Australian floods kill two, more evacuations as clean-up begins

By Renju Jose and Jonathan Barrett

SYDNEY (Reuters) -The bodies of two men were found in Australia on Wednesday in cars trapped in floodwaters, the first deaths linked to wild weather in recent days that has submerged houses, swept away livestock and cut off entire towns.

More than 40,000 people have been forced to flee their homes as torrential rain sparked dangerous flash floods, and authorities issued new evacuation orders for residents of Sydney’s western regions to move to safety.

In some other areas, a massive clean-up operation began as sunny skies returned for the first time in days, and food and other emergency supplies were flown in over swamped roads.

Authorities were trying to contact the family of a Pakistani national whose body was found by emergency services in a car under six meters of water in Sydney’s northwest.

Police had determined the man was driving a brand new car, on the first day of a new job and unfamiliar with the rural area, New South Wales Police Detective Inspector Chris Laird told media. The reason he could not get out of the vehicle was being investigated.

“It could very well be that the electrics totally failed and he was simply unable to escape from the car which is an absolute tragedy,” Laird said.

Media reported police found a second body in an upturned utility vehicle in floodwaters in Queensland state.

Gladys Berejiklian, premier of New South Wales, the worst-hit state, warned that water levels would keep rising in some areas as major dams overflowed and rivers bulged, with thousands of people were on evacuation watch.

“Catchments will continue to experience flows of water not seen in 50 years and in some places 100 years,” Berejiklian told reporters in Sydney.

The Insurance Council of Australia, the main industry body, said about 17,000 damages claims worth about A$254.2 million ($193.32 million) had been lodged by Wednesday morning across New South Wales and Queensland.

Homes have been submerged, livestock swept away and crops inundated.

There have also been many animal rescues, with craft used to move dogs, cattle, and even an emu, away from the flood waters. In the country’s arid center, water cascaded down the Uluru rock formation, a rare phenomenon described by the national park as “unique and extraordinary”.

RECOVERY BEGINS

Prime Minister Scott Morrison said heavy-load helicopters would transport food to supermarkets where supplies were running short.

“The expanse of water that went right across that region was quite devastating to see,” Morrison said in parliament after he toured flood-affected areas by helicopter.

Several hundred defense force personnel would be sent to flood-affected areas over the next few days to help in the recovery, said Emergency Management Minister David Littleproud.

“Their job will be out there cleaning up, making sure that we get rid of the debris, having boots on the ground,” Littleproud said.

Australian Rail Track Corp (ARTC) partially reopened Hunter Valley coal rail lines to Newcastle, the world’s biggest coal export port, but not before supply concerns lifted thermal coal prices to two year highs near $100 a tonne.

The Hunter Valley rail network serves mines run by BHP Group, Glencore Plc, New Hope Corp, Whitehaven Coal and Yancoal Australia, among others.

The Port of Newcastle, which last year shipped 158 million tonnes of coal, slowed ship movements this week but said on Wednesday it was continuing to operate.

Forecasters said the weather system that brought the rain would shift to the island state of Tasmania on Wednesday, bringing downpours and flooding.

(Reporting by Renju Jose, Jonathan Barrett, Melanie Burton and Sonali Paul; editing by Grant McCool and Jane Wardell)

Anxious Americans to pay debt, taxes with COVID-19 stimulus checks

By Tim Reid

(Reuters) – Michael Johnson, a construction worker in Washington, D.C., is waiting for the $1,400 check from the government promised after U.S. President Joe Biden signed the $1.9 trillion COVID-19 relief bill last week.

He’s not planning a spending spree. He’s nervous. “I’ll try and get ahead on my mortgage a little bit. You know, we are still in this pandemic,” Johnson, 45, said.

Almost 900 miles away in Baraboo, Wisconsin, Aric Nowicki runs a heating and air conditioning business that takes in about $150,000 annually but has expenses of about $100,000. He has clients who are late on their bills, and he plans to use his money to pay his own overdue bills.

“I’m very apprehensive,” Nowicki said. “I’m not sure the vaccines will bring us back to normality. Too many people say they don’t want to take it, and there are these mutations.”

