(Bloomberg) — A second wave of coronavirus cases is emerging in the U.S., raising alarms as new infections push the overall count past 2 million Americans.Texas on Wednesday reported 2,504 new coronavirus cases, the highest one-day total since the pandemic emerged.A month into its reopening, Florida this week reported 8,553 new cases — the most of any seven-day period.California’s hospitalizations are at their highest since May 13 and have risen in nine of the past 10 days.A fresh onslaught of the novel coronavirus is bringing challenges for residents and the economy in pockets across the U.S. The localized surges have raised concerns among experts even as the nation’s overall case count early this week rose just under 1%, the smallest increase since March.“There is a new wave coming in parts of the country,” said Eric Toner, a senior scholar at the Johns Hopkins Center for Health Security. “It’s small and it’s distant so far, but it’s coming.”Though the outbreaks come weeks into state reopenings, it’s not clear that they’re linked to increased economic activity. And health experts say it’s still too soon to tell whether the massive protests against police brutality that have erupted in the past two weeks have led to more infections.In Georgia, where hair salons, tattoo parlors and gyms have been operating for a month and a half, case numbers have plateaued, flummoxing experts.Puzzling differences show up even within states. In California, which imposed a stay-at-home order in late March, San Francisco saw zero cases for three consecutive days this week, while Los Angeles County reported well over half of the state’s new cases. The White House Coronavirus Task Force has yet to see any relationship between reopening and increased cases of Covid-19, Food and Drug Administration Commissioner Stephen Hahn said on a podcast.But in some states, rising numbers outpace increases in testing, raising concerns about whether the virus can be controlled. It will take a couple of weeks to know, Toner said, but by then “it’s going to be pretty late” to respond.QuickTake: Where Are We in Quest for Coronavirus Drugs, Vaccine?Since the pandemic initially swept the U.S. starting early this year, 2 million people have been infected and more than 112,000 have died.After a national shutdown that arrested the spread, rising illness had been expected as restrictions loosened. The trend has been observed across 22 states in recent weeks, though many increases are steady but slow.In New York, the state hardest hit by Covid-19, Governor Andrew Cuomo only recently started reopening by region. New York City, the epicenter, began the first of four phases Monday.“We know as a fact that reopening other states, we’re seeing significant problems,” Cuomo said Tuesday. “Just because you reopen does not mean you will have a spike, but if you are not smart, you can have a spike.”Experts see evidence of a second wave building in Arizona, Texas, Florida and California. Arizona “sticks out like a sore thumb in terms of a major problem,” said Jeffrey Morris, director of the division of biostatistics at University of Pennsylvania’s Perelman School of Medicine.Arizona SpikeArizona’s daily tally of new cases has abruptly spiked in the last two weeks, hitting an all-time high of 1,187 on June 2.This week, its Department of Health Services urged hospitals to activate emergency plans. Director Cara Christ, told a Phoenix television station that she was concerned about the rising case count and percentage of people tested who are found to be positive.Valleywise Health, the public hospital system in Phoenix, has seen an increase in Covid-19 cases during the past two weeks. It’s expanded its intensive-care capacity and those beds are 87% full, about half with Covid patients, according to Michael White, the chief medical officer.White said Valleywise has adequate protective gear for staff, but hospitals aren’t getting their entire orders. A surge in Covid cases could put that supply under stress, he said.The increase in transmission follows steps to resume business and public life.“Within Phoenix, we’ve been more relaxed than I’ve seen in some of the other parts of the country,” White said, with some people disregarding advice to wear masks and maintain six feet of distance from others. “People are coming together in environments where social distancing is challenging.”Texas on Wednesday reported a 4.7% jump in hospitalizations to 2,153, the fourth consecutive daily increase. The latest figures showing an escalation came as Governor Greg Abbott tweeted a public service announcement featuring baseball legend Nolan Ryan urging Texans to wash their hands and to not be “a knucklehead.”Abbott was criticized for an aggressive reopening last month. Mobile-phone data show activity by residents is rebounding toward pre-Covid levels, according to the Children’s Hospital of Philadelphia’s PolicyLab.That