U.S. in crisis mode as coronavirus cases soar, travel restrictions loom

Reuters
By Steve Holland and Susan Heavey

WASHINGTON (Reuters) – The United States went into crisis mode on Thursday to contain a coronavirus outbreak that has played havoc with businesses, shuttered schools and universities and severely disrupted the sports and entertainment world.

Fears of a recession grew as U.S. cases of the virus that causes the sometimes fatal COVID-19 respiratory illness rose and the Trump administration prepared to roll out restrictions that threaten to cripple the travel industry.

U.S. stock markets cratered again after trading opened, with major indexes entering bear-market territory.

Officials in the hardest-hit parts of the country, including New York and Washington states, were trying to balance the need to protect the public while stopping short of actions that could freeze the daily lives of millions of people and stop economic activity.

New York City Mayor Bill de Blasio told CNN that “more and more restrictions” were likely on the way, though he said there were no plans to shut down the city’s famous theater district or its subway system, a vital transportation link.

“I don’t want to see Broadway go dark,” de Blasio said, adding that authorities will be issuing further guidance either on Thursday or Friday. He also announced the closure of two schools in the city due to a student’s “self-confirmed” positive case of COVID-19.

Hollywood has postponed the release of several movies and movie theaters around the world have been closed over the health crisis.

More than 1,300 U.S. cases of coronavirus have been confirmed and 33 people have died, according to a tally by Johns Hopkins University in Baltimore. A nursing home in Kirkland, Washington, has accounted for a large share of the deaths.

U.S. health officials have struggled to quickly expand testing capacity to make screening for the virus widely available, and have acknowledged that it is not easy for those possibly exposed to the virus to get tested.

“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.”

Oscar-winning actor Tom Hanks and at least one player in the National Basketball Association are among those who have been infected with the highly infectious coronavirus, which can lead to pneumonia and other respiratory problems, especially in the elderly and those with compromised immune systems.

The NBA has suspended its season until further notice.

Harvard and Princeton are among the universities that have announced they will move to virtual classroom instruction after the spring break later this month.

‘SELF-QUARANTINE’

U.S. citizens and permanent residents returning from abroad will be screened for the virus and asked to go into “self-quarantine” for 14 days, Vice President Mike Pence said in an interview with CNN.

“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.

President Donald Trump defended his decision to impose a 30-day restriction on travel from Europe, except Britain and Ireland, that goes into effect at midnight on Friday.

Speaking to reporters in the White House alongside Irish Prime Minister Leo Varadkar, he said the ban could be lengthened or shortened, and added that he had been unable to consult with the European Union prior to announcing it on Wednesday night.

The travel restrictions will heap more pressure on airlines already reeling from the pandemic, hitting European carriers the hardest, analysts said. Global stock markets sank again on Thursday.

The S&P 500 <.SPX> and the Nasdaq <.IXIC> indexes entered into a bear market. The S&P 500 plunged more than 8% and the Dow Jones Industrial Average <.DJI> was down 4.3%. Airline and some cruise line stocks were particularly hard hit.

The U.S. House of Representatives plans to vote on Democrats’ sweeping coronavirus bill on Thursday, according to a Democratic aide.

Republicans have balked at the plan and called for a delay in considering the proposed legislation, and Trump said on Thursday he didn’t support the bill.

Instead, Trump has pushed for a payroll tax cut and instructed the Treasury Department to defer tax payments without interest or penalties for certain business and individuals hit by the health crisis.

The president also backs emergency action to provide financial relief for workers who are ill, quarantined or caring for others due to coronavirus.

(Reporting by Steve Holland, Susan Heavey, Lisa Lambert and Richard Cowan in Washington and Maria Caspani and Michael Erman in New York; Writing by Paul Simao; Editing by Jonathan Oatis and Sonya Hepinstall)

Israel’s Netanyahu orders schools closed, calls for unity government

Reuters
JERUSALEM (Reuters) – Israeli Prime Minister Benjamin Netanyahu on Thursday ordered most schools in the country closed as a precaution against coronavirus and called for the formation of an emergency national unity government.

“We are altering our internal routine in order to handle an outside threat, the threat of the virus,” Netanyahu said in broadcast remarks.

(Reporting by Ari Rabinovitch, Editing by Stephen Farrell)

New York bans gatherings of more than 500 on coronavirus fears

Reuters
NEW YORK (Reuters) – New York State will ban gatherings of more than 500 people beginning on Friday at 5 p.m. (2100 GMT) in order to slow the spread of the new coronavirus, Governor Andrew Cuomo said on Friday.

Establishments that can fit 500 people or fewer must halve their capacity beginning on Friday, Cuomo said.

Broadway theaters in Manhattan will have to start observing the new rules on Thursday night, Cuomo told reporters at a news conference in Albany.

Hospitals, nursing homes, mass transit and certain other facilities will be exempt from the new rule, Cuomo said.

(Reporting by Jonathan Allen; Editing by Chizu Nomiyama)

Explainer: Fed may go into its crisis tool kit soon. What’s in it?

Reuters
By Jonnelle Marte and Howard Schneider

(Reuters) – Analysts and economists increasingly expect the Federal Reserve to roll out measures beyond interest rate cuts and bond purchases to ensure financial markets keep operating smoothly and banks have ample liquidity during the coronavirus outbreak.

