Oil bounces 8% on stimulus hopes, virus slowdown in China

Oil prices bounced 8% on Tuesday from the biggest one-day rout in nearly 30 years, as investors eyed the possibility of economic stimulus amid a price war between Russia and Saudi Arabia and as new virus cases slowed in China.

President Donald Trump on Monday said he will be taking “major” steps to gird the U.S. economy against the impact of the spreading coronavirus outbreak and will discuss a payroll tax cut with congressional Republicans on Tuesday.
Brent crude futures rose by $2.85, or 8.3%, to $37.21 a barrel by 0605 GMT, while U.S. West Texas Intermediate (WTI) crude gained $2.46, or 7.9%, to $33.59 a barrel.
Both benchmarks plunged 25% on Monday, dropping to their lowest since February 2016 and recording their biggest one-day percentage declines since Jan. 17, 1991, when oil prices fell at the outset of the U.S. Gulf War.
Trading volumes in the front-month for both contracts hit record highs in the previous session after a three-year pact between Saudi Arabia and Russia and other major oil producers to limit supply fell apart on Friday.
“In times of turmoil, nothing is more important in restoring confidence than the government appearing calm and in control of the situation, how tenuous that control may be,” said Jeffrey Halley, senior market analyst at broker OANDA in a note.
Asian shares bounced and bond yields rose from historic lows as speculation of coordinated stimulus from global central banks and governments calmed panic selling.
Sentiment was also lifted after Chinese President Xi Jinping visited Wuhan, the epicenter of the coronavirus outbreak, for the first time since the epidemic began, and as the spread of the virus in mainland China sharply slows.
China, the world’s second largest oil consumer, is trying to get people in hard-hit Hubei province back to work by using a mobile phone-based monitoring system that will allow people to travel within the province.
Crude was also supported by hopes for a settlement to the price war and potential U.S. output cuts, although analysts warned gains may be temporary as oil demand continues to be hit by the economic impact of the coronavirus outbreak which has spread beyond China and caused Italy to be under lockdown.
U.S. shale producers rushed to deepen spending cuts and could reduce production after OPEC’s decision to pump full bore into a global market hit by shrinking demand due to the coronavirus outbreak.
“When you look at the leverage the industry is in, at prices of around $30, it’s not profitable,” said Jonathan Barratt, chief investment officer Probis Group.

“Saudis and other Middle Eastern producers have their budgetary constraints, Russia is starved for cash and the breakeven for .. shale has to be around $50 a barrel. So the dynamics of all those put together will mean they will come to an agreement somewhere.”
On the demand side, the International Energy Agency said oil demand was set to contract in 2020 for the first time since 2009.
https://www.reuters.com/article/us-global-oil/oil-bounces-8-on-stimulus-hopes-virus-slowdown-in-china-idUSKBN20X02D

Trump has not been tested for coronavirus – White House

U.S. President Donald Trump has not been tested for the coronavirus, the White House said on Monday, though at least two lawmakers with whom he has recently come into contact have announced they were self-quarantining after attending a conference with a person who had tested positive for the virus.
“The President has not received COVID-19 testing because he has neither had prolonged close contact with any known confirmed COVID-19 patients, nor does he have any symptoms. President Trump remains in excellent health, and his physician will continue to closely monitor him,” White House spokeswoman Stephanie Grisham said in a statement, referring to the acronym describing the virus.
https://www.reuters.com/article/us-health-coronavirus-trump-testing/trump-has-not-been-tested-for-coronavirus-white-house-idUSKBN20X06F

Biden, Sanders eye changing campaign plans amid coronavirus outbreak

Democratic presidential candidates Joe Biden and Bernie Sanders said on Monday they were consulting with public health experts about coronavirus risks in planning their next campaign moves, as election officials in upcoming primary states urged people to consider voting early.

