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California Orders 40 Million Residents To Stay Home; Concern Mounts Over Medical Supply Shortage; Coronavirus Cases Low In South America. Aired 5:30-6a ET

Aired March 20, 2020 - 05:30   ET




GOV. GAVIN NEWSOM (D-CA): -- the last number of weeks to protect themselves, to protect their families, and to protect the broader community.


CHRISTINE ROMANS, CNN ANCHOR: Essential services will remain open, including gas stations, pharmacies, grocery stores, farmers' markets, food banks, convenience stores, and delivery restaurants.

Officials project about 56 percent of California's population, more than 25 million people, will be infected over an eight-week period.

The governor has asked President Trump to send a U.S. Navy hospital ship to give the state medical options and relieve pressure on a health care system already under stress.

LAURA JARRETT, CNN ANCHOR: Nationwide, there are over 13,000 coronavirus cases in the U.S. and 195 deaths. This time last week, which now seems like a long time ago, there were 1,665 cases and only 41 deaths.

Many hospitals already in dire need of medical supplies. There have been pleas from health care workers running out of surgical masks and there is fear there will not be enough ventilators -- we mean breathing machines -- as these cases continue to mount. President Trump says it's up to the states to obtain them.


DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Governors are supposed to be doing a lot of this work, and they are doing a lot of this work. The federal government is not supposed to be out there buying vast amounts of items and then shipping. You know, we're not a shipping clerk.


ROMANS: Vice President Mike Pence, leading the federal coronavirus task force, says the vice -- the private sector will meet the need for medical equipment. But, New York Gov. Andrew Cuomo says that's just not enough.


GOV. ANDREW CUOMO (D-NY): It would literally take the federal government to say to manufacturers stop what you are making or start making these machines. They're fairly technical as I understand it, but the supply chain issues are real.


ROMANS: New York City says it's two to three weeks away from running out of medical supplies. Mayor Bill de Blasio says the city needs millions more protective masks and 15,000 (audio gap) ventilators.

JARRETT: The FDA told to make hurdles to getting anti (audio gap) and he points to an anti-malaria drug that he falsely says has been fast- tracked to treat COVID-19.


TRUMP: We're going to be able to make that drug available almost immediately. Normally, the FDA would take a long time to approve something like that and it's -- it was approved very, very quickly.


JARRETT: So he's just wrong about that. The drug is FDA-approved but not to treat coronavirus nor has any other drug been.

The head of the FDA is tempering expectations as is the government's top infectious disease doctor.


DR. ANTHONY FAUCI, DIRECTOR, NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES, NATIONAL INSTITUTES OF HEALTH: Today, there are no proven safe and effective therapies for the coronavirus. That doesn't mean that we're not going to do everything we can to make things that have even a hint of efficacy more readily available. But there's no magic drug out there right now.


ROMANS: There has been one promising step toward a (audio gap). IBM's Summit has run thousands of simulations and identified 77 drug compounds that might effectively stop the virus.

JARRETT: Meanwhile, Senate Republicans are rolling out their $1 trillion economic stimulus plan. It's not in final form yet but it currently calls for direct payments to Americans under a certain income threshold; $200 billion in loans to airlines and distressed industry sectors; and $300 billion in forgivable bridge loans for small businesses. The GOP rollout sets the stage for negotiations with Democrats to reach a bipartisan deal. Senate Majority Leader Mitch McConnell exclusively tells CNN joint talks with Democrats were bypassed until now to speed up the process.


SEN. MITCH MCCONNELL (R-KY): The Republicans are in the majority in the Senate. We wanted to put forward our proposal. We feel like we have an obligation to do that as a majority. And the Democrats, of course, need to be given an opportunity to react to it.

This is the quickest way to get it done. Trust me, this is the quickest way to get it done.


JARRETT: Democratic leaders are already saying not so fast. Overnight, House Speaker Nancy Pelosi said on first reading, the Republican plan is not at all pro-worker and instead puts corporations way ahead of workers.

