Singapore cases rise again; Europe’s economy reels: Virus update

Singapore cases rise again; Europe’s economy reels: Virus update

The cruise ship Ruby Princess departs from Port Kembla, some 80 kilometres south of Sydney, on Thursday after a few hundred virus-free crew members disembarked to begin the process of repatriation to their home countries. (AFP)
The cruise ship Ruby Princess departs from Port Kembla, some 80 kilometres south of Sydney, on Thursday after a few hundred virus-free crew members disembarked to begin the process of repatriation to their home countries. (AFP)

Singapore reported more than 1,000 new coronavirus cases again, while China reported no deaths for an eighth straight day. US President Donald Trump said he disagreed with the Georgia governor’s decision to begin relaxing social-distancing measures this week, a marked shift in tone.

Nationwide lockdowns pushed Europe’s economy into a record slump, while companies continued to reel as Unilever withdrew guidance and Credit Suisse Group took a $1 billion hit. Earlier, the WHO said 83 vaccines are in development globally, with six of them in human trials stage.

Germany agreed on a $10.8 billion package of further measures and Chancellor Angela Merkel called for a Europe-wide stimulus program to be financed by the European Union’s budget. US lawmakers plan to convene on Thursday to give final passage to a $484 billion interim rescue plan.

Updates (latest first):

Trump’s crisis handling has spiked number of undecideds 

President Donald Trump’s handling of the coronavirus pandemic and the economic collapse has shaken voters’ confidence in him, with the percentage of undecided voters more than doubling in the last two weeks. Former Vice President Joe Biden, the presumptive Democratic nominee, is also seeing voters take a second look at their support. With his campaign limited to a few livestream events a week, he hasn’t been able to capitalise on Trump’s newfound weakness.

Three weeks ago, only 5% of voters overall were undecided in the 2020 race. That number has jumped to 12%, and 16% in one Fox News poll, as voters appear to find both candidates wanting during a national emergency.

Lockdown pushes economy into record slump 

Europe’s economy suffered a massive blow in April when government restrictions to contain the coronavirus left companies fighting to stay afloat. An estimate of private-sector activity in the euro area plunged to just 13.5 from 29.7 in March, IHS Markit said Thursday. The drop was far sharper than economists had anticipated and marks a record low for the Purchasing Managers’ Index.

Figures for Germany and France, the euro region’s two biggest economies, also pointed to unprecedented slumps at the start of the second quarter.

Merkel urges Germany to support EU stimulus

German Chancellor Angela Merkel called for a Europe-wide economic stimulus program to be financed by the European Union’s budget, making a national appeal that helping its partners would be good for Germany.

“A European growth program could support an upswing over the next two years and we’ll work for that,” Merkel said in a speech to the lower house of parliament in Berlin on Thursday. “We want to act quickly in Europe, and we, of course, need instruments to be able to quickly deal with the effects of the crisis in all member states.”

Italy sees 2020 deficit soaring 

Italy’s government expects its budget deficit to spiral to 10.4% of gross domestic product this year as the economy, paralyzed by a nationwide lockdown, is seen shrinking by 8%. The government is set to request parliamentary approval for broadening the budget deficit by 55 billion euros ($59.4 billion) to fund a new stimulus package, according to officials, who asked not to be identified discussing a draft economic and financial plan. The plan is still being worked on and details could change, they said. The cabinet may meet to approve the program Thursday.

Cruise ship that triggered surge leaves Australia 

A coronavirus-stricken cruise ship that’s been the source of hundreds of cases and at least 20 deaths in Australia, leading to a criminal investigation, has began its departure from the country. The Princess Cruises-operated Ruby Princess left Port Kembla in New South Wales state on Thursday and is expected to sail to the Philippines where it will offload its crew, weeks after its passengers were allowed to disembark in Sydney before test results were known.

Russia cases drop again 

Russia reported fewer new coronavirus cases for a second straight day. New infections rose by 4,774 over the past day, down from 5,236, taking the total to 62,773. The death toll rose by 42 to 555.

The number of new cases has remained above 4,000 for seven days, but the daily increase in total cases has slowed down to 8.2% from over 14% a week ago.

