Author Archives: Reuters News Agency

U.S. consumer sentiment plummets in early August to decade low

By Evan Sully and Lindsay Dunsmuir

(Reuters) -U.S. consumer sentiment dropped sharply in early August to its lowest level in a decade, in a worrying sign for the economy as Americans gave faltering outlooks on everything from personal finances to inflation and employment, a survey showed on Friday.

The unexpected reading could give Federal Reserve policymakers pause if it translates in the months ahead to a dent in economic activity. The central bank has been getting closer to a decision on when to begin pulling back the extraordinary stimulus it put in place to shield the economy from the COVID-19 pandemic.

The University of Michigan said its preliminary consumer sentiment index fell to 70.2 in the first half of this month from a final reading of 81.2 in July. That was the lowest level since 2011, and there have been only two larger declines in the index over the past 50 years. Those were at the depths of the 2007-2009 recession and during the first wave of shutdowns in April 2020 at the beginning of the pandemic.

The losses were widespread across income, age, and education subgroups and spanned all regions. Economists polled by Reuters had forecast the index would remain unchanged at 81.2.

U.S. stock market indexes slipped immediately after the report was released, while the price of gold gained ground. U.S. Treasury bond yields hit session lows.

“The renewed plunge suggests the latest wave of virus cases driven by the Delta variant could be a bigger drag on the economy than we had thought,” said Andrew Hunter, an economist at Capital Economics.

Economic growth is still expected to grow this year at its fastest pace in four decades after falling into a brief recession in 2020 caused by the coronavirus pandemic. But the recovery is showing some indication of cooling off.

COVID-19 cases have doubled in the past two weeks to reach a six-month peak as the more transmissible Delta variant spreads rapidly across the country. Labor shortages across the service sector also persist while supply chain disruptions have continued.

“The pandemic’s resurgence due to the Delta variant has been met with a mixture of reason and emotion…mainly from dashed hopes that the pandemic would soon end,” Richard Curtin, the survey director, said in a statement.

The survey’s gauge of current economic conditions also declined to a reading of 77.9 from 84.5 in July while its measure of consumer expectations slid to 65.2 from 79.0 in July.

The survey also showed consumers raising their expectations for medium term inflation, another measure the central bank is closely monitoring to ensure that inflation expectations remain anchored.

The survey’s one-year inflation expectation edged lower to 4.6%, down from 4.7%, but its five-year inflation outlook ticked up to 3.0% from 2.8% in July.

Consumer price increases slowed in July, the Labor Department said on Wednesday, but inflation overall remained at a historically high level amid lingering supply-chain disruptions and stronger demand for travel-related services.

(Reporting by Evan Sully and Lindsay Dunsmuir; Editing by Chizu Nomiyama)

Denmark and Norway to shut embassies in Afghanistan, evacuate staff

COPENHAGEN (Reuters) -Denmark and Norway are closing their embassies in Kabul for now and evacuating their staff as the security situation worsens in Afghanistan, the Nordic countries said on Friday.

The Taliban tightened their grip on Afghanistan on Friday, wresting control of its second and third biggest cities while Western embassies prepared to send in troops to help evacuate staff from the capital.

“We have decided to temporarily close our embassy in Kabul,” Danish Foreign Minister Jeppe Kofod told journalists, adding that the evacuation would be closely coordinated with Norway, with which it shares a compound.

Norway’s Foreign Minister Ine Soreide later said it would also shut its embassy and evacuate Norwegian diplomats, local employees and their close relatives.

Finland will organize a charter flight to evacuate 130 Afghans, including staff who had worked for Finland, the European Union or NATO and their close relatives, Finnish Foreign Minister Pekka Haavisto said in a statement.

The Finnish embassy in Kabul would remain open for now.

The defeats have fueled concern that Afghanistan’s U.S.-backed government could fall to the insurgents within weeks as international forces complete their withdrawal after 20 years of war.

