Tag Archives: Pandemic

Japan extends COVID-19 emergency lockdown as cases surge

By Daniel Leussink, Leika Kihara and Sakura Murakami

TOKYO/FUKUOKA, Japan (Reuters) – Japan on Tuesday extended its state of emergency in Tokyo and other regions and announced new measures covering seven more prefectures to counter a spike in COVID-19 infections that is threatening the medical system.

The current state of emergency, the fifth of the pandemic so far, was due to expire on Aug. 31 but will now last until Sept. 12. Tokyo announced 4,377 new coronavirus cases on Tuesday, after a record 5,773 on Friday.

“The Delta variant raging across the world is causing unprecedented cases in our country,” Prime Minister Yoshihide Suga said. “Serious cases are increasing rapidly and severely burdening the medical system, particularly in the capital region.”

The emergency will now cover nearly 60% of Japan’s population with the prefectures of Ibaraki, Tochigi, Gunma, Shizuoka, Kyoto, Hyogo and Fukuoka included. Less strict “quasi-emergency” measures will be applied to a further 10 prefectures.

Restaurants are being asked to close early and stop serving alcohol in exchange for a subsidy. Suga announced a fresh subsidy of 300 billion yen ($2.7 billion) to help businesses cope with the fall-out.

Suga said the government would also request occupancy limits at department stores and ask people to reduce by half the times they go to crowded areas.

Speaking at a news conference explaining the steps, the government’s top health advisor, Shigeru Omi, said Japan needed to come up with steps to “prod individuals to avoid taking action that could potentially spread infections”.

He said that could be done under the current laws, which are mostly based on voluntary cooperation, but added that there’s also room for a nationwide debate on how to do this under a new legal framework”. He did not go into details.

Speaking beside Omi, Suga said the government would consider crafting legislation to swiftly prepare enough hospital beds for critically ill COVID-19 patients, and speed up vaccinations.

Suga dismissed the idea of imposing a blanket, nationwide state of emergency, saying that would pose “excessive restrictions for some prefectures” that were succeeding in containing new infections.

FALLING SHARES

Japanese shares fell for a fourth day on Tuesday as concerns about the Delta variant overshadowed optimism about upbeat earnings.

Japan’s case fatality rate stands at about 1.3%, compared with 1.7% in the United States and 2.1% in Britain.

But health experts fear the number of deaths could soar in Japan as the Delta variant tears through the younger population and hospitals become too crowded to treat serious cases.

“Many experts expressed an extremely strong sense of crisis about the medical care situation and the status of infections,” Economy Minister Yasutoshi Nishimura said after consulting with health advisers.

More than 80% of Tokyo’s critical care beds are occupied, and the rate is already 100% in neighboring Kanagawa prefecture. Serious cases climbed to records of 276 in Tokyo and 1,646 nationwide on Tuesday.

Dai-ichi Life Research Institute estimated that the government’s extended and expanded state of emergency would lead to a total economic loss of about 1.2 trillion yen ($11 billion) and could cost 66,000 jobs.

That was about 60% higher than an expected loss of about 750 billion yen if the emergency remained at its current scope and schedule.

Repeated states of emergency have had a limited effect in slowing the spread of the virus.

Takuto Honda, 20, a university student in the southwestern city of Fukuoka who works part-time at a karaoke shop, said a harder lockdown with government pay-outs would be more effective. “If there is money to host the Olympics, there should be money to compensate us,” he said.

Pandemic fatigue and summer vacations have also been blamed for contributing to the latest COVID-19 surge in a nation where only around 37% of people have been fully vaccinated.

(Reporting by Sakura Murakami in FUKUOKA, Daniel Leussink, Leika Kihara and Rocky Swift in TOKYO; Additional reporting by Antoni Slodkowski; Editing by Susan Fenton, Giles Elgood and Mark Heinrich)

Factbox-Latest on the worldwide spread of the coronavirus

(Reuters) – The Tokyo Paralympics will take place generally without spectators, organizers said, as the government was set to prolong COVID-19 emergency measures in the capital and other regions that will run through the Games.

