A look at China, the U.S. and Europe as the coronavirus leaves China relatively unscathed.
Joseph Carter, 27, carries a surfboard on the beach Tuesday, June 23, 2020, in Santa Monica, Calif.China is recovering. The infection curve has been flatlined. The U.S. can’t get out of its way.
For what it’s worth, there was never a first wave in Beijing. The entire coronavirus epidemic was contained to Hubei province. Cities outside of the province that got it never even cracked a thousand, if we are to trust China’s numbers. Public health officials said the outbreak linked to the Xinfadi food market in Beijing is “under control” after the city imposed lockdowns on neighborhoods where infections had been detected. They then traced and quarantined people who had come in contact with infected persons.
outbreak at a meat processor in Rheda-Wiedenbrueck, German authorities are restricting movement in the Guetersloh district. Another lockdown. Green shoots? Yes. But watch for signs of “wilting” say Barclays Capital economists led by Ludovico Sapio in London in a note to clients on Friday. A resurgence of new cases in North Rhine-Westfalia and a re-introduction of containment measures there highlights the fact that Covid-19 is unstoppable. Either we stay home until there is a vaccine and cancel all taxes, mortgage, rent and lease payments, or we go for herd immunity at this point and protect hospitals from surges. What is the other option?Covid-19 “will remain the most significant risk to euro area growth,” says Sapio, who thinks it contracts 7.8% in 2020.
Meanwhile, the economy is in the gutter, no matter what Larry Kudlow says on a Friday before market close. The second quarter is looking like it contracted by at least 36%.
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