· Latest on the spread of the coronavirus around the world:
- Total confirmed cases: More than 468,644
- Total deaths: At least 21,191
- The coronavirus COVID-19 is affecting 198 countries and territories around the world and 1 international conveyance (the Diamond Princess cruise ship harbored in Yokohama, Japan).
- US cases: At least 53,655 (+10,941), and deaths: 935 (+155)
- Italy cases: At least 74,386 (+5,210), and deaths: 7,503 (+683)
- Thailand cases: At least 934 (+107), and deaths: 4 (+3)
- Spain's coronavirus death toll overtakes China's
Spain struggled to cope on Wednesday with a mounting coronavirus crisis as its death toll exceeded China’s with another 738 lives lost in a single day, and a third senior government minister was diagnosed with the virus.
With 3,434 fatalities, Spain now has the second-highest number of deaths globally after Italy’s 6,820. Nursing homes across the country have been overwhelmed and a skating rink in Madrid has been turned into a makeshift morgue.
- Summer is unlikely to stop the spread of the virus, and every country in Europe is forecast to run out of intensive care beds by mid-April unless it acts fast.
- Prince Charles, the 71-year-old heir to the British throne, has tested positive and is self-isolating in Scotland with mild symptoms.
- Thailand recorded 107 new cases on Wednesday, bringing its total to 934, while South Korea’s tally rose to 9,137 with 100 new infections.
- New York, experiencing more coronavirus deaths and infections than any other U.S. state, is showing tentative signs of slowing the spread of the virus.
- New Orleans is on track to become the next coronavirus epicenter in the United States.
- Trump risks blowback from war of words with China over coronavirus
U.S. President Donald Trump and some top aides have repeatedly excoriated China over its handling of the coronavirus pandemic, a stance that even some in his administration worry could bring a dangerous backlash from Beijing.
While Trump himself softened his tone after a week of blaming what he called the “Chinese virus” for the human and economic toll of the disease, Secretary of State Mike Pompeo on Wednesday had harsh words for the Chinese, accusing them of an “intentional disinformation campaign.”
Increasing strains in U.S.-China relations have raised concerns at a time when experts say an unprecedented level of cooperation is needed to face the crisis and deal with its fallout.
- Pompeo says China still withholding coronavirus information
U.S. Secretary of State Mike Pompeo sharpened on Thursday his criticism of China’s handling of a coronavirus pandemic, saying its ruling Communist Party was still denying the world information needed to prevent further cases.
The remarks, in an interview with the Washington Watch radio program, provoked a riposte from China that Pompeo should cease “politicizing” the epidemic and defaming the country.
Pompeo also accused Iran and Russia of waging disinformation campaigns about the virus.
In Beijing, foreign ministry spokesman Geng Shuang said China had been transparent and shared information with the World Health Organization and other countries, including the United States.
- Exclusive: U.S. slashed CDC staff inside China prior to coronavirus outbreak
The Trump administration cut staff by more than two-thirds at a key U.S. public health agency operating inside China, as part of a larger rollback of U.S.-funded health and science experts on the ground there leading up to the coronavirus outbreak, Reuters has learned.
Most of the reductions were made at the Beijing office of the U.S. Centers for Disease Control and Prevention (CDC) and occurred over the past two years, according to public CDC documents viewed by Reuters and interviews with four people familiar with the drawdown
- US companies are still betting on Chinese consumers, despite coronavirus impact
American companies in China are still betting on the local consumer, even if business disruptions from the coronavirus are dragging down revenues.
A survey of 119 companies from March 13 to 18 by the Beijing-based American Chamber of Commerce in China found that the proportion of respondents saying they are experiencing significant revenue declines increased to 50%, up from 28% last month.
The consumer industry was among the most pessimistic about the disease’s impact on market growth this year, with 38% of businesses in the sector expecting a decrease of at least 50%,
But the consumer sector had the highest proportion of businesses saying they would maintain previously planned investments — at 46% — and 8% saying they would increase planned investments, the survey found.
- U.S. auto sales in states with coronavirus lockdown orders to drop 80%: analysts
Vehicle sales in U.S. states that implemented lockdown orders to curb the spread of the coronavirus will drop 80% or more, analysts said on Wednesday.
Auto retail sales through the week of March 22 declined 22% nationwide on a yearly basis and as much as 40% in some cities on the U.S. West Coast, according to an analysis by research firm J.D. Power, based on data from dealership stores around the country.
- Germany, whose economy could contract by as much as 20% this year, is open to using the European Stability Mechanism to prop up economies under certain circumstances.
German lawmakers on Wednesday voted to suspend the debt brake for the first time ever to finance an aid package meant to help shield Europe’s largest economy.
- Venezuela has opened talks with China over possible financial support to cope with a sharp drop in oil prices and the arrival of coronavirus, sources familiar with the negotiations said.
