Biden camp considers legal action over agency’s delay in recognizing transition

By Simon Lewis and Tim Reid

WILMINGTON, Del. (Reuters) – President-elect Joe Biden’s transition team is considering legal action over a federal agency’s delay in recognizing the Democrat’s victory over President Donald Trump in last week’s election, a Biden official said on Monday.

The General Services Administration (GSA) normally recognizes a presidential candidate when it becomes clear who has won an election so that a transition of power can begin.

That has not yet happened despite U.S. television and news networks declaring Biden the winner on Saturday after he secured enough electoral votes to secure the presidency.

The law does not clearly spell out when the GSA must act, but Biden transition officials say their victory is clear and a delay is not justified, even as Trump refuses to concede defeat.

Trump has repeatedly claimed, without evidence, that there was widespread voting fraud and has filed a raft of lawsuits to challenge the results.

Election officials across the country say there has been no evidence of significant fraud, and legal experts say Trump’s efforts are unlikely to succeed.

GSA Administrator Emily Murphy, appointed by Trump in 2017, has not yet determined that “a winner is clear,” a spokeswoman said. A source close to Murphy said she was a thorough professional who would take her time making a careful decision.

A Biden transition official told reporters on a call that it was time for the GSA’s administration to grant what is known as an ascertainment recognizing the president-elect, and said the transition team would consider legal action if it was not granted.

“Legal action is certainly a possibility, but there are other options as well that we’re considering,” said the official, who spoke on condition of anonymity, declining to outline other options.

The delay is costing the Biden team access to millions of dollars in federal funding and the ability to meet with officials at intelligence agencies and other departments

The transition team needs to be recognized to access funds for salaries, consultants and travel, as well as access to classified information, the official said.

In addition, the team has no access to the State Department, which usually facilitates calls between foreign leaders and the president-elect, the official said.

A senior administration official said the agency did not approve the start of a formal transition process in 2000 for five weeks while Republican George W. Bush and Democrat Al Gore battled over an election that came down to just hundreds of votes in Florida.

(Reporting by Simon Lewis and Tim Reid; Additional reporting by Trevor Hunnicutt and Andrea Shalal; Editing by Kim Coghill and Peter Cooney)

Iran frees 157 detained during protests as more U.S. sanctions loom

DUBAI (Reuters) – Iran has freed 157 people arrested during anti-government demonstrations, the country’s judiciary said on Tuesday, as the United States appeared poised to impose sanctions on Iranians involved in a violent crackdown on the protesters.

Three sources familiar with the matter told Reuters on Monday the United States was expected to launch the sanctions as early as next week, coinciding with the one-year anniversary of what may have been the bloodiest repression of protesters in Iran since the 1979 Islamic Revolution.

Iranian judiciary spokesman Gholamhossein Esmaili said the 157 “security detainees” were among 2,301 people freed under a pardon by Supreme Leader Ayatollah Ali Khamenei as part of events marking the anniversary of the birth of the Prophet Mohammad, state media reported.

The 157 detainees had been convicted of “propaganda against the system, (illegal) assembly and collusion, and taking part in riots” after being arrested in anti-government protests in recent years, the judiciary spokesman said.

Human rights groups estimate that thousands were arrested in the 2019 protests, which broke out over gasoline price hikes and quickly turned political, with protesters demanding that top officials step down.

Meanwhile, government spokesman Ali Rabiei said Iranians would stand firm against any sanctions by U.S. President Donald Trump and expressed hope President-elect Joe Biden would change U.S. foreign policy.

“We closely follow the future U.S. administration’s activities and know that Mr. Biden has promised the American people that he will restore multilateralism and legitimacy,” state media quoted Rabiei as saying.

The sources said the new U.S. sanctions had been in the works for months and were the latest in a long series of penalties imposed on Tehran by Trump after he pulled Washington out of Iran’s 2015 nuclear deal with world powers in 2018.

(Reporting by Dubai newsroom; Editing by Gareth Jones and Mark Heinrich)

U.S. Supreme Court justices appear unlikely to throw out Obamacare

By Lawrence Hurley and Andrew Chung

WASHINGTON (Reuters) – U.S. Supreme Court justices on Tuesday signaled they are unlikely to strike down the Obamacare healthcare law in a legal challenge brought by Texas and 17 other Republican-governed states and joined by President Donald Trump’s administration.

Chief Justice John Roberts and fellow conservative Brett Kavanaugh indicated skepticism during two hours of arguments in the case toward the stance by the Republican challengers that the entire law must fall if a single key provision, called the individual mandate, is deemed unconstitutional.

That provision originally required people to obtain insurance or pay a financial penalty. Trump signed a law in 2017 that erased the penalty, a change that Republicans then argued eliminated the constitutional justification for the provision as permissible under the power of Congress to levy taxes.

