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Responsibility And Blame: U.S. Leadership Amid Crisis; U.S. Futures, Asian Markets Rise While Oil Drops; NHK: Japan's PM Planning For State Of Emergency; U.S. Coronavirus Cases at 330,000 Plus and President Trump Sees Light at the End of Tunnel; Trumps Pushes Hydroxychloroquine Drug for Virus Treatment; Prime Minister Boris Johnson Hospitalized; Queen Elizabeth II Addresses the U.K.; Australia's Fight Against Coronavirus; Decline in Deaths in New York While Infections in Louisiana and New Jersey Rise; Positive News Out of Spain and Italy. Aired 2-3a ET

Aired April 6, 2020 - 02:00   ET




MICHAEL HOLMES, CNN HOST: Hello and welcome to our viewers here in the United States and all around the world. I'm Michael Holmes. Now, top medical experts are warning the U.S., brace yourself.

This week's battle against coronavirus is going to be brutal. Most of the country remains under stay-at-home orders with the number of case rising well past 330,000. However, despite the seriousness of the situation, an upbeat U.S. President and Vice President are suggesting that the storm will soon pass.


DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We see light at the end of the tunnel. Things are happening. Things are happening. We are starting to see light at the end of the tunnel and hopefully in the not too distant future we will be very proud of the job we all did.

MIKE PENCE, VICE PRESIDENT OF THE UNITED STATES: We are beginning to see the glimmers climbers of progress. The experts will tell me not to jump to any conclusions, and I am not, but like your president, I'm an optimistic person and I am hopeful. And the truth is, we are starting to see cases and most importantly losses, and hospitalizations begin to stabilize.


HOLMES: Now, the tone from the doctors at the front of the fight is much more somber. One even predicting this week will go down as one of the darkest in U.S. history.


JEROME ADAMS, U.S. SURGEON GENERAL: This is going to be the hardest and the saddest week of most Americans lives, quite frankly. This is going to be our Pearl Harbor moment, our 9/11 moment, only it's not going to be localized. It's going to be happening all over the country.

And I want America to understand that. But I also want them to understand that the public, along with the state and the federal government, have the power to change the trajectory of this epidemic.

ANTHONY FAUCI, DIRECTOR, NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES: We are struggling to get it under control. And that's the issue that's at hand right now. Just buckle down, continue to mitigate, continue to do the physical separation because we got to get through this week that is coming up because it is going to be a bad week.


HOLMES: And you can see just there how the past few weeks the American death toll has skyrocketed. More than 9,600 fatalities so far and that is the confirmed numbers. Of course, testing is not widespread or as widespread as many would hope. These are the ones we know about.

The United States now home to hundreds of thousands more cases than any other country in the world. Now, the U.S. president claims 1.6 million Americans have been tested and received their results and he is doubling down, also, on an unproven treatment for the virus. Our Jeremy Diamond questioned him about that on Sunday.


JEREMY DIAMOND, CNN WHTIE HOUSE CORRESPONDENT: President Trump on Sunday stepping into the White House briefing room, talking about the grim reality that Americans are going to face over the coming weeks as it relates to the death toll for coronavirus.

But, the president at the same time, still saying that he sees the light at the end of the tunnel. So, it was, once again, a story of mixed messages from the president.

But one other thing that the president was focused on Sunday was once again, touting the use of this drug hydroxychloroquine, which so far there is no conclusive scientific evidence showing that this drug is effective in the treatment of coronavirus. I press the president on why he continues to promote this drug.


DIAMOND: Why not just let the science speak for itself? Why are you promoting this drug?

TRUMP: I'm not. I'm not. I'm just saying very simply -- I'm not at all. I'm not. Look, you know what I'm trying to do. I'm trying to save lives.

DIAMOND: Well, you come out here everyday, right, sir, talking about the benefits of hydroxychloroquine.

TRUMP: I want them to try it and it may work and it may not work, but if it doesn't work, it's nothing lost by doing it, nothing, because we know long term -- what I want, I want to save lives and I don't want it to be in a lab for the next year and a half as people are dying all over the place.

DIAMON: It's already out --


DIAMOND: The president of course has been promoting that drug, appearing in the White House briefing room or the Rose Garden day after day to talk about the benefits of this drug, hydroxychloroquine.

Again, there are clinical trials underway and some doctors are able to prescribe it off label in emergency cases, but there is not yet a body of scientific evidence backing up the use of this drug.