The unexpected move by aircraft maker Boeing Co  to draw on nearly $14 billion in credit lines from its banks, as travel restrictions aimed at containing the pandemic hurt its customers, illustrates the stress that some corporate credit markets are already starting to feel.

The Fed, which delivered an emergency rate cut last week and is expected to lower them more when it meets next week, has already taken steps to ensure liquidity in the banking system by substantially increasing the support it provides to overnight lending markets.

But the central bank has an array of other emergency lending facilities and other tools it used during the 2007-2009 financial crisis that it could turn to if needed to keep credit markets from freezing up during times of stress.

“The playbook story in these events is that the Fed would always be a provider of liquidity as needed,” said Nellie Liang, a senior fellow in economic studies at the Brookings Institution and former director of the Division of Financial Stability at the Federal Reserve Board.

Some steps the Fed can take on its own under existing authority, while others might require partnering with the Treasury Department or expanded authority from Congress.

But here is a look at some of the tools that could be adjusted or revived to support markets if credit conditions worsen significantly:

** Discount window

The Fed’s lending tool of last resort is rarely used because banks are worried that borrowing from the window could make them appear weak. But policymakers could start by reminding banks that “the discount window is open, please use it,” said Liang. Fed officials could also make the credit more attractive by lowering the rate they charge or extending the length of the loans offered from one day to 30 days or 90 days.

** Term Auction Facility (TAF)

The Fed rolled out the TAF in 2007 as a way to offer loans to banks that were too hesitant to turn to the discount window. The TAF lacked some of the stigma associated with the discount window because of the way the loans were issued. Financial firms had to bid for the funding, which meant that the rate they paid would be viewed as being determined by the market, and not as a penalty rate.

The money also was not disbursed until three days later, suggesting that the banks who borrowed in that way were not in immediate need of cash.

“It is a signal that you are not desperate,” said Liang. The Fed closed the facility in March 2010.

** Commercial paper funding facility (CPFF)

In the financial crisis, establishing the CPFF was the closest the Fed came to making direct loans to non-financial businesses.

The commercial paper market is a key source of short-term funding for a range of businesses. When it froze up in 2008, the Fed created the CPFF to help reopen that market by purchasing high-rated, asset-backed commercial paper at three-month maturities. The facility was closed in 2010.

Some measures of potential stress have appeared in this market. The spread on borrowing rates between the highest-rated non-financial borrowers and the next tier below them has widened notably this month. It is now the widest in nearly two years.

It is too early to say if the current stress will grow to an extent that allows the Fed to reopen such a facility under the “unusual and exigent circumstances” section of the Federal Reserve Act, which allows it to lend to businesses and individuals.

** Central bank liquidity swaps

The Fed has standing agreements with five other major foreign central banks – the Bank of Canada, European Central Bank, Bank of England, Bank of Japan and Swiss National Bank – that allows them to provide dollars to their financial institutions during times of stress. These were converted from temporary to standing arrangements in 2011.

The Fed could roll out more agreements with other central banks not currently party to the standing agreements to increase access to dollars if needed.

** What else?

The central bank could create new tools more tailored to today’s market, said Kathy Bostjancic, chief U.S. financial economist at Oxford Economics. “Many of these were created for the specific issues that were plaguing the financial system back then,” said Bostjancic.

“What it shows is the Fed can be innovative.”

(Reporting by Jonnelle Marte and Howard Schneider; Editing by Dan Burns and Andrea Ricci)

Men’s tennis, NBA basketball, La Liga soccer: coronavirus shreds sports calendar

LONDON (Reuters) – The global sporting calendar has been shredded by the coronavirus pandemic, with men’s tennis shut down for six weeks, top European soccer leagues on hold and the NBA having announced a suspension until further notice.

Poignantly, the Olympic flame was lit in ancient Olympia but the road to the Tokyo Olympics appears, at present, a distant one with the spread of the virus impacting across all sports.

Men’s tennis’s ATP Tour announced that no tournaments would take place until after April 20 at the earliest, wiping out the prestigious Miami Open and Monte Carlo Opens as well as tournaments in Houston and Marrakech.

“This is not a decision that was taken lightly and it represents a great loss for our tournaments, players, and fans worldwide,” the ATP’s chairman Andrea Gaudenzi said.

“However we believe this is the responsible action needed at this time in order to protect the health and safety of our players, staff, the wider tennis community and general public health in the face of this global pandemic.”

Earlier this week the Indian Wells tournament was canceled, while the International Tennis Federation postponed the revamped Fed Cup Finals set for Budapest in April.

The National Basketball Association (NBA) took the decision on Wednesday to suspend the season until further notice after a Utah Jazz player tested positive for the coronavirus.

“The NBA will use this hiatus to determine next steps for moving forward in regard to the coronavirus pandemic,” a statement said.

While chaos escalated elsewhere, Formula One was apparently carrying on regardless with the Australian Grand Prix likely to go ahead despite the McLaren team withdrawing after a team member tested positive for coronavirus.

Mercedes’ six times world champion Lewis Hamilton told reporters earlier that it was “shocking” the race could go ahead and suggested organizers had put financial concerns ahead of people’s health.

Spain and the Netherlands became the latest nations to suspend all soccer leagues.

The next two rounds of La Liga fixtures were postponed. Real Madrid put its squad into quarantine after a member of the club’s basketball team tested positive on Thursday.

