New York must allow religious exemptions to COVID-19 vaccine mandate, judge rules

By Tom Hals and Nate Raymond

(Reuters) -A federal judge ruled on Tuesday that New York state cannot impose a COVID-19 vaccine mandate on healthcare workers without allowing their employers to consider religious exemption requests.

U.S. District Judge David Hurd in Albany, New York, ruled that the state’s workplace vaccination requirement conflicted with healthcare workers’ federally protected right to seek religious accommodations from their employers.

The ruling provides a test case as vaccine mandate opponents gear up to fight plans by President Joe Biden’s administration to extend COVID-19 inoculation requirements to tens of millions of unvaccinated Americans.

Vaccines have become highly politicized in the United States, where only 66% of Americans are vaccinated, well short of the initial goals of the Biden administration.

Seventeen healthcare workers opposed to the mandate sued, saying the requirement violated their rights under the U.S. Constitution and a federal civil rights law requiring employers to reasonably accommodate employees’ religious beliefs.

Hurd agreed, saying the state’s order “clearly” conflicted with their right to seek religious accommodations.

“The court rightly recognized that yesterday’s ‘front line heroes’ in dealing with COVID cannot suddenly be treated as disease-carrying villains and kicked to the curb by the command of a state health bureaucracy,” said Christopher Ferrara, a lawyer for the workers at the conservative Thomas More Society.

New York Governor Kathy Hochul, a Democrat, vowed in a statement to fight the decision, saying her “responsibility as governor is to protect the people of this state, and requiring health care workers to get vaccinated accomplishes that.”

At least 24 states have imposed vaccine requirements on workers, usually in healthcare.

New York’s Department of Health on Aug. 26 ordered healthcare professionals to be vaccinated by Sept. 27 and the order did not allow for the customary religious exemptions.

Hurd issued a temporary restraining order on Sept. 14 in favor of the workers while he considered whether to issue a preliminary injunction.

(Reporting by Tom Hals in Wilmington, Delaware and Nate Raymond in Boston; Editing by Noeleen Walder and Peter Cooney)

“There will be things that people can’t get,” at Christmas, White House warns

By Jarrett Renshaw and Trevor Hunnicutt

WASHINGTON (Reuters) -White House officials, scrambling to relieve global supply bottlenecks choking U.S. ports, highways and railways, warn Americans may face higher prices and some empty shelves this Christmas season.

The supply crisis, driven in part by the global COVID-19 pandemic, not only threatens to dampen U.S. spending at a critical time, it also poses a political risk for U.S. President Joe Biden.

The latest Reuters/Ipsos poll shows the economy continues to be the most important issue to Democrats and Republicans alike.

The White House has been trying to tackle inflation-inducing supply bottlenecks of everything from meat to semiconductors, and formed a task force in June that meets weekly and named a “bottleneck” czar to push private sector companies to ease snarls.

Biden himself plans to meet with senior officials on Wednesday to discuss efforts to relieve transportation bottlenecks before delivering a speech on the topic.

Supply chain woes are weighing on retail and transportation companies, which recently issued a series of downbeat earnings outlooks. Meanwhile, the Federal Reserve last month predicted a 2021 inflation rate of 4.2%, well above its 2% target.

American consumers, unused to empty store shelves, may need to be flexible and patient, White House officials said.

“There will be things that people can’t get,” a senior White House official told Reuters, when asked about holiday shopping.

“At the same time, a lot of these goods are hopefully substitutable by other things … I don’t think there’s any real reason to be panicked, but we all feel the frustration and there’s a certain need for patience to help get through a relatively short period of time.”

Inflation is biting wages. Labor Department data shows that Americans made 0.9% less per hour on average in August than they did one year prior.

The White House argues inflation is a sign that their decision to provide historic support to small businesses and households, through $1.9 trillion in COVID-19 relief funding, worked.

U.S. consumer demand stayed strong, outpacing global rivals, and the Biden administration expects the overall economy to grow at 7.1%, as inflation reaches its highest levels since the 1980s.

“We recognize that it has pinched families who are trying to get back to some semblance of normalcy as we move into the later stages of the pandemic,” said a second senior White House official.

BOTTLENECK CZAR

In August, the White House tapped John Porcari, a veteran transportation official who served in the Obama administration as a new “envoy” to the nation’s ports, but he’s known as the bottleneck czar.

Porcari told Reuters the administration has worked to make sure various parts of the supply chain, such as ports and intermodal facilities, where freight is transferred from one form of transport to another, are in steady communication.

