(Bloomberg) — U.S. Treasury Secretary Steven Mnuchin said the economy shouldn’t be closed again even with another surge in coronavirus cases. Meanwhile, a second wave of infections as states reopen is raising alarm after the overall count passed 2 million.U.K. Prime Minister Boris Johnson is battling to contain a public split with his top scientific advisers, after they warned the government must learn from the catalog of failures it made during the crisis. Job losses continued to mount in the country.Moderna said it had selected a dose for a final-stage clinical trial of its vaccine that should begin in July, and Regeneron Pharmaceuticals started human tests of a new antibody cocktail. U.S. weekly jobless claims remained higher tyhan 1 million.Key Developments:Virus Tracker: Cases pass 7.4 million; deaths exceed 417,300Trump’s slipping polls make GOP holding Senate more dauntingProtester in Australia tests positive after attending rallyCalifornia Disneyland to reopen in July; Coachella canceledAmazon price-gouging step worsened sanitizer, wipes shortageLife and death on the Zaandam, Holland America’s pariah shipAfter enduring Covid, hospitals brace for cancer onslaughtDoes warm weather curb coronavirus? QuickTakeSubscribe 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.Mnuchin Rejects Second Lockdown (10 a.m. NY)Treasury Secretary Steven Mnuchin said the U.S. “can’t shut down the economy again” even if there is another surge in coronavirus cases. “You create more damage, not just economic damage — medical problems that get put on hold,” Mnuchin said on CNBC.A shutdown can be avoided if cases surge, he said, because Covid testing and contact tracing are improving and officials understand more about how to contain outbreaks.Ford Foundation to Aid Nonprofits (9:45 a.m. NY)Nonprofit groups unable to raise funds during the pandemic may get help from the Ford Foundation, which plans to sell $1 billion of bonds this month to provide grants for struggling organizations, President Darren Walker said. Charitable giving has slowed as donors fear an economic recession.Even the largest organizations aren’t immune. The Museum of Fine Arts Boston furloughed more than 300 staff members and New York’s American Museum of Natural History cut 200 full-time employees and put 250 on furlough. On Wednesday, Federal Reserve Chair Jerome Powell said the Main Street Lending Program may expand to include nonprofits.Swedish Central Bank Says Soft Lockdown Helps Economy (9:17 a.m. NY)The Riksbank is still analyzing the true economic cost of the virus, but the latest data suggest that Sweden is “coming out relatively well compared to other countries,” Deputy Governor Per Jansson told reporters in Stockholm.“It’s reasonable to believe that the immediate GDP blow may turn out a little bit milder than in many other countries,” he said. “It might have to do with the fact that we’ve had a less brutal approach when it comes to restrictions. It can’t be proved but it’s a reasonable hypothesis.”Tokyo to Cancel Virus Alert Today: Governor (8:56 a.m. NY)Tokyo will continue to take measures against the coronavirus because it will take time until a vaccine is developed, Governor Yuriko Koike said at a briefing. The city will enter “Step 3” of its reopening roadmap from midnight local time. It will encourage working remotely and staggered commutes, and will continue with epidemiological investigations to prevent a second wave.U.S. Jobless Claims Continue Gradual Drop, Stay Elevated (8:33 a.m. NY)Applications for U.S. unemployment benefits continued to only gradually ease last week despite a stream of business reopenings, underscoring the longer-term labor market challenges.Initial jobless claims for regular state programs totaled 1.54 million in the week ended June 6, down from 1.9 million in the prior week, Labor Department figures showed Thursday. Applications for unemployment insurance have fallen consistently each week since peaking at the end of March, but the volume of weekly filings is still more than double the worst week during the Great Recession.The median estimate in a Bloomberg survey of economists called for 1.55 million initial claims in the latest week.Moderna Vaccine Trials Moving Fast (8:00 a.m. NY)Moderna Inc. said it had selected a dose for a final-stage clinical trial of its coronavirus vaccine that should begin in July. The final study, which will include 30,000 people, will be conducted in collaboration with the National Institute of Allergy and Infectious Diseases in the U.S. Its primary goal will be to show the vaccine prevents people from developing symptoms of Covid-19.England’s Contact Tracers Fail to Reach a Third of New Cases (8:00 a.m. NY)Coronavirus contact tracers failed to track down the details of a third of cases referred to them in England in their first week of operation. Of 8,117 people, only 5,407 were reached and asked to provide contact details, the Department of Health and Social Care said in a statement. The teams identified 31,794 contacts in the first week, and just under 26,985 were advised to self-isolate.Norway to Remove Curbs on Flight Capacity (7:34 a.m. NY)Norway’s Transport Minister will allow SAS, Norwegian Air and Wideroe to fly with full aircraft, broadcaster NRK reported, citing unidentified people. The move will bring Norwegian regulations in line with the European Union Aviation Safety Agency. Carriers in Norway had been required to keep an empty seat between passengers.Regeneron Begins Human Trials of Antibody Cocktail (7 a.m. NY)Regeneron said it had begun human trials of a new antibody cocktail for Covid-19, part of an ambitious clinical-testing plan that could lead to a new treatment option by the end of summer if all goes well. In a statement, the company said it will test a two-antibody combination in a wide variety of people, including those already sick with Covid-19, as well as healthy people at high risk of being exposed to the virus.