Monkeypox outbreak is now a global health emergency — WHO

July 24, 2022 | 5:24 pm

THE RAPIDLY spreading monkeypox outbreak represents a global health emergency, the World Health Organization’s highest level of alert, WHO Director-General Tedros Adhanom Ghebreyesus said on Saturday.

The WHO label — a “public health emergency of international concern (PHEIC)” — is designed to trigger a coordinated international response and could unlock funding to collaborate on sharing vaccines and treatments.

Members of an expert committee that met on Thursday to discuss the potential recommendation were split on the decision, with nine members against and six in favor of the declaration, prompting Tedros himself to break the deadlock, he told reporters.

“Although I am declaring a public health emergency of international concern, for the moment this is an outbreak that is concentrated among men who have sex with men, especially those with multiple sexual partners,” Mr. Tedros told a media briefing in Geneva.

“Stigma and discrimination can be as dangerous as any virus,” he added.

He said the risk of monkeypox — which spreads via close contact and tends to cause flu-like symptoms and pus-filled skin lesions — was moderate globally, except in Europe, where the WHO has deemed the risk as high.

The White House said the declaration was a “call to action for the world community to stop the spread of this virus.” Raj Panjabi, director of the White House pandemic preparedness office, said a “coordinated, international response is essential” to stop the spread of the disease and protect communities at the greatest risk of contracting it.

Previously, Mr. Tedros has typically endorsed expert committee recommendations, but two sources told Reuters earlier on Saturday said he had likely decided to back the highest alert level due to concerns about escalating case rates and a short supply of vaccines and treatments.

So far this year, there have been more than 16,000 cases of monkeypox in more than 75 countries, and five deaths in Africa.

The viral disease has been spreading chiefly in men who have sex with men in the recent outbreak, outside Africa where it is endemic.

Health experts welcomed the WHO’s decision to issue the PHEIC declaration, which until now had only been applied to the coronavirus pandemic and ongoing efforts to eradicate polio.

“The right result is clear — not declaring an emergency at this point would be a historic missed opportunity,” said Lawrence Gostin, a professor at Georgetown Law in Washington, D.C., calling the decision politically brave.

The decision should help contain the spread of the viral disease, said Josie Golding, head of epidemics and epidemiology at the Wellcome Trust.

“We cannot afford to keep waiting for diseases to escalate before we intervene,” she said.

JUNE MEETING
The WHO and national governments have been facing intense pressure from scientists and public health experts to take more action on monkeypox.

Cases of the viral disease have ballooned since the committee first met at the end of June, when there were only about 3,000 cases.

At the time, the expert group agreed to reconsider their position on the emergency declaration if the outbreak escalated.

One of the key issues driving a reassessment was whether cases would spread to other groups, particularly children or others who have been vulnerable to the virus in past outbreaks in endemic countries.

On Friday, the United States identified its first two monkeypox cases in children.

WHO officials said on Saturday they were exploring the possibility of the virus spreading via new modes of transmission. — Reuters

China heightens warning to US over possible Pelosi visit to Taiwan

July 24, 2022 | 5:23 pm

CHINA has issued stark private warnings to the Biden administration about a possible trip to Taiwan in August by US House of Representatives Speaker Nancy Pelosi, the Financial Times reported on Saturday.

The report cited six people familiar with the Chinese warnings as saying they were significantly stronger than the threats that Beijing has made in the past when it was unhappy with US actions or policy on Taiwan, which is claimed by China.

The private rhetoric suggested a possible military response, the Financial Times cited several people familiar with the situation as saying.

The White House National Security Council and the State Department declined to comment on the report. China’s foreign ministry did not immediately respond to a Reuters request for comment on Sunday.

China has been stepping up military activity around Taiwan seeking to pressure the democratically elected government there to accept Chinese sovereignty. Taiwan’s government says only the island’s 23 million people can decide their future, and while it wants peace, will defend itself if attacked.

The Financial Times reported on Monday that Ms. Pelosi plans to visit Taiwan in August.

China’s foreign ministry said the next day a visit to Taiwan by her would seriously undermine China’s sovereignty and territorial integrity, and the United States would bear the consequences of its response.

On Wednesday, US President Joseph R. Biden said he plans to speak with Chinese President Xi Jinping by the end of the month. Mr. Biden appeared to cast doubt on the reported Pelosi trip to Taiwan.

“I think that the military thinks it’s not a good idea right now, but I don’t know what the status of it is,” Mr. Biden told reporters. — Reuters

Russian missiles hit Ukraine’s southern port

July 24, 2022 | 5:23 pm

KYIV — Russian missiles hit Ukraine’s southern port of Odesa on Saturday, the Ukrainian military said, threatening a deal signed just a day earlier to unblock grain exports from Black Sea ports and ease global food shortages caused by the war.

