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Coronavirus latest: Spain's services activity shrinks more than expected - Financial Times

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Updated at 10/4/2020, 1:45:59 PM BST

UK new car sales lowest in two decades

Peter Campbell in London

UK's new car market suffered the worst September in two decades, as economic concerns hampered trading in the dealership calendar's second busiest month.

Last month, 328,041 cars were registered, the lowest since 1999, when the twice-a-year licence plate system was introduced that turned September and April into totemic sales months because of the new number plates.

Sales fell 4.4 per cent from the same month a year earlier, a modest drop that masks the extent of the fall because September 2019’s sales were unusually low, the Society of Motor Manufacturers and Traders said on Monday.

Last month’s figures were 15 per cent below the typical September average over the past decade, the SMMT said.

“This is not a recovery,” said SMMT chief executive Mike Hawes. “Unless the pandemic is controlled and economy-wide consumer and business confidence rebuilt, the short-term future looks very challenging indeed.”

Many in the industry had been banking on the month, which follows quieter trading over the summer, to give an indication of the health of the market.

The industry has shied away from calling for specific economic measures to boost car sales, such as a scrappage scheme, but has warned about wider economic measures having an impact on consumer confidence.

Germany's lower infection rate supports services sector

Valentina Romei in London

Germany's final PMI index for services improved from initial estimates, confirming the eurozone's biggest economy performed better than the rest of the region as it reported the lowest infection rate among its peers.

The final index for last month came in at 50.6, better then the estimated 49.1, suggesting no change in activity compared with the previous month.

The dominant services sector in major economies has contracted. Germany however has fared better.

In the eurozone services activity was confirmed have shrunk in September, but the final reading of 48 was marginally higher then the 47.6 of initial estimates.

The composite index, an average of services and manufacturing activity, was up to 50.4 in September from 50.1 of initial estimates, yet it still indicated no change in activity compared withprevious month.

“With the eurozone economy having almost stalled in September, the chances of a renewed downturn in the fourth quarter have clearly risen,” said Chris Williamson, chief business economist at IHS Markit.

Countries ranked by Composite PMI*:

Germany 54.7 (flash: 53.7) -- two-month high

Italy 50.4 -- two-month high

France 48.5 (flash: 48.5) -- four-month low

Italy shows containing infections has helped economy

Valentina Romei in London

Italy’s services activity contracted less than expected in September, supporting the view that containing infections helps the recovery of the third-biggest eurozone economy.

The IHS Markit Italy purchasing managers index for services increased to 48.8 in September from 47.1 in the previous month.

The reading was better than the 46.6 forecast by economists polled by Reuters and above the 47.6 of the flash estimates for the eurozone. That suggests a lower number of infections than in Spain and France has helped the economy avoid a steeper contraction.

A reading below 50 indicates a majority of businesses have reported deteriorating conditions compared with the previous month.

Businesses have shed jobs but at the slowest rate in seven months.

Last week, Italy’s PMI for manufacturing suggested strong growth in the export-led sector for the eurozone's second-largest industrial producer.

Italy, like the eurozone economy as a whole, is set for a strong rebound in the third quarter. September’s PMIs suggest growth might falter before closing the output gap that opened up with a contraction in second-quarter gross domestic product.

Von der Leyen self-isolates after contact tests positive

Harry Dempsey in London

Ursula von der Leyen is self-isolating after the European Commission president attended a meeting on Tuesday with someone who subsequently tested positive for coronavirus.

Her latest coronavirus test on Thursday came back negative and she plans to take another test on Monday, she said in a tweet.

https://twitter.com/vonderleyen/status/1313010668048732160

If her virus test does return positive, then she would join the growing cohort of world leaders to have caught the virus including Boris Johnson, Jair Bolsonaro and Donald Trump.

Spain's services activity shrinks more than expected

Valentina Romei in London

Spain’s services activity contracted sharply in September, resulting in widespread jobs cuts, as the rise in new infections takes its toll on the fragile recovery.

The IHS Markit Spain purchasing managers index for services dropped to 42.4 in September from 47.7 in the previous month. That is the lowest reading since May as sales volumes decreased at an accelerated rate.

The reading is much worse than the 46.3 forecast by economists polled by Reuters.

“September’s services data highlight how the recovery from the most severe impacts of Covid-19 earlier in the year is faltering,” said Paul Smith, economics director at IHS Markit. “With infection numbers rising, demand is again turning downwards, both from domestic and international clients, and weighing heavily on those services industries that are so crucial to Spain’s economy.”

A reading below 50 indicates a majority of businesses reporting deteriorating conditions compared to the previous month.

Falling workloads led to another round of job losses as companies sought to control their cost base.

In September, Spain registered a higher number of new coronavirus infections than any other major European economy.

Mulberry suspends dividend as cities remain devoid of tourists

Patricia Nilsson in London

Mulberry has suspended its dividend as revenues and profits fell due to the coronavirus crisis as the luxury handbag maker warned that capital cities will remain empty of tourists and office workers in the "foreseeable future".

