off traveling to avoid catching the new coronavirus. Demand for international travel has taken a downward turn amid the outbreak, which has seen the virus spread to at least 60 countries. Ian Harnett, co-founder and CIO of investment research firm Absolute Strategy, warned a prolonging of the crisis could seriously impact the global travel sector. “If this gets extended, we’re talking about the impact on Easter holidays, potentially summer holidays, (and) whether the ‘staycation’ becomes the default for all of us here — that’s going to be tremendously damaging to these industries,” he said.
- U.S. Senate leader wants to pass coronavirus bill within two weeks
U.S. Senate Majority Leader Mitch McConnell said on Monday he wanted the Senate to pass a spending bill for the coronavirus “within the next two weeks.”
The bill is expected to provide billions of dollars for the virus response. The House of Representatives is expected to vote on its version of the legislation as soon as Wednesday.
- ECB ready to take 'targeted' steps on coronavirus: Lagarde
The European Central Bank is ready to take “appropriate and targeted measures” to fight the impact of the coronavirus outbreak, it said on Monday, joining its U.S. and Japanese counterparts in signaling a possible policy move.
With the virus spreading around the globe, governments and central banks are coming under pressures to support growth, which is suffering from travel restrictions, weakening demand, supply chain disruptions and a sharp market sell-off.
“We stand ready to take appropriate and targeted measures, as necessary and commensurate with the underlying risks,” ECB President Christine Lagarde said in a statement on Monday.
“The coronavirus outbreak is a fast developing situation, which creates risks for the economic outlook and the functioning of financial markets,” she added.
- PM Johnson says UK ready for potential economic downside of coronavirus
British Prime Minister Boris Johnson said on Monday that the government was ready for a potential economic downside of the coronavirus outbreak, but that the fundamentals of the economy were strong.
The United Kingdom has so far had 40 confirmed cases of the virus and Johnson has warned that there could be a significant increase.
· Global growth plunging into downturn over coronavirus, OECD says
The coronavirus outbreak is plunging the world economy into its worst downturn since the global financial crisis, the Organisation for Economic Cooperation and Development warned on Monday, urging governments and central banks to fight back to avoid an even steeper slump.
The global economy is set to grow only 2.4% this year, the lowest since 2009 and down from a forecast of 2.9% in November, the OECD said in an update of its outlook.
The Paris-based policy forum projected the global economy could recover to 3.3% growth in 2021, assuming the epidemic peaked in China in the first quarter of this year and other outbreaks proved mild and contained.
However, if the virus spreads throughout Asia, Europe and North America, global growth could drop as low as 1.5% this year, the OECD warned.
In the OECD’s base case, in which the situation does not deteriorate dramatically, China would bear the brunt of the downturn this year, cutting its 2020 forecast to a 30-year low of 4.9%, down from 5.7% in November.
The world’s second-biggest economy would rebound to pre-coronavirus levels in 2021 with growth of 6.4%, the OECD forecast, but not before the impact of its downturn rippled far beyond.
In the euro area, where the number of cases is rising fast, growth was seen at 0.8%, down from 1.1% in November, with Italy seeing flat growth this year as it struggles to contain a jump in cases. Euro zone growth was seen rising to 1.2% in 2021.
The virus was seen having a limited impact on U.S. growth, which was seen at 1.9%, down from 2.0% in November. Growth would then pick up to 2.1% in 2021, the OECD forecast.
· Dollar dips as coronavirus damage spurs interest rate cut bets
The U.S. dollar slipped to a six-week low against a basket of currencies on Monday, as investors bet on the U.S. Federal Reserve easing policy in a bid to counter the negative impact from the spread of the new coronavirus.
The dollar index, which measures the greenback’s strength against a basket of six other major currencies, was 0.53% lower at 97.448. Earlier it slipped to a low of 97.176, its lowest since Jan. 16.
Global risk assets, including equities, were hammered hard last week as investors worried about the economic impact of the global spread of the virus.
U.S. manufacturing activity slowed in February as the supply chain disruptions arising from the coronavirus outbreak dragged on output and new orders, surveys of purchasing managers showed on Monday.
The Institute for Supply Management (ISM) said its index of national factory activity fell to a reading of 50.1 last month from 50.9 in January. Economists polled by Reuters had forecast the index would slip to 50.5 in February.
A reading above 50 indicates expansion in the manufacturing sector, which accounts for 11% of the U.S. economy.
The damage to global markets due to the spread of the coronavirus has raised hopes of a coordinated policy action from global monetary authorities.
But policymakers at the European Central Bank, including its president, Christine Lagarde, have shown reluctance to cut rates from the current minus 0.5%.
On Monday, the euro was up 1.13% against the dollar.
· South Korea February inflation slows as virus hits demand
South Korea’s consumer inflation eased in February on cooling demand due to the coronavirus outbreak and falling oil prices, official data showed on Tuesday, underpinning the need for further rate cuts to boost consumption and growth.
The consumer price index (CPI) rose 1.1% in February from a year earlier, Statistics Korea said, down from a 1.5% increase in January but a notch above the median 1.0% rise seen in a Reuters poll.
· South Korea fourth-quarter GDP growth upgraded from earlier estimates
South Korea’s economy turned out to have expanded a notch more than estimated during the final quarter of 2019 driven by domestic demand and capital investment, revised central bank data showed on Tuesday.
The economy, Asia’s fourth-largest, grew by a seasonally adjusted 1.3% in the October-December period from the previous quarter, just above a 1.2% rise estimated earlier, the Bank of Korea’s revised gross domestic product (GDP) data showed.
Private consumption, which generates nearly half of South Korea’s GDP, grew a revised 0.9%, more than the 0.7% increase estimated earlier, while facilities investment growth was revised up to 3.3%, from 1.5% reported earlier.
· Oil up over 4% as hopes of OPEC cut, stimulus counter virus gloom
Oil prices rose over 4% on Monday, reversing an early fall to multi-year lows as hopes of a deeper cut in output by OPEC and stimulus from central banks countered worries about damage to demand from the coronavirus outbreak.
Brent crude LCOc1 futures gained $2.23, or 4.5%, to settle at $51.90 a barrel. The session low of $48.40 was its lowest since July 2017.
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose $1.99, or 4.5%, to settle at $46.75 a barrel. The session low of $43.32 a barrel was the lowest since December 2018.
It was the first gain for both benchmarks after six sessions of losses triggered by worries about the coronavirus, which has killed nearly 3,000 people and roiled global markets.
Reference: CNBC, Reuters, Worldometers
Thai
Eng