In 2008 the S&P fell half off its peak and nothing physical happened to the economy. Now we have two very physical things — supply and demand shocks. The strategy of no strategy means these two physical problems will continue until a vaccine is produced, i.e. likely not for a year or more.
On February 25th, I predicted a massive drop in the stock market due to the coronavirus. At that point it had already fallen 8% from its peak. Today, it’s 20% below its peak. I think it will fall 50% below peak.
That may be conservative. In the Great Recession, the S&P fell half from its peak and nothing physical happened to the economy. Now we have two very physical things — what economists call supply and demand shocks — happening. A growing share of the labor force is not going to work and a growing share of consumers are shunning retail outlets and all other manner of service establishments for fear of getting infected.
Let me give you my partial list of the businesses that I think will go under. I think restaurants will fail. I think coffee shops will fail. I think dry cleaners will fail. I think airlines will fail. I think cruise boat companies will fail. I think hotels will fail. I think department and boutique clothing and other retail stores will fail. I think travel agencies will fail. I think movie theaters will fail. I think universities and colleges will fail. I think theaters will fail. I think theme parks will fail. I think spas will fail. I think resorts will fail. I think convention centers will fail. I think malls will fail. I think gyms will fail. I think orchestras will fail. I think hair salons will fail. I think nail salons will fail. I think barber shops will fail. I think bars will fail. I think every business that’s not online and involves customers will fail.
What share will fail?
Ten percent is optimistic.
Let me justify my view. Containing the coronavirus requires two months at a minimum. Why two months? This is the time it’s taken China to bring new infections down to single digits. Even so, China has not lifted the lockdown of Hubei Province. Indeed, every city you enter in China is now requiring a two-week period of quarantine. China is enforcing this with technology and people. You enter into Shanghai and you’re asked where you are staying. Once you get there, the neighborhood officials, who have been electronically notified of your arrival, check on you daily to make sure you are staying inside.
What happens when China’s new infection rate goes to zero? Will it lift its restrictions? Hard to say. If I’m President Xi and have gone to such lengths to eliminate the problem, I don’t want to run the risk that someone has a four-week incubation period or has slipped across the border carrying the virus and all hell breaks out again. In short, it may be a long time before China returns to something close to normal. Even then, foreigners arriving in China will surely need to spend two weeks in confinement before being let loose on the streets.
We don’t know China’s end game. But we’re pretty sure it has one. The US has no end game. Yes, the president has finally gotten serious about bringing testing on line. But it can take two weeks for infected people to show symptoms. Indeed, 1% will first show symptoms after two weeks. Suppose Joe Blow contracts the virus today. Say ten days later he starts feeling symptoms but he waits another five days to get tested. Then it takes two days to get results at which point he self quarantines or heads to the hospital. Now he’s had 17 days to infect a motherload of people either directly or indirectly. Maybe Joe works in a nursing home. We’ve seen the damage one person with coronavirus can do to a nursing home. The Life Care Center in Kirkland, Washington had 120 residents. In recent weeks, 26 have died. Another 24 are definitely infected. And many of the Center’s staff have symptoms, but, as of two days ago, have yet to be tested.
Okay, back to Joe. He gets tested on day 15. But on day 14 he infects Jane Doe who also takes 15 days before going into quarantine, but infects Jack, Jill, and Sandy on day 14. You see where I’m going. Our voluntary (we or our docs decide) testing system does nothing to keep the coronavirus infection from rolling along for months if not years.
Here’s a policy that would actually save lives and the economy. Quarantine the entire country for two weeks. Italy is doing this, although no one knows its duration. At the end of two weeks, test everyone — all 327.2 million people plus any visitors and continue testing everyone once a week for months. Anyone who tested positive would, of course, be quarantined or hospitalized. We would also reopen the borders, but test everyone coming into the country. This is a policy that would a) stop the spread of the infection in its tracks and b) limit the renewed spread of the infection once the quarantine is lifted.
Could we produce hundreds of millions of tests? Yes. During WWII, we built cargo ships in four days. Can we put everyone under quarantine for two weeks? Yes, the president has this authority. Can we require weekly testing. Again, the answer is yes.
Will our president do this? Clearly not. According to him, the “foreign” virus is going to disappear on its own and in short order. President Trump is, himself, possibly infected by way of an aide to Brazil’s president. But, thus far, he has chosen not to get tested. In the meantime, he may have infected or be infecting his top aides as well as his family. And members of his administration may have infected or be infecting much, if not most of Congress. Beyond jeopardizing so many people, the president is setting the worst possible example.
