Trump and 17 states back Texas bid at Supreme Court

By Jan Wolfe and Andrea Shalal

WASHINGTON (Reuters) – President Donald Trump on Wednesday asked the U.S. Supreme Court to let him join a lawsuit by Texas seeking to throw out the voting results in four states, litigation that also drew support from 17 other states.

In a separate brief, lawyers for 17 states led by Missouri’s Republican Attorney General Eric Schmitt also urged the nine justices to hear the Texas lawsuit.

Trump on Wednesday vowed to intervene in the lawsuit though he did not provide details on the nature of the intervention including whether it would be by presidential campaign or the U.S. Justice Department.

Writing on Twitter, Trump said, “We will be INTERVENING in the Texas (plus many other states) case. This is the big one. Our Country needs a victory!”

The lawsuit, announced on Tuesday by the attorney general of Texas, Ken Paxton, targeted four states.

In addition to Missouri, the states joining Texas were: Alabama, Arkansas, Florida, Indiana, Kansas, Louisiana, Mississippi, Montana, Nebraska, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Utah and West Virginia.

The lawsuit was filed directly with the Supreme Court rather than with a lower court, as is permitted for certain litigation between states.

The Texas suit argued that changes made by the four states to voting procedures amid the coronavirus pandemic to expand mail-in voting were unlawful. Texas asked the Supreme Court to immediately block the four states from using the voting results to appoint presidential electors to the Electoral College.

Texas also asked the Supreme Court to delay the Dec. 14 date for Electoral College votes to be formally cast, a date set by law in 1887.

(Reporting by Andrea Shalal and Jan Wolfe; Editing by Tim Ahmann and Will Dunham)

U.S. CDC reports 282,785 deaths from coronavirus

(Reuters) – The U.S. Centers for Disease Control and Prevention (CDC) on Tuesday reported 14,823,129 cases of the new coronavirus, an increase of 186,215 cases from its previous count, and said that the number of deaths had risen by 1,532 to 282,785.

The CDC reported its tally of cases of the respiratory illness known as COVID-19, caused by a new coronavirus, as of 4 pm ET on Dec. 7 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)

As U.S. companies push to get workers vaccinated, states disagree on who’s essential

By Tina Bellon and Richa Naidu

NEW YORK/CHICAGO (Reuters) – Companies and industry groups lobbying to get their U.S. workers to the front of the line for COVID vaccination are running into a patchwork of state plans and confusion over who is essential, and who is not.

Inoculation against the disease caused by the novel coronavirus is key to safely reopening large parts of the economy and reducing the risks of illness at crowded meatpacking plants, factories and warehouses.

But before one needle has entered the arm of an American worker, confusion has broken out over who exactly is considered essential during a pandemic.

With initial vaccine doses limited and strong federal guidance lacking, it has fallen to U.S. states to determine who will be first in line to receive a vaccine, and who will have to wait well into next year.

State vaccine distribution plans reviewed by Reuters showed broad discrepancies over who would be considered essential, with some states clearly outlining specific worker groups and others not providing any clarity.

Generally, states have broad discretion when it comes to vaccine distribution and policy and are able to issue vaccination mandates for their residents.

Many states have so far followed federal guidance to give meat and food processing industry workers space in the line, but some are slowly moving away, said Mark Lauritsen, a former hog slaughter worker who now advocates on behalf of about 250,000 meatpacking and food processing workers under the United Food and Commercial Workers union.

“For example, Colorado has not moved meatpacking and meat-processing as high as some other states. So we’ll be directing a lot of our effort towards places like Colorado where we may be moved down the food chain.”

“We’re a union that has members in every state so we will be talking to every state to make our case as to where our place in line should be…Everybody is going to be jockeying for a place in line.”

More than 20 large industries have urged officials to prioritize their workers, including individual companies such as ride-hailing company Uber Technologies Inc and food delivery provider DoorDash Inc and industry groups representing truck drivers, teachers, retail workers and other business sectors.

DoorDash in its letter calling for preferred vaccine access for its delivery workers said the company could also help public health officials communicate vaccine information through its platform.

