(Bloomberg) — Italy started its first working day after a government decree sought to curb movement within the country’s financial hub. The French finance minister said Europe should prepare “massive and coordinated” fiscal stimulus, while the U.S. is drafting measures to blunt fallout from the epidemic.About half of the world’s countries have now reported cases. The rapid spread, combined with Saudi Arabia’s oil price war, pushed many European and Asian equity indexes toward bear markets. S&P 500 futures hit circuit breakers and Treasury yields tumbled, with the entire curve trading below 1% for the first time.Key Developments:Cases surpass 109,000 worldwide; deaths exceed 3,800U.S. warns against cruises; Two U.S. lawmakers self-quarantineColumbia University and schools in Scarsdale to suspend classesApple’s Cook offers work from home this week to most staffCoronavirus shock tests the airline industry’s cash ‘fortress’Click VRUS on the terminal for news and data on the coronavirus and here for maps and charts. For analysis of the impact from Bloomberg Economics, click here.Dalio Says Virus Threat Needs Coordinated Response (6:09 p.m. HK)Ray Dalio says the economic impact of the coronavirus outbreak will require a coordinated fiscal and political response as central banks run perilously low on ammunition.The U.S. Federal Reserve’s limited ability to cut rates and carry out quantitative easing won’t be enough to counteract the fallout from the spreading virus, the billionaire founder of Bridgewater Associates wrote in The Financial Times on Monday.Virus-Related U.S. Drugmakers, Test Makers Surge (6:07 p.m. HK)Inovio and Enzo Biochem are among U.S. drug developers and diagnostic test makers surging in pre-market trading after news that the coronavirus has spread to about half of the world’s countries, boosting the need for testing and treatment options.EU Regulators Mull Measures to Support Airlines (6:05 p.m. HK)European Union regulators are considering helping airlines cope with the “significant” impact of the coronavirus outbreak by loosening a rule on the use of airport slots. EU law requires carriers to use at least 80% of their slots or risking losing them the following year.The possible relief would come from European Commission, the EU’s regulatory arm in Brussels. “The commission is currently assessing all available data regarding the significant impact of COVID-19 on the aviation industry,” the 27-nation regulator said in an emailed statement on Monday. “We are actively assessing all possible options, including revising the slots legislation to address the challenge.’Qatar to Close Schools, Universities (6:04 p.m.)Qatar plans to shutter schools and universities indefinitely from Tuesday. Saudi Arabia had announced similar moves earlier.NATO Staff Member Working in Brussels Has Coronavirus (6:03 p.m. HK)Staff member had come back from a holiday in northern Italy and is currently at home in self-isolation. Employees who came into contact with the person have been working from home.Ex-BOE Chief Says Rate Cuts Aren’t Right Response (5:46 p.m. HK)Interest rate cuts and a broad fiscal spending aren’t an effective way to tackle the economic fallout from the coronavirus, according to former Bank of England Governor Mervyn King. U.K. finance minister Rishi Sunak should instead focus on short-term measures in this week’s budget, such as cash flow support for virus-hit businesses, King said in an interview with BBC Radio 4.Recession Looms in Europe, France Calls for Massive Response (5:$3 p.m. HK)The euro-area economy may be headed for its first recession in seven years. With Italy attempting a sweeping lock-down across its richest areas and infections growing in other countries, economists at Morgan Stanley and Berenberg expect the euro-zone gross domestic product to shrink in the first half of the year.In France, the central bank now sees output barely growing in the first quarter, failing to recover from what was seen as a temporary contraction in the previous three months. French Finance Minister Bruno Le Maire highlighted his concern, saying Europe needs a “call to arms” to defend the already-weakened economyGrab Shuts Singapore, Thailand Offices (5:09 p.m. HK)Grab Holdings Inc. closed offices in Singapore and Thailand for five days of cleaning after a Singapore-based employee, who previously visited the Bangkok office, tested positive for the coronavirus.Virus Fear Casts Shadow Over Cruise Ships Adrift at Sea: (5:07 p.m. HK)Malaysia and Thailand refused to accept Carnival Corp.’s Costa Fortuna cruise ship due to the concern passengers may be infected with the coronavirus, highlighting a risk for more than 220 cruise ships sailing around every continent including Antarctica.Oil Demand to Drop This Year for First Time Since 2009 (5 p.m HK)All of the annual growth the International Energy Agency had anticipated last month — just over 800,000 barrels a day — has been wiped out and demand is now expected to contract by 90,000 barrels a day. In a rare move, the agency included a more pessimistic scenario in which the demand loss would be many times more severe.Lufthansa Seeks Government Support Amid Coronavirus Hit (4:47 p.m. HK)Deutsche Lufthansa AG fell with other airline stocks after saying it was looking into government support amid the “immense” fallout from the coronavirus, which could burden travel demand for months. To avoid layoffs after slashing capacity by as much as 50%, the airline is examining the implementation of so-called short-time work, the company said in an emailed statement to Bloomberg on Sunday.Italian Bonds, Stocks Take a Beating on Lockdown (4:38 p.m. HK)Italian government bond yields jumped and stocks tumbled after the government announced plans to lock down the country’s industrial and financial engine room to contain the coronavirus. On Sunday, fatalities from the outbreak in Italy surged more than 50% to 366.The finance ministry said on Monday that it’s necessary to take a temporary hit from the shutdown in the productive north — home of Italy’s biggest banks and companies including carmaker Ferrari — to prevent a wider economic crisis.China