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NEW DAY

Rare Inflammatory Symptoms Strike Kids; Italians go Back to Work; Baseball's Opening Day in South Korea; California Borrows to Pay Unemployment Claims; Retailers Survive Pandemic. Aired 6:30-7a ET

Aired May 5, 2020 - 06:30   ET

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


[06:30:00]

JOHN BERMAN, CNN ANCHOR: With a rare symptom of coronavirus, sending their otherwise healthy immune systems into shock.

So we're going to discuss what we're learning about all this and the effect of coronavirus on kids in general, next.

(COMMERCIAL BREAK)

BERMAN: All right, new this morning, we just learned that 15 children, recently hospitalized in the New York City area, have come down with a mysterious syndrome that doctors do not fully understand yet. They're experiencing a rare inflammatory response to the virus. This comes as the government launches a new, large study to answer key questions about the impact of coronavirus on children.

Joining us now to discuss, Dr. Juan Dumois, a pediatric infectious disease physician at Johns Hopkins All Children's Hospital.

And, Dr. Dumois, I just want to start with the breaking news, which is about this handful, maybe larger than a handful, of kids showing up with what looks to some doctors to be Kawasaki Syndrome, an inflammatory situation for these kids.

What do we know about this and what kind of numbers are we talking about?

DR. JUAN DUMOIS, PEDIATRIC INFECTIOUS DISEASES PHYSICIAN, JOHNS HOPKINS ALL CHILDREN'S HOSPITAL: Well, yes, it's an interesting observation that they have detected that some kids who happen to be infected with Covid-19 also are developing symptoms that we've recognized for the last 50 years as Kawasaki Syndrome.

[06:35:10]

And some of them also have shock, which is a condition where your heart's not pumping enough blood to the rest of the body.

Kawasaki Syndrome is one in which there is inflammation throughout the body. And it can particularly affect the heart. So we have to look at heart function very closely in children who present with the typical symptoms. Those typical symptoms are fever for at least five days, they have a

rash, their eyes turn red, there are changes in the appearance of their tongue and sometimes there's swell or redness on their hands.

BERMAN: It is interesting this is happening because it's a relatively small number of children who are, a, getting infected with coronavirus, b, showing symptoms. Which brings me to this larger issue, which is this pretty large government study on the effects of coronavirus on kids. What are the questions that we need to have answered at this point?

DUMOIS: Well, we would like to know a little bit more about why some children have developed this -- this condition of Kawasaki disease in response to coronavirus, whereas, most children do not. However, I don't know that we'll actually find an answer to that, because we've been looking for potential causes of Kawasaki disease for decades.

And what it seems to be is that in children who are genetically prone to developing Kawasaki disease, it can be triggered by different infections. And the coronavirus seems to be one of those possible triggers.

BERMAN: The larger question, though, of children and coronavirus, this study is going to try to answer, why is it that some kids show no symptoms at all or how many show know symptoms? How many kids do show symptoms? How bad of those symptoms?

And then another question I have is, how infectious are children to begin with? How much do we really know here?

DUMOIS: So the results of the big study are going to be very useful because we really do not have an accurate answer to the question of, how often are children getting infected and how often are they having symptoms? Because in our country, most children who are being tested are having symptoms and they are often sick enough to be hospitalized. So we don't know about the relatively well children who either have mild cold symptoms or no symptoms at all, how many of them are infected. We don't have the answer to that.

BERMAN: And then the key question is, ow many of them who are asymptomatic, how much can they spread the virus?

DUMOIS: It looks like they can spread it. We already have some data to suggest that, especially in a household setting, children with the virus can be the ones who, even if they don't have symptoms themselves, can spread it to the adults in the household.

BERMAN: And that information is so key in deciding whether and how to open schools in the fall, and even before the fall you have questions about summer camp.

DUMOIS: Exactly.

BERMAN: And there are some parents saying, hey, look, you know, sending my child to the woods with a bunch of other kids seems relatively safe since kids aren't getting that sick. What would you say to them?