Neither Sanders, a senator from Vermont, nor Biden, the former vice president, has called off a major rally because of the outbreak that has sickened more than 110,000 people and killed almost 4,000 globally, although public health officials have urged people at risk for contracting the disease to avoid large gatherings.
There have been 605 confirmed cases in the United States, with 22 deaths.
The winner of the Democratic nomination will take on Republican President Donald Trump in the Nov. 3 general election. Trump has said he would not stop holding campaign rallies.
“Every organization in America is taking a hard look at what the coronavirus means for their operations, and yes, that’s true of our campaign, as well,” Sanders told a coronavirus roundtable in Michigan, one of six states that vote on Tuesday in the next round of the state-by-state nominating competition.
“We do not hold a rally without first conferring with local public health officials.”
Biden told NBC on Monday he would consider calling off rallies if health authorities warned they were too risky
“I’m looking to the CDC for advice on that,” Biden said, referring to the U.S. Centers for Disease Control and Prevention. “We’re going to follow the recommendations of the experts … and if they conclude that there shouldn’t be big indoor rallies, then we’ll stop big indoor rallies.”
At a rally in Detroit on Monday, Biden’s campaign provided hand sanitizer to attendees and press.
A “Women for Trump” bus tour set to be led by the president’s daughter-in-law, Lara Trump, was canceled on Monday, because of scheduling issues, his campaign said. The New York Times reported that sources close to the campaign said the cancellation was spurred by concerns over the coronavirus.
Several of the states holding nominating contests in coming days have adopted measures aimed at protecting voters from contracting or spreading the virus.
Florida’s government urged voters to consider voting early for its March 17 Democratic presidential nominating contest, and Arizona braced for the possibility of poll workers staying home that day.
In Michigan, which votes on Tuesday, officials told poll workers to step up plans to sanitize voting booths and other equipment. Washington state – the hardest-hit state in the country – caught a break because its Tuesday contest is vote-by-mail.

CANCELLATIONS

Fears of the spread of the virus have led officials to cancel events and conferences across the country, including a planned Saturday event by Democrats in Washington state.
Arizona officials are bracing for the possibility that poll workers will not show up on March 17 because of illness or fear. They are combing through a statewide volunteer database to identify potential replacements if needed, according to the Arizona Department of State.
In Cook County, Illinois, which includes Chicago, officials are seeking the power to extend voting hours on March 17, reassign early voting locations and even change voting days, said Frank Herrera, a spokesman for the county clerk’s office.
Florida, the nation’s third most-populous state and home to a large population of elderly people, has 19 confirmed cases of the virus and has declared a state of emergency.

State voters who have symptoms can designate someone to pick up their absentee ballots up until Election Day, Laurel Lee, Florida’s secretary of state, wrote on Twitter on Monday.
Florida authorities have emailed local election officials recommendations from the CDC on how to prepare polling places amid the spread of the virus. The recommendations include advising poll workers to stay home if they feel ill and steady cleaning of voting locations throughout the day.
In Orlando, Florida, a forum for the presidential candidates that had been scheduled for Thursday was canceled because of coronavirus concerns, said Carolyn Bobb, a spokeswoman for the AFL-CIO.
https://www.reuters.com/article/us-health-coronavirus-usa-election/biden-sanders-consider-changing-campaign-plans-amid-coronavirus-outbreak-idUSKBN20W2PN

Mnuchin promises to use ‘all of our tools’ amid coronavirus outbreak

The Trump administration scrambled on Monday to assure Americans it was responding to a growing coronavirus outbreak as stock markets plunged and top health officials urged some people to avoid cruise ships, air travel and big public gatherings.

As worries over the virus deepened, the Dow fell a record 2,000 points when trading opened and the S&P 500 posted its largest single-day percentage drop since December 2008, the depths of the financial crisis. A plunge in oil prices contributed to fears of a looming recession.

https://www.marketscreener.com/S-AMP-P-500-4985/news/Mnuchin-promises-to-use-all-of-our-tools-amid-coronavirus-outbreak-30133999/

Trump vows ‘major’ steps to aid U.S. economy amid coronavirus rise

U.S. President Donald Trump on Monday said he will be taking “major” steps to gird the economy against the impact of a spreading coronavirus outbreak and will discuss a payroll tax cut with congressional Republicans on Tuesday.

