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The Ebola virus: profile of a dreaded killer

20 Sep 2022 21 Sep 2022

The highly contagious Ebola virus has claimed more than 15,000 lives since it was first identified in central Africa in 1976.

On Tuesday, Uganda announced its first Ebola fatality since 2019 in an outbreak in the central district of Mubende.

Here is a factfile on one of the world’s most deadliest diseases:

– Origins –

Ebola is a viral haemorrhagic fever that was first discovered in the Democratic Republic of Congo (DR Congo).

Five of the virus species are known to cause disease in humans — Zaire, Sudan, Bundibugyo, Reston and Tai Forest.

The first three have resulted in serious outbreaks in Africa.

The 24-year-old man whose death was announced Tuesday in Uganda tested positive for the Sudan strain.

– Transmission –

The virus’ natural reservoir animal is suspected to be a species of fruit bat, which does not itself fall ill but can pass the disease on to primates, including humans. Humans become exposed to the virus if they kill or butcher infected bats for food.

Among humans, the virus is passed on by contact with the blood, body fluids, secretions or organs of an infected or recently deceased person.

Those infected do not become contagious until symptoms appear. They become more and more contagious until just after their death, which poses great risks during funerals.

Death rates are high, at around 50 percent on average of those infected, and up to 90 percent for some epidemics, World Health Organization (WHO) data show.

– Symptoms –

Following an incubation period of between two and 21 days, Ebola develops into a high fever, weakness, intense muscle and joint pain, headaches and a sore throat.

The initial symptoms are often followed by vomiting and diarrhoea, skin eruptions, kidney and liver failure, and sometimes internal and external bleeding.

– Vaccines and treatment –

Merck’s Ervebo vaccine, the first Ebola jab approved by the US Food and Drug Administration (FDA) in December 2019, has been shown to be highly effective in protecting people from the Zaire strain.

US group Johnson & Johnson has also reported promising results against the Zaire strain of its two-dose Zabdeno vaccine, which has been authorised for use in the European Union.

In terms of treatment, the WHO in August recommended two life-saving medicines, Inmazeb and Ebanga, which were successfully trialled during Ebola outbreaks.

– Worst outbreaks –

The worst-ever outbreak began in December 2013 in southern Guinea before spreading to two neighbouring West African countries, Liberia and Sierra Leone.

More than 11,300 people were killed, according to WHO estimates.

The second-deadliest took place between 2018 and 2020 in DR Congo’s conflict-plagued North Kivu province and killed 2,299 people according to the WHO.

DR Congo has experienced 14 Ebola outbreaks since the 1970s.

The first person infected outside Africa was a Spanish nurse who caught the disease in 2014 after cleaning the hospital room of a Spanish missionary who was repatriated from West Africa with the virus. The missionary died but the nurse survived.

Movies back in Indian Kashmir, decades after cinema closures

20 Sep 2022 21 Sep 2022

Silver screens lit up in Indian-administered Kashmir for the first time in a generation at the opening of a new cinema on Tuesday, decades after an armed rebellion shuttered local movie halls.

India has been fortifying its control over the strife-torn Muslim-majority region after a grinding conflict between security forces and insurgents fighting for independence or a merger with neighbouring Pakistan.

Most cinemas were shut down by rebel groups in 1989, the year of a huge uprising against Indian rule, with the insurgents saying their Bollywood blockbuster screenings were avenues for cultural imperialism.

The theatres were later mostly occupied by security forces, who used them as detention and interrogation centres, with some still used by soldiers as staging posts.

Periodic attempts to revive cinema halls in Kashmir in the 1990s and later failed, with a heavy security presence deterring ordinary patrons.

Authorities have feted the new multiplex as the consequence of an improved security situation since New Delhi took steps to bolster its control of the territory.

Its opening was a symbol of a government commitment to “establishing peace” in the region, said Lieutenant Governor Manoj Sinha, India’s top administrator in Kashmir.

“We are bringing back a lost era,” he said at a ceremony and screening marking the movie house’s opening in the city of Srinagar. It was attended mostly by government and security officials.

“The opening of this cinema reflects the changing picture of Kashmir.”