“Given the circumstances that are coming to light this morning, referring to the quarantine established in Real Madrid and the possible cases in players from other clubs, La Liga considers it appropriate to continue to the next phase of the protocol of action against COVID-19,” said La Liga.

Italy’s Serie A has already stopped until at least April 3 with the country in lockdown after 12,000 infections and 800 deaths. Two Serie A players, Sampdoria’s Manolo Gabbiadini and Daniele Rugani, of Juventus, have tested positive.

England’s Premier League was waiting to discover whether or not it would continue, or have matches played behind closed doors, with the government expected to move its response to the coronavirus crisis from the “contain” phase to the “delay” phase at an emergency “Cobra” committee meeting.

With many other European leagues either suspended or playing without fans in stadiums, the fate of this year’s Euro 2020 championship being played across 12 cities remains unclear.

Governing body UEFA said it will hold a meeting of all 55 football federations in Europe to discuss the impact of the coronavirus on all domestic and European competitions.

Two of Thursday’s Europa League matches have been postponed, while it looks highly unlikely that next week’s Champions League clash between Manchester City and Real Madrid will be played.

Major League Soccer (MLS) in the United States also announced that the season was suspended until further notice.

Some events were continuing though, with the first round under way at golf’s Players Championship at Sawgrass.

(Reporting by Martyn Herman; Editing by Peter Graff)

Italy and South Korea virus outbreaks reveal disparity in deaths and tactics

Reuters
By Emilio Parodi, Stephen Jewkes, Sangmi Cha and Ju-min Park

MILAN/SEOUL (Reuters) – In Italy, millions are locked down and more than 800 people have died from the coronavirus. In South Korea, hit by the disease at about the same time, only a few thousand are quarantined and 67 people have died. As the virus courses through the world, the story of two outbreaks illustrates a coming problem for countries now grappling with an explosion in cases.

It’s impractical to test every potential patient, but unless the authorities can find a way to see how widespread infection is, their best answer is lockdown.

Italy started out testing widely, then narrowed the focus so that now, the authorities don’t have to process hundreds of thousands of tests. But there’s a trade-off: They can’t see what’s coming and are trying to curb the movements of the country’s entire population of 60 million people to contain the disease. Even Pope Francis, who has a cold and delivered his Sunday blessing over the internet from inside the Vatican, said he felt “caged in the library.”

Thousands of miles away in South Korea, authorities have a different response to a similar-sized outbreak. They are testing hundreds of thousands of people for infections and tracking potential carriers like detectives, using cell phone and satellite technology.

Both countries saw their first cases of the disease called COVID-19 in late January. South Korea has since reported 67 deaths out of nearly 8,000 confirmed cases, after testing more than 222,000 people. In contrast, Italy has had 827 deaths and identified more than 12,000 cases after carrying out more than 73,000 tests on an unspecified number of people.

Epidemiologists say it is not possible to compare the numbers directly. But some say the dramatically different outcomes point to an important insight: Aggressive and sustained testing is a powerful tool for fighting the virus.

Jeremy Konyndyk, a senior policy fellow at the Center for Global Development in Washington, said extensive testing can give countries a better picture of the extent of an outbreak. When testing in a country is limited, he said, the authorities have to take bolder actions to limit movement of people.

“I’m uncomfortable with enforced lockdown-type movement restrictions,” he said. “China did that, but China is able to do that. China has a population that will comply with that.”

The democracies of Italy and South Korea are useful case studies for countries such as America, which have had problems setting up testing systems and are weeks behind on the infection curve. So far, in Japan and the United States particularly, the full scale of the problem is not yet visible. Germany has not experienced significant testing constraints, but Chancellor Angela Merkel warned her people on Wednesday that since 60% to 70% of the populace is likely to be infected, the only option is containment.

South Korea, which has a slightly smaller population than Italy at about 50 million people, has around 29,000 people in self-quarantine. It has imposed lockdowns on some facilities and at least one apartment complex hit hardest by outbreaks. But so far no entire regions have been cut off.

Seoul says it is building on lessons learned from an outbreak of Middle East Respiratory Syndrome (MERS) in 2015 and working to make as much information available as possible to the public. It has embarked on a massive testing program, including people who have very mild illness, or perhaps don’t even have symptoms, but who may be able to infect others.

This includes enforcing a law that grants the government wide authority to access data: CCTV footage, GPS tracking data from phones and cars, credit card transactions, immigration entry information, and other personal details of people confirmed to have an infectious disease. The authorities can then make some of this public, so anyone who may have been exposed can get themselves – or their friends and family members – tested.

In addition to helping work out who to test, South Korea’s data-driven system helps hospitals manage their pipeline of cases. People found positive are placed in self-quarantine and monitored remotely through a smartphone app, or checked regularly in telephone calls, until a hospital bed becomes available. When a bed is available, an ambulance picks the person up and takes the patient to a hospital with air-sealed isolation rooms. All of this, including hospitalization, is free of charge.

South Korea’s response is not perfect. While more than 209,000 people have tested negative there, results are still pending on about 18,000 others – an information gap that means there are likely more cases in the pipeline. The rate of newly confirmed cases has dropped since a peak in mid-February, but the system’s greatest test may still be ahead as authorities try to track and contain new clusters. South Korea does not have enough protective masks – it has started rationing them – and it is trying to hire more trained staff to process tests and map cases.

