(Bloomberg) -- The Federal Reserve slashed interest rates to zero and will keep the level until the threat from the coronavirus has passed. Nations imposed more draconian restrictions on public gatherings.
Confirmed infections outside China now exceed 84,100, more than the 80,813 on the mainland. Cases jumped 20% in the U.K., which faced criticism for its approach to the virus. New York City’s schools will close this week.
Currencies are headed for more volatile swings, early trading in Asia shows. The yen retained gains after the Fed move, and New Zealand’s currency fell to the lowest since May 2009 after its central bank slashed the benchmark rate.
Key Developments:
- Cases top 166,000 worldwide, as deaths exceed 6,400
- Italy adds 368 deaths in one day, raising total to 1,809
- The U.S. reports 3,125 cases, 61 deaths
- Google (NASDAQ:GOOGL) to unveil a virus information site Monday
- Ohio closes all bars, restaurants
- Spain, Portugal close common border to tourists
Click VRUS on the terminal for news and data on the coronavirus and here for maps and charts. For analysis of the impact from Bloomberg Economics, click here. To see the impact on oil and commodities demand, click here.
Fed Cuts Main Rate to Near Zero (5 p.m. NY)
The Federal Reserve cut its benchmark rate by a full percentage point to near zero and will boost its bond holdings by $700 billion to cushion the U.S. economy from the coronavirus outbreak.
The Fed will keep interest rates near zero “until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals,” the Federal Open Market Committee said in a statement.
NYC to Close Schools (5 p.m. NY)
New York City schools will close this week, Governor Andrew Cuomo announced. Schools in Westchester, Nassau and Suffolk Counties will close tomorrow, and city schools will close later in the week, said Melissa DeRosa, secretary to the governor.
All the localities must provide food programs to those now receiving them, and childcare to essential workers. City officials must have a plan in place within 24 hours, DeRosa said.
Spain-Portugal Border Shut (4:30 p.m. NY)
Portugal and Spain will close their border to tourists, Portuguese Prime Minister Antonio Costa said. The border will remain open for goods and for cross-border workers. Costa said he expects the measure can take effect Monday and continue for more than a month to include the Easter holidays.
The Portuguese have voluntarily limited their movement and social contact, so it’s not necessary to adopt tougher lock-down measures, Costa said.
Ohio Shuts Bars, Restaurants (3:50 p.m. NY)
Ohio is closing all bars and restaurants indefinitely after reports of crowds still gathering as St. Patrick’s Day faces the limitations imposed by the spread of coronavirus. Carry-outs and delivery will still be allowed, Governor Mike DeWine announced at a press conference in Columbus.“This is a very, very crucial time,” DeWine said. “Delay means more people will die.”
Washington, D.C., ordered nightclubs and multi-purpose facilities to close, restaurants to remove bar seats and stop serving patrons who are standing. The district limited indoor gatherings to 250 people.
Travel Limits Roil Airports (3:15 p.m. NY)
Chicago’s O’Hare International Airport was among facilities overwhelmed this weekend with passengers, including many coming from Europe, who faced new screening measures.
As pictures of lines and stories from travelers were shared on social media, Illinois Governor J.B. Pritzker said the White House failed to prepare for the influx of returning passengers in response to President Donald Trump’s new travel restrictions.
New Zealand Cuts Rates (3 p.m. NY)
The New Zealand central bank slashed its benchmark interest rate by 75 basis points as strict border controls look set to tip the economy into recession. In an emergency move, the Reserve Bank cut its cash rate to 0.25% from 1% and said it will remain there for at least the next 12 months.
U.S. Airlines Slash Flights (2:50 p.m. NY)
American Airlines (NASDAQ:AAL) will slash long-haul international flights by 75% through early May as demand collapses and governments impose restrictions to slow the virus’s spread. Delta Air Lines (NYSE:DAL) further cut its international flights. United Airlines earlier said it would cut April domestic capacity 10% and international 20%, but warned additional reductions could follow.
South Africa Declares Disaster (2 p.m. NY)
South Africa declared a national state of disaster, closed 35 ports of entry, banned gatherings of more than 100 people and shut schools starting the middle of this week. Flights will be halted from Italy, Iran, the U.S., U.K. and South Korea, the government said.
President Cyril Ramaphosa in a televised speech discouraged citizens from non-essential domestic travel.
N.Y. May Be ‘Overwhelmed’ (1:45 p.m. NY)
New York Governor Andrew Cuomo warned that the state’s health-care system is about to be “overwhelmed,” but he stopped short of ordering schools or businesses to close.
