California to lift stay-at-home orders on Monday: report

(Reuters) – California is expected to lift its regional stay-at-home orders across the state on Monday, moving counties back into the tier-based reopening framework, local media reported.

California Governor Gavin Newsom’s office has decided to lift the orders as ICU availability in the regions that remained under the stay-at-home order, including the Bay area and Southern California are projected to rise above the 15% threshold that triggered the lockdown measures, according to the San Francisco Chronicle.

According to the report, counties will move back to the tiered system, with most regions across the state expected to move into the purple tier, meaning personal care services like hair salons can re-open with modifications and restaurants can open for outdoor service.

California, the United States’ most populous state, emerged as a leading U.S. epicenter of the pandemic despite re-imposing some of the most stringent restrictions on social gatherings and business activity.

Total cases in the United States crossed 25 million on Sunday, even as states accelerate their vaccine distribution. California has reported over 3.1 million cases and 36,745 deaths so far, a Reuters tally showed.

But the number of new infections appear to be slowing after a surge following the Holiday season.

The state’ top health official said earlier this month that the number of hospitalized coronavirus patients statewide had steadily declined, showing signs of the virus leveling off.

Strict stay-at-home orders were renewed for much of California in December to avert a crisis in hospitals.

(Reporting by Bhargav Acharya with additional reporting by Anurag Maan in Bengaluru; Editing by Toby Chopra)

Japan and IOC deny that Olympics will be cancelled

By Jack Tarrant and Sakura Murakami

TOKYO (Reuters) – Japan and the IOC stood firm on Friday on their commitment to host the Tokyo Olympics this year and denied a report of a possible cancellation, although the pledge looks unlikely to ease public concern about holding the event during a pandemic.

Though much of Japan is under a state of emergency due to a third wave of COVID-19 infections, Tokyo Olympic organizers have vowed to press ahead with the re-scheduled Games, which are due to open on July 23 after being postponed for a year because of the coronavirus.

A government spokesman said there was “no truth” to a report in Britain’s Times newspaper that the government had privately concluded the Games would have to be cancelled.

The Times, citing an unidentified senior member of Japan’s ruling coalition, said the government’s focus was now on securing the Games for Tokyo in the next available year, 2032.

“We clearly deny the report,” Deputy Chief Cabinet Secretary Manabu Sakai told a news conference.

Later, Japan Olympic Committee head Yasuhiro Yamashita told Reuters the report was “a fabrication”, and added in an interview: “It’s wrong and it’s ridiculous even having to comment on this.”

The governor of Tokyo, Yuriko Koike, said there had been no talk of cancelling or delaying the Olympics and a protest should be lodged over the Times report.

The Games organizing committee also denied the report, saying in a statement its partners including the government and the International Olympic Committee (IOC) were “fully focused” on hosting the games as scheduled.

“It is very disappointing to see that the Times is developing such a tabloid-like story with an untrustworthy source,” a source from the organizing committee told Reuters.

“The national government is fully committed to delivering a safe and secure Games,” the source said.

‘UNFOUNDED RUMORS’

The IOC issued a statement echoing that line, adding: “We will be implementing all possible counter-measures against COVID-19 and will continue to work closely … in our preparations for holding a safe and secure Games this summer.”

The Australian and U.S. Olympic Committees said they were preparing for the Games as planned.

“Unfortunately, I need to address unfounded rumors that the Tokyo Olympic Games will be cancelled, rumors that only create more anxiety for athletes,” Matt Carroll, the chief executive of the Australian committee, told reporters in Sydney.

“The Tokyo Games are on. The flame will be lit on July 23, 2021.”

The Australian committee is run by the IOC’s point man for the Tokyo Games, John Coates.

The U.S. and Canadian committees wrote on Twitter they had not received any information suggesting the Games would not happen as planned.

Sebastian Coe, head of World Athletics, also moved to reassure fans and locals that it would go ahead in a secure environment. “There is an absolute, cast-iron determination,” Coe told Reuters, saying that the arrival of vaccines and ability of athletes to train meant the situation was far better than when the Games were postponed last year.

CORONAVIRUS FEARS

Japan has been hit less severely by the pandemic than many other advanced economies but a recent surge in cases has forced it to close its borders to non-resident foreigners and declare a state of emergency in the Tokyo and other cities.

