U.S. announces new sanctions on six linked to Hong Kong mass arrests

By Humeyra Pamuk and David Brunnstrom

WASHINGTON (Reuters) – The United States announced sanctions on Friday against six Hong Kong or Chinese officials it blamed for implementing a new security law in Hong Kong, following the mass arrests of pro-democracy activists this month.

Hong Kong police arrested 53 people on Jan. 5 in dawn raids on democracy activists in the biggest crackdown since China last year imposed a security law which opponents say is aimed at quashing dissent in the former British colony.

The six people targeted for new sanctions include Frederic Choi, director of the national security division of the Hong Kong police, and Sun Qingye, a deputy to Zheng Yanxiong, who was appointed in July to head a new national security office in Hong Kong. Also named were pro-Beijing legislator Tam Yiu-chung and You Quan of China’s United Front Work Department.

U.S. Secretary of State Pompeo warned last week of fresh sanctions in response to the arrests of pro-democracy activists. That warning came a day after supporters of President Donald Trump stormed Congress in a bid to overturn his November election defeat, prompting China’s state media to accuse U.S. politicians of “double standards.”

It was the latest in a series of last minute steps taken by Pompeo on foreign policy, several targeting China in what analysts see as a bid driven by Pompeo to lock in a tough approach to Beijing.

Trump has pursued hardline policies toward China on issues ranging from trade to espionage and the coronavirus.

His administration has already imposed sanctions on Chinese officials for their actions involving the pro-democracy movement and other alleged rights abuses, and last July declared an end to the territory’s privileged economic status under U.S. law.

The Trump administration took another swipe at China and its biggest companies on Thursday, imposing sanctions on officials and companies for alleged misdeeds in the South China Sea and imposing an investment ban on nine more firms.

Last Saturday, Pompeo said he was lifting restrictions on contacts between U.S. officials and counterparts in Taiwan, a move that greatly angered Beijing, which considers the island a renegade province.

(Reporting by Humeyra Pamuk, Daphne Psaledakis and David Brunnstrom; editing by Jonathan Oatis)

More transmissible UK coronavirus variant found in 10 U.S. states, CDC says

By Julie Steenhuysen

CHICAGO (Reuters) – A new, more transmissible variant of the coronavirus first discovered in Britain has been detected in 10 U.S. states, the U.S. Centers for Disease Control and Prevention said on Friday, warning that it could become the dominant circulating variant in the United States by March.

The variant, known as B.1.1.7, is believed to be twice as transmissible as the current version of the virus circulating in the United States.

Its rapid spread will increase the burden on health resources at a time when infections are surging, further sapping strained healthcare resources and increasing the need for better adherence to mitigation strategies, such as social-distancing and mask-wearing, the CDC said in its weekly report on death and disease.

It also increases the percentage of the population that needs to be vaccinated to achieve protective herd immunity to control the pandemic, the CDC said.

(Reporting by Julie Steenhuysen; Editing by Paul Simao)

Fed’s Kashkari sees pandemic hampering activity through all of 2021

(Reuters) – Federal Reserve Bank of Minneapolis President Neel Kashkari on Friday said he believes the pandemic will weigh on Americans through all of 2021, and emphasized the need for a speedier vaccine rollout as well as continued fiscal support.

“It’s a long time until we can get to the other side of that,” he said in a virtual town hall held by the Minnesota Hospital Association, citing new virus variants and the slow rollout of vaccines as making him more cautious over the outlook.

Americans will still need to wear masks and keep social distance through the end of the year, he forecast, delaying the return to normal economic function.

“It’s clear that the pandemic has a way to go and that many many people and many many businesses and hospitals need support until we can get this pandemic behind us, and get back to what we all know is normal, and hopefully strong growth from there,” Kashkari said. “The more that we are able to get the vaccine out faster, the shorter this pandemic will end up being.”

(Reporting by Ann Saphir; Editing by Andrea Ricci)

COVID-19 tests: Central America’s latest tool to stop migrant caravans

By Sofia Menchu and Lizbeth Diaz

GUATEMALA CITY (Reuters) – As the first groups from Central America headed toward the Guatemalan border on Thursday as part of a caravan aiming to reach the United States, regional governments are using coronavirus measures as the latest tool to curtail migration.

Guatemala, Honduras, El Salvador and Mexico issued a joint declaration this week imposing coordinated health measures to deter migration, including requirements to produce negative coronavirus tests at border checkpoints.