Now it is focused on getting ports and other transportation hubs to operate on a 24-hour schedule, taking advantage of off-peak hours to move more goods in the pipeline. California ports in Long Beach and Los Angeles have agreed to extended hours, and there are more to follow, he said in an interview Monday.

“We need to make better use of that off-peak capacity and that really is the current focus,” Porcari said.

The administration is also seeking to restore inactive rail yards for extra container capacity and create “pop-up” rail yards to increase capacity.

“It’s important to remember that the goods movement system is a private sector driven system,” he said. “There’s problems in every single part of that system. And, and they tend to compound each other.

“While the pandemic was an enormously disruptive force. I think it also laid bare what was an underlying reality, which was the system was strained before the pandemic.”

A NEW WAR ON CHRISTMAS

Republican strategists are seizing on possible Christmas shortages to bash Biden’s policies as inflationary, and thwart his attempt to push a multi-trillion dollar spending package through Congress in coming weeks.

A recent op-ed by Steve Cortes, a one-time advisor to former President Donald Trump, dubbed the upcoming holiday season “Biden’s Blue Christmas,” continuing in a long tradition of conservatives criticizing Democrats over celebrations around the Christian holiday.

Trump, considered the front-runner Republican candidate for president in 2024, blasted it out in a mass email through his political action committee, Save America.

Seth Weathers, a Republican strategist who ran Trump’s Georgia campaign in 2016 said they see local impact. “People here in Georgia are paying twice as much for items than they paid a year ago and they are blaming Biden. He’s in charge.”

A Quinnipiac poll released last week showed Biden is losing the public’s trust on the economy, with only 29% of public thinking the U.S. economy is in “good” or “excellent” condition, compared with 35% in April.

“President Biden could use a holiday season win,” Quinnipiac polling analyst Tim Malloy said. “A slowdown of holiday season deliveries and the financial strain that comes with it would be coal in the stocking for the Administration at the close of the first year in office.”

(Reporting By Jarrett Renshaw and Trevor Hunnicutt; Editing by Heather Timmons, Richard Pullin and Aurora Ellis)

U.S. FDA removes concessions on hand sanitizer production as supply recovers

(Reuters) – The U.S. Food and Drug Administration said on Tuesday companies manufacturing certain alcohol-based hand sanitizers under its previous relaxed guidance must stop making these products by the end of the year as there is no longer a shortage.

The FDA had issued the temporary guidelines in March 2020 to address tight supply conditions for sanitizers, driven by a surge in demand for the products during the coronavirus outbreak.

On Tuesday, the agency withdrew the guidance and said companies that have been manufacturing the sanitizers under the temporary guidelines should stop making the products effective Dec. 31.

“In recent months, the supply of alcohol-based hand sanitizer from traditional suppliers has increased, and now, most consumers and healthcare personnel are no longer having difficulty obtaining these products,” the agency said.

Hand sanitizers manufactured before Dec. 31 or on that date and produced under the previous temporary guidelines must no longer be sold to wholesalers or retailers by March 31, 2022, the agency added.

The FDA said manufacturers that wish to continue making hand sanitizers after Dec. 31 must comply with the agency’s manufacturing requirements.

(Reporting by Amruta Khandekar; Editing by Shailesh Kuber)

Merck seeks first U.S. authorization for COVID-19 pill

(Reuters) -Merck & Co Inc said on Monday it has applied for U.S. emergency use authorization for its drug to treat mild-to-moderate patients of COVID-19, putting it on course to become the first oral antiviral medication for the disease.

An authorization from the U.S. Food and Drug Administration could help change clinical management of COVID-19 as the pill can be taken at home.

The treatment, molnupiravir, cut the rate of hospitalization and death by 50% in a trial of mild-to-moderately ill patients who had at least one risk factor for the disease, according to data released earlier this month.

The interim efficacy data on the drug, developed with Ridgeback Biotherapeutics, had heavily dented the shares of COVID-19 vaccine makers and set off a scramble among nations, including Malaysia, South Korea and Singapore, to sign a supply deal with Merck.

The drugmaker has a U.S. government contract to supply 1.7 million courses at a price of $700 per course. Merck expects to produce 10 million courses of the treatment by the end of 2021.

It has also agreed to license the drug to several India-based generic drugmakers, which are expected to supply the treatment to more than 100 low- and middle-income countries.

Gilead Sciences Inc’s infused antiviral remdesivir is generally given only once a patient is hospitalized.

Monoclonal antibody drugs from Regeneron Pharmaceuticals Inc and Eli Lilly, which are typically infused as well, have so far seen only limited use due to the difficulty in administering them.

Merck’s shares opened roughly 1% higher before paring some gains to trade at $81.32.

