Find $75 billion to head off next pandemic, top panel tells G20

By Gavin Jones

VENICE (Reuters) – COVID-19 is probably only a forerunner of increasingly dangerous pandemics in the future and governments need to find $75 billion over the next 5 years to prepare for them, a panel of experts told finance ministers of the Group of 20 rich countries on Friday.

In a report to the G20 meeting in Venice the panel said the $15 bln per year of investments it recommended doubled current spending levels but was “negligible” compared with the costs of another major outbreak of a new contagious illness.

“The economic case for these additional investments is overwhelming,” said former U.S. Treasury Secretary Lawrence Summers, who co-chaired the 23-member panel along with World Trade Organization Chief Ngozi Okonjo-Iweala and Singapore’s former finance minister, Tharman Shanmugaratnam.

Summers told Reuters in an interview he was “guardedly optimistic” its recommendations would be implemented and said “we won’t be reluctant to speak out” if they are not.

“Spending tens of billions of dollars could save tens of trillions,” he said.

To plug “major gaps” in pandemic preparedness, the panel identified four main areas for action: infectious disease surveillance, resilience of national health systems, supply and delivery of vaccines and other medicines, and global governance.

The report, titled “Global deal for a pandemic age”, called for the creation of a $10 bln annual Global Health Threats Fund, plus $5 bln to strengthen the World Health Organization and create dedicated pandemic facilities at the World Bank and multilateral development banks.

In addition, low and middle-income income countries would need to add about 1% of gross domestic product to public spending on health over the next five years, it said.

“Achieving safety from pandemics will require a basic shift in thinking about international cooperation,” said Shanmugaratnam. “It is the ultimate case for both national self-interest and international solidarity at the same time.”

The panel was set up in January and includes prominent names such as former European Central Bank chief Jean-Claude Trichet, Ana Botin, executive chairman of the Santander group, and Guntram Wolff, head of the Bruegel think-tank.

The G20, chaired this year by Italy, will consider its recommendations in the lead up to a joint finance and health ministers’ meeting in October.

Okonjo-Iweala told Reuters the finance ministers had been “generally very positive” about the report and she was confident it would be taken forward.

(Editing by Giles Elgood)

Fed says shortages of materials, hiring problems holding back recovery

WASHINGTON (Reuters) -Shortages of materials and “difficulties in hiring” are holding back the U.S. economic recovery from the coronavirus pandemic and have driven a “transitory” bout of inflation, the Federal Reserve said on Friday.

“Progress on vaccinations has led to a reopening of the economy and strong economic growth,” the U.S. central bank said in its semiannual report to Congress on the state of the economy. However, “shortages of material inputs and difficulties in hiring have held down activity in a number of industries.”

The report will be the subject of hearings in Congress next week, including testimony from Fed Chair Jerome Powell about the outlook for the economy, inflation, and the transition of monetary policy as the impact of the pandemic recedes.

The report released by the Fed on Friday is largely backward-looking, but it documents the central bank’s view that the recovery remains on track as firms and families navigate a complicated economic reopening.

Prices have risen faster than expected, for example, and while the supply bottlenecks and other factors driving the price hikes are expected to ease over time, “upside risks to the inflation outlook in the near term have increased,” the Fed said.

Hiring has also slowed for an unexpected reason: Companies want to bring on more employees, but not enough workers are ready to take those jobs as they cope with ongoing health and family concerns and can rely on continued federal unemployment benefits to help pay the bills.

“Many of these factors should have a diminishing effect on participation in the coming months,” the Fed said, though the speed and strength of that labor market recovery also remains uncertain.

The central bank, however, said available data suggest “a further robust increase in demand” occurred from April through June.

“Against a backdrop of elevated household savings, accommodative financial conditions, ongoing fiscal support, and the reopening of the economy, the strength in household spending has persisted,” while the financial system remains “resilient,” the Fed said.

