(Bloomberg) — Iran reported a total of 15 deaths from the outbreak, the most fatalities outside China, and a top health official tested positive. Italy reported a surge in infections and Spanish police isolated 1,000 people at an island resort.
U.S. President Donald Trump said Beijing was “getting it under control more and more,” and Xi Jinping said China was confident of limiting the impact. Earlier on Tuesday, South Korea reported 84 new infections for a total tally of 977, making it the country with most cases outside of China.
China plans to release results from clinical trials of a Gilead Sciences Inc. drug in April and the country included a medication developed by a subsidiary of Sino Biopharmaceutical Ltd. in guidelines to treat the virus. Moderna Inc. shipped its first vaccine for testing in humans.
Key Developments
China death toll 2,663, up 71; total mainland cases at 77,658Italy cases rise to 283 from 229; Austria reports two infectionsUnited Air abandons profit goal, Mastercard cuts forecastU.S. stock futures trim gains, caution reigns in European markets
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China Pledges Cheap Credit, Tax Cuts to Aid Small Firms (7:50 a.m. NY)
The People’s Bank of China will offer $71.2 billion of relending and rediscounting funding to commercial lenders for loans to small companies and the agricultural sector, Central China Television reported.
Catastrophe Bonds Signal Virus Nearing Pandemic Status (7:49 a.m. NY)
The World Health Organization says the coronavirus isn’t yet a global pandemic. Bonds that insure against just such a catastrophe say that it probably is. The bonds, sold in 2017 by the World Bank to raise money for poor countries in a global pandemic, are quoted as much as 40% below their face value following coronavirus outbreaks in countries such as Iran and Italy, according to investors who own the securities.
Moderna Rallies on Quick Vaccine Turnaround (7:33 a.m. NY)
Moderna Inc., the biotechnology company developing an experimental coronavirus vaccine in collaboration with the U.S. government, said it shipped a first batch of the inoculation to begin human testing. The stock jumped as much as 25%.
The experimental vaccine was sent to the U.S. National Institute of Allergy and Infectious Diseases and is to be used in an early stage study to test its safety. It will likely take months of testing to determine whether or not the vaccine can successfully stop infections, and more time to roll it out if it does work.
Top Iranian Health Official Tests Positive (7:32 a.m. NY)
A top Iranian health official has been diagnosed with coronavirus in another sign the disease may be spiraling out of control in the country. Iraj Harirchi, a deputy health minister who has been the face of the government’s campaign against the virus, said he tested positive for it late Monday, the day he gave a press briefing on efforts to combat the outbreak.
Separately, Tehran lawmaker Mahmoud Sadeghi tweeted that he had tested positive. Sadeghi is a prominent reformist who was barred from participating in the latest parliamentary elections.
Earlier on Tuesday, Iran reported 34 new cases, with the death toll rising to 15. Bahrain reported nine new cases, while Kuwait has an additional three and Oman another two. So far, there are about 140 confirmed cases in the Middle East, all of them linked to Iran.
The U.A.E. has banned travel to all cities in Iran and has already suspended all flights to and from China, except Beijing. Kuwait, which has already stopped flights to Iran, on Monday suspended travel to South Korea, Thailand, Italy and Iraq. Separately, a Turkish Airlines flight from Tehran bound for Istanbul made an unscheduled landing in Ankara, according to Turkey’s Haberturk television.
Italy Infections Rise, Austria Reports Two Cases (7:00 a.m. NY)
Italy reported 283 cases, up from 229. The death toll was unchanged at seven.
Separately, Austria confirmed two cases, APA said. Croatia reported its first case earlier on Tuesday — a man who recently returned from Milan in Italy has mild symptoms and was hospitalized in Zagreb.
Tenerife Hotel in Lockdown (6:25 a.m. NY)
An Italian staying on the Spanish island of Tenerife tested positive for the virus and a second test to confirm the case will be carried out in Madrid, the government said. The case would be Spain’s third and the first on the island. Tenerife, the largest of the Canary Islands, attracted more than 5.7 million tourists last year.
The tourist, a doctor, had come from Lombardy, a region of northern Italy that is a focus of an outbreak of the virus, Efe news service reported. Spain’s two previously confirmed patients no longer have the infection.
About 1,000 guests and hotel workers won’t be able to leave pending definitive results of the test expected later on Tuesday, a person familiar with the situation said.
Luxury Sales Could Drop by $44 Billion (6:20 a.m. NY)
A survey showed that industry executives expect a severe fallout from the coronavirus. The impact of the outbreak is likely to reduce industry sales by as much as 40 billion euros ($43.5 billion) in 2020, according to the survey of 28 top executives undertaken by Boston Consulting Group and Sanford C. Bernstein. China is a key market for most luxury firms, and signs that the virus has been spreading more widely are causing jitters to increase.