In interviews with a dozen Americans, including a nurse, a man made homeless by the pandemic, a plumber, a teacher, and a bar owner, nearly all say they are so worried about the future that they will use their stimulus checks to pay debt and taxes accumulated in the past year.

Those spending priorities are not what massive stimulus bills are traditionally meant to achieve. They are designed to encourage people to buy goods and services, to help U.S. businesses and create jobs.

Labor economist Diane Swonk sees a divide between those who can work from home and those who cannot – highlighted by the ways Americans have spent their stimulus checks from the government during the year-long coronavirus pandemic.

Consumer spending on goods was quite robust in January, Swonk said. But that was mostly by people who did not necessarily need the three checks sent out by the U.S. Treasury in the past year. Most who desperately needed the money have used it for food, shelter, and to pay debt. “This gets to the issue that a rising tide does not lift all boats,” Swonk said.

White House spokeswoman Jen Psaki was asked on Monday how Biden expected people to spend their stimulus checks.

“They will use it for different means,” Psaki said. “Some Americans will use it to ensure they can put food on the table, that’s a form of stimulus. Some will use it to ensure that they can pay their rent. That’s a form of stimulus. It’s up to family to family.”

Reverend Lee May, the pastor of Transforming Faith Church, an ecumenical Christian church in suburban Atlanta, said members of his congregation “really need this boost.”

“This is intended to help and we feel blessed to have it sent our way, but it isn’t enough to make us whole,” May said. “We know there are prohibitions on evictions and shut offs of utilities for now, but those rent and light bills don’t go away.”

“More needs to be done,” he said.

Reginald Smith, 36, a cook who was laid off in the crisis as many restaurants closed, was waiting in line at the food pantry outside the First Presbyterian Church of Atlanta on Monday.

He lost his place to stay and he has been “couch surfing” at the homes of friends.

“I need a job and hope to get one once this all opens back up,” he said. “But first I need my own place to stay. I’m hoping that this (the stimulus check) will help me make a deposit, get a place and get back on my feet. I wish it was more though. I don’t know if this is enough to dig me out.”

Others are more optimistic. Steve Pitts, the general manager of Manuel’s Tavern in Midtown Atlanta, hopes the stimulus checks will give people more cash to go out.

“We’re hoping it loosens things up a bit,” Pitts said. “To say it’s been a tough year isn’t the half of it. We all need a break. We’ve had to let people go and it hurt. This, of course, isn’t the cure. We’re all waiting for this crisis to be over, but maybe this is a little light, a little bump.”

Thadd Ernstmeyer, who runs a family plumbing business in Reedsburg, Wisconsin, grosses about $150,000 a year, with overheads about one third of that, and is taxed roughly 25%. His stimulus check would go toward his tax bill, Ernstmeyer said.

“It’s going straight back to the government.”

(Reporting by Tim Reid in Washington and Rich McKay in Atlanta; Editing by Donna Bryson and Grant McCool)

Coronavirus crisis in Latin America made worse by poverty, inequality, U.N. agency says

By Fabian Cambero

SANTIAGO (Reuters) – Latin America and the Caribbean countries in the throes of the coronavirus crisis will only see their problems made worse by festering inequality, poverty and an ailing social safety net, a United Nations agency said on Thursday.

The Economic Commission for Latin America and the Caribbean (ECLAC) said social unrest was on the rise across the region, a sign that immediate action was necessary to aid hard-hit countries struggling long before the pandemic hit.

“The effects of the coronavirus pandemic have spread to all areas of human life, altering the way we interact, paralyzing economies and generating profound changes in societies,” the report said.

Persistently high levels of inequality, the agency said, combined with a sprawling informal labor market that leaves workers without protection and a lack of effective health care coverage have made those problems worse.

Urban slums on the fringes of many of the region’s cities often lack access to basic services, mean many citizens found themselves unable to access food, water and healthcare necessary to confront the crisis.

Poverty meanwhile, has crept upward, while advances in reducing inequality have stagnated, exacerbating trends seen in the five years prior to the crisis.

During that period, Latin America and Caribbean economies grew an average of just 0.3% per year overall, while extreme poverty increased from 7.8% to 11.3% of the population and poverty, from 27.8% to 30.5%.

