Japan cruise ship coronavirus cases climb to 175, including quarantine officer

By Ju-min Park and Elaine Lies

TOKYO (Reuters) – Another 39 people have tested positive for the coronavirus on the Diamond Princess cruise ship quarantined in Japan, with one quarantine officer also infected, bringing the total to 175, the health ministry said on Wednesday.

The Diamond Princess was placed in quarantine for two weeks on arriving in Yokohama, south of Tokyo, on Feb. 3, after a man who disembarked in Hong Kong was diagnosed with the virus.

The epidemic originated in mainland China, where more than 1,100 people have now died of the virus.

It is looking like an increasing economic threat for Japan, where manufacturers are reliant on Chinese companies for parts, and shops and hotels dependent on Chinese tourists.

About 3,700 people are on board the cruise ship, which usually has a crew of 1,100 and a passenger capacity of 2,670. Health Minister Katsunobu Kato said in parliament that he wanted to expand testing to all passengers and crew on board, and that authorities could muster resources to do more than 1,000 tests a day, according to national broadcaster NHK.

The British-flagged Diamond Princess is managed by Princess Cruise Lines, one of the world’s largest cruise lines and a unit of Carnival Corp <CCL.N>.

Kyodo news agency, citing the health ministry, said that of the 39 cases, 10 were crew and 29 were passengers.

Ten were Japanese nationals and the others were from 11 countries, including the United States and China. Four were in serious condition, Kato said.

People who test positive for the virus are taken off the ship to hospital.

The quarantine officer who was infected had been handing out questionnaires checking the health of passengers and crew and had been following rules that require the wearing of a mask and gloves but not a full protective suit, according to the Nikkei business daily, quoting the health ministry.

A health ministry official had no immediate comment, but Nikkei said the ministry was checking the officer’s contacts with colleagues and family members.

The government has decided on a 500 billion yen ($4.5 billion) emergency package of loans and guarantees to help small businesses, particularly in tourism and smaller manufacturers, the Nikkei newspaper reported.

S&P Global Ratings said the outbreak would likely damage the operating performance of Japanese companies in the first half, especially automobile manufacturers that are likely to face a prolonged halt in operations in China.

“The impact might be harsh on Nissan Motor and Honda Motor,” the rating agency said in a note.

About 80% of the ship passengers were aged 60 or over, with 215 in their 80s and 11 in the 90s, the Japan Times newspaper reported.

Japan has sent four chartered flights to China’s Hubei province, the epicenter of the outbreak, for its citizens there to return, and plans a fifth. The 197 people who returned on the first chartered flight tested negative, the health ministry said.

 

(Reporting by Chris Gallagher, Ju-min Park, Ami Miyazaki, Elaine Lies and David Dolan; Writing by Linda Sieg; Editing by Kenneth Maxwell, Gerry Doyle, Raju Gopalakrishnan and Nick Macfie)

China’s new coronavirus cases drop, world still scared

By Ryan Woo and John Geddie

BEIJING/SINGAPORE (Reuters) – China reported on Wednesday its lowest number of new coronavirus cases in two weeks, bolstering a forecast by Beijing’s senior medical adviser for the outbreak in the country to end by April – but fears of further international spread remained.

The 2,015 new confirmed cases took China’s total to 44,653. That was the lowest daily rise since Jan. 30 and came a day after epidemiologist Zhong Nanshan said the epidemic should peak in China this month before subsiding.

His comments gave some balm to public fears and to markets, where global stocks surged to record highs on hopes of an end to disruption in the world’s second largest economy.

But the World Health Organization (WHO) has likened the epidemic’s threat to terrorism and one expert said that while it may be peaking in China, this was not the case beyond.

A man wearing a face mask rides a subway, following an outbreak of the novel coronavirus, in Beijing, China February 12, 2020. REUTERS/Tingshu Wang

“It has spread to other places where it’s the beginning of the outbreak,” Dale Fisher, head of the Global Outbreak Alert and Response Network coordinated by the WHO, said in an interview in Singapore. “In Singapore, we are at the beginning.”

Singapore has 50 cases, including one found at its biggest bank, DBS <DBSM.SI>, on Wednesday that caused an evacuation at head office.

Hundreds of infections have been reported in dozens of other countries and territories, but only two people have died outside mainland China: one in Hong Kong and another in the Philippines.

China’s latest figures also showed that the number of deaths on the mainland rose by 97 to 1,113 by the end of Tuesday.