EUROPE

* The European Guarantee Fund, which is managed by the Investment Bank Group, secured European Union approval to provide guarantees on synthetic securitization tranches to help companies in 22 EU countries affected by the pandemic.

* Poland will send 650,000 doses of the AstraZeneca vaccine to Ukraine, the minister in charge of the Polish vaccination drive told state news agency PAP.

* North Macedonia has reimposed restrictions on access to cafes, restaurants and public events in a bid to subdue a fresh spike in infections and nudge citizens to get vaccinated, prompting public anger and protests.

* All 16- and 17-year-olds in England will be offered their first vaccine dose by Aug. 23, according to a target set by British Health Secretary Sajid Javid.

ASIA-PACIFIC

* Thailand, a regional manufacturer of AstraZeneca’s coronavirus shots, is seeking to borrow 150,000 doses of the same vaccine from the Himalayan kingdom of Bhutan, an official said, amid a Thai supply shortage.

* Indonesia extended its curbs though relaxed some measures in eight unspecified areas on the most populous islands of Java and Bali, as fewer infections have been reported in cities.

* Hong Kong’s government said it would upgrade 15 overseas places including the United States, Spain and France to “high risk” from “medium risk” by Aug. 20, meaning international arrivals from those countries will face lengthened quarantine due to a resurgence of the coronavirus.

* Taiwan has rejected an application for the emergency use of UBI Pharma’s vaccine candidate, the government said.

AMERICAS

* As the Delta variant of the virus sweeps through Mexico’s cities, more adults in their 30s and 40s are ending up in the hospital with polls showing vaccine hesitancy is rising in younger age groups.

MIDDLE EAST AND AFRICA

* Turkey is allowing people who were inoculated with Sinovac’s coronavirus vaccine to take an additional Pfizer dose as it looks to ease travel to countries that have not approved the Chinese shot, the health ministry said.

MEDICAL DEVELOPMENTS

* Europe’s drugs regulator said it was evaluating the use of Roche’s arthritis drug, Actemra, in hospitalized adults with severe COVID-19, its latest review of a potential coronavirus treatment.

* The UK’s health regulator said coronavirus vaccines did not raise the risk of miscarriage, and that it had not found any link between the shots and changes to menstrual periods.

* GlaxoSmithKline and CureVac said a study on macaque monkeys showed their jointly-developed vaccine candidate to be “strongly improved” in protecting against the virus compared with CureVac’s first attempt.

ECONOMIC IMPACT

* A surprisingly sharp slowdown in Chinese economic activity and a rapid Taliban takeover in Afghanistan helped drive global shares lower Monday.

* The initial success of Israel’s COVID-19 vaccination rollout that enabled an opening of the economy bolstered growth in the second quarter, official figures showed.

* Thailand’s economy unexpectedly grew in the second quarter from the first helped by exports and government spending, but spiking cases continue to batter domestic activity and tourism, restraining its fragile recovery.

(Compiled by Veronica Snoj and Federico Maccioni; Edited by Shounak Dasgupta)

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

By Evan Sully and Lindsay Dunsmuir

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

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

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

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

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

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

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

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

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

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

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

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

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

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

WHO seeks to take political heat out of virus origins debate

By Emma Farge

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

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

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

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

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

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

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

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

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

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

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

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

Long delays as Canada opens border to fully vaccinated American tourists after 16 months

VANCOUVER (Reuters) – Long delays were reported at the Canadian-U.S. border on Monday as Ottawa finally opened doors to fully vaccinated American tourists for the first time in 16 months, causing a rush of tourists to travel north during the busy summer season.

Government data showed a seven-hour wait time for the Fort Frances, Ontario, and International Falls, Minnesota, crossing. Fort Frances advertises itself online as “rarely experiencing delays.”

Several crossings in Ontario and New Brunswick – between the states of New York and Maine – had waits of three hours.

Canada barred all leisure travel from the United States in March 2020 due to the COVID-19 pandemic, but as of August 9 fully vaccinated travelers are able to enter the country. International travelers who are fully vaccinated will be allowed to enter in early September.

Late on Friday, the Canadian government and border staff reached a tentative deal to end a strike action that began earlier in the day.

