LA implements new coronavirus restrictions as cases spike

Yahoo Finance’s Melody Hahm discusses Los Angeles' new coronavirus restrictions.

Video Transcript

ADAM SHAPIRO: A lot of what drives markets recently has been progress on COVID-19 vaccines, but there are steps backward as a lot of municipalities look at further lockdowns-- one of them, Los Angeles. We want to bring in Melody Hahm for the latest on what's happening on the West Coast with the spike in coronavirus and COVID-19. Melody?

MELODY HAHM: Yeah, Adam. It has been a confusing 24 hours, to say the least. LA Mayor Eric Garcetti yesterday reiterating the same exact mandate that us here in Los Angeles County had received to be implemented on Monday of this week, essentially a targeted safer-at-home order. While many folks are confused because it sounds like the language of a lockdown, there 10 pages of exemptions.

So retail stores are still open. Outdoor dining is banned, but takeout is still a go. Movie, film production still a go. TV sets are still open, as well as public parks, beaches, tennis courts, golf ranges. All of those are still open. So what is the change? Nothing at all.

To your point though, Adam, the situation here is quite dire. Nearly 12% of COVID tests are coming back positive. That's a surge on a surge after the Thanksgiving holiday, of course. That's up from 7% just a week ago. LA County did report a total of 2,400 people hospitalized for the virus yesterday as this order came about.

That's more than any other day during the coronavirus pandemic to date. And folks are, of course, expecting an additional surge as we enter the Christmas holiday season. This, of course, is merely echoing, right, that different households should not be engaging in socialized activities.

Unfortunately, with LA weather still very much open and bright, a lot of folks are still gathering and going on group outings and hikes. I don't necessarily think these exemptions will preclude people from doing a lot of these things that they have been doing.

SEANA SMITH: Hey, Mel. What's the feeling on the ground there just in terms-- 'cause we've heard about other regions or other parts of the country. There's been significant backlash when some of these restrictions have been imposed or when we hear policymakers make these kinds of demands or implement these sort of restrictions. Has there been any backlash in the LA area yet?

MELODY HAHM: Yeah. It's interesting, Seana, because in just 15 minutes, California's Governor, Gavin Newsom, will be hosting a press conference to provide an update. Of course, he himself has been on the receiving end of that backlash, right? A lot of it comes from hypocrisy, where, OK, you're going to a dinner at the French Laundry, but you're telling folks that they have to stay at home. Otherwise, they will get fined.

We know there are utilities on the line. Public utilities have been snipped off at some of the TikTok houses here, as you may recall, specifically because they were hosting gatherings. So there has been backlash. But to be honest, it's because a lot of those fines have not been implemented, right?

Especially if there are 10 pages of exemptions, you can say, hey, I have this essential activity. Hey, I'm going to see my mom. This person actually is my roommate. There's so many ways to get around these restrictions, so I do feel as though all the caveats, all the asterisks actually are helping consumers in one way, but also hurting, because, unfortunately, the behavior is not safe at this point.