The tightening by Mexican and Central American authorities, coupled with pandemic-linked U.S. border restrictions in place since March, represent a sweeping effort to use public health regulations to deter movement along one of the world’s busiest migration routes at a time when a fierce second wave of coronavirus is sweeping the region.

In Mexico, the pandemic has killed nearly 137,000 people and the capital’s hospitals are spiking with COVID-19 cases.

This week’s caravan, slated to depart Honduras on Friday, would be the first of the year.

Yet, Central American and Mexican authorities are stepping up efforts to stop migrants well before the U.S. border, which will likely be a relief for Biden, whose aides have privately expressed concerns about the prospect of a growing numbers of migrants seeking to enter the United States in the early days of his administration.

On Thursday, Guatemala cited the pandemic in order to declare emergency powers in seven Guatemalan border provinces migrants frequently transit through en route to the Mexican border. The measures limit public demonstrations and allow authorities to disperse any public meeting, group or demonstration by force.

Honduras and Guatemala have also announced they will deploy thousands of soldiers to preemptively stop caravan members not complying with health regulations.

“We barely have food to eat, how do they think we are going to pay for these (coronavirus) tests?” said 29-year-old Ulises Santos from El Salvador, who is hoping to join the caravan.

Central America is reeling from economic crises, high rates of violence, and the devastating fallout of two major hurricanes that battered the region in November.

Migration experts say the public health measures are part of a broader effort by Central American and Mexican authorities, under pressure from Washington, to stop migrants before they reach U.S. territory.

“The U.S. border is moving further and further south,” said renowned Honduran human rights activist Ismael Moreno.

“The goal (of local police) is to stop migrants, whether through repression, threats, extortion, or requirements to present a COVID-19 test.”

(Reporting by Lizbeth Diaz in Mexico City and Sofia Menchu in Guatemala, additional reporting by Gustavo Palencia in Honduras, Jose Torres in Tapachula, Laura Gottesdiener in Monterrey; editing by Jonathan Oatis and Diane Craft)

COVID-19, renewed benefits boost U.S. weekly jobless claims

By Lucia Mutikani

WASHINGTON (Reuters) – The number of Americans filing first-time applications for unemployment benefits surged last week, confirming a weakening in labor market conditions as a worsening COVID-19 pandemic disrupts operations at restaurants and other businesses.

The larger-than-expected increase in weekly unemployment claims reported by the Labor Department on Thursday was seen by some economists as driven by the recent renewal of supplemental jobless benefits, but nonetheless raised the risk of further job losses in January after nonfarm payrolls slumped in December for the first time in eight months.

“The economy clearly needs additional support from Washington because right now rising jobless claims tells us the labor market recovery has stalled and the direction is full-tilt down,” said Chris Rupkey, chief economist at MUFG in New York.

Initial claims for state unemployment benefits increased 181,000 to a seasonally adjusted 965,000 for the week ended Jan. 9, the highest since late August. Economists polled by Reuters had forecast 795,000 applications in the latest week.

Unadjusted claims shot up 231,335 to 1.151 million last week. Economists prefer the unadjusted number because of earlier difficulties adjusting the claims data for seasonal fluctuations due to the economic shock caused by the pandemic. Including a government-funded program for the self-employed, gig workers and others who do not qualify for the regular state unemployment programs 1.4 million people filed claims last week.

U.S. stocks opened higher as investors awaited details of Biden’s rescue plan. The dollar rose against a basket of currencies. U.S. Treasury prices were lower.

STRICTER MEASURES

The surge in claims last week also likely reflected reapplications for benefits following the government’s renewal of a $300 unemployment supplement until March 14 as part of the latest stimulus package. Government-funded programs for the self-employed, gig workers and others who do not qualify for the state unemployment programs as well as those who have exhausted their benefits were also extended.

“Not all individuals eligible for unemployment assistance actually claim benefits, and the supplementary payments add an incentive to file for benefits,” said Nancy Vanden Houten, lead U.S. economist at Oxford Economics in New York.

Authorities in many states have banned indoor dining to slow the spread of the coronavirus. The economy shed jobs in December for the first time in eight months.

The Federal Reserve’s Beige Book report of anecdotal information on business activity collected from contacts nationwide in early January showed on Wednesday that “contacts in the leisure and hospitality sectors reported renewed employment cuts due to stricter containment measures.”

The central bank also noted that the resurgence in the coronavirus was causing staff shortages in the manufacturing, construction and transportations sectors. The virus has infected more than 22.5 million people in the United States and killed over 376,188, the most of any country.