The new multiplex opens to the public next week and Sinha’s administration has pledged to support the opening of 10 more cinemas around the region.

At least half a million Indian troops are permanently stationed in Kashmir, which is also claimed and partly controlled by Pakistan.

India regularly blames Pakistan for backing the long-running rebellion against its rule, an allegation Islamabad denies.

Prime Minister Narendra Modi’s Hindu nationalist government has tightened its chokehold on Indian-administered Kashmir since 2019, when it revoked the limited autonomy constitutionally guaranteed to the region.

Thousands of people were taken into preventive detention to forestall expected protests against the sudden decision, while authorities severed communications links in what became the world’s longest-ever internet shutdown.

Clashes between militants and Indian troops are still a regular occurrence and protests and civic life have been severely curbed.

Foreign journalists are barred from the territory while local reporters are regularly harassed by police and security forces for their coverage.

Europe equities drop on jumbo Swedish rate hike

20 Sep 2022 20 Sep 2022

European stocks retreated Tuesday as Sweden’s jumbo interest rate hike, aimed at tackling inflation, stoked expectations of more increases this week from the US Federal Reserve and the Bank of England.

The Swedish central bank sprang the biggest rise in three decades, ramping up its rate by a full percentage point to 1.75 percent.

The news sent the region’s markets into reverse as tighter global borrowing costs bear down on economic activity.

Frankfurt and Paris equities also dropped about one percent as news of rocketing German producer prices further fanned inflation fears.

London fell after reopening following funeral of Queen Elizabeth II on Monday.

The euro dipped against main rivals after Monday’s surge, while oil price gains were capped by the stronger dollar.

– ‘Nerves jangling again’ –

“European stocks rallied at the open — but a jumbo rate hike from Sweden’s central bank sent the nerves jangling again as investors worry about what’s in store from global central banks,” Markets.com analyst Neil Wilson told AFP.

The US Federal Reserve is forecast Wednesday to hike its key interest rate by another 0.75 percentage points.

One day later, the Bank of England (BoE) is predicted to deliver another sizeable increase in British borrowing costs.

“The (Swedish) hike underlined just how serious central banks are taking the inflation threat and with 75 basis point hikes from the Bank of England and Federal Reserve looking like slam-dunk certainties, the early optimism in the markets quickly evaporated,” added Wilson

“The reality of central bank tightening… is keeping a lid on stocks and will continue to act as a headwind for risk.”

Asian markets meanwhile enjoyed a much-needed bounce Tuesday, tracking Wall Street’s late rally as investors gird themselves for another big Fed hike, though fears of a recession remain elevated.

The Fed’s decision is the main markets focus after figures last week showed consumer prices are still rising at a pace not seen since the early 1980s.

Some observers have even speculated over a possible one-percentage-point move.

Elsewhere on Tuesday, the British pound remained under pressure, even as the BoE lines up another rate hike, after sliding on Friday to a 1985 low at $1.1351.

– Key figures at around 1100 GMT –

London – FTSE 100: DOWN 0.3 percent at 7,218.59 points

Frankfurt – DAX: DOWN 0.9 percent at 12,694.32

Paris – CAC 40: DOWN 1.0 percent at 6,002.38

EURO STOXX 50: DOWN 0.8 percent at 3,472.62

Tokyo – Nikkei 225: UP 0.4 percent at 27,688.42 (close)

Hong Kong – Hang Seng Index: UP 1.2 percent at 18,781.42 (close)

Shanghai – Composite: UP 0.2 percent at 3,122.41 (close)

New York – Dow: DOWN 0.2 percent at 30,765.98

Euro/dollar: DOWN at $1.0007 from $1.0024 on Monday

Dollar/yen: UP at 143.65 yen from 143.21 yen

Pound/dollar: UP at $1.1435 from $1.1431

Euro/pound: DOWN at 87.51 pence from 87.70 pence

Brent North Sea crude: UP 0.6 percent at $92.58 per barrel

West Texas Intermediate: UP 0.5 percent at $86.19 per barrel

burs-rfj/bcp/rl

Europe equities drop on jumbo Swedish rate hike

20 Sep 2022 20 Sep 2022

The Swedish central bank sprang the biggest rise in three decades, ramping up its rate by a full percentage point to 1.75 percent.

