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States Gradually Opens Their Economy; V.P. Mike Pence Admits His Irresponsibility; U.S. Ramping Up Measures to Combat COVID; Tit- for-Tat Between U.S. and China Amidst Pandemic; Russia Hits a New Milestone in COVID Cases; Europe Taking Baby Steps into Recovery; Small Businesses Skeptical of Rehiring; Growing Gap Between China Poses Threat to Future Transactions. Aired 3-4a ET

Aired May 04, 2020 - 03:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[03:00:00]

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ROSEMARY CHURCH, CNN ANCHOR: This hour, America's national experiment on reopening for business gets much bigger.

Hello and welcome to our viewers joining us here from the United States and all around the world. You are watching CNN Newsroom, and I'm Rosemary Church.

Just ahead, right now, more than half of America is reopening for business, if only a little. We are on both coasts to look at whether anyone is meeting White House guidelines. Then --

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: They could've kept a, thing could've stopped it, but they didn't.

(END VIDEO CLIP)

CHURCH: This is an example of the latest claim by Washington against Beijing, the details in a live report from Hong Kong. Plus, some incredible scenes as the United States salutes its frontline heroes.

From the U.S. to Europe to Asia, governments are slowly reopening their economies, getting back to business, and hoping to slowly settle into this new normal.

This, as the global coronavirus case total climbs past three and a half million. The U.S. Remains the worst hit country in the world, with deaths and infections still rising. But that hasn't stopped dozens of streets wrapping up their first weekend of loosened restrictions, and the national experiment is to set to expand over the coming hours.

More than 40 states will have eased at least some of their regulations by the end of this week, but as phase reopening's begin, cases nationwide top 1.1 million and the number of people killed by the virus has passed 67,000. A top member of the White House COVID-19 Task Force warns that things could get much worse.

(BEGIN VIDEO CLIP)

DEBORAH BIRX, COORDINATOR, WHITE HOUSE CORONAVIRUS TASK FORCE: Our projections have always been between 100 and 240,000 American lives lost, and that's with full mitigation, and us learning from each other on how to social distance.

(END VIDEO CLIP)

CHURCH: Still, states are moving forward with their reopening plans, hoping for an epic economic boost. In New Jersey, which has the second highest virus totals in the country, golf courses open this weekend. This, as the governor announced another 3,100 cases on Sunday.

Florida beaches were already reopening, drawing this protest from a man dressed as the grim reaper. Officials aren't stopping there as people will soon be able to eat inside of a restaurant in much of the state.

In Arkansas, people will be able to go to the gym, and shop at a mall in Indiana. The question now, is whether patrons will feel safe enough to show up, and if shopping, and a day in the sun, are worth floating medical experts, and adding to the potential spread of the pandemic.

But states, such as California, are standing firm at stay-at-home orders, and there has been pushed back.

CNN's Paula Vercammen takes us down to Huntington Beach.

PAUL VERCAMMEN, CNN CORRESPONDENT: Another day of a hard shutdown in Orange County, and another day where police seem to be looking the other way early in the morning when it comes to surfers. Let's look at the beach. Huntington Beach. What we saw was some of the surfers got out early in the morning, and wrote the waves, and then, the officers got on bullhorns and told them to exit the water. The surfers did.

All of this, in Orange County, where they now have 2,743 cases of COVID-19. That's a population of three million, and many would argue here that that is not a staggering number, and that would include some surfers that we talk to who feel that this beach shutdown is just over reaching.

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UNIDENTIFIED MALE: Our governors wasting all of these resources on putting cone's up, putting caution tape up, and driving down the coast and see a cop every light is the most ridiculous thing I've ever seen.

UNIDENTIFIED MALE: I think it's ridiculous to me. There are other things that you could be doing in terms of having people say you have to keep moving on the beach, but don't stop people from enjoying this out here.

GOV. GAVIN NEWSOM (D-CA): Those images are an example of what not to see. people what not to do. This virus doesn't take weekends off. And that's why I cannot impress upon you more, to those Californians watching, that we can't see images like we saw, particularly on Saturday in Newport Beach and elsewhere in the key state of California.

(END VIDEO CLIP)

VERCAMMEN: Governor Newsom, of course, stressing that social distancing is important to stop the spread of COVID-19, and he didn't like the idea of people stacked up on the beaches.

[03:05:05]

Newsom also said that this week, we are going to be able to make announcements that will give some people more confidence in the ability for California to get back on its economic feet. That will be welcomed here in Huntington Beach, and all of Orange County, as well as those Northern California rural counties where there are zero COVID-19 cases.