could reflect a perception that the virus wasn’t “ever a big threat,” said Morris, who recently moved to Philadelphia after 20 years in Houston.Florida’s health department said in a statement that it attributes the increase in cases to “greatly expanded efforts in testing,” and noted that overall positivity rates remain low, at about 5.5%.Bucking the trend is Georgia, which was the first U.S. state to reopen. Covid cases there have plateaued. Despite local outbreaks in the state, “their sea levels did not rise,” said David Rubin, director of the PolicyLab, which has been modeling the virus’ spread. “They’ve kind of held this fragile equilibrium.”Creeping InCalifornia was the earliest state to shut down its economy over the coronavirus, after one of the nation’s first outbreaks in the San Francisco Bay Area. It has been slower than most to reopen.Even so, the state has also seen the number of people hospitalized with Covid-19 rebound in the past two weeks, as commerce accelerates. Case counts are climbing too, although officials attribute that to increased testing and say it’s a sign of preparation.In part, rising numbers represent the virus spreading into places that largely avoided the first round of infections, including rural Imperial County in California’s southeastern desert. Yet the contagion remains present in places that bore the brunt of the first wave, including Los Angeles County. Hospitalizations there are lower than at the start of May, but deaths remain stubbornly high, with 500 in the past week alone.Barbara Ferrer, Los Angeles County public health director, said the region has likely not seen the end of the first wave. And despite concerns about infections coming out of mass demonstrations in the sprawling city, she thinks the reopening of the economy will have a bigger impact.“We’re not at the tail end of anything,” Ferrer said. “We never had a huge peak. We’ve kind of been within this band. We’re not in decline, we’re kind of holding our own in ways that protect the health-care system.” But, she added, “go to Venice and see the crowds, and you’ll understand why I have concerns.”Another OnslaughtThe U.S. has long been bracing for another wave, but future outbreaks are likely to take a different shape. Social distancing and mask-wearing, as well as careful behavior by individuals, are likely to have staying power even as economies reopen.Experts are steeling for autumn, when changes in weather and back-to-school plans could have damaging repercussions.“The second wave isn’t going to mirror the first wave exactly,” said Lance Waller, a professor at Emory University’s Rollins School of Public Health in Atlanta. “It’s not snapping back to exactly the same thing as before, because we’re not exactly the way we were before.”Daniel Lucey, a fellow at the Infectious Diseases Society of America, compared the virus’ new paradigm with a day at the beach: The U.S. has been bracing for another “high tide” like the one that engulfed New York City. Today is a low tide, but “the waves are always coming in.”(Adds cases reaching 2 million in headline and first paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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Top news and what to watch in the markets on Thursday, June 11, 2020.

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Shares in Sorrento (SRNE) are rallying 17% in Thursday’s pre-market trading after the company announced that an Application for Emergency Use Authorization (EUA) is under review at the US FDA for is Covid-19 diagnostic test kit.Its COVI-TRACK in vitro diagnostic test kit enables the independent detection of IgG and IgM antibodies in sera of patients exposed to the SARS-CoV-2 virus.The rapid antibody test allows for results to be available in eight minutes or less. It reveals whether someone has been exposed to or potentially had coronavirus, and subsequently created antibodies to combat the infection.Analytical validation was performed by testing sample cohorts from healthy donors and confirmed positive COVID-19 patient samples by RT-PCR testing, and the assay demonstrated a specificity greater than 97% and diagnostic sensitivity of greater than 94%.Upon issuance of an EUA, the COVI-TRACK test will be available for distribution to clinical testing sites nationwide, says Sorrento.The company has already secured manufacturing capacity to support the production of up to five million test kits per month.Shares in Sorrento are currently trading up 35% on a year-to-date basis, and analysts have a Moderate Buy consensus on the stock’s outlook. The $24 average analyst price target indicates significant upside potential from current levels. (See SRNE stock analysis on TipRanks).Last week, Sorrento disclosed that in preclinical trials, the company’s monoclonal antibody (MaB), STI-4938, code named COVIDTRAP, inhibited SARS-CoV-2 viral infection in vitro.Sorrento has another