The group, which operates 99 stores globally, said revenues fell 10 per cent to £149m in the year ending March. Losses before tax, adjusted for coronavirus-related impairments, swung to £14m compared with a £1m profit last year.

Mulberry made its decision to suspend its dividend as it tapped into the UK government's furlough subsidies. The company in June said it would cut a quarter of its workforce, as it expected lower demand in the wake of the coronavirus pandemic.

Thierry Andretta, the company's chief executive, said Mulberry had been on track to record a pre-tax profit in the second half before the pandemic forced stores to shut.

The company said sales were down 29 per cent between March and September, adding that trading had improved since stores began to reopen and that losses were expected to narrow in the current trading year.

"However, we cannot escape the reality that British luxury and UK cities face a very uncertain future, hampered by necessary but dramatic social distancing measures and alarmingly low levels of footfall," Mr Andretta said.

Cineworld puts 45,000 jobs at risk as it closes US and UK cinemas


Alice Hancock in London

Cineworld, the world’s second largest cinema group, has confirmed that it will close all of its cinemas across the UK and US this week following the postponement of the latest instalment in the James Bond franchise.

Cineworld said that all 536 of its US Regal cinemas and 127 Cineworld and Picturehouse screens would shut from Thursday, impacting the jobs of around 45,000 staff.

“Cineworld cannot provide customers in both the US and the UK – the company’s primary markets – with the breadth of strong commercial films necessary for them to consider coming back to theatres against the backdrop of Covid-19,” it said on Monday.

MGM’s No Time to Die, the final outing of the actor Daniel Craig as James Bond, had been due for release in November, but will now debut in April next year.

The decision to close down its UK and US cinemas has huge implications for Cineworld’s survival as the two markets make up almost 90 per cent of its overall revenues.

Last month it revealed that it made a $1.6bn pre-tax loss in the first half of the year and had $8.2bn net debt.

On Monday the cinema group said it was “assessing several sources of additional liquidity and all liquidity raising options are being considered”.

Mooky Greidinger, Cineworld’s chief executive, said that cinemas would reopen “at the appropriate time, when key markets have more concrete guidance on their reopening status and, in turn, studios are able to bring their pipeline of major releases back to the big screen”.

Global stocks upbeat on hopes of Trump recovery and stimulus

Harry Dempsey in London and Hudson Lockett in Hong Kong

Stock markets in Europe and the US were set to follow Asian counterparts higher following reports US President Donald Trump could be discharged from hospital on Monday, along with hopes for new stimulus measures.

Futures tied to the FTSE 100 were up 0.9 per cent, suggesting London’s blue-chip index would rise when trading begins. Those tracking Frankfurt’s Xetra Dax and Paris’s CAC 40 were both up more than 0.5 per cent.

Stock futures for Wall Street’s S&P 500 rose 0.6 per cent. US futures trading is often thin during Asian trading hours, potentially increasing volatility, but gains of close to 1 per cent are rare so far away from the opening bell in New York.

Investors were emboldened by potential positive news on Mr Trump’s health and the prospect of new fiscal stimulus measures in Washington. The president’s medical team said he could be discharged from the Walter Reed military hospital as early as Monday despite receiving treatment reserved for severe Covid-19 cases.

Meanwhile, Democratic speaker of the House Nancy Pelosi, told the CBS television network on Sunday that “we’re making progress” on a coronavirus support package to restore some of the expanded US unemployment benefits that were cut off at the end of July.

Auckland relaxes rules after 10 days without a new case

George Russell in Hong Kong

Auckland, New Zealand's largest city, will be put at the lowest level of coronavirus restrictions from midnight on Wednesday evening, prime minister Jacinda Ardern said on Monday.

Just one case was recorded in New Zealand, a citizen who arrived from Hong Kong, and no cases have been detected in Auckland for 10 days.

Speaking in the southern city of Christchurch, Ms Ardern said the Auckland cluster that emerged in August peaked at 179 cases.

"But all signs point to it now being under control,” she said. “There is now a 95 per cent probability of the cluster being eliminated.”

The easing of measures means the 100-person limit on gatherings in Auckland will be lifted, and no physical distancing rules will be required in bars and restaurants.

New Zealand has recorded 1,499 cases, with 25 deaths.

Ms Ardern faces an election on October 17, which her Labour party is expected to win.

NEC acquires Switzerland’s Avaloq for $2.2bn

Kana Inagaki in Tokyo

Japan’s NEC has agreed to buy Switzerland’s largest software provider to banks for SFr2.05bn ($2.2bn) in its biggest foray into global financial technology.

The sale of Avaloq to the Japanese technology group ends a three-year investment by Warburg Pincus, which paid close to SFr300m for a 35 per cent stake in 2017.

The fintech deal comes as the coronavirus pandemic has accelerated the trend towards digitalisation both in the banking sector and within government agencies.

