Norway to close borders to all but essential visits, says PM

OSLO (Reuters) – Norway will close its borders to all but essential visitors, Prime Minister Erna Solberg said on Wednesday, tightening further some of the toughest travel restrictions in Europe.

“In practice, the border will be closed to anyone not living in Norway,” Solberg told a news conference.

While exceptions will apply to a few groups, including health workers from some countries, most migrant labor will be prevented from coming, she said.

“What we see is that the mutated virus has spread significantly in many countries that do not monitor the extent of mutations in the same way as Norway, Denmark and Britain do,” said Solberg of the reasons why the latest measures were introduced.

The non-EU country on Saturday announced a lockdown of its capital region after an outbreak of a more contagious coronavirus variant, first identified in Britain.

Among the measures introduced on Jan 23., non-essential stores in and around Oslo are currently closed for the first time in the pandemic.

Norway is seeing declining levels of infections by the coronavirus however, said Solberg. The county’s reproduction rate, which indicates how many people on average an infected person transmits the virus to, stands at 0.6, she added.

Norway has one of the lowest rates of new infections in Europe per 100,000 inhabitants, according to the European Centre for Disease Prevention and Control.

While sailors on merchant ships are still permitted to travel, the Norwegian Shipowners’ Association (NSA) questioned the prime minister’s plan.

“This will be very challenging,” NSA Chief Executive Harald Solberg said.

“We need rapid decisions on, and improvements to, compensations for all those who will now face the consequences,” he said.

(Reporting by Gwladys Fouche and Terje Solsvik; Editing by Aurora Ellis)

U.S. travel restrictions at Canada, Mexico borders set to be extended until Dec. 21 — official

By David Shepardson

WASHINGTON (Reuters) – The United States’ land borders with Canada and Mexico are expected to remain closed to non-essential travel until Dec. 21 at the earliest amid a rising number of U.S. coronavirus cases, a Homeland Security Department official told Reuters.

The current restrictions expire on Saturday and the three countries are expected to approve another 30-day extension, the official said on Wednesday. The United States leads the world in COVID-19 cases and deaths.

The restrictions were first put in place in March to control the spread of COVID-19.

Canada’s CTV News also reported that the travel restrictions in place at the Canada-U.S. land border were expected to remain in effect for at least another month.

The DHS official told Reuters the agency was “continuing to look at appropriate public health criteria for a future re-evaluation of existing restrictions.”

The restrictions are particularly painful for U.S. and Canadian towns along the border that are tightly intertwined.

Statistics Canada said earlier that U.S. visits to Canada by automobile had plummeted by more than 95% in August from August 2019.

(Reporting by David Shepardson; Editing by Chizu Nomiyama and Peter Cooney)

Travel restrictions challenge vaccine rollout, airlines warn

PARIS (Reuters) – Air cargo operators may struggle to distribute new COVID-19 vaccines effectively unless pandemic travel restrictions are eased, global airlines cautioned on Monday.

The warning came in vaccine transport guidelines issued by the International Air Transport Association (IATA), which is pushing governments to replace travel curbs and quarantines with testing.

“If borders remain closed, travel curtailed, fleets grounded and employees furloughed, the capacity to deliver life-saving vaccines will be very much compromised,” the IATA document said.

Moderna Inc. said on Monday its experimental COVID-19 vaccine had proved 94.5% effective in a clinical trial, a week after rival drugmaker Pfizer reported 90% efficacy findings for its vaccine. Once approved, both vaccines are likely to require transport and storage well below freezing, posing logistical hurdles.

Widespread grounding of passenger flights that normally carry 45% of global cargo in their holds has taken out capacity, thinning the air freight network and driving up prices.

Existing immunization campaigns have struggled with the partial shutdown. The World Health Organization and UNICEF “have already reported severe difficulties in maintaining their planned vaccine programs during the COVID-19 crisis due, in part, to limited air connectivity,” IATA said.

Vaccines will need to be shipped to developing countries reliant on passenger services for cargo, IATA’s head of cargo Glyn Hughes told Reuters. Even in industrialized states, vaccine dispersal may be a tighter bottleneck than production, requiring shipments to secondary airports on passenger jets.

In preparation for the challenge of mass vaccine distribution, governments should move to reopen key passenger routes backed by robust testing, the airline body argues.

“There are several more months for governments to go through the planning cycle,” Hughes said, leaving enough time to “get passenger networks safely resumed, looking at safe travel corridors (and) mutual acceptance of testing procedures.”

