Author Archives: Reuters News Agency

Israel, UAE will cooperate on financial services, investment

JERUSALEM (Reuters) – Israel and the United Arab Emirates agreed on Tuesday to set up a joint committee to cooperate on financial services, aiming to promote investment between the two countries, an Israeli statement said.

An Israeli delegation is in Abu Dhabi on a historic trip to finalize a pact marking open relations between Israel and the Gulf state.

Representatives from both countries signed the understanding, Israeli Prime Minister Benjamin Netanyahu said in the statement.

One focus, Netanyahu said, would be on “cooperation in the field of financial services and removing financial barriers for making investments between the countries, as well as promoting joint investments in the capital markets”.

The countries will also collaborate in banking services and payment regulations, he said.

Separately, the state-run Abu Dhabi Investment Office (ADIO) and Invest in Israel, part of the economy ministry, agreed to set out a plan to establish formal cooperation between then, they said in a joint statement.

“The organizations will explore mutually beneficial areas of collaboration to unlock investment and partnership opportunities for companies in Israel and Abu Dhabi with a strong focus on innovation and technology,” they said.

An initial virtual meeting was held between Ziva Eger, Invest in Israel chief executive, and Monira Hisham al-Kuttab who leads ADIO’s international promotional activity. Further meetings are scheduled throughout September.

“Israel’s ecosystem has a lot to offer to the UAE’s economy in terms of innovation, specifically in the Life Sciences, CleanTech, Agtech and Energy sectors,” Eger said in the statement.

ADIO Director General Tariq Bin Hendi said ADIO’s investor care team would “facilitate connections throughout Abu Dhabi’s ecosystem” and explore opportunities over the coming months.

Israeli officials have been quick to play up the economic benefits of the accord, which once formalized would also include agreements on tourism, technology, energy, healthcare and security, among other areas.

A number of Israeli and Emirati businesses have already signed deals since the normalization deal was announced.

(Writing by Jeffrey Heller and Yousef Saba; editing by Ari Rabinovitch, Larry King, William Maclean)

Special Report: Pentagon’s latest salvo against China’s growing might – Cold War bombers

By David Lague

HONG KONG (Reuters) – On July 21, two U.S Air Force B-1B bombers took off from Guam and headed west over the Pacific Ocean to the hotly contested South China Sea. The sleek jets made a low-level pass over the aircraft carrier USS Ronald Reagan and its escorting fleet, which was exercising nearby in the Philippines Sea, according to images released by the U.S. military.

The operation was part of the Trump administration’s intensifying challenge to China’s ruling Communist Party and its sweeping territorial claims over one of the world’s most important strategic waterways. While senior Trump officials launch diplomatic and rhetorical broadsides at Beijing, the U.S. Defense Department is turning to the firepower of its heavily armed, long-range bombers as it seeks to counter Beijing’s bid to control the seas off the Chinese coast.

Since late January, American B-1B and B-52 bombers, usually operating in pairs, have flown about 20 missions over key waterways, including the South China Sea, the East China Sea and the Sea of Japan, according to accounts of these flights from U.S. Air Force statements and official social media posts. These missions, military analysts say, are designed to send a crystal-clear signal: The United States can threaten China’s fleet and Chinese land targets at any time, from distant bases, without having to move America’s aircraft carriers and other expensive surface warships within range of Beijing’s massive arsenal of missiles.

In this response to the growing power of China’s military, the Pentagon has combined some of its oldest weapons with some of its newest: Cold War-era bombers and cutting-edge, stealthy missiles. The supersonic B1-B first entered service in 1986; the newest plane in the B-52 fleet was built during the Kennedy administration. But these workhorses can carry a huge payload of precision weapons. A B-1B can carry 24 of the U.S. military’s stealthy new Long Range Anti-Ship Missiles, which entered service in 2018 and can strike targets at ranges of up to 600 kilometers, according to U.S. and other Western officials.

“A single B-1 can deliver the same ordnance payload as an entire carrier battle group in a day,” said David Deptula, dean of the Washington-based Mitchell Institute for Aerospace Studies and a retired U.S. Air Force Lieutenant General. And, in a crisis, he added, bombers can be rapidly deployed.

“Depending on where they are, ships can take weeks to get in place,” said Deptula. “But by using bombers, they can respond in a matter of hours,” he adds, noting that the U.S. object is to deter war. “Nobody wants to engage in conflict with China.”

Chinese and western military strategists warn that a conflict between the two nuclear-armed powers could be difficult to contain.

In a clash with China, this fast response from the bomber force could be vital while the U.S. and its allies rush naval reinforcements to the Pacific to bolster the vastly outnumbered U.S. naval fleet stationed in the region, according to current and former U.S. and other Western military officers.

