U.S. Pledges Vaccine Support; Europe Economy Sinks: Virus Update

(Bloomberg) -- The U.S. government will provide as much as $2.1 billion in funding to Covid-19 vaccine partners Sanofi and GlaxoSmithKline Plc, its biggest investment yet.

The U.K. government tightened lockdown rules for more than 4 million people across a large part of northern England, seeking to contain a new spike in cases. Spain and France led the euro-area into a record economic contraction.

The airline industry’s pummeling at the hands of the pandemic was laid bare in the latest second-quarter earnings in Europe, while fixed-income trading, music streaming and tobacco got a boost.

Key Developments:

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U.S. Pledges Up to $2.1 Billion for Sanofi, Glaxo Covid Vaccine (7 a.m. NY)

The Trump administration will provide as much as $2.1 billion to Covid-19 vaccine partners Sanofi and GlaxoSmithKline Plc, the biggest U.S. investment yet in fast-tracking shots and snapping up supplies.

Part of Operation Warp Speed, the funding will support clinical trials and manufacturing while allowing the U.S. to secure 100 million doses of the shot if it’s successful, the companies said Friday. The country has an option to receive an additional 500 million doses longer term.

Vietnam Sees First Coronavirus Death After Sudden Burst of Cases (6:16 a.m. NY)

Vietnam, which for more than three months appeared to have beaten back the novel coronavirus, confirmed its first death from the pandemic after a sudden cluster emerged in the coastal city of Danang. The death of a 70-year-old man comes about seven months after the nation recorded its first virus cases.

The man, who had a history of high blood pressure and other health problems, was being treated for kidney disease at a Danang hospital when he tested positive for coronavirus Monday. He died as a result of a heart attack and complications from Covid-19, according to a posting on the Ministry of Health website.

Pfizer, BioNTech to Supply 120 Million Vaccine Doses to Japan (5:34 p.m. HK)

Pfizer Inc. and BioNTech SE agreed to provide Japan with 120 million doses of the Covid-19 vaccine they’re developing, accelerating countries’ push to lock up supplies of potential protection against the virus. The U.S. pharma giant and the German biotech firm said they’d supply the shots in the first half of 2021. Financial details were not disclosed.

Pandemic Borrowings by Auto Industry Hit $132 Billion (5:05 p.m. HK)

The automotive industry has borrowed $132 billion since March as the spread of the coronavirus curbed demand for cars and closed factories. The sector is the largest user of funds put in place to ease the impact of the pandemic. The amount consists of $79 billion in new loans and $53 billion in drawdowns from existing credit lines. Facilities linked to the pandemic account for almost 80% of overall loan borrowings by the sector in the year to date.

Philippines Reports Record 4,063 Increase in Infections (5:01 p.m. HK)

The Philippines reported a record increase in coronavirus infections. The country’s Department of Health said there are 4,063 new Covid-19 cases, bringing the total to 93,354.

South Africa GDP May Shrink 8.2% on Virus Resurgence (5 p.m. HK)

South Africa’s economy could contract as much as 8.2% this year if a second wave of the coronavirus hits the country and its trading partners, according to the OECD. A renewed wave of coronavirus infections in October and November remains a possibility and that could also slow the recovery next year, limiting 2021 economic growth to 0.6% instead of 2.5%, the Paris-based organization said.

Poland Reports 657 New Virus Cases, Daily Record (4:42 p.m. HK)

The country registered a record 657 new coronavirus cases on Friday, mostly in Silesia and Mazowieckie regions, with the overall number of infected reaching 45,688, the Health Ministry said on Twitter.

Singapore, China to Look at Developing Vaccines (4:31 p.m. HK)

Singapore and China have expanded existing bilateral cooperation to include public health, including developing diagnostics, vaccines and treatments for coronavirus, according to a statement from the city-state’s foreign affairs ministry.

Spanish-Led Outbreaks Fuel Concerns About Further Economic Pain (4:23 p.m. HK)

An uptick in coronavirus infections across Europe is fueling concerns of a fresh hit to the economy as governments reinstate travel and social restrictions. Spain is at the center of those concerns. The country recorded 1,229 new cases on Thursday, the most since April 30, and several governments have issued recommendations against traveling to parts of the country. The U.K. has gone as far as ordering a quarantine for all travelers from the nation.