Reporting from Huntington Beach, I Paula Vercammen. Now back to you.

CHURCH: A different story in Florida. Businesses when all but three counties will begin reopening their doors in the coming hours. The state's governor says that they are taking small deliberate steps to resume normal life.

Randi Kaye explains what's going to happen next.

RANDI KAYE, CNN INVESTIGATIVE REPORTER: Today begins phase one in the reopening of Florida. That includes state parks, it will also include some of the largest beaches in the state of Florida including Pensacola, Destin, and also Clearwater that will be open from sunrise to sunset. Social distancing, of course, is encouraged.

Also open as of today will be restaurants, they will have seeding outside as long as the tables are six feet apart. Inside, people will be allowed up to 25 percent capacity. Retailers also can open their stories up to 25 percent capacity as well. Elective surgeries can resume, and golf courses will be open again top.

Some things that will still be close, that will be movie theaters, dog parks, salons, and spas. The governor met with salon owners over the weekend, and they were pleading with him to allow them to open, but he said he is going to have to take under consideration, they say they can text customers, have them wait outside, whatever it takes, but he did not commit.

Also still closed are three major counties in southern Florida that were hardest hit, the most populous counties. That would be Miami- Dade, Broward, and Palm Beach County. But on a bright note, the governor does plan on increasing testing in the state.

Right now, the state is testing about 15,000 people a day, he hopes to ramp that up to about 20,000 people a day by May 15th, and 30,000 people a day by June 15th. Also, Walgreens, he just announced, will be opening some drive-through testing areas at nine locations. And the National Guard will continue to ramp up testing in nursing homes.

Randi Kaye, West Palm Beach, Florida.

CHURCH: U.S. Vice President Mike Pence now says that he should have worn a mask during his visit to the renowned Mayo Clinic last week. Pence notably the only one not wearing a mask when he toured the hospital and met with healthcare workers.

He did this despite the clinic's policy requiring face masks. Pence defended his decision again Sunday on Fox News telling a town hall that he is tested for coronavirus frequently, but even so, he admits, he should have worn a mask.

And that admission comes as new Governor, Andrew Cuomo is really hammering home the importance of wearing a face mask. He didn't mince words when he shared what he thought of those who choose not to wear them. Take a listen.

(BEGIN VIDEO CLIP)

GOV. ANDREW CUOMO (D-NY): You wear the mask, not for yourself, you wear the mask for me. It's a sign of respect to other people. And you make me sick, that's disrespectful, I have to go to the hospital, I have to call an ambulance, that's an ambulance driver, I have to go into an emergency room, that's a nurse, that's a doctor, who has to put on PPE that somebody has to buy and pay for.

They have to risk being exposed to the virus because you couldn't wear a mask. Because you wouldn't wear a mask, you put so many people at risk, because you did not want to wear a mask.

(END VIDEO CLIP)

CHURCH: And some states are requiring their residents to wear masks in certain situations, but at least one is now backing down. Ohio will no longer make residents wear masks inside of stores, its governor explains why.

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GOV. MIKE DEWINE (R-OH): Every employee is going to have the face mask, but it became very clear to me after we put out the order that everyone in retail who walked into a store is a customer would have to do that. It became clear to me that that was just a bridge too far. The people were not going to accept the government telling them what to do.

(END VIDEO CLIP)

CHURCH: Well more now on the promising news for a treatment for COVID-19. Listen to what Dr. Deborah Birx said to hear about the experimental drug Remdesivir.

(BEGIN VIDEO CLIP)

BIRX: So, it's a first step forward. In parallel, we have a whole series of therapeutics including plasma, and also monoclonal antibodies being worked through. We are -- we are concentrating on vaccines, as well as therapeutic bridges, to ensure that American people can do well with this virus eventually.

[03:09:59]

We really want to ensure there is both there's therapeutics available and vaccines available rapidly.

(END VIDEO CLIP)

CHURCH: Dr. Birx added that a COVID-19 vaccine becoming available in January is not out of the realm of possibility, but it depends on several other factors.

Well infectious disease specialist Sanjaya Senanayake joins me now from Canberra, Australia. Thank you so much for being with us.

SANJAYA SENANAYAKE, INFECTIOUS DISEASES SPECIALIST, AUSTRALIAN NATIONAL UNIVERSITY MEDICAL SCHOOL: Hello, Rosemary. How are you?