The report also said the prolonged closure of schools in the region could constitute a “generational catastrophe” that will only deepen inequality.

The pandemic has also brought a rise in mortality that could push down life expectancy in the region depending how long the crisis endures, the agency said.

There have been at least 21,699,000 reported infections and 687,000 reported deaths caused by the novel coronavirus in Latin America and the Caribbean so far.

​ Of every 100 infections last reported around the world, about 24 were reported from countries in Latin America and the Caribbean.

(Reporting by Fabian Cambero; Writing by Dave Sherwood; Editing by Angus MacSwan)

Power restored to most in Texas after ‘tragic few days’

By Adrees Latif

GALVESTON, Texas (Reuters) – Hundreds of thousands of homes in Texas are coping without heat for a fourth day on Thursday after utilities made some progress restoring power, as the state’s leaders came under mounting criticism for their response to the winter storm.

The crisis facing the country’s second-largest state looked set to continue, with millions of people still without access to water, many struggling to find food, and freezing temperatures expected to last through Saturday.

Judge Lina Hidalgo, the top elected official in Harris County, which encompasses Houston, said the number of homes without power in her county had fallen to 33,000 from 1.4 million a few nights ago.

“It’s definitely a big positive that the power is back on for most of the residents,” Hidalgo said in an interview. “It’s been a miserable few days, a really tragic few days.”

Hidalgo warned that a “hard freeze” Thursday night could cause setbacks and encouraged donations to food banks with some residents struggling to secure food and water. She noted reports of senior centers and other vulnerable communities lacking basic supplies.

At present some 447,000 Texas households were without power, down from around 2.7 million on Wednesday, according to poweroutage.com, a website that tracks outages.

The Electric Reliability Council of Texas (ERCOT), a cooperative responsible for 90% of the state’s electricity, said on Thursday it made “significant progress” in restoring power. It did not provide detailed figures.

Angry residents have trained much of their ire on ERCOT, which critics say did not heed warnings after a cold-weather meltdown in 2011 to ensure that Texas’ energy infrastructure, which relies primarily on natural gas, was winterized.

Critics have also raised questions about the leadership of Texas Governor Greg Abbott, who has called for an investigation of ERCOT. U.S. Senator Ted Cruz too came under fire for flying to the Mexican resort city of Cancun with his family, despite the storm’s fallout. The Republican lawmaker cut his trip short after his travels were reported, saying he would return to Texas and “get to the bottom of what happened” in his state.

Gary Southern, a 68-year-old real estate broker from Mineral Wells, Texas, said his power was restored on Wednesday afternoon, enabling him to have his first solid night of sleep since he lost electricity in the early hours of Monday.

“It was one of the worst things we’ve ever had to go through,” the lifelong Texan said, adding that he was frustrated at being told there would be rolling blackouts, only to go days without power at all. “I know a lot of people in our community still don’t have it (power) and are frustrated.”

The lack of power has cut off water supplies for millions, further strained hospitals’ ability to treat patients amid a pandemic, and isolated vulnerable communities with frozen roads still impassable in parts of the state.

As of Thursday morning, 154 of the 254 counties in Texas have reported disruptions in water service, affecting 13.2 million people, according to the Texas Commission on Environmental Quality. Many of those affected have been told they need to boil their water.

The Federal Emergency Management Agency (FEMA) said historically low temperatures were hindering efforts to inoculate people against COVID-19, with more than 2,000 vaccine sites in areas with power outages. In addition to aiding Texas, FEMA said on Thursday it would provide assistance to the neighboring state of Oklahoma due to the weather’s impact on its power grid.

Nearly two dozen deaths have been attributed to the cold snap. Officials say they suspect many more people have died – but their bodies have not been discovered yet.

In Galveston on the Gulf Coast of Texas, a pop-up shelter with heat but no running water had allowed about three dozen people to huddle overnight before they were ushered back out into the cold on Thursday morning to let cleaning crews get it ready to do it all over again on Thursday night.

“When you go to the bathroom, grab a bucket of water to clear the toilet – we’re going old school!” Cesar Garcia, director of Galveston’s Parks and Recreation Department, called out as he oversaw scrubbing of the shelter set up in the McGuire-Dent Recreation Center.