Sino Biopharm Drug Included in China Guidelines to Treat Virus (6 a.m. NY)
A drug developed by a subsidiary of Sino Biopharmaceutical was put in Chinese government guidelines as a supportive treatment for mild and common cases of coronavirus infection. The drug, Magnesium Isoglycyrrhizinate, has the brand name Tianqingganmei.
Singapore to Ban Visitors from Daegu, Cheongdo (6:41 p.m. HK)
Singapore will ban all short-term visitors with recent travel history to Cheongdo county and Daegu city, which are central to the coronavirus outbreak in South Korea, effective Feb. 26.
Earlier, the U.S. Centers for Disease Control and Prevention warned Americans to avoid all non-essential travel to South Korea. The level 3 warning, the CDC’s highest, matches the caution it previously placed on China. The CDC previously issued lower-level alerts for Italy, Iran and Japan, telling travelers to take extra care and consider postponing non-essential travel.
Beijing ‘Getting it Under Control,’ Trump Says (6:29 p.m. HK)
President Donald Trump said U.S. markets “took a hit yesterday” because of concerns surrounding the coronavirus, but said Beijing was “getting it under control more and more.”
Trump, said he believed things would “work out fine” in the U.S. and that his administration was “spending a tremendous amount of money” to prevent the spread of the disease and assist other countries. He noted the White House had requested $2.5 billion in supplemental funds to fight the virus.
Chinese Cities Curb Travel From Other Countries (6:28 p.m. HK)
Some Chinese cities have begun to restrict arrivals from overseas, as growing outbreaks elsewhere prompt the country to enact curbs similar to those facing its own travelers. The moves signal that the epidemic’s momentum has shifted outside of China.
The coastal city of Weihai said all people arriving from Japan and South Korea would be required to undergo 14-day quarantines in designated hotels. The adjacent city of Yantai said those who’ve entered China for short-term business and tourism visits would be required to stay in selected hotels.
China customs is closely monitoring the coronavirus epidemic in other countries.
HK Leader’s Approval Rating Plunges (6:16 p.m. HK)
Carrie Lam’s approval rating has sunk to a new low of just 9.1% as her government faces criticism over its handling of the coronavirus outbreak. The government has come under fire from some groups for not doing enough to ward off a public health crisis as the number of confirmed virus cases continues to climb. The virus first emerged in central China in December, piling pressure on Lam after months of often-violent demonstrations in Hong Kong.
Singapore Eases Rules for Chinese Workers in More Sectors (6 p.m. HK)
Singapore will loosen restrictions on Chinese work-permit holders in the country to help businesses in manufacturing and services industries that have been hit by labor disruptions during the coronavirus outbreak.
For six months beginning March 2, the Ministry of Manpower will allow companies in those sectors to hire Chinese workers who are already in the country, with the agreement of their existing employers. Currently, businesses can only hire Chinese work-permit holders once they have left Singapore.
Thailand’s Tourism Income Tumbled in January (5:55 p.m. HK)
A slump in Thailand’s foreign tourism income underlines the damage being inflicted on its economy. Receipts tumbled 3.6% in January from a year earlier to $6 billion), dragged down by a 10% slide in outlays by Chinese visitors.
HK Exports Slid Most in Decade in Jan. Ahead of Virus (5:26 p.m. HK)
Hong Kong’s exports plummeted the most in more than a decade in January, as the government warned of further weakness in the coming months with the full force of disruptions from the coronavirus outbreak still ahead. Exports sank 22.7% in January from year-ago levels to HK$269.4 billion ($34.6 billion), the most since February 2009.
European Corporate Bond Market in Deep Freeze (4:50 p.m. HK)
Global borrowers shunned Europe’s corporate debt market for a second day as a cluster of new coronavirus cases in Italy sent yields sharply higher, bringing sales of new bonds to a near standstill.
ING Groep’s downsized debt offering is the only deal priced so far this week, which had been expected to deliver more than 20 billion euros ($22 billion) of sales, according to a Bloomberg News survey. Non-financial borrowers are nowhere to be seen, with Spain the only sovereign issuer braving the market so far on Tuesday.
Gilead’s Drug Leads Global Race for Treatment (3:40 p.m. H.K.)
China will release results on April 27 of a clinical trial of Gilead Sciences’s remdesivir drug that the World Health Organization said may be the only effective treatment so far for the disease. The trials of the experimental medication involved 761 patients in Wuhan, the city where the virus originated.
To contact Bloomberg News staff for this story: Adveith Nair in London at [email protected]
To contact the editors responsible for this story: Stuart Wallace at [email protected], Adveith Nair
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