CHURCH: Good. Good. Good to talk to an Australian. Let's talk more about this new drug, Remdesivir, that has just received emergency FDA for use on COVID-19 patients suffering severe symptoms in the hospital. How excited are you about that breakthrough, and how much does it change anything?

SENANAYAKE: Remdesivir is an interesting drug. So, the antiviral antibiotics that we have are very few in number and they are very targeted to maybe one or two viruses, but Remdesivir has the potential to treat lots of viruses.

Now having said all of that, the data that we are talking about comes from a trial of 1,063 people where the people who received Remdesivir recovered more quickly than the people who did not receive it. The limitations are, however, that the trial is ongoing, that we haven't seen the data, and that it has not been peer reviewed, just to make sure that the trial has no holes in it.

And also, this comes on the back of another trial in China which showed that Remdesivir didn't make a significant difference in time to recovery, although in their trial, the numbers were smaller than the researchers hoped. So hopefully, Remdesivir will be that silver bullet, but I'm not just 100 percent sure yet.

CHURCH: All right, we'll continue following that of course. I did want to ask you this, because there's more U.S. states prepare to open up, as well as other nations across the globe. The biggest hope of course that we all have is that we'll get a vaccine by early next year.

Now Oxford University is in human trials right now with its vaccine. Here is what Professor John Bell had to say about that. Let's pull that sound up.

(BEGIN VIDEO CLIP) JOHN BELL, PROFESSOR OF MEDICINE, OXFORD UNIVERSITY: We are pretty sure we'll get a signal by June about whether this works or non. Coronavirus doesn't mutated the pace of the flu, as far as we can see, but it's also quite a tricky virus in terms of generating long- standing immune responses to it.

And as a result, I suspect we may need to have relatively regular vaccinations against coronaviruses going into the future. That -- that of course remains to be seen, but that's my bet at the moment, that this is going likely to be a seasonal coronavirus vaccine.

(END VIDEO CLIP)

CHURCH: So, it sounds pretty promising, doesn't it? We will know by June, that's next month, if this vaccine works. And if it does work, Professor Bell says we'll probably need to have regular shots. What's your response to what he just said, and how much hope do you have for the Oxford vaccine option compared to the other 100 plus vaccines being looked at right now?

SENANAYAKE: Yes, Rosemary. The Oxford vaccine seems to be getting the most publicity, but there are about six or so vaccines which have gone into human clinical trials, so maybe more than one will work, including one at the University of Queensland, that's going to be undergoing human trials, which they say it might be ready by September.

The only issue is that the quickest we've ever gotten a vaccine from start to finish, to the end of the production line, has been four years. So, turning it around so quickly will be an enormous task, and we normally half of to go through an extensive trial process to make sure that it's safe and effective.

But if they are saying they can do it by September, that it's great. The other thing about the Oxford trial is the Serum Institute of India, which is one of the biggest vaccine producers in the world, has said that they are going to produce 60 million doses of this vaccine, regardless of whether it works or not. Hopefully it does work, of course.

So, I am kind of optimistic, but I don't necessarily think we'll see it until early next year.

CHURCH: Yes, of course, they, Oxford has been working on this for quite a few years, so that test put them ahead of a whole lot of other people.

I did want to ask you this too, because Australia has been particularly aggressive with its lockdown and testing measures, along with New Zealand, Germany, Taiwan, and others. As a result, these countries have reduced their cases and death tolls, and are emerging successfully from quarantine.

Now the United States on the other hand not only continues to have the highest death toll, but it has insufficient testing in place, and some Americans don't want to stay at home, and they don't want to wear masks, they don't to be told what to do.

How bad could it get if the U.S. testing doesn't improve, while at the same time the country opens up for business?

[03:15:04]

SENANAYAKE: Rosemary, to sum it up nicely, if those measures don't improve it could get a lot, lot worse. In Australia, I think the reason that we have been successful so far is, as you said, we've done a lot of testing, 10,000 tests per million people, hand in hand with good contact tracing capacity, also the public have been very cooperative.

Of course, there been some silly people, but everyone has been generally socially distancing.

The other unusual and great thing that's come out of this is something called national cabinet, where, as you know in Australia, we've got a federal government, and we got eight states and territories with their own governments, a bit like the U.S.

And now the prime minister has been meeting with, I guess, the governor equivalence of those states and territories on a regular basis. And from those meetings it looks like despite being on different parties, they've been cooperating, we've being generally getting a single message, and the cooperation between that group has been led to very powerful messaging that the people have embraced. So, I think that's been another effective measure in Australia.

