VIRUS DISEASES – CHINA

Billions in stimulus to stop slump

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Original article by Phillip Coorey, John Kehoe
The Australian Financial Review – Page: 1 & 6 : 5-Mar-20

Finance Minister Mathias Cormann has warned that the coronavirus will have a "material impact" on Australia’s economic growth in the first half of 2020. Amid growing concern that the nation could go into recession for the first time since 1990-91, the federal government is set to announce a stimulus package that will hit the Budget bottom line. The package will focus on jobs, small business cash flow and capital investment; it is expected to include a business investment allowance that was to have been announced in the May Budget. The stimulus package is likely to result in a deficit for 2019-20.

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AUSTRALIA. DEPT OF FINANCE

Iron ore mining giants in virus vigil over fly-in, fly-out workforce

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Original article by Brad Thompson
The Australian Financial Review – Page: 22 : 5-Mar-20

Fortescue Metals Group has asked all employees who have travelled overseas to remain at home for 14 days before returning to work. One employee was quarantined at the Christmas Creek iron ore mine after reporting flu-like symptoms following a trip to Bali, and Fortescue has confirmed that they have tested negative for the virus. BHP and Rio Tinto are also actively taking measures to protect their workforces from the coronavirus at their iron ore mines.

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FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Hunt accused of passing the buck as staff walk

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Original article by Yoni Bashan
The Australian – Page: 1 & 7 : 5-Mar-20

The global death toll from the coronavirus has risen to 3,252, with Australia recording its second fatality. NSW Health has confirmed that a 95-year-old woman who died on 4 March has tested positive for the virus. More than 95,000 people worldwide have now been diagnosed with the coronavirus, including 52 in Australia. Meanwhile, NSW Health Minister Brad Hazzard has criticised the "convoluted" process for securing emergency funding from the federal government, after NSW Health was forced to provide staff to an aged-care home whose employees failed to turn up for work following a coronavirus outbreak at the facility. The deceased woman was a resident of the aged-care home.

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NEW SOUTH WALES. MINISTRY OF HEALTH

China steel stockpiles a worrying sign

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Original article by Simon Evans, Peter Ker
The Australian Financial Review – Page: 16 : 3-Mar-20

There are reports of growing stockpiles of steel in China, which accounts for around half of the world’s production. Stockpiles have increased because construction companies and other steel users in China have been in partial shutdown due to the coronavirus, and the growing stockpiles have sparked concern of a knock-on effect to Australian iron ore miners such as Fortescue Metals Group and BHP. However, Fortescue CEO Elizabeth Gaines says the coronavirus has not impacted on its shipping schedule at this stage, while she notes that Chinese steel mills are still operating.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, BLUESCOPE STEEL LIMITED – ASX BSL

Doctor caught in coronavirus firing line

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Original article by Yoni Bashan, Simon Benson
The Australian – Page: 1 & 7 : 3-Mar-20

The global death toll from the coronavirus outbreak has risen to 3,087, with the US reporting its sixth death; more than 90,000 people worldwide have now been diagnosed with the illness. The number of people in Australia who have contracted the virus has risen to 33; a doctor is among two people who have been infected via person-to-person transmission within the local community rather than while they were overseas. Health Minister Greg Hunt and Chief Medical Officer Brendan Murphy have warned that it is now impossible to contain the virus.

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AUSTRALIA. DEPT OF HEALTH, AUSTRALIA. OFFICE OF THE CHIEF MEDICAL OFFICER

Builders and developers struggle with supply shortages

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Original article by Nila Sweeney, Michael Bleby
The Australian Financial Review – Page: 9 : 3-Mar-20

Australian builders and property developers are having to deal with disruptions to projects as a result of not being able to get supplies from China due to the coronavirus. A lack of elevator parts and components is of particular concern to builders, with WT Partnership Australia executive director David Stewart noting that any delays in having a building’s lift installed has a knock-on effect in terms of the rest of the building schedule. Supply-chain problems can cause delays of up to $200,000 a day on the biggest building sites.

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WT PARTNERSHIP AUSTRALIA

Rate cut tipped amid virus crisis

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Original article by Richard Gluyas
The Australian – Page: 17 & 20 : 2-Mar-20

Financial markets have now priced in an 87 per cent chance that the Reserve Bank of Australia will reduce the cash rate on 3 March. This compares with an 18 per cent chance on 28 February. The case for further easing of monetary has been strengthened by the local sharemarket’s 9.8 per fall in the last week of February, amid global bearish sentiment as the coronavirus outbreak continued to spread beyond China. Shane Oliver of AMP Capital says the RBA would probably have preferred to wait a bit longer to act. Federal Reserve chairman Jerome Powell has also flagged the possibility of interest rate cuts to stimulate the US economy.

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RESERVE BANK OF AUSTRALIA, AMP CAPITAL INVESTORS LIMITED, UNITED STATES. FEDERAL RESERVE BOARD

Australia most exposed to virus: Trump adviser

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 6 : 2-Mar-20

Kevin Hassett, the former chairman of the White House’s Council of Economic Advisers, has forecast that the Chinese economy will contract by 10 per cent in the March 2020 quarter. He adds that China’s economic growth will return to normal if the coronavirus outbreak is quickly contained, but he warns that Australia faces the prospect of a recession if the outbreak is not brought under control by the start of the northern hemisphere’s summer. The US has introduced new travel restrictions on people who have recently visited Iran, while the nation has reported its first confirmed death from the virus.

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Regulator confident plans are in place

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Original article by Michael Roddan
The Weekend Australian – Page: 26 : 29-Feb-20

The Australian Securities & Investments Commission is working with the Australian Financial Markets Association and large institutions to ensure that the coronavirus outbreak does not stop financial markets from remaining open. ASIC chairman James Shipton notes that it has a pandemic response plan in place, while ASIC’s executive director of markets Greg Yanco says the economic impact of the virus is uncertain. Shipton says ASIC has set up an internal working group to monitor the potential threat that the coronavirus poses and to work with other regulators.

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AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN FINANCIAL MARKETS ASSOCIATION INCORPORATED

Virus strikes: first Aussie dies

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Original article by Geoff Chambers, Richard Ferguson, Sarah Elks, Victoria Laurie, Lachlan Moffet Gray
The Australian – Page: 1 & 6 : 2-Mar-20

The global death toll from the coronavirus outbreak has risen to 3,001, and more than 87,000 people worldwide have been diagnosed with the respiratory illness. Meanwhile, Australia has recorded its first death from the virus, with 78-year-old James Kwan passing away after contracting it on the ‘Diamond Princess’ cruise ship. A total of 28 Australians have now been diagnosed with the coronavirus, including several who had visited Iran. Federal cabinet’s national security committee will meet in coming days to review the effectiveness of the government’s plan for dealing with a pandemic.

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