Shadow bank weaknesses forced Fed's market rescue, Quarles says - A top Federal Reserve official is issuing a warning about fast-growing and largely unregulated shadow lenders: They were a big factor in why central banks had to save markets earlier this year, and much more needs to be done to assess the risks posed by the sector. The coronavirus crisis has exposed potential weaknesses tied to nonbank financial firms, including excessive leverage, interconnectedness and instances of assets freezing up that investors assumed were akin to cash, according to Federal Reserve Vice Chairman Randal Quarles. Such factors left central banks with no option other than intervening, he said, speaking in his capacity as chairman of the global Financial Stability Board. "While extraordinary central bank interventions calmed capital markets, which remained open and enabled firms to raise new and longer-term financing, such measures should not be required," Quarles wrote in letter dated Tuesday to his counterparts at other central banks. It's "more important than ever" to understand the possible threats of nonbanks, he added. In mid-March the Fed started rolling out emergency lending facilities focused on ultra-short-term credit markets that dried up as companies, banks and investors began hoarding cash. One of the quickest programs established was the Money Market Fund Liquidity Facility. It was crucial to restoring order because institutional investors began withdrawing rapidly from so-called prime money market funds, vehicles that invest partly in short-term company IOUs. Since the disruption, at least one big provider of institutional prime money funds, Fidelity Investments, announced it would shut down those funds and steer customers mainly into funds that invest exclusively in government-backed securities. Boston Fed President Eric Rosengren reacted by saying he hoped other fund providers would follow suit. In his letter, Quarles also warned of the risk of renewed turmoil to financial markets, notwithstanding the unprecedented support already provided by policy makers. "We may be seeing significant pricing disconnects between the market and economic fundamentals, which could result in sudden and sharp repricing," Quarles wrote. "The impacts of these economic strains may be amplified in emerging markets, given the risks to their currency and debt markets from capital outflows." After plummeting in March with the onset of the pandemic, the S&P 500 has rebounded sharply and is closing in on levels that prevailed at the start of this year. U.S. unemployment, in contrast, is more than three times higher than it was before the Covid-19 outbreak, and now stands at 11.1% Following the 2008 financial crisis, regulators and lawmakers imposed aggressive new limits on banks. But reforms such as the Dodd-Frank Act did little to boost oversight of nonbank firms that contributed to the meltdown. Agencies still have limited authority over investment funds, mortgage firms and insurers — even as such firms have stepped up their activity in financial markets. The FSB expects to conclude a review of the March turbulence by November, Quarles said. As international regulators get a better sense of the vulnerabilities, it'll help them decide "where policy responses may be needed," he said.
Fed, Treasury Disagreements Slowed Start of Main Street Lending Program – WSJ - Disagreements between leaders at the Federal Reserve and Treasury Department in recent months slowed the start of their flagship lending initiative for small and midsize businesses, according to current and former government officials. The differences centered on how to craft the loan terms of their $600 billion Main Street Lending Program to help support businesses through the early stages of the coronavirus pandemic. Fed officials generally favored easier terms that would increase the risk of the government losing money, while Treasury officials preferred a more conservative approach, people familiar with the process said. Treasury, which has put up $75 billion to cover losses, resisted recent changes to relax loan terms. The disagreements over relatively narrow design issues reflect broader philosophical differences over what the program is trying to accomplish and how much risk the government should take as a result. The upshot is that the program, announced in March, went through multiple revisions and opened for business this past week. As of Wednesday, it hadn’t purchased any loans. Some Fed officials privately have voiced frustration that painstaking negotiations wasted precious weeks in launching the program, according to people familiar with the matter. One of three loan products under the program almost didn’t materialize due to Treasury reservations. The nature of the compromises between the Fed and Treasury have only recently come into focus, pulling back the curtain on one of the most important partnerships in global economic policy-making. The terms of the program were first announced on April 9 and have been relaxed twice to include more potential borrowers and flexible repayments. The program began operating this month through the Federal Reserve Bank of Boston. “Would the program be exactly the way I would have designed it, or exactly the way someone else would have designed it? No, but we all need to work together, and we have worked together quite effectively,” said Boston Fed President Eric Rosengren in an interview. “Anytime you have a negotiation, there are going to be compromises that are made,” he said. “I expect that we’ll continue to have to make compromises.”
Fed opens Main Street Lending Program to nonprofits — The Federal Reserve has opened its Main Street Lending Program to nonprofit organizations, expanding the existing program intended to help businesses weather the coronavirus pandemic. The addition of two new credit facilities to the program will facilitate loans to organizations like educational institutions, hospitals and social service groups with at least 10 employees, the central bank said Friday. Nonprofit organizations will be able to obtain loans of at least $250,000 and up to $300 million. “Nonprofits provide vital services across the country and employ millions of Americans,” Federal Reserve Chair Jerome Powell said in a press release. “We have listened carefully and adapted our approach so that we can best support them in carrying out their vital mission during this extraordinary time.” When the Fed originally proposed opening up the $600 billion program to nonprofits on June 15, it only proposed offering loans to nonprofit organizations with at least 50 employees, but adjusted that threshold after receiving feedback. The Fed also relaxed some of the original eligibility criteria it had proposed for nonprofits, lowering the total amount of non-donation revenue a borrower had to have from 2017 to 2019 from 70% to 60% and cutting the required 2019 operating margin from 5% to 2%. To qualify for a loan through the program, nonprofit borrowers must have been in operation at least five years and have less than $3 billion in endowment. The other loan terms for nonprofit borrowers are the same as for the borrowers in the program’s other facilities. Like the other facilities in the Main Street program, the Nonprofit New Loan Facility and the Nonprofit Expanded Loan Facility will make loans available to eligible borrowers through third-party banks. The Fed, through the Main Street program, will then purchase a 95% stake in the loans.
Fed's support for corporate debt has been a Wall Street bonanza - The Federal Reserve's extraordinary effort to keep credit flowing to companies during the COVID-19 pandemic is also shunting money to banks' bottom lines. Fees for underwriting blue-chip U.S. company bonds in the first half of the year essentially doubled to more than $7 billion, according to data compiled by Bloomberg, after the Fed set up an unprecedented series of programs to support corporate debt markets and slashed interest rates. U.S. companies have rushed to borrow, selling more than $1 trillion of high-grade notes in just a few months, and some of the proceeds have trickled down to banks. That boon underscores how the biggest banks' roles as financial intermediaries can translate to billions of dollars of profits after borrowing floodgates open. When the firms start releasing their second quarter earnings on Tuesday, they're broadly expected to post their worst results since the financial crisis as they set aside more money for bad loans. Gains from bond underwriting — and the resulting debt trading — are one of the few bright spots. That fee income might be enough to turn quarterly net losses into profit for some banks, said Gerard Cassidy, an equity research analyst at RBC Capital Markets. "The Fed's unprecedented actions in monetary policy since the start of Covid-19 have benefited banks very well," Cassidy said. The central bank's efforts have helped banks in myriad ways. The Fed is buying bonds in the open market and if necessary directly from companies, which has helped slash yields on investment-grade corporate bonds to the lowest level on record. That's spurring companies to borrow, which is lifting underwriting fees for both investment-grade and high-yield debt. When companies sell bonds, investors often sell older securities from the corporation and buy newer ones, so trading revenue rises too. On top of that, the Federal Reserve offered financing to banks that make loans under the Small Business Administration's Paycheck Protection Program, making it easier for banks to earn fees from that program. Many didn't even tap the Fed's facility, because they've been flooded with customer deposits. Loans under that program are U.S. guaranteed, meaning the banks don't have any risk of borrowers defaulting. "The PPP program has been a windfall for the banks at taxpayers' expense, even if some are donating the fees to worthy causes," The Fed is also taking steps including buying short-term corporate bonds known as commercial paper directly from companies. And as of last week, its Main Street Lending Program, aimed at small and midsized businesses, was fully up and running. The Fed will buy 95% of each loan made under the up-to-$600 billion program, which could generate around $5.5 billion of fees for banks if there's full uptake, according to a Bloomberg analysis.
The case against Judy Shelton for Federal Reserve Board - On July 21 the Senate Banking Committee will vote on whether to advance the nomination of Judy Shelton to the floor of the full Senate for final approval to the Federal Reserve Board. Over the years – and as recently as last year – Shelton has been a vocal advocate of returning the U.S. and global economies to a gold standard. In 2009, at the darkest moment of the global financial crisis, she opened an op-ed piece in the Wall Street Journal with these words: “Let's go back to the gold standard.” If the United States had been on the gold standard at the beginning of this year, the U.S. and global economies might well have driven over a cliff. Shelton’s support for the gold standard is not the only reason why she should not be confirmed by the Senate, but it is high on the list. Unlike many ideas in economics, a gold standard is not very complicated: Each country determines the price of gold in terms of its own currency. Once set, the price of gold in the local currency is fixed — in principle for all time, come hell or high water. For example, for a long time in the United States, the price of gold was $20.67. The appeal of the gold standard (at least to those who find it appealing) lies in its utter simplicity. Exchange rates among currencies around the globe are fixed. No need to think about whether the dollar is strong today or the pound is weak, or what the situation will be a year from now: Whatever the dollar/pound exchange rate is today, that’s what it will be a year from now. As well, there is no need for central bankers to think about how to set short-term interest rates. Their actions are governed by only one consideration: If gold reserves are flowing out of the country, they must raise the country’s short-term interest rate to stem the outflow. This is a much simpler approach to conducting monetary policy than what the Fed does today. No messy forecasting; no trying to promote full employment and 2 percent inflation. Just stop the gold from flowing out. But the very aspects that make the gold standard appealing to its advocates are what make it so appalling to mainstream experts. As a direct result of its simplicity, the gold standard disables two key shock absorbers that, in a normal economic system, help to stabilize economies in the face of unexpected turbulence. First, the fact that exchange rates are fixed under a gold standard means that there is no latitude for a country to “put itself on sale” if it hits a rough patch. In a normal economic system, if the workforce is not fully employed, the local currency tends to depreciate. Locally produced goods and services instantly become cheaper to foreign buyers, helping to put the country back on the road to full employment. Second, the fact that short-term interest rates serve only to stabilize gold reserves means that they cannot be used to promote full employment and low, stable inflation. In a normal economic system, if domestic demand is too weak, the central bank cuts its interest rate to make borrowing cheaper, providing additional support for getting the country back on the road to full employment.
Beige Book: "Economic activity increased in almost all Districts, but remained well below where it was prior to the COVID-19 pandemic." - Fed's Beige Book "This report was prepared at the Federal Reserve Bank of Chicago based on information collected on or before July 6, 2020. " Economic activity increased in almost all Districts, but remained well below where it was prior to the COVID-19 pandemic. Consumer spending picked up as many nonessential businesses were allowed to reopen. Retail sales rose in all Districts, led by a rebound in vehicle sales and sustained growth in the food and beverage and home improvement sectors. Leisure and hospitality spending improved, but was far below year-ago levels. Most Districts reported that manufacturing activity moved up, but from a very low level. Demand for professional and business services increased in most Districts, but was still weak. Transportation activity rose overall on higher truck and air cargo volumes. Construction remained subdued, but picked up in some Districts. Home sales increased moderately, but commercial real estate activity stayed at a low level. Financial conditions in the agriculture sector continued to be poor, while energy sector activity fell further because of limited demand and oversupply. Loan demand was flat outside of some Paycheck Protection Program (PPP) activity and increased residential mortgages. The PPP and loan deferrals by private lenders reportedly provided many firms with sufficient liquidity for the near term. Outlooks remained highly uncertain, as contacts grappled with how long the COVID-19 pandemic would continue and the magnitude of its economic implications. ...Employment increased on net in almost all Districts as many businesses reopened or ramped up activity. Districts highlighted gains in the retail and leisure and hospitality sectors. However, payrolls in all Districts were well below pre-pandemic levels. Job turnover rates remained high, with contacts across Districts reporting new layoffs. Contacts in nearly every District noted difficulty in bringing back workers because of health and safety concerns, childcare needs, and generous unemployment insurance benefits. Many contacts who have been retaining workers with help from the PPP said that going forward, the strength of demand would determine whether they can avoid layoffs. CR Note: This information was on or before July 6th, and it appears activity has slowed recently.
An Improved GDP Outlook from Wall Street - The Wall Street Journal’s July survey results are out. The forecasted level of GDP is higher despite the deteriorating Covid-19 infection and fatality number. Figure 1: GDP, bn. Ch.2012$ SAAR (black), mean, from WSJ April survey (tan), May (green), June (red), and July survey (blue), all on log scale. Source: BEA, WSJ, various vintages, and author’s calculations.It’s still the case that recovery to 2019Q4 levels – the prior peak — is not attained by 2022Q1 according to the mean response. This prediction is broadly consistent with the IGM/538 survey, which has a modal response for catchup taking place in 2021H2 (see here.)Despite the worsening outlook, there are few seeing a “W” in output; and the optimistic are pretty optimistic. Figure 2: GDP in billions of Ch.2012$, SAAR, reported (black bold), WSJ July survey mean (blue), most “W” from Daniel Bachman at Deloitte (green), and one year most optimistic from Sean Snaith at University of Central Florida (red). Source: WSJ July survey, BEA, and author’s calculations.Daniel Bachmann is also the most pessimistic for the outlook over the next year (through 2022Q1).Here is a graph of fatalities through July 10, for the US as compared to other major economies.Source: FT, accessed 7/12/2020. Addendum: Note that contra Kudlow, most economists are not anticipating a “V” recovery…
Warnings Grow: “We Are in a Massive Economic Downturn” - Pam Marten - Yesterday, Federal Reserve Governor Lael Brainard gave a speech via webcast to the National Association for Business Economics. She warned, effectively, that the rosy spin coming out of the Trump administration needed to be weighed against the reality on the ground. Brainard raised the caution that credit downgrades on bonds and corporate defaults are occurring at “a faster pace than in the initial months of the Global Financial Crisis.” Brainard explained as follows: “In downside scenarios, there could be some persistent damage to the productive capacity of the economy from the loss of valuable employment relationships, depressed investment, and the destruction of intangible business capital. A wave of insolvencies is possible. As the Federal Reserve Board’s May Financial Stability Report highlighted, the nonfinancial business sector started the year with historically elevated levels of debt. Already this year, we have seen about $800 billion in downgrades of investment-grade debt and $55 billion in corporate defaults—a faster pace than in the initial months of the Global Financial Crisis. Several measures of default probabilities are somewhat elevated. It remains vitally important to make our emergency credit facilities as broadly accessible as we can in order to avoid the costly insolvencies of otherwise viable employers and the associated hardship from permanent layoffs.”The warnings coming out of yesterday’s House hearing on “Promoting Economic Recovery: Examining Capital Markets and Worker Protections in the COVID-19 Era,” raised similar concerns.Congressman Sean Casten of Illinois warned that “we are in a massive economic downturn,” adding this: “Every single entity in our society is getting their cash constrained. Individuals who are losing their jobs are having to dip into savings or their retirement account; small businesses are having to chew through all their working capital; states and municipalities are having to spend through all their rainy-day funds. And those of us who have the ability to deficit spend are doing so on a fairly significant basis right now. To put it mildly.“I mention that, because when this is all done, there’s gonna be a reckoning. Folks are gonna look out and say, in this moment, who stepped up and acted with ethics, to act with charity, and look out for those who were needy, and who decided to hoard their reserves. That is an ethical problem, it’s not a political problem. But as we saw after 2008, as we saw after the Great Depression, those ethical problems quickly become political problems. And we have to all think about that. We all have to be thinking about what we are doing in this moment to help those in need.”
Q2 GDP Forecasts: Probably Around 35% Annual Rate Decline --Important: GDP is reported at a seasonally adjusted annual rate (SAAR). So a 35% Q2 decline is around 10% decline from Q1 (SA). I'm just trying to make it clear the economy didn't decline by one-third in Q2. Previously I just divided by 4 (an approximation) to show the quarter to quarter decline. The actually formula is (1-.35) ^ .25 - 1 = -0.102 (a 10.2% decline from Q1) From Merrill Lynch:2Q GDP tracking was unchanged at -36% qoq saar as the June surprise in retail sales was offset by negative May revisions. [July 17 estimate] From Goldman Sachs: Our Q2 GDP tracking estimate remained unchanged at -33% (qoq ar). We expect -29% in the initial vintage of the report, reflecting incomplete source data and non-response bias [July 16 estimate]From the NY Fed Nowcasting Report: The New York Fed Staff Nowcast stands at -14.3% for 2020:Q2 and 13.2% for 2020:Q3. [July 17 estimate]And from the Altanta Fed: GDPNow: The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the second quarter of 2020 is -34.7 percent on July 17, down from -34.5 percent on July 16. [July 17 estimate]
Foreigners Bought A Record Amount Of US Stocks In May, Sold Treasuries - The US Treasury's report on International capital flows shows that, May saw record buying in US Stocks by foreigners... And sold Treasuries...
- Foreign net selling of Treasuries at $27.7b
- Foreign net buying of equities at $79.7b
- Foreign net buying of corporate debt at $13.6b
- Foreign net buying of agency debt at $2.4b
As an aside, it was central banks that were buying US Treasuries (+10) as private foreigners sold (-$37bn) as The Fed’s foreign-exchange swap lines were still in place during May, offering foreign central banks an alternative to selling Treasury holdings to meet dollar-funding needs and support their currencies.