Instead, he asked companies to close voluntarily and let employees work from home. Schools will remain open, he said, because many families rely on them for food and child care.
New York has 729 cases -- the most in the U.S. -- with three deaths.
Ireland Asks Pubs to Close (1:40 p.m. NY)
The Irish government asked pubs to close for at least two weeks after video of bars jammed with drinkers in defiance of guidelines appeared on social media. Industry groups say it’s impossible to police social-distancing guidelines.
The government also pleaded with citizens not to replace pub visits with house parties.
Europe Outpacing China at Peak (1:30 p.m. NY)
Europe is reporting more new cases each day than China did when the disease peaked in that country, the head of the World Health Organization said. Director-General Tedros Adhanom Ghebreyesus also said canceling sporting events can help slow the spread.
The situation will worsen in many countries before it improves, said Maria Van Kerkhove, a WHO epidemiologist. While the situation is improving in Asia, countries where the disease has peaked could experience relapses, she said.
SAS Idles 90% of Staff (1:15 p.m. NY)
Scandinavian airline SAS AB is idling up to 10,000 employees, or 90% of staff, to cope with fallout from the coronavirus and related government measures that have restricted international air travel.
The airline will also cancel most flights staerting Monday, according to a statement. SAS said it will maintain certain routes in order to enable flights to return from various destinations.
Dutch Schools, Bars to Close (1:15 p.m. NY)
The Dutch government ordered schools, gyms, restaurants and bars to close until April 6. Suspending classes puts the Netherlands in line with most other European countries, though it’s a reversal from Prime Minister Mark Rutte’s insistence last week that schools will stay open.
Manhattan Project Approach Urged (12:20 p.m. NY)
U.S. hospitals are preparing for a surge in patients as testing becomes more prevalent, revealing the extent of Covid-19’s spread, which led one administrator to urge more action.
“We need to think about this in almost like a war-like stance,” Peter Slavin, president of Massachusetts General Hospital in Boston, said on NBC’s “Meet the Press.”
He urged the government to wage a Manhattan Project-type effort, as it did in World War II on the atomic bomb, to spur the health-care industry to make more surgical masks, eye protection gear and gowns.
Portugal Limits Crowds (12:10 p.m. NY)
Portugal is banning events with more than 100 people, Internal Administration Minister Eduardo Cabrita said in a broadcast on SIC Noticias. The government had already blocked events with more than 1,000 people.
U.K. Cases Rise 20% (11:43 a.m. NY)
The U.K. said 1,372 people have tested positive for coronavirus, up from 1,140 a day earlier. An additional 14 deaths brings the total to 35. Health Secretary Matt Hancock defended the government, which hasn’t closed schools or halted mass gatherings as have many other nations.
Hash tags including #CloseTheSchoolsNow and #lockusdown were trending on Twitter in the U.K. Sunday. People over age 70 will be asked to stay home in “the coming weeks,” Hancock told Sky News.
Health Insurers Drop Copays (11:20 a.m. NY)
U.S. health insurers are dropping coronavirus testing copayments and requirements that treatments be approved in advance. The America’s Health Insurance Plans trade group posted details of the emergency steps taken related to Covid-19. Insurers include Aetna (NYSE:AET), Anthem (NYSE:ANTM), the 36 Blue Cross Blue Shield Association plans, Cigna (NYSE:CI), and Humana (NYSE:HUM).
Nike Shuts Stores for 2 Weeks (10:45 a.m. NY)
Nike Inc (NYSE:NKE). will close all U.S. and western Europe retail stores through March 27 to help slow the outbreak. The closures, which include Canada, Australia and New Zealand, will take effect Monday. Nike will continue to pay employees during the shutdown, the company said.
The company said Nike-owned stores in South Korea, Japan and most of China -- which were closed in February -- are currently open.
Europe Cases Surge (9:09 a.m. NY)
Spain’s diagnosed cases of the coronavirus jumped 35% to 7,753 on Sunday and the death toll more than doubled to 288, the Health Ministry said. In Switzerland, 2,200 cases marked a 62% increase. The number of deaths in the Netherlands rose by eight to 20, while confirmed cases increased by 176 to 1,135, according to a daily update from the RIVM National Institute for Public Health and the Environment on Sunday. Several countries cautioned that fewer tests are being performed as more people fall ill.
Mnuchin Sees No Recession (9:03 a.m. NY)
Treasury Secretary Steven Mnuchin said he doesn’t expect the coronavirus pandemic to tip the U.S. economy into recession, even though growth will slow. “Later in the year, obviously the economic activity will pick up as we confront this virus,” Mnuchin said Sunday on ABC’s “This Week.”