(Reporting by Howard SchneiderEditing by Paul Simao)

U.S. jobless claims unexpectedly rise, data remains volatile

WASHINGTON (Reuters) – The number of Americans filing new claims for unemployment benefits rose unexpectedly last week, an indication that the labor market recovery from the COVID-19 pandemic continues to be choppy.

Businesses have reopened at a rapid clip, boosted by a rollback in restrictions now that more than 155 million Americans have been fully vaccinated against the coronavirus. Still, the job market rebound has been anything but steady despite recent employment gains.

Initial claims for state unemployment benefits rose 2,000 to a seasonally adjusted 373,000 for the week ended July 3, the Labor Department said on Thursday. Economists polled by Reuters had forecast 350,000 applications for the latest week.

Lack of affordable child care and fears of contracting the coronavirus have been cited for keeping workers, mostly women, at home. There were a record 9.2 million job openings at the end of May and 9.5 million people were officially unemployed in June.

The data comes on the heels of an encouraging monthly jobs report from the Labor Department last Friday, which showed U.S. companies hired the most workers in 10 months in June.

Claims have dropped from a record 6.149 million in early April 2020 but remain above the 200,000-250,000 range that is seen as consistent with a healthy labor market.

The four-week moving average of claims, considered a better measure of labor market trends as it smooths out week-to-week volatility, fell 250 to 394,750.

The claims data may remain volatile in the coming weeks as 25 states with mostly Republican governors pull out of federal government-funded unemployment programs. These included a $300 weekly check, which businesses complained were encouraging the jobless to stay at home.

The early termination began on June 5 and will run through July 31, when Louisiana, the only one of those states with a Democratic governor, ends the weekly check.

For the rest of the country, these benefits will lapse on Sept. 6.

The claims report also showed the number of people continuing to receive benefits after an initial week of aid declined 145,000 to 3.339 million during the week ended June 26. There were 14.2 million people receiving benefits under all programs in late June, a fall from 14.7 million earlier in the month.

(Reporting by Lindsay Dunsmuir; Editing by Andrea Ricci)

U.S. industry groups, lawmakers press White House to lift travel restrictions

By David Shepardson

WASHINGTON (Reuters) – A coalition of 24 industry organizations on Wednesday urged the White House to lift restrictions that bar much of the world from traveling to the United States but the Biden administration showed no signs of taking immediate action.

The groups led by U.S. Travel Association and representing airlines, casinos, hotels, airports, airplane manufacturers and others, urged the administration to ease entry restrictions by July 15 that were imposed last year during the pandemic, and to quickly lift entry restrictions on UK travelers.

“We have the knowledge and the tools we need to restart international travel safely, and it is past time that we use them,” U.S. Travel Chief Executive Roger Dow said.

Separately, 75 members of the U.S. House of Representatives called on Biden to reopen the U.S. border with Canada to non-essential travelers.

The lawmakers in a letter cited projections that if the restrictions are not lifted, the United States could “lose 1.1 million jobs and an additional $175 billion by the end of this year.” The White House did not immediately comment.

The Centers for Disease Control and Prevention (CDC) has raised concerns about the Delta variant of COVID-19 in U.S. government meetings, sources said. Industry and U.S. officials told Reuters they do not expect the administration to lift restrictions soon.

The CDC wants airlines to implement international passenger contact tracing as part of any lifting of restrictions, sources told Reuters.

The administration has been holding separate working group calls with Mexico, Canada, the United Kingdom and the European Union typically every two weeks to discuss how to unwind the restrictions.

Airlines and others have pressed the administration to lift restrictions covering most non-U.S. citizens who have recently been in Britain, the 26 Schengen nations in Europe without border controls, Ireland, China, India, South Africa, Iran and Brazil.

The 75 lawmakers called for lifting restrictions that bar most UK travelers and to develop “a risk-based, data-driven roadmap to ease inbound entry restrictions.”

Some in congress have also called on the administration to lift requirements that travelers wear masks in airports, subway stations and on airplanes and trains but is not currently considering lifting those requirements, officials told Reuters.

The Transportation Security Administration in April extended the face mask requirement in transit through Sept. 13.