Coronavirus Spending Pushes U.S. Budget Deficit to $3 Trillion for 12 Months Through June – WSJ —The U.S. budget deficit reached $3 trillion in the 12 months through June as stimulus spending soared and tax revenue plunged, putting the federal government on pace to register the largest annual deficit as a share of the economy since World War II. As a share of gross domestic product, the 12-month deficit came to 14% last month, compared with 10.1% in February 2010, when the U.S. was still recovering from the last recession. In June alone, the deficit widened to a monthly record of $864 billion, the Treasury Department said Monday—nearly as much as the gap for the entire previous fiscal year, which totaled $984 billion. The Congressional Budget Office has projected the annual deficit could total $3.7 trillion in the fiscal year that ends Sept. 30. But the gap could widen even further if Congress and the White House agree later this month on another round of emergency spending, which economists argue is vital to keep households and businesses afloat until the economy begins to recover. Congress has authorized $3.3 trillion in new spending since March to help combat the impact of coronavirus shutdowns, including stimulus checks to American households and emergency loans and grants to struggling businesses and state and local governments. The Trump administration has also delayed personal and corporate income-tax payments until July 15 in an effort to keep more cash in Americans’ wallets. “The good news is this means we’re getting fiscal relief out the door fast,” said Maya MacGuineas, the president of the Committee for a Responsible Federal Budget, a deficit watchdog group. “The bad news is that we’re having to borrow record amounts on top of so much unpaid-for spending and tax cuts that lawmakers approved in the past few years.” Widespread unemployment and business shutdowns have pushed down tax revenue while also boosting spending on safety net measures including unemployment insurance and nutrition assistance. A renewed surge of coronavirus cases across the South and West is forcing some states, including Texas, to reimpose social distancing measures, putting a quick economic recovery in doubt. Federal deficits typically widen in times of recession and narrow when the economy grows. This time, the deficit was already rising in the final years of the decadelong expansion that ended in February following the Trump administration’s sponsored tax cuts of 2017. Political support for taming deficits has faded in Washington in recent years, as persistent global demand for U.S. Treasury assets has kept borrowing costs near historic lows. Despite the surge in government borrowing, net interest costs fell 11% in the first nine months of the fiscal year, the Treasury said Monday. The dramatic rise in red ink has rankled some Republicans and White House officials, who have argued against another sweeping economic relief package and called instead for aid that is more narrowly targeted at the hardest hit-industries, in part due to concerns about the deficit.
China Announces Retaliatory Sanctions On Marco Rubio, Ted Cruz And Other Top US Senators - China announced sanctions against several key US politicians in retaliation for measures announced by the Trump administration last week to punish senior Chinese officials over Beijing's human rights abuses against minority Uighur Muslims, reported Reuters.Chinese Foreign Ministry spokeswoman Hua Chunying told reporters at a press conference Monday that effective immediately, Beijing will sanction four top US officials.Hua said, "corresponding sanctions" were applied to Republican Senators Marco Rubio and Ted Cruz, US Representative Chris Smith, Ambassador at Large for International Religious Freedom Sam Brownback, and the Congressional-Executive Commission on China."The US actions seriously interfere in China's internal affairs, seriously violate the basic norms of international relations and seriously damage Sino-U.S. relations," she said during the briefing adding that "China will make further responses based on how the situation develops," though limited details were given on what the sanctions would entail. The tit-for-tat diplomatic spat between the US and China comes days after Washington imposed travel bans on Chinese Communist Party (CCP) officials for their involvement in restricting foreigners' access to Tibet. Shortly after, China responded by issuing visa restrictions on Americans for the region. Last week, Chinese Foreign Ministry spokesman Zhao Lijian told reporters in Beijing: The US "should stop going further down the wrong path to avoid further harming China-U.S. relations and communication and cooperation between the two countries."
US Rejects Chinese Claim To South China Sea In Major Reversal Of Obama-Era Appeasement - The State Department has confirmed the policy change in a press release attributed to Sec Pompeo. Read the whole statement below: The United States champions a free and open Indo-Pacific. Today we are strengthening U.S. policy in a vital, contentious part of that region - the South China Sea. We are making clear: Beijing’s claims to offshore resources across most of the South China Sea are completely unlawful, as is its campaign of bullying to control them. … Beijing’s approach has been clear for years. In 2010, then-PRC Foreign Minister Yang Jiechi told his ASEAN counterparts that “China is a big country and other countries are small countries and that is just a fact.” The PRC’s predatory world view has no place in the 21st century. The PRC has no legal grounds to unilaterally impose its will on the region. Beijing has offered no coherent legal basis for its “Nine-Dashed Line” claim in the South China Sea since formally announcing it in 2009. In a unanimous decision on July 12, 2016, an Arbitral Tribunal constituted under the 1982 Law of the Sea Convention – to which the PRC is a state party – rejected the PRC’s maritime claims as having no basis in international law. The Tribunal sided squarely with the Philippines, which brought the arbitration case, on almost all claims. The PRC cannot lawfully assert a maritime claim – including any Exclusive Economic Zone (EEZ) claims derived from Scarborough Reef and the Spratly Islands – vis-a-vis the Philippines in areas that the Tribunal found to be in the Philippines’ EEZ or on its continental shelf.Beijing’s harassment of Philippine fisheries and offshore energy development within those areas is unlawful, as are any unilateral PRC actions to exploit those resources. In line with the Tribunal’s legally binding decision, the PRC has no lawful territorial or maritime claim to Mischief Reef or Second Thomas Shoal, both of which fall fully under the Philippines’ sovereign rights and jurisdiction, nor does Beijing have any territorial or maritime claims generated from these features.As Beijing has failed to put forth a lawful, coherent maritime claim in the South China Sea, the United States rejects any PRC claim to waters beyond a 12-nautical mile territorial sea derived from islands it claims in the Spratly Islands (without prejudice to other states’ sovereignty claims over such islands). As such, the United States rejects any PRC maritime claim in the waters surrounding Vanguard Bank (off Vietnam), Luconia Shoals (off Malaysia), waters in Brunei’s EEZ, and Natuna Besar (off Indonesia). Any PRC action to harass other states’ fishing or hydrocarbon development in these waters – or to carry out such activities unilaterally – is unlawful.
China: US 'inciting confrontation' with stance on South China Sea -Chinese officials slammed the U.S. on Tuesday over continued territorial disputes in the South China Sea after the U.S. issued a formal statement declaring most of China's claims in the region to be illegitimate.A statement posted on the website of China's embassy in Washington, D.C., accused the U.S. of "flexing its muscles" over a situation in which it was not directly involved.“The United States is not a country directly involved in the disputes. However, it has kept interfering in the issue,” read the statement. “Under the pretext of preserving stability, it is flexing muscles, stirring up tension and inciting confrontation in the region.”Secretary of State Mike Pompeo's Monday statement on the matter, it continued, "deliberately distorts the facts and international law including the United Nations Convention on the Law of the Sea (UNCLOS), exaggerates the situation in the region and attempts to sow discord between China and other littoral countries."The rebuke comes a day after Pompeo accused China's government of making "unlawful" maritime territory claims in the South China Sea and "bullying" nearby nations into acceding to China's demands. “Beijing’s claims to offshore resources across most of the South China Sea are completely unlawful, as is its campaign of bullying to control them,” the secretary said.China's government has laid claim to around 80 percent of a 1.4 million square mile section of the South China Sea known for international trade routes as well as untapped natural gas reserves, claims heavily disputed by nearby southeast Asian nations such as the Philippines, which called for a "crafting of a code of conduct to prevent tension in that area" in response to Pompeo's statement. The U.S. has previously insisted that maritime disputes between China and neighboring nations be settled at the United Nations.
Is America Up For A Naval War With China- Buchanan- Is the U.S., preoccupied with a pandemic and a depression that medical crisis created, prepared for a collision with China over Beijing’s claims to the rocks, reefs and resources of the South China Sea? For that is what Mike Pompeo appeared to threaten this week. “The world will not allow Beijing to treat the South China Sea as its maritime empire,” thundered the secretary of state. “America stands with our Southeast Asian allies and partners in protecting their sovereign rights to offshore resources … and (we) reject any push to impose ‘might makes right’ in the South China Sea.”Thus did Pompeo put Beijing on notice that the U.S. does not recognize its claim to 90% of the South China Sea or to any exclusive Chinese right to its fishing grounds or oil and gas resources. Rather, in a policy shift, the U.S. now recognizes the rival claims of Vietnam, Malaysia, Indonesia, Brunei and the Philippines. To signal the seriousness of Pompeo’s stand, the U.S. sent the USS Ronald Reagan and USS Nimitz carrier battle groups through the South China Sea. And, this week, the guided-missile destroyer USS Ralph Johnson sailed close by the Spratly Islands. But what do Mike Pompeo’s tough words truly mean? While we have recognized the claims of the other littoral states of the South China Sea, does Pompeo mean America will use its naval power to defend their claims should China use force against the vessels of those five nations? Does it mean that if Manila, our lone treaty ally in these disputes, uses force to reclaim what we see as its lawful rights in the South China Sea, the U.S. Navy will fight the Chinese navy to validate Manila’s claims? Has Pompeo drawn a red line, which Beijing has been told not to cross at risk of war with the United States? If so, does anyone in Washington think the Chinese are going to give up their claims to the entire South China Sea or retreat from reasserting those claims because the U.S. now rejects them? Consider what happened to the people of Hong Kong when they thought they had the world’s democracies at their back. For a year, they marched and protested for greater political freedom with some believing they might win independence. But when Beijing had had enough, it trashed the Basic Law under which Hong Kong had been ceded back to China and began a crackdown. The democracies protested and imposed economic sanctions. But the bottom line is that Hong Kong’s people not only failed to enlarge the sphere of freedom they had, but also they are losing much of what they had.
'People Are Going To Be Shocked': Bannon Claims Wuhan Lab Employees Have Defected, Are Working With FBI --One day after a report that a respected Chinese virologist fled Hong Kong to accuse Beijing of a COVID cover-up, former Trump strategist Steve Bannon told the Daily Mail that scientists from the Wuhan Institute of Virology and other labs have defected to the West and are "turning over evidence" against the Chinese Communist Party (CCP) for their role in the COVID-19 pandemic which has claimed over 560,000 lives worldwide since last December. "People are going to be shocked," Bannon told the Mail ("from a yacht off the East coast of America," the Mail would like us to know).The 66-year-old then said that defectors are cooperating with intelligence agencies in America, Europe and the UK, which have been assembling evidence to challenge the CCP claim that the pandemic originated in a wet market - not in a lab home to scientists who have come under fire for manipulating bat coronavirus to be more transmissible to humans. "I think that they [spy agencies] have electronic intelligence, and that they have done a full inventory of who has provided access to that lab. I think they have very compelling evidence. And there have also been defectors," he said. "People around these labs have been leaving China and Hong Kong since mid-February. [US intelligence] along with MI5 and MI6 are trying to build a very thorough legal case, which may take a long time. It’s not like James Bond.""The thing was built with French help, so don’t think that there aren’t some monitoring devices in there. I think what you are going to find out is that these guys were doing experiments which they weren’t fully authorized [for] or knew what they were doing and that somehow, either through an inadvertent mistake, or on a lab technician, one of these things got out," Bannon continued. "It’s not that hard for these viruses to get out. That is why these labs are so dangerous."
Attorney General Barr accuses Hollywood, Big Tech of collaborating with China - (Reuters) - U.S. Attorney General William Barr took aim at Hollywood companies, including Walt Disney Co (DIS.N) on Thursday as well as large technology firms like Apple, Alphabet’s Google and Microsoft Corp over company actions with China. “Corporations such as Google, Microsoft, Yahoo, and Apple have shown themselves all too willing to collaborate with the (Chinese Communist party),” Barr said. He added that Hollywood has routinely caved into pressure and censored their films “to appease the Chinese Communist Party.” The companies and the Chinese Embassy in Washington did not immediately comment. Apple declined comment. “I suspect Walt Disney would be disheartened to see how the company he founded deals with the foreign dictatorships of our day,” Barr said in a speech at the Gerald R. Ford Presidential Museum in Michigan. Barr chided U.S. companies for being too willing to take steps to ensure access to the large Chinese market. “The Chinese Communist Party thinks in terms of decades and centuries, while we tend to focus on the next quarterly earnings report,” Barr said. “America’s big tech companies have also allowed themselves to become pawns of Chinese influence.” Barr’s was the latest attack on China from President Donald Trump’s administration before his November re-election bid. In recent months, U.S.-China ties have dipped to their lowest ebb in decades, strained over issues ranging from the global coronavirus pandemic and China’s massive trade surpluses, to Beijing’s suppression of pro-democracy protests in Hong Kong, its military buildup in the South China Sea and treatment of minority Muslims.
The Tech Cold War Between The US And China Will Cost $3.5 Trillion In Just The Next Five Years - How much would a Tech Cold War Cost? That's the question DB's new tech strategist Apjit Walia asks in a new research report, in which he looks at the interplay between the Post Covid Tech Rally and the Tech Cold War, which have emerged as two of the most salient aspects of the current market dynamic. And with tensions between US and China continuing to rise and spread to other parts of the world, the strategist conducts a top-down analysis of the impact on the Global Information & Communications Technology sector from a full-blown cold war.The report finds that the ensuing demand disruption, supply chain upheaval a nd resultant “Tech Wall” that would delineate the world into rivaling tech standards could cost the sector more than $3.5 Trillion over the next five years.But before getting into the details, we update on the current state of the DB Tech Cold War Index. As Walia writes, a nuanced observation of the tariff and geopolitical issues between the US and China over the past few year suggest they are primarily a smaller strategy that is part of a larger Global Tech Cold War. To reduce the noise from the subjective geopolitical commentaries, DB created a systematic measure using machine learning to quantify the intensity of the cold war at any given point of time. It quantitatively analyzes and tracks the sentiment of the Tech Cold War globally. Not surprisingly, the DB Tech Cold War Index has been trending higher since 2016 with peaks coinciding with tit-for-tat measures by US and China on technology IP protection and counter measures. It made an all-time high in April 2020 with the Covid crisis fueling tensions and has spiraled higher since then. The political headlines are matching the sentiment among the populace. Recurrent surveys from April to June show that post Covid tempers remain at elevated levels with 41%+ of Americans and 35%+ of Chinese stating they will not buy each other’s products. An election year in the US further complicates this geopolitical dynamic.
PPP data errors raise questions about effectiveness of stimulus- Herb Miller was baffled when he learned that the Trump administration reported that his one-man business in Hixson, Tenn., was approved for a coronavirus relief loan of as much as $5 million. The amount was $3,700, he said. "Something is screwed up there," said Miller, who has been an accountant for almost five decades. A Bloomberg News analysis shows that the data for Paycheck Protection Program loans totaling more than $521 billion released on July 6 are riddled with anomalies. Although the maximum PPP loan for a one-person enterprise is $20,833, more than 75,000 loans listing one job retained have higher amounts — including 154 showing $1 million or more. The PPP was designed to keep employees of small businesses on payroll during the pandemic. Out of almost 4.9 million loans, the number of "jobs retained" is zero for 554,146 and blank for 324,122. Seven loans list negative job numbers. Conversely, almost a thousand entries show 500 jobs for loans under $150,000, which is mathematically doubtful given that the aid is based on 2.5 times a firm's average monthly payroll. In 209 of those cases, it implies an average monthly salary of $4 or less per employee. Taken together, those figures call into question the job numbers in one out of every five PPP loans. The anomalies cast doubts about the accuracy of the data for the centerpiece of the $2.2 trillion relief package enacted in March, including whether it supported the 51.1 million jobs that the administration has touted. The PPP is already facing backlash for doling out millions of dollars to big-name law firms, Wall Street managers and companies with ties to President Trump and other politicians. Now critics say the data issues make it difficult to evaluate how well the program worked, especially because the names of borrowers were redacted for smaller loans that account for about 87% of the number of loans. "We are spending, as American taxpayers, upwards of half a trillion dollars to purportedly help small businesses stay afloat," said Kyle Herrig, president of Accountable.US, a government-watchdog group that often criticizes the Trump administration. "We should know where the money went, how many jobs were saved, and right now with the data, we don't have that ability to say with any certainty." The reported number of jobs is based on information provided by applicants, according to a spokesperson for the Treasury Department, which runs the PPP with the Small Business Administration. While some borrowers may have erroneously omitted the jobs number, the total value of loans approved is consistent with supporting about 51 million jobs based on average small-business employee compensation, the spokesperson said. Under the program, borrowers file their applications through an approved lender. After the SBA issues a loan-guarantee number for banks to disburse funds, the lender and borrower can agree to a lower the amount, the spokesperson said. The SBA and Treasury didn't explain how some million-dollar loans in the data are much higher than some borrowers said they applied for and received. Banks said the problem with the jobs data is that neither the PPP application nor the SBA's electronic system that lenders use to submit applications required an input for "jobs retained." The application had a box for "number of employees," and some lenders said they submitted that number while others said they left it blank. Getting the jobs number right will matter even more when borrowers apply for loan forgiveness: The business owners will have to prove they maintained headcount and salaries to get their aid turned into a grant. If the SBA determines that a borrower is ineligible, the agency will direct the lender to deny loan forgiveness, the Treasury spokesperson said.
