One of the quarantined passengers aboard a Princess Cruises ship told CNBC on Thursday that the vessel is moored, but guests are not allowed to leave.
“The cruise has ended and we are in a quarantine situation,” said 74-year-old David Abel, who’s being held on the Diamond Princess with his wife, Sally, in Japan as the cruise line plays a role in stopping the spread of the deadly coronavirus.
He spoke to CNBC through a Skype call that aired on the network’s special “Outbreak” report.
“All of the luxury of having someone — a steward coming to the cabin, make the bed, put chocolate on the pillow, change the towels, face cloths, clean the bathroom — those days are gone,” Abel said explaining the environment. “It just ain’t happening.”
The Carnival-owned company on Tuesday placed 3,700 passengers and crew under a two-week mandatory quarantine after 10 passengers tested positive for the fast-spreading virus. It’s a move required by the Japanese Ministry of Health. Since then, 10 additional passengers have tested positive, bringing the total to 20.
Abel’s been leading a private Facebook group for his fellow passengers in an effort to “let off steam” and cheer each other up. He’s also been posting daily Facebook Live videos, while the ship provides guests with complimentary internet and phone service.
“Those passengers who are on the inside cabins: they’ve got no windows to look out of, there’s no daylight, natural light and they can’t take a walk down a corridor. It’s strict confinement to cabins for all passengers,” Abel said in describing the scene from inside. “But the captain has announced that people on the inside cabins are going to be allowed access onto the open deck for exercise and fresh air.”
Before the quarantine took effect, a previous guest who did not have any symptoms while on-board had tested positive for the virus on Saturday, six days after leaving the cruise ship.
Health officials around the world are scrambling to stop the spread of the new virus, which was first discovered Dec. 31 in the Chinese city of Wuhan in Hubei province.
China said there was an additional 73 deaths and 3,143 new cases of the coronavirus in China as of the end of Feb. 6, bringing the total number of deaths in China to 636 and the cumulative number of confirmed cases to 31,161.
The World Health Organization said there’s been more than 150 coronavirus cases in about two dozen countries outside of China and declared the virus a global health emergency. Eleven of those cases are in the United States.
The U.S., for its part, instituted on Sunday a mandatory 14-day quarantine of Americans who in the last two weeks have visited Hubei province. The Trump administration is also instructing Americans returning to the U.S. to undergo a two-week self quarantine if they have been in other parts of mainland China in the past two weeks.
EU launches plan to regulate A.I. aimed at Silicon Valley giants
BRUSSELS, BELGIUM – FEBRUARY 19: Executive Vice President of the European Commission for a Europe Fit for the Digital Age Margrethe Vestager (L) and the EU Commissioner for Internal Market Thierry Breton (R) are talking to media in the Berlaymont, the EU Commission headquarter on February 19, 2020 in Brussels, Belgium.
BRUSSELS – The European Union is looking at ways to regulate artificial intelligence (AI) as it ramps up its oversight of large technology firms.
The European Commission, the EU’s executive branch, opened a 12-week period of discussion on Wednesday aimed at better understanding how to protect EU citizens from what it describes as the negative impacts of A.I. More concrete legislation is then expected in the second half of this year, in what could become its next big point of contention with companies such as Facebook and Alphabet.
“We recognize that we missed the first wave, or the first battle, which was the battle of personal data,” Thierry Breton, the EU’s commissioner for the internal market, told reporters in Brussels Wednesday. He said, however, that the “good news” is that the EU now understands that the next tussle will be over industrial data.
The EU is seen as a leader in corporate regulation, but European companies still struggle with competition from American and Chinese firms. The region’s data privacy rules, called General Data Protection Regulation (GDPR) and were announced in 2018, serve as a benchmark for tougher regulation in other parts of the world, including in the United States.
Overall, the EU’s aim when it comes to A.I. is to assess what sort of technologies are a risk to fundamental human rights, including in areas such as health care and transport. These will be subject to tougher requirements.
One area that the Commission is particularly concerned about is facial recognition. At the moment, the processing of biometric data in order to identify people is illegal in most cases, under data privacy laws. However, the EU is now looking at whether there should be certain exceptions.