“Our data suggests putting together multiple antibodies could really be the key to having a major impact on the virus,” George Yancopoulos, the company’s co-founder and chief scientific officer, said in an interview. He said lab studies that Regeneron plans to publish soon show the coronavirus will quickly develop resistance to a single antibody-based treatment, but that when multiple antibodies are combined the virus doesn’t fight them off.Separately, Sorrento Therapeutics shares rose 15% after the company announced that its submission of an Emergency Use Authorization application for a Covid-19 test is under review at the FDA.Third of U.S. Renters Worried About Next Payment (7 a.m. NY)About 31% of renters responding to the U.S. Census Bureau’s Household Pulse survey in the five weeks through June 2 said they had “little or no confidence” they can make their next payment on time.By comparison, 11% of households with a mortgage failed to make their last payment and 16% of the survey respondents said they fear they can’t cover the next one. This could impact consumer spending and the economic recovery.Oman Said to Test Waters for Aid From Neighbors (6:35 a.m. NY)Oman has discussed the possibility of financial aid with other Gulf states to help it cope with the economic impact of the pandemic and low oil prices, according to two officials in the region and a U.S. government official familiar with the contacts.The topic was one of several discussed at recent high-level political meetings between Gulf officials, two of the people said. The discussions are preliminary and nothing has been decided, including the scope or type of support that could be on the table, they said, declining to be named because of the sensitive nature of the conversations.Israel Official Under Fire Over Quarantine Exemption (6:18 a.m. NY)A senior official at Israel’s Health Ministry is under pressure to explain why he allowed businessman Teddy Sagi, founder of gambling software company Playtech Plc and the owner of London’s Camden Market, to enter the country without undertaking the compulsory two-week virus quarantine.According to an N12 TV report, Health Ministry Deputy Director General Itamar Grotto gave Sagi the go-ahead to fly in by private plane from Cyprus last week to attend a party. He left Israel the same night, the report said.“The granting of the permit was a mistake,” the Health Ministry said. “This was a serious error in judgment and it will be investigated.” Grotto was asked in a June 10 letter to provide an explanation in writing by the following day.Milk and Seafood Pile Up (6:11 a.m. NY)This year’s dairy exports may post the steepest decline in three decades, and fish demand has been “severely” dampened by the pandemic, the United Nations’ Food & Agriculture Organization said Thursday in a 2020 outlook report. Growth in global meat trade will also slow as shuttered restaurants and weakening economies spur consumer cutbacks.The products are among those facing swift impacts from the coronavirus, and food markets are likely to see “many more months” of uncertainty ahead, the FAO said. Salmon demand will shrink 15% or more this year, and milk sales are likely to stay subdued.WHO Unsure on Asymptomatic Carrier Numbers (6:05 a.m. NY)It’s “still uncertain” how many people are carrying Covid-19 without displaying symptoms, the WHO’s coronavirus special envoy, David Nabarro, told an Irish parliamentary hearing by video conference. Nabarro described the virus as a “continuous threat” and didn’t appear to be seasonal.While it would be “reasonable” to make face coverings on public transport compulsory, Nabarro doesn’t expect a blanket 14 day quarantine period for travelers sticking for long in any European country. Instead he expects countries to establish air links with specific nations based on how they are managing the virus.Canada’s Recovery Lags U.S. (6 a.m. NY)The worst may be over for Canada’s economy, but the nation’s more cautious approach to reopening means a slower rebound than in the U.S.Real-time data such as online job postings, restaurant bookings and mobility tracking show economic green shoots in Canada after nearly three months of Covid-19 restrictions. However, the data also suggest its economy is “about two to three weeks behind” its largest trading partner, said Frances Donald, chief economist at Manulife Investment Management Ltd.South African Mining Output Drops Most in 39 Years (5:50 p.m. HK)South African mining output dropped the most since at least 1981 in April, when the first full month of restrictions to curb the spread of the coronavirus pandemic brought almost all economic activity to a halt. Total production decreased 47.3% from a year earlier, compared with an 18% decrease in March.Indonesia’s Coronavirus Death Toll Hits 2,000 (5:45 p.m. HK)The death toll from the pandemic in Indonesia reached 2,000 as a surge in infections across the archipelago saw fatalities more than double in the past month. The country reported 41 deaths in the past 24 hours, the most since June 7, and new cases rose by 979 to 35,295.Indonesia’s fatalities are the highest in Southeast Asia and the total number of infections now only trails