Coronavirus Pandemic; Sweden Insists Keeping Economy Open Is Right Approach; Greece To Ease Lockdown Measures Starting May 4
TOM FOREMAN, CNN CORRESPONDENT: -- and they are closed. Restaurants are bustling and silent too. You can get your nails done or maybe not.</s>ROSEMARY CHURCH, CNN ANCHOR: Confused? Well, it's far from an open and shut case. As this hour, we explore the global struggle to balance between staying home and the urge to get back to normal. Then. That choice less easy in Lebanon than almost anywhere else as the virus fuels ongoing anger and protest of a rising hunger and poverty. And we look at how South Africans are learning from the HIV epidemic to fight today's global pandemic. Well, after weeks of lockdown restrictions, leaders around the world face one of the biggest decisions in a generation, to lift lockdown measures and risk the further spread of the coronavirus, or keep lockdowns in place and push their economies further into Great Depression misery. Well, the number of coronavirus victims keeps rising, and you can see the numbers on the right. More than three million people have been infected around the world, with about a third of them right here in the United States. More than 58,000 people have died in the U.S., despite that a growing number of states are taking steps to lift restrictions. Even California, which adopted some of the earliest and toughest lockdown measures, could soon reopen some businesses and schools. Here is Governor Gavin Newsom speaking on Tuesday.</s>GOV. GAVIN NEWSOM (D-CA): Around businesses, and around issues of schools and childcare centers, I want to make this clear. We believe we are weeks, not months, away from making meaningful modifications to that indicator and in this space. Weeks, not months.</s>CHURCH: Now, this isn't just an American phenomenon. Of course, in Europe, two of the countries hardest hit by the virus are looking to get their economies back up and running. Starting May 11th, France will begin lifting some of its lockdown measures. And before that, still starting on Monday some stores and restaurants will be allowed to reopen in Spain. But in other countries, lockdown measures continue to be extended. And in some cases, we are seeing the economic effects of the pandemic boil over into chaotic scenes. Hunger protests in Lebanon have turned violent in several major cities. And you can see demonstrators here throwing rocks and Molotov cocktails at banks in the city of Tripoli, and clashing with security forces. The country was already in economic freefall. And now, a government- imposed lockdown over the coronavirus is sending food prices through the roof. The government believes nearly three quarters of the population is in need of financial aid. So, let's get more now on the impact of all of this with our correspondents Jomana Karadsheh, normally based out of Istanbul for CNN. She joins us now. And John Defterios, our emerging markets editor in Abu Dhabi. Good to see you both. So, Jomana, let's start with you. I do want to get an idea of the latest information you have on these hunger protests and what the government is planning to do to help the people who do need food and other basic necessities.</s>JOMANA KARADSHEH, CNN CORRESPONDENT: Well, Rosemary, we have heard from Lebanese media and people on the ground saying that the protests have continued for another night in several Lebanese cities in the capital Beirut. People marched there. They also protested outside the Central Bank headquarters. Also, some dramatic scenes in the south in the city of Sidon. But the most intense and violent protests continue in the northern city of Tripoli. That is Lebanon's poorest country. There are hundreds of protesters gathered in the evening outside the Central Bank headquarters there. They lobbed rocks and Molotov cocktails at that building. They clashed with security forces who are using rubber bullets and tear gas to try and disperse those protesters. And according to health officials on the ground, they say that several protesters were injured. Some were treated on the scene, others taken to hospital. It's a very desperate situation there, Rosemary. As you mentioned, the economic situation in the country, the country's economy has always been fragile in recent months, as we have seen since the country's popular uprising back in October, it has really been struggling. So, it's been hit really hard. Like other economies around the world by the lockdown, by the shutdown that happened with the coronavirus pandemic. And people there say they are fed up, they are desperate, they are hungry, they are unable to pay rent, feed their children. So, they are back on the streets right now, putting the government in a very tough position right now. And you know, if you look at the figures before the pandemic, the World Bank was estimating that, projecting that about 45 percent of Lebanon's population would be below the poverty line in 2020. Following the crisis, we are hearing from government officials now that they expect 75 percent of all Lebanese are going to require financial aid now. Rosemary.