Expert Sees Global Outbreak Lasting Until June (4:31 p.m. HK)Chinese epidemiologist and leading government medical adviser Zhong Nanshan expects the global coronavirus outbreak to continue until at least June, China Central Television reports, citing his comments at a recent seminar.U.K. Sees No Need to Cancel Sporting Events (4:05 p.m. HK)U.K. Culture Secretary Oliver Dowden told BBC TV that at present there’s “no reason” for people not to attend sporting events because of coronavirus, and there’s no need to cancel matches or close museums to prevent large numbers of people mingling. Prime Minister Boris Johnson will chair a meeting of the government’s emergency committee, known as Cobra, to discuss the outbreak later on Monday, he said.Iran Minister Tests positive (4:03 p.m. HK)Iran’s deputy interior minister has tested positive for coronavirus, semi-official ISNA reported. Ismail Najjar is also head of the country’s National Disaster Management Organization.Confirmed German Cases Surge Above 1,000 (4 p.m. HK)The number of confirmed cases in Germany has risen to 1,112, from 902 on Sunday, according to the Robert Koch Institute. About half the cases, or 484, are in the western state of North Rhine-Westphalia, while Saxony-Anhalt in the east remains the only one of Germany’s 16 regions without one.Reopening Workplaces, Imported Cases Test China’s Fight (3:34 p.m. HK)China’s efforts to contain the deadly coronavirus will be tested as people return to their workplaces and some infected people enter from nations that are seeing a rapid escalation in cases. “Those remain major points of vigilance,” World Heath Organization’s China Representative Gauden Galea said in an interview with Bloomberg TV. “In China, at least one peak has passed but there’s no guarantee this will remain so, and there’s no room for complacency.”Deaths from Chinese Hotel Collapse Rise to 11: Daily (3:10 p.m. HK)The death toll from the collapse of a hotel used to quarantine people affected by the coronavirus in China rose to 11, the People’s Daily reported. Another 21 people are still trapped after 50 were rescued. The hotel in the southeastern Chinese province of Fujian collapsed on March 7.Thailand Says Airlines May Face Virus Medical Bills (2:36 p.m. HK)Thailand’s aviation regulator said airlines should ask passengers coming from high-risk territories for health certificates to establish they are free of the new coronavirus.Travelers who can’t provide documentation should be prevented from boarding flights to the Asian nation, according to a Civil Aviation Authority of Thailand notice. Carriers are liable for treatment costs if they fly in people who become sick with Covid-19, the notice said. The new framework applies to six territories: China, Hong Kong, Macau, South Korea, Iran and Italy.Rejected Cruise Ship to Dock in Singapore (1:54 p.m. HK)The cruise ship Costa Fortuna, which last departed from Singapore March 3 and was rejected from Phuket in Thailand and Penang in Malaysia, will make its scheduled return call in Singapore on March 10. Thailand turned away the Costa Cruise vessel on Friday because it had passengers from Italy. Malaysia turned the same boat away on Saturday.Trump Aides Drafting Economic Measures (11:56 a.m. HK)The Trump administration is drafting measures to blunt the economic fallout from coronavirus and help slow its spread in the U.S., including a temporary expansion of paid sick leave and possible help for companies facing disruption from the outbreak, according to three people familiar with the matter.Pressure is growing on Trump to take more decisive action in response to the virus outbreak, as the number of cases in the U.S. and worldwide continues to grow.Germany Boosts Investments to Bolster Economy (11:29 a.m. HK)The government of German Chancellor Angela Merkel has taken its first steps to help companies and workers affected by the fallout from the coronavirus outbreak and will invest an additional 12.4 billion euros ($14.1 billion) between 2021 and 2024. After more than seven hours of talks on Sunday night, Merkel’s coalition loosened rules for short-term work compensation, making it easier for big companies heavily affected by the virus like Deutsche Lufthansa AG to apply for aid to offset wages when they are forced to temporarily halt work.China 2020 Car Sales Seen Falling 8% (11:20 a.m. HK)China’s car sales are set to fall 8% this year, the head of a Chinese auto-industry group said, slashing his forecast for a second time as the coronavirus keeps buyers away. The prediction is preliminary and the China Passenger Car Association will confirm its new forecast later Monday, Cui Dongshu, the group’s secretary general, said in an interview. The PCA last month predicted a 5% decline after initially forecasting 1% growth at the end of last year.South Korea Outbreak May Be Slowing: Officials (10:23 a.m. HK)The coronavirus outbreak in South Korea is showing signs of slowing as the rate of new daily infections falls and health authorities almost finished testing members of a religious sect at the center of the epidemic, the country’s health minister said. Health Minister Park Neung-hoo said late Sunday the virus spread — appeared to be “a little bit stagnant.”South Korea has borne its virus outbreak relatively well despite the scale of the spread. The country has been testing people for the virus at the fastest pace in the world, which appears to have allowed early detection of cases and kept its mortality rate lower than average. Infections have also been largely contained to the city of Daegu and surrounding areas, although the government has not imposed restrictions over people’s movements like in China and Italy.–With assistance from Angelina Rascouet, Noah Buhayar, Hailey Waller, Zaid Sabah, Joao Lima, Saleha Mohsin, Jennifer Jacobs, Arne Delfs, Patrick Donahue, Tian Ying, Yasna Haghdoost, Iain Rogers and Nikos Chrysoloras.To contact Bloomberg News staff for this story: Adveith Nair in London at [email protected] contact the editors responsible for this story: Stuart Wallace at [email protected], Adveith NairFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