The news sent the region’s markets into reverse as tighter global borrowing costs bear down on economic activity.

Frankfurt and Paris equities also dropped about one percent as news of rocketing German producer prices further fanned inflation fears.

London fell after reopening following funeral of Queen Elizabeth II on Monday.

The euro dipped against main rivals after Monday’s surge, while oil price gains were capped by the stronger dollar.

– ‘Nerves jangling again’ –

The US Federal Reserve is forecast Wednesday to hike its key interest rate by another 0.75 percentage points.

One day later, the Bank of England (BoE) is predicted to deliver another sizeable increase in British borrowing costs.

“The reality of central bank tightening… is keeping a lid on stocks and will continue to act as a headwind for risk.”

Asian markets meanwhile enjoyed a much-needed bounce Tuesday, tracking Wall Street’s late rally as investors gird themselves for another big Fed hike, though fears of a recession remain elevated.

The Fed’s decision is the main markets focus after figures last week showed consumer prices are still rising at a pace not seen since the early 1980s.

Some observers have even speculated over a possible one-percentage-point move.

Elsewhere on Tuesday, the British pound remained under pressure, even as the BoE lines up another rate hike, after sliding on Friday to a 1985 low at $1.1351.

– Key figures at around 1100 GMT –

London – FTSE 100: DOWN 0.3 percent at 7,218.59 points

Frankfurt – DAX: DOWN 0.9 percent at 12,694.32

Paris – CAC 40: DOWN 1.0 percent at 6,002.38

EURO STOXX 50: DOWN 0.8 percent at 3,472.62

Tokyo – Nikkei 225: UP 0.4 percent at 27,688.42 (close)

Hong Kong – Hang Seng Index: UP 1.2 percent at 18,781.42 (close)

Shanghai – Composite: UP 0.2 percent at 3,122.41 (close)

New York – Dow: DOWN 0.2 percent at 30,765.98

Euro/dollar: DOWN at $1.0007 from $1.0024 on Monday

Dollar/yen: UP at 143.65 yen from 143.21 yen

Pound/dollar: UP at $1.1435 from $1.1431

Euro/pound: DOWN at 87.51 pence from 87.70 pence

Brent North Sea crude: UP 0.6 percent at $92.58 per barrel

West Texas Intermediate: UP 0.5 percent at $86.19 per barrel

burs-rfj/bcp/rl

UN summit returns in divided world

20 Sep 2022 20 Sep 2022

The United Nations’ massive annual summit returns in person Tuesday to a world divided by multiple crises starting with Ukraine.

After two years of pandemic restrictions and video addresses, the UN General Assembly is again asking leaders to come in person if they wish to speak — with a sole exception made for Ukrainian President Volodymyr Zelensky.

But the death of Queen Elizabeth II disrupted the summit anew. President Joe Biden of the United States, by tradition the second speaker on the first day, will instead speak on Wednesday.

The first day will feature French President Emmanuel Macron and German Chancellor Olaf Scholz, the leaders of the two largest economies of the European Union, which has mobilized to impose tough sanctions over Russia’s invasion of Ukraine.

“This year, Ukraine will be very high on the agenda. It will be unavoidable,” top EU diplomat Josep Borrell told reporters in New York.

“There are many other problems, we know. But the war in Ukraine has been sending shock waves around the world.”

German Foreign Minister Annalena Baerbock vowed to support countries hardest hit by the fallout from the war as she headed to the General Assembly on Tuesday.

“The brutality of Russia’s war of aggression and its threat to the peace order in Europe have not blinded us to the fact that its dramatic effects are also clearly being felt in many other regions of the world,” Baerbock said.

But UN Secretary-General Antonio Guterres has been urging leaders not to forget other priorities such as education, the topic of a special summit on Monday.

“Education is in a deep crisis. Instead of being the great enabler, education is fast becoming the great divide,” Guterres told the summit.