And the approach comes at the cost of some privacy. South Korea’s system is an intrusive mandatory measure that depends on people surrendering what, for many in Europe and America, would be a fundamental right of privacy. Unlike China and the island-state of Singapore, which have used similar methods, South Korea is a large democracy with a population that is quick to protest policies it does not like.

“Disclosing information about patients always comes with privacy infringement issues,” said Choi Jaewook, a preventive medicine professor at Korea University and a senior official at the Korean Medical Association. Disclosures “should be strictly limited” to patients’ movements, and “it shouldn’t be about their age, their sex, or their employers.”

Traditional responses such as locking down affected areas and isolating patients can be only modestly effective, and may cause problems in open societies, says South Korea’s Deputy Minister for Health and Welfare Kim Gang-lip. In South Korea’s experience, he told reporters on Monday, lockdowns mean people participate less in tracing contacts they may have had. “Such an approach,” he said, “is close-minded, coercive, and inflexible.”

ITALY “AT THE LIMIT”

Italy and South Korea are more than 5,000 miles apart, but there are several similarities when it comes to coronavirus. Both countries’ main outbreaks were initially clustered in smaller cities or towns, rather than in a major metropolis – which meant the disease quickly threatened local health services. And both involved doctors who decided to ignore testing guidelines.

Italy’s epidemic kicked off last month. A local man with flu symptoms was diagnosed after he had told medical staff he had not been to China and discharged himself, said Massimo Lombardo, head of local hospital services in Lodi.

The diagnosis was only made after the 38-year-old, whose name has only been given as Mattia, returned to the hospital. Testing guidelines at the time said it was not necessary to test people who had no link to China or other affected areas. But an anaesthetist pushed the protocols and decided to go ahead and test for COVID-19 anyway, Lombardo said. Now, some experts in Italy believe Mattia may have been infected through Germany, rather than China.

Decisions about testing hinge partly on what can be done with people who test positive, at a time when the healthcare system is already under stress. In Italy at first, regional authorities tested widely and counted all positive results in the published total, even if people did not have symptoms.

Then, a few days after the patient known as Mattia was found to have COVID-19, Italy changed tack, only testing and announcing cases of people with symptoms. The authorities said this was the most effective use of resources: The risk of contagion seemed lower from patients with no symptoms, and limited tests help produce reliable results more quickly. The approach carried risks: People with no symptoms still can be infected and spread the virus.

On the other hand, the more you test the more you find, so testing in large numbers can put hospital systems under strain, said Massimo Antonelli, director of intensive care at the Fondazione Policlinico Universitario Agostino Gemelli IRCCS in Rome. Testing involves elaborate medical processes and follow-up. “The problem is actively searching for cases,” he said. “It means simply the numbers are big.”

Italy has a generally efficient health system, according to international studies. Its universal healthcare receives funding below the European Union average but is comparable with South Korea’s, at 8.9% of GDP against 7.3% in South Korea, according to the World Health Organization.

Now, that system has been knocked off balance. Staff are being brought into accident and emergency departments, holidays have been canceled and doctors say they are delaying non-urgent operations to free up intensive care beds.

Pier Luigi Viale, head of the infectious disease unit at Sant’ Orsola-Malpighi hospital in Bologna, is working around the clock – in three jobs. His hospital is handling multiple coronavirus cases. His doctors are shuttling to other hospitals and clinics in the area to lend their expertise and help out with cases. In addition, his doctors also have to deal with patients with other contagious diseases who are struggling to survive.

“If it drags on for weeks or months we’ll need more reinforcements,” he told Reuters.

Last week, the mayor of Castiglione d’Adda, a town of about 5,000 people in Lombardy’s “red zone” which was the first to be locked down, made an urgent online appeal for help. He said his small town had to close its hospital and was left with one doctor to treat more than 100 coronavirus patients. Three of the town’s four doctors were sick or in self quarantine.

“Doctors and nurses are at the limit,” said a nurse from the hospital where Mattia was taken in. “If you have to manage people under artificial respiration you have to be watching them constantly, you can’t look after the new cases that come in.”

Studies so far suggest that every positive case of coronavirus can infect two other people, so local authorities in Lombardy have warned that the region’s hospitals face a serious crisis if the spread continues – not just for COVID-19 patients but also for others whose treatment has been delayed or disrupted. As the crisis spreads into Italy’s less prosperous south, the problems will be magnified.

Intensive care facilities face the most intense pressure. They require specialist staff and expensive equipment and are not set up for mass epidemics. In total, Italy has around 5,000 intensive care beds. In the winter months, some of these are already occupied by patients with respiratory problems. Lombardy and Veneto have just over 1,800 intensive care beds between public and private systems, only some of which can be set aside for COVID-19 patients.

The government has asked regional authorities to increase the number of intensive care places by 50% and to double the number of beds for respiratory and contagious diseases, while reorganizing staff rosters to ensure adequate staffing. Some 5,000 respirators have been acquired for intensive care stations, the first of which are due to arrive on Friday, deputy Economy Minister Laura Castelli said.

The region has already asked nursing institutes to allow students to bring forward their graduation to get more nurses into the system early. Pools of intensive care specialists and anaesthetists are to be set up, including staff from outside the worst affected regions.

