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No One Agrees with President Trump's Easing of Rules; U.S. Now Ranks the Top in COVID Cases; China Bans Foreigners from Coming in; Death Toll in Spain Doubled; Young People in France Hit by the Virus; Asia Markets Improve After Wall Street Gains; Coronavirus Pandemic, U.S. House Expected To Vote On Relief Bill Friday; U.S. Unemployment Claims Skyrocket, Shatter Records; Record 3.3 Million Americans File For Unemployment; G20 Leaders Vow At Virtual Meeting To Overcome Covid-19; Emerging Markets Suffer Through Virus Outbreak; lack Of Global Coordination Hampers Response; U.S. House To Vote On $2 Trillion Stimulus Plan; South Africa Under Lockdown; Japan Olympics, The High Price Of Postponement. Aired 3-4a ET
Aired March 27, 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]
(COMMERCIAL BREAK)
MICHAEL HOLMES, CNN ANCHOR: Hello, everyone. I'm Michael Holmes. You are watching CNN Newsroom live from Atlanta.
And ahead of this news hour, a grim and sobering statistic. The U.S. now has the most coronavirus cases on earth. You are going to hear from some of the growing number of Americans who worry about feeding their families as unemployment claims in the U.S. shatter all records.
And shutting its borders. The original center of the outbreak says foreigners are no longer welcome.
Thank you for your company, everyone, especially in times like this. It is important to remember behind every number, and there are a lot of numbers in the coronavirus.
A story there is a human being. A father, a grandfather, a wife, mother, child. And the numbers we must tell you about now, they don't even touch the grief of loved ones each of those numbers represents.
Now according to Johns Hopkins University, more than half a million people around the world are now infected with the coronavirus. Half a million. And the United States now has more reported cases than any other country, outpacing China, and Italy. And testing still isn't widespread.
At last count, there have been at least 82,000 cases in the U.S., nearly 1,200 deaths. And one emergency room doctor in New York has a message for the leaders of our country.
(BEGIN VIDEO CLIP) COLLEEN SMITH, EMERGENCY ROOM DOCTOR: ELMHURST HOSPITAL: I don't have the support that I need. And even just the materials that I need physically to take care of my patients. And it's -- it's America. And we're supposed to be a first world country.
(END VIDEO CLIP)
HOLMES: Well, we have the story covered from los Angeles to Tokyo and cities in between. From the center of Europe's crisis in Spain, to South Africa where a lockdown is in effect this hour.
But we begin in the United States where per capita there are now almost four times the number of cases than those reported in China. And there are some new hotspots in the U.S. like Michigan. Listen to this. Less than 350 cases a week ago, now almost 3,000 in a week. And that emergency room doctor you saw a moment ago she has more to say.
Here is CNN's Nick Watt.
NICK WATT, CNN CORRESPONDENT: More than 1,000 now dead, and as of tonight, the United States has more reported cases of coronavirus than any other country on earth, according to Johns Hopkins University.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: I think it's attribute to the testing. We're testing tremendous numbers of people.
(END VIDEO CLIP)
WATT: Despite the rising numbers, the president now considering easing social distancing guidelines in some parts of the country to get some people back to work.
(BEGIN VIDEO CLIP)
TRUMP: We've got to start the process pretty soon, so we'll be talking to you a little bit more about that next week.
(END VIDEO CLIP)
WATT: And today, a glimpse of the staggering economic impact. Last week, nearly 3.3 million more Americans signed up for unemployment, a record since such records began more than 50 years.
(BEGIN VIDEO CLIP)
TRUMP: It's nobody's false, certainly not in this country.
(END VIDEO CLIP)
WATT: A $2.2 trillion stimulus package to help industry, individuals and the healthcare system passed the Senate, still waiting on a House vote.
(BEGIN VIDEO CLIP) TRUMP: Hopefully it will get approved equally, easily in the House. Really, I think it'll go through pretty well from what I hear. Virtually everybody -- there could be one vote, one vote, one grand stander maybe. You might have one grand stander.
(END VIDEO CLIP)
WATT: Meanwhile, on the front line.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: All the feet that you see, they all have COVID.
(END VIDEO CLIP)
WATT: And 13 died at this one New York hospital in one day.
(BEGIN VIDEO CLIP)
SMITH: We had to get a refrigerated truck to store the bodies of patients who are dying.
(END VIDEO CLIP)
WATT: An E.R. doctor sharing a rare look inside her hospital with the New York Times.
(BEGIN VIDEO CLIP)
SMITH: I don't have the support that I need, and even just the materials that I need physically to take care of my patients. And it's -- it's America.
(END VIDEO CLIP)
WATT: CNN has reached out to Elmhurst Hospital for official comment on the statements of this doctor.
(BEGIN VIDEO CLIP)
SMITH: Leaders from various offices from the president to the head of health and hospitals saying things like we're going to be fine. Everything's fine. And from our perspective, everything is not fine.
(END VIDEO CLIP)
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WATT: New York's governor says there is enough protective equipment for now but distribution might be stopped in the start.
(BEGIN VIDEO CLIP)
GOV. ANDREW CUOMO (D-NY): You cannot get the curve down low enough so that you don't overwhelm the hospital capacity.