Garcia said he was bracing for a potentially bigger crowd tonight, perhaps closer to the 100 who sought shelter on Monday night, sleeping on bleachers or a gymnasium floor with blankets and whatever they brought with them from home.

“Tonight being the coldest night, we don’t know what to expect,” Garcia said.

While the icy conditions should gradually improve, record low temperatures will likely persist in the South Central region of the United States through Saturday, according to the National Weather Service said, which said the storm was moving northeastward, dropping snow on a swath of states in its path.

(Reporting by Brad Brooks in Lubbock, Texas; Barbara Goldberg in Maplewood, New Jersey; Nathan Layne in Wilton, Connecticut; and Jonathan Allen in New York; Editing by Leslie Adler and Jonathan Oatis)

China says 10 workers trapped in gold mine are searching for others

By Emily Chow

QIXIA, China (Reuters) – The 10 known survivors trapped since a deadly Jan. 10 gold mine explosion in northern China have been using laser pointers and loudspeakers to try to find their missing colleagues, state media reported on Friday.

The rescue operation, which has been able to get food and medicines to the miners, was expected to take at least another two weeks, authorities have said.

White bottles of food and water sent down to the trapped workers had a note stuck on them saying, “We are all waiting for you, keep going!”, photos shared by propaganda department officials with Reuters on Friday showed.

The food items sent to the workers include millet porridge, quail eggs, pickles and sausages and medical supplies included disinfectant, masks and cotton socks.

“The physical condition, psychological condition and living environment of 10 miners in the middle section of the mine are good,” the People’s Daily, the official newspaper of China’s ruling Communist Party, reported on Friday.

“The miners continued to search for other trapped persons through laser pointer projection and loudspeaker shouting,” it said.

A total of 22 workers were trapped in the Hushan mine by the Jan 10 blast in Qixia, a major gold-producing region under the administration of Yantai in coastal Shandong province.

One has died and 11 were not in contact with the rescue teams, according to a Xinhua radio report on Thursday.

At least 15 days may be needed to clear the “severe blockages” as rescuers continued to drill shafts to reach the 10 men, officials said on Thursday.

At the site, security was tight on Friday and Reuters journalists were not permitted to get close to the rescue operation.

Workers in orange high visibility clothing could be seen operating heavy machinery. At the entrance to the site, a medical tent had been set up to administer COVID tests for rescue workers.

About 570 people are involved in the rescue, the newspaper said.

China’s mines are among the world’s deadliest. It has recorded 573 mine-related deaths in 2020, according to the National Mine Safety Administration.

(Reporting by Emily Chow in Qixia and Beijing newsroom; Writing by Shivani Singh; Editing by Tony Munroe and Philippa Fletcher)

Americans give to charity like never before amid pandemic

By Jonnelle Marte

(Reuters) – Hundreds of cars line up before dawn on weekly distribution days for the Forgotten Harvest’s partner food pantries in the metro Detroit area, where visits are up by 50% this year.

The need has grown as the coronavirus pandemic has shut down offices and other businesses. So has the response.

Monetary donations to the food bank are on pace to top last year’s contributions, helping to fund a larger storage space and new mobile distribution sites required to distribute food safely during the crisis.

“The only good thing about this pandemic is that it’s made people care a little bit more about their neighbors,” said Christopher Ivey, director of marketing for Forgotten Harvest, one of the largest food banks in Michigan.

The economic crisis set off by the pandemic has widened the chasm between the “haves” and the “have-nots” in the United States in new ways. People who can work from home, often in higher-income jobs, are comfortable.

But over 20 million Americans rely on unemployment benefits, and hunger and poverty are rising.

The expanded rift has been accompanied by an outpouring of donations to local food banks, crowdfunding campaigns and other aid to financially devastated Americans.

Amazon shareholder Mackenzie Scott’s $4 billion in charitable contributions, announced earlier this month, may be the biggest. But plenty of Americans are also chipping in, donating $10 or $20, some for the first time ever.

Many non-profits have suffered this year as the pandemic shuttered galas and fundraisers. But donations to some small and mid-sized charitable organizations were up 7.6% in the first nine months of 2020 over 2019, according to a recent analysis by the Association of Fundraising Professionals, which tracks nearly 2,500 groups. The number of donors is up by 11.7%.

