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June 24, 2021 - Brief Issue 219

The Coronavirus Daily Brief is a daily news and analysis roundup edited by New America’s International Security Program and Arizona State University.

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Top Headlines

CDC Looks Into Reports of Minor Cardiac Issues In Recipients of Pfizer-BioNTech and Moderna Vaccines; FDA To Add Warning to Fact Sheets (Health & Science)

Delta Variant Will Highlight Poorly Vaccinated Regions in U.S. (Health & Science)

Covax Gets a Shake Up (Around the World)

Sydney Cluster Worries Australian Officials (Around the World)

U.S. Seizing Unauthorized Versions of Covid Drugs Bound for Mexico (U.S. Government & Politics)

As Low Interest Rates Drive Many Homeowners to Refinance, Racial Disparity Apparent (U.S. Economy)

Morgan Stanley’s New York Office Will Ban Unvaccinated Staff and Clients (U.S. Society)

Health & Science

There have been 33,577,714 coronavirus cases in the United States, and 602,837 people have died (Johns Hopkins). The United States has administered 319,872,053 vaccine doses, with 53.6% of Americans having received their first vaccine dose and 45.4% fully vaccinated (U.S. CDC). Worldwide, there have been 179,606,727 confirmed cases of coronavirus, with 3,892,076 deaths.

CDC Looks Into Reports of Minor Cardiac Issues In Recipients of Pfizer-BioNTech and Moderna Vaccines; FDA To Add Warning to Fact Sheets

On Wednesday, CDC advisers met to examine reports of minor cardiac issues among some recipients of the Pfizer-BioNTech and Moderna vaccines (NYT). During the meeting, a Food and Drug Administration official said the FDA would add a warning to its fact sheets on the vaccines regarding the issue (Politico). Doran Fink, Deputy Director of the FDA’s vaccine division said during the meeting, “Based on the available data, a warning statement in the fact sheets for both health care providers and vaccine recipients and caregivers would be warranted in this situation.” The New York Times writes, “The reports involve conditions called myocarditis, inflammation of the heart muscle; and pericarditis, inflammation of the membrane surrounding the heart. Most cases have been mild, with symptoms like fatigue, chest pain and disturbances in heart rhythm that quickly clear up. The agency is tracking nearly 800 reports, although not all have definitively been linked to the vaccines.” More than half of the reports are from young Americans aged 12 to 24 despite that age group making up only nine percent of the vaccinated population.

Delta Variant Will Highlight Poorly Vaccinated Regions in U.S. 

As the Delta variant spreads rapidly throughout the United States, the divide between well-vaccinated areas and those with low vaccination rates will grow, with hospitalization and infection rates occurring in localized pockets of the country where the majority of people have not been vaccinated. Currently, the highly transmissible variant is taxing hospitals in a rural part of Missouri where the minority of the population is vaccinated. Caseloads and hospitalizations are on the rise in Arkansas, Nevada, and Utah, where less than 50% of the eligible population has received at least one dose. As we covered in a brief earlier this week, Scott Gottlieb, a a former head of the Food and Drug Administration, said Sunday that a fall surge could occur even if 75% of the eligible population is vaccinated. Many health experts agree but believe the surge could be focused on under-vaccinated communities. At a briefing by the White House Covid-19 Response Team on Tuesday, Anthony S. Fauci, the nation’s top infectious-disease specialist, said “there is a danger — a real danger — that if there is a persistence of a recalcitrance to getting vaccinated, that you could see localized surges, which is the reason why I want to emphasize what all four of us have said: All of that is totally and completely avoidable by getting vaccinated.” In general, rural and Republican areas have been slower to embrace vaccination compared to cities and Democratic states in the Northeast and along the West Coast. 

Bonus Read: “Seattle Scientist Digs Up Deleted Coronavirus Genetic Data, Adding Fuel to the Covid Origin Debate,” (WaPo).

Around the World

Bonus Read: “The deadly black fungus striking India’s recovering covid patients,” (WaPo).

