Pfizer, U.S. strike 100 million COVID-19 vaccine deal with 70 million due by June

By Ankur Banerjee and Vishwadha Chander

(Reuters) – The U.S. government will pay Pfizer Inc nearly $2 billion for 100 million additional doses of its COVID-19 vaccine to bolster its supply as the country grapples with a nationwide spike in infections.

Under the new agreement, Pfizer will deliver at least 70 million doses by June 30 and the rest no later than July 31, the company said on Wednesday, bringing the total number of doses to 200 million for a total price of about $4 billion.

The purchase price amounts to $19.50 per shot and is slightly higher than the $18.90 per dose that Reuters has reported the European Union has agreed to pay. The shot has been authorized for use in EU and the United States.

The U.S. deal comes after growing concern that the government had not done enough to secure doses of one of the two authorized vaccines, made more pressing amid a COVID-19 surge that has left hospitals struggling to find beds for the sick.

Pfizer’s two-dose vaccine, developed with German partner BioNTech, is being rolled out across the United States after the shot won emergency use authorization earlier this month. The country has also authorized a vaccine from Moderna Inc.

Pfizer and the government have said that they had been negotiating the terms of the agreement, with the company indicating it was trying to work out how to deliver the doses in the second quarter.

Pfizer and BioNTech have said they expect to produce 1.3 billion doses in 2021, but executives at the German biotech have said they were trying to boost manufacturing. Governments around the world are scrambling to get enough supplies of the vaccine to tame the pandemic that has killed about 1.7 million people globally and crushed economies.

“This new federal purchase can give Americans even more confidence that we will have enough supply to vaccinate every American who wants it by June 2021,” U.S. Department of Health and Human Services Secretary Alex Azar said in a statement.

“Securing more doses from Pfizer and BioNTech for delivery in the second quarter of 2021 further expands our supply of doses across the Operation Warp Speed portfolio.”

Pfizer said last week it may need the U.S. government to help it secure some components needed to make the vaccine. While the company halved its 2020 production target due to manufacturing issues, it said last week its manufacturing is running smoothly now.

The government also has the option to acquire up to an additional 400 million doses of the vaccine.

More than 600,000 Americans have received their first COVID-19 vaccine doses as of Monday, according to the Centers for Disease Control and Prevention (CDC).

The first wave of shots have so far gone to healthcare workers and nursing home residents, as well as some top government officials. Americans in “essential” jobs and those over 75 will likely start to receive vaccines in January while general population vaccinations will start in a few months.

(Reporting by Ankur Banerjee and Vishwadha Chander in Bengaluru; Editing by Caroline Humer and Sriraj Kalluvila)

Morocco hosts Israeli envoys, Kushner to hammer out new ties

By Ahmed Eljechtimi

RABAT (Reuters) – Israeli envoys arrived in Morocco on Tuesday to meet its king and hammer out an upgrade of ties that was forged by the White House in a foreign policy push by U.S. President Donald Trump.

Led by National Security Adviser Meir Ben-Shabbat, the Israeli delegation was accompanied by Jared Kushner, Trump’s son-in-law and architect of pan-Arab rapprochement with Israel.

They took El Al Israel Airlines in the first direct flight by a commercial plane from Tel Aviv to Rabat. Both countries anticipate a surge in tourism aboard such connections, mainly among the hundreds of thousands of Israelis of Moroccan descent.

Morocco followed the United Arab Emirates, Bahrain and Sudan in moving toward normal relations with Israel. Palestinians have censured the U.S.-brokered deals, seeing a betrayal of a long-standing demand that Israel first meet their statehood goals.

As the Trump administration has sought to isolate Iran, the deals have been sweetened with promises of business opportunities or economic aid. Israel’s new partners have also enjoyed bilateral benefits from Washington – in Rabat’s case, U.S. recognition of its sovereignty over the Western Sahara.