Roberts asked questions suggesting that because Congress did not repeal the entire law, formally known as the Affordable Care Act (ACA), when it eliminated the penalty, all of Obamacare should not be invalidated due to this one change.

If Roberts and Kavanaugh join the court’s three liberals in the court’s eventual ruling due by the end of June, the bulk of Obamacare would survive.

“It’s hard for you to argue that Congress intended the entire act to fall if the mandate was struck down,” said Roberts, who authored 2012 and 2015 rulings that upheld Obamacare in previous Republican legal challenges.

The case represents the latest Republican legal attack on the 2010 law, Democratic former President Barack Obama’s signature domestic policy achievement. Republicans also have failed numerous times to repeal Obamacare in Congress, though Trump’s administration has taken steps to hobble the law.

The justices heard arguments by teleconference in an appeal by a coalition of 20 states including Democratic-governed California and New York and the Democratic-controlled House of Representatives hoping to preserve Obamacare. The court, with three Trump appointees including Kavanaugh, has a 6-3 conservative majority.

After the arguments, President-elect Joe Biden, who served as Obama’s vice president, criticized the “right-wing ideologues” who pursued the “simply cruel and needlessly divisive” litigation.

“This argument will determine whether (the) healthcare coverage of more than 20 million Americans who acquired it under the Affordable Care Act will be ripped away in the middle of the nation’s worst pandemic in a century,” Biden told reporters in Delaware.

Citing a “moral obligation to ensure that here in America healthcare is a right for all and not a privilege for a few,” Biden promised to start building on the Affordable Care Act immediately after succeeding Trump on Jan. 20.

Obamacare expanded public healthcare programs and created marketplaces for private insurance. Without Obamacare, Biden noted, insurers could once again refuse to cover people with any pre-existing medical conditions such as diabetes, cancer, asthma or complications from COVID-19.

Roberts and Kavanaugh appeared to agree that the mandate to obtain insurance can be separated from the rest of the law.

“We ask ourselves whether Congress would want the rest of the law to survive if an unconstitutional provision were severed,” Roberts said.

The fact that Congress in 2017 left the rest of the law intact “seems to be compelling evidence,” Roberts added.

Kavanaugh added that “this is a fairly straightforward case for severability under our precedents, meaning that we would excise the mandate and leave the rest of the act in place.”

LEGAL STANDING

The justices – conservatives and liberals alike – raised questions over whether Texas and the other challengers had the proper legal standing to bring the case, worrying about similar scenarios in which someone might be able to sue over some other government mandate when no penalty exists.

Roberts said such a stance “expands standing dramatically” by enabling people to challenge a whole host of laws without experiencing direct harm.

Justice Amy Coney Barrett, Trump’s most recent appointee, asked skeptical questions about legal standing. Democrats, ahead of Barrett’s Senate confirmation last month, focused their opposition to her appointment on the Obamacare case, fearing she would vote to strike down the law. Her questions did not indicate she would.

Trump’s third appointee, Justice Neil Gorsuch, asked probing questions on standing, though he sounded skeptical about the individual mandate’s constitutionality.

The 2012 ruling authored by Roberts defined the individual mandate’s financial penalty as a tax, thus finding the law permissible under the Constitution’s provision empowering Congress to levy taxes.

The 2017 Republican-backed change eliminating the penalty meant the individual mandate could no longer be interpreted as a tax provision and was therefore unconstitutional, the Republican challengers argued in their lawsuit filed in 2018.

Texas-based U.S. District Court Judge Reed O’Connor in 2018 ruled that Obamacare was unconstitutional as currently structured following the elimination of the penalty.

The New Orleans-based 5th U.S. Circuit Court of Appeals last year also found the mandate unconstitutional but stopped short of striking down Obamacare. The Democratic-led states and House then appealed to the Supreme Court.

(Reporting by Lawrence Hurley and Andrew Chung; Editing by Will Dunham

Republicans back Trump’s right to challenge Biden victory

By Steve Holland and Simon Lewis

WASHINGTON/WILMINGTON, Del. (Reuters) – President Donald Trump will push ahead on Tuesday with longshot legal challenges to his election loss, as Republican U.S. lawmakers and state officials defended his right to do so.

Pennsylvania Republican state lawmakers called for an audit of results in the state that on Saturday enabled Democrat Joe Biden to secure the more than 270 votes in the Electoral College he needed to win the presidency.

Biden, the president-elect due to take office on Jan. 20, 2021, also leads Trump in the popular vote by more than 4.6 million votes, according to the latest count of ballots.

Trump has made baseless claims that fraud was marring the results. The count has been delayed by a surge in mail-in ballots prompted by voters’ desire to avoid infection from the coronavirus pandemic.