Read more here

Civil society groups in grip of authoritarianism

Michael Peel in Brussels

International civil society groups say they are facing intensifying pressure even in democracies as elected governments wield political, legal and financial weapons to halt their work.

Amnesty International’s suspension last week of its Indian operations is the latest casualty in what critics view as a widening crackdown from Budapest to Brasília by elected but autocratic leaders seeking to entrench their power.

Activists fear that the loss of campaigning on injustices by non-governmental organisations will add to factors such as online disinformation and the Covid-19 pandemic that already alienate people and make it easier for politicians to tighten their grip.

Read more here

Horror film fandom builds resilience to pandemic: study

George Russell in Hong Kong

Horror movie fans are more resilient to stress during the pandemic, according to new research.

A team, led by Coltan Scrivner of the Department of Comparative Human Development at the University of Chicago, recruited 322 adult Americans for a survey beginning in April, about a month after Covid-19 was declared a global pandemic.

"We found that fans of horror films exhibited greater resilience during the pandemic and that fans of ‘prepper’ genres — alien-invasion, apocalyptic and zombie films — exhibited both greater resilience and preparedness," the researchers said.

The research, to be published in the January 2021 issue of Personality and Individual Differences, a US psychology journal, also found that "morbid curiosity" was associated with positive resilience and interest in pandemic films during the pandemic.

"Taken together, these results are consistent with the hypothesis that exposure to frightening fictions allow audiences to practice effective coping strategies that can be beneficial in real-world situations," the team concluded.

China rolls out experimental Covid vaccine

Christian Shepherd in Beijing

Beijing is set to expand a programme that administers experimental coronavirus vaccines as Chinese developers chart a risky path to dominating global supplies.

In a surprise announcement last month, a representative from state-owned China National Biotec Group, or Sinopharm, revealed that hundreds of thousands of Chinese had already taken the company’s two leading experimental Covid-19 vaccines.

The drugs were dispensed as part of a limited use programme that began with little fanfare by the Chinese government in July. The vaccines were administered even though final stage, or phase 3, trials designed to confirm overall effectiveness had not been completed.

Read more here

Hong Kong records 10 Covid-19 patients in critical condition

Only 10 of the 115 Hong Kong patients in hospital with coronavirus are in critical condition, authorities said on Sunday.

Another eight are classified as serious, the Hospital Authority in the semi-autonomous Chinese city announced. The remaining 97 patients are in stable condition.

Twelve patients were discharged from hospitals over the weekend, the authority said.

Hong Kong, with a population of 7.5m, has recorded 5,114 cases of coronavirus, with 105 deaths, according to the city’s Centre for Health Protection.

UK companies plan to cut office space after pandemic

Daniel Thomas in London

More than half of UK directors will cut back office space as staff move more permanently to working from home in a sign of the long-term impact of the pandemic on the British property market, according to a business group survey.

Companies have been forced to send many employees home to work over the past six months following lockdown restrictions, most recently in September after the government reversed its back-to-the-office plans.

This has led to many people embracing homeworking as a default option, with managers reporting little sign of a feared loss of productivity.

Read more here

UK pub owners in hardship plea to chancellor

More than 1,000 UK pub owners have asked the chancellor of the exchequer, Rishi Sunak, to provide urgent financial support to the industry.

The open letter was sent on the second weekend of pubs operating in England with a 10pm curfew and mandatory table service.

Campaign for Pubs, a lobby group, said it was calling for value-added tax to be cut to no more than 5 per cent on in-pub sales. It also asked for grants to cover costs, a business rates holiday extension and rent reviews.

Italy’s Nexi and Sia unveil €15bn payments merger

Silvia Sciorilli Borrelli in Milan and George Russell in Hong Kong

Italian payments providers Nexi and Sia have finalised a €15bn merger that will create one of Europe’s largest fintech groups.

The merger was announced on Monday after the boards of both companies met on Sunday evening to approve a combination that has been under negotiation for almost two years.

The all-share deal extends the pressure on Europe’s payments providers to consolidate further, increasing their size as online purchases intensify during the coronavirus pandemic and as consumers move away from using physical cash.

The merged entity will remain listed on the MTA International board of the Borsa Italiana.

“This transaction will create a large Italian paytech company leader in Europe,” said Nexi chief executive Paolo Bertoluzzo.

Asia stocks rise on hopes for Trump and stimulus

Hudson Lockett in Hong Kong

Stocks across Asia-Pacific and US futures rose following reports Donald Trump could be discharged from hospital on Monday after the president’s Covid-19 diagnosis, as well as hopes for new stimulus measures.

Japan’s benchmark Topix index gained 1.9 per cent and Australia’s S&P/ASX 200 climbed 2.2 per cent in early trading on Monday.

Hong Kong’s Hang Seng added 2.5 per cent and South Korea’s Kospi rose 1.1 per cent after traders returned from an extended holiday.

