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The number of cases of COVID-19 around the world rose above 4.1 million on Monday, as South Korea reported a new cluster stemming from Seoul’s nightclub district and China reported four new cases in Wuhan, the city believed to be the source of the outbreak late last year.
South Korea has won admiration for the speed with which it brought its outbreak under control, using widespread testing and contact tracing. But 29 new cases out of 35 reported over the weekend were found to be linked to the district of Itaewon, a popular area for nightclubbers, as the Guardian reported.
The news has caused officials to push back the reopening of schools by a week.
In Europe, Spain, Italy and Switzerland all moved Monday to ease lockdown restrictions. Paris is allowing shops and schools to reopen for the first time since March 17, although the metro is operating below capacity with many stations remaining closed and passengers required to wear masks.
The Cannes film festival is one of the latest major events to be canceled, although organizers are aiming to have screenings at other festivals of films that would have been selected to compete for the festival’s awards.
In the U.S., White House employees will be tested regularly for COVID-19 after two staffers and several Secret Service members tested positive, sending three key members of the coronavirus task force into self-quarantine. Dr. Anthony Fauci, the head of the National Institute of Allergy and Infectious Diseases, Dr. Robert Redfield, director of the Centers for Disease Control and Prevention, and Stephen Hahn, commissioner of the Food and Drug Administration, are all working remotely after being exposed to infected staffers.
All three are scheduled to testify before a Senate committee on Tuesday on the pandemic and are expected to do so remotely.
“It is scary to go to work,” Kevin Hassett, a top economic adviser to the president, said on CBS’ “Face the Nation” on Sunday. The administration of President Donald Trump has been widely criticized for its slow and halting response to the crisis and news of the White House infections has not helped.
“The Trump administration’s response to the COVID-19 pandemic has been one of incompetence and inadequacy, from ignoring and downplaying the threat at the outset to its epic mismanagement and chaotic response,” said nonprofit Accountable.U.S. said over the weekend.
In the U.K., Prime Minister Boris Johnson, who recently recovered from COVID-10, announced the first steps out of lockdown in an address to the nation on Sunday, in which he said those people who cannot work from home should start to go into work from Monday, although he stressed that most of the current restrictions will stay in place. He cautioned Britons to “stay alert” in an address that was criticized for being vague and confusing.
The U.K. is aiming to start a phased reopening of shops and primary schools in June. If the data shows that is feasible without a fresh surge in infections or transmission rates, it will be followed in July by the reopening of bars and restaurants and other public places, but with social-distancing rules and other public-safety measures in place.
The most significant change Johnson announced is that people who travel to the U.K. by air will be subjected to a 14-day quarantine, sending airlines stocks sharply lower. The Prime Minister also said he is increasing fines imposed on those who break social-distancing rules.
Latest tallies
There are now 4.12 million cases of COVID-19 globally and 283,120 people have died, according to data aggregated by Johns Hopkins University. At least 1.4 million people have recovered.
The U.S. has the highest case toll at 1.33 million and the highest death toll at 79,606.
Spain has the highest number of cases in Europe at 224,350 and 26,621 deaths. Russia passed the U.K. and Italy in case numbers over the weekend. Russia now has 221,344 cases and 2,009 deaths.
The U.K. has 220,449 cases and 32,140 deaths, the highest death toll in Europe.
Italy has 219,070 cases and 30,560 deaths. France has 177,094 cases and 26,383 deaths. Germany has 171,879 cases and 7,569 deaths.
Brazil has 163, 427 cases and 11,207 deaths. Turkey has 138,657 cases and 3,786 deaths. Iran has 109,286 cases and 6,685 deaths. China, where the disease was first reported late last year, has 84,010 cases and 4,637 deaths.
New York is still the U.S. epicenter with 340,657 cases and 26,656 deaths, according to a New York Times tracker.
There is growing concern about the number of children in the state that have been inflicted with a life-threatening syndrome believed to stem from COVID-19 that causes inflammation. The condition, called “pediatric multisystem inflammatory syndrome,” has killed at least three children. State officials are investigating as many as 85 other potential cases, according to Gov. Andrew Cuomo on Sunday.
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What’s the latest medical news?
The Department of Health and Human Services said over the weekend that the states with the highest case counts have been allotted doses of redesivir, the drug made by Gilead Sciences Inc. which has received an emergency use authorization from the U.S. Food and Drug Administration as a treatment for the virus.