Tokyo reported new daily coronavirus cases of more than 1,000 for nine straight days through Thursday and set a single-day record of more than 2,400 infections earlier this month. The death toll from the respiratory disease stands at nearly 4,900 people in Japan.

There are public fears that an influx of athletes will spread the virus. About 80% of people in Japan do not want the Games to be held this summer, recent polls show.

In an interview ahead of Friday’s report, Tokyo 2020 CEO Toshiro Muto said he was cautiously hopeful that successful COVID-19 vaccine campaigns could help ensure the safe staging of the world’s largest sporting event.

The Olympic Games represents a major milestone for Japan and its premier, Yoshihide Suga, who has said the event would bring “hope and courage” to the world. Suga reiterated on Friday the Games would go ahead as planned.

(Reporting by Takashi Umekawa, Chris Gallagher, Jack Tarrant Mitch Phillips and Nick Mulvenney; Additional reporting by Elaine Lies; Editing by Stephen Coates, Robert Birsel and Alison Williams)

Exclusive: Canada deporting thousands even as pandemic rages

By Anna Mehler Paperny

TORONTO (Reuters) – Canada deported thousands of people even as COVID-19 raged last year, data seen by Reuters shows, and lawyers say deportations are ramping up, putting people needlessly at risk in the midst of a global health emergency.

Like many other countries, Canada is struggling to stop a second wave from spiraling out of control, and its political leaders are begging residents to stay home to prevent the spread.

Lawyers and human rights advocates are decrying Canada’s November decision to resume deportations. Until now, the extent of the country’s pandemic deportations was not known, but recent interviews with immigration lawyers and scrutiny of government numbers has shed light on the situation.

Canada counted 12,122 people as removed in 2020 – 875 more than the previous year and the highest number since at least 2015, according to Canada Border Services Agency (CBSA) data seen by Reuters. The government says this was necessary and done safely.

The CBSA says the high number last year is because it includes people who decided to leave on their own, termed “administrative removals.” In 2019 there were 1,657 administrative removals, compared with 8,215 last year.

Even subtracting those numbers, that leaves thousands of people deported as the pandemic raged and governments cautioned against travel of any kind for safety reasons.

Even as Canada continues to deport non-citizens during a health crisis, U.S. President Joe Biden paused deportations for 100 days within hours of being sworn in on Wednesday.

Canada officially imposed a moratorium on deportations in March that it lifted at the end of November.

“As much as a human rights concern it’s a common sense concern,” said Bill Frelick, director of Human Rights Watch’s Refugee Rights Program.

Countries’ deportation practices have varied over the course of the pandemic. Several, including the United Kingdom, suspended deportations before resuming them. Others, like Ireland, have kept suspensions in place.

The CBSA said it has been prioritizing deportations for reasons of “serious admissibility,” including criminality.

The vast majority of people deported in 2020 were for reasons of “noncompliance.” Even taking into account administrative removals, more than 1,000 people were deported during the suspension, the data shows.

‘IT’S UNBELIEVABLE’

Public health experts have warned that travel of any kind can spread COVID-19 from one place to another, a risk that grows with the advent of more highly transmissible COVID variants.

Many of the deportation trips involve transfers at multiple airports and flights during which people are placed in enclosed space in close quarters with other people for hours at a time, a situation ripe for transmission.

Since August Canada has been conducting deportations with CBSA escorts, so Canadians are also making thousands of these round-trip flights for deportation purposes.

Organizations including the Canadian Bar Association and the Canadian Association of Refugee Lawyers spoke out against Canada’s decision to resume deportations.

“As everybody is putting in place more restrictions in an effort to flatten the curve … CBSA made a shocking decision to simply go back to business as usual,” said Maureen Silcoff, president of the Canadian Association of Refugee Lawyers.

“Canada has taken the position that nonessential travel is barred yet people are now being removed and there’s no indication that those removals are essential.”

The CBSA said in a statement it lifted the moratorium on deportations because foreign government offices and borders had reopened, airlines restarted their routes and public-health protocols “have contributed to a high degree of safety for persons being removed by air.”