But doubts have been aired on social media about how reliable the data is, after the government last week amended guidelines on classification.

 

QUARANTINED CRUISES

The biggest cluster outside China is on a cruise ship quarantined off Japan’s Yokohama port, with about 3,700 people on board, of whom 175 have tested positive.

There was a happy ending in sight for another cruise ship, the MS Westerdam, which Thailand, Japan, Taiwan, Guam and the Philippines had refused to let dock over fears one of its 1,455 passengers and 802 crew may have the virus.

Cambodia finally agreed to let it land, the Holland America Line said. Passengers have been whiling away time playing chess and doing puzzles.

“The staff has tried to bolster spirits but you can only play so many games of trivia,” American passenger Angela Jones told Reuters in a video. “I’ve asked others who say they are napping a lot”.

China’s state news agency Xinhua called the epidemic a “battle that has no gunpowder smoke” and chided some officials for “dropping the ball” in some places.

There was no lack of zeal, however, in the city of Chongqing where prosecutors brought charges against a man who strapped on firecrackers, doused himself with gasoline and held up a lighter to defy a ban on public gatherings.

He had planned a birthday banquet, Xinhua said.

The outbreak has been named COVID-19 – CO for corona, VI for virus, D for disease and 19 for the year that it emerged. It is suspected to have originated in a market illegally trading wildlife in Hubei province’s capital of Wuhan in December.

The city of 11 million people remains under virtual lockdown as part of China’s unprecedented measures to seal infected regions and limit transmission routes.

‘RACIST REPORTING’?

Moves by Washington and others to curb visitors from China have offended Beijing, which says they are an over-reaction.

Anti-Chinese sentiment has also reared on social media.

A Xinhua commentary chided some Western media for “racist reporting” on the coronavirus and ignoring “the unswerving efforts and huge sacrifice China and its people have made”.

“Just as the H1N1 influenza outbreak in the United States in 2009 should not be called an ‘American virus’, the NCP (novel coronavirus pneumonia) is neither a ‘China virus’ nor ‘Wuhan virus’,” it said, in a reference to the 2009 swine flu pandemic.

With companies laying off workers and supply chains disrupted from the car industry to smartphones, China’s economy is taking a big hit. ANZ Bank said first quarter growth may slow to between 3.2-4.0%, down from a projection of 5.0%.

However, the troubles were also triggering innovation.

One company in southwestern China built a tunnel to spray employees with disinfectant, while a steamed bun shop in Beijing is using a wooden board to serve customers and avoid contact.

The latest big event to be cancelled was Formula One’s Chinese Grand Prix, originally set for Shanghai on April 19.

Organisers of a global mobile conference in Barcelona were also mulling whether to pull the plug, two sources said, after several European telecom companies pulled out due to the coronavirus.

(Reporting by Ryan Woo, Huizhong Wu, Stella Qiu, Judy Hua, Kevin Yao, Zhang Min, Dominique Patton, Se Young Lee, Gabriel Crossley, Colin Qian, Roxanne Liu in Beijing; Brenda Goh, Josh Horwitz in Shanghai; Keith Zhai and John Geddie in Singapore; Stephanie Nebehay and Emma Farge in Geneva; Kay Johnson in Baghdad; Abhishek Takle in Baku; Isla Binnie in Madrid; Writing by Robert Birsel and Andrew Cawthorne; Editing by Clarence Fernandez, Timothy Heritage and Alex Richardson)

Factbox: Countries evacuating nationals from China coronavirus areas

(Reuters) – A growing number of countries around the world are evacuating or planning to evacuate diplomatic staff and citizens from parts of China hit by the new coronavirus.

Following are some countries’ evacuation plans, and how they aim to manage the health risk from those who are returning.

– Canada, after evacuating 215 last week, flew back 185 Canadians from Wuhan on Feb. 11. All evacuees will be quarantined on the Trenton, Ontario base for two weeks.

– Ukraine is preparing to evacuate its citizens from Wuhan on Feb. 11 by special charter plane to Kiev, the country’s embassy in China said on Feb. 10. Returning citizens would be put into mandatory quarantine for two weeks.

– A second evacuation flight is bringing back another 174 Singaporeans and their family members from Wuhan to the city-state on Feb. 9, Singapore’s foreign ministry said.

– Thirty Filipinos returned to the Philippines on Feb. 9 from Wuhan, the Department of Foreign Affairs said. The returning passengers and a 10-member government team will be quarantined for 14 days.

