China’s Spending Rebounds; Austria Curbs Unvaxxed: Virus Update

(Bloomberg) --

China’s retail sales were stronger than expected in October, despite intermittent Covid restrictions as the current outbreak continues. The port city of Dalian -- the latest infection hotspot -- has locked down tens of thousands of students and started citywide virus testing. 

Austria is putting unvaccinated people under lockdown starting Monday for at least 10 days in a dramatic move to stem the spread of the virus. New infections spread to almost 2 million in Europe last week, the most since the pandemic started. 

The U.S. economy’s fate remains tied to the pandemic, which is worsening again around the globe. Treasury Secretary Janet Yellen blamed the pandemic for accelerating inflation.  

Key Developments:

China’s Dalian Starts Citywide Testing (11 a.m. HK)

The northeastern Chinese city of Dalian on Sunday started a citywide round of Covid testing, Xinhua reported, as it battles the biggest flareup in the country’s current outbreak.

Tens of thousands of university students are under lockdown after the city became the latest hotspot of infections. The momentum of the current flareup is slowing and the epidemic is generally “under control,” the city government said on Sunday.

China Retail Sales Rebound Despite Curbs (10:45 a.m. HK)

China’s retail sales were stronger than expected in October, despite spot lockdowns and travel restrictions across the nation prompted by the current virus outbreak. Spending on restaurants and catering rose 2% from a year ago, and total retail sales climbed almost 5%. 

Read more here about China’s better-than-expected economic performance in October.

Japan Plans Faster Booster Rollout: NHK (9:10 a.m. HK)

Japan is preparing to make vaccine booster shots available six months after a second inoculation, NHK reports, citing unidentified sources. Under current plans, fully vaccinated people would be eligible for boosters after eight months.

The move follows reports from other countries that vaccine efficacy starts to decline after six months, according to NHK. Japan is due to start its booster rollout next month, following the example of countries including the U.S., U.K., China and Singapore.

Cambodia Allows Quarantine-Free Travel (7:45 a.m. HK)

Cambodia is removing quarantine requirements for all vaccinated travelers from Monday. New arrivals will be required take a rapid antigen test, and must bring proof of inoculation and a negative Covid test within 72 hours of boarding a flight.

In October, neighboring Thailand announced a similar re-opening for vaccinated visitors from more than 60 countries. However, very few places have reciprocated, so many international travelers will still face quarantine on return from either of the Southeast Asian nations. For more on the destinations that are open to visitors, explore the Bloomberg Covid Travel Tracker.

Suit Fails to Block U.S. Military Shot Mandate (7 a.m. HK)

The Biden administration’s push for vaccine mandates, under fire in courts around the nation, has survived a legal challenge headed by former Trump campaign lawyer Sidney Powell over vaccines in the military.

Powell, who tried to flip the result of the 2020 presidential election with a series of failed lawsuits based on conspiracy theories, lost a request to temporarily block the Pentagon’s Covid-19 vaccine mandate. The lawsuit was filed on behalf of disgruntled service members.

The suit didn’t come close to meeting the high bar for winning a preliminary injunction, U.S. District Judge Allen Winsor ruled Friday in Pensacola, Florida. 

U.K. to Lower Age for Boosters: Report (5:50 p.m. NY)

The U.K. will extend its booster program to those under 50 years old to increase the nation’s immunity over winter, the Times of London reported, without saying where it got the information. 

Boosters will be able to be booked six months after the second dose, the report said. The Joint Committee on Vaccination and Immunization is expected to give approval on Monday, although precise details of the age groups have yet to be confirmed, according to the report.

Israel Approves Vaccine for Young Children (4 p.m. NY)

Israel’s health ministry approved vaccinations from Pfizer Inc.-BioNTech SE for children ages 5 to 11 on Sunday, Haaretz reported. Speaking in the Knesset, Prime Minister Naftali Bennett urged Israelis to have their children inoculated, saying he would do so with his son David. A panel of Israeli health experts had recommended the action last week. 

U.S. health officials approved the shot for the same age group almost two weeks ago. More than 900,000 young children were vaccinated through last week. 