And that is why, when Dr. Anthony Fauci, the head of the National Institute of Allergy and Infectious Diseases, when he stepped up to the podium, I tried asking him about that. The president though, would not let him.


DIAMOND: And would you also weigh in on this issue of hydroxychloroquine? What do you think about this and what is the --

TRUMP: How many times we answered that question?


DIAMOND: -- the doctor.

TRUMP: Fifteen times. You don't have to ask the question.

DIAMOND: He's your medical expert, correct?

TRUMP: He answered that question 15 times.



DIAMOND: Now, Fauci of course has been on the record talking about this drug and saying that there is not yet conclusive proof that this drug is effective in the treatment of coronavirus, but I think it's especially notable when you see the president there, acknowledging earlier in the day, that he is not a doctor, as he doles out this advice about this hydroxychloroquine drug.

And then when you actually see a doctor at the podium, the top government expert on infectious diseases, it's notable that the president won't let him speak. Jeremy Diamond, CNN, the White House.


HOLMES: Well, the British Prime Minister Boris Johnson is in hospital. His office says he was admitted last night as a precautionary measure because he still has persistent coronavirus symptoms after 10 days after announcing he had been actually infected.

Nic Robertson is in London for us. Unexpected development given that he had been recovering for 10 days. The prime minister being sent to the hospital, you know, it's not normal.

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: It isn't normal it all. We are told he is going in for routine tests. It's not clear what those tests are at this time, but what is clear is that anyone who has had the virus symptoms, as the prime minister has had them now for over 10 days, is at a risk of developing worst symptoms of the disease.

And it is not clear what his current symptoms are, but what we have been able to see, through his video tweets over and pictures of him over the past week or so, is somebody who is still leading the country, still partaking in video conferences, still leading the cabinet sessions.

And he is, we are told, still leading the country through the coronavirus response. But he does appear in the past couple of days, to appear perhaps a little pale or perhaps a little weaker. We don't have an assessment on that. We are not being given a blow by blow of his medical condition.

However, a precautionary step of taking him to the hospital where he spent the night, and his situation, his current condition this morning, not yet been briefed about. But what we do know is that the coronavirus cabinet meeting and experts meeting this morning will be chaired by Dominic Raab, the foreign secretary.

He is also the first secretary of state if you are designated person to step up and take over while the prime minister isn't able. It does appear that at the moment, the prime minister does require some more rest, Michael.

HOLMES: And Nic, asking about the queen, her majesty, addressing the nation, a pretty rare event that really does sort of show the gravity of the situation.

ROBERTSON: Very rare. I mean, the Queen has only done this four times previously so, this was exceptional. It would have been done in conjunction with conversations with the prime minister's office. One of the big messages here across the country, across government officials has been for people to continue with social distancing, not to leave their houses unless they have to.

So the Queen really began her message with a tone of support and gratitude and thanks for the health service workers who are at the front line of this. But then, also, thanking people for staying at home.


ELIZABETH II, QUEEN OF THE UNITED KINGDOM: I also want to thank those of you who are staying at home, thereby, helping protect the vulnerable and sparing many families the pain already felt by those who have lost loved ones. Together, we are tackling this disease. And I want to reassure you that if we remain united and resolute, then we will overcome it.


ROBERTSON: And she also said that, you know, how we respond now would be able to look back in the future, and hopefully, look back feeling that we have done the right thing, that we will have stepped up and measured up as other generations have in the past.

She invoked her own memories of the wartime as a child at the time, broadcasting for the first time in 1940, to all of the children that had been evacuated during the war.

And the sort of last part of her message, where she invoked a song that is known to many people across the world, particularly of that World War II era, Dame Vera Lynn's song, "We'll Meet Again."

And she said, you know, this is tough going through all the separation, but we will meet again, and I think that struck a deep chord for people in the country here.

HOLMES: It certainly means a lot for Britain. I appreciate that, Nic. Thank you. Nic Robinson there outside Number 10, where the prime minister is not at the moment.

Al right, I am joined now by Dr. Sanjaya Senanayake, an infectious disease specialist with the Australian National University Medical School. Good to see you, doctor. I'm wondering the situation down there.

There was early criticism of the U.S. government's speed of action on COVID-19, memorable images in Australia of crowded beaches and so on. What are the concerns there about spread and whether the horse bolted in some ways before significant action was taken?