CHURCH: Yes, very helpful not having mixed messages, there's a lot of that unfortunately in the U.S.

Sanjaya Senanayake, thank you so much for talking with us. Always a pleasure.

SENANAYAKE: Thank you so much, Rosemary.

CHURCH: All right. Turning now to Europe where Spain is launching phase zero of its gradual reopening after weeks under strict lockdown. This phase will see some businesses operating on a limited basis.

On Sunday, Spain reported its lowest daily coronavirus death toll in six weeks. France also now reporting its lowest daily number of deaths in more than a month. Still the government is still expected to extend its state of emergency through July 24th, though it will not impose a 14-day quarantine on those travelers from the U.K. and other parts of Europe.

Italy is loosening restrictions too. More workplaces will be allowed to reopen provided they can meet social distancing rules, but most shops will stay shot until May 18th.

And we are tracking all of the developments in Italy with CNN contributor Barbie Nadeau, and the latest from Spain with journalist Al Goodman. They are both joining us now live here on CNN. So, they will be with us in just a moment. All right. Tensions are rising between the United States and China

over the response to the coronavirus. The U.S. now accusing China of intentionally concealing the severity of the virus from the rest of the world. We have the latest, just ahead.

Plus, a potential deadly insect has been spotted in the U.S. for the first time. We'll have details for you.

[03:20:00]

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TRUMP: And now we are friends with China. In fact, maybe we've never had a better relationship, and we are working with them very closely on the coronavirus.

UNIDENTIFIED FEMALE: Are you concerned that China is covering up the full extent of the coronavirus?

TRUMP: No, China is working very hard.

We've been working very much with China, I've spoken, as you know, with President xi, they went through hell. Their numbers are starting to look very good.

(END VIDEO CLIP)

CHURCH: U.S. President Donald Trump praising China's coronavirus response earlier in this pandemic, but the president has since changed his tune, saying China could have stopped COVID-19 from spreading.

Over the last few weeks, the U.S. and China have been blaming each other for their responses to the epidemic, and even where the virus originally bid.

A new report from the U.S. Department of Homeland Security said that the Chinese government intentionally conceal the severity of the coronavirus from the international community, while it stockpiled imports and cut exports.

At a Fox News town hall, President Trump said that he believes the origin of the virus was a horrible mistake, but the blame rests with China.

(BEGIN VIDEO CLIP)

TRUMP: I don't think there is any question about it. We wanted to go in, they didn't want us to go in early, very early you'll see that because things are coming out that are pretty compelling now.

So, I don't think there's any question. Don't forget, China tried to blame it first on some of our soldiers that turned out to not go too far. And I really get very upset with that, that was not right. And then they tried to blame it on Europe. (END VIDEO CLIP)

CHURCH: Well, on Sunday, the U.S. Secretary of State echoed claims that the virus originated in a Chinese lab in Wuhan, a theory that President Trump has speculated about. Mike Pompeo said there is significant evidence supporting that claim. However, he also agreed with the U.S. intelligence report that says the virus was not man-made or genetically modified. Pompeo also accused China of hiding details of the outbreak.

(BEGIN VIDEO CLIP)

MIKE POMPEO, U.S. SECRETARY OF STATE: We can confirm that the Chinese Communist Party did all that it could to make sure that the world didn't learn in a timely fashion about what was making place. There is lots of evidence of that, some of that there you can see in public. Right?

We've seen announcements, we've seen the fact that they kick the journalists out. We saw the fact that those who are trying to report on this, medical professionals inside of China were silenced. They shut down reporting all the kind of things that authoritarian regimes do, the way communist parties operate.

This is classic communist disinformation efforts. That created enormous risk, and now you can see hundreds of thousands of people around the world, tens of thousands in the United States have been harmed.

President Trump is very clear, we're going to hold those responsible accountable, and we'll do so on a timeline that is our own.

(END VIDEO CLIP)

CHURCH: Well, CNN's Kristie Lu Stout is following the story from Hong Kong, she joins me now. Good to see you, Kristie So it's not just the United States applying pressure on China, global outrage is building including in Australia. So how is China reacting to all of this?

KRISTIE LU STOUT, CNN CORRESPONDENT: Well, Rosemary, we are awaiting word from Beijing. We have put in a request for comment with China's ministry of foreign affairs, not likely to receive a comment today because it is a public holiday.

[03:25:06]

But we have heard from China's Global Times which in an article called Mike Pompeo's strategy a bluff designed to fool U.S. voters. Now this claim is a repeated claim, the repeated claim from the top administration that the origin of the coronavirus is link to a lab in central China.

