Latest news on Coronavirus: Russia forbids entry to Chinese citizens

Nasdaq turns positive despite Apple’s sales warning

The S&P 500 rebounded to session lows while the Nasdaq turned positive as the post-shock of Apple’s sales warning declined in the last hour of trading in New York.

The S&P benchmark dropped 0.2 percent, reducing losses that arose after Apple warned of the iPhone’s supply constraints due to the coronavirus.

The heavy technological NASDAQ rose to positive territory, increasing by 0.1 percent.

Gold remained 1.4 percent higher. The yield on the 10-year Treasury note fell 3.4 basis points.

Gold has returned to above $ 1,600 amid fears of the virus

By Henry Sanderson in London

Gold surpassed $ 1,600 a troy ounce on Tuesday as concerns about the impact of coronavirus grow.

The precious metal, which has risen to $ 1,605.19 per troy ounce, has been enjoying its best run since 2010 as investors seek safe haven assets and global bond yields remain low. Last time, gold broke the $ 1,600 mark in January – for the first time since 2013 – amid geopolitical tensions.

“The appetite for safe-haven assets still seems insatiable,” said TD Securities analysts.

On Tuesday the dollar rose to its highest level in almost three years against the euro.

“The market is almost acting in conjunction with the dollar as both seem to be calling for safe havens right now,” said David Govett, an analyst at Marex Spectron. “So actually, it’s the virus right now, with movements apparently predicted by it.”

Palladium, another precious metal, also extended its record high to a high of $ 2,590 an ounce on Tuesday.

The metal used in catalytic converters has increased by 33% this year, as automakers try to meet stricter air pollution standards.

Russia forbids entry to Chinese citizens

By Max Seddon in Moscow

Russia will ban all Chinese citizens from entering the country on Thursday as the coronavirus epidemic continues to spread, making Moscow the first country to do so and potentially severely testing relations with a close ally.

On Tuesday, Prime Minister Mikhail Mishustin signed a decree temporarily prohibiting all Chinese citizens from entering Russia for tourism, study or work reasons, Deputy Prime Minister Tatiana Golikova told reporters.

Moscow made the decision “in relation to the worsening of the epidemological situation in China and the continued presence of Chinese citizens on Russian territory,” said Interfax.

The coronavirus epidemic is an important test for Moscow’s thriving ties with Beijing, during which trade between the two countries reached $ 110 billion in 2019. Russia has issued over 2.3 million visas to Chinese citizens l last year, most of which were for tourism, according to statistics from the ministry of interior.

On Tuesday at midnight Russia will stop accepting, processing and issuing visa applications for Chinese citizens. The decision will not affect passengers in transit in Moscow, which has become a popular center for Chinese tourists visiting Europe; 1.26 million passengers in Chinese transit crossed Sheremetyevo airport, the largest in Moscow, last year.

Russia has reported two confirmed cases of coronavirus, both affecting Chinese citizens in Siberia, as well as a Russian woman who has been diagnosed with the virus on board the quarantined Diamond Princess cruise ship in Japan.

Last month, Russia closed its 4,000km land border with China, banned Chinese tour groups and suspended all flights between countries other than those operated by state carriers Aeroflot and Air China. Russia then started evacuating some of the 300 Russians to Wuhan, the epicenter of the epidemic, and 341 others from other places in Hubei province.

The Russian Foreign Ministry has stopped issuing electronic visas to Chinese citizens, suspending a special permit that offers tourists short-term access to St. Petersburg, the Kaliningrad Baltic Sea enclave and parts of the Far East of the country .

Sanofi collaborates with HHS to develop the Covid-19 vaccine

Sanofi is the latest pharmaceutical company to participate in the race for a coronavirus vaccine. The global vaccine business unit of the French pharmacist, Sanofi Pasteur, said it will leverage previous work for a Sars vaccine, “which could unlock a rapid path.”

Sanofi is working with the US Biomedical Advanced Research and Development Authority (BARDA), part of the Health and Human Services office. “While we lend our experience wherever possible, we believe that collaboration with BARDA can provide the most significant results in protecting the public from this latest outbreak,” said David Loew, global vaccine manager at Sanofi.

Meanwhile, HHS has said it will expand an existing partnership with Johnson & Johnson’s Janssen Research & Development to help develop treatments to identify medicines that could help reduce the severity of the disease and treat coronavirus infections.

More information on the scientist leading the coronavirus vaccine race here.

WHO has 92 human-to-human outbreak cases outside China

The World Health Organization has stated that the spread of human-to-human coronavirus has been limited to 92 cases in 12 countries outside of China.

“We have not seen a sustained local transmission of coronaviruses except in specific circumstances such as the cruise ship Diamond Princess,” said Dr Re. Tedros Adhanom Ghebreyesus, WHO Director-General, during a press briefing. He added that the WHO has no data “to make a meaningful comparison with cases in China.”