Prior to the pandemic, tourism was the fifth-largest industry in Canada, contributing C$105 billion ($83.4 billion) to the GDP and providing one in ten jobs, according to the Tourism Industry Association of Canada.

Toronto’s Pearson International Airport, Canada’s biggest airport, has also asked travelers to brace for delays as American leisure travelers returns to Canada.

(Reporting by Moira Warburton in Vancouver; Editing by Angus MacSwan)

Global COVID-19 cases surpass 200 million as Delta variant spreads

By Roshan Abraham and Kavya B

(Reuters) – Coronavirus cases worldwide surpassed 200 million on Wednesday, according to a Reuters tally, as the Delta variant threatens areas with low vaccination rates.

Cases are rising in at least 83 out of 240 countries, according to the tally, and straining healthcare systems.

“While we desperately want to be done with this pandemic, COVID-19 is clearly not done with us. And so our battle must last a little longer,” Dr. Rochelle Walensky, director of the U.S. Centers for Disease Control and Prevention, said this week.

At least 2.6% of the world’s population has been infected, with the true figure likely higher due to limited testing in many places. If the number of infected people were a country, it would be eighth most populous in the world, behind Nigeria, according to a Reuters analysis.

It took over a year for COVID-19 cases to hit 100 million mark, while the next 100 million were reported in just over six months, according to the analysis. The pandemic has left close to 4.4 million people dead.

The countries reporting the most cases on a seven-day average – the United States, Brazil, Indonesia, India and Iran – represent about 38% of all global cases reported each day.

The United States accounts for one in every seven infections reported worldwide. U.S. states with low vaccination rates such as Florida and Louisiana are seeing record numbers of COVID patients hospitalized, despite the nation giving 70% of adults at least one vaccine shot. The head of one Louisiana hospital warned of the “darkest days” yet.

Unvaccinated people represent nearly 97% of severe cases, according to the White House COVID-19 Response Team.

RISING CASES IN ASIA

Countries in Southeast Asia are also reporting rising cases. With just 8% of the world’s population, the region is reporting almost 15% of all global cases each day, according to a Reuters analysis.

Indonesia, which faced an exponential surge in COVID-19 cases in July, is reporting the most deaths on average and surpassed 100,000 total deaths on Wednesday. The country accounts for one in every five deaths reported worldwide each day. The Southeast Asian nation aims to gradually reopen its economy in September, Health Minister Budi Gunadi Sadikin said on Monday, citing that the wave of infections had passed its peak, with daily confirmed cases on the decline.

After suffering its worst outbreak in April-May, India is once again seeing a rising trend of cases. Last Friday, the country reported 44,230 new COVID-19 cases, the most in three weeks, fueling worries of a third wave of infections that has forced one state to lockdown.

China’s Wuhan city, where the virus first emerged in late 2019, will test its 12 million residents for the coronavirus after confirming its first domestic cases of the Delta variant. The city had reported no local cases since mid-May last year.

The Delta variant is upending all assumptions about the virus, with disease experts scrambling to find whether the latest version of coronavirus is making people, especially unvaccinated individuals, sicker than before.

The CDC said in an internal document that the variant, first detected in India, is as contagious as chickenpox and far more contagious than the common cold or flu.

A key issue, said Dr. Gregory Poland, a vaccine scientist at the Mayo Clinic, is that the current vaccines block disease, but they do not block infection by keeping the virus from replicating in the nose.

As a result, he said, “the vaccines we have currently are not going to be the be-all, end-all,” he said. “We are now in a scenario of our own making, where this is going to be years to decades to now defeat. … And we’re going to chase our tail with variants until we get a type of vaccine that offers infection and disease-blocking capabilities.”

Many countries are still facing shortages of testing kits, medicines and vaccines, as the Delta variant strains healthcare services in poorer nations. Wealthier nations are being urged to donate more vaccine to curb the outbreak globally.

The World Health Organization (WHO) is seeking $11.5 billion to fight the Delta outbreak, a draft report seen by Reuters shows, amid worries wealthy nations are partly bypassing its COVID-19 programs.

