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July 15, 2021 - Brief Issue 229

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

The Daily Brief will be on hiatus July 20.

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Top Headlines

Some Countries Defend Strategy of Mixing Vaccines (Health & Science)

Cases Rise in New York City (Health & Science)

In Cuba, Pandemic Pushes Unrest (Around the World)

Parts of China Mandate Vaccines (Around the World)

Cases Surge in the Netherlands Weeks After Reopening Bars, Restaurants (Around the World)

Tennessee to Stop Encouraging Youth to Get Vaccinated (For More than Covid) (U.S. Government & Politics)

Biden Focuses on Shipping Costs with Executive Order Amid Debates Over Inflation and Role of the Pandemic (U.S. Government & Politics)

Bank of America Sees Profits Double as Revenues Fall (U.S. Economy)

Delta Reports First Profit Since the Pandemic Began (U.S. Economy)

Fed Chair Powell: Inflation Higher, Longer-Term Than Expected, Will Likely Partially Reverse as Bottlenecks Resolve (U.S. Economy)

CDC: U.S. Saw a Record 93,000 Drug Overdose Deaths in 2020 (U.S. Society)

Health & Science

There have been 33,947,232 coronavirus cases in the United States, and 608,115 people have died (Johns Hopkins). The United States has administered 335,487,779 vaccine doses, with 55.7% of all Americans having received their first vaccine dose and 48.2% fully vaccinated. Among adults aged 18 or older  67.8% have received at least one dose, and 59.1% are fully vaccinated (U.S. CDC). Worldwide, there have been 188,504,500 confirmed cases of coronavirus, with 4,060,516 deaths.

Some Countries Defend Strategy of Mixing Vaccines

Canadian and Thai health officials defended their decisions to mix different coronavirus vaccines following comments by the World Health Organization suggesting that combining doses was unsafe. The WHO’s Soumya Swaminathan said in a briefing on Monday that plans by some countries to administer booster shots was a “dangerous trend” that could lead to “a chaotic situation … if citizens start deciding when and who will be taking a second, a third and a fourth dose” (WaPo). “We are in a bit of a data-free, evidence-free zone as far as ‘mix-and-match,’ ” she said. Although she clarified in a later tweet that the comments reflected her concern about individuals, rather than public health agencies, deciding to get a cocktail of shots, health authorities in Thailand and Canada responded to the criticism. A top Thai virologist said on Tuesday that authorities would go ahead with plans to mix a first dose of Sinovac vaccine with a second of the AstraZeneca shot. Canadian public health officials also defended their strategy of mixing vaccines (CTV). “We have taken some strong decisions that quite frankly, are bearing out,” Canadian Prime Minister Justin Trudeau told reporters Tuesday.

Cases Rise in New York City

Amid the spread of the Delta variant, New York City is seeing rising case counts (NYT). The New York Times writes, “Just a few weeks ago, there were only 200 new cases a day across the city on average, the lowest level since the early days of the pandemic. But the city has now had a streak of days with 400 or more cases. And the test positivity rate has doubled: from below 0.6 percent on average to about 1.3 percent. Those numbers are still low,  the increase has been swift, surprising some epidemiologists and public health officials who had not expected to see cases jump so quickly after remaining level throughout June.” However, 64% of New York City adults are vaccinated, leading health experts to believe a surge to the levels that previously faced the city is unlikely.

Around the World

In Cuba, Pandemic Pushes Unrest

In Cuba, the coronavirus pandemic has deepened the economic crisis felt by many residents and spurred them to demand access to basic necessities for living. On Sunday, thousands of protestors took to the streets to call for an end of six decades of dictatorship and access to medicine and food. “The pandemic turned into a pressure cooker, and there was no safety valve,” said Father Álvarez, a Catholic priest in the communities around Camagüey, Cuba’s third-largest city (WSJ) . “We now have widespread shortages of food and medicine. There is no fuel or public transport. There are constant blackouts now in summer, the heat is extremely harsh and food spoils.” Last year, the economy contracted by 11% and it is on track to post another contraction in 2021. The country’s public health system, once a powerhouse, is now suffering from a lack of funds, further angering Cubans. “For years they have told us we are a world medical power, but our people are dying, and we are helpless,” said Alexey Seijo, an evangelical pastor in Camagüey. “Cuba can’t take it anymore.”

Parts of China Mandate Vaccines

Several areas in China are planning to effectively mandate vaccines by barring access to public venues to those who are unvaccinated in a push for herd immunity. The eastern provinces of Zhejiang, Fujian and Jiangxi set late-August deadlines for people 18 years or older to complete the two-part vaccine regimen and set late July deadlines for banning unvaccinated people from entering schools, libraries, prisons, nursing homes, and hospitals (WSJ). The government notices have sparked pushback from some citizens and added to the worldwide debate about whether vaccines should be mandated or whether people should be required to present proof of inoculation in order to participate in routine activities. 

Cases Surge in the Netherlands Weeks After Reopening Bars, Restaurants

New coronavirus cases in the Netherlands jumped by more than 500% last week, leading the country’s prime minister, Mark Rutte, to publicly apologize on Monday for lifting restrictions too soon. New daily cases rose from 500 on Jun 25 (the day before restrictions were lifted) to over 10,000 on Saturday (NYT). Rutte’s government reimposed several measures this week, including ordering bars and clubs to close at midnight and reinstating a policy to serve only seated customers. In the weeks following the lifting of restrictions, the government tracked more than 100 superspreader events, including in clubs and on party boats and in student settings. More than 1,000 people were infected at a festival in the city of Utrecht earlier this month, for example. About 65% of the population has received one dose of coronavirus vaccine and about 39% are fully vaccinated. 