(Reporting by Stine Jacobsen in Copenhagen and Gwladys Fouche in Oslo; Editing by Kevin Liffey, Jonathan Oatis and Richard Chang)

Wildfire breaks out east of Rome, locals evacuated

ROME (Reuters) – Locals were evacuated from small communities around 40 km (25 miles) east of Rome on Friday when a wildfire broke out as the Italian capital faced temperatures of around 37 degrees Celsius (99 Fahrenheit).

Swathes of southern Italy have been plagued by wildfires in recent weeks, with flames ravaging woodland in Calabria, in the toe of the Italian boot, and on the islands of Sicily and Sardinia.

Wednesday saw the temperature reach almost 49 Celsius in south-eastern Sicily, reported as the highest temperature ever recorded in Europe.

The heatwave is now moving north and overnight 25 families were evacuated from their homes as fires spread through the nature reserve of Monte Catillo, near the Rome suburb of Tivoli, firefighters said in a tweet.

Around 30 residents of a home for poor children and orphans were also evacuated to escape the flames.

Wildfires also broke out overnight near the town of Otranto, in Italy’s southern heel, firefighters said. A nearby seaside resort was evacuated due to the choking smoke and the coastal road heading south from Otranto was closed to traffic.

Prime Minister Mario Draghi on Thursday promised financial help for communities hit by the fires, and a plan of action to replant forest areas and make the Italian countryside more resilient to natural disasters.

(Reporting by Gavin Jones; Editing by Angelo Amante and David Holmes)

In rare British mass shooting, gunman kills five, including 3-year-old girl

By Natalie Thomas

PLYMOUTH, England (Reuters) -A man shot dead five people, including a 3-year-old girl, during a six-minute killing spree with a pump-action shotgun in the southern English city of Plymouth in what police believe was a case of domestic-related violence.

Mass shootings are rare in the United Kingdom, where gun ownership is relatively low, and Thursday’s rampage was the worst such incident in more than decade.

Police on Friday named the shooter as Jake Davison, a 22-year-old crane operator. He turned his gun on himself after killing the five victims on Thursday evening, the police said.

Devon and Cornwall Police Chief Constable Shaun Sawyer said police had found no motive but they were not considering terrorism or any far-right associations, although they were trawling through Davison’s computer.

“We believe we have an incident that is domestically related, that has spilled into the street and seen several people within Plymouth losing their lives in an extraordinarily tragic circumstance,” Sawyer told reporters.

The shooting started at about 6 p.m. on Thursday, first killing a 51-year-old woman whom Davison knew in a house. He then ran outside and immediately shot dead the young girl in the street along with her 43-year-old male relative.

Davison shot at two other passers-by who were badly injured, then entered a park and shot dead another man before killing another woman.

He then turned the gun on himself before firearms officers could tackle him. The deadly shooting spree was over in just a few minutes.

Sawyer said witnesses described the weapon as a pump-action shotgun. He could not say whether or not Davison had mental health issues. Davison had a firearms license.

In videos posted on the internet, Davison had complained of not losing his virginity as a teenager and described himself as an “incel” – or involuntary celibate. He complained in the videos of being beaten down by life, the Times reported.

Britain has suffered a number of deadly militant attacks in the past several years, but this was the worst mass killing of its kind since a taxi-driver killed 12 people then shot himself in a rampage in Cumbria, northern England, in June 2010.

The deadliest mass shooting in Britain’s modern history is the 1996 massacre in Dunblane, Scotland, when a gunman killed 16 pupils and a teacher at the local school before killing himself.

(Reporting by Sarah Young Writing by Guy Faulconbridge; Editing by Kate Holton, Mark Potter and Angus MacSwan)

Factbox-Latest on the worldwide spread of the coronavirus

(Reuters) – Drugmakers Pfizer, BioNTech and Moderna are expected to make billions of dollars from COVID-19 booster shots in a market that could for years rival the $6 billion in annual sales for flu vaccines, analysts and healthcare investors say.

DEATHS AND INFECTIONS

EUROPE

* The German government has designated the Israel, Turkey and the United States as high-risk countries, triggering a minimum five-day quarantine requirement for those who are unvaccinated, the Funke media group reported.