Japanese health officials said there are 542 confirmed cases of coronavirus on the Diamond Princess cruise ship, which has been docked off Yokohama with over 3,700 passengers in quarantine.

The United States evacuated more than 300 Americans who had been on board. During the repatriation, officials learned that 14 of the IDPs had tested positive for the virus. I’m being treated at facilities in the United States.

When asked about the rapid spread of Covid-19 on the Diamond Princess, dr. Mike Ryan, WHO’s emergency director of the emergency program, said the ship’s quarantine was preferable for passengers to “disperse worldwide.” “But obviously the situation on the ground has changed,” he added.

“Clearly there has been more transmission than expected on the ship and I think the authorities in Japan are adapting to that reality now and taking the public health measures needed with other countries to evacuate people and manage their retinue differently, “Dr Ryan said.

Dolce and Gabbana support research on potential cures for coronavirus

By Hannah Roberts in Rome

Dolce and Gabbana is funding research on potential vaccines or cures for coronavirus, while the Italian fashion house is struggling to recover from a public relations catastrophe in China, where over 1,000 people died from the virus.

The solidarity show will likely be seen as an attempt by the brand to build bridges with buyers in China. The brand was avoided by buyers and cut by online retailers and department stores following a 2018 advertising campaign perceived as racist, with a Chinese model trying to eat pizza and spaghetti with chopsticks.

The crime was compounded when Instagram screenshots appeared to show Stefano Gabbana that he made negative comments about China, even though he said his account was hacked.

Among the fallouts, the brand experienced a slowdown in sales in China in 2018-19 and in documents it said it predicted a drop in Chinese sales in 2019-2020, according to Reuters.

Researchers from the Humanitas University and the San Raffaele Vita-Salute University, both in Milan, will study the natural immune responses to coronavirus and its potential uses in treatment and diagnosis.

Domenico Dolce and Stefano Gabbana said in a statement that supporting scientific research “is a moral duty for us”. “We felt we had to do something to fight this devastating virus that started from China but is threatening all humanity.”

The virus is likely to weigh heavily on the fashion industry, which has been eager to show its solidarity. At Milan Fashion Week, which started on Monday, the official slogan is “China, we are with you”. Eighty percent of Chinese participants are absent, according to the National Chamber of Italian Fashion. Earlier this month, the Bulgari jewelry brand donated to a research team in Rome that had isolated the virus’s DNA.

Chinese customers account for over a third of global luxury product spending and two thirds of the sector’s growth. Italian fashion officials predicted a drop of nearly 2% in first half revenues.

The Walmart chief of finance says the virus “hardening expectations” for the fiscal year

By Alistair Gray

The Walmart chief financial officer has warned that the coronavirus epidemic will “temper our expectations” for the coming financial year.

Setting financial targets for the world’s largest retailer on an investor day in New York on Tuesday, Brett Biggs said the company’s annual guidelines don’t take coronavirus into account as its impact was too difficult to quantify.

However, Walmart said it “could see a couple of cents of negative impact” on first quarter earnings per share due to a slowdown in China, where the group has more than 400 stores.

Jaguar Land Rover flying parts out of China in suitcases

By Nikou Asgari

Jaguar Land Rover is piloting components in suitcases outside of China as it races to prevent its plants in the UK from closing later this month.

Sir Ralf Speth, chief executive of the UK’s largest automaker, said the company’s British factories are “safe for this week” and the following week, but are having difficulty finding parts from China in the following weeks, shortcomings that would be “a risk for the complex production”.

“We piloted parts in suitcases from China to the UK just to make sure we have the right parts,” he added.

Read on this story Here.

Wall Street opens down

Global equities declined as an Apple sale notice spread to the markets in the latest sign of the growing business and financial cost of the coronavirus epidemic.

All three of the major Wall Street indices opened 0.3 percent lower, while European markets also slipped but recovered the worst of their losses later in the day.

California-based Apple on Monday warned that “the worldwide supply of iPhones will be temporarily limited” due to the coronavirus epidemic and that factories run by its suppliers in China were returning to work slower than expected.

Apple has dropped by nearly 2.5%, and the stocks of chip makers around the world have also dropped.

In the United States, Qualcomm lost 2.3 percent, while ASM International listed on the stock exchange and Dialog Semiconductor listed on the Frankfurt stock exchange were among the leading European companies with the worst performances, each with a drop of more than 4 per cent. one hundred.

Singapore cases exceed 80

Stefania Palma reports from Singapore:

Singapore confirmed four more cases, bringing the island state total to 81.

Three patients – a 50-year-old man and two 38- and 57-year-old women – are connected to an existing group involving the Assembly of the Church of God’s grace. They are all unprecedented citizens of Singapore recently in China.

The fourth case is a 35-year-old Malaysian woman with a work permit in Singapore who is a family member of a previously confirmed case.