He warned that the Covid-19 pandemic has had a devastating impact on learning, with poor students lacking technology at a particular disadvantage, and conflicts further disrupting schools.

In a report earlier this month, the UN Development Programme said Covid has set back humanity’s progress by five years.

With the Ukraine war leading to a global grain crisis, hunger could be another major issue on the agenda. On Tuesday, more than 200 NGOs called for urgent action from leaders gathered for the General Assembly to “end the spiralling global hunger crisis.”

“Around the world, 50 million people are on the brink of starvation in 45 countries,” they said, adding that as many as 19,700 people are estimated to be dying of hunger every day, which translates to one person every four seconds.

– Talks between rivals –

Other leaders to speak Tuesday include Turkish President Recep Tayyip Erdogan, who has staked out ground as a broker between Russia and Ukraine, including through a deal to ship out badly needed grain to the world.

Erdogan is also expected to meet in New York with Israeli Prime Minister Yair Lapid, a dramatic rebound in relations after the Turkish leader’s strident criticism of the Jewish state’s treatment of Palestinians.

In the type of last-minute diplomacy common at previous UN sessions, US Secretary of State Antony Blinken convened a first meeting of the foreign ministers of Azerbaijan and Armenia since a flare-up in fighting.

“Strong, sustainable diplomatic engagement is the best path for everyone,” Blinken told them.

Russian Foreign Minister Sergei Lavrov was visiting despite a hostile reaction from the United States.

He met Monday with his French counterpart, Catherine Colonna, who urged Russia to allow a security zone outside the Zaporizhzhia nuclear plant, whose occupation by Moscow has raised mounting concerns.

Also high on the agenda for the UN week will be Iran, whose hardline president, Ebrahim Raisi, is traveling to the General Assembly for the first time and will meet Tuesday with French President Emmanuel Macron.

In a US television interview ahead of his arrival, Raisi said that Iran wanted “guarantees” before returning to a nuclear deal that former president Donald Trump trashed in 2018.

“We cannot trust the Americans because of the behavior that we have already seen from them. That is why if there is no guarantee, there is no trust,” he told CBS News’ “60 Minutes” program.

Biden supports a return to the 2015 agreement, under which Iran drastically scaled back nuclear work in return for promises of sanctions relief.

But the Biden administration says it is impossible in the US system to promise what a future president would do.

“There is no better offer for Iran,” Colonna said ahead of the meeting with Macron.

“It’s up to them to make a decision,” she said.

Raisi can expect to be dogged by protests during his visit including by exile groups that have called for his arrest over mass executions of opponents a decade after the 1979 Islamic revolution.

Facebook parent Meta in EU setback against German rules

20 Sep 2022 21 Sep 2022

Facebook’s parent company Meta on Tuesday suffered a setback in its challenge against German antitrust rules as a top adviser to the EU Court of Justice backed the regulator.

Meta’s challenge came after it was banned by the German authority from collecting data from its various services including Instagram and WhatsApp, and linking the information to the Facebook account of the user for advertising purposes.

The German Federal Competition Authority had prohibited Meta from the data processing practice after finding that it constituted an abuse of the company’s dominant position on the social network market.

Facebook had challenged the German decision at a court in Duesseldorf, which had sent the case on to the European court.

On Tuesday, the EU court’s advocate general said that while the antitrust authority does not have the jurisdiction to rule on an infringement of data protection rules, compliance with such rules could be taken as an “important indicator” in ascertaining if an entity has breached competition rules.

The court adviser also noted that a ban on processing sensitive personal data, such as an individual’s ethnic origin, health or sexual orientation, could apply in this case.

In order for an exemption to the prohibition concerning such data to apply, the user “must be fully aware that, by an explicit act, he is making personal data public”.

The advocate general added that the “conduct consisting in visiting websites and apps, entering data into those websites and apps and clicking on buttons integrated into them cannot, in principle, be regarded in the same way as conduct that manifestly makes public the user’s sensitive personal data”.

The advocate general’s opinion is non-binding but it often indicates which way the court will rule.

