Biden’s Up, Trump’s Down. But It’s Still Early

(Bloomberg) --

Joe Biden had (another) good night. For Donald Trump, the last few days have been a challenge.

The former vice president now enjoys an all-but-insurmountable lead over Bernie Sanders in the race to become the Democratic presidential nominee. Party supporters increasingly view him as the best person to take on Trump in November.

Biden logged convincing victories in party primaries in Missouri, Mississippi, Idaho and — most importantly — Michigan, the biggest prize last night and a key general election battleground.

Trump, in turn, is finding out what it’s like to be president at a time of crisis. The coronavirus outbreak has roiled global markets. An oil price war between Russia and Saudi Arabia threatens America’s bid for energy dominance. There’s now significant risk the U.S. economy teeters into recession.

Investors meanwhile are still awaiting details of a Trump-promised stimulus package that were expected yesterday.

U.S. virus cases have surpassed 1,000, according to one tally, and a top health official said some parts of the country are beyond containment efforts. The National Guard has been enlisted to help lock down one New York suburb that’s become a virus hot spot.

Election Day is still eight months away, an eternity in political terms, and it’s too soon to know the extent to which the virus could hinder Trump. But things are not trending in his direction at the moment.

(Michael Bloomberg, the founder and majority owner of Bloomberg LP, also sought the Democratic nomination. He endorsed Joe Biden on March 4.)

Global Headlines

Worse to come | European Central Bank chief Christine Lagarde warned that without urgent coordinated action on the coronavirus, Europe “will see a scenario that will remind many of us of the 2008 Great Financial Crisis,” according to a person familiar with her comments.

Italy is preparing to increase its fiscal stimulus program for the fourth time in a month, officials said, after the European Union agreed to stretch its budget rules to the limit to help member states fight the virus. Turkey confirmed its first case of the virus, saying the person contracted it from Europe.

On the defensive | China has expanded its clout under President Xi Jinping, with new international organizations and a global infrastructure program. But as Peter Martin explains, with the coronavirus outbreak prompting nations to shun Chinese visitors and reassess supply chains, diplomats are focused not just on outward reach but on protecting the home front, in particular the Communist Party’s hold on power.

Read how Trump’s move to retweet supporter Charlie Kirk calling it the “China virus” could fuel tensions with Beijing.

Spending spree | U.K. Chancellor of the Exchequer Rishi Sunak will use his first budget today to promise record spending on infrastructure, as the government uses a huge increase in borrowing to end the era of austerity. The money will target roads, railways, housing and digital connectivity and is critical to Prime Minister Boris Johnson’s pledge to revive economically “left behind” regions of the U.K.

The Bank of England today cut rates 50 basis points to a record low after an emergency meeting. Junior Health Minister Nadine Dorries becomes the first British lawmaker to test positive for coronavirus.

Ruler for life? | Vladimir Putin paved the way to remain in power until potentially 2036, when he will be nearly 84. The Russian president yesterday endorsed a last-minute proposal by lawmakers to reset term limits as part of a package of constitutional amendments, allowing him two more six-year terms once his current one ends in 2024.

Slow unraveling | Dollars are in such short supply in Lebanon the central bank will only give them to importers of wheat, medicine and fuel. Banks that kept their doors open through the country’s civil war are closing early and imposing strict withdrawal limits. As the nation heads toward its first default, Lin Noueihed reports the crisis has laid bare what Lebanese have long suspected: Politicians and their business partners have bled the country dry.What to Watch

The White House will today host a meeting with tech giants like Google, Amazon and Facebook to coordinate responses to the coronavirus. Mozambique suffered the biggest increase in attacks by Islamist militants globally last year, with violence centered around the gas-rich Cabo Delgado province, a new security report says. Venezuelan police detained an opposition lawmaker hours after supporters of National Assembly President Juan Guaido were tear-gassed during a protest in Caracas against Nicolas Maduro’s government.

Tell us how we’re doing or what we’re missing at balancepower@bloomberg.net.And finally ... As Air Force One sped toward Washington on Monday, the coronavirus outbreak’s impact became inescapable for Trump. Televisions tuned to Fox News broadcast dire graphics illustrating the single worst day for markets since 2008. A congressman who’d accompanied Trump to fundraising events had self-quarantined in an empty cabin. By the time Trump touched down, he’d decided to act. Our Washington bureau has the inside story on how he came to that decision.

--With assistance from Ruth Pollard and Anthony Halpin.

To contact the author of this story: Kathleen Hunter in London at khunter9@bloomberg.net

To contact the editor responsible for this story: Rosalind Mathieson at rmathieson3@bloomberg.net, Karl Maier

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2020 Bloomberg L.P.