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• Key high-frequency data is expected to be released early this week, which is expected to show a big downturn for the Chinese economy
• Markets though could continue to meander on the downside as positive triggers are missing

The spread of the corona virus outside of China remains a key risk for the markets in both domestic and global markets. Over 5000 cases of new coronavirus cases were reported outside China last week spooking global markets into its worst-ever weekly sell-off in many years. Intensive selling may ease, but the risk is not yet off the table as global equities were quite stiffly priced.

JP Morgan notes that markets were not set up for a massive global shock like the Covid-19 given where financial assets were priced coming into the year. But some shocks will be inevitable. The Chinese economy is expected to post its worst first quarter, which does not bode well for Asian countries that are dependent on China in both supply chains and tourism.

Key high-frequency data is expected to be released early this week, which is expected to show a big downturn for the Chinese economy. India’s PMI data, which showed a healthy growth last month coming in at 55.3 times, remains at risk, though some of the coronavirus related effects may be yet not be captured in this month’s data.

Markets though could continue to meander on the downside as positive triggers are missing. The third-quarter results were mixed, while key macros sectors such as autos and housing continued to remain on the slow lane.

A quick resumption in the supply-chain becomes an important variable in the resumption of corporate growth. Autos continue to remain on weak grounds as the sector now braces for a virus-related slowdown.

Likewise, the pharma sector is also facing some headwinds on raw materials sourcing. To top it, domestic sales of pharma companies have shown signs of easing last month.

But metals are among the worst hit in the global economy as China remains a dominant metals player. A shutdown in China has sent metal prices correcting across the globe, and it does not seem like there is light at the end of the tunnel for this beleaguered sector any time soon.

To top it, some high-flying sectors such as consumption have been showing divergent growth trends within the sector.

All in all, there is nothing to cheer the market forward though. The Gross Domestic Product numbers released last week were not comforting, though it shows that growth remains elusive. But nevertheless, these numbers reflect the state of the economy much before the virus became a larger threat.

So this may well, be a slow, downward grinding market for now, though the worst seems to be over. Some larger-cap names have been hit harder as foreign investors have pulled out large sums of money from the markets. Small and mid-caps have not been roiled in this market just yet, as some of these segments are just beginning to see domestic inflows.

So, it remains a mixed outlook in terms of which sectors could be further roiled due to the volatility. Global ETF selling remains a key risk, particularly for the large-caps.

• The Trump administration is testing 'off the shelf' drugs that could be used to combat the virus
• The US Surgeon General urged people to 'stop buying masks,' as they’re not effective in preventing the general public from catching coronavirus

On Sunday, China reported 35 new coronavirus deaths — the lowest in three days — and 573 more cases for 29 February, with 570 of the fresh infections in Hubei, while the global confirmed cases increased to almost 87,000. South Korea added 376 more cases, taking the total to 3,526, according to local media reports.

Among the 79,824 confirmed cases in China, 2,870 people have died, 35,329 patients are still being treated while 41,625 have been discharged after recovery, The National Health Commission said. The commission said 51,856 close contacts were still under medical observation.

The US, Australia and Thailand reported their first deaths caused by the coronavirus, while the Trump administration expanded travel restrictions, including advisories barring travel to parts of Italy and South Korea most affected by the outbreak.


Meanwhile, in an official report on Coronavirus Disease 2019 (COVID-19) released jointly by the World Health Organisation (WHO) and China's National Health Commission identified the infection as a zoonotic virus, meaning an infectious disease caused by bacteria, viruses, or parasites that spread from animals to humans.

With new infections reported around the world now surpassing those in China, WHO director General Tedros Adhanom Ghebreyesus has asked nations to be prepare for pandemic.

"This virus has pandemic potential," Tedros said. "This is not a time for fear. This is a time for taking action to prevent infection and save lives now."

Here are the latest updates on coronavirus and its global impact:

UK reports 12 new coronavirus cases, total now 35


British health authorities said today there had been 12 new cases of coronavirus in Britain, bringing the total to 35.

Chief Medical Officer Chris Whitty said in a statement on Twitter that three of those testing positive were close contacts of a known case.


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Six others had recently travelled from Italy, and two from Iran. One patient had no relevant travel, and authorities were investigating how they had caught the virus.

All passengers, workers on Diamond Princess ship have disembarked, says Japan

All the remaining passengers and workers on the quarantined Diamond Princess cruise ship docked in Japan’s Yokohama harbor have disembarked, Health Minister Katsunobu Kato told reporters in Tokyo on Sunday.

Cruise ship Diamond Princess
Cruise ship Diamond Princess (Photo: AP)

About 700 of some 3,700 passengers and crew who were on Carnival Corp.’s Diamond Princess were infected with the coronavirus and there were at least seven fatalities.

Indian automakers say coronavirus outbreak hitting parts supply from China

Indian automakers Mahindra and Mahindra Ltd (M&M) and Tata Motors said on Sunday their supply of parts from China had been hit, as fallout from the coronavirus outbreak mounts.

"Going into March, we anticipate the challenge on parts-supply to continue for another few weeks, before we get back to normalcy," Veejay Ram Nakra, Chief of Sales and Marketing at M&M's automotive division said in a press release.

Tata Motors said in a press release that it, too, had been hit by supply disruptions due to the coronavirus outbreak in China, and was working to mitigate the situation.


Israeli airline EL AL eyes mass job cuts over coronavirus

Israeli airline El Al said today it was considering firing 1,000 staff out of its total workforce of around 6,000 due to losses linked to the novel coronavirus outbreak.