A spokeswoman for Pacific Air Forces, Captain Veronica Perez, said the U.S. Air Force had increased its publicity about its bomber missions to assure allies and partners of Washington’s commitment to global security, regional stability and a free and open Indo-Pacific. “Though the frequency and scope of our operations vary based on the current operating environment, the U.S. has a persistent military presence and routinely operates throughout the Indo-Pacific,” she said.

China’s defense ministry did not respond to questions from Reuters.

LOWEST POINT

While the bomber missions continue, relations between Washington and Beijing have reached their lowest point since the 1989 Tiananmen crackdown. In a show of force, Chinese fighter jets crossed the mid-line of the Taiwan Strait while U.S. Secretary for Health, Alex Azar, was visiting Taipei on Aug. 10 to congratulate the government of President Tsai Ing-wen on its successful containment of the COVID-19 virus. Azar was the most senior American official to visit Taiwan in four decades.

Taiwan’s missile radars tracked the Chinese fighters in only the third such incursion across the median line since 2016, the Taiwanese government said. Beijing condemned the visit. It regards the island as a province of China and hasn’t ruled out the use of force to bring it under Communist Party control.

In a series of speeches ahead of Azar’s visit, top Trump officials had hammered China on multiple fronts, including its military build-up, territorial ambitions, domestic political repression, intellectual property theft, espionage, trade practices and its failure to alert the world to the danger of COVID-19.

In one of the most harshly worded attacks on China from an American official in decades, U.S. Secretary of State Mike Pompeo said on July 23 that China’s military, the People’s Liberation Army (PLA), was not a normal fighting force.

“Its purpose is to uphold the absolute rule of the Chinese Communist Party elites and expand a Chinese empire, not protect the Chinese people,” he said. “And so our Department of Defense has ramped up its efforts, freedom of navigation operations out and throughout the East and South China Seas and in the Taiwan Strait as well.” In July, Pompeo declared most of Beijing’s claims of sovereignty over the South China Sea illegal.

With the combination of bombers and long-range missiles, the United States is trying to turn the tables on the PLA. Over more than two decades, China has assembled a force of ground, sea and air-launched missiles that would make it deadly for warships of the U.S. Navy and its allies to approach the Chinese coast in a conflict. This Chinese strategy is specifically tailored to threaten U.S. aircraft carrier battle groups and the network of bases that form the backbone of American power in Asia.

In a demonstration of this capability, the PLA launched one of its so-called carrier-killer missiles, the DF-26, in an exercise in the South China Sea following the deployment in July of two U.S. aircraft carriers to the area, China’s official military media reported in early August. And a U.S. defense official told Reuters that on Aug. 26, China launched four medium-range ballistic missiles that hit the South China Sea between Hainan Island and the Paracel Islands.

But the PLA Navy’s huge and rapidly expanding fleet is also vulnerable to long-range missiles. China has built the world’s biggest navy, including new aircraft carriers, amphibious assault ships and powerful cruisers and destroyers. And the PLA’s extensive network of bases and ports would also be targets for missiles.

In a conflict, U.S. bombers over the Western Pacific could target PLA Navy warships at their bases on the Chinese coast or underway inside the so-called first island chain, the string of islands that run from the Japanese archipelago through Taiwan, the Philippines and on to Borneo, enclosing China’s coastal seas. Chinese warships would be even more vulnerable if they broke out through the island chain into the Western Pacific, outside the coverage of the PLA’s land-based air defenses and strike aircraft.

THE FIREPOWER GAP

In the aftermath of the Cold War, Washington assumed it had uncontested control of the oceans and neglected to arm its surface fleet with modern, long-range anti-ship missiles. To be sure, the U.S. and its allies, particularly Japan, still have a powerful fleet of attack submarines that would pose a deadly menace to PLA warships. But the bombers help fill the firepower gap in the U.S. surface fleet while the Pentagon is re-purposing existing missiles and introducing new versions to its destroyers and cruisers, according to maritime strategists.

The bomber deployments are one element of a much wider reshaping of forces and tactics that the U.S. and its allies in East Asia have launched to deter China from attacking Taiwan, expanding its hold over the South China Sea or seizing other disputed territories. These include the uninhabited group of isles in the East China Sea known as the Senkaku Islands in Japan and the Diaoyu Islands in China, which are claimed by both Tokyo and Beijing.

Tensions are on the rise around these islands, now under Japanese control. The commander of U.S. forces in Japan, Lieutenant General Kevin Schneider, pledged in July that America would help Japan monitor “unprecedented” Chinese incursions into waters around the Senkakus that were challenging Tokyo’s administration. Within an hour of Schneider’s comments, China’s foreign ministry fired back that the islands were “Chinese territory.”

Long-range U.S. bombers operating from distant airfields would remain a threat if Chinese missile attacks disabled key U.S. bases in Japan, South Korea and Guam. These bases, mostly a carry-over from World War Two and the Korean War, were built at a time when China had very limited means to attack them.