Speaking to journalists in Brussels, Margrethe Vestager, the EU’s head of competition policy, said: “Artificial intelligence is not good or bad in itself, it all depends on why and how it is used.”
In an exclusive interview with CNBC Tuesday, Vestager said that the EU is taking a “double-sided” approach where it will enable this technology, while also ensuring it’s not harmful to EU citizens.
Meanwhile, U.S. lawmakers are watching and waiting to see what the EU decides on. “We encourage the EU to follow America’s lead and pursue an innovation friendly, values-based approach to A.I. regulation, one which avoids over-burdensome, one-size-fits-all policies,” Michael Kratsios, the U.S. chief technology officer told CNBC in emailed remarks.
He added that “the best way to counter authoritarian uses of A.I. is to ensure the U.S. and its allies remain leaders in innovation, advancing technology underpinned by our common values.”
Virus hits small business, Iran says 2 test positive
This is a live blog. Please check back for updates.
All times below are in Eastern time.
- Total confirmed cases: More than 75,200
- Total deaths: At least 2,000
10:04 am: IMF chief calls outbreak the ‘most pressing uncertainty’ for global economy
International Monetary Fund head Kristalina Georgieva said the COVID-19 outbreak is the “most pressing uncertainty” for the global economy. The new coronavirus is going to slow China’s economic growth for the year — just how much depends on how well world leaders can contain the fast-spreading outbreak, she said in a blog post. “There are a number of scenarios, depending on how quickly the spread of the virus is contained,” she said. If it’s contained quickly, she said, China’s overall 2020 GDP growth will be hurt, but just slightly and cross-border spillover would remain minimal. “However, a long-lasting and more severe outbreak would result in a sharper and more protracted growth slowdown in China. Its global impact would be amplified through more substantial supply chain disruptions and a more persistent drop in investor confidence, especially if the epidemic spreads beyond China.” — Feuer
9:15 am: Plugable Technologies warns the worst of its supply disruption won’t hit for months
The CEO and founder of Plugable Technologies, which sells USB, Bluetooth and power devices and partners with 15 factories in China, told CNBC’s “Squawk Box” he is expecting the virus to disrupt his supply chain during March and April the most because securing any extra inventory will take at least two months to move through the supply chain. CEO Bernie Thompson said he has also had trouble with factories outside China since it only takes one part built in the country to disrupt the entire supply chain, especially in the electronics industry. —Higgins-Dunn
9:01 am: Virus hits small business owners who import products from China
As coronavirus spreads around the world, small business owners who import from China are on edge. CNBC spoke with Kyle Kirshner, who has been doing business in China for several years. He knew to stock up on supplies ahead of the Lunar New Year, but prolonged factory shutdowns threatened his business and that of others who import products from China. Kirshner owns Kyndley, which sells outdoor products via Amazon and imports 90% of its goods from China. He expects his supply will be impacted within a month if things don’t turn around. And if he doesn’t have product to list on Amazon, his rankings may drop and hurt sales. — Rogers
8 am: China expels three WSJ journalists
China has revoked the press credentials of three journalists from The Wall Street Journal after the newspaper declined to apologize for a column that called China the “real sick man of Asia,” China’s foreign ministry said. Spokesman Geng Shuang told a daily briefing that Beijing made several representations to the paper over the column, which China criticized as racist and denigrating its efforts to combat the coronavirus epidemic, but that the paper had failed to apologize or investigate those responsible. Deputy Bureau Chief Josh Chin and reporter Chao Deng, both U.S. nationals, as well as reporter Philip Wen, an Australian national, have been ordered to leave the country within five days, the WSJ reported. — Feuer
7:30 am: Adidas reports 85% drop in China business activity
German sportswear maker Adidas said business in China dropped by about 85% year on year as the coronavirus outbreak has resulted in store closures and fewer customers visiting the remaining outlets. Adidas said it had seen lower traffic, mainly in Japan and South Korea, but added that it had not yet registered any major business impact beyond Greater China. “As the situation keeps evolving on a daily basis, the magnitude of the overall impact on our business for the full-year 2020 cannot be quantified reliably at this point in time,” it said. — Reuters
A masked man guards at the entrance to a village as a measure to contain the COVID-19 spread in Zhangye in northwest China’s Gansu province Tuesday, Feb. 18, 2020.