Israel has cancelled direct flights to and from areas of high contamination and has barred foreign nationals from entering the country if they have travelled from such areas.

Last week, El Al was ordered to cancel its service to Italy following health ministry warnings, Tel Aviv business daily Globes reported.

Pakistan closes Afghan border crossing over virus fears

Pakistan is closing one of its two border crossings with Afghanistan for a week to prevent the spread of coronavirus, AFP reported.

The announcement comes a day after Pakistan detected two new cases of the virus bringing the total number of infected patients to four.


Officials said the Chaman/Spinboldak crossing point would close from Monday, but a second point at Torkhum in the northwest would remain open.

The country has suspended all flights to Iran and closed land borders.

Malaysia reports 4 new cases of coronavirus, number rises to 29

Malaysia reported four new cases of coronavirus today, bringing the total number of infections in the country to 29.

All of the new cases were among Malaysian nationals, one of whom had travelled to China while another had travelled recently to Milan, northern Italy, the health ministry said.

Malaysia's sovereign wealth fund Khazanah Nasional said one of the new cases was one of its employees, without giving further details about the person.

Of Malaysia's total cases, 22 patients have recovered and been discharged from hospital.


India in touch with Iran over its citizens stuck there due to outbreak

The Indian government today said its has received reports of its citizens including fishermen stuck in Iran due to the outbreak and its embassy in Tehran is in touch with local authorities on the issue.

Indian envoy to Iran Gaddam Dharmendra had on Saturday said the authorities are working to facilitate the return of Indians who wish to go back home and discussions were underway with authorities.

Iran says 54 dead as coronavirus spreads more rapidly

The deadly coronavirus claimed another 11 lives in Iran, bringing the country's overall toll to 54, according to official figures released on Sunday that showed the virus was spreading more rapidly, AFP reported.


"Eleven people lost their lives" in the past 24 hours, health ministry spokesman Kianoush Jahanpour told a televised news conference, adding that testing across the country showed there were 385 new cases.

It was the highest number of new cases for the third successive day in the Islamic republic, which now has 978 confirmed infections.

China reports fresh spike in coronavirus cases, Trump urges calm after US death

China reported a fresh spike in coronavirus infections on Sunday, as President Donald Trump urged calm after the first death on US soil and Australia registered its first fatality.

The virus has spread to more than 60 countries around the globe, prompting the World Health Organization to raise its risk assessment to its highest level.


China on Sunday reported 573 new infections, the highest figure in a week after a dip. All but three of them were in Hubei province, of which Wuhan is the capital.

While the numbers in China are still far lower than the huge daily increases reported during the first two weeks of February, COVID-19 has spread rapidly across borders, with South Korea, Italy and Iran emerging as hotspots.

South Korea, which has the most infected people outside China, reported 586 new cases on Sunday, bringing its total to 3,736.

UK steps up coronavirus planning, may bring doctors out of retirement

Britain is planning for the global coronavirus epidemic to get worse, health minister Matt Hancock said today, describing the outbreak as a "very, very significant challenge".


Prime Minister Boris Johnson will chair a meeting of the government's emergency response committee on Monday, signalling a stepping up of Britain's preparation for the epidemic.

British health minister Matt Hancock describes the outbreak as a 'very, very significant challenge'
British health minister Matt Hancock describes the outbreak as a 'very, very significant challenge' (Photo: Reuters)
"We've got a clear strategy for dealing with coronavirus - a very, very significant challenge," Hancock told Sky News. "We're also planning in case this gets worse, much worse."


If the virus becomes more widespread, the government will look at registering retired health workers to work again, and whether encouraging people to work at home could delay its peak until summer when it can be more easily dealt with.

Coronavirus travel questions: How to stay safe, what to avoid and do masks really help?

A Q&A for anyone worried about traveling right now: How to stay safe, what to avoid and do masks really help?

Should I cancel my trip because of coronavirus?

It depends—primarily on where you’re planning to travel, but on other factors, too. As of Feb. 28, the virus had spread to 56 countries and every continent except for Antarctica, with the total sure to rise. But government agencies are only warning against travel to a handful of destinations. Such warnings “are things that should be taken seriously," said Dr. Richard Dawood, a travel medicine specialist and medical director for the Fleet Street Clinic in London.


What are the precautions I should take?

If you haven’t already, get your flu shot—at least two weeks before you depart. “It prevents you from getting an illness that you think is coronavirus, because they can act very similarly," Dr. Eisenman said. Flu-like symptoms can also put you at risk for quarantine.

Be vigilant about practicing basic good hygiene, he said. Wash your hands frequently, for at least 20 seconds, and avoid touching your face. “If somebody around you is sick, keep a 6-foot distance away from them," Dr. Eisenman said. “And if you are coughing or sneezing, try to avoid people."

Finally, don’t let coronavirus fears keep you from taking precautions against other illnesses, such as malaria and typhoid. “In most areas, the risk of travel-related diseases is higher than coronavirus," Dr. Kappagoda said.


Italy readies measures worth €3.6 billion to tackle coronavirus

Italy will introduce this week measures worth €3.6 billion ($3.5 billion), or 0.2% of gross domestic product (GDP), to help the economy withstand the coronavirus crisis, Economy Minister Roberto Gualtieri said on Sunday.

In an interview with La Repubblica newspaper, Gualtieri said he was confident the European Union would approve the necessary hike in Italy's official deficit target, adding that eurogroup ministers would talk mid-week by phone about the situation.