(Reporting by Laurence Frost; editing by David Evans)

In COVID-19 clampdown, China bars travelers from Britain, France, India

BEIJING (Reuters) – China has barred non-Chinese travelers from Britain, France, Belgium, the Philippines and India, imposing some of the most stringent entry curbs of any country as coronavirus cases surge around the world.

The restrictions, which cover those with valid visas and residence permits and take effect in conjunction with a more restrictive testing regime for arrivals from several other countries, drew a frosty response from Britain.

“We are concerned by the abruptness of the announcement and the blanket ban on entry, and await further clarification on when it will be lifted,” said the British Chamber of Commerce in China as the blanket bans were announced by the five countries’ Chinese embassies.

England started a month-long lockdown on Thursday. Britain’s virus death toll is the highest in Europe, and it is grappling with more than 20,000 new cases a day.

Belgium has Europe’s highest per capita number of new confirmed cases, while France and India are among the top five countries in the world with the most infections.

The suspensions were a partial reversal of an easing on Sept. 28, when China allowed all foreigners with valid residence permits to enter. In March, China had banned entry of foreigners in response to the epidemic.

‘SOLD OUT IN SECONDS’

Meanwhile, many people planning November visits to China scrambled to book earlier flights to circumvent potentially disruptive restrictions due to come into force for other countries from Friday.

Linyi Li, a Chinese national, had planned to fly from Seattle to China in mid-November but switched her flight to Nov. 6 even though fares had tripled.

“The tickets were sold out in seconds, as people were all scrambling to beat the deadline,” said Li, 30. “I’ve been rushing to sell many of my family belongings in the past days in case I can’t get back to the States.”

From Friday, all passengers from the United States, France, Germany and Thailand bound for mainland China must take a nucleic acid test and a blood test for antibodies against the coronavirus no more than 48 hours before boarding.

Flights scheduled for Friday are not covered by the new rule, since passengers would have done their tests before that day under previous requirements.

China also plans to impose dual-test requirements on travelers from Australia, Singapore and Japan from Nov. 8.

The European Union Chamber of Commerce in China said the antibody test was not widely available in many countries.

“(So) unfortunately, while technically leaving the door open, these changes imply a de facto ban on anyone trying to get back to their lives, work and families in China,” said the European Union Chamber of Commerce in China.

On Tuesday, China Southern Airlines, the country’s biggest carrier by passenger load, said it would suspend transit services for passengers embarking from 21 countries, mostly African and Asian countries and including India and the Philippines.

The number of weekly international passenger flights serving mainland China from late October through March is set to slump 96.8% from a year earlier to 592, the latest schedules show.

(Reporting by Ryan Woo, Lusha Zhang, Dominique Patton, Stella Qiu, Gabriel Crossley, Martin Pollard and Shivani Singh; Editing by Jacqueline Wong and John Stonestreet)

Travel bans cannot be indefinite, countries must fight virus at home: WHO

By Michael Shields and Stephanie Nebehay

GENEVA (Reuters) – Bans on international travel cannot stay in place indefinitely, and countries are going to have to do more to reduce the spread of the novel coronavirus within their borders, the World Health Organization said on Monday.

A surge of infections has prompted countries to reimpose some travel restrictions in recent days, with Britain throwing the reopening of Europe’s tourism industry into disarray by ordering a quarantine on travelers returning from Spain.

Only with strict adherence to health measures, from wearing masks to avoiding crowds, would the world manage to beat the COVID-19 pandemic, the World Health Organization’s director-general, Tedros Adhanom Ghebreyesus, said at a virtual news briefing.

“Where these measures are followed, cases go down. Where they are not, cases go up,” he said, praising Canada, China, Germany and South Korea for controlling outbreaks.

WHO emergencies program head Mike Ryan said it was impossible for countries to keep borders shut for the foreseeable future.

“…It is going to be almost impossible for individual countries to keep their borders shut for the foreseeable future. Economies have to open up, people have to work, trade has to resume,” he said.

“What is clear is pressure on the virus pushes the numbers down. Release that pressure and cases creep back up.”

Ryan praised Japan and Australia for having had “good success in containing the disease” but said that it was to be expected that the virus would re-surge in areas with active transmission if restrictions are lifted and mobility increased.

“And that is what has essentially occurred in many countries is that in nightclubs, other situations, dormitories, other environments in which people are close together can act as amplification points for the disease and then it can spread back into the community. We need to be hyper-alert on those.”

Measures must be consistent and kept in place long enough to ensure their effectiveness and public acceptance, Ryan said, adding that governments investigating clusters should be praised not criticized.

“What we need to worry about is situations where the problems aren’t being surfaced, where the problems are being glossed over, where everything looks good.”