The strategy of no strategy means the two physical problems hammering the economy will continue until a vaccine is produced, i.e. likely not for a year or more. How many retail and service establishments can survive that long without customers, while retaining their employees? Not many. Hence, we can expect a massive wave of layoffs and bankruptcies starting next week.
There are two other reasons to expect a 50% from peak decline in the stock market. First, the market was perceived by many to be overpriced to begin with. Second, corporate America is dramatically over leveraged. To quote the Fed, “The ratio of debt to assets for all publicly traded non-financial companies has hit its highest level in two decades, and the leverage ratio among debt-heavy firms is near a historical high.” The higher the leverage ratio, the larger the percentage decline in stock values for a given percentage reduction in profits.
Moreover, over half of corporate debt is rated BBB compared to roughly 25% in 2008. This means that a large share of corporate America faces solvency risk. Here’s the BBB rating description: “A BBB rating reflects an opinion that the issuer has the current capacity to meet its debt obligations but faces more solvency risk.”
There’s more, but you get the picture. I hope I’m wrong, but I fear an even bigger drop in the market is coming.
I am a professor of economics at Boston University, a Fellow of the American Academy, a Research Associate of the NBER, and President of Economic Security Planning, Inc. — a company that markets personal financial planning tools at maxifi.com, maximizemysocialsecurity.com, analyzemydivorccesettlement.com, and economicsecurityplanning.com. Recent books: Get What’s Yours – The Secrets to Maxing Out Your Social Security Benefits (a NY Times Best Seller with Phil Moeller and Paul Solman), The Economic Consequences of the Vickers Commission, The Clash of Generations (with Scott Burns), Jimmy Stewart Is Dead, and Spend ‘Til the End. Follow me on twitter @kotlikoff, Circle me on Google , check out my website, kotlikoff.net, and ask me Social Security questions by clicking Ask Larry at the bottom of http://www.maximizemysocialsecurity.com.
Markets in Asia and the Middle East opened sharply lower on Monday as investors digested the relentless global spread of the coronavirus and turmoil in the oil markets. Shares in Saudi Aramco, the state oil giant, dropped 10 percent leading to a halt in trading on the Riyadh stock market.
Asian markets opened sharply lower on Monday as investors digested the relentless global spread of the coronavirus and turmoil in the oil markets.Tokyo was down 4.7 percent at midmorning on Monday, while Hong Kong was down 4.1 percent. Futures markets showed investors predicting sharp drops in Wall Street and Europe as well.
The coronavirus has unnerved investors as it spreads, clouding the prospects for global growth. Italy on Sunday put a broad swath of its industrial northern region under lockdown as the virus has spread, making it one of the biggest sources of confirmed infections outside China. France, Saudi Arabia, Iran and other countries also took further steps to stop the spread.
In the United States, the number of confirmed infections exceeded 500 cases. A top American expert said on Sunday that regional lockdowns could be necessary.A clash over oil between Russia and Saudi Arabia, two major producers, further unnerved investors. As the coronavirus hits demand for fuel, Saudi Arabia slashed its export oil prices over the weekend, starting an apparent price war aimed at Russia.
Lower oil prices could help consumers, but it could unsettle countries that depend on oil revenue to prop up their economies. In futures markets, the benchmark price for American and Europe oil supplies tumbled $10, or about one-quarter.Investors fled to the safety of the bond market, driving yields lower. In the market for U.S. Treasury bonds, yields broadly fell below the 1 percent level for both short term and long term holdings. The 10-year Treasury bond, which is closely watched, was yielding about 0.5 percent.
In other Asian markets, South Korea was down 3.6 percent. Shanghai was down 1.5 percent.
Italy reported a huge jump in deaths from the coronavirus on Sunday, a surge of more than 50 percent from the day before, as it ordered an unprecedented peacetime lockdown of its wealthiest region in a sweeping effort to fight the epidemic. The extraordinary measure restricted movement for a quarter of the country’s population.“We are facing an emergency, a national emergency,” Prime Minister Giuseppe Conte said in announcing the government decree in a news conference after 2 a.m.
The move is tantamount to sacrificing the Italian economy in the short term to save it from the ravages of the virus in the long term. The measures will turn stretches of Italy’s wealthy north — including the economic and cultural capital of Milan and landmark tourist destinations such as Venice — into quarantined red zones until at least April 3.