South Africa to quarantine returnees from virus epicenter

South Africa’s government will quarantine dozens of citizens who’ve asked to be repatriated from Wuhan, China, the epicenter of an outbreak of the novel coronavirus, Health Minister Zweli Mkhize said.

There are 201 South Africans currently living in the Wuhan area, 151 of whom indicated they wish to return home, Mkhize told reporters Sunday in Johannesburg. While all of those being repatriated have tested negative for the virus, they’ll be quarantined for 21 days as a precautionary measure, he said.


The government identified 84 possible sites for the military-guarded facility, Mkhize said, declining to specify which location had been chosen.

Who is most at risk of dying from croronavirus

As the number of confirmed coronavirus cases across 61 countries hit 86,000 Saturday with nearly 3,000 deaths to date, the profile of those most at risk of dying is coming into focus, experts told AFP.

But the overall mortality rate remains uncertain, they said.

Among those infected with the virus, older adults with preexisting heart conditions or hypertension face a sharply higher risk, according to preliminary statistics, including from a study covering more than 72,000 patients in China.

Tourists wear protective masks in Saint Mark's Square in Venice as Italy battles a coronavirus outbreak.
Tourists wear protective masks in Saint Mark's Square in Venice as Italy battles a coronavirus outbreak. (Photo: Reuters)

Among a subset of 44,700 infections confirmed through lab tests as of mid-February, more than 80% were at least 60 years old, with half over 70, said the study, that was published in the official China CDC Weekly.

Initial reports from outside China are similar, with the first 12 victims reported in Italy mostly in their 80s, and none under 60. Several had known heart problems.

Men in the China study were more likely to die than women by a margin of almost 3-to-2.

One striking finding from the China study is the near absence of cases among children.

Emirates Group offers leave to staff as virus saps demand for travel

Emirates Group, which runs the world’s biggest airline by international traffic, is encouraging staff to take leave as the coronavirus outbreak slows demand for travel.


“We’ve seen a measurable slow-down in business across our brands, and a need for flexibility in the way we work," according to an internal email seen by Bloomberg and confirmed by the Dubai-based airline.

The airline asked employees to consider taking paid or unpaid leave, according to the email.

WHO chief says window narrowing after 1st US death

World Health Organization chief Tedros Adhanom Ghebreyesus said the window is narrowing to contain the new coronavirus after the US, Australia and Thailand reported their first fatalities.

WHO chief Tedros Adhanom Ghebreyesus
WHO chief Tedros Adhanom Ghebreyesus (Photo: Reuters)

There’s no need for fear and panic in the markets, the WHO director general said in Riyadh. While countries need to prepare for a pandemic, facts show there’s no such threat yet, he said. “We shouldn’t abandon the containment strategy because we see it’s working in some countries."

South Korea reports 210 new coronavirus cases, raising total to 3,736: KCDC

Kuwait confirms one new case of coronavirus infection in the past 24 hours, coming from Iran

China may repatriate overseas citizens if necessary due to outbreak

China will take measures to repatriate its citizens in countries seriously affected by the coronavirus outbreak if necessary, an official at the country's foreign ministry said today.

Cui Aiming, the foreign ministry official who spoke at a briefing in Beijing, did not name any particular countries, Reuters reported.


China customs official said will step up inspection of vehicles and people coming from countries hard hit by coronavirus.

Over 86,000 infected globally, more than 2,900 deaths recorded to today

A viral outbreak that began in China has infected more than 86,000 people globally. The latest figures, based on WHO and national counts:

Mainland China: 2,870 deaths among 79,824 cases, mostly in the central province of Hubei.

Hong Kong: 94 cases, 2 deaths, Macao: 10 cases

South Korea: 3,526 cases, 17 deaths

Italy: 1,128 cases, 29 deaths

Japan: 947 cases, including 705 from the Diamond Princess cruise ship, 12 deaths

Iran: 593 cases, 43 deaths

Singapore: 102 — France: 100 cases, 2 deaths

Germany: 66

United States: 62 cases, 1 death


Spain: 46

Kuwait: 45

Thailand: 42 cases, 1 death

Taiwan: 39 cases, 1 death

Bahrain: 38

Malaysia: 24

Australia: 23, 1 death

United Kingdom: 23 cases, 1 death

Canada: 20

United Arab Emirates: 19

Vietnam: 16

Norway: 15

Iraq: 13

Sweden: 13

Switzerland: 10

Lebanon: 7

Netherlands: 7

Croatia: 6

Oman: 6

Austria: 5

Israel: 5

Russia: 5

Greece: 4

Mexico: 4

Pakistan: 4

Finland: 3

India: 3

Philippines: 3 cases, 1 death

Romania: 3

Brazil: 2

Denmark: 2

Georgia: 2

One confirmed case in the following countries: Algeria, Afghanistan, Azerbaijan, Belarus, Belgium, Cambodia, Ecuador, Egypt, Estonia, Iceland, Ireland, Lithuania, Monaco, Nepal, New Zealand, Nigeria, North Macedonia, Qatar, San Marino and Sri Lanka

Japan reports 6th death from coronavirus, in-hospital infection suspected


A man in his 70s died on Japan's northernmost island of Hokkaido after testing positive for COVID-19, the disease caused by the coronavirus called SARS-CoV-2, local authorities said on Sunday.

The man's death marks the sixth fatality from COVID-19 in Japan, excluding six deaths among those aboard the cruise ship Diamond Princess.
The man's death marks the sixth fatality from COVID-19 in Japan, excluding six deaths among those aboard the cruise ship Diamond Princess. (Reuters)
The municipal government of Hokkaido said the patient was hospitalized on Jan. 17 for another disease, but started to show flu-like symptoms a few weeks later and tested positive for the coronavirus on Feb. 25.