Chinese markets remain closed for a holiday.

Stock futures for Wall Street’s S&P 500 rose 0.8 per cent while those for London’s FTSE 100 gained 0.9 per cent. US futures trading is often thin during Asian trading hours, potentially increasing volatility, but gains of close to 1 per cent are rare so far away from the opening bell in New York.

“The bigger catalyst for us today is the potential that the [stimulus] deal goes through,” said Andy Maynard, a trader at China Renaissance. “That is the thing that’s boosting people’s ability to put money to work."

He added that volumes remained low with China’s stock exchanges still shut for much of the week.

Oil prices also rose with international benchmark Brent crude up 1.3 per cent to $39.77 a barrel. US marker West Texas Intermediate rose 1.6 per cent to $37.64 a barrel.

UK welfare system 'ready' for surge in jobless claims

Delphine Strauss and George Parker in London

The UK’s welfare system is prepared for a 1m-strong surge in the number of people claiming jobless benefits this winter, as the tapering of government wage support forces employers to take tough choices, according to the minister responsible for its smooth running.

Thérèse Coffey, the work and pensions secretary, told the Financial Times that catastrophic job losses were not inevitable when the furlough scheme ended this month.

Its successor — which will be far less generous to employers — was “well-targeted on starting to get companies to make choices”, she said, adding it was not yet clear whether they would opt for “fundamental restructuring” or keeping staff levels more stable.

Read more here

S Korea factory index hits highest level since pandemic began

Edward White in Wellington

South Korea’s manufacturing sector had its best month since the onset of the coronavirus pandemic in September, according to an industry gauge, in the latest sign of recovery for a key part of Asia’s fourth-biggest economy.

The IHS Markit manufacturing purchasing managers’ index rose to 49.8 last month, the highest reading since January and marking a recovery from 46.9 in July. The result reflects a return to growth for factory output and the second consecutive month of higher purchasing activity.

Still, the headline reading remained below the 50 point marker separating contraction from expansion, dampened by accelerating job cuts, weak local consumption and export demand remaining soft.

Joe Hayes, an economist at IHS Markit, said that while the data was encouraging, “not all is positive” amid “a combination of rising cases across key export destinations and subdued domestic demand”.

He said “South Korea's manufacturing sector showed signs of moving further away from April’s nadir, but if subdued domestic and foreign demand persist the path towards recovery could be lengthy”.

Police surround rightwing protesters in Seoul at the weekend who staged rallies despite coronavirus-related bans on gatherings

South Korean trade and manufacturing data can be bellwether for the health of regional trade. Seoul last week reported that the country’s exports returned to growth for the first time in seven months in September, buoyed by a resilient technology sector and more recent improvements for autos.

Goldman Sachs analysts noted the better-than-expected export data in September also likely reflected a burst of activity ahead of the mid-Autumn holidays, held over the weekend.

“The frontloading effect will likely reverse in October on the reversal of the front-loading and dissipation of a temporary boost ahead of stricter US restrictions on semiconductor sales to Huawei,” the bank’s analysts said in a research note.

“While we continue to expect exports recovery in coming months, the pace could be moderate and fragile in the near term, due to slowing improvement in coronavirus situations domestically and abroad,” they added.

Volunteers pick up garbage as NYC cuts collections

Mamta Badkar, Billy Nauman and Marc Filippino in New York

A volunteer army has taken to cleaning up a neighbourhood in Manhattan amid complaints that New York City has become dirtier during the pandemic.

The Upper West Side group — called OneBlock UWS —has signed up 500 people, and cofounder Ann Cutbill Lenane has grown so enthusiastic about the enterprise she has talked about expanding its activities.

“I want to do a singles’ garbage night,” she said. “I mean, I might meet my guy leaning over a garbage can.”

Read more here

‘Covid-free hospitals’ clear way for elective surgery, says study

George Russell in Hong Kong

Elective surgery performed in dedicated coronavirus-free hospitals poses no discernible risks, a recent UK study has found.

Researchers said that such coronavirus-free hospitals would become an essential tool in maintaining health care during a resurgence of the pandemic.

"We aim to demonstrate that with rigorous patient selection and strict protocols it can be safe to resume elective surgery in dedicated Covid-19-free hospitals," they concluded.

The research, published in the October issue of Surgery, defined a Covid-19-free hospital as one “where there are no inpatients with suspected or proven SARS-CoV-2 infections”, referring to the formal name of the virus that causes the disease.

A team led by Emanuele Gammeri of Stoke Mandeville Hospital looked at more than 300 procedures carried out at a private facility, BMI The Chiltern Hospital in Great Missenden, Buckinghamshire, between April 8 and May 29.

"Of the 309 patients who underwent elective surgery ... no one died, none required critical care admission, and at most only one patient developed Covid-19 positivity, probably infected before our elective operation," the study found, concluding: “The absence of adverse outcomes in Covid-19-negative patients supports the safety of a Covid-19-free setting."

