1 00:00:06,040 --> 00:00:11,960 Speaker 1: Welcome to Prognosis. I'm Laura Carlson. It's day six since 2 00:00:12,000 --> 00:00:17,960 Speaker 1: coronavirus was declared a global pandemic. Our main story. Madrid 3 00:00:18,280 --> 00:00:21,480 Speaker 1: was one of Europe's hardest hit cities by the coronavirus, 4 00:00:22,040 --> 00:00:26,720 Speaker 1: but now it's springing back to life. We explore how 5 00:00:26,760 --> 00:00:30,240 Speaker 1: the city is preparing to reopen hundreds of bars and restaurants. 6 00:00:30,760 --> 00:00:34,080 Speaker 1: We'll talk to owners about the unique challenges they're facing 7 00:00:34,320 --> 00:00:39,760 Speaker 1: as they struggle to keep these cherished businesses going. But first, 8 00:00:40,640 --> 00:00:51,320 Speaker 1: here's what happened today. The US unemployment rate unexpectedly fell 9 00:00:51,400 --> 00:00:55,440 Speaker 1: in May as the economy posted a surprise increase in jobs. 10 00:00:56,400 --> 00:00:59,800 Speaker 1: The report signals the economy is picking up faster than 11 00:00:59,840 --> 00:01:06,320 Speaker 1: an anticipated that said twenty one million Americans remain unemployed. 12 00:01:08,160 --> 00:01:11,000 Speaker 1: The jobless rate is still higher than at any other 13 00:01:11,160 --> 00:01:17,880 Speaker 1: time since ninety and economists say the unemployment rate for 14 00:01:17,920 --> 00:01:22,880 Speaker 1: African Americans actually ticked up to sixteen point eight percent. 15 00:01:23,760 --> 00:01:27,960 Speaker 1: That's more than four percentage points higher than for white Americans. 16 00:01:29,360 --> 00:01:32,199 Speaker 1: This comes after more than a week of protests over 17 00:01:32,319 --> 00:01:38,959 Speaker 1: racism and police brutality. New York City reached an important 18 00:01:38,959 --> 00:01:43,160 Speaker 1: milestone in its battle against the coronavirus. For the first 19 00:01:43,200 --> 00:01:47,840 Speaker 1: time since March, the city reported no confirmed fatalities from 20 00:01:47,840 --> 00:01:52,760 Speaker 1: the virus. For months, the city was the global epicenter 21 00:01:52,800 --> 00:01:56,760 Speaker 1: of the pandemic. In April, the city had almost six 22 00:01:56,880 --> 00:02:03,720 Speaker 1: hundred confirmed deaths per day, but elsewhere the news is grave. 23 00:02:04,880 --> 00:02:08,040 Speaker 1: Brazil surpassed Italy as the country with the third most 24 00:02:08,080 --> 00:02:12,240 Speaker 1: fatalities in the world, and even as the pandemic eases 25 00:02:12,320 --> 00:02:16,880 Speaker 1: in some countries, the virus continues to spread. There are 26 00:02:16,919 --> 00:02:21,359 Speaker 1: about one hundred thousand new cases being added every day 27 00:02:21,520 --> 00:02:27,760 Speaker 1: as hot spots emerge in Latin America and the Middle East. Finally, 28 00:02:28,400 --> 00:02:31,560 Speaker 1: the US Centers for Disease Control and Prevention says a 29 00:02:31,680 --> 00:02:36,000 Speaker 1: startling number of Americans are using bleach on food or 30 00:02:36,120 --> 00:02:41,120 Speaker 1: misusing household cleaners in attempts to protect themselves from the coronavirus. 31 00:02:42,840 --> 00:02:45,920 Speaker 1: The agency on Friday released the results of an online 32 00:02:45,960 --> 00:02:49,440 Speaker 1: survey of five hundred people. The survey found that about 33 00:02:49,440 --> 00:02:53,800 Speaker 1: a third of the respondents engaged in quote non recommended 34 00:02:54,120 --> 00:02:59,040 Speaker 1: high risk practices. These included applying household cleaners to the 35 00:02:59,160 --> 00:03:04,640 Speaker 1: skin or inhaling or ingesting them, risking quote severe tissue 36 00:03:04,680 --> 00:03:10,720 Speaker 1: damage and corrosive injury. The report doesn't directly reference President 37 00:03:10,760 --> 00:03:14,320 Speaker 1: Trump's widely denounced suggestion at a news conference in April, 38 00:03:14,680 --> 00:03:17,720 Speaker 1: when he urged researchers to study the use of light 39 00:03:18,040 --> 00:03:23,200 Speaker 1: or disinfectants on human bodies as potential treatments for the coronavirus. 