Mnuchin says U.S. should weigh forgiving all ‘small’ PPP loans - The federal government should weigh forgiving all “small” loans provided under the Paycheck Protection Program during the coronavirus pandemic, U.S. Treasury Secretary Steven Mnuchin said. “We should consider forgiving all small loans, but would need fraud protection,” Mnuchin told the House Small Business Subcommittee on Friday. “We should consider forgiving all small loans, but would need fraud protection,” Treasury Secretary Steven Mnuchin told the House Small Business Subcommittee on Friday.Bloomberg The government has approved more than 4.9 million PPP loans totaling $518.1 billion, as of Thursday night. Mnuchin didn’t specify what he considers a “small” loan that could be forgiven. A coalition of almost 150 groups sent a letter July 9 to legislative leaders calling for all PPP loans of less than $150,000 to automatically become grants, instead of requiring those owners to complete the complicated loan-forgiveness process, saying it will save more than $7 billion and hours of paperwork. The PPP allows loans of as much as $10 million that can become grants if borrowers spend most of the proceeds on payroll costs. Recipients apply to have loans forgiven, and must show they maintained headcount and salaries, or the amount forgiven is reduced. Small-business advocates have complained that the application is too long and the process too complicated, especially for the smallest businesses.
US Catholic Church received at least $1.4 billion through “small business” loan program - An Associated Press (AP) analysis of the federal loan data grudginglyreleased by Treasury Secretary Steven Mnuchin last Monday revealed that one of largest recipients of government funds funneled through the fraudulent Paycheck Protection Program (PPP) is the US Roman Catholic Church, which received at least $1.4 billion.This staggering amount is a drastic undercount due to the fact that the US Small Business Administration declined to release information on loans approved for under $150,000.In addition to the Catholic Church, other religious organizations including Protestant churches, Muslim mosques and Jewish synagogues also helped themselves to government funds, violating the First Amendment’s establishment of the separation of church and state. This includes churches connected to President Donald Trump such as the City of Destiny in Florida and its pastor Paula White-Cain, which received a loan worth between $150,000 and $350,000 through the PPP. White-Cain serves as Trump’s personal pastor and as “White House faith adviser.”While the AP notes that Catholic dioceses, parishes, schools and other ministries received approval for at least 3,500 forgivable loans, the Diocesan Fiscal Management Conference, an organization of Catholic financial officers, surveyed their membership and found that roughly 9,000 Catholic entities received loans, nearly three times what the AP was able to uncover.Coupled with the variance in reporting limits, the AP speculated it is possible that the Church as whole may have received as much, or more, than $3.5 billion in loans, which can be converted into grants if a majority of the funds are shown to have been used to cover wages, rent and utilities. Prior to the passage of the CARES Act and with it the PPP, religious and faith-based organizations were not eligible to receive funding through the US Small Business Administration (SBA). However, after successful lobbying by groups connected to the Church spent at least $50,000, Congress helpfully slipped in a provision within the CARES Act which allowed religious organizations and other “nonprofits” the ability to siphon funds from the program.
DoJ Busts Texas Man Using Million Dollar PPP Loan To Trade Crypto - The Government Accountability Office (GAO) warned in June there was a "significant risk" of fraud for Paycheck Protection Program loans. GAO said, which oversees spending for the CARES Act, "a number of loans approved, the speed with which they were processed, and the limited safeguards, there is a significant risk that some fraudulent or inflated applications were approved." The GAO said the Small Business Administration (SBA) had safeguards to deter fraudulent loans, but as we find out in mid-July, they weren't good enough. Fortune reports a Texas man received almost $1 million in PPP loans to support 51 employees at his "Texas Barbecue" company to payout salaries during months of lockdowns. The only problem, Joshua Argires, who received $956,250, never had a BBQ company nor any employees, but received the money and deposited in Coinbase to trade cryptocurrency. On Tuesday, Argires was charged with wire fraud, bank fraud, and engaging in the unlawful monetary transactions by the Department of Justice (DoJ). The DoJ didn't specify how they detected the fraud but suggest something was a miss when Argires noted on PPP forms he would pay 51 of his fictitious employees $90,000 per month. "Such a high average salary for a barbecue operation raises further suspicion," the DoJ's complaint said. Argires was involved in another PPP scam, that was with a fictitious business called Houston Landscaping. The DoJ said he was paid out $160,657 in PPP funds. There was no mention of what cryptocurrencies the Texas man bought or how frequently he was trading.
Pelosi says House won't cave to Senate on worker COVID-19 protections - Speaker Nancy Pelosi (D-Calif.) on Thursday rejected the notion that Democrats would cave to Republican demands to scale back legal protections for workers who face the threat of COVID-19 on the job site. As Congress is eyeing a fifth round of coronavirus relief before the end of July, GOP leaders have pressed for a speedy reopening of the economy while insisting that businesses be protected from lawsuits by workers who get sick on the job. Pelosi suggested Thursday that that's a non-starter. "Don't say, 'You all have to go back to work, even if it isn't safe. And by the way, we're removing all responsibility from the employer,'" Pelosi said during a press briefing in the Capitol. "I mean that's — no." In May, House Democrats passed a massive $3 trillion coronavirus relief package that included an expansion of worker protections under the Occupational Safety and Health Administration. Senate Republicans, who had rejected similar language in earlier rounds of pandemic aid, are pressing instead for liability protections for businesses reopening amid the surge in COVID-19 cases. Senate Majority Leader Mitch McConnell (R-Ky.) has deemed that provision a "red line" to bring Republicans on board the next package. Yet the environment has deteriorated rapidly since the last round of coronavirus relief was adopted in April, as dozens of states have experienced a spike in cases in recent weeks, leading hospitals to become overwhelmed and governors to close some of the same businesses they'd only recently reopened. Given the changing dynamics, Pelosi said Republicans will be forced to accept an emergency aid package much larger than the $1 trillion figure GOP leaders had floated just a few weeks ago. "Every day you see them opening up more," Pelosi said. "We get overtures about, 'Can this be in the bill? Can that be in the bill?' — because they know there has to be a bill."
Next Showdown in Congress: Protecting Workers vs. Protecting Employers in the Pandemic - - Jerri-Lynn Scofield Congressional leaders are squaring off over the next pandemic relief bill in a debate over whom Congress should step up to protect: front-line workers seeking more safeguards from the ravages of COVID-19 or beleaguered employers seeking relief from lawsuits. Democrats want to enact an emergency standard meant to bolster access to protective gear for health care and other workers and to bar employers from retaliating against them for airing safety concerns. Republicans seek immunity for employers from lawsuits related to the pandemic, an effort they say would give businesses the confidence to return to normal. The Senate is scheduled to reconvene later this month. The debate reflects a deepening schism between the major political parties, with Democrats focused on protecting lives and Republicans focused on protecting livelihoods. Democratic House Speaker Nancy Pelosi expressed frustration over efforts to pass an emergency worker-protection standard, which keeps running into GOP resistance. “They’re saying ‘Let’s give immunity — no liability — for employers,’” Pelosi said. “We’re saying the best protection for the employer is to protect the workers.” Nearly 98,000 health care workers have contracted the novel coronavirus, according to Centers for Disease Control and Prevention data that the agency acknowledges is an undercount. KHN and The Guardian have identified more than 780 who have died and have told the personal stories of 139 of them. In May, the House passed a $3 trillion relief bill that would require the Occupational Safety and Health Administration to put in place an emergency standard that would call on employers to create a plan based, in part, on CDC or OSHA guidance to protect workers from COVID-19. It would cover health care workers and also those “at occupational risk of exposure to COVID19.” The measure would allow workers to bring protective gear “if not provided by the employer.” Similar rules in place in California health care workers have come under fire for offering little added protection.In action, the new measure would allow OSHA inspectors to request to review an employers’ plan and hold them accountable for following it, said David Michaels, former U.S. assistant secretary of Labor and OSHA administrator, who has called for such a standard. Federal guidance is currently optional, not required. Senate Majority Leader Mitch McConnell has insisted that the next pandemic relief bill include immunity for employers against coronavirus-related lawsuits.“If we do another bill, it will have liability protections in it for doctors, for hospitals, for nurses, for businesses, for universities, for colleges,” McConnell said July 1. “Nobody knew how to deal with the coronavirus,” he said, and unless they’ve committed gross negligence or intentional harm, those parties should be protected from an “epidemic of lawsuits.” He has proposed a five-year period of immunity from December 2019 through 2024.
Trump- No New Coronavirus Stimulus Without Payroll Tax Cut - President Trump won't sign a new coronavirus relief package unless Democrats agree to a payroll tax cut, according to Politico, citing three anonymous sources 'close to the issue.' Trump's line in the sand was echoed this week by Vice President Mike Pence, who told House Republicans in a conference call this week that they should be rallying behind the idea, according to sources on the call.Senate GOP and House Democrats, however, aren't fans of cutting the payroll tax - which suggests the next stimulus will be yet another showdown between both sides of the aisle, which are trillions of dollars apart in how they propose funding the package, as well has how the funds will be spent, according to the report.White House officials have also been talking to Senate GOP leaders about potential elements of a new Republican coronavirus relief bill to be unveiled next week, although there is no sign yet whether Majority Leader Mitch McConnell (R-Ky.) will include it in that package. Senate Finance Committee Chairman Chuck Grassley (R-Iowa) has signaled he doesn’t like the idea, and House Democrats have called it a non-starter.Negotiations will start in earnest next week, when both chambers come back into session following a two-week recess. Speaker Nancy Pelosi (D-Calif.) suggested Thursday that she has been in touch with individual Senate Republicans in advance of the talks, but there’s no sign that she and McConnell have held any discussions. -PoliticoSo far, $3 trillion has already been spent to mitigate the economic fallout of the COVID-19 pandemic.House Democrats have already passed a bill for a second round of direct payments of up to $1,200 for individuals and $2,400 for joint filers. Senate Republicans appear amenable, though they want to limit distributions to those making $40,000 or less per year - or around 40% of Americans who lost their jobs in March.The Democratic plan, meanwhile, raise that cap to those making $75,000 per year or less.
Trump administration seeking to block funding for CDC, contact tracing and testing in new relief bill: report -The Trump administration is attempting to block billions of dollars for contact tracing, additional testing and other coronavirus mitigation efforts that would potentially be included in Congress's next coronavirus relief package, officials involved in the negotiations told The Washington Post.According to the Post's sources, the administration is also trying to block billions in funding for the Centers for Disease Control and Prevention (CDC) that GOP senators want to give the agency as it continues to battle COVID-19 on the front lines.The administration also wanted to take out billions of dollars that would go to the Pentagon and State Department to allow them to better combat the pandemic both domestically and internationally, the Post reports.While the talks were fluid, the officials said, the administration’s stance perturbed some GOP senators, who want the money to stay in the bill. Senate Majority Leader Mitch McConnell (R-Ky.) signaled this week that Senate Republicans' version of a new COVID-19 relief package could be unveiled this coming week, as both the Senate and the House return to session. While House Democrats passed a relief package at the end of May, McConnell has made it clear that the bill would go nowhere in the Republican-controlled Senate. It doesn’t appear that the House Democrats and Senate Republicans are anywhere close to having an agreed upon package, and any friction between GOP senators and the White House would only widen the quagmire. The next potential coronavirus relief bill comes as the U.S. is struggling to fight off a resurgence of COVID-19. On Friday, the country reported nearly 76,000 new cases of the virus, a record, and added another 70,831 on Saturday, according to data compiled by The New York Times.
USDA food box program fails to deliver significant share of much needed aid - The United States Department of Agriculture’s (USDA) “Farmers to Families Food Box Program” has failed to deliver 15 percent of its promised deliveries to charities and food banks so far. Announced by President Donald Trump in April, the program allocated $3 billion to purchase food from farmers who had lost sales to large buyers during the pandemic and contracted companies to box and deliver it to people in need. The boxes are composed of fresh produce, meat and dairy, with enough food to feed a family of four for one week. The USDA anticipated the delivery of $1.2 billion worth food between May 15 and June 30. Instead, the program has delivered less than two-thirds of this amount, just $755.5 million, while being plagued by chronic issues. Many of the companies awarded contracts lacked proper experience and personnel to work in food distribution, and often failed to deliver boxes on time or at all. The San Antonio, Texas based CRE8AD8 (pronounced ‘create a date’), a high-end wedding and corporate event planner, was awarded a $39 million contract to deliver 750,000 boxes across seven states. The San Antonio Express-News reports that the company has only delivered a fraction of its promised boxes, a performance so dismal that it is one of 16 companies whose contracts were not renewed for the second round of the program (July 1 to August 31). The Houston Food Bank reported that only 15 of 87 truckloads were delivered. Even worse, the North Texas Food Bank in Plano, the Southeast Texas Food Bank in Beaumont, the West Texas Food Bank in Odessa, the Community Food Bank of Southern Arizona in Tucson and the Utah Food Bank in Salt Lake City all have reported that they received none of their expected deliveries from CRE8AD8. The USDA has not commented on whether the undelivered boxes will be provided later or if the money and food allocated has been lost. Even if all the food boxes had been delivered it would still have not been enough. The number of food insecure Americans was 37 million in 2019, prior to the economic collapse triggered by the coronavirus pandemic. The number of Americans lacking access to the necessary amount of nutrition has doubled since the onset of the pandemic according to the COVID Impact Survey. The total amount allocated for the Food Box Program between May 15 and August 31 is $2.67 billion. For this 78-day period the allocated funds amount to less than a dollar a day for each of the 37 million people already living with food insecurity.
Travel industry calls for targeted relief amid coronavirus pandemic The travel industry, represented by the U.S. Travel Association, on Friday called for further relief in the next coronavirus stimulus package after having been devastated by the pandemic. The association noted in a letter to congressional leadership and Treasury Secretary Steven Mnuchin that the travel industry has lost 51 percent of its workforce so far, which accounts for 38 percent of the total U.S. jobs lost as a result of the pandemic. “The industry is now on track to shrink by $1.2 trillion by the end of the year. It is clear there can be no economic recovery without a recovery in the travel industry,” Tori Emerson Barnes, U.S. Travel executive vice president of public affairs and policy, wrote. The association called for $10 billion in federal grants to promote safe and healthy travel practices and proposed that Congress should set aside $5 billion in any aid to state and local governments for areas impacted by a decline in travel. The association also suggested that Congress should provide an additional $5 billion in grants for tourism marketing over the next two years. The letter called for $13 billion in emergency assistance for U.S. airports, which are facing at least $23 billion in operating losses. The association also asked for changes to the Paycheck Protection Program (PPP) to include destination marketing organizations, which have not been eligible to apply for these loans, and liability protection for businesses. In a boon for the industry, Republicans have indicated that liability protections will be included in the next coronavirus relief package. Senate Majority Leader Mitch McConnell (R-Ky.) is planning to roll out the latest relief proposal next week. Additionally, the group calls for a temporary travel tax credit for individuals worth 50 percent of qualified travel expenses occurring in the U.S. through 2022; restoration of the food and entertainment business expense deduction; enhancements to the employee retention tax credit and more tax credits for events; cleaning and personal protective equipment; and a national strategy to expand COVID-19 testing.
Fauci urges state, local leaders to 'be as forceful as possible' on masks- Anthony Fauci urged state and local leaders on Friday to take strong action on face masks, calling their widespread use one of the most important steps needed to safely reopen the country. “I would urge the leaders — the local political and other leaders — in states and cities and towns to be as forceful as possible in getting your citizenry to wear masks,” Fauci, the nation's top infectious disease expert, said in a live-streamed event hosted by the U.S. Chamber of Commerce. About half of all states now require masks in public spaces when social distancing isn’t possible following numerous studies that show face coverings can slow the spread of COVID-19. “Practically, when you're living your life and trying to open up a country, you are going to come into contact with people, and for that reason we know that masks are really important and we should be using them, everyone,” added Fauci, a member of the White House coronavirus task force. While mounting evidence shows face coverings can slow the spread of the coronavirus, governors have until recently been slow to implement statewide mandates. The first states issued requirements in April. Three months later, half of the states still don’t have similar mandates, but most allow localities to set their own rules, and many have done so. In the past week, as COVID-19 cases surge in dozens of states, Republican governors in Alabama and Arkansas and Democrats in Colorado and Louisiana issued orders requiring masks in public when social distancing isn’t possible. Mandates in Montana and Mississippi also took effect this week in dozens of counties. Other governors have been strongly opposed to issuing statewide rules. Georgia Gov. Brian Kemp (R) has rejected calls to issue a statewide requirement and even issued an executive order blocking localities from implementing their own rules. On Thursday, he sued Atlanta Mayor Keisha Lance Bottoms (D), arguing her city’s mask measure violates his executive order. Iowa and Nebraska are the only other two states that don’t have statewide mask rules and also block localities from issuing their own requirements.