– Britain’s final evacuation flight from Wuhan, carrying more than 200 people, landed at a Royal Air Force base in central England on Feb. 9. A plane carrying 83 British and 27 European Union nationals from Wuhan landed in Britain last week.

– Two planes with about 300 passengers, mostly U.S. citizens, took off from Wuhan on Feb. 6 bound for the United States – the third group of evacuees from the heart of the coronavirus outbreak, the U.S. State Department said.

– Uzbekistan has evacuated 251 people from China and quarantined them on arrival in Tashkent, the Central Asian nation’s state airline said on Feb. 6.

– A plane load of New Zealanders, Australians and Pacific Islanders evacuated from Wuhan arrived in Auckland, New Zealand on Feb. 5, officials said.

– Taiwan has evacuated the first batch of an estimated 500 Taiwanese stranded in Wuhan.

– The 34 Brazilians evacuated from Wuhan landed in Brazil on Feb. 9, where they will begin 18 days of quarantine.

– Italy flew back 56 nationals from Wuhan to Rome on Feb. 3. The group will spend two weeks in quarantine in a military hospital, the government said.

– Saudi Arabia has evacuated 10 students from Wuhan, Saudi state television reported on Feb. 2.

– Indonesia’s government flew 243 Indonesians from Hubei on Feb. 2 and placed them under quarantine at a military base on an island northwest of Borneo.

– South Korea flew 368 people home on a charter flight that arrived on Jan. 31. A second chartered flight departed Seoul for Wuhan on Jan. 31, with plans to evacuate around 350 more South Korean citizens.

– Japan chartered a third flight to repatriate Japanese people, which arrived from Wuhan on Jan. 31, bringing the number of repatriated nationals to 565.

– Kazakhstan, which previously evacuated 83 people from Wuhan, will send two planes to China on Feb. 10 and Feb. 12 to evacuate its citizens. Out of 719 Kazakhs remaining in China, 391 have asked to be repatriated.

– Spain’s government is working with China and the European Union to repatriate its nationals.

– Russia said it would begin moving its citizens out of China via its Far Eastern region on Feb. 1, regional authorities said. It plans to evacuate more than 600 Russian citizens currently in Hubei, Deputy Prime Minister Tatiana Golikova said. A first Russian military plane took off on Feb. 4 to evacuate Russian citizens from Wuhan, the RIA news agency reported.

– The Netherlands is preparing the voluntary evacuation of 20 Dutch nationals and their families from Hubei, Foreign Minister Stef Blok said. The Netherlands is finalising arrangements with EU partners and Chinese authorities.

– France has evacuated some nationals from Wuhan and said it would place the passengers in quarantine. It said it would first evacuate nationals without symptoms and then those showing symptoms at a later, unspecified date.

– Swiss authorities said they hope to have about 10 citizens join the French evacuation of nationals from China.

– A plane brought 138 Thai nationals home from Wuhan last week. They will spend two weeks in quarantine.

(Compiled by Aditya Soni and Milla Nissi; Editing by Susan Fenton)

Factbox: Airlines suspend China flights due to coronavirus outbreak

(Reuters) – Airlines are suspending flights to China in the wake of the new coronavirus outbreak.

Below are details (in alphabetical order):

AIRLINES THAT HAVE CANCELED ALL CHINA FLIGHTS

*American Airlines – Jan. 31-March 27. Hong Kong service suspended Feb. 8-March 27.

*Air France – Said on Feb.6 it would suspend flights to and from mainland China for much of March

*Air Seoul – The South Korean budget carrier suspended China flights from Jan. 28 until further notice.

*Air Tanzania – Tanzania’s state-owned carrier, which had planned to begin charter flights to China in February, postponed its maiden flights.

*Austrian Airlines – until end February.

*British Airways – Jan. 29-March 31.

*Delta Airlines – Feb. 2-April 30

*Egyptair – Feb. 1 until further notice.

*El Al Israel Airlines – Jan. 30-March 25 following a health ministry directive.

*Finnair – Suspended all flights to China between Feb. 6-29, to Guangzhou between Feb. 5-March 29.

*Iberia Airlines – The Spanish carrier extended its suspension of flights from Madrid to Shanghai, its only route, from Feb. 29 until the end of April.

*Kenya Airways – Jan. 31 until further notice.

*KLM – Will extend its ban up to March 15

*Lion Air – All of February.

*Oman and Saudia, Saudi Arabia’s state airline, both suspended flights on Feb. 2 until further notice.

*Qatar Airways – Feb. 1 until further notice.

