Chicago Mulls Delay Amid Protests; U.S. Cases Slow: Virus Update

(Bloomberg) --

Chicago, hard-hit by violent protests over a police-custody death, may delay the start of its reopening. U.S. coronavirus cases rose 1.1%, the slowest pace in five days, as deaths inched up 0.7%.

Europe’s virus hot spots are further unwinding strict measures that led to the biggest economic slide since World War II, as scientists warn against going too fast. Isreal is starting antibody tests.

Stocks in Asia looked set for a mixed start. Indonesia is letting towns that limited the spread of Covid-19 start to reopen.

Key Developments:

• Virus Tracker: Cases top 6.1 million; deaths exceed 371,000
• Protests hammer U.S. cities struggling to open after lockdown
• Testing on kids is a nervous next step on way to vaccine
• Lockdowns push baby boombers to embrace online banking
• Emerging markets grasp for signs May’s resilience will last
• Toronto’s underground city faces bleak future with bankers MIA
• Pandemic opens door to ideas for a better economy

Subscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click VRUS on the terminal for news and data on the coronavirus. For a look back at this week’s top stories from QuickTake, click here.

EU Tests Business Tax for Virus Fund (5:30 p.m. NY)

The European Union’s budget commissioner wants member states to back new taxes, including a levy on big companies for access to the single market, to help fund the recovery from the economic effects of the coronavirus, the Financial Times reported.

In an interview, Commissioner Johannes Hahn said the tax would be part of a package to cover the EU’s proposed 750 billion euro ($675 billion) fund to help with rebuilding. Hahn said there was no alternative but to give the European Commission new measures of collecting revenue to service debt it would take on under the recovery plan.

Among the obstacles to be overcome is opposition among so-called frugal countries -- Austria, Denmark, the Netherlands and Sweden, the newspaper said. Hahn is from Austria.

U.S. Sends Brazil Drug Touted by Trump (4:30 p.m. NY)

The U.S. is sending Brazil 2 million doses of hydroxychloroquine, a malaria drug touted by President Donald Trump, and 1,000 ventilators, the White House said.

The drug will be used by Brazil’s nurses, doctors, and health-care professionals to fight Covid-19 and to treat Brazilians who become infected. The Food and Drug Administration said the drug should be used in a hospital setting.

The two countries will cooperate on controlled clinical trials to help evaluate the safety and efficacy of the drug for both prophylaxis and the early treatment of the coronavirus, the White House said.

U.S. Cases Rose 1.1%, Slowest Since May 26 (4 p.m. NY)

U.S. cases increased 1.1% from the same time Saturday, to 1.78 million, according to data collected by Johns Hopkins University and Bloomberg News. The national increase was below the average daily increase of 1.3% over the past week, and the lowest since May 26. Deaths rose 0.7% to 104,081.

• New York reported 1,110 new cases, for a total of 370,770, with 57 new deaths, to total 23,905. The state had 299 daily deaths on May 2 and 799 in early April.
• New Jersey had 868 new cases for a total of 160,445 and 66 deaths, raising the total to 11,698, Governor Phil Murphy said.
• California reported 3,705 new cases, the biggest one-day rise, to reach a total of 110,583, while new deaths fell for a third day, to 57, for a total of 4,213.
• Pennsylvania had 511 new cases, bringing the statewide total to 71,926, and 18 new deaths for a total of 5,555.
• Maryland reported 763 new cases, for a total of 52,778, with 21 deaths, for a total of 2,411, as Governor Larry Hogan said the rate of positive cases fell to 10.9% from a 26.9% peak on April 17.

Chicago Mulls Delay of Reopening (3:15 p.m. NY)

Chicago may postpone its partial easing of the Covid-19 shutdowns this week after violent protests over the death of George Floyd left devastating wreckage, Mayor Lori Lightfoot said Sunday.

The city was set to start reopening on Wednesday then add more city services and some parks on June 8, but Lightfoot said she’s consulting with the commissioner of public health, police superintendent and others to make a determination on the plan.

Access to Chicago’s downtown and central business district is restricted, and public transit into the loop has been suspended.