To add to the burden, hospitals in Italy depend on medical personnel to try to trace the contacts that people who test positive have had with others. One doctor in Bologna, who asked not to be named, said he had spent a 12-hour day tracing people who had been in contact with just one positive patient, to ensure those who next need testing are found.

“You can do that if the number of cases remains two to three,” the doctor said. “But if they grow, something has to give. The system will implode if we continue to test everyone actively and then have to do all this.”

“MAXIMUM POWER”

In South Korea as in Italy, an early case of COVID-19 was identified when a medical officer followed their intuition, rather than the official guidelines, on testing.

The country’s first case was a 35-year-old Chinese woman who tested positive on Jan. 20. But the largest outbreak was detected after the 31st patient, a 61-year-old woman from South Korea’s southeastern city of Daegu, was diagnosed on Feb. 18.

Like the patient named Mattia in Italy, the woman had no known links to Wuhan, the Chinese province where the disease was first identified. And as in Italy, the doctors’ decision to recommend a test went against guidelines at the time to test people who had been to China or been in contact with a confirmed case, said Korea Medical Association’s Choi Jaewook.

“Patient 31,” as she became known, was a member of a secretive church which Deputy Minister for Health and Welfare Kim Gang-lip said has since linked to 61% of cases. Infections spread beyond the congregation after the funeral of a relative of the church’s founder was held at a nearby hospital, and there were several other smaller clusters around the country.

Once the church cluster was identified, South Korea opened around 50 drive-through testing facilities around the country.

In empty parking lots, medical staff in protective clothing lean into cars to check their passengers for fever or breathing difficulties, and if needed, collect samples. The process usually takes about 10 minutes, and people usually receive the results in a text reminding them to wash their hands regularly and wear face masks.

A total of 117 institutions in South Korea have equipment to conduct the tests, according to the Korea Centers for Disease Control and Prevention (KCDC). The numbers fluctuate daily, but an average of 12,000 is possible, and maximum capacity is 20,000 tests a day. The government pays for tests of people with symptoms, if referred by a doctor. Otherwise, people who want to be tested can pay up to 170,000 won ($140), said an official at a company called Seegene Inc, which supplies 80% of the country’s kits and says it can test 96 samples at once.

There are also 130 quarantine officers like Kim Jeong-hwan, who focus on minute details to track potential patients. The 28-year-old public health doctor spends his whole working days remotely checking up on people who have tested positive for COVID-19, the disease caused by the virus.

Kim, who is doing military service, is one of a small army of quarantine officers who track the movements of any potential carriers of the disease by phone, app or the signals sent by cell phones or the black boxes in automobiles. Their goal: To trace all the contacts people may have had, so they too can be tested.

“I haven’t seen anyone telling bad lies,” Kim said. “But lots of people generally don’t remember exactly what they did.”

Underlining their determination, quarantine officers told Reuters they located five cases after a worker in a small town caught the virus and went to work in a “coin karaoke,” a bar where a machine lets people sing a few songs for a dollar. At first, the woman, who was showing symptoms, did not tell the officers where she worked, local officials told Reuters. But they put the puzzle together after questioning her acquaintances and obtaining GPS locations on her mobile device.

“Now, quarantine officers have maximum power and authority,” said Kim Jun-geun, an official at Changnyeong County who collects information from quarantine officers.

South Korea’s government also uses location data to customize mass messages sent to cellphones, notifying every resident when and where a nearby case is confirmed.

Lee Hee-young, a preventative medicine expert who is also running the coronavirus response team in South Korea’s Gyeonggi province, said South Korea has gone some of the way after MERS to increase its infrastructure to respond to infectious diseases. But she said only 30% of the changes the country needs have happened. For instance, she said, maintaining a trained workforce and up-to-date infrastructure at smaller hospitals isn’t easy.

“Until we fix this,” Lee said, “explosions like this can keep blowing up anywhere.”

(Reporting by Emilio Parodi, Stephen Jewkes, Angelo Amante, Sangmi Cha and Ju-min Park; Additional reporting by James Mackenzie in Milan and Josh Smith in Seoul, Julie Steenhuysen in New York; Edited by Sara Ledwith and Jason Szep)

Trump stops Europe flights, China says coronavirus outbreak may end by June

Reuters
By Liangping Gao and Andrea Shalal

BEIJING/WASHINGTON (Reuters) – Travelers scrambled to rebook flights and markets reeled on Thursday after U.S. President Donald Trump imposed sweeping restrictions on travel from Europe, hitting battered airlines and heightening global alarm over the coronavirus.

But China, where the disease originated, said its epidemic had peaked and the global spread could be over by June if other nations applied similarly aggressive containment measures as Beijing’s communist government.

Trump had downplayed risks to the United States during the crisis, but with epidemics ballooning from Iran to Italy and Spain, he limited travel from continental Europe for 30 days.

“This is the most aggressive and comprehensive effort to confront a foreign virus in modern history,” he said in a prime-time televised address from the Oval Office on Wednesday.

That sent markets into a tailspin, with European shares plunging to their lowest in almost four years and oil also slumping.

It also sent stressed travelers rushing to airports to board last flights back to the United States.

“It caused a mass panic,” said 20-year-old Anna Grace, a U.S. student at Suffolk University on her first trip to Europe who rushed to Madrid’s Barajas airport at 5 a.m. to get home.