Now it does. In a clear acknowledgement that Guam is now at risk, the U.S. Air Force announced on April 17 it would end its continuous rotation of bombers to the island base and withdraw them to the U.S. mainland.

The absence of a permanent bomber presence at Guam is a blow to Washington’s ability to deter China and North Korea, air power experts say. The island in the Western Pacific is less than a five-hour flight from the South China Sea.

“It makes it look like the Chinese military build-up has worked,” said Peter Layton, a visiting fellow at Griffith University in Australia and a retired Australian air force Group Captain who has worked at the Pentagon. “They are now taken out of range.”

Since then, the United States has sent bombers to Guam for short-term deployments from their continental bases. U.S. air power researchers suggest that the availability of better training facilities at mainland U.S. bases was also a factor in the decision to withdraw the bombers. But in further evidence of Guam’s vulnerability, the head of the U.S. Indo-Pacific Command, Admiral Philip Davidson, has asked Congress to fund a powerful missile defense system for the island by 2026.

Another hurdle for the Pentagon: America’s bomber force is shrinking just as the PLA challenge grows. From a force of more than 400 at the end of the Cold War, the U.S. bomber fleet has shrunk to 158 aircraft. Of those planes, 62 are B-1Bs and 76 are B-52S. The United States also has a smaller force of 20 newer B-2 stealth bombers.

The air force plans to retire 17 B-1Bs next year to concentrate resources on the remaining bombers until the planned introduction of a new generation of stealthy bomber, the B-21, toward the end of this decade. This bomber is expected to sharply improve the U.S. Air Force’s ability to penetrate Chinese airspace. Northrop Grumman is now building the first prototype, according to air force officials.

‘NOT LIKE FIGHTING SADDAM’

As the risk of conflict rises, some Western air power experts doubt that U.S. bombers would deliver a decisive advantage in a clash with the PLA. They say the Chinese military has spent decades preparing formidable, integrated air defenses. Even if the U.S. bombers were able to sink PLA Navy warships and stealthily penetrate Chinese airspace to strike some ground targets, they say it would not necessarily translate into victory against a vast and powerful adversary.

And, they warn, it might be impossible to fight a limited conflict on China’s periphery. “It is not like fighting Saddam Hussein, it would be a major world war,” said Layton, the retired Australian air force officer. “Both sides have nuclear weapons and there is the potential for escalation. If either side is losing, what is going to happen then?”

Alongside relying on its bombers, the United States has been forced to develop other plans to offset the Chinese missile and naval threat. The U.S Marine Corps is planning to disperse smaller units armed with long-range anti-ship and land-attack missiles through the first island chain, where they could threaten the Chinese navy and land targets on China’s mainland.

The U.S. Army also intends to spread forces through the first island chain and other outposts in the Western Pacific. It is planning a series of major exercises this year and next where troops would deploy to islands in the region, according to senior commanders and top Pentagon officials.

New weapons are in the pipeline that would give specially formed army task force units the firepower to strike at Chinese warships and other targets in a conflict. The U.S. Army’s top commander, General James McConville, told an online seminar hosted by the Washington-based Center for Strategic and International Studies in late July that a very long-range hyper sonic missile was under development and tests had been successful. And soldiers would have the tools to attack an enemy’s navy. “We are going to have mid-range missiles that can sink ships,” McConville said.

The U.S. and its allies also intend to link all their surveillance systems and weapons together in a regional network so that tracking information about a target could be shared between radar stations, satellites, surface warships, submarines, aircraft and land forces. In this system, a stealth fighter flying from a carrier could detect an enemy warship and relay this information to an army unit on an island, which could attack the foe with an anti-ship missile.

On May 21, two U.S. B-1B bombers from Guam flew to an area near Misawa Air Base in Japan, where they conducted long-range anti-ship missile training with a P-8 Poseidon maritime surveillance aircraft and the aircraft carrier USS Ronald Reagan, according to a U.S. Pacific Air Force statement. This exercise demonstrated that the U.S. had the capability to “hold any target at risk, anytime and anywhere,” said Perez, the Pacific Air Forces spokeswoman.

The ships and aircraft involved in this exercise likely practiced the sharing of target information to mount a simulated attack, according to U.S. and Asian military experts. On other missions this year, the American bombers have held joint exercises with U.S., Japanese and South Korean fighters.

CHINESE AIRSPACE

In this networked battlefield, the Pentagon’s old warhorses of the air would be an even more formidable rival.

The speed and range of America’s Cold War-vintage bombers would allow them to approach Chinese targets from different directions and fire salvos of difficult-to-detect missiles at multiple ships, according to current and retired U.S. air force officers. With even longer range missiles that Washington has in the pipeline, such attacks could be mounted from well outside the range of China’s powerful, land-based air defenses. American bombers can also drop precision-guided mines to block strategically important ocean passages or ports.

