Monday, March 9th
All the vampires, walkin' through the valley
It's been 70 days since the WHO were first notified about this novel coronavirus, and things are only moving quicker and quicker.
- Let's start with Italy, where overwhelmed hospital systems have led to the first major regional quarantine in Europe. Italy, taking a leaf out of eventually (partially) successful measures enacted in China, has ordered the lockdown of the country's weathy, propserous northern region of Lombardy and some surrounding provinces. An estimated 16 million people are affected by this, though much like in China, enforcement of the quarantine was preceded by an exodus as people fled the 'red zone', which seriously hampered the effectiveness of containment:
Thousands of people rushed to flee Northern Italy after plans by the government for a 16-million-person quarantine were leaked to the media ahead of time. The measure does not totally restrict movement within the areas, but it means places like schools, museums, and theaters are closed, events like weddings and funerals are suspended, and bars and restaurants must keep customers a minimum distance apart. People can enter or leave the affected area only for emergencies, with the possibility of jail time for those who break the rules.
The Italian newspaper Il Tempo reported that the draft plan's leaking prompted thousands of people to "leave Lombardy in a hurry before the rules were approved." Italian Prime Minister Giuseppe Conte called the leak "unacceptable" on Sunday, The Guardian reported. "This news created uncertainty, insecurity, and confusion, and we cannot tolerate this," he said. People fleeing prompted other cities and regions to check passengers arriving from the north, The Guardian reported. And Puglia, a region in Southern Italy, is requiring anyone who arrives from the north to quarantine themselves.
- The necessity of such a large quarantine in Italy, a wealthy, democratic European country, has focused attention on the likelihood of similar measures becoming necessary in other Western/European countries. Public sentiment could largely compartmentalise the unprecedented, huge Chinese lockdown as something thought only possible or probable in an autocratic Asian country. Suddenly, this fragile expectation has been abruptly shattered and the general public is starting to appreciate that this might be necessary for them, too, in their own countries before too long. In Italy, we're seeing a number of unfortunate incidents sparked by fear of coronavirus - particularly in prisons, where feelings of cramped helplessness may be amplified:
In a separate development, six people died in a prison riot in the city of Modena, following protests at the new restrictions, local media report. There were also riots at several other prisons in northern Italy. In Modena, officials say prisoners set fire to a cell block after they were told that visits would be suspended. It is thought that at least two of the dead lost their lives to drug overdoses after they raided the prison hospital for the heroin substitute methadone.
Mick in Harlow told Nick Ferrari that he's "been saving stuff for the past eight weeks" in preparation for a nationwide quarantine or general shortage of products in supermarkets. "We've got enough stuff for six months" he revealed to Nick. Nick suggested that the caller was stockpiling as a result of a widespread concern over coronavirus. "You've got to take steps" Mick insisted. He blamed his distrust of the government's method of tackling coronavirus and his own general health as factors in his preparation. Mick shared a general anger with the government, especially through revelations that British airports are still taking in flights from Italy "how do you suppose to stop the spread of this when you're not monitoring the people coming into the country?" Nick pointed out that because Mick is showing clear concern for the coronavirus outbreak, he can be found guilty of panic buying. The 70 year old caller ensured Nick that "this isn't panic buying" because his stash "has built up over the past eight weeks".
It's an easy rebuttal to point to experts and studies that conclude that travel restrictions make little to no difference to the spread of this or other similar outbreaks, but recent political events and now this crisis all show that trust in 'experts' is no match for the sentiment of the man down the pub.
- Russia and Saudi Arabia are engaging in a price war; Russia had balked at the Saudi plan for OPEC to reduce production to support crude prices during this outbreak as demand has plummeted, and Riyadh responded with a 180 degree turn - sharply increasing production and driving down prices.
Analysts have questioned the wisdom of Saudi Arabia’s approach. Its economy is not immune to a price crash, even if it believes it can win market share from its rivals. The price crash came at a difficult time for US shale. While production has soared over the past decade, leapfrogging that of Russia and Saudi Arabia, the industry has burnt through borrowed cash, alienating investors. That has left it vulnerable to a drop in prices. The huge oil price fall since the start of the year has thrown any remaining expansion plans into doubt.
At the time of writing, Brent crude had fallen as low as $31/barrel, having fallen over the last two months from a recent peak of $68 at the end of last year.
- Markets are reacting to the extreme volatility with their own panic; a trader friend of mine had predicted that "today is gonna be a disaster" and he's right. The FTSE has tanked over 8% and trading on the S&P 500 was briefly halted for 15 minutes through automatic circuit breakers after it fell 7% in the first few minutes of trading. The VIX, a surrogate measure of market uncertainty/volatility, has hit its highest point since the peak of the 2008 financial crisis. A recession is looming and this may be the Minsky Moment.
“This is a meltdown, this is an absolute meltdown,” says Michael Baker, who is leading the sales team at spread-betting firm ETX Capital.
- I've been talking about cruise ships for a little while, and now governments and passengers are coming around to the idea that they're a terrible idea. I understand the cutthroat pricing is hard to resist right now, but they're just such a bad industry generally and particularly in a pandemic.
- Good read about the 1918 pandemic in the context of the upcoming Boston St Patrick's Day Parade. Indeed, Ireland has just canceled its own St Patrick's Day Parade and other large gatherings are being scratched too worldwide.
- The possibility of school closures is generating ripples beyond the obvious, underscoring the societal difficulties that containment interventions may cause.
We're at a stage now where it has become apparent - not just to those following these threads/epidemiologists/virologists - that this outbreak is serious and will affect society and health globally. The public is crying out for clear, unambiguous, reliable information and we're not getting that from most of our leadership. China, at great civil/political/economic cost and through methods that we will probably ultimately deem reprehensible, tried what was probably the best possible attempt at containment and whilst that wasn't successful, it bought many weeks of forewarning, preparation, and research. However, at the local/trust/hospital level, it feels very much like we've squandered that and we have PPE shortages, unclear policies, capacity issues, and diagnostic bottlenecks.
War is an appropriate analogy, says Dr Richard Hatchett, the CEO of CEPI, but instead we've got partisan distractions and misinformation.