The outbreak has disrupted industry, travel, entertainment and sports worldwide, even throwing the Tokyo Summer Olympics into question. But its progress in the epicenter of China’s Hubei province has slowed markedly amid strict curbs on movement, including the lockdown of its capital Wuhan.

Hubei logged just eight new infections on Wednesday, the first time in the outbreak it has recorded a daily tally of less than 10. Beyond Hubei, mainland China had just seven new cases, six of them imported from abroad.

“The peak of the epidemic has passed for China,” said Mi Feng, a spokesman for the National Health Commission.

OVER BY JUNE?

The Chinese government’s senior medical adviser, Zhong Nanshan, an 83-year-old epidemiologist renowned for helping combat the SARS outbreak in 2003, said the crisis could be over by mid-year.

“If all countries could get mobilized, it could be over by June,” he said. “But if some countries do not treat the infectiousness and harmfulness seriously, and intervene strongly, it would last longer.”

The coronavirus has infected more than 126,000 people across the world, the vast majority in China, and killed 4,624, according to a Reuters tally.

Already annoyed at what it considered over-draconian travel restrictions by Washington early in the crisis, Beijing smarted again at latest U.S. criticism of its handling.

White House national security adviser Robert O’Brien accused China on Wednesday of initially covering up the Hubei outbreak, saying that cost the world two months in response time.

In fact, retorted Chinese Foreign Ministry spokesman Geng Shuang, China’s efforts bought the world time and “immoral and irresponsible” remarks would not help U.S. epidemic efforts.

The World Health Organization (WHO) now officially describes the crisis as a pandemic, meaning it is spreading fast across the globe.

“Describing this as a pandemic does not mean that countries should give up,” WHO chief Tedros Adhanom Ghebreyesus told diplomats in Geneva. “The idea that countries should shift from containment to mitigation is wrong and dangerous.”

Trump’s surprise travel order, which starts at midnight on Friday, does not apply to Britain or to Americans undergoing “appropriate screenings”, he said. “The restriction stops people not goods,” he tweeted after his speech.

EU DISAPPROVAL

The 27-nation European Union (EU) bloc was not impressed.

“The European Union disapproves of the fact that the U.S. decision to improve a travel ban was taken unilaterally and without consultation,” European Commission president Ursula von der Leyen and Council president Charles Michel said in a statement.

The market plunge hit airline and leisure stocks particularly hard.

“This is something that markets had not factored in … it’s a huge near-term economic cost,” Khoon Goh, head of Asia Research at ANZ in Singapore, said of the U.S. move.

Although exempt from Trump’s ban and no longer a member of the EU, Britain also expressed disappointment, saying it would have an impact on its economy.

But U.S. Vice President Mike Pence defended the new restrictions, saying the epicenter of the pandemic had shifted from Asia to Europe. “We know there will be more infections in the days ahead. We’re trying to hold that number down as much as possible,” Pence told NBC’s “Today” program.

In the United States, classes were suspended for two weeks in the greater Seattle area, which accounts for the bulk of at least 38 U.S. fatalities from the disease.

Oscar-winning American actor Tom Hanks tested positive in Australia, where he is on a film shoot.

Despite fears for the Tokyo Olympics, the torch relay got started in Greece when the flame was lit by the rays of the sun in ancient Olympia – albeit in a scaled-down ceremony and without spectators.

(Additional reporting by Ryan Woo, Stella Qui, Kevin Yao and Gabriel Crossley in Beijing; Alexandra Alper, Steve Holland, Susan Heavey, David Lawder, and Richard Cowan in Washington, Marine Strauus in Brussels, William Schomberg in London, Stephanie Nebehay in Geneva, Karolos Grohmann in Ancient Olympia; Writing by Nick Macfie; Editing by Robert Birsel and Andrew Cawthorne)

WHO calls coronavirus a pandemic as Britain, Italy shore up defenses

Reuters
By Emma Farge and William Schomberg

GENEVA/LONDON (Reuters) – The World Health Organization described the coronavirus outbreak as a pandemic for the first time on Wednesday as Britain and Italy announced multi-billion-dollar war chests to fight the disease.

The United States also said it was considering new steps to battle the virus that emerged in China in December and has spread around the world, halting industry, grounding flights, closing schools and forcing events to be postponed.

“We are deeply concerned both by the alarming levels of spread and severity and by the alarming levels of inaction,” Director General Tedros Adhanom Ghebreyesus told reporters in Geneva.

“We have therefore made the assessment that COVID-19 can be characterized as a pandemic,” he said, using the formal name of the coronavirus.

There are now more than 118,000 infections in 114 countries and 4,291 people have died of the virus, with the numbers expected to climb, Tedros said.

Use of the word pandemic does not change the WHO’s response, said Dr Mike Ryan, the head of the Geneva-based agency’s emergencies program.

WHO officials have signaled for weeks that they may use the word “pandemic” but said it does not carry legal significance. The WHO classified the outbreak as a “public health emergency of international concern” on Jan. 30, triggering an increase in global response coordination.

“The use of this term (pandemic) however highlights the importance of countries throughout the world working cooperatively and openly with one another and coming together as a united front in our efforts to bring this situation under control,” said Nathalie MacDermott, an expert at King’s College London.