Judges have tossed out lawsuits in Michigan and Georgia, and experts say Trump’s legal efforts have little chance of changing the election result.

The leading Republican in Congress, Senate Majority Leader Mitch McConnell, on Monday carefully backed Trump, saying that he was “100% within his rights to look into allegations of irregularities,” without citing any evidence.

McConnell’s comments represent the thinking of most Senate Republicans for now, said a senior Senate Republican aide. “The position is tenable until it isn’t and might last for a week or two before it becomes untenable,” the aide said.

The dispute has slowed Biden’s preparations for governing.

A Trump appointee who heads the office charged with recognizing election results has yet to do so, preventing the Biden transition team from moving into federal government office space or accessing funds to hire staff.

The General Services Administrator Emily Murphy, appointed by Trump in 2017, has yet to determine that “a winner is clear,” a spokeswoman said. Biden’s team is considering legal action.

BARR MOVE PROMPTS RESIGNATION

U.S. Attorney General William Barr on Monday told federal prosecutors to “pursue substantial allegations” of irregularities of voting and the counting of ballots.

He also told them that “fanciful or far-fetched claims” should not be a basis for investigation. His letter did not indicate the Justice Department had uncovered voting irregularities affecting the outcome of the election.

Richard Pilger, who for years has served as director of the Election Crimes Branch in the Justice Department, said in an internal email he was resigning from his post after he read “the new policy and its ramifications”.

The previous Justice Department policy, designed to avoid interjecting the federal government into election campaigns, had discouraged overt investigations “until the election in question has been concluded, its results certified, and all recounts and election contests concluded.”

Biden’s campaign said Barr was fueling Trump’s far-fetched allegations of fraud.

“Those are the very kind of claims that the president and his lawyers are making unsuccessfully every day, as their lawsuits are laughed out of one court after another,” said Bob Bauer, a senior adviser to Biden.

A bipartisan group of six former U.S. Justice Department officials blasted Barr’s move.

“The voters decide the winner in an election, not the President, and not the Attorney General,” wrote the group, which includes Don Ayer, a deputy attorney general under former President George H.W. Bush.

“We have seen absolutely no evidence of anything that should get in the way of certification of the results, which is something the states handle, not the federal government.”

REPUBLICANS REMAIN LOYAL

Although a few Republicans have urged Trump to concede, the president still had the support of prominent party leaders who had yet to congratulate Biden.

Trump’s campaign on Monday filed a lawsuit to block Pennsylvania officials from certifying Biden’s victory in the battleground state, where the Democrat’s lead grew to more than 45,000 votes, or nearly 0.7 percentage points, with 98% of ballots counted on Tuesday morning.

It alleged the state’s mail-in voting system violated the U.S. Constitution by creating “an illegal two-tiered voting system” where voting in person was subject to more oversight than voting by mail.

“The Trump campaign’s latest filing is another attempt to throw out legal votes,” Pennsylvania Attorney General Josh Shapiro, a Democrat, said on Twitter.

Pennsylvania state Representative Dawn Keefer led a group of Republican state lawmakers on Tuesday in calling for a bipartisan investigation with subpoena powers to see if the “election was conducted fairly and lawfully.”

Asked about any evidence of fraud, Keefer told reporters, “We’ve just gotten a lot of allegations,” adding that “they’re too in the weeds” for her to know more without investigating.

Biden will give a speech on Tuesday defending the Affordable Care Act, the landmark healthcare law popularly known as Obamacare, as the U.S. Supreme Court heard arguments on a lawsuit backed by the Trump administration to invalidate it.

(Additional reporting by Steve Holland, Richard Cowan, Jan Wolfe, Sarah N. Lynch and Doina Chiacu in Washington, Simon Lewis in Wilmington, Delaware; Writing by John Whitesides; Editing by Scott Malone, Angus MacSwan, Chizu Nomiyama and Howard Goller

Trump says he has fired Defense Secretary Mark Esper

By Phil Stewart and Idrees Ali

WASHINGTON (Reuters) – U.S. President Donald Trump said on Monday that he had “terminated” Defense Secretary Mark Esper, appearing to use his final months in office after his Nov. 3 election defeat to settle scores within his administration.

Trump, who publicly split with Esper in recent months over a range of issues, said on Twitter that Christopher Miller, director of the National Counterterrorism Center, will become acting secretary of defense. The Senate would be highly unlikely to confirm any new nominee before Trump leaves office in January.

“Mark Esper has been terminated,” Trump said on Twitter. “I am pleased to announce that Christopher C. Miller, the highly respected Director of the National Counterterrorism Center (unanimously confirmed by the Senate), will be Acting Secretary of Defense, effective immediately.”