Ukrainian President Volodymyr Zelensky called the strike blatant “barbarism” showing Moscow could not be trusted to implement the deal. However, public broadcaster Suspilne quoted the Ukrainian military as saying the missiles had not caused significant damage and a government minister said preparations continued to restart grain exports from Black Sea ports.

The deal signed on Friday by Moscow and Kyiv and mediated by the United Nations and Turkey was hailed as a breakthrough after nearly five months of punishing fighting since Russia invaded its neighbor. It is seen as crucial to curbing soaring global food prices by allowing grain exports to be shipped from Black Sea ports including Odesa.

The strikes on Odesa drew strong condemnation from the United Nations, the European Union, the United States, Britain, Germany and Italy. On Friday, U.N. officials said they hoped the agreement would be operational in a few weeks. Read full story

Turkey’s defense minister said Russian officials told Ankara that Moscow had “nothing to do” with the strikes. Neither Russian defense ministry statements nor the military’s evening summary mentioned missile strikes in Odesa. The ministry did not reply to a Reuters request for comment.

Two Russian Kalibr missiles hit the area of a pumping station at the port; two others were shot down by air defense forces, according to Ukraine’s military. Ukrainian air force spokesperson Yuriy Ignat said the missiles were fired from warships in the Black Sea near Crimea.

Suspilne quoted Ukraine’s southern military command as saying the port’s grain storage area was not hit.

“Unfortunately there are wounded. The port’s infrastructure was damaged,” said Odesa region governor Maksym Marchenko.

But Infrastructure Minister Oleksandr Kubrakov said on Facebook that “we continue technical preparations for the launch of exports of agricultural products from our ports”.

The strike appeared to violate Friday’s deal, which would allow safe passage in and out of Ukrainian ports.

“If anyone in the world could have said before this that some kind of dialogue with Russia, some kind of agreements, would be necessary, look at what is happening,” Zelensky said in a late-night video.

He vowed to do everything possible to acquire air defense systems able to shoot down missiles like those that hit Odesa.

US Secretary of State Antony Blinken said in a statement that “this attack casts serious doubt on the credibility of Russia’s commitment to yesterday’s deal.”

“Russia bears responsibility for deepening the global food crisis and must stop its aggression,” he added.

U.N. Secretary-General Antonio Guterres “unequivocally condemned” the strikes, a spokesperson said, adding full implementation of the deal was imperative.

Turkish Defense Minister Hulusai Akar said in a statement: “The Russians told us that they had absolutely nothing to do with this attack … The fact that such an incident took place right after the agreement we made yesterday really worried us.”

Ukraine foreign ministry spokesperson Oleg Nikolenko said on Facebook that “the Russian missile is (Russian President) Vladimir Putin’s spit in the face” of Mr. Guterres and Turkish President Tayyip Erdogan.

Moscow has denied responsibility for the food crisis, blaming Western sanctions for slowing its food and fertilizer exports and Ukraine for mining the approaches to its ports.

A blockade of Ukrainian ports by Russia’s Black Sea fleet since Moscow’s Feb. 24 invasion has trapped tens of millions of tons of grain and stranded many ships.

This has worsened global supply chain bottlenecks. Along with Western sanctions on Russia, it has stoked food and energy price inflation. Russia and Ukraine are major global wheat suppliers and a global food crisis has pushed some 47 million people into “acute hunger,” according to the World Food Programme.

The deal would restore grain shipments from the three reopened ports to pre-war levels of 5 million tons a month, U.N. officials said. — Reuters

Russian oligarchs’ citizenship bids face scrutiny in Portugal

July 24, 2022 | 5:22 pm

LISBON-unsplash — ANDRE LERGIER-UNSPLASH

LISBON — Portugal is analyzing the citizenship applications of two Russian oligarchs — one of whom is under US sanctions, the government said late on Friday, as a law granting passports to descendants of Sephardic Jews faces growing scrutiny.

Russian-Israeli diamond oligarch Lev Leviev and Russian property developer God Nisanov are the latest high-profile Russians known to have applied for citizenship under the legislation.

US Secretary of State Antony Blinken said last month that Nisanov, who was hit by sanctions following Russia’s invasion of Ukraine, was “one of the richest men in Europe and a close associate of several Russian officials”.

The two men’s citizenship applications are “pending analysis”, Portugal’s Justice Ministry said in a statement, without giving further details. Representatives for Leviev and Nisanov did not immediately reply to requests for comment.

Sanctions-hit Russian billionaire Roman Abramovich was granted citizenship in April 2021 under the same law, a process that triggered an ongoing inquiry at a state agency and forced the government to tighten the rules.