At least 22 industries, including agricultural companies, cleaning suppliers, dental hygienists, bus drivers and meat packers, also have written to the Advisory Committee on Immunization Practices (ACIP), an independent panel of health experts recommending vaccine distribution guidelines to the U.S. Centers for Disease Control and Prevention.

WHO IS ESSENTIAL?

“We’re hopeful that local health officials start jumping on this quicker rather than later so that there’s some guidance and some better sense of how to be efficient with the essential workforce,” said Bryan Zumwalt, executive vice president of public affairs for the Consumer Brands Association.

The group representing consumer products makers including Procter & Gamble Co and Coca-Cola Co, has sent letters to nearly all 50 U.S. states and federal officials, urging their nearly 1.2 million workers to be prioritized for a vaccine.

ACIP to date has only recommended healthcare personnel and residents of long-term care facilities should receive the vaccine first – a priority not disputed by any industry or state. ACIP members did not respond to a request for comment or declined to comment pending the discussions.

While some states have said they would await the committee’s further recommendations, others went ahead and developed their own vaccine distribution priorities, a review of COVID-19 vaccine distribution plans showed.

In New York, essential frontline workers regularly interacting with the public, such as pharmacists, grocery store workers and transit employees, are slated to receive the vaccine in a second distribution phase, while Florida included all essential workers on a U.S. Homeland Security list.

But that Homeland Security department list, spanning more than 25 major industries, makes up nearly 70% of the U.S. labor force, according to researchers at the National Bureau of Economic Research.

Georgia’s plan said the state was working with various industries, including poultry plants, manufacturers and warehouse distributors.

In North Carolina, which has one of the most detailed distribution plans spanning nearly 150 pages, workers in meatpacking, seafood, poultry and food processing, transportation and retail would be included in an early phase so long as they had at least two chronic conditions that put them at high risk.

Pennsylvania’s distribution plan on the other hand only includes three pages, stating merely that those “contributing to the maintenance of core societal functions” would be prioritized.

(Reporting by Tina Bellon in New York, Richa Naidu in Chicago; Editing to Joe White and Lisa Shumaker)

U.S. third-quarter productivity pared; unit labor costs revised up

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. worker productivity increased strongly in the third quarter, though the pace of growth was likely overstated as the sharp rebound in output from the COVID-19 pandemic recession has far outpaced employment gains.

The Labor Department said on Tuesday nonfarm productivity, which measures hourly output per worker, increased at a 4.6% annualized rate last quarter. The slight downward revision from the 4.9% pace estimated last month followed a 10.6% rate of growth in the second quarter, which was the fastest since the first quarter of 1971.

The economy expanded at a historic 33.1% annualized rate in the July-September quarter, thanks to more than $3 trillion in government pandemic relief for businesses and workers. That followed a record 31.4% pace of contraction in the second quarter. Strong productivity explains the divergence between GDP growth and the labor market.

The economy has recouped two-thirds of output lost during the coronavirus crisis, while only about 56% of the 22.2 million jobs lost in March and April. A wide gap between output and employment is not unusual during recessions, with a similar trend observed during the 2007-09 Great Recession.

Economists polled by Reuters had forecast productivity growth would be unrevised at a 4.9% rate in the third quarter. The COVID-19 downturn has decimated lower-wage industries, like leisure and hospitality, which economists say tend to be less productive.

According to Moodys’ Analytics chief economist, Mark Zandi, there has been a shift in economic activity to big companies from small and medium-sized retailers. Zandi also noted that big businesses across industries are taking advantage of the pandemic to aggressively implement labor-saving technology.

“The underlying rate of productivity has not shifted from what it was before,” said Zandi. “There is no fundamental shift in productivity growth going forward, but it means it’s going to take a while to recover all the jobs lost unless we have good policy in place.”

U.S. financial markets were little moved by the data.

Compared to the third quarter of 2019, productivity increased at a 4.0% rate instead of the 4.1% pace reported last month.