Fauci calls White House criticism of him bizarre, says 'let's stop this nonsense' and fight coronavirus (Reuters) - U.S. infectious disease expert Anthony Fauci on Wednesday called the White House effort to discredit him “bizarre” and urged an end to the divisiveness over the country’s response to the coronavirus pandemic, saying “let’s stop this nonsense.” Fauci, who has become a popular and trusted figure during the coronavirus outbreak, came under criticism from President Donald Trump and some of his Republican allies as Fauci cautioned against reopening the U.S. economy too soon. The recent spike in coronavirus infections, primarily in states that were among the earliest to lift coronavirus restrictions, put Fauci on a collision course with the White House. “One of the things that’s part of the problem is the dynamics of the divisiveness that is going on now that it becomes difficult to engage in a dialogue of honest evaluation of what’s gone right and what’s gone wrong,” Fauci told The Atlantic in an interview. “We’ve got to own this, reset this and say OK, let’s stop this nonsense and figure out how can we get our control over this now.” The White House over the weekend distributed a list of statements Fauci made early in the pandemic that turned out to be wrong as understanding of the disease developed, according to media reports. Trump said this week he valued Fauci’s input but did not always agree with him.“You know, it is a bit bizarre. I don’t really fully understand it,” Fauci said in an interview with The Atlantic. He said he believed the people involved in releasing that list, which was misleading because it did not include the entirety of Fauci’s statements or other context, are really “taken aback by what a big mistake that was.” White House tensions with Fauci have risen with the decline of Trump’s popularity in opinion polls over the president’s handling of the outbreak.
Fauci admonishes those flouting coronavirus guidelines: 'You're part of the problem' - Anthony Fauci, the nation's top infectious disease expert, said during a Saturday interview with WebMD's chief medical officer John Whyte that "young people are driving this new surge" in coronavirus cases by "not caring" if they get infected. Fauci said recent data shows the largest age group reporting new COVID-19 infections is at least 15 years younger than the demographic the nation saw a few months ago when New York case numbers peaked in early April. "They're not going to get very sick. They know that. So what I think is happening is that, understandably, innocently, but not correctly, the younger individuals are saying, 'Well, if I get infected, so the chances of it is that I won't even have any symptoms, so who cares?' That's a big mistake," Fauci said. COVID-19 infections in younger individuals with healthy immune systems are statistically more likely to display less severe symptoms than those found in older patients. Still, Fauci added that this is not a reason for younger generations to exercise less caution. "Because by allowing yourself to getting infected or not caring if you do get infected, you are propagating a pandemic," he added. "Because it doesn't end with you. You get infected and have no symptoms. The chances are you're going to infect someone else, who will then infect someone else." Fauci emphasized how careless behavior toward the virus in younger, healthier people could indirectly affect someone who is more prone to a severe infection, thereby creating more problems that counter the effort to curb the spread. "So somehow, we've got to keep getting that message across. And I don't mean in the sense of blaming anybody," Fauci said, adding, "these are people that are doing this innocently and inadvertently."
CDC director says Trump, Pence should wear masks to set example - Centers for Disease Control and Prevention (CDC) Director Robert Redfield said Tuesday the president and vice president need to wear masks to set an example for the public. President Trump wore a mask in public for the first time over the weekend, nearly three months after the CDC issued guidance recommending the use of face coverings when social distancing isn’t possible. Trump has previously argued he doesn’t need to wear a mask because he is routinely tested for COVID-19. “Glad to see the president wear a mask this week and the vice president, and clearly in their situation they could easily justify that they don’t need to because of all the testing around them and they know they’re not infected,” Redfield said during a livestreamed interview with Howard Bauchner, editor-in-chief of the Journal of the American Medical Association. “But we need them to set the example, as you said, for other individuals,” he added. Public health experts have urged Trump to wear a mask, noting that it could go a long way in encouraging his supporters to do the same. Polls show mask-wearing has become a partisan issue, with Democrats much more likely than Republicans to wear masks. Trump wore a mask while visiting Walter Reed hospital over the weekend, acknowledging it is a good setting for doing so. According to a new poll released by the CDC on Tuesday, 76 percent of adults said they had worn a face covering when leaving their house within the past week. That lines up with other polls that have been conducted on the issue. However, that number needs to improve if the U.S. wants to get COVID-19 under control, Redfield said.
Trump Orders Hospitals to Stop Sending COVID-19 Data to CDC - Public health experts are warning that coronavirus statistics will soon be newly vulnerable to political manipulation after the Trump administration ordered hospitals to send Covid-19 patient data directly to a Department of Health and Human Services system rather than the Centers for Disease Control and Prevention, which usually receives the information and releases it to the public.The New York Times reported Tuesday that the HHS database now positioned to collect daily Covid-19 information from hospitals "is not open to the public, which could affect the work of scores of researchers, modelers, and health officials who rely on CDC data to make projections and crucial decisions.""Health and Human Services said that going forward, hospitals should report detailed information on a daily basis directly to the new centralized system, which is managed by TeleTracking, a health data firm with headquarters in Pittsburgh," theTimes noted.The administration's new directive came in the form of a document quietly posted online last week by HHS, an agency headed by former pharmaceutical executive and Trump appointee Alex Azar."As of July 15, 2020, hospitals should no longer report the Covid-19 information in this document to the National Healthcare Safety Network site," the directive states, referring to the CDC's data-gathering system.Dr. Nicole Lurie, who served in former President Barack Obama's HHS, told theTimes that "centralizing control of all data under the umbrella of an inherently political apparatus is dangerous and breeds distrust.""It appears to cut off the ability of agencies like CDC to do its basic job," said Lurie. HHS spokesperson Michael Caputo confirmed in a statement to NBC News that the CDC will "no longer control" coronavirus data collection but said the agency will still participate in the process.
GOP senators sound alarm as coronavirus surges in home states - Senate Republicans are raising the alarm over the country's rapidly growing number of coronavirus cases. The warnings come as President Trump has repeatedly linked the recent spike to an increase in testing, while also overselling his administration’s response and appearing optimistic about the odds of a quick vaccine or the disappearance of the virus altogether. But GOP senators — back in their home states, many of which are seeing increased case counts — are painting a more sobering picture with their on-the-ground view. Senate Majority Leader Mitch McConnell (R-Ky.) has crisscrossed Kentucky during the recess, telling constituents that the coronavirus will not “magically disappear” and stressing that wearing a mask should not be a political issue. “Regretfully, this is not over. There were some that hoped this would go away sooner than it has. And I think the straight talk here that everyone needs to understand is this is not going away,” McConnell said during one of the stops. “This is going to be with us for a while,” he added. “The coronavirus is not involved in American politics. It has its own way forward, and we need to act responsibly.” Sen. Lindsey Graham (R-S.C.) — who, like McConnell, is up for reelection — characterized the public health fallout from Memorial Day as a “disaster,” pointing to an increase in cases coupled with a decrease in hospital space and available protective equipment. “You can see the effects of what happens when you kind of let your foot off the gas,” he said. Graham, a close congressional ally of Trump, also called for individuals to wear a mask, wash their hands frequently and practice social distancing, comparing the coronavirus fight to a "war." “All I can say is that if you believe wearing a mask is a sign of weakness, then you’re wrong,” he said. “Nobody is asking you to go to Afghanistan and get shot — just asking you to use common sense.”
Game show host retweeted by Trump deletes his account after announcing his son has coronavirus - Former game show host Chuck Woolery announced Wednesday his son has tested positive for COVID-19, just days after Woolery accused medical professionals and Democrats of lying about the virus in an effort to hurt the economy and President Trump's reelection chances. Woolery, who hosted several popular game shows including "Love Connection" and “Wheel of Fortune” and who is a staunch supporter of the president's, has since deleted his Twitter account following the announcement about his son. “To further clarify and add perspective, Covid-19 is real and it is here. My son tested positive for the virus, and I feel for of those suffering and especially for those who have lost loved ones," Woolery tweeted before his account disappeared. The message comes after Woolery tweeted Monday denouncing "outrageous lies" being told about the coronavirus, comments that Trump retweeted to his more than 83 million followers. . “The most outrageous lies are the ones about Covid 19. Everyone is lying. The CDC, Media, Democrats, our Doctors, not all but most, that we are told to trust. I think it’s all about the election and keeping the economy from coming back, which is about the election. I’m sick of it," Woolery wrote. CBS News correspondent Catherine Herridge asked Trump about the retweet in an interview on Tuesday. “You reposted a tweet yesterday saying that CDC and health officials are lying. You understand this is confusing for the public. So who do they believe? You, or the medical professionals like Dr. Fauci?” Herridge asked, referring to National Institute of Allergy and Infectious Diseases Director Anthony Fauci. “I didn’t make a comment,” Trump responded. “I reposted a tweet that a lot of people feel. But all I am doing is making a comment. I’m just putting somebody’s voice out there. There are many voices. There are many people that think we shouldn’t do this kind of testing, because all we do, it’s a trap.”
Washington state sues Trump administration over new LGBT health care rule — Washington state Attorney General Bob Ferguson on Friday sued the Trump administration for its recent rollback of health protections given to the LGBTQ community under the Affordable Care Act. ObamaCare prohibits discrimination against a patient because of their sex, race, national origin, age or disability. However, if Trump's new restrictions are allowed to move forward, gender identity and sex stereotyping are removed from the law's definition of "sex discrimination," effectively allowing health care providers to refuse care to LGBTQ patients if they please. Additionally, the rule change would allow "religious health care organizations, including religious hospitals and their employees, to discriminate on the basis of sex." “We should be working to eliminate discrimination in our health care system, not allowing it,” Ferguson said in a statement. “President Trump’s unlawful attempt to roll back anti-discrimination protections under the Affordable Care Act directly threatens the health and lives of Washingtonians. We’re in the middle of a pandemic — broad health care coverage has rarely been more critical. I will not allow the Trump Administration to attack Washingtonians’ access to unbiased care.” . Ferguson's office estimates that as many as 16,000 transgender people in the state will lose basic health coverage, as well as coverage for gender-affirming health care services. It also says that an additional 82,000 LGBTQ Washington residents would lose protection from being discriminated against when trying to find health care. In his complaint, Ferguson argues that Trump's new rule violates the Administrative Procedure Act, which states that the federal government can't implement new rules that violate standing law or constitutional rights. The suit comes after the Supreme Court on June 15 ruled that employment discrimination on the basis of transgender status or sexual orientation is unlawful.
TV commercials ask Trump to stop TVA outsourcing of IT jobs --A national organization opposed to importing information technology workers has taken to the airwaves to try to convince President Trump to stop the Tennessee Valley Authority from outsourcing much of its IT division.U.S. Tech Workers, a three-year-old nonprofit that wants to limit visas given to IT workers coming into the United States, is blasting TVA for laying off its own IT workers and replacing them with contractors who are using foreign workers with H1-B1 visas to do the computer work in Chattanooga and other parts of the Tennessee Valley. Kevin Lynn, founder of U.S. Tech Workers, called TVA's decision to lay off 64 IT workers last month and consider additional job cuts later this summer "really audacious" in the current market. Lynn and the ads his group developed target TVA CEO Jeff Lyash, who was paid more than $8.1 million in his first six months of the job at TVA last year. "Of all the federal workers in America, Trump's highest paid employee should know better than firing American workers, and giving their jobs to foreign workers, especially at a time when the Tennessee and Alabama job markets have been devastated by coronavirus," Lynn said. "President Trump promised to put American workers first. Here's his chance."
The IRS Is Paying Out 3% To 5% Compounded Daily Interest On Almost All Refunds Issued After April 15 This Year - In a world where interest doesn't really exist anymore, the IRS will surprisingly be paying quite a bit of it on most refunds issued after April 15 this year.Even though the tax deadline was extended to July 15 this year, the IRS will be paying interest on any refunds issued after April 15, according to a decision made by the agency last week. It's the result of a "quirk in the tax code" combined with the unusual step taken this year of extending the filing deadline, according to the WSJ. In other words, if you chose to wait on filing this year, you're likely to be paid a penalty, instead of owing one. The agency hasn't estimated how many people will receive interest but it has processed about 11 million refunds between mid-April and mid-June already. Just as the agency would charge for you holding onto your payments too long, it technically owes interest for holding on to people's refunds too long.And the interest is sizeable: 5% compounded daily for Q2 and 3% compounded daily starting on July 1.
Supreme Court agrees to expedite order on Trump's tax returns -The Supreme Court on Friday granted the Manhattan district attorney's request to expedite its recent decision rejecting President Trump's claims of absolute immunity from a subpoena for eight years of tax returns. Chief Justice John Roberts ordered the decision to go into effect immediately. The president's legal team did not oppose the move. The order will allow the remaining proceedings at the district court level to advance more swiftly. It normally takes nearly a month for the Supreme Court's decisions to go into effect. The court ruled 7-2 last week that the president does not have absolute immunity in state criminal investigations like the one that led to a grand jury subpoena for Trump's financial records. But the justices said in their decision that the president can still challenge the subpoena on other grounds. Trump's lawyers made clear this week that they intend to do just that, as the local prosecutors accused the president of trying to force a delay. "What the president’s lawyers are seeking here is delay," Carey Dunne, a lawyer with the district attorney's office, said during a Thursday court hearing. "I think that’s the entire strategy. Every day that goes by, the president wins the type of absolute temporary immunity he’s been seeking in this case, even though he’s lost on that claim before every court that’s heard it, including now the Supreme Court." The president's legal team has until July 27 to raise their new legal challenges to the subpoena.
Ivanka Trump pitches Goya Foods products on Twitter - Ivanka Trump took to Twitter on Tuesday evening to push products from Goya Foods, with critics quickly raising concerns that she was using her government position to boost a business.Trump, who serves as a senior advisor to her father President Trump in the White House, weighed in on growing controversy over the food company, tweeting, “If it’s Goya, it has to be good” and repeating the company’s slogan in Spanish.If it’s Goya, it has to be good. Si es Goya, tiene que ser bueno. pic.twitter.com/9tjVrfmo9z— Ivanka Trump (@IvankaTrump) July 15, 2020 .. The tweet comes as Goya faces a flood of criticism after its CEO praised President Trump at a White House event last week, sparking calls for a boycott. Speculation swirled that the White House adviser may have violated an ethics law with the tweet, with the law stating that “An employee shall not use or permit the use of his Government position or title or any authority associated with his public office to endorse any product, service or enterprise.” “You’re about to get dinged for a violation of ethics rules that apply to you as a White House staffer,” tweeted GOP operative Liz Mair. Several White House staffers have drawn scrutiny with their remarks during their time in the administration, with several pushing the limits of the Hatch Act, which bars federal officials from using their positions to boost support for a political candidate. However, none have faced significant consequences.
Trump shares photo with Goya Foods products after Ivanka faces criticism - President Trump on Wednesday shared a photo on Instagram with several Goya Foods products as the White House doubled down on its public support of the company even as a similar tweet from Ivanka Trump raised concerns about the violation of ethics rules for public officials. The photo, taken from the Oval Office, was promoted on the president's Instagram account a day after Ivanka Trump, a senior White House adviser, shared a picture of herself with a can of Goya beans. The caption of the tweet read: “If it’s Goya, it has to be good. Si es Goya, tiene que ser bueno.” The message appeared to be show of support from Ivanka Trump following the backlash the CEO of Goya Foods, Robert Unanue, faced after publicly praising the president at a White House event last week. But it quickly prompted criticism of its own, as well as accusations that the senior White House aide was violating ethics laws by using her official capacity to endorse a private product. “You’re about to get dinged for a violation of ethics rules that apply to you as a White House staffer,” tweeted GOP operative Liz Mair. Walter Shaub, former director of the Office of Government Ethics, also remarked that Ivanka Trump's decision to disclose her title on her personal Twitter account weighed against her when it came to ethics laws. "If you tout the company's product in an obvious response to the backlash the company is facing for the CEO's remarks about your father-president, you knowingly link your account in people's minds to your official activities; you create the appearance of official sanction," Shaub said in a series of tweets. Rep. Alexandria Ocasio-Cortez (D-N.Y.) was one of many online who mocked Ivanka Trump's tweet. The first-term congresswoman tweeted in Spanish, "If it's Trump, he has to be corrupt."
The Left's "Boycott" Of Goya Has Backfired Spectacularly As Conservative Customers Clean Out Store Shelves - In what is turning into a spectacular backfire, Goya products are being cleaned out of grocery store shelves in what is being dubbed the "Chick-Fil-A" effect by The Daily Wire.Namely, leftists have called for a boycott over the brand after its CEO publicly praised President Donald Trump. Instead, conservatives took matters into their own hands and are reportedly buying more Goya products than they normally would to show support for the company, its CEO and the President. It's being called a "Buy-Cott". It began when radio host Mike Opelka began encouraging people on Twitter to buy $10 worth of Goya products to turn around and donate to their local food bank. He Tweeted: “My brother came up with a terrific idea and I am encouraging all to join me in purchasing $10 worth of Goya Foods products and donating them to your local food bank. Let’s push a BUY-cott, not a boycott. Let’s show the #Goyaway people what compassion can do.”Other conservative voices joined in:Go out today and buy your Goya foodshttps://t.co/O9undwBG8i— Mark R. Levin (@marklevinshow) July 11, 2020Most of these people fronting about a #GOYABOYCOTT either don’t use @GoyaFoods anyways . And most of the ones who do will cave by #NocheBuena pic.twitter.com/lKydzqpXuA — Marco Rubio (@marcorubio) July 11, 2020And this weekend a GoFundMe effort was launched to feed the hungry using only Goya products. It has raised over $43,000 so far. Casey Harper, who started the GoFundMe, said: “I’m not surprised we have raised so much because people are tired of having to walk on eggshells in political discourse. Also, Americans are fundamentally generous people, so a chance to feed the hungry and stand up to cancel culture was an easy win.”