“This type of agreement (with Israel) will help have a better interaction between communities and people,” Moroccan Tourism Minister Nadia Fettah Alaoui told I24 television.

During the visit, Ben-Shabbat and Kushner will see Morocco’s King Mohammed VI, Israeli officials said. Moroccan and Israeli officials are also scheduled to sign accords on linking up aviation and financial systems, on visas and water management.

The delegates’ plane, painted with the Hebrew, Arabic and English words for “peace” and a Maghreb good-luck talisman, had a low-key reception at Rabat airport. Moroccan officials describe their deal with Israel as a restoration of mid-level ties that Rabat cooled in 2000 in solidarity with Palestinians.

Israel and Morocco now plan to reopen mutual “liaison offices.” Israel hopes these will be upgraded to embassies.

(Writing by Dan Williams; Editing by Andrew Heavens and Mark Heinrich)

U.S. imposes fresh sanctions on Syria in push for Assad to end war

WASHINGTON (Reuters) -The United States on Tuesday slapped fresh sanctions on Syria, targeting its central bank and blacklisting several people and entities in a continued effort to cut off funds for President Bashar al-Assad’s government.

The latest action, building on sanctions imposed on Syria earlier this year, marked another round in a U.S. campaign to push Assad’s government back into U.N.-led negotiations to end the country’s nearly decade-long war.

In a statement, the U.S. Treasury Department said the new sanctions add two individuals, nine business entities and the Central Bank of Syria to Washington’s Specially Designated Nationals and Blocked Persons List.

The U.S. State Department also designated Asma al-Assad, the British-born wife of the Syrian president, accusing her of impeding efforts for a political resolution to the war, and several members of her family, Secretary of State Mike Pompeo said in a statement. Asma al-Assad was previously hit with sanctions in June.

Millions of people have fled Syria and millions more have been internally displaced since a crackdown by Assad on protesters in 2011 led to civil war with Iran and Russia backing the government and the United States supporting the opposition.

Syria has been under U.S. and European Union sanctions that have frozen foreign-held assets of the state and hundreds of companies and individuals. Washington already bans exports to Syria and investment there by Americans, as well as transactions involving oil and hydrocarbon products.

(Reporting by Daphne Psaledakis and Lisa Lambert Editing by Chizu Nomiyama and Mark Heinrich)

U.S. ready to mediate discussions between Israel and Lebanon -Pompeo

WASHINGTON (Reuters) – U.S. Secretary of State Mike Pompeo on Tuesday said the United States is ready to keep working with Israel and Lebanon on negotiations for a maritime boundary, as the countries struggle to come to an agreement.

“Regrettably, despite goodwill on both sides, the parties remain far apart,” Pompeo said in a statement.  “The United States remains ready to mediate constructive discussions and urges both sides to negotiate based on the respective maritime claims both have previously deposited at the United Nations. ”

(Reporting by Lisa Lambert; Editing by Alison Williams)

U.S. CDC reports 316,844 deaths from coronavirus

(Reuters) – The U.S. Centers for Disease Control and Prevention (CDC) on Monday reported 17,790,376 cases of new coronavirus, an increase of 197,616 cases from its previous count, and said the number of deaths had risen by 1,584 to 316,844.

The CDC reported its tally of cases of the respiratory illness known as COVID-19, caused by a new coronavirus, as of 4 p.m. ET on Dec. 20 versus its previous report a day earlier.

The CDC figures do not necessarily reflect cases reported by individual states.

(Reporting by Trisha Roy in Bengaluru; Editing by Maju Samuel)

U.S. charges Libyan man in 1988 Pam Am Flight 103 bombing

By Mark Hosenball and David Shepardson

WASHINGTON (Reuters) – The United States on Monday unsealed criminal charges against a third alleged conspirator in the 1988 bombing of Pan Am Flight 103 over Lockerbie, Scotland that killed 270 people.

The Boeing 747 exploded and killed 190 Americans. “No amount of time or distance will stop the United States and our Scottish partners from pursuing justice in this case,” U.S. Attorney General William Barr told a news conference Monday.