Covax Gets a Shake Up

The global vaccine equality initiative co-led by the World Health Organization and Gavi, Covax, is planning a shake up after failing to meet its target of delivering 2 billion doses by the end of the year (Reuters). Originally, Covax was meant to act as a clearing house for the world’s vaccines by collecting them from manufacturers in developed countries and quickly distributing them to those in need. But Covax has been largely shunned by rich countries and it has not been able to meet the needs of the poorest countries, with its distribution of vaccines to poor countries barely reaching the 90 million mark. According to a paper prepared by Gavi and seen by Reuters, the overhaul of Covax is meant to “reduce COVAX's financial risks, increase its focus on the countries most in need and reduce the participation of richer countries as both donors and recipients.” A spokesman for Gavi said, "The suggestion is, subject to Board approval, to focus COVAX's procurement efforts on all SFPs (self-financing participants) that will continue to need the facility, in such a way that enables simplified operations and reduced financial risks, based on the lessons learned over the past year."

Sydney Cluster Worries Australian Officials

Sydney was going through one the “scariest” times of the pandemic as a cluster of the highly contagious Delta variant infects more people, an Australian state leader said on Thursday (AP). Sydney tightened its pandemic restrictions on Wednesday in response to the cluster, which authorities said spread from a Sydney airport limousine driver who tested positive last week. The driver was not vaccinated and reportedly did not wear a mask while transporting foreign air crew. As of Thursday, the cluster had grown to 36 people. New South Wales Premier Gladys Berejiklian told reporters, “Since the pandemic has started, this is perhaps the scariest period that New South Wales is going through,” but adding, “It is a very contagious variant but at the same time we are at this stage comfortable that the settings that are in place are the appropriate settings.” 

Indonesia Jails Cleric for Spreading False Covid-19 Information

On Thursday an Indonesian court jailed hardline Islamic cleric Rizieq Shihab for four years for spreading false information in a video saying he was healthy despite having tested positive for Covid-19 (Reuters). The verdict follows an eight-month jail term handed down to the cleric last month for breaching coronavirus curbs over mass events, one of which was his daughter’s wedding and was attended by thousands of people. The most recent video was posted on the YouTube channel of the hospital where Rizieq was being treated. The judge in the case said Rizieq was guilty of "announcing false information and purposefully causing confusion for the public." Hundreds of Rizieq’s supporters gathered outside the courthouse to protest the ruling. Indonesia passed the 2 million mark in coronavirus cases on Monday, as authorities announced a tightening of restrictions to contain the spread in the world's fourth most populous country. Deaths from COVID-19 now total 55,594.

U.S. Government & Politics

U.S. Seizing Unauthorized Versions of Covid Drugs Bound for Mexico

The United States has seized multiple shipments of counterfeit and unauthorized generic Covid drugs bound for Mexico (WSJ). The Wall Street Journal reports, “Counterfeit or generic versions of remdesivir, an antiviral manufactured by Gilead Sciences Inc., are arriving in the U.S. by plane from Bangladesh and India and being smuggled by individuals to Mexico for patients willing to pay top dollar for the drugs, people familiar with the investigation said. In recent months, U.S. Customs and Border Protection officers have captured more than 100 shipments that they referred to U.S. Department of Homeland Security special agents for further investigation, according to the people.” Generic versions of remdesvir are not licensed for use in the United States or Mexico and are illegal to import into the United States. Demand for remdesvir is high in Mexico, which only authorized the drug in March. However, distribution in Mexico is limited, helping create the conditions for the importation of counterfeit and unauthorized versions. The Journal writes, “Under Mexico’s authorization, state governments may purchase Veklury and patients can access the drug through local government healthcare providers, a company spokesman said. He said that Gilead hopes to gain full approval, which would expand supply to the private sector.” Veklury is the brand name under which remdesvir is sold.

Biden to Allow Cities to Use Covid Aid to Hire Police

On Wednesday, the Biden administration released its crime strategy with President Biden speaking on the strategy. Part of the administration’s strategy is emphasizing that it will allow states and localities to use Covid relief funds to hire police, including hiring that raises the number of police above what it was before the pandemic (WSJ). The announcement comes amid reports of increased violent crimes over the pandemic that have found resonance within the administration.