Hours worked rebounded at a 37.1% rate, rather than the 36.8% rate estimated in November. That followed a record 42.9% pace of decline in the second quarter.

Unit labor costs – the price of labor per single unit of output – plunged at a 6.6% rate instead of an 8.9% rate as previously reported. Unit labor costs rose at a 12.3% pace in the second quarter. They increased at a 4.0% rate from a year ago.

“The big swings in the unit labor costs data in recent quarters make it hard to detect an underlying trend, but overall we think that the shock to the economy coming from COVID-19 should weigh on employee compensation,” said Daniel Silver, an economist at JPMorgan in New York.

Hourly compensation fell at a 2.3% rate last quarter, instead of a 4.4% pace as previously reported. That followed a 24.3% rate of acceleration in the second quarter. Compensation increased at a 8.2% rate compared to the third quarter of 2019.

(Reporting by Lucia Mutikani; Editing by Andrew Heavens and Andrea Ricci)

U.S. CDC reports 281,253 deaths from coronavirus

(Reuters) – The U.S. Centers for Disease Control and Prevention (CDC) on Monday reported 14,636,914 cases of the new coronavirus, an increase of 174,387 from its previous count, and said that the number of deaths had risen by 1,118 to 281,253.

The CDC reported its tally of cases of the respiratory illness known as COVID-19, caused by a new coronavirus, as of 4 pm ET on Dec. 6 versus its previous report a day earlier.

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

(Reporting by Dania Nadeem in Bengaluru; Editing by Shinjini Ganguli)

U.S., EU say they do not recognize Venezuela parliamentary vote

By Vivian Sequera and Deisy Buitrago

CARACAS (Reuters) -The United States, the European Union and more than a dozen Latin American countries said on Monday they would not recognize the results of a parliamentary election in Venezuela, which saw allies of President Nicolas Maduro win a majority.

Just 31% of 20 million eligible voters participated in Sunday’s election, the electoral council said early on Monday, less than half the turnout rate in the previous congressional elections in 2015. The opposition had boycotted the vote, calling it a farce meant to consolidate a dictatorship.

The results nonetheless return the congress to Maduro’s control, despite an economy in tatters, an aggressive U.S. sanctions program, and a mass migration exodus. An alliance of parties called the Great Patriotic Pole that backs Maduro won 68.9% of the votes cast, according to figures published on Monday.

“The United States, along with numerous other democracies around the world, condemns this charade which failed to meet any minimum standard of credibility,” U.S. Secretary of State Mike Pompeo said in a statement on Monday.

The EU’s top diplomat Josep Borrell said the election “failed to comply with the minimum international standards,” while a group of Latin American countries including Brazil and Colombia issued a statement saying the vote “lacks legality and legitimacy.”

Earlier in the year, the Supreme Court had put several opposition parties in the hands of politicians expelled from those same parties for alleged links to Maduro – one of the major reasons the opposition had called the vote a sham.

The elections council was also named without the opposition’s participation, and Maduro refused to allow meaningful electoral observation. Maduro allies have said the electoral conditions were the same as a 2015 parliamentary vote the opposition won, and the government paid no heed to foreign criticism.

“Venezuela already has a new National Assembly,” Maduro said early on Monday, in televised remarks that were muted in comparison with his frequent triumphalism. “A great victory, without a doubt.”

The opposition in 2015 won control of the National Assembly in a landslide, but the pro-Maduro Supreme Court blocked even the most basic legislation. In 2017, Maduro supplanted parliament with the creation of an all-powerful parallel body known as the National Constituent Assembly.

Opposition legislators nonetheless used the platform to denounce Maduro around the world for human rights abuses, corruption, and economic mismanagement, proving a constant thorn in the side of the Socialist Party.

Opposition leader Juan Guaido last year also used his role as speaker of the National Assembly to stake a claim to be Venezuela’s legitimate president, on the basis Maduro’s 2018 re-election was rigged, earning the recognition of more than 50 countries including the United States.

Pompeo said on Monday that Washington “will continue to recognize Interim President Guaidó and the legitimate National Assembly.”