Two years earlier, Russian businessman Andrei Rappoport, who has a net worth of $1.2 billion according to Forbes, also got a Portuguese passport.

Rappoport, whose representatives did not immediately reply to a request for comment, was identified by the US Treasury Department in 2018 as being close to Russian President Vladimir Putin.

A report in Portugal’s Publico newspaper on Wednesday said all four of the oligarchs had applied for Portuguese nationality through Porto’s Israeli Community (CIP), which was responsible for vetting their genealogies.

Police are investigating the CIP on suspicion of money laundering, corruption, fraud and falsification of documents.

In a statement on Friday, CIP said the accusations were “false” and all applicants complied with legal requirements to obtain the certificate needed to prove their ancestry. The final stamp of approval is given by the state.

Civic Front, an association that denounces wrongdoing in public life, said all pending nationality processes based on the law in question should be suspended until the state agency inquiry has concluded.

“It is increasingly evident that the naturalization of Roman Abramovich is not an isolated case,” it said in a letter to the justice minister this week.

A spokeswoman for Abramovich previously said he obtained citizenship “in accordance with the rules”. — Reuters

Google fires software engineer who claimed its AI chatbot is sentient

July 24, 2022 | 5:20 pm

ALPHABET, INC.’s Google said on Friday it has dismissed a senior software engineer who claimed the company’s artificial intelligence (AI) chatbot LaMDA was a self-aware person.

Google, which placed software engineer Blake Lemoine on leave last month, said he had violated company policies and that it found his claims on LaMDA to be “wholly unfounded.”

“It’s regrettable that despite lengthy engagement on this topic, Blake still chose to persistently violate clear employment and data security policies that include the need to safeguard product information,” a Google spokesperson said in an email to Reuters.

Last year, Google said that LaMDA —Language Model for Dialogue Applications — was built on the company’s research showing Transformer-based language models trained on dialogue could learn to talk about essentially anything.

Google and many leading scientists were quick to dismiss Mr. Lemoine’s views as misguided, saying LaMDA is simply a complex algorithm designed to generate convincing human language.

Mr. Lemoine’s dismissal was first reported by Big Technology, a tech and society newsletter. — Reuters

Budget, bureaucracy hinder PHL implementation of satellite data for agriculture

July 22, 2022 | 4:01 pm

By Patricia B. Mirasol, reporter

Satellite technology that can speed up the work of crop insurers and help the government make macro-level decisions hasn’t gained traction in the agricultural sector due to budget constraints, bureaucratic resistance from those whose jobs may be rendered obsolete, and inadequate technical capacity among staff, according to a former official at the Department of Agriculture (DA).

“Assessors who go to the field to inspect the extent of damage and losses will become redundant with this technology,” said economist Fermin D. Adriano, an Agriculture undersecretary during the Duterte administration, in a July 18 e-mail to BusinessWorld, noting that “if one is the head of the crop insurance company receiving a government subsidy of more than P4 billion a year, what is the incentive for you to change the status quo when it serves you well to maintain powers and perks?”

Satellite technology can be applied to monitor current crop conditions and predict future yield, making it a useful tool for crop insurance.

In June 2020, the DA partnered with SatSure AG, a Karnataka-based deep tech multinational, to provide satellite imaging for 100,000 hectares planted with rice and 40,000 hectares planted with other crops in Nueva Ecija, Iloilo, and North Cotabato.

The pilot project focused on estimating the damage and losses due to weather disturbances or pests. Field data could be used as a basis for extending crop insurance and expanding credit, said Mr. Adriano in the same e-mail.

This information is “badly needed to guarantee insurance companies or banks that actual planting of such crops was made, [and also to] measure actual crop density, whether there were … losses to crops,” he added. “This data is particularly needed by our vulnerable farmers in this age of climate change challenges.”

Aside from bureaucracy, budget woes also prevent the project from scaling up. Even if the satellite technology can be funded by grants, additional financial support will be needed to geo-tag individual farms.

“The problem is that the government is in a tight fiscal situation now and looks at such innovations as a cost rather than an investment in the future,” said Mr. Adriano, who was Agriculture undersecretary for policy and planning.

‘NOT YET CONVINCING’

The Philippine Crop Insurance Corporation (PCIC), meanwhile, told BusinessWorld in a July 14 e-mail that the proof of concept of the pilot project is “encouraging but not yet convincing.”

PCIC — which was under the DA in 2020 when the project was rolled out — tested SatSure’s satellite technology for post-planting inspection and damage assessment in Isabela, Cagayan Valley, and Butuan, Agusan del Norte, from June to October that year.