U.S. Economy

As Low Interest Rates Drive Many Homeowners to Refinance, Racial Disparity Apparent

Low interest rates amid the pandemic have encouraged millions of American to refinance their homes. However, according to a report from researchers at the Federal Reserve Banks of Atlanta, Philadelphia, and Boston, data on refinancing rates shows a substantial racial disparity with few Black and Latino Americans refinancing (WSJ). The Wall Street Journal writes of the report’s findings, “From January to October of last year, only 6% of Black borrowers refinanced their mortgages, versus 12% of white borrowers” and “14% of Asian borrowers refinanced, while borrowers who identified as Latino clocked in at 9%.” The Journal adds, “Of an estimated $5.3 billion of savings for all households that refinanced during the 10-month period examined in the Fed report, only $198 million, or 3.7%, went to Black households.”

May Consumer Price Index Sees Largest Annual Increase in 13 Years

The Consumer Price Index rose by 5 percent in May 2021 compared to a year ago, the largest annual increase reading in 13 years (WSJ). The Wall Street Journal reports, “The Labor Department said last month’s increase in the consumer-price index was the largest since August 2008, when the reading rose 5.4%. The core-price index, which excludes the often-volatile categories of food and energy, jumped 3.8% in May from the year before—the largest increase for that reading since June 1992.” The record annual increases have contributed to concern over the danger of inflation. However, the Wall Street Journal notes that the increases may read higher because they are comparisons to the pandemic year, when prices were low. The Journal reports, “Compared with two years ago, overall prices rose a more muted 2.5% in May” adding that such an effect is likely to show up in June’s consumer price data as well while becoming less of a factor as the Fall approaches.

U.S. Society

Morgan Stanley’s New York Office Will Ban Unvaccinated Staff and Clients

CNN and the Financial Times report that Morgan Stanley will ban unvaccinated staff and clients from its New York office beginning on July 1 (CNN, FT). CNN writes, “According to a source close to the company, Morgan Stanley said in a memo to its employees in the New York metropolitan area that all staff working in buildings with a "large employee presence" are required to confirm their vaccination status by July 1.” CNN’s source said the matter would be handled on an “honorary basis.” The source added, “Operating within a fully vaccinated environment allows us to lift restrictions like the use of face coverings and the need to maintain physical distancing, returning to more normal office conditions.” Morgan Stanley’s CEO James Gorman has been vocal in calling for workers to return to their offices. During a conference in early June, he stated, “If you can go to a restaurant in New York City, you can come into the office. And we want you in the office,” adding that he would be “very disappointed” if workers did not return by Labor Day. Gorman has said that about 90% of his staff have been vaccinated.

Companies Look to Hire Remote Workers - Except in Colorado After Pay Range Law Passes

In the wake of Colorado passing a law that requires companies with employees in the state to provide the pay range for advertised job openings, some countries are excluding people located in Colorado from their searches for remote workers (WSJ). The rule is aimed at helping address gender disparities in pay and expanding transparency. However, the Wall Street Journal notes that now “Across the internet, an array of job listings state the work can’t be done in Colorado. At Johnson & Johnson, roles recently posted for a commercial finance senior manager and a senior manager in operations include this caveat: ‘Work location is flexible if approved by the Company except that position may not be performed remotely from Colorado.’ At commercial real-estate giant CBRE Group Inc., an ad for a project management director notes in bold: ‘This position may be performed remotely anywhere within the United States except the State of Colorado.’ At pharmaceutical distributor McKesson Corp., postings for a sales specialist and a research quality manager include similar disclaimers. Job listings for a scientist, an account executive and a manager of international tax planning at rival Cardinal Health Inc. also note: ‘This is a remote, work from home position. This role is to be filled outside of the state of Colorado.’” Meanwhile Colorado is looking into the legality of such postings. The Journal reports that the state’s Department of Labor and Employment is investigating at least one complaint regarding a company’s listing.

Analysis & Arguments

Molly Roberts writes on the shared experiences that may be behind the splits over remote work (WaPo).

Kunal Kamra, Veda Shastri, Adam B. Ellick, and Gabe Johnson point the finger of responsibility at Narendra Modi for India’s Covid catastrophe (NYT).

Dhruv Khullar warns of the dangers the Delta variant could pose for Americans (New Yorker).

 Readers can send in tips, critiques, questions, and suggestions to coronavirusbrief@newamerica.org.

The Brief is edited by David Sterman and Emily Schneider with Senior Editor Peter Bergen.

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