SANJAYA SENANAYAKE, ASSOCIATE PROFESSOR, AUSTRALIAN NATIONAL UNIVERSITY MEDICAL SCHOOL: Hi Michael. In Australia, thankfully, we are looking at our epidemic curve and it seems to be flattening and starting to reduce. So, it looks like the social measures that have been put in place are starting to pay off.

And we've got about just over 5,000 cases in Australia. So, a country of about 25 million people and just under 40 deaths associated with that. The health care system seems to be coping with it. So, at the moment, we're a bit more optimistic than pessimistic, but obviously, we are still cautious.

HOLMES: Testing is an issue in many countries. Is it the case in Australia when it comes to identifying cases even asymptomatic ones or has testing been widespread inappropriate?

SENANAYAKE: So, Michael, testing in Australia is actually being very good. So, we probably have about -- doing about 10,000 tests per million people which I think is about the highest in the world. South Korea, who is also excellent, is about 6,000 tests per million people.

The United States, a couple of weeks ago, was about 313 tests per million people from what I had read. As you know, testing is really important because if you identify people who've got the infection, one, you can look after them, and two, you can stop them from infecting other people.

And now that we have taken out the issue of overseas travelers bringing it into Australia because of our travel restrictions, we can now focus on looking for those asymptomatic people and people responsible, for community transmission.

HOLMES: You know, when I think about it, I mean, the U.S. is being warned to get ready in the next week for another 9/11 or Pearl Harbor. Why is it that that sort of worry is not happening in other places like Australia?

SENANAYAKE: I think that really getting up to those travel restrictions including travel restrictions, social distancing, doing them in an early part of the curve, and making sure you are doing intensive testing early on has really, really helped Australia and a country like New Zealand, which is about 5 million people, who only have about 800 cases, and one death.

HOLMES: Which is incredibly hard, I mean, I've got my own family members in Sydney. They are hunkering down. Is there a sense that Australians -- I mean, there were the images of people, you know, on Bondi Beach and then down in St. Kilda Beach in Melbourne and so on and so forth, but do you get a sense that Australians in general are taking isolation seriously?

SENANAYAKE: Look, generally, they are. And as you mentioned, those images of hundreds of people on Bondi Beach were the impetus for those, I guess, deep next steps of restrictions that we -- and I think it has largely worked.

There are some people who still flock the social distancing. Jacinda Ardern, the New Zealand prime minister, in her words, charitably described them as idiots.

HOLMES: Yes. Yes. And yes, you're right. I'm following the Aussie media of course, and it was those images on Bondi Beach that just really had the government say enough and put their foot down.

You point out that Australia has universal health care, of course. It has an excellent health care system and facilities. Any concern as there is in other countries of potential for being overwhelmed or with the caseload at the moment looking pretty good?

SENANAYAKE: Right now, we are happy, but we are doing all this because we know if we do not get on top of it, and the curve goes like this, we will get to a tipping point. We will be overwhelmed.

HOLMES: And then quickly, too, I mean, one thing that does cause controversy down there, you know, a major source of the infections there are in Australia, and indeed the deaths I think, was one cruise ship. How was that handled?

SENANAYAKE: Yes. I think they are all called princess, this was the Ruby Princess. And about almost 3,000 people were allowed to disembark in New South Wales. And, unfortunately, the Ruby Princess is accounted for about -- to serve 10 percent of the confirmed cases in Australia, and about 11 of the 30 odd deaths that we've had.

So, we've now know throughout the world that at the moment with COVID- 19 and cruise ships, they are the perfect mixing pot. So we have to be very careful.

HOLMES: Dr. Sanjaya Senanayake, thank you so much there with ANU, Australian National University. Appreciate it. Good news out of Australia. Great to hear.

All right, we'll take a short break. When we come back, good news on two fronts out of Spain as well, the country just got a boost in coronavirus testing and a slowdown in the rise of new cases.


We will get the latest from our reporter there, Al Goodman, when we come back, in Madrid.

Also, live report from Barbie Nadeau in Italy where there are hopeful signs of stabilization for one of the hardest hit countries in this pandemic. We will be right back.


HOLMES: Welcome back. New York of course, the epicenter of the pandemic in the United States, and on Sunday the state reported fewer coronavirus related deaths. Now, while encouraging, Governor Andrew Cuomo told CNN it's too soon to say that it is a trend.