* Russia reported a record 815 coronavirus-related deaths in the last 24 hours, but Moscow’s mayor said hospitalizations from the disease in the capital had halved over the last six weeks.

* Norway’s government will end some restrictions related to the pandemic, it said, but stopped short of announcing a full reopening of the economy.

ASIA-PACIFIC

* Indonesia’s capital reopened its retail malls this week to an exclusive crowd – shoppers vaccinated against coronavirus.

* China reported declining numbers of new locally transmitted cases for the third consecutive day. However, ports and shipping companies are diverting vessels from a container terminal in the country’s busiest marine transportation hub, which was forced to close after a case emerged.

* Japanese Prime Minister Yoshihide Suga urged people to refrain from travelling as COVID-19 cases spiked to records in Tokyo and nationwide, heaping pressure on the medical system.

* South Korea signed a deal to buy 30 million doses of Pfizer vaccine for 2022, and the government urged people to cut holiday travel amid a worsening fourth wave of infections and a slow inoculation campaign.

AMERICAS

* The U.S. Food and Drug Administration authorized a third dose of vaccines from Pfizer and Moderna for people with compromised immune systems.

* The United States has started shipping nearly 569,000 Pfizer vaccine doses to member countries of the Caribbean Community (CARICOM), the U.S. State Department said.

MIDDLE EAST AND AFRICA

* Morocco received a shipment of 600,000 doses of the Pfizer-BioNTech vaccine as it expands its inoculation campaign to younger people following a surge in cases, said Said Afif, a member of the health ministry’s scientific committee.

* South Africa’s health minister Joe Phaahla said authorities would not would recommend a relaxation of lockdown measures from its current Level 3, despite an overall downward trend in infections as the country grapples with a third wave.

* Israel lowered to 50 from 60 the minimum age of eligibility for a vaccine booster shot and will also offer it to health workers, hoping to stem a surge in Delta variant infections.

MEDICAL DEVELOPMENTS

* The World Health Organization said it was setting up a new group to trace the origins of the coronavirus, seeking to end what it called “political point scoring” that had hampered investigations.

* Indian vaccine maker Bharat Biotech’s nasal vaccine candidate has received regulatory approval for mid- to late-stage trials, the government’s ministry of science and technology said in a statement.

* A two-dose vaccine from China’s Sinopharm was 50.4% effective in preventing infections in health workers in Peru when it saw a surge in cases fueled by virus variants, and booster shots can be considered, a study found.

ECONOMIC IMPACT

* Global stock markets hit record highs on Friday, capping another bumper week as investors seized on a dip in U.S. inflation and more forecast-beating corporate earnings.

(Compiled by Veronica Snoj and Federico Maccioni; Editing by Shounak Dasgupta and Barbara Lewis)

WHO seeks to take political heat out of virus origins debate

By Emma Farge

GENEVA (Reuters) – The World Health Organization said on Friday it was setting up a new group to trace the origins of the coronavirus, seeking to end what it called “political point scoring” that had hampered investigations.

The inability of the WHO to say where and how the virus began spreading has fueled tensions among its members, particularly between China, where COVID-19 cases were first identified in Wuhan in late 2019, and the United States.

The WHO called for all governments to cooperate to accelerate studies into the origins of the COVID-19 pandemic and “to depoliticize the situation.”

It specified that a new advisory group called the International Scientific Advisory Group for Origins of Novel Pathogens would support “the rapid undertaking” of further studies.

“We should work all together. You, me, everyone wants to know the origin of worst pandemic in a century,” WHO spokesperson Fadela Chaib said at a U.N. briefing on Friday.

Washington on Friday welcomed the WHO plan, noting the “emphasis on scientific-based studies and data driven efforts to find the origins of this pandemic so that we can better detect, prevent and respond to future disease outbreaks.”

President Joe Biden in late May ordered aides to find answers on COVID-19 origins and report back in 90 days.

In its final report, written jointly with Chinese scientists, a WHO-led team that spent four weeks in and around the city of Wuhan in January and February said that the virus had probably been transmitted from bats to humans through another animal. It said that a leak from a laboratory was “extremely unlikely” as a cause.