Now many scientists believe that the origin is not in the lab, but in a live animal market in Wuhan. But again, the Trump administration is saying that the origin is in the Wuhan Institute of Virology. This is what we know about the institute. It is famous for its

research into different types of coronaviruses found in bats, it has, in the past, received U.S. funding, in fact funding from the National Institutes of Health.

And according to reports about two years ago in 2018, American diplomats from China raised the alarm twice about safety standards at the lab. But in his comments overnight, the U.S. secretary of state did not provide any new concrete evidence behind this claim that the origin of the virus is this slab, and he wouldn't say whether he believed that the virus was released deliberately or accidentally.

Now as we await of official word from China, we know that China has been engaging in its own propaganda and messaging campaign about the virus for weeks now. Chinese officials have pedaled a theory, saying that the U.S. army brought the virus into central China.

So last week there was that video posted online through XinHua, the state news agency, a bizarre animation that mocked and made fun of the U.S. pandemic response. This does not bode well for relations between the U.S. and China.

We know that the relationship was already rocking before the pandemic, but as the pandemic rides on, at a time when international collaboration is desperately needed to develop therapeutics, to develop a vaccine, we have these two countries engage in a war of words about the origins of the virus. Rosemary?

CHURCH: And Kristie, when U.S. Secretary of State Mike Pompeo says that those responsible will be held to account, what does he mean exactly? Has anyone suggested what he is implying there?

LU STOUT: Yes. Well, according to our own colleagues at CNN Washington, D.C., they have spoken to a source in the Trump administration, a source inside the administration telling CNN that there are tools, that there is appetite within the Trump White House to use in order to pressurize China at this moment.

These are economic tools including sanctions, including canceling U.S. debt obligations, as well as drawing up new trade policies. So, this is a moment when the trump White House is seriously considering playing economic hardball with China, when again, we are in the midst of a pandemic that demands an international global and coordinated response. Rosemary?

CHURCH: All right. Kristie Lu Stout bringing us all of that from Hong Kong, many thanks to you. Talk to you soon.

Well China now says it recorded 85 million domestic tourists in the first three days of the May Day holiday. The ministry of culture and tourism says that has generated a revenue of nearly $5 billion dollars. Restrictions are still in place at tourist sites, but 70 percent of what's considered a-class scene spots China were open. The holiday lasts a total of five days.

Well South Korea is now providing emergency relief grants to citizens impacted by the coronavirus. Those living off basic expenses are eligible to receive cash, while others will be able to apply online for assistance next week. The country will also begin to relax its strict social distancing orders on Wednesday, as the number of new cases of the virus has stayed relatively low.

Italy and Spain have been under lockdown restrictions for weeks, but now some of those measures are being lifted. We'll go live to Rome and Madrid for the very latest.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Do I want to go back in to work in an environment that I'm not exactly positive is safe because there is no testing available, and make less money? So, the obvious answer is, no way.

(END VIDEO CLIP)

CHURCH: An Oregon restaurant owner says he understands why some employees are reluctant to come back. Just ahead, the difficult choices faced by American businesses and workers as much as the country moves to reopen.

We're back in a moment.

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[03:30:00]

ROSEMARY CHURCH, CNN ANCHOR: Welcome back, everyone.

Well Russia reported more than 10,000 new cases of the coronavirus on Sunday. The fourth record single day increase there in a row. That is despite a lockdown that's left the capital of Moscow looking like this, with streets largely deserted.

Last week, President Vladimir Putin extended Russia's isolation period through May 11th, warning the peak is not behind us.

Well CNN's Matthew Chance, normally based on Moscow, joins us live from London. Good to see you, Matthew. So, what more are you learning about these numbers, and what's happening in Russia with this pandemic?

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, the numbers as you just reported for the past 24 hours, we are expecting an update in the next hour or so. We get regular daily updates from the Russian authorities as to the rate of increase of infections.

As you said, latest figures are 10 and a half thousand in the previous 24 hours. That's the biggest single daily jump that we've seen. It brings the total of infections in the country to just under 135,000. And the number of people who have died as a result of coronavirus is just over 1,200 people, which, actually, seems remarkably low in a country where there is about 140 million people.

And so, there is a good deal of skepticism still, and has been since the outset of this crisis in Russia that the figures that we're hearing about publicly may not be a true representation of the actual number of people who are infected.