ROMANS: All right, big layoffs are here. The government reported weekly jobless claims last week surged to the highest since September 2017. And, Goldman Sachs reports 2.25 million Americans filed initial claims probably this week. That would be the most on record.

Numbers in California already up 33 percent. Ninety-six percent of small business owners already feeling the strain. More than half say they will not be able to continue operating more than three months like this.

Wall Street closed up narrowly after a volatile day for investors -- the first time since March sixth the Dow closed within 1,000 points of where it opened. Taking a look at futures right now, they are bouncing here. Still, a lot of concern going forward.

Two regional air carriers are ending operations soon as demand slows. Compass Air and Trans States Airlines operate flights on behalf of American and Delta. That's 2,700 employees there looking for work and six million passengers who aren't flying.


Some relief for homeowners. Bank of America will let customers defer mortgage payments as part of additional support it's providing to its customers.

But habits are changing for everyone.

Domino's is looking to hire up to 10,000 workers as people shift their eating habits to take-out or delivery.

Netflix and YouTube will reduce streaming quality in Europe for at least the next month to keep the Internet from breaking. No changes yet in the U.S. to streaming quality.

Internet and wireless networks are coming under immense pressure to deliver reliable connectivity. Millions have shifted their day-to-day operations out of the workplace and into their homes.

JARRETT: The coronavirus has decimated one New Jersey family. Seventy-three-year-old Grace Fusco and her sons Carmine and Vincent, and her daughter Rita have all died. Two other relatives are in critical condition and a third is in stable condition.

Nineteen other family members have been tested and they're worried the carnage is not over.


ROSEANN PARADISO FODERA, COUSIN OF FAMILY MEMBERS: Our biggest concern for the family right now is there are 19 family members that were tested last Saturday that do not have results.

ELIZABETH FUSCO, LOST FOUR FAMILY MEMBERS TO CORONAVIRUS: To know that two of those women I sat with on Tuesday and nourished and promised everything's going to be OK to is gone. They were the root of our lives. That was my mother and my oldest sister. They were everything. Like, it's surreal.

My two oldest brothers -- like, they were the core of our family since my dad's been gone. They've held us together like no other.

And it's like the second we start to grieve about one, the phone rings and there is another person gone -- taken from us forever.


JARRETT: "The New York Times" reports a family dinner earlier this month may have spread the infections in that family.

ROMANS: Oh, just a tragic story. We certainly wish them --

JARRETT: It's heartbreaking.

ROMANS: -- some healing in their grief there.

All right. Demand is there, supply is not. Hospitals and doctors nationwide pleading for more medical equipment. How quickly can it happen?




DR. MEGAN RANNEY, EMERGENCY PHYSICIAN, LIFESPAN BROWN UNIVERSITY: Docs across the country are starting to get sick, and docs and nurses are worried about what this means for us and for our patients.


JARRETT: That E.R. doctor voicing the sentiments of physicians and nurses nationwide. We hear it all the time now that the country faces a major shortage of medical equipment. And they're worried more will be needed as the number of coronavirus cases continues to climb.

The president says the states should find a way but that's easier said than done.


Joining us live this morning, Tony Uphoff, the president and CEO of, a leader in manufacturing and product sourcing. What this company does, it helps buyers find suppliers and puts those two things together. Good morning.

So you're seeing huge demand for things like PPE, hazmat suits, industrial alcohol, disinfectants, surgical masks, and respirators. Why are we having difficulty getting these supplies?

TONY UPHOFF, PRESIDENT AND CEO, THOMASNET.COM: Well, just remarkable surge and demand and it started about eight weeks ago. And we could see that surge initially coming out of China and Asia, but then rapidly, we could see it across North America. And what you have here, unfortunately, is a bit of a perfect storm.

So, the World Health Organization suggests we need 89 million surgical masks a month to effectively deal with this. That would require about a 40 percent lift in current manufacturing supply.

