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June 9, 2022 - Brief Issue 334

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

Moderna Seeks FDA Approval for Omicron-Specific Booster; New Subvariants Gaining Ground in U.S. (Health & Science)

U.S. Schools Choose Lower-Cost Options for Fighting Covid (Health & Science)

D.C. Launches Campaign Focused on Youth Vaccination (Health & Science)

Chinese Consumers Still Not Spending (Around the World)

Australia 2020 Death Rate Lowest on Record (Around the World)

Japan Reopens to Foreign Tourists (Around the World)

European Central Bank to Raise Rates (Around the World)

White House Says Will Shift Testing Funds to Vaccines and Treatments, Citing Congressional Failure to Provide More Funding (U.S. Government & Politics)

Poll: Majority Supports More Covid Aid for the Uninsured (U.S. Government & Politics)

San Francisco DA Chesa Boudin Recalled (U.S. Government & Politics)

DeSantis Spokeswoman Registers as Foreign Agent (U.S. Government & Politics)

Mortgage Applications Fall to 22 Year Low (U.S. Economy)

Hotels Turn to Robots to Cover Labor Shortages (U.S. Economy)

Inflation Hits Lawn Care (U.S. Society)

Health & Science

There have been 85,214,097 coronavirus cases in the United States, and 1,010,521 people have died (Johns Hopkins). The United States has administered 589,852,206 vaccine doses, with 78% of all Americans having received at least one vaccine dose and 66.7% fully vaccinated. Among adults aged 18 or older 89.4% have received at least one dose, and 76.7% are fully vaccinated (U.S. CDC). 47% of fully vaccinated Americans have received a first booster shot. 23.9% of Americans aged 50 or older have received a second booster shot. Worldwide, there have been 533,761,253 cases of coronavirus, with 6,305,225 deaths.

Moderna Seeks FDA Approval for Omicron-Specific Booster; New Subvariants Gaining Ground in U.S.

Moderna said on Wednesday that it will seek authorization from the U.S. Food and Drug Administration for an updated coronavirus vaccine that is designed to protect against the Omicron variant and its subvariants (NBC). According to preliminary data released by the company, the new booster shot produced 1.75 times as many neutralizing antibodies against the BA.1 subvariant compared to the existing vaccine (WaPo). Moderna said the updated booster shot is “our lead candidate” for a booster shot in the fall but some experts worry that Omicron is mutating so fast that vaccines won’t be able to keep up. 

New subvariants have been discovered over the past few months, with BA.4 and BA.5, first detected in South Africa earlier this year, already accounting for 13% of new cases in the United States (NYT). According to new estimates by the Centers for Disease Control and Prevention, the new subvariants are up from 7.5% a week ago and just 1% in early May (NYT). Scientists say that the new subvariants add uncertainty to the trajectory of the pandemic but data on the new subvariants remain limited. They seem to spread more quickly than previous versions of Omicron but there is not much evidence that they cause more severe disease. Bonus Read: “US has a "very serious" problem with Covid-19 vaccine uptake,” (CNN)

U.S. Schools Choose Lower-Cost Options for Fighting Covid

According to a new study published Tuesday by the U.S. Centers for Disease Control and Prevention, schools were more likely to rely on low-cost strategies for improving ventilation and slowing the spread of the coronavirus than higher cost means. Low-cost strategies include holding activities outside, opening doors and windows, and inspecting existing heating, ventilation and air conditioning systems, according to the study. Only about one-third of public schools reported taking costlier steps, like replacing or upgrading their HVAC systems. Fewer than one in three said they used high-efficiency particulate air (HEPA) filtration systems in classrooms and cafeterias. The New York Times writes: “Schools that serve children in the poorest American communities were slightly more likely to have replaced or upgraded HVAC systems than those serving communities with medium levels of poverty, the study found. Almost half of schools serving the poorest communities — and close to half of schools serving the wealthiest communities — had replaced or upgraded their HVAC systems, compared with only one-third of schools with medium levels of poverty. The poorest schools were also more likely to have inspected and validated their HVAC systems than schools with medium levels of poverty.” Authors of the CDC study note that schools in wealthier areas could have had the resources to upgrade their systems already and that schools in high-poverty areas might have more experience accessing and using federal funds.