Mark Woolhouse, professor of infectious disease epidemiology at Britain’s Edinburgh University, added: “It is now clear that COVID-19 is going to be with us for a considerable length of time and the actions that we take must be actions that we can live with for a prolonged period.”

WAR CHESTS

Before the WHO’s comments, Italy – the European country worst hit by the virus – and Britain announced they were setting aside large sums to fight the flu-like disease.

Britain launched a 30-billion-pound ($38.54 billion) economic stimulus plan as new finance minister Rishi Sunak said the economy faced a “significant impact” from the spread of the virus, even if it was likely to be temporary.

“Up to a fifth of the working-age population could need to be off work at any one time. And business supply chains are being disrupted around the globe,” Sunak said in an annual budget speech to parliament.

He announced a package of measures to help companies facing a cash-flow crunch, including a year-long suspension of a property tax paid by smaller firms. The health system and other public services would receive an extra 5 billion pounds to help counter the spread of the coronavirus.

Last week, Italy’s cabinet said it would need 7.5 billion euros ($8.46 billion) to fight the virus, but since then the emergency has escalated and the nation, already close to recession, is under lockdown, with the death toll now 827.

Prime Minister Giuseppe Conte on Wednesday earmarked $28.3 billion to ease the economic impact. He said that already tough restrictions on movement might be tightened further after the northern region of Lombardy, centered on Italy’s financial capital Milan, asked for all shops to shut and public transport to close.

The United States, where the S&P 500 stock index was down almost 4%, said its steps could include tax relief that could channel hundreds of billions of dollars into the U.S. economy.

“Bottom line, it’s going to get worse,” Anthony Fauci, head of the U.S. National Institute of Allergy and Infectious Diseases, told Congress.

The WHO’s Ryan said the situation in Iran was “very serious” and the agency would like to see more surveillance and more care for the sick. Iran has reported 237 deaths from the virus.

German Chancellor Angela Merkel said up to 70% of the population was likely to be infected as the virus spreads around the world in the absence of a cure.

A rebound in stocks ran out of steam on Wednesday despite the Bank of England move. Money markets are fully pricing in a further 10 basis-point cut by the European Central Bank when it meets on Thursday.

As of Tuesday’s close, $8.1 trillion in value had been erased from global stock markets in the recent rout.

But not all the news was bad. Some key industries in Wuhan, the Chinese city at the epicenter of the epidemic and a hub of car manufacturing, were told they could resume work on Wednesday, a day after President Xi Jinping visited the city for the first time since the outbreak began.

Washington considers actions to bolster U.S. economy as COVID-19 cases mount to over 1025

Reuters
By Steve Holland and Richard Cowan

WASHINGTON (Reuters) – As U.S. coronavirus cases rose steadily, the White House and Congress negotiated measures on Tuesday to bolster the U.S. economy and Americans’ paychecks against the outbreak’s impact, although there was no immediate sign of a deal.

The rise in the number of U.S. cases of COVID-19, a highly contagious and sometimes fatal respiratory illness, has concerned health officials and spurred calls within Congress for action to expand testing and avert an economic meltdown.

“We had a good reception on Capitol Hill. We’re going to be working with Republican and Democratic leadership to move a legislative package,” Vice President Mike Pence, who is leading the White House’s coronavirus task force, told a White House briefing.

Almost three-quarters of U.S. states have confirmed cases of COVID-19. A running national tally kept by the Johns Hopkins University center tracking the outbreak puts the number of cases at 1,025, with 28 deaths. Washington state’s governor warned of tens of thousands more cases without “real action,” and New York’s governor deployed National Guard troops as a containment measure in a hard-hit New York City suburb.

U.S. stocks rebounded in their largest daily gain since late 2018 on hopes that a government stimulus package was in the making. In Asia, though, on Wednesday, Asian shares and Wall Street futures fell as growing scepticism about Washington’s stimulus knocked the steam out of the rally.

A central feature of the administration’s legislative proposal is payroll tax relief, although the extent and duration of the proposal were unclear.

White House officials have also said the administration could undertake executive action to help small businesses and workers, including those who do not receive paid sick leave.

Trump is scheduled to meet with bank executives at the White House on Wednesday.

U.S. Treasury Secretary Steven Mnuchin, who is leading negotiations on behalf of Republican President Donald Trump, met with Democratic House Speaker Nancy Pelosi to discuss a possible deal.

“We’re going to work together on a bipartisan basis to figure out how we can get things done quickly that are going to help the Americans that are most impacted by this and small and medium-sized businesses that are impacted,” he said.

Pelosi said the meeting was aimed at seeing “where our common ground was” on a set of legislative proposals.

In remarks to reporters, she warned that any package should not contain “trickle-down solutions that only help a few.”

Democrats are challenging the Trump administration to tightly target new measures at people directly affected by the coronavirus. Any measure would need to pass the Democratic-controlled House as well as the Republican-controlled Senate before reaching Trump’s desk.

“I hope we don’t play politics with this. Mixing politics with a pandemic is not good. It’s terribly counterproductive,” said Republican Senator Pat Roberts.

‘MIXED REVIEWS’

All three major U.S. benchmark stock indexes on Tuesday rose nearly 5%, one day after suffering their largest losses since the 2008 financial crisis.

Prospects for a second day of gains on Wednesday dimmed as U.S. equity index futures slid 1% after the overnight trading session got under way.