40 00:03:28,200 --> 00:03:33,760 Speaker 1: And now our main story, Madrid is opening back up 41 00:03:33,800 --> 00:03:37,560 Speaker 1: after a long, hard few months. The city has endured 42 00:03:37,720 --> 00:03:42,400 Speaker 1: sixty nine thousand cases of coronavirus and almost nine thousand 43 00:03:42,440 --> 00:03:47,160 Speaker 1: people have died. Bloomberg reporter Jeanette Newman takes us to 44 00:03:47,240 --> 00:03:51,960 Speaker 1: a post lockdown Madrid that is both heartbroken and giddy, 45 00:03:52,840 --> 00:03:55,560 Speaker 1: heartbroken by the loss of thousands of its citizens to 46 00:03:55,600 --> 00:03:59,600 Speaker 1: the pandemic, but giddy with a renewed sense of possibility 47 00:04:00,160 --> 00:04:17,760 Speaker 1: despite the challenges that lie ahead. H I cursed that 48 00:04:17,920 --> 00:04:22,159 Speaker 1: sound every morning for about six years, A nearby shop 49 00:04:22,160 --> 00:04:25,479 Speaker 1: owner rolling up the metal shutters covering his storefront a 50 00:04:25,680 --> 00:04:30,120 Speaker 1: screeching start to every day. But for two months, during 51 00:04:30,120 --> 00:04:32,599 Speaker 1: the confinement in the center of Madrid where I live, 52 00:04:33,200 --> 00:04:37,320 Speaker 1: the mornings were silent, so we're the afternoons and evenings. 53 00:04:38,640 --> 00:04:42,400 Speaker 1: The screeching started again about two weeks ago. The sound 54 00:04:42,839 --> 00:04:45,719 Speaker 1: still grates on me, but I have a bit of 55 00:04:45,720 --> 00:04:49,359 Speaker 1: a soft spot for it. Now it's become a daily 56 00:04:49,440 --> 00:04:52,960 Speaker 1: reminder that the city and the broader Spanish economy are 57 00:04:53,000 --> 00:05:01,800 Speaker 1: coming back to life. Spain's government is gradually lifting one 58 00:05:01,839 --> 00:05:06,600 Speaker 1: of Europe's strictest lockdowns in four stages, province by province, 59 00:05:06,839 --> 00:05:10,200 Speaker 1: and in fourteen day increments. It's as if those of 60 00:05:10,279 --> 00:05:12,400 Speaker 1: us living in Spain had been forced to go on 61 00:05:12,400 --> 00:05:16,159 Speaker 1: a fast for two months, and now we're slowly reintroducing 62 00:05:16,200 --> 00:05:21,159 Speaker 1: some of life's pleasures. First a bicycle ride outside, then 63 00:05:21,360 --> 00:05:26,120 Speaker 1: visits with friends and family, eating and dining out, eventually travel. 64 00:05:27,279 --> 00:05:29,719 Speaker 1: In Madrid, we're in the second week of what's known 65 00:05:29,720 --> 00:05:33,720 Speaker 1: as Phase one. Most noticeably that means madri Lanos have 66 00:05:33,800 --> 00:05:36,479 Speaker 1: been allowed to drink and dine outside at bars and 67 00:05:36,560 --> 00:05:40,800 Speaker 1: restaurants the first time since mid March. The sounds of 68 00:05:40,839 --> 00:05:50,000 Speaker 1: the city are slowly returning. That's this Sunday before we 69 00:05:50,160 --> 00:05:54,640 Speaker 1: entered Phase one. It's PM on the Placa Santana, a 70 00:05:54,760 --> 00:05:58,160 Speaker 1: square in central Madrid. And this is the next night, 71 00:05:58,240 --> 00:06:01,240 Speaker 1: in the same spot and the same time, but now 72 00:06:01,279 --> 00:06:10,120 Speaker 1: with outdoor seating on the terraces at fifty