Yellen Calls Covid Cause of Inflation (1:38 p.m. NY)

Treasury Secretary Janet Yellen said controlling Covid-19 in the U.S. is the key to easing inflation.

“It’s important to realize that the cause of this inflation is the pandemic,” Yellen said on CBS’s “Face the Nation” on Sunday. 

“If we want to get inflation down, I think continuing to make progress against the pandemic is the most important thing we can do,” she said.

Christie Recounts Phone Call With Trump in Book: NYT (1:18 p.m. NY)

When Donald Trump and Chris Christie were both hospitalized with Covid-19 in late 2020 after spending time together, the former president called the former New Jersey governor with one main concern.

“Are you gonna say you got it from me?” Trump asked him, according to a new book by Christie, which was cited by The New York Times.

Christie also wrote that his priest visited him in the hospital to pray over him. In an CNN interview to be aired on Monday, Christie said he is unsure whether he or Trump will run for presidency again and he doesn’t want to make predictions about 2024.

Virus Fear Is Holding U.S. Back, Kashkari Says (12:06 p.m. NY)

Getting Americans back to work depends on bringing the Covid-19 pandemic under control, Minneapolis Fed president Neel Kashkari said.

“What’s keeping people on the sidelines -- we think it’s fear of the virus, the delta wave and the continued spread,” Kashkari said on CBS’s “Face the Nation.”

Getting the pandemic “really under control” will give people the confidence to return to work, helping the U.S. economic recovery and bringing down inflation, he said.

Fire Kills Three in Bulgarian Covid Ward (11:30 a.m. NY)

Three patients died after a fire broke out in a Covid-19 ward at a hospital in southern Bulgaria, the Associated Press reported. Hospitals are under strain in Bulgaria, where the virus is surging and which has one of the lowest rates of vaccination in Europe. 

U.S. Official Says Covid Limits Freedoms (10:34 a.m. NY)

U.S. Surgeon General Vivek Murthy strongly defended federal vaccine mandates, likening them to speed limits on roads.

“Sometimes our decisions do affect other people,” Murthy said on “Fox News Sunday.” “How fast we drive affects the safety of others.”

“While freedom is absolutely important, we also have a collective responsibility to one another when our decisions do impact the health and well being of others,” he said.

He said vaccination rates rose an average of 20% in organizations that required shots.

Austria Lockdown for Unvaccinated (6:46 a.m. NY)

Austria announced a lockdown for unvaccinated people for at least 10 days as coronavirus cases spike to record levels from Monday until at least Nov. 24. Only about 65% of Austrians are fully vaccinated, one of the lowest rates in Western Europe.

Austria’s 7-day average of Covid cases has more than doubled this month to more than 10,000, and its recent rate of infection is among the highest in the world. A record 13,152 cases were reported on Saturday. The seven-day infection rate of 775 new cases per 100,000 people is well above 289 in neighboring Germany.

Czech Cases Spike (6:40 p.m. HK)

The Czech Republic recorded 9,161 new Covid-19 cases in 24 hours through Saturday, up by 3,400 from a week ago, according to the health ministry data. The nation of 10.7 million people reported more than 10,000 daily cases for four consecutive days this week. The outgoing government of Prime Minister Andrej Babis plans to announce new measures to stem the spread on Monday but is seeking agreement on curbs with the future cabinet lead by the Civic Democrats.

Swiss Boosters for Everyone (5:09 p.m. HK)

A third vaccination will have to be extended to the general population in the near future, Swiss President Guy Parmelin said in an interview with local paper NZZ am Sonntag. Switzerland currently recommends booster shots for people over 65 years old.  

Germany to Require Remote Work Option (3:20 p.m. HK)

Due to a recent surge in Covid-19 cases, the three parties negotiating to form Germany’s next government plan to require companies to allow office workers to work from home where possible, Handelsblatt newspaper reported.

Germany recorded another 33,498 coronavirus infections in the 24 hours through Sunday morning, taking the total since the start of the pandemic above 5 million, according to data from the RKI public-health institute. The number of deaths rose by 55 to 97,672, while the seven-day incidence rate climbed to 289.

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