Ø Total confirmed cases: More than 92,880
Ø Total deaths: At least 3,168
Ø The coronavirus COVID-19 is affecting 80 countries and territories around the world and 1 international conveyance (the Diamond Princess cruise ship harbored in Yokohama, Japan).
Fed cuts rates by half a percentage point to combat coronavirus slowdown
Following an emergency interest rate cut, central bank chair Jerome Powell said the Federal Reserve saw a “risk to the outlook for the economy and chose to act.” The Fed slashed rates by 50 basis points on Tuesday. Powell said “over the course of the last couple of weeks we’ve seen a broader spread of the virus,” which the Fed worried would have a material impact on the economy. “The magnitude and persistence of the overall effect on the U.S. economy remain highly uncertain and the situation remains a fluid one,” Powell added.
The move took the Fed’s benchmark rate to a target range between 1%-1.25% and was the first intermeeting action since December 2008, during the financial crisis.
It comes amid a volatile patch on Wall Street and amid a steady stream of hectoring from President Donald Trump, who has called for lower rates to stay competitive with policy at other global central banks.
Trump said in a tweet that the cut isn’t enough, though Treasury Secretary Steven Mnuchin said “I the Fed on this move.”
- WHO says coronavirus death rate is 3.4% globally, higher than previously thought
World health officials said Tuesday the mortality rate for COVID-19 is 3.4% globally, higher than previous estimates of about 2%.
“Globally, about 3.4% of reported COVID-19 cases have died,” WHO Director-General Tedros Adhanom Ghebreyesus said during a press briefing at the agency’s headquarters in Geneva. In comparison, seasonal flu generally kills far fewer than 1% of those infected, he said.
The World Health Organization had said last week that the mortality rate of COVID-19 can differ, ranging from 0.7% to up to 4%, depending on the quality of the health-care system where it’s treated. Early in the outbreak, scientists had concluded the death rate was around 2.3%.
- WHO warns of global shortage of medical equipment to fight coronavirus
The World Health Organization (WHO) on Tuesday warned of a global shortage and price gouging for protective equipment to fight the fast-spreading coronavirus and asked companies and governments to increase production by 40% as the death toll from the respiratory illness mounted.
- World Bank approves $12 billion in emergency financing to help poor nations
The World Bank approved $12 billion in emergency financing to help poor nations with the health costs and economic impact of the outbreak, the organization said. “We are working to provide a fast, flexible response based on developing country needs in dealing with the spread of COVID-19,” World Bank Group President David Malpass said in a statement. The money is intended to help the poorest and most at-risk nations fight the virus, which has spread to at least 74 countries across the globe, and will be used to provide emergency financing, technical assistance and policy advice. The International Monetary Fund and the World Bank said on Monday they stood ready to help member countries deal with the coronavirus outbreak, including through emergency funding.
- US coronavirus deaths climb to 9 as Washington state confirms new fatalities
Washington state health officials identified three new coronavirus fatalities, including two patients who passed away on Feb. 26 that weren’t previously linked to COVID-19, bringing the total number of deaths in the U.S. to nine. “This is a very fluid, fast-moving situation as we aggressively respond to this outbreak,” Dr. Jeff Duchin, health officer for Seattle & King County public health, said in a statement. “People with suspected or confirmed exposure to COVID-19 should reach out to their healthcare provider. As public health professionals we really appreciate clinicians on the front lines of patient care and they are critical to this response.”
- Trump donates 2019 fourth-quarter salary to combat outbreak
President Donald Trump has donated his fourth quarter 2019 salary to the Department of Health and Human Services, where it will be used to “support the efforts being undertaken to confront, contain, and combat Coronavirus,” White House press secretary Stephanie Grisham said. This is not the first time Trump has donated his salary to an agency facing an urgent problem. Since taking office, Trump has directed his $400,000 annual salary to a different agency each quarter.
· Dollar sinks after US Federal Reserve cuts interest rates to battle coronavirus
The U.S. dollar fell across the board after the U.S. Federal Reserve cut interest rates on Tuesday in an emergency move designed to shield the world’s largest economy from the impact of the coronavirus.
In a statement, the central bank said it was cutting rates by a half percentage point to a target range of 1.00% to 1.25%.
The dollar index, which measures the greenback’s strength against a basket of six other major currencies, was 0.14 % lower, after falling 0.555% to 96.991 earlier in the session. The index slipped to fresh 6-week low of 96.926 after the interest rate decision before paring losses.
The Fed’s move comes shortly after Group of Seven finance officials said on Tuesday they would use all appropriate policy tools to achieve strong, sustainable global growth and safeguard against downside risks posed by the fast-spreading coronavirus.
Global risk assets, including equities, were hammered hard last week as investors worried about the economic impact of the global spread of the virus.
The safe-haven Japanese yen and Swiss franc gained on the dollar on Tuesday, as investors remained nervous about the economic fallout of the coronavirus outbreak.
The yen, which tends to attract investors during times of geopolitical or financial stress as Japan is the world’s biggest creditor nation, was up about 1% against the dollar, while the Swiss franc, another safe haven, rose 0.7%.
The euro, lifted in recent sessions by hopes that the U.S. would be able to do more on rate cuts than the Europe, was up 0.57% against the dollar.
On Tuesday, the Australian dollar was 1.28% higher after the Reserve Bank of Australia (RBA) cut interest rates by 25 basis points, as anticipated. Markets had priced the possibility of a larger cut.
Sterling rose 0.54% against the dollar on Tuesday, even as Britain’s fractious trade talks with the EU and expectations of rate cuts to counter coronavirus damage kept the currency near recent 4-1/2-month lows.
· Oil gains nearly 1% as traders eye OPEC meeting
Oil prices moved higher on Tuesday, but quickly came off session highs reached after the U.S. Federal Reserve cut interest rates in an emergency move designed to shield the world’s largest economy from the impact of the coronavirus.
The central bank’s statement said it was cutting rates by a half percentage point to a target range of 1.00% to 1.25%. Crude futures spiked after the financial stimulus but quickly changed course as traders viewed the Fed’s move as a signal that the situation was more serious than many had thought, said Bob Yawger, director of energy futures at Mizuho in New York.
U.S. West Texas Intermediate rose 43 cents, or 0.9%, to settle at $47.18 per barrel. International benchmark Brent crude was 17 cents lower at $51.73 per barrel.
Both futures contracts rose by more than 3% earlier in the session.
Brent and WTI have rebounded over the past two days after sliding more than 20% from their January peak on signs the spread of the coronavirus had dented fuel demand.
Reference: CNBC, Reuters
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