Five other cases recovered from the virus and were discharged from the hospital, bringing the total to 29.

Fund managers have reduced growth prospects, the BofA survey shows

Fears about the impact of the coronavirus epidemic, particularly on the Chinese economy, prompted the first cut in global growth, profits and inflation expectations since October, showed the Bank of America fund manager’s investigation .

The survey, which ran from February 6-13, polled 194 participants whose managed businesses totaled $ 632 billion.

Investors called the coronavirus epidemic the biggest “tail risk” after the result of the 2020 US presidential election and the bursting of the bond bubble.

“Investor sentiment is less bullish than last month and shows full capitulation in deflationary activities,” said Michael Hartnett, chief investment strategist at BofA. “We remain irrationally bullish.”


The British Prime Minister sends “sympathies” to China after criticism

Relationship Laura Hughes in London and Christian Shepherd in Beijing:

Boris Johnson offered President Xi Jinping his “sympathies” during the coronavirus epidemic, after the prime minister’s father claimed that Chinese officials were “concerned” about the number 10’s inability to send a personal message to the affected nation.

Stanley Johnson sent the message this month to British officials and environment minister Zac Goldsmith in emails that were accidentally copied to the BBC.

“The Prime Minister spoke with President Xi of China this morning,” a Downing Street official said.

He offered his sympathies to people affected by the coronavirus outbreak in China. President Xi thanked the United Kingdom for his support and in particular welcomed the donation of vital medical equipment to China.

The Prime Minister and President agreed on the importance of relations between the United Kingdom and China and decided to work together on a number of issues including strengthening the economic partnership, for the benefit of the people of both China and the United Kingdom.

In view of the COP26 in Glasgow and the summit on the Convention on Biological Diversity in China, the two leaders have decided to work closely on the issue of climate change. They agreed that biodiversity and climate change are two sides of the same coin and must be addressed in tandem if we are to protect the planet for future generations.

Xi told Johnson that there have been clear signs of a positive change in epidemic control after China has taken “at most complete, rigorous and thorough measures,” state-run CCTV news agency announced.

China is confident that it can achieve its economic growth targets for this year, according to CCTV Xi. He also added that Beijing will be open and transparent with the UK on the epidemic.

The Chinese ambassador asked the UK Foreign Office to review his advice for the British to leave China, claiming that “the epidemic is controllable, preventable and treatable.”

Emoticon

The actions of Apple suppliers fall ahead of the opening of Wall Street

Shares from some of Apple’s major suppliers fell into pre-market negotiations in New York after the US consumer technology company warned that stopping coronavirus in China will cause its revenue to drop in the current quarter.

The warning rippled around the global equity markets and the shares of Qualcomm, Intel, Broadcom and Texas Instrument were 1-2% lower in pre-market trading. Apple itself was down just under 3%.

The chip makers’ shares declined in Europe and Asia, while the US markets should have opened lower. Forward trading indicated a 0.5 percent drop for the S&P 500.

Apple’s largest Apple plant faces labor shortages

Ryan McMorrow and Nian Liu in Beijing and Katherin Hille in Taipei report:

Apple’s largest iPhone plant is struggling to return to full production after the Chinese New Year’s lunar holidays due to restrictions on workers aimed at curbing the coronavirus epidemic, raising concerns about a lasting effect on the smartphone group.

Contract manufacturer Foxconn assembles many of Apple’s iPhones in an industrial complex in Zhengzhou in Henan province. At full production, over 200,000 workers have put iPhones together on its assembly lines.

But Foxconn faces multiple challenges for factory staff, who have partially resumed production while workers return from a prolonged pause. On Tuesday, the unit responsible for iPhone production stopped accepting workers from outside the city, highlighting issues related to domestic workers in need of quarantine.

“In response to government epidemic control requirements to prioritize prevention and safely resume work, and at the same time improve the quality of our worker reception services,” non-Zhengzhou workers had to stop reporting for work, a notice seen by the Financial Times said.

The news came when Apple warned of revenue due in part to its “temporarily limited” smartphone supply.

You can read more about this story here

Should we panic?

In this video, FT data reporters John Burn-Murdoch is Federica Cocco see what graphs tell us about the spread of coronavirus.

Coronavirus mapped: the latest figures

The humanitarian costs of the coronavirus epidemic have continued to rise, with over 73,000 infected people in China alone, where the epidemic originated. The number of people who have been confirmed dead due to the virus has now reached 1,873.

FT is mapping the coronavirus as it spreads. Check here for our updated data here.

The Diamond Princess cruise ship has 88 additional confirmed cases

Robin Harding in Tokyo writes:

Japan has confirmed 88 other coronavirus cases on the Diamond Princess cruise ship, bringing the number of infected people on board to 542. The tests were conducted on 2,404 of the approximately 3,700 people on board the ship who entered quarantine on February 3. Of the 542 cases, 254 show no symptoms.