The suspect, Abu Agila Mohammad Masud Kheir Al-Marimi, a former senior Libyan intelligence official, is charged with two criminal counts related to the bombing. He is in Libyan custody, Barr said Monday, and U.S. officials are hopeful that Libya will allow Masud to be tried in the United States.

The Justice Department said Masud worked in various capacities for Libyan intelligence, including as a technical expert in building explosive devices from approximately 1973 to 2011. It also alleged Masud was involved in the 1986 bombing of the LaBelle Discotheque in West Berlin, Germany that killed two U.S. service members.

In 1991, two other Libyan intelligence operatives were charged in the bombing: Abdel Baset Ali al-Megrahi and Lamen Khalifa Fhimah.

Megrahi was found guilty in Scotland of the Lockerbie bombing in 2001 and freed in 2009 on compassionate release grounds before dying of cancer in 2012.

Barr said the breakthrough that led to Masud’s charges came after law enforcement learned in 2016 that the third alleged conspirator “had been arrested after the collapse of the Qaddafi regime and interviewed by a Libyan law enforcement officer in September 2012.”

(Reporting by Mark Hosenball and David Shepardson; Editing by Chizu Nomiyama and Alistair Bell)

U.S. asked to prioritize frontline essential workers as distribution of Moderna shots begins

By Rajesh Kumar Singh and Carl O’Donnell

(Reuters) – An advisory panel on Sunday recommended U.S. frontline essential workers and people 75 and older should be next in line to get inoculated as the distribution of Moderna Inc’s vaccine, the second approved coronavirus vaccine, began across the country.

The U.S. Centers for Disease Control and Prevention’s (CDC) Advisory Committee on Immunization Practices voted 13 to 1 to recommend 30 million frontline essential workers, which include first responders, teachers, food and agriculture, manufacturing, U.S. Postal Service, public transit, and grocery store workers, have the next priority for the vaccines.

In all, the move would make 51 million people eligible to get inoculated in the next round. It was not immediately clear when the next round would begin.

About 200 million people including non-frontline workers such as those in media, finance, energy and IT and communication industries, persons in the 65-74 age group, and those aged 16-64 years with high-risk conditions should be in the ensuing round, the panel recommended.

States, which are the ones distributing shots to their residents, will use the advisory panel’s guidelines to decide on how to allocate the vaccines while supplies are scarce.

Inoculation against the disease is key to safely reopening large parts of the economy and reducing the risks of illness at crowded meatpacking plants, factories and warehouses. However, confusion has broken out over who exactly is considered essential during a pandemic.

Ahead of the vote, many companies and industry groups had been lobbying to get their U.S. workers in line to receive the vaccines immediately after healthcare professionals and long-term care facility residents.

Meanwhile, trucks of FedEx Corp and United Parcel Service Inc started picking up the doses from warehouses for deliveries to hospitals and other sites.

Vials of Moderna’s vaccine were filled in pharmaceutical services provider Catalent Inc’s facility in Bloomington, Indiana. Distributor McKesson Corp is shipping doses from facilities in places including Louisville, Kentucky, and Memphis, Tennessee – close to air hubs for UPS and FedEx.

Both FedEx and UPS said the shipments were running smoothly and everything was going exactly as planned.

Separately, U.S. health officials are monitoring the new strain of COVID-19 emerging in the United Kingdom, U.S. Surgeon General Jerome Adams said on Sunday, adding that any mutation shows people must keep protecting themselves from the novel coronavirus while awaiting vaccination.

British Prime Minister Boris Johnson and scientists announced on Saturday that the new virus strain had led to spiraling infection numbers, tightening the COVID-19 restrictions for London and nearby areas and disrupting the Christmas holiday plans of millions of people.