(Reporting by Manas Mishra and Leroy Leo in Bengaluru; Editing by Arun Koyyur)

AstraZeneca antibody cocktail study shows success treating COVID-19

By Ludwig Burger, Yadarisa Shabong and Sachin Ravikumar

(Reuters) -AstraZeneca’s antibody cocktail against COVID-19, which has proven to work as a preventative shot in the non-infected, was also shown to save lives and prevent severe disease when given as treatment within a week of first symptoms.

The drug, a combination of two antibodies called AZD7442, reduced the risk of severe COVID-19 or death by 50% in non-hospitalized patients who have had symptoms for seven days or less, the Anglo-Swedish drugmaker said on Monday.

The risk reduction was even better in patients who started therapy within just five days of initial symptoms, but AstraZeneca joins an already crowded field of medicines that were shown to prevent deterioration in patients with mild disease when given soon after diagnosis.

AstraZeneca executive Mene Pangalos said in a media call that the treatment results would mainly underscore the potential future use as a non-vaccine prevention.

“If and when this is approved it will be used in the treatment setting as well. But the real differentiator for this antibody is going to be in the prophylactic setting,” he said.

Similar therapies made with a class of drugs called monoclonal antibodies are being developed by Regeneron, Eli Lilly and GlaxoSmithKline with partner Vir. These therapies are approved for emergency use in the United States for treating mild-to-moderate COVID-19.

Regeneron’s therapy showed 72% protection against symptomatic infection in the first week, and 93% after that.

GSK-Vir’s showed a 79% reduction in the risk of hospitalization or death due to any cause, while Eli Lilly’s therapy showed a 70% reduction in viral load at day seven compared to a placebo.

Merck & Co Inc, in turn, is emphasizing the convenience of use of its anti-COVID-19 tablet, which cut the risk of having to got to hospital or of dying by 50% in a trial of early-stage patients who had at least one risk factor.

Merck, collaborating with Ridgeback Biotherapeutics, on Monday applied for U.S. emergency clearance for the oral drug.

AstraZeneca, whose COVID-19 vaccine has been widely used across the globe, asked U.S. regulators last week to grant emergency use authorization for AZD7442 as a preventative shot.

As such, it is designed to protect people who do not have a strong enough immune response to vaccines, primarily those who have received organ transplants or who are in cancer care.

If full market clearance is obtained after any emergency approval the market could widen, for instance, to include crew and passengers of a cruise ship, said Pangalos.

“You can say the same for people who don’t want to be vaccinated but want an antibody,” he added.

AstraZeneca said it is submitting the new treatment data on AZD7442 to global health regulators.

The trial took place across 13 countries and involved more than 900 adult participants, 90% of whom suffered from conditions that made the particularly vulnerable to COVID-19, such as cancer and diabetes. One half receiving AZD7442 and the rest a placebo.

Full trial results will be submitted for publication in a peer-reviewed journal, AstraZeneca said.

AZD7442 contains laboratory-made antibodies designed to linger in the body for months to contain the virus in case of an infection. A vaccine, in contrast, relies on an intact immune system to develop targeted antibodies and infection-fighting cells.

While Monday’s results cover the use of AZD7442 in non-hospitalized patients, a separate trial is also studying its use as a treatment for hospitalized COVID-19 patients.

(Reporting by Ludwig Burger in Frankfurt, Yadarisa Shabong in Bengaluru; Editing by Saumyadeb Chakrabarty, Kirsten Donovan and Alexander Smith)

Russia says at least 49,389 people died from COVID-19 in Aug

MOSCOW (Reuters) – At least 49,389 people died in Russia in August due to the coronavirus and related causes, taking the toll to around 418,000 people since the pandemic began, state statistic service Rosstat said on Friday.

Russian authorities blame the spread of the more contagious Delta variant and a low vaccination rate for the third wave of coronavirus infections, which peaked in July.

In July, Russia saw the highest monthly coronavirus death toll of the pandemic as 51,044 people died from COVID-19 or related causes that month, the figure revised recently after the first publication.

The number reported by Rosstat exceeds the official total death toll of 214,485, published by the Russian coronavirus task force earlier on Friday.

Authorities explained the discrepancy between Rosstat and coronavirus task force data by the fact that the latter reports deaths from COVID-19 on a daily basis that do not need additional confirmation from medical examiners, whereas Rosstat publishes full data on a monthly basis.

Some epidemiologists say that measuring excess mortality is the best way to assess the death toll during a pandemic.

Based on the new data, Reuters calculated that the number of excess deaths in Russia between April 2020 and August 2021 had reached 575,000 in comparison with the average mortality rate in 2015-2019.