The man's death marks the sixth fatality from COVID-19 in Japan, excluding six deaths among those aboard the cruise ship Diamond Princess.

Ireland confirms first case of deadly coronavirus infection

Ireland today confirmed its first case of coronavirus after a man who had returned from northern Italy tested positive, the government said.

Health officials said the man, from the east of Ireland, was "receiving appropriate medical care" after they followed "established protocols" in testing and diagnosing him with COVID-19.

"The case is associated with travel from an affected area in northern Italy, rather than contact with another confirmed case," the Department of Health said in a statement.

The authorities were working rapidly to identify any contacts the patient may have had, "to provide them with information and advice to prevent further spread," it added.


US, Australia, Thailand report 1st fatalities, travel curbs imposed

The US, Australia and Thailand reported their first deaths caused by the coronavirus, while the Trump administration expanded travel restrictions, including advisories barring travel to parts of Italy and South Korea most affected by the outbreak.

Washington State health officials said the man who died was in his 50s. In Australia, a 78-year-old man died in a Perth hospital after being quarantined aboard the Diamond Princess cruise ship, a local health official said.

Over-the-counter medicine tested

The Trump administration is testing “off the shelf" drugs that could be used to combat the virus, Energy Secretary Dan Brouillette said at the CPAC meeting. He said the Oak Ridge National Laboratory in Tennessee made “an important discovery" involving existing drugs that could “help us not only cure the disease but stop the spread" of Covid-19. “It’s still early."


Photo: Ramesh Pathania/Mint
Photo: Ramesh Pathania/Mint
South Korea closes churches as coronavirus tally passes 3,500

Churches were closed in South Korea today with many holding online services instead, as authorities fought to rein in public gatherings, with 376 new coronavirus infections taking the tally to 3,526 cases.


Army soldiers in protective suits spray disinfectant to prevent the spread of new coronavirus in Daegu, South Korea
Army soldiers in protective suits spray disinfectant to prevent the spread of new coronavirus in Daegu, South Korea (Photo: AP)
That came a day after the biggest daily jump of 813 cases in South Korea's battle with the largest virus outbreak outside China, said the Korea Centers for Disease Control and Prevention (KCDC), which will update numbers later in the day.


The death toll of 17 was unchanged from Saturday, it added.

Samsung closes mobile device plant in South Korea after a worker tests positive

Samsung Electronics shut one of its mobile device factories in South Korea after a worker tested positive for the coronavirus, the Yonhap news agency reported, citing a company official.

The floor where the infected employee worked will reopen on Tuesday afternoon, Yonhap said.
The floor where the infected employee worked will reopen on Tuesday afternoon, Yonhap said. (Photo: Reuters)

The factory in Gumi, close to Daegu where most of the South Korean virus cases have been confirmed, was temporarily closed last month after an earlier case was discovered.

The floor where the infected employee worked will reopen on Tuesday afternoon, Yonhap said.

US FDA to allow some labs to use coronavirus tests prior to review

The US Food and Drug Administration (FDA) said it will allow some laboratories to immediately use tests they have developed and validated to achieve more rapid testing capacity for the coronavirus in the country, Reuters reported.

The policy cleared the way for state public health labs to immediately begin local testing and possibly get results within hours, which public health officials say will be critical to a rapid response to the fast-spreading virus that originated in China.


"Under this policy, we expect certain laboratories who develop validated tests for coronavirus would begin using them right away prior to FDA review," Jeff Shuren, the director of the FDA's Center for Devices and Radiological Health, said in a statement.

South Korea urges US to refrain from excessive measures

Hours after the US State Department raised its travel advisory on South Korea’s Daegu to Level 4, urging US citizens to not travel, the Asian nation’s Foreign Minister Kang Kyung-wha asked an American official to “refrain from taking excessive measures."

Donald Trump to ‘respect’ local decisions to curb the deadly virus spread

In a “Meet the Press" interview, US vice president Mike Pence told NBC’s Chuck Todd that President Trump would respect any decision made at the state or local level, such as a call to shut down schools, Bloomberg reported.


US President Donald Trump.
US President Donald Trump.
“It’s all hands on deck," he said, adding that “our effort is to do everything possible to prevent the spread of the coronavirus in the United States."

New York City gets CDC approval for virus testing

New York City won US approval to develop its own coronavirus test and the federal government also sent new kits that will let the city perform tests without sending samples to a federal lab, Mayor Bill De Blasio said.


“We will soon, within the coming week, have the ability to get results back in a matter of hours, not days," De Blasio said in a statement. The city had asked the Centers for Disease Control and Prevention “for weeks" for new test kits to speed the process of identifying virus cases.

France discourages ‘La Bise’

In France, Health Minister Olivier Veran suggested that people refrain from the customary greeting of a peck on the cheek — known as “la bise" — to avoid spreading the coronavirus.

It’s a sign of how virus fears are seeping deep into national fabrics. Veran, at a news conference on Saturday, also renewed an official advisory to avoid shaking hands, in addition to “social contacts of a physical nature, including the practice of the bise."


Washington state may have outbreak at health facility

Two people at the Life Care Center health facility in Kirkland, Washington, were diagnosed with the virus: a health-care worker and a resident of the facility in her 70s. Neither has recently traveled outside the US, said Jeff Duchin, a public health officer for Seattle and King County. In addition, Duchin said there are reports that 27 residents have shown respiratory symptoms, as have 25 staff members. There are about 108 residents and 180 staff at the center.

