World goes on to war footing to fight coronavirus pandemic

The US government has approved the use of the malarial drug choloroquine for treating Covid-19, President Trump announced today. The suggestion is it can help fight the disease.

Trump also described himself as a “wartime president” and promised “total victory” over coronavirus. As part of the move to massively step up the US response, which has been widely criticised as inadequate, domestic production of medical supplies is to be massively increased using a Korean War era law to expedite the process.

Two US Navy hospital ships are also being deployed in an effort to help with the anticipated shortage of hospital beds. The number of confirmed cases has spiked to over 10,000 as mass testing starts to be rolled out.

The US government is also moving to shore up the economy as well. The initial relief bill focused on unemployment benefits, sick leave, and free testing was overwhelmingly approved by the Senate today. The White House is considering further measures including direct cash grants to Americans.

These measures come as Brazil demonstrated how public anger can grow if governments respond ineffectively to the pandemic. In Brazil millions of protesters banged pots and pans on their balconies and chanted for the resignation of President Jair Bolsonaro who has previously dismissed precautions taken against the novel coronavirus as “hysteria”.

The European Union is also taking emergency measures. The European Central Bank (ECB) has launched an emergency €750bn ($820bn; £706bn) Pandemic Emergency Purchase Programme which will buy up company and country debt. It seems more will be made available if necessary with the ECB’s chief, Christine Lagarde, tweeting “there are no limits” to the ECB’s commitment. Additionally moves are being made by the EU to build a €50m (£46m) stockpile of vital medical equipment such as masks, protective clothing and ventilators. This comes as the EU’s chief Brexit negotiator Michael Barnier has also tested positive for the virus.

Signs of economic stress are everywhere. In financial markets European stocks have rebounded today but Asian markets remained turbulent with the Nikkei closing down 1%. Meanwhile, at last glance the Dow Jones and S&P 500 were in turmoil, though they are just edging into positive territory.

Many financial institutions are struggling with Millenium Management, one of the world’s biggest hedge funds, closing several of its trading teams.

Airlines have also been hit very hard by the crisis. Qantas has cancelled all international flights, becoming the latest airline to do so. Meanwhile, Transtate Airline has become the second carrier to go bankrupt – though it was scheduled to be wound up by the end of the year.

The massive drop off in air travel comes as an increasing number of countries move to impose travel bans. Australia, New Zeland, and India have all announced today that they will begin enforcing bans on international travel imminently.

Domestic restrictions are also spreading. India is to undergo a one day “test quarantine” to allow the government to assess how the country will cope with potential future measures. Even North Korea has also announced it will be extending its school closures. France is considering extending its lockdown period and Italy already has with its death toll poised to overtake China’s.

Indeed, the rate of infection increased sharply across the world. Spain and Australia have seen a spike in cases. Fiji reported its first case today. Russia has confirmed its first death. Even Singapore, which has been widely praised for its effective response, has seen its numbers increase though most new cases were from foreigners entering the country and overall numbers remain low.

China has reported no new domestic cases today. All new cases detected have come from foreign travellers suggesting its strict quarantines are proving effective.

Indeed, countries which have not adopted tight restrictions are facing growing calls to do so. France has threatened to ban Britons from entering the country unless the UK adopts quarantine measures of its own. The head of the World Health Organisation Tedros Adhanom Ghebreyesus called on Africa to “wake up” and take action. A number of African states including South Africa, Kenya, Uganda, Botswana, Chad, Liberia, Mauritius have taken steps to enforce social distancing and/or limit travel.

If there is one upside the mass quarantine’s disruption of economic activity means that the levels of air pollutants and greenhouse gases has dropped significantly in a number of areas. Emissions will spike sharply when life begins to return to normal and governments move to quickly stimulate the economy. Voters by then will likely be pleased to see any signs of economic activity.