(Bloomberg) — One of the last air links between two key Asian financial hubs has been severed, with Hong Kong banning Singapore Airlines’ budget carrier Scoot from flying to the city for two weeks after passengers tested positive for Covid on arrival.

Deaths in Hong Kong’s worst ever Covid-19 outbreak are forecast to spiral, with experts predicting a wave of fatalities among under-inoculated and vaccine hesitant elderly population.

U.K. Prime Minister Boris Johnson said England will scrap Covid-19 rules, including the requirement to self-isolate after a positive test, while his government authorized another vaccine booster shot for the most vulnerable people. Japan may ease restrictions.

Key Developments:

• Virus Tracker: Cases pass 425 million; deaths approach 5.9 million
• Vaccine Tracker: More than 10.6 billion doses administered
• Senior JPMorgan banker becomes latest to leave Hong Kong
• Hong Kong seniors who refused vaccines are ‘ticking time bomb’
• What we know about omicron and subvariant BA.2: QuickTake

South Korea Approves Extra Budget Amid Largest Coronavirus Wave (8:11 a.m. HK)

South Korea’s parliament passed a larger-than-planned first extra budget of the year as the government tries to shore up parts of the economy worst hit by the country’s biggest coronavirus outbreak of the pandemic.

The 16.9 trillion won ($14.2 billion) budget, approved by parliament late Monday, is aimed at compensating losses to businesses that have been laboring under some of the strictest conditions since Covid-19 erupted, as virus cases rose from thousands a day to over a 100,000. 

Hong Kong Bans KLM Flights From Amsterdam, Scoot From Singapore (8:18 a.m. HK)

One of the last air links between two key Asian financial hubs has been severed, with Hong Kong banning Singapore Airlines’ budget carrier Scoot from flying to the city for two weeks after passengers tested positive for Covid on arrival.

KLM Royal Dutch Airlines services from Amsterdam are also prohibited from Feb. 21 to March 6, Hong Kong’s Department of Health said in a statement Monday evening. The ban was imposed after a passenger on a Feb. 18 flight tested positive on arrival in Hong Kong, while two others failed to comply with travel requirements. 

Hong Kong Seniors Who Refused Vaccines Are ‘Ticking Time Bomb’ (8:05 a.m. HK)

Deaths in Hong Kong’s worst ever Covid-19 outbreak are forecast to spiral, with experts predicting a wave of fatalities among under-inoculated and vaccine hesitant elderly population.

Only 43% of seniors who are 80 or over have received even one dose, according to government data. While that’s up from 22% in early January, it still isn’t enough to protect the segment of the population most at risk, said Karen Grepin, an associate professor in the school of public health at the University of Hong Kong. Elderly patients have already made up the majority of the 311 deaths in this outbreak so far.

Japan May Ease Restrictions: NHK (6:55 a.m. HK)

Japan is considering further easing Covid restrictions for those who are vaccinated, NHK reported.

Last week Japanese Prime Minister Fumio Kishida rolled back some of the developed world’s most stringent virus border measures saying he’ll end a ban on new entry by foreigners and ease quarantine rules.

Covid to Push Hong Kong Further in Red (4:15 p.m. NY)

Hong Kong’s government is expected on Wednesday to unveil a budget that’s headed further into the red as the surging virus threatens to engulf the economy.

To cushion the economy, Financial Secretary Paul Chan is expected to keep the fiscal taps open, driving the government’s budget to its fourth deficit in a row in the coming fiscal year, the longest period of shortfalls in almost a decade.

Trial to Test Reduced Booster Shots (4:00 p.m. NY)

A trial in Australia, Indonesia and Mongolia will evaluate the impact of giving people reduced Covid-19 booster shots — as opposed to full doses — as part of an effort to increase access to vaccines.

The Coalition for Epidemic Preparedness Innovations will provide as much as $8.7 million to support the fractional-dose study, led by the Murdoch Children’s Research Institute in Australia, according to a statement. As many as 3,300 adults will receive either a full or reduced dose of the Pfizer Inc.-BioNTech SE, Moderna Inc. or AstraZeneca Plc booster.

Trudeau Extends State of Emergency (1:00 p.m NY)

Trudeau said his government will retain emergency powers for at least a few more days because of ongoing threats, even after police cleared all blockades across the country.

Trudeau said at a press conference that it’s still too early to lift measures banning public assembly in downtown Ottawa and at border crossings, because of concern demonstrators opposing vaccine mandates are prepared to continue protests.

The emergency legislation is expected to be approved by lawmakers later Monday with the backing of Trudeau’s governing Liberal Party and the left-leaning New Democratic Party. Trudeau hinted he would call elections if he lost the vote.

Johnson Scraps Curbs, Ends Free Tests (11:42 a.m. NY)

Johnson confirmed coronavirus rules will end in England as he became the first major Western leader to scrap government restrictions relating to the pandemic.

From Thursday, people who have the virus will no longer be legally required to self-isolate, though they will still be advised to stay at home, Johnson said in the House of Commons on Monday. From April 1, the universal and free availability of coronavirus testing will end, he said.

Johnson’s announcement of a “Living with Covid” plan comes against a backdrop of declining daily infections, hospitalizations and deaths relating to the disease, though critics say he is moving too fast. 

U.K. Offers Extra Booster to Most Vulnerable (10 a.m. NY)

Britain’s most vulnerable people will be offered another Covid-19 booster shot this spring to bolster their protection as the country prepares to abandon all pandemic restrictions. 

The shot will be offered to adults age 75 and older, care-home residents, and those over 12 who are immuno-suppressed and at much higher risk of severe Covid, U.K. Health Secretary Sajid Javid said. The booster is advised for around six months after a previous dose and is seen as a bridge before another — potentially broader — booster campaign this fall. 

Worst-Hit EU Country to Lift Curbs (8:57 a.m. NY)

Bulgaria, the EU country with the highest Covid death rate per 100,000 people, will gradually lift restrictions from Feb. 24 for access to public events and group activities as hospitalizations decline, the country’s chief health inspector said. Requirement of proof of vaccination or past Covid illness will be lifted for customers visiting bars and clubs. 

The Balkan country has the bloc’s lowest vaccination rate, at just 29%, driven by institutional distrust and doubts about the safety of the shots. While hospitalizations are decreasing, weekly death numbers are still rising.

France Steps Back from J&J Vaccine (8:50 a.m. NY)

France’s health authority recommends holding off on using Johnson & Johnson’s one-shot Covid-19 vaccine, except for individuals who are allergic to mRNA vaccines. The recommendation followed a study showing a potentially heightened risk of myocardial infarction during the two weeks following administration of the J&J vaccine.

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