D.C. Launches Campaign Focused on Youth Vaccination

Washington, D.C. officials announced a new campaign on Monday that would allow children to get their routine vaccinations at recreation centers, school-based health centers, and mobile vaccination sites across the city this summer. Officials say youth vaccinations have plummeted during the pandemic but that requirements for vaccinations against polio, measles, and hepatitis will be strictly enforced during the upcoming academic year (WaPo). D.C. Mayor Muriel Bowser said that any student who is not up-to-date on vaccines within 20 days of starting school will not be allowed to attend and no virtual learning option will be offered. Last year, the D.C. Council passed legislation to require students to be vaccinated against the coronavirus once the FDA gives full approval for a vaccine.  

Around the World

Chinese Consumers Still Not Spending

As Shanghai, Beijing, and other major cities in China emerge from lockdowns, officials hope that consumer spending will revive the sputtering economy. But so far it seems that consumers have kept their “wallets in lockdown,” according to a report by Reuters. Even with measures like vouchers, subsidies for car buyers, and digital yuan payments, consumer spending remains depressed. Experts blame not just the lockdown, but also “lingering fears about job security and COVID-related curbs, as well as authorities' reticence towards policies that would get more money quickly into consumers' pockets,” writes Reuters. China’s retail sales shrank 11.1% in April compared to the previous year.

Australia 2020 Death Rate Lowest on Record

Australia’s 2020 death rate was the lowest on record. The top five causes of death were “coronary heart disease, dementia, cerebrovascular disease, lung cancer and chronic obstructive pulmonary disease.” Covid-19 was the 38th leading cause of death in the country in 2020. Only a handful of countries saw lower overall death rates in the first year of the pandemic, among them Australia, New Zealand and Denmark (Guardian). However, the first year of the pandemic may also have led to a 50% increase in suicide related ambulance calls according to a new study. The study, which drew on data from Australia’s National Ambulance Surveillance System, is a preprint and has not yet been peer-reviewed (Guardian).   

Japan Reopens to Foreign Tourists

Starting June 10 foreign tourists will be able to enter Japan for the first time since the pandemic began (Guardian). However, heavy restrictions will apply to international visitors to the country. Entry to the country is restricted to travelers from 98 “low-risk countries,” which includes the U.S., Britain, Australia, China, South Korea, Indonesia and Thailand. Daily arrivals to the country will be capped at 20,000 people. Tourists can only arrive as part of package holidays and tour guides must ensure that visitors wear masks indoor and outdoors when social distancing cannot be upheld. Tourists must also take out private medical insurance in case they contract Covid. Any visitor who tests positive for Covid-19 will be monitored at a medical facility until they are due to leave the country.  

European Central Bank to Raise Rates

The European Central Bank is set to announce its intention to raise rates for July amid record inflation rates at a meeting in Amsterdam on Thursday (CNBC). The European Central Bank is also expected to revise its growth forecasts downward while giving an upward revision of its inflation predictions.

U.S. Government & Politics

White House Says Will Shift Testing Funds to Vaccines and Treatments, Citing Congressional Failure to Provide More Funding