The variant, which officials say is up to 70% more transmissible than the original, has prompted concerns about a wider spread. Several European countries, including Belgium, Italy and the Netherlands, said they were taking measures to prevent people arriving from Britain, including bans on flights and trains.

The distribution of Moderna’s vaccine to more than 3,700 locations in the United States will vastly widen the rollout started last week by Pfizer Inc and German partner BioNTech SE.

U.S. COVID-19 vaccine program head Moncef Slaoui said it was most likely the first Moderna vaccine shot, which was approved by the Food and Drug Administration on Friday, would be given on Monday morning.

“We look forward to the vaccine. It’s going to be slightly easier to distribute because it doesn’t require as low (a) temperature as Pfizer,” Slaoui said on CNN.

The U.S. government plans to deliver 5.9 million Moderna shots and 2 million Pfizer shots this week.

Data from CDC shows 2.84 million doses have been distributed and 556,208 shots administered thus far.

The start of delivery for the Moderna vaccine will significantly widen availability of COVID-19 vaccines as U.S. deaths caused by the respiratory disease have reached more than 316,000 in the 11 months since the first documented U.S. cases.

Some states are choosing to use Moderna’s shots for harder-to-reach rural areas because they can be stored for 30 days in standard-temperature refrigerators. Pfizer’s must be shipped and stored at minus 70 Celsius (minus 94 Fahrenheit) and can be held for only five days at standard refrigerator temperatures.

Initial doses were given to health professionals. Programs by pharmacies Walgreens and CVS to distribute the Pfizer vaccine to long-term care facilities are expected to start on Monday.

(Reporting by Rajesh Kumar Singh in Chicago and Carl O’Donnell in New York; Additional reporting by Idrees Ali in Washington; Editing by Lisa Shumaker, Sonya Hepinstall and Daniel Wallis)

U.S. Supreme Court throws out challenge to Trump census immigrant plan

By Lawrence Hurley

WASHINGTON (Reuters) -The U.S. Supreme Court on Friday threw out a lawsuit seeking to block President Donald Trump’s plan to exclude immigrants living illegally in the United States from the population count used to allocate congressional districts to states.

The 6-3 ruling on ideological lines, with the court’s six conservatives in the majority and three liberals dissenting, gives Trump a short-term victory as he pursues his hardline policies toward immigration.

“At present, this case is riddled with contingencies and speculation that impede judicial review,” the ruling said. The decision noted that the court was not weighing the merits of Trump’s plan.

Challengers led by New York state and the American Civil Liberties Union said Trump’s proposal would dilute the political clout of states with larger numbers of such immigrants, including heavily Democratic California, by undercounting state populations and depriving them of seats in the U.S. House of Representatives.

“If the administration actually tries to implement this policy, we’ll sue. Again. And we’ll win,” said Dale Ho, a lawyer for the American Civil Liberties Union who represents the challengers.

The administration has not disclosed what method it would use to calculate the number of people it proposed to exclude or which subsets of immigrants would be targeted. Acting Solicitor General Jeffrey Wall told the justices during the Nov. 30 oral argument in the case that the administration could miss a Dec. 31 statutory deadline to finalize a Census Bureau report to Trump containing the final population data, including the number of immigrants excluded.

During the oral argument, Wall told the justices that it is “very unlikely” the administration would amass data to exclude all immigrants in the country illegally. Instead, Wall said, it may propose excluding certain groups, such as the fewer than 100,000 in federal detention, and the total number may not be high enough to affect apportionment.

Liberal Justice Stephen Breyer wrote in a dissenting opinion that the government can currently try to exclude millions of individuals, including those who are in immigration detention or deportation proceedings, and the some 700,000 young people known as “Dreamers” who came to the U.S. illegally as children.

“Where, as here, the government acknowledges it is working to achieve an allegedly illegal goal, this court should not decline to resolve the case simply because the government speculates that it might not fully succeed,” Breyer added.

There are an estimated 11 million immigrants living in the United States illegally. The challengers have argued that Trump’s policy violates both the Constitution and the Census Act, a federal law that outlines how the census is conducted.