pass we're 73 00:06:10,160 --> 00:06:12,520 Speaker 1: also allowed to gather with up to ten people at home. 74 00:06:12,920 --> 00:06:16,040 Speaker 1: That's meant reunions with friends. For the first time in months, 75 00:06:16,640 --> 00:06:19,800 Speaker 1: I visited friends for dinner on Friday, our first gathering 76 00:06:19,880 --> 00:06:30,200 Speaker 1: since March. Hello, Hello, I get that the shared meals 77 00:06:30,279 --> 00:06:33,840 Speaker 1: have been a welcome respite after the long confinement take us. 78 00:06:37,160 --> 00:06:46,160 Speaker 1: This is a celebration. The overpowering feeling, though, is one 79 00:06:46,160 --> 00:06:50,080 Speaker 1: of whiplash. Spain is a national mourning for the more 80 00:06:50,120 --> 00:06:53,520 Speaker 1: than seven thousand people who have died during the pandemic, 81 00:06:54,200 --> 00:06:56,560 Speaker 1: and the country, along with the rest of the world, 82 00:06:57,240 --> 00:07:00,400 Speaker 1: is emerging into the most severe downturn in living memory. 83 00:07:01,320 --> 00:07:04,599 Speaker 1: Bloomberg Economics expects Spain and Italy to be among the 84 00:07:04,600 --> 00:07:07,840 Speaker 1: hardest hit countries in the world this year, suffering economic 85 00:07:07,880 --> 00:07:13,560 Speaker 1: contractions of eleven and respectively. That's fueled anger and despair. 86 00:07:14,240 --> 00:07:17,080 Speaker 1: Some in Spain have channeled their frustration into a nightly 87 00:07:17,120 --> 00:07:20,800 Speaker 1: cacophony that's known as a castro lada. That's a banging 88 00:07:20,800 --> 00:07:24,120 Speaker 1: together of pots and pans, a common form of protest here. 89 00:07:24,840 --> 00:07:27,400 Speaker 1: Every night for the past several weeks, people have been 90 00:07:27,400 --> 00:07:31,040 Speaker 1: making noise from their windows, balconies and local plusas at 91 00:07:31,120 --> 00:07:35,680 Speaker 1: nine pm. They're demonstrating against Spain's government. A coalition between 92 00:07:35,680 --> 00:07:46,040 Speaker 1: the center left socialists and the far left Potamost Party. 93 00:07:47,760 --> 00:07:50,960 Speaker 1: Protesters say the government responded slowly to the onset of 94 00:07:50,960 --> 00:07:54,320 Speaker 1: the pandemic and that the emergency economic measures have been 95 00:07:54,360 --> 00:07:57,880 Speaker 1: too little, too late. Now that we're allowed to gather 96 00:07:57,920 --> 00:08:00,720 Speaker 1: with friends, many people seem to prefer to be outside 97 00:08:00,720 --> 00:08:03,360 Speaker 1: their homes in the evening. So the intensity of the 98 00:08:03,400 --> 00:08:07,240 Speaker 1: castro ladas has eased in recent days, but the frustrations 99 00:08:07,280 --> 00:08:15,520 Speaker 1: and worries haven't. I have like a hundred messages that 100 00:08:15,560 --> 00:08:18,600 Speaker 1: I have to check. It's like two hours and then 101 00:08:18,640 --> 00:08:23,240 Speaker 1: it's like it's better not. Ophelia Marine opened three of 102 00:08:23,240 --> 00:08:26,480 Speaker 1: her seven restaurants in Madrid last week. At this stage, 103 00:08:26,720 --> 00:08:30,800 Speaker 1: only outdoor seating is allowed and only a fifty percent capacity. 104 00:08:31,440 --> 00:08:34,280 Speaker 1: She says the authorities are focusing too much on the minutia. 