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July 26, 2022 - Brief Issue 353

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

The brief will be on hiatus beginning July 29.

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Top Headlines

Mysterious Hepatitis Cases in Children Linked to Pair of Viruses and Genetic Mutation (Health & Science)

Poorer Nations Could Face Consequences of U.S. Action on Inflation (Around the World)

Micronesia’s Outbreak Balloons (Around the World)

Manchin Tests Positive for Covid (U.S. Government & Politics)

Gas Prices Fall, Still Higher Than Last Year (U.S. Economy)

Investors Bet on Interest Rate Cuts Next Year (U.S. Economy)

Employers Facing Summer Staffing Challenges (U.S. Economy)

Young Adults Increasingly Living at Home Amid Pandemic (U.S. Society)

Covid Poses Issues for Summer Camps, Creating Problems for Parents (U.S. Society)

Health & Science

There have been 90,567,440 coronavirus cases in the United States, and 1,027,369 people have died (Johns Hopkins). The United States has administered 601,497,801 vaccine doses, with 78.7% of all Americans having received at least one vaccine dose and 67.2% fully vaccinated. Among adults aged 18 or older 89.9% have received at least one dose, and 77% are fully vaccinated (U.S. CDC). 48.2% of fully vaccinated Americans have received a first booster shot. 29.7% of Americans aged 50 or older have received a second booster shot. Worldwide, there have been 571,246,038 cases of coronavirus, with 6,386,376 deaths.

Bonus Read: “Meet the covid super-dodgers,” (WaPo).

Mysterious Hepatitis Cases in Children Linked to Pair of Viruses and Genetic Mutation

After mysterious cases of hepatitis among children surfaced in dozens of countries, scientists worked together to try to trace the cause. Now, new research suggests that the cases were caused by two viruses working together to trigger the inflammation of the liver in children with a certain genetic susceptibility (WSJ). From last October through the beginning of July, there were 1,010 probable cases of unexplained hepatitis in children in 35 countries, according to the World Health Organization. Normal causes of hepatitis, including hepatitis viruses, excessive alcohol consumption, or an overdose of acetaminophen, were not the cause. Researchers had been looking to infection with Covid-19 or a stomach bug called adenovirus 41, which was detected in about two-thirds of U.K. cases and about half of U.S. cases. 

Two new studies, both posted on preprint server MedRxiv but neither of which were peer reviewed, now put another virus into the picture in addition to a genetic trait found to be common among affected children. Both studies compared blood and tissue samples taken from children with unexplained hepatitis and found high levels of adeno-associated virus 2, or AAV2, in almost every case. Adeno-associated viruses replicated only when combined with a so-called helper virus, normally an adenovirus. The studies found AAV2 in 25 of the 26 cases for which data were available, compared with the control group, in which AAV2 was detected in only 4% of cases. In one of the studies, a genetic mutation associated with the immune response was found in eight of the nine children studied. In the wider population, the mutation occurs in 16% of people. “The AAV2, or adenovirus, or both may be triggering an immune response associated with this genetic susceptibility,” said Emma Thomson, a consultant in infectious diseases at the MRC-University of Glasgow Centre for Virus Research and one of the authors of the Scottish study. “And we really do need to nail down in much more detail as to the granularity of the mechanism.”

Bonus Read: “Big Hospitals Provide Skimpy Charity Care—Despite Billions in Tax Breaks,” (WSJ). 

Around the World

Poorer Nations Could Face Consequences of U.S. Action on Inflation

As U.S. policymakers grapple with how to contain the highest inflation seen in the U.S. in decades, global economic experts worry that poorer economies could be swamped. Countries with emerging markets have been facing economic distress from fighting the pandemic and now, spikes in food prices and fuel prices caused by Russia’s invasion of Ukraine. The Washington Post explains that “tighter U.S. monetary policy will worsen these problems, because rising interest rates in the United States can push up the cost of financing debt for the dozens of low-income countries that borrow in dollars.” If foreign markets deteriorate, American exports will be affected. Further, a global economic shutdown would threaten any sort of recovery in the U.S. Other wealthy nations are also contributing to the conundrum. Last week, the European Central Bank made a surprise decision to increase its benchmark interest rate by half a percentage point for the first time in 11 years, which could cause poorer nations’ currencies to lose even more value. 

Micronesia’s Outbreak Balloons

Micronesia’s first outbreak of Covid-19 has grown to more than 1,000 cases in just one week, causing alarm in the Pacific island nation (AP). As we covered previously, the nation was the last in the world with a population over 100,000 to experience an outbreak of Covid-19. On Monday, there were 140 new cases reported. Many officials have been affected by the outbreak, including Vice President Yosiwo George, who has been hospitalized but is said to be improving. Because of the outbreak, many previously unvaccinated residents have decided to get their shots. 

U.S. Government & Politics

Manchin Tests Positive for Covid

On Monday, Senator Joe Manchin (D-WV) tweeted that he had tested positive for Covid (Politico). Manchin tweeted, “This morning I tested positive for COVID-19. I am fully vaccinated and boosted and am experiencing mild symptoms. I will isolate and follow CDC guidelines as I continue to work remotely to serve West Virginians.” Politico writes, “Manchin's absence may not play a huge role immediately as the chamber aims to pass a bipartisan semiconductor bill this week, as well as approve Finland’s and Sweden’s accession to NATO. However, thornier issues like codifying same-sex marriage into federal law and a prescription drug price-centric party-line push will definitely need his vote, along with those of his other 49 Democratic caucus members.”