Last month, the administration extended restrictions barring non-essential travel at Mexican and Canada land borders until July 21.

(Reporting by David Shepardson; Editing by Chris Reese and David Gregorio)

Russia reports record 737 COVID-19 deaths, changes entry rules

MOSCOW (Reuters) – Russia on Tuesday reported a record 737 deaths from coronavirus-linked causes in the past 24 hours as the country stepped up efforts to vaccinate its population of more than 144 million people.

A new surge in COVID-19 cases in June was blamed on the new, highly infectious, Delta variant. Moscow responded with mandatory vaccination for a wide group of citizens, a model adopted by other regions, sparking wide public discontent ahead of September parliamentary elections.

Health minister Mikhail Murashko said up to 850,000 people were being vaccinated against COVID-19 in Russia every day, and that building immunity across the population was key, the TASS new agency reported.

Murashko said foreign producers of COVID-19 vaccines had applied to register in Russia, without disclosing their names.

Russia has so far offered its own vaccines against the novel coronavirus, launching a mass vaccination campaign in late 2020.

From Wednesday, Russia will change the rules for citizens returning from abroad, scrapping the obligation to undergo two PCR tests upon arrival, a decree published on Tuesday and signed by Anna Popova, head of the consumer health watchdog, showed.

From July 7, all those vaccinated or officially recovered from COVID-19 do not need to take a PCR test. Those who do not fall into these two categories when they enter Russia, will need to self-isolate before receiving results of one PCR test.

In the past day, Russia has confirmed 23,378 new COVID-19 cases, including 5,498 in Moscow, taking the official national tally since the pandemic began to 5,658,672.

The Kremlin said it would not support the idea of closing borders between Russia’s regions to stop the virus from spreading, although some regions may take swift and harsh measures to withstand the pandemic.

The recent surge in COVID-19 cases, along with the need to raise interest rates to combat inflation, are seen challenging economic growth in Russia this year.

(Reporting by Andrey Ostroukh and Gleb Stolyarov; additional reporting by Olzhas Auyezov; Editing by Catherine Evans, William Maclean)

Factbox: Latest on the worldwide spread of the coronavirus

(Reuters) – The Euro 2020 soccer tournament was blamed for a surge in cases as fans have flocked to stadiums, bars and spectator zones across Europe to watch the action while the pandemic still raged.

DEATHS AND INFECTIONS

EUROPE

* Europe’s drug regulator said the vaccines approved in the European Union offered protection against all coronavirus variants, including Delta, but called for active monitoring by vaccine manufacturers to stay alert.

* Prime Minister Boris Johnson said he was confident Britons fully vaccinated against COVID-19 would be able to travel abroad this year.

* A 10-week decline in new infections across Europe has come to an end and a new wave of infections is inevitable if citizens and lawmakers do not remain disciplined, the head of WHO in Europe, Hans Kluge, told a news briefing.

ASIA-PACIFIC

* President Joko Widodo said that Indonesia will impose emergency measures until July 20 to contain an exponential spike in cases that has strained the medical system.

* Japan is considering an extension of two weeks to a month for coronavirus prevention measures in Tokyo and other areas, Japanese media said.

AMERICAS

* Bolivia’s government is looking to stabilize the country’s economy, which last year plunged the most in over half a century, with a mix of fiscal spending, vaccines and gold.

* Dominican health authorities will on Thursday begin distributing a third dose of vaccine in an effort to protect against more contagious new variants.

MIDDLE EAST AND AFRICA

* The United States will begin shipping the first batch of vaccines it has donated to Africa from this weekend, a special envoy of the African Union said, as the continent sees a surge in cases fueled by variants.

* The South African Medical Association threatened to take the government to court because scores of new junior doctors cannot find work placements despite staff shortages during the pandemic.

* Police in Uganda have arrested two nurses and were hunting for a man who had posed as a doctor to sell and administer fake vaccines to hundreds of people, authorities said, amid a rising second wave of infections.