(Reporting by Gleb Stolyarov; Writing by Andrey Ostroukh; Editing by Alison Williams)

U.S. labor market regaining footing as weekly jobless claims fall sharply

By Lucia Mutikani

WASHINGTON (Reuters) – The number of Americans filing new claims for jobless benefits dropped by the most in three months last week, suggesting the labor market recovery was regaining momentum after a recent slowdown, as the wave of COVID-19 infections began to subside.

The weekly unemployment claims report from the Labor Department on Thursday, the most timely data on the economy’s health, also showed the number of people on state unemployment rolls plunging to an 18-month low in late September.

Improving labor market conditions bode well for the government’s closely watched employment report for September and also provide ammunition for the Federal Reserve, which signaled last month it could begin reducing is monthly bond buying as soon as November.

“The labor market is back on track after a few weeks of rising claims threw a question mark into the markets’ understanding of just how solid the economic outlook really is,” said Christopher Rupkey, chief economist at FWDBONDS in New York. “The Fed has the evidence it needs to start paring back its emergency stimulus purchases when it meets next month.”

Initial claims for state unemployment benefits decreased 38,000 to a seasonally adjusted 326,000 for the week ended Oct. 2. That was the biggest drop since late June. Economists polled by Reuters had forecast 348,000 claims for the latest week.

Unadjusted claims, which economists say offer a better read of the labor market, tumbled 41,431 to 258,909 last week. California led the drop in claims last week. There were also decreases in Michigan, Ohio, Washington DC and Missouri. They offset notable increases in Pennsylvania and Virginia.

Claims had increased for three straight weeks as California moved people to another program following the expiration of federal government-funded aid on Sept. 6, to allow the recipients to collect one additional week of benefits.

There had also been increases in filings related to the idling of assembly plants in some states by automakers as they managed their supply of semiconductors amid a global shortage.

A resurgence in COVID-19 infections, driven by the Delta variant, also disrupted activity in the high-contact services sector. That suggested some moderation in labor market conditions in the prior weeks, which was confirmed by a separate report on Thursday from global outplacement firm Challenger, Gray & Christmas showing job cuts announced by U.S.-based employers increased 14% to 17,895 in September.

Still, layoffs were down 85% compared to September 2020.

In the third quarter, employers announced 52,560 job cuts, the fewest since the second quarter of 1997 and down 23% from the July-September period.

Stocks on Wall Street were trading higher. The dollar dipped against a basket of currencies. U.S. Treasury prices fell.

SUPPLY WOES

Layoffs last month were led by companies in the healthcare/products sector, with 2,673 announced cuts. Since the Pfizer vaccine received full-FDA approval, many healthcare facilities have implemented vaccine mandates, which have led to the firing of non-compliant workers.

Ongoing strains in the supply chain saw industrial goods manufacturers laying off 2,328 workers in September, while warehousing businesses reported 1,936 job cuts. There were 1,679 job cuts in the services sector.

But the rise in layoffs was dwarfed by an explosion in planned hiring, in part as retailers gear up for the holiday season. The Challenger report showed companies announced plans to hire 939,790 workers compared to only 94,004 in August.

With companies eager to hire, more people are coming off the state unemployment rolls. The claims report showed the number of people continuing to receive benefits after an initial week of aid tumbled 97,000 to 2.714 million in the week ended Sept. 25. That was the lowest level since mid-March 2020.

The total number of people collecting unemployment checks under all programs dropped to 4.172 million during the week ended Sept. 18 from 5.027 million in the prior week. That reflected the end of extended benefits last month, which economists hope will increase the labor pool.

The pandemic forced some people to drop out of work to become caregivers. Others are reluctant to return for fear of contracting the coronavirus, while some have either retired or are seeking career changes. That has left employers desperate to fill a record 10.9 million job openings as of the end of July.

The worker shortages have impacted job growth, though there is optimism that hiring picked up in September. According to a Reuters survey of economists, nonfarm payrolls likely increased by 500,000 jobs last month.

Estimates range from as high as 700,000 jobs to as low as 250,000, reflecting the mixed labor market indicators in September. A survey from the Conference Board last week showed consumers’ views of current labor market conditions softened.

While the Institute for Supply Management’s measure of manufacturing employment rebounded last month after contracting in August, its measure of services industry employment slipped.

The economy created 235,000 jobs in August, the fewest in seven months. The unemployment rate is forecast dipping to 5.1% in September from 5.2% in August.

