As Criticism Mounts, Trump Quarantines Europe

(Bloomberg) --

Europeans woke up this morning to a diminished world outlook.

Donald Trump’s decision to curtail travel from Europe for 30 days effectively puts the U.S. off limits for a continent of 450 million people. The president's prescriptions in his address for tackling the spread of the virus within the U.S. left investors spooked.

Setting aside the medical grounds for the action, the political message it sends is unmistakable, if consistent: seal the border and keep out foreigners. Trump blamed the European Union for failing to make sufficient restrictions on China early enough, allowing Covid-19 to spread to the U.S.

Europe, which had no forewarning, now joins China, South Korea and Iran in being subject to U.S. constraints. The ban doesn’t apply to American citizens. Neither does it extend to the U.K., which left the EU on Jan. 31 and was never part of the passport-free Schengen border system that covers 26 mainly EU members.

With such a blanket ban (outbreaks in some EU states are still relatively small), Trump may not endear himself to Europeans, whose confidence in his leadership is already among the lowest in the world. Even in an election year, he can surely live with that.

It doesn’t make the travel restriction any less shocking, however.

As it ripples across the globe, the coronavirus is becoming a new front in the post-Cold War battle for hearts and minds. Trump’s move pushes Europe that little bit closer to China.

Global Headlines

Emergency action | Italy suspended a way of life by closing its usually vibrant restaurants and cafes as it intensifies a nationwide lockdown to battle Europe’s biggest coronavirus outbreak. In the U.K., Prime Minister Boris Johnson will likely announce measures such as school closings to slow the spread of the virus in recognition that it can no longer be contained.

• Read here about Iran’s request to the IMF for $5 billion to help fight the coronavirus.

Democrats’ plan | House Democrats unveiled their own multibillion-dollar response to the economic dislocations caused by the coronavirus outbreak. The legislation, which Speaker Nancy Pelosi plans to hold a vote on today, would provide emergency paid sick leave, enhanced unemployment benefits, and free coronavirus testing. The Republican-controlled Senate isn’t likely to consider its own plan until it returns from a recess scheduled for next week, and finding consensus between the two chambers could be difficult.

Deadly strike | Three people including two Americans in the U.S.-led military coalition were killed and about a dozen wounded in a rocket attack against a base in Iraq yesterday. U.S. Secretary of State Michael Pompeo and U.K Foreign Secretary Dominic Raab held phone talks on the issue and demanded those responsible “be held accountable,” according to a U.S. statement.

Vanishing glaciers | Global warming is disturbing water cycles on the roof of the world, and in unpredictable ways, Archana Chaudhary and Faseeh Mangi report. While the main nations at risk — India, Pakistan, China and Bangladesh — should be cooperating to mitigate the impact on hundreds of millions of people who depend on water from the mountains for survival, the opposite is happening. Water is becoming weaponized as a result.

Border backing | The U.S. Supreme Court opted to let the Trump administration keep enforcing a rule that has made 60,000 people wait in Mexico while they seek asylum. The action suggests the justices are likely to uphold the Migrant Protection Protocols, also known as the “remain in Mexico” program, should they take up the challenge directly on the policy at some point.

What to Watch

• European Central Bank President Christine Lagarde will reveal today how the ECB will use monetary tools to try to prevent the coronavirus outbreak from sparking a repeat of the 2008 financial crisis.
• Plans by U.K. Chancellor of the Exchequer Rishi Sunak to streamline regulation of financial-services firms may risk raising EU concerns that Brexit will allow London to reduce oversight of the industry.
• The oil price crash means Nigeria's central bank won't be able to maintain the naira’s level against the dollar for much longer and may have to devalue the currency, investors and analysts say.

Tell us how we’re doing or what we’re missing at balancepower@bloomberg.net.

And finally … The coronavirus is also wreaking havoc in the global sports and entertainment industries. Oscar winner Tom Hanks announced he and wife Rita Wilson have the virus in Australia, where he’s shooting a movie. The National Basketball Association suspended its season after a player tested positive, and the U.S. National Collegiate Athletic Association said its “March Madness” basketball tournament will be played without fans. Doubt is also being cast over this month's start of India's $6.7 billion cricket league. The U.K. may order all soccer clubs to play Premier League and other matches in empty stadiums as soon as today, The Times of London reported.

--With assistance from Karl Maier and Ruth Pollard.

To contact the editor responsible for this story: Kathleen Hunter at khunter9@bloomberg.net, Anthony Halpin

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