The validation that needs to be done for insurance underwriting is typically done by field personnel, according to Manuel J. Cortina, officer-in-charge of PCIC’s business development and marketing department, and Luther Romeo C. Salting, PCIC’s vice president for its corporate business affairs group.

“The technology made the validation faster,” said Mr. Cortina in a July 14 phone call, adding that SatSure AG provided data analytics as well as a platform for viewing the gathered images. “We had an issue with damage assessment, however, because we insure individually [per hectare], and the images shown were per cluster [per region]. We want a more micro view of the areas.”

“We are open to adopting the technology if it can handle individual assessment,” Mr. Cortina said. “Indemnity-based kasi kami [We protect based on indemnity].”

Arvind Kumar, SatSure AG’s Philippine country director, in a July 21 text message said: “[PCIC’s requirement] can be provided once geotagging is done. We already made it very clear in our scale up proposals submitted to the DA.”

AGRICULTURAL APPLICATIONS

In a July 11 call with BusinessWorld, SatSure co-founder Abishek Raju said: “We’ve been working with states and governments, and we feel the level of enthusiasm for digitalizing agricultural practices in the Philippines is very high.”

Space data can help provide predictive assessments based on how a specific landscape has changed, Mr. Raju explained. Archival information and images from more than 8,000 satellites orbiting the planet can inform the decisions related to agriculture.

“By doing a scientific audit of historic activities, a lot of predictive assessments can be done. Are there more cities? Is there more demand for food? What type?” he said.

Data can also be used for the continuous monitoring of crop yields both within a country and a larger region. Knowing whether there will be a deficit can help the government plan on which crops to import, said Mr. Raju.

“Satellite technology can do a global assessment and find out who’s going to surplus or deficit,” he said. “Governments can use this as a trade deal for deficits and exports. Our work enables governments to make decisions at a macro level.”

The Philippines has had recent examples of crop yield excesses. A report that tomatoes were thrown out by a farmer in Bukidnon due to oversupply prompted the DA to issue a statement on July 10 that it was pushing for a nationwide cropping calendar to reduce wastage.

The DA told SatSure in 2021 it was keen on exploring how to scale the project at a national level, said Mr. Raju.

“I think that if agriculture has the focus of the president himself, then it will have a lot of successes,” he added. “We are looking forward to working with the DA. We are waiting for them to tell us how to start.”

Mr. Kumar likened the crop insurance situation to a chicken-and-egg story.

Without insurance, banks won’t lend, he said. “Until farmers are enabled with access to formal bank credits in the form of agri-agra loans, it is difficult to see any major changes, as credit is the life blood for small farmers,” added Mr. Kumar. “Crop insurance reformation is vital.”

A LONG-GESTATING CRISIS

Economist Bernardo M. Villegas described the neglect of the agricultural sector as “almost criminal” in a June 28 opinion column in this newspaper. He called the sector the number one weakness of the Philippine economy in terms of productivity as compared to its peers in the ASEAN.

The agricultural crisis cannot be solved unless the agrarian reform law is amended, said Calixto V. Chikiamco, a business process outsourcing entrepreneur and president and co-founder of Foundation for Economic Freedom, an organization that advocates the cause of economic and political liberty and market-oriented reforms.

Mr. Chikiamco, in a July 6 forum organized by the German-Philippine Chamber of Commerce and Industry (GPCCI), said that the biggest problem is land limitation.

“How can you apply science and technology innovations if you only have one hectare and can’t own more than five?” he said, noting how it “doesn’t make sense to apply machinery” to small plots of land.

Farmers posted the highest poverty incidence in 2015 at 34.3%, per the Philippine Statistics Authority.

That President Ferdinand “Bongbong” R. Marcos, Jr., is holding the agriculture portfolio will “hopefully make the department more responsive and use its money better,” Mr. Chikiamco added.

Mr. Marcos has identified food security among the priorities for the first few months of his administration.

“Food is not just a trade community. … It is an existential imperative, and a moral one,” he said at his June 30 inaugural address. “Food sufficiency must get preferential treatment.”

The Department of Agriculture could not be reached for comment.

Pag-IBIG Fund finances 8,471 homes for low-wage earners in H1 2022

July 22, 2022 | 3:11 pm

Pag-IBIG Fund financed 8,471 socialized homes for minimum-wage and low-income members amounting to P3.67 billion in the first half of 2022, its top officials said Wednesday (July 20).

Socialized home loans make up 19% of the total number of housing loans financed by the agency from January to June this year. The amount, meanwhile, represents 7% of the total housing loans released by the agency for the said period. Pag-IBIG Fund posted record-highs of 47,184 in housing units financed and P51.96 billion in home loans released during the first half of the year.

