The coronavirus outbreak in the United States remains an urgent issue where many areas of the nation need to make social changes to bring the infection's spread to a controllable level. That is, at least, according to a new federal report sent out from the White House's coronavirus task force to state officials this week. The federal report, obtained and reported on by The New York Times, outlines that the number of states with outbreaks so severe that they are categorized in the "red zone" has grown to 21. The report urged local officials in those states to institute more social restrictions in response to the untamable outbreak.
Meanwhile, Dr. Anthony Fauci, the United States' top infectious disease expert, warned on Tuesday that states in the Midwest section of the country increase their daily infection rates to similar levels seen in Southern states like Florida and Texas, if they do not plan a careful reopening effort.
"Other states...are starting to have that very early indication that the percent cases regarding the number of tests you have, that percent is starting to go up, that's a surefire sign that you've got to really be careful," Fauci told ABC's "Good Morning America" on Tuesday morning. "I think we can prevent the surges that we've seen in the Southern states because we just can't afford yet again another surge.
Defense Production Act
U.S. President Donald Trump on Tuesday announced a deal to work with photography company Eastman Kodak (NYSE: KODK) to produce pharmaceutical ingredients for generic drugs in the United States to help support the nation's supply chain amid the pandemic. The U.S. government awarded the company with a $765 million loan to start production of the drug supplies under the Defense Production Act.
"Our 33rd use of the Defense Production Act will mobilize Kodak to make generic, active pharmaceutical ingredients," Trump stated during a Tuesday evening coronavirus press conference. "We will bring back our jobs and we will make America the world's premier medical manufacturer and supplier."
Extended Recovery Time
The International Air Transport Association (I.A.T.A.) announced on Tuesday more negative news towards the travel industry's recovery from the coronavirus pandemic. The I.A.T.A. stated that it would take global airlines until 2024 for passenger traffic to return to pre-pandemic levels, which is a year longer than the association previously forecasted.
The association stated that slow virus containment in the United States, as well as other parts of the world, and a weaker outlook for corporate travel were the main driving factors behind the extended recovery time. Closed borders and new restrictions for travelers have also caused the I.A.T.A. to cut its passenger number forecast for 2020 by a 55% decline.
"The second half of this year will see a slower recovery that we'd hoped," I.A.T.A. Chief Economist Brian Pearce stated, quoted by Reuters. "It will remain to be seen whether we see a recovery to pre-crisis business travel patterns. Our concern is that we won't."
Premium business travel held a large portion of profitability for most airlines before the pandemic. Seen as part of the cost of doing business, companies did not shy away from booking last minute flight and first class seating for employees set to meet with clients. Now, in a new normal where meetings are becoming more cost effective and popular to be held over video chat, the future of business travel remains uncertain.