Tokyo reports over 200 new cases for third straight day
Tokyo reported more than 200 new coronavirus cases on Saturday for the third straight day, according to Japanese media.
Kyodo News cited an official as saying there were 206 new cases — that’s lower than the record 243 cases on Friday and the 224 infections reported on Thursday. Japan on Friday eased guidelines for organizing large gatherings, including sporting events, despite rising concerns about a second wave, the news agency said.
There are 21,258 total reported cases in Japan, according to data from Johns Hopkins University. More than a third of the country’s confirmed cases — or 7,731 — are from Tokyo, JHU data shows. The country has reported 982 deaths so far. —Joanna Tan
Australia’s Victoria state reports more than 210 new cases
Victoria state in Australia reported 216 new coronavirus cases on Saturday morning, Reuters said, as new infections in the country’s second-most populous state continue to hover above 100 daily.
“It will get worse before it gets better,” said the Premier of Victoria, Daniel Andrews, according to the news agency. “We will see more and more additional cases. This is going to be with us for months and months.”
Just this week, Victoria put the capital city of Melbourne on lockdown after a new cases of community transmission surged, raising fears of a second wave of the infection. According to data compiled by Johns Hopkins University, Australia has reported 9,549 coronavirus cases and 107 deaths so far. –Joanna Tan
Data about jobs, restaurants and travel show the economic damage from the pandemic
The surge of coronavirus cases across the country is creating widespread economic damage, according to data tracking elements like job listings, dining and vacations, CNBC’s Jeff Cox reports.
“The state of the outbreak clearly still has the ability to influence economic outcomes,” said Ryan Preclaw, director of credit strategy for Barclays. “Economic damage appears to be spreading widely, regardless of where cases are concentrated.”
Job listings fell and are now at nearly 20% below what they were in February.
Meanwhile, a recent Jefferies survey showed 60% of the 1,800 respondents are planning to stay home this summer. Of those who plan to travel, 75% expect to drive. The data shows an “increasing fear of heading out to shop or enjoy entertainment, a sharp drop in expected travel and less optimism around a 2020 return to work,” Jefferies researchers said. –Suzanne Blake
The upcoming earnings season is expected to be the worst quarter of the pandemic
Wall Street is heading into a rough earnings season, with earnings expected to fall by 44% from coronavirus’s economic toll. This would be the worst quarterly performance since 2008 when S&P 500 profits fell by 67% in the fourth quarter, CNBC’s Patti Domm reports.
“Since so many companies aren’t giving earnings forecasts, investors won’t make moves based on earnings alone,” said Lindsey Bell, chief investment strategist at Ally Invest. “They’ll also be looking at trends since the quarter ended. Increasing coronavirus cases, management outlooks, and price performance could all have an outsized impact, and that could lead to outsized market moves.”
Tech company earnings are expected to fall by 8%, while energy companies have an expected drop of 154% and the consumer discretionary sector is expected to decline 114%, according to Refinitiv. —Suzanne Blake
San Francisco continues to pause business reopening plans
San Francisco Mayor London Breed and Director of Health Dr. Grant Colfax said the city will maintain a pause on reopening plans until key health indicators improve, according to a press release. Reopening began in the city on June 29.
The San Francisco Zoo and Gardens will be allowed to reopen July 13 with approved safety measures, the release stated. If facilities are able to operate with both clients and providers masked at all times, businesses that conduct haircuts, massages, tattoos, piercings, manicures and pedicures will next be considered for reopening.
All other activities and businesses previously scheduled to reopen will stay in a holding phase, according to the release, including indoor restaurants, outdoor bars, indoor museums, aquariums, outdoor swimming pools and real estate open houses.
San Francisco has reported 4,316 coronavirus cases and 50 deaths, according to data compiled by Johns Hopkins University. –Suzanne Blake
Georgia governor reopens field hospital after record-breaking jump in cases
One room at a temporary hospital is viewed at the Georgia World Congress Center, Thursday, April 16, 2020, in Atlanta. Georgia.
Ron Harris | Pool | AP
Georgia is planning to reopen a field hospital at Atlanta’s Georgia World Congress Center, according to Gov. Brian Kemp’s office, which first turned one of its exhibit halls into a 200-bed makeshift alternative care facility in April. Officials closed the facility in May, but the state has since reported record-breaking jumps in additional new Covid-19 cases since mid-June.
“Over the past two weeks, we have experienced an increase in cases and hospitalizations, and following a drop-off in specimens collected over the holiday weekend, we now expect a trend of higher case numbers as new results arrive,” a release from Kemp’s office said.