“We at Pag-IBIG Fund remain committed in pursuing our mandate to provide a home for every Filipino worker. With our Affordable Housing Program, achieving the dream of homeownership is made possible especially for minimum-wage workers. The program’s lowest rates and longest payment term allow our members from the low-income sector to buy or build a home of their own,” said Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti.

Pag-IBIG Fund’s Affordable Housing Program (AHP) is a special home financing program specifically designed for minimum-wage and low-income members from the National Capital Region (NCR) who earn up to P15,000 a month, and from outside the NCR who earn up to P12,000 per month. Under the AHP, eligible borrowers enjoy a special subsidized rate of only 3% per annum for home loans of up to P580,000 for socialized subdivision projects.

Pag-IBIG Fund Deputy Chief Executive Officer for Home Lending Operations Marilene C. Acosta, meanwhile, said that the AHP’s 3% rate translates to a monthly amortization of as low as P2,445.30 for a socialized home loan amounting to P580,000, making homeownership within reach of low-income earners.

“We first offered the AHP’s subsidized 3% rate in May 2017 to help more members, particularly those from the minimum-wage sector, realize their dreams of owning a home. With our very low rates, our members are able to enjoy a monthly amortization on their home loans that is lower than the cost of rent. And, since qualified borrowers do not need to put out cash for equity under the program, payments are even more within budget of low-income members. Makakaasa ang aming mga miyembro na patuloy nila kaming katuwang sa pag-abot ng kanilang pangarap na magkaroon ng sariling tahanan,” Acosta added.

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Australia gov’t to double foreign investment fees, penalties

July 22, 2022 | 3:02 pm

SYDNEY — Australia will double the fees for foreign investors looking to buy assets in the country, Treasurer Jim Chalmers said on Friday, as he grapples with protracted budget deficits and seeks to boost government revenue.

The increase in fees and penalties for purchases of property, farms and businesses in Australia is expected to generate an additional $315 million in revenue over the next four years, Mr. Chalmers said.

Mr. Chalmers said he continued to back foreign investment in Australia but he had to make the decision due to “the state of the budget we have inherited from our predecessors.”

“Foreign investment fees will continue to make up only a small proportion of total foreign direct investment,” he said in a statement. The new measures will take effect from July 29.

Mr. Chalmers earlier this week warned the country’s economic picture would be “confronting” as the government prepares to release updated economic forecasts to parliament on July 28 to account for faster inflation and rising interest rates.

The recently elected Labor Government, having promised during the election campaign not to raise taxes, has also warned that spending will have to be trimmed to restrain government debt. — Reuters

Japan warns of rising security threats in annual defense report

July 22, 2022 | 2:32 pm

TOKYO — Japan warned on Friday of escalating national security threats, including repercussions from Russia’s war with Ukraine, Chinese intimidation of Taiwan, and vulnerable technology supply chains, in its annual defense white paper.

The report sets out the government’s security concerns as it prepares the defense ministry budget request due next month, aiming to build public support for an unprecedented hike in military funding that the ruling party aims to double over the next decade or so.

It also sets the stage for a year-end national security review expected to call for the acquisition of longer-range strike missiles, strengthened space and cyber capabilities, and tighter controls over access to technology.

“The political, economic and military rivalries between nations is clear, and the challenge posed to the international order is a global issue,” the white paper said.

It describes Moscow’s attack on Ukraine as a “serious violation of international law” and raises concerns that Russia’s use of force to resolve a dispute established a precedent that threatens the security of neighboring Taiwan, which Beijing views as its own territory.

Chinese military planes are increasingly probing Taiwan’s air defenses, with fighter jets this month crossing the Taiwan Strait’s median line, the unofficial buffer between China and Taiwan. Taipei criticized that maneuver as a “provocation.”

Beijing says it has sovereign rights and jurisdiction over the waterway.

The defense white paper approved by Prime Minister Fumio Kishida’s government identifies China, Russia, and North Korea as its main security concerns. Mr. Kishida’s defense minister, Nobuo Kishi, last month had described Japan as being on a front line surrounded by nuclear-armed actors.

Most Japanese appear to share government concerns over Japan’s deteriorating security environment, with recent opinion polls putting support for higher defense spending at more than 50%.

Mr. Kishida’s ruling Liberal Democratic Party, which has pledged to double military spending to 2% of GDP, gained seats in national elections for upper house lawmakers this month.

A 2% target would bring Tokyo in line with a minimum commitment set by North Atlantic Treaty Organization (NATO) members, and given the size of its economy, would make the pacifist nation the world’s No.3 in total defense spending after the United States and China.