(END VIDEO CLIP)
WATT: New York State has by far the most confirmed cases right now, but they've also done by far the most testing. Twenty-five percent of the national total says the governor. So, everywhere else --
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I think it could be as much as one in three walking around asymptomatic right now.
(END VIDEO CLIP)
WATT: The first confirmed case in the U.S. was January 21st, Washington State. About a month later, the president said this.
(BEGIN VIDEO CLIP)
TRUMP: We're going down, not up. We're going very substantially down, not up.
(END VIDEO CLIP)
WATT: That day 56 cases. Today, more than 80,000 cases across every single state, hence, more than half the country ordered to stay home to slow spread for now.
So, the mayor of Los Angeles said, he expects California to become the next New York. Three thousand cases so far, they expect that to get higher, and they are preparing. The Mercy, a 1,000-bed U.S. Navy hospital ship will pull in to the port of Los Angeles Friday morning.
Nick Watt, CNN, Los Angeles.
HOLMES: Ryan McGarry is an emergency room doctor in Los Angeles, Keck Medicine USC Medical Center. I think I got that right. He is also the co-creator and executive producer of the Netflix series "Pandemic" which is somewhat recent. Great to have you.
The president has said multiple times that he would like to open up large parts of the country, get back to normal, have states raided as high, medium, or low risk. Let's just have a quick listen to something he said earlier.
(BEGIN VIDEO CLIP)
TRUMP: Now people want to go back to work. I'm hearing -- I'm hearing it loud and clear from everybody. I think it's going to happen pretty quickly. A lot of progress was made, but we got to go back to work. We may take sections of our country; we may take large sections of our country that aren't so seriously affected.
(END VIDEO CLIP)
HOLMES: How risky is that given the lack of testing which means there is no real clear picture of actual spread? What do you think? RYAN MCGARRY, EMERGENCY MEDICINE PHYSICIAN, KECK MEDICINE OF USC:
Well, I can give an analogy, I think as the front physician. Physicians like myself, nurses like myself, custodians on the frontline, you know, we're all in a battle together right now.
If I may use an analogy of World War II, certainly my grandfather was in World War II, you know, imagine approaching Normandy, seeing a barrel of cannons ready to shoot you, and then knowing that the commander-in-chief has pulled back your air force.
I think there is a sense here that folks sheltering in place staying at home, is our air force. They are coverage. They are helping us right now. To have that pulled back prematurely, boy, I wouldn't want to run into that battle.
HOLMES: Yes. I'm wondering how much it concerns you in terms of how little we know about spread when it comes to testing. We don't really know who's carrying without knowing they're carrying it, and so on, and that requires widespread testing into all kinds of places.
MCGARRY: That's absolutely correct. Here in Los Angeles there is a sense of some of that mystery, I think is surrounding us. We are seeing our numbers go up. L.A. Times reporting today that they're doubling over the last 24 hours. And of course, you know, imagine, you know, waiting for what could be, you know, Italy or New York here coming to L.A., and so, yes, I think that that's very concerning to us.
HOLMES: Dr. Ryan McGarry there in Los Angeles, I appreciate that. Now to Spain, a growing hotspot in Europe. It's coronavirus-related deaths have now surpassed every other country except Italy.
The Spanish government reporting more than 4,000 people have died. The number of confirmed infections has top 56,000 but the death toll in the past 24 hours was smaller than the record number of fatalities reported on Wednesday.
Let's turn now to journalist Al Goodman who joins me now from Madrid. Good to see you, Al. The situation still dire in Spain? What is the prospect of that curve flattening in these terrible numbers coming down?
AL GOODMAN, CNN CORRESPONDENT: Hi, Michael. Well, Spanish officials may been -- have been a little overly optimistic earlier this week when they said that the peak of the curve was coming in a matter of days, possibly even this week said one official.
Now they are saying that it's approaching, that it's coming soon. And the numbers, the recent numbers that you just mentioned do seem to back them up. The recent, the most recent death toll figures, the death toll was up 19 percent in the most recent figures, but the previous 24 hours it was up 27 percent.
[03:10:02]
And the people going into intensive care the latest figures was up 16 percent, the previous day it was up 20 percent. So those numbers are coming down a bit.
In the meantime, the Spanish are trying to -- are scrambling to get enough of this protective gear like every other country. They are competing with every other country. And there have been some missteps.
So, on Thursday, they announced that a batch of rapid tests, quick testing that they bought from a Spanish company that had imported it from China, the Spanish government following protocol tested it in a reference lab didn't work, it didn't give that kind of reliability.
So that cost concern. But the Spanish say that's not part of the $500 million dollar purchase of new equipment that they've just bought from China that's going to be coming in soon. Michael?
HOLMES: Well, that is -- that is concerning. I mean, as we said at the top of this program so much of the tragedy that's unfolding is numbers. Speak for a moment to the human toll of this in Spain, how it's hitting families, the elderly, and so on.
GOODMAN: Well, most of the victims, the fatal victims have been people over 70 years old. And most of those have died in hospital, officials say. But there is a notable exception, several hundred senior citizens have died in senior citizen residences right here in Madrid. In just one of those homes a couple dozen people died.