They will prevent the free movement of roughly 16 million people. Funerals and cultural events are banned. The decree requires that people keep a distance of at least one meter from one another at sporting events, bars, churches and supermarkets. The Italian outbreak — the worst outside Asia — has inflicted serious damage on one of Europe’s most fragile economies and prompted the closing of Italy’s schools. The country’s cases nearly tripled from about 2,500 infections on Wednesday to more than 7,375 on Sunday. Deaths rose to 366.
More and more countries have adopted or are considering stronger measures to try to keep infected people from entering and to contain outbreaks. More and more countries have adopted or are considering stronger measures to try to keep infected people from entering and to contain outbreaks.
On Sunday, Saudi Arabia cut off access to Shiite Muslim towns and villages in the east of the kingdom, cordoning off an area in Qatif Governorate where all 11 of the country’s confirmed coronavirus cases have been identified. And local Saudi media reported that the country would temporarily close down all educational institutions and block travel to and from a number of countries in the region. The kingdom had already suspended pilgrimages to the Muslim holy cities of Mecca and Medina.
In Iran, which has been hit the hardest in the Middle East, state media reported that all flights to Europe would be suspended indefinitely. The health minister in France, one of Europe’s bigger trouble spots, announced a ban on gatherings of more than 1,000 people. The U.S. has counted at least 539 cases across 34 states — Connecticut reported its first case and Washington announced another patient being treated for coronavirus had died on Sunday — and the District of Columbia, and logged 22 deaths. Washington State, New York, California, Maryland and Oregon have declared emergencies.
A growing number of schools are shutting down across the country, raising concerns about the closings will affect learning, burden families and upend communities. The U.S. Army suspended travel to and from Italy and South Korea, now the world’s third largest hot spot, until May 6, an order that affects 4,500 soldiers and family members. And the Finnish armed forces announced that troop exercises planned for March 9-19 with Norway would be scrapped.
On Sunday, the leading U.S. expert on infectious diseases, Dr. Anthony S. Fauci, said that it was possible that regional lockdowns could become necessary and recommended that those at greatest risk — the elderly and those with underlying health conditions — abstain from travel. Dr. Fauci, the director of the National Institute of Allergy and Infectious Diseases, said the Trump administration was prepared to “take whatever action is appropriate” to contain the outbreak, including travel restrictions in areas with a high number of cases.
“I don’t think it would be as draconian as ‘nobody in and nobody out,’” Dr. Fauci said on “Fox News Sunday.” “But there’ll be, if we continue to get cases like this, particularly at the community level, there will be what we call mitigation.”
Even as the rate of new infections appeared to taper in China, the number of cases around the world continued to rise on Sunday, with some of the biggest clusters emerging in Europe. Besides the sharp rise in Italy, Germany reported more than 930 cases; Switzerland’s total reached 281; and Britain’s health department said that three people with the virus had died and that the number of cases in the country had jumped to 273 by Sunday. The smallest E.U. nation, Malta, reported its first confirmed case on Saturday: a 12-year-old girl recently returned from a vacation in northern Italy. Her condition was described as good.
The Spanish authorities announced on Sunday that three more people diagnosed with coronavirus had died in Madrid, raising the number of coronavirus fatalities in the country to 13. There are now over 500 cases, the authorities said. Salvador Illa, Spain’s health minister, said at a news conference in Madrid that several cases in Spain were linked to people who recently traveled to Italy.
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Eleven people have now died in the United States after contracting the novel coronavirus. Ten of the U.S. deaths have been in Washington state and one has been in California, with the latest two fatalities confirmed on Wednesday.
At least 159 people have been diagnosed with the coronavirus—known as COVID-19—in the U.S. so far, according to a virus tracker from researchers at Johns Hopkins University. The infections are scattered across at least 16 U.S. states.
Pence said that all travel coming from Iran has been suspended and “even foreign nationals who visit either [China or Iran] are barred from coming into this country for 14 days.”
Pence also said that the Center for Medicaid and Medicare Services has issued new guidelines for nursing homes nationwide aiming to improve infectious disease control and ensure those operating these facilities are complying with federal standards. Many of the cases in Washington State have been linked with a nursing home.
At a press conference on Tuesday, Pence had said the U.S. is now “screening 100% of all travelers taking direct flights from all airports in Italy and South Korea” to the U.S and that Medicaid and Medicare would cover the cost for Americans who can’t afford COVID-19 testing. He added that new guidance would quickly be issued “to make it clear that, subject to a doctor’s orders, anyone can be tested.”
Federal officials noted that the American public should prepare for “more cases in the community” as the country improves its ability to track and diagnose the disease.
Outside Washington and New York, at least 14 other states have recorded confirmed COVID-19 cases. A number of these cases are Americans evacuated from the virus-stricken Diamond Princess cruise ship in Japan, where over 620 passengers and crew were diagnosed with the virus.