The trend seems to have continued in December, typically the most active time for charitable giving in the United States, early data show. Charities received $2.47 billion in donations on Dec. 1, the Tuesday after Thanksgiving known as GivingTuesday, up 25% from 2019.

“People are giving like we’ve never seen before,” said Woodrow Rosenbaum, chief data officer for GivingTuesday.

Much of that is coming in small dollar amounts, suggesting that people across the income spectrum are stepping up their contributions, Rosenbaum said.

About 70% of the donations made to campaigns on GoFundMe were under $50 this year, up from 40% in 2019, according to a spokesperson for the fundraising website.

“What we have now is much more collective action,” said Rosenbaum.

America’s Food Fund, started this year, raised over $44 million on GoFundMe, the largest campaign ever on the fundraising website. Long-time programs like the United States Post Office’s Operation Santa, which matches donors with needy families who send letters to a special North Pole address, report unprecedented support.

Jonathan Cummings, executive director for Revive South Jersey, a ministry started in 2012 to tutor English, mentor and provide housing help in local communities, says a “groundswell” of volunteers signed up to deliver food every two weeks after the organization realized that many of the families it supports were struggling to afford groceries.

Giving Tuesday donations tracked by Share Omaha, a Nebraska organization that supports local nonprofits, nearly doubled this year from 2019, to over $3 million, with a third coming from first-time donors. When the group asked for volunteers earlier in the year for packing meals for the homeless and other tasks, it got 700 applications, up from the 200 monthly average.

“Even if people are out of work or furloughed, they want to give back to the community,” said Marjorie Maas, executive director for the organization.

Janette McCabe was one of the hundreds of people waiting in cars before sunrise on the Monday before Christmas in a parking lot in Warren, Michigan, for a Forgotten Harvest food bank distribution.

McCabe and her husband lost their jobs recently and have been relying on food stamps. She has been coming to the food bank distribution for about a month and a half.

“The volunteers are fantastic,” McCabe said. “I don’t know what we would do if we didn’t have them.”

(Reporting by Jonnelle Marte; Additional reporting by Emily Elconin; Editing by Heather Timmons and Dan Grebler)

Stranded truckers fume as they wait to leave UK after COVID blockade

By Peter Nicholls and Gerry Mey

DOVER, England (Reuters) – Furious truck drivers stranded at the English port of Dover scuffled with police as Britain sought to get cross-Channel traffic moving after a partial blockade by France to contain a highly infectious coronavirus variant.

Paris and London agreed late on Tuesday that drivers carrying a negative test result could board ferries for Calais from Wednesday after much of the world shut its borders to Britain to contain the new mutated variant.

The British government has drafted in the military to help but there was confusion amongst drivers about how to get tests, and warnings it would take time to clear the backlog of trucks, hammering Britain’s most important trade route for food just days before it leaves the European Union’s orbit.

“Testing has begun as we look to get traffic moving again between the UK and France,” British transport minister Grant Shapps said on Twitter. “However, French border police only acting on agreement from this morning and severe delays continue.”

Huge queues of trucks have been stacked on a motorway towards the Eurotunnel Channel Tunnel and on roads to Dover in the southeast county of Kent, while others have been parked up at the former nearby airport at Manston.

With no sign of traffic to the European mainland resuming and confusion over how to get a coronavirus test, tempers were beginning to flare among drivers, many from Eastern Europe who do not speak English and are angry that they will not be able to get home to their families before Christmas.

Police said there had been disturbances in Dover and Manston “involving individuals hoping to cross the Channel” and one arrest had been made.

“This is not how it should work. We have no information, the people need to be fetching information,” Mekki Coskun from Dortmund in Germany, told Reuters.

Poland’s Prime Minister Mateusz Morawiecki said he had been in touch with Britain’s Boris Johnson and French President Emmanuel Macron about the jam.

“This can be done differently. This whole process could’ve been better organized,” he said.

The Road Haulage Association, which estimated there were up to 10,000 trucks being held up in Kent, said it was chaotic.