Hungary's anti-graft measures to get blocked EU funds

20 Sep 2022 20 Sep 2022

The government of Hungarian nationalist Prime Minister Viktor Orban is proposing a raft of anti-graft measures to unlock billions of euros in blocked EU funds as the country confronts an economic downturn.

Here are key questions regarding the issue:

– What to expect from the reforms? –

The government tabled amendments in parliament on Monday with more to follow on Friday for a total of 17 key changes, which are expected to be waved through.

The measures aim to create independent anti-corruption watchdogs to monitor the use of EU funds and make the legislative process more transparent.

They follow a proposal on Sunday by the European Union’s executive arm to suspend 7.5 billion euros ($7.5 billion) in financing for Hungary.

The proposed suspension is over concerns that Orban, who has ruled Hungary since 2010, is undercutting the rule of law and using EU money to enrich cronies.

On Thursday, the European Parliament declared that Hungary was no longer a “full democracy” — a symbolic vote that infuriated Budapest.

Miklos Ligeti, head of legal affairs at the NGO Transparency International Hungary, said under Orban checks and balances had been dismantled and “a highly dysfunctional rules system” put in place.

“There is no way of getting rid of the systemic corruption just by changing some laws,” he told AFP, adding “not much can be achieved”.

Transparency International ranks Hungary as the second lowest in the EU in its corruption perception index.

“Orban cannot really afford professional anti-corruption scrutiny as too many relatives and personal friends are involved,” said Peter Akos Bod, a professor at the Corvinus University of Budapest.

– Will it convince the EU? –

While the European Commission is “under pressure” to get Hungary to reform, it “does not have many tools at its disposal”, said Eulalia Rubio, a senior research fellow at the Paris-based Jacques Delors Institute.

The final decision on the commission’s proposal to suspend funds will be taken by EU states within three months.

“The European Union does not want to take a decision that will have an impact on the population,” Rubio told AFP.

It also does not want to alienate Hungary as Budapest “can harm other negotiations”, she added, such as rejecting more sanctions against Russia over its invasion of Ukraine.

The EU would have to decide on the commission proposal via a qualified majority vote, which requires 15 of the 27 countries representing a total of at least 65 percent of the bloc’s population.

Poland — another eastern EU member accused of flouting the rule of law — said it would fully oppose any measure depriving Hungary of the funds.

– Why does Hungary need the funds? –

As the rest of Europe, Hungary’s economy has been hard hit by ripple effects from the Ukraine war, with a weakening currency and fast-rising inflation.

The central European nation of 10 million people depends heavily on EU funds, according to experts.

Akos Bod, who was a central bank governor in the 1990s, said the funds were “badly needed”, with Hungary risking to have its credit rating downgraded.

“A downgrade may provoke capital flight and certainly further depreciation of the Hungarian forint,” he told AFP.

Opposition politicians have painted a dark picture.

“The country is starting to shut down due to lack of money,” European Parliament member Anna Julia Donath said in a social media post.

“We’re in big trouble, and they know it,” she added.

Hungary is also the only country still waiting for the green light from Brussels on its post-Covid recovery plan with 5.8 billion euros pending over corruption concerns.

Asian markets see rare rally but caution rules as Fed hike nears

20 Sep 2022 20 Sep 2022

Asian markets enjoyed a much-needed bounce Tuesday, tracking Wall Street’s late rally as investors gird themselves for another big Federal Reserve interest rate hike this week, though fears of a recession remain elevated.

Global equities have taken a severe body blow in recent weeks as central banks struggle to rein in stubbornly high inflation, Russia continues its war in Ukraine and China’s economic woes darken the mood across trading floors.

With the main concern being that sharp increases in borrowing costs will cause recessions in major economies, this week will be a minefield for traders with several countries, including Britain, tipped to announce more tightening.

The Fed’s decision, however, is the main focus after figures last week showed prices are still rising at rates not seen since the early 1980s.

Most observers expect the bank to announce a third successive 75-basis-point lift, though there are some who have flagged a possible one-percentage-point move.

And there is speculation that the rises will not stop until the rate is above four percent, still some way from the current 2.25-2.75 percent.