That's according to the people at the residences because they didn't have the protective gear. And this is causing incredible consternation here in Spain, a close-knit society, great respect for the elderly.
So, on national radio yesterday, Thursday, a woman calling for authorities to let her get in and find her 94-year-old father, find out if he is OK and get him out of there. I can tell you, I have a friend who went out with her siblings to get their mother out of a home just on Thursday to put him in the home of one of her sons.
So, people are concerned about that. And then very quickly, the prices are skyrocketing for this protective gear. The hand cleansers out in the pharmacies if you can get it.
My pharmacist said the race for that hand gel is 60 percent or more of alcohol has gone up 20 percent in five days. He says, unfortunately, supply and demand is taking precedence over medical concerns right now. Michael?
HOLMES: Yes. A lot of concerns about price gouging. It's unspeakable that it goes up that much. Al Goodman in Madrid, glad you're there. Thank you, Al.
Well, starting this weekend China will ban most international travelers from entering the country. Just a few hours ago, U.S. President Donald Trump and China's president spoke on the phone about the pandemic.
CNN's Steven Jiang is in Beijing joins us now live. You know, the president only just stop calling COVID-19 the Chinese virus, but tweeting about what he says was a pretty good call with President Xi. What do we know?
STEVEN JIANG, CNN SENIOR PRODUCER: That's right, Michael. Quite a dramatic turnaround there as well given that the two governments had been engaged in a war of words on the origin of the virus, as well as whom to blame for this pandemic.
But as you said, now Mr. Trump not only tweeting about his good conversation but also saying China and the U.S. are working closely together and he has respect for China which has gone through a lot and gained a lot of understanding on this virus.
So, from the Chinese side the government readout also sounds very conciliatory. There is no more promoting of a conspiracy theory against the U.S. and said they played up the end goal of mutual respect and bilateral cooperation with Mr. Xi, telling Mr. Trump that he understands that U.S. is currently in a very difficult situation and China is willing to provide help and support within his abilities, including providing the U.S. with medical supplies.
Mr. Xi also saying the Chinese (Technical problem) information and experience (Technical problem) doing all it can to ensure the stability and the safety of the global supply chain.
So at least for now, Michael, the two leaders seem to have turned the page over and willing to play constructive and responsible roles in this fight against this global pandemic. Michael?
HOLMES: Yes. Yes. Let's see how that goes. For a while, other countries were banning travelers from China, now China stopping outsiders coming in. Very quickly, fill us in on that.
JIANG: That's right. That's quite a turnaround as well given that China was strongly condemning other countries for closing their borders to Chinese citizens early in this pandemic. And now of course, they are, according to them, they are compelled to take similar actions as a last resort with the continuously rising number of imported cases.
So, it's also worth noting this announcement is made in conjunction of the government's order to drastically reduce the number of international flights. So that's -- that means even though this policy ostensibly targets only foreign nationals, this also will lead to a lot of Chinese citizens living overseas being stranded as well. Michael?
HOLMES: All right. Steven Jiang there in Beijing, I appreciate it. Thanks so much.
[03:15:00]
We will take a short break. When we come back, a quote, "continuous tsunami of coronavirus patients." When we return, we'll find out why one group says London hospitals are struggling just to keep up.
Plus, a large percentage of people in France are young. They are infected with the coronavirus. We'll look at how big a toll it has taken. Stay with us. We'll be right back.
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HOLMES: A moment of unity to honor medical workers in Britain. Landmarks in London lit up in blue the logo of the U.K.'s National Health Service. They are paying homage to those who are obviously putting themselves on the frontline in the fight against the coronavirus.
A group representing hospitals and other health care providers meanwhile say London hospitals are experiencing, quote, "a continuous tsunami of coronavirus patients."
Now the group NHS providers told the BBC on Thursday that hospitals are struggling to meet the explosion in demand.
For more on all of this, let's go to Anna Stewart who is standing by in London.
A late start to battling down the hatches there. Bring us up to date on the situation in terms of that load on the services and the cost in lives.
ANNA STEWART, CNN REPORTER: The U.K. has now had its biggest daily rise in deaths. Over 100. And that takes the total to 578. Hospitals are being absolutely inundated, particularly here in London. And you have to remember that we're still two or maybe three weeks away from the peak.
Now London is readying an exhibition center in the Dockland area trying to create that into a hospital. It will be able to take up to 4,000 patients. But there is still big concern that cases will overwhelm capacity in the coming weeks.
Plenty of bad news, plenty to feel very anxious about, Michael. But I have to have say, Britain bracing for the worst, has brought out the best in many people.
You mentioned that moment of gratitude for health workers yesterday. Brits standing on their doorsteps, up and down the country taking a moment to celebrate the health workers and make sure they know how appreciated they are. Take a listen.
(APPLAUSE)
STEWART: Warms a couple of your heart, Mike. And you got to remember, this is Britain, we are Brits. We have stiff upper lips. We're not used to displaying affection or any kind of emotion really. But I think we'll see plenty more of that in the weeks to come. Michael?
HOLMES: Yes, indeed. Thank you, Anna. Anna Stewart there in London for us.
Well, French health officials are reporting more than 29,000 cases, the death toll of almost 1,700. France has closed all non-essential public places to slow the virus spread including restaurants and cafes. And a large number of young people are being infected.