The DHHS was responding to infectious disease doctors and clinical groups that last week raised concerns about what hospitals and patients will have access to the drug. Gilead has donated 1.5 million doses of the drug, which HHS is dispensing to states, which are then allocating to hospitals. Illinois (140 cases of remdesivir), New York (565 cases), New Jersey (110 cases), and Massachusetts (117 cases) have been allotted the most number of cases, each of which has 40 vials of remdesivir.
Separately, Abbot Laboratories ABT, +1.00% received a second authorization from the Food and Drug Administration to market a COVID-19 antibody test. The newest test is similar to the one that received an emergency use authorization in mid-April but it is available on a newer testing platform.
“We wanted to provide hospitals and labs with as many broad and reliable testing options as possible during this pandemic,” a company spokesperson said in an email.
Abbott plans to ship a total of 30 million antibody tests worldwide in May that can be used on both of its testing platforms. Serologic tests are used to detect past infections with COVID-19; they are not used to diagnose a current infection. Abbott has also received EUAs for molecular tests that can detect current infections with COVID-19.
What are companies saying?
Tesla Inc. TSLA, -0.46% Chief Executive Elon Musk continued his assault on California’s lockdown measures over the weekend which have prevented him from reopening the company’s plant in Fremont. On Saturday, Tesla filed a lawsuit in federal district court seeking an injunction to allow for the reopening of the plant, arguing that the county where the factory is located has overreached and not uniformly applied its own rules to Tesla.
“Alameda County’s power grab not only defies the governor’s orders, but offends the federal and California constitutions,” the lawsuit alleged. Musk also tweeted that he would move Tesla’s headquarters in Palo Alto and the Fremont factory out of California.
The plant and headquarters are located in counties that were among the first in the U.S. to issue stay-at-home orders and to order non-essential businesses closed to stem the spread. Musk has been a vocal critic of the shutdown orders, last week going as far as calling them “fascist.”
Local health authorities on Friday foiled Tesla’s plans to start reopening the factory saying that while some nonessential businesses elsewhere in the state were reopening, their own shutdown order prevailed.
Elsewhere, companies continued to report on the stress caused by the virus. Stage Stores filed for bankruptcy protection, the latest retailer to resort to the bankruptcy court after J. Crew and Neiman Marcus last week.
Chesapeake Energy added “going concern” language to a regulatory filing, less than three months after removing it from its annual report. Ride-sharing company Lyft Inc. LYFT, -5.30% was downgraded by Stifel to hold from buy on concerns about the “likely slow and uncertain path to recovery for the domestic ride-hailing market.”
Here are the latest things companies are saying about COVID-19:
• AMC Entertainment Holding Inc. AMC, +34.14% shares rocketed on Monday, after the Daily Mail reported that e-commerce giant Amazon.com Inc. AMZN, +1.09% had expressed interested in acquiring the struggling movie theater chain. AMC, the parent of Odeon Cinemas, and Amazon have held talk about a potential buyout, the Daily Mail reported citing sources, but it wasn’t clear if the discussions were still active or will lead to a deal. AMC did not immediately respond to a request for comment.
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• AutoNation Inc. AN, +5.27% reported first-quarter profit that beat expectations, but revenue that fell a bit shy as 95% of its revenue were from states with stay-at-home orders because of the pandemic. New vehicle sales dropped 8.6% to $2.28 billion, above the FactSet consensus of $2.23 billion, and used vehicle sales declined 6.8% to $1.25 billion to miss expectations of $1.29 billion. In April, new and used vehicle sales were down 52% during the first 10 days of the month, but improved to being down 19% during the final 10 days of the month.
• Bausch Health Cos. Inc. BHC, -2.97%, the company formerly known as Valeant, launched an offering of $1.25 billion of new senior notes that mature in 2029. Proceeds will be used to fund the redemption of existing 6.50% senior secured notes that mature in 2022 and to pay related fees.
• Coty Inc. COTY, -4.23% announced a $750 million equity investment from KKR & Co. Inc. KKR, -0.05% and reported a surprise fiscal third-quarter loss and revenue that fell more than forecast. The investment from KKR will be through convertible preferred shares. Under terms of the investment, Coty and KKR signed a memorandum of understanding in which Coty will sell a majority of its professional beauty and retail hair business, which includes the Wella, Clairol, OPI and ghd brands. Revenue fell 23% to $1.53 billion, below the FactSet consensus of $1.55 billion, as its luxury, consumer beauty and professional beauty segments all missed expectations. The company said it has extended its turnaround plan, including cutting costs by 25% through job cuts and consolidation of its supply network.