The Georgia Department of Public Health reported 4,484 new cases Friday, a record-breaking daily tally. Most of the state’s cases are being reported in four counties in the greater Atlanta area. There were more than 2,300 people in the state’s hospitals with Covid-19 as of Thursday, according to data from the Covid Tracking Project, an independent volunteer organization launched by journalists at The Atlantic. —Noah Higgins-Dunn
Retail sector’s first quarter operating income fell 57.7% compared to last year, report finds
Shoppers wearing protective masks browse clothing at a store at Westfield San Francisco Centre in San Francisco, California, U.S.
Michael Short | Bloomberg | Getty Images
The retail sector’s first-quarter operating income fell 57.7% compared with last year – and 71.1% when not including Walmart, which was allowed to keep operating to sell essential items like food, a new report from Retail Metrics said Friday. This marks the worst retail earnings performance since the group began tracking retail earnings in the late 1990s.
The previous low for retail earnings came during the Great Recession, when earnings landed down 26.6% year over year in the fourth quarter of 2008, and the largest quarterly decline that followed the dot-com bubble was a drop of 11.7% in the fourth quarter of 2000, according to Retail Metrics. Gaps in earnings have also widened between mall and non-mall stores due to the closures caused by the coronavirus.
In response to the difficult quarter, many companies have taken cost-saving measures such as furloughing workers or closing stores. Some businesses, on the other hand, closed permanently due to the pandemic’s effect on the sector. –Alex Harring
Deaths tick up in Florida, Texas, California, Arizona
Coronavirus deaths appear to be on the rise in several hot-spot states, including Florida, Texas, California and Arizona as officials struggle to turn around expanding outbreaks there.
As cases have skyrocketed in a number of states over the past few weeks, deaths due to Covid-19 have continued to fall or remained relatively stable during that time. But the daily death toll appears to be on the rise again in the U.S., epidemiologists say.
“This was predictable. We seem to have had difficulty in this country looking a few weeks in advance,” Larry Levitt, executive vice president for health policy at the Kaiser Family Foundation, told CNBC. “But we know the pattern that as more people get infected, more people get hospitalized and ultimately more people die.” —Will Feuer
California to release some prisoners early due to coronavirus
A California Department of Corrections and Rehabilitation (CDCR) officer wears a protective mask as he stands guard at the front gate of San Quentin State Prison in San Quentin, California.
Justin Sullivan | Getty Images
More than 8,000 inmates are eligible to be released from California prisons under an early release program next month to improve prison safety during the coronavirus crisis, according to the Sacramento Bee.
California already saw an outbreak in San Quentin in Marin County of more than 200 staff and 1,300 prisoners, NBC Bay Area reported.
Prisoners on death row or serving life sentences without the possibility of parole and those guilty of severe rules violation since March 1 are not eligible. –Suzanne Blake
New York to send coronavirus medication Remdesivir to Florida
New York will send the Covid-19 medication Remdesivir to Florida as it deals with a surge of cases, New York Gov. Andrew Cuomo said today.
The medication supplied by New York will arrive Saturday and can help care for 280 patients as Florida currently waits for more from the federal government.
“When New York was climbing the Covid mountain with no end in sight and resources were scarce, we were incredibly moved by the generosity of states around the country that stepped up to provide supplies and medical personnel in our time of need,” Cuomo said. –Suzanne Blake
WHO says it’s ‘very unlikely’ countries can eradicate the coronavirus right now
Dr. Mike Ryan, executive director of the World Health Organization’s health emergencies program, said it’s “very unlikely” countries across the globe can eradicate the coronavirus, even those that have seemingly been able to control the disease. Some may need to reinstate some lockdown measure as clusters of cases quickly become outbreaks that spread like “a forest fire,” he said.
“In our current situation, it is very unlikely that we can eradicate or eliminate this virus,” Ryan said. “We’ve seen countries that have managed to get to zero or almost zero re-import virus from outside, so there’s always a risk.”
The organization is particularly concerned about “super-spreading events,” which are large gatherings of people where the virus can transmit rapidly, Ryan said. “It’s very analogous to a forest fire,” Ryan said. “A small fire is hard to see but easy to put out. A large fire is easy to see but very difficult to put out.” —Noah Higgins-Dunn
Trump’s rift with White House health advisor Fauci widens
President Donald Trump criticized his top infectious disease advisor Dr. Anthony Fauci this week, telling Fox News on Thursday that he’s “a nice man, but he’s made a lot of mistakes,” and widening an apparent rift between the two. In a separate interview, Fauci, director of the National Institute of Allergy and Infectious Diseases, told the Financial Times that he hasn’t briefed the president on the cornoavirus in at least two months and hasn’t seem him at the White House since early June.