[03:19:58]
Nearly a third of the cases in France involve somebody under the age of 44 according to a government analysis.
French journalist Christine Ockrent joins me now from Paris. And for so long it's been the elderly most at risk, those with underlying conditions, that is still the case. But tell us about these alarming number of cases among young people.
CHRISTINE OCKRENT, FRENCH JOURNALIST: Well, Michael, yes, for the first time a 16-year-old girl died yesterday in a Paris hospital. It's very rare of course that such young people get affected. It is not known yet whether she had other ailments which might explain that the virus, you know, her problems.
But indeed, it shows that all of those young people especially, I remember seeing, you know, really fools, young fools in Florida partying two or three days ago. It is absolutely horrid. That virus can really touch and kill anyone.
The statistics in France so far do show of course that it's the elderly that are most infected. There is a major concern about retirement homes what's happening there with devoted medical crews who have decided to stay there, confine, you know, to try and make due.
But of course, that number will get higher and of course, men tend to be more affected than women. But just beware of those numbers. It doesn't mean anything. People here in France have been confined now for more than 10 days. We expect that the government will tell us to stay in our homes until the end of April.
And indeed, it is the only measure that works, that people stay home, do not meet others and limit the contamination and --
(CROSSTALK)
HOLMES: And Christine, what are you seeing in terms of French -- I mean, Parisians but everyone around France -- what are you seeing in terms of them adhering to that recommendations. Are the streets deserted, is everyone staying home?
OCKRENT: Yes, indeed. People have really understood that it is the only thing to do. The streets in Paris are absolutely empty. The police are checking whoever has the correct piece of paper, spelling out the reason why you have to go out.
You have to -- you are allowed to go out to purchase food, you are allowed of course to go out to go and see a medical doctor. You are allowed to go out for exercise, but only one hour a day and only one kilometer around your home.
So, these are very, very strict measures in Paris and in most French cities. Indeed, these measures are taken into account. HOLMES: And briefly, if you will, France turning outwards as well. Of
course, France has colonial links to Africa. And it's launching an initiative there because there is very little doubt Africa will be hard hit.
OCKRENT: Yes, indeed. Well, you know, there was that G20 conference, audio conference yesterday. Also, at the European Union level a meeting, and of course there is a great deal of concern about African countries where the public systems are not ready at all.
And so, there is willingness from the rich countries to devote a huge financial package to try and help these countries to face the virus there. Again, numbers don't mean much because it is assumed that very little is known about what's happening. You know, in West Africa, for instance, we know that in Senegal, in Dakar there are a few cases, but in the countryside, nobody really knows what's happening.
And, of course the exports of raw materials which keeps these economies going, all these exports have come to a standstill --
HOLMES: Yes.
OCKRENT: -- ever since China came to a halt.
HOLMES: A very difficult situation. Christine Ockrent in Paris, thank you so much. Good to talk to you.
OCKRENT: Thank you.
[03:24:59]
HOLMES: One of the many cultural hotspots to shut down during the coronavirus pandemic is Broadway. The world-famous musical production shattered until further notice. But one enthusiast has parodied some of great white ways most famous productions in a viral video called the Broadway coronavirus medley.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Wash your hands, wash your hands, and please cancel all your plans. If you're going to the store be sure you're buying food in cans.
We're closing for the virus, it's worse than we suspected. We haven't been this panic since Donald got elected, so just for now we're going to keep our eyes on CNN and in April will be open again.
We are only saying we hate your guts, corona, corona. God why? c-o-r- o-n-a.
(END VIDEO CLIP)
HOLMES: A little bit of levity there. We need it. Now the video features rewritten lyrics as you could hear from shows like "Beauty and Beast" "Cats," "Oklahoma," and others. Zach Timson is the man behind it. He describes himself on social media
as a singer, writer and comedian. On his YouTube account he writes that since Broadway was closed, he thought he'd bring a little Broadway to us.
And thanks for doing so. Still ahead, a record number of Americans filed for unemployment as the pandemic wreaks havoc on world economies. We are going to take a look at the numbers and what relief could soon be on the way. We'll be right back.
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HOLMES: Welcome back to our viewers from all around the world. I'm Michael Holmes. And you are watching CNN Newsroom.
It is time to check the headlines for you. There are now more than half a million cases of coronavirus reported worldwide, that's according to Johns Hopkins University. And nearly a third of the world's population is under some type of pandemic-related restriction.
United States now has reported case -- more cases than any other in the world. At last count, there are more than 82,000 cases reported, and we emphasize reported, testing still isn't still as widespread as it needs to be. Twelve hundred people have died per capita. The U.S. has almost four times the number of reported cases in China.
And China is said to ban most international travelers from entering the country. The government is hoping to curb new cases of coronavirus coming into China. President Xi and U.S. President Donald Trump discussed the virus in a call. Mr. Trump saying the two leaders are working together.
And markets responding positively to news of stimulus plans, aiming to curb the economic impact of the virus.
South Korea's KOSPI and Hong Kong's Hang Seng all the major indices in the region are up.
[03:30:00]
Seoul KOSPI is up nearly 2 percent. And the Nikkei having good day, nearly 4 percent. Not the moves built on Wall Street, positive momentum overnight. The DOW up emerging from the bear market that fell into two weeks ago officially.