The Pentagon had no immediate comment.

Esper had long been preparing for the prospect of his resignation or dismissal following the Nov. 3 election, particularly if Trump were to win a second term in office, sources said.

Trump has steadfastly refused to acknowledge his election loss.

Esper angered Trump particularly by opposing Trump’s threat to use active duty troops to suppress street protests over racial injustice in the United States during the summer.

Esper also disagreed with Trump’s dismissive attitude toward the NATO alliance, sources said.

(Additional reporting by Daphne Psaledakis and Susan Heavey; Editing by Tim Ahmann and Cynthia Osterman)

Biden convenes U.S. pandemic task force, implores Americans to wear masks

By Simon Lewis

WILMINGTON, Del. (Reuters) – U.S. President-elect Joe Biden implored Americans on Monday to wear protective masks to combat the coronavirus pandemic, appealing to their patriotism, as he convened a task force to devise a blueprint for tackling the public health crisis.

“We could save tens of thousands of lives if everyone would just wear a mask for the next few months. Not Democratic or Republican lives. American lives,” Biden told reporters in Wilmington, Delaware. “I implore you. Wear a mask. Do it for yourself. Do it for your neighbor. A mask is not a political statement.”

The pandemic has killed more than 237,000 Americans and thrown millions out of work. Biden spoke two days after clinching election victory over Donald Trump, though the Republican president has not acknowledged defeat and is pursuing legal challenges to the results while making unfounded claims of fraud.

Biden, set to take office on Jan. 20, conferred by video with his 13-member task force, headed by former U.S. Surgeon General Vivek Murthy, former Food and Drug Administration Commissioner David Kessler and Yale University healthcare equity expert Marcella Nunez-Smith.

The president-elect labeled as “great news” Pfizer Inc’s announcement on Monday that its experimental COVID-19 vaccine was more than 90% effective. But Biden said it would be “many more months before there is widespread vaccination” in the United States and underscored the importance of wearing protective masks and social distancing.

The United States has been registering record high infection numbers in recent days. Mask wearing has become a political issue in the United States, with Trump mocking Biden for wearing a mask during the campaign and many conservatives contending masks infringe upon their individual freedom.

“The goal is to get back to normal as fast as possible,” Biden said. “And masks are critical in doing that. It won’t be forever. But that’s how we’ll get our nation back up to speed economically, so we can go back to celebrating birthdays and holidays together, so we can attend sporting events together, so that we can get back to the lives and connections we shared before the pandemic.”

Biden during the campaign accused Trump of panicking and surrendering to the pandemic. Trump promoted unproven medicines, assailed public health experts, failed to signal empathy or compassion as the death toll mounted and disregarded advice on mask wearing and social distancing, ending up hospitalized in October receiving treatments for COVID-19.

Housing Secretary Ben Carson on Monday became the latest close Trump associate to test positive for the virus, his chief of staff said, just days after White House Chief of Staff Mark Meadows also tested positive.

Pfizer and German partner BioNTech SE are the first drugmakers to release successful data from a large-scale clinical trial of a vaccine for the novel coronavirus.

Biden said his team will focus on making rapid COVID-19 testing widely available and building a corps of contact-tracers to track and curb the pathogen’s spread and prioritize vulnerable populations. Biden said his administration would work to get an approved vaccine “distributed as quickly as possible to as many Americans as possible, free of charge.”

The task force will liaise with local and state officials to consider how to safely reopen schools and businesses and tackle racial disparities.

The Biden panel includes Rick Bright, a whistleblower who says he was removed from his Trump administration post for raising concerns about coronavirus preparedness, and Luciana Borio, who specializes in complex public health emergencies.

Vice President Mike Pence is due to meet on Monday with the White House coronavirus task force for the first time since October.

Biden cleared the threshold of 270 Electoral College votes needed to win the presidency on Saturday, four days after the Nov. 3 election. He beat Trump by more than 4.3 million votes nationwide, with Trump becoming the first U.S. president since 1992 to lose a re-election bid.

TRUMP DOES NOT BUDGE

Trump has often attacked the integrity of the U.S. voting process without offering evidence. Some of his allies have encouraged him to exhaust every recourse for hanging onto power. He has filed an array of lawsuits to press his claims and plans rallies to build support for his election challenge, campaign spokesman Tim Murtaugh said.

Asked when Trump would concede or call Biden, Trump campaign adviser Jason Miller on Monday told Fox Business Network: “That word’s not even in our vocabulary now. We’re going to pursue all these legal means, all the recount methods.”

Trump has been talking with his advisers about the possibility of running for president in 2024, a source familiar with the discussions said.