Barcroft Media | Getty Images
6:30 am: Iran says two people have tested positive for coronavirus
Iranian authorities reported two suspected cases of the coronavirus, according to the country’s semi-official ISNA news agency. A health ministry spokesperson said both cases were in the city of Qom and the patients had been put into isolation. “The next stages of testing are underway and the final results of these tests will be released to the public once they have been determined,” Kiyanoush Jahanpour, a spokesperson at Iran’s health ministry, said in a statement, ISNA reported. Iran has not previously confirmed any cases of the coronavirus. — Meredith
5:40 am: Japan says 79 more people have tested positive for coronavirus on Diamond Princess cruise ship
Japan confirmed 79 new cases aboard the Diamond Princess cruise liner, taking the total number of on-board infections to 621. Japan’s public broadcaster, NHK, citing the health ministry, said 68 of the 79 people with COVID-19 didn’t have any symptoms. Earlier, passengers and crew members on board the quarantined cruise ship, who were not taking government repatriation flights, started the process of disembarking. There may be more positive test results as people need certificates indicating they tested negative for the virus before they can leave. — Meredith
Read CNBC’s coverage from CNBC’s Asia-Pacific and Europe teams overnight here: Iran says two test positive for virus, death toll tops 2,000.
Hardliners to dominate, low turnout expected
Iranians walk past electoral posters and fliers during the last day of election campaign in Tehran on February 19, 2020. – Iran’s electoral watchdog defended its decision to disqualify thousands of candidates for a crucial parliamentary election in two days, as a lacklustre campaign neared its end.
ATTA KENARE | AFP via Getty Images
Iran is holding its parliamentary elections Friday, and one thing seems all but certain: It will be a major victory for the country’s conservative hardliners.
This week will see 7,148 candidates vetted by Iran’s unelected religious and legal authorities compete for 290 seats across 31 provinces. But much of the country’s youth, particularly in the capital Tehran, plan to stay at home, foreshadowing what’s expected to be the lowest voter turnout in years.
“I’m not going to vote, and none of my friends are going to vote too,” Mehdi, a business owner in his 20s living in Tehran, told CNBC. “Nothing is going to change with or without us voting … They decided everything for the country, without considering the Parliament,” he said, referring to the ruling regime.
“So it’s a joke to even have a Parliament. We’re protesting against them by not participating in the elections.”
‘Least competitive’ election in years
Iranian activists and country experts point to the sheer lack of competition manufactured by the regime’s ruling lawmakers: 7,296 of 15,000 people who applied to run for Parliament were disqualified by the Guardian Council, a 12-person board of experts in constitutional and Islamic law largely appointed by the supreme leader Ayatollah Ali Khamenei that wields significant power in Iranian politics.
“These will be the least competitive parliamentary elections in Iran since 2004 when reformists and incumbents were also disqualified en masse,” Barbara Slavin, the director of the Future of Iran Initiative at the Atlantic Council, told CNBC. “If history repeats itself, a conservative will also be elected president in 2021.”
Iranian Supreme Leader Ayatollah Ali Khamenei gives his first Friday sermon after eight years in the Imam Khomeini Musalla, in Tehran, Iran on January 17, 2020.
Iranian Supreme Leader Press Office | Handout | Anadolu Agency | Getty Images)
The Guardian Council oversees the elections, decides who can run, and has veto power over the Parliament’s legislation, making it more influential than the popularly-elected body, and its highly conservative nature has led it to frequently ban reformist candidates from running for public office.
Calls for an election boycott
This year, the Council also banned 80 sitting reformist lawmakers from running again.