*Rwandair – Jan. 31 until further notice.

*Nordic airline SAS – Feb. 4-29.

*Scoot, Singapore Airlines’ low-cost carrier – Feb. 8 until further notice.

*United Airlines – Feb. 5-March 28. Service to Hong Kong suspended Feb. 8-20.

*Vietjet and Vietnam Airlines – Suspended flights to the mainland as well as Hong Kong and Macau Feb. 1-April 30, in line with its aviation authority’s directive.

AIRLINES THAT HAVE CANCELED SOME CHINA FLIGHTS/ROUTES

*Air Canada- Canceled direct flights to Beijing and Shanghai Jan. 30-Feb 29.

*Air China – State carrier said on Feb. 9 it will “adjust” flights between China and the United States.

*Air New Zealand – Suspended Auckland-Shanghai service Feb. 9-March 29.

*ANA Holdings – Suspended routes including Shanghai and Hong Kong from Feb. 10 until further notice.

*Cathay Pacific Airways – Plans to cut a third of its capacity over the next two months, including 90% of flights to mainland China. It has encouraged its 27,000 employees to take three weeks of unpaid leave in a bid to preserve cash.

*Emirates and Etihad – The United Arab Emirates, a major international transit hub, suspended flights to and from China, except for Beijing.

*Hainan Airlines – Suspended flights between Budapest, Hungary, and Chongqing Feb. 7-March 27.

*Philippine Airlines – Cut the number of flights between Manila and China by over half.

*Qantas Airways – Suspended direct flights to China from Feb. 1. The Australian national carrier halted flights from Sydney to Beijing and Sydney to Shanghai between Feb. 9-March 29.

*Royal Air Maroc – The Moroccan airline suspended direct flights to China Jan. 31-Feb. 29. On Jan. 16, it had launched a direct air route with three flights weekly between its Casablanca hub and Beijing.

*Russia – All Russian airlines, with the exception of national airline Aeroflot, stopped flying to China from Jan. 31. Small airline Ikar will also continue flights between Moscow and China. All planes arriving from China will be sent to a separate terminal in the Moscow Sheremetyevo airport.

*Singapore Airlines – Suspended or cut capacity on flights to Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, Xiamen and Chongqing, some of which are flown by regional arm SilkAir.

*UPS – Canceled 22 flights to China because of the virus and normal manufacturing closures due to the Lunar New Year holiday.

*Virgin Atlantic – Extended its suspension of daily operations to Shanghai until March 28.

*Virgin Australia – Said it will withdraw from the Sydney-Hong Kong route from March 2 because it was “no longer a viable commercial route” due to growing concerns over the virus and civil unrest in Hong Kong.

(Compiled by Jagoda Darlak, Tommy Lund and Aditya Soni, editing by Barbara Lewis and Uttaresh.V)

Countries rush to build diagnostic capacity as coronavirus spreads

By Julie Steenhuysen and Stephanie Nebehay

CHICAGO/GENEVA (Reuters) – A week ago, only two laboratories in Africa could diagnose the novel coronavirus that originated in China and is rapidly spreading around the world. As of Sunday, the World Health Organization (WHO) expected every nation in Africa to be able to diagnose the disease.

The rush reflects a global push for diagnostic capabilities, particularly in developing countries, in hopes of averting a global pandemic. But it is being slowed by a desperate need for virus samples necessary to validate the tests.

“Without vital diagnostic capacity, countries are in the dark as to how far and wide the virus has spread and who has coronavirus or another disease with similar symptoms,” WHO chief Tedros Adhanom Ghebreyesus told a news conference in Geneva on Monday.

As of early Tuesday, there had been 42,708 confirmed cases reported in China and 1017 deaths, as well as 319 cases in 24 other countries, including one death.

Most of the testing is being done by public health laboratories. But several companies including Thermo Fisher Scientific Inc, GenScript Biotech Corp and Co-Diagnostics Inc have developed tests and are taking steps to get them validated for clinical use.

Roche is distributing coronavirus tests developed by Tib Molbiol of Berlin for research use on some of its instruments while developing a test of its own. Abbott Laboratories also is working on a test.

WHO has activated a network of 15 referral laboratories that can support national efforts in confirming new cases, and has identified 168 labs globally with the technology to diagnose the virus.