U.S. Economy

Bonus Read: “Job Switchers Are Earning a Lot More Than Those Who Stay,” (WSJ).

Gas Prices Fall, Still Higher Than Last Year

The average U.S. gas price fell by 32 cents over the past two weeks, according to a survey of prices released on Sunday (Politico). Trilby Lundberg, an industry analyst who ran the survey, stated, “Further drops at the pump are likely as the wholesale gasoline price cuts continue making their way to street level.” The recent decline follows a longer-term decline though gas prices remain high. Politico writes, “The average price at the pump is down 55 cents over the past six weeks, but it’s $1.32 higher than it was one year ago.” As we have covered in prior briefs, high gas prices have played an important role in inflation more broadly and in fueling political concern over inflation. Bonus Read: “Gas Prices Across the U.S.: A Visual Map,” (WSJ). 

Investors Bet on Interest Rate Cuts Next Year

The Wall Street Journal reports that even as the Federal Reserve has raised interest rates and is expected to raise them again at its next meeting, many investors are betting that the Fed will cut rates next year (WSJ). The Journal writes, “The unusual wager reflects investors’ growing sense that the Fed is driving the economy into a recession as it tries to fight inflation, analysts said. At the same time, by constraining longer-term borrowing costs, it makes a recession slightly less likely to happen soon. That is a boost to riskier assets such as stocks, compared with a more traditional bet that rates wouldn’t boomerang so quickly.”

Employers Facing Summer Staffing Challenges

The Wall Street Journal reports that many employers are facing difficulties staffing their businesses this summer (WSJ). Rising numbers of Covid cases are playing a role in the staffing shortages. The Journal notes, “A rise in Covid-19 absences in recent weeks amid the spread of the BA.5 subvariant, combined with planned time off, has left restaurants, hotel chains, manufacturers and other workplaces struggling to keep operations running this summer. At some companies, bosses say, staffing is harder now than at any previous stage in the pandemic. For the period from June 29 to July 11, 3.9 million Americans said they didn’t work because they were sick with Covid-19 or were caring for someone with it, according to Census Bureau data. In the comparable period last year, 1.8 million people missed work for those reasons.” Workers are also taking vacation. Yet, even this factor is influenced by the pandemic, as people take vacations that they put off due to travel and other Covid restrictions and concerns. The Journal reports, “According to the Labor Department, 4.8 million workers took vacation or personal days during the week of the Census Bureau’s June household survey this year, compared with 3.7 million workers who were taking time off in the comparable period last year.”

Bonus Read: “Boeing workers at 3 St. Louis-area factories vote to strike,” (WaPo).

U.S. Society

Young Adults Increasingly Living at Home Amid Pandemic

Young American adults are increasingly living at home (NYT). One study by Credit Karma conducted an online survey of 1,022 American young adults in June, and found that almost a third of adults aged 18-25 were living at home. Colleen McCreary, a consumer financial advocate and chief people officer at Credit Karma told the Times, “The pandemic had a big effect here. That age group was likely sent home from college, or didn’t have the job and income security to have their own place.” The New York Times notes, “From the very beginning of the pandemic, flocks of young Americans were moving back home. A 2020 analysis from Zillow found that about 2.7 million adults in the United States moved in with a parent or grandparent in March and April of that year.” Young Americans are also staying close to their family homes even if they move out (WSJ). On Monday, a paper by the Census Bureau in collaboration with Harvard University found that “80% of young adults at age 26 had moved less than 100 miles of where they grew up, and just 10% moved more than 500 miles away,” as the Wall Street Journal summarized it. 

Covid Poses Issues for Summer Camps, Creating Problems for Parents

The Wall Street Journal reports that summer camps are facing challenges and sometimes canceling their services as Covid cases stress already short-staffed workforces (WSJ). In turn the cancellations are creating problems for parents who rely on the camps for child care over the summer. The Journal writes, “Nearly all camps across the country are dealing with rising cases in some way this summer as the highly transmissible BA.5 Omicron subvariant circulates, camp directors and industry groups say. For many, the issue is staffing. When counselors get sick, directors have to rework staff assignments and some activities get cut.” Sarah Kurtz McKinnon, a former camp director and co-founder of industry group the Summer Camp Society told the Journal, “A lot of camps were on the razor edge in the first place, so it’s especially devastating when five people get Covid if you’re just barely staffed.” Jennifer Orchard, whose children were sent off to camp, told the Journal of receiving an email about their camp being canceled due to Covid, as she and her husband were on their way to a wine bar in Montreal to enjoy a long-delayed vacation. The Journal writes, “They were more than 500 miles from camp, and had booked nonrefundable flights, hotels and a rental car. Ms. Orchard had to call their dogsitter, who offered to pick the kids up so the couple could finish out their trip.”

Bonus Read: “New Metro GM faces safety, financial challenges on first day,” (WaPo).

Analysis & Arguments

Katherine J. Wu explores whether genetics play a role in some people avoiding Covid (Atlantic).

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

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