Ryan said Spain’s current situation was nowhere near as bad as it had been at the pandemic’s peak there, and he expected clusters to be brought under control, though it would take days or weeks to discern the disease’s future pattern.

“The more we understand the disease, the more we have a microscope on the virus, the more precise we can be in surgically removing it from our communities,” he added.

(Reporting by Stephanie Nebehay, Emma Farge, Michael Shields; Writing by Andrew Cawthorne; Editing by Peter Graff)

North America extends coronavirus travel restrictions: U.S. official

WASHINGTON (Reuters) – The United States, Mexico and Canada are extending restrictions on non-essential travel across their shared borders for an additional 30 days, U.S. Acting Department of Homeland Security Secretary Chad Wolf said in a tweet.

“As President Trump stated last week, border control, travel restrictions, and other limitations remain critical to slowing the spread of coronavirus and allowing the phased opening of the country,” Wolf wrote.

(Reporting by Lisa Lambert and David Shepardson; Editing by Chizu Nomiyama)

U.S. in crisis mode as coronavirus cases soar, travel restrictions loom

Reuters
By Steve Holland and Susan Heavey

WASHINGTON (Reuters) – The United States went into crisis mode on Thursday to contain a coronavirus outbreak that has played havoc with businesses, shuttered schools and universities and severely disrupted the sports and entertainment world.

Fears of a recession grew as U.S. cases of the virus that causes the sometimes fatal COVID-19 respiratory illness rose and the Trump administration prepared to roll out restrictions that threaten to cripple the travel industry.

U.S. stock markets cratered again after trading opened, with major indexes entering bear-market territory.

Officials in the hardest-hit parts of the country, including New York and Washington states, were trying to balance the need to protect the public while stopping short of actions that could freeze the daily lives of millions of people and stop economic activity.

New York City Mayor Bill de Blasio told CNN that “more and more restrictions” were likely on the way, though he said there were no plans to shut down the city’s famous theater district or its subway system, a vital transportation link.

“I don’t want to see Broadway go dark,” de Blasio said, adding that authorities will be issuing further guidance either on Thursday or Friday. He also announced the closure of two schools in the city due to a student’s “self-confirmed” positive case of COVID-19.

Hollywood has postponed the release of several movies and movie theaters around the world have been closed over the health crisis.

More than 1,300 U.S. cases of coronavirus have been confirmed and 33 people have died, according to a tally by Johns Hopkins University in Baltimore. A nursing home in Kirkland, Washington, has accounted for a large share of the deaths.

U.S. health officials have struggled to quickly expand testing capacity to make screening for the virus widely available, and have acknowledged that it is not easy for those possibly exposed to the virus to get tested.

“The system is not really geared to what we need right now,” Anthony Fauci, the top U.S. official on infectious diseases, said at a congressional hearing. “The idea of anybody getting it (testing) easily the way people in other countries are doing it, we’re not set up for that.”

Oscar-winning actor Tom Hanks and at least one player in the National Basketball Association are among those who have been infected with the highly infectious coronavirus, which can lead to pneumonia and other respiratory problems, especially in the elderly and those with compromised immune systems.

The NBA has suspended its season until further notice.

Harvard and Princeton are among the universities that have announced they will move to virtual classroom instruction after the spring break later this month.

‘SELF-QUARANTINE’

U.S. citizens and permanent residents returning from abroad will be screened for the virus and asked to go into “self-quarantine” for 14 days, Vice President Mike Pence said in an interview with CNN.

“Americans coming home will be funneled through 13 different airports, they’ll be screened, and then we’re going to ask every single American and legal resident returning to the United States to self-quarantine for 14 days,” Pence said.

President Donald Trump defended his decision to impose a 30-day restriction on travel from Europe, except Britain and Ireland, that goes into effect at midnight on Friday.

Speaking to reporters in the White House alongside Irish Prime Minister Leo Varadkar, he said the ban could be lengthened or shortened, and added that he had been unable to consult with the European Union prior to announcing it on Wednesday night.

The travel restrictions will heap more pressure on airlines already reeling from the pandemic, hitting European carriers the hardest, analysts said. Global stock markets sank again on Thursday.

The S&P 500 <.SPX> and the Nasdaq <.IXIC> indexes entered into a bear market. The S&P 500 plunged more than 8% and the Dow Jones Industrial Average <.DJI> was down 4.3%. Airline and some cruise line stocks were particularly hard hit.

The U.S. House of Representatives plans to vote on Democrats’ sweeping coronavirus bill on Thursday, according to a Democratic aide.

Republicans have balked at the plan and called for a delay in considering the proposed legislation, and Trump said on Thursday he didn’t support the bill.