</s>CHURCH: Unbelievable. And John Defterios, let's go to you now. Just how volatile is this situation in Lebanon? And what are the concerns across the region given the impact this pandemic is having on the global economy?</s>JOHN DEFTERIOS, CNN BUSINESS EMERGING MARKETS EDITOR: Yes. Lebanon is a prime example, I think, Rosemary, of what not to be doing right now in an economic crisis, because as Jomana was suggesting, it contracted six and a half percent in 2019. And the International Monetary Fund has said that it's going to be double that negative 12 percent in 2020. It has the third highest debt of GDP level of banking system that's under strain and rising food costs because the lira is plummeting right now. And that's why you have protesters on the street. But there is a common link here in the broader region because of lower oil prices. They have all hurt these economies because they benefited from the higher prices of $60 or above. Ten to 20 dollars just doesn't work. And in 2019, we saw a protest in Iraq, Iran, Algeria, Sudan, and Lebanon. So, no surprise they are going to be the first to get hit again with high tensions and high youth unemployment. In fact, the regional director of the International Monetary Fund said we are in uncharted territory. A disaster not just for the region, but globally. And we are going to get a snapshot today from the United States in the Q1, the front end of what they say is the second and third round of challenges, according to the IMF, in 2020. An economic adviser to the White House spoke to us yesterday ahead of this Q1 report. Let's take a listen.</s>UNIDENTIFIED MALE: The GDP tomorrow will probably be a negative number. And then that will be just the very tip of the iceberg. A few months of negative news, it's unlike anything you've ever seen.</s>DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: Third quarter, it's obviously a transition quarter. But I think it's going to be OK. Maybe better than OK. And then I think fourth quarter will be great. And I think next year is going to be tremendous year for this country.</s>DEFTERIOS: For our viewers that are watching there, you saw that the president left out the second quarter. That's the Great Depression. A loss of probably, Rosemary, between a third to 35 and 38 percent of GDP. So, the first quarter results maybe as much as a negative 9 percent. Four times that amount in the second quarter. Not surprising that the president wanted to skip over the worst of the bad news that the Americans are facing right now.</s>CHURCH: Yes, absolutely, I mean, just horrifying the possibilities there. And Jomana, just quickly to you, in the U.S. we are seeing people lining up at food banks. Is there any equivalent in Lebanon? Any safety net to help people get through this difficult time?</s>KARADSHEH: The government says that it is working on a plan, Rosemary, that they are going to try and deliver aid to people. That they are going to try and, you know, put together a list of people who will require support from the government. But the situation is complicated there by the politics of that country. And that is one of the main reasons why you see people so angry and so frustrated with their government, something that triggered those anti- establishment protests late last year. You know, some aid deliveries, we're told, were delayed because of political wrangling in the country in recent days. And it's not just the Lebanese people. It's who require support in terms of providing them with food right now with that sort of aid, Rosemary. We are also talking to some migrant workers in that country who are stranded. About 250,000 domestic workers in that country from Asia and from African countries too. And their situation is quite desperate, too. You know, I spoke to some women recently who say that basically they don't know how they are going to feed their children. They are right now, getting charity, some aid from various organizations. You know, some advocacy groups have turned for the first time ever into food aid deliveries to try and assist people there. So, it's a very complicated situation on the ground. The government says this is a very difficult situation. But they are promising to try and work through it. Of course, all complicated by Lebanon's politics as always, Rosemary.</s>CHURCH: Yes, absolutely. And of course, the domino effect is just horrendous. John, just back to you. We are learning that British Airways may be forced to cut 12,000 jobs due to a collapse in business from the pandemic. The airline says it needs to restructure the company in order to weather this crisis. Its parent company, AIG, which also includes Spanish Airline Iberia, reported $579 million in first quarter operating losses. And it warns losses in the second quarter will be significantly worse. So, John, this news comes as flight bans and other restrictions are threatening to bankrupt airlines around the world. How bad do you think this will get?