COVID-19 | Daily Update

Wednesday, June 5th | COVID-19 Daily Update

CURRENT OUTLOOK

According to the epidemiological report released today by the Portuguese General Directorate of Health (DGS), in the last 24 hours, there were 10 more deaths and 377 new cases of COVID-19 infection in Portugal. 

The bulletin reports that the number of fatalities rose from 1,455 to 1,465, while confirmed cases increased from 33,592 to 33,969.  

A total of 203 more people recovered from the disease were registered.

 

PANDEMIC IN PORTUGAL

The Prime Minister yesterday presented a reformulation of the lay-off for companies that resume activity: new mechanism will depend on billing and support will be paid according to the hours not worked, ultimately reducing costs for the State and the workers. 

The Government will strengthen the NHS by hiring more than 2,700 health professionals and increasing the number of intensive care beds. 

After all, Spain’s borders with Portugal only reopen on July 1st. Spain withdrew after the Spanish Tourism Minister announced the reopening on 22nd June and the Portuguese Government was surprised and asked Madrid for clarification. 

DGS today published a new guideline on pregnancy and childbirth due to the coronavirus. The new document establishes that a laboratory test for coronavirus must be carried out at the hospital where the pregnant woman is, even if she does not show symptoms of the disease. 

Portugal will contribute for the first time to Gavi, the Alliance of Vaccines, with 100 thousand euros, announced yesterday the Minister of Health, Marta Temido, during an intervention in a global fundraising summit organized by the United Kingdom.

A study by the European Aviation Safety Agency concluded that the airports Humberto Delgado, in Lisbon, and Francisco Sá Carneiro, in Porto, are located in areas with a high risk of transmission of the new coronavirus.

 

PANDEMIC IN EUROPE AND THE WORLD 

The European Union (EU) will use an emergency fund of € 2.4 billion to purchase vaccines under development, following the American example, which has already started to negotiate with pharmaceutical companies. 

The president of the French Scientific Council said today that the “COVID-19 epidemic is currently controlled” in France.

The Czech Republic will reopen its borders with Austria and Germany today at noon, ten days ahead of schedule, and almost three months after closing due to COVID-19.

In the last 24 hours, Brazil surpassed Italy and became the third country in the world with the highest number of deaths by COVID-19, after reaching a new daily record of 1,473 fatalities.  

The United States, on the other hand, recorded 1,021 deaths, rising to more than 108,000 deaths since the beginning of the pandemic.

The Argentina President extended the mandatory social isolation in the metropolitan area of Buenos Aires and other urban centres for another three weeks, which will total 100 days of confinement.

 

ECONOMIC IMPACT

The European Central Bank (ECB) announced yesterday that it added € 600 billion to the Pandemic Emergency Purchase Program, the asset purchase program launched in March to help the economy and markets addressing the risks that the pandemic has brought to the Eurozone economy.

This year, the Eurozone is expected to have the largest nominal wage devaluation per capita on record, as stated in the EC’s historical series with the new ECB forecast, revealed yesterday. 

The prime minister recalled yesterday, during an interview in TVI’s “Jornal das 8”, that “in just two months the number of unemployed in Portugal increased by 100,000” and admitted a “very dark scenario” in 2021 as a result of the crisis caused by the pandemic.  

Mário Centeno, on the other hand, guarantees that he will not use austerity to react to the economic crisis, but warns that the Government cannot put the State “in a weak situation”. The Finance Minister also said that he will not lower or raise taxes and ensures that pension cuts are not foreseen, although he admits that the slippage in the State Budget is now of 13 billion euros.

The International Labor Organization warns that almost half of the world’s workforce may be at risk of rising unemployment generated by the pandemic.

 

FINANCIAL MARKETS 

The main Portuguese stock index, PSI-20, started today’s session to appreciate 0.51%, to 4,644.85 points, following the trends of its European counterparts. 

In Germany, DAX grows 1.18%, in the United Kingdom, FTSE 100 rises 0.86%, French CAC 40 increases 1.71%, Dutch AEX grows 1.13%.  

In Spain, the IBEX35 increased by 2.37% and the Italian FTSE MIB increased 2.20%.