The researchers quoted a previous Chinese study in which 34 patients who underwent elective surgical procedures in Wuhan Hospital from January 1 to February 5 developed Covid-19. Of those, 15 required intensive care and seven died.

"However, there were many acknowledged limitations," the UK researchers said. "Only a small number of patients were included in their study, with no rigorous patient selection and no patient self-isolation or testing before operation."

The researchers concluded: "We believe that creating Covid-19-free hospitals represents a solution for decreasing the pressure on health care systems even if a second or third pandemic surge was to occur.”

Cineworld set to shut all UK and US screens

Alice Hancock in London and Anna Nicolaou in New York

Cineworld, the world’s second-biggest cinema operator, is preparing to close all its screens in the US and UK after further delays to the new James Bond film pushed its struggling business to the brink.

The indefinite closure of 90 per cent of Cineworld’s screens, which is expected as soon as this week, raises fundamental questions over the viability of the company and a cinema sector devastated by the coronavirus pandemic.

In a fight for survival, Cineworld has already asked its lenders to show leniency over its debts. Last month the company posted a $1.6bn pre-tax loss for the first six months of the year, during which time its net debt rose to $8.2bn.

Read more here

Ireland PMI shows contraction in September

Ireland's economic activity registered a sharp decline in September as a result of rising coronavirus cases, according to purchasing managers' index data announced on Monday.

The seasonally adjusted AIB Composite Output Index fell to 46.9 from 54.0 in August, a three-month low. A PMI above 50 represents an expansion when compared with the previous month, while a reading under 50 represents a contraction.

"The recent marked rise in new cases of Covid-19 in Europe and resulting re-imposition of restrictions on activity is being most clearly felt in services sectors that depend on discretionary consumer spending," said Oliver Mangan, chief economist at AIB.

The data come as a top public health panel on Sunday recommended that Ireland return to the highest level of lockdown after a surge in Covid-19 cases.

The services PMI also fell into contraction territory in September, declining to 45.8 from August's 52.4, the third-largest decline ever recorded, behind the double-digit plunges seen in March and April, according to AIB.

The fastest decline was in transport, tourism and leisure, which had seen strong growth in July, AIB noted. Financial intermediation registered a drop in activity for the sixth time in seven months.

Coronavirus triggers PE borrowing spree

Chris Flood in London

Private equity managers are turning to specialist borrowing facilities to ensure their highly leveraged strategies can survive the coronavirus pandemic, but there are growing concerns that the use of these complex financing deals poses new threats to investors.

Demand for additional financing globally has shot up during the health crisis as private equity managers battle to help companies they own to survive the sharp downturn in economic activity.

Specialist lenders are increasingly being asked to provide bespoke loans, known as NAV credit facilities, which are based on the estimated net asset value of the companies owned by the fund.

Read more here

Health panel urges Ireland’s return to full lockdown

A woman walks past street art in Dublin depicting Ireland's chief medical officer

George Russell in Hong Kong

Ireland's top public health panel has recommended the entire country return to the highest level of lockdown, state media reported on Sunday.

Broadcaster RTÉ said the country's National Public Health Emergency Team recommended the restrictions in a letter to the government after a meeting chaired by chief medical officer Tony Holohan.

A union of primary school teachers has already asked for a return to Level 5 restrictions, the highest tier, to protect students and teachers from a resurgence of coronavirus cases.

There were 364 new Covid-19 cases recorded in Ireland on Sunday, with no new deaths announced.

RTÉ News reported that the panel's recommendation would be subject to scrutiny by Ireland's Covid-19 oversight group, the cabinet sub-committee and the full cabinet.

Ireland’s cabinet is next likely to meet on Tuesday, the broadcaster said.

Indonesian leader defends pandemic performance

George Russell in Hong Kong

Indonesian president Joko Widodo has said his country’s Covid-19 strategy was “not bad” compared with other countries with large populations, as the south-east Asian country’s caseload passed 300,000.

In a YouTube video posted at the weekend, Mr Widodo acknowledged that the Indonesian economy had been seriously affected.

"Our economy is declining, right. This is a fact,” he said. “But which country has not shrunk its economy [during the pandemic]. There are many other countries that have to bear the economic burden even more."

Indonesia reported 3,992 more infections and 96 more deaths on Sunday, following 4,007 new cases and 83 deaths on Saturday. The weekend data bring the total caseload to 303,498 and fatalities to 11,151, health ministry data showed.

In August, the statistics office reported that Indonesia's gross domestic product in the second quarter fell 5.3 per cent year-on-year, its sharpest drop in more than two decades.

But Mr Widodo, pictured, said that compared favourably with the shrinkage recorded by south-east Asian neighbours such as Malaysia, where GDP fell 17.1 per cent, Philippines 16.5 percent, Singapore 13.2 per cent and Thailand 12.1 per cent.

"I can say that the handling of Covid-19 in Indonesia is not bad, even good enough," the president said.

