Coronavirus hits 'heart and soul' as New York, Los Angeles bars and
theaters forced to close
Send a link to a friend
[March 16, 2020]
NEW YORK (Reuters) - Bars, restaurants, theaters and movie houses
in New York and Los Angeles were ordered to shut down to combat the
spread of the coronavirus pandemic as central banks around the world
took aggressive steps to cushion the economic impact of the disease.
The U.S. Federal Reserve slashed interest rates, for the second time in
less than two weeks, to near zero and other central banks followed suit
but stock markets and the dollar continued to tumble.
Europe's main stocks markets plunged more than 6% in brutal opening
trading [.EU] while Wall Street futures for the S&P 500 index had hit
their downlimit in the first quarter-hour of Asian trade as investors
rushed for safety.
At an emergency meeting, the Bank of Japan further eased monetary policy
by ramping up purchases of exchange-traded funds and other risky assets.
Leaders of the G7 countries will hold a video conference at 1400 GMT on
Monday to discuss a joint response to the coronavirus outbreak,
officials have said.
New York Mayor Bill de Blasio said on Sunday he was ordering
restaurants, bars and cafes to only sell food on a take-out or delivery
basis. He also said he would order nightclubs, movie theaters, small
theater houses and concert venues to close.
"These places are part of the heart and soul of our city," he said. "But
our city is facing an unprecedented threat, and we must respond with a
wartime mentality."
Los Angeles Mayor Eric Garcetti issued similar orders. Any restaurant,
bar or cafe selling food will only be able to do so via delivery or
take-out, officials said.
"The worst is yet ahead for us," said Dr Anthony Fauci, the top
infectious diseases expert in the United States. "It is how we respond
to that challenge that is going to determine what the ultimate end point
is going to be."
The worldwide coordinated policy actions were reminiscent of the
sweeping steps taken just over a decade ago to fight a meltdown of the
global financial system, but this time the target is a fast-spreading
health crisis with no certain end in sight that is forcing entire
societies to effectively shut down.
"The issue for investors that still remains is that the virus's economic
impact is still not known, if this is a one-month event or if this is a
one-year event, and how deep the cutback in consumer spending is going
to be," said Rick Meckler, partner at Cherry Lane Investments in New
Vernon, New Jersey.
MORE CASES OUTSIDE CHINA THAN IN
Airlines around the world said they would make more drastic cuts to
their flying schedules, shed jobs and seek government aid because of
sweeping global travel restrictions.
Several countries imposed bans on mass gatherings such as sports,
cultural and religious events to combat the disease that has infected
over 169,000 people globally and killed more than 6,500.
The virus was first identified in the central Chinese city of Wuhan in
December but there have now been more cases and more deaths outside
China than inside.
[to top of second column]
|
A worker cleans a private bus station, as the number of people
tested positive for coronavirus (COVID-19) in the country increases
to 18, in Colombo, Sri Lanka March 16, 2020. REUTERS/Dinuka
Liyanawatte
France and Spain joined Italy in imposing lockdowns on tens of
millions of people while Australia ordered self-isolation of
arriving foreigners.
Australia's central bank pumped extra liquidity into a strained
financial system and said it would announce more policy steps on
Thursday. South Korea's central bank cut its benchmark interest rate
by 50 basis points to a record low 0.75%.
New Zealand's central bank slashed interest rates by 75 basis points
to a record low on Monday following an emergency meeting. The Bank
of Japan and four other central banks cut pricing on their swap
lines to make it easier to provide dollars to their financial
institutions facing stress in credit markets.
"This cannot prevent the economic fallout from social distancing,"
said Ray Attrill, head of FX strategy at National Australia Bank in
Sydney, referring to a method being used by many countries to try to
slow the spread of the virus.
"That will require some fiscal spending and something from the
government to make sure small companies are funded."
China said industrial output contracted at the sharpest pace in 30
years in the first two months of the year as the disease disrupted
the world's second-largest economy.
The International Olympic Committee will hold talks with heads of
international sports organizations on Tuesday in response to the
pandemic, a source close to an international federation briefed on
the issue said, amid growing doubts that the Tokyo 2020 Olympics
starting July 24 can proceed.
Nations in South and Central America ramped up measures to contain
the infection, with Panama banning entry of non-resident foreigners
and Honduras closing its borders to passenger traffic for a week.
The leaders of Argentina and Peru also announced border closures.
(Reporting by Leela de Krester in New York; Lindsay Dunsmuir,
Nandita Bose, Howard Schneider and Ann Saphir in Washington; Wayne
Cole and Swati Pandey in Sydney; Hideyuki Sano in Tokyo; Tom
Westbrook in Singapore; Kevin Yao in Beijing; Jaime Freed in Sydney
and Tracy Rucinski in Chicago; Writing by Raju Gopalakrishnan;
Editing by Stephen Coates and Nick Macfie)
[© 2020 Thomson Reuters. All rights
reserved.] Copyright 2020 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content. |