“The border is still closed, the testing regime isn’t happening yet, you’ve got truckers very angry and we’re starting to see a breakdown in law and order in a small way among very frustrated guys who want to get back by Christmas,” Rod McKenzie, managing director of policy for the RHA, said.

Normally between 7,500-8,500 trucks travel via the port every day but volumes have reached more than 10,000 recently.

Getlink, the operator of the Channel Tunnel, said just 45 trucks had reached France between midnight and 1100 GMT.

FURTHER BREXIT DISRUPTION

Some of the extra traffic was a result of Christmas demand, but many were in the country to deliver goods to companies who are stockpiling parts before Britain finally leaves the EU on Dec. 31, a move that is expected to cause further disruption in January when a full customs border comes into force.

The British Retail Consortium, an industry lobby group, warned that until the backlog of trucks was cleared and supply chains returned to normal, there could be issues with the availability of some fresh goods.

Logistics firms have also said that many European drivers had already refused to come to Britain in the new year when they would have to carry customs paperwork, and the need to secure a coronavirus test will further compound the situation, pushing up freight prices.

Drivers will first take a rapid lateral flow test. Anyone who records a positive result will take a more comprehensive PCR test, which takes longer to secure a result, and anyone testing positive again will be given a hotel room to isolate.

Many of the mostly European drivers, many stranded with their trucks and without access to hot food or bathroom facilities, believe they are pawns in a political standoff between Britain and the EU as trade talks reach a climax.

“We don’t have food to eat, we don’t have drink, we don’t have anything, nobody … cares about us,” said Stella Vradzheva a driver from Sterlcha in Bulgaria.

(Additional reporting by James Davey, Joanna Plucinska, and Yiming Woo; Writing by Kate Holton and Michael Holden; Editing by Guy Faulconbridge and Alison Williams)

Britain tells shoppers food is plentiful but supermarkets fret about next week

By James Davey

LONDON (Reuters) – Britain said there was plenty of food in the shops on Tuesday but industry groups repeated warnings of shortages of some fresh produce from next week unless freight routes to mainland Europe are swiftly restored.

Interior minister Priti Patel said Britons should not be concerned despite Tesco and Sainsbury’s, Britain’s two biggest supermarket groups, raising the alarm on Monday that gaps could start to appear on fruit and vegetable shelves within days.

Freight from France is being disrupted as part of a wider suspension of travel links with Britain to try to curb a new faster-spreading strain of COVID-19.

“I don’t think anybody should be worried – there is plenty of food in our shops,” Patel told LBC radio.

British supermarkets are facing record Christmas demand due to COVID-19 restrictions on the hospitality industry and on travel and there are fears of panic buying.

“UK shoppers need have no concerns about food supplies over Christmas, but impacts on local on-shelf availability of certain fresh foods look likely from next week unless we can swiftly restore this link,” said Ian Wright, CEO of the Food and Drink Federation, which represents over 300 food and drink businesses.

The British Retail Consortium (BRC), which represents more than 170 major retailers including the big supermarkets, is also concerned about supplies shortly after Christmas, highlighting possible shortages of salad, vegetables and fruit, including raspberries and strawberries.

“The borders really need to be running pretty much freely from tomorrow to assure us that there won’t be any disruption,” Andrew Opie, the BRC’s director of food and sustainability, told BBC radio.

He noted that 90% of the lettuces consumed by Britons and about 70% of soft fruit comes through the Channel ports at this time of year.

TESTING

The BBC cited France’s Europe Minister Clément Beaune as saying that Britain and France would announce a deal to restart freight by Wednesday. One option is to roll out mass testing for truck drivers.

“Whatever is agreed, we need to be careful it doesn’t add too much friction to the supply chain which in itself causes disruption by causing delays to the drivers whilst they’re being tested,” said Opie.

Though large queues again snaked around supermarkets across Britain on Tuesday and some shelves were stripped bare, food retailers said they had not seen any major changes in customer buying behavior.

Opie said supermarkets had expected and planned for Christmas queues.

“You need to remember these are the busiest days for shopping…and remember all the stores are still operating all of their COVID protocols, which means you can’t get as many people into a supermarket as you would do normally,” Opie said.