In fact, you know, over the last day or so the mayor of Moscow, Mayor Sobyanin has come out and said that he believes from the evidence that he has seen, that about 2 percent of the population of Moscow may have been infected with the coronavirus, and that would take the number of infections in that city alone, you know, kind of way, way above where we are nationally at the moment.

[03:34:59]

CHURCH: Certainly, those numbers don't look right considering what we do know about the mortality rate of this coronavirus. Many thanks, Matthew Chance, bringing us the latest in Russia from his vantage point there in London. Many thanks.

Well, after weeks on lockdown, Italy and Spain are gradually losing restrictions. In Spain, people can now exercise outdoors, as long as they maintain a safe distance, and some small businesses resume operations on Monday. In Italy, parks will reopen but most shops will stay shut until May 18th, but masks and social distancing are mandatory in both countries.

We've got reporters standing by in Italy and in Spain. CNN's Barbie Nadeau is at Campo de Fiori market in Rome, and Al Goodman is in Madrid. Good to see you both. So, Barbie, let's start with you. How are Italians responding to the lifting of some of these restrictions, and of course their new normal?

BARBIE NADEAU, CNN CONTRIBUTOR: Well, you know, there is a lot of caution today. I have to say, you know, we have seen people out on the streets, there is a lot of traffic, people using public transportation. Four million people across the country are going back to work, those are people who couldn't work from home.

Markets like this behind me which are generally bustling are starting to come back to life. But people are very, very cautious. You know, this is a moment nobody wants to, as the prime minister said, squander all of the work they've done during the lockdown to contain the spread of the virus.

Nobody wants to go back to where we were, you know, two months ago. And so, people are taking it very, very seriously. You've got to wear masks if you are in a place of business, you've got to wear it on public transportation. You know, we're seeing the churches are now allowed to hold funerals maximum of 15 people.

There are nearly 29,000 people who died in this country, a lot of sadness of course involved in that in saying goodbye to their dead and memorializing them in various ways.

So, this is a country that's on its knees trying to get back on its feet, there is still a long way to go but this is a positive start, Rosemary. CHURCH: All right. It sounds good. Barbie Nadeau there in Rome. Al,

let's go to you now in Madrid. And how smooth is the lifting of restrictions been so far across Spain?

AL GOODMAN, JOURNALIST: Hi, Rosemary. Well, there's been a lot of joy with people able to run and take bicycle rides. These are the adults. The Spanish government is saying the hard part is coming now after seven weeks of confinement as the infection rate of coronavirus has gone way down. The new infections are way down here in Spain, so they're opening things up.

Most of the country is starting what they are calling phase zero. So, for instance, at this restaurant, they can't take out those tables that are for outdoor terraces until next week if everything goes well.

This restaurant, which has been closed, serves takeout food, and they serve stricken among other things, whether they will open today there is no sign that they are going to reopen, but the government says they could reopen if they have a lot of security measures. Small stores can open with clients coming in by prior appointment.

So, there is a whole series of security measures that the government is watching today, mostly across the entire country to see if the Spaniards will maintain the social distancing, keep masks on where necessary, and see if this can work.

A few small Spanish islands in the Mediterranean and in the Atlantic Ocean have moved ahead of the rest of the country because they are have such low infection rate that they can start on phase one which would allow outdoor terraces for restaurants and more people in the stores, and funerals under certain conditions. But most of the country remains on a very, very tiny little opening this day and this week. Rosemary?

CHURCH: All right. It looks so cautiously optimistic for both Spain and Italy. Al Goodman bringing us the latest there from Madrid, many thanks.

Well, Europe of course is no stranger to plagues. Centuries ago, people had to quarantine themselves and they didn't have social media or a whole of other things. So how did they do it? Just go to cnn.com for a fascinating chat with a professor on the history of social distancing.

And still to come, after trillions of dollars are handed on stimulus money, the Trump administration is looking at whether Americans need another round. We will tell you where that stands.

Back in a moment.

[03:40:00]

(COMMERCIAL BREAK)

CHURCH: Here in the United States, the top White House economic adviser is raising the possibility that more stimulus money may need to be handed out. But Larry Kudlow told CNN the Trump administration wants to first assess whether additional aid is really necessary.

(BEGIN VIDEO CLIP)

LARRY KUDLOW, DIRECTOR, U.S. NATIONAL ECONOMIC COUNCIL: There may well be additional legislation, there is kind of a pause period right now, which I would say to you at this particular juncture, let's execute the continuation of what we've already done.