“We’ll be discussing a possible payroll tax cut or relief, substantial relief, very substantial relief, that’s a big number,” Trump told reporters.
He did not provide details but added that a press conference will be held on Tuesday.
Also, Vice President Mike Pence said the administration was consulting Congress on providing paid sick leave to workers, an idea that Democrats already have been trying to advance.
The stepped-up response to the coronavirus came as the number of confirmed cases in the United States hit 605, according to Johns Hopkins University. It said that worldwide, there are 113,584 cases, with 3,996 deaths.
The moves also came as stock markets plunged and top health officials urged some people to avoid cruise ships, air travel and big public gatherings.
Meanwhile, the administration was planning to huddle in coming days with executives of the banking, hospital and health insurance industries.
While an across-the-board payroll tax cut has been under discussion, top White House economic adviser Larry Kudlow and others have advocated specific tax credits, loans or direct subsidies to certain industries or hard-hit areas.
A payroll tax cut could encourage consumer spending and help households that might otherwise struggle to make rent and mortgage payments on time or pay medical bills if family members’ work hours are reduced during a coronavirus outbreak.
Florida health officials said everyone returning from China, Iran, South Korea and Italy must isolate for 14 days while travelers from other countries affected by the outbreak should monitor their health.
Thirty-four U.S. states and the District of Columbia have reported to the U.S. Centers for Disease Control and Prevention (CDC) infections of the respiratory illness COVID-19 that can lead to pneumonia. Louisiana had the state’s first presumed coronavirus case, Governor John Bel Edwards announced on Monday.
As worries over the virus deepened, the Dow fell a record 2,000 points when trading opened and the S&P 500 posted its largest single-day percentage drop since December 2008, the depths of the financial crisis. A plunge in oil prices contributed to fears of a looming recession.
Trump, who often points to the stock market as a gauge of his economic record, criticized news media organizations’ coverage of the outbreak in a tweet and accused Democrats of hyping the situation “far beyond what the facts would warrant.”
The CDC advised colleges and universities to consider asking students studying abroad to return home and cancel or postpone upcoming travel.
Several U.S. universities were either moving to virtual instruction or considering the step and limiting gatherings on their campuses.
Anthony Fauci, head of infectious diseases at the National Institutes of Health, and other health officials say older Americans, especially those with chronic medical concerns, should avoid big social gatherings, cruise ships and airline flights.
As leaders in the U.S. Congress reviewed potential plans for operating amid coronavirus, four Republican lawmakers — Senator Ted Cruz and Representatives Paul Gosar, Doug Collins and Matt Gaetz — announced that they would self-quarantine after coming in contact at a conservative political conference with an attendee who later tested positive for the virus.
Gaetz traveled with Trump aboard Air Force One on Monday.
Trump and Vice President Mike Pence, who is heading the administration’s overall response to the crisis, also attended the conference. The White House said there was no indication they came into contact with the infected attendee.
Pence told reporters that he has not been tested for the virus and did not know whether Trump had been.
CRUISE SHIP
The coronavirus outbreak, which originated in China late last year, has spread to at least 105 countries and territories. Italy, which has the second-highest death toll, said it was extending to the rest of the country restrictions on movement imposed on much of its wealthy industrial north in an effort to contain spread of the virus.
The hardest-hit place in the United States has been a nursing home in the Seattle suburb of Kirkland, and Washington state is considering mandatory measures such as banning large gatherings but not necessarily imposing massive quarantines.
The Life Care Center facility has accounted for most of the 18 confirmed coronavirus-related deaths in Washington state.
In California, officials planned to offload 2,400 passengers on Monday and Tuesday from the Grand Princess cruise ship, which was barred from returning to San Francisco last week due to a coronavirus outbreak on board.
Most of the passengers will go into quarantine at military bases in the United States, with those requiring immediate medical attention heading to hospitals. The crew of 1,100 will be quarantined and treated aboard the ship, unless they are in need of acute care off the vessel.
California has more than 100 confirmed cases, while on the East Coast, cases in New York state rose to 142, up from 105 a day earlier, Governor Andrew Cuomo said on Monday.
One of them was Rick Cotton, executive director of the Port Authority of New York and New Jersey that controls airports and other major travel hubs. He will be quarantined and work from home, Cuomo said.
New York City Mayor Bill de Blasio asked employers in the nation’s most populous city to consider staggering workers’ start times to ease crowding on public transport and to allow more telecommuting where possible. De Blasio said there were 20 confirmed cases there as of Monday afternoon.

https://www.marketscreener.com/S-AMP-P-500-4985/news/Trump-vows-major-steps-to-aid-U-S-economy-amid-coronavirus-rise-30132418/

Boeing says employee tests positive for coronavirus

Boeing Co said late on Monday an employee at its Everett facility in Washington state has tested positive for the coronavirus and has now been quarantined.