The latest positive tests come as Japan prepares to release some passengers from the quarantine on Wednesday. The release will be subject to a negative test for the virus. Anyone who is in close contact with someone who has tested positive for the virus will have to start the quarantine again from the date of contact.


German investor sentiment plummeted due to the impact of the virus

German investor sentiment dropped sharply in February when the effects of coronavirus weighed on exporters, a survey conducted by financial experts showed.

The Zew survey of financial market experts found that sentiment about the outlook for the economy fell 18 points this month to a reading of 8.7. This is well below the January score of 26.7 and significantly worse than 21.5 economists expected in a Reuters poll.

“The feared negative effects of the coronavirus epidemic in China on world trade have caused a significant decline in the Zew indicator of economic sentiment for Germany,” said Achim Wambach, president of Zew.

“Expectations regarding the development of sectors of the export-intensive economy have fallen particularly markedly,” he added. “Furthermore, the end of 2019 and the beginning of 2020 saw a worse than expected development of the German economy.”

The IMF cuts the outlook for Nigeria because of the effects of the virus on oil prices

Neil Munshi reports about Lagos:

The IMF has cut its forecast for Nigeria, citing low international oil prices, which have been eliminated due to the coronavirus epidemic.

In a statement last night, the IMF urged Africa’s largest crude producer to take significant steps to diversify its oil-dependent economy.

Nigeria will need “major political adjustments” to address vulnerabilities that include a shortage of revenue and the payment of ballooning debts, the fund said after a staff visit. Forecasts for 2020 have been reduced from 2.5% to 2%, a figure well below population growth of around 2.6%.

“According to current policies, the prospects are difficult,” said the IMF. “The mission’s growth forecasts for 2020 have been revised to 2% to reflect the impact of lower international oil prices.”

Oil demand has declined in China due to the coronavirus epidemic, causing prices to drop by around 13% this year.

President Muhammadu Buhari has made diversifying the Nigerian economy from crude oil a priority since his first election in 2015. But the oil industry still provides more than half of the government’s revenue and 94% of its foreign exchange earnings, according to the IMF.

The Indian industrial group calls for government action to mitigate the effects of the virus

Amy Kazmin reports:

The Confederation of Indian Industry has warned that Indian companies will be hit hard by the deadly coronavirus outbreak, due to India’s high dependence on imported Chinese inputs for its production of items such as automobiles, electronics and pharmaceuticals.

In a long briefing released on Tuesday, the CII called on the government of Indian Prime Minister Narendra Modi to take steps to cushion the Indian industry from the supply shock and avoid potential job losses.

The coronavirus crisis has come while India is already struggling with a severe economic slowdown, where growth has plummeted for six consecutive quarters to only 4.5% in the July-September period.

In its information note, the CII stated that Indian companies have the ability to produce many of the products they had imported from China on national territory.

But he admitted that Indian companies are reluctant to invest to do so, to prevent China from getting back on track and that Indian producers find their goods uncompetitive.

“Companies setting up additional capacity to address supply shortages could face problems in the event of a relaunch in China,” said the CII. He appealed to the government to provide “a repurchase window to alleviate sales uncertainty in the event of a rebound in production in China.”

The report also called on New Delhi to restore the recent increases in import tariffs that have been imposed to promote domestic production. He said that the cost of goods imported from China is already set to rise rapidly due to the global shortage and that the industry cannot bear the costs of higher tariffs as well.

The CII also warned that many small businesses are likely to face shortages of working capital due to supply chain disruptions, and called for a one-time, three-month emergency on declaring stressed activities as underperforming. protect companies’ credit ratings if they are at risk.

It also urged the government to activate credit outlets to help Indian companies cope with the additional costs of disrupting the supply chain, both to invest in new capacity and to meet higher working capital requirements.

Tekmar’s earnings will be crushed by the Shanghai blockade

Tekmar’s shares lost up to 40% on Tuesday, while the London-listed tech group, suffering from the blockade in Shanghai and the breakdown of supply chains, warned that full-year profits were hit “materially” from the coronavirus epidemic in China.

The group, which supplies submarine cables and flexible pipe protection for the offshore energy market, now predicts that profits for the year ending March 31 will be “in line” with the previous 12 months. China accounts for around 10% of full-year forecast sales and around 20% of its outstanding supply chain commitments, the group said Tuesday.

“The disruption caused by the coronavirus outbreak in the group’s operations and performance was unpredictable and rapid, materially affecting the group in our crucial highly weighted fourth quarter period,” said President Alasdair MacDonald.

Tekmar shares have recently been 33% lower in early London trading.

The board stated on December 3, before the disease was detected, that the group was “firmly on track to meet expectations” for the full financial year 2020. This forecast included sales in China in the fourth quarter while some of the estimated sales costs were based on component prices from China.