Let's see what the results are, the outlook in the weeks and months ahead, directly is not positive, as you've noted, the unemployment is very, very high almost 30 million people.

We are covering them with generous relief packages, just trying to stabilize things and get folks through this. And then, we will see.

(END VIDEO CLIP)

CHURCH: And with a number of businesses now reopening, some restaurants across the country are struggling to rehire workers.

Here is CNN's Vanessa Yurkevich.

(BEGIN VIDEO CLIP)

KURT HUFFMAN, OWNER, CHEFSTABLE GROUP: It's a very visceral experience to, you know, to try and create something with somebody. It feels incredibly powerful to have to shut it all down.

(END VIDEO CLIP)

VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: It's been over a month since Kurt Huffman close 20 of his restaurants, furloughing 700 employees.

(BEGIN VIDEO CLIP)

HUFFMAN: I apologize, I just need a second here.

(END VIDEO CLIP)

YURKEVICH: His emotions are still raw.

(BEGIN VIDEO CLIP)

HUFFMAN: Clearly, it's still -- it's still weighing on me a lot.

(END VIDEO CLIP)

YURKEVICH: COVID-19 wreaking havoc on businesses and employees, tens of millions of Americans already filed for unemployment, millions more are expected. But as some states reopen, businesses are starting to rehire.

(BEGIN VIDEO CLIP) HUFFMAN: Once this $600 federal money starts arriving, we just noticed that it was almost impossible to get people to come back to work.

(END VIDEO CLIP)

YURKEVICH: The federal stimulus gives unemployed workers an extra $600 a week through July. Unemployment now pace equal to, or more, than average weekly wages in 38 states, including Oregon where Huffman owns restaurants.

(BEGIN VIDEO CLIP)

HUFFMAN: Our employees are confronted with this decision which is, do I want to go back into work in an environment that I'm not exactly positive is safe because there is no testing available, and make less money? So, the obvious answer is, no way. Why would you do that? You know, I wouldn't -- I wouldn't do that if I was them.

HEIDI SHIERHOLZ, SENIOR ECONOMIST, ECONOMIC POLICY INSTITUTE: Lots of low wage workers, frontline workers who lost their jobs really quickly due to social distancing measures.

[03:45:00]

In some cases, those workers can actually earn more on unemployment than they were in their old jobs, which just, just highlight we had a wage problem in these jobs before this crisis ever happened.

(END VIDEO CLIP)

YURKEVICH: In Minnesota, Christian Ochsendorf owns five Dunn Brothers coffee shops, revenue is down 85 percent, and he furloughed 46 of his 60 employees. But slowly, he is coming back online.

(BEGIN VIDEO CLIP)

CHRISTIAN OCHSENDORF, FRANCHISE OWNER, DUNN BROTHERS COFFEE: We have been trying to get people back on, especially our key employees, because I mean, it cost us about $3,500 per employee to train them.

(END VIDEO CLIP)

YURKEVICH: But employees face new challenges beyond health concerns like homeschooling kids or taking care of loved ones. And with limited and uncertain work hours to offer, Ochsendorf says rehiring has been more challenging.

(BEGIN VIDEO CLIP)

OCHSENDORF: They'd be like in the other employer that's paying more wages, where would that employee go, you know? They're going to do what's best for their family.

(END VIDEO CLIP)

YURKEVICH: Minnesota plans to lift its stay-at-home order next week, while Oregon continues to evaluate.

(BEGIN VIDEOTAPE)

YURKEVICH: Do you expect that even if your restaurants maybe able to open at a greater capacity, that you'll still have trouble bringing people back?

HUFFMAN: It's like, do I want to reopen in the context where I have to ask my employees to come back work and take a pay out. I don't think it's fair to ask people to come back when there is no testing available.

(END VIDEOTAPE)

YURKEVICH: Vanessa Yurkevich, CNN, New York.

CHURCH: And I am joined by CNN's emerging markets editor John Defterios. Good to see you, John. Tensions between the United States and China over the origin of COVID-19 led to a sharp downturn on U.S. markets Friday. What impact is all of that having on Asian markets right now?

JOHN DEFTERIOS, CNN BUSINESS EMERGING MARKETS EDITOR: Well, if you look at Vanessa's report here, people are worried about keeping businesses open, so if you add a layer of complexity with the U.S.- China trade tensions, Rosemary, it's going to be very difficult.

We spent the entire second half of 2019 in that mode and it looks like we're going to end to the second half of 2020 in that same condition here. Particularly with the White House putting pressure on China to live up to the spirit of this phase one of the trade agreement.