ANDREW CUOMO, GOVERNOR OF NEW YORK CITY (via telephone): Every day, we are waiting for this "apex of the curve" and there is a theory that the apex is actually a plateau where you will hit a high number and then you will stay at about that high number for some period of time, and then start to drop on the other side.

But it's the first time that we have seen any drop at all. So, you know, in a place where we are just hoping and praying to see a light at the end of the tunnel, it was good news. We will know better tomorrow and the next day when we see what those results are.


[02:20:06] HOLMES: The situation of course remains dire. New York City, still desperately short of medical supplies -- the mayor says they have enough ventilators to last only until mid week.

And the virus is taking a toll on the New York City police as well. Get this, almost 20 percent of the force was out sick over the weekend, and it has lost its 11th officer from suspected coronavirus.

Now, other hotspots are emerging in the pandemic including New Jersey and Louisiana. New Jersey, second to New York in confirmed cases with more than 37,900 people have died. Now, that is more, the governor says, than the number of people the state lost in the 9/11 terror attacks. He spoke with CNN on Sunday.


PHIL MURPHY, GOVERNOR OF NEW JERSEY: We are in the fight. This is war. There is no question about it. We are doing everything we can to stay out ahead of it.

WOLF BLITZER, CNN HOST: How would you rate the responsiveness of the federal government because you've been pleading for ventilators and a lot of help?

MURPHY: Listen, I think they are doing what they can, given the hand we've all been dealt. I suspect all of us would have liked to gone into this tragedy and this challenge, this healthcare crisis witth a lot more weapons at our disposal.

So the communications are open. I think there is a real spirit of trying to find common ground and do everything they can, but we've been dealt a tough hand right now, as a country, and living that that right now in New Jersey.


HOLMES: Meanwhile, the number of cases in Louisiana has passed 13,000 and 500 deaths there. The governor warns the state could run out of ventilators by the end of this week.

The hard hit country of Spain has begun distributing its new batch of 1 million rapid coronavirus tests. Officials say they've been performing as many as 20,000 standard tests every day, but they need, and want, to ramp that up.

The tests are going first to hospitals and nursing homes. Globally, right now, only the United States reporting more confirmed cases than Spain. Journalist Al Goodman joins me now with the latest from Madrid. He has been there throughout all of this. So Al, we got new cases and deaths declining, but new ICU patients up somewhat. That speaks to the tricky nature of trying to control this thing.

AL GOODMAN, JOURNALIST: That's right Michael. In the most recent reporting period, 329 new patients went into the ICU. That was nearly three times as many as the day earlier and the highest absolute number in a week. So even though, as you say, the number of deaths and the number of new

cases, both in absolute numbers and in percentages, those are not coming up -- those are not going up as much as they have been. They are in single digit percentage increases.

This ICU problem, which is the most serious problem for Spain and so many other places, how do you have enough beds, how do have enough ventilators?

That is their biggest concern and that certainly is one reason that the government has extended the lockdown order for another two weeks to make an entire six weeks, almost to the end of April because you have the statistics, which are starting to look pretty good. And then, of course, you have the human reaction to this terrible virus, Michael.

HOLMES: Yes. Yes, that's an important point. Tell us a little bit about these calls for more E.U. help to southern countries. Tell us about that.

GOODMAN: Well, Prime Minister Pedro Sanchez, the socialist prime minister of Spain, has been making a call for what he calls a new Marshall plan for Europe. That Marshall plan of course is what bailed Europe out, helped rebuild Europe after World War II.

And he's ramped that up a bit. He has thrown down a gauntlet to the European Union, writing an opinion column for 10 leading newspapers, including "The Guardian" (inaudible) the leading newspapers in many of the European countries, basically saying that if the European Union fails to rise to this challenge, it will fail as a union.

He says Spain is so staunchly pro-European Union and other countries like Spain, he said, need to see a commitment from the whole bloc, the 27 member European Union. He says that the current plans that are out there in terms of financing to help get economic recovery after this is all over are just not enough.

He is calling for a European-wide debt program that would allow countries to buy into this and be able to get themselves out and forget about these strict deficit control targets, which will strangle countries.

They are remembering here particularly, Michael, what happened in the 2008 financial crisis. The government has said, various of his aides have said we do not want to repeat of that crisis in terms of how hard that hit the people less fortunate, Michael.

HOLMES: Yes, it certainly did. And those memories are fresh for them. The human cost, important. The economic cost, yet to be really fully realized. Al Goodman on the streets of Madrid. Appreciate it, Al. Thank you.