Instead, Trump has pushed for a payroll tax cut and instructed the Treasury Department to defer tax payments without interest or penalties for certain business and individuals hit by the health crisis.

The president also backs emergency action to provide financial relief for workers who are ill, quarantined or caring for others due to coronavirus.

(Reporting by Steve Holland, Susan Heavey, Lisa Lambert and Richard Cowan in Washington and Maria Caspani and Michael Erman in New York; Writing by Paul Simao; Editing by Jonathan Oatis and Sonya Hepinstall)

Explainer: Fed may go into its crisis tool kit soon. What’s in it?

Reuters
By Jonnelle Marte and Howard Schneider

(Reuters) – Analysts and economists increasingly expect the Federal Reserve to roll out measures beyond interest rate cuts and bond purchases to ensure financial markets keep operating smoothly and banks have ample liquidity during the coronavirus outbreak.

The unexpected move by aircraft maker Boeing Co  to draw on nearly $14 billion in credit lines from its banks, as travel restrictions aimed at containing the pandemic hurt its customers, illustrates the stress that some corporate credit markets are already starting to feel.

The Fed, which delivered an emergency rate cut last week and is expected to lower them more when it meets next week, has already taken steps to ensure liquidity in the banking system by substantially increasing the support it provides to overnight lending markets.

But the central bank has an array of other emergency lending facilities and other tools it used during the 2007-2009 financial crisis that it could turn to if needed to keep credit markets from freezing up during times of stress.

“The playbook story in these events is that the Fed would always be a provider of liquidity as needed,” said Nellie Liang, a senior fellow in economic studies at the Brookings Institution and former director of the Division of Financial Stability at the Federal Reserve Board.

Some steps the Fed can take on its own under existing authority, while others might require partnering with the Treasury Department or expanded authority from Congress.

But here is a look at some of the tools that could be adjusted or revived to support markets if credit conditions worsen significantly:

** Discount window

The Fed’s lending tool of last resort is rarely used because banks are worried that borrowing from the window could make them appear weak. But policymakers could start by reminding banks that “the discount window is open, please use it,” said Liang. Fed officials could also make the credit more attractive by lowering the rate they charge or extending the length of the loans offered from one day to 30 days or 90 days.

** Term Auction Facility (TAF)

The Fed rolled out the TAF in 2007 as a way to offer loans to banks that were too hesitant to turn to the discount window. The TAF lacked some of the stigma associated with the discount window because of the way the loans were issued. Financial firms had to bid for the funding, which meant that the rate they paid would be viewed as being determined by the market, and not as a penalty rate.

The money also was not disbursed until three days later, suggesting that the banks who borrowed in that way were not in immediate need of cash.

“It is a signal that you are not desperate,” said Liang. The Fed closed the facility in March 2010.

** Commercial paper funding facility (CPFF)

In the financial crisis, establishing the CPFF was the closest the Fed came to making direct loans to non-financial businesses.

The commercial paper market is a key source of short-term funding for a range of businesses. When it froze up in 2008, the Fed created the CPFF to help reopen that market by purchasing high-rated, asset-backed commercial paper at three-month maturities. The facility was closed in 2010.

Some measures of potential stress have appeared in this market. The spread on borrowing rates between the highest-rated non-financial borrowers and the next tier below them has widened notably this month. It is now the widest in nearly two years.

It is too early to say if the current stress will grow to an extent that allows the Fed to reopen such a facility under the “unusual and exigent circumstances” section of the Federal Reserve Act, which allows it to lend to businesses and individuals.

** Central bank liquidity swaps

The Fed has standing agreements with five other major foreign central banks – the Bank of Canada, European Central Bank, Bank of England, Bank of Japan and Swiss National Bank – that allows them to provide dollars to their financial institutions during times of stress. These were converted from temporary to standing arrangements in 2011.

The Fed could roll out more agreements with other central banks not currently party to the standing agreements to increase access to dollars if needed.

** What else?

The central bank could create new tools more tailored to today’s market, said Kathy Bostjancic, chief U.S. financial economist at Oxford Economics. “Many of these were created for the specific issues that were plaguing the financial system back then,” said Bostjancic.

“What it shows is the Fed can be innovative.”

(Reporting by Jonnelle Marte and Howard Schneider; Editing by Dan Burns and Andrea Ricci)

Trump stops Europe flights, China says coronavirus outbreak may end by June

Reuters
By Liangping Gao and Andrea Shalal

BEIJING/WASHINGTON (Reuters) – Travelers scrambled to rebook flights and markets reeled on Thursday after U.S. President Donald Trump imposed sweeping restrictions on travel from Europe, hitting battered airlines and heightening global alarm over the coronavirus.