The Constitution requires apportionment of House seats to be based upon the “whole number of persons in each state.” Until now, the U.S. government’s practice was to count all people regardless of their citizenship or immigration status.

By statute, the president is required to send Congress a report in early January with the population of each of the states and their entitled number of House districts.

The challengers have argued that Trump’s plan could leave several million people uncounted and cause California, Texas and New Jersey to lose House seats.

A three-judge panel in New York ruled against the administration in September.

The Supreme Court in June 2019 ruled against Trump’s effort to add a citizenship question to the census. Critics said the question was intended to frighten immigrants from taking part in the population count and artificially reduce population numbers in heavily Democratic areas.

(Reporting by Lawrence Hurley; additional reporting by Andrew Chung; editing by Jonathan Oatis)

COVID-19 surge pushes U.S. hospitals to brink as 2nd vaccine nears approval

By Susan Heavey and Sharon Bernstein

WASHINGTON (Reuters) – An unrelenting U.S. coronavirus surge pushed besieged hospitals further to the brink as the United States pressed on with its immunization rollout on Thursday and prepared to ship nearly 6 million doses of a new vaccine on the cusp of winning regulatory approval.

COVID-19 hospitalizations rose to record heights for a 19th straight day, with nearly 113,000 coronavirus patients counted in U.S. medical facilities nationwide on Wednesday, while 3,580 more perished, the most yet in a single day.

The virus has claimed over 311,000 lives in the United States to date, and health experts have warned of a deepening crisis this winter as intensive care units (ICUs) fill up and hospital beds spill over into hallways.

“We expect to have more dead bodies than we have spaces for them,” Los Angeles Mayor Eric Garcetti said at a briefing on Thursday, adding that the country’s second-largest city had fully exhausted its ICU capacity.

The number of U.S. cases rose by at least 239,018 on Thursday, according to a Reuters tally, the highest one-day increase since the pandemic began, driving the number of known infections nationally to more than 17 million.

The tolls mounted as U.S. regulators weighed whether to grant emergency use authorization for a vaccine developed by Moderna Inc, just a week after an earlier vaccine from Pfizer Inc and German partner BioNTech SE won consent for mass distribution.

A panel of outside advisers to the U.S. Food and Drug Administration overwhelmingly endorsed Moderna’s vaccine candidate for emergency use after a daylong meeting on Thursday. FDA authorization could come as soon as Friday.

Both vaccines require two doses, given three or four weeks apart, for each person inoculated.

The initial 2.9 million doses of the Pfizer/BioNTech vaccine began shipping on Sunday and were still making their way to hospitals across the country and into the arms of doctors, nurses, and other frontline medical professionals.

Some of the first shots were also going to residents and staff of long-term care facilities. Other essential workers, senior citizens and people with chronic health conditions will be next on the list.

BEDS IN CORRIDORS

It will take several months before vaccines are widely available to the public on demand, and opinion polls have found many Americans are hesitant about getting inoculated.

Some are distrustful of immunizations in general, and some are wary of the unprecedented speed with which the first vaccines were developed and rolled out – 11 months from the first documented U.S. cases of COVID-19.

Health authorities have sought to reassure Americans that large-scale clinical trials and rigorous scientific review found the vaccines to be safe as well as highly effective at preventing illness.

Those messages have been combined with urgent pleas for Americans to remain diligent about social distancing and mask-wearing until immunizations become widely available.

Data shows infections continuing to spread virtually unabated across much of the country, apparently fueled by increased transmissions of the virus as many Americans disregarded warnings to avoid social gatherings and unnecessary travel over the Thanksgiving holiday last month.

California has been hit particularly hard in recent weeks, with many of its hospitals reporting ICUs at or near capacity, a dire situation that triggered a renewal of sweeping stay-at-home orders across much of the state.