However, in a documentary broadcast in his native Denmark on Thursday, the WHO mission leader Peter Ben Embarek said that the lab hypothesis merited further study. Ben Embarek could not be reached by Reuters for further comment on Friday.

A WHO official said that its statement on advancing the virus origins study bore no relation to those remarks, noting that the Ben Embarek interview was filmed months ago.

China said it has never rejected cooperation on tracing COVID-19 origins, state media quoted the country’s vice foreign minister as saying.

(Reporting by Emma Farge, Jacon Gronholt-Pedersen and Gabriel Crossley; Editing by Keith Weir and Jon Boyle)

Afghan commander Ismail Khan captured as Taliban seize Herat

KABUL (Reuters) – Taliban insurgents have seized most of Herat, Afghanistan’s third largest city, and also captured Ismail Khan, the veteran local commander leading militia resistance there, local officials said on Friday.

The fall of Herat, the latest in a series of major provincial cities to be taken by the Taliban in the past few days, has dealt a shocking blow to the government of President Ashraf Ghani only weeks after the withdrawal of U.S. forces.

One official said Afghan government forces had agreed to withdraw from Herat airport, 15 km (nine miles) from the city, and the Army Corps commander’s headquarters, the last centers under their control. However other sources said Afghan forces were still at the airport as of 1 p.m. local time (0830 GMT).

“The Taliban agreed that they will not pose any threat or harm to the government officials who surrendered,” said provincial council member Ghulam Habib Hashimi.

As fighting subsided, the streets fell silent in Herat, a major economic hub of about 600,000 people close to the border with Iran and over centuries one of the historic centers of Persian culture.

“Families have either left or are hiding in their houses,” said Hashimi, who described Herat as a “ghost town”.

Herat has seen increasingly heavy fighting with popular militia groups serving alongside regular army units as Taliban pressure on the city mounted following the U.S. pullout.

Khan, the most prominent militia commander and believed to be in his 70s, together with the provincial governor and security officials, were handed over to the Taliban under an agreement, Hashimi told Reuters. He had no details of the deal.

Khan’s capture, confirmed by Taliban spokesman Zabiullah Mujahid, provided one of the most potent symbols of the crumbling of resistance in the city.

Photos and videos showing the eminent commander apparently in the hands of the insurgents were widely shared on social media although they could not immediately be verified.

Ismail Khan is widely known as the Lion of Herat. His involvement in Afghanistan’s wars goes back to the anti-government uprising that helped trigger the 1979 Soviet intervention, and his return to the front lines a month ago was a clear sign of the growing threat to Herat.

(Reporting by Kabul staff, writing by Raju Gopalakrishnan, editing by Mark Heinrich)

Life grinds to a halt in Lebanon’s blackouts

By Nafisa Eltahir and Issam Abdallah

BEIRUT (Reuters) – Lebanon’s worsening fuel crisis has reached a painful crunch point, with bakeries, businesses and hospitals either scaling back operations or shutting down completely, making life even harder for Lebanese already enduring a financial meltdown.

As the fuel oil that powers Lebanon has disappeared from the market, Lebanese have sweltered at home in the summer heat without light or AC, routinely tossing out the contents of fridges while having to set aside hours to fill up the car – if increasingly scarce gasoline can be found.

Many say living conditions are worse than during the 1975-90 civil war.

It marks a new low in the financial crisis that erupted in late 2019, the result of decades of corruption and mismanagement by a ruling elite that has failed to find solutions as more than half the population has sunk into poverty.

In the latest policy failure, the government is sparring with the central bank over its decision to end fuel subsidies, a step that would spell sharply higher prices.

While the stand-off continues, importers told Reuters the country faced a huge shortage of fuel.

“During the civil war, even with how horrible it was, there weren’t any power cuts,” said Hassan Khalife, 50, who owns a small barbecue joint near parliament in Beirut.

“The state, which is supposed to take care of its people, is doing the opposite, it’s trying to humiliate us as much as it can,” he said.

Khalife has downgraded from three refrigerators to one, which he powers via a line from a neighbor’s generator that whirrs loudly across the street. “We’ve become used to the sound, it’s like hearing birds or something,” he said.