The temporary restraining order against Mary Trump is lifted, allowing her to speak freely about her new tell-all book - The temporary restraining order against Mary Trump that prevented her from discussing her new book was lifted on Monday, the day before her bombshell book was set to be released. In her tell-all book, "Too Much and Never Enough: How My Family Created the World's Most Dangerous Man," the president's niece alleges that Trump "dismissed and derided" his own father when he began succumbing to Alzheimer's and called Mary "stacked" in front of his then-wife Marla Maples, among other claims.The president's younger brother Robert Trump had tried to prevent the book's release, claiming that it violated confidentiality agreements. Publisher Simon & Schuster said it didn't know about the nondisclosure agreement. Earlier this month, a judge lifted a temporary restraining order against Simon & Schuster, saying thebook was in the "public interest." The judge's decision on Monday to lift the temporary restraining order will now allow Mary Trump to discuss the book publicly.
St. Louis couple who pointed guns at protesters appear as guest stars during virtual Trump campaign event- The Trump campaign dug in its heels in the ongoing culture wars Friday, having the infamous St. Louis couple who pointed guns at protesters appear on one of its virtual campaign events Friday night. Mark and Patricia McCloskey of St. Louis, Mo., appeared on a program with campaign staffer Kimberley Guilfoyle as the two face an avalanche of criticism for threatening Black Lives Matter protesters at gunpoint. “I thought we were going to die” Mark McCloskey said of the incident earlier this month. “We have nothing to apologize for. We did nothing wrong, and we’re not going to back down.” The McCloskeys were instantly transformed into liberal boogeymen and conservative folk heroes earlier this month when they brandished an assault rifle and pistol as protesters marched through the streets of their neighborhood. At the campaign event Friday, the couple said they feared the demonstrators would ransack their house and burn it down, though in video of the event, no protesters appeared to be threatening any person’s house. Kimberley Gardner, the circuit attorney for St. Louis County, announced last week that her office is investigating the couple, saying: “We will not tolerate the use of force against those exercising their First Amendment rights, and will use the full power of Missouri law to hold people accountable.” The investigation sparked uproar among conservatives, who framed the probe as a threat to the couple’s Second Amendment rights. "The Second Amendment is not a second-class right. No family should face the threat of harassment or malicious prosecution for exercising that right," Missouri Sen. Josh Hawley (R) wrote to Attorney General William Barr. “I urge you to consider a federal civil rights investigation into the St. Louis Circuit Attorney’s Office to determine whether this investigation and impending prosecution violates this family’s constitutional right.”
US attorney calls for investigation into unmarked federal agents arresting protesters in Oregon - The U.S. Attorney for the Oregon District has requested an investigation into the unmarked, camouflaged federal officers who have been picking up and detaining protesters in Portland. "Based on news accounts circulating that allege federal law enforcement detained two protestors without probable cause, I have requested the Department of Homeland Security Office of the Inspector General to open a separate investigation directed specifically at the actions of DHS personnel," U.S. Attorney Billy J. Williams said in a statement Friday. Federal authorities, clad in unmarked military fatigues have reportedly been grabbing and detaining protesters in unmarked vans. Tensions have escalated between law enforcement and demonstrators since the death of George Floyd, an unarmed Black man who was killed while in Minneapolis police custody in late May. The protests have dominated the Portland area for well over a month, and at times, have lead to the damage of federal property. These actions have prompted acting Secretary of the Department of Homeland Security (DHS) Chad Wolf to send federal officers to the Rose City in recent weeks. Wolf in a statement Thursday described protesters as a "violent mob," though protests Thursday night were reported to be mainly peaceful. Williams's request comes after several of Oregon's Democratic congressional lawmakers expressed outrage over the incidents. Sens. Jeff Merkley and Ron Wyden and Reps. Earl Blumenauer and Suzanne Bonamici are also requesting that the events be reviewed.
Rubio mistakenly tweets tribute to Lewis with picture of late Elijah Cummings - Sen. Marco Rubio (R-Fla.) prompted pushback Saturday after tweeting a photo of himself and the late Rep. Elijah Cummings (D-Md.) in a tribute to the late John Lewis (D-Ga.), who died Friday night. Rubio on Saturday shared a photo of himself and Cummings, tweeting that it was "an honor to know & be blessed with the opportunity to serve in Congress with JohnLewis a genuine & historic American hero." Rubio also changed his profile picture on Twitter to the photo with Cummings on Saturday, according to multiple reports. He has since changed the photo to one of himself and Lewis.
Cat That's Been Dead For 12 Years Gets A Voter Registration Application In The Mail - One family in Atlanta just received a voter registration application for their cat. But that's not all: the cat, named Cody, has been dead for over 12 years. Owner Carol Tims told Fox News in an interview: "There's a huge push [to get people to vote] but if they're trying to register cats, I'm not sure who else they're trying to register. I'm not sure if they're trying to register dogs, mice, snakes.” The family found the form addressed to their cat - who they say is a Democrat - in their mailbox mid-week last week. Cody was a “great cat, indoor and outdoor” who “loved his family, loved his neighborhood” and lived to the age of 18, according to its owner. But as it comes to his ability to vote and his voting record, even Tims had to admit: “He's a cat and he's been dead for a long time.”
TurboTax, H&R Block used 'unfair and abusive practices' to get more money out of people, state regulator finds - Five tax prep companies deliberately hid information about free programs available to eligible disadvantaged tax payers in an effort to upsell customers to pay for their services, the New York State Department of Financial Services said Wednesday. The state regulator concluded in a report after a year-long investigation that Intuit, which is the maker of TurboTax, H&R Block, TaxSlayer, TaxHawk, and Drake Enterprises engaged in “unfair and abusive practices” that undermined the U.S International Revenue Service’s (IRS) Free File Program intended to aid disadvantaged tax payers. The department said its report found the five companies “deliberately hid website landing pages” for the free program, and said doing so led to “starling low participation in the program.” Just 2.5 million of 100 million eligible taxpayers used the IRS’s free program last year, according to the New York state regular. “The Free File Program is broken and was exploited by commercial tax preparer companies to drive their own profits at the expense of low-income taxpayers. This is yet another blow to the public trust,” New York’s Superintendent of Financial Services Linda A. Lacewell said in a statement. “Consumers who most needed a no-cost simple means to file their taxes were left in the cold. We call upon the federal government to work with states to develop a fair, accessible, and modern tax filing system.” The investigation was launched in 2019 after a ProPublica report in April 2019 that TurboTax hid its free file page from search engines. The state regulator found the five tax prep companies “deindexed,” or deliberately edited the code, in their landing pages under the program to hide those landing pages from taxpayers from search engine results.The companies also created and marketed their own products as “free” in an effort to lure customers away from the IRS’s free program, according to the regulator. American Airlines warns 25,000 employees of potential job cuts amid pandemic
FTC may depose top Facebook leaders in antitrust probe: reports - The Federal Trade Commission (FTC) is reportedly mulling deposing Facebook head Mark Zuckerberg and Chief Operating Officer Sheryl Sandberg as it probes whether the social media giant violated antitrust laws. People familiar with the matter told The Wall Street Journal and Fox Business that the FTC is mulling calling Zuckerberg and Sandberg, and that some top officials at Facebook are preparing for possible summons. Anti-trust probes often include several rounds of document requests, and interviews will take time to finish, indicating the FTC is not near the end of its investigation. However, the company appears focused on Zuckerberg’s appearance at the end of the month in front of the House Judiciary antitrust subcommittee where he and other top tech executives will testify. “We look forward to sharing our views about the competitive landscape, along with other technology leaders, during this month’s Congressional hearing, while also demonstrating for enforcement agencies that our innovation provides more choices for consumers,” said a Facebook spokesperson. The FTC did not immediately respond to a request for comment from The Hill. Zuckerberg and Sandberg were not called to testify in the FTC’s past investigation of Facebook over alleged consumer-privacy violations, a probe that produced a $5 billion settlement a year ago. The FTC is currently investigating whether Facebook, which also owns other platforms like WhatsApp and Instagram, illegally engaged in monopolistic business practices, including whether it tried to buy competitors to reduce competition. The Justice Department and several state attorneys general are also probing Facebook and other platforms over anti-trust violations.
The Higher The Number Of Covid Cases, And The More Layoffs, The More Bullish It Is For Stocks --Earlier today, Rabobank's Micheal Every laid out a big-picture case for why "we live in a pretty crazy world right now." It's safe to say that the market is not too far behind for two reasons: the higher the number of coronavirus cases, and the higher the unemployment the more bullish it is for stocks, and as even mainstream media such as Reuters now admits, we have the Fed to thank for this massive stock bubble. As the main pillar of its report, Reuters quotes Andrew Brenner, head of international fixed income at NatAlliance who said that "COVID-19 is now inversely related to the markets. The worse that COVID-19 gets, the better the markets do because the Fed will bring in stimulus. That is what has been driving markets."This is precisely what we have been saying for the past month when looking at the Fed's shrinking balance sheet, to wit:... for the stock market to move substantially from this point on - since the market is now fully disconnected from fundamentals and is simply a derivative of endogenous liquidity and fund flow - Powell will need to find another justification to expand the Fed's QE aggressively, as discussed in "JPMorgan Spots A Big Problem For Stocks." Something like - for example - a second wave of the coronavirus pandemic.And just like that both a virus cure and the virus itself are now bullish.But wait there's more, because picking up on what Morgan Stanley said last week, when chief equity strategist Michael Wilson said that record layoffs are bullish because they mean even higher corporate profits (discussed extensively here) or as the bank puts it, massive layoffs mean "explosive operating leverage"...
Lawmakers grill Robinhood following 20-year-old trader’s suicide - The brokerage app provider Robinhood should improve its consumer protections, congressional lawmakers say, following the suicide of Alex Kearns, a 20-year-old investor who had a negative balance of $730,000 on his account. In a letter addressed to Robinhood co-founders Vladimir Tenev and Baiju Bhatt, lawmakers press the company on how it determines which users can access risky investment strategies like options trading.“Robinhood has been very successful in marketing itself as an easy to use and low-cost brokerage service among first-time retail investors, especially in recent months,” the letter states. “By seeking to cultivate a customer base of relatively inexperienced investors, you have also taken on an especially great responsibility to make sure your customers are protected and always provided with clear and accurate information.” The letter includes 10 questions on Robinhood’s options trading and how the firm determines which users are eligible to participate, among other queries.Rep. Brad Sherman, chairman of the House subcommittee on investor protection, entrepreneurship and capital markets, signed the letter with Illinois Sens. Richard Durbin and Tammy Duckworth. Rep. Lauren Underwood, Rep. Sean Casten and Rep. Bill Foster, who chairs a task force on artificial intelligence, added their names. The lawmakers did not respond to requests for additional comment.
On eve of bankruptcy, U.S. firms shower execs with bonuses -(Reuters) - Nearly a third of more than 40 large companies seeking U.S. bankruptcy protection during the coronavirus pandemic awarded bonuses to executives within a month of filing their cases, according to a Reuters analysis of securities filings and court records. Under a 2005 bankruptcy law, companies are banned, with few exceptions, from paying executives retention bonuses while in bankruptcy. But the firms seized on a loophole by granting payouts before filing. Six of the 14 companies that approved bonuses within a month of their filings cited business challenges executives faced during the pandemic in justifying the compensation. Even more firms paid bonuses in the half-year period before their bankruptcies. Thirty-two of the 45 companies Reuters examined approved or paid bonuses within six months of filing. Nearly half authorized payouts within two months. Eight companies, including J.C. Penney Co Inc and Hertz Global Holdings Inc, approved bonuses as few as five days before seeking bankruptcy protection. Hi-Crush Inc, a supplier of sand for oil-and-gas fracking, paid executive bonuses two days before its July 12 filing. J.C. Penney - forced to temporarily close its 846 department stores and furlough about 78,000 of its 85,000 employees as the pandemic spread - approved nearly $10 million in payouts just before its May 15 filing. On Wednesday, the company said it would permanently close 152 stores and lay off 1,000 employees. The company declined to comment for this story but said in an earlier statement that the bonuses aimed to retain a “talented management team” that had made progress on a turnaround before the pandemic. The other companies declined to comment or did not respond. In filings, many said economic turmoil had rendered traditional compensation plans obsolete or that executives getting bonuses had forfeited other compensation.
Bankers Make Billions From Fed Money Printing As Double-Dip Recession Fears Surge - The Federal Reserve's stunning effort to keep credit flowing in the system during the virus pandemic and resulting lockdowns have been like striking gold for the biggest US banks, reported Bloomberg. Capital markets were frozen at the start of the pandemic, but as soon as the Fed set up an unprecedented series of programs to support corporate debt markets and cut interest rates, bankers were able to handsomely profit from trading and arranging debt deals for companies seeking cash. This powered JPMorgan Chase & Co. and Citigroup Inc.'s profitability despite rising loan-loss provisions and even resulted in Goldman Sachs Group Inc. smashing earnings expectations. "Goldman's earnings this quarter were too good -- almost indecent, in fact," said Octavio Marenzi, CEO of capital markets consultancy Opimas. "The Fed has been able to engineer a huge bounce-back in the markets by injecting trillions of dollars, benefiting investment banks primarily. This will lead to calls for the government to do more to help Main Street rather than Wall Street."A Fed-induced capital markets boon fueled with newly printed money and bailouts has raised concerns whether the central banks disproportionately helped Wall Street at the expense of small businesses going bust. While the average blue-collar American was forced into food bank lines and given lousy Trump stimulus checks, the fatest cats at Wall Street banks celebrated the Fed's saving grace, as they collectively reported a $10 billion windfall, thanks to bond trading and debt deals. "The $10 billion figure is the gap between the $20.5 billion that the three banks generated from their fixed-income trading and debt underwriting units, and the $10.4 billion average quarter for those businesses over the last four years," said Bloomberg. Citigroup's investment bankers reported their best quarter in a decade, supported by debt underwriting. JPM traders locked in a massive $7.3 billion gain in fixed-income trading during the second quarter.
Dimon says economic outlook ‘much murkier’ as virus cases surge - The largest U.S. banks continue to brace themselves for more economic turmoil as the coronavirus pandemic again threatens to shut down much of the nation. Three of the biggest banks — JPMorgan Chase, Wells Fargo and Citigroup — socked away a collective $27.9 billion during the second quarter out of fear that consumer and commercial loan defaults could spike in the second half of this year. JPMorgan, the country’s biggest bank with $3.2 trillion of assets, stashed away a record $10.5 billion in the quarter while Wells more than doubled its provision from just three months earlier, to a record $9.4 billion. Piper Sandler analyst Jeffery Harte said that the reserves that banks set aside in the second quarter were “much bigger” than what investors and analysts had been expecting. The big question, he said, is do bank executives see bigger losses coming or are they playing it safe and hoping that most loans now in various stages of forbearance ultimately get repaid? “I think the thing that makes that question hard to answer is they don’t know what exactly to expect,” Harte said in an interview. Bankers seem to have grown less optimistic about an economic recovery in recent weeks as the number of COVID-19 cases has surged across much of the country. In California, which began to reopen in May, statewide restrictions on certain businesses were reinstated Monday as the numbers of cases and deaths continue to rise. On a call with investors and analysts Tuesday, JPMorgan Chairman and CEO Jamie Dimon said he anticipates a “much murkier economic environment going forward than [we] had in May or June.” Though he said that the bank is “prepared for the worst,” he acknowledged that no one can really predict how long the pandemic will wreak havoc on the U.S. and global economies. “This word ‘unprecedented’ rarely is used properly. This time it's being used properly. It's unprecedented what's going on around the world. And obviously COVID itself is the main attribute,” he said. The New York City-based bank reported net income of $4.7 billion or $1.38 earnings per share, bolstered by the bank’s highest quarterly revenue on record for the commercial and investment bank business. Still, its overall profit fell 51% from the same period last year. The bank will maintain its dividend at 90 cents unless there’s a material change in the economy, Dimon said.
Abundance of deposits tests bankers - When it comes to deposits, banks may have too much of a good thing. Federal stimulus efforts, including the Paycheck Protection Program, have added billions of dollars in deposits to balance sheets, assuaging concerns that arose early in the coronavirus crisis that the banking industry could suffer from liquidity shortages. Deposits at Ally Financial, Citizens Financial Group, First Horizon National, F.N.B. Corp. and Regions Financial — banking companies that reported second-quarter results late Thursday and Friday morning — rose 10.2% on averge from a quarter earlier. But the influx creates other challenges for banks, requiring them to engage more with depositors and keep them in the fold until they can make the most of the funds. That could require patience and hands-on attention by bankers because many opportunities to boost profit will rely on an economic recovery and improved prospects for business customers. Depositors “are just going to hold onto the funds until they need it, but in general we’re trying to stay really close to our customers and deepen those relationships,” Bruce Van Saun, president and CEO of the $177 billion-asset Citizens, said in an interview. “You tend to remember how people treat you when you’re down and that creates lasting benefits.” Total deposits at Citizens increased by 8% from a quarter earlier to $143.5 billion. Executives credited the PPP, extended unemployment benefits and direct cash payments for the surge. Defensive line draw-downs by commercial clients were also a factor. Over time, Van Saun said he would like to offer fee-based advisory services to many of the Providence, R.I., company’s new clients, though it might take some time before those opportunities arise. “If you have a strong balance sheet, your business is performing well and you get ahead on the liquidity front, if you see a competitor struggling … you could go out and do an acquisition,” Van Saun said. “And we have M&A bankers to cover them and offer them ideas and potentially intermediate.” The $38 billion-asset F.N.B. wasted no time putting its deposits to work, though it focused largely on lowering funding costs. Deposits increased by 15% from a quarter earlier, to $3.6 billion, reflecting the PPP and the company’s efforts to bring in other new clients. Transaction deposits, which rose by 20%, made up 85% of the Pittsburgh company’s total deposits on June 30.
