News Update – Monday, April 13, 2020

APCO Worldwide's Coronavirus Beat is a twice weekly publication on the impact of COVID-19 on businesses, economies, policy and culture, and how leaders are responding. The next newsletter will appear Thursday, April 16.

Have a comment about this newsletter? We welcome your feedback.

Business & Economic Impact

1. Medical-supply firms ask for tariff relief on inputs necessary for products used to fight coronavirus pandemic, say U.S. tariffs hamper imports of sanitizer, disinfectants, The Wall Street Journal

2. As it continues to spread, COVID-19 is triggering an economic fallout that will drive millions into poverty and further increase inequality in South Asia, World Bank
3. More than 240,000 Chinese companies declared bankruptcy in the first two months of 2020, with more likely to follow, SupChina
4. Amazon announced it will hire another 75,000 workers, on top of 100,000 already hired, to address demand surge due to COVID-19, TechCrunch

5. Coronavirus pandemic to test China's unemployment safety net, Reuters

6. UK finance minister reportedly warned that GDP may contract by 30% in Q2 amid virus crisis, Reuters
7. Ford warns Q1 revenue expected to be down 15.7% year-on-year, with a pre-tax loss of $600 million, CNBC

Global Policy

1. After setting aside differences to reach an agreement on a EUR 500 billion aid package, EU leaders will convene on April 23 to discuss Europe's recovery, Politico
2. OPEC+ members agreed to cut oil production by 9.7 million barrels per day beginning May 1 in historic agreement, Bloomberg

3. Singapore to issue SGD 9 billion in April to help families, businesses, including a one-off payout of SGD 600 to nine in 10 Singaporeans, The Straits Times
4. China vows to unleash deep market-oriented reforms in key sectors of the economy from land to labor, South China Morning Post
5. The Pentagon plans to award $133 million to companies to ramp up domestic production of more than 39 million N95 face masks, Axios

6. Europe’s drive to save jobs risks fueling north-south inequality as it relies on short-term paid leave schemes to shield its workers from a US-style surge in unemployment, Financial Times
7. G20 members are proposing a six-month freeze on bilateral government loan repayments to avoid a debt crisis in emerging markets, Financial Times

Control Measures

1. India will extend a strict nationwide lockdown imposed last month to stop the spread of the coronavirus, BBC

2. Following criticisms over quality, China tightens customs checks for medical equipment exports, The Wall Street Journal
3. As the U.S. weighs economic reopening in May, some officials fear that relaxing protective measures too early could cause the virus to surge again, The New York Times
4. South Korea plans tracking wristbands for people who defy quarantine, Bloomberg

5. Spain loosens restrictions for manufacturing, construction and some service workers to return to work, BBC

6. Cambodia's Parliament passes state of emergency bill to allow for the monitoring of communications and prohibition of information that could generate public unrest, Reuters

Events & Happenings

1. More coronavirus vaccines and treatments move toward human trials, The New York Times

2. Singapore bans teachers from using Zoom after hackers post obscene images on screens, The Guardian
3. Muslims prepare to mark Ramadan, Hari Raya at home, as restrictions on mass worship in the region pose challenge for devotees, The Straits Times
4. China denies mistreatment claims following angry protests from African nations, as warnings against imported COVID-19 cases stoke anti-foreigner sentiment, South China Morning Post

5. UK Prime Minister Boris Johnson leaves the hospital and expresses thanks to the NHS, saying 'things could have gone either way,' CNN
6. In a break with longstanding tradition due to COVID-19, the U.S. Supreme Court said it will hear arguments via teleconference beginning in May, The Wall Street Journal

Stay Ahead: Insights from APCO

A Futurist Meets the C-Suite: Making This Moment Matter

On Tuesday, April 14 from 10:00-11:00 AM EST, join The Tembo Group, an APCO Worldwide company, and Business for Social Responsibility (BSR) for a virtual roundtable on post-COVID scenarios and the best paths for business and philanthropic leaders to secure social and environmental progress.

RSVP here.

Reputation Tracking and Staff Engagement for Health Systems During and After COVID-19

Although it is unclear when the COVID-19 crisis will end, now is the time for health system communications teams to measure, monitor and analyze their local/regional reputation and online conversations about their organizations, and invest in anti-burnout efforts, so they are prepared to emerge stronger once the crisis ends.

With decades of experience helping healthcare organizations manage crises, improve communications and protect reputations, APCO can help you navigate this complex environment and emerge more resilient and agile for the future.

Recap: America Adjusting

APCO is tracking Americans' attitudes and behaviors related to COVID-19 in a series of weekly polls. The latest installment, from polling conducted on April 3, looks at Americans' attitudes on the impact of social distancing and outlooks for a return to 'normal' life.

Life During the COVID-19 Outbreak: How Parents Working from Home are Feeling About Their Situation and How Employers Can Help Guidance

APCO Insight conducted a pulse survey on March 31, 2020, to explore the strategies that employers are taking to help working parents navigate working from home. Katie Sprehe and Vaishali Udani share the key findings on what employers can do:

#1: Recognize that those working from home with kids won’t be as productive at this time. Parents working from home are just as concerned with getting the coronavirus (76%) as they are with having to homeschool their kids (76%).

#2: Parents working from home expect their employers to have the right policies in place to help them navigate this stressful situation. This cohort puts high priority on employers providing flexible work schedules (86% important) and ensuring employees have paid time off/sick leave (85% important) during this time.