</s>DEFTERIOS: Well, if you are going to pick a sector that's at the eye of the hurricane of the coronavirus, this is it, the airline sector for what you are talking about, Rosemary. The business travel is nearly dried up. Many citizens around the world, I would say 95 percent have not made any plans for the summer months because we don't even know if their destinations are going to be open. So, I don't think it's surprising that be ahead or push ahead with the restructuring by the parent group AIG, and the other carriers will be facing the same. That's about 30 percent of their workforce, as you're suggesting. We know that Air France is under pressure. Same thing with Lufthansa in Germany. And the European Union is trying to divide something similar to the United States, how do you help these former state carriers that are now private companies and trade publicly, in some instances, to get through what is a huge, huge storm. Now in the United States the bailout is in two trenches. Fifty billion dollars overall, 25 billion each time. Low interest rate loans because the president, President Trump thought this was very vital when the economy opens up again. So, you had this commerce. You have business moving again. They haven't landed on that in Europe, but we know the layoffs are right with us as we speak because of that second quarter I talked about.</s>CHURCH: Yes. Such a concern. John Defterios and Jomana Karadsheh, thank you both of you for joining us and for those live reports. I appreciate it. And as these hunger protests rage in Lebanon, in the United States, President Donald Trump is trying to keep the food supply chain afloat. He signed an executive order under the Defense Production Act, compelling large meat processing plants to remain open during this pandemic. The move comes as many people across the country are struggling to put food on the table. In Arkansas, residents waited in a long line of cars to take part in a drive-up food distribution, but the supply couldn't actually meet the demand. The food banks says it ran out of food just one hour into that event. Well, governors are trying to get their states back up and running, but their plans are all over the place. John Foreman -- Tom Foreman, rather, has the story.</s>FOREMAN: The beaches are open and they are closed. Restaurants are bustling and silent too. You can get your nails done or maybe not.</s>MAYOR GLENN JACOBS, KNOX COUNTY, TENNESSEE: You can't keep the economy dormant. A lot of people are suffering.</s>FOREMAN: Amid calls to reopen the American economy states are responding. And a patchwork of rules are spreading as haphazardly as the virus itself, making it hard to know what is being enforced by whom and where. Take Tennessee where counties are getting to decide.</s>UNIDENTIFIED MALE: We're just glad to be back.</s>FOREMAN: Andy Martial (Ph) is confident social distancing will keep everyone healthy at his grocery and eatery. But a short drive away.</s>CHRISTOPHER HARTLAND, OWNER, COOL SPRINGS BREWERY: Business was down 90 percent.</s>FOREMAN: Christopher Hartland knows about the rules limiting seating and recommendations for masks. But he knows this too.</s>HARTLAND: Many restaurants who have enforce them which means people will go to the other restaurants that aren't enforcing them and seat thereby and be served by people without masks. I just don't feel comfortable opening up.</s>FOREMAN: In Florida, the governor was stung by criticism of overflowing beaches early on. Now he's crowing about ending the lockdown in a few days.</s>GOV. RON DESANTIS (R-FL): Everyone in the media was saying Florida was going to be like New York or Italy. And that has not happened.</s>FOREMAN: Nearby, Georgia's governor is pushing the most aggressive reopening plan and like some other governors, overriding local rules to the contrary. Happy business owners are promising to follow safety advice.</s>NJERI BOSS, DIRECTOR OF PUBLIC RELATIONS, WAFFLE HOUSE: You want to be here to make sure that everybody who wants to and has the opportunity to can take care of themselves and their family. That's the American way.</s>FOREMAN: But the move is terrifying those who fear a resurgence of the virus could soon follow and overwhelm hospitals.</s>MAYOR KEISHA LANCE BOTTOMS (D-GA): What we are essentially saying in Georgia is go bowling and we'll have a bed waiting on you. That's not what our approach should be to COVID-19.</s>FOREMAN: From community sports to elective medical procedures, to limited retail sales. It's all coming back here and there in fits and starts. Met with everything from go slow determination in Massachusetts where reopening plans were just delayed.</s>MAYOR MARTY WALSH (D), BOSTON: We can't afford to make any mistakes.</s>FOREMAN: To frontier fatalism in South Dakota where the governor was given a makeshift parade for her efforts to keep the state open come what may.</s>GOV. KRISTI NOEM (R-SD): This virus will spread more. There will be more positives, which is just a fact that we need to realize will happen.</s>CHURCH: Well the issue of states reopening versus remaining close is the top political question at the moment. CNN politics senior writer Zachary B. Wolf looks at what reopening economies might mean for infections. And he does this by looking at Sweden, which never shut down its economy. And you can find his analysis at cnn.com. Well, the U.S. President makes a new claim about coronavirus testing, as the country crosses one of its bleakest milestones yet. We'll have more after this short break. Stay with us.