Investors optimistic as U.S. lawmakers put the finishing touches on a $2 trillion stimulus bill to boost the economy. The House of Representatives are expected to vote on the deal or later today. Now that bill is expected to bring some relief, temporarily relief, but some relief to millions of jobless workers across the U.S.
And, it is a stunning figure, more than 3 million Americans filed for unemployment, last week. Let's look at the graph there that is an all- time high by far. Some economists warn, this is just the tip of the iceberg though, these are the ones who claim this week there are more out there who have lost jobs since. The economic policy institute has placed 14 million Americans lose
their jobs by this summer, 14 million. And as people across the United States lose their jobs, Kyung Lah speaks with those worried about how they are going to make ends meet in these uncertain times.
(BEGIN VIDEO CLIP)
JOSH SOUDER, DIRECTOR OF OPERATIONS, I.E. ENTERTAINMENT GROUP: How you doing guys. This has just been a completely life altering experience from start to finish. And within a week, I mean this is unbelievable.
KYUNG LAH, CNN SENIOR NATIONAL CORRESPONDENT: A record number of newly unemployed Americans, the virus leaves no business untouched.
SOUDER: We would have all the seats filled.
LAH: All of these seats?
SOUDER: It would be a line out the door.
LAH: 3.3 million filed jobless claims last week, the coronavirus cratering businesses.
SOUDER: We went from being, you got the franchise to basically running to go business. I haven't slept. I'm worried about having a heart attack, to be perfectly honest with you.
LAH: With no diners, the Drunken Crab is hemorrhaging thousands of dollars day. Every business, every industry, reevaluating under this economic tsunami.
SOUDER: Heavy tonight.
LAH: Josh Souder, already forced to make that hard choice.
SOUDER: I had to, you know, I was forced to lay off, 75 people. At first you are thinking about them. OK, I feel horrible for them. And then, they have to go until their family. I just got laid off.
JAY BOCKEN, LAID-OFF RESTAURANT GENERAL MANAGER: I called my wife over the phone. And said honey, I am on my way home. And she just said, she pretty much immediately knew.
UNIDENTIFIED MALE: There you go.
LAH: Laid off from the Drunken Crab, former general manager, Jay Bocken immediately filed for unemployment. And, it is just the tip of the iceberg, say economists. Predicting by summer, 14 million workers will lose their jobs due to the coronavirus shock.
BOCKEN: You are talking thousands and thousands of people looking for work simultaneously. It is going to hit every aspect of life. And the government needs to react, and help us get through this. That is the only way it is going to work. People are not going to be able to support their families, for more than 2 months. LAH: And already, signs, money is getting tight. Outside this West
Hollywood bar, employees only align.
Inside, the small staff preps meals. Free meals, for workers who show up a pay stab.
UNIDENTIFIED FEMALE: Oh wow.
LAH: Like bartenders Jerry Courtney Arson.
UNIDENTIFIED FEMALE: All of us like immediately lost our jobs, I think as a Monday or Tuesday.
LAH: Are you worried about how long this is going to last?
UNIDENTIFIED FEMALE: 100 percent. Yes. If it goes on a month, like, I don't think any of us have any idea what we are going to do.
UNIDENTIFIED MALE: The moment this happened, we were going to this (inaudible) the whole regardless.
LAH: Are you scared?
UNIDENTIFIED MALE: I am concerned.
LAH: Restaurant owner, Tom's rent is $1,000 per day. He doesn't want to fire anyone. But this is a new reality he will have to face.
UNIDENTIFIED MALE: All we can do is help each other.
(END VIDEOTAPE)
HOLMES: A thousand a day in rent. Kyung Lah reporting there. Well, there's coronavirus cases surge worldwide. Countries are closing their borders. People are staying home leaving G20 leaders to take an extraordinary step and hold a virtual long distance meeting, to try to coordinate a global fight.
In a statement they said they are quote committed to do whatever it takes, to overcome the pandemic. CNN's John Defterios joins me now live form Abu Dhabi to talk about what that might be. A virtual summit, designed to, you know, sort of address the economic blind of the developing world. It seems to be disappointment that a rescue package was not define for the poorest nation.
[03:35:10]
JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: Yes, nobody can argue with the arsenal set aside by the G20. We are talking about $5 trillion, that is a record some, but in reality whether you are United States, Germany, Japan, China, the other 16 members, you are putting that money at home, to stabilize your economy. Jump-start jobs, if you will. There is liquidity going into global marketplace. But I think the U.N. Secretary General, Antonio Gutierrez, said it very well, that the problems in the developing world, particularly with the pandemic crisis that we are going to have here, will hit all of humanity. So, you actually have to focus your attention on this problem. Because
it is not limited to borders. So, what do we know out of the meeting? Probably $100 million from the IMF and World Bank for the developing world. And also, about $15 million in debt relief. But there is a mismatch, Michael, on the numbers here. India, population 1.3 billion people, $25 million of their allocating in internally.
And we're talking about 80 countries around the world already knocking on the door of the IMF and the World Bank saying, we need support. You can see the mismatch here. Money into the G20, and to jump-start their economies, but not for the poorest countries of the world.