Energy lenders brace for more losses - Banks with exposure to oil and gas firms are bracing for issues with their clients' credit quality. Though energy lenders set aside millions of dollars in the first quarter to cover looming losses, many provided assurances that they were well equipped to handle an oil slump. But conditions have worsened as fallout from the coronavirus pandemic has intensified. Oil prices briefly went into negative territory in April, and natural gas prices hit a 25-year low in June. The Texas Department of Banking said in late March that it had increased its monitoring of banks with particularly heavy exposure to the oil and gas sectors. Eighteen exploration-and-production companies filed for bankruptcy protection in the second quarter, marking the busiest quarter for such filings since 2016, according to the law firm Haynes and Boone. And collateral values have been declining. Bankers will be pressed about the adequacy of reserves during second-quarter calls, industry observers said. They should expect more questions to focus on mitigation efforts and a deeper dive into geography and energy subsectors, as well as banks' plans to reduce the size of energy portfolios over the rest of this year. Exposure “will undoubtedly result in negative credit migration and ultimately drive further reserve builds and net charge-offs nearer-term,” the research team at Raymond James warned in a recent note to clients. Bankers are also steeling themselves for more targeted questions. “We know there's stress ... and there’s going to continue to be stress” in the energy portfolio, Barbara Godin, chief credit officer at the $134 billion-asset Regions Financial in Birmingham, Ala., said during a conference in June. The downturn “is going to shake some players out, so all eyes are on that portfolio.” “Lower for longer remains” is the mantra for energy prices, so producers must gird for a long and difficult recovery, researchers for Haynes and Boone said in a recent report. “It is reasonable to expect that a substantial number of producers will continue to seek protection from creditors in bankruptcy even if oil prices recover over the next few months.” Some banks have taken a proactive approach by reducing their exposure. Huntington Bancshares in Columbus, Ohio, said in June that it had sold about $100 million of oil-and-gas loans as part of a plan to reduce the size of energy portfolio. Richard Pohle, chief credit officer at the $114 billion-asset Huntington, said the company expects net charge-offs to remain elevated despite the sales. While oil prices have rebounded from negative territory to reach about $40 a barrel, they are still well below the $60 mark from January. Moreover, current levels are “not a sufficient clearing price for many heavily leveraged” producers to boost earnings and pay their loans, the Haynes and Boone team said.
Wells Fargo posts first quarterly loss since 2008 - Wells Fargo’s shares slumped after the company reported its first quarterly loss since 2008 as loan-loss provisions soared with the bank expecting a more severe downturn from the coronavirus pandemic. The firm set aside a record $9.5 billion for credit losses, about $4 billion more than analysts had expected. Wells Fargo executives had warned they would earmark more for soured loans than the first quarter’s $4 billion as the pandemic continues to rage throughout the U.S. and weigh on companies and workers. BloombergThe San Francisco-based lender also cut its dividend to 10 cents a share from 51 cents. Wells Fargo said last month it would lower the payout after the Federal Reserve implemented a new rule tying dividends to earnings. The bank’s $2.4 billion loss in the second quarter was a stark turnaround from the near-record $6.2 billion in profit it posted a year ago. “We are extremely disappointed in both our second-quarter results and our intent to reduce our dividend,” CEO Charlie Scharf said in a news release Tuesday. “Our view of the length and severity of the economic downturn has deteriorated considerably from the assumptions used last quarter.” The bank’s shares fell 3.6% to $24.50 at 8:31 a.m. in early New York trading. They had declined 53% this year through Monday. Wells Fargo’s results show how bad the bank predicts things could get following a surge in unemployment and nationwide stay-at-home orders in the second quarter. Soured-loan provisions are spiking across the industry for the second straight quarter. The dividend cut to 10 cents was worse than the 20 cents that Bloomberg’s Dividend Forecast team had projected. One analyst, Erika Najarian at Bank of America Corp., warned Monday that Wells Fargo could eventually cut its dividend to zero. Noninterest expenses rose to $14.6 billion from $13.4 billion a year ago. Costs in the second quarter were boosted by $1.2 billion that the firm attributed primarily to customer remediation tied to scandals in recent years. It also reported $382 million in personnel, occupancy and technology expenses tied to COVID-19. Wells Fargo is under pressure to dramatically reduce costs and is planning thousands of job cuts to start this year, Bloomberg reported last week. The move has the potential to set a bleak precedent for an industry that’s been largely resisting mass layoffs during the pandemic.
Bank of America joins rivals in setting aside billions for bad loans - Bank of America’s profit slid 52% in the second quarter as the company joined rivals in preparing for an onslaught of consumer defaults spurred by the pandemic’s economic fallout. Profit at the consumer banking unit plunged 98% when compared with the same quarter last year as the coronavirus shuttered much of the U.S. economy and caused tens of millions of Americans to lose their jobs. The Charlotte, N.C., company allocated $5.1 billion for loan losses in the second quarter, the most since 2010. BloombergCalling it “the most tumultuous period since the Great Depression,” Chairman and CEO Brian Moynihan said in a statement that “strong capital markets results provided an important counterbalance to the COVID-19-related impacts on our consumer business.” With its 4,300 branches across the country, Bank of America is often seen as a bellwether for the U.S. consumer. Government stimulus measures and bank forbearance have kept some individuals and businesses afloat, but the largest U.S. lenders used the first full quarter with the pandemic to prepare for coming pain. JPMorgan Chase, Wells Fargo and Citigroup set aside almost $28 billion of credit-loss provisions when they reported results earlier this week, citing a deteriorating outlook. Shares of Bank of America slipped 2% to $24.10 at 6:58 a.m. in early New York trading. They had declined 30% this year through Wednesday. The bank joined other Wall Street firms in profiting from volatility in financial markets resulting from the pandemic. Fixed-income trading revenue beat forecasts in the second quarter, rising 50% to $3.2 billion, while investment banking fees jumped 57% to a record $2.2 billion. Net interest income fell 11% to $10.8 billion in the second quarter. On a fully taxable-equivalent basis, the figure was $11 billion, falling short of the $11.2 billion average estimate of 11 analysts in a Bloomberg survey. In the consumer business, the bank said it had processed about 1.8 million payment deferrals this year, of which 1.7 million were still in place as of July 9.
BankThink: No bank should be paying dividends right now - In the midst of one of the fastest and deepest economic declines in U.S. history, the largest banks are expected to pay out about $14 billion in dividends in the third quarter, while remaining under a cap imposed by the Federal Reserve in response to the coronavirus pandemic. This comes after the same banks paid out about $17.5 billion in the second quarter, according to an analysis using Bloomberg data. While the Fed did somewhat restrict shareholder payouts in late June, it has already missed an opportunity to require banks to conserve more than $30 billion in capital that could have proved invaluable if any of its recent economic stress scenarios pan out. Both the economic scenarios and policy on dividend payouts were included in the results of the 2020 stress test of the 33 largest banks. The results were not rosy. The Fed forecast $433 billion in loan losses through March 2022, under a scenario designed before the coronavirus lockdown. But in a rough sensitivity analysis that took the coronavirus into account, projected losses ballooned to $560 billion in a V-shaped economic recovery scenario; $680 billion in a W-shaped scenario; and $700 billion in a U-shaped scenario. Those would be heavy losses compared to the banks’ aggregate $1.2 trillion of capital. In the worst case, a quarter of banks would be near or below their regulatory minimums, although the Fed did not say which banks or how close they would be. The Fed admitted that its sensitivity analysis was not as robust as its typical stress test. So it took an unusual additional step: it is calling on banks to reassess their capital needs and resubmit capital plans later this year. Those plans could result in further dividend restrictions. Still, amid the extraordinary uncertainty that the coronavirus lockdown has induced, suspending dividends would seem an easy way to conserve capital right now. This is exactly the kind of situation for which these forward-looking stress tests are designed, in order to prevent another collapse of the financial system. 3Banks and fintechs need each other more than ever The Fed’s rule normally prohibits banks from proposed capital distributions while it is reviewing capital plans. But the Fed hasn’t prohibited dividends this time. Note that banks’ capital ratios were already elevated by an average of about 30 basis points in the first quarter because regulators allowed them to delay the capital impact of the new expected credit loss accounting framework. Regulators reasonably justified that forbearance by the need to promote lending during a crisis. But allowing banks to deplete capital through dividend payments seems counter to that purpose.
FHFA's challenge- Convincing Supreme Court it's not CFPB— An upcoming Supreme Court case dealing with the Federal Housing Finance Agency could finally answer the question of whether the relatively new agency is in the same constitutional limbo as the Consumer Financial Protection Bureau. Many observers saw the high court's recent ruling striking down the CFPB's single-director leadership structure as nearly decisive for the FHFA as well, since its structure appears to be identical. But with the court deciding to hear the FHFA case on its own, the justices may want to provide an opportunity to the FHFA — which says its statutory setup is different than that of the CFPB — to state its case, experts say. “What the Supreme Court is likely to do here is allow the litigants the opportunity in oral argument to explain why there’s something unique about HERA that would require them to rule differently,” said Richard Gottlieb, a partner at Manatt, Phelps & Phillips, referring to the Housing and Economic Recovery Act. Meanwhile, the shareholders challenging the FHFA are hoping that the Supreme Court overturns an agreement between the agency and the Treasury Department that the investors have long opposed. The Supreme Court granted "certiorari" to Collins v. Mnuchin last week, setting the high court up to hear the case brought by Fannie Mae and Freddie Mac shareholders that claims the structure of the FHFA runs afoul of the separation of powers doctrine, and that a policy that sweeps profits of the government-sponsored enterprises into the U.S. Treasury is likewise unconstitutional. The Dodd-Frank Act dictated a single-director structure for the CFPB, and the FHFA likewise is led by a single director — instead of a board or commission — nominated to a five-year term. Dodd-Frank's restriction on a president's ability to fire a CFPB director — which the high court threw out on June 29 — is similar to HERA's provision requiring a president to find cause before firing an FHFA chief. (Mark Calabria is the agency's current director.) In the 5-4 decision in Seila Law v. CFPB, the court declined to make a substantial distinction between the CFPB and other similarly structured agencies, suggesting that the ruling could also apply to FHFA. But an FHFA-specific decision could offer more clarity. “There wasn't much clarity in the CFPB case as it relates to the FHFA, so I think the ruling [in Collins v. Mnuchin] is going to provide some needed detail,” said David Merkur, an attorney in Greenspoon Marder's Financial Services practice group. Meanwhile, in the CFPB decision, the Supreme Court stopped short of invalidating the agency as a whole or its previous actions. But Fannie and Freddie investors likely want the court to go further in the FHFA case by throwing out the profit sweep policy. The investors have argued that the Treasury's hold on Fannie and Freddie's earnings is invalid.
Credit union joins list of lenders selling PPP originations - A Nevada credit union has joined the ranks of lenders that have opted to sell their Paycheck Protection Program loans. Greater Nevada Credit Union in Carson City has sold “substantially all” of its $556 million PPP portfolio to Fountainhead Commercial Capital in Lake Mary, Fla., Fountainhead CEO Chris Hurn said Monday in an interview. The $1.1 billion-asset Greater Nevada did not disclose sale terms. The loan sale follows decisions by several community banks to sell their PPP portfolios or outsource the forgiveness process. The $5.3 billion-asset Bryn Mawr Bank in Pennsylvania said on June 29 that it had sold the lion’s share of its $300 million portfolio to The Loan Source, another nonbank small-business lender; the price was not disclosed. The $1.2 billion-asset Northeast Bank in Portland, Maine, said on June 26 that it had struck a deal with The Loan Source to sell its $458 million portfolio for $9.8 million. While the $18 billion-asset Atlantic Union Bankshares in Richmond, Va., is not selling its $1.7 billion-asset portfolio, it hired an outside company to handle its forgiveness workload after determining that it could not spare the personnel to do the job in-house. Recent data from the Small Business Administration shows credit unions issued 196,000 PPP loans, with an average loan size of just under $50,000. Credit unions accounted for 4% of the nearly 5 million in PPP loans on the books through June 30. Greater Nevada, which was one of the most active credit union PPP lenders, is very active in Department of Agriculture loans. As its USDA business picked up, the credit union feared its staff might struggle to simultaneously navigate the PPP forgiveness process. “We made a choice from a resource-allocation perspective,” CEO Wally Murray said in an interview. Forgiveness “is definitely a manpower issue,” Hurn said. “We’re dealing with it ourselves. We’re trying to pivot more people back to our traditional lines of business, as we continue making Paycheck Protection loans.” Through Tuesday afternoon, Fountainhead had originated 1,976 PPP loans for $288.3 million.
Former First NBC executives charged with fraud tied to bank's failure - Three former executives at First NBC Bank, including its founder and CEO, have been indicted for conspiracy to commit fraud in connection with the New Orleans bank’s failure in April 2017. Ashton Ryan, William Burnell and Robert Brad Calloway were accused of working with borrowers from 2006 to 2017 to defraud the bank, the U.S. Attorney’s Office said in a Friday press release. Ryan was the bank’s president and CEO. Burnell served as chief credit officer, while Calloway was an executive vice president. Ryan resigned from the bank shortly before its failure. The indictment alleges that the bankers “conspired to defraud First NBC Bank by disguising the true financial status of certain borrowers and their troubled loans [and] concealing the true financial condition of the bank from the board, auditors, and examiners.” The release identified the other borrowers, including Gregory St. Angelo, First NBC’s former general counsel, as part of the alleged conspiracy. Each has been charged; three of the individuals, including St. Angelo, have pleaded guilty. Ryan, Burnell and Calloway were accused of “repeatedly” extending loans to borrowers that included false statements and documentation, including statements about the purpose of the loans. Some of the documents inflated the value of borrowers’ collateral, the charges claim. “When the borrowers were unable to pay those loans, Ryan, Burnell and Calloway made new loans to these same borrowers and then used the proceeds from those new loans to pay the existing loans,” the U.S. Attorney’s Office claims. “This created the false impression that the borrowers were able to pay their loans.” The indictment claims that the bankers “received millions of dollars in compensation from the bank during the course of the conspiracy.” Ryan allegedly received personal benefits from three borrower relationships, the release said. When First NBC failed, the borrowers collectively owed $260 million. The Bank’s failure cost the Federal Deposit Insurance Corp.'s Deposit Insurance Fund roughly $1 billion. The indictments “should be a deterrent for others interested in participating in fraudulent schemes that affect our financial system,” Bryan Vorndran, the FBI’s New Orleans special agent in charge, said in the release.
New Jersey bank hit with consent order tied to BSA compliance - Unity Bancorp in Clinton, N.J., has received a consent order requiring its bank to improve compliance with the Bank Secrecy Act and anti-money-laundering laws. The $1.7 billion-asset company disclosed in a regulatory filing Monday that it entered into the agreement with the Federal Deposit Insurance Corp. and the Commissioner of Banking and Insurance for the State of New Jersey on July 8. Unity said the order followed a routine safety and soundness examination that took place in October. The order requires the board to create a compliance committee, enhance its policies and procedures and increase staff training, among other things. The company said the required improvements will cost about $1.8 million, based on quotes from third-party vendors and management’s understanding of the work required.
CFPB launches investigation of Quicken Loans real estate affiliate - Quicken Loans, the nation’s largest mortgage lender, said the Consumer Financial Protection Bureau is investigating its real estate affiliate for potential violations of the Real Estate Settlement Procedures Act. The CFPB issued a civil investigative demand in May to Rocket Homes Real Estate, the lender’s broker fee network, according to paperwork Quicken Loans filed last week in connection with its initial public offering. The lender announced plans earlier this month to go public under the name Rocket Companies Inc. Rocket Homes is a unit of the Detroit company that collects fees by matching consumers with local real estate agents. “In May 2020, the CFPB issued a civil investigative demand to our subsidiary, Rocket Homes, the stated purpose of which is to determine if Rocket Homes conducted any activities in a manner that violated RESPA and to determine if further CFPB action is necessary,” Rocket Companies disclosed in a prospectus filed July 7. “We intend to cooperate fully with the CFPB in this investigation and are confident in the compliance processes that Rocket Homes has in place.” ESPA prohibits illegal kickbacks and referral fees by real estate settlement service providers that can drive up the cost of a home loan. But the 46-year-old law has an exception that allows for payment or compensation for actual goods or servicers, even if a referral is involved. The Detroit company's market share jumped to 9.2% in the first quarter of 2020, up from 1.3% in 2009, according to the filing. In 2018, the CFPB dropped a RESPA investigation into Zillow Group after a district court dismissed claims that the Seattle real estate company allowed real estate agents to make illegal mortgage referrals.