Tekmar’s earnings per share for the full year 2019 reached 6.2p. The estimate of a broker, according to FactSet, has been reduced by the whole 2020 to 5.7 p, down from a previous estimate of 9.67 p in January.

All of the group’s plans to ship to China have been delayed and little information has been provided on when travel restrictions should be lifted. The supply of components from China has been interrupted while the group is able to obtain replacement components from Europe.

Tekmar’s Shanghai office, which serves the entire Asia-Pacific region, has been officially closed, as have many offices of its customers and suppliers.

“With the evolution of the situation in China and in the neighboring countries of the Asia-Pacific area, we are not yet able to assess the full impact of the virus on 2013 and we will provide further updates if necessary,” said MacDonald.

Singapore prepares stimuli to mitigate the impact of the virus

Stefania Palma in Singapore writes:

Singapore will launch a $ 6.4 billion ($ 4.6 billion) stimulus package to help the city state compensate for the fallout caused by the coronavirus – a huge program compared to the $ 230 million set aside during the epidemic of SARS in 2003.

The country will allocate $ 800 million mostly to the ministry of health as it continues to fight the virus. It will also initiate two aid plans totaling $ 5.6 billion, of which $ 4 billion is intended to protect jobs and help companies cope with operating costs and cash flow. The remaining $ 1.6 billion will help families cope with the cost of living.

“If necessary, we can and are ready to do more,” said Heng Swee Keat, Singapore’s finance minister.

“We must be prepared that the [outbreak’s] the economic impact could be worse than we expected, “said Heng. Monday reduced its 2020 growth forecast to -0.5-1.5 percent, down from 0.5 to 2.5 percent.

Investors are looking for security

Government bonds rose as investors moved to parts of the market that were considered safe in times of economic uncertainty.

The yield on the 10-year US Reference Treasury fell 5.1 basis points to 1.537 percent when investors moved into debt, while the 30-year yield fell below 2% for first time in two weeks. Yields on ten-year securities in France, Germany and the United Kingdom fell by three basis points each.

The Japanese yen, which attracts inflows during times of uncertainty, rose against the US currency, along with the Swiss franc.

“Markets seem positioned for a rapid rebound in economic activity and the risk that is emerging is that the rebound may turn out to be slower than expected,” said Derek Halfpenny, head of European market research at the Japanese bank MUFG.

EmoticonL’avvertimento sulle vendite di Apple colpisce le scorte europee

Le azioni europee sono state scoperte, mentre un avvertimento sulle vendite di Apple si è diffuso sui mercati globali e ha riaperto le preoccupazioni sull’impatto aziendale del coronavirus.

I principali mercati da Londra a Francoforte sono tutti scivolati, lasciando l’indice composito Stoxx 600 in calo dello 0,8 per cento.

Le aziende esposte alla produzione e alle linee di approvvigionamento di Apple sono state le più colpite, e il chipmaker austriaco AMS e Dialog Semiconductor, quotata a Francoforte, sono state le due principali aziende con le prestazioni peggiori in Europa, ciascuna con un calo del 4% circa.

L’indice Topix di Tokyo è sceso dell’1,3 per cento martedì, un settimo declino consecutivo, mentre l’indice Kospi di Seoul e l’Hang Seng di Hong Kong hanno perso entrambi l’1,4 per cento.

Fonte: Refinitiv

Il Motor Show di Pechino diventa l’ultimo evento ad essere rinviato a causa di un focolaio

Christian Shepherd riferisce da Pechino:

Il Motor Show di Pechino, il più grande evento nel calendario dell’industria automobilistica cinese, è stato posticipato mentre le case automobilistiche globali si preparano per l’approfondimento delle conseguenze di un focolaio di coronavirus nel più grande mercato automobilistico del mondo.

Gli organizzatori hanno dichiarato sui social media che lo spettacolo, che era stato programmato per iniziare il 21 aprile, sarebbe stato posticipato a una data successiva non specificata. Il governo della città di Pechino ha imposto misure severe per combattere la crisi della salute pubblica.

I marchi cinesi e globali di solito lanciano nuovi modelli di auto durante l’evento per iniziare un anno di vendite in Cina dopo la pausa delle vacanze di Capodanno lunare, che quest’anno è stata estesa come parte degli sforzi per combattere l’epidemia.

Il ritardo arriva dopo che l’associazione cinese dei produttori automobilistici (CAAM), un ente leader del settore, ha affermato che le vendite all’ingrosso di autoveicoli a gennaio sono diminuite di un quinto rispetto all’anno precedente, mentre le vendite di veicoli elettrici sono diminuite del 54%.