105 00:08:34,760 --> 00:08:38,320 Speaker 1: They're missing the existential threat facing many of Madrid's restaurants 106 00:08:38,320 --> 00:08:41,400 Speaker 1: and bars. We spoke at one of her restaurants, La 107 00:08:41,400 --> 00:08:46,040 Speaker 1: Model Cartman. In one of the locations, we had um 108 00:08:46,320 --> 00:08:50,640 Speaker 1: twenty three tables. Okay, so now you have two cuts 109 00:08:50,679 --> 00:08:56,120 Speaker 1: by half twenty three by half. It's eleven and a half. 110 00:08:56,400 --> 00:09:00,640 Speaker 1: So okay, we said we're gonna put twelve in. It's 111 00:09:00,640 --> 00:09:04,720 Speaker 1: a big exactly, it's a big plata. We have space, 112 00:09:05,280 --> 00:09:08,520 Speaker 1: it's beautiful. Not many cars, not many people. So the 113 00:09:08,559 --> 00:09:12,400 Speaker 1: police comes and they removed one of ten. So they 114 00:09:12,440 --> 00:09:15,840 Speaker 1: had they had definitely counted exactly how many? Yes, yes, 115 00:09:16,160 --> 00:09:20,720 Speaker 1: but doesn't make any sense for who what good that makes. 116 00:09:21,640 --> 00:09:25,319 Speaker 1: Spain also requires restaurants to keep tables a socially distanced 117 00:09:25,360 --> 00:09:28,200 Speaker 1: two ms apart. That's about six and a half feet. 118 00:09:28,880 --> 00:09:33,280 Speaker 1: Ophelia says the number seems arbitrary. In France, social distances 119 00:09:33,320 --> 00:09:36,400 Speaker 1: one meter. In Italy it's one meter in some regions 120 00:09:36,440 --> 00:09:39,120 Speaker 1: and one point eight in others. In Germany one point 121 00:09:39,200 --> 00:09:44,160 Speaker 1: five ms, the World Health Organization says one. Spain's government 122 00:09:44,160 --> 00:09:47,720 Speaker 1: says the restrictions on occupancy and distance between patrons are 123 00:09:47,800 --> 00:09:52,280 Speaker 1: necessary to ensure the country avoids new outbreaks. Restaurant managers 124 00:09:52,280 --> 00:09:55,280 Speaker 1: say they support safety measures, but they say the current 125 00:09:55,280 --> 00:09:58,720 Speaker 1: restrictions make it impossible to generate enough revenue to cover 126 00:09:58,760 --> 00:10:02,040 Speaker 1: the cost of reopening. That's one of the reasons that 127 00:10:02,080 --> 00:10:04,320 Speaker 1: more than two thirds of the bars and restaurants in 128 00:10:04,360 --> 00:10:07,120 Speaker 1: Madrid that are allowed to open their outdoor terraces have 129 00:10:07,240 --> 00:10:13,600 Speaker 1: remained shuttered. The average bar size in Spain is around 130 00:10:13,600 --> 00:10:17,240 Speaker 1: a hundred square meters roughly a thousand square feet. The 131 00:10:17,280 --> 00:10:21,800 Speaker 1: country's small, intimate eateries are part of its old world charm, 132 00:10:21,840 --> 00:10:25,400 Speaker 1: but there are distinct disadvantage in a socially distanced economy. 133 00:10:26,240 --> 00:10:29,320 Speaker 1: Ophelia says she's worried that even when Madrid's restaurants can 134 00:10:29,400 --> 00:10:33,640 Speaker 1: start serving inside, revenue will still suffer social distance. I 135 00:10:33,640 --> 00:10:37,880 Speaker 1: think it's gonna be till you know phase three four 136 00:10:38,200 --> 00:10:42,400 Speaker 1: who knows, But social distance I think is gonna stay 137 00:10:42,440 --> 00:10:46,240 Speaker 1: for a while and which that kills us. One option 138 00:10:46,320 --> 00:10:49,040 Speaker 1: would be to step up online food deliveries, but that's 139 00:10:49,080 --> 00:10:51,480 Speaker 1: not as common in Spain as in some other countries. 140 00:10:52,160 --> 00:10:54,840 Speaker 1: Some restaurants have tried to pivot quickly to eat commerce, 141 00:10:55,040 --> 00:10:58,320 Speaker 1: only to realize the commissions on existing platforms can be 142 00:10:58,360 --> 00:11:01,720 Speaker 1: as much as thirty five percent. That's untenable in an 143 00:11:01,760 --> 00:11:13,400 Speaker 1: industry where margins are on average around Spain was the 144 00:11:13,440 --> 00:11:17,400 Speaker 1: second most visited country in the world last year. Visitors 145 00:11:17,400 --> 00:11:20,880 Speaker 1: are able to return starting in July, but hotel managers 146 00:11:20,880 --> 00:11:22,840 Speaker 1: say they don't expect to get back to the glory 147 00:11:22,920 --> 00:11:27,360 Speaker 1: days for at least several years. Spain's islands and beachside 148 00:11:27,400 --> 00:11:31,320 Speaker 1: resorts are already receiving reservations for the truncated summer season. 