It’s not the first time Trump has contradicted or criticized advice from the White House coronavirus task force, which is led by Vice President Mike Pence. Fauci has consistently warned about the escalating dilemma facing the U.S. as daily new cases continue to top records. He reiterated his concern in an interview on Facebook Live on Tuesday. “We are still knee deep in the first wave” of Covid-19 infections, he said. When asked later Tuesday about Fauci’s assessment of the pandemic Trump replied, “I disagree with him.” — Noah Higgins-Dunn
An unprecedented eviction crisis is on its way
As state moratoriums on evictions come to an end, about 28 million Americans could be thrown out of their homes, a leading expert on evictions said. For comparison, 10 million people in the U.S. lost their homes in the Great Recession.
CNBC spoke with Emily Benfer, chair of the American Bar Association’s Task Force Committee on Eviction and co-creator of the Covid-19 Housing Policy Scorecard with the Eviction Lab at Princeton University, about the incoming crisis and what could be done to make it less devastating. –Annie Nova
Masks are the most important thing for the economy now, Fed official says
Wearing masks is more important for the economic recovery at this point than fiscal or monetary policy, according to Robert Kaplan, president of the Federal Reserve’s Dallas district.
“If we all wore a mask, it would substantially mute the transmission of this disease and we would grow faster,” the central bank official told Fox Business.
The Fed and Congress have provided unprecedented levels of support for the economy, but Kaplan said making sure the coronavirus is contained now is critical. He expects growth to pick up in the second half, but said halting the disease through mask-wearing is “the primary economic policy.” —Jeff Cox
Carnival jumps after saying future demand remains strong
Shares of Carnival surged 9.5% after the cruise operator said it is seeing demand for voyages in 2021, with the majority of bookings being new and not from rescheduling, and will restart voyages from Germany in August. The company also said on a conference call that it can be cash flow break even at a capacity between 30% and 50%, CNBC’s Seema Mody reports. — Jesse Pound
OSHA lacks leadership as the U.S. begins reopening, unions charge
A Tyson Foods employee puts on a second protective mask outside of the company’s meat processing plant, which has been hit by a coronavirus disease (COVID-19) outbreak, in Waterloo, Iowa, U.S.
Jeffrey Becker | USA TODAY NETWORK | REUTERS
Occupational health is a major issue as businesses look to bring workers back, but concerns being played out through a lawsuit highlight worries that there are not strong enough protections in place for workers, CNBC’s Tim Mullaney reports.
Unions, namely the AFL-CIO, have raised red flags with the Trump administration over the leadership of the Occupational Safety and Health Administration, or OSHA. The top position at the OSHA has remained unfilled since President Donald Trump took office.
OSHA has issued only one citation for violations of workplace safety laws related to Covid-19, according to its own testimony to Congress. The citation involved a Georgia nursing home that failed to report that a staffer had been hospitalized.
The AFL-CIO has also asked for emergency rules for the pandemic. The dispute between the unions and government over temporary protections has gone into the appeals court system, as the AFL-CIO has asked for an appeal of the original ruling, which sided with OSHA. –Alex Harring
Gilead says remdesivir reduces risk of death in some patients
Gilead Sciences announced new findings on additional clinical benefits of its antiviral drug remdesivir, saying that it cut the risk of death for severely ill coronavirus patients by 62% compared with standard care alone.
The company said the findings come from a comparative analysis of two different cohorts of similar characteristics and disease severity. However, Gilead said its findings warrant further study and independent confirmation.
The findings show that 7.6% of patients treated with remdesivir died compared with 12.5% of patients in the analysis who did not receive remdesivir treatment. The analysis also found that 74.4% of patients who received treatment with remdesivir recovered by day 14 compared with 59% of patients who received standard care alone. —Will Feuer
As many as 1 in 150 people in the U.S. are infected, Dr. Gottlieb estimates
Dr. Scott Gottlieb, commissioner of the Food and Drug Administration
Dr. Scott Gottlieb, the former Food and Drug Administration commissioner, said on CNBC’s “Squawk Box” he believes as many as 1 in 150 people in the U.S. are infected with the coronavirus.