U.S. Government & Politics

Tennessee to Stop Encouraging Youth to Get Vaccinated (For More than Covid)

On Tuesday, the Tennesseean reported that the Tennessee Department of Health will stop all vaccine outreach for adolescents - for Covid and other diseases - citing an internal report and email that they obtained (Tennessean, WaPo). The Tennesseean writes, “If the health department must issue any information about vaccines, staff are instructed to strip the agency logo off the documents. The health department will also stop all COVID-19 vaccine events on school property, despite holding at least one such event this month. The decisions to end vaccine outreach and school events come directly from Health Commissioner Dr. Lisa Piercey, the internal report states. Additionally, the health department will take steps to ensure it no longer sends postcards or other notices reminding teenagers to get their second dose of the coronavirus vaccines. Postcards will still be sent to adults, but teens will be excluded from the mailing.” The policy comes amid pressure from Republicans in the state. As we have covered in prior briefs, young people have been an important focus for recent vaccination efforts as data suggest that young people are lagging behind in getting vaccinated.

Biden Focuses on Shipping Costs with Executive Order Amid Debates Over Inflation and Role of the Pandemic

On Friday, President Biden used an executive order focused on American competitiveness in part to urge regulators to focus on consolidation in the shopping industry and its impact on shipping costs (WaPo). The order comes as shipping costs have played a major role in increasing prices that have spurred concern about the extent and likely length of current inflation. The Washington Post writes, “Transport bottlenecks in June helped fuel the highest inflation in 13 years, rattling Americans with sticker shock on goods such as used cars, airfare and bacon.” Companies have pushed back against the move. Part of the debate surrounds the difficulty of disentangling the impact of the pandemic itself from the impact of consolidation on prices.

U.S. Economy

Bank of America Sees Profits Double as Revenues Fall

On Wednesday, Bank of America posted its earnings report for the second quarter, showing that its profits doubled even as its revenue fell (WSJ). The bank made $9.22 billion in the second quarter this year, whereas it made $3.53 billion in the second quarter of 2020. However, the Wall Street Journal notes, “Still, revenue in the second quarter was $21.47 billion, down 4% from $22.33 billion a year earlier. That missed analysts’ expectations of $21.8 billion. Bank of America has been the only major U.S. bank so far to miss analysts’ revenue predictions.” This divergence is partly because as the Journal writes, “Bank of America’s bottom line was lifted by its decision to release $2.2 billion of reserves it had set aside during the depths of the coronavirus pandemic to protect against a wave of soured loans.” As we covered in a prior brief this week, JPMorgan Chase also reported a surge in profit amid a fall in revenue as it released funds saved during the height of the pandemic.

Delta Reports First Profit Since the Pandemic Began

In a sign of the return of the travel industry, on Wednesday, Delta Airlines reported a profit for the second quarter, representing the first quarterly profit the company has made since the beginning of the pandemic (WSJ). Delta reported it made a profit of $652 million after five quarters of reporting losses. The Wall Street Journal, however, notes that “Still, full recovery for airlines is a long way off. Delta’s profit was 55% below the $1.4 billion it generated in the second quarter of 2019, as corporate and international travel remained weak. And while planes and airports are more packed than they were last year, Delta isn’t flying a full schedule and its operating revenue during the quarter was half of 2019 levels.” Other airlines have not yet reported their second quarter financial data.

Fed Chair Powell: Inflation Higher, Longer-Term Than Expected, Will Likely Partially Reverse as Bottlenecks Resolve

On Wednesday while testifying before the House Financial Services Committee, Federal Reserve Chairman Jerome Powell stated that inflation had been higher and more persistent than expected but that he still expects the trend to reverse (WSJ). Powell said inflation “has been higher than we’ve expected and a little bit more persistent than we had expected and hoped,” pointing to the pandemic’s creation of “just the perfect storm of high demand and low supply.” However, while record price increases have stoked concern about inflation, Powell still emphasized that the effects “should partially reverse as the effects of the bottlenecks unwind” and said the Fed should not raise interest rates.

Bonus Read: “Lumber Prices Are Way Down—But Don’t Expect New Houses to Cost Less,” (WSJ). 

U.S. Society

CDC: U.S. Saw a Record 93,000 Drug Overdose Deaths in 2020

On Wednesday, the National Center for Health Statistics, part of the CDC, released provisional data showing that in 2020 more than 93,000 people died of drug overdoses in the U.S. (WaPo, Politico). Only New Hampshire and South Dakota did not see their death tolls increase (NYT). The toll was the highest death toll in 50 years with the prior record having been set  in 2019. In 2020, there were 21,000 more overdose deaths than occurred that year. The New York Times writes, “Several grim records were set: the most drug overdose deaths in a year; the most deaths from opioid overdoses; the most overdose deaths from stimulants like methamphetamine; the most deaths from the deadly class of synthetic opioids known as fentanyls.” Health experts expected an increase, particularly amid the pandemic. However, the record may also reflect a broader trend. Politico notes, “Drug overdose deaths climbed each year for nearly three decades before they dipped slightly in 2018. At the time, there was cautious optimism that the tide was beginning to turn.” The New York Times writes that the pandemic ‘undoubtedly contributed to the surge,” pointing out that the peak came in Spring 2020 at the height of lockdowns and social isolation. However, the Times notes that deaths were already rising in the early months of 2020 prior to the pandemic and the government’s response and that health officials have cited the rising dominance of fentanyl as opposed to other drugs as another important factor in the high death toll.

Analysis & Arguments

Allyson Chiu writes on how people can make their commutes better as they return to their offices (WaPo).

Kalpana Mohanty gives the new genre of pandemic self-help writing a critical look (New Republic).

Ali Wolf examines who the housing boom is leaving behind (NYT).

 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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