Washington state declares state of emergency

Governor Jay Inslee today declared a state of emergency in response to the nation’s first fatality from the coronavirus and the rising number of cases. He directed Washington state agencies to use all resources necessary to prepare for and respond to the outbreak.


Dr. Jeff Duchin, Health Officer, Public Health of Seattle and King County speaks about the first patient death from novel coronavirus in the US during a news conference in Seattle, Washington
Dr. Jeff Duchin, Health Officer, Public Health of Seattle and King County speaks about the first patient death from novel coronavirus in the US during a news conference in Seattle, Washington (Photo: Reuters)
“This will allow us to get the resources we need," Inslee said. “This is a time to take common-sense, proactive measures to ensure the health and safety of those who live in Washington state.

France reports spike in victims


Cases in France jumped to 100 on Saturday, almost double of the day before, Director General for Health Jerome Salomon said in a daily briefing.

They included a cluster of 36 cases linked to a victim who has now died in the Oise area, including 10 military and civil personnel at the Creil air force base. Other clusters include a group of 11 related to an organized trip to Egypt. Of the 86 hospitalized cases, 9 are in a “serious condition," Salomon said.

First US virus death in Washington State

The first person has died from the coronavirus in the US, in Washington state, health officials reported on Saturday.

Health authorities in Seattle planned to brief the media later Saturday on virus cases in King County, including new people identified with the infection, one of whom died, according to an advisory from the agencies. Seattle is in King County.


Washington state health officials had earlier identified two new cases, including a school aged adolescent who had no known travel history or encountered anyone who had visited affected areas.

President Donald Trump and the US Centers for Disease Control and Prevention also planned news conferences about the virus on Saturday.

Italy tops 1,000 cases

Italy’s confirmed coronavirus infections surpassed 1,000, skyrocketing from nearly zero in just over a week, the nation’s emergency chief Angelo Borrelli said. The total number of infections is 1,128, with 29 possible virus-linked deaths, the Italian Civil Protection official said Saturday at a Rome news conference. The Lombardy region in Italy’s north has biggest pocket of cases, and a cluster of towns near Milan is under quarantine.


Surgeon General says ‘stop buying masks’

The U.S. Surgeon General urged people to “stop buying masks," saying on Twitter that they’re not effective in preventing the general public from catching coronavirus.

“The best way to protect yourself and your community is with everyday preventive actions, like staying home when you are sick and washing hands with soap and water, to help slow the spread of respiratory illness," Jerome M. Adams tweeted. He encouraged people to get flu shots, saying fewer flu patients means more resources for fighting the virus.

FDA backs faster lab tests

The FDA cleared the way Saturday for some laboratories to conduct diagnostic tests on the coronavirus before an emergency process is fully approved, a step to deal with test-kit shortages that have come under heavy criticism.


The FDA issued guidance to help rapidly expand testing capacity using molecular coronavirus diagnostic examinations. For a period of time while labs submit formal applications, the FDA does not intend to object to the tests for specimen testing, according to a statement. The FDA’s action covers laboratories certified to perform high-complexity testing.

France cancels large gatherings

France has banned indoor gatherings of more than 5,000 people and canceled the Paris half-marathon that was expected to attract 40,000 runners on Sunday, Health Minister Olivier Veran said. The country reported 16 new cases of coronavirus, bringing the total to 73.

Schools in two clusters stricken by the coronavirus, in the Alps and north of Paris, won’t reopen Monday. The government asked people to restrict journeys as much as they can, and to work from home when possible.


The new measures aim to prevent or delay a wider spread of the virus “to win as much time as possible" and avoid an overlap with the flu epidemic, which has started to recede, Veran said.

The Bill in this regard is likely to be passed during the second leg of the Budget session starting Monday

The proposed legislation will help prevent a repeat of PMC-like crisis
There are 1,540 co-operative banks with a depositor base of 86 million having total savings of about ₹5 lakh crore

In a bid to address weaknesses in co-operative banking sector, the Parliament is likely to clear a Bill to amend Banking Regulation Act to bring multi-state co-operative banks under effective regulation of RBI during the Budget session.

The proposed legislation will help prevent a repeat of Punjab and Maharashtra Cooperative Bank-like crisis, sources said.

There are 1,540 co-operative banks with a depositor base of 86 million having total savings of about ₹5 lakh crore.

The Union Cabinet headed by Prime Minister Narendra Modi last month gave approval to amend Banking Regulation Act.

The Bill in this regard is likely to be passed during the second leg of Budget session starting Monday. The session ends on April 3.

Having undertaken a slew of measures, including clean up of public sector banks (PSBs), private sector banks, financial institution like IL&FS, non-bank financial corporations (NBFCs), housing finance corporations (HFCs), auditors, rating agencies, this is the last step in making the entire financial ecosystem almost impossible to be gamed, with security of depositors' money being paramount.


To further bolster the confidence of customers, the government has increased deposit insurance cover by five-fold to ₹5 lakh to ensure security of public money in banks.

In the last couple of years, the Department of Financial Services has taken several steps to promote responsive and responsible banking.

As part of clean banking initiative, project cash flows were ring-fenced, enforcement of terms of loan agreements and prior validation of backward and forward linkages were made integral to lending processes.

Besides, the number of banks in loan consortium was capped, reducing borrowers' ability to play one lender off against another.

This was accompanied by data driven risk scoring and scrutiny, comprehensive diligence across data sources and strengthened credit assessment.

To ensure financial health of public sector banks (PSBs), recapitalization of ₹4 lakh crore was undertaken in the last five years. Provision coverage ratio reached a record high of 77 per cent. NPA and slippages are declining with improved asset quality.