Singapore in the region, according to data from Johns Hopkins University.Finland to Ease Travel Restrictions (5:30 p.m. HK)Finland is eliminating border controls and quarantine requirements with Baltic and Nordic countries excluding Sweden starting June 15, Interior Minister Maria Ohisalo said. Necessary travel, such as for work, is allowed from the European Union’s Schengen area. The Russian border remains mostly shut until at least July 14.Germany Heading for 9.4% Contraction (5 p.m. HK)Germany’s economy is heading for a contraction of almost 10% this year due to the fallout from the coronavirus pandemic and will recover only gradually from its worst recession since World War II, according to one of the nation’s leading research institutes.Gross domestic product will likely shrink by 9.4% in 2020, before expanding by 3% next year, the Berlin-based DIW institute predicted Thursday in its latest forecasts for Europe’s largest economy. The projection for this year compares with the Bundesbank’s -7.1% and the OECD’s -6.6%.Beijing Reports One Confirmed Case (4:50 p.m. HK)The new case, a 52 year-old Beijing resident, was reported in Xicheng district of the capital city, local officials said at a briefing. The source of the infection is unknown. Beijing hasn’t reported new local coronavirus cases for consecutive 55 days as of June 9, according to the municipal health commission, and further lowered its virus emergency response level on June 6.Baidu Lashes Out Against Harvard Study for Data Use (4:45 p.m. HK)Chinese search-engine provider Baidu Inc. lambasted a report from Harvard that suggested the novel coronavirus could have been circulating in China as early as summer last year, saying the study’s use of its database was “far-fetched and imprecise.”The study by Boston and Harvard universities drew a conclusion that the virus could have spread in China earlier than estimated, based on analysis of satellite images of hospital parking lots and internet search terms on Baidu.The Chinese tech giant’s response comes amid a global blame game over the virus’ origin and escalating tension between China and the U.S. “In fact, the search volume of term ‘cough’ in Wuhan area matches with the flu season every year,” Baidu said in a post on Weibo. “Meanwhile, the search volume of ‘diarrhea’ is slightly down in December.”Italian April Industrial Production Plunges (4:16 p.m. HK)Italian industrial production fell sharply in April as the country continued to suffer from a near total lockdown put in place to counter the pandemic. Production fell 19.1% in April from the previous month, national statistics bureau Istat said. Intermediate goods production declined 24.6%, weighing the most on the overall figure. Textiles fell 41.4%. Production had fallen almost 30% in March.Tokyo Plans to Lift All Business Restrictions June 19 (4 p.m. HK)The Tokyo Metropolitan Government is planning to lift all business restrictions on June 19, Nikkei reported, without attribution. The government will allow restaurants and Japanese-style izakaya bars to stay open without opening hour restrictions, but will continue to limit the number of visitors for certain events.Russia Passes 500,000 Covid-19 Cases (3:47 p.m. HK)Russia reported 8,779 new confirmed coronavirus infections in past day, a 1.8% rise, taking the total in the country to 502,436, according to data from the government’s virus response center. The net increase in daily cases stayed below 2%.Total fatalities rose to 6,532 after 174 more people died.U.K. Job Losses Mount (3:30 p.m. HK)London Heathrow airport said it has begun cutting front-line jobs after a recovery in passenger numbers was delayed by Britain’s introduction of a quarantine rule for incoming passengers. Europe’s busiest airport has begun to restructure after agreeing to a voluntary severance plan with unions and has already eliminated a third of management posts. Heathrow’s May passenger traffic was down 97% from year-ago levels as the coronavirus lockdown grounded flights across most of the world.Centrica Plc said it will cut 5,000 jobs before the end of the year in order to meet its cost reduction targets as the uncertainty of the pandemic accelerated losses. Johnson Matthey Plc, the world’s largest maker of diesel-engine catalysts, plans to cut about 2,500 jobs in a further sign of the damage being caused to suppliers by the virus-led slump.Oil Trader Trafigura Thrives (3 p.m. HK)Trafigura Group reported a 27% gain in half-year net income as the commodities trading giant benefited from supply and demand disruptions created by the pandemic.The results, for the six months to March 31, offer a glimpse into how some of the biggest traders of raw materials are faring during the public health crisis that caused prices from copper to diesel to plummet. While bigger rival Vitol Group’s earnings suffered, Trafigura made the most of the price fluctuations.“This disruption in market conditions creates volatility on which Trafigura managed to thrive,” Chief Financial Officer Christophe Salmon said.German Infection Rate Drops (1:26 p.m. HK)Germany recorded the fewest new coronavirus cases since the end of February as its infection rate fell back below the key threshold of 1.0.There were 16 new cases in the 24 hours through Thursday morning, bringing the total to 186,522 according to data from Johns Hopkins University. That compares with 397 the previous day and almost 7,000 at the peak of the pandemic in late March.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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