France Deaths Rise (2:50 p.m. NY)

Lmbnrance’s new deaths increased by 31 to 28,802 on Sunday, based on hospital data, with reporting of nursing-home fatalities delayed to Tuesday. New cases climbed by 257 to 226,155.

Europe’s Hot Spots Ease Lockdowns (2 p.m. NY)

As coronavirus death tolls stabilize in some European countries such as Italy, new cases continue to rise steadily elsewhere, particularly in the U.K. Still, governments are under pressure to let shops, factories and services reopen as the European Commission predicts the virus will wipe out 7.7% of the economy this year.

The U.K. will let some schools, outdoor markets and car showrooms open on Monday under social-distancing guidelines, along with some competitive sports, including horse racing. Italy, with the world’s third-highest death toll, is also moving with caution after protests supporting the lifting of restrictions erupted in Rome and Milan.

Europe’s biggest economy, Germany, is only beginning to ease curbs but is planning on holding the world’s largest book fair in October under a strict hygienic regime. Greece will allow visitors from more nations to visit the country from June 15.

Israel Starts Antibody Testing (1:50 p.m. NY)

Israel began serological testing for coronavirus, health ministry officials said, amid concerns a new wave of the outbnreak may be starting. The first tests were conducted on foreign workers, and will soon expand to the general population, the officials said. The tests determine how much of the population has already been infected.

The country reported 53 new cases, bringing the total to 17,071, including 285 fatalities. New infections rose following the recent easing of lockdown restrictions.

China Sends Masks, Tests to Africa (12:51 p.m. NY)

China will supply as many as 30 million coronavirus test kits, 10,000 ventilators and 80 million masks a month to Africa to help deal sith the pandemic, South African President Cyril Ramaphosa said in a briefing to reporters broadcast on online Sunday.

Ramaphosa held talks with Chinese President Xi Jinping about securing the supplies last week, he said. State-owned carriers South African Airways, Ethiopian Airlines Group and Kenya Airways Plc will deliver the shipments.

Africa has 142,289 cases, with 4,084 deaths from the virus, according to data from the Africa Centre for Disease Control & Prevention. The continent has experienced shortages of diagnostic equipment and therapeutic medical supplies.

N.Y. Daily Deaths Fall to 56 (12:20 p.m. NY)

New York reported 56 new deaths, Governor Andrew Cuomo said Sunday at a press briefing. It’s the sixth straight day with under 75 fatalities.

“This reduction in the number of deaths is tremendous progress from where we were,” Cuomo said in Albany. “We have gone through hell and back, but we are on the other side.”

The governor noted daily deaths peaked at almost 800 in early April.

Italy Extends Trend of Fewer Cases (12:05 p.m. NY)

Italy’s new cases remained on a declining trend on Sunday, with 355 more people affected, down from 416 a day earlier. Daily deaths were 75, down from 111 on Saturday. A total of 33,415 fatalities have been reported, with 16,112 -- 48% -- in Lombardy, the region around Milan that was one of the original virus epicenters in Europe.

The government has said improving data means it will be possible to open borders and lift a ban on inter-regional travel on Wednesday. Some regional authorities vow to keep borders closed to people from regions with high case levels, like Lombardy, the area around Milan, which accounts for 38% of total cases in Italy.

Spain Reports 93 Cases (11:55 a.m. NY)

Spain’s cases increased by 93, to 239,429, in the past 24 hours, the health ministry said. Total fatalities rose to 27,127.

NYC Finance Jobs Tested (11:30 a.m. NY)

New York City’s finance industry won’t recover from the devastation wrought by Covid-19 until 2026, according to an analysis by software firm ThinkIQ that ranks U.S. employment markets.

The region lost about 8% of its finance jobs this year, down from a peak of more than 800,000 in August. Coronavirus isn’t the culprit in all of the cuts. But the lockdown to stem the sppread caused a domino effect on everything from rents to mortgage payments.

ThinkIQ predicts employment will be almost back to 2019 levels in six years. Employment in the leisure and hospitality arena is to reach about 90% of its 2019 level by 2026, the latest year in the forecast.

Protests May Spur Cases: Governor, Mayor (11:15 a.m. NY)

Maryland Governor Larry Hogan and Atlanta Mayor Keisha Lance Bottoms said street protests over George Floyd’s death in police custody could spark more Covid-19 infections.