CFPB slaps Chicago mortgage lender with redlining lawsuit - The Consumer Financial Protection Bureau has sued a Chicago-based mortgage lender alleging it engaged in illegal redlining by discouraging prospective Black applicants from applying for home loans. The CFPB announced the complaint Wednesday against Townstone Financial, a small nonbank mortgage lender that marketed its services through an infomercial and podcast called “The Townstone Financial Show.” The complaint alleges that from 2014 through 2017, the company’s CEO and president — not named in the lawsuit — engaged in “unlawful redlining” by making “discouraging statements” that "discouraged prospective applicants living in African-American neighborhoods in the Chicago MSA from applying to Townstone for mortgage loans." The lawsuit raises questions about free speech and whether mortgage lenders can be held accountable for redlining based on remarks made when marketing home loans on talk radio programs. “The co-hosts of the Townstone Financial Show made a number of statements on the show, across multiple episodes, that would discourage African-American prospective applicants from applying to Townstone for mortgage loans, would discourage prospective applicants living in African-American neighborhoods from applying to Townstone for mortgage loans, and would discourage prospective applicants living in other areas from applying to Townstone for mortgage loans for properties in African-American neighborhoods,” the CFPB said in the 19-page lawsuit. The CFPB cited a January 2017 episode of the radio show in which the company’s CEO described a Jewel-Osco grocery store in downtown Chicago as “Jungle Jewel” that was frequented by “people from all over the world” and “a scary place.” In a June 2016 episode of the radio show, the CFPB said, Townstone’s CEO stated that the South Side of Chicago between Friday and Monday is “hoodlum weekend” and that the police are “the only ones between that turning into a real war zone and keeping it where it’s kind of at.” During another radio broadcast, in January 2014, Townstone’s CEO responded to a question from a caller by saying that the caller’s wife is “a woman and she probably doesn’t have good credit because she’s a woman.” The lawsuit alleges that Townstone violated the Consumer Financial Protection Act, the Equal Credit Opportunity Act and Regulation B that prohibit mortgage lenders from discriminating against applicants on the basis of race, color or national origin. The lawsuit was filed in the U.S. District Court for the Northern District of Illinois. The CFPB said that Townstone made no effort to market directly to African Americans, who make up 30% of Chicago's population. Townstone received 2,700 loan applications during the four-year period from 2014 through 2017. But just 37, or 1.4%, came from Black applicants, the bureau said. In a press release, the CFPB said its complaint "is not a finding or ruling that Townstone has violated the law." The CFPB is seeking unspecified damages, redress to consumers and a civil money penalty.
FSOC to look more closely at secondary mortgage market — The Financial Stability Oversight Council is launching a review of the secondary mortgage market as part of the council's recent shift to an activities-based approach to identifying systemic risks. The FSOC — created by the Dodd-Frank Act to monitor the financial system for looming risks and currently chaired by Treasury Secretary Steven Mnuchin — finalized a a new process in December that moved emphasis away from designating "systemically important" nonbanks for tougher regulation. Instead, the council focuses on potentially risky activities in a certain sector across multiple institutions, and if necessary coordinates with FSOC members and other agencies to implement actions to address such risk. The panel still retains authority to designate individual firms as "systemically important financial institutions," which subjects them to bank-like supervision from the Federal Reserve Board. Little detail was provided about the secondary mortgage market review, but it likely includes a focus on Fannie Mae and Freddie Mac. Federal Housing Finance Agency Director Mark Calabria — an FSOC member — has previously called on the council to weigh designating Fannie and Freddie as SIFIs. "I applaud Secretary Mnuchin and the Financial Stability Oversight Council for initiating an activities-based review of the secondary mortgage market," said Calabria in a statement Tuesday. “As demonstrated by the 2008 financial crisis and again by COVID-19, Fannie Mae and Freddie Mac must be well capitalized in order to support the mortgage market during a stressed environment." A SIFI designation comes with enhanced supervision from the Federal Reserve and supplementary regulatory requirements like stress tests and higher capital standards. After it was formed by the Dodd-Frank, the FSOC designated four insurance giants as nonbank SIFIs, but all four have since been de-designated.
MBA Survey: "Share of Mortgage Loans in Forbearance Decreases for Fourth Straight Week to 8.18%" of Portfolio Volume --Note: To put these numbers in perspective, the MBA notes "For the week of March 2, only 0.25% of all loans were in forbearance."From the MBA: Share of Mortgage Loans in Forbearance Decreases for Fourth Straight Week to 8.18% The Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 21 basis points from 8.39% of servicers’ portfolio volume in the prior week to 8.18% as of July 5, 2020. According to MBA’s estimate, 4.1 million homeowners are in forbearance plans....“The share of loans in forbearance continues to decrease, as more workers are brought back from temporary layoffs. However, our survey reveals a notable shift in the location of many FHA and VA loans, which have been bought out of Ginnie Mae pools – predominantly by bank servicers – and moved onto bank balance sheets,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “As a result, there was a sharp drop in the share of Ginnie Mae loans in forbearance, and an offsetting increase in the share of portfolio loans in forbearance. These buyouts enable servicers to stop advancing principal and interest payments, and to work with borrowers in the hope that they can begin paying again before they are re-securitized into Ginnie Mae pools.”Added Fratantoni, “Forty-three percent of loans in forbearance are now in an extension following their initial forbearance term, while more than 10 percent of borrowers entered into a deferral plan to exit forbearance – down from 16 percent the week prior. For those exiting forbearance over the next several months, we expect to see many of the borrowers with GSE loans to utilize the deferral option.” This graph shows the percent of portfolio in forbearance by investor type over time. Most of the increase was in late March and early April. The MBA notes: "Weekly forbearance requests as a percent of servicing portfolio volume (#) increased to 0.13 percent from 0.12 percent the previous week."
Black Knight: Number of Homeowners in COVID-19-Related Forbearance Plans Decline, Lowest Since May - Note: Both Black Knight and the MBA (Mortgage Bankers Association) are putting out weekly estimates of mortgages in forbearance. From Loans in Forbearance Decline for Third Consecutive Week to Lowest Rate Since May at 4.12M: The latest data from the McDash Flash Forbearance Tracker shows that forbearance starts fell by 4% from last week. The number of loans in active forbearance declined for the 3rd consecutive week, falling by 27k from the previous week to 4.12M as of July 14th. An estimated 7.77% of all mortgages are now in active forbearance, down from 7.82% last week, marking the lowest such forbearance rate since peaking in late May. Together, they represent nearly $900 billion in unpaid principal. This week’s decline was driven almost entirely by a decrease in GSE related forbearances, which fell by 35k over the past week. We also observed a 2,000-loan decline in forbearances among portfolio held and private labeled security mortgages. FHA/VA loans saw a slight increase in forbearance volumes of +10k over the past 7 days. CR Note: There will be another disaster relief package soon (aka CARES II), but we might see an increase in forbearance activity if the package isn't available by early August.
PNC sees steep decline in forbearance requests. Will it last- Even as banks continue to set aside billions of dollars for pandemic-related loan losses, they can take some comfort in the fact that fewer and fewer of their borrowers are seeking forbearance on monthly mortgage, car and other consumer loan payments. PNC Financial Services Group said Wednesday that weekly loan modification requests have declined by 97% since mid-April, when much of the country was in lockdown. U.S. Bancorp, meanwhile, said Wednesday that about 70% of its borrowers who skipped a payment or two during the early stages of the coronavirus pandemic have resumed making payments. The surprising health of the consumer is emerging as a theme early in this bank earnings season. On Tuesday, JPMorgan Chase revealed that requests for payment deferrals have declined by about 95% since their April peak, while Citigroup said that clients who were granted forbearance on their debt obligations have continued to meet them. Still, bankers acknowledge that the consumers’ finances have been propped up by loan forbearance and government stimulus efforts and that many loans could fall into delinquency or even default if virus cases continue to surge and economic activity is once again halted. That explains why five of the nation’s seven largest banks — JPMorgan, Citi, Wells Fargo, U.S. Bank and PNC — set aside a combined $32.1 billion for potential loan losses in the quarter that ended June 30. “There’s more we don’t know than we do,” PNC Chairman and CEO William Demchak said Wednesday, echoing comments by JPMorgan Chairman and CEO Jamie Dimon and Citigroup CEO Michael Corbat a day earlier. “It is really unclear what the long-term damage is going to be to the economy and how long it's going to take to grow back,” Demchak added. For now, PNC executives believe that the $459 billion-asset company has adequate reserves to cover future loan losses, and analysts at Keefe, Bruyette & Woods said in a note to clients Wednesday that, based on what it’s seeing in banks’ earnings reports, it believes loan-loss provisions at major banks have likely peaked. “The worst of reserve builds are likely behind us,” KBW said. The $459 billion-asset PNC set aside $2.5 billion for loan losses in the second quarter, more than double the $914 million in the first quarter.
30-Year Mortgage Rate Reaches Lowest Level Ever: 2.98% - WSJ - In a year of financial firsts, this one stands out: Mortgage rates have fallen below the 3% mark. The average rate on a 30-year fixed mortgage fell to 2.98%, mortgage-finance giant Freddie Mac FMCC -1.40% said Thursday, its lowest level in almost 50 years of record keeping. It is the third consecutive week and the seventh time this year that rates on America’s most popular home loan have hit a fresh low. The coronavirus pandemic has upended markets around the world, sending stocks on a wild ride and yields on U.S. government debt to record lows, but its effect on the 30-year mortgage is especially significant. Consider its history: In the early 1980s, it peaked above 18% after the Federal Reserve raised rates to fight runaway inflation. Below 3% is a “tremendous benchmark,” said Jeff Tucker, an economist at Zillow Group Inc. “It’s also an indication that we remain in a crisis here.” The average rate on the 30-year mortgage stood at 3.72% at the beginning of the year and 3.81% a year ago, according to Freddie Mac. Mortgage rates tend to move in the same direction as the yield on the 10-year Treasury note. Yields fall as prices rise when nervous investors buy up safe-haven assets like bonds when the economic forecast is darkening. The spread between the yield on the 10-year Treasury and rate on the 30-year mortgage has narrowed in recent weeks, largely because lenders had spare capacity to process applications after clearing a backlog of refinancings. Still, the larger-than-usual gap means there is room for rates to fall even farther, Mr. Tucker said. Not all mortgage rates have declined at the same pace. Interest rates on jumbo home loans, those too large to sell to Freddie Mac or Fannie Mae, have fallen to around 3.77% from 3.84% at the beginning of the year. From the middle of 2015 to this March, jumbo rates were consistently lower than or equal to the rates on so-called conforming loans, according to Bankrate.com. Earlier this year, some lenders placed new restrictions on these larger loans—in most markets, loans of more than $510,400—after the investors who typically buy them soured on loans without government backing. Low mortgage rates typically boost home sales, but they did little to ease the pandemic’s impact on the housing market this spring. Existing-home sales fell 9.7% in May from the month prior and 17.8% in April, according to the National Association of Realtors. “On the surface, low rates look great,”. “But when you get into the details there are other factors affecting whether people are able to purchase homes.” A home purchase is out of the question for many of the millions of Americans who have lost their jobs in recent months. And fears that recurrent coronavirus outbreaks will lead to a protracted downturn could also keep some with the means to buy from committing to big purchases.
MBA:Mortgage Applications Increase in Latest MBA Weekly Survey -- Mortgage applications increased 5.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 10, 2020. Last week’s results included an adjustment for the Fourth of July holiday.... The Refinance Index increased 12 percent from the previous week and was 107 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 6 percent from one week earlier. The unadjusted Purchase Index increased 5 percent compared with the previous week and was 16 percent higher than the same week one year ago.“Mortgage rates continued their downward trend, with the 30-year fixed rate falling 7 basis points to 3.19 percent – another record low in MBA’s survey and 63 basis points lower than the recent high in late March. The drop in rates led to a jump in refinance activity to the highest level in a month, with refinance loan balances also climbing to a high last seen in March,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Purchase applications fell over the week but remained 15 percent higher than a year ago – the eighth consecutive week of year-over-year increases. Purchase activity remains relatively strong, despite the continued economic uncertainty and high unemployment caused by the ongoing pandemic.”...The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) decreased to 3.19 percent from 3.26 percent, with points decreasing to 0.33 from 0.35 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
NMHC: Rent Payment Tracker Finds Decline in People Paying Rent in July -Without further disaster relief, there will a significant housing and financial issue.From the NMHC: NMHC Rent Payment Tracker Finds 87.6 Percent of Apartment Households Paid Rent as of July 13The National Multifamily Housing Council (NMHC)’s Rent Payment Tracker found 87.6 percent of apartment households made a full or partial rent payment by July 13 in its survey of 11.4 million units of professionally managed apartment units across the country.This is a 2.5-percentage point decrease from the share who paid rent through July 13, 2019 and compares to 89.0 percent that had paid by June 13, 2020. These data encompass a wide variety of market-rate rental properties across the United States, which can vary by size, type and average rental price. “The government support, including unemployment benefits, that has proven so important to so many apartment residents expires at the end of the month,” said Doug Bibby, NMHC President. “Lawmakers need to continue to protect the individuals and families that call an apartment home. If action isn’t taken now we risk making the nation’s housing affordability challenges far worse, rolling back the initial economic recovery and putting tens of millions at risk of greater health and financial distress.”
Eviction Looms for Millions of Americans Who Can’t Afford Rent – WSJ —Millions of Americans who have missed rent payments due to the coronavirus pandemic could be at risk of being evicted in the coming months unless government measures to protect them are extended, economists and housing experts say. Nearly 12 million adults live in households that missed their last rent payment, and 23 million have little or no confidence in their ability to make the next one, according to weekly Census Bureau data. About a third of the country’s renters are protected by an eviction moratorium that covers properties with federally insured mortgages. That expires July 25. Many renters are jobless and depend on supplemental weekly unemployment benefits of $600 that are due to end on July 31.A number of cities and states have broader protections that will remain in place longer. Boston has banned evictions from public housing through the end of the year. Pennsylvania recently extended its moratorium against evictions for nonpayment of rent until Aug. 31. The White House is negotiating with Republicans and Democrats in Congress to pass another round of economic relief during the last week of July. Treasury Secretary Steven Mnuchin has said supplemental jobless benefits have created a disincentive to return to work as the economy starts to reopen and should be reduced. House Democrats voted in May to expand the eviction moratorium to cover all residential dwellings and extend it by a year. The bill included an extension of enhanced jobless benefits and $100 billion in rental assistance. The office of Sen. Mike Crapo (R., Idaho), chairman of the Senate Committee on Banking, Housing and Urban Affairs, declined to comment on any GOP plan to keep people in their homes because negotiations are under way. Paying rent is a struggle for Americans whose jobs evaporated when government-imposed lockdowns closed businesses ranging from barber shops and restaurants to stores and fitness centers. More than 18 million people were receiving unemployment insurance during the last week of June.Should the federal government extend measures to protect renters and support incomes? Why or why not? Join the conversation below.“They all had jobs, and they had economically viable jobs, but we told them they couldn’t work—to protect us—and now we’re going to kick them out of their houses,” said Shamus Roller, executive director of the National Housing Law Project.Depending on the jurisdiction, landlords must give notice if they plan to evict tenants, often 30 days in advance. Housing experts say some landlords are willing to offer flexibility to tenants in financial distress, given the difficulty of f inding new tenants in a downturn, and about 1.5 million adults had their last rent payment deferred, according to census data. But such help isn’t always available.
"Tsunami" Of Evictions Could Make 28 Million Americans Homeless This Summer Alone - With the pandemic continuing to sink its claws into the United States, economic conditions have also failed to improve for millions of people. As a result, nearly one-third U.S. households – representing 32 percent – have still not made their full housing payments for the month of July, according to a survey from online rental platform Apartment List. And with public health experts warning people to continue to “Stay at Home,” the slogan is taking on a perverse new meaning as humanitarian disaster looms for some 28 million people in the U.S. who are facing eviction and homelessness in the immediate future.About 19 percent of those surveyed were unable to make any housing payment in the first week of the month, while 13 percent paid a portion of their rent or mortgage.The numbers represent the grim fact that for four months now, a “historically high” amount of U.S. households have been unable to pay their housing bill, either on time or in full. It also represents an increase from 30 percent in June and 31 percent in June.According to Apartment List, those most likely to miss their payments were younger, low-income, or renters. Other experts warn that Black and Latino families face the highest risk of eviction. They also may be entering the start of a rapid and vicious cycle, the report suggests.“Delayed payments in one month are a strong predictor for missed payments in the next,” Apartment List says. Indeed, 83 percent of households who paid the entirety of their May housing costs in a timely way did the same in June, but only 30 percent of households who were late in May did so in June.As the economic crisis continues to spiral unabated, tens of millions of Americans continue to survive on unemployment while their economic stimulus checks have long been gone.“The economic fallout from the pandemic does not appear on track for the quick V-shaped recovery that many had originally hoped for,” Apartment List notes. And with unemployment benefits expiring while eviction bans and moratoriums that deferred rent payments are being lifted by local governments, experts and advocates are warning that we could see a tsunami of mass evictions across the country that exceeds anything ever seen.