Though jobless claims have dropped from a record 6.867 million in March, they remain above their 665,000 peak during the 2007-09 Great Recession. Economists say it could take several years for the labor market to recover from the pandemic.

The claims report showed the number of people receiving benefits after an initial week of aid increased 199,000 to 5.271 million during the week ending Jan. 2. At least 18.4 million were on unemployment benefits on all programs in late December.

Labor market stress could curb inflation amid signs of rising price pressures. In a separate report on Thursday, the Labor Department said import prices jumped 0.9% in December after rising 0.2% in November. Import prices were boosted by higher prices for energy products and recent dollar weakness.

Economists had forecast import prices, which exclude tariffs, accelerating 0.7% in December. In the 12 months through December, import prices slipped 0.3% after dropping 1.0% in November.

(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama and Andrea Ricci)

U.S. tops 10 million COVID vaccinations as California expands eligibility for shots

By Peter Szekely and Dan Whitcomb

(Reuters) – More than 10 million Americans had received their first dose of a COVID-19 vaccine as of Wednesday, according to the U.S. Centers for Disease Control and Prevention, as the year-old pandemic roared on unchecked.

The United States reached 10.2 million inoculations one day after the CDC and Trump administration gave new guidance to U.S. states on who should receive the shots first. Strict rules putting healthcare workers first in line had slowed the rollout. Now states are urged to vaccinate anyone over 65 as well.

California moved on Wednesday to do just that, designating all individuals 65 and older eligible to begin receiving vaccines, adding 6.6 million people to the rolls of those qualified to be immunized, Governor Gavin Newsom said.

The move bumps senior citizens, regardless of whether they have underlying medical conditions, to the top of the priority list for vaccine recipients, just behind front-line healthcare workers and residents and staff of nursing homes.

California, like many states, has struggled to use up as much vaccine as it received in initial allotments from the federal government, administering only about a third of the nearly 2.5 million doses shipped to the state as of Monday.

Newsom has set a goal of inoculating 1 million more Californians by the end of this week with the first shot of the two-dose vaccine.

He also said the state would launch a new system next week for notifying people when they become eligible for the vaccine, and to register for notification by email or text.

The latest push to spur the most ambitious mass immunization campaign in U.S. history came as the nation set a new record for coronavirus deaths in one day, with 4,336 fatalities on Tuesday, according to a Reuters tally.

Health and Human Services Secretary Alex Azar on Tuesday said the administration was releasing its full stockpile of two vaccines approved for emergency use, including some that had been held in reserve to make sure that second doses could be given on schedule.

Nearly 30 million doses of the vaccines, manufactured by Moderna and Pfizer with its German partner BioNTech, have been released to U.S. states, which have used only about one-third of them.

Johnson & Johnson said on Wednesday that the pharmaceutical company was on track to roll out its single-shot vaccine in March.

In an interview with Reuters on Tuesday, Dr. Paul Stoffels also said J&J expected to meet its stated target of delivering 1 billion doses of its vaccine by the end of this year as the company ramps up production.

Political leaders and health officials nationwide have scrambled in recent days to push out more vaccines to their residents, many lowering the age requirement to 65. California and New York have both pledged to inoculate one million residents this month.

NEW YORK SEEKS MORE VACCINE

In New York City, Mayor Bill de Blasio, a Democrat, said on Wednesday that short supplies of the vaccine could hamper efforts to reach the city’s inoculation goals.

“We need the federal government, the state government and the manufacturers to step up and get us more supply immediately,” de Blasio told a news conference.

The nation’s most populous city is adding vaccination sites across its five boroughs, including its two Major League Baseball stadiums.

“I confirmed with our healthcare team yesterday that even with normal supplies that we expect to have delivered next week, we will run out of vaccine at some point next week, unless we get a major new resupply,” de Blasio said.

Public health officials say so far no U.S. state has used up its supply of the vaccines.

At the Javits Center in Manhattan, which was pressed into service as a temporary hospital in April, health officials said they were prepared to vaccinate 10,000 people in 12 hours, with the ability to ramp up to 25,000 in a 24-hour period.

New York has recorded nearly 40,000 coronavirus fatalities since the pandemic broke out there in March, more than any other U.S. state.

Nationwide more than 380,000 people have died of COVID-19. A total of 22.7 million have been infected during that time.

The number of COVID-19 patients requiring hospitalization may have leveled off at least temporarily, according to a Reuters tally, although public health officials warned that further spread may still be seen from holiday gatherings.