The white paper cited comparative OECD estimates of defense spending for Japan and eight other countries, showing Japan at 0.95% of GDP, the United States at 3.12%, South Korea at 2.57%, nearby China at 1.2%, and neighboring Russia at 2.73%.

Japan’s spending as a percentage of GDP is lower than all other Group of Seven nations, as well as Australia and South Korea, it said.

“Spending per capita in South Korea, Britain, France, and Germany is two to three times as much,” the document said. — Tim Kelly/Reuters

Biden says he is ‘doing well,’ working after testing positive for COVID

July 22, 2022 | 2:02 pm

294986719_508374044622897_3678933897221263109_n — PRESIDENT JOE BIDEN/FACEBOOK

WASHINGTON — Joseph R. Biden, Jr., the oldest person ever to serve as president of the United States, has tested positive for coronavirus disease 2019 (COVID-19). He is experiencing mild symptoms and will continue working but in isolation, the White House said on Thursday.

Mr. Biden, 79, has a runny nose, fatigue and an occasional dry cough, symptoms which he began to experience late on Wednesday, White House physician Kevin O’Connor said in a note released on Thursday. Mr. Biden has begun taking the antiviral treatment Paxlovid, Mr. O’Connor said.

Fully vaccinated and twice boosted, Mr. Biden said he was “doing well” in a video posted on his Twitter account. In the 21-second clip, he also said he was “getting a lot of work done” and would continue with his duties.

A photograph on his Twitter account showed him smiling, wearing a blazer and sitting at a desk with papers.

White House COVID coordinator, Dr. Ashish Jha, said Mr. Biden’s oxygen levels were normal and the president would isolate for five days and return to public events once he had a negative COVID test.

Mr. Biden became ill at a time when his administration is grappling with soaring inflation, global supply challenges, mass shootings and Russia’s land assault on Ukraine.

His illness forced cancellation of a trip to Pennsylvania where Biden intended to lay out plans to ask Congress for $37 billion for crime prevention programs.

The White House provided an unusually detailed account of the president’s morning activities, including a series of phone calls to political allies, and said people who had come into close contact with Biden were being told of his illness.

Vice President Kamala Harris was in close contact with Mr. Biden on Tuesday, a White House official said. Mr. Biden’s chief of staff, Ron Klain, told MSNBC he was as well, but he said that so far no one linked to the president’s case had tested positive.

PAXLOVID

The Pfizer Inc. antiviral drug Paxlovid that Mr. Biden is taking has been shown to reduce the risk of severe disease by nearly 90% in high-risk patients if given within the first five days of infection.

But Paxlovid has in some cases been associated with rebound infections, in which patients improve quickly and test negative after a five-day course of the drug, with symptoms returning days later.

Dr. Bruce Farber, chief of infectious diseases at Northwell Health in New York, who is not treating the president, said Paxlovid is likely the only treatment Mr. Biden will get, unless his symptoms worsen.

“Elderly people are more at risk for developing complications from COVID,” Mr. Farber said. “It dramatically is lower if you’ve been vaccinated and doubly boosted, which he has been, so I anticipate he will do very well.”

At Mr. Biden’s last physical in November 2021, doctors reported that the president has atrial fibrillation, a common irregular heartbeat for which he takes Eliquis, a drug designed to prevent blood clots and reduce the risk of heart attacks and stroke.

Mr. Jha said Biden will stop taking Eliquis and the statin Crestor while on his Paxlovid treatment to avoid a negative interaction between the drugs.

Yale University cardiologist Dr. Harlan Krumholz, said doctors had to balance risks in medicine.

“Sometimes the choice to mitigate one thing may elevate risk for something else. I am hopeful that the president will get through COVID, be helped by Paxlovid, and soon get back on the medication that reduces his risk from atrial fibrillation,” he said.

OFFICIAL WASHINGTON NOT IMMUNE

Multiple members of Biden’s administration and other senior figures in Washington have tested positive for the coronavirus in recent months, including Harris and House of Representatives Speaker Nancy Pelosi, both of whom have since tested negative and resumed working.

While many Americans have moved on from the strict precautions of the pandemic’s early months, returning to offices and schools and resuming summer travel, the virus has been spreading rapidly.

US cases are up more than 25% in the last month, according to data from the Centers for Disease Control and Prevention (CDC), with the BA.5 subvariant taking hold.

Evading the immune protection afforded either by vaccination or prior infection, BA.5 has been the dominant subvariant in the United States since at least early July and has driven a surge of new infections globally.

More than 1 million people have died from COVID in the United States. Most of those deaths, some 600,000, happened after Mr. Biden took office in January 2021 at the peak of a major wave of the disease.