• General Mills Inc. GIS, +1.22% expects fourth-quarter organic net sales to rise by double-digits as COVID-19-related stay-at-home orders drive increased sales, particularly in North American retail and the pet categories. The company now expects to exceed full-year organic net sales growth guidance of 1% to 2%. The FactSet consensus is for sales of $17.36 billion, implying 3% growth. General Mills says demand increased at “unprecedented” levels in March, up 45% according to Nielsen U.S. retail data, and held on to elevated demand in April, up 32%, according to Nielsen. General Mills brands include Cheerios, Yoplait and Betty Crocker.
• Madison Square Garden Sports Corp. MSGS, -7.14% swung to a first-quarter loss on revenue that fell 18%, but topped expectations, as the pandemic led to the suspension of the professional basketball and hockey seasons. The parent of the New York Knicks professional basketball team and the New York Rangers professional hockey team said “virtually no revenue” is being recognized, including revenue related to tickets, sponsorship and signage, suites and local media rights.
• Marriott International Inc. MAR, -4.79% reported a first-quarter profit that was well below expectations but beat on revenue, while saying it believes lodging demand has stabilized in the face of the pandemic. Revenue per available room (RevPAR) fell 22.5%, after growing 3.2% for the first two months of the quarter. For April, RevPAR dropped about 90%. Marriott said occupancy has improved to about 20% over the past two weeks in North America. The company said it can’t provide a financial outlook given the uncertainty over the impacts of the pandemic.
• Moleculin Biotech Inc. MBRX, -1.83% and CNS Pharmaceuticals Inc. CNSP, -3.83% did not solicit or have any advance knowledge about claims made by third parties about drug candidate WP1122 and its effect on COVID-19. The two Houston-based companies had their stocks temporarily halted by the Securities and Exchange Commission on May 1 over claims and information in the marketplace about WP1122, along with the stock of WPD Pharmaceuticals Inc. WCOTF, -2.49% of Vancouver, British Columbia. WPD had previously licensed rights to a portfolio of drug candidates including WP1122 from Moleculin Biotech for certain regions, while CNS is working with WPD on development. In separate statements, the companies said those parties made claims and distributed information about WP1122 during the period stretching from March 20 and May 5 regarding the potential efficacy of the drug in dealing with the coronavirus that causes COVID-19. “The company neither solicited, had advance knowledge of, nor played any role in the preparation of such information, claims or statements,” Moleculin said, encouraging investors to. interest to look at the company’s communications on WP1122. CNS used the same language in its release. The SEC halt is scheduled to end on May 15.
• Stage Stores Inc. SSI, -23.38% filed for chapter 11, just days after reports that bankruptcy preparations were in the works. The company, which operates Stage department stores, Bealls, Goody’s and Palais Royal, said about 557 stores will reopen on May 15, 67 additional stores are expected to open by May 28 and the remaining stores will open by June 4, for liquidation sales. Stage Stores has 13,600 employees, according to FactSet. The company had 738 stores as of a March 27 business update. “[T]he increasingly challenging market environment was exacerbated by the COVID-19 pandemic, which required us to temporarily close all of our stores and furlough the vast majority of our associates,” said Chief Executive Michael Glazer in a statement. “Given these conditions, we have been unable to obtain necessary financing and have no choice but to take these actions.” The company expects to honor gift cards and returns for the first 30 days after a store reopens.
• Under Armour Inc. UA, -10.51% UAA, -11.02% reported wider-than-expected first-quarter losses and revenue that fell short of estimates. Under Armour ended the quarter with $959 million in cash and cash equivalents, of which $600 million was related to borrowings from the company’s revolving credit facility. An amended credit agreement is expected to close on Tuesday, which should provide for improved access to liquidity. The company has taken coronavirus-related cost-saving measures including temporarily laying off workers in owned retail stores and U.S. distribution centers. Under Armour stock has plunged 54.2% over the past year while the S&P 500 index
• Vera Bradley Inc. VRA, -5.62% plans to reopen more than half of its stores by the end of May and nearly all of its stores by the end of June. Stores will require workers to wear masks and gloves, encourage social distancing and reduce operating hours, among other COVID-19 related measures. Stores have started doing business again as states begin the reopening process. Vera Bradley has taken into account consumer sentiment, workers’ willingness to return to the job and store readiness when deciding to restart operations at a location, Chief Executive Rob Wallstrom said
• Virgin Group’s subsidiary Vieco 10 Ltd. said Monday it may sell up to 25 million of its shares of Virgin Galactic Holdings Inc. SPCE, -4.98% in an at-the-market offering. The company will use the proceeds to support its global leisure, holiday and travel businesses, that have been upended by the coronavirus pandemic and consumers comply with stay-at-home orders and other restrictions on movement.
How Coronavirus-Tracking Apps Work