HOLMES: Yeah, I want to ask something else to, Saudi Arabia was the G20 -- is the G20 chair, but, you know, we heard this ongoing health crisis and at the same time the Saudis basically challenging the U.S. and Russia to an oil price war. How does that strain things, especially these debt efforts?
DEFTERIOS: Well, not surprisingly, that price did not end up in the statement, because it wasn't in the venue for it. But that did not withhold Mike Pompeo, the Secretary of State, mentioning it on the eve of the summit, saying to Saudi Arabian, the crown prince, look, this is your opportunity as chair of the G20 to be a global leader. To acquit responsibility. He also had a call with the crown prince of Abu Dhabi, here in the UAE.
Those two countries are adding more production in the month of April. So, what we have Michael, because of the virus, a collapse in demand of about 15 million barrels a day. And then adding about another 5 percent from the UAE in Saudi Arabia. That is 20 percent. And why we are seeing record lows, we have already seen as demands that the U.S. output is going to drop by about 2.5 million barrels a day by the end of 2021. Is it right to have a price crisis, revenue crisis for some countries? When we are facing with this coronavirus.
That was the point of the United States. And I don't think it helps Saudi Arabia. I think, Michael, during this G20's chairmanship, the first of the Middle East to have that as a side destruction, was like kind of a nasty price war. That did not filter into the G20, but it certainly in the back draft if you will.
HOLMES: Yes, hang over in many ways. Good to have you there, John, thank you. John Defterios there in Abu Dhabi.
And joining me now from Cambridge Massachusetts, is Megan Greene, she is a globally economist and senior fellow at Harvard's Kennedy School of Business. Great to have you back on the program, a jobless claims, boy, 3.3 million, and that is really just a fraction of the number of people who are actually hurting economically. What is your take on what those sorts of numbers mean for the broader economy?
MEGAN GREENE, GLOBALLY ECONOMIST/SENIOR FELLOW AT HARVARD'S KENNEDY SCHOOL OF BUSINESS: Yes, so look, that number was apocalyptic. And as you pointed, it was probably also understated. So, it just reflects the number of people who actually successfully claimed unemployment. Not those who actually needed it and they were more on the technical issues given the surge on claimant. Though, you know, phone lines went down, internet connections went down, so their universe is probably bigger. The qualifications for how to actually get unemployment insurance, is changed. So, that makes it more difficult to compare with history.
That being said, it was four times the previous record, so comparisons with the past, you know, have been blown out of the water anyhow. I do think that the package that has been passed now, and the fiscal package has ambiguous implications for the jobless claims. On the one, because people claiming unemployment are getting $600 more. It means that some employers might actually be more willing to lay their people off so they can maybe even make more than they were by claiming unemployment.
On the other hand, some parts of the package encourage small businesses to maintain payrolls, so that would actually reduce the jobless claims. I think we can expect all those claims to be really high for a while.
HOLMES: And when you look at the U.S. has already thrown a trillion in to the economy before this and there's already calls for a new plan in Washington, do you think that is likely or necessary going forward?
GREENE: So, I think it is pretty inevitable actually. You know, you cannot really oversee how huge this package was. If you leveraged it out with money from the feds, it amounts to about 30 percent of U.S. GDP. And that's gargantuan, that is about double the size of the U.K.'s physical package, in compared with a 2 percent in GDP that the European institutions are offering.
[03:40:12]
So, it is massive, but I think one hole still needs to be plugged. And that is first states actually, because states are incurring all kinds of extra cost. Think of all the ventilators that they're having to purchase and at the same time their tax revenues are coming to a screeching halt. So, I do think we will have to see another bill following this.
HOLMES: Wow. When you put it like that, true. I mean, let's talk globally for a minute. The biggest economies in the world of course, are worried about theirs, but there are smaller economies, ones that are already in recession. You have got the emerging markets. The U.S. in many ways has a cushion as a wealthy nation. What is going to be the potential economic impact in those countries without this -- that cushion that the U.S. has? It could be catastrophic couldn't?
GREENE: It could be and I think the story in the emerging markets is a really under reported one. The emerging markets are going to get absolutely slammed. Not only because they don't have the same level of health services that we have in the U.S. for example, but also social distancing is really difficult in, you know, slums in Johannesburg for example.
And then on top of that, while everybody is piling into U.S. dollars, it's pushing the U.S. dollar up broadly, and so that puts a huge pressure on emerging markets that have, in many cases, issued their debt in U.S. dollars, and they are paying them in local currency, and the dollar is getting stronger. The debt burden is just getting even more crushing. And a lot of them are in invoicing trade in U.S. dollars as well, so importers are going to have to pay much more on emerging markets. So, that is extra pressure that they just don't need right now.
HOLMES: Wow. And there has been a lot of talk about a lack of preparedness in the U.S. that initial decisions in the U.K., lack of faith in China's transparency, and you have countries competing for resources. Speak about the lack, in many ways, of global coordination for this pandemic and what that means sort of going forward in terms of, you know, international cooperation and so on?