Let's turn our attention to Italy which on Sunday reported its lowest rate of coronavirus deaths in at least two weeks.

[02:25:02] Now, that of course gives a glimmer of hope for a country that has been struggling to consistently stabilize its number of new infections. Even though Italy has been on lockdown for almost a month now, it's overall death toll, near 16,000, and still the highest number in the world.

Here to discuss more is Barbie Nadeau who is with us from Rome. Barbie, let's talk about those numbers. Looking good so I guess the next step they're talking about, how to unlock the lockdown. What's the sense there?

BARBIE NADEAU, CNN CONTRIBUTOR: Well, you know, there is a lot of confusion and fear I think about unlocking the lockdown. Of course, people in affected areas are very nervous about sparking a new contagion.

People that are in areas that are not as infected are really ready to unlock the lockdown. But the government right now is looking at what phase two is going to be, you know. You can't just let people out of their homes and pretend like nothing happened.

It has to be a very calculated lockdown or unlocking of the lockdown. And when we are looking at factories maybe going back to work and things like that, there is talk of widespread testing before people go back into those sectors of the economy.

A lot of people are able to work from home. Schools are functioning, online classes are functioning, but there are a lot of people that are ready to get back to their jobs, Michael.

HOLMES: Yes, you know, you've made an interesting point there and let's explore it a little bit more. I mean, it's an odd question really, but, you know, are all people mentally ready for that.

A lot of people want to get back to work, of course, and need the money, but how nervous are others about, you know, the risk of another wave once people are out and about again?

NADEAU: You know, there is a real concern about that. You can see that, you know, a month into this, you see that in the grocery stores and things like that. People look nervous around other people. If someone coughs or even clears their throat, every body starts to move away from them.

And you sort of become accustomed to the lockdown mentality, and just the idea of everyone suddenly being able to go back out and just the idea of everybody suddenly a potentially re-sparking this contagion is something that is really hard to wrap your head around.

And it is something that the government is going to have to do a really good job introducing some part -- sort of normal life again. It's really hard to understand how that's going to work, Michael.

HOLMES: Yes, fascinating. (Inaudible) was talking to a psychologist yesterday who talked about the potential for PTSD with people at the end of all of this. Barbie Nadeau, great reporting as always. Good to see you my friend.

Okay, well, the Trump administration is under fire for downplaying the severity of the virus for weeks, even months when the whole world knew it was a problem. The fallout from those missteps and missed opportunities, we will discuss when we come back.

Also, U.S. Futures and oil, making big moves, but in opposite directions. How markets are reacting amid the pandemic as a new week kicks off and could a return to recent highs be in the cards?


TRUMP: Oil was doing great, oil and gas, and the energy industry was doing phenomenally well. It got hit like nobody has ever been hit before. Just about like no other industry has ever been hit before. There's never been anything like this.




ANTHONY FAUCI, DIRECTOR, NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES: How can you, on the one hand, have said yesterday that this is really going to be a bad week at the same time that we're talking about the light at the end of the tunnel? It seems to be inherently contradictory, but it really isn't. And it has to do with what we explained before about the lag.

And when you look at the indications that Dr. Birx and the President was talking about, where you see a flattening out of cases. And you don't see the realization of what that means until two weeks later. So right now, we're seeing, as we all said correctly, that this is probably going to be a really bad week. That is a reflection of what happened two and a half weeks ago.

So if we start seeing now a flattening or stabilization of cases, what you're hearing about potential light at the end of the tunnel doesn't take away from the fact that tomorrow the next day is going to look really bad.


MICHAEL HOLMES, CNN INTERNATIONAL ANCHOR: That was, of course, the United States leading expert on infectious disease trying to explain some of the mixed messaging coming from the Coronavirus Task Force. U.S. leaders have been repeatedly slammed for what some call their bungled response to the biggest global health crisis in living memory.

There has been a lack of testing, still is, shortages of critical equipment, still is, and the government slow to call on the public to take precautions, all while the virus loomed and then raged. President Trump's own remarks on the threat have dramatically evolved from early dismissals to eventual acceptance.


DONALD TRUMP, PRESIDENT OF THE UNITED STATES: By April, you know, in theory, when it gets a little warmer, it miraculously goes away.

The coronavirus, which is very well under control in our country.

We're going down, not up. We're going very substantially down.

It will go away, just stay calm. It will go away.