On Wednesday, Lebanon’s electricity minister told reporters that the country needs 3,000 megawatts of power but only has enough fuel to produce 750. People say they get one or two hours of electricity from the grid per day, if any.

BLACK MARKET

The shortage of fuel, known as mazout, means people can’t run their own generators to fill the gap.

“In the last three days I can’t find mazout at all, neither black market nor white,” says Metri Flouti, who manages generators for buildings in the upscale Ashrafieh neighborhood, and is forced by the heat at home to sleep in his air conditioned office.

Key businesses are having the same problem.

Ali Ibrahim, head of the bakeries union, said some bakeries had been forced to pause this week. “This is people’s food, you can’t play around with it,” he said.

“Hospitals are going day by day, very few have enough for 2 or 3 days,” said Suleiman Haroun, head of the private hospitals union, adding that medical supplies were low and staff lacked petrol to get to work.

Souad Akl, general manager of Alfa Laboratories which produces saline solution and other medical essentials, told Reuters her factory shut down for the first time in almost 50 years this week.

In a city known for its nightlife, Beirut’s downtown and corniche are plunged into darkness, but still draw some escaping the heat at home. “I feel my home is dark, and it gives you depression,” said homemaker Manar Yassine.

She has emptied her fridge and waits to do laundry in the precious hour of electricity from the grid, trying to cut back on generator costs.

Her husband’s once comfortable salary now only covers their generator subscription, internet, and satellite TV. “I look at my kids, and their futures,” she said. “If someone gave us the means to emigrate, of course we would.”

(Additional reporting by Imad Creidi, Writing by Nafisa Eltahir, editing by Tom Perry and Giles Elgood)

Turkey combats Black Sea floods, death toll rises to 31

By Nevzat Devranoglu

SINOP, Turkey (Reuters) -Emergency workers battled to relieve flood-hit areas of Turkey’s Black Sea region on Friday, as the death toll rose to 31 in the second natural disaster to strike the country this month.

The floods, among the worst Turkey has experienced, brought chaos to northern provinces just as authorities were declaring wildfires that raged through southern coastal regions for two weeks had been brought under control.

Torrents of water tossed dozens of cars and heaps of debris along streets, destroyed bridges, closed roads and cut off electricity to hundreds of villages.

“This is the worst flood disaster I have seen,” Interior Minister Suleyman Soylu told reporters late on Thursday after surveying damage that extended across the provinces of Bartin, Kastamonu and Sinop.

Twenty-nine people died as a result of floods in Kastamonu and another two people died in Sinop, the Disaster and Emergency Management Directorate (AFAD) said.

Ten people were being treated in hospital, it added.

Opposition politicians said many more people were missing and the number of deaths could rise sharply.

“The infrastructure in Ayancik (district) has completely collapsed. The sewage system is destroyed. There is no electricity or water,” Sinop Mayor Baris Ayhan told Reuters.

TREES UPROOTED

The floods and fires, which killed eight people and devastated tens of thousands of hectares of forest, struck in the same week that a U.N. panel said global warming was dangerously close to spiraling out of control, and warned that extreme weather would become more severe.

About 45 cm (18 inches) of rain fell in less than three days in one village near the worst-hit region, Kastamonu’s Bozkurt district, AFAD cited meteorology authorities as saying.

Footage of the flood’s first moments in Bozkurt showed the river there overflowing in a fast-moving deluge which tore up trees and dragged away vehicles.

The small town of Bozkurt lies in a valley along the banks of the Ezine river in Kastamonu province, 2.5 km (1.6 miles) from the Black Sea.

Opposition Republican People’s Party (CHP) lawmakers attributed the level of destruction there to extensive construction on the river banks in recent years.

Speaking in Bozkurt, Erdogan declared the three provinces a disaster zone. “Our country has been grappling with natural disasters for a while, as are many places in the world. This is not just our country but the United States, Canada, Germany and many other European countries,” he said.

More than 1,800 people were evacuated from flood-affected areas, some with the aid of helicopters and boats, AFAD said.

