China’s top scientists said the novel coronavirus will not be eradicated, joining a growing consensusthat the pathogen will likely return in waves, as global cases passed the 3 million mark.
The pandemic took a toll on earnings, as BP Plc’s profit plunged and banks including HSBC Holdings Plc reported big provisions for loan losses.
The number of new cases in Germany fell below 1,000 for the first time in more than five weeks. The Trump administration issued a strategy to expand U.S. testing, including partnering with retail chains.
Key Developments
- Virus Tracker: Total cases 3 million; deaths pass 211,000
- White House strategy envisions tests reaching 2% of public
- Johnson urges U.K. to stick to lockdown
- European nation with fewest virus deaths proves speed is key
- Back to school brings a bleak new normal for China’s students
- Vaccine coalition sees potential to move faster
- Study finds virus lingers in air of crowded spaces
BP’s Profit Plunges, ABB Sees Revenue Hit (2:04 p.m. HK)
BP Plc’s profit fell by two thirds in the first quarter as the nascent coronavirus pandemic hammered energy prices and demand. Swiss engineering giant ABB Ltd. warned of slumping revenue in the second quarter and Capgemini became the latest company to lower its dividend and scrap its outlook for the year.
French aerospace and defense company Thales SA said it was “impossible to quantify” the financial impact of the crisis on its results, while German forklift maker Kion Group AG warned of supply chain disruptions and “huge damage” to business operations.
In Japan, Nissan Motor Co. warned that profits for the just-ended fiscal year may be more than 30% lower than forecast, as it delayed its earnings report.
In one industry cushioned from the virus, drugmaker Novartis AG maintained its sales and profit forecasts for this year as demand for its medicines holds up.
Germany’s New Cases Drop Below 1,000 (1:32 p.m. HK)
The number of new coronavirus cases in Germany fell below 1,000 for the first time in more than five weeks while the daily death toll picked up slightly, as the nation considers a further cautious easing of restrictions on public life.
Fatalities rose by 150 to 6,126 in the 24 hours through Tuesday morning, compared with Monday’s increase of 99. There were 988 new infections, the lowest since March 19, bringing the total to 158,758, the fourth highest in Europe.
Chancellor Angela Merkel is due to consult with state premiers on Thursday on the next steps in tackling the pandemic. Lower Saxony Premier Stephan Weil on Monday warned against expecting too much, saying it’s too early to know what impact the initial easing of curbs has had on infection numbers.
HSBC, Santander, UBS Deal With Loan Losses (12:29 p.m. HK)
HSBC Holdings Plc took its biggest charge for bad debt in almost nine years as the coronavirusoutbreak roiled the economies of its main markets. Banco Santander SA reported the highest provisions by a bank in continental Europe so far this quarter as it attempted to put a number on potential loan losses caused by the coronavirus outbreak. UBS Group AG, meanwhile, expressed confidence in its ability to withstand a surge in bad loans because of the coronavirus, while warning that the outbreak will put pressure on key streams of income at its wealth management business.
Some Hope for Airlines as Capacity Picks Up (12:21 p.m. HK)
Scheduled airline capacity rose for the first time in nearly 10 weeks as some countries begin to ease coronavirus lockdown restrictions, with a 2% increase in seats this week, according to OAG Aviation Worldwide.
“Whisper it quietly but we may have reached the bottom,” senior analyst John Grant wrote in a weekly blog. “Reassuringly those green shoots of recovery are in more than one market.”
U.S. Makes Rare Nod Toward Taiwan With Virus Call (12:13 p.m. HK)
The top U.S. health official spoke to his Taiwanese counterpart about fighting the coronavirus outbreak, a rare Cabinet-level contact between the two governments that’s certain to anger Beijing.
Health and Human Services Secretary Alex Azar discussed giving Taiwan a bigger role in the global fight against Covid-19 in a telephone call with health minister Chen Shih-chung Monday. The two also discussed U.S. support for Taiwan’s inclusion in the World Health Organization, according to a summary of the meeting released by Taiwan’s foreign ministry.
The 30-minute phone call signals a strong display of support for Taiwan given that successive U.S. administrations have limited high-level contacts. Relations between the U.S. and China, already strained under President Donald Trump, have worsened further as a result of the outbreak, with American officials accusing China of refusing to cooperate in fighting the virus.
California Activists Fight Stay-at-Home Order (12:09 p.m. HK)
Two California activists claim a ban on non-essential activities is infringing on their right to protest at the State Capitol Building. Ron Givens, a gun store employee in Sacramento, and Christine Bish, a Republican candidate for the U.S. House of Representatives, sued Governor Gavin Newsom and other state officials Monday seeking a judgment that the state’s stay-at-home order is unconstitutional.
Separately, an Illinois judge ruled that Governor J.B. Pritzker’s stay-at-home order violated the liberty of a state lawmaker who sued to block the measure, signaling potential legal hurdles for extended periods of social distancing.
Virus Is Here to Stay and Likely Seasonal: Scientists (11:05 a.m. HK)
China’s top scientists said the novel coronavirus will not be eradicated, joining a growing consensus around the world that the pathogen will likely return in waves like the flu.