Retaking control of the congress will give Maduro few meaningful tools to restart an economy where a monthly salary or pension is often less than the cost of a kilo of meat or a carton of eggs.

It may lend his government more legitimacy to offer oil industry deals to companies willing to risk U.S. sanctions to tap the OPEC nation’s huge oil reserves.

But even traditional allies such as Russia and China, typically the most likely to challenge U.S. sanctions, have shown scant interest in an oil industry hollowed out by years of decay and the emigration of its most talented professionals.

The opposition is calling on sympathizers to participate in a Dec. 12 consultation that will ask citizens whether they reject the results and want a change of government.

(Reporting by Vivian Sequera, Deisy Buitrago, Corina Pons and Mayela Armas; Writing by Angus Berwick; Editing by Hugh Lawson, Rosalba O’Brien and Chris Reese)

Pandemic’s uneven march across U.S. paved way for wider outbreak

By Howard Schneider

WASHINGTON (Reuters) – Nine months after the U.S. government declared a state of emergency to fight the coronavirus pandemic, daily deaths and new infections are breaking records, hospital capacity is more stretched than ever, and debate over the economic response has devolved into a battle over who deserves help and who doesn’t.

How did it get to this point? Once-in-a-century public crises might seem a natural rallying point for a nation, but the current pandemic hit a trifecta: a politically polarized society, the uneven spread of the virus, and an economic impact that was disparately felt and quick to fade in some parts of the country even as it kept others fast in its grip.

Today’s rampant spread of the virus is bound with those facts: Local and state decisions to let the economy reopen as much as it did, as soon as it did, with public health rules spotty and unevenly enforced, set the stage for it to rotate through the country and eventually to spread unchecked.

While that spurred more job creation early on, the country is now facing the worst of both worlds.

New COVID-19 cases are mounting at a rate of a million a week, and deaths have reached new peaks approaching 3,000 daily. Meanwhile, the economic recovery seems to be hitting stall speed. U.S. payrolls grew by only 245,000 jobs in November, scant progress given that net job losses since February still total around 10 million.

New data released in early December on state and metro level employment and wages by industry show just how unevenly the economic pain of those first months was spread.

Indeed, while workers in New York City, one of the early epicenters of the U.S. outbreak, struggled with economic conditions reminiscent of the Great Depression last spring, workers in Montana, on the whole, earned about as much in the three months from April to June as they did in the prior three months.

For workers in six western states, in fact, the second quarter of 2020 looked about the same as the second quarter of 2019 in terms of total wages collected, while in Nevada, Hawaii and Michigan wages were down more than 10% from a year earlier.

The jobs crash was painful everywhere, particularly in the industries where people would be most vulnerable to a communicable disease – the close-contact services like restaurants, grooming parlors and gyms.

Even in places where the initial crash was less intense, more than 8% of jobs were lost from February to April. At its worst, in the U.S. Northeast and Hawaii, more than 20% of jobs disappeared.

But the places that suffered the lightest initial blow also more quickly regained lost employment, and in some instances by June had nearly regained all the lost jobs in April’s wave of layoffs and closing. At that point the spread of the pandemic was also mild in those states, perhaps providing a reason to maintain a business-as-usual approach.

In urban areas the difference in outcomes was even more pronounced. Seasonal factors influence the numbers of jobs in some cities more than others. Beach towns and summer resorts see a bump when the weather warms. But comparing the number of jobs this June to a year ago shows how some fared better – or worse.

Atlantic City, New Jersey, an oceanside resort and casino hub, had only 66% of the jobs this past June that it did the year before. Cleveland, Tennessee, part of the U.S. South’s emerging auto industry, by contrast, had more jobs in June than it did a year before.

Industries also felt those first months of the pandemic very differently. At first blush, hiring in some seasonal industries proceeded apace, with drive-in theaters, for example, staffing up for the summer: Employment there more than doubled from February to June, possibly a sign of entertainment migrating outdoors. Still, even such an industry well-suited to the moment saw its employment drop compared with a year earlier.