Bear in mind that a good 70 percent of the current supply that's been disrupted comes out of China and Taiwan. So you have this unbelievably challenging situation where the epicenter of where this outbreak started is the leading manufacturer, particularly of surgical masks and a lot of that personal protection equipment.

JARRETT: And, Thomas -- I mean, Tony, rather, how hard is it to make these supplies? I mean, we're seeing such an increase in demand. It's not as if they're super-complicated, I would think, but they're having a really hard time.

UPHOFF: I think on things like surgical masks and gloves, you're absolutely correct. Respirators, a bit more complicated --


UPHOFF: -- containment systems, hazmat suits.

But sticking to the surgical masks and the gloves, they're not difficult but there are a couple of things that we have to bear in mind. We have to start to divert the raw materials -- the cloth materials, the rubber materials -- to companies -- garment manufacturers that could pivot and start to produce these types of things.

We also need to make sure that the regulatory agencies can loosen up and let this go. So as an example, any material that's used in a medical environment --


UPHOFF: -- needs OSHA and other compliance. So we need to make sure that we can speed some of that through and get those companies the raw materials they need.

ROMANS: You know, the vice president said that the private sector was going to step up and come to the rescue here. Is that practical?

UPHOFF: I can't speak to whether it's practical. I will tell you it's happening.

And so, you can clearly see that manufacturers and suppliers are simply taking action right now. We can see it all across our platform. We've literally seen over a quarter-million companies sourcing on the platform just this week only in these product categories alone. So there's a tremendous amount of activity happening.

You also can see that advance manufacturing today -- companies can pivot what they do in that factory pretty quickly.


UPHOFF: Now, this is going to take a little while but companies can do that quickly.

The other thing I would suggest here, too, is slowly but surely we're seeing China come back online as a manufacturer.


And so I think there is some hope that we can get this moving. But, boy, if you look at the numbers, we've got to move quickly --


UPHOFF: -- on this and the private sector is going to need to move very quickly to support it.

ROMANS: Tony, let me ask you real quickly. You know, Peter Navarro, who advises the president on trade policy in the White House, says that this crisis, sadly, is a vindication of the president's sort of America First policies and if more of this stuff was made in the United States this wouldn't be a problem.

Do you agree?

UPHOFF: We've seen reshoring happening, what, for the last seven to eight years in the United States. This will accelerate it and I will say it will reshape global manufacturing for years to come, without question.


JARRETT: All right, Tony Uphoff. Thanks so much for getting up with us this morning. It's really important and --

UPHOFF: Thank you.

JARRETT: -- we appreciate what you're doing. Thanks.

All right.

The U.S. State Department now telling Americans not to travel abroad at all because of the virus. The travel advisory now at its highest rating. It shouldn't be hard to follow, though, that edict. Countries are already closing their borders around the world.

Meantime, across Europe, thousands of medical students are being fast- tracked into early service to help fight the spread of coronavirus. In Italy, this year's medical student graduates will begin working as fully-qualified doctors immediately, months ahead of schedule.

A grim milestone for Italy at the same time. They now have more deaths from coronavirus than China, where the pandemic began.

ROMANS: All right.

Amid all of this, an international oil dispute has gas prices crashing below $2.00 a gallon in some states. President Trump says this is good for U.S. consumers but it's bad for the oil industry. He plans to get involved in the dispute he says, quote, "at the right time."

John Defterios joins us live from Abu Dhabi. You have to explain for us. This is petropolitics on a -- on a global scale. What is happening?

JOHN DEFTERIOS, CNN CORRESPONDENT: Just the words, Christine, it's extraordinary from Donald Trump saying he's thinking about intervention. You saw prices rise 24 percent, the biggest ever in a one-day trade, and we're up another six-seven percent today. So it's 30 percent in two days.

But this is fraught with challenges for the president because he's been very close to Saudi Arabia, particularly that crown prince. He supported him during the Khashoggi murder, for example, selling military equipment and supporting him on Iran.