Globally, more than 94,000 cases of COVID-19 have been diagnosed or clinically confirmed as of March 4 and more than 3,200 people have died, according to Johns Hopkins University researchers. The vast majority of cases are in China, but diagnoses in the U.S. are expected to increase over the coming days and weeks, according to the CDC.
U.S. Citizens Document A Day In The Life On Lockdown In Wuhan
On early Wednesday morning, a U.S. plane evacuated around 240 Americans from Wuhan. Justin Steece and Priscilla Dickey were not on that plane with their families.
Here’s what to know about COVID-19 cases in the U.S.
California announced the state’s first COVID-19 death and State Gov. Gavin Newsom declared a state of emergency on Wednesday.
Local and federal health officials are now working to contact other cruise passengers as they “may also have been exposed,” according to Placer County health officials. Newsom said about 2,500 passengers traveled on the same voyage as the Placer Country victim.
As of Wednesday, 53 people had tested positive for COVID-19 in California. Of these, 24 were cases related to repatriation flights and 29 cases were not related to these flights; 12 were travel-related. 10 more involved person-to-person spread, four involved community transmission and three were “currently under investigation.”
Officials in Washington State confirmed a tenth coronavirus death on Wednesday and the state currently has 39 COVID-19 cases.
Nine of the deaths are in King County, and an additional death is in Snohomish County. The most recently reported deaths in King County include a woman in her eighties who was never hospitalized and died at her family home, and a man in his 50s who was hospitalized at Harborview Medical Center. Both of them died on Feb. 26 and were residents of Life Care Center in Kirkland, a long-term residential facility where more than 50 people have reported symptoms of possible COVID-19 infection.
On Tuesday, Acting U.S. Department of Homeland Security Secretary Chad Wolf said that he had ordered the facility to close “out of an abundance of caution” and “directed those employees to telework, if possible, in order to reduce the threat of community spread of the coronavirus.”
The center said in a statement Wednesday that there are several confirmed COVID-19 cases connected to the facility. It added that current residents and associates continue to be monitored closely” and that it is following the infection control recommendations from the CDC. The center had previously said all visits from family and volunteers are suspended for the time being, and new residents are currently not being admitted to the center.
King County announced an additional seven new COVID-19 cases on Tuesday. Thirty-one cases in the state, including those who died, are in King County. At least another nine are in Snohomish County, according to Washington State’s Department of Health. About 230 people at risk of having been exposed to the coronavirus are under medical supervision.
King County signed an emergency declaration on Sunday allowing it to take extra steps to respond to the COVID-19 outbreak. “Among the first actions: purchasing a motel and setting up modular housing units on publicly-owned parking lots and other available land,” the county said in a statement.
Health officials say the first patient who succumbed to the virus had no known history, travel or contact with a known COVID-19 case, suggesting he was infected by human-to-human transmission (often referred to as community transmission).
The results of a study published by Trevor Bedford, a computational biologist at Fred Hutchinson Cancer Research Center in Seattle, suggests that the true number of infections in the state is “a few hundred.”
The study “strongly suggests that there has been cryptic transmission in Washington State for the past six weeks,” Bedford tweeted.
Washington Governor Jay Inslee declared a state of emergency on Saturday in response to the new cases, and directed state agencies to use “all resources necessary to prepare for and respond to the outbreak.”
The first case of COVID-19 in the U.S. appeared in Washington on Jan. 21. A 35-year-old man presented himself to an urgent care clinic in Snohomish County, Wash., after four days of cough and fever, according to the New England Journal of Medicine, which reported that he had recently been visiting family in Wuhan.
The man was released from a Washington hospital on Feb. 4, according to the Associated Press.
Cruise ship evacuees
On Feb. 17, the U.S. State Department evacuated more than 300 American citizens from a quarantined cruise ship in Japan. The Diamond Princess has the largest outbreak of the novel coronavirus outside China, with at least 621 confirmed cases so far.
During the evacuation process, American officials learned that 14 of the Americans being repatriated were infected with COVID-19, according to a joint statement from the U.S. State Department and U.S. Department of Health and Human Services.
After consulting with HHS, officials with the State Department decided to allow the 14 individuals, “who were in isolation, separated from other passengers, and continued to be asymptomatic, to remain on the aircraft to complete the evacuation process,” the statement said.
CDC spokesperson Richard Quartarone told TIME hospitalized patients are at facilities in Sacramento and San Antonio, Texas, or at the Nebraska Medical Center.