Mr Widodo said public health would be the government’s focus, but warned that the economy also had to be preserved, illustrating the dilemma facing most governments during the pandemic.

"Public health, public health, still number one, still must be prioritised. This is a priority," he said, adding that that did not mean ignoring economic decline.

"If we sacrifice the economy, we sacrifice the lives of tens of millions of people … we must find the right balance," the president said.

NYC surge unlikely to be widespread, says mayor

George Russell in Hong Kong

The decision by New York City authorities to seek a return to more restrictive anti-coronavirus measures in nine neighbourhoods does not signal a wider resurgence of the pandemic, the mayor said on Sunday.

Restricting movement and businesses in several areas of Brooklyn and Queens, which is subject to approval from the state government, is an attempt to prevent a citywide outbreak, said Bill de Blasio.

“Our hope here is that working with the community, we can keep this to a brief duration, that this can be something that can be turned around in a matter of weeks and then people can continue on with their lives,” he said.

The mayor said he wanted to prevent Covid-19 “from spreading more deeply into New York City”, adding: “We can stop this from being a second wave.”

Victoria continues decline in new cases and records no deaths

George Russell in Hong Kong

The Australian state of Victoria continues to hold down its coronavirus surge, with just nine new cases and no deaths reported on Monday.

In the state capital of Melbourne, the 14-day rolling average continues to decline, the state health ministry said, standing at 11.6 on Monday.

However, restrictions will not be eased until the daily average number of cases is fewer than five state-wide over the previous 14 days and there are fewer than five cases with an unknown source in the previous 14 days.

Health officials are currently investigating 13 cases with an unknown source.

Malaysian uni shuts campuses after Covid-19 detected

George Russell in Hong Kong

A Malaysian university will close its three campuses for 72 hours from Monday after an employee tested positive for Covid-19.

In a notice on its website, the Universiti Sultan Zainal Abidin in Kuala Terengganu state said registration and classes for students would be moved to online only.

The employee who tested positive travelled by air from Kuala Lumpur on the same flight with an infected person returning from Sabah, a state in Malaysian Borneo which has experienced a recent surge in cases.

UniSZA, as it is known, has a student body of about 9,000. It is located on the south-east Asian country’s east coast, about 450km from the capital, Kuala Lumpur.

Australian PMI data show slight rise in activity

George Russell in Hong Kong

Australian purchasing managers index data released on Monday showed a mild increase in private-sector business activity.

The IHS Market composite PMI rose to 51.1 in September from 49.4 in August. A PMI reading above 50 represents an expansion when compared with the previous month, while a reading under 50 represents a contraction.

The rebound in activity was driven by services returning to growth, supported by a "sustained expansion" of manufacturing output, IHS Markit said.

"The Australian private sector showed some signs of life in September as containment restrictions were relaxed, adding to hopes that market conditions
will move closer to normality in the months ahead," said Bernard Aw, principal economist at IHS Markit in Singapore.

The survey noted that aggregate employment contracted further during September.
"Job shedding persisted in September as an absence of a robust recovery in demand contributed to spare capacity," said Mr Aw.

Ohio governor tells of White House silence on exposure

George Russell in Hong Kong

The White House has not informed authorities in Ohio about possible exposure to the coronavirus, the state's governor said on Sunday.

US president Donald Trump and a number of administration officials and aides have tested positive for Covid-19 days after a presidential debate in the Ohio city of Cleveland.

Ohio governor Mike DeWine told CNN that he has not been contacted by the White House. "They have not reached out to me," he said. Mr DeWine, a Republican like Mr Trump, did not attend the debate.

The debate with Democratic nominee Joe Biden was one of several events Mr Trump took part in when he was potentially infectious.

"Do I wish the president had worn a mask all the time? Of course. You know, of course," Mr DeWine, pictured after testing positive for Covid-19, told CNN's State of the Union programme.

New Jersey authorities said on Sunday the White House had supplied the details of 206 people who attended events at Trump National Golf Course.

The state's department of health said Somerset County workers were contacting and interviewing staff members at the club in Bedminster.

Paris bars and cafés set to close for 2 weeks

Victor Mallet in Paris

The French government has declared Paris and its nearest suburbs to be zones of “maximum alert” for coronavirus infections, which is expected to mean the closure of bars and cafés for two weeks under plans to be detailed on Monday.

Marseille and Aix-en-Provence in the south of France, as well as the Caribbean island of Guadeloupe, have already been placed in the same “maximum alert” coronavirus category after a surge of infections and hospital admissions in recent weeks.

However, the government will grant a reprieve to France’s restaurants — now closed in Marseille — by outlining stricter barrier measures and allowing them to remain open or re-open even in high-infection zones.

President Emmanuel Macron has said France must learn to “live with” the virus and says he is determined to avoid another nationwide lockdown like the two-month closure in the spring that triggered a deep economic recession.

