Coronavirus spreads to three continents as markets brace for global recession

Countries on three continents reported their first cases of the coronavirus onFriday as the world prepares for a pandemic of the disease with investors dumping equities in expectation of a global recession.

People wearing surgical masks leave a hospital in Creil, north of Paris where patients who have tested positive for COVID19 are being treated, 27 February 2020. REUTERS/Christian Hartmann

Share prices are on track for the worst week since the 2008 global financial crisis  as COVID19-related disruptions to international travel and supply chains are fuelling fears of a recession in the United States and the Euro zone.

Asian stocks tracked a plunge on Wall Street on Thursday, where the benchmark S&P 500 index fell more than 4%, extending a rout that has sliced more than 10% off of its closing peak on 19 February.

Meanwhile, mainland China - where the virus originated late last year - reported 327 new cases, the lowest since 23 January, taking its tally to more than 78,800 cases with almost 2,800 deaths.

Four more countries reported first cases taking the number of countries outside China with infections to 55, where about 3,700 cases have killed about 70 people. Countries other than China are accounting for about three-quarters of new infections.

An Italian man who arrived in Nigeria this week was confirmed as the first coronavirus case in Africa's most populous country. And a person who returned on a flight from Iran became the first in New Zealand.

While in eastern Europe, Belarus and Lithuania both reported their first cases.

World Health Organization (WHO) Director General Tedros Adhanom Ghebreyesus said all nations should prepare.

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

Ratings agency Moody's said a pandemic - usually taken to mean a disease spreading quickly in different places - would trigger global and U.S. recessions in the first half of the year.

.@WHO stands ready to support every country to develop its national #COVID19 plan. This is not a time for fear. This is a time for taking action now to prevent infections and save lives now.https://t.co/JlYHh5cyap

  Tedros Adhanom Ghebreyesus (@DrTedros) February 27, 2020

Decisive point

In addition to stockpiling medical supplies, governments ordered schools shut and cancelled big gatherings to try to halt COVID19.

U.S. President Donald Trump's administration is reportedly considering invoking special powers to expand production of protective gear.

Here in France, the number of reported cases has doubled, Germany has warned of an impending epidemic and Greece, a gateway for refugees from the Middle East, has announced tighter border controls.

The death toll in Italy, Europe's worst-hit country, rose to 17 and the number of people who tested positive for the illness increased by more than 200 to 655.

Germany has reportedly about 45 cases, France about 38 and Spain 23.

Tedros told reporters in Geneva that Iran, Italy and South Korea were at a "decisive point" in their efforts to prevent a wider outbreak.

South Korea has the most cases outside China, and reported 256 new infections on Friday, bringing its total infections to 2,022.

The head of the WHO's emergency program, Dr Mike Ryan, said Iran's outbreak may be worse than realised. It has suffered the most deaths outside China - 26 from 245 reported cases.

Tokyo Olympics called into question

Japan is scheduled to host the 2020 Olympics in July but Ryan said discussions are being held with organisers about whether to go ahead.

As of Friday, confirmed cases in Japan topped 200, with four deaths, excluding more than 700 cases and four more deaths from a quarantined cruise liner, Diamond Princess.

Japan has told schools to close and said big gatherings should be scrapped or curtailed, while pledging the Games will go ahead.

Scientists warn that much remains unknown about the virus, which can lead to pneumonia, and say a vaccine could take up to 18 months to develop.

Here are just a few of the ways WHO is responding to #COVID19.

For our latest updates 👉🏼 https://t.co/JzchoJt5Xv pic.twitter.com/0hBY2FaZcp

  World Health Organization (WHO) (@WHO) February 27, 2020