“With the exception of the first post-revolutionary parliamentary elections in 1980, the Islamic Republic’s parliament has only ever allowed a narrow range of politicians to run for office,” said Arash Azizi, an Iranian historian and analyst, in a report last week. “But this time the Guardian Council has gone much further, effectively expelling the reformist faction of the regime from the political realm.”
Iranians within and outside the country, including the imprisoned activist Narges Mohammadi and former minister Mostafa Tajzadeh, have openly called for a boycott of the elections. The hashtags #BoycottIranShamElections and #MyVoteRegimeChange are being widely tweeted by activists.
Meanwhile, Khamenei and Iranian President Hassan Rouhani are urging voters to go to the polls. “Participation in the election is a stamp of support for the ways of the regime and will thus lead to security,” the supreme leader recently announced. “I beg you not to be passive,” Rouhani said last week.
Many Iranians are questioning the purpose of voting, “particularly when voting doesn’t really result in policy changes that help ordinary Iranians,” said Sanam Vakil, deputy head of Chatham House’s MENA Program. “It’s really just about legitimizing the Islamic Republic as part of a public relations stunt rather than having a policy impact.”
“And maybe by not voting, they are making as much of a point as if they were voting,” she said. “It’s a protest in itself.”
Severe economic pain
Much has changed since Iran’s last parliamentary elections in 2016, which were considered a substantial victory for Iran’s reformists and came amid a swell of popular optimism for a more open country and economy.
The 2015 Iranian nuclear deal, or JCPOA (Join Comprehensive Plan of Action) had just been signed by multiple countries including the U.S. and European Union states, and Iran’s economic growth for the year was projected to be as high as 6%. Many of Iran’s voters looked to reformist candidates’ promises of a more open Iran and better economic prospects stemming from the nuclear deal, which lifted international sanctions.
Those elections saw a reported 62% turnout, just above the prior historical average for parliamentary elections of 60.5%. Turnout on Friday is expected to be significantly lower than in several past elections, suggesting a loss of faith in the Islamic Republic’s electoral system and severe pessimism under a buckling economy.
The Donald Trump administration’s withdrawal from the nuclear deal in 2018, sweeping re-imposition of sanctions and continued corruption and mismanagement within the country have wrought severe economic pain on the Islamic Republic, particularly impacting ordinary Iranians, regional experts say.
An Iranian man holds-up a placard as he attends in front of a University to mark the memory of the victims of the Ukraine Boeing 737 passenger plane in Tehrans business district on January 11, 2020.
Morteza Nikoubazl | NurPhoto | Getty Images)
The IMF estimated a staggering 9.5% contraction for Iran’s economy in 2019, and unemployment and inflation are soaring. A poll conducted by Tehran University reportedly predicted a mere 25% turnout in the capital city, while others are expecting around 50% nationwide of the country’s roughly 60 million eligible voters.
The Iranians who spoke to CNBC also expressed their anger over the hundreds of civilians killed by security forces during protests in November and January. The November protests were triggered by a 300% hike in fuel prices, and the latter after Iranian forces admitted to unintentionally shooting down a passenger jet with 176 people on board — the majority Iranian citizens. The downing came amid a retaliatory attack on US troops in Iraq after the killing of top Iranian commander Qasem Soleimani on January 3.
Is Trump’s ‘maximum pressure’ policy to blame?
Regional analysts have long warned that a more hardline government was a major risk of the Trump administration’s “maximum pressure” policy on Iran.
“In response to max pressure, Tehran is looking to consolidate elites, with uber hardliners filling every major institution,” Behnam Ben Taleblu, senior fellow at the Foundation for Defense of Democracies, told CNBC. This is especially critical as Khamenei is now in his early 80s.
But he argued that Trump is not primarily to blame, noting that Iran’s clerical establishment was restricting reformist politics and cracking down on dissent long before the current U.S. administration. “It’s the Islamic Republic that’s been narrowing its political spectrum ever since the 1979 Islamic Revolution.”
Vakil sees the current political forecast as a clear consequence of maximum pressure. “It’s ironic,” she said, “because the Trump administration sought to alter the behavior of the Islamic Republic and instead it’s empowering that behavior.”
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