As a result of various initiatives taken by the government under Rajiv Kumar, who demitted office as Financial Services Secretary on February 28, the number of PSBs under Prompt Corrective Action (PCA) is down from 11 in 2017 to four.

As many as 12 out of 18 banks are in profit this year as against 19 out of 21 in loss just two years ago with the help of record recovery and reduction in bad loans.

Before joining the Finance Ministry, Kumar was Establishment Officer in Department of Personnel and Training.

He was instrumental in many initiatives including streamlining of promotion and appointment process done by the Appointments Committee of the Cabinet (ACC).

The London-based BBC Persian service says 210 people have been killed by the virus
Situated at a geographical crossroads in the Middle East and surrounded by countries with creaking infrastructure and challenging humanitarian conditions, Iran's situation gives cause for worry

International experts are questioning the scale of the new coronavirus epidemic in Iran, where the official death toll is second only to China and risks creating a regional epicentre of contagion.

While Iran has acknowledged 43 deaths among 593 confirmed infections nationwide -- with a vice-president and deputy health minister among those testing positive -- unofficial tolls are much higher.

The London-based BBC Persian service says 210 people have been killed by the virus; a figure it says it collated from hospital sources.

The report was immediately dismissed by Iran's health ministry.

The People's Mujahedin, an exiled organisation that Tehran considers a terrorist group, claims that the epidemic has killed "more than 300", while infecting up to 15,000 across the country.


Six epidemiologists based in Canada used a mathematical model to estimate that there have been more than 18,000 cases on Iranian soil.

Their calculations -- not yet peer reviewed -- take into account the number of cases in other countries that originated from Iran.

"When a country exports cases to other destinations it's very likely that the burden of infection in this country is significant", according to Isaac Bogoch, coauthor of the study and a specialist in infectious diseases at the University of Toronto.

'Position of weakness'

This week, Reporters Without Borders added its own criticism of Tehran's handling of the outbreak, accusing the government of stifling news on the spread of the virus.

"The authorities insist they have the situation under control but they have... obstructed journalists trying to cover the story," the media advocacy group said in a statement.


On Saturday, Iran's health ministry spokesman Kianoush Jahanpour responded to the criticisms, accusing foreign media of spreading false news.

"Among Iran's radicals, there is an obsession with not giving ammunition to the enemy and avoiding appearing weak," said Thierry Coville, an Iran analyst at the French Institute for International and Strategic Affairs.

Iranian Twitter user Assieh Bakeri speculated: "Talking about coronavirus could soon be considered troubling for public opinion, undermining public security and insulting the president!"

Economic crisis weighs

More than seven percent of people in Iran confirmed to be infected with the virus have died, according to Iran's official data, a far higher mortality rate than in other countries.

In China, 3.5% of infected people have reportedly died. In Italy, another country hit hard by the virus, the death rate is reported at two percent.


"In Iran, for example, they started detecting patients based on death. So if you calculate the case/fatality rate that way, it is going to be very high," said Cecile Viboud, an epidemiologist at the National Institutes of Health in the United States.

Whatever the reliability of official figures, Iran is certainly one of the main centres of contamination outside China.

The situation is aggravated by an economic crisis, as the country grapples with the effect of Washington re-imposing sanctions in 2018 -- a move that hit oil exports and provoked a recession.

"Why did Iran not stop flights to China? There is a rational explanation -- China is one of the last countries buying their oil. They need to maintain the economic link," Coville said.


"With the sanctions, we can say that the government has lost at least 30 percent of its budget revenues. This has inevitably had an impact on their health system," he added.

Situated at a geographical crossroads in the Middle East and surrounded by countries with creaking infrastructure and challenging humanitarian conditions, Iran's situation gives cause for worry.

"This is concerning, both for public health in Iran itself, and because of the high likelihood for outward dissemination of the epidemic to neighbouring countries with lower capacity to respond to infectious diseases epidemics", the Canadian study concluded.

Azerbaijan, Iraq, Canada, Georgia, Lebanon, New Zealand and Qatar have now confirmed coronavirus infections among people arriving from Iran.

Iranian authorities have taken measures to counter the virus' spread, including cancelling Friday prayers in several cities, closing schools until at least Tuesday, shutting parliament until "further notice" and restricting travel within the country.

M&M anticipates the challenge on auto parts supply to continue for another few weeks
Tata Motors too had been hit by supply disruptions due to the coronavirus outbreak

Indian automakers Mahindra and Mahindra Ltd (M&M) and Tata Motors said on Sunday their supply of parts from China had been hit, as fallout from the coronavirus outbreak mounts.

"Going into March, we anticipate the challenge on parts-supply to continue for another few weeks, before we get back to normalcy," Veejay Ram Nakra, Chief of Sales and Marketing at M&M's automotive division said in a press release.

Tata Motors said in a press release that it, too, had been hit by supply disruptions due to the coronavirus outbreak in China, and was working to mitigate the situation.

Along with Maruti Suzuki - India's biggest carmaker - both companies on Sunday reported a decline in sales in February, compared with a year ago.


M&M said its domestic sales had fallen by 42%, while Tata Motors reported a drop of 34%. Maruti Suzuki said its total domestic sales were down by 1.6% in February from a year ago.

India’s fast-moving consumer goods market grew 6.6% in the December quarter compared with 15.7% growth a year ago, according to Nielsen, which said the rural slowdown has bottomed out and demand will stabilise in 2020.