Trump campaign manager Bill Stepien held an all-staff meeting at campaign headquarters on Monday to give the message that Trump is “still in this fight,” a source familiar with the meeting said. The source said the meeting was aimed at bolstering morale given that the last paycheck everyone is to receive is on Nov. 15.

Governments from around the world have congratulated Biden since Saturday, signaling they are turning the page.

Russia, which U.S. intelligence agencies have said interfered in the 2016 election to support Trump and then sought to disparage Biden in this year’s race, said on Monday it would wait for the official results before commenting, noting Trump’s legal challenges. China was similarly cautious.

(Reporting by Andy Sullivan and Andrea Shalal in Washington and Simon Lewis and Trevor Hunnicutt in Wilmington, Delaware; Additional reporting by Jason Lange, Susan Heavey, Doina Chiacu, Makini Brice, Alexandra Alper and Steve Holland in Washington and Costas Pitas in London; Writing by Will Dunham and Andy Sullivan; Editing by Scott Malone, Catherine Evans and Grant McCool)

Conservative U.S. Supreme Court prepares to hear Obamacare challenge

By Lawrence Hurley

WASHINGTON (Reuters) – The U.S. Supreme Court on Tuesday is set to hear arguments in a bid by Republican-governed states backed by President Donald Trump’s administration to strike down the Obamacare healthcare law, even as Joe Biden prepares to replace Trump in January.

Key priorities set by the Democratic president-elect included expanding healthcare access and buttressing Obamacare, the 2010 law formally called the Affordable Care Act that Republicans for years have sought to invalidate. The law was the signature domestic policy achievement of former President Barack Obama, under whom Biden served as vice president.

Although the court now has a 6-3 conservative majority bolstered by the Senate confirmation last month of Trump’s third appointee, Amy Coney Barrett, most legal experts think it would stop short of a seismic ruling striking down the law. The Supreme Court in 2012 and 2015 fended off previous Republican challenges to Obamacare.

Biden and other Democrats have criticized Republican efforts to strike down the law in the midst of a deadly coronavirus pandemic.

If Obamacare were to be struck down, up to 20 million Americans could lose their medical insurance and insurers could once again refuse to cover people with pre-existing medical conditions. Obamacare expanded public healthcare programs and created marketplaces for private insurance.

“Abolishing the Affordable Care Act would be deeply damaging to the American health care system and public health,” Georges Benjamin, executive director of the nonprofit American Public Health Association, said in a statement.

The justices will hear an expanded 80-minute oral argument by teleconference due to the pandemic.

The impetus for the Supreme Court case was a 2018 ruling by a federal judge in Texas that Obamacare as currently structured in light of a key Republican-backed change made by Congress violates the U.S. Constitution and is invalid in its entirety.

The justices in March agreed to hear an appeal filed by a coalition of Democratic-led states and the Democratic-controlled House of Representatives defending Obamacare.

They asked the justices to overturn a ruling by the New Orleans-based 5th U.S. Circuit Court of Appeals that declared that the law’s “individual mandate” that required people to obtain health insurance ran afoul of the Constitution. Republican states led by Texas and backed by Trump’s administration have asked the justices to throw out the law.

If the individual mandate is struck down “then it necessarily follows that the rest of the ACA must also fall,” Trump administration’s lawyers argued in court papers.

The Supreme Court in 2012 upheld most Obamacare provisions including the individual mandate, which required people to obtain insurance or pay a financial penalty. The court defined this penalty as a tax and thus found the law permissible under the Constitution’s provision empowering Congress to levy taxes.

In 2017, Trump signed a Republican-backed law tax that eliminated the financial penalty under the individual mandate, which gave rise to the Republican lawsuit. The tax law meant the individual mandate could no longer be interpreted as a tax provision and was therefore unlawful, the Republican challengers argued.

Democrats made the Republican threat to Obamacare a central feature of their opposition to Barrett’s confirmation to replace the late liberal Justice Ruth Bader Ginsburg.

Barrett, when she was a law professor, previously indicated she backed the challengers in the two previous Obamacare cases that reached the Supreme Court.

In recent cases with conservative justices in the majority, the court has declined to strike down an entire statute just because one part was unlawful.

“Constitutional litigation is not a game of gotcha against Congress, where litigants can ride a discrete constitutional flaw in a statute to take down the whole, otherwise constitutional statute,” conservative Justice Brett Kavanaugh, another Trump appointee, wrote in a ruling earlier this year.

(Reporting by Lawrence Hurley; Editing by Will Dunham)

President-elect Biden’s hopes for Democratic agenda hang on Georgia runoffs

By Susan Cornwell

WASHINGTON (Reuters) – President-elect Joe Biden’s hopes of enacting major Democratic priorities like expanding healthcare access, fighting climate change and providing more coronavirus aid are going to hang on a pair of U.S. Senate races in Georgia in January.