“We’re not seeing the sort of excessive buying in any kind of volumes that we saw around that period in sort of mid-March,” he added.

(Reporting by James Davey; Editing by Guy Faulconbridge, Alexander Smith and Louise Heavens)

United Nations and Ethiopia reach aid pact for war-hit Tigray

ADDIS ABABA/NAIROBI (Reuters) – Ethiopia and the United Nations agreed on Wednesday to channel desperately-needed humanitarian aid to a northern region where a month of war has killed, wounded and uprooted thousands.

The pact, announced by U.N. officials, gives aid workers access to government-controlled areas of Tigray, where federal troops have been battling the Tigray People’s Liberation Front (TPLF) and captured the regional capital.

The war is believed to have killed thousands, sent 45,000 refugees into Sudan, displaced many more within Tigray and worsened suffering in a region where 600,000 people already depended on food aid even before the flare-up from Nov. 4.

As hundreds of foreign workers were forced to leave, aid agencies had appealed for urgent safe access.

Food is running out for 96,000 Eritrean refugees in Tigray.. And medics in the local capital Mekelle were short of painkillers, gloves and body bags, the International Committee of the Red Cross (ICRC) said at the weekend.

“The U.N. and the Federal Government of Ethiopia have signed an agreement to ensure that humanitarians will have unimpeded, sustained and secure access … to areas under the control of the Federal Government in the Tigray Region,” U.N. humanitarian coordination agency OCHA said in a statement to Reuters.

The government has not commented on the agreement.

TELECOMS PARTLY RESTORED

After phone and internet connections were largely shut down when the war began, telecoms in half a dozen towns in Tigray were partly restored, Ethio Telecom said on Wednesday.

The state-run company said it was using alternative power sources and repairing network damage. Reconnected towns included Dansha, Humera and Mai Kadra, all controlled by the military.

Prime Minister Abiy Ahmed declared victory after Mekelle’s fall over the weekend, as TPLF leaders fled for the hills.

On Wednesday, he shifted focus to next year’s parliamentary election, meeting with political parties and election officials about the mid-2021 vote, his office said.

His government postponed it this year due to COVID-19, but Tigray went ahead anyway and re-elected the TPLF, a guerrilla movement-turned-political party.

That defiance was one reason for the federal government’s military offensive against TPLF leaders, a conflict that may jeopardize political reforms since Abiy took office in 2018.

Abiy, Africa’s youngest leader at 44 who won the 2019 Nobel Peace Prize for a pact with Eritrea, was pictured in battle fatigues meeting military officers in photos tweeted by his official photographer on Wednesday.

He took Ethiopia’s top job after nearly three decades of a TPLF-led national government, which had become increasingly repressive, jailing opponents and banning opposition parties.

Abiy removed Tigrayans from government and security posts, saying they were over-represented for an ethnic group accounting for just 6% of Ethiopia’s population. The military went in when a federal army base was ambushed in Tigray.

ADDIS ABABA BLAST

The TPLF casts their former military comrade and partner in government as bent on dominating them to increase his personal grip over the vast nation of 115 million people, which is split into 10 regions run by different ethnic groups.

Abiy, who hails from the larger Oromo and Amharic ethic groups, calls the Tigrayan leaders criminals opposing national unity and plotting attacks in Addis Ababa and elsewhere.

Federal police blamed the TPLF, without offering proof, for a small blast in the capital on Wednesday that injured an officer lightly. There was no immediate response from the TPLF.

There has been little verifiable information from Mekelle, the highland city of 500,000 people, since it fell on Saturday.

TPLF leaders say they are continuing to fight from surrounding mountainous areas.

“Wars are not like taps that you turn on and then turn off. This is going to be a very long, drawn-out process,” Horn of Africa expert Rashid Abdi told an online forum.

(Reporting by Addis Ababa newsroom, David Lewis in Nairobi, Maggie Fick in Istanbul; Writing by Andrew Cawthorne and Tim Cocks; Editing by Maggie Fick and Alison Williams)

U.S. manufacturing near two-year high; road ahead difficult

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. manufacturing activity accelerated more than expected in October, with new orders jumping to their highest level in nearly 17 years amid a shift in spending toward goods like motor vehicles and food as the COVID-19 pandemic drags on.