And the U.S. B-2 stealth bombers could penetrate more deeply into Chinese airspace and attack key targets with sharply less chance of detection than the older bombers. These bombers already carry a heavy payload of precision, land-attack munitions and could also be configured to carry the Long Range Anti-Ship Missile.

A B-1B could take off from the continental United States, refuel from tanker aircraft en route, and arrive over the Western Pacific in about 15 hours, according to Deptula and other military aviation analysts. From Hawaii the trip would take about nine hours, they say. Even closer, from northern Australia, the transit would take six hours without refueling.

The Australian government announced in February it would spend $814 million upgrading a key air base at Tindal in the Northern Territory, including a major extension to its runway. Part of the reason for the upgrade is to support expanded U.S. Air Force operations, the Australian government said. American bombers are already using the base.

The B-1B originally served as a nuclear bomber. That role has been phased out. It now carries around 34 metric tonnes (75,000 pounds) of conventional guided and unguided weapons, the biggest payload of any U.S. aircraft. In the military operations launched after the attacks of Sept. 11, 2001, these bombers were flown hard for almost two decades to provide ground support to American and allied troops in the Middle East and Afghanistan.

With the Pentagon having turned its competitive sights on China, the B-1B is now increasingly employed as a ship killer. In future, it could also be armed with a new hyper sonic missile, the Air-Launched Rapid Response Weapon (ARRW), now in testing, and a new long-range cruise missile, according to senior U.S. Air Force commanders. Hyper sonic missiles traveling at more than five times the speed of sound would be hard to intercept.

The B-52 is an even older icon of American might, in service since the mid-1950’s. It carries a slightly smaller payload than the B-1B. As part of this weapons load, it can be armed with up to 14 upgraded versions of the Cold War-era Harpoon anti-ship missile. And, it could also be configured in future to carry 20 Long Range Anti-Ship Missiles, according to air power experts. Along with the B-2, the B-52 can also launch nuclear missiles.

While these older bombers remain potent, American air power experts say a strong force of B-21 stealth bombers will be much more effective when they begin entering service later this decade. The new bomber is being developed in a highly classified program. “All the indications are that it is proceeding well in the development phases,” said Deptula.

(Reporting by David Lague in Hong Kong. Edited by Peter Hirschberg.)

Portland police break up protest with smoke grenades and pepper balls; 19 arrested

By Deborah Bloom

PORTLAND, Ore. (Reuters) – Protests flared again in Portland overnight on Monday as demonstrators clashed with police on the streets of the city which after months of sometimes violent confrontations has become a focal point of the U.S. presidential race.

Police used smoke grenades and pepper balls to control the crowd of protesters. Police acknowledged in a statement that officers “deployed some crowd control munitions” and said 19 people were arrested, mostly on charges of disorderly conduct and interfering with police.

About 200-300 people gathered in the downtown area to march to the apartment of Portland Mayor Ted Wheeler to demand his resignation. They were seen setting fire to wooden benches and plastic trash bins along the march.

Police declared the gathering unlawful and later upgraded it to a riot after protesters set fire in an apartment building. The area was secured to allow firefighters to respond to the situation, police said.

Portland has seen nightly protests since the killing of George Floyd, a 46-year-old Black man, in Minneapolis on May 25. Hundreds of demonstrators have been arrested since the protests began.

In recent weeks, tensions between right- and left-wing groups in the city have roiled downtown.

Supporters of U.S. President Donald Trump have converged on the city as counter demonstrators, including one man who was fatally shot on Saturday night. Nobody has been charged in that case as police review poor-quality video of the incident.

State police and officers from neighboring suburbs were sent to Portland on Monday following the shooting.

(Additional reporting by Ann Maria Shibu in Bengaluru; writing by Kanishka Singh, editing by Angus MacSwan and Chizu Nomiyama)

COVID-19 often goes undiagnosed in hospital workers; virus may impair heart functions

By Nancy Lapid

(Reuters) – The following is a roundup of some of the latest scientific studies on the novel coronavirus and efforts to find treatments and vaccines for COVID-19, the illness caused by the virus.

COVID-19 often undiagnosed in front line hospital workers

A high proportion of COVID-19 infections among U.S. healthcare personnel appear to go undetected, according to a report on Monday in the Morbidity and Mortality Weekly Report of the U.S. Centers for Disease Control and Prevention. Between April and June, among more than 3,000 front line workers in 12 states, roughly 1 in 20 had antibody evidence of a previous COVID-19 infection, but 69% of those infections had never been diagnosed. Among those with antibodies to the novel coronavirus, about one-third did not recall having symptoms in the preceding months, nearly half did not suspect that they had been infected, and some two-thirds had never had a positive COVID-19 test. Infections among front line healthcare personnel may be going undetected, the study authors say, because some infections may be only minimally symptomatic or asymptomatic and also because personnel with symptoms may not always have access to testing. COVID-19 antibodies were less common among workers who reported using a face covering for all patient encounters and more common among those who reported a shortage of personal protective equipment. The researchers call for more frequent testing of healthcare personnel and universal use of face coverings in hospitals.