‘GET VACCINATED NOW’

Mr. Biden set up strict COVID-19 safety protocols at the White House, urged Americans to take the virus seriously and campaigned for everyone to get fully vaccinated.

He is tested regularly for the disease and anyone who meets with him or travels with him is tested beforehand, the White House has said. Mr. Biden had last tested negative on Tuesday.

He has stopped wearing a mask at public events in recent months, and the White House dropped its mask requirement ahead of his March 1 State of the Union address.

Asked by Reuters on Wednesday what the country should do with COVID cases on the rise, Mr. Biden encouraged vaccination for those who had yet to get the vaccine.

“It’s not in their interest or the public’s interest not to get vaccinated,” Mr. Biden told reporters at Joint Base Andrews. “We have the capacity to control it. They should get vaccinated now.”

Mr. Biden joins a roster of world leaders who have contracted COVID since the pandemic started in early 2020.

A month before he lost the 2020 presidential election to Mr. Biden, Donald Trump contracted the virus. He, his wife Melania and other White House staff contracted it after an event for Supreme Court Justice Amy Coney Barrett in September 2020.

Mr. Trump, then 74, was hospitalized on Oct. 2, 2020, and underwent aggressive treatment at Walter Reed National Military Medical Center in a suburb of Washington. His low oxygen levels alarmed his medical team.

Dr. Jeremy Faust, an emergency medicine specialist at Brigham and Women’s Hospital, wrote on Twitter: “Biden isn’t remotely in the same risk category as Trump was. He’s had 4 doses of vaccine, Paxlovid, and possibly a variant which tends to cause less severe disease. He also doesn’t have obesity.” — Trevor Hunnicutt, Steve Holland and Jeff Mason/Reuters

US carriers’ cost struggle overshadows travel demand surge

July 22, 2022 | 1:19 pm

Aircraft, Aircrafts, American Airlines, plane, planes, Livery, Exterior — AMERICAN AIRLINES

CHICAGO — US carriers are struggling to offset higher costs even as booming travel demand has given them strong pricing power, raising questions about their ability to shield profit once consumer demand softens.

Those worries are battering airline shares, taking the focus away from what is shaping up to be the industry’s strongest earnings season in three years.

Shares of American Airlines Group Inc and United Airlines fell more than 9% on Thursday even after both carriers posted their first quarterly profit without US government aid since the coronavirus disease 2019 (COVID-19) pandemic began.

Airlines expect travel demand to hold up even in the second half of the year as there is little evidence of higher fares, persistently high inflation and rising interest rates curbing consumer spending.

But staffing gaps and aircraft shortages have made it tougher to ramp up capacity and fully tap booming demand. In fact, carriers have been forced to cut flights and make costly staffing adjustments to avoid cancellations and delays, driving up operating costs.

American, United, and Delta Air Lines see no let up in cost pressure this year as capacity constraints are not allowing them to operate as many flights as they did before the pandemic.

Delta doesn’t plan to add more flights for the rest of the year. Similarly, United intends to keep its capacity below the pre-pandemic level in the current and fourth quarters.

To ensure adequate staffing, they are being forced to spend more. Delta, for example, expects to spend over $700 million this year in overtime and premium pay, 50% higher than in 2019.

Carriers are also hamstrung by construction projects at airports and staffing gaps among air-traffic controllers. United said it will cut 200 flights a day in Newark in September as a result of runway construction.

United Chief Executive Scott Kirby said the company will prioritize operational reliability by overstaffing until the entire aviation infrastructure returns to normal.

“It means that there will be cost pressures,” Mr. Kirby told investors on an earnings call.

Labor unions and some analysts blame the industry’s decision to let go thousands of workers at the height of the coronavirus pandemic in 2020 for its staffing challenges. Carriers have been aggressively hiring, but training backlogs have left them still short-staffed.

Meanwhile, a rush to staff up is driving up labor costs.

American has offered its pilots a base pay increase of about 17% after United agreed to a double-digit pay hike for its pilots. To attract and retain talent, the Texas-based carrier has also announced hefty pay increases for pilots at its regional carriers.

“As an industry, pilot wages are going to increase,” said American Chief Executive Robert Isom. “And that’s something that the industry as a whole is going to have to digest.”

Airlines are also facing higher fuel costs, but a decline in global prices is expected to offer some relief. Yet, United warned that higher fuel prices would be the new normal for the industry. It expects its fuel bill this year to be $9 billion higher than in 2019.

Strong consumer demand, thus far, has allowed carriers to mitigate inflationary pressure with higher fares. Analysts, however, are not sure they will have the same pricing power in the fall when leisure travel bookings tend to slow down.

Christopher Raite, senior analyst at Third Bridge, said business travel spending will have to pick up the slack.