“We expect central bank tightening and a fading of supply chain pressures to moderate job growth and core inflation,” JPMorgan Chase & Co said, tipping it to end at 4.25 percent by early next year.

“In turn, we anticipate this will allow the Fed and other central banks to pause” in the first half of 2023, said strategists including Marko Kolanovic and Nikolaos Panigirtzoglou.

In a sign of expectations that rates will continue up for some time, the two-year Treasury yield is on course to break four percent for the first time since 2007.

It is also much higher than the 10-year yield, which is called an inversion and considered a key pointer to recession.

– ‘Pessimism remains elevated’ –

The outlook remains downbeat, with Edward Moya at OANDA warning the lows of June could be seen again.

“Pessimism for equities remains elevated as the US economy appears to have a one-way ticket towards a recession as the Fed is poised to remain aggressive,” he said in a note.

“The risks for a retest of the summer lows could easily happen if the Fed remains fully committed (to) their inflation fight.”

And CMC Markets analyst Michael Hewson added that “the main factor spooking markets right now is how much higher will rates have to go, and will there be any more profit warnings” from firms such as that from US shipping giant FedEx last week.

Still, Asian markets were on the up Tuesday.

Hong Kong rose more than one percent with tourism-linked firms boosted by news that the city’s government was considering bringing an end to the hotel quarantine rules that have helped hammer the local economy.

Sydney and Mumbai were also up more than one percent, while Tokyo returned from a long weekend to post healthy gains. Shanghai, Seoul, Singapore, Taipei, Manila, Wellington, Bangkok and Jakarta were also higher.

London enjoyed early gains after a special public holiday for the queen’s funeral, with Paris and Frankfurt also on the front foot.

On currency markets, the dollar held its strength ahead of the expected rate hike.

And while a jump in Japanese inflation to an eight-year high will cause a headache for the Bank of Japan, officials there are expected to maintain their ultra-loose policy to support the economy, despite the yen sitting at 24-year lows against the dollar.

Sterling was also struggling to bounce back, even as the Bank of England lines up another big increase.

Oil prices edged up but gains were capped by the strong dollar and worries about the economic outlook, while traders were also keeping tabs on Iran nuclear talks that could see Tehran resume crude sales.

– Key figures at around 0810 GMT –

Tokyo – Nikkei 225: UP 0.4 percent at 27,688.42 (close)

Hong Kong – Hang Seng Index: UP 1.2 percent at 18,781.42 (close)

Shanghai – Composite: UP 0.2 percent at 3,122.41 (close)

London – FTSE 100: UP 0.4 percent at 7,267.78

Pound/dollar: UP at $1.1455 from $1.1434 on Monday

Euro/pound: DOWN at 87.60 pence from 87.69 pence

Euro/dollar: UP at $1.0034 from $1.0026

Dollar/yen: UP at 143.45 yen from 143.24 yen

West Texas Intermediate: UP 0.2 percent at $85.88 per barrel

Brent North Sea crude: UP 0.4 percent at $92.38 per barrel

New York – Dow: DOWN 0.2 percent at 30,765.98

Asian markets see rare rally but caution rules as Fed hike nears

20 Sep 2022 20 Sep 2022

The Fed’s decision, however, is the main focus after figures last week showed prices are still rising at rates not seen since the early 1980s.

Most observers expect the bank to announce a third successive 75-basis-point lift, though there are some who have flagged a possible one-percentage-point move.

And there is speculation that the rises will not stop until the rate is above four percent, still some way from the current 2.25-2.75 percent.

“In turn, we anticipate this will allow the Fed and other central banks to pause” in the first half of 2023, said strategists including Marko Kolanovic and Nikolaos Panigirtzoglou.

In a sign of expectations that rates will continue up for some time, the two-year Treasury yield is on course to break four percent for the first time since 2007.

It is also much higher than the 10-year yield, which is called an inversion and considered a key pointer to recession.

– ‘Pessimism remains elevated’ –

The outlook remains downbeat, with Edward Moya at OANDA warning the lows of June could be seen again.

“Pessimism for equities remains elevated as the US economy appears to have a one-way ticket towards a recession as the Fed is poised to remain aggressive,” he said in a note.