Helicopters lowered coast guard personnel onto the roofs of buildings to rescue people stranded as flood water swept through the streets, footage shared by the Interior Ministry showed.

Nearly 180 villages were still without electricity on Friday evening. Five bridges had collapsed and many others were damaged, leading to road closures, AFAD added. Parts of the roads were also swept away.

Turkey’s meteorology authority said more heavy rain was expected in the central and eastern Black Sea region with a risk of further floods.

(Additional reporting Ali Kucukgocmen; Writing by Daren Butler; Editing by Dominic Evans, Mike Collett-White and Giles Elgood)

San Francisco becomes second U.S. city to mandate vaccines for bars, gyms

By Gabriella Borter

(Reuters) -San Francisco announced on Thursday that proof of full vaccination would be required for entry to restaurants, gyms and other indoor venues, aiming to curb a new wave of COVID infections that has prompted public health mandates across the country.

San Francisco, which launches its mandate on Aug. 20, is the second major city to pass a sweeping vaccine requirement for indoor businesses after New York, which only requires proof of one vaccination dose.

The vaccine mandates in two liberal cities have come as schools in some conservative states are fighting to require masks, going against their Republican governors’ orders.

The board of Houston’s public schools was expected to vote on Thursday to defy a state ban on mask mandates, joining other districts in Texas and Florida requiring face coverings in classrooms to fight a surge of COVID-19 infections, despite threats from state leadership.

The measure is likely to pass, with a majority of board members expressing support for requiring masks in schools, the Houston Chronicle reported.

As the start of the academic year coincides with a dire new wave of COVID-19 cases, schools have quickly become the focal point of the nation’s political fight over masking and vaccine mandates.

Florida has threatened to withhold the salaries of school officials who require masks, a move that has escalated tension between Florida Governor Ron DeSantis, a Republican, and the administration of U.S. President Joe Biden, a Democrat.

The White House is considering reimbursing Florida school officials if DeSantis, who is widely seen as weighing a potential 2024 challenge for the presidency, follows through on his threat.

The Delta variant appears to be flattening the pace of the U.S. economic recovery after a big upswing in the first half of 2021, according to Oxford Economics U.S. Recovery Tracker.

“Sharply deteriorating health conditions are the main reason why the South’s recovery is now losing momentum,” Oxford’s lead U.S. economist Oren Klachkin said. “And the rapid uptick in Covid cases in the region is causing activity to moderate and mobility and employment to stagnate.”

HEALTH CARE STRETCHED THIN

The worst of the U.S. COVID outbreak is concentrated in the South, including Arkansas, Florida, Louisiana, Mississippi and Texas, where intensive care units have been stretched to capacity. While flouting federal recommendations on masks, Florida has asked Washington to help by sending ventilators.

The number of daily cases across the country has doubled in the last two weeks, according to a Reuters tally, reaching a six-month peak, while the average number of daily deaths has increased 85% in the last 14 days.

“Our frontline health care heroes are finding themselves stretched thin and physical and mental exhaustion is taking its toll,” Florida Hospital Association President Mary Mayhew said in a statement on Tuesday, adding that people in their 20s and 30s were being hospitalized with the virus.

Leaders in Democrat-led states and cities have moved swiftly to impose COVID-19 mask and vaccine requirements in the face of the Delta variant.

San Francisco’s new vaccine mandate for indoor businesses extends to employees as well as patrons. Employees of restaurants, gyms and other venues have until Oct. 13 to show proof of full vaccination, the order says. Proof of vaccination will also be required for attendees at indoor events of 1,000 people or more.

Meanwhile, California, Illinois, Kentucky and New Jersey, all led by Democratic governors, have required masks in all schools.

On Thursday, the National Education Association President Becky Pringle, who leads the largest teachers’ union in the country, said she supported vaccine mandates for teachers. Her statement came on the heels of a similar announcement from the American Federation of Teachers’ president earlier this week.

(Reporting by Gabriella Borter in Washington; Additional reporting by Peter Szekely and Dan Burns in New York and Manas Mishra in Washington; Editing by Lisa Shumaker)