“Canada continues to uphold both its human rights and public safety obligations in relation to the removal of inadmissible foreign nationals,” the statement said. “The removal process includes many checks and balances to ensure that the removal is conducted in a fair and just manner.”

But these deportations are endangering not only the people being deported but the government officers tasked with accompanying them to their destination, lawyers say.

Immigration lawyer Lorne Waldman’s Toronto office went from getting no removal cases to getting three or four in the space of a week, he said. He is now fighting for a failed refugee claimant with two young Canadian children who faces deportation to Egypt Monday.

“They’re ramping it up as if there was no pandemic,” he said. “It’s unbelievable.”

(Reporting by Anna Mehler Paperny in Toronto; Editing by Denny Thomas and Matthew Lewis)

U.S. factory activity races to more than 13-1/2-year high in early January: IHS Markit

WASHINGTON (Reuters) – U.S. manufacturing activity surged to its highest level in more than 13-1/2-years in early January amid strong growth in new orders, but bottlenecks in the supply chain caused by the COVID-19 pandemic are driving up prices and signaling a rise in inflation in the months ahead.

Data firm IHS Markit said on Friday its flash U.S. manufacturing PMI accelerated to a reading of 59.1 in the first half of this month, the highest since May 2007, from 57.1 in December. Economists had forecast the index slipping to 56.5 in early January.

A reading above 50 indicates growth in manufacturing, which accounts for 11.9% of the U.S. economy. Manufacturing is being supported by businesses rebuilding inventories and a shift in demand towards goods from services because of the coronavirus crisis. Factories and the housing market are anchoring the economy as it battles a resurgence in the virus.

The IHS Markit survey’s measure of new orders received by factories raced to its highest level since September 2014. The surge in demand reflected both existing and new customers, “with some clients reportedly committing to orders previously placed on hold.”

But the pandemic is gumming up the supply chain, leading to higher prices for materials.

Manufacturers are also raising prices for their products. The survey’s gauge of prices received by factories vaulted to its highest level since July 2008. This mirrored other manufacturing surveys, suggesting inflation could pick up and remain elevated beyond the anticipated boost from the drop of weak readings in March and April from the calculation.

With orders soaring, manufacturers hired more workers early this month. The survey’s factory employment index increased to 54.8 from 52.2 in December.

The strength in manufacturing helped to lift business activity. The survey’s flash composite PMI Output Index, which tracks the manufacturing and services sectors, rose to a reading of 58.0 early this month from 55.3 in December. While its flash services sector PMI increased to 57.5 from 54.8 in December, the pace of new business growth softened at the start of 2021.

The services sector, which accounts for more than two-thirds of U.S. economic activity, has borne the brunt of the pandemic, with severe disruptions to restaurants, bars and other businesses that attract crowds. COVID-19 has infected more than 24 million people, with the death toll exceeding 400,000 since the pandemic started in the United States.

The survey’s measure of services industry employment fell to a six-month low in early January.

(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama)

U.S. labor market gradually healing; housing, manufacturing power ahead

By Lucia Mutikani

WASHINGTON (Reuters) – The number of Americans filing new applications for unemployment benefits decreased modestly last week as the COVID-19 pandemic tears through the nation, raising the risk that the economy shed jobs for a second straight month in January.

Despite the labor market woes, the economy remains anchored by strong manufacturing and housing sectors. Other data on Thursday showed homebuilding and permits for future residential construction surged in December to levels last seen in 2006. Factory activity in the mid-Atlantic region accelerated this month, with manufacturers reporting a boom in new orders.

The services sector has borne the brunt of the coronavirus crisis, disproportionately impacting lower-wage earners, who tend to be women and minorities. Addressing the so-called K-shaped recovery, where better-paid workers are doing well while lower-paid workers are losing out, is one of the major challenges confronting President Joe Biden and his new administration.

Initial claims for state unemployment fell 26,000 to a seasonally adjusted 900,000 for the week ended Jan. 16, the Labor Department said. Economists polled by Reuters had forecast 910,000 applications in the latest week.

Unadjusted claims dropped 151,303 to 960,668 last week. Economists prefer the unadjusted number because of earlier difficulties adjusting the claims data for seasonal fluctuations due to the economic shock caused by the pandemic. Including a government-funded program for the self-employed, gig workers and others who do not qualify for the regular state unemployment programs 1.4 million people filed claims last week.