Challenging times are ahead for the next 30 days, and this is a very vital 30 days.

This will be probably the toughest week between this week and next week, and there'll be a lot of deaths, unfortunately.


HOLMES: And with me now is Gregory Treverton. He's a professor of international relations at the University of Southern California, and former chairman of the National Intelligence Council. And that's the important part of this introduction. Part of your job was basically, and correct me if I'm wrong, to help the U.S. government know how it is viewed by the rest of the world, analyze that.

Given how this crisis has been handled, what's your assessment of the impact on America's global reputation as a leader in times of crisis?

GREGORY TREVERTON, FORMER CHAIRMAN, NATIONAL INTELLIGENCE COUNCIL: Certainly, right. One of the big tasks of the National Intelligence Council, one of the hardest in some ways is to tell policymakers how the rest of the world thinks about them. how they think about the United States. You know, policy, people, all of us are likely to have wishful thoughts. And we Americans are particularly prone to the view that we're usually on the side of the angels and everybody else thinks we are. So often conveying how other people really do think about us, is a very hard task.

And in this case, I think, we're coming on a couple of decades in which we haven't looked especially competent either in the Middle East or at home, and then suffering this terrible crisis that didn't need to be nearly as bad as it was that left us looking like we were late and competent, I think that's really a pretty bad blow to the American reputation in the world.


HOLMES: And when you talk -- when you -- when you say, you know, it didn't need to be as bad as it was, I think a lot of people would agree with that. When the -- when the President continues to say, you know, things like, "I inherited a broken system. The shelves were bare when he's been in office nearly three and a half years," is that part of what you're saying, the blaming of others, the shifting responsibility? You know, the President, of course, gave himself a ten in handling of this. TREVERTON: Yes, absolutely. I mean, I think that, you know, certainly the Center for Disease Control and the Food and Drug Administration haven't behaved spectacularly and that surprise because we think of them as kind of a crown jewels of our government.

But having been in the government, I know that sort of middle-level officials aren't going to take risks if they don't have some sense of authorization from the top. Buy the books, that's what happened in this case. And so, you know, Mr. Trump, continue saying, there's no problem here, it's no big deal.

Mind you, by the middle of January, before there's a single case in Germany, the Germans already had test kits deployed and ready to go, we were still saying, oh, there's no problem, nothing, happening here. So I think that that pretending it didn't exist, delaying wishful thinking, that's a typical feature I think of politicians that did play a huge role in us so late, so, so late.

HOLMES: And again, to the point you're just making there, I mean, there has been reporting the Washington Post, CNN, and elsewhere, about the divisions in the administration between camps, you know, a camp that's worried about the health implications from the virus as it emerged, and then other camps which seem to prioritize the economy and even politics in an election year over health. What's your read on that in terms of efficiency?

TREVERTON: Well, that does seem like a fight. And you -- but it's a one that shouldn't have happened in my view. We should have known particularly after H1N1 in 2009. We should have known that if this thing happened in China, it was going to be here, and we had to be ready. And so that seems to me health needed much earlier than it did.

Now, finally, in the last couple of weeks, even Mr. Trump has made help the trump card, but it took two months too long. And that sort of intermural kind of chaos that characterizes this White House really did is going to wind up costing a lot of American lives.

HOLMES: Yes, I mean, it's hard to even hear that and, you know, and again, the Intelligence Community apparently did put out the red flags and the warnings in late December, early January. I'm wondering if you were in the White House now. What would you be advising the President on how to handle this in terms of, you know, the American people but also international allies?

TREVERTON: I think this is the point to reach out. I mean, it's pretty late in the game, but you know, if he convened world leaders, have they done something to the G7 other -- G7 other than just to pat themselves on the back and say that they're watching the situation, if there were some real leadership, if we really reached out to China -- as I said, the Chinese have not been terrific in this for sure, but it's time to reach out to them to say, we want to lead, we want to help, we want to contribute.

Instead, we're still in the sort of name-calling, criticizing China, somewhat fairly, but does not helpfully now. This is a time when, for humanity's sake and for our own, it seems to me we need to put great priority on this. And so having arguments about Iranian sanctions, and those issues, that seems to me to be a sideshow when stakes are so, so high.

HOLMES: Yes. Interestingly, the U.S. did have a cooperation program with the Chinese on infectious diseases based in Wuhan which was cut by the administration before this all happen. I wish we had more time. Gregory Treverton, I appreciate your expertise. You know how it works in Washington. Thank you.