Health minister Olivier Véran said last week that the cities of Lille, Lyon, Grenoble, Toulouse and Saint-Étienne might also this week cross the infection and inpatient thresholds that would push them into the “maximum alert” category.

UK cases surge as government admits technical faults

Jasmine Cameron-Chileshe in London

The number of positive coronavirus cases within the UK surged again on Sunday, with the government admitting that “technical” issues had caused delays in the publication of test results.

A record 22,961 new coronavirus cases were confirmed on Sunday, an increase of more than 10,000 compared with 12,872 on Saturday.

The government said a technical issue had been identified overnight on Friday “in the automated process that transfers positive cases data" to Public Health England.

As a result, the number of coronavirus cases announced on Saturday and Sunday included 15,841 additional cases from between September 25 and Friday. Last night, the government said that the issue, though resolved, would affect case numbers in the next few days.

A message on the coronavirus data dashboard on Saturday warned that data published in the next few days would “include some additional cases” from between September 24 and October 1.

In an interview with BBC’s The Andrew Marr Show on Sunday, UK prime minister Boris Johnson argued that government testing data was still “reliable” and called the recent problems a “computing error”.

He said: “All the people who had a positive test have now been notified and I think the data that we have is realistic, and again it’s very useful in helping us to identify you know where the incidence is and what we need to do to tackle it.”

Boris Johnson, left, is interviewed by the BBC’s Andrew Marr on Sunday

Mr Johnson defended his testing system, arguing that while it was not “perfect” and he remained “frustrated” with it, testing had “made a huge difference” to the government’s ability to track the virus’ growth.

“I think by international comparators it is really very, very good indeed and yes it could be a lot better, but we’re going to get a lot better. And by the way they’re going to get up to 500,000 tests a day by the end of this month,” he added.

The latest figures follow growing criticism from Labour who have accused the government of “serial incompetence” and have called for greater “clarity”.

Speaking to Andrew Marr ahead of Mr Johnson’s interview, shadow health secretary Jonathan Ashworth argued that the testing system was “simply not working” and said the lockdown rules appeared to “chop and change all over the place”.

He said: “We support local restrictions, but what people want is clarity… So we need clarity on why an area goes into restrictions, clarity on how an area gets out of restrictions.”

Mr Ashworth said local authorities should have control over the testing system and the tracing system. “The Serco call centre is simply not working. In Bradford, in Oldham it’s around 50 per cent of contacts are getting traced. No wonder they’re failing to get on top of the infection.”

Students call on UK endowments to invest responsibly

Attracta Mooney and Siobhan Riding in London

University endowments across the UK, which oversee £15bn in assets, are being urged to “radically reform” how they invest by a new student-led campaign that calls for higher education institutions to pile cash into renewable energy and social housing.

The Invest for Change campaign, which launches on Monday, reflects growing pressure on universities to invest responsibility as concerns mount about climate change and social injustice in the wake of the coronavirus pandemic.

“Students have made it clear that universities can no longer get away with investing in the climate crisis and social injustice,” said Larissa Kennedy, president of the National Union of Students. “We urgently need them to listen to students’ demands and invest in solutions to the global problems we face.”

Read more here

Mass gatherings might need guidance not banning

George Russell in Hong Kong

Governments might have to manage group gatherings rather than ban them, a report in the British Medical Journal suggests.

Violations of rules against gatherings are spreading worldwide, in places as diverse as the UK, US, Australia, Japan and South Korea. The answer, say psychologists, might not be a crackdown but better risk assessment.

“It feels healthy and meaningful and life affirming to be with other human beings in crowds,” Jonathan Kanter, a psychologist at the University of Washington, told the BMJ. “We’re built by nature to crave that.”

While governments and the private sector have tried to create digital versions of events — from Saudi Arabia’s virtual hajj pilgrimage and online pub quizzes in Hong Kong to digital raves in the UK and fake crowd noise added to Taiwan sports broadcasts — they are no substitute for the real thing.

A socially distanced concert in Barcelona

Group video calls may "worsen some participants’ moods, particularly if they feel forced to join a call", the BMJ noted, adding that "physically gathering together will always be preferable to some".

The risks associated with physical distancing can be managed, according to research. Most clusters of Covid-19 transmission have been associated with indoor activities, so "outdoor events have been increasingly touted”, the BMJ noted.

In August, another BMJ article suggested that “high occupancy events in outdoor, well-ventilated areas may be extremely low risk so long as people are not bunched together for long periods and are not shouting or speaking without face masks”.

The BMJ said researchers from Martin Luther University of Halle-Wittenberg in Leipzig are studying attendance and distancing measures at a small, experimental indoor concert. “The hall hosted 1,400 people, all of whom had tested negative for Covid-19 and wore tracking devices that showed when they came into close contact with others and for how long.”

Similar experiments are under way in Australia, Belgium and Denmark. “Nobody knows how problematic mass gatherings will prove to be,” the BMJ acknowledged.