(Reporting by Roshan Abraham and Kavya B in Bengaluru; Additional reporting by Julie Steenhuysen in Chicago; Editing by Lisa Shumaker)

Delta spreads ‘like wildfire’ as doctors study whether it makes patients sicker

By Deena Beasley

LOS ANGELES (Reuters) – With a new wave of COVID-19 infections fueled by the Delta variant striking countries worldwide, disease experts are scrambling to learn whether the latest version of coronavirus is making people – mainly the unvaccinated – sicker than before.

The U.S. Centers for Disease Control and Prevention warned that Delta, first identified in India and now dominant worldwide, is “likely more severe” than earlier versions of the virus, according to an internal report made public on Friday.

The agency cited research in Canada, Singapore and Scotland showing that people infected with the Delta variant were more likely to be hospitalized than patients earlier in the pandemic.

In interviews with Reuters, disease experts said the three papers suggest a greater risk from the variant, but the study populations are limited and the findings have not yet been reviewed by outside experts. Doctors treating patients infected with Delta described a more rapid onset of COVID-19 symptoms, and in many regions an overall increase serious cases.

But the experts said more work is needed to compare outcomes among larger numbers of individuals in epidemiologic studies to sort out whether one variant causes more severe disease than another.

“It’s difficult to pin down increase in severity and population bias,” said Lawrence Young, a virologist at the UK’s Warwick Medical School.

In addition, it is likely that the extraordinary rate of Delta transmission is also contributing to a greater number of severe cases arriving at hospitals, the experts said.

Delta is as contagious as chickenpox and far more contagious than the common cold or flu, according to the CDC report.

Shane Crotty, a virologist at the La Jolla Institute for Immunology in San Diego, said the clearest indication that the variant may cause more severe disease comes from the Scotland study, which found that Delta roughly doubled the risk of hospitalization compared to an earlier version.

The majority of hospitalizations and deaths from coronavirus in the United States are occurring in people who have not been vaccinated. But there is evidence that the shots are less effective in people with compromised immune systems, including the elderly.

For vaccinated, otherwise healthy individuals, the odds are that if they contract COVID-19 they will only experience asymptomatic or mild disease, said Dr. Gregory Poland, infectious disease expert at the Mayo Clinic.

“But they can pass it on to family members and others who may not be so lucky,” Poland said. “We have to be vaccinated and masked or we will, for the fourth time now, endure another surge and out of that will come worse variants.”

‘FULL-ON FLAMES’

The rate of severe illness, especially in regions where vaccination rates are low, is again straining healthcare workers on the front lines of the pandemic.

“This is like a wildfire, this is not a smoldering campfire. It is full-on flames right now,” said Dr. Michelle Barron, senior medical director of infection prevention and control at Colorado’s UCHealth.

Research from China suggesting that the Delta variant replicates much faster and generates 1,000 times more virus in the body compared to the original strain highlights the biggest danger of this new wave, Barron said.

“It is hard to tell if they are more sick because of the Delta variant or if they would have been more sick anyway,” she said.

Other doctors said patients infected with Delta appear to become ill more quickly, and in some cases with more severe symptoms, than those they treated earlier in the pandemic.

“We are seeing more patients requiring oxygen sooner,” said Dr. Benjamin Barlow, chief medical officer at American Family Care, a 28-state chain of urgent care clinics.

At his clinic in Birmingham, Alabama, Barlow said that around 20% of patients are testing positive for COVID-19, compared with 2-3% a few weeks ago. Patients are assessed at that time for potential hospital admission and oxygen support.

David Montefiori, director of the Laboratory for AIDS Vaccine Research and Development at Duke University Medical Center, said the Delta variant is more infectious and leads to faster onset of illness – particularly for the unvaccinated.

“Frankly there’s a severity that comes from this variant that is a little more severe,” Montefiori said on a webcast last week. “It’s not just easier to transmit, it makes you sicker.”

(Reporting by Deena Beasley in Los Angeles, Josephine Mason in London and Julie Steenhuysen in Chicago; Editing by Michele Gershberg and Daniel Wallis)

Big Oil back to boom after pandemic bust, aiding climate push

By Ron Bousso

LONDON (Reuters) – Europe’s top energy companies signaled confidence in a lasting recovery from the pandemic impact by drawing on higher oil prices to boost shareholder returns and reassure investors as they roll out risky climate strategies.