DUMOIS: Well, yes, you know, outdoor activities are probably a bit safer than indoor activities when you have groups of kids together. But I -- I don't trust children to be very good at doing the proper social distancing or wearing a mask or even washing their hands reliably. So I always assumed that groups of kids will share whatever germs they might have.

And even if the kids themselves may not develop symptoms or get very sick if they acquire the coronavirus in a summer camp, they're likely to bring it home and infect the adults in the home.

BERMAN: And that hasn't changed over the last few months since the decisions were made to close schools, correct?

DUMOIS: Correct.

BERMAN: All right. Dr. Dumois, we appreciate you being with us this morning and helping us understand all of this information. Thank you, sir.

DUMOIS: You're welcome.

BERMAN: So Italians heading back to work as the virus-stricken nation begins to ease restrictions. We have a live report, next.

(COMMERCIAL BREAK)

[06:43:17]

ERICA HILL, CNN ANCHOR: Millions of Italians are going back to work after the month-long lockdown there begins to ease.

CNN's senior international correspondent Ben Wedeman is live now in Naples with more.

Ben, good morning.

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, good morning, Erica.

Well, yesterday, for the first time since the 10th of April, the number of active coronavirus cases in Italy dipped below 100,000. We're now on day two of phase two, the easing of the lockdown. And here in Naples, it's famous pizzerias were able to fire up their ovens for the first time since the middle of March.

(BEGIN VIDEOTAPE)

WEDEMAN (voice over): Dario is busy. Busier than he's been in more than 50 days. Monday, Italy's nationwide lockdown was eased and L'Antica Pizzeria De Michele is now back in business, but only for takeaway and home delivery.

A year ago, the restaurant would be full and there would be maybe 20 people waiting outside, Dario tells me. It was here that Julia Roberts ate pizza in "Eat, Pray, Love." But,

today, she'd have to do her eating outside.

WEDEMAN (on camera): This pizzeria opened 150 years ago. In that time, it stayed open during a cholera epidemic and the entire Second World War. It only shut its doors when coronavirus came to town.

WEDEMAN (voice over): Elsewhere in Italy, pizzerias continued to provide home delivery, but the no nonsense governor of the Compania (ph) region, where Naples is located, wasn't willing to take risks in this relatively poor, crowded city and ordered all pizzerias to close.

[06:45:14]

He famously threatened to send police with flame throwers if students gathered for graduation parties. That, fortunately, never happened and the outbreak here has been mild.

Now, Napolitani (ph) can be reunited with their beloved pizza, which local lore insists was invented here.

Guliano and Franchesca (ph) got by on homemade pizza during the lockdown, but it just wasn't the same.

For us Napolitani, to go without pizza for this long is almost impossible, says Guliano.

Bruno is happy to get his pizza again, but worries people, especially the young, are letting down their guard.

Everyone is together, he says. It's more dangerous now than a month ago, as far as I'm concerned. But the pizza's getting cold, so, good- bye.

This pizzeria has been in the same family for five generations. Closure came at a high cost.

It was depressing, says Sergio Condurro. We have 17 workers which means 17 families, and then there are producers of tomatoes and flour and mozzarella. Lockdown created pockets of poverty.

Now, some stomachs and pockets can be filled again.

(END VIDEOTAPE)

WEDEMAN: But only a few pockets are now being filled because if you drive around the streets of this crowded city, you still see lots of stores remain closed, most of the hotels are closed. There are no tourists, so it's a beginning of an easing of the lockdown, but there's still a long way to go, Erica, before life returns to normal.

HILL: A long road ahead.

Ben, appreciate it. Thank you.

Retailers are facing a dire financial future here in the U.S. So which of your favorite stores may not survive the pandemic? That's next.

(COMMERCIAL BREAK)

[06:51:53]

BERMAN: All right, some good news for diehard baseball fans. After weeks of delays because of the pandemic, it's finally time to play ball in South Korea.

Andy Scholes has more on this morning's "Bleacher Report."

But, Andy, I'm in. I'm all in.

ANDY SCHOLES, CNN CORRESPONDENT: Yes, any live sports, we'll take it at this point in time, right, John?

Opening day for the (INAUDIBLE) organization getting underway just hours ago. This kind of giving us a glimpse at what sports may look like when it returns here in the U.S., you know, at least for baseball. There were no fans in the stands there in South Korea. The umpires and base coaches were wearing masks, as well as some players who were not playing in the game.

The empty stadium feel, definitely odd. I mean you couldn't really tell where this home run landed because there were no fans in those stands reacting to it.

Now, the players in the KBO are supposed to not be high-fiving each other, but it looks like some of those guys forgetting that new rule in the dugout.

All involved in the game had their temperature checked before entering the stadium.

All right, closer to home, members of the U.S. women's national soccer team say they'll continue to fight for equal pay. Last week a federal judge dismissed their case saying you women were paid more in total and on a per game basis than their male counterparts during the period in question.

Now, on "Good Morning America," co-captain Megan Rapinoe said they plan to appeal that ruling.

(BEGIN VIDEO CLIP)

MEGAN RAPINOE, TWO-TIME WOMEN'S WORLD CUP CHAMPION: So if we were under the men's contract, we would be making three times more. So you can look at the total compensation and say, oh, the women's team made a little bit more. In that time that we've made just a little bit more, we've won two World Cups and we've won just about every single game that we've played in.

I think so many women can understand what this feeling is of going into a negotiation knowing equal pay is not on the table, knowing anywhere close to your male counterparts is not even on the table.

(END VIDEO CLIP)

SCHOLES: Yes, the men's team, meanwhile, releasing a statement yesterday saying that they stand with the women in their fight for equal pay. And, Erica, the men's team say they've made proposals to the soccer federation that would achieve equal pay. So we certainly have not heard the last of this.

HILL: No, we have not, that's for sure. Appreciate it, Andy.

SCHOLES: You got it.

HILL: New this morning, California has become the first state to borrow from the federal government pay for unemployment benefits during the pandemic.

Joining me now, CNN chief business correspondent Christine Romans and CNN anchor and correspondent Julia Chatterley.

So, Christine, as we look at this, more than 4 million unemployment claims in California since mid-March.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Yes.

HILL: And the state can't pay anymore.

ROMANS: You know, look, they -- and the governor there saying basically its unemployment insurance trust fund is almost depleted here and they're going to keep paying people so they're tapping the federal government for help do that.

I mean I think this really underscores, Erica, the tidal wave of joblessness in America. You know, we already know that New York has also had an awful lot of these unemployment claims as well and has suggested it may also have to borrow money to make sure everyone gets paid.

In California, you're paid up to $450 a week and then there's $600 extra a week from the federal government.

[06:55:01]

All of that meant to kind of keep people whole. But in many of these big states, we've had all kinds of trouble and delays in getting the aid to people. There are folks who are listening to us this morning, hearing about jobless claims and they're like, well, I filed a month ago, I don't have anything yet. So, still, a lot of work to be done to get the money into the hands of people.

HILL: You have to get the money into the hands of people, Julia, but then there's also a question about paying this money back, right, the state of California being able to make good on that loan. Is that a concern?

JULIA CHATTERLEY, CNN ANCHOR AND CORRESPONDENT: Of course it is. But we're not even talking about this. All we're doing is racking up debts at this stage. If you go back to the financial crisis, California borrowed almost $11

billion. They didn't pay it all back until 2018. The way that you do that, of course, is you raise taxes on employers, on businesses that at this moment and throughout this period, of course, for the most part, have been shut down. It just adds more pain in a painful situation already. Paying this back is not something we can talk about now, but it is pain for the future.

HILL: Christine, I want to get your take on this really quickly. We've talked so much about, you know, on Friday, May 1st, rent was due, mortgages were due.

ROMANS: Yes.

HILL: There was an effort to offer some assistance in Miami and they were absolutely overwhelmed.

ROMANS: Yes. This was rent relief and small business relief in Miami, the city of Miami. Ten thousand applications tapped out in just an hour.

Again, another example about how this is a kitchen table economics story. These are people who have lost their jobs, who need money right now. April 1st has come, May 1st has come now and the rent is still due. And I think that just, again, underscores the pain, you know -- you know, at the -- at the mom and pop level for so many people in this country right now.

HILL: And when we look at the jobs that are being lost, one of the things I know we always come back to when we talk about retail is that we are what I believe is a two-thirds consumer-based economy.

So, Julia, as we look at that with the news that J. Crew is filing for bankruptcy and that we're -- there is concern about a number of other companies that's been there for some time. That also can be a very scary indicator of what this could look like in the coming weeks and months.

CHATTERLEY: Yes, you raise a great point that this is not a new problem. We've seen changing consumer tastes. We've seen a push online. So this sector and some names within it have been pretty embattled. But you were just showing some classic ones, the likes of Niemen Markus, JC Penney, huge debt levels. In the end, J. Crew might be one of the lucky ones because as much as what we've seen now with Covid-19 accelerates the likelihood of bankruptcy, it also makes it tougher. You go into bankruptcy, for the most part, you pay off some of your debts, so you get rid of your debts. You come out slimmer and meaner.

For some of these names, just finding that money, they can't even sell off goods because the stores aren't open. So you can't prove what your business is going to look like in the future or raise money in the short-term. We're probably going to see more bankruptcies, but they could take a while in coming. It's part of the challenge at this moment in time. It's unprecedented.

HILL: It really is.

CHATTERLEY: Yes.

HILL: And, Christine, as we look at this, too --

ROMANS: Yes.

HILL: It's easy to understand why retail businesses have been hit so hard.

ROMANS: Yes.

HILL: It's not just being able to access them as a consumer going into a store, it's the fact that this is not what you're spending your money on right now.

ROMANS: Right. Absolutely. I mean, look, and I think that how we shop going forward is really going to change. You know, Macy's is opening some stores this week. Simon Properties is opening up some malls this week and they're social distancing. And Macy's, for example, you're not going to be able to get your ears pierced, you're not going to be able to have a beauty consultation where somebody's touching your face and putting makeup on your face. I mean the way we used to shop my forever be changed and these CEOs are even admitting there's no playbook here. They're trying to figure out how they can tweak this model to make everybody happy and everybody safe but also still sell goods.

HILL: It is -- it is a tall order.

ROMANS: It sure is.

HILL: It certainly is.

All right, Christine, Julia, appreciate it. Thank you both.

NEW DAY continues right now.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I think those numbers are a giant wakeup call to the entire country. Looking at the possibility of 134,000 dead by August.

UNIDENTIFIED MALE: We've now built into the modeling what we're seeing around the country.

UNIDENTIFIED FEMALE: The Trump administration projects about 200,000 new cases per day and some 3,000 deaths a day by early June.

UNIDENTIFIED FEMALE: What we're hearing from sources is that these latest models are not going to affect the White House's current plans for reopening the country.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: There's still a lot of cases that are happening every day, and we haven't really seen the back end of this curve yet.

UNIDENTIFIED MALE: How much suffering are you willing to accept to get back to what you want to be some form of normality?

(END VIDEO CLIP)

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

BERMAN: Welcome to our viewers in the United States and all around the world. This is NEW DAY.

Alisyn is off. Erica Hill with me this morning.

HILL: Good morning.

BERMAN: So we are grappling with a painful question this morning, how much death, how much suffering are we willing to accept? That's just how the nation's top infectious disease doctor, Anthony Fauci, stated it overnight.

[07:00:05]

(BEGIN VIDEO CLIP)

DR. ANTHONY FAUCI, DIRECTOR, NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES: It's the balance of something that's a very difficult choice.

END