Democrats fell short of their goal of taking a Senate majority and actually lost seats in the House of Representatives, making Republicans well positioned to block major Biden legislative initiatives.

That leaves Biden’s party with the daunting task of trying to unseat two incumbent Republican senators in the traditionally Republican-leaning state, where Biden himself holds just a narrow lead over President Donald Trump as vote-counting continues.

“We take Georgia, then we change the world,” Senate Democratic Leader Chuck Schumer declared in New York on Saturday. Georgia’s Republican Governor Brian Kemp also heralded the high-stakes January voting, calling on Republicans to unite and saying “the fight is far from over.”

Republicans appear poised to hold at least 50 of the Senate’s 100 seats next year, presuming that leads in North Carolina and Alaska hold. That makes winning the two Georgia runoffs pivotal in getting control of the Senate for Democrats. Vice President-elect Kamala Harris would be able to cast the tie-breaking vote in the Senate.

Georgia Republican Senator David Perdue, who is seeking a second term, received 49.8 % of the vote, compared to Democrat Jon Ossoff, who got 47.9%.

In the other contest, Black Democrat Reverend Raphael Warnock got 32.9% to Republican Senator Kelly Loeffler’s 25.9%. A third Republican, Representative Doug Collins, failed to make the runoff after coming in third with 20%.

DEMOCRATS HAVE A CHANCE

Georgia has not elected a Democratic senator for two decades, but changing demographics and the gradually improving Democratic performances in recent contests suggest the party has a chance at winning the Jan. 5 runoffs, political scientists say.

But those odds will largely depend on keeping voters engaged, said Andra Gillespie, a professor of political science at Emory University.

“Whichever party has the better turnout operation is the one that wins,” Gillespie said.

Voter mobilization efforts have boosted Democrats’ fortunes, she said. Registration campaigns, like the one led by Stacey Abrams, who narrowly lost the governor’s race in 2018, helped register thousands. But it remains to be seen if Georgia voters will come out in January as they did for November’s election, which featured the presidential ticket.

Both Perdue and Loeffler are Trump allies. But Loeffler ran strongly to the right this year to defeat fellow Republican Collins.

She accepted an endorsement from Marjorie Taylor Greene, a Republican congresswoman-elect who has promoted the baseless pro-Trump conspiracy theory QAnon. Loeffler has posted photos with herself on Twitter with members of a private militia group, and has called the Black Lives Matter movement, which protests police violence and racial injustice, a “Marxist” group.

Amy Steigerwalt, a political science professor at Georgia State University, asked whether Loeffler’s actions might now work against her in the runoff with Warnock — and in turn pull Perdue down since both Republicans will be on the ballot at the same time.

“Will she get a boost on some level from Perdue also running? … Or is it possible that now that there is more attention given to her and given to some of the positions that she took, that (could) honestly harm both of the Republican candidates?” Steigerwalt said.

“Democratic voters in particular in the exit polls mentioned that one of the main things that caused them to turn out was racial justice,” Steigerwalt said.

BIDEN GOALS AT STAKE

Biden’s cabinet picks and policy proposals would face choppy water if Republicans maintain a Senate majority. He pledged to strengthen and build on the Obamacare healthcare program. He also campaigned on a multi-trillion-dollar plan to curb carbon emissions and create jobs, and said he favored raising taxes on corporations and wealthy individuals.

Those goals would face stiff opposition with Republicans in charge of the Senate. There would likely be hard bargaining over any additional coronavirus aid, which a number of Republicans oppose.

On the other hand Biden, a former senator who campaigned as a centrist, has known the leader of the Senate Republicans, Majority Leader Mitch McConnell for years. They have struck deals together before, including an agreement to allow tax rates to rise on the wealthy late in 2012, when Biden was vice president. Last week, McConnell referred to Biden as an “old friend.”

“Look for him to drive long-standing priorities of his like infrastructure, where he could perhaps find support from a moderate Republican or two,” said Scott Mulhauser, a Democratic strategist who worked for Biden in the 2012 presidential election.

(Additional reporting by Andy Sullivan; Editing by Scott Malone and Aurora Ellis)

China, Russia hold off on congratulating Biden; U.S. allies rally round

By Cate Cadell and Dmitry Antonov

BEIJING/MOSCOW (Reuters) – China and Russia held off congratulating U.S. President-elect Joe Biden on Monday, with Beijing saying it would follow usual custom in its response and the Kremlin noting incumbent Donald Trump’s vow to pursue legal challenges.

Democrat Biden clinched enough states to win the presidency on Saturday and has begun making plans for when he takes office on Jan. 20. Trump has not conceded defeat and plans rallies to build support for legal challenges.