After swiftly cutting spending and jobs in response to the unprecedented collapse in energy demand last year, executives from Royal Dutch Shell, TotalEnergies and Norway’s Equinor were eager to highlight the rapid reversal in fortunes.

“We wanted to be really clear and signal to the market the confidence that we have in our prospects and our cash flows,” Chief Executive Ben van Beurden said on Thursday, after Shell launched a $2 billion buyback program and boosted its dividend for a second consecutive quarter, a year after cutting it for the first time since the 1940s.

Energy companies have come under heavy pressure from climate campaigners, governments and shareholders to speed up the shift from fossil fuels to cleaner sources.

While some investors welcome the change as they perceive carbon-intensive, fossil fuel energy as unsustainable, others are worried about the implications for profit margins of new business models.

Benchmark Brent crude oil prices more than doubled in the second quarter from a year earlier to around $69 a barrel, driven by recovering demand and tightening global supplies.

As profits surged, France’s TotalEnergies also announced on Thursday plans to buy back shares. CEO Patrick Pouyanne said however that a large increase in dividends would not be reasonable yet and would be linked to higher cash flow.

The group said it expected to generate more than $25 billion in cash flow this year, based on current high oil price forecasts, and would invest in more new projects and return surplus amounts to shareholders if oil prices remained high.

Equinor also said on Wednesday it would begin a long-planned share buyback that will reach $300 million by the end of the third quarter after profits surged.

BP reports its second quarter results on Aug. 3. It launched a $500 million buyback in the previous quarter after halving its dividend last year.

WEANING THEMSELVES OFF OIL

BP, as well as Shell, TotalEnergies and Equinor, plans to sharply reduce greenhouse gas emissions in the coming decades while reducing reliance on fossil fuels.

Oil prices are expected to remain elevated in the coming years as supplies stay tight because of lower investments.

High fossil fuel prices are double-edged. They can tempt operators to maximize conventional output, but they also produce income needed to invest in lower carbon sources.

Shell’s free cash flow – money left after deducting spending and shareholder payouts – soared in the second quarter to $9.7 billion, its highest in a year, while debt also declined.

“The quarter proves without doubt that Shell’s earnings power is intact and that they’re willing to pay investors handsomely to come on their transformation journey,” Bernstein analyst Oswald Clint said.

TotalEnergies’s results are a “confirmation that the group is geared to the macro environment and can deliver both on the energy transition and cash returns to shareholders,” Barclays analysts said in a note.

Despite the surge in revenue, Shell and TotalEnergies indicated they would stick to previous spending plans.

Shell said it will not spend more than its planned $22 billion this year and any increases in the futures will go mostly towards low-carbon businesses.

TotalEnergies said investments would reach between $12 and $13 billion in 2021, with half of that earmarked for growth projects, including a major chunk in renewable energy and electricity.

(Reporting by Ron Bousso; editing by Barbara Lewis and David Evans)

Pandemic drove online prices higher -report

By Howard Schneider

WASHINGTON (Reuters) – The rush to online shopping during the pandemic drove prices higher for goods ordered over the internet, eroding a long-standing cost advantage and possible evidence that overall inflation may become more persistent than thought, according to a new report from tech giant Adobe.

The study, analyzing a trillion retail site visits across 18 product categories matched to the closely watched U.S. Consumer Price Index that measures general inflation, found that online prices jumped 2.3% in June on an annual basis.

They had fallen an average 3.9% annually from 2014 to 2019 and began turning higher last year.

For consumers, online shopping “has been a bit of a haven. They can get different pricing,” said Vivek Pandya, lead analyst for Adobe Digital Insights. “Through the pandemic what we have seen is that is not so much the case.”

The online price of appliances, for example, jumped 2.3% in June, after declining an average of 2.6% annually from 2015 to 2019 Adobe found. Online apparel jumped 16.2% after a steady 1% annual decline in price before the pandemic.