“When you put hundreds or thousands of people together in close proximity, when we have got this virus all over the streets, is -- it’s not healthy,” Hogan said on CNN’s “State of the Union. “Two weeks from now across America, we’re going to find out whether or not this gives us a spike and drives the numbers back up again.”

On the same broadcast, Bottoms said: “I am extremely concerned when we are seeing mass gatherings, and we know what’s already happening in our community with this virus, if we’re going to see the other side of this in a couple of weeks.”

Washington Mayor Muriel Bowser on NBC’s “Meet the Press” said: “I’m concerned that we have mass gatherings in our streets when we just lifted a stay-at-home order and what that could mean for spikes in our coronavirus cases later.”

Sweden Has No New Deaths (10:40 a.m. NY)

Sweden has reported no new deaths from Covid-19 for the first time since March 13. The total number of deaths remained at 4,395 on Sunday, according to the public health agency. While a welcome development for a country that continues to face international scrutiny for its outlier response to the pandemic, weekend figures such as these have been prone to substantial revisions upward. “As usual, there is some lag in reporting,” the health agency’s Henrik Josefsson said in an article by Swedish newspaper Aftonbladet.

Egyptian Lawmakers Test Positive (10:29 a.m. NY)

Five Egyptian lawmakers have tested positive for the coronavirus, parliament said Sunday, as the number of confirmed cases in the North African nation continues to rise. Egypt, which reported 1,367 new cases on Saturday, has closed cafes, sports clubs and gyms, enacted a night-time curfew and made wearing face masks mandatory in public to stem the spread of the virus.

South Africa’s ANC Plans to Spur Growth (10:16 a.m. NY)

The head of economic transformation in South Africa’s ruling party proposed a range of measures to bolster the economy, from encouraging the use of pension funds and the central bank to finance infrastructure spending to the creation of a state bank and pharmaceutical company.

Enoch Godongwana’s recommendations to the African National Congress come as the government tries to revive an economy devastated by the coronavirus pandemic.

“The Covid-19 shock is posing unprecedented challenges, the economic crisis entailed by the pandemic is unique,” Godongwana said in the May 22 document seen by Bloomberg. “Globally, central banks have reverted to their original role as bankers to their governments.”

Emirates to Cut Jobs as Planes Grounded (10:04 a.m. NY)

Emirates Group said it will be forced to cut jobs as the operator of the world’s largest long-haul carrier seeks to reduce costs after the coronavirus pandemic grounded air travel. It didn’t say how many jobs will be lost.

The company has “come to the conclusion that we unfortunately have to say goodbye to a few of the wonderful people that worked with us,” according to a statement distributed by Dubai’s media office. “We continuously are reassessing the situation and will have to adapt to this transitional period.”

Portugal Tests Workers in Lisbon Region (10 a.m. NY)

Portugal reported 297 new coronavirus cases on Sunday, staying below 300 for a second day and taking the total to 32,500. New cases have mostly been in the greater Lisbon area. The government is testing people working in specific activities in the region where there have been new clusters, such as construction, Health Minister Marta Temido said at a press conference in Lisbon on Sunday.

Spain to Seek Final Emergency Extension (9:08 a.m. NY)

Spanish Prime Minister Pedro Sanchez said he will ask lawmakers to approve a final extension of the country’s state of emergency until June 21.

Parliament will vote on Wednesday on Sanchez’s proposal. The premier has argued that the measure, which allows the government to limit citizens’ movement and impose other restrictions, has allowed the administration to quell the virus.

Pope Addresses Faithful in St. Peter’s Square (6:40 a.m. NY)

Pope Francis addressed people in St. Peter’s Square for the first time since Italy’s lockdown began in March. A few hundred people attended in small groups standing well apart, down from tens of thousands in pre-pandemic times, the Associated Press reported.

Almost 100,000 Filipinos Stranded Overseas (6 a.m. NY)

The number of Filipino workers stranded across the world swelled to almost 100,000 as of Friday after commercial flights were halted due to the pandemic, according to the labor department.

About 85% of the 98,615 citizens stuck overseas are in the Middle East, while the remainder are in Europe, the U.S. and other Asian countries, according to a statement.

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