Wednesday Morning Briefing: U.S. spending blitz; EU "tele-summit"

Coronavirus

U.S. spending blitz; EU "tele-summit"

The big policy move of the day will come later in the United States when the Senate will vote on a $2-trillion package, with the House of Representatives expected to follow suit soon after. That came after U.S. senators and Trump aides finally reached an agreement on a massive economic stimulus bill to alleviate the economic pressure of the coronavirus outbreak.

The European Union is inching towards a coordinated support package of its own, and on top of those launched by individual capitals. Euro zone finance ministers have agreed governments can apply for a precautionary credit line worth some 2% of their GDP from a joint EU bailout fund: the final green light is due at a "tele-summit" of EU leaders on Thursday.

Treat with caution: rocketing stocks not cause for comfort

Those pining for a bottom to the gut-wrenching stock market selloff may be disappointed to learn that mega one-day rallies, like the ones seen since Tuesday, are typically not the start of a durable recovery.

Of the twenty past instances when the S&P rallied 8% or more in a single day, thirteen of them took place when stocks were in the embrace of a bear market.

Your country needs you

Within hours of the appeal being launched, over 170,000 people have come forward as volunteers to help Britain's National Health Service tackle the coronavirus outbreak.

"At times of crisis people come together," Stephen Powis, the national medical director of NHS England, told BBC TV. "This is a health emergency and we can all play a role."

Britain had called for 250,000 volunteers to deliver food and medicines, provide transport for patients and supplies, and to telephone those who are becoming lonely because of self isolation. The NHS is facing a big resources crunch that will only get worse as the virus spreads.

The spread

There are over 420,000 cases of coronavirus reported across 196 countries, according to a Reuters tally at 0200 GMT on Wednesday.

Almost 19,000 deaths are linked to the virus.

Italy reported over 5,000 infections in the past day, and total infections are now almost 70,000. Italy will overtake China's case load of 81,000 within days if the rate of infection continues at this pace.

The United States now has the third-highest number of cases globally, after it added almost 11,000 cases in the past day. The WHO warned it could become the virus' new epicenter.

Cases in India crossed 500 for the first time on Tuesday, as the world's second-most populous country began a three-week lockdown.

Stop press: Vatican daily halted

The Vatican daily L'Osservatore Romano, which Pope Francis has jokingly called "the party newspaper," has suspended printing for only the third time in nearly 160 years.

The paper, which was founded in 1861, will continue publishing online and most of its staff of about 60, including 20 journalists, will work from home, editor Andrea Monda said.

The paper was not published on Sept. 20, 1870, when forces fighting for Italian unification conquered Rome and publication was also suspended for a period in 1919 due to labour unrest and other difficulties in Italy after World War One.

Ten copies will continue to be printed. They are for Pope Francis, former Pope Benedict, a few top officials and several to be archived for the historical record.

Keep up with our coronavirus coverage and interactive graphic tracking the spread

Prince Charles, the 71-year-old heir to the British throne, has tested positive for coronavirus but is in good health and is now self isolating in Scotland.

As Brazil’s largest city went into lockdown, President Jair Bolsonaro took aim at the “hysteria” over the coronavirus and urged that life must continue and jobs be preserved.

In a global coronavirus pandemic that has infected about 420,000 people and killed nearly 19,000, delivery drivers have become as essential as first responders, providing food and other basics for millions of people who are isolating themselves under government stay-home directives.

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World

Istanbul prosecutor’s office said it had prepared an indictment against 20 suspects over the killing of Saudi journalist Jamal Khashoggi, including the former deputy head of Saudi Arabia’s general intelligence and a former royal adviser. Khashoggi’s killing in the Saudi consulate in Istanbul in October 2018 caused a global uproar, tarnishing the image of Saudi Arabia’s de facto ruler Crown Prince Mohammed bin Salman.

Gunmen and suicide bombers raided a Sikh religious complex in the Afghan capital of Kabul on Wednesday, killing 25 people before security forces killed all of the attackers, the government said. .The Islamic State militant group claimed responsibility for the attack in a statement. Sikhs have been the target of attack by Islamist militants before in South Asia.

Australia called for the immediate release of Chinese-Australian writer Yang Hengjun after China formally indicted him of espionage, with Foreign Minister Marise Payne saying he continued to be held in “unacceptable” conditions. The writer’s detention had strained ties already soured by Australia’s decision to ban Chinese technology equipment maker Huawei from its 5G broadband network.

The speaker of Israel’s parliament, an ally of Prime Minister Benjamin Netanyahu, resigned, sharpening a battle with the Supreme Court over its concerns that democracy could be a casualty of the coronavirus crisis. Yuli Edelstein’s resignation could facilitate plans by the opposition to fast-track legislation that would bar Netanyahu, as an indicted suspect in three corruption cases, from forming a new government.

Business

Futures rise as Washington reaches deal on $2 trillion aid package

U.S. stock index futures rose, putting Wall Street on course to extend its massive bounce from the previous session, as Washington reached a deal on a $2 trillion stimulus package to help ease some economic pain from the coronavirus pandemic.

1 min read

U.S. automakers to extend shutdown into April

Detroit’s Big Three automakers plan to extend a current shutdown of vehicle production in North America into April as the coronavirus pandemic continues, people briefed on the matter said Tuesday.

3 min read

Exclusive: Boeing plans 737 MAX production restart by May

Boeing plans to restart 737 MAX production by May, ending a months-long halt triggered by a safety ban on its best-selling jet after fatal crashes, people familiar with the matter said on Tuesday.

3 min read

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