Toto, it Sure Doesn't Feel Like an Election Year Anymore

Dan Smith, associate director in APCO Worldwide's Washington D.C. office, on the impact of the COVID-19 pandemic on U.S. presidential campaigns and the upcoming election:

"COVID-19 has forced the 2020 campaigns—much less our connections with friends and family—into virtual mode for the foreseeable future. Campaign rallies have been replaced by campaign podcasts...Community organizers and campaign staffers who spent past years going door-to-door to stump for their candidate now use peer-to-peer texting tools to garner support.

2020 certainly isn’t the election year we expected. But the COVID-19 pandemic has presented candidates and elected officials with the opportunity to fill the void in human contact created by the crisis with authentic virtual communications that foster connections, [and] arm individuals with the information they need to stay safe."

ECONOMIC TRANSITIONS

As the impact of COVID-19 ravages the global economy, governments are racking their brains. Countries like the United States, and Thailand are reporting record high job loss rates, forcing them to spend big on soft loans, tax breaks and financial support to keep the economy afloat. For developing economies, the situation is much more dire. Total lockdowns and the shuttering of businesses have cut the livelihood of many people working in the informal economy, without any safety net or adequate social welfare to support them. In South Asia, where the virus is accelerating, institutions warn of a looming economic crisis which could cause the region to crumble.

The economic impact of the virus outbreak has heightened the debate over alternative economic models, in attempts to move towards more sustainable functioning. Announcements by Spain’s government to provide some form of a Universal Basic Income shed light on public efforts to prioritize welfare during the pandemic. The Netherlands is also working towards economic reforms to emulate the ‘doughnut model,’ committing economic reform to guarantee essential life services for individuals. These moves reflect a growing recognition of governments to consider more sustainable economic models that ensure some degree of social equity and minimize damage in times of severe economic contraction. Moreover, it serves to acknowledge the need to build social resilience in the economy, which will be essential to facilitate the global economic recovery once the pandemic subsides.

TO EASE OR NOT TO EASE?

A key element of the global economic recovery is determining how soon governments can allow their nation's businesses to return to work. After more than 11 weeks of a lockdown on the Chinese epicenter of Wuhan, and despite fears of a secondary outbreak, Chinese businesses are slowly resuming work. Several European countries, including some of the worst hit by the pandemic, are now preparing to loosen restrictions. On April 13, Spain announced relaxed measures on manufacturing and construction workers, while the Italian government will loosen measures beginning April 14 on some shops to allow business resumption, even as a nationwide lockdown remains until May 3. Denmark and Austria, which were both quick to respond to the pandemic, are also introducing gradual plans to ease their respective lockdowns. Stateside, a drop in the daily United States infection rate on Friday led some officials to suggest that some portions of the country could resume a "rolling re-entry," as early as next month.

Governments are still on high alert about the risk of a secondary wave of infections, especially as normal business operations resume. From an economic perspective, secondary or tertiary outbreaks could further prolong the economic pain that governments are seeking to avoid. As governments prepare to ease restrictions, businesses should keep abreast of both official public health guidance and government announcements on work resumptions and compliance measures that can impact their operations. Just as business continuity plans were essential to responding to the first waves of the pandemic, updating and reviewing these plans will be critical to ensuring that businesses are adequately prepared for the first signs of work resumption.

Some Positive News

Easter celebrations: From online sermons to drive-through church services, this is how the world celebrated Easter amid the outbreak, The Washington Post
Joint efforts: Chinese and American scientists, companies and research firms are working together despite the fact that their respective governments cannot get on the same page, Inkstone
In sickness and in health: Couples get creative in finding ways to get married, despite social distancing and lockdown measures, The New York Times

More Tips from Around the Water Cooler

Preparing your business for a post-pandemic world, Harvard Business Review
Protecting reputation and engaging healthcare workers during and after COVID-19, APCO Worldwide
Should the public wear masks to slow the spread of COVID-19? Yes, but not at the expense of those worn by medical staff, The Economist
How should people with mild symptoms self-quarantine?, The Wall Street Journal (video, 2 minutes)
The big lesson from South Korea's coronavirus response? Testing, Vox (video, 8 minutes)

Quotables

“There will be time for post-mortems. Very few countries are going to get an A-grade for what that scrambling looked like...We didn't simulate this, we didn't practice, so in both the health policies and economic policies we find ourselves in uncharted territory."

- Bill Gates, Bill & Melinda Gates Foundation Co-Chair

“The closure of this facility, combined with a growing list of other protein plants that have shuttered across our industry, is pushing our country perilously close to the edge in terms of our meat supply. It is impossible to keep our grocery stores stocked if our plants are not running."

- Kenneth M. Sullivan, Smithfield President & CEO

The APCO team is working with clients globally to manage this crisis, and we stand ready to support your needs. For more resources from APCO, including our latest research, information on how we can help or to contact us, visit apcoworldwide.com/coronavirus.

About Coronavirus Beat

Coronavirus Beat is a bulletin of updates and clippings from the most relevant media and government sources created to help APCO’s clients keep abreast of the impacts of COVID-19 from around the world. APCO is supporting clients in managing the issues they confront related to the outbreak. Contact our crisis team at Crisis360@apcoworldwide.com or +1.866.360.APCO (toll-free) or +1.866.483.2726 (outside the United States).

APCO Worldwide is an advisory and advocacy communications consultancy helping leading public and private sector organizations act with agility, and build organizational reputations, brands, relationships and solutions to succeed. APCO has offices in more than 30 major cities throughout the world. To find out how APCO’s integrated services can help your company, visit apcoworldwide.com.