By contrast, nursery and garden center employment rocketed nearly 30% from February to June – a typical summertime jump. Nonetheless, it was also 1.7% above the level from June 2019.

At the other end of the scale, industries in the food and entertainment sectors saw job losses that may amount to a permanent shift in the economy and where people work.

(Reporting by Howard Schneider; Editing by Dan Burns and Paul Simao)

Firefighters move in on Southern California canyon blaze despite high winds

By Dan Whitcomb and Gabriella Borter

LOS ANGELES (Reuters) – Firefighters battling a blaze in a Southern California canyon made some progress toward containment but were up against more high winds and low humidity on Friday, which threatened to stoke the flames as they tore through wooded hillsides.

The Bond Fire, which had forced some 25,000 people in Orange County to evacuate, broke out around 10 p.m. on Wednesday night on the street for which it is named and quickly engulfed Silverado Canyon, egged on by strong Santa Ana winds.

“Firefighters worked through the night extinguishing hot spots, mopping up around structures and stopping the forward spread of this fire,” Captain Paul Holaday of Orange County Fire Authority said in a video posted to Twitter on Friday.

Air and ground units were focused on protecting the canyon communities of Silverado, Santiago, Williams and Modjesca on Friday, Holaday said.

In a Friday morning bulletin, the National Weather Service said a red flag warning for high gusty winds was in effect until 10 p.m. Saturday for the inland portion of Orange County, where officials said the Bond Fire still held claim to some 6,400 acres. The strongest winds were expected Friday morning.

Two firefighters involved in the effort were injured and transported to a local hospital for further treatment, the Orange County Fire Authority said on Twitter on Thursday.

The blaze was 10% contained as of Friday morning.

Woodsy Silverado Canyon, miles from Southern California’s suburban sprawl up a single winding road, is home to an eclectic mix of residents including artists, horse owners and ranchers.

Fire officials have not yet said what they believe to be the cause of the fire, although Silverado Canyon and Bond Road resident Giovanna Gibson, 60, told Reuters that neighbors believed the blaze ignited when the owners of a home without power tried to start their generator and it exploded.

Since the start of the year, wildfires have scorched more than 6,500 square miles (17,000 square km) of California land, according to the California Department of Forestry and Fire Protection.

The yearly land area burned in the western United States has grown eight times larger in less than four decades, the U.S. Forest Service Rocky Mountain Research Station said in research published last month.

(Reporting by Dan Whitcomb in Los Angeles and Gabriella Borter in New York; Editing by Bill Berkrot and Diane Craft)

U.S. job growth slows sharply; long-term unemployment rises

By Lucia Mutikani

WASHINGTON (Reuters) – The U.S. economy added the fewest workers in six months in November, hindered by a resurgence in new COVID-19 cases that, together with a lack of more government relief money, threatens to reverse the recovery from the pandemic recession.

The closely watched employment report also showed a surge in people experiencing long periods of joblessness, putting pressure on Congress to come up with another rescue package.

The report only covered the first two weeks of November, when the current wave of coronavirus infections started. Infections, hospitalizations and death rates have sky-rocketed, leading some economists to anticipate a drop in employment in December or January as more jurisdictions impose restrictions on businesses and consumers shun crowded places like restaurants.

“This is a disappointing report, and one that shows the third wave of the pandemic is having a bigger effect on hiring than had been thought,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. “Prospects for a continued strong recovery in consumer spending may be at risk. This is a wake-up call for the Congress and should support more Federal stimulus.”

Nonfarm payrolls increased by 245,000 jobs last month after rising by 610,000 in October, the Labor Department said on Friday. That was the smallest gain since the jobs recovery started in May. The fifth straight monthly slowdown in job gains left employment 9.8 million below its February peak.

Job growth last month was held back by further departures of temporary workers hired for the 2020 Census. States and local governments are also expected to have shed more workers, leaving overall government payrolls to drop by 99,000 jobs, the second straight monthly decline. The private sector added 344,000 jobs.