Evacuees who were not hospitalized were held in quarantine for 14 days after departing planes at Travis Air Force Base in Sacramento, Calif. and Joint Base San Antonio-Fort Sam Houston in San Antonio, Texas, officials said.
Most, if not all, of these evacuees have since been released from federal quarantine.
More than 100 American citizens who had been on the Diamond Princess remained in Japan, including in hospitals, the CDC said on Feb. 18. The CDC specified that these citizens will only be allowed to fly back to the U.S. if they test negative for and don’t show any symptoms of the virus during the 14-day period.
“If an individual from this cruise arrives in the United States before the 14-day period ends, they will still be subject to a mandatory quarantine until they have completed the 14-day period with no symptoms or positive coronavirus test results,” the CDC said.
The CDC also highlighted concerns with the quarantine process on board the ship, saying that it may have slowed the spread of the disease but that it “may not have been sufficient to prevent transmission among individuals on the ship.”
On Thursday, New York Gov. Andrew M. Cuomo confirmed 11 additional cases of COVID-19, bringing the total in the state to 22. Of the new cases, eight are in Westchester, two are in New York City and one is in Nassau County. “We are trying to contain as much as possible the spread of each case we find – but we expect more cases,” Cuomo said.
Thursday’s cases in New York City include a man in his 40s and a woman in her 80s; neither had traveled to areas with known outbreaks or are connected to other individuals already diagnosed with the disease, according to New York City Mayor Bill de Blasio.
On Wednesday afternoon, Cuomo confirmed five new cases, all in a single family from New Rochelle: a wife and husband in their 40s and three of their children. The entire family is under self-quarantine, Cuomo said.
On Wednesday morning, Cuomo had confirmed an additional four cases of coronavirus. All four are tied to the state’s second case of COVID-19, announced Tuesday — a man in his 50s who lives in Westchester County and works in Manhattan. Those four cases included his wife, two of his children and a neighbor who drove him to the hospital, Cuomo said.
The female child attends SAR Academy and High School in the Bronx and the male child attends Yeshiva University in Manhattan and has not been on campus since Feb. 27, according de Blasio. The children and their mother remain isolated at their home in Westchester, de Blasio said.
Cuomo noted on Tuesday that the man in his fifties had not traveled to regions with increasing COVID-19 cases, but had recently been to Miami. However he noted “that is not a place we have known there is any cluster of coronavirus.”
On Sunday, Cuomo confirmed New York’s first case of the coronavirus. He said on Twitter that a woman in her late 30s contracted the virus while traveling in Iran. She has mild respiratory symptoms but is not in serious condition, and is currently isolated in her home.
Cuomo said there is “no reason for anxiety” as the “general risk remains low in New York.” Still, residents rushed to purchase masks and hand sanitizers at pharmacies, which saw long lines out the door, according to the New York Times. Many said they were out of stock.
Doctors in Nebraska have treated 13 COVID-19 patients — all of whom were on the Diamond Princess cruise ship in Japan, according to the New York Times.
Eleven involve evacuees who were infected overseas before arriving at the San Antonio Lackland Air Force Base for quarantine. The only case identified outside of the site is a man in his 70s who lives in the Houston area. He recently returned from travel abroad and is currently isolated in the hospital, according to Texas Health and Human Services.
The City of San Antonio Metropolitan Health District and the CDC announced Feb. 13 that the first person testing positive for COVID-19 in Texas was one of the Americans evacuated from Wuhan and transported to the military base on Feb. 7, after leaving Wuhan the previous day.
On the morning of Feb. 11, the patient exhibited signs of a fever, Jennifer McQuiston, a CDC division deputy director, said. The person was transported to a hospital that morning, where samples were gathered and sent to the CDC overnight. Officials received the positive diagnosis the following day.
“[That patient is] receiving excellent medical care,” McQuiston said at a Feb. 13 press conference. “They were, of course, not happy to learn of their diagnosis last night, and they do have loved ones in the United States that they are in contact with by phone, and we wish this individual well.”
Dr. Anita Kurian, assistant director at the San Antonio Metropolitan Health District, also said at the press conference that “the risk for us at this time to the community here is still considered low.”
Illinois officials said it has four “presumed positive” cases on Tuesday. The third and fourth cases are a married man and woman in their seventies.
The first case in Illinois was a woman in her 60s who had returned to the U.S. from Wuhan on Jan. 13, health officials said at a press briefing on Jan. 30. Her husband then contracted the virus, becoming the first confirmed case of person-to-person transfer of the virus in the U.S.