Virus may impair heart’s beating, contracting

Following recent reports that the new coronavirus can invade heart muscle cells comes the discovery that infected cells show impairments in function. In test tube experiments, researchers infected “myocytes,” or heart muscle cells, with the new coronavirus and found that before the infected cells die, they progressively lose their “electrophysiological and contractile properties.” This means they have trouble transmitting the electrical impulses that regulate heartbeats and shortening or lengthening their fibers so the heart can expand and contract to pump blood. In a paper posted online Sunday on bioRxiv ahead of peer review, the researchers note that their test tube experiments likely do not exactly replicate what happens with cells in the body, and more research is needed to confirm their findings. Still, they say, their results suggest that cardiac symptoms in COVID-19 patients are likely a direct effect of the virus and warn that “long-term cardiac complications might be possible … in patients who recover from this illness.”

Eye symptoms common in children with COVID-19

Children with COVID-19 often have non-serious eye symptoms like itching, discharge, or pink eye, a study from China suggests. Among 216 children hospitalized with COVID-19 in Wuhan, the epicenter of the outbreak there, 23% had these kinds of eye issues, doctors found. Eye problems were more common in children with other symptoms such as cough or fever. In all cases, the eye problems were mild and eventually went away either without treatment or with “minimal” eye drops, researchers reported in JAMA Ophthalmology. It is reassuring that most of the children had other symptoms first, said Dr. Douglas Fredrick, chief of pediatric ophthalmology at the Mount Sinai Health system in New York City, who was not involved in the study. If conjunctivitis, or pink eye, were always among the first symptoms, “we’d be more worried that children could spread this by pink eye from one child to another,” he told Reuters. Still, he said, the study doesn’t completely rule out that type of transmission.

Cell phone activity may predict COVID-19 spread

Cell phone use patterns suggest that when people stay home, coronavirus infection rates go down, researchers say. For a study published on Monday in JAMA Internal Medicine, they analyzed publicly available de-identified cell phone activity and location data collected between January and May from 2,740 counties across the United States. After mid-February, when the coronavirus outbreak began, cell phone activity declined significantly in workplaces, stores and restaurants, and mass transit stations and increased in homes – with the greatest initial changes seen in areas with higher rates of COVID-19. Two weeks after cell phone activity shifted away from workplaces and retail locations, the counties with the most pronounced changes had the lowest rates of new COVID-19 cases. “Perhaps reassuringly,” the researchers said, cell phone activity at grocery stores and in areas classified as parks was not strongly associated with rates of growth in COVID-19 cases. They speculate that publicly available cell phone location data might help health offices better predict COVID-19 growth rates and inform decision about where to implement shutdowns and re-openings.

(Reporting by Nancy Lapid and Linda Carroll; Editing by Bill Berkrot)

U.S. House panel to subpoena DeJoy seeking Postal Service documents

By David Shepardson

WASHINGTON (Reuters) – The chairwoman of the House Oversight and Reform Committee said Monday she plans to subpoena Postmaster General Louis DeJoy seeking documents he has been withholding from Congress.

Representative Carolyn Maloney, a Democrat, said DeJoy has not turned over any additional documents after a hearing last week on the Postal Service. DeJoy told lawmakers last week he planned to resume some cost-cutting measures that have factored in widespread service delays after the November election, defying Democratic lawmakers who have sought to block his changes.

Maloney also sent a document request Monday to Postal Service Board of Governors Chairman Robert Duncan.

A Postal Service spokesman did not immediately comment, but DeJoy said in a letter to the committee that staff are “working with the Oversight committee to identify and provide materials requested during the hearing.”

DeJoy also said last week he would keep in place a management reshuffle he implemented after assuming his job in June.

DeJoy has sought to assure Americans that widespread delays caused by his cost-cutting efforts would not cause their ballots to go uncounted in November’s election, when up to half of U.S. voters could cast ballots through the mail.

DeJoy, who has donated $2.7 million to President Donald Trump and other Republicans since 2016, has rejected charges of political interference. Trump has claimed, without evidence, that absentee voting is unreliable, even though he has voted that way himself.

DeJoy has refused to bring back mail-sorting machines and mailboxes pulled from service in recent weeks, saying they were routine responses to changes in mail volume that were under way before he took office.

The House this month voted to prevent DeJoy from taking action that would impede service until January, and also to provide $25 billion in funding. That legislation is not expected to advance in the Republican-controlled Senate and the White House has threatened to veto it.