Some of the United States’ biggest and closest allies in Europe, the Middle East and Asia quickly congratulated Biden over the weekend despite Trump’s refusal to concede, as did some Trump allies, including Israel and Saudi Arabia.

German Chancellor Angela Merkel on Monday called for the European Union and United States to work “side by side,” holding up Biden as an experienced leader who knows Germany and Europe well and stressing the NATO allies’ shared values and interests.

Beijing and Moscow were cautious.

“We noticed that Mr. Biden has declared election victory,” China’s foreign ministry spokesman Wang Wenbin told a daily media briefing. “We understand that the U.S. presidential election result will be determined following U.S. law and procedures.”

In 2016, Chinese President Xi Jinping sent congratulations to Trump on Nov. 9, a day after the election.

Relations between China and the United States are at their worst in decades over disputes ranging from technology and trade to Hong Kong and the coronavirus, and the Trump administration has unleashed a barrage of sanctions against Beijing.

While Biden is expected to maintain a tough stance on China — he has called Xi a “thug” and vowed to lead a campaign to “pressure, isolate and punish China” — he is likely to take a more measured and multilateral approach.

Chinese state media struck an optimistic tone in editorials, saying relations could be restored to a state of greater predictability, starting with trade.

KREMLIN NOTES TRUMP’S LAW SUITS

The Kremlin said it would wait for the official results of the election before commenting, and that it had noted Trump’s announcement of legal challenges.

President Vladimir Putin has remained silent since Biden’s victory. In the run-up to the vote, Putin had appeared to hedge his bets, frowning on Biden’s anti-Russian rhetoric but welcoming his comments on nuclear arms control. Putin had also defended Biden’s son, Hunter, against criticism from Trump.

“We think it appropriate to wait for the official vote count,” Kremlin spokesman Dmitry Peskov told reporters on a conference call.

Biden cleared the threshold of 270 Electoral College votes needed to win the White House on Saturday, four days after the Nov. 3 election. He beat Trump by more than 4 million votes nationwide, making Trump the first president since 1992 to lose re-election.

Asked why, in 2016, Putin had congratulated Trump soon after he had won the Electoral College and beaten Democrat Hillary Clinton, Peskov said there was an obvious difference.

“You can see that there are certain legal procedures that have been announced by the current president. That is why the situations are different and we therefore think it appropriate to wait for an official announcement,” he said.

Peskov noted that Putin had repeatedly said he was ready to work with any U.S. leader and that Russia hoped it could establish dialogue with a new U.S. administration and find a way to normalize troubled bilateral relations.

Moscow’s ties with Washington sank to post-Cold War lows in 2014 when Russia annexed Crimea from Ukraine. Biden was serving as vice president under President Barack Obama at the time.

Relations soured further over U.S. allegations that Moscow had meddled in the 2016 U.S. presidential election to try to tilt the vote in Trump’s favor, something the Kremlin denied.

(Additional reporting by Brenda Goh, Tony Munroe and Lusha Zhang in Beijing; Darya Korsunskaya and Gabrielle Tétrault-Farber in Moscow; Sabine Siebold in Berlin; Editing by Nick Tattersall and Catherine Evans)

‘Great day for humanity’: Pfizer says COVID-19 vaccine over 90% effective

By Michael Erman and Julie Steenhuysen

(Reuters) – Pfizer Inc’s experimental COVID-19 vaccine is more than 90% effective based on initial trial results, the drugmaker said on Monday, a major victory in the war against a virus that has killed over a million people and battered the world’s economy.

Experts welcomed the first successful interim data from a large-scale clinical test as a watershed moment that showed vaccines could help halt the pandemic, although mass roll-outs, which needs regulatory approval, will not happen this year.

Pfizer and German partner BioNTech SE said they had found no serious safety concerns yet and expected to seek U.S. authorization this month for emergency use of the vaccine, raising the chance of a regulatory decision as soon as December.

If granted, the companies estimate they can roll out up to 50 million doses this year, enough to protect 25 million people, and then produce up to 1.3 billion doses in 2021.

“Today is a great day for science and humanity,” said Pfizer Chief Executive Albert Bourla.

“We are reaching this critical milestone in our vaccine development program at a time when the world needs it most with infection rates setting new records, hospitals nearing over-capacity and economies struggling to reopen,” he said.

Experts said they still wanted to see the full trial data, which have yet to be peer-reviewed or published in a medical journal, but the preliminary results looked encouraging.

“This news made me smile from ear to ear. It is a relief to see such positive results on this vaccine and bodes well for COVID-19 vaccines in general,” said Peter Horby, professor of emerging infectious diseases at the University of Oxford.

