Spain Deaths Slow; European Lockdowns to Continue: Virus Update

Italian Cabinet Meets (4:45 p.m. HK)

Italian Prime Minister Giuseppe Conte was set to hold a cabinet meeting at 11 a.m. in Rome. La Stampa reported earlier that the government plans to extend its lockdown by two weeks as scientists warn Conte that it’s too early to relax confinement measures,. The government will approve a decree on Friday to extend the closures beyond the current April 13 expiration date, the newspaper said.

Conte told BBC the country may start easing the lockdown by the end of the month. If scientists confirm that Italy can start a gradual return to activity, “we might begin to relax some measures by the end of this month,” he said. Italian steelmakers are in talks with the government to restart at reduced capacity in the coming weeks.

CanSino Plans Phase II Trial for Vaccine (4:43 p.m. HK)

CanSino Biologics and the Academy of Military Medical Sciences plan to start phase II clinical trial for coronavirus vaccine in China soon, the company said in a Hong Kong stock exchange filing.

U.K. Relaxes Daily Exercise Rules for Some Cases (4:56 p.m. HK)

U.K. authorities relaxed rules on daily exercise and travel during the coronavirus pandemic for those with specific conditions such as autism. For people with a health condition that requires them to exercise outside two to three times a day to maintain their health, they can now do so, according to the new guidance. This could include travel “beyond your local area.”

The U.K, which has had more than 7,000 deaths from the virus so far, is likely to keep restrictions in place for weeks longer. Foreign Secretary Dominic Raab will address the issue on Thursday, the Guardian reported. Raab is expected to prepare the public for an extension of the restrictions put in place so far.

Luxembourg to Start Mass Testing (4:30 p.m. HK)

Luxembourg will become the first EU country to start mass testing its citizens, regardless of whether they show coronavirus symptoms or not. The move is important, as mass testing to isolate carriers and prevent new surges is a condition for the lifting of restrictions on movement, according to a draft “exit strategy” memo by the European Commission, seen by Bloomberg.

The tiny Grand Duchy, which has one of the highest infection rates in the world in its population of just over 600,000, will this week start a new series of tests to evaluate “the dynamics of the spread” among citizens. The project will consist of 1,500 tests first on a sample of people over the age of 18 and follow-up tests will then be done only on those that are asymptomatic and show mild symptoms, the nation’s health ministry said. The tests could provide the first comprehensive data on herd immunity.

Asymptomatic people, or silent carriers, remain largely unassessed but “play a significant role in the spread of the virus” and that’s why “it is crucial to systematically test a representative sample of the population in order to identify all individuals carrying the SARS-CoV-2 virus, regardless of their symptoms,” the statement said.

EU Agency Recommends Use of Face Masks (4:15 p.m. HK)

The European Centre for Disease Prevention and Control now recommends the widespread use of face masks to reduce the spread of the infection. While face protection is seen only complementary to other measures, such as social distancing and personal hygiene, “the use of face masks in the community could be considered, especially when visiting busy, closed spaces, such as grocery stores, shopping centers, or when using public transport,” according to the EU agency.

The debate over whether face masks can help contain the spread of Covid-19 is shifting quickly, with more countries requiring citizens to cover their faces in public.

Dubai Freezes Hiring, New Projects (4 p.m. HK)

Dubai’s government is freezing all hiring and cutting administrative spending by at least 20% across departments as the coronavirus pandemic squeezes state revenue. The emirate’s Department of Finance also ordered a 50% reduction in capital spending and a delay to new government construction projects until further notice, according to a letter seen by Bloomberg.

China Says Accusations It Covered Up Virus are Groundless (3:52 p.m. HK)

Chinese foreign ministry spokesman Zhao Lijian told reporters at a daily briefing in Beijing that the World Health Organization had upheld the nation’s objective and science-based position.

Russia Cases Jump Again (3:50 p.m. HK)

Russia reported 1,459 new cases, up 17%, taking its total to 10,131. This is the country’s biggest daily jump yet, and Russia has now reported more than 1,000 cases for three straight days. Total deaths rose by 13 to 76.

Tokyo Finds at Least 180 New Cases (3:46 p.m. HK)

Tokyo found at least 180 new cases of coronavirus, the highest number yet in a single day, FNN reported in a flash headline, without attribution. NTV later reported the number at 181.