Out-of-control coronavirus infections are disrupting operations at businesses like restaurants, gyms and other establishments where crowds tend to gather, reducing hours for many workers and pushing others out of employment.

Consumers are also hunkering down at home, leading to a weakening in demand. COVID-19 has infected more than 24 million people, with the death toll exceeding 400,000 since the pandemic started in the United States.

U.S. stocks opened higher as investors bet on more pandemic relief and speedy vaccine rollouts under the Biden administration. The dollar fell against a basket of currencies. U.S. Treasury prices were lower.

Some of the elevation in claims reflects people re-applying for benefits following the government’s recent renewal of a $300 unemployment supplement until March 14 as part of the nearly $900 billion in additional fiscal stimulus. Programs for the self-employed, gig workers as well as those who have exhausted their benefits were also extended.

Claims data is also difficult to adjust for seasonal fluctuations at the start of the year, a task that has been made even harder given the shock caused by the coronavirus.

MOMENTUM WANING

Nevertheless, recent data have shown the labor market recovery has stalled. The claims data covered the week during which the government surveyed establishments for the nonfarm payrolls component of January’s employment report. Claims were little changed between the December and January survey period.

The economy shed 140,000 jobs in December, the first job losses since April when authorities throughout the country enforced stay-at-home measures to slow the spread of the virus. Retail sales fell for a third straight month in December.

Though jobless claims have dropped from a record 6.867 million in March, they remain above their 665,000 peak during the 2007-09 Great Recession.

The claims report showed the number of people receiving benefits after an initial week of aid decreased 127,000 to 5.054 million during the week ending Jan. 9.

About 16 million people were on unemployment benefits under all programs at the start of the year. The economy has recovered 12.4 million of the 22.2 million jobs lost in March and April. Economists say it could take several years for the labor market to recover from the pandemic.

In a separate report on Thursday, the Commerce Department said housing starts jumped 5.8% to a seasonally adjusted annual rate of 1.669 million units last month, the highest level since September 2006. Economists had forecast starts would rise to a rate of 1.560 million units in December. Starts totaled 1.380 million in 2020, up 7.0% from 2019.

Permits for future homebuilding accelerated 4.5% to a rate of 1.709 million units in December, the highest since August 2006. Permits, which typically lead starts by one to two months, totaled 1.452 million last year, a 4.8% increase from 2019.

The housing market is being underpinned by cheaper mortgages and an exodus from city centers to suburbs and other low-density areas as companies allow employees to work from home and schools shift to online classes because of the pandemic. About 23.7% of the labor force is working from home.

A third report from the Philadelphia Federal Reserve showed its business conditions index soared to a reading of 26.5 this month from 9.1 in December. A measure of new orders at factories in the region that covers eastern Pennsylvania, southern New Jersey and Delaware, vaulted to a reading of 30.0 from 1.9 in December.

Factory employment measures also improved. While manufacturers reported paying more for raw materials, they were also able to increase prices for their goods. Manufacturers were upbeat about capital investment plans in the six months ahead.

(Reporting By Lucia Mutikani; Editing by Andrea Ricci)

Spaniards becoming numb to coronavirus deaths, nurse warns

By Luis Felipe Castilleja

BARCELONA (Reuters) – The senior nurse in the intensive care unit of Barcelona’s Sant Pau Hospital is anxiously watching the wards fill up and fears that Spaniards are letting their guard down against the coronavirus, numbed by the daily litany of deaths.

Staff at the unit kept up a fast pace on Thursday. Wearing double masks, goggles and gowns, they fitted patients with tubes to assist their breathing or helped them into comfortable positions.

Spain has the world’s fourth-highest number of new daily infections in a seven-day average, with 2.4 million confirmed total cases, according to a Reuters tally. It reported 41,576 new cases on Wednesday, while deaths rose by 464 to a total of 54,637.

“In the news they keep saying 300, 400 (deaths each day) and it looks like if they were talking about nothing,” ICU supervisor Mar Vega told Reuters.

“I believe people are becoming numb to these figures. They hear them but it’s like nothing is happening. People are not truly conscious of what we are going through.”