It is unlikely for the new virus to disappear the way its close cousin the SARS virus did 17 years ago, as it infects some people without causing obvious symptoms like fever. This group of asymptomatic carriers makes it hard to fully contain transmission as they can spread the virus undetected, a group of Chinese virus and medical researchers told reporters in Beijing at a briefing on Monday.
A consensus is forming among top researchers and governments that the virus is unlikely to be eradicated, despite costly lockdowns that have brought much of the global economy to a halt.
Singapore Boosts Testing Capacity as Infections Jump (10:53 a.m. HK)
As part of Singapore’s strategy to bring down coronavirus infections in the weeks to come, the government said it has more than doubled its daily testing capacity since early April as the number of cases jumped beyond 14,000.
The city-state now has capacity to conduct more than 8,000 tests a day, up from an average of 2,900 less than a month ago, the health ministry said in a statement. To date, the Southeast Asian nation has tested about 2,100 per 100,000 persons, higher than the rates in the U.S. and the U.K.
China’s Moutai Sees Profit Gain Despite Lockdowns (10:23 a.m HK)
Kweichow Moutai Co. reported a gain in profit for the first quarter as demand for its popular baijiu liquor held up in the face of lockdowns that kept people from social gatherings during the coronavirus outbreak.
The results come amid some of the most challenging conditions Moutai has faced. Yet scarcity of the high-end baijiu helped keep demand strong. Consumers still sought out Moutai’s fiery liquor, which has become the toast of China’s elite and is highly coveted by the growing middle class.
Hong Kong Preparing to Re-Open Public Facilities (10:06 a.m. HK)
Hong Kong government employees will start returning to work May 4 and the city is preparing to reopen public facilities that have been closed during the coronavirus pandemic, leader Carrie Lam said. Authorities have yet to decide whether to extend social distancing measures beyond May 7, Lam said at a regular briefing ahead of a meeting of her advisory Executive Council, as the city continues to see success containing daily Covid-19 infections.
JetBlue to Require Customers to Cover Their Faces (9:54 a.m. HK)
JetBlue Airways Corp. will require customers to wear face coverings during travel, a first for U.S. carriers in the age of the coronavirus pandemic.
Under the new policy starting May 4, passengers will have to cover their nose and mouth throughout their trip, JetBlue said in a statement Monday. That includes when they check in, board the plane, fly and exit the aircraft. The New York-based carrier is also asking customers to follow the same rule in airport terminals.
“This is the new flying etiquette,” Chief Operating Officer Joanna Geraghty said.
Apple Retail Chief Sees Store Reopenings in May (9:52 a.m. HK)
Apple Inc.’s retail chief told staff that she expects the company to reopen “many more” of its retail stores in May after closing all locations outside of China in March due to Covid-19.
Deirdre O’Brien, vice president of retail and people, made the disclosure in a weekly video update, according to retail employees familiar with the matter. She didn’t specify which stores or regions, but said “we are continuing to analyze this health situation in every location, and I do expect we will reopen up many more stores in May.” The company declined to comment.
Amazon’s Labor Practices Being Probed by New York (9:50 a.m. HK)
Amazon Inc.’s safety measures and labor practices during the coronavirus pandemic are being investigated by New York’s top law enforcement officer after the company fired the leader of a Staten Island warehouse walkout.
New York Attorney General Letitia James told Amazon in an April 22 letter that the state is looking into whether the company violated federal employment law or ran afoul of state whistle-blower protections by dismissing the worker, Chris Smalls, her spokesperson confirmed on Monday.
China Adds 6 Cases, No Deaths (8:50 a.m. HK)
China reported six additional coronavirus cases and no deaths by the end of April 27. China has a total of 82,836 confirmed cases. The country reported 40 asymptomatic cases, according to a statement from the National Health Commission. It has 997 such cases under medical observation.
South Korea, meanwhile, reported 14 new coronavirus cases and one virus-related death. The country has a total of 10,752 cases.
New Zealand Economy Gets Back to Work (7:19 a.m. HK)
New Zealand emerged from almost five weeks of strict nationwide lockdown on Tuesday, offering a return to work for as many as half a million people and fanning hopes of a pick-up in economic activity.
Prime Minister Jacinda Ardern lowered the alert level to 3, allowing workers to return to factories and construction sites and takeaway food outlets to reopen — welcome relief for a country that has been in strict self-isolation since March 26. But many businesses will continue to operate with employees working from home, while hospitality outlets and retailers must meet tough criteria to ensure physical distancing with customers is maintained.
White House Brings in Retailers to Expand Testing (6:40 a.m. HK)
The White House issued a strategy to expand U.S. testing for the coronavirus, saying it plans to provide enough tests for all 50 states to screen at least 2% of their residents. The intention is to target the most vulnerable communities, including the elderly and minority populations that have seen higher mortality rates for the virus.
The government is partnering with Walmart Inc., CVS Health Corp., Walgreens Boots Alliance Inc. and other chain stores and diagnostics companies to put testing facilities in place nationwide, President Donald Trump said at a news conference in the White House Rose Garden Monday.