La settimana scorsa CAAM ha avvertito che il virus avrebbe innescato un “effetto farfalla” in tutto il settore, poiché l’epidemia colpisce la domanda dei consumatori e mantiene offline la produzione. A metà della scorsa settimana, circa il 30% dei produttori cinesi era tornato al lavoro, ha affermato.

L’avvertimento sulle vendite di coronavirus di Apple colpisce i titoli asiatici

L’avvertimento delle vendite di Apple si è increspato nei mercati asiatici dal Giappone alla Corea del Sud nell’ultimo segno del crescente costo aziendale e finanziario dell’epidemia di coronavirus.

L’indice Topix di Tokyo è sceso dell’1,3 per cento martedì, sulla buona strada per il settimo declino consecutivo, mentre l’indice Kospi di Seoul ha perso l’1,4 per cento. A Hong Kong, l’indice Hang Seng è sceso dell’1,5 per cento. Anche i futures che seguono i titoli azionari europei e statunitensi sono in solido rosso.

Gli investitori si sono spostati sul debito sovrano degli Stati Uniti, considerato un riparo durante l’incertezza economica, portando il rendimento del Tesoro a 10 anni in calo di 4,1 punti base all’1,54 per cento. Il rendimento a 30 anni è sceso di 4,6 pb all’1,993 per cento, scendendo al di sotto del 2 per cento per la prima volta in due settimane.

Anche la valuta cinese era sotto pressione. Il renminbi onshore è sceso dello 0,3 per cento, indebolendosi a Rmb7 rispetto al dollaro USA. La variante offshore, che commercia al di fuori della Cina continentale, è scivolata con un margine simile. Lo yen giapponese, che attira afflussi durante periodi di incertezza, è salito contro la valuta americana.

Lunedì la Apple con sede in California ha avvertito che “la fornitura mondiale di iPhone sarà temporaneamente limitata” a causa dell’epidemia di coronavirus e che le fabbriche gestite dai suoi fornitori in Cina riprendevano il lavoro più lentamente del previsto.

Le sale del Regno Unito hanno esortato a rivelare l’impatto del virus

L’autorità di regolamentazione contabile del Regno Unito ha sollecitato le società quotate a garantire che rivelino in modo completo tutti i rischi per le loro attività derivanti dallo scoppio del coronavirus.

Il Financial Reporting Council, che stabilisce il codice di governo societario del Regno Unito, ha detto alle società di “considerare attentamente” cosa devono dire agli azionisti quando definiscono i loro principali rischi e incertezze e se le loro attività e passività potrebbero essere state influenzate.

“Le aziende dovranno monitorare gli sviluppi e assicurarsi che stanno fornendo informazioni aggiornate e significative ai propri azionisti”, ha detto un portavoce.

La frase “coronavirus” è stata menzionata in sette annunci normativi sulla Borsa di Londra questa mattina, inclusi gli hotel InterContinental e i gruppi di prodotti BHP e Glencore.

Additionally, the FRC said it is discussing whether the virus outbreak is affecting the ability of audit firms to review business lines in China.

Second employee at Singapore’s DBS infected with Covid-19

Stefania Palma reports:

A second employee at DBS, Singapore’s largest bank, has tested positive for the virus.

The banker, who came in “close contact” with the first infected DBS employee, works in a “satellite office” that has been deep cleaned as per guidelines set by the ministry of health and the National Environment Agency, said DBS in a statement.

The employee is based in the office tower in Ngee Ann City, a shopping and commercial centre on Orchard Road, according to a person familiar with the situation. All staff working on the same floor have been evacuated and those who have been in close contact with the patient will be working from home for 14 days, as per the ministry of health’s guidelines, they added.

The affected team is “much smaller” than that linked to the first case, who was based in the bank’s head office and led to the evacuation of 300 people, they said.

The second case – a 35 year old Singaporean man – was placed in quarantine last week, DBS said. “We have also identified those who were in close contact with him, and are taking the same precautions as we did with the first case”.

Europe: what you missed

If you’re just waking up in Europe, here’s the latest coronavirus news

China reported 98 new deaths from coronavirus, taking the total in mainland China to 1,868 while the number of cases rose to 72,436 to the end of Monday. Both the number of deaths and of new cases were lower than the previous day.

Apple warned that coronavirus would cause its revenues for this quarter to fall short after Beijing delayed the return to work after the lunar new year to limit the spread of coronavirus.

That announcement from Apple rattled markets in Asia with shares in Asian Apple suppliers falling and the offshore renminbi weakened to Rmb7 to the dollar. Here’s more of our coverage.

India is planning to evacuate more of its citizens from Wuhan and with the plane used for the flight also set to deliver medical supplies.

South Korea’s president said his government will take “all possible measures” to support the economy following the negative effects of the coronavirus.

Singapore Airlines has cancelled flights across its network for dates as far away as the end of May as carriers face low demand amid coronavirus.