Sweden Hits Back at Trump’s ‘Herd Immunity’ Criticism (3:44 p.m. HK)

“He has used a factual error,” Swedish Foreign Minister Ann Linde said in an interview with TV4. Her comments follow Trump’s remarks a day earlier when he told reporters that Sweden is trying to achieve “herd immunity” and “is suffering greatly” from not doing enough.

The Nordic country is under intense scrutiny as it continues to experiment with a laxer policy response to the virus despite an accelerating death toll. Restaurants, shopping centers and primary schools all remain open in Scandinavia’s biggest economy.

Goldman Sees Virus Causing $75 Billion Funding Hole in Africa (3:28 p.m. HK)

“Possibly the most severe impact of the crisis will be on already stretched fiscal balances,” Dylan Smith and Andrew Matheny, Goldman’s economists in London, said in a note. “Budget deficits would likely rise from an average of around 3.5% to high single digits, even before any loosening to soften the economic effects of the corona-crisis.”

Earlier, the World Bank said Sub-Saharan Africa will post its first recession in 25 years as the coronavirus pandemic brings economies to a halt and disrupts global trade.

U.K. Economy Shrinks (2:57 p.m. HK)

The U.K. economy unexpectedly contracted in February, putting it on an unsteady footing even before the nation imposed more stringent restrictions to contain the coronavirus. GDP fell 0.1% from January, with the downturn driven by a huge drop in construction, the Office for National Statistics said Thursday.

The government signaled plans to borrow directly from the Bank of England, easing the pressure to immediately sell bonds for the billions it needs to support the economy through the coronavirus pandemic. The Treasury said Thursday that it’s increasing the long-standing “Ways and Means facility,” a short-term overdraft that it can use if needed to smooth its cash flow and support the functioning of markets.

UBS, Credit Suisse Delay Dividends (2:00 p.m. HK)

Switzerland’s two biggest banks proposed pushing back dividend payments as the spreading coronavirus roils markets and upends businesses.

Credit Suisse Group AG said on Thursday its board proposes to pay half of its 2019 dividend and intends to distribute the rest in the fall of this year. UBS Group AG, meanwhile, has proposed shareholders approve the bank’s previously announced dividend of $0.73 for the 2019 financial year be paid in two installments, according to an emailed statement.

Investors in British-listed companies could lose as much as half of their dividend income this year, according to a report from Link Group. More than a fifth of companies on the European benchmark Stoxx 600 Index have canceled or postponed dividends in recent weeks, according to data compiled by Bloomberg.

German Cases Jump (1:59 p.m. HK)

Infections rose by 5,633 on Thursday, compared with an increase of 4,288 a day earlier, according to data from Johns Hopkins University. Germany registered 333 new deaths from the virus, the highest daily toll so far and up from 206 the previous day. That brought the total number of fatalities to 2,349, while 46,300 people have recovered from the virus, up from 36,081 on Wednesday.

Air France-KLM Sets Limited Flights Through May (1:38 p.m. HK)

Air France-KLM expects more than 90% of its capacity to remain suspended through the end of May as the coronavirus pandemic paralyzes the travel industry worldwide. For the next two months, the airline aims to continue serving only some key city pairs with a “skeleton operation,” according to a statement. Beyond that time frame, the company said, projections are too difficult to provide.

Trump, Modi Exchange Tweets on Drug Exports (1:22 p.m. HK)

U.S. President Donald Trump and India’s Prime Minister Narendra Modi exchanged tweets on New Delhi’s decision this week to partially lift its ban on the export of a malaria drug Trump believes can help fight Covid-19. Some experts have cast doubt on the efficacy of hydroxychloroquine to treat the coronavirus.

“Extraordinary times require even closer cooperation between friends,” Trump tweeted. “Thank you India and the Indian people for the decision on HCQ.”

Modi replied, “Times like these bring friends closer. The India-US partnership is stronger than ever.”

Coronavirus May ‘Reactivate’ (12:25 p.m. HK)

Coronavirus may be “reactivating” in people who have been cured of the illness, according to Korea’s Centers for Disease Control and Prevention.

About 51 patients classed as having been cured in South Korea have tested positive again, the CDC said. Rather than being infected again, the virus may have been reactivated in these people, given they tested positive again shortly after being released from quarantine, said Jeong Eun-kyeong, director-general of the Korean CDC.

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