antibody in development, STI-1499 (COVI-SHIELD), which also recently demonstrated promising in vitro results as it was able to completely block the SARS-CoV-2 virus.While it is still early on for both antibodies, H.C. Wainwright analyst Ram Selvaraju is encouraged by the additional positive results. “Together with Sorrento’s previously announced preclinical neutralizing antibody candidate, STI-1499, COVIDTRAP may provide a potent antidote against COVID-19,” the analyst said.Related News: 5 Promising Covid-19 Vaccines Picked For Trump’s Operation Warp Speed What Would a Merger Mean for Gilead? Top Analyst Weighs In Soleno Plunging 48% In Pre-Market On Obesity Study Failure More recent articles from Smarter Analyst: * Boeing’s $44 Billion Tanker Decision Delayed By Four Years – Report * Just Eat Takeaway.com To Snap Up Grubhub For $7.3 Billion * Starbucks Expects $3.2 Billion Revenue Loss In Q3 Due To Covid-19  * J&J; Brings Human Trial Start Of Its Covid-19 Vaccine Forward To July

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Boeing Co. (BA) is facing another setback as the U.S. Air Force has delayed by four years a decision on whether its $44 billion KC-46 tanker program should be approved for full-rate production.According to a Bloomberg report, the U.S. Air Force will announce a decision in July to September of 2024. It was previously planned for this September.The decision comes as Boeing, who is the contractor of the program since 2011, is trying to show it has fixed the flawed camera system used for the plane’s midair refueling mission.The Pentagon’s testing office seeks to postpone completion of ongoing combat testing and a final evaluation report until Boeing produces an improved, production-ready version of the “Remote Vision System”.At the same time, the Air Force said the delayed decision won’t affect orders to Chicago-based Boeing, which has already delivered the first 33 KC-46 tankers with the flawed system. The planemaker is set to produce 179 KC-46s under the program contract.Declaring a full-rate production is supposed to be a Pentagon stamp of approval that the system has demonstrated its combat effectiveness and that it can be efficiently produced and maintained.The news comes as Boeing reported this week that aircraft deliveries continued to decline in May, while order cancellations increased due to the travel restrictions tied to the coronavirus pandemic, which have throttled commercial jet demand.The travel demand freeze resulted in a deep cut in the number of commercial jets and services Boeing customers need over the next few years. As such, global airlines suffering billions of dollars in losses have been seeking to cancel or delay some of the orders they have with Boeing.COVID-19 has hit the planemaker very hard, with shares still down almost 40% since the beginning of the year. The stock is down 7.5% to $188.07 in today’s pre-market trading after dropping 6% on Wednesday.Wall Street analysts are cautiously optimistic on the stock. Nine Buys, 11 Holds, and 1 Sell rating give Boeing a Moderate Buy analyst consensus, with the $177.89 average analyst price target reflecting 13% downside potential in the shares over the coming year. (See Boeing stock analysis on TipRanks).Related News: Global Airlines Are Set To Lose $84.3 Billion In 2020, IATA Says Boeing’s Aircraft Deliveries Drop In May As Cancellations Rise Airbus Gets No New Aircraft Orders In May Amid Aviation Crisis More recent articles from Smarter Analyst: * Sorrento Soars 17% In Pre-Market On Covid-19 Test Application * Just Eat Takeaway.com To Snap Up Grubhub For $7.3 Billion * Starbucks Expects $3.2 Billion Revenue Loss In Q3 Due To Covid-19  * J&J; Brings Human Trial Start Of Its Covid-19 Vaccine Forward To July

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(Bloomberg) — Losses picked up in U.S. stock index futures after the Federal Reserve signaled that the path to economic recovery will be long and as worries over a second wave of coronavirus infections grew.June contracts on the S&P 500 fell 1.6% as of 8:28 a.m. in London, extending earlier declines. Those on Dow Jones Industrial Average dropped 2%.In Europe, the benchmark Stoxx 600 Index slumped 2.7%, with all subgroup gauges dropping and the losses led by shares of travel companies and banks.Fed Chairman Jerome Powell Chair indicated on Wednesday the central bank will keep providing stimulus into the U.S. economy until its troubled labor market has recovered from the harm of the coronavirus pandemic.The latest Fed meeting conclusion has “certainly been the trigger to renew growth concerns for markets,” said Jingyi Pan, market strategist at IG Asia Pte. “This reminder that the Covid-19 hit to the economy is still a very prevalent issue has also been bolstered by reports of a surge in some localized cases in the U.S., altogether seeing to the continued paring back of the earlier risk-on sentiment in markets.”Coronavirus cases reached 2 million in the U.S., according to data from Johns Hopkins University. That’s after Texas recorded 2,504 new cases, the highest one-day total since the pandemic emerged, according to state health department figures.