The Illinois Department of Public Health announced Feb. 12 that it became the first state in the U.S. to begin in-state testing for the virus.
Oregon has confirmed three “presumptive positive” cases of COVID-19 in the state. One of those cases was confirmed by the CDC on Wednesday.
State officials confirmed a third case on Tuesday: an adult Umatilla County resident who is hospitalized in Walla Walla, Wash. Initial reports suggest that the resident recently went to a youth basketball game at a middle school. Athena-Weston School District officials closed the gym in question and would “conduct a deep cleaning out of an abundance of caution,” health officials said in a statement.
The state’s first and second COVID-19 cases are adults in Washington County who live together. Neither person has “ a history of travel to a country where the virus was circulating, nor is believed to have had a close contact with another confirmed case,” health officials said in a statement. “As such, public health officials are considering it a likely community-transmitted case, meaning that the origin of the infection is unknown.”
The CDC confirmed two cases of COVID-19 in Florida, the Florida Department of Health said on Monday. Officials said on Tuesday that a third person in the state had tested positive; she is the sister of a person already confirmed to have the virus.
The agency had said in a previous statement on Sunday that the first patient is an adult resident of Manatee County who has not traveled to countries identified for restricted travel by the CDC; the second patient is an adult Hillsborough County resident who had traveled to Italy. Both individuals would continue to “remain isolated until cleared by public health officials,” the Florida Department of Health said.
Georgia Gov. Brian Kemp confirmed the state’s first two cases of COVID-19 on Monday evening.
Both individuals are residents of Fulton County who live in the same household; one recently returned from Italy and both are isolated at home with mild symptoms, according to a statement from the governor’s office.
“We knew that Georgia would likely have confirmed cases of COVID-19, and we planned for it. The immediate risk of COVID-19 to the general public, however, remains low at this time,” said Dr. Kathleen E. Toomey, Commissioner of the Georgia Department of Public Health.
Rhode Island announced its first COVID-19 “presumptive positive” case on Sunday: a person in their 40s who had traveled to Italy in mid-February.
Dr. Nicole Alexander-Scott, Director of the Rhode Island Department of Health, said in a statement that the agency has been “preparing for weeks” and “fully anticipated having a first case of COVID-19.”
“We are not seeing widespread community transmission in Rhode Island, and the general level of risk for Rhode Islanders is still low,” Alexander-Scott said.
The agency announced a second COVID-19 “presumptive positive case” later the same day: a teenager who is “at home with mild symptoms.” She had been on the “same trip to Europe in mid-February as the male in his 40s,” according to the Rhode Island Department of Health.
“All 38 of the people who went on this trip will be self-monitoring for symptoms at home for 14 days with public health supervision, the department said in a statement. “They have been instructed to not go to school or work and to remain at home for these 14 days.”
Arizona confirmed on Tuesday its second “presumed positive” case of COVID-19, in a man in his twenties.
“This individual is a known contact of a presumed positive case outside of Arizona who had traveled to an area with community spread of COVID-19,” the Arizona Department of Health Services news release.
The first case of COVID-19 was confirmed in Arizona by the CDC on Jan. 26. The person had also recently returned to the U.S. after visiting Wuhan. The Arizona Department of Health Services said in a public statement that the person is “a member of the Arizona State University community who does not live in university housing,” and added that they were not severely ill but would be kept in isolation.
The infected man was subsequently released from isolation 26 days after testing positive for COVID-19, according to the Associated Press.
The state’s first case was announced Monday in a hospital employee who had recently traveled to Italy. Health officials later learned this person broke quarantine to attend a social event on Feb. 28 and said they would contact attendees who “had close contact with the person.”
New Hampshire announced its second “presumed positive” case of COVID-19 on Tuesday. State officials said the person, an adult male from Grafton County, had close contact with the first case and is currently isolated at home.
At this time, there is no evidence of more widespread community transmission in New Hampshire,” said state Epidemiologist Dr. Benjamin Chan in a statement after the first case was announced.
On Wednesday, New Jersey announced its first “presumptive positive case” of COVID-19 — a man in his 30s who has been hospitalized in Bergen County.
Health officials maintained that “most New Jersey residents” are still at low-risk.
On Monday, state health officials announced a presumptive case: a woman who had recently traveled to Italy.
On Feb. 1, the CDC announced that a man in his 20s who lives in Boston was diagnosed with COVID-19; he had recently traveled to Wuhan.
The Massachusetts Department of Public Health said the man sought medical care soon after his return to Boston. He has since been in isolation, and those who came in contact with him have been identified and are being monitored for symptoms, the agency said in a public statement.