But China, where the disease originated, said its epidemic had peaked and the global spread could be over by June if other nations applied similarly aggressive containment measures as Beijing’s communist government.

Trump had downplayed risks to the United States during the crisis, but with epidemics ballooning from Iran to Italy and Spain, he limited travel from continental Europe for 30 days.

“This is the most aggressive and comprehensive effort to confront a foreign virus in modern history,” he said in a prime-time televised address from the Oval Office on Wednesday.

That sent markets into a tailspin, with European shares plunging to their lowest in almost four years and oil also slumping.

It also sent stressed travelers rushing to airports to board last flights back to the United States.

“It caused a mass panic,” said 20-year-old Anna Grace, a U.S. student at Suffolk University on her first trip to Europe who rushed to Madrid’s Barajas airport at 5 a.m. to get home.

The outbreak has disrupted industry, travel, entertainment and sports worldwide, even throwing the Tokyo Summer Olympics into question. But its progress in the epicenter of China’s Hubei province has slowed markedly amid strict curbs on movement, including the lockdown of its capital Wuhan.

Hubei logged just eight new infections on Wednesday, the first time in the outbreak it has recorded a daily tally of less than 10. Beyond Hubei, mainland China had just seven new cases, six of them imported from abroad.

“The peak of the epidemic has passed for China,” said Mi Feng, a spokesman for the National Health Commission.

OVER BY JUNE?

The Chinese government’s senior medical adviser, Zhong Nanshan, an 83-year-old epidemiologist renowned for helping combat the SARS outbreak in 2003, said the crisis could be over by mid-year.

“If all countries could get mobilized, it could be over by June,” he said. “But if some countries do not treat the infectiousness and harmfulness seriously, and intervene strongly, it would last longer.”

The coronavirus has infected more than 126,000 people across the world, the vast majority in China, and killed 4,624, according to a Reuters tally.

Already annoyed at what it considered over-draconian travel restrictions by Washington early in the crisis, Beijing smarted again at latest U.S. criticism of its handling.

White House national security adviser Robert O’Brien accused China on Wednesday of initially covering up the Hubei outbreak, saying that cost the world two months in response time.

In fact, retorted Chinese Foreign Ministry spokesman Geng Shuang, China’s efforts bought the world time and “immoral and irresponsible” remarks would not help U.S. epidemic efforts.

The World Health Organization (WHO) now officially describes the crisis as a pandemic, meaning it is spreading fast across the globe.

“Describing this as a pandemic does not mean that countries should give up,” WHO chief Tedros Adhanom Ghebreyesus told diplomats in Geneva. “The idea that countries should shift from containment to mitigation is wrong and dangerous.”

Trump’s surprise travel order, which starts at midnight on Friday, does not apply to Britain or to Americans undergoing “appropriate screenings”, he said. “The restriction stops people not goods,” he tweeted after his speech.

EU DISAPPROVAL

The 27-nation European Union (EU) bloc was not impressed.

“The European Union disapproves of the fact that the U.S. decision to improve a travel ban was taken unilaterally and without consultation,” European Commission president Ursula von der Leyen and Council president Charles Michel said in a statement.

The market plunge hit airline and leisure stocks particularly hard.

“This is something that markets had not factored in … it’s a huge near-term economic cost,” Khoon Goh, head of Asia Research at ANZ in Singapore, said of the U.S. move.

Although exempt from Trump’s ban and no longer a member of the EU, Britain also expressed disappointment, saying it would have an impact on its economy.

But U.S. Vice President Mike Pence defended the new restrictions, saying the epicenter of the pandemic had shifted from Asia to Europe. “We know there will be more infections in the days ahead. We’re trying to hold that number down as much as possible,” Pence told NBC’s “Today” program.

In the United States, classes were suspended for two weeks in the greater Seattle area, which accounts for the bulk of at least 38 U.S. fatalities from the disease.

Oscar-winning American actor Tom Hanks tested positive in Australia, where he is on a film shoot.

Despite fears for the Tokyo Olympics, the torch relay got started in Greece when the flame was lit by the rays of the sun in ancient Olympia – albeit in a scaled-down ceremony and without spectators.

(Additional reporting by Ryan Woo, Stella Qui, Kevin Yao and Gabriel Crossley in Beijing; Alexandra Alper, Steve Holland, Susan Heavey, David Lawder, and Richard Cowan in Washington, Marine Strauus in Brussels, William Schomberg in London, Stephanie Nebehay in Geneva, Karolos Grohmann in Ancient Olympia; Writing by Nick Macfie; Editing by Robert Birsel and Andrew Cawthorne)