California, the nation’s most populous state, has seen new hospitalizations drop this week, according to health officials. More than 30,000 Californians have so far died of COVID-19 related illness.

The recent emergence of a more infectious variant of the virus first seen in the United Kingdom has made efforts to accelerate vaccinations all the more important. The so-called UK variant has so far been confirmed in at least 10 U.S. states.

(Reporting by Peter Szekely and Andrew Hofstetter in New York, Julie Steenhuysen in Chicago and Dan Whitcomb and Steve Gorman in Los Angeles; Editing by Cynthia Osterman, Alistair Bell and Catherine Evans)

U.S. government executes woman for first time in nearly seven decades

By Bhargav Acharya and Jonathan Allen

(Reuters) – The United States executed Lisa Montgomery, a convicted murderer and the only woman on federal death row, early on Wednesday, making her the first female prisoner to be executed by the federal government since 1953.

Montgomery was convicted in 2007 in Missouri of kidnapping and strangling Bobbie Jo Stinnett, then eight months pregnant. Montgomery cut Stinnett’s fetus from the womb and tried to pass off the child as her own.

After Montgomery was strapped to a gurney in the government’s death chamber, a female executioner asked if she had any last words. Montgomery responded in a quiet, muffled voice, “No,” according to a reporter who served as a media witness.

Federal judges in multiple courts had delayed her execution to allow for hearings on whether she was too mentally ill to understand her punishment and whether the government had given insufficient notice of her execution date under law.

But around midnight the U.S. Supreme Court’s conservative majority summarily dismissed the final obstacles, and Montgomery was pronounced dead at 1:31 a.m. EST (0631 GMT) at the Department of Justice’s execution chamber at a prison in Terre Haute, Indiana. Some of Stinnett’s relatives attended as witnesses but declined to speak with the media, the Justice Department said.

Montgomery’s execution was opposed by United Nations human rights experts, several dozen former prosecutors, and multiple groups against violence to women, prompting debate over the role past trauma can play in some of the most horrific crimes prosecuted by the justice system.

Montgomery was the 11th person executed on federal death row since the practice was resumed last year under President Donald Trump, a Republican and an outspoken proponent of capital punishment. Before Trump, there had been only three federal executions since 1963.

Kelley Henry, Montgomery’s lawyer, called the execution “vicious, unlawful, and unnecessary exercise of authoritarian power.” Some doctors who examined Montgomery testified that her brain was structurally damaged and she suffered from psychosis, auditory hallucinations and other mental illness, exacerbated by the abuse and rapes she suffered at the hands of her mother and stepfather.

“No one can credibly dispute Mrs. Montgomery’s longstanding debilitating mental disease — diagnosed and treated for the first time by the Bureau of Prisons’ own doctors,” Henry said in a statement. “Our Constitution forbids the execution of a person who is unable to rationally understand her execution.”

Until this week, she had been held for many years at FMC Carswell in Texas, a federal hospital prison for female inmates with mental illness.

It was one of three executions the U.S. Department of Justice had scheduled for the final full week of Trump’s administration. Two other executions scheduled for Thursday and Friday have been delayed, for now at least, by a federal judge in Washington, to allow the condemned murderers to recover from COVID-19.

(Reporting by Bhargav Acharya and Kanishka Singh in Bengaluru and Jonathan Allen in New York; Editing by Kenneth Maxwell and Howard Goller)

Oil steady as U.S. inventory drop contends with demand woes

By Laila Kearney

NEW YORK (Reuters) – Oil prices were little changed on Wednesday, supported by a bigger-than-expected drop in U.S. crude inventories but under pressure as rising global COVID-19 cases threatened global fuel demand.

Brent crude prices were down 7 cents at $56.51 a barrel by 10:55 a.m. EST (1555 GMT). An earlier rise took prices as high as $57.42 a barrel, the strongest since Feb. 24.

U.S. West Texas Intermediate (WTI) was down 11 cents, or 0.3%, at $53.32. The session high of $53.93 was its highest since Feb. 20.

U.S. crude inventories fell by 3.2 million barrels in the week to Jan. 8 to 482.2 million barrels, exceeding analysts’ expectations in a Reuters poll for a 2.3 million-barrel drop, as refiners increased crude runs, the Energy Information Administration said.

“The strong tick higher in refining activity has resulted in the fifth consecutive draw to oil inventories, pushing them to their lowest since last March,” said Matt Smith, director of commodity research at ClipperData.

Refinery crude oil runs were up by 274,000 barrels per day in the last week, EIA said.