FILE PHOTO: Workers wearing protective suits drive an ambulance near the cruise ship Diamond Princess, as they prepare to transfer passengers tested positive for the novel coronavirus, at Daikoku Pier Cruise Terminal in Yokohama, south of Tokyo, Japan February 10, 2020. REUTERS/Kim Kyung-Hoon/File Photo

Technicians must be trained to run the tests locally to avoid delays associated with having to send them to centralized labs.

On Tuesday, WHO is convening a two-day meeting of hundreds of researchers and manufacturers to address the outbreak.

WORKLOAD ON LABS IS ‘EXTREME’

Researchers are also working to develop antibody tests that can tell whether someone has been exposed to the virus. They could help answer how broadly this virus has spread, and whether there are milder cases not being detected, Dr. Mike Ryan, head of the WHO emergency program, told reporters.

China appears to have adequate stock of the materials needed to perform diagnostic tests, but there is a limited number of trained technicians who can run them. “The workload on those labs is extreme,” Ryan said.

Outside of China, manufacturers are quickly developing tests based on the genetic code of the virus. Those tests still need to be validated with actual virus samples, for which access has been challenging.

Live isolation of the virus allows a huge advance in diagnostics and potential advances in therapeutics and vaccine development, Ryan said.

GenScript, which has offices in New Jersey and Nanjing, China, has developed a test available to researchers. It cannot be used as a diagnostic until it has been tested in hundreds of virus samples.

“In China, we couldn’t get to the samples directly because we don’t have a lab that can handle the virus,” said Hong Li, a GenScript scientist.

The company has sent its test kits to Chinese health officials to assess their validity. “Because other companies in China are also doing that, we don’t know when it will be our turn,” said Eric Wang, GenScript’s head of marketing.

Utah-based Co-Diagnostics on Monday said it has started shipping its test, which is available for research purposes, to clients. Chief Scientific Officer Brent Satterfield said last week that the company has been struggling to find clinical virus samples to validate the test for use as a diagnostic.

Thermo Fisher developed its tests based on the genetic code of the virus, and ran computer models to validate it.

The company has been providing its test to countries and health ministries with access to virus samples, said Thermo Fisher executive Joshua Trotta. “They will evaluate our kits and make a determination of what is the best test to deploy.”

Meanwhile, Thermo Fisher is scaling up production as countries prepare for more cases. Demand is “growing every day,” Trotta said.

(Reporting by Julie Steenhuysen in Chicago and Stephanie Nebehay in Geneva; Editing by Bill Berkrot)

Nearly 200 Americans evacuated from China set to be freed from quarantine

(Reuters) – Nearly 200 Americans evacuated from the epicenter of the coronavirus outbreak in China could be released from quarantine at a U.S. Air Force base in California on Tuesday after 14 days, a leading U.S. health official said.

The first group of U.S. citizens to be evacuated from the coronavirus-stricken Chinese city of Wuhan are mostly U.S. State Department employees and their families. They were flown by government-chartered cargo jet to March Air Reserve Base in Riverside County about 60 miles (97 km) east of Los Angeles.

“They are being assessed to make sure they remain symptom-free and we hope they’ll be released to travel home today,” Dr. Anne Schuchat, principal deputy director for the U.S. Centers for Disease Control and Prevention (CDC), told a news conference at the National Press Club in Washington.

The fast-spreading virus has killed more than 1,000 people in China, where there have been nearly 43,000 cases. There have been another 319 confirmed cases in 24 other countries, including 13 in the United States.

The 195 people arrived in the United States on Jan. 29 and their quarantine expires on Tuesday. On Feb. 5, two more planes carrying about 350 Americans out of Wuhan arrived at two other military base in California and are subjected to 14-day quarantines.

The first group was limited to a fenced quarantine area on the base, where only official medical staff were allowed to enter. However, employees at the base including uniformed airmen have been accosted out of unfounded fears that they were at increased risk of exposure, a local health official said.

“There have been comments made that have been hurtful – both in person and on social media – that are often based on incorrect or incomplete information,” Cameron Kaiser, the public health officer for Riverside County, said in an open letter to the public on Monday.

“A few base workers have even been accosted in uniform. This is not acceptable, and needs to stop,” Kaiser said.

As of Monday, none had reported positive for the coronavirus, and all of those who have not developed symptoms will be allowed to leave, Kaiser said. Only two people developed symptoms and both retested negative, he said.

The United States has also authorized the voluntary departure of U.S. government employees and their relatives from Hong Kong, the State Department said on Tuesday.

The authorization was made “out of an abundance of caution related to uncertainties associated” with the disease, according to a department spokesperson.