“As a precaution, we’ve asked all coworkers of the employee who were in close contact to remain home to self-quarantine and self-monitor,” the company said https://boeing.mediaroom.com/news-releases-statements?item=130635.

https://www.marketscreener.com/news/Boeing-says-employee-tests-positive-for-coronavirus–30134167/

NIH’s Fauci on coronavirus: ‘The risk group is very, very clear’

As clinicians gear up to fight the novel coronavirus spreading throughout the U.S., top officials say they should focus special attention on seniors.
“It’s so clear that the overwhelming weight of serious disease and mortality is on those who are elderly and those with a serious comorbidity: heart disease, chronic lung disease, diabetes, obesity, respiratory difficulties,” said Anthony Fauci, M.D., director of the National Institutes of Health’s National Institute of Allergy and Infectious Diseases.
“There will be outliers, as we’ve seen with influenza, [a person] who is young and healthy who winds up getting COVID-19, [gets] seriously ill and dies,” Fauci said in a taped interview with Howard Bauchner, M.D., editor of the Journal of the American Medical Association. “But if you look at the weight of the data the risk group is very, very clear.”

It was just one of the observations he shared about COVID-19 which has been grabbing headlines, but for which there is limited information when it comes to treatment.
Here’s what else Fauci had to say about COVID-19:
On testing capacity in the U.S.:
“There were clearly some missteps … The goal over the next week to do is to rev it up so you could have at least a million-plus tests available for deployment within the next week to two. Hopefully, that eventuates into a reality, not just a goal. Then after that, when you get online, some of the very good companies that know what they’re doing [are] making a diagnostic test. Then I think the flow of those tests will be really smooth. Unfortunately, today we’re not there yet.”
On the quality of the COVID-19 tests:
“They’re good. They’re standard [polymerase chain reaction] tests, and, if you do a PCR test right, it’s highly specific. Obviously, there are confirmation tests you want to do if you get just one because there can be contaminations with PCR. But they’re very sensitive down to a few copies much like some of the tests we have for HIV where we can get down to a few copies. If it’s positive, you absolutely can make a [clinical] decision. If it’s negative, you may be early on in the infection and the viral load may be so low, you don’t get it. That’s more of a concentration issue.”
RELATED: Congress releases $8.3B coronavirus funding package. Here’s what’s in it
On the actual case fatality rate:
“There’s the number of cases that have come to the attention of healthcare providers. As of [Friday] morning, that’s like 98,000. Then on the other side, you have the number of documented deaths. That’s now like 3,700, 3,800. When you do that pure simple math, the deaths are the numerator, the cases are the denominator, that’s where you get the report from WHO that it’s somewhere between a 2% and 3% case fatality rate. However, when people do modeling … you have various assumptions that there are this many asymptomatic cases that never get counted. When you do that, you get a range of case fatality rates that always less than the actual numerical one because it always factors in relative proportions of asymptomatic ones that we don’t count.”
On where studies are focusing for potential therapies:
“There are a couple of randomized controlled trials: A couple in China and one that we’re doing here in the United States … because we have a continuing number of increasing people who are infected to test the drug such as remdesivir (using a standard of care versus standard of care with remdesivir). Hopefully in the next few months, if we have enough … The Chinese are already a couple hundred into their clinical trial, that when the DSMV looks at the data, we’ll know whether it works or not. If it does, that would be wonderful and we’ll start distributing the drug. If it doesn’t, we’ll have to go toward other avenues.”
On the lack of disease among children:
“What I still don’t totally understand is the lack of detectable infections in children, as well as the lack of serious disease. In one of the reports, there wasn’t a single identified case in someone younger than 15 which seems almost unbelievable. They have to be getting infected. Why they’re not developing clinical disease is really interesting. This is something we really need to study because it certainly will tell us something about what a correlative immune protection is.”
On how we protect the elderly:
“Even if you’re not in the area with ongoing community spread, you’d do mitigation for everyone. Whether they’re elderly, immunocompromised or young, common sense should prevail.
The way we protect them in general is: Don’t take any unnecessary risks with them. If you have someone in their 70s, 80s or beyond, and even if they’re relatively healthy, do you really want to get on a plane and fly to wherever unless you have to? You have to treat the elderly and those with underlying conditions to protect them because they are vulnerable.”
Check out what else he had to say below.
https://youtu.be/7HGC-mRNTPo

 

https://www.fiercehealthcare.com/practices/fauci-offers-update-coronavirus-to-jama-for-clinicans