After months of warning that it lacked sufficient funds for its pandemic response efforts, on Wednesday, the White House announced it would shift funds from testing to vaccines and treatments, citing Congress’ failure to provide more funding (NYT). The New York Times writes, “Roughly $10 billion from Department of Health and Human Services funds will be rerouted, around half of it to purchase vaccines for Americans ahead of a possible fall or winter wave of virus cases, when an updated shot may be needed, according to one White House official. The other half will go mostly to purchasing 10 million courses of Paxlovid, the antiviral treatment made by Pfizer that has been shown to substantially reduce the severity of Covid-19 in high-risk people, the official said. Around $300 million will be spent on monoclonal antibody treatments. The total amount needed for a new vaccination campaign later this year is still unknown because contract negotiations are ongoing, the White House official added.” The administration had previously signaled such a move was likely in the absence of funding. The Times writes of one such warning, “At a briefing in May, a senior administration official told reporters that the administration would potentially use funds for testing and treatments to develop a modest fall vaccination program that would cover only older Americans and people with immune deficiencies.” The Times notes, “The amount being diverted is roughly what lawmakers had discussed in recent Senate negotiations. The White House asked Congress for $22.5 billion in emergency pandemic aid, but Republicans insisted on less than half that figure — $10 billion — and stripped $5 billion in global aid from the request.”

Poll: Majority Supports More Covid Aid for the Uninsured

A Politico/Harvard survey conducted from May 6-9 found that a majority of Americans support having the government continue to pay for testing, vaccination, and treatment for the uninsured (Politico). The finding comes as funding for such efforts has run dry, with Politico writing, “Federal programs that reimbursed providers for these services to uninsured and underinsured Americans dried up months ago, and Congress has yet to authorize new Covid-19 spending that could replenish the funds.” Even so, almost 60% of the 1,025 surveyed respondents called continuing the programs “extremely” or “very” important. However, Politico notes “At the same time, more than six in 10 respondents believe that more congressional spending on Covid aid will contribute to inflation. Republicans and Independents were more concerned about the potential impact than Democrats; 84 percent of Republicans and 63 percent of Independents said more Covid spending would lead to increased inflation, compared to 37 percent of Democrats.” Bonus Read: “White House Struggles to Talk About the ‘Problem From Hell,’” (NYT).

San Francisco DA Chesa Boudin Recalled

On Tuesday, San Franciscans voted to recall their progressive District Attorney Chesa Boudin (Politico, NYT). The New York Times writes, “Mr. Boudin was part of a national movement of progressive prosecutors who have taken office in recent years with bold goals of overhauling the criminal justice system from the inside — reducing racial disparities, curbing mass incarceration, holding police more to account.” Politico writes, Boudin was toppled by a campaign fueled by crime concerns and funded by business groups. Former prosecutors from his office had publicly joined the recall push, lending credibility to the recall effort.” The fear may have been in part fueled by the impact of the early stages of the pandemic. Politico writes, “Data show Boudin sent a greater share of cases to pretrial diversion than his predecessors. Some property crimes spiked during the first part of his tenure, which coincided with the early days of the coronavirus pandemic, and homicides rose in parallel with a national increase. Boudin’s foes also seized on viral videos of brazen incidents of shoplifting and smash-and-grab robberies, which were amplified by conservative media.” Many commentators have pointed to the recall as potential evidence of a larger nationwide backlash. Bonus Reads: “Centrists’ new war on crime is also a war on the left,” (WaPo); “The Left Is Being Mugged by Reality, Again,” (NYT).

DeSantis Spokeswoman Registers as Foreign Agent

Christina Pushaw, a spokeswoman for Florida governor and potential challenger to Trump for the Republican presidential nomination, Ron DeSantis, registered as a foreign agent for former President of Georgia Mikheil Saakashvili this week (WaPo). The Washington Post described the move as “belatedly detailing work she performed for the politician between 2018 and 2020,” adding, “She began her work in 2018 as a volunteer in the post-Soviet country, Sherwin said, and was ultimately paid $25,000 over the course of two years. She received her first payment, of $10,000 in October 2018, in cash, according to her filing. She stayed for free for six weeks in an apartment owned by a Saakashvili associate.” The move followed contact from the Justice Department. As we have covered in prior briefs, DeSantis has risen as a potential challenger to Trump for the 2024 Republican presidential nod, in part benefitting from his aggressive opposition to Covid restrictions as governor.

