Reopening America...

Forty percent of low-income Americans ($40k or lower), lost jobs in March and 36 million claimed unemployment worth $48 billion. And future may be a lot worse. It does not look good. So, there is a strong incentive by the States and Fed governments to reopen business despite relentless coronavirus infection that continuously imprison people and business. And now many are willing to get arrested to reopen business, to survive, and crying out Constitutional rights to be free and right to open business. So then, what would be the real cost of reopening? Will business be protected from reinfection and liability? Well, seven weeks into lockdowns the economy may pose even darker message outlining country’s uncertain future. However, according to the FOMC Chairman Powell that the fundamentals of American economy is good and economic activity would resume and rebound in second half of the year. Meanwhile, many Americans are frustrated and angry as the COVID-19 devastates their lives. Many businesses will disappear permanently, and many must adapt quickly to survive and perhaps thrive. Remember change is expensive. What would be the real cost…?

‘SMS’ Highlights of the 19th week of 2020 (May 10 – May 16, 2020) 

1.    Reopening America…?     Donald Trump rolled out a new blueprint, dubbed Opening up America Again, that included ramping up testing and a partnership with drugstore chains to expand access to tests nationwide. “We are doing everything in our power to heal the sick and to gradually reopen our nation and to safely get our people back to work.” But the real truth is that the reopening of America will happen slowly, bit by bit, state by state, city by city, business by business, building by building. Corporate America will have as large a say as Trump as to when things will really reopen. So will the state governors. And as the US contemplates getting back to normal, it is also becoming clear our definition of “normal” may have changed forever. Several states have now begun unwinding the quarantine initiatives introduced as the pandemic hit the US. Texas started reopening, Georgia’s stay-at-home order expired on 30 April as Governor Brian Kemp has already allowed some businesses, including hair salons, gyms, tattoo parlors and bowling alleys to reopen. Alaska, Oklahoma, Colorado, Tennessee, and some other states are also relaxing their quarantine orders or preparing to. Big business is watching carefully, have started up again. But big business is not yet rushing to open its doors in a post Covid-19 world. Passionate arguments for reopening business rage on… How do you feel?

2.    Vaccine at ‘Warp Speed’...    Operation Warp Speed! President Donald Trump today officially introduced a former pharmaceutical executive and a four star-general who will lead his crash COVID-19 vaccine effort. General Gustave Perna who directs the U.S. Army Materiel Command, named as chief operating officer of “Operation Warp Speed,” likening it to the Manhattan Project effort to develop the atomic bomb. Also, former GlaxoSmithKline Plc executive Moncef Slaoui will be the project’s “chief scientist,” the most respected in the world in the production and the formulation of vaccines. Trump would love to see if it can be done before the end of the year. It may be risky, it is expensive, but it could be saving massive amounts of time, and be saving years.  Operation Warp Speed seeks to accelerate a process that is typically years-long into a matter of months. Some health experts have cast skepticism at the idea that a vaccine could be ready for emergency use in at-risk populations by the end of the year, while others like billionaire Bill Gates have said a vaccine could be ready within months.

3.    China Backlash.         Global backlash builds against China over Coronavirus lying and threatening disinformation as calls for inquiries and reparations spread. China has responded aggressively, mixing threats with aid, and adding to a growing mistrust of China. Australia has called for an inquiry into the origin of the virus. Germany and Britain are hesitating anew about inviting in the Chinese tech giant Huawei. President Trump has blamed China for the contagion and is seeking to punish it. Some governments want to sue Beijing for damages and reparations. Across the globe a backlash is building against CCP for its initial mishandling of the crisis that helped loose the coronavirus on the world, creating a deeply polarizing battle of narratives and setting back China’s ambition. China, never receptive to outside criticism and wary of damage to its domestic control and long economic reach, has responded aggressively, combining medical aid to other countries with harsh nationalist rhetoric, and mixing demands for gratitude with economic threats. Meanwhile, many see CCP’s authority and power being outright ignored by its own people and provincial governments, and many analysts see CCP fundamentally crumbling… What say ye?

Global Coronavirus status as of 5-15-2020:  4,520,000+ cases; 307,000+ dead;  US cases: 1,433,000+; US Dead: 86,900+  Details @: https://coronavirus.jhu.edu/map.html

5/15/2020:   DOW-23,685; S&P500-2,863; NASDAQ-9,014; Gold $1,754.10; Oil-$29.65;  US 10-Year: 0.644% 

Mahalo. I welcome and value your thoughtful comments, “like” and “share” of this publication. 

~ S. Vincent Shin

    www.dhirubhai.net/in/vshin

“Stay Curious” and “Think for Yourself” and always decide on your own term. This is my research and analysis of the highlights of the events that shake, move, and shape the market and people. Perhaps you should take a closer look at them, do additional research and analysis if these are interesting to you. This “SMS” weekly Highlights is presented for general knowledge, the resource for management, and perhaps as a tool for career development, and building wealth.

References and Image credits to Bloomberg News, The Wall Street Journals, Getty image, AP Photo, Reuters, CNBC, Auto Spies..., and special thanks to Image & Visual Consultant @U.Y. All references, news, and images are from open source and public domain.