Vega said the increase in hospitalizations reminded her of the pandemic’s start last March and that medical staff risked burning out.

“It’s been many months. We are very tired.”

About 120 patients are currently hospitalized in Sant Pau for coronavirus, with 35 in the ICU, out of about 500 available beds, its director of intensive medicine, Dr. Jordi Mancebo, said. These were the worst figures since after the first wave in the spring.

Catalonia region has the highest number of accumulated hospitalizations in Spain. New admissions have doubled in the past three weeks to 600, Mancebo said.

“It’s very frustrating that there are people who minimize the importance of the pandemic,” he said.

(Reporting by Luis Felipe Castilleja, additional reporting and writing by Joan Faus,; Editing by Ingrid Melander and Angus MacSwan)

U.S. exceeds 400,000 coronavirus deaths

By Anurag Maan and Roshan Abraham

(Reuters) – The U.S. coronavirus death toll topped 400,000 on Tuesday, according to a Reuters tally, as the country hardest hit by the pandemic struggled to meet the demand for vaccines to stem the spread of infection.

States including Michigan, New Jersey, New York, Oregon, South Carolina and Vermont have shown signs of vaccine supply strain and are asking for more doses of both approved vaccines, one from Pfizer-BioNTech and the other from Moderna.

The number of deaths has spiked since Christmas.

During the past three weeks, U.S. coronavirus fatalities have totaled 63,793 compared with 52,715 deaths in the three weeks prior to Christmas, an increase of 21%, according to a Reuters analysis.

The daily COVID-19 death numbers crossed 4,000 for the first time on Jan. 6.

Eighteen U.S. states, including California, Pennsylvania, Texas and Washington reported their highest daily death numbers in January, according to the Reuters tally.

The number of coronavirus cases has risen across all U.S. regions and on Tuesday crossed 24 million since the pandemic started.

While seriously ill patients are straining healthcare systems in parts of the country, especially in California, the national rate of hospitalizations has leveled off in the past two weeks and was near 124,000 on Tuesday.

(Reporting by Anurag Maan, Roshan Abraham and Chaithra J in Bengaluru; Editing by Howard Goller)

Under government pressure, big U.S. lenders rush to launch more pandemic loans: sources

By Koh Gui Qing, Michelle Price and Pete Schroeder

WASHINGTON (Reuters) – The U.S. government is pressuring large lenders to go live this week with another round of a key federal pandemic loan program despite many unresolved issues, sparking an industry scramble to get lending platforms ready, five people familiar with the discussions said.

The Paycheck Protection Program (PPP) reopens to large lenders on Tuesday, with many big banks including JPMorgan Chase & Co, Wells Fargo & Co and Bank of America, ready to start accepting applications, their representatives said.

But with dozens of changes to the rules and government technology system, the latest round is much more complex. Some industry executives worry that the government pressure to launch with so many unresolved issues could cause a rerun of the paperwork and technology snags that dogged last year’s launch.

While the program helped millions of small businesses, last year’s problems contributed toward some needy borrowers missing out while some ineligible companies and fraudsters got funds, oversight watchdogs have said.

A spokesman for the Small Business Administration (SBA), which jointly administers the PPP with the Treasury Department, said Congress expected the latest round to be launched swiftly to get cash to needy businesses as quickly as possible.

“SBA, in consultation with Treasury, is working around the clock to fulfill this congressional desire … and urges lending partners of all sizes to continue assisting eligible small businesses,” he added in an emailed statement.

As of Friday, the industry was circulating an eight-page document, seen by Reuters, of questions on the rules, required documentation and technology processes.

“Everyone is trying to move really quickly … but it’s just really difficult to launch a $300 billion program in a few weeks. People are struggling,” said Dan O’Malley, chief executive of Numerated, which provides PPP loan processing software to banks.

“The SBA and Treasury are pushing because of the economic need. They’re just trying to do the right thing,” he added.

Last week, officials contacted large lenders to ensure they would start accepting applications on Tuesday, said one of the five people, who spoke on condition of anonymity. Another person with knowledge of the discussions said officials are also anxious to get as much cash out the door as possible before Democratic President-elect Joe Biden takes over on Wednesday.