U.S. Economy

Mortgage Applications Fall to 22 Year Low

Mortgage applications fell to a 22 year low in the week ending June 3, according to tracking by the Mortgage Bankers Association (WSJ). The Wall Street Journal writes, “Applications fell 6.5% in the week ended June 3, the fourth consecutive week of declines, according to the Mortgage Bankers Association. Refinance and purchase activity fell 6% and 7%, respectively.” Increasing interest rates have helped suppress applications. The Journal notes, “Sales of existing homes in April fell to their slowest pace since before the pandemic. But even with sales slowing, home prices continue to rise thanks to a dearth of homes for sale. That means many would-be buyers are struggling with the twin challenges of double-digit jumps in home prices and higher borrowing costs.” The new data comes amid a range of signs showing that a hot-pandemic housing market has proven difficult for many buyers. The Journal writes, “Home prices are up about 40% since the pandemic started, according to the National Association of Realtors. When entering the housing market becomes more expensive, many first-time buyers are faced with tough choices: cope with larger monthly payments, buy less desirable homes or step back from the market altogether. A median American household needed 38.6% of its income to cover payments on a median-priced home in March, according to the Federal Reserve Bank of Atlanta. That was up from 32.6% at the end of 2021 and the highest level since August 2007.”

Hotels Turn to Robots to Cover Labor Shortages

The Washington Post reports that some hotels are turning to robots to help cover as they wrestle with labor shortages amid a tight pandemic labor market (WaPo). The Post writes that a robot named Alfred (yes, like Batman’s butler) has taken on front desk duties at the Dream Hollywood hotel. The Post writes, “Vaughn Davis, the hotel’s general manager, started building an operating model based around a heavier reliance on technology in 2017, but the lingering labor shortage across the travel industry provided ‘an opportune time’ to deploy robots in the hotel.” The Dream hotel is not alone but according to the Post is instead “one of a growing number of hospitality businesses that have invested in robots in recent years. And while travel demand soars as covid rules ease in many parts of the world, robots may provide at least a partial solution to ongoing staffing issues.” For example, the Post notes, “Hawks Cay Resort in the Florida Keys has also brought in a crew of six robots. Two of them run food and assist staff at the hotel’s restaurant, Angler and Ale. Two others vacuum common spaces such as hallways and ballrooms, while another pair clean flooring.” That resort’s vice president Sheldon Suga commented, “Number one, it’s helping to fill some of the labor shortage that we have, but on the other hand, it helps the existing staff.” The Post notes, “Suga said the resort is around 25 percent below ‘where we need to be’ staffing-wise, compared to 2019.” The hospitality industry faces a touch labor market, and hiring numbers have not recovered from the early pandemic despite significant hiring activity. The Post reports, “Leisure and hospitality accounted for 78,000 of 428,000 jobs added in April, according to the U.S. Bureau of Labor Statistics, the largest increase of any industry last month. However, employment in the sector is still down by 8.5 percent, or 1.4 million jobs, from February 2020.”

U.S. Society

Inflation Hits Lawn Care

Inflation is hitting the lawn care and landscaping industry hard, according to the Wall Street Journal (WSJ). The Journal reports, “For many landscapers, the three biggest costs to running their business—fuel, labor and equipment—are all surging in price. This means many are now increasing prices for the vast services they offer. The price of lawn-mowing services is up 22.4%, exterior pressure-washing prices rose 20%, and tree trimming increased 9.1% year-over-year as of May, according to online home-services company Angi Inc.” The Journal adds that the situation has led to price increases and other changes, writing, “Behind the price increases are landscaping companies that are often small, family-run operations with thin margins, according to owners of such businesses. Many are raising prices. Others are dropping clients who live outside certain narrow radiuses. Some are leaving the business altogether, the owners say.”

Analysis & Arguments

Jessica Grose writes on what children lost during the pandemic (NYT).

Han Zhang writes on how Shanghai residents experienced lockdown (New Yorker).

Alex N. Press writes on a new report that found a growing CEO - worker pay gap even amid the pandemic-driven tight labor market (Jacobin).

 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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