149 00:11:32,120 --> 00:11:35,160 Speaker 1: Many hotel managers in Madrid, though, say they're likely to 150 00:11:35,160 --> 00:11:38,640 Speaker 1: remain shuttered through September. They won't be able to fill 151 00:11:38,679 --> 00:11:42,080 Speaker 1: their rooms without the conferences and business meetings that normally 152 00:11:42,120 --> 00:11:45,920 Speaker 1: bring people in July and August. Juan Luis de Lucas 153 00:11:45,920 --> 00:11:49,240 Speaker 1: Martine is an exception. The hotel cloud Age that he 154 00:11:49,280 --> 00:11:53,080 Speaker 1: manages is among the few open in the city. The 155 00:11:53,120 --> 00:11:58,760 Speaker 1: sprince has been okay, occupancy has been well horrible. Spaniards 156 00:11:58,800 --> 00:12:02,199 Speaker 1: still aren't allowed to travel between provinces. With some exceptions. 157 00:12:02,640 --> 00:12:04,400 Speaker 1: Those who have booked rooms at the cloud Edge have 158 00:12:04,480 --> 00:12:07,200 Speaker 1: come to Madrid to see their doctors or lawyers, or 159 00:12:07,320 --> 00:12:11,080 Speaker 1: in some cases meet up with a loved one. I 160 00:12:11,200 --> 00:12:13,600 Speaker 1: understand all my colleagues have decided not to open until 161 00:12:13,640 --> 00:12:16,720 Speaker 1: September because there will be nothing. We're opening. Nearly all 162 00:12:16,800 --> 00:12:18,920 Speaker 1: the adults in Madrid are closed, and our record on 163 00:12:18,960 --> 00:12:22,160 Speaker 1: the best day as albin eating rooms booked. If Mortel 164 00:12:22,200 --> 00:12:26,439 Speaker 1: were open, it would be absolute disaster because there's no demand. 165 00:12:28,120 --> 00:12:36,160 Speaker 1: That's eighteen out of a hundred fourteen total rooms. Amid 166 00:12:36,280 --> 00:12:39,760 Speaker 1: so many uncertainties, one thing seems clear. The v shaped 167 00:12:39,800 --> 00:12:44,160 Speaker 1: recovery that economists had anticipated for many countries now seems unlikely. 168 00:12:44,840 --> 00:12:47,320 Speaker 1: In Spain and elsewhere. It will be more of a 169 00:12:47,360 --> 00:13:00,240 Speaker 1: slog than a snap back. Jeanette Newmon, Bloomberg News. YEA, 170 00:13:10,600 --> 00:13:13,319 Speaker 1: and that's our show today. For coverage of the outbreak 171 00:13:13,320 --> 00:13:16,880 Speaker 1: from one and twenty bureaus around the world, visit Bloomberg 172 00:13:17,000 --> 00:13:21,520 Speaker 1: dot com slash coronavirus and if you like the show, 173 00:13:21,920 --> 00:13:24,400 Speaker 1: please leave us a review and a rating on Apple 174 00:13:24,480 --> 00:13:27,800 Speaker 1: Podcasts or Spotify. It's the best way to help more 175 00:13:27,840 --> 00:13:33,240 Speaker 1: listeners find our global reporting. The Prognosis Daily edition is 176 00:13:33,280 --> 00:13:38,280 Speaker 1: produced by Topher Foreheads Jordan Gaspure, Magnus Hendrickson and me 177 00:13:38,800 --> 00:13:43,160 Speaker 1: Laura Carlson. Today's main story was reported by Jeanette Numan. 178 00:13:43,960 --> 00:13:48,319 Speaker 1: Original music by Leo Sidrin. Our editors are Friend cscA 179 00:13:48,400 --> 00:13:53,440 Speaker 1: Levi and Rick Shine. Francesca Levi is Bloomberg's head of podcasts. 180 00:13:54,000 --> 00:13:54,840 Speaker 1: Thanks for listening.