MEDICAL DEVELOPMENTS

* Indian drugmaker Zydus Cadila said it has applied for emergency use approval of its three-dose vaccine that showed efficacy of 66.6% in an interim study and could become the second home-grown shot if regulators consent.

* CureVac said its COVID-19 vaccine was 48% effective in the final analysis of its pivotal mass trial, only marginally better than the 47% reported after an initial read-out two weeks ago.

ECONOMIC IMPACT

* Global stock markets rose on strong European and U.S. shares on Thursday, with stocks brushing off a rapid re-acceleration in coronavirus cases and oil and the dollar extending their first-half rallies.

* Mexico’s factories deteriorated for a 16th straight month in June amid the ongoing COVID-19 crisis and local restrictions, though the pace of contraction was the slowest since the effects of the pandemic first hit Mexico, a survey showed.

* Turkey’s pandemic-era ban on layoffs and a government wage support system, both adopted in early 2020, expired as most remaining restrictions were also lifted, setting the stage for a rise in unemployment.

* The IMF’s executive board approved the second review of Jordan’s four-year reform program and commended it for meeting its fiscal targets despite the fallout from the coronavirus, the finance ministry said.

(Compiled by Federico Maccioni, Amy Caren Daniel and Jagoda Darlak; Edited William Maclean)

Global shares fall on pandemic fears ahead of jobs report

By Carolyn Cohn and Elizabeth Dilts Marshall

NEW YORK (Reuters) -Global shares retreated from recent highs on Wednesday, as Asian markets grew jittery about a resurgence of COVID-19 cases and Western markets awaited Friday’s U.S. jobs report and what it might mean for monetary policy.

Asset markets have been buoyed over the past year by trillions of dollars of monetary and fiscal stimulus by central banks and governments around the world in response to the pandemic.

The success of vaccination rollouts in some places has fueled an economic recovery, and consumer confidence in June surged to 21-year-highs in Europe and 1-1/2-year-highs in the United States.

But fears over a sudden rise in inflation and the highly contagious Delta variant combined with investors taking gains as the first half of the year ended on Wednesday.

“The search for yield is a very powerful force. It doesn’t have (a) narrative right now to stop,” said Sebastien Galy, senior macro strategist at Nordea Asset Management.

MSCI’s all-country world index, which tracks shares across 50 countries, shed 0.28%. It was still set for a fifth straight month of gains, and for a rise of more than 11% in the first half.

The Dow Jones Industrial Average rose 134.39 points, or 0.39%, the S&P 500 gained 3.06 points, or 0.07%, and the Nasdaq Composite dropped 13.63 points, or 0.09%. [.N]

The pan-European STOXX 600 index lost 0.77%. The German DAX fell 159.55, or 1.02%, and London’s FTSE 100 fell 50.08, or 0.71%.

EYES ON PAYROLLS

Data released on Wednesday showed that U.S. private payrolls increased 692,000 jobs in June, more than expected but less than the 886,000 jobs added in May.

That figure pushed the S&P 500 to near record highs on Wednesday. But markets are still focused on the more comprehensive U.S. nonfarm payrolls figures to come on Friday. Economists polled by Reuters were expecting a gain of 690,000 jobs for June, up from 559,000 in May. But the variation among the 63 estimates was large, ranging from 400,000 to more than a million.

The benchmark 10-year yield rose to yield 1.4426%, from 1.48%

The dollar rose 0.357%, headed for its biggest monthly rise since November 2016. The dollar has gained about 2.6% against a basket of currencies this month, partly in the wake of the U.S. Federal Reserve’s hawkish tilt.

A “very optimistic” Fed Governor Christopher Waller on Tuesday said it may need to start dialing down its massive asset purchase program as soon as this year to allow the option of raising interest rates by late 2022.

The euro was down 0.37% to $1.1851, while Britain’s pound was last trading at $1.3807, down 0.20% on the day.

The Japanese yen weakened 0.45% versus the greenback to 111.03 per dollar.

MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.11% lower, while Japan’s Nikkei lost 0.07%. Chinese blue chips added 0.65%.