(Reporting by David Shepardson; Editing by Cynthia Osterman)

U.S. appeals court deals blow to Democrats’ bid to get testimony from ex-White House lawyer McGahn

By Jan Wolfe

NEW YORK (Reuters) – A U.S. appeals court on Monday, in a victory for the Trump administration, ordered the dismissal of a lawsuit filed by a Democratic-led House of Representatives panel seeking to enforce a subpoena issued to former White House Counsel Donald McGahn.

In a 2-1 decision likely to be appealed, a three-judge panel of U.S. Court of Appeals for the District of Columbia Circuit said the House Judiciary Committee’s lawsuit had to be dismissed because Congress had never passed a law authorizing such litigation.

“Because the Committee lacks a cause of action to enforce its subpoena, this lawsuit must be dismissed,” Circuit Judge Thomas Griffith wrote for the majority.

The committee had sought testimony from McGahn, who left his post in October 2018, about President Donald Trump’s efforts to impede former Special Counsel Robert Mueller’s investigation that documented Russian interference in the 2016 U.S. election.

McGahn declined to testify before the committee after the Justice Department advised him to defy the subpoena. The Trump administration has sought to block congressional investigations into the president.

“We note that this decision does not preclude Congress (or one of its chambers) from ever enforcing a subpoena in federal court; it simply precludes it from doing so without first enacting a statute authorizing such a suit,” Griffith added.

The ruling did not address an argument by the Trump administration that senior presidential advisers could not be forced to testify to Congress about official acts.

A House Judiciary Committee spokeswoman did not immediately respond to a request for comment.

The lawsuit to force McGahn to testify has bounced around in the courts for a year.

On Aug. 7, a larger panel of D.C. Circuit judges ruled that the House panel had “standing” to sue, but sent the case back to a three-judge panel to address other issues.

Under U.S. law, standing is just one requirement for filing a lawsuit. A litigant must also point to a “cause of action,” or recognized legal theory.

Monday’s decision could still be reheard by a larger panel of D.C. Circuit judges, or appealed to the U.S. Supreme Court.

(Reporting by Jan Wolfe; Additional reporting by Lawrence Hurley; Editing by Peter Cooney)

Nestle gets peanut allergy treatment with $2 billion Aimmune buyout

By Silke Koltrowitz and Manas Mishra

(Reuters) – Nestle will pay $2 billion to buy the remaining stake in Aimmune Therapeutics Inc., gaining full ownership of the first U.S.-approved peanut allergy treatment which has struggled with a slow launch due to the COVID-19 pandemic.

Nestle said on Monday its offer for Aimmune values the California-based drugmaker, in which it already has a stake of around 25.6%, at $2.6 billion.

Aimmune’s shares more than doubled on Monday, just shy of Nestle’s offer price of $34.50 per share.

The U.S. company’s shares have slumped this year, as the pandemic led to many clinician’s offices remaining shut, leading to a slow launch of its therapy, Palforzia, which was approved in January.

Shares “started 2020 right about at this level before the pandemic, and resultant shut-down of allergy clinics across the U.S. essentially killed the launch of Palforzia,” Piper Sandler analyst Christopher Raymond said.

“As pandemic-related disruption recedes and Palforzia’s true demand begins to manifest, it will be deemed that Nestle got itself a bargain here,” Raymond added.

Peanut allergies are prevalent in an estimated 1.6 million teens and children in the United States alone, making it a lucrative market that could eventually help Aimmune bring in billions of dollars in sales.

The deal helps Nestle, known for its KitKat chocolate bars and Nescafe instant coffee, expand its Nestle Health Science division which it set up in 2011 to open up a new area of business.

With Nestle’s prior investment of $473 million, it would be making a cash payment of just under $2 billion, Nestle Health head Greg Behar told Reuters.

The unit was on track to more than double sales by 2022, from 2 billion Swiss francs ($2.21 billion) in 2014, and was expected to close 2020 at 3.3 billion francs, Behar added.

($1 = 0.9035 Swiss francs)

(Reporting by Silke Koltrowitz in Zurich and Manas Mishra in Bengaluru; Editing by John Miller, Alexander Smith and Shounak Dasgupta)

Scientists see downsides to top COVID-19 vaccines from Russia, China

By Allison Martell and Julie Steenhuysen

TORONTO/CHICAGO (Reuters) – High-profile COVID-19 vaccines developed in Russia and China share a potential shortcoming: They are based on a common cold virus that many people have been exposed to, potentially limiting their effectiveness, some experts say.

CanSino Biologics’ vaccine, approved for military use in China, is a modified form of adenovirus  type 5, or Ad5. The company is in talks to get emergency approval in several countries before completing large-scale trials, the Wall Street Journal reported last week.