“We must have well over 700,000 infections a day, even though we’re only diagnosing about 60,000,” said Gottlieb, who added that when the U.S. had about 20,000 new diagnosed infections per day, about 1 in 200 people were actually believed to be infected. “Now, it must be higher than that.”
Gottlieb said he wishes the U.S. had a more coordinated response to the rising infection levels, suggesting strategies in places like Texas and Florida present risk to states in the Northeast and in Michigan that “sought to crush the virus like the Asian nations, like Western Europe.”
“This is going to be a difficult task for the states that want to try to persevere the gains they made, paying a pretty big sacrifice to crush the virus, to have it not be reimported back into those states in meaningful numbers and see epidemics heading into the fall,” said Gottlieb. —Kevin Stankiewicz
Disclosure: Scott Gottlieb is a CNBC contributor and is a member of the boards of Pfizer, genetic-testing start-up Tempus and biotech company Illumina.
Stocks open flat as promising coronavirus treatment news offsets spike in cases
U.S. stocks opened along the flatline as traders weighed positive news about a potential coronavirus treatment and another record spike in virus cases, reports CNBC’s Fred Imbert. The Dow Jones Industrial Average traded just 10 points higher, or less than 0.1%. The S&P 500 and Nasdaq Composite were also flat. —Melodie Warner
U.S. producer prices unexpectedly fall in June
U.S. producer prices unexpectedly fell in June as depressed demand amid the Covid-19 pandemic battered the economy.
The Labor Department said its producer price index for final demand dropped 0.2% last month after rebounding 0.4% in May, Reuters reported. In the 12 months through June, the PPI declined 0.8% after decreasing 0.8% in May.
Economists polled by Reuters had forecast that the PPI would climb 0.4% in June and fall 0.2% on a year-on-year basis. —Melodie Warner
Virus ‘most likely’ transmitted through particles in air, health officials say
The coronavirus is “most likely” transmitted through particles in the air, according to the European Centre for Disease Prevention and Control.
Josep Jansa, group leader of response at the ECDC, told CNBC’s “Squawk Box Europe” on Friday that it was “most likely there is potential for aerosol transmission” of Covid-19. He added that the ECDC had never discarded this as a possibility, and said there was evidence the coronavirus had spread more easily in closed environments or when people participated in activities like choir singing.
The World Health Organization said this week it is reviewing new evidence on whether Covid-19 can spread through particles in the air.
The ECDC, which expects coronavirus cases to begin to rise again in Europe in coming months, recommends wearing face coverings, combined with other prevention measures, to mitigate the spread of the disease.
“It has to be a combination because using masks and putting that as the main and central measure can bring this false sense of safety,” Jansa told CNBC. “(People think) ‘while I’m using a mask I don’t need to do anything else,’ and that’s not the case. So, clear ventilation of spaces, respiratory etiquette, together with the other measures, that’s the way forward.” —Chloe Taylor
Italy PM says state of emergency likely to extend beyond July 31
Italian Prime Minister Giuseppe Conte has warned that the country will likely need to extend its state of emergency beyond the current deadline of July 31.
The prospect of an extension means Italy will be able to remain “in a position to continue taking the necessary measures,” Conte said, according to Reuters.
The euro zone’s third-largest economy had declared a six-month state of emergency at the end of January, paving the way for the government to act quickly to respond to the coronavirus outbreak.
Italy has recorded over 240,000 cases of the coronavirus, with 34,926 related deaths, according to data compiled by Johns Hopkins University. —Sam Meredith
Nevada to reimplement restrictions on bars
A Nevada Highway Patrol officer directs vehicles as they wait in line on streets around Boulder Station Hotel & Casino to get into a drive-thru Three Square Food Bank emergency food distribution site in response to an increase in demand amid the coronavirus pandemic on April 29, 2020 in Las Vegas, Nevada.
David Becker | AFP via Getty Images
Nevada plans to reshutter bars in certain counties with growing outbreaks, Gov. Steve Sisolak announced.
The order, which has not yet been issued, would take effect at 11:59 p.m. Friday, Sisolak said late Thursday. He added that the order will reimplement restrictions similar to those seen under phase one of the state’s reopening plan in which they were allowed to remain open for curbside pickup.
“We know COVID-19 can easily spread when people are congregating for long periods of time,” Sisolak said in a tweet. “Recently, Dr. Fauci, the US’s top infectious-disease expert, advised congregating in bars is one of the most dangerous things people could do. We must heed his advice.” —Will Feuer
Read CNBC’s previous coronavirus live coverage here: India sees record daily rise in cases, Hong Kong to close all schools