“Having pharmacies get involved in testing is a very big deal,” he said.
Australia’s Most Populous State Eases Restrictions (6:17 a.m. HK)
Australia’s New South Wales state, home of Sydney, is easing coronavirus lockdown restrictions and starting Friday will allow people to visit other households.
Premier Gladys Berejiklian told reporters that two adults at a time would be allowed to enter other homes, lifting a restriction that’s seen people largely confined to the bubble of their own household. Online learning resumes this week and the state is hopeful that face-to-face teaching will be taking place full-time by the end of this term, she said.
Florida Counties to Reopen Some Outdoor Areas (5 p.m. NY)
Florida’s three most populous counties are reopening parks, marinas and golf courses on Wednesday in a limited capacity, according to coordinated announcements by their local governments.
Miami-Dade, Broward and Palm Beach rolled out a series of rules to ensure limited contact as park-goers, golfers and boaters return. In Miami-Dade, Florida’s biggest county by population, Mayor Carlos Gimenez told reporters that he would sign an order later in the day making the move official.
California May Ease Rules in Weeks, Newsom Says (4:23 p.m. NY)
California Governor Gavin Newsom said there will likely be “meaningful” changes to the state’s stay-in-place orders in weeks, while the six major counties in the San Francisco Bay area said they will extend their restrictions through May.
Newsom, in his daily briefing, said a relaxing of orders depends on new cases continuing to flatten and ongoing social distancing. He warned residents against becoming lax in their measures, noting that several beaches were crowded this weekend and data show more people on the move. He plans to lay out some details about how California will “phase in” businesses on Tuesday.
U.S. Confirmed Cases Rise 2.3% (4 p.m. NY)
U.S. cases rose 2.3% from the day before to 979,077, the slowest pace since at least April 1, according to data compiled by Johns Hopkins University and Bloomberg News. That was lower than Sunday’s growth rate of 3.3% and below the average daily increase of 3.5% over the past week. Deaths rose 1.8% to 55,563.
Nebraska reported the sharpest surge in new cases, up 11% to 3,031, according to the Johns Hopkins and Bloomberg News data. New York’s cases rose 1.4%, according to the Johns Hopkins and Bloomberg News data.
Ohio to Begin Gradual Reopening (3:12 p.m. NY)
Ohio Governor Mike DeWine announced a gradual reopening of businesses starting Friday, while maintaining restrictions such as social distancing and wearing masks under the slogan, “no mask, no work, no service, no exception.”
Starting Friday, health-care procedures that don’t require an overnight stay in a hospital can move forward, and dentists and veterinarians can resume all activity, DeWine said at a press conference in Columbus.
On May 4, manufacturing, distribution, construction, and general offices can reopen with people still encouraged to work from home if possible, DeWine said. Consumer, retail and services firms can reopen May 12 with proper precautions, he said.
Ohio’s restriction on gatherings of no more than 10 people will remain, and restaurants, hair salons and day-care centers will stay closed for now, he said.
Florida May Reopen by Region (1:45 p.m. NY)
Florida Governor Ron DeSantis said his strategy for reopening the economy may differ by region as three of the state’s 67 counties — Miami-Dade, Broward and Palm Beach, all in the southeast — account for 60% of the state’s 32,138 confirmed Covid-19 cases.
“Pretty much the rest of the state has really handled this very well,” DeSantis told reporters Monday in Tampa. “I think that is something that you take into consideration.”
DeSantis’s stay-at-home order is set to expire Thursday, and he hasn’t provided details of how he intends to proceed. Phase one of the reopening would be “a baby step,” he said, and his approach would be “very slow, methodical and data-driven.”
WHO Warns on Southern Hemisphere (1:15 p.m. NY)
The World Health Organization is concerned about the rising number of cases in Latin America, Africa, some Asian countries, as well as eastern Europe, Director-General Tedros Adhanom Ghebreyesus said, adding that the pandemic is far from over. Everyone in the Southern Hemisphere should get the seasonal flu shot now as that season is starting there, he added.
Countries can avoid a second wave if they put the right policies into place, but they need to be vigilant if they try to ease lockdowns. “It’s pretty logical that if you lift that too quickly, the virus can jump back,” said Mike Ryan, the head of the WHO’s health emergencies program.
Countries that followed WHO advice have fared better, and the world should have paid attention when it declared a global public health emergency on Jan. 30, Tedros said. “We don’t have any power to force countries to implement what we advise,” he said. “It’s up to the countries to take our advice or reject it.”
N.Y. Cancels Presidential Primary (12:45 p.m. NY)
New York canceled its presidential primary scheduled for June 23, becoming the first state to do so during the pandemic. At least a dozen states, including New York, have postponed their primaries or moved to mail-in only voting. Democratic candidate Joe Biden has virtually sewn up the presidential nomination as the last of his rivals, Bernie Sanders, dropped out earlier this month.
The state reported 337 deaths from Covid-19, down sharply from daily peaks earlier this month, but still “tragically high,” Governor Andrew Cuomo said. Overall, the state has reported 17,303 deaths
– Bloomberg