Indonesia, Malaysia, Thailand and Australia are all battling outbreaks of COVID-19 and tightening restrictions, and Spain and Portugal announced restrictions for unvaccinated British tourists.

Oil prices were heading for monthly and quarterly gains after some data suggested U.S. crude stockpiles were shrinking.

U.S. crude rose 0.36% to $73.24 per barrel and Brent was at $75.08, up 0.43% on the day.

Gold headed for its largest monthly decline since November 2016. Spot gold added 0.2% to $1,765.16 an ounce. U.S. gold futures gained 0.13% to $1,765.10 an ounce.

(Reporting by Carolyn Cohn in London and Elizabeth Dilts Marshall in New York; editing by Jonathan Oatis, Kirsten Donovan)

Pandemic tied to spike in diabetes in children; type of immune response lasts months after Pfizer/BioNTech vaccine

By Nancy Lapid

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

Pandemic tied to sharp rise in type 2 diabetes in kids

Hospitalization rates for children with newly diagnosed type 2 diabetes more than doubled during the pandemic, two hospitals reported at the American Diabetes Association Scientific Sessions, held virtually this year. At Our Lady of the Lake Children’s Hospital in Baton Rouge, Louisiana, children with newly diagnosed type 2 diabetes accounted for 0.62% of inpatients from March through December 2020, up from 0.27% the year before. Those numbers are low, “but just the fact that this rate has more than doubled over the past year is … significant,” said Dr. Daniel Hsia of Pennington Biomedical Research Center in Baton Rouge. Children hospitalized in 2020 had more severe diabetes, with higher blood sugar and more dehydration, than children admitted in the prior year, he said. At Children’s National Hospital in Washington, DC, cases of new-onset type 2 diabetes in children increased 233% from 2019 to 2020 – and the children were sicker than in previous years, a separate team reported. Most of these children at both hospitals had not previously had COVID-19. Social distancing measures may have kept children from having regular physical activity and contributed to weight gain, and also kept parents from taking them for routine medical care, all of which may have contributed to more severe illness, researchers speculated. “Our study reinforces the importance of maintaining a healthy lifestyle for children even under such difficult circumstances” Hsia said in a statement.

Immune cell “factories” work longer after mRNA vaccines

The tiny “factories” in lymph nodes that churn out antibody-producing B cells to fight infections, called germinal centers, were still functioning to hold COVID-19 at bay for months after people received the mRNA vaccine from BioNTech and Pfizer, according to a new study. After most vaccines, germinal centers last only a few weeks. “Germinal centers are the key to a persistent, protective immune response,” said Ali Ellebedy of Washington University School of Medicine in St. Louis, who coauthored a report on Monday in Nature. “Germinal centers are where our immune memories are formed. And the longer we have a germinal center, the stronger and more durable our immunity will be because there’s a fierce selection process happening there, and only the best immune cells survive.” Researchers studied cells from germinal centers in armpit lymph nodes of 14 recipients of the Pfizer/BioNTech vaccine. Three weeks after the first dose, all 14 had germinal centers that were still generating B cells. B-cell production “expanded greatly” after the second shot and stayed high, they reported. Eight of 10 people biopsied 15 weeks after the first dose, still had functioning germinal centers. “We’re still monitoring the germinal centers, and … in some people, they’re still ongoing,” Ellebedy said. “This is truly remarkable.” The same effect is likely also true for Moderna’s mRNA vaccine, the researchers believe. Ultimately, immune cells called T cells are what sustains the germinal centers’ work after they disappear. The researchers plan next to investigate the magnitude and durability of T cell responses after mRNA COVID-19 vaccines.