“Hospitals and healthcare workers continue to be stretched to the limit, as we continue to surge beyond even what we anticipated. And we’re not even through the holidays yet,” said Adam Blackstone, a spokesman for the Hospital Association of Southern California.

In San Bernardino County, where available ICU space was down to zero, newly admitted patients at Arrowhead Regional Medical Center were lined up in beds in corridors waiting for care, spokeswoman Justine Rodriguez told Reuters.

With the strain taking a growing toll on medical staff, the race to expand vaccinations is seen as critical to preventing a collapse of healthcare systems.

Health and Human Services Secretary Alex Azar told CNBC on Thursday that 5.9 million Moderna vaccine doses had been allotted for state governments to receive and were ready to distribute nationwide starting at the weekend.

The Moderna vaccine has less onerous cold storage requirements than the Pfizer/BioNTech shot, making it a better option for remote and rural areas.

Nevertheless, ambivalence over the vaccine has emerged even among pockets of healthcare workers designated as first in line for inoculation.

“Some are on the fence. Some feel that we need to get it done. It’s split down the middle,” Diego Montes Lopez, 28, a phlebotomist at Martin Luther King Jr. Community Hospital in South Los Angeles, said of co-workers after getting injected himself.

But Dr. Simon Mates, an ICU co-medical director at Dignity Health California Hospital Medical Center in downtown Los Angeles, said the physicians and nurses he knows view the vaccine as having arrived at a crucial moment.

“Our biggest concern was: ‘What if one of us gets sick?’ But now with the vaccine, that concern seems to be ebbing,” said Mates, who learned Wednesday that he had already received the vaccine, rather than a placebo, as a participant in the Pfizer trials. “It’s one less thing to worry about.”

(Reporting by Susan Heavey, Sharon Bernstein, Dan Whitcomb, Manas Mishra, Peter Szekely, Richard Cowan, Susan Cornwell, Lucy Nicholson and Anurag Maan; Writing by Daniel Trotta and Steve Gorman; Editing by Steve Orlofsky, Bill Berkrot, Grant McCool and Richard Pullin)

Low-income U.S. households are spending savings quicker than high earners: study

By Jonnelle Marte

(Reuters) – U.S. households across the board built up savings during the pandemic, but low-income households are burning through their cash more quickly than higher-income families and could be out of savings soon if more aid is not delivered, according to a study released on Wednesday.

By the end of October, the median low-income family spent 64% of the extra cash they accumulated this year compared with last year, leaving them with about $236 in extra cash, according to a report released Wednesday by the JPMorgan Chase Institute. In contrast, higher-income households lost just 38% of the cash cushion built up this year, and had a median $810 in savings, the study found.

“If these trends continue, we would expect low-income families to deplete their account balance gains sooner than their high-earning counterparts,” researchers noted in the report.

The JPMorgan Chase study showed that cash balances appeared steady on average after rising earlier this year, in line with a separate report released by the Federal Reserve last week showing that balances in cash, checking accounts and savings deposits rose over the three months ending in September to a record $13.4 trillion.

But a look at cash balances for the median household – which is not affected as much by households with abnormally high, or unusually low, account balances – showed a more volatile experience.

The median cash balance for checking account holders studied by JPMorgan Chase rose in the spring when the government distributed cash payments to most households – and balances have been declining since.

Those households could experience another substantial drop in income and spending at the end of the year when unemployment benefits are set to expire for millions of workers participating in pandemic programs created by the CARES Act, the researchers said.

Consumers have previously cut spending on non-durable goods by 12% after losing unemployment benefits, and those receiving jobless benefits reduced spending by 14% over the summer after a $600 weekly supplement to unemployment benefits expired at the end of July, the study noted.

Lawmakers have yet to reach an agreement on another round of aid. Some COVID-19 relief measures could be attached to a critical spending measure that must be passed by Friday to avoid a federal government shutdown.

(Reporting by Jonnelle Marte in New York; Editing by Matthew Lewis)