But this plan that Saudi Arabia has had, along with Russia, to stabilize the market for the last three years after the 2016 crash particularly helped U.S. producers. The U.S. is number one, still, at 13 million barrels a day.

So there was a big pivot after the argument between Saudi Arabia and Russia at the OPEC plus meeting in Vienna and they suggested well, if Russia is not going to cooperate, we're the low-cost producer of the world. Why are we making so much space for the United States?

So they changed strategy, opened up the taps Christine, in a big, big way -- even cut the prices to the preferred customers. And that's why we are where we are today. Now, this is very delicate for the president going forward because he's very transactional. He thinks I've supported Saudi Arabia in the past. They've had that security pact with Iran. When am I going to get the payback for that?

So far, he spoke to the crown prince on March ninth. Thirteen U.S. senators sent a letter to the Crown Prince Mohammed bin Salman asking him to change his strategy. So far, no blinking on the Saudi side.

And I think they're going to stay with this strategy until they can get probably a million barrels a day off the shell producers in 2020 and perhaps another million in 2021. But they're doing it during the coronavirus, so it's a delicate position for Saudi to hold during this period of uncertainty and economic pain in America, as well.

ROMANS: Yes, what drama. All right, John Defterios in Abu Dhabi. Thank you so much for unpacking all that for us.

We'll be right back.



JARRETT: The number of reported coronavirus cases in South America remains relatively low, but that may be the result of Latin American leaders failing to make the virus a top priority.

CNN's Matt Rivers is in Mexico City.


MATT RIVERS, CNN INTERNATIONAL CORRESPONDENT: Although the virus arrived in Latin America a bit later than other parts of the world, it is very much being felt now. Hundreds of cases across many different countries.

Let's start in Brazil which has the most -- well over 500 at this point and counting. And we're hearing from the Brazilian president's son, Eduardo, over who he thinks is to blame for all of this. He wrote on Twitter "It's China's fault. The blame for the coronavirus pandemic has a name and surname: the Chinese Communist Party."

That prompted China's embassy in Brazil to respond "We would advise you not to be in such a hurry to be the U.S.' spokesperson in Brazil. You'll fall flat on your face." A clear reference there to President Trump continuing to call this virus the "Chinese Virus."

But no matter what you call it, it's clear that Brazil's president, Jair Bolsonaro, isn't taking this threat seriously. Here he is over the weekend shaking hands, mingling with crowds at a political rally. He says he doesn't want to shut his country down like others have because it might hurt the economy.

And here in Mexico, we're seeing something pretty similar. Here's Mexico's President Andres Manuel Lopez Obrador outside of an airport over the weekend literally, at one point, kissing babies, mingling in crowds at press conferences this week. He says he doesn't want to shut the country down. And he literally held up amulets -- yes, amulets that he says, jokingly or not, will help protect him from this virus.

Remarkable stances there from the leaders of massive countries. But not everyone in Latin America isn't taking this threat seriously.

In Honduras, on Thursday, a temporary lift to a shelter-in-place order that saw people allowed to go out and buy supplies under the watch of the military. Argentina and Peru have similar restrictive measures.

But what's clear is that in Brazil and Mexico, the number-one and number-two most populous countries in Latin America, there are leaders that are running those places that do not take this threat seriously -- Christine, Laura.



ROMANS: All right, Matt Rivers in Mexico City. Thanks, Matt.

Britain's Queen Elizabeth calling on citizens to change their normal routines for the greater good. The 93-year-old British monarch says "At times such as these, I am reminded that our nation's history has been forged by people and communities coming together to work as one. Now, more than any time in our recent past, we all have a vitally important part to play."

JARRETT: We all know people are finding creative ways to deliver the message to stay home and keep your social distance to help stop coronavirus.

Well, a group of ICU nurses in Texas posting this picture holding signs that read "We stay here for you, please stay home for us."

And an Australian pilot channeling an Etch-A-Sketch there with his message to the world, spelling out "Stay home" on flight radar.