Following AstraZeneca with Pfizer shot boosts antibody response

Giving a dose of the Pfizer/BioNTech COVID-19 vaccine four weeks after an AstraZeneca shot produces better immune responses than a second dose of AstraZeneca’s, Oxford University researchers said on Monday. In a study of 830 older adults, mixed two-dose schedules of AstraZeneca and Pfizer vaccines produced higher concentrations of antibodies against the coronavirus that a full schedule of the AstraZeneca shot. The most effective approach – two doses of Pfizer/BioNTech mRNA vaccine – produced levels of antibodies about 10 times higher than two doses of the AstraZeneca vaccine, the researchers reported on Friday in a Lancet preprint. However, the AstraZeneca shot followed by a Pfizer jab induced antibody levels about as high as two Pfizer/BioNTech doses. Giving the Pfizer shot first, followed by AstraZeneca’s, was not as successful. That combination yielded antibody levels higher than two AstraZeneca shots but lower than two doses of the Pfizer vaccine. There were no new safety issues uncovered in the study. Matthew Snape, the Oxford professor behind the trial, said the findings could be used to give flexibility to vaccine rollouts but were not significant enough to recommend a broad shift away from clinically approved schedules.

COVID-19, not Pfizer’s vaccine, tied to Bell’s palsy

The Pfizer/BioNTech vaccine has not been linked with a higher risk for the facial nerve paralysis known as Bell’s palsy, but COVID-19 itself does increase the risk, suggest two separate studies published on Thursday in JAMA Otolaryngology-Head and Neck Surgery. One study involved 110 people in Israel who received the Pfizer vaccine, including 37 in whom the characteristic facial droop developed on average nine days after the first dose or 14 days after the second. After accounting for underlying risk factors for Bell’s palsy, the researchers concluded the vaccine itself did not increase the risk. Furthermore, they found, rates of Bell’s palsy had not gone up during the vaccine rollout. In the second study, researchers compared Bell’s palsy rates among roughly 348,000 patients with COVID-19 and roughly 63,500 people who had been vaccinated against the coronavirus. The Bell’s palsy risk was nearly seven times higher in those with COVID-19, they found. “Our data suggest that rates of facial nerve palsy are higher in patients who are positive for COVID-19, and this incidence exceeds the reported incidence of Bell’s Palsy with the COVID-19 vaccine,” said Dr. Akina Tamaki of University Hospitals Cleveland Medical Center, who coauthored that study. “Taken together, it supports that the vaccine is safe from a facial nerve paralysis standpoint.”

(Reporting by Nancy Lapid, Megan Brooks, Marilynn Larkin and Alistair Smout; Editing by Bill Berkrot)

U.S. consumer watchdog approves new foreclosure protections, but not blanket ban

By Michelle Price

WASHINGTON (Reuters) -The U.S. consumer watchdog on Monday finalized new protections for homeowners who are struggling to make mortgage payments due to the pandemic, but said foreclosures will be allowed to resume in coming months once those extra protections have been met.

The Consumer Financial Protection Bureau (CFPB) in April proposed, among other measures, a new review process which it said at the time would generally prohibit mortgage servicers from starting a foreclosure until after Dec. 31, 2021.

The agency is trying to prevent a wave of foreclosures as 900,000 homeowners start to exit COVID-19 mortgage holiday or “forbearance” programs in coming months.

Reuters reported last week that the agency was due to proceed with the foreclosure rule but was expected to carve out certain groups of borrowers after industry groups said the proposal was too broad and beyond the CFPB’s legal remit.

On Monday, CFPB Acting Director Dave Uejio told reporters the final rule “takes a different tact” from what was originally proposed. It will require that mortgage servicers temporarily undertake additional pre-foreclosure protections, including making a greater effort to reach out to struggling borrowers, but it will give servicers more flexibility, CFPB staff said.

As of June 14, an estimated 2 million homeowners were in forbearance, according to the Mortgage Bankers Association. Around 900,000 of those are due to expire later this year, real estate industry data provider Black Knight estimates.

Under the new rule, from Aug. 31, 2021 through Dec. 31, 2021, mortgage servicers may only refer 120-day delinquent accounts for foreclosure provided at least one of three new temporary safeguards has been met: the borrower has been thoroughly evaluated and there are no available options to avoid foreclosure; the property is abandoned; the borrower is unresponsive to servicer outreach.