Millennial Renters Abandon Their Plans To Buy A Home - Many renters who were in the market to buy a home pre-Covid just threw in the towel. A lifestyle survey shows millennials top the list of those canceling home-buying plans.At the start of 2020, 11% of renters said they were ready and planning to buy a home this year, according to a recent survey conducted on RENTCafe.com. Conditions were looking up for Gen X renters, 15% of whom were making plans to buy a home this year, as well as for 14% of Older Millennials. However, the pandemic has obstructed the path to homeownership for 43% of renters ready to buy, our survey results revealedThe survey, which ran at the end of May 2020, asked 7,000 renters about their housing plans before and after the coronavirus hit. One in Ten Renters Were Ready to Buy a Home: 43% of prospective home buyers who said they changed their plans quoted economic uncertainty as the top reason for doing so, followed by loss of income as the second most cited reason. Given the unprecedented times we’re living in, even the few renters who were determined to make the commitment to buy a home this year are now getting cold feet. Moreover, as many as 50% of Older Millennials, the most likely demographic to become homeowners, were forced by the pandemic to let go of their dream.
Housing Starts increased to 1.186 Million Annual Rate in June From the Census Bureau: Permits, Starts and Completions- Privately-owned housing starts in June were at a seasonally adjusted annual rate of 1,186,000. This is 17.3 percent above the revised May estimate of 1,011,000, but is 4.0 percent below the June 2019 rate of 1,235,000. Single-family housing starts in June were at a rate of 831,000; this is 17.2 percent above the revised May figure of 709,000. The June rate for units in buildings with five units or more was 350,000. Privately-owned housing units authorized by building permits in June were at a seasonally adjusted annual rate of 1,241,000. This is 2.1 percent above the revised May rate of 1,216,000, but is 2.5 percent below the June 2019 rate of 1,273,000. Single-family authorizations in June were at a rate of 834,000; this is 11.8 percent above the revised May figure of 746,000. Authorizations of units in buildings with five units or more were at a rate of 368,000 in June. The first graph shows single and multi-family housing starts for the last several years.Multi-family starts (red, 2+ units) were up in June compared to May. Multi-family starts were down 4.1% year-over-year in June. Single-family starts (blue) increased in June, and were down 3.9% year-over-year. The second graph shows total and single unit starts since 1968.The second graph shows the huge collapse following the housing bubble, and then eventual recovery (but still historically low).Total housing starts in June were at expectations, and starts in May were revised up. Residential construction is considered an essential business, and held up better than some other sectors of the economy, but was still negatively impacted by COVID-19.
Comments on June Housing Starts - As expected, housing starts bounced back in June. Earlier: Housing Starts increased to 1.186 Million Annual Rate in June. Total housing starts in June were at expectations, and revisions to prior months were positive. Low mortgage rates and limited existing home inventory is giving a boost to housing starts. The housing starts report showed starts were up 17.3% in June compared to May, and starts were down 4.0% year-over-year compared to June 2019. Single family starts were down 3.9% year-over-year. This first graph shows the month to month comparison for total starts between 2019 (blue) and 2020 (red). Starts were down 4.0% in June compared to June 2019. Last year, in 2019, starts picked up in the 2nd half of the year, so the comparisons were easy early in the year. Starts, year-to-date, are still up 0.7% compared to the same period in 2019.Below is an update to the graph comparing multi-family starts and completions. Since it usually takes over a year on average to complete a multi-family project, there is a lag between multi-family starts and completions. Completions are important because that is new supply added to the market, and starts are important because that is future new supply (units under construction is also important for employment).These graphs use a 12 month rolling total for NSA starts and completions. The blue line is for multifamily starts and the red line is for multifamily completions. The rolling 12 month total for starts (blue line) increased steadily for several years following the great recession - then mostly moved sideways. Completions (red line) had lagged behind - then completions caught up with starts- although starts picked up a little again lately. The second graph shows single family starts and completions. It usually only takes about 6 months between starting a single family home and completion - so the lines are much closer. The blue line is for single family starts and the red line is for single family completions. Note the relatively low level of single family starts and completions. The "wide bottom" was what I was forecasting following the recession, and now I expect some further increases in single family starts and completions once the crisis abates.
NAHB: Builder Confidence Increased to 72 in July -- The National Association of Home Builders (NAHB) reported the housing market index (HMI) was at 72, up from 58 in June. Any number above 50 indicates that more builders view sales conditions as good than poor. From NAHB: Builder Confidence Rallies to Pre-Pandemic Level in July In a strong signal that the housing market is ready to lead a post-COVID economic recovery, builder confidence in the market for newly-built single-family homes jumped 14 points to 72 in July, according to the latest NAHB/Wells Fargo Housing Market Index (HMI) released today. The HMI now stands at the solid pre-pandemic reading in March before the outbreak affected much of the nation.“Builders are seeing strong traffic and lots of interest in new construction as existing home inventory remains lean,” said NAHB Chairman Chuck Fowke. “Moreover, builders in the Northeast and the Midwest are benefiting from demand that was sidelined during lockdowns in the spring. Low interest rates are also fueling demand, and we expect housing to lead an overall economic recovery.”“While the housing market is clearly rebounding, challenges exist,” said NAHB Chief Economist Robert Dietz. “Lumber prices are at a two-year high and builders are reporting rising costs for other building materials while lot and skilled labor availability issues persist. Nonetheless, the important story of the changing geography of housing demand is benefiting new construction. New home demand is improving in lower density markets, including small metro areas, rural markets and large metro exurbs, as people seek out larger homes and anticipate more flexibility for telework in the years ahead. Flight to the suburbs is real.”
Leading Index for Commercial Real Estate Decreased Further in June -- From Dodge Data Analytics: Dodge Momentum Index Loses Ground in June:The Dodge Momentum Index dropped 6.6% in June to 121.5 (2000=100) from the revised May reading of 130.1. The Momentum Index, issued by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. The institutional component of the Momentum Index fell 11.7% while the commercial component declined by 3.5%. The Momentum Index has shifted noticeably lower as the fallout from recession continues to hold its grip on the construction sector. The overall Momentum Index fell 13% in the second quarter from the first three months of the year, with the commercial component 14% lower and the institutional component down 11%. While the recession has ended and recovery underway, the return from one of the steepest downturns in U.S. history will be slow and fraught with risk. This holds true for the construction sector as well. While projects continue to enter planning, the slower pace suggests that recovery in the construction sector will be modest in coming months. This graph shows the Dodge Momentum Index since 2002. The index was at 121.5 in June, down from 130.1 in May. According to Dodge, this index leads "construction spending for nonresidential buildings by a full year". This suggests a decline in Commercial Real Estate construction in 2020 and early 2021.
Hotels: Occupancy Rate Declined 38% Year-over-year From HotelNewsNow.com: STR: US hotel results for week ending 11 July: U.S. hotel performance data for the week ending 11 July showed mostly flat occupancy and lower room rates from the previous week, according to STR.5-11 July 2020 (percentage change from comparable week in 2019):
• Occupancy: 45.9% (-38.0%)
• Average daily rate (ADR): US$97.33 (-26.8%)
• Revenue per available room (RevPAR): US$44.67 (-54.6%)
The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average. The occupancy rate for the last four weeks was 43.9%, 46.2%, 45.6% and 45.9%. Flattening out well below the median for this week of 75%. The red line is for 2020, dash light blue is 2019, blue is the median, and black is for 2009 (the worst year probably since the Great Depression for hotels). Usually hotel occupancy starts to pick up seasonally in early June. So some of the recent pickup might be seasonal (summer travel). Note that summer occupancy usually peaks at the end of July or in early August.According to STR, the improvement appears related mostly to leisure travel as opposed to business travel.
More than 5,100 stores are closing in 2020 as the retail apocalypse drags on. Here's the full list. -Retailers are expected to close more than 5,500 stores this year, following record-high rates of closings last year.More than 9,300 store closings were announced in the US in 2019, smashing the previous record of roughly 8,000 store closures in 2017, according to an analysis by Business Insider.The number of store closings this year could be even higher than previous records, according to estimates from the real estate firm Cushman & Wakefield. The firm estimated last year — prior to the coronavirus pandemic — that as many as 12,000 major chain stores could close in 2020. The pandemic is now putting even more stores in danger of closing, as retailers grapple with dramatic drops in sales in traffic.Retail companies have so far confirmed at least 5,500 stores slated for closure in 2020, according to a Business Insider analysis. Here's a list of the stores expected to close this year.
Retail Sales increased 7.5% in June --On a monthly basis, retail sales increased 7.5 percent from May to June (seasonally adjusted), and sales were up 1.1 percent from June 2019. From the Census Bureau report: Advance estimates of U.S. retail and food services sales for June 2020, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $524.3 billion, an increase of 7.5 percent from the previous month, and 1.1 percent above June 2019. Total sales for the April 2020 through June 2020 period were down 8.1 percent from the same period a year ago. The April 2020 to May 2020 percent change was revised from up 17.7 percent to up 18.2 percent. This graph shows retail sales since 1992. This is monthly retail sales and food service, seasonally adjusted (total and ex-gasoline).Retail sales ex-gasoline were up 7.0% in June. The second graph shows the year-over-year change in retail sales and food service (ex-gasoline) since 1993. Retail and Food service sales, ex-gasoline, increased by 2.7% on a YoY basis.The increase in June was above expectations, and sales in April and May were revised up.
Consumer Appetite for Cars, Homes Bolsters U.S. Economy – WSJ - Consumers have continued spending on big-ticket items such as vehicles and homes during the coronavirus pandemic, helping support the U.S. economy as it battles a surge in cases and renewed business shutdowns. Historically low interest rates are luring in auto and home buyers, many of whom have higher incomes and firmer job security than low-wage, service-sector workers hardest-hit during the recession, economists and industry experts say. “Looking at the car sales, looking at the retail activity, looking at the housing data, it has been pointing to a really bigger recovery story,” said James Knightley, an economist at ING Groep NV. “If you’ve got a job and feel pretty secure and you see your equity holdings rise in value, you’re probably still feeling pretty good.” Mr. Knightley said the big-ticket purchases could weaken if the rise in coronavirus infections and dialed-back state reopenings significantly dampen employment and consumers’ ability to spend. Incomes also could take a hit if the federal government doesn’t continue providing expanded unemployment benefits to the millions of people still out of work because of the crisis, he added. Analysts and economists are paying close attention to monthly retail sales numbers as a way to gauge how the economy may be recovering from the impact of the coronavirus pandemic. Photo: Kathy Willens/Associated Press. Congress is debating whether to extend an extra $600 a week in unemployment benefits provided by the federal stimulus enacted in the spring. The aid is scheduled to expire at the end of July. Solid spending on durable goods—typically more expensive products designed to last more than three years—differs from previous downturns, when consumers sharply pulled back on these larger purchases while continuing to spend at service-sector businesses, according to findings from a Harvard-based nonprofit research group. Spending on long-lasting, durable goods accounts for about 7% of gross domestic product. Outlays at service-sector businesses comprise a much larger share of economic output and were the hardest-hit businesses by the pandemic. Growth in services will need to rise much more for the U.S. to achieve a full economic recovery. In May, consumers increased their spending on services by 5.4%. A Commerce Department report due out Thursday on retail spending, which covers spending on autos but not houses, is expected to show a June increase of 5.2%, according to a Wall Street Journal survey of economists.
Unemployed Americans Spent More With $600 Weekly Boost Than Before Pandemic; That's About To Go Away - At the end of this month, millions of unemployed Americans are set to lose their $600-per-week federal unemployment boost on top of their standard benefit. The program, part of the CARES Act, constituted a good portion of the $108.5 billion the US Treasury paid towards unemployment benefits in June. And according to a new study released Thursday, Americans who received enhanced unemployment benefits spent roughly 10% more than when they were working, according to Reuters. This of course makes sense, as some 63% of jobless workers making more on unemployment than when they were working.Researchers analyzed transactions for 61,000 households that received unemployment benefits between March and May. Spending dropped for all households as the virus spread and led to business shutdowns, but then rose when households began receiving jobless benefits, the study found.That contrasts with a typical recession, when households receiving unemployment benefits usually cut spending by 7% because regular jobless benefits amount to only a fraction of a person’s prior earnings, the research found. –Reuters "Some folks are getting unemployment benefits that are larger than what they were getting paid [at] their previous jobs. That really potentially creates some wealth disincentive effects," said Harvard Economics professor Raj Chetty earlier this month at an event sponsored by the left-leaning Center on Budget and Policy Priorities.
Kroger Stops Giving Customers Change As Nationwide Coin Shortage Worsens - Due to an ongoing, and in some respect, a worsening nationwide coin shortage, The Kroger Company has stopped returning coins to cash-paying customers. At the same time, remainders can be donated to a charity or transferred to the customers' loyalty cards, reported NewsChannel 5 Nashville WTVF. Kroger officials said, "at Kroger, we are implementing several creative solutions to minimize the impact to our customers...We know this is an inconvenience for our customers, and we appreciate their patience. The Treasury Department expects the shortage to diminish as more regions of the country reopen." Dayton Daily News, a sister publication of The Atlanta Journal-Constitution, spoke with Kroger spokeswoman Erin Rolfes who said the Federal Reserve is experiencing a coin shortage. Last month, the Federal Reserve warned coin disruptions were coming due to the COVID-19 pandemic and shutdown of the economy. Here's an excerpt of the warning: "The COVID-19 pandemic has significantly disrupted the supply chain and normal circulation patterns for U.S. coin."In the past few months, coin deposits from depository institutions to the Federal Reserve have declined significantly, and the U.S. Mint's production of the coin also decreased due to measures put in place to protect its employees."
BLS: CPI increased 0.6% in June, Core CPI increased 0.2% - From the BLS:The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6 percent in June on a seasonally adjusted basis after falling 0.1 percent in May, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 0.6 percent before seasonal adjustment.The gasoline index rose sharply in June after recent declines and accounted for over half of the monthly increase in the seasonally adjusted all items index. The energy index increased 5.1 percent in June as the gasoline index rose 12.3 percent. The food index also rose in June, increasing 0.6 percent as the index for food at home continued to rise.The index for all items less food and energy rose 0.2 percent in June, its first monthly increase since February. The index for motor vehicle insurance increased sharply in June after recent declines. The indexes for apparel, shelter, and medical care also increased in June, while the indexes for used cars and trucks, recreation, and communication all declined.The all items index increased 0.6 percent for the 12 months ending June; this compares to a 0.1-percent increase for the 12 months ending May. The index for all items less food and energy increased 1.2 percent over the last 12 months. The food index increased 4.5 percent over the last 12 months, with the index for food at home rising 5.6 percent. Despite increasing in June, the energy index fell 12.6 percent over the last 12 months. Overall inflation was at expectations in June. I'll post a graph later today after the Cleveland Fed releases the median and trimmed-mean CPI.
U.S. June Consumer Prices Rose Sharply as Reopenings Prompted More Buying – WSJ —U.S. consumer prices rose sharply in June while states were broadening efforts to reopen, with costs snapping back for products and services that were hit hard by the coronavirus pandemic. The consumer-price index—which measures what Americans pay for everyday items including groceries, clothing and shelter—rose 0.6% in June, the Labor Department said Tuesday. The index had fallen in each of the previous three months, with particularly sharp declines during the earlier part of the pandemic in March and April. “June represented the beginning of a return to normal for prices, as most of the categories that had been depressed by the COVID lockdowns rebounded once the economy started to recover in earnest,” said Stephen Stanley, chief economist at Amherst Pierpont, in a note to clients, referring to the illness caused by the coronavirus. The longer trend showed inflationary pressures remained modest. Prices overall rose 0.6% in June from the same month in 2019, compared with a 0.1% year-over-year increase in May. So-called core prices, which exclude the often-volatile categories of food and energy, increased 1.2% over the year, unchanged from the increase the previous month. Apparel prices increased 1.7% in June, after three previous months of steep declines, as bricks-and-mortar retail stores reopened. Prices for medical-care services, airline fares and hotel stays all rose sharply over the month, reflecting greater activity in doctors’ offices and in the hard-hit travel and hospitality sectors. Gasoline prices, which rose 12.3% last month, also drove the gains and accounted for more than half of the monthly increase in overall prices, according to the Labor Department. Core prices rose 0.2% in June, compared with a 0.1% decline in May. Tuesday’s report also showed another strong increase in grocery prices, albeit at a lower level than in the previous two months. The cost of groceries rose 0.7% last month, after a 2.6% and 1% monthly rise in April and May, respectively. Grocery stores have seen strong demand, as consumers stayed home and restaurants limited capacity or closed in response to the pandemic. Prices for dining out also rose in June, by 0.5%, the biggest monthly gain so far in 2020. Gus Faucher, chief economist at PNC Financial Services, said the gain in overall prices last month should ease deflation fears stoked by a steep drop-off in consumer demand as the pandemic’s effects first rippled through the U.S. economy. Deflation is “one less thing to worry about and it’s indicative of the fact that demand has picked up and businesses have the ability to raise prices a little bit,” Mr. Faucher said. Still, the outlook for prices and the broader economic recovery is clouded by a recent jump in coronavirus cases, which has caused some states to reimplement restrictions. California, for instance, on Monday banned indoor activities at restaurants, bars, museums and movie theaters. “Obviously, if we see more widespread closures, that’s going to reduce demand for goods and services throughout the economy