Under the program, lenders make loans to be repaid by the government provided borrowers spend the cash on eligible costs.

Last year, lenders issued 5.1 million loans worth $525 billion. As the pandemic drags into a second year, Congress granted $284 billion more in funds and changed the rules on eligible borrowers and expenditures.

Richard Hunt, chief executive of the Consumer Bankers Association, said the industry had “dedicated thousands of bank employees to make the process as efficient as possible.”

In addition to changes to the rules for first-time PPP loans, borrowers will be allowed a second loan provided they can show a 25% hit to their revenues. To fix technology capacity issues seen last year, the SBA has introduced a new loan application technology platform for lenders.

Combined, lenders say these amount to substantial changes. As of Friday, outstanding questions ranged from how to calculate employee numbers, which revenue documents were needed and how closely lenders must review them, to how borrower affiliates should be treated and requirements for loans to be forgiven, according to the document and sources.

The second source with knowledge of the discussions said more time to iron out the wrinkles could help mitigate “bad behavior.” But the first industry source said with so much confusion over who was eligible for second-time loans, he was more worried the SBA would reject applications.

Still, some small lenders which went live last week noted they’d had longer to prepare than last year and that their experience had so far been positive. A different industry source said big banks had tested their systems over the weekend and were “cautiously optimistic” Tuesday would go smoothly.

(Additional reporting by Pete Schroeder; editing by Jonathan Oatis)

Spain’s COVID-19 incidence hits new high as third wave of infection rages

MADRID (Reuters) – Spain’s incidence of the coronavirus as measured over the past 14 days reached a new high of 714 cases per 100,000 people on Tuesday after 689 cases the previous day, Health Ministry data showed, as a rampant third wave of infection grips the country.

The ministry reported 34,291 new infections, retreating from Friday’s record rise of more than 40,000, and bringing the cumulative tally to 2,370,742.

Spain’s overall death toll from the virus rose by 404 to 54,173, the data showed. Although daily increases in the death toll have been on the rise, it is still far below the nearly 900 deaths registered per day in late March and early April.

(Reporting by Nathan Allen, editing by Andrei Khalip)

Brussels targets vaccinating at least 70% of EU adults by summer

BRUSSELS (Reuters) – European Union states should aim to vaccinate at least 70% of their adult populations against COVID-19 by the summer, the European Commission recommended on Tuesday.

Each of the EU’s 27 governments are managing their own vaccination campaigns, including their pace and which groups get priority. The Commission’s recommendations are not binding.

The 70% goal could mean inoculating over 200 million people, most likely with vaccines which need two doses per person. The EU has so far given a first dose to about 5 million people since it started its rollout at the end of December, the Commission said.

To meet its ambitious goal, the EU executive said it will work to boost the production capacity of vaccine makers with measures that could include investment in plants and faster regulatory procedures to authorize them.

As a mid-term target, by March at least 80% of people over the age of 80, and 80% of healthcare workers should also be vaccinated in each EU state, the Commission said.

The EU has ordered nearly 2.3 billion doses of approved and candidate COVID-19 vaccines, but only the shots developed by Moderna and Pfizer-BioNTech have so far received regulatory clearance in the bloc. They both need two doses to provide full protection.

The EU has secured 600 million doses of the vaccine developed by Pfizer and its German partner BioNTech and, despite early snags in deliveries, expects them to be delivered by the end of this year.

Moderna said it expects to deliver at least 80 million doses to the EU by the third quarter. Decisions on EU approvals of the vaccines developed by AstraZeneca and Johnson & Johnson are expected in coming weeks.

The Commission is also urging EU states to boost their capacity to sequence the coronavirus in order to detect new variants.

It called on EU governments to sequence at least 5% of all positive tests whereas at the moment many states test less than 1% of samples.

“Vaccinations will still take time until they reach all Europeans,” EU health commissioner Stella Kyriakides said, adding that meanwhile testing and sequencing must be increased.

The Commission also said it was working with EU states to adopt a common approach by the end of the month on vaccination certificates to facilitate travel.

(Reporting by Francesco Guarascio @fraguarascio; editing by Philip Blenkinsop, John Stonestreet, Philippa Fletcher, Alexandra Hudson)