(Reporting by Michael Erman, Manas Mishra, Lisa Lambert and Daniel Trotta; Editing by Bill Berkrot)

Coronavirus cases may be ‘tip of the iceberg’ outside China: WHO

By Shivani Singh and Colin QianBEIJING (Reuters) – People across China trickled back work on Monday after an extended Lunar New Year holiday as the government eased restrictions imposed to counter the coronavirus, but the World Health Organization (WHO) said the number of cases outside China could be just “the tip of the iceberg”.

The death toll from the epidemic rose to 908, all but two in mainland China, on Sunday as 97 more fatalities were recorded – the largest number in a single day since the virus was detected in the city of Wuhan in December.

The Diamond Princess cruise ship with 3,700 passengers and crew onboard remained quarantined in the Japanese port of Yokohama, with 65 more cases detected, taking the number of confirmed case from the Carnival Corp-owned vessel to 135.

European stocks fell on concerns about the impact of the closure of factories in China, the world’s second-largest economy, on supply chains for companies from Taiwan’s iPhone-maker Foxconn to carmakers Kia Motors and Nissan

Across mainland China, 3,062 new infections were confirmed on Sunday, bringing the total number to 40,171, according to the National Health Commission (NHC). An advance team of international WHO experts was en route to Beijing to investigate the outbreak.

Wu Fan, vice-dean of Shanghai Fudan University Medical school, said there was hope the spread might soon reach a turning point.

“The situation is stabilising,” she told a briefing when asked about the spread in Shanghai, which has had nearly 300 cases and one death.

But WHO chief Tedros Adhanom Ghebreyesus said there had been “concerning instances” of transmission from people who had not been to China.

“The detection of a small number of cases may indicate more widespread transmission in other countries; in short, we may only be seeing the tip of the iceberg,” he said in Geneva.

The virus has spread to at least 27 countries and territories, according to a Reuters count based on official reports, infecting more than 330 people. The two deaths outside mainland China were in Hong Kong and the Philippines.

The death toll from the outbreak has now surpassed that of Severe Acute Respiratory Syndrome (SARS), which killed hundreds worldwide in 2002/2003.

NERVOUS COMMUTERS

Usually teeming cities have become virtual ghost towns after Communist Party rulers ordered lockdowns, cancelled flights and closed factories and schools.

Ten extra days had been added to the Lunar New Year holidays that had been due to finish at the end of January. But even on Monday, many workplaces remained closed and many people worked from home.

Few commuters were seen during the morning rush-hour on one of Beijing’s busiest subway lines. All were wearing masks.

One Beijing government official, Zhang Gewho, said it would be be harder to curb the spread of the virus as people returned to work.

“The capacity of communities and flow of people will greatly increase and the difficulty of virus prevention and control will further rise,” he said.

Hubei, the province of 60 million people that is the hardest hit by the outbreak, remains in virtual lockdown, with its train stations and airports shut and its roads sealed.

In Britain, the government said on Monday the number of confirmed coronavirus cases there had doubled to eight and it declared the virus a serious and imminent threat, giving it additional powers to isolate those suspected of being infected.

China’s central bank has taken a raft of steps to support the economy, including reducing interest rates and flushing the market with liquidity. From Monday, it will provide special funds for banks to re-lend to businesses.

President Xi Jinping, who has largely kept out of the spotlight, leaving Premier Li Keqiang to take the public lead in government efforts to control the outbreak, said on Monday the government will prevent large-scale layoffs, Chinese state television reported.

Xi, who was shown on television inspecting the work of community leaders in Beijing, and wearing a mask as he had his temperature taken, also said China will strive to meet economic and social targets for the year.

He reiterated that China would beat the virus. One senior economist has said growth may slow to 5% or less in the first quarter.

More than 300 Chinese firms including Meituan Dianping, China’s largest food delivery company, and smartphone maker Xiaomi Corp are seeking loans totalling at least 57.4 billion yuan ($8.2 billion), two banking sources said.

Apple’s biggest iPhone maker, Foxconn, won approval to resume production in the eastern central Chinsese city of Zhengzhou, but only 10% of the workforce has managed to return, a source said. But the southern city of Shenzhen rejected a company request to resume work there.

Much remains to be determined about the virus, which has been linked to a market selling animals in Wuhan, the capital of Hubei province.

Scientists at Imperial College London published new estimates of an overall case fatality rate of 1%.

But they said that this could range from 0.5% to 4% and warned there was “substantial uncertainty” due to varying levels of surveillance and data reporting.