“We are grateful that this young man is recovering and sought medical attention immediately,” said Monica Bharel, Massachusetts Public Health Commissioner, in the statement. “Massachusetts has been preparing for a possible case of this new coronavirus, and we were fortunate that astute clinicians took appropriate action quickly. Again, the risk to the public from the 2019 novel coronavirus remains low in Massachusetts.”
The Wisconsin Department of Health Services and the CDC announced the first case of COVID-19 in the state on Feb. 5. The person was only identified as “an adult with a history of travel to Beijing, China prior to becoming ill and was exposed to known cases while in China.”
Wisconsin health officials said in a public statement that the person is isolated at home, and is doing well.
North Carolina announced its first “presumed positive” case of COVID-19 on Tuesday. According to state officials, the person traveled to Washington state and was exposed at a long-term care facility where there is currently a COVID-19 outbreak.
Topline: British airline Flybe, which is the leading regional U.K carrier, collapsed after it succumbed to its financial woes and weakened demand because of the Covid-19 outbreak.
Flybe’s collapse marks the first airline casualty since the start of the Covid-19 outbreak and puts 2,400 jobs at risk, while it is expected to hamper hit businesses and transport links around its regional British hubs.
Passengers have been advised not to go to the airport as flights will not be operating. Flybe said in a statement: “All flights have been grounded and the UK business has ceased trading with immediate effect.”
But its collapse will deal a blow to the British government’s plans to increase transport links between U.K. regions.
Big number: 8 million. That’s how many passengers the airline carries a year.
Key background: Flybe narrowly escaped collapse in January, after being bought by Cyrus Capital, Virgin Atlantic and Stobart last year. Boris Johnson’s government agreed a rescue plan with Flybe’s owner weeks ago, to enable it to repay its $130 million (£100 million) debt, while its owners agreed to pour $38 million (£30 million) into the struggling airline. At the time, Johnson told the BBC: “Be in no doubt that we see the importance of Flybe in delivering connectivity across the whole United Kingdom.” On Thursday, the government said that Flybe’s problems predated the impact of coronavirus.
Chief critics: Pilots’ union BALPA said on Thursday it was “disgusted” at the “betrayal and broken promises” from the government.
General Secretary Brian Strutton said in a statement: “Six weeks ago, when the ownership consortium lost confidence the Government promised a rescue package, apparently at that time recognising the value of Flybe to the regional economy of the UK. Throughout, pilots, cabin crew and ground staff have done their jobs brilliantly, while behind the scenes the owners and, sadly, Government connived to walk away. Flybe staff will feel disgusted at this betrayal and these broken promises.”
News peg: Measures to contain the spread of Covid-19 worldwide—large scale lockdowns, travel restrictions and event cancellations—have put massive strain on the airline industry, which has seen a sharp drop in demand. Major U.S., European and Asian carriers have scrapped flights to hot spots to save costs and to contain the spread of the potentially deadly virus, while airlines including Cathay Pacific and Virgin Atlantic asked staff to take unpaid leave. Airline industry body IATA predicts that the crisis could cost global airlines $30 billion, but with the pneumonia-like virus spreading around the world the total cost could be far higher.
I am a breaking news reporter for Forbes in London, covering Europe and the U.S. Previously I was a news reporter for HuffPost UK, the Press Association and a night reporter at the Guardian. I studied Social Anthropology at the London School of Economics, where I was a writer and editor for one of the university’s global affairs magazines, the London Globalist. That led me to Goldsmiths, University of London, where I completed my M.A. in Journalism. Got a story? Get in touch at firstname.lastname@example.org, or follow me on Twitter @bissieness. I look forward to hearing from you.
Europe’s biggest regional carrier fell into administration after ministers rejected a request for a £100m state loan. Europe’s biggest regional carrier fell into administration after ministers rejected a request for a £100m state loan following seven weeks of talks, with shareholders bogged down in an industry-wide crisis caused by the disease and unwilling to help either. Read more about Flybe’s collapse: https://www.telegraph.co.uk/business/… Get the latest headlines: https://www.telegraph.co.uk/ Telegraph.co.uk and YouTube.com/TelegraphTV are websites of The Telegraph, the UK’s best-selling quality daily newspaper providing news and analysis on UK and world events, business, sport, lifestyle and culture.
As the coronavirus outbreak intensifies in France, the world’s No.1 tourist destination, there would have to be thousands of travelers out there worried about pending trips to the country. Worried about travel fullstop.
