COVID-19 FRI MAR 13, 2020
Amid the rapid spreading of COVID-19, large event venues and attractions will remain closed on Friday. New York Gov. Andrew Cuomo ordered for the immediate shutdown of gathering places that have capacities for 500 or more people including New York's famed Broadway theaters and Manhattan's Madison Square Garden. The restriction applies to restaurants, bars, and other, smaller neighborhood commercial venues, and is scheduled to take effect Friday.Meanwhile, many parents across the country are weighing the risk and reward of keeping kids home from school. As part of a sweeping attempt to contain the spread of the coronavirus, Ohio, Maryland, Michigan and the large urban school districts of Seattle and San Francisco announced their plans to shut down all K-12 schools. .
U.S. Stocks Sink in Worst Day Since Black Monday: Market Wrap
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U.S. stocks tumbled, with benchmark gauges posting their worst drop since 1987, as investors signaled the Federal Reserve’s extraordinary bond-buying measures and Donald Trump’s economic proposals won’t be enough to counter the economic impact from the coronavirus.
All three major U.S. equity gauges fell more than 9%, with the Dow Jones Industrial Average and S&P 500 losing the most since Black Monday more than three decades ago. Ten-year Treasury yields erased declines and inched higher as policy makers’ pledge of $1.5 trillion in liquidity recalled the quantitative easing used during the financial crisis. Oil and precious metals fell, with palladium entering a bear market as it tumbled more than 20% Thursday.
The stock rout was worldwide, with Europe’s benchmark index down 11% in a record drop. Brazil’s Ibovespa tumbled as much as 20% at one point, extending this year’s loss to almost 50% in dollar terms. Canada’s main gauge was off more than 12%.
With the S&P 500 wiping out all its gains since the end of 2018, investors are trying to guess at the effectiveness of policy makers’ measures to curb the spread of the coronavirus and limit its economic damage. Trump’s travel ban and tepid fiscal measures failed to impress most observers. Spirits were further damped by new bans on public gatherings in the U.S. and professional sports leagues’ move to suspend operations.
“Markets likely need more. More innovation from central banks, more targeted help for the most vulnerable parts of the economy -- and action from fiscal authorities to stop this transitory shock from developing into a more prolonged insolvency crisis,” said Seema Shah, a global investment strategist for Principal Global Investors. “Emotion is now driving markets.”
On another bruising day across markets:
The S&P 500, Nasdaq Composite and Nasdaq 100 indexes sank deeper into a bear market, with losses from February closing records extending well past 20%.
The slump triggered the second 15-minute trading halt this week shortly after the U.S. open.
The MSCI All-Country World Index extended losses to enter bear-market territory.
The cost of insuring debt issued by Europe’s investment grade companies surged to the highest since 2013.
Japanese stocks closed more than 4% lower even after another liquidity pledge from the country’s central bank. Australian shares sunk deeper into a bear market despite a stimulus plan there.
Oil extended losses toward 5%. Bitcoin slumped. Gold fell below $1,600 an ounce.
More bad news about the impact of the coronavirus further sapped investor spirits. The leading U.S. infectious-disease official said the testing system in the country is “a failing.” The European Union warned the sickness threatens to exceed health-care capacity across the region “in a few weeks or even days.” The National Hockey League followed the National Basketball Association’s lead and suspended its season, while Major League Baseball said opening day would be delayed.
“We need to see what is effectively a ‘declaration of war’ against the virus and full support to offset the economic damage that war will cost,” said Peter Tchir, head of macro strategy at Academy Securities LLC. “Whatever has gone on this week, it’s not a liquidity crunch.”
Meanwhile, signs that companies in the hardest-hit industries were drawing down credit lines to battle the effects of the virus on their businesses added to anxiety.
“The risks have definitely risen,” said Chris Gaffney, president of world markets at TIAA. “The question is how long will this last and I don’t think anybody can predict that at this point.”
These are the main moves in markets:
Stocks
The S&P 500 Index declined 9.5% at the close of trading in New York; the Dow Jones Industrial Average lost 10%.
The Stoxx Europe 600 Index fell 11%.
The MSCI Asia Pacific Index dipped 5.3%.
The MSCI Emerging Market Index sank 6.5%.
Currencies
The Bloomberg Dollar Spot Index gained 1%.
The euro weakened 0.7% $1.1194.
The Japanese yen fell 0.9% to 105.45 per dollar.
Bonds
The yield on 10-year Treasuries rose three basis points to 0.9%.
Germany’s 10-year yield fell one basis point to -0.75%.
Britain’s 10-year yield declined three basis points to 0.26%.
Commodities
West Texas Intermediate crude declined 5.8% to $31.07 a barrel.
Gold weakened 4% to $1,569.79 an ounce.
HEALTHCARE & PHARMA
MARCH 12, 2020 / 11:38 AM / UPDATED 7 MINUTES AGO
Life upended for Americans as U.S. scrambles to contain coronavirus threat
NEW YORK/WASHINGTON (Reuters) - From Disneyland to the U.S. Supreme Court, from Wall Street to Dodgers Stadium, nearly every facet of American life fell into turmoil on Thursday as the coronavirus outbreak caused sweeping closures and economic disruption.