Singapore Airlines cancels flights as coronavirus hits demand

Singapore Airlines said it has cancelled flights to destinations across its network on weak demand amid coronavirus.

The airline and its regional carrier SilkAir will reduce flights to cities including London, New York, Tokyo, Sydney and Johannesburg for dates from March to the end of May. It will cancel 21 Singapore-London flights in May alone.

Singapore Airlines this month reduced flights to mainland China by suspending or cancelling routes to Chinese cities and said it would fly direct to San Francisco without a stop in Hong Kong.

India to deliver medical supplies to Wuhan

Amy Kazmin reports from New Delhi:

India will send a planeload of emergency medical supplies to Wuhan later this week to support China’s efforts to control the coronavirus, and will use the return flight to evacuate more of its citizens stranded in Hubei province, the Indian government has announced.

India had already evacuated around 650 of its citizens – on two special emergency flights – earlier in the outbreak, and sent them to special army-run quarantine centres to ensure they were not carrying the virus.
So far, none of those evacuated have tested positive, and many of the first load of evacuees – having served out their two- week quarantine – are being now being sent home.

The Indian embassy in China says it has been in touch with many Indian citizens still stranded in Hubei province who wish to return to India, and said some could be aided on the upcoming relief flight. The precise timing of the flight is yet to be confirmed.

Vikram Misri, India’s ambassador to China, had also said that subject to space and availability, New Delhi would be willing to evacuate citizens from its neighbours, and urged those interested to get in touch with the Indian embassy.

India has been gripped by images of agitated Pakistanis stranded in Hubei appealing to their government to help them get out, but Islamabad has refused, expressing confidence that Chinese authorities have the matter under control.

Islamabad’s unwillingness to help its citizens – mostly medical students – stranded in the virus-stricken region has prompted an outcry from their families, who have accused Pakistani Prime Minister Imran Khan’s government of being more concerned about potentially embarrassing a powerful ally than the plight of its own people.

Nepal sent a special plane to evacuate 175 of its citizens trapped in Wuhan this weekend.

However, it remains to be seen whether Delhi will assist stranded citizens of Pakistan, its nuclear-armed neighbour, with which it engaged in an intense military confrontation a year ago.

India has so far had three confirmed cases of coronavirus, all medical students returned from Wuhan for the lunar new year holiday.

South Korea’s Moon calls for ‘all possible measures’ to support the economy

Song Jung-a reports from Seoul:

South Korea’s President Moon Jae-in has called for “all possible measures” to support the coronavirus-hit economy, expressing concerns about supply chain disruptions and slowing exports to China amid the spread of the deadly virus.

The South Korean economy is feeling the pinch as its biggest exporters such as Samsung Electronics and Hyundai Motor have seen delayed parts shipments from China due to the new coronavirus outbreak. China takes in about a quarter of South Korea’s exports.

Mr Moon stressed that Asia’s fourth-largest economy is in an emergency situation and needs more stimulus measures to spur faltering corporate investment and domestic consumption.

“We shouldn’t quibble over whether anything is unprecedented or not, rather, we should take every possible measure we can think of on the table to deploy them,” Mr Moon told a cabinet meeting on Tuesday.

Mr Moon’s comments came a day after South Korea announced a Won420bn ($353m) emergency loan plan to support struggling airlines, shipping companies, travel agencies and retailers facing a liquidity crunch amid growing fears over the virus outbreak.

Seoul plans to send a presidential plane to Japan on Wednesday to evacuate 14 citizens on the virus-stricken cruise ship docked in Yokohama. The passengers are showing no symptoms of the virus. The plane will bring four South Koreans. It will also carry the spouse of one of them, who is a Japanese national.

So far, 31 South Koreans have been infected with the virus, of which 12 have fully recovered from the disease.

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China’s offshore renminbi weakens to Rmb7 against the dollar

China’s offshore yuan, which trades in major hubs outside the mainland, has weakened back to the Rmb7 to the dollar mark amid a decline in the price of riskier assets in Asia.

The currency was recently down around 0.2 per cent against the buck, with one dollar fetching just more than 7 units of the currency. The onshore variant fell by around the same margin to Rmb6.9964.

Investors pay close attention to China’s currency as something of a bellwether for the sentiment of traders around the world. Recently, when it has receded to Rmb7, it has inflamed sell-offs in other asset classes.

US Treasuries rally as shift away from risk picks up steam

US government bonds rallied on Tuesday as a shift away from riskier assets gained momentum in the Asian morning.

The 10-year Treasury yield fell 3.1 basis points (0.031 percentage points) to 1.55 per cent, with the two-year yield down 2.2 bps to 1.41 per cent. The fall in yield points to a rise in price for American sovereign debt.

Tuesday’s rally in the Treasury market comes amid a decline in equities bourses across Asia. Japan’s Topix was recently down 1.2 per cent, with South Korea’s Kospi declining 1.3 per cent. Hong Kong’s Hang Seng fell 1.3 per cent, with the CSI 300 gauge of mainland China stocks down 0.5 per cent.