GREENE: Yes. So, this has been a huge disappointment I think in this crisis though it's not surprising giving the increasing go and learn attitude with most countries. We just had the G20 leaders called that was inconclusive, and even within the E.U., we just had an E.U. leaders' summit pretty much fell apart without any real, you know, branches laid out for countries who are having more trouble.
And so, we are seeing a complete dearth of international cooperation, which is too bad, because this is a truly global pandemic. And I do think they kind of go it alone, better than a neighbor approach is, has echoes in what we saw, and what really exacerbated the great depression. Not that we are necessarily on that specific path given the causes are so different, but the fact that we are not cooperating is very similar.
HOLMES: Yes. And I wanted to ask you too. I mean, the confidence is everything in the economy, as you know, as an economist. When this passes? I mean, the president is already saying, oh wow, it is this pent up demand, is going to be huge, the economy is going to be bigger and better than ever. Do you think that's true? Or do you think people financially are going to hunker down for a long time? And especially those whose retirement funds may have been decimated by the drop in the markets.
GREENE: Yes. So, those who are retiring, there's real sequence risk now and also all those who had lost their jobs. Who are now, you know, included in the jobless claims data. They are going to have a hard time, they have to go out and find new jobs. So, I would say it all depends on epidemiology, and how long it takes us to actually contain this virus.
And there's been this weird bifurcated approach we've had, we kind of had this panicked approach to economic policy on the one hand, but a fairly relaxed approach to the health policy side. I think the best way to explain is that without dealing the health policy side, it's a bit like there's a comet careening towards earth, and we are cutting interest rates, right.
It just not going to matter. And so as long as we can't find out what the natural peak of this virus is, all the economic policy measures will necessarily be insufficient. And I think our economy will continue to be in quick stand. So, if we can contain this in a few months, maybe we get a strong recovery. If it takes longer, we will be starting up from standstill and it will take longer.
HOLMES: Great points well made. Megan Greene, with Harvard Kennedy School of Business, thank you so much, good to see you.
GREENE: Thanks for having me.
HOLMES: Well, South Africa ramps up its fight against the coronavirus as cases start to spike. Up next, we will be live in Johannesburg with David McKenzie who will look at what is allowed, and what is off limits.
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[03:45:00]
HOLMES: Welcome back. South Africa strict three-week lockdown over coronavirus is now in effect. Long lines of people were stocking up to buy last-minute items, including alcohol. Under the lockdown, people won't be able to leave their homes, except to buy food, medical supplies, collect social welfare grants, or medical emergencies.
David McKenzie joins us now from Johannesburg in South Africa. Good to see you David, tell us what is being done there, and how seriously people are taking it?
DAVID MCKENZIE, CNN CORRESPONDENT: Well, I think they are taking it very seriously. I wanted to show you the scene here. I'm right in downtown Johannesburg, Michael. We've got the military here, they've been checking people, checking that they have the essential documents to allow them to move. And then, quite a point in scene behind me here. Many dozens of homeless people, who just a short time ago, were pulled off of their sleeping spots, Michael, told that they had to assemble here. And then, well, they are going to go to some kind of shelter.
One man, Philip, from the Eastern Cape said, he doesn't know what is going to happen. He said the restrictions will help him, but they just don't know where to go, and how to survive. These are the scenes, very obviously quite jarring in the South African context. Military on the streets. And we've had a grim milestone overnight.
As you see the man talking -- the military talking to the gentleman there, a grim milestone overnight, more than 1000 positive cases here, and at least two dead in the Western Cape Province. Here in (inaudible) Province, Michael, is where it seems like there are the most confirmed cases, the country is really buckling down for this period of time, 21 days in isolation, if they can be in isolation, and trying to stem what the president says could be a catastrophe, Michael.
HOLMES: Yes and just looking at the grouping there, that can't be good in terms of you know, what everyone is talking about with distancing. And speak to the challenges there, and on the continent, more broadly, health systems, infrastructure, problematic in many places, but also, you have got family and social structures, and economic issues that seal a lot of people in not a lot of space. And social distancing not really easily achieved, right?
MCKENZIE: Well, it is not possible. I mean, if you live in a Shaq, an informal settlement like parts of Salado and (inaudible), how are you supposed to social distance? But they are trying all that they can. As the same token across the continent, as you say, it's an extremely difficult scenario. Even washing your hands is difficult.
You know, I look at these people, and what are they going to be doing for the next 21 days? You know, the military here is being firm, but very polite. Late in the evening, Cyril Ramaphosa dressed in his military fatigues, address the military here in South Africa, and here is what he had to say.
(BEGIN VIDEO CLIP)
CYRIL RAMAPHOSA, PRESIDENT OF SOUTH AFRICA: Our mission is mission to save lives. You are required to go out, and save the lives of the 57 million South Africans who live within the borders of our country.
(END VIDEO CLIP)
[03:50:03]
MCKENZIE: So, the military here, still checking peoples I.D. and Cyril Ramaphosa said they are here to help the nation. Obviously it's a nervous times here in South Africa, seeing military out on the street, across the area, even in my neighborhood, very few vehicles out on the street, 21 days is a long of time. Now whether this can actually stem the tide with this public health system that is already under strain that remains to be seen. And you know, while there are a massive spike in places like the U.S. and elsewhere, people worry that here in South Africa, and across the continent, it could be a very bad situation in the coming months. Michael?