For graphic comparing new coronavirus to SARS and MERS, click: https://tmsnrt.rs/2GK6YVK

(Additional reporting by Sophie Yu, Ryan Woo, Huizhong Wu, Liangping Gao, Stella Qiu, Brenda Goh in Beijing, Stephanie Nebehay in Geneva, Joyce Lee and Hyunjoo Jin in Seoul, Kylie MacLellan and Kate Kelland in London, Writing by Lincoln Feast, Robert Birsel and Nick Macfie; Editing by Angus MacSwan)

Fed says risks to economy easing, but calls out coronavirus in report to Congress

By Howard Schneider and Lindsay Dunsmuir

WASHINGTON (Reuters) – A “moderately” expanding U.S. economy was slowed last year by a manufacturing slump and weak global growth, but key risks have receded and the likelihood of recession has declined, the U.S. Federal Reserve reported in its latest monetary policy report to the U.S. Congress.

“Downside risks to the U.S. outlook seem to have receded in the latter part of the year, as the conflicts over trade policy diminished somewhat, economic growth abroad showed signs of stabilizing, and financial conditions eased,” the Fed said, noting that the U.S. job market and consumer spending remained strong.

“The likelihood of a recession occurring over the next year has fallen noticeably in recent months.”

Among the risks the Fed did note: the fallout from the spreading outbreak of coronavirus in China, “elevated” asset values, and near-record levels of low-grade corporate debt that the Fed fears could become a problem in an economic downturn.

Overall, however, the Fed saw risks to a more than decade long U.S. recovery easing following its three interest rate cuts in 2019, and evidence that “the global slowdown in manufacturing and trade appears to be at an end, and consumer spending and services activity around the world continue to hold up.”

It cautioned that “the recent emergence of the coronavirus, however, could lead to disruptions in China that spill over to the rest of the global economy.”

By law the Fed twice a year prepares a formal report for the U.S. Congress on the state of the economy and monetary policy.

Much of its amounts to a review of recent events. The new document repeats the Fed’s assessment that the current level of the federal funds rate, in a range of between 1.5% and 1.75% was “appropriate” to keep the recovery track.

It also reviewed the spike in the federal funds rate last fall and the steps the Fed has taken to relieve funding pressures, repeating it considers the measures technical and not a change in monetary policy.

Fed Chair Jerome Powell will present the report at two public hearings next week, and some Democratic U.S. senators have already posed in writing a series of questions challenging the Fed’s actions in those short-term funding markets.

The document did include a separate section analyzing how a slump in manufacturing last year impacted economic growth overall, after concern a downturn in that sector might pull the United States into a recession.

The Fed concluded that the slowdown in factory output, which also meant less business for parts and services suppliers, cut overall growth in gross domestic product between 0.2 and 0.5 percentage points.

That falls “well short” of the threshold associated with past recessions, the Fed said.

(Reporting by Howard Schneider and Lindsay Dunsmuir; Editing by Andrea Ricci)

Coronavirus brings China’s surveillance state out of the shadows

By Yingzhi Yang and Julie Zhu

BEIJING/HONG KONG (Reuters) – When the man from Hangzhou returned home from a business trip, the local police got in touch. They had tracked his car by his license plate in nearby Wenzhou, which has had a spate of coronavirus cases despite being far from the epicenter of the outbreak. Stay indoors for two weeks, they requested.

After around 12 days, he was bored and went out early. This time, not only did the police contact him, so did his boss. He had been spotted near Hangzhou’s West Lake by a camera with facial recognition technology, and the authorities had alerted his company as a warning.

FILE PHOTO: Surveillance cameras are seen at Lujiazui financial district of Pudong, Shanghai, China January 15, 2020. REUTERS/Aly Song

“I was a bit shocked by the ability and efficiency of the mass surveillance network. They can basically trace our movements with the AI technology and big data at any time and any place,” said the man, who asked not to be identified for fear of repercussions.

Chinese have long been aware that they are tracked by the world’s most sophisticated system of electronic surveillance. The coronavirus emergency has brought some of that technology out of the shadows, providing the authorities with a justification for sweeping methods of high tech social control.

Artificial intelligence and security camera companies boast that their systems can scan the streets for people with even low-grade fevers, recognize their faces even if they are wearing masks and report them to the authorities.

If a coronavirus patient boards a train, the railway’s “real name” system can provide a list of people sitting nearby.

Mobile phone apps can tell users if they have been on a flight or a train with a known coronavirus carrier, and maps can show them locations of buildings where infected patients live.