(Adds Federal Reserve’s comments and European stocks)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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(Bloomberg Opinion) — The Covid-19 pandemic has brought the usually resilient aerospace industry to its knees. Air passenger traffic has collapsed by 90% in Europe and isn’t likely to get back to pre-virus levels for several years. Airlines are fighting for survival and have grounded their fleets. Passenger-jet makers Airbus SE and Boeing Co., after years of briskly building planes to meet booming demand, are slashing investments, jobs and production in a world where nobody wants new aircraft. Their suppliers are equally suffering.Nothing like this has been seen since the “Boeing Bust” of the early 1970s, when defense cutbacks, airliner belt-tightening and a consumer recession led to losses and bailouts across the industry. Boeing survived, but its hometown of Seattle was scarred by layoffs. A billboard was put up to reflect the mood: “Will the last person leaving Seattle turn out the lights.”French President Emmanuel Macron is understandably keen to avoid this kind of bust hitting Toulouse, where Airbus and other aerospace firms such as Latecoere SACA are based. His administration this week unveiled a string of measures, totaling 15 billion euros ($17 billion), to support the aviation industries, including loan guarantees, wage subsidies for furloughed workers and an investment fund for small businesses.For all the government’s talk of creating new, greener aircraft of the future, this is really about protecting the economy and strategic pride: There are 300,000 aerospace jobs in France, and the industry is a key export that posted a trade surplus of 31 billion euros in 2019.One has to wonder, though, whether even $17 billion is enough. Almost half the aid will go to Air France-KLM, in the form of loans and guarantees, in return for a reduction in carbon emissions and services on its domestic routes. Although the state has asked the carrier to be a “good customer” of Airbus, you can’t really force an airline to keep buying planes in a demand-led recession. As for the rest of the package, while it does offer some form of safety net for workers and engineers, it’s unlikely to offset the need for cuts. Jefferies analysts expect net aircraft orders (orders minus cancellations) at Airbus and Boeing to be -1,500 this year and zero the next. There’s also the risk that the scale of the damage, along with greater state intervention, will fan the flames of trade wars. We aren’t yet at the stage of nationalizations like that of Britain’s Rolls-Royce Plc in the 1970s, but the current combination of central-bank and fiscal stimulus does point to ever-more government nudging of supply and demand if the sector’s woes get worse.Boeing was recently in line to receive a whopping $60 billion in U.S. government aid — which it ended up turning down, but it may not have that luxury next time. In Europe, politicians are increasingly keen to invoke “sovereignty” on the world stage as a reason to step in to boost domestic industry, especially with Donald Trump imposing trade tariffs in response to a 16-year spat over aircraft subsidies. “We don’t intend to be the world’s village idiots,” French Finance Minister Bruno Le Maire said on Tuesday, referring to global protectionist trends.To be sure, there are some glimmers of hope out there, and for Airbus in particular. It can at least claim to be in a relatively stronger position than Boeing, which was at a “huge disadvantage” going into this crisis, according to Teal Group’s Richard Aboulafia. Airbus’s hugely successful A320 single-aisle planes look well placed for a world of downsizing, where less is more. Boeing, meanwhile, has the unenviable baggage of high debt levels and the huge reputational damage of the MAX aircraft catastrophe.But trying to preserve Airbus’s lead may clash with the reality that aerospace recoveries are slow and painful for everyone. Nick Cunningham, an analyst at Agency Partners, expects aircraft deliveries to remain depressed for years, with none of the usual growth levers — such as emerging-market demand — helping. Supply chains have been strained by the virus, and the wheels of visa-free travel in Europe still aren’t turning. Aerospace jobs and technological assets are worth fighting for, but they’re not saved yet.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Lionel Laurent is a Bloomberg Opinion columnist covering Brussels. He previously worked at Reuters and Forbes.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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