TREVERTON: Thank you. Thank you. Take care.

HOLMES: All right, Wall Street looking to recover from yet another week of declines amid the coronavirus pandemic. U.S. stock futures point to a jump at the open for all the major indices. As you can see there, nearly four percent in the Dow. That increase has been driving Asian markets higher as well. Japan's Nikkei up over four percent on the day, the Seoul KOSPI doing a three and three-quarters percent.

Let's check oil. Both U.S. and Brent crude, while they're nearly flat now to slightly lower, as you can see there. Investors are reacting to the delay of an OPEC meeting originally set for Monday. John Defterios joins us now from Abu Dhabi. He knows all about such things. I guess while the coronavirus challenges is still enormous, you know, are investors seeing the leveling off of cases as something of a positive or the potential leveling off hasn't happened yet?


JOHN DEFTERIOS, CNN BUSINESS EMERGING MARKETS EDITOR: So, yes, that's a great way to putting it, Michael. I think they were looking at South Korea, Italy in particular, and New York, and trying to think what the economy is going to look like six to nine months down the road.

And it's U.S. stock futures which are setting the pace globally right now, even in the oil market which started down eight percent earlier, they cut the losses in half. And then as we saw stock futures go up, there was a recovery. We even saw the Russian sovereign fund indicating that Saudi Arabia and Russia very close to a deal. That would be a complete about-face compared to the language we saw Friday and Saturday.

There's three big players here, the U.S., Vladimir Putin in Russia, and the Crown Prince of Saudi Arabia. The two, Russia and Saudi Arabia, were trading barbs over who was to blame for the price war. And then we had Donald Trump come in on Saturday saying I never liked OPEC, in fact, I hate OPEC. It's a cartel or monopoly, and if they don't get a deal done, I may impose tariffs on imports of Russian and Saudi crude and the other OPEC players.

So there is an incentive to get a deal done. And the language is turning better. But we have another three days here, Michael, to see it play out and get all the ducks in a row.

HOLMES: Yes, I guess -- you know, so, Thursday it is. How tough is it going to be for, you know, all producers to get a deal then? DEFTERIOS: OK, so there's 23 players in this OPEC alliance. But the OPEC alliance has thrown a wild card, if you will, because the U.S. is not talking about being part of the process. They wanted the U.S., Canada, Brazil, players like Norway, even perhaps the U.K. to contribute cuts. We're looking at record cuts of 10 to 15 percent.

To put it on the backs of Russia and Saudi Raven, the other players I talked about is a very heavy burden. Can they get it done? I don't think at that sort of level. So what has to happen here in the next three days, Mike, is to get everybody lined up and saying, OK, what can you put on the table here?

And even if the U.S. can't offer it now, you could have states like Texas and North Dakota, even though you have anti-trust concerns in the United States say, here's our contribution going forward. That's how you can get a deal by Thursday.

HOLMES: All right, John Defterios is the one who knows about such things. Good to see you, my friend. Thanks for that. All right, we'll take a quick break. When we come back, Tokyo records its biggest single-day jump in coronavirus cases. So could a state of emergency be on the horizon? We'll be live in Japan's Capitol after the break.



HOLMES: Welcome back. Reports out of Japan say Prime Minister Shinzo Abe is planning to declare a state of emergency as soon as Tuesday over coronavirus, though it might not be nationwide. Until now, he said, Japan's outbreak didn't warrant such measures.

On Sunday though, Tokyo reported its biggest one day jump in new cases bringing the city's overall total to more than 1,000. Meanwhile, the commander of U.S. Forces Japan has announced the public health emergency for a large swath of Japan's largest island. Let's go live to Tokyo with journalists Kaori Enjoji. Yes, some people thought Japan moved a little slowly in its response to the virus now talk of a state of emergency.

KAORI ENJOJI, JOURNALIST: That's right, that could be imminent, and there are expectations growing that the prime minister will declare a state of emergency and give the local governors like Tokyo which has been struggling with record number of cases day after day, a little bit more authority in doing what needs to do to contain the virus.

But police make sure this is really not a lockdown. Japan can't really implement a lockdown as you've seen in some European cities. Legally, it can't. It is prohibited in doing so by the Constitution. But two, there's a real difference in Japan. When authorities have requested that people stay home, that's the literal translation. It was understood that is a demand and the expectations are that people will obey.