ROMANS: A message of solidarity at Brazil's most famous tourist attraction. The statue of Christ the Redeemer high above Rio de Janeiro, lit with the flags of nations affected by coronavirus. The Catholic Archdiocese organizing a special mass that also featured the hashtag #praytogether projected on the 120-foot statue.

JARRETT: Even with all North Carolina schools closed, those yellow school buses are being put to good use.


UNIDENTIFIED FEMALE: If you have children in the houses -- I know you all hear me. Some of you are looking out the window. Oh, yes, she's right here. Don't spectate; participate.

(END VIDEO CLIP) JARRETT: Guilford County drivers are helping deliver meals to the most vulnerable students, including kids in homeless shelters and other temporary housing. It's about 2,000 students in Guilford County alone. For some, school provides the only meal they get in a day.

ROMANS: A Texas family wasn't about to let -- to let their trip to Disney World -- canceled because of coronavirus -- get them down. Cady Hearn and her mom and her children recreated the entire vacation at home. Their staycation was complete with a visit to Cinderella's castle, character meet and greets, and a lot more off-brand Disney magic.


"Have Yourself A Merry Little Christmas" playing.


JARRETT: A Tennessee woman, Brenda Sparks, helping to brighten spirits in this time of coronavirus, putting up her Christmas lights a little early this year and singing "Merry Little Quarantine" to the tune of "Merry Little Christmas."

Brenda's idea of trying to spread some cheer during this outbreak appears to have caught on. People across the country are stringing up lights and putting up holiday decorations.

ROMANS: A self-quarantine with no pro sports got you down? Get ready for the return of ESPN8 "THE OCHO" on Sunday. For the fourth time ever, ESPN2 will broadcast 24 hours of weird seldom-seen sports like cherry pit spitting, stupid robot fighting, and headies, which is header ping pong.

"THE OCHO" is inspired by the 2004 Ben Stiller-Vince Vaughn movie "Dodgeball." Remember that classic? So, of course, the event will include a dodgeball match.


ED OLIVER BOHLD: Singing "You Are My Sunshine."


JARRETT: All right, you're going to need to grab the Kleenex for this one. After initially being told no, a Boston man gets his chance to serenade the love of his life through her window at a nursing home. Ed Oliver Bohld's longtime girlfriend Mary Lou has been living at the Compass on the Bay assisted living facility for five years now. He visits her daily.

Yesterday, under the umbrella, he sang "You Are My Sunshine" before tearfully saying goodbye.


BOHLD: I will see you soon, all right, doll? This will be over eventually. I love you very much and I miss you.


JARRETT: It's so hard, you know, trying to just do his daily routine there.


JARRETT: But at least he gets to see her every day through her window.

ROMANS: Hang in there, everybody, and call -- facetime, call, and --

JARRETT: Call grandma.

ROMANS: -- serenade who you need to serenade.

Thanks for joining us. I'm Christine Romans.

JARRETT: And I'm Laura Jarrett. "NEW DAY" starts right now.


NEWSOM: We direct a statewide order for people to stay at home. We are confident that the people in California will abide by it.

TRUMP: We said stop, you can't work. We were paying a lot of money to stop things.

UNIDENTIFIED MALE: Senate Republicans unveiled a $1 trillion proposal.

MAYOR BILL DE BLASIO (D) NEW YORK CITY: The federal government has essentially two weeks to get us major resupply or the people in New York City are going to be in much greater danger.

CUOMO: We are battling two things: a virus and fear and panic, and I'm as afraid of the fear and the panic as I am of the virus.


ANNOUNCER: This is NEW DAY with Alisyn Camerota and John Berman.

JOHN BERMAN, CNN ANCHOR: Welcome to our viewers in the United States and all around the world. This is NEW DAY. It's Friday, March 20th. It's 6:00 here in New York.

And the breaking news this morning, the entire state California is on lockdown. Overnight, Gov. Gavin Newsom enacted the most sweeping measures we have seen.