Unilever said India business growth will be “soft” because of the rural slump amid a broader economic slowdown. India, which accounts for 9% of Unilever’s overall sales, has been regularly outperforming several key emerging markets for the conglomerate.

But Brazil and Indonesia, which contribute 6% and 5% each, respectively, will be stronger in 2020, it said. For the Anglo-Dutch consumer giant, emerging markets generate about 60% of total turnover but average growth in these markets has fallen to 5-6% in past five years from 8-10% earlier. It operates through local unit Hindustan Unilever in India.

“Economic and market growth in India has accelerated, and has been particularly strong over the past three years,” Unilever chief financial officer Graeme Pitkethly said at the Consumer Analyst Group of New York (CAGNY) conference in Florida.

Amid economic slowdown and rural distress, Unilever foresees ‘soft’ India sales
‘Demand Likely to Stabilise in 2020’
India’s fast-moving consumer goods market grew 6.6% in the December quarter compared with 15.7% growth a year ago, according to Nielsen, which said the rural slowdown has bottomed out and demand will stabilise in 2020.

Over the past decade, sales of branded daily needs in the nation of 1.3 billion people have increasingly relied on the rural hinterland, home to more than 800 million people, whose purchase behaviour is largely linked to farm output.

In the past two years, rural demand, which accounts for about a third of the market and had been outpacing urban sales, was hit by lower farm incomes and liquidity constraints. Rural markets grew 5.2% in the December quarter compared with 7.4% for urban centres, according to Nielsen.

Consumption lacks meaningful catalysts to spark a revival in calendar 2020, BNP Paribas said in a report based on the analysis of December quarter performance at a wide sample of consumer companies and post-earnings commentary by their managements.

“The timing of recovery in consumption demand remains uncertain,” wrote Kunal Vora of BNP Paribas. “The indication by some companies that a recovery may be seen in second half of FY2021 relies largely on the fact that the base will become much favourable by then.”

PRICE HIKES LIKELY
Some companies might be forced to raise prices despite a weak consumer demand environment because of very high raw material inflation in certain agricultural commodities.

HUL’s skin cleansing or soaps segment has also been a drag on the overall business amid contrasting growth trend in its largest business — laundry. The maker of Surf and Dove said the laundry business has seen double-digit growth, but market share and penetration in the soaps segment declined, especially for Lux and Lifebuoy.

“In the skin-cleansing business, penetration for the top two brands has been down, and as a result we have seen declining sales and share losses in 2019,” Pitkethly said. “We have made specific interventions on price and product quality and we are becoming sharper on our brand messaging and, believe me, this will make all the difference.”

For HUL, the category was impacted by both declining market and pricing actions that it took in order to increase competitiveness. The company, during its earnings announcement last month, said it could increase price tags on soaps by 5-6% during the March quarter due to rising commodity costs.

Speaking to investors at the annual shareholder meeting at Apple Park in Cupertino, California on Wednesday, Cook confirmed the company will open its first offline retail outlet in the world's second biggest smartphone market next year.

Bullish on its growth in India, Apple is set to open its first branded retail store in the country in 2021, company CEO Tim Cook has told shareholders.

Speaking to investors at the annual shareholder meeting at Apple Park in Cupertino, California on Wednesday, Cook confirmed the company will open its first offline retail outlet in the world's second biggest smartphone market next year, reports Apple Insider.

"I don't want somebody else to run the brand for us," he was quoted as saying.

"We wouldn't be a very good partner in retail. We like to do things our way," the Apple CEO mentioned.

Apple currently has third-party reseller outlets to sell its devices in the country.

There are reports that Apple has leased a location in Mumbai for its upcoming branded retail store but the company is yet to reveal the location.

Apple's exclusive online store is expected to start functioning in the third quarter this year. The Cupertino-based tech giant is currently selling its devices in India via third-party offline retailers and e-commerce platforms like Flipkart and Amazon.in.

Welcoming the government's decision to ease the 30 per cent local sourcing norm in single-brand retail (SBRT), Apple said last year: "We appreciate the support and hard work by Prime Minister Narendra Modi and his team to make this possible and we look forward to one day welcoming customers to India's first Apple retail store."

According to Navkendar Singh, Research Director, IDC India, Apple is known for its retail stores, the experience they provide in terms of purchase, staff knowledge and other services.

"Considering the importance of offline as a channel in a diverse country like India, where consumers love to touch, feel and experience the products, the stores are a very important touch-point for any consumer company," Singh told IANS.

The plan for opening owned stores will certainly help Apple in giving a controlled experience of its devices and services as it intends and designed them to be.

"In a third-party retail environment, many such things cannot be controlled by the brand. This will only add to the strong premium positioning Apple enjoys in the country," Singh added.

Apple reached a record 75.6 per cent market share in the fourth quarter of 2019 in India owing to the stellar performance of iPhone 11 and price drop on previous generation models.

According to the International Data Corporation (IDC), in the premium ($500 or Rs 36,000 and above) segment, Apple reached a record 75.6 per cent market share.

Apple registered double-digit growth in India for iPhones in the holiday quarter (October-December period), Cook announced in January. Apple also registered a good growth in wearables in India.

The iPad 2018 model also helped Apple register strong growth in India in 2019.

Going forward, thrust on manufacturing high-end iPhones locally along with the first-ever flagship retail store would give Apple a booster in the price-sensitive smartphone market in 2020, according to industry experts.

Reports of an increase in online searches for “corona beer virus” and “beer coronavirus” show the Mexican 'Corona' beer hasn’t been able to escape the association. The so-called purchase intent among adults in the U.S. has plunged to the lowest in two years, according to data from YouGov Plc.