A vaccine developed by Moscow’s Gamaleya Institute, approved in Russia earlier this month despite limited testing, is based on Ad5 and a second less common adenovirus.

“The Ad5 concerns me just because a lot of people have immunity,” said Anna Durbin, a vaccine researcher at Johns Hopkins University. “I’m not sure what their strategy is … maybe it won’t have 70% efficacy. It might have 40% efficacy, and that’s better than nothing, until something else comes along.”

Vaccines are seen as essential to ending the pandemic that has claimed over 845,000 lives worldwide. Gamaleya has said its two-virus approach will address Ad5 immunity issues.

Both developers have years of experience and approved Ebola vaccines based on Ad5. Neither CanSino nor Gamaleya responded to requests for comment.

Researchers have experimented with Ad5-based vaccines against a variety of infections for decades, but none are widely used. They employ harmless viruses as “vectors” to ferry genes from the target virus – in this case the novel coronavirus – into human cells, prompting an immune response to fight the actual virus.

But many people already have antibodies against Ad5, which could cause the immune system to attack the vector instead of responding to the coronavirus, making these vaccines less effective.

Several researchers have chosen alternative adenoviruses or delivery mechanisms. Oxford University and AstraZeneca based their COVID-19 vaccine on a chimpanzee adenovirus, avoiding the Ad5 issue. Johnson & Johnson’s candidate uses Ad26, a comparatively rare strain.

Dr. Zhou Xing, from Canada’s McMaster University, worked with CanSino on its first Ad5-based vaccine, for tuberculosis, in 2011. His team is developing an inhaled Ad5 COVID-19 vaccine, theorizing it could circumvent pre-existing immunity issues.

“The Oxford vaccine candidate has quite an advantage” over the injected CanSino vaccine, he said.

Xing also worries that high doses of the Ad5 vector in the CanSino vaccine could induce fever, fueling vaccine skepticism.

“I think they will get good immunity in people that don’t have antibodies to the vaccine, but a lot of people do,” said Dr. Hildegund Ertl, director of the Wistar Institute Vaccine Center in Philadelphia.

In China and the United States, about 40% of people have high levels of antibodies from prior Ad5 exposure. In Africa, it could be as high as 80%, experts said.

HIV RISK

Some scientists also worry an Ad5-based vaccine could increase chances of contracting HIV.

In a 2004 trial of a Merck & Co Ad5-based HIV vaccine, people with pre-existing immunity became more, not less, susceptible to the virus that causes AIDS.

Researchers, including top U.S. infectious diseases expert Dr. Anthony Fauci, in a 2015 paper, said the side effect was likely unique to HIV vaccines. But they cautioned that HIV incidence should be monitored during and after trials of all Ad5-based vaccines in at-risk populations.

“I would be worried about the use of those vaccines in any country or any population that was at risk of HIV, and I put our country as one of them,” said Dr. Larry Corey, co-leader of the U.S. Coronavirus Vaccine Prevention Network, who was a lead researcher on the Merck trial.

Gamaleya’s vaccine will be administered in two doses: The first based on Ad26, similar to J&J’s candidate, and the second on Ad5.

Alexander Gintsburg, Gamaleya’s director, has said the two-vector approach addresses the immunity issue. Ertl said it might work well enough in individuals who have been exposed to one of the two adenoviruses.

Many experts expressed skepticism about the Russian vaccine after the government declared its intention to give it to high-risk groups in October without data from large pivotal trials.

“Demonstrating safety and efficacy of a vaccine is very important,” said Dr. Dan Barouch, a Harvard vaccine researcher who helped design J&J’s COVID-19 vaccine. Often, he noted, large-scale trials “do not give the result that is expected or required.”

(Additional reporting by Christine Soares in New York, Kate Kelland in London, Polina Ivanova in Moscow and Roxanne Liu in Beijing; Editing by Caroline Humer and Bill Berkrot)

What you need to know about the coronavirus right now

(Reuters) – Here’s what you need to know about the coronavirus right now:

Global records

India reported 78,512 new novel coronavirus infections on Monday, slightly fewer than its record set the previous day when it posted the biggest, single-day tally of infections of any country in the pandemic. On Sunday, India’s total of 78,761 new cases exceeded the previous record of 77,299 in the United States on July 16, a Reuters tally of official data showed.

Despite the surging case numbers, Prime Minister Narendra Modi has been pushing for a return to normalcy to lessen the economic pain of the pandemic, having earlier imposed strict lockdowns of the country’s 1.3 billion people.

U.S. cases of the novel coronavirus surpassed 6 million on Sunday as many states in the Midwest reported increasing infections, according to a Reuters tally. While the United States has the most recorded infections in the world, it ranks tenth based on cases per capita.