But the industry’s struggle to get operations back on a smoother track as well as a worsening economy have cast a shadow on business travel demand. Many companies have already started tightening their purse strings.

“The airline industry is fundamentally less profitable than it was pre-pandemic,” Mr. Raite said. “If we are to see corporations cut back, that would be a bad sign for airlines.” — Rajesh Kumar Singh/Reuters

ECB hikes rates, throws lifeline to indebted countries

July 22, 2022 | 12:57 pm

FRANKFURT — The European Central Bank (ECB) raised interest rates by more than expected on Thursday as concerns about runaway inflation trumped worries about growth, even while the euro zone economy is suffering from the impact of Russia’s war in Ukraine.

The ECB raised its benchmark deposit rate by 50 basis points to zero percent, breaking its own guidance for a 25-basis-point move as it joined global peers in jacking up borrowing costs. It was the ECB’s first rate increase in 11 years.

Policymakers also agreed to provide extra help for the euro zone’s big debtor nations — Italy among them — with a new bond purchase scheme. Sources told Reuters they did not expect to use it imminently despite a selloff in Italian bonds.

Ending an eight-year experiment with negative interest rates, the ECB also lifted its main refinancing rate to 0.50%, and promised another hike, possibly as soon as its Sept. 8 meeting, with more to follow later.

ECB President Christine Lagarde said a clear deterioration of the inflation outlook and unanimous backing for the anti-fragmentation instrument justified the bigger move.

“Price pressure is spreading across more and more sectors,” Ms. Lagarde said. “We expect inflation to remain undesirably high for some time.” She listed driving factors including higher food and energy costs and wage rises.

“We decided on balance that it was appropriate to take a larger step towards exiting from negative interest rates.”

But even if the ECB is now moving more quickly, Ms. Lagarde said the terminal rate — or level where hikes end — has not changed.

The ECB did not provide guidance for its expected rate hike in September, saying only that further increases will be as appropriate and decisions will be made meeting-by-meeting.

The ECB had for weeks guided markets to expect a 25-basis-point increase on Thursday, but sources close to the discussion told Reuters early this week that 50 basis points had come into play as part of a deal including help for indebted countries.

With inflation across the 19 countries that use the euro already approaching double-digit territory, it is at risk of getting entrenched well above the ECB’s 2% target. Any gas shortage over the coming winter is likely to push prices even higher, perpetuating rapid price growth.

Ms. Lagarde warned that risks to the inflation outlook were on the upside and have intensified, particularly as the war is likely to drag on, keeping energy prices high for longer.

Economists polled by Reuters had predicted a 25-basis-point increase but most favored a 50-basis-point hike, lifting the ECB’s record-low minus 0.5% deposit rate to zero.

The euro climbed as much as 0.8% to $1.0261, having traded at $1.0198 just before the statement but turned negative on the day as Ms. Lagarde spoke.

The euro climbed to as high as $1.0278 after the rate hike before easing back to $1.0183, flat on the day. Markets are now pricing in a 50-basis-point rate hike in September and see a combined 127 basis points of rises over the rest of the year.

GOING BIG?

The new bond purchase scheme, called the Transmission Protection Instrument (TPI), is intended to stop any excessive rise in borrowing costs for governments across the currency bloc as policy tightens.

Recent increases have been larger for indebted countries like Italy, Spain and Portugal but sources told Reuters the ECB was not seeing the need to activate the new scheme in any country at present.

Activating the instrument will be entirely at the discretion of the ECB and the bank will target public sector bonds with maturities between one and 10 years.

“The ECB is capable of going big for that,” Ms. Lagarde said.

Countries will be eligible if they comply with European Union fiscal rules and do not face “severe macroeconomic imbalances.” Compliance with commitments under the EU’s Recovery and Resilience Facility will be needed, as will an assessment of debt sustainability.

All euro zone countries currently comply with those conditions, sources told Reuters.

The ECB’s commitment on Thursday comes as a political crisis in Italy is weighing on markets following the resignation of Prime Minister Mario Draghi, who was Lagarde’s predecessor at the ECB.

The yield spread between Italian and German 10-year bonds widened during Lagarde’s news conference to near the 250-basis-point level that triggered an emergency ECB policy meeting last month.

The ECB’s 50-basis-point hike still leaves it lagging its global peers, particularly the US Federal Reserve, which lifted rates by 75 basis points last month and is likely to move by a similar margin in July.

But the euro zone is more exposed to the war in Ukraine and a threatened cut off in gas supplies from Russia could tip the bloc into recession, leaving policymakers with a dilemma of balancing growth and inflation considerations. — Balazs Koranyi and Francesco Canepa/Reuters

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