The Latest: Bank of England head says virus impact temporary

BEIJING (AP) — The Latest on the virus outbreak (all times local):

6 p.m.

Outgoing Bank of England Governor Mark Carney has warned that the economic impact of the new virus “could prove large but will ultimately be temporary.”

Addressing lawmakers in Parliament, Carney said the central bank will take “all necessary steps" to help businesses and households manage the economic shock from the outbreak. A number of forecasters have slashed their projections for global growth this year as a result of the virus.

Carney said the bank is “monitoring the situation closely” and that he is close contact with Andrew Bailey, who will succeed him as governor on March 16.

Carney is to join central bankers and finance ministers from the Group of Seven industrial nations in a conference call Tuesday. Expectations that the G-7 will announce a coordinated package of stimulus measures have helped stock markets rebound strongly this week.

European stock markets surged Tuesday following a bumper session on Wall Street, where the Dow Jones Industrial Average rose 5.1%.

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5 p.m.

The Middle East’s largest airline, Emirates, says it has reduced or grounded flights due to the new virus and as a result has asked employees to take paid and even unpaid leave for up to a month at a time. Emirates operates out of Dubai, the world’s busiest airport for international transit.

Chief Operating Officer Adel Al-Redha said Emirates has adjusted its schedules and capacity to meet the change in passenger demand. The airline has canceled flights to all cities in China except Beijing. The virus began in China and has infected tens of thousands there. Emirates also has suspended all flights to Iran, where the virus has infected 1,500 people and killed dozens.

“While we have seen some slowdown in certain markets there has been high demand in other areas,” Al-Redha said. “We have been tested before and Emirates will come out stronger.”

The world’s largest airline trade association, IATA, says Mideast carriers have already lost around $100 million in revenue due to a drop in ticket sales because of the virus.

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4:20 p.m.

South Korea is reporting 851 new cases, its largest daily increase in new infections, largely in and around the southeastern city of Daegu, where many cases are clustered around a local church. The country's death toll rose to 28. In all, 5,186 in South Korea have tested positive for the virus.

Drive-through virus testing centers have began operating in Seoul, with workers dressed head-to-toe in white protective suits leaning into cars with mouth swabs, a move meant to limit contact with possible carriers of the illness. Troops were also dispatched across the city to spray streets with disinfectants.

President Moon Jae-in called the outbreak “a grave situation” and said his government will push to inject more than 30 trillion won ($25 billion) to fund clinics, aid for small businesses and other measures related to the virus. It requires parliamentary approval.

“The entire country has entered a war against an infectious disease,” he said.