More than eight months into the pandemic, the United States continues to struggle with testing. The number of people tested has fallen in recent weeks. Public health officials believe the United States needs to test more frequently to find asymptomatic coronavirus carriers to slow the spread of the COVID-19 disease.

Mutation found in Indonesia

A more infectious mutation of the new coronavirus has been found in Indonesia, the Jakarta-based Eijkman Institute for Molecular Biology said on Sunday, as the Southeast Asian country’s caseload surges.

The “infectious but milder” D614G mutation of the virus has been found in genome sequencing data from samples collected by the institute, deputy director Herawati Sudoyo told Reuters, adding that more study is required to determine whether that was behind the recent rise in cases.

The strain, which the World Health Organization said was identified in February and has been circulating in Europe and the Americas, has also been found in neighboring Singapore and Malaysia.

Vaccine approval and use underway in China

Sinovac Biotech Ltd’s coronavirus vaccine candidate CoronaVac was approved for emergency use as part of a program in China to vaccinate high-risk groups such as medical staff, a person familiar with the matter said.

China National Biotec Group (CNBG), a unit of state-owned pharmaceutical giant China National Pharmaceutical Group (Sinopharm), also said it had obtained emergency use approval for a coronavirus vaccine candidate in social media platform WeChat last Sunday. CNBG, which has two vaccine candidates in phase 3 clinical trials, did not say which of its vaccines had been cleared for emergency use.

China has been giving experimental coronavirus vaccines to high-risk groups since July, though officially it has given little details on which vaccine candidates have been given to high-risk people under the emergency use program and how many people have been vaccinated.

Lighter traffic in Seoul; masks on in Auckland

Private tuition centers shut for the first time and traffic was lighter in South Korea’s capital on Monday, the first working day of tighter social-distancing rules designed to halt a second wave of coronavirus outbreaks.

The decision came after earlier restrictions on movement failed to prevent a second wave of coronavirus infections from erupting at churches, offices, nursing homes and medical facilities.

Meanwhile in Auckland, schools and businesses reopened on Monday after the lifting of a lockdown in New Zealand’s largest city to contain the resurgence of the coronavirus, but face masks were made mandatory on public transport across the country. Prime Minister Jacinda Ardern said she was confident the new measure would be taken up across New Zealand, adding that “a bit of smiling with the eyes behind the mask” and kindness to Aucklanders in particular, would help get the country through the latest outbreak.

(Compiled by Karishma Singh; Editing by Jacqueline Wong)

U.S. coronavirus cases top six million as Midwest, schools face outbreaks

By Lisa Shumaker

(Reuters) – U.S. cases of the novel coronavirus surpassed six million on Sunday as many states in the Midwest reported increasing infections, according to a Reuters tally.

Iowa, North Dakota, South Dakota and Minnesota have recently reported record one-day increases in new cases while Montana and Idaho are seeing record numbers of currently hospitalized COVID-19 patients.

Nationally, metrics on new cases, deaths, hospitalizations and the positivity rates of tests are all declining, but there are emerging hotspots in the Midwest.

Many of the new cases in Iowa are in the counties that are home to the University of Iowa and Iowa State University, which are holding some in-person classes. Colleges and universities around the country have seen outbreaks after students returned to campus, forcing some to switch to online-only learning.

New York Governor Andrew Cuomo on Sunday said his state was sending a “SWAT team” to a State University of New York (SUNY) campus in Oneonta in upstate New York to contain a COVID-19 outbreak. Fall classes, which started last week at the college, were suspended for two weeks after more than 100 people tested positive for the virus, about 3% of the total student and faculty population, SUNY Chancellor Jim Malatras said.

“We have had reports of several large parties of our students at Oneonta last week, and unfortunately because of those larger gatherings, there were several students who were symptomatic of COVID,” Malatras said.

Across the Midwest, infections have also risen after an annual motorcycle rally in Sturgis, South Dakota drew more than 365,000 people from across the country from Aug. 7 to 16. The South Dakota health department said 88 cases have been traced to the rally.

More than eight months into the pandemic, the United States continues to struggle with testing. The number of people tested has fallen in recent weeks.

Many health officials and at least 33 states have rejected the new COVID-19 testing guidance issued by the Trump administration last week that said those exposed to the virus and without symptoms may not need testing.

Public health officials believe the United States needs to test more frequently to find asymptomatic COVID-19 carriers to slow the spread of the disease.

While the United States has the most recorded infections in the world, it ranks tenth based on cases per capita, with Brazil, Peru and Chile having higher rates of infection, according to a Reuters tally.

The United States also has the most deaths in the world at nearly 183,000 and ranks 11th for deaths per capita, exceeded by Sweden, Brazil, Italy, Chile, Spain, the United Kingdom, Belgium and Peru.

(Reporting by Lisa Shumaker in Chicago and Maria Caspani in New York; Editing by Daniel Wallis and Paul Simao)