“Going forward, the combination of easing labor supply constraints, strong labor demand and an improving COVID outlook should spur further labor market progress,” said Lydia Boussour, lead U.S. economist at Oxford Economics in New York.

(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama and Andrea Ricci)

COVID infections dropping throughout the Americas, says health agency

BRASILIA (Reuters) – The number of new COVID-19 infections has been dropping over the past month throughout the Americas, even though only 37% of the people in Latin America and the Caribbean have been fully vaccinated, the Pan American Health Organization (PAHO) said on Wednesday.

However, Alaska has the most serious outbreak in the United States today that is overwhelming emergency rooms, and while South America is continuing to see a drop in infections, Chile has seen a jump in cases in the capital Santiago and port cities Coquimbo and Antofagasta.

PAHO has closed vaccine supply agreements with Sinovac Biotech Inc and AstraZeneca Plc for delivery this year and next and with China’s Sinopharm for 2022, the agency’s director Carissa Etienne told reporters.

(Reporting by Anthony Boadle)

Pfizer study to vaccinate whole Brazilian town against COVID-19

BRASILIA (Reuters) -Pfizer Inc will study the effectiveness of its vaccine against COVID-19 by inoculating the whole population over the age of 12 in a town in southern Brazil, the company said on Wednesday.

The study will be conducted in Toledo, population 143,000, in the west of Parana state, together with Brazil’s National Vaccination Program, local health authorities, a hospital and a federal university.

Pfizer said the purpose was to study transmission of the coronavirus in a “real-life scenario” after the population has been vaccinated.

“The initiative is the first and only of its kind to be undertaken in collaboration with the pharmaceutical company in a developing country,” Pfizer said.

A similar study was conducted by the Butantan Institute, one of Brazil’s leading biomedical research centers, in the smaller town of Serrana, in Sao Paulo state, to test the CoronaVac shot developed by China’s Sinovac Biotech Ltd.

In May, Butantan said mass vaccination had reduced COVID-19 death by 95% in the town with a population of 45,644 people. The institute is considering extending the study for a third dose.

“Here we believe in science and we lament the almost 600,000 deaths from COVID-19 in Brazil,” Toledo Mayor Beto Lunitti said at a news conference announcing the Pfizer study.

Regis Goulart, a researcher at Toledo’s Moinhos de Vento Hospital, said its aim was to validate the real-world efficacy and safety of the vaccine seen in clinical trials.

The observational study will also be an opportunity to do long-term monitoring for up to one year of participants and to answer lingering questions such as the duration of vaccine protection against COVID-19 and new variants, Goulart said.

(Reporting by Anthony Boadle; Editing by Jason Neely and Mark Porter)

Treasury warns Arizona it can’t use federal funds to undermine school mask requirements

By Andrea Shalal

WASHINGTON (Reuters) -Deputy Treasury Secretary Wally Adeyemo told Arizona’s governor on Tuesday that his state could not use federal funds to pay for programs aimed at undermining face mask requirements in schools, and said Arizona could lose funding if it did not change course.

In a letter to Governor Douglas Ducey, Adeyemo raised concerns about two new Arizona state programs funded under the coronavirus relief “American Rescue Plan” which he said would “undermine evidence-based efforts to stop the spread of COVID-19.”

Adeyemo’s letter comes a month after the U.S. Department of Education opened civil rights investigations to determine whether five states – Iowa, Oklahoma, South Carolina, Tennessee and Utah – that have banned schools from requiring masks are discriminating against students with disabilities.

One of the Arizona programs offers grants to school districts on condition they not require the use of face coverings during instructional hours. The second gives families a voucher of up to $7,000 per student to cover tuition or other educational costs at a new school that does not require face coverings if the student’s current school requires them.

Both programs tapped a $350 billion fund established under the American Rescue Plan to mitigate the fiscal effects of the COVID-19 emergency, which has killed over 700,000 people in the United States, Adeyemo said in his letter.

“A program or service that imposes conditions on participation or acceptance of the service that would undermine efforts to stop the spread of COVID-19 or discourage compliance with evidence-based solutions for stopping the spread of COVID-19 is not a permissible use of (such) funds,” he said.

Adeyemo asked Ducey to respond within 30 days on how Arizona planned to come into compliance with the federal requirements, warning that “failure to respond or remediate may result in administrative or other action.” Such action included federal efforts to recoup the funds, a Treasury official said.

Florida, Texas and Arkansas have also banned mandatory masking orders in schools. The Education Department left those states and Arizona out of its inquiry because court orders or other actions have paused their enforcement, it said in a news release.

(Reporting by Andrea Shalal; Editing by Mark Porter and Sonya Hepinstall)