(Bloomberg) —
Germany reported a drop in new coronavirus cases for the fifth consecutive day and the government might soon decide to lift some restrictions. Austria, one of the first countries in Europe to clamp down on public life, is easing some curbs.
India and France extended their lockdowns and the British government is weighing similar steps. U.S. governors formed coalitions for the reopening of their economies, even as President Donald Trump insisted he alone has that authority.
Europe is seen heading for a double-digit slump amid the lockdowns and the French economy will contract 8% this year, its finance minister said. However, China’s exports and imports declined less than expected in March, in a sign that global supply chains may be adapting.
Key Developments
Virus Tracker: Cases surpass 1.92 million; deaths top 119,000Trump defends his coronavirus record with anger and a videoChina trade fell less than expected as supply chains may be adaptingEurope economy to slump more than 10% amid virus lockdownsDoctors come under attack in India as coronavirus stigma grows
Indonesia Surprises by Keeping Rate Unchanged (4:08 p.m. HK)
Bank Indonesia held rates on Tuesday after two consecutive cuts this year, leaving its seven-day reverse repurchase rate unchanged at 4.5%. That was in line with the forecasts of nine of 28 economists in a Bloomberg survey; 18 had predicted a 25 basis-point cut, and one saw a 50-point reduction.
Russia New Cases Rise by 15% (3:57 p.m. HK)
Confirmed coronavirus infection cases rose by 2,774, the third straight day that number has risen, according to data from Russian consumer health watchdog Rospotrebnadzor. Total cases have almost doubled in past five days and the number of new infections has been above 2,000 a day since Sunday. The death toll hit 170 with 22 people dying overnight, a 15% increase.
Austria Eases Some Restrictions (3:43 p.m. HK)
Austrians lined up outside hardware and gardening stores that were reopening on Tuesday as the country became one of the first in Europe easing lockdown measures. The soft and partial restart in Austria, that had also been one of the first to clamp down on public life will be eyed by others in Europe as a rehearsal for how to lift the measures without provoking an increase in new infections. Chancellor Sebastian Kurz has said he won’t hesitate to go back if the numbers were to go out of control again.
Poland will this week announce a plan to lift some restrictions, starting with easing access to shops and forests imposed due to the coronavirus outbreak, the government said.
GAM, AB InBev: European Companies Roundup (3:20 p.m. HK)
GAM Holding AG said it will accelerate cost cutting after assets in its funds plunged by $13.2 billion in the first quarter, an early sign of how European asset managers have been hit by the virus. Brewing giant Anheuser Busch-InBev cut its final dividend by 50%, citing uncertainty and volatility caused by the virus pandemic. Wizz Air says it is making 1,000 positions redundant, representing a 19% workforce reduction.
Earlier, Airbus CEO Guillaume Faury said the plane maker’s customers have not canceled orders yet, but conceded this will likely happen soon. Renault is scaling back its already limited presence in China and Air France-KLM is seeking state support of around 10 billion euros ($10.9 billion). Read more here.
Astra to Test Cancer Medicine for Covid-19 Reaction (3 p.m. HK)
AstraZeneca Plc will start testing one of its new cancer medicines, Calquence, to see whether it can quell the excessive immune response Covid-19 triggers in some patients. The treatment for lymphoma may lessen the severity of respiratory distress by reducing the inflammation caused by the new coronavirus, the drugmaker said in a statement Tuesday.
Separately, Swedish Orphan Biovitrum jumped 13% after providing a first-quarter update that cited strong demand for rheumatoid arthritis drug Kineret due to the pandemic. The company said last month it would begin studying Kineret and its antibody emapalumab for the treatment of hyper-inflammatory syndrome, a serious complication experienced by some Covid-19 patients.
Europe Economy Seen Slumping More Than 10% (2:54 p.m. HK)
Europe is heading for double-digit slump in the first half of 2020 amid widespread lockdowns.
Bloomberg’s monthly survey of economists puts the contraction in the euro area at more than 10% in the January-June period, with most of the hit — 8.3% — in the second quarter. Even with an expected rebound later in the year, the bloc’s output will still decline more than 5% in 2020.
The French economy will contract 8% in 2020 after the government extended confinement measures to May 11, French Finance Minister Bruno Le Maire said.
Germany’s New Cases Fall for the Fifth Day in a Row (1:57 p.m. HK)
Germany saw its new coronavirus cases fall for the fifth consecutive day as the country considers whether to extend a nationwide lockdown beyond this week.
The daily increase in infections of 2,218 was the lowest this month and brought the total to 130,072, according to Johns Hopkins University. Fatalities rose by 172 to 3,194.
Germany might soon decide to lift some restrictions, Economy Minister Peter Altmaier said on public broadcaster ARD. “We have seen some successes the past few days,” he said. Schools and small shops could be reopened “step by step” without endangering the public health, he said.
Chancellor Angela Merkel and Germany’s 16 state leaders will discuss on Wednesday about a possible easing of the country’s lockdown.
Modi Extends India’s Lockdown Until May 3 (1:10 p.m. HK)
Prime Minister Narendra Modi announced an extension of India’s three-week nationwide closure to May 3. India has reduced the impact of the coronavirus epidemic with its lockdown strategy, Modi said in an address to the nation.
The country “did not wait for a crisis to happen,” Modi said in his fourth address to the nation since infections began ticking up sharply in mid-March. “From the economic point of view the cost has been great. But compared to the lives of Indians there can be no comparison.”
India has so far reported 10,453 infections and 358 deaths, according to data from Johns Hopkins University.
Abe Sees Support Rate Slip as Virus Cases Rise (1:02 p.m. HK)
More Japanese voters disapprove than approve of Prime Minister Shinzo Abe’s administration for the first time in nearly two years, a survey showed, as criticism mounts over his handling of the virus outbreak.