There are still many questions, such as how effective the vaccine is by ethnicity or age, and how long it will provide immunity, with the “new normal” of social distancing and face covering set to remain for the foreseeable future.

Pfizer expects to seek U.S. emergency use authorization for people aged 16 to 85. To do so, it will need two months of safety data from about half the study’s 44,000 participants, which is expected in the third week of November.

U.S. Health and Human Services Secretary Alex Azar said it would take several weeks for U.S. regulators to receive and process data on the vaccine before the government could potentially approve it.

MARKETS SURGE

The prospect of a vaccine electrified world markets with the S&P 500 and Dow hitting record highs as shares of banks, oil companies and travel companies soared. Shares in companies that have thrived during lockdowns, such as conferencing platform Zoom Video and online retailers, tumbled.

Pfizer shares jumped more than 11% to their highest since July last year, while BioNTech’s stock hit a record high.

Shares of other vaccine developers in the final stage of testing also rose with Johnson & Johnson up 4% and Moderna Inc, whose vaccine uses a similar technology as the Pfizer shot, up 8%. Britain’s AstraZeneca, however, fell 2%. Moderna is expected to report results from its large-scale trial later this month.

“The efficacy data are really impressive. This is better than most of us anticipated,” said William Schaffner, infectious diseases expert at Vanderbilt University School of Medicine in Nashville, Tennessee. “The study isn’t completed yet, but nonetheless the data look very solid.”

U.S. President Donald Trump welcomed the test results, and the market boost: “STOCK MARKET UP BIG, VACCINE COMING SOON. REPORT 90% EFFECTIVE. SUCH GREAT NEWS!” he tweeted.

President-elect Joe Biden said the news was excellent but did not change the fact that face masks, social distancing and other health measures would be needed well into next year.

The World Health Organization said the results were very positive, but warned there was a funding gap of $4.5 billion that could slow access to tests, medicines and vaccines in low- and middle-income countries.

‘NEAR ECSTATIC’

“I’m near ecstatic,” Bill Gruber, one of Pfizer’s top vaccine scientists, said in an interview. “This is a great day for public health and for the potential to get us all out of the circumstances we’re now in.”

Between 55% and 65% of the population will need to be vaccinated to break the dynamic of the spread of COVID-19, said Germany’s health minister Jens Spahn, adding that he did not expect a shot to be available before the first quarter of 2021.

The European Union said on Monday it would soon sign a contract for up to 300 million doses of the Pfizer and BioNTech COVID-19 vaccine.

The companies have a $1.95 billion contract with the U.S. government to deliver 100 million vaccine doses beginning this year. They did not receive research funding from the Trump administration’s Operation Warp Speed vaccine program.

The drugmakers have also reached supply agreements with the United Kingdom, Canada and Japan.

Pfizer said the interim analysis, conducted after 94 participants in the trial developed COVID-19, examined how many had received the vaccine versus a placebo.

Pfizer did not break down how many of those who fell ill received the vaccine. Still, over 90% effectiveness implies that no more than 8 of the 94 had been given the vaccine, which was administered in two shots about three weeks apart.

The efficacy rate, which could drop once full results are available, is well above the 50% effectiveness required by the U.S. Food and Drug Administration for a coronavirus vaccine.

Shortly after Pfizer’s announcement, Russia said its Sputnik V vaccine was also more than 90% effective, based on data collated from inoculations of the public. Its preliminary Phase III trial data is due to be published this month.

MORE DATA NEEDED

To confirm the efficacy rate, Pfizer said it would continue its trial until there were 164 COVID-19 cases among volunteers. Bourla told CNBC on Monday that based on rising infection rates, the trial could be completed before the end of November.

Pfizer said its data would be peer reviewed once it has results from the entire trial.

“These are interesting first signals, but again they are only communicated in press releases,” said Marylyn Addo, head of tropical medicine at the University Medical Center Hamburg-Eppendorf in Germany.

Dozens of drugmakers and research groups around the globe have been racing to develop vaccines against COVID-19, which on Sunday exceeded 50 million cases since the new coronavirus first emerged late last year in China.

The Pfizer and BioNTech vaccine uses messenger RNA (mRNA) technology, which relies on synthetic genes that can be generated and manufactured in weeks, and produced at scale more rapidly than conventional vaccines. The technology is designed to trigger an immune response without using pathogens, such as actual virus particles.

The Trump administration has said it will have enough vaccine doses for all of the 330 million U.S. residents who want it by the middle of 2021.

(Reporting by Michael Erman and Julie Steenhuysen; Additional reporting by Michele Gershberg in New York, Ludwig Burger and Patricia Weiss in Frankfurt and Kate Kelland in London; Editing by Bill Berkrot, Caroline Humer, Edwina Gibbs and David Clarke)