So that is the kind of thinking that they will be using when the state of emergency is -- if the state of emergency is announced. But the authorities really need more leeway in trying to skewer the number of hospital beds, particularly the ICU units that are in -- that are falling day by day, Michael.

HOLMES: Yes. It's -- I wanted to ask you, I mean, the postponing of the Olympics was a huge financial hit for the government. What is the economic fallout so far from coronavirus?

ENJOJI: I think the economic fallout from the postponement of the Olympics is going to seem like child's play compared to the economic fallout from the virus. Just today, you had a company like Subaru which is a major Japanese automaker say that they're going to move forward plans to shut down production because they can't get parts.

So there's the supply set aside that continues to dog manufacturers. Then of course, there's demand side. And this is a very export-driven economy. So when you have a China, when you have most of Europe and the U.S. in a state that is with the demand drive up, and the tourism dollars that they were counting on to propel economic growth this year, all of those factors combined, Japan is in a recession. Economist has no doubt about that.

The numbers I'm seeing, maybe minus seven percent GDP growth later on this year. And the question is, when and what kind of shape a recovery will take place?

HOLMES: Yes, exactly, a powerhouse in the region and suffering. Kaori Enjoji, thanks so much there in Tokyo for us. Now, some of Brazil's poorest neighborhoods, well, they're bracing for the onslaught of COVID-19 and taking matters into their own hands to prepare for it. We'll show you how when we come back.



HOLMES: There is a growing fear that COVID-19 could have a devastating impact on Brazil's hilltop slums, knowing favelas. Residents in these densely packed areas are already struggling to meet their basic needs, but that has not stopped them from taking care of one another and facing the crisis as best they can.


HOLMES: Cidade de Deus is the first favela in Rio to confirm a coronavirus case. Visiting Sebastiao Alexandre, favelas patient zero tells us why streets there are deserted.

SEBASTIAO ALEXANDRE, FAVELA RESIDENT (through translator): Four adults and three kids live here. Seven people in this space. Others might have at least 40 square feet.

HOLMES: He shows us where the three children sleep with their mother on the ground. He sleeps on the sofa. It's 30 degrees Celsius outside, but much warmer indoors because there are no fans or ventilation in the small home. Alexandre opens his fridge and shows us he has very little food. He

makes a living selling beverages at the beach but Rio de Janeiro governor has now banned this.

ALEXANDRE (through translator): I am diabetic. I need insulin and I suffer from hypertension. But if I had to go to work, I would in a heartbeat.

HOMES: Brazil's favelas are extremely vulnerable to the threat of COVID-19. Residents there lack basic services like water, and electricity. They think overpopulation and precarious living conditions for valid dwellers are at an undeniable disadvantage.

Juliana (INAUDIBLE) lives here with her husband and two daughters. This small space makes up the bedroom, kitchen, and living room. Juliana tells us she has no water. There is only water down the hall from one faucet for whole living complex. She tells us she has no running water to wash your hands or to follow hygiene guidelines against coronavirus.

More than 40 neighbors have come together in Cidade de Deus fearing the pandemic will wreak havoc on their community. They rapidly organized products donated to them so they can later distribute.


LUZINETE TORRES, FAVELA RESIDENT (through translator): We get detergent, hand soaps, sponges.

VICTOR ANDRADE, FAVELA RESIDENT (through translator): These are not expensive items but we know are favelas reality. Many of the homes here don't have these products. People don't have money for rent, so they won't have money to buy these things.

HOLMES: They've already distributed 1,200 kits in 10 days and solely depend on donations. They live in the favela and are well aware of their needs.

RODRIGO FELNA, FAVELA RESIDENT (through translator): We are focused on helping while trying not to get infected ourselves or our families, but we are here. Our motivation to help is hard to explain. But it's in each and every one of us.

HOLMES: They are hoping to distribute food next week. Many are informal workers and are now unemployed. As coronavirus cases in Brazil grow and spread, so too do the problems in the favelas.


HOLMES: Now, millions of people in India lit candles and waved flashlights on Sunday to show their solidarity in the face of the coronavirus. India's Prime Minister Narendra Modi said everyone should "ensure the dark clouds of the virus make way for the light of hope, adding that no one is alone in the fight."

Thanks for spending part of your day with me and watching CNN NEWSROOM. I'm Michael Holmes. The news continues with Rosemary Church after a short break. You've been watching CNN.