Some prices continued falling. The cost of computers declined nearly 10% over the year, matching its average pace of decline before the pandemic. But in another key online category, electronics, the steady 9% annual drop in prices slowed dramatically, with the cost of goods falling just 2.5%

Overall, Pandya said he felt the experience of the last year, as online shopping surged in popularity and became more common for things like groceries and household staples, has made online retailers both more subject to demand and supply chain pressures in the economy, and given them less incentive to discount.

“As retailers find demand and they are against (supply chain) shortages, they are pricing at higher levels. And in some instances consumers will reckon with that and say they are getting convenience and will continue to absorb the cost,” he said.

That could be bad news for the U.S. Federal Reserve. Online retailing is regarded by some at the Fed as an important reason why inflation overall has remained low in recent years – with consumers just a glance at their phone away from finding the best price for a widening array of products.

If the pricing of online goods starts to behave more like that of goods in stores, it might make bouts of inflation more persistent – and not, as the Fed expects, only transitory.

Adobe developed its Digital Economy Index in 2014 but until now has updated it infrequently. It plans to release results monthly going forward.

(Reporting by Howard Schneider; Editing by Andrea Ricci)

Britain reports highest deaths from COVID-19 since March as Johnson urges caution

By Alistair Smout and Paul Sandle

LONDON (Reuters) -Britain reported its highest number of deaths and people in hospital with coronavirus since March on Tuesday, with Prime Minister Boris Johnson urging caution despite a week of lower reported numbers of infection.

Britain reported 131 new deaths from COVID-19, the highest daily total since March 17, though it came after just 14 deaths were reported on Monday, suggesting the weekend might have impacted when deaths were reported.

The number of COVID-19 patients in British hospitals has also steadily risen to 5,918, also the highest since March, following a spike in cases earlier this month.

The number of new infections has fallen each day for the last seven days, though Johnson stressed the pandemic was not over.

“It is very, very important that we don’t allow ourselves to run away with premature conclusions about (lower case numbers),” Johnson told broadcasters, noting it would take a while for the lifting of restrictions in England to feed through to the data.

“People have got to remain very cautious and that remains the approach of the government.”

Johnson has lifted restrictions in England and is betting he can get one of Europe’s largest economies firing again because so many people are now vaccinated, a decision which marks a new chapter in the response to the novel coronavirus.

Imperial College epidemiologist Neil Ferguson said the effective end of Britain’s pandemic could be just months away as vaccines have so dramatically reduced the risk of hospitalization and death.

“We’re not completely out of the woods but the equation has fundamentally changed,” Ferguson, whose modelling of the virus’s likely spread at the outset of the pandemic in early 2020 alarmed governments across the world, told the BBC.

“I’m positive that by late September, October time we will be looking back at most of the pandemic.”

ON THE WAY DOWN

Johnson lifted COVID-19 restrictions in England on July 19. New daily cases in the current wave peaked two days earlier at 54,674 and have since fallen dramatically, to 23,511 new cases on Tuesday.

The closure of schools for summer, the end of the Euro 2020 soccer championships and warmer weather are among factors epidemiologists say might have reduced social mixing indoors and therefore cases, even as England’s economy has fully reopened.

Case numbers have been falling for longer in Scotland, where the recent peak in new infections was on July 1, than in England, corresponding to an earlier elimination from the Euros.

“Both of them seem to coincide in some ways with the end of activity in the Euro 2020 tournament,” Rowland Kao, an epidemiologist at the University of Edinburgh, told Reuters, adding that changes in testing patterns might mean that the sharpness of the drop is overstated in daily testing figures.

“(Cases) may go up again, because we’re only just going to be starting to see the effect of the complete release of restrictions associated with July 19 in England. So there may still be rises yet to come.”

Britain has one of the highest official fatality rates from COVID-19 in the world, with 129,303 deaths, but vaccinations and lockdowns have greatly slowed the rate since March.

Scotland’s National Clinical Director Jason Leitch said a gradual return to usual social activity would help smooth the end of the current wave, but that the next few weeks would be unpredictable.

“On the way down is always bumpier than the exponential rise on the way up,” he told Reuters.

(Reporting by Sarah Young and Alistair Smout; Additional reporting by Paul Sandle; Editing by Guy Faulconbridge, Janet Lawrence, Catherine Evans, William Maclean and Mike Harrison)