Adding to optimism over a tightening market, Saudi Arabia cut supplies of crude for February loading for at least three Asian buyers while meeting requirements of at least four others, several refinery and trade sources told Reuters.

But rising COVID-19 cases that continue to spur restrictions on travel and other activities by governments across the world limited oil prices and the pandemic is expected to cast a shadow on the market for months to come, analysts said.

“While I see crude prices trading higher over the coming months, investors need to be mindful that the road to higher oil demand and prices will remain bumpy,” UBS oil analyst Giovanni Staunovo said.

Governments across Europe announced tighter and longer coronavirus lockdowns on Wednesday over fears about a fast-spreading variant first detected in Britain, with vaccinations not expected to help much for another two to three months.

China recorded the biggest daily jump in COVID cases in more than five months, despite four cities in lockdown, increased testing and other measures aimed at preventing another wave of infections in the world’s second biggest economy.

(Additional reporting by Ahmad Ghaddar in London and Aaron Sheldrick in TOKYO; Editing by Kirsten Donovan, Philippa Fletcher and David Gregorio)

Iran launches missile drill amid rising tensions with U.S

DUBAI (Reuters) – Iran’s military launched a short-range naval missile drill on Wednesday, Iranian state TV reported, at a time of high tension between arch foes Tehran and Washington.

Iran has one of the biggest missile programs in the Middle East, regarding such weapons as an important deterrent and retaliatory force against U.S. and other adversaries in the event of war.

The West sees Iran’s missiles both as a conventional military threat to regional stability and a possible delivery mechanism for nuclear weapons should Tehran develop them.

The Iranian-made warship Makran, which state media described as Iran’s biggest warship with a helicopter pad, and a missile-launching ship called Zereh (armor) were taking part in the two-day exercise in the Gulf of Oman.

Tensions between the United States and Iran have risen since 2018, when President Donald Trump abandoned the 2015 nuclear deal. The United States restored harsh sanctions to pressure Iran into negotiating stricter curbs on its nuclear program, ballistic missile development and support for regional proxy forces.

In recent years, there have been periodic confrontations between Iran’s military and U.S. forces in the Gulf, where Tehran holds annual exercises to display the Islamic Republic’s military might to confront “foreign threats.”

Last week, Iran’s Revolutionary Guards Corps seized a South Korean-flagged tanker in Gulf waters and detained its crew amid tensions between Tehran and Seoul over Iranian funds frozen in South Korean banks due to U.S. sanctions.

In early 2019, Iran heightened tensions in the world’s busiest oil waterway by seizing British-flagged tanker Stena Impero two weeks after a British warship had intercepted an Iranian tanker off the coast of Gibraltar.

(Writing by Parisa Hafezi; Editing by Nick Macfie)

U.S. counter-intelligence chief worried about China, Russia threats to vaccine supply chain

By Jonathan Landay

WASHINGTON (Reuters) – The U.S. counter-intelligence chief said on Tuesday he was worried about threats from China and Russia to disrupt the coronavirus vaccine supply chain in the United States.

William Evanina, director of the U.S. National Counterintelligence and Security Center, told an online Washington Post event that U.S. adversaries were trying to interfere with Operation Warp Speed, the U.S. government operation distributing the vaccines.

“Our adversaries are trying to disrupt that supply chain,” he said. Asked which adversaries he was particularly concerned about, he replied, “I would say China and Russia right now.”

The Chinese and Russian embassies did not immediately respond to requests for comment on Evanina’s assertion. Russia and China have denied U.S. accusations that hackers linked to both governments tried to steal data from vaccine manufacturers.

U.S. states are scrambling to accelerate inoculations as infections and deaths surge – COVID-19 has claimed on average about 3,200 lives nationwide every day over the past week.

Since the pandemic began more than 10 months ago nearly 375,000 people in the country have died, according to a Reuters count.

Evanina said that his agency was working with the U.S. Army and the Department of Health and Human Services to ensure the safe “transportation” of the vaccines “from the manufacturing site to the end-user inoculation.”

Vaccines available are made by Pfizer and BioNTech and Moderna. Nearly 9 million Americans have received the first of two doses, according to the U.S. Centers for Disease Control and Prevention, less than one-third of the 25 million doses distributed by the federal government.

Public health experts have said no U.S. state has so far come close to using up its federal vaccine allotments, a much slower-than-expected roll-out blamed in part on rigid rules sharply limiting who can be inoculated.

(Reporting by Jonathan Landay; Writing by Doina Chiacu; Editing by Rosalba O’Brien and Grant McCool)