Saudi Arabia reopens its holy cities to pilgrims

George Russell in Hong Kong

The first group of an estimated 100,000 pilgrims arrived in Saudi Arabia on Sunday as the kingdom prepares for a socially distanced Islamic umrah or "lesser pilgrimage", official media reported.

No more than 6,000 people daily are permitted to perform the umrah, which takes several hours and can be undertaken at any time of the year. The hajj, or "greater pilgrimage", takes several days at a specific time of year.

In 2019, more than 2.5m visitors and residents performed the umrah. This year only 108,000 permits have been issued to pilgrims.

Authorities closed the holy cities of Mecca and Medina to pilgrims in March as a response to the coronavirus pandemic. They were cautiously reopened on Sunday, the Saudi Press Agency reported.

New Zealand hospitals free of Covid-19 patients

George Russell in Hong Kong

The sole remaining coronavirus patient in hospital in New Zealand has been discharged, the country’s health ministry said at the weekend.

There were still 41 active cases as of Saturday, after the total briefly exceeded 50 last week with the arrival of 10 coronavirus-positive passengers on a flight from India.

The passengers were aboard an Air India flight from Delhi to Auckland that arrived on September 26. “We can report that cases were spread out throughout the plane on their flight to New Zealand, sitting between rows 14 and 41,” the ministry said in a statement.

“We acknowledge that this is a high number of cases,” the statement added. “It reflects that most of the rest of the world continues to experience high levels of Covid-19.”

Dior and Chloé show clothes for a homebound reality

A creation for Dior's Spring-Summer 2021 collection shown at Paris fashion week

Carola Long in London

The Spring/Summer 2021 womenswear shows in Paris were a combination of online and face-to-face events.

Marine Serre, who describes her fashion as “eco-futurist”, made a film that was relevant to the multiple crises facing the world.

“Our style of life is completely different,” said Dior’s Maria Grazia Chiuri in a Zoom interview. “It’s a more intimate relationship with clothes now that we don’t see so many people. We want something more comfortable.”

Chloé’s Natacha Ramsay-Levi staged a physical event, with models wandering along Parisian streets before converging on the steps of the Palais de Tokyo for an outdoor show.

Read more here

Singapore’s daily Covid-19 tally drops to single digits

Singapore reported a single-digit tally of new cases at the weekend, the lowest daily number since March.

The health ministry announced just six new cases on Saturday. However, the ministry announced 12 new cases on Sunday.

While eight of the weekend’s cases were imported, officials said the 10 other cases were still being investigated.

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English club football officials are racing to agree on a rescue package funded by the Premier League, the country’s top division, to save smaller professional teams after the UK government refused to bail out the sport. Crisis talks were held this week between chief executive Richard Masters and Rick Parry, chairman of the English Football League, which runs lower tiers.

Nancy Pelosi, the Democratic speaker of the US House of Representatives, pleaded for US airlines to halt their plans to cut thousands of jobs, telling them that fiscal support would come soon. "I am calling upon the airlines to delay their devastating job cuts as relief for airline workers is being advanced in Congress,” she said.

MGM’s No Time To Die, the last outing for Daniel Craig as British secret agent James Bond, has been postponed to next year as the coronavirus pandemic wreaks havoc on Hollywood. The $250m film, the 25th in the Bond franchise, had been scheduled to debut on November 20 but is being pushed back for a second time.

Small businesses will have to wait several more months to discover if their insurance will pay out for coronavirus disruption, after insurers and the UK regulator indicated they would take disputed claims all the way to the Supreme Court. At a hearing on Friday, lawyers for the Financial Conduct Authority and two policyholder action groups won clarifications on their right to claim.

Superdry chief executive Julian Dunkerton bought £1.57m-worth of the company’s shares after it released its annual results, in which the UK premium clothing retailer’s losses fell further as a result of the coronavirus pandemic. Pre-tax losses deepened to £167m, from £89m last year while revenues fell by nearly a fifth to £704m, which the company attributed to the pandemic.

Uber has sold a stake in its freight business to outside investors, as it looks to pare its exposure to non-core ventures and recover from a hit to its ride-hailing business during the pandemic. Greenbriar Equity led a group of investors committing $500m to Uber Freight, the companies announced, as the equity investment valued the division at $3.3bn.

Video game maker Sumo has benefited from the surge in gaming during the pandemic, launching seven games in the first half of 2020, including four for which it owns intellectual property, and seeing adjusted cash profits rise 15 per cent year-on-year to £6m. The margin took a hit, contracting 2.3 percentage points to 22.8 per cent.

Amazon is expanding its operations in Singapore, in the latest sign of the city-state’s growing appeal as an Asian hub for global technology companies. The US technology group will take over three floors of Citigroup’s offices, as the US bank moves employees to Changi as it adjusts operations following the pandemic.

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Coronavirus latest: Spain's services activity shrinks more than expected - Financial Times
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