“The risks for a retest of the summer lows could easily happen if the Fed remains fully committed (to) their inflation fight.”

Still, Asian markets were on the up Tuesday.

London enjoyed early gains after a special public holiday for the queen’s funeral, with Paris and Frankfurt also on the front foot.

On currency markets, the dollar held its strength ahead of the expected rate hike.

Sterling was also struggling to bounce back, even as the Bank of England lines up another big increase.

– Key figures at around 0810 GMT –

Tokyo – Nikkei 225: UP 0.4 percent at 27,688.42 (close)

Hong Kong – Hang Seng Index: UP 1.2 percent at 18,781.42 (close)

Shanghai – Composite: UP 0.2 percent at 3,122.41 (close)

London – FTSE 100: UP 0.4 percent at 7,267.78

Pound/dollar: UP at $1.1455 from $1.1434 on Monday

Euro/pound: DOWN at 87.60 pence from 87.69 pence

Euro/dollar: UP at $1.0034 from $1.0026

Dollar/yen: UP at 143.45 yen from 143.24 yen

West Texas Intermediate: UP 0.2 percent at $85.88 per barrel

Brent North Sea crude: UP 0.4 percent at $92.38 per barrel

New York – Dow: DOWN 0.2 percent at 30,765.98

Hong Kong to decide on further Covid relaxation 'soon': city leader

20 Sep 2022 22 Sep 2022

Hong Kong’s leader on Tuesday said he will soon make a decision on further relaxing coronavirus restrictions, as residents and businesses decry quarantine rules that have kept the finance hub cut off for more than two years.

“We will make a decision soon and announce to the public,” chief executive John Lee told reporters.

“We want to be connected with the different places in the world. We would like to have an orderly opening up,” he added.

Lee’s comments came as a senior Chinese official also signalled support for an easing of the curbs during a rare briefing.

“It’s normal for the Hong Kong government to adjust and improve Hong Kong’s anti-epidemic measures accordingly,” Huang Liuquan, deputy director of China’s Hong Kong and Macau Affairs Office, told reporters in Beijing.

Hong Kong has adhered to a version of China’s strict zero-Covid rules throughout the pandemic, battering the economy and deepening the city’s brain drain as rival business hubs reopen.

It maintains mandatory hotel quarantine for international arrivals — currently at three days — widespread masking, business operating limits and bans on more than four people gathering in public.

Lee, a Beijing-anointed former security chief, took office in July and vowed to reopen the city while keeping cases low.

He reduced hotel quarantine from seven to three days but has faced a growing chorus of criticism from residents, business organisations and health experts saying he should go further.

– Quarantine free? –

Over the past week multiple Hong Kong media outlets have reported, citing sources, that the government has already agreed to lift quarantine.

Lee would not confirm that decision or commit to a firm timeline on Tuesday.

But his comments were the strongest indication yet that Hong Kong is planning to join much of the rest of the world in accepting endemicity.

That would leave just China and Taiwan still maintaining mandatory quarantine for arrivals.

Under President Xi Jinping, mainland China has stuck to a rigid zero-Covid strategy with snap lockdowns of huge cities for even a handful of cases.

Unlike on the mainland, most of Hong Kong’s residents have already had the coronavirus when it tore through earlier this year, leaving the city with one of the highest death rates per capita in the world.

Hong Kong is in the midst of a technical recession while its financial chief recently warned its fiscal deficit is expected to balloon to HK$100 billion ($12.7 billion) this year, twice initial estimates.

Arrivals at the airport, once one of the world’s busiest, are at a fraction of pre-pandemic levels with many airlines skipping the city altogether.

Regional rival Singapore has long dispensed with coronavirus controls and is hosting a slew of conferences, entertainment and sporting events over the coming months.

Meanwhile, Hong Kong has seen multiple events cancelled by organisers citing the uncertain pandemic controls — including most recently next year’s World Dragon Boat Championships which will be held in Thailand instead.

Hong Kong is planning to host a banking summit and the Rugby Sevens in November, although under current rules players in the latter will have to stay in a “closed loop” bubble.