- India is likely to agree an economic stimulus package of more than $19.6 billion, two sources familiar with the matter told Reuters.
- Pakistan is seeking another $1.4 billion loan from the IMF.
· Senate expects late vote on $2 trillion coronavirus stimulus package
Republican and Democratic leaders of the U.S. Senate hoped to vote on Wednesday on a $2 trillion emergency package to alleviate the devastating economic impact of the coronavirus pandemic, but found themselves fending off critics from the right and left who threatened to hold up the bill.
Top aides to Republican President Donald Trump and senior senators from both parties said they had agreed on the unprecedented stimulus bill in the early hours of Wednesday morning after five days of talks.
The massive bill includes a $500 billion fund to help hard-hit industries and a comparable amount for direct payments of up to $3,000 apiece to millions of U.S. families. It is intended to flood the economy with cash in a bid to stem the impact of a pandemic that has killed more than 900 people in the United States and infected at least 60,000.
· Delaying the Olympics may hurt Japan. But risks from the coronavirus could be far greater
Despite the unprecedented decision to delay the 2020 Olympic and Paralympic Games in Tokyo, the negative impact on Japan’s economy pales in comparison to the blow from the coronavirus outbreak, economists and market strategists say.
The International Olympic Committee (IOC) on Tuesday caved in to growing calls to postpone the games, and announced they will be held next year due to rising fears about the COVID-19 pandemic.
“Postponing the Olympics at this point has a relatively marginal negative impact, which is actually coming from COVID-19,” Takuji Okubo, North Asia Director at the Economist Corporate Network told CNBC’s Squawk Box Asia on Wednesday. He said the positive impact generally comes from building infrastructure and stadiums and “Japan has already done that.”
Japan is officially pumping $12.6 billion to organize the Olympics, but a national audit board says spending could hit twice that amount, according to NBC News.
· Singapore’s economy contracts by 2.2% in the first quarter compared to a year ago
Singapore’s economy contracted by 2.2% in the first quarter from a year ago as countries around the world battle the coronavirus outbreak, official estimates by its Ministry of Trade and Industry showed on Thursday.
On quarterly basis, the Singapore economy shrunk by 10.6% compared to the previous three months, the official figures showed.
The Ministry of Trade and Industry also downgraded its economic forecast for 2020. It now expects the Singapore economy to register a change in annual gross domestic product to between -4.0% and -1.0% from its earlier estimates of between -0.5% and 1.5%.
The Southeast Asian country is one of the earliest to release data on gross domestic product in the first quarter, providing a glimpse on how the ongoing coronavirus outbreak could affect economies around the world.
· Dollar drops as US stimulus bill boosts risk-taking
The dollar weakened against a basket of currencies on Wednesday as a $2 trillion stimulus bill helped boost risk appetite, and reduced demand for the safe haven currency.
Stocks surged for a second day as U.S. senators were due to vote on a bipartisan package of legislation to alleviate the devastating economic impact of the coronavirus pandemic, hoping it will become law quickly.
Investors are also likely reducing dollar exposure ahead of Thursday’s jobless claims data, which is expected to show a surge in Americans filing for benefits as businesses close across the country in an attempt to curb the spread of the virus.
Jobless claims on Thursday are expected to rise to around a million, from 281,000 the previous week, according to the median estimate from a Reuters poll of economists.
The dollar index fell 0.81% to 101.87. Sterling jumped 1.33% to $1.1913. The euro gained 0.91% versus the greenback to $1.0885.
· Oil jumps 2%, extending gains as optimism over US stimulus lifts markets
Oil prices extended gains for a third session on Wednesday, rising alongside broader financial markets as the United States is expected to approve a massive aid package to stem the economic impact of the coronavirus pandemic.
Demand for oil products, especially jet fuel, is falling worldwide as more governments announce nationwide lockdowns to stop the spread of coronavirus. Fuel demand is expected to fall sharply worldwide in the second quarter with aviation largely at a halt and road travel severely curtailed.
U.S. weekly gasoline product supplied - a proxy for demand - dropped 859,000 barrels per day (bpd) to 8.8 million bpd last week, the biggest decline since September 2019, according to the U.S. Energy Information Administration. Overall fuel demand fell by nearly 2.1 million bpd.
Brent crude gained 29 cents, or 1%, to trade at $27.44 per barrel. U.S. crude futures gained 48 cents, or 2%, to settle at $24.49 per barrel.
Both contracts had posted strong gains of more than $1 a barrel earlier in the session.
Crude inventories rose by 1.6 million barrels in the most recent week. Inventories, which have risen for nine straight weeks, are expected to keep growing as fuel demand declines and refineries pare back activity.
Reference: Worldometers, Reuters, CNBC
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