China’s currency slipped 0.2 per cent against the US dollar in onshore trade. Japan’s yen climbed 0.22 per cent on the greenback. The currency typically rises during times of greater economic uncertainty as Japanese investors pull funds back into the domestic market.

Futures on Wall Street’s benchmark S&P 500 index fell by a more mild 0.3 per cent, with Nasdaq 100 futures slipping 0.5 per cent.

The moves came after Apple, the world’s largest technology company, warned it will miss its sales goal in the current quarter as the coronavirus outbreak disrupts its supply chain. It marked the latest sign of how manufacturers around the world have been affected by the public health emergency.

“Whereas the novel Coronavirus is only starting to appear in economic data, the human toll already is dramatic with disruption to human and business routine via quarantine, work closures, and mobility limitations,” Citigroup analysts said.

“There is uncertainty, not just about the epidemiological progress of the virus, but effects on the global economy.”

Asia Apple suppliers slip after warning from iPhone maker

Share prices for Apple suppliers in Asia fell after the Californian company warned that disruptions in China from the coronavirus will cause revenues to fall short in the current quarter.

Hong Kong-listed AAC Technologies, which supplies acoustic components to Apple, was down 4 per cent in early trading against a 1.1 per cent fall for the Hang Seng index. Taiwanese chipmaker Taiwan Semiconductor Manufacturing Co fell 1.7 per cent and Samsung Electronics and SK Hynix fell 2.1 per cent and 1.9 per cent respectively in South Korea.

Apple warned that “worldwide iPhone supply will be temporarily constrained” and that factories run by its suppliers in China have resumed work more slowly than expected.

The Chinese government has imposed restrictions on the movement of people and rules on when certain types of companies could restart work in a bid to contain the outbreak of the virus.

Gauging the weakness in China’s economy

Economists broadly expect China’s growth rate to cool sharply in the first quarter of this year — although the extent of the slowdown is the subject of debate.

With official activity data not due until next month, economists at Goldman Sachs have been tracking various measures that they reckon might shed light on the situation.

Traffic congestion

Congestion in 100 major Chinese cities typically picks up in the days following the lunar new year holiday. That has not been the case this year.


Source: Wind & Goldman Sachs

Coal consumption

Major electricity producers consumed 35 per cent less coal during the first 16 days of February than “normal seasonality would suggest”, Goldman said.


Source: Wind & Goldman Sachs

Property sales

Sales of property in 30 major cities remains very depressed relative to the normal uptick following the lunar new year.


Source: Wind & Goldman Sachs

Japanese stocks slide almost 1% after Apple sales warning

Japan’s equities market has come under pressure after Apple warned the coronavirus outbreak will cause it to miss its quarterly sales target.

The country’s Topix stock gauge dropped 0.8 per cent in morning dealings in Tokyo. It has fallen for seven-straight sessions in the longest losing streak since last May.

Makers of electronic appliances were the heaviest decliners on Tuesday, with the index tracking the sector down around 1.9 per cent. Manufacturers of precision devices and metals products were also under pressure.

Apple is the world’s biggest technology company and is seen as a bellwether for the sector and the companies that supply it.

Japan’s stock market had dropped on Monday after a report showed the country’s gross domestic product contracted in the fourth quarter of 2019 at an annualised 6.3 per cent rate in the wake of the consumption tax hike. Analysts are wary about how Japan’s economy, one of the biggest in the world, will perform in the current quarter given the heavy blow dealt to the region by the coronavirus outbreak.

Analysts at ABN Amro note that Japan and the eurozone are the two industrialised regions that are the “most exposed to China. “The share of exports to China in Japan’s total good exports is close to 20 per cent, and the share of exports to China in Japan’s GDP is around 3 per cent,” they said.

China says coronavirus death toll reaches almost 1,900

China reported 98 new deaths from coronavirus in the mainland to the end of Monday, taking the total to 1,868. There were 1,886 new cases to give a total of 72,436, according to the National Health Commission. Both the number of deaths and of new cases were lower than the previous day.

Apple warns over coronavirus disruption

Apple has warned that disruption in China from the coronavirus will cause its revenues to fall short in the current quarter, marking the second time in little over a year that weakness in China has forced the world’s most valuable technology company to issue a financial alert.

The California-based company said its factories were “ramping up more slowly than we anticipated had anticipated” after the Chinese government extended the lunar new year break and restricted the movement of people and when businesses could reopen.

Read more in our coverage here

Hubei reports 93 new coronavirus deaths

Hubei, the centre of the coronavirus outbreak in China, reported 93 new deaths to the end of Monday, down from the previous day’s tally of 100. The province’s health commission also reported 1,807 new cases, lower than that recorded for Sunday.

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