Tobacco-Based Vaccine May Start Clinical Trials (4:15 p.m. HK)

An experimental plant-based vaccine may start clinical trials within weeks as the race for immunization intensifies. British American Tobacco Plc, the maker of Lucky Strike cigarettes, expects a response from the U.S. Food and Drug Administration any day now, Chief Marketing Officer Kingsley Wheaton said in an interview.

Millions of Britons Banned from Meeting Indoors (4:01 p.m. HK)

More than 4 million people across a large part of northern England must comply with tighter lockdown rules after Boris Johnson’s government rushed to tackle a new spike in cases. Residents in the Greater Manchester area, and parts of East Lancashire and West Yorkshire will no longer be able to meet indoors with members of other households, Health Secretary Matt Hancock said.

Swiss Re Bolsters Virus Reserves (3:42 p.m. HK)

Swiss Re signaled that the worst effects of the coronavirus pandemic on its business are already hedged, though the extent of potential claims is still uncertain. The world’s second-largest reinsurer, which surprised markets last week with a $1.1 billion net loss for the first half, said that the initial shock of the pandemic has now fully fed through and that the $2.5 billion in claims and reserves should be enough to cover the majority of the Swiss company’s ultimate losses.

Spain’s Economy Has Deepest Slump Recorded in Europe So Far (3 p.m. HK)

Spain’s economy shrank more than forecast in the second quarter, leaving it with a long-haul recovery that’s become even more complicated because of additional headwinds facing the tourism industry. The record 18.5% drop in output -- led by plunges in consumer spending and investment -- is the deepest reported so far in Europe. France reported a 13.8% contraction, while Italy’s economy shrank 12.4%.

KLM to Cut Up to 5,000 Jobs (2:02 p.m. HK)

The Dutch arm of Air France-KLM will cut 4,500 to 5,000 positions ranging from pilots to cabin crew and ground staff this year and next. That’s as much as 15% of its staff and will add to the roughly 7,500 reductions planned at Air France over three years. KLM said more jobs could go if business doesn’t pick up.

India Deaths Surpass Italy’s (1:11 p.m. HK)

India’s death toll climbed to 35,718, surpassing fatalities in Italy, the former European epicenter of the epidemic.

India now has the fifth-biggest number of fatalities globally, while confirmed cases are the third largest after Brazil and the U.S. India’s epidemic is growing at the fastest pace in the world: The South Asian nation has reported more than 760 deaths in each of the past three days, while daily infections are topping 50,000.

Tokyo Finds Record Cases (1:03 p.m. HK)

Tokyo suffered a record 463 new cases, a fresh daily record, after reporting 367 cases on Thursday. Governor Yuriko Koike said Friday that declaring a state of emergency must be considered if the situation deteriorates.

Australia’s Victoria Cases Surge Again (9:15 a.m. HK)

Australia’s second-most populous state reported 627 new cases in the past 24 hours, a day after suffering a record 723 additional infections. There were eight more deaths.

Victoria Premier Daniel Andrews said lifting the lockdown in Melbourne is impossible under current circumstances. He said public-health experts would analyze the data, warning they may recommend more stringent measures.

China’s Xinjiang Outbreak Grows (8:17 a.m. HK)

China reported 123 local coronavirus infections July 30, including 112 in Xinjiang and 11 in Liaoning, the National Health Commission said. There were also 4 imported cases.

The number of new infections rose from 105 on July 29. Xinjiang’s new cases jumped from 96. Unlike details of cases published by local health authorities elsewhere in China, little is known about the growing infection in Xinjiang, where China’s treatment of local Muslim Uighur population has come under global criticism.

Argentina Reports Record Cases (7:27 a.m. HK)

Argentina posted a record daily increase of 6,377 new cases, bringing the country’s total to 185,373. There were 130 new deaths, taking the death toll to 3,441.

Texas Deaths Hit Record Again (6:40 a.m. HK)

Texas virus deaths set a new record for the second day in a row, rising by 322 to 6,274 Thursday. Texas confirmed 8,800 new virus cases, bringing its total to 412,107. About 35% of that, or 145,291, are considered “active” cases of people currently sick with Covid-19.

The state health department has been changing the way it reports virus data, relying on death certificates instead of local governments. As a result, the state revised total deaths downward by 225 for this week, though that still made 302 new cases on Wednesday a record.

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