The novel coronavirus has an unlikely victim -— one of the world’s most popular beers.

Corona has become the subject of memes and videos shared on social media as the toll from the virus climbs worldwide. Reports of an increase in online searches for “corona beer virus” and “beer coronavirus” show the Mexican beer hasn’t been able to escape the association. The so-called purchase intent among adults in the U.S. has plunged to the lowest in two years, according to data from YouGov Plc.

The damage has become more severe in recent days as infections spread. Shares of Corona-maker Constellation Brands Inc. dived 8% this week in New York. Corona’s buzz score — which tracks whether American adults aware of the brand have heard positive or negative things about it — has tumbled to 51 from a high of 75 at the beginning of the year, YouGov said.

Corona, which derives its name from the Sun’s corona and has nothing to do with the virus, is the third-most popular beer in the US, according to YouGov rankings. Guinness is first and Heineken is second.

Another reason for the drop in purchase intent could be the perception of Corona as a summer beverage associated with beach holidays, YouGov business data journalist Graeme Bruce wrote in an article published Wednesday. It therefore has substantial seasonal fluctuations, he said.

It was reported that a box of 100 medical face masks was being sold for $15 in the US. Generally, this box of masks retail for just under $5. Similarly, sellers were retailing a box of 20 3M particulate respirator masks for $70, which was four times than its actual price of $17.

The coronavirus epidemic has reached alarming proportions, not just in China but all over the world. Cases have been reported from several parts of the world, including Italy, South Korea and Thailand.Now, one of the precautions that people can take — or rather are taking — is wearing masks. However, a report by Wired suggests that some sellers on Amazon have been overcharging for masks on the e-commerce platform. Amazon has issued a stern warning to sellers and told them not to do so.

An Amazon spokesman said in a statement to Wired, “Sellers set their own product prices in our store and we have policies to help ensure sellers are pricing products competitively. We actively monitor our store and remove offers that violate our policies.”

Amazon, as per the report, has strict rules against pricing that could impact consumer trust. If a product is suddenly priced higher than the recent prices offered on Amazon, then the e-commerce giant can take certain action.

It was reported that a box of 100 medical face masks was being sold for $15 in the US. Generally, this box of masks retail for just under $5. Similarly, sellers were retailing a box of 20 3M particulate respirator masks for $70, which was four times than its actual price of $17.

The number of sellers that may have violated Amazon’s policies wasn’t revealed by the company.

The coronavirus has taken lives of over 2,000 people whereas more than 75,000 people have been affected in China alone. The impact of the virus has been felt heavily by the tech industry. Several big names — including Apple, Microsoft, Samsung — have warned that their supply chain will be affected, which could result in loss of revenue as well as delay in shipments of certain products.

E-commerce marketplaces including Snapdeal, Amazon and Flipkart have approached the government through industry body Ficci seeking a reversal of the budget proposal.

The proposal to deduct tax at source from online merchants, announced in the Budget, could precipitate a working capital crunch for some of the largest sellers on India’s top two ecommerce marketplaces Flipkart and Amazon.

Cloudtail and Appario that sell on Amazon, as well as RetailNet India, Tech-Connect Retail and Omni Retail that sell through Flipkart, record significant revenues but earn low profit. The proposal to levy 1% tax deducted at source would mean these vendors will have to fork out excessive amounts as tax deducted at source (TDS), an analysis by ET shows.

For instance, Cloudtail and Appario reported revenues of Rs 8,945 crore and Rs 6,049 crore, respectively, in financial year 2019, but their profits were just Rs 29.4 crore and Rs 12.2 crore.

Cloudtail declined to comment for this story. Appario could not be reached for comment. Both Flipkart and Amazon have said 1% TDS on gross sales would hurt small sellers the most.
The Budget move that leaves Amazon, Flipkart sellers with less money in hand

Marketplaces Write to CBDT
“We have highlighted these concerns as well as the increased cost of compliance for MSMEs/ sellers and the ecommerce industry to the government,” a Flipkart spokesperson said in an email.

An Amazon spokesperson too told ET that sellers had voiced concerns over the 1% TDS for which it has sought clarification from the government.

These ecommerce marketplaces including Snapdeal, Amazon and Flipkart have approached the government through industry body Ficci seeking a reversal of the budget proposal. In a representation to the Central Board of Direct Taxes (CBDT), the industry lobby claimed the 1% levy will hurt the working capital of small sellers and increase their compliance burden. ET had reviewed a copy of the letter.

Ficci has said the TDS will “negatively impact working capital of the vendors and could lead to reduced trading activity, thereby impacting economic growth”.

However, senior government officials ET spoke to said the TDS would not hurt small sellers, but only those that were not making any money.

“We’ve only levied 1% TDS. Even if someone is selling Rs 100 worth of goods and has a margin of just Rs 3, they already have tax liability. Moreover, they’re already paying advance tax,” a senior government official said on condition of anonymity. “If you’re not earning anything, only then this might be a problem for you, and as you know, there are very few of those.”

Another senior tax official told ET that the CBDT’s intent in demanding the levy was to ensure that “all the turnover is being reported”. ET reported on February 23 that ecommerce marketplaces had asked for more time to implement the levy citing delays in updating their IT systems, although they had in-principle agreed to adhere to the new tax. A senior executive at a large ecommerce marketplace said the sector was being unfairly targeted compared to offline vendors.

“Ecommerce makes up just 3% of retail in our country, but we’re being targeted by the taxman while the 97% aren’t being touched. Are they coming after us just because we have data on all our sellers?”