So, this is a dark cloud hanging over the markets. Some of them were close in Asia, but he ones that are open are mostly lower.

If you take a look at the KOSPI in Seoul, trading down about 2.5 to 3.5 percent for the day but down about 2 percent on the day. We see that Australia was up slightly.

But the big loser was Hong Kong. And it was always trading at 4 percent lower, or about 3.5 percent in that trading ban. They are going to have GDP numbers for the first quarter which are going to be terrible coming out here in about an hour. But probably down 6.5 percent.

The one standout for me today was India, it's trading now 5.5 percent. Again, worried about what's happening between Beijing and Washington. Dow futures, NASDAQ futures, S&P 500 futures trading down just under 1 percent.

The other standout for me today has been the oil market again. If you look at the U.S. benchmark WTI trading down in the session between 5 and 7 percent.

The international benchmark not severely lower, but there is worries about global recovery, global demand, airline demand hitting that price of crude even though the OPEC plus cuts that you and I have talked about are great deal, are now going into place. Just not enough cuts considering the severe drop in demand because of the slowdown in the economy.

CHURCH: Yes. Of course. And John, with all of this pressure being applied to China, what happens to their pledge to buy more U.S. products. Does that remain a priority for Donald Trump?

DEFTERIOS: Well, it's a priority for Donald Trump, I'm not sure if it's the same thing for Beijing right now, Rosemary. It's a great way to raise that question. That phase one deal called for $200 billion over the next two years of additional purchases by China. And there's two focuses here, farm products and energy.

In the farm spaces about $80 billion. So very important to the base of Donald Trump, the heartland of America. Those that have supported him in the previous election and he wants that support yet again. Soybeans, nuts, pork products going to China and energy.

The U.S. wants to compete against Saudi Arabia and Russia in the space. The early indications are China is going to use this global slowdown as a reason not to accelerate the purchases.

If that's going to be the case, expect the rhetoric we're hearing right now, whether it's from Mike Pompeo, the secretary of state, or Donald Trump himself saying, China did this on the coronavirus. China is not doing enough to help the global economy. That will celebrate -- accelerate as we go ahead towards November in the election, no doubt about it, Rosemary.

CHURCH: All right. Good to talk with you. John Defterios joining us there. I appreciate it.

All right. Still to come here on CNN, remarkable new images of a flyover by U.S. military jets honoring healthcare workers and first responders.

[03:50:00]

We'll have that in just a moment.

(COMMERCIAL BREAK)

CHURCH: Look at that, a spectacular sight from a different point of view yesterday. We showed you these pictures of the Blue Angels and Thunderbirds over the National Mall, but here is a view from inside of the cockpit as the plane flew across Washington, D.C., Baltimore, and Atlanta.

Their special theme was to honor healthcare workers and first responders on the front arrives of the coronavirus pandemic. And we salute them too. Fantastic.

Well, as Americans continue to confront this pandemic, former President George W. Bush is calling on all Americans to come together and remember that showing kindness is as important as ever. (BEGIN VOICE CLIP)

GEORGE W. BUSH, FORMER PRESIDENT OF THE UNITED STATES OF AMERICA: Following 9/11, I saw a great nation rises one to honor the brave, to grieve with the grieving, and to embrace unavoidable new duties.

And I have no doubt, none at all, that the spirit of service and sacrifice is alive and well in America.

[03:54:57]

Second, let us remember that empathy and simple kindness are essential powerful tools of national recovery. Even at an appropriate social distance, we can find ways to be present in the lives of others, to ease their anxiety, and share their burdens.

Third, let's remember that the suffering we experience as a nation does not fall evenly. In the days to come, it will be especially important to care in practical ways for the elderly, the ill, and the unemployed.

Finally, let us remember how small are differences are in the face of this shared threat.

In the final analysis, we are not partisan combatants, we are human beings, equally vulnerable, and equally wonderful in the sight of God. We rise or fall together, and we are determined to rise.

(END VOICE CLIP)

CHURCH: That's a powerful message there. And this is for our U.S. viewers. And invasive and potentially deadly species of giant hornet has been found in the U.S. for the first time.

The Asian giant hornet which researchers dubbed "the murder hornet" has a venomous sting that can kill a human if they are stung several times. They are also strong enough to puncture a beaky pursuit.

The hornets are more than two inches long and have reportedly been attacking beehive's in Washington State. Scientists don't know yet how they came to the United States.

I'm Rosemary Church. I'll be back with more news in just a moment. Do stay with us.

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