As concern grew over a rapid spread of the sometimes-fatal COVID-19 respiratory illness caused by the virus, the U.S. stock market cratered anew, professional and college sports leagues suspended play, Broadway theaters went dark and many schools from Ohio to Texas shuttered.
The unprecedented cascade of shutdowns reflected growing fears that the outbreak of the highly contagious pathogen, which has already killed at least 40 people in the United States, could race out of control unless authorities squelch large public gatherings.
As companies locked their offices and sent employees to work from home, fears of a recession rose in step with the number of U.S. infections, which jumped to more than 1,300 on Thursday. The concerns were reflected in U.S. stock markets, with major indexes now in bear-market territory - down at least 20% from their recent high.
New York City Mayor Bill de Blasio declared a state of emergency, granting him new powers as the number of confirmed cases rose to 95 in the nation’s most populous city.
“We are getting into a situation where the only analogy is war and a wartime dynamic,” de Blasio said, referring to an expected surge in demand for hospital beds.
From California to New York, officials banned large gatherings and closed museums and other institutions without saying how long the directives would stay in place, compounding the uncertainty.
RELATED COVERAGE
After the Trump administration imposed sweeping restrictions on air travel between the United States and Europe, Gabriella Ribeiro, a Wayne, New Jersey-based travel consultant, said she was fielding a flood of panicked calls from customers.
“We call it the ‘C’ word,” Ribeiro said of coronavirus. “We’ve been through Ebola and SARS, but I haven’t seen this level of panic among travelers since 9/11.”
With cancellations hitting everything from Little League baseball to school fairs, the rituals of American life started to grind to a halt.
The NCAA canceled its annual “March Madness” college basketball tournament. Professional hockey and basketball seasons were halted indefinitely. Major League Baseball ended spring training and suspended the first two weeks of the season.
“Opening day is religion around here,” said Frank Buscemi, a self-described sports junkie and Detroit Tigers baseball fan. “It makes sense, and you’ve got to err on the side of caution – we get that. It doesn’t make it any easier and it doesn’t make it any more fun.”
Officials in hard-hit areas, including New York and Washington states, sought to balance the need to protect the public without crippling economic activity.
New York state banned gatherings of more than 500 people beginning on Friday, Governor Andrew Cuomo told reporters. California placed the cap at gatherings of 250 people.
Hollywood postponed the release of several movies and theaters around the world closed over the health crisis.
The Walt Disney Company shuttered their large U.S. properties, including Disneyland in California and Disney World in Florida.
In Washington, D.C., officials closed the U.S. Capitol complex to the public after a staffer for a senator from Washington state tested positive for the coronavirus. [L1N2B50S4] The Supreme Court closed to the public indefinitely, and the Kennedy Center canceled all performances.
Oscar-winning actor Tom Hanks and at least one player in the National Basketball Association announced that they had tested positive for the coronavirus.
“WE’RE NOT SET UP”
The patchwork of state and local directives to stem the tide of infections came as U.S. health officials struggled to expand the country’s limited testing capacity.
“The system is not really geared to what we need right now,” Anthony Fauci, the top U.S. official on infectious diseases, said at a congressional hearing. “The idea of anybody getting it (testing) easily the way people in other countries are doing it, we’re not set up for that.”
Two U.S. senators, Rick Scott and Lindsey Graham, opted for self-quarantine after interacting with a delegation led by Brazilian President Jair Bolsonaro in Florida. One of Bolsonaro’s team has tested positive for the virus.
President Donald Trump and Vice President Mike Pence also met the Brazilian delegation, but White House spokeswoman Stephanie Grisham said both of them had “almost no interactions with the individual who tested positive and do not require being tested at this time.”
Republicans initially balked at a sweeping coronavirus economic aid package crafted by Democrats in the House of Representatives. After a day-long negotiating session, House Speaker Nancy Pelosi said late Thursday that they were close to a deal with the administration.
The Senate canceled a scheduled recess and will return next week to work on legislation.
The Trump administration spelled out details of new rules on U.S. citizens and permanent residents’ returning from Europe under restrictions that ban most Europeans from entering the United States.
“Americans coming home will be funneled through 13 different airports, they’ll be screened, and then we’re going to ask every single American and legal resident returning to the United States to self-quarantine for 14 days,” Pence said.
Trump defended his decision, which goes into effect at midnight on Friday and lasts for 30 days. He said the ban could be lengthened or shortened.
The restrictions will heap pressure on airlines already reeling from the pandemic, hitting European carriers the hardest, analysts said.
Reporting by Jonathan Allen and Steve Holland; Additional reporting by Susan Heavey, Lisa Lambert, Patricia Zengerle, David Morgan and Richard Cowan in Washington and Maria Caspani, Michael Erman and Dan Burns in New York, Steve Gorman in Culver City, California; Writing by Ginger Gibson and Paul Simao; Editing by Sonya Hepinstall, Cynthia Osterman, Leslie Adler and Daniel Wallis
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