Economists polled by Reuters had forecast payrolls would increase by 469,000 jobs in November. Hiring peaked at 4.781 million jobs in June. Reports on consumer spending, manufacturing and services industries have suggested a slowdown in the recovery from the worst recession since the Great Depression.

The United States is in the midst of a fresh wave of COVID-19 infections. Nearly 200,000 new cases were reported on Wednesday and hospitalizations approached a record 100,000 patients, according to a Reuters tally of official data.

A bipartisan, $908 billion coronavirus aid plan gained momentum in Congress on Thursday as conservative lawmakers expressed their support and leaders in the U.S. Senate and House of Representatives huddled together.

More than $3 trillion in government COVID-19 relief helped millions of unemployed Americans cover daily expenses and companies keep workers on payrolls, leading to record economic growth in the third quarter. The uncontrolled pandemic and lack of additional fiscal stimulus could result in the economy contracting in the first quarter of 2021.

U.S. stock index futures sharply pared gains on the jobs report. The dollar was trading lower against a basket of currencies. U.S. Treasury prices were lower.

LONG-TERM UNEMPLOYED

The unemployment rate fell to 6.7% from 6.9% in October. It, however, has been biased down by people misclassifying themselves as being “employed but absent from work.” Without this error, the government estimated the jobless rate would have been about 7.1% in November.

The number of people unemployed for 27 weeks or more jumped 385,000 in November to 3.9 million. These long-term unemployed accounted for 36.9% of the 10.7 million unemployed last month. The number of people working part-time for economic reasons was steady at 6.7 million.

Despite the ample slack in the labor market, average hourly earnings rose 0.3% after nudging up 0.1% in October. That left the year-on-year increase in wages at 4.4%. The average workweek was steady at 34.8 hours.

(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Paul Simao)

Coronavirus claims 1.5 million lives globally with 10,000 dying each day

By Shaina Ahluwalia and Sangameswaran S

(Reuters) – Over 1.5 million people have lost their lives due to COVID-19 with one death reported every nine seconds on a weekly average, as vaccinations are set to begin in December in a handful of developed nations.

Half a million deaths occurred in just the last two months, indicating that the severity of the pandemic is far from over. Nearly 65 million people globally have been infected by the disease and the worst affected country, United States, is currently battling a third wave of coronavirus infections.

In the last week alone, more than 10,000 people in the world died on average every single day, which has been steadily rising each passing week. Many countries across the world are now fighting second and third waves even greater than the first, forcing new restrictions on everyday life.

The novel coronavirus caused more deaths in the past year than tuberculosis in 2019 and nearly four times the number of deaths due to malaria, according to the World Health Organization.

Robert Redfield, the head of the U.S. Centers for Disease Control and Prevention, warned on Wednesday that the pandemic will pose the country’s grimmest health crisis yet over the next few months, before vaccines become widely available.

“I actually believe they’re going to be the most difficult time in the public health history of this nation,” Redfield told a livestream presentation hosted by the U.S. Chamber of Commerce Foundation.

The United States continues to lead in terms of fatalities, with over 273,000 deaths alone. North America and Latin American regions combined have more than 50% of all coronavirus deaths that have been reported.

The Latin American region, the worst-affected globally in terms of fatalities, recently surpassed over 450,000 deaths.

VACCINE HOPES

On Wednesday, Britain became the first country to approve the vaccine candidate developed by Germany’s BioNTech and Pfizer Inc, jumping ahead of the rest of the world in the race to begin a crucial mass inoculation program.

However, supplies are expected to be very limited in the early stages which means that every country beginning the drive will have to prioritize based on risk factors.

U.S. health regulators are expected to approve distribution and administration of the vaccine in mid-December.

Africa aims to have 60% of its population vaccinated against COVID-19 within the next two to three years, the African Union’s disease control group said on Thursday. The continent of 1.3 billion people has recorded more than 2.2 million confirmed coronavirus infections, according to a Reuters tally.

(Reporting by Shaina Ahluwalia and Sangameswaran S in Bengaluru; Editing by Lisa Shumaker)