The rule will also allow mortgage servicers to offer streamlined loan modifications, which cannot increase borrowers payments; it also doesn’t require borrowers to submit full paperwork. That flexibility will allow servicers to get borrowers into affordable mortgage payment plans faster, with less paperwork, the CFPB said.

The new required protections do not apply to non-primary residences, borrowers who were more than 120 days behind on their mortgage before March 1, 2020, and small mortgage services.

Speaking to reporters, CFPB officials said they were focused on preventing a cliff of foreclosures and ensuring an “orderly transition” to a normal housing market, but that in some cases foreclosures would resume once the forbearance programs expired.

(Reporting by Michelle Price; Editing by Aurora Ellis)

One city ‘ready to explode’ as U.S. murder rates surge in pandemic

By Nathan Layne

ROCHESTER, N.Y. (Reuters) – Elijah Ross stood watch last Friday by the candles, flowers, liquor bottles and balloons at a memorial for his 31-year-old friend, Eric Ruise, among the latest victims of a murder spree gripping the city of Rochester, New York.

It had been two days since Ruise was gunned down in a barrage of bullets, from multiple shooters, outside a pharmacy. Ruise had been recently released from prison. He had committed, Ross said, to be a better father to his 10-year-old daughter, Jumyria.

“It makes no sense,” said Ross, 34, adding that no witnesses have stepped forward in the “broad daylight” murder. “This is the streets, the ‘hood.”

As Ross spoke, Jumyria’s mother picked up litter around the makeshift memorial. Such tributes have become a common sight in the poorer neighborhoods of Rochester, a city of 206,000 people in the northwestern part of the state. And the bloodshed in Rochester reflects a wave of violence in cities nationwide since last year.

With 34 homicides already this year, Rochester is on pace for a record-high 70 murders in 2021 – a per-capita rate that exceeds Chicago, one of America’s most violent large cities. Among cities with fewer than 500,000 people, Rochester saw the third-largest jump in its per-capita rate during the 12 months ending in April, according to americanviolence.org, a crime-mapping website led by Patrick Sharkey, a Princeton University sociology professor. Only New Orleans and Oakland saw bigger increases.

The rising violence in Rochester and nationally came as the coronavirus pandemic caused an economic crisis and the killing of George Floyd by Minneapolis Police last summer ignited nationwide protests and undermined relations between police and communities.

The per-capita murder rate climbed 30 percent in 2020 among 34 major cities surveyed by Richard Rosenfeld, a criminologist at the University of Missouri in St. Louis. Murders in New York, Los Angeles, and Chicago accounted for 40 percent of the 1,268 additional people killed in 2020, compared to the previous year, in the cities Rosenfeld studied.

In the first quarter of 2021, the research showed, the murder rate had declined from a peak the previous summer but was still up 24 percent over the first quarter of 2020. U.S. President Joe Biden pledged on Wednesday to go after the “merchants of death” who traffic illegal guns and to boost funding for local law enforcement nationwide.

The factors driving the violence are complex. Economic shocks such as the pandemic often spark a rise in crime. And some criminologists believe the national uprising over police killings of Black people, including Floyd, made residents of high-crime areas even less likely to assist police investigations, exacerbating a longstanding problem and emboldening violent criminals.

Rosenfeld said murders in the cities he studied peaked last summer as protests over Floyd’s killing raged and police departments nationwide came under intense public scrutiny. He believes, however, that this summer will be less deadly and noted that violent crime rates still remain well below a peak in the 1990s.

That’s little comfort right now in Rochester, where murders are still on the rise. Malik Evans, who this week defeated incumbent Mayor Lovely Warren in the Democratic primary, made combating gun violence a central campaign theme. In the heavily Democratic city, Evans is all but assured of winning the Nov. 2 general election.

Evans said the murder surge reflects rising problems with drug trafficking, criminal gangs and illegal firearms during the pandemic. While campaigning, he proposed naming a gun czar to work with federal officials to address the smuggling of guns into New York. He pointed to a 2016 state attorney general’s study that concluded three-fourths of seized guns came from other states.