The survey on Monday from the Institute for Supply Management (ISM) was the last piece of major economic data before Tuesday’s bitterly contested presidential election. But the outlook for manufacturing is challenging.

While the coronavirus crisis has boosted demand for goods complementing the pandemic life, a resurgence in new cases across the country could lead to authorities re-imposing restrictions to slow the spread of the respiratory illness as winter approaches, which could crimp activity. Government money for businesses and workers hit by the pandemic, which boosted economic growth in the third quarter, has dried up.

“Manufacturing rebounded strongly with fewer restrictions on economic activity and stimulus efforts, but the path forward will be more difficult as the economy continues to cope with the pandemic,” said Gus Faucher, chief economist at PNC Financial in Pittsburgh, Pennsylvania.

The ISM said its index of national factory activity increased to a reading of 59.3 last month. That was the highest since November 2018 and followed a reading of 55.4 in September.

A reading above 50 indicates expansion in manufacturing, which accounts for 11.3% of the U.S. economy. Economists polled by Reuters had forecast the index rising to 55.8 in October.

The jump in activity, however, likely overstates the health of the manufacturing sector. A report from the Federal Reserve last month showed output at factories dropping 0.3% in September and remaining 6.4% below its pre-pandemic level.

Manufacturers and suppliers said last month they “continue to operate in reconfigured factories” and with every month were “becoming more proficient at expanding output.”

Though sentiment among manufacturers remained upbeat, there were two positive comments for every cautious comment, a slight decrease compared to September.

The outcome of Tuesday’s vote is expected to lead to a brief period of uncertainty. President Donald Trump is trailing former Vice President and Democratic Party candidate, Joe Biden, in national opinion polls.

Stocks on Wall Street were trading higher following their steepest weekly loss. The dollar was steady against a basket of currencies. U.S. Treasury prices rose.

NEW ORDERS SURGE

Fifteen industries, including apparel, food, furniture and transportation equipment reported growth last month. Textile mills and printing reported a contraction.

Manufacturing’s continued recovery will likely keep the economy floating, with growth expected to slow sharply in the fourth quarter after a historic 33.1% annualized rate of expansion in the July-September period.

Growth last quarter, which followed a record 31.4% pace of contraction in the April-June quarter, was juiced up by more than $3 trillion in government pandemic relief. There is no deal in sight for another round of fiscal stimulus.

A separate report from the Commerce Department on Monday showed construction spending rose a moderate 0.3% in September, slowing after a 0.8% increase in August.

The coronavirus crisis has pulled spending away from services towards goods that complement the changed life-style. Spending on goods has surpassed its pre-pandemic level.

Makers of chemical products reported “business continues to be robust.” Food manufacturers said they had “increased production due to stores stocking up for the second wave of COVID-19.” Manufacturers of computer and electronic products said the coronavirus continued “to have an effect on supplier support and operations, more from a decreased labor perspective rather than unavailable material.”

The ISM’s forward-looking new orders sub-index surged to a reading of 67.9 last month, the highest reading since January 2004, from 60.2 in September. Customers’ inventories remained too low for the 49th straight month and order backlogs steadily increased, which bodes well for future production.

“On the upside, social distancing efforts, which have been a factor in consumers pivoting spending away from services and toward goods, is showing no signs of abating, especially as virus case counts are surging again,” said Sarah House, a senior economist at Wells Fargo Securities in Charlotte, North Carolina.

“This shift to goods spending should continue to underpin orders, but is unlikely to go on with the same muster as it did earlier when an initial flurry of spending on manufactured goods aimed at setting up at-home offices and remote classrooms boosted goods spending.”

With orders booming, manufacturing employment expanded for the first time since July 2019. The ISM’s manufacturing employment gauge rose to a reading of 53.2 from 49.6 in September. That likely supported overall job growth in October.

According to a Reuters survey of economists, nonfarm payrolls probably increased by 700,000 jobs last month after rising 661,000 in September. Employment growth has cooled from a record 4.781 million in June. About 11.5 million of the 22.2 million jobs lost during the pandemic have been recovered.

The government is scheduled to publish October’s employment report on Friday.

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