Trump met with Republican lawmakers and again downplayed the risks from the coronavirus. “It will go away. Just stay calm. It will go away,” he said.

A senior Senate Republican aide said Trump’s payroll tax proposal got “mixed reviews” among Republican senators who attended.

Some Senate Republicans said a potential deal could include $300 billion in payroll tax relief that could help people make rent and mortgage payments, or pay medical bills if family members’ work hours are reduced during the outbreak.

Democrats accused Trump of being more focused on soothing Wall Street’s nerves than on protecting the public from the health and economic fallout of the fast-spreading epidemic. The White House has been accused of inadequate preparation for the outbreak and a slow rollout of coronavirus testing.

“President Trump and his administration should be putting people before corporations, and they should be focused on taking appropriate steps to keep the American people and their economic security safe,” Senate Democratic leader Chuck Schumer said.

Democrats are pushing for paid sick leave, expanded and free testing for the coronavirus and other measures.

OUTBREAK EXPANDS

More than 116,000 people have contracted the coronavirus worldwide since it surfaced in China late last year, according to the World Health Organization. More than 4,000 people have died.

Italy, which has the highest death toll outside of China, has put its entire population of 60 million on virtual lockdown.

At least 35 U.S. states and the District of Columbia have reported infections of COVID-19. New Jersey on Tuesday reported its first death.

New York Governor Andrew Cuomo said schools would be closed and public gatherings suspended in a coronavirus “hot zone” in New Rochelle, a New York City suburb, and deployed National Guard troops there.

The United Nations said it would be closing its headquarters in New York to the public until further notice.

As the outbreak spreads, daily life in the United States has been increasingly disrupted, with concerts and conferences canceled and universities telling students to stay home and take classes online.

Democratic presidential contenders Joe Biden and Bernie Sanders both canceled rallies in Ohio on Tuesday night, citing warnings from public health officials, as six states voted in the party’s nominating contests.

The Democratic National Committee said its presidential debate in Arizona on Sunday would be conducted without a live audience because of health concerns.

(Reporting by Richard Cowan, Susan Cornwell, Susan Heavey, Andrea Shalal, David Lawder and Lisa Lambert in Washington, Deborah Bloom in Olympia, Washington and Nathan Layne and Gabriella Borter in New York; Additional reporting by Brendan O’Brien, Eric Beech and Makini Brice, Rama Venkat in Bengaluru; Writing by Paul Simao and Lawrence Hurley; Editing by Bill Berkrot, Cynthia Osterman and Peter Cooney)

U.S. may see blood shortages as coronavirus cancels office blood drives

Reuters
By Michael Erman

NEW YORK (Reuters) – U.S. blood banks are concerned about potential shortages as Americans concerned about catching the new coronavirus avoid donation sites and companies with employees working from home cancel blood drives.

There have already been shortages over the past week in Washington that required other blood banks to move blood in from outside the region, according to Brian Gannon, who runs the Gulf Coast Regional Blood Center and chairs a disaster task force for AABB, formerly known as the American Association of Blood Banks. Supplies in New York were also low because of blood drive cancellations, he said.

“I’m concerned. This is different than most of the types of pandemics we’ve had in the past or the other types of disasters that I’ve been involved with because it has to do with people social distancing themselves,” Gannon said. “Blood has a short shelf life, so it’s not like we can stockpile it.”

Most blood centers try to keep an inventory of a three-day supply, according to the AABB.

The disease has so far sickened more than 800 in the United States and killed 28, mostly in Washington state.

Blood supply in Seattle started to dwindle at the beginning of the month, according to Bloodworks Northwest, which collects and distributes blood around the Northwest U.S.

“Last week was really bad and we were at critical and emergency levels,” said Vicki Finson, executive vice president of blood services at Bloodworks Northwest.

Finson said 60% of Bloodworks Northwest’s blood is from mobile blood drives, and the push to have people work from home has resulted in many being canceled.

“If this gets worse, people will quit responding and then we will be in a very difficult situation,” Finson said.

The AABB task force led by Gannon sent 600 units of blood to Seattle over the weekend, he said.

He is encouraging individuals and sponsors of blood drives to schedule appointments and keep their commitments, and that blood banks around country can continue to shift supply to where it is needed.

China saw sharp shortages in blood donations as quarantine measures to prevent the spread of the virus took its toll on inventories around the country.

Coronavirus is not transmissible via transfusion, according to the American Red Cross.

“There is absolutely no evidence that the coronavirus or any respiratory viruses are transmitted via blood transfusion,” said Dr. Pampee Young, chief medical officer of the American Red Cross.

Still, the Red Cross and AABB said their donation centers are asking that sick people wait until they are healthy to donate in order to protect staff and other donors. People who have recently traveled to China, Iran or Italy are also being asked to wait to donate.

Young said that cancer patients who need platelets, people in trauma who need emergent transfusions and newborns with critical need for blood are all particularly vulnerable if supplies dip.

In Seattle, Finson said donations picked up over the weekend, but on Tuesday, Bloodworks Northwest was around 140 short of its 1,000 donor-per-day target.

“We need people every day,” she said. “This will continue and if this virus is weeks, if not months, we’ll have to be diligent every single day, because the patient usage has not decreased at all.”

(Reporting by Michael Erman; Editing by Lisa Shumaker)