Singapore has 1,000 new cases for fourth day 

Singapore confirmed an additional 1,037 cases of coronavirus cases with the majority coming from foreign worker dormitories. This compares with 1,016 cases the day before. Initially seen as a global model for how to contain the pandemic, Singapore now has the most reported infections in Southeast Asia as cases among foreign laborers living in densely packed dormitories surged.

The city-state is “very likely” to see a sharper fall in GDP, trade and industry minister Chan Chun Sing said Thursday in an interview. “We are really concerned that worldwide, this is going to lead to a more serious problem than many had anticipated just a month ago.”

UK is set to sell most debt on record 

The UK will raise in four months of debt sales almost as much as it did during the height of the global financial crisis, as the government steps up borrowing to combat the economic chaos wrought by the coronavirus.

It will sell 180 billion pounds ($222 billion) from May to July. Together with the 45 billion pounds it plans on raising in April, offerings this year will likely dwarf the 228 billion pound record in 2009-10. Last month it estimated a total of 156.1 billion pounds of sales for the fiscal year.

SNB posts record $39 billion loss 

The Swiss National Bank reported a record first-quarter loss of 38.2 billion francs ($39.3 billion) after its stock portfolio was hit by the market rout caused by the coronavirus pandemic.

The SNB, with the legal status of a corporation, said on Thursday that poor equity markets in the first three months of the year caused a 31.9 billion franc hit to its portfolio. The franc’s appreciation against other currencies also contributed to losses. A valuation gain on its gold holdings and on fixed income securities, as well as interest and dividend income helped offset some of those losses.

German coalition agrees on package

Germany’s ruling coalition agreed on a 10 billion-euro ($10.8 billion) package of further measures to dampen the economic impact of the coronavirus crisis, as party leaders settled differences over how to tackle the next stage of the pandemic.

Chancellor Angela Merkel and coalition leaders sealed an accord to temporarily reduce value-added tax for restaurants and increase the amount of money paid as state wage support as part of a seven-point plan to fine-tune the government’s crisis response. The agreement came after almost eight hours of wrangling in the chancellery in Berlin.

Unilever withdraws guidance 

Unilever withdrew financial guidance for the year because of coronavirus-related disruptions to the food and household-products giant’s global business. Like other consumer-goods companies, Unilever is benefiting from strong sales of cleaning products -- it owns the Cif and Domestos brands.

Credit Suisse takes hit

Credit Suisse Group AG is taking more than $1 billion in writedowns and provisions for bad loans after the coronavirus, joining US banks in taking an upfront hit as the outbreak pummels economic activity across the globe.

Hermes reopens mainland China stores 

Hermes International reported a smaller decline in first-quarter sales than analysts expected. The company said it has reopened all of its mainland Chinese stores, preparing for a bounce back in demand after the coronavirus outbreak erased demand for luxury goods.

Hermes has been gradually resuming operations at its French workshops since April 14, having shuttered them a month earlier. With the majority of products produced in-house in France, Hermes could be among the brands most exposed to supply constraints when stores reopen.

German cases increase 

The number of coronavirus cases in Germany rose for the second time in five days as the government considers how to tackle the next stage of the crisis.

There were 2,195 new cases in the 24 hours through Thursday morning, bringing the total to 150,648, according to data from Johns Hopkins University. Fatalities rose by 229 to 5,315. The death rate is now at 3.53%, while the number of people who have recovered climbed to more than 103,000.

Australia to keep borders shut 

Australia will keep its international borders closed for at least three to four months to protect itself from the coronavirus pandemic that continues to deepen in other parts of the world. Border restrictions would likely be the final measure lifted and would stay in place even if other rules were eased, according to Chief Medical Officer Brendan Murphy, the Australian Broadcasting Corp reported Thursday.

Six vaccines in human trial, WHO says 

The World Health Organization said there are 83 coronavirus vaccines in development globally, with six candidates -- half of them in China -- already in human trials, as drugmakers race to find a cure for the deadly pathogen. That’s an improvement from April 13, when the WHO said there were 70 vaccines in development, with three candidates in human trials.

South Korea prepares for second wave 

The country will prepare for a second wave of novel coronavirus in the fall and winter as many experts have warned of the possibility, said Yoon Tae-ho, the director general of health ministry. There is a high chance of fast spread again as there is no vaccine or treatment yet and immunity in population hasn’t been created.

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