“It’s a combustible fire that is getting ready to explode when you put all those things together,” Evans told Reuters shortly before his primary election victory, during a tour of Genesee Street, a thoroughfare and the site of many recent shootings.

The Rochester Police Department did not respond to questions about the causes of the rising homicide rate and its strategies to address the violence. The city’s police union, the Rochester Police Locust Club, said the department has only 12 investigators to pursue murder cases. Police data show that about two-thirds of this year’s cases remain open and unsolved.

‘PANDORA’S BOX’

Christopher Wood, 18, left a corner convenience store on June 12, walking with a 13-year-old boy down Genesee Street when they were both shot. Wood died. His companion, who has not been identified, survived.

Rochester Police have not disclosed any suspects or motives. The shooting illustrates troubling trends: Of the 186 shooting victims so far in 2021, nearly half were 25 years old or younger, and 90 percent were Black, police data show.

Wood’s sister, Shamarla Grice, told Reuters her brother had been devastated by the death of their mother in August from COVID-19. Afterward, he started hanging out with “older guys that were probably in gangs.”

Demond Meeks, a state lawmaker representing Rochester, said the city needs to provide better jobs for young people and to educate parents on signs that their children are involved with gangs.

“We do know that there is gang violence,” Meeks said at a gathering of 20 anti-violence advocates in a local park on June 16, following the Ruise shooting. “We have to come to grips with that.”

During the two-hour meeting, members of nonprofit organizations proposed violence prevention strategies including conflict-resolution training in schools and door-to-door canvassing in troubled neighborhoods. One man discussed his “Men Made Better” program to engage with young men through chess.

Midway through the meeting, Wanda Ridgeway of the nonprofit Rise Up Rochester slapped the table in disgust. She had just gotten a call about another shooting.

“I’m tired of our kids going around killing each other,” said John Rouse, 53, at the meeting. “It’s like Pandora’s box is open, and chaos is everywhere.”

‘WORSE THAN EVER’

Many community advocates in Rochester have called for better police protection while also demanding more accountability for police misconduct. It’s a delicate balance: Some worry efforts to rein in rogue officers may have the unintended consequences of restraining legitimate police work and empowering violent criminals.

The Ruise shooting occurred a few blocks from where Daniel Prude had an altercation with police in March 2020. Prude, who is Black, stopped breathing at the scene. He was revived but died a week later at a hospital.

The incident ignited protests and led to the resignation of Rochester’s police chief. Police body-camera footage released months later shows Prude naked and facedown in the street. Officers put a hood over his head after Prude, apparently suffering a mental crisis, said he had contracted COVID-19.

A grand jury earlier this year voted not to indict the officers involved. The outpouring of anger over the incident has sparked new efforts to combat police misconduct, including a $5 million city grant to hire 50 employees to investigate allegations against officers.

Rochester police did not respond to questions about efforts to prevent police misconduct.

Many community leaders cheered the extra scrutiny on the department. Clay Harris isn’t among them. He’s the founder of Uniting and Healing Through Hope of Monroe County, a local advocacy group focusing on violence. He said he’d rather see that $5 million spent on more officers to fight violent crime, which he attributes to a breakdown of families and an abandonment of Christian faith.

“They are not the problem,” said Harris, who is Black, of the city’s police force. “We are the problem as citizens.”

One evening last week, Retha Rogers and other members of anti-violence groups toured the neighborhood where her son was fatally shot in 2009.

“Every time that I hear that someone has been shot, it brings back memories of my son, and my heart goes out to the mothers,” Rogers said as she handed out flyers seeking information about her son, Michael Washington, Jr. “It’s worse than ever.”

At about the time Rogers’ group ended its meeting in prayer, police rushed to the scene of yet another murder across town. Brandon McClary, 22, had been gunned down by multiple shooters on Genesee Street.

(Reporting by Nathan Layne in Rochester, New York; additional reporting by Hussein Waaile and Lindsay DeDario in Rochester; editing by Brian Thevenot)