A poll released in the Yomiuri newspaper showed his government’s disapproval rating at 47%. The number topped his approval rating at 42% for the first time since May 2018, when his government was mired in a scandal related to a real estate deal.
Abe’s government has been faulted for being too slow to declare an emergency over the virus and for not providing enough support for residents and businesses struggling to make their way through the crisis.
U.K. Likely to Announce Lockdown Extension: Raab (12:42 p.m HK)
British ministers will decide in the next three days on extending the country’s lockdown, with Foreign Secretary Dominic Raab telling reporters it was likely to carry on and the government’s chief scientific adviser saying he expects the daily rate of deaths to continue to rise.
Under the law passed last month to tackle the spread of coronavirus throughout the country, the government must decide by Thursday whether to renew the three-week lockdown period.
China’s Trade Fell Less Than Expected in March (12:15 p.m. HK)
China’s trade performed better than expected in March, with both exports and imports declining less than expected even as the coronavirus prompted business shutdowns around the world.
The data indicate that global supply chains may be adapting better than thought, and that China’s gradual economic restart is proceeding. At the same time, the full effect of a collapse in demand in developed economies like the U.S. and Europe may not be yet apparent in China’s trade data.
China Vows to Ease Health Measures for Africans (11:58 a.m. HK)
China pledged to ease health measures on Africans in the southern city of Guangzhou, after reports of discrimination.
The government has treated foreigners equally and attaches great importance to their life and health, Ministry of Foreign Affairs spokesman Zhao Lijian said in a statement posted late Sunday. “We reject differential treatment, and we have zero tolerance for discrimination,” Zhao said.
African leaders alleged discrimination against their citizens by city authorities in measures to stem the spread of imported coronavirus cases, saying Africans were mistreated, evicted from hotels, and forcefully tested for the virus.
IPhone China Shipments Rebound (11:51 a.m. HK)
Apple Inc.’s iPhone shipments in China rebounded in March as the world’s second-largest economy worked to reboot its manufacturing industry following the disruption caused by the coronavirus outbreak.
Shipments of Apple’s marquee device jumped 19% in March from a year earlier to 2.5 million units, according to Bloomberg calculations based on monthly data from the China Academy of Information and Communications Technology, a government think tank. February saw iPhone shipments plunge more than 60% as factories remained shut past the Lunar New Year holiday break.
Lobbyists, Consultants Sue U.S. for Covid Cash (10:44 a.m. HK)
A group representing political consultants, pollsters and lobbyists sued the U.S. government for a slice of the $2.2 trillion Covid-19 bailout pie. The American Association of Political Consultants says it’s unconstitutional for its members to be excluded from the small business loans provided by the CARE Act, which Congress passed last month in response to the coronavirus pandemic.
The group says its members should be granted access to $349 billion in “forgivable loans” provided under the Paycheck Protection Program. The program excludes various businesses including non-profits, strip clubs and those “primarily engaged in political or lobbying activities.”
Australia Business Confidence Drops to Lowest Ever (9:44 a.m. HK)
Australian business confidence plummeted in March to the lowest level in the history of the survey as shutdowns designed to stem the spread of coronavirus sent the economy into a tailspin.
A gauge of sentiment slid to -66 from -2 in February, the biggest drop on record, National Australia Bank Ltd. said. The conditions index — which measures hiring, sales and profits — slumped to -21 from 0
China Reports 89 Cases, No Deaths (8:38 a.m. HK)
China reported 89 additional confirmed coronavirus cases on April 13, with 86 of them from abroad, according to a statement from the country’s National Health Commission. No new deaths were reported.
The country reported 54 asymptomatic cases. It has 1,005 asymptomatic coronavirus cases under medical observation. China has a total of 82,249 confirmed coronavirus cases.
Trump Defends His Coronavirus Record With Anger (8:35 a.m. HK)
U.S. President Donald Trump declared “everything we did was right” and angrily denounced media reports suggesting his administration had failed to adequately ramp up coronavirus testing or the production of medical supplies in a testy press conference Monday at the White House.
Trump, who said he was frustrated by the reports questioning his administration’s response to the crisis that has left more than 20,000 Americans dead and millions unemployed, played a campaign-style video defending his record and highlighting instances where media and medical analysts downplayed the threat posed by the coronavirus.
Mnuchin Says 80 Million to Get Virus Aid by Wednesday (7:22 a.m. HK)
Treasury Secretary Steven Mnuchin said 80 million taxpayers should receive coronavirus relief payments by Wednesday and that the government is accelerating assistance to businesses as well.
The Treasury secretary announced the payments at a White House news conference, along with progress the Small Business Administration has made in processing loans from the $349 billion Paycheck Protection Program. Both relief programs were created in the $2.2 trillion stimulus President Donald Trump signed last month.
Trump Hopes to Reopen Country ‘Ahead of Schedule’ (7:20 a.m. HK)
U.S. President Donald Trump said his administration will issue guidance within days for governors who want to begin relaxing social-distancing practices to curb the coronavirus outbreak, and said he hopes to reopen the country “ahead of schedule.”
Australia Many Weeks Away From Relaxing Rules (6:17 a.m. HK)
Australia is looking to parts of industry that can be restarted without creating greater health risks as the National Cabinet prepares to meet Thursday to discuss restrictions.
“It’s a real trade-off, getting the best value of the restrictions that you can lift and at same time not put the health situation at greater risk,” Prime Minister Scott Morrison told Channel Seven’s Sunrise program, pointing to agribusiness and manufacturing as examples. He said he hoped to move to less-restrictive measures, but said the nation was still many weeks away.
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