“France is now one of the main homes to the new virus in Europe, along with Italy and Germany,” declared current affairs magazine Le Point on Tuesday. Since then the situation has worsened, with all 13 French regions now hit by COVID-19. In four days, from Friday February 28, infections grew over fivefold from 38 to 212 reported cases.
“France prepares for a long combat” reads a Le Point headline today, following the country’s fourth death. “With the rate of deaths doubling in three days, France is preparing for a new intensification of the epidemic. Just a week ago, the country had only 12 cases, mostly related to patients who passed through China. But with the emergence of outbreaks outside of China, the epidemic has since experienced a sudden acceleration in France.”
Coronavirus In The World’s Top Tourist Destination
Remembering, France was again the world’s leading destination in 2019, according to the UN’s World Tourism Organisation, with 86.9 million visitors. So the implications for travelers and tourism are enormous. Here are a few vital points to be aware of if you are landing in France any day now, or just planning a trip:
1. What risk is there of being infected with the virus in France?
The French public health agency, Santé Publique, says France is now in “stage two” of the epidemic, on a scale of three. All 13 French regions (excluding overseas territories), are now affected by the virus. Six have less than ten cases.
The disease epicentre is the northern L’Oise department, about 90 km (55 miles) north of Paris, where at least 64 people are contaminated. 108 schools are closed as a result. In Greater Paris there are 34 confirmed cases. Another problem area statistics show is the Auvergne-Rhône-Alpes, with 37 cases.
“152 of the cases are part of the human to human transmission chain, 47 have returned from overseas areas affected by the virus, and 21 have been contaminated by a means not yet identified,” said Jérôme Salomon, head of the French public health service Tuesday.
2. What Health Measures Has France Put In Place To Curb The Virus Spread?
Measures include an airport screening program (called “specific reception service”) at Paris Charles de Gaulle for travelers arriving from China, Hong-Kong and Macao. The service is staffed by Health Ministry medical and paramedical professionals as well civil security staff.
“The entire French health system is ready to deal with the disease,” the government assures. Part of that readiness is the setting up of 70 new emergency care facilities nationwide (Samu) to handle possible outbreaks of the coronavirus. The aim is for all French departments “to have at least one hospital center capable of welcoming the sick and taking care of them from start to finish,” said Prime Minister Edouard Philippe.
3. Will Museums, The Eiffel Tower etc. Be Open?
The Louvre is currently closed indefinitely as workers exercise a right to stop work because of health dangers. Check back on its website ahead of a visit to see if its doors have reopened. “Preventive doctors” will then be on site to help tourists at the world’s most popular art gallery the Louvre administration says. (“Protect the star of the museum” the following tweet reads.)
As to other cultural institutions, the French Ministry of Culture is currently meeting with them to plan measures to be taken if the epidemic worsens. Meantime, many other major concerts, sporting and cultural events are being cancelled after a French ban on gatherings of more than 5000 people “in confined spaces”. The Eiffel Tower does not count among them Paris mayor Anne Hidalgo said yesterday, so for now it stays open to tourists. As does Disneyland Paris. Check the links on my other story to see events currently being affected, from book fairs to tourism salons.
4. Will Public Transport Be Closed?
“Are there plans to shut down public transport if the situation worsens?” a journalist asked the mayor during a recent press conference. Her answer: “A completely legitimate question … this type of decision can only be taken under the authority of the prefect of police.” For now, there is no such intention,
5. Will EU Borders Be Open? French, German and Italian officials have ruled out closing borders. Viruses do not recognize them they say. So for now you will be able to travel freely in Europe.
Numbers To Dial for Health Information: France has set up a lot of public information on the government website. Little of it is available in English, but it should be. For round-the-clock info about COVID-19 call the toll-free number: 0 800 130 000. “This platform is not empowered to provide medical advice,” the government warns. For any serious health concerns dial 15.
I have three decades of experience as a journalist, foreign correspondent and travel writer-photographer. Working for print, digital and radio outlets on four continents, I am also a veteran hotel industry reporter and author of travel guides and cultural histories to Australia, France, Italy, Spain, Switzerland and Borneo. Very often on the road between my Paris and Australian bases, I write for Forbes with a globetrotters perspective and newsy edge on travel, culture, hotels, art and architecture. My passion is capturing the distinctive people, places and events I encounter along the way, both in words and pictures. I hold a degree in Professional Writing from Canberra University, an MA in European Journalism from the Université Robert Schuman Strasbourg, and am a member of the Society of American Travel Writers. A love for my wild home-island of Tasmania fuels my commitment to sustainable travel and conservation.