Although there has been some anonymous grumbling on social media, for now Chinese citizens seem to be accepting the extra intrusion, or even embracing it, as a means to combat the health emergency.

“In the circumstances, individuals are likely to consider this to be reasonable even if they are not specifically informed about it,” said Carolyn Bigg, partner at law firm DLA Piper in Hong Kong.

NEW TECHNOLOGIES

Telecoms companies have long quietly tracked the movements of their users. China Mobile <0941.HK> promoted this as a service this week, sending text messages to Beijing residents telling them they can check where they have been over the past 30 days. It did not explain why users might need this, but it could be useful if they are questioned by the authorities or their employers about their travel.

“In the era of big data and internet, the flow of each person can be clearly seen. So we are different from the SARS time now,” epidemiologist Li Lanjuan said in an interview with China’s state broadcaster CCTV last week, comparing the outbreak to a virus that killed 800 people in 2003.

“With such new technologies, we should make full use of them to find the source of infection and contain the source of infection.”

The industry ministry sent a notice to China’s AI companies and research institutes this week calling on them to help fight the outbreak. Companies have responded with a flurry of announcements touting the capabilities of their technology.

Facial recognition firm Megvii said on Tuesday it had developed a new way to spot and identify people with fevers, with support from the industry and science ministries. Its new “AI temperature measurement system”, which detects temperature with thermal cameras and uses body and facial data to identify individuals, is already being tested in a Beijing district.

SenseTime, another leading AI firm, said it has built a similar system to be used at building entrances, which can identify people wearing masks, overcoming a weakness of earlier technology. Surveillance camera firm Zhejiang Dahua <002236.SZ> says it can detect fevers with infrared cameras to an accuracy within 0.3ºC.

In an interview with state news agency Xinhua, Zhu Jiansheng of the China Academy of Railway Sciences explained how technology can help the authorities find people who might be exposed to a confirmed or suspected coronavirus case on a train.

“We will retrieve relevant information about the passenger, including the train number, carriage number and information on passengers who were close to the person, such as people sitting three rows of seats before and after the person,” he said.

“We will extract the information and then provide it to relevant epidemic prevention departments.”

(Editing by Jonathan Weber and Peter Graff)

Foxconn, Chinese firms refit production lines to make masks amid virus outbreak

By Josh Horwitz and Brenda Goh

SHANGHAI (Reuters) – A number of Chinese manufacturers including a subsidiary of Apple Inc partner Foxconn have refitted production lines to make masks and medical clothing, as a deadly coronavirus spreads across China.

The move highlights how private companies are pitching in to alleviate a nationwide shortage of medical gear amid the health crisis, at times expanding beyond their core lines of business.

In a social media post on Thursday, Foxconn – formally Hon Hai Precision Industry Co Ltd – said it has begun trial production of surgical masks at its Longhua Park plant in Shenzhen, and expects to produce 2 million masks daily by the end of the month.

The Taiwanese company said the masks would initially be produced for internal use by its hundreds of thousands of employees, the majority of whom work in factories in mainland China.

SAIC-GM-Wuling Automobile Co Ltd, a joint venture automaker formed by General Motors Co <GM.N> and two Chinese partners, also announced on Thursday via social media that it will set up 14 production lines with the goal of making 1.7 million masks daily.

On Tuesday, Hongdou Group Co Ltd [HONGD.UL], a clothing manufacturer founded in the 1950s, wrote on social media it had refitted a factory to make disposable medical suits.

The company said it intends to produce about 60,000 protective suits a month and will send them to the government for allocation and distribution. Hongdou employs 30,000 people, its website showed.

Apparel peers Zhejiang Giuseppe Garment Co Ltd and Jihua Group Corp Ltd  have launched similar initiatives, state media outlets reported this week.

Factories inside and outside of China have worked around the clock to keep up with demand since the outbreak of the virus at the end of last year in the eastern Chinese city of Wuhan in Hubei province. High street pharmacies have posted signs telling customers masks are not in stock.

One Czech mask manufacturer told Reuters in late January that orders had increased 57,000% with in four days.

To cope with the shortage, localities in China have set up rationing systems.

In Shanghai, individuals wanting to obtain masks must provide a neighborhood committee with their ID and phone number, after which they are contacted when they can retrieve a set of masks.

(Reporting by Josh Horwitz and Brenda Goh; Additional reporting by the Shanghai newsroom; Editing by Christopher Cushing)