HOLMES: Yes. And really just getting going. Really disturbing behind you to see the group jammed in together like that. David McKenzie, I appreciate it. Thanks for your reporting.
Now, the decision to delay the summer Olympics was a real heartbreaker of course for athletes and fans, many of whom spent big money planning to go to the games. But the cost and the chaos, skyrocketing across Japan. Will Ripley is going to tell us about it, when we come back.
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HOLMES: Welcome back. Japan, preparing itself for the economic impact of delaying the Olympics over the coronavirus pandemic. But some had (inaudible), it could cost 10's of billions of U.S. dollars just to delay. For more on this, I'm joined by CNN's Will Ripley, live in Tokyo. I guess, it had to happen, but logistically, financially, a nightmare.
WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT: A financial tsunami. A super typhoon if you would, Michael. Because Japan was already on track to spend $20 billion hosting the Olympics, way over budget, and now we are speaking with economics who are telling us the cost of the coronavirus pandemic, combine with postponement, could be $36 billion more dollars.
(BEGIN VIDEOTAPE)
RIPLEY: No visit to Tokyo Asakusa neighborhood is complete without a ride on a rickshaw. But this year, almost no one is riding.
This is a lot of empty rickshaws here.
UNIDENTIFIED MALE: Yes, we have to fight. Like you know, the coronavirus.
RIPLEY: Finding customers is like fighting over scraps for rickshaw drivers like Yoshi Fuduyap. And now that Tokyo's 2020 is postponed at least until next year, the road ahead, is looking long and lonely.
Japan's tourism industry is bracing for an economic bloodbath. Millions of jobs, and billions of dollars are on the line.
When you combine postponing the Olympics, and the coronavirus outbreak, can you put a price take on how much that is going to cost Japan?
SAYURI SHIRAISHI, KEIO UNIVERISTY PROFESSOR: It is likely that the loss will be around 36 billion U.S. dollars.
RIPLEY: 36 billion U.S. dollars?
SHIRAISHI: The damage is quite big.
RIPLEY: Keio University professor, Sayuri Shiraishi, says that astronomical cost includes cancellations and maintenance fees for more than three dozen Olympic venues. Compensation's for thousands who already purchased condos in the Olympic Athletes Village, billions in broadcasting rights, and prepaid advertising.
SHIRAISHI: If we do it next year, we do not know how successful (inaudible) -- 2020 Olympics can be.
RIPLEY: More than four million tickets are already sold. Some seats costing up to $3,000.
$800 was your tickets? Wow.
UNIDENTIFIED MALE: Yes.
RIPLEY: Demanded so high, ticketholders like Kenji Fuma, had to enter a lottery. He wonders if his luck has run out.
[03:55:07]
Has anyone told you what is going to happen with your tickets?
KENJI FUMA, OLYMPIC TICKET HOLDER: Nothing yet. So, even the government didn't send any emails and didn't make any announcements. So, we are just waiting for next steps. RIPLEY: Fans are not the only ones waiting. Olympic organizers need
to sort out of mind-boggling jigsaw puzzle, resolving scheduling conflicts with other major sporting events, rescheduling Olympic qualifiers. Kaori Yamaguchi is a 1988 Olympic judo bronze medalist, and a member of Japan's Olympic committee. She knows, postponement has a huge impact on athletes.
If the games are delayed by a year, their training schedule drastically changes she says. But I think the athletes can handle it.
Yamaguchi says this is a marathon, not a sprint. The coronavirus crisis will end, the Olympics will go on. Japan will have its moment in the global spotlight.
(END VIDEOTAPE)
RIPLEY: Getting there is going to be tough, especially for small businesses here in Tokyo, Michael, which are facing the prospect of tourism evaporating, and even a possible lockdown for this city, if the coronavirus cases here continue to spike.
HOLMES: Yes. And to that point, I mean, Japanese people, are they taking it seriously? Are they taking it more seriously now that the Olympics are postponed? I mean, you are on Instagram showing people out and about looking at blossoms the other day.
RIPLEY: Look, a lot of people still have a pretty relaxed attitude, and that is a symptom, frankly, of their government being very relaxed about coronavirus for months. Not imposing the kind of firm restrictions on travel and on business. Bars and restaurants are open here. Yes, there are people, viewing the cherry blossoms at together. A lot of them are not wearing masks, but now the government post postponement is changing its tone.
They're taking this much more seriously, they are telling people to work from home, try to avoid unnecessary travel, and we are seeing that reflected. For example in Tokyo supermarkets, where a lot of the shelves are emptying out, it seems like panic buying is starting to set in. the neighborhood supermarket around the corner here. This where I live for four years, I've ever seen it as busy as I saw it yesterday, Michael.
So, it seems like Tokyo is waking up to the fact that this could be a very serious situation, especially if Japan actually starts to test more people. They are still testing just a tiny fraction when compared to a lot of other countries.
HOLMES: Yes. Good to have you there Will, thank you. Will Ripley there in Tokyo.
That will do it for us, thanks for your company, and for spending part of your day with us. I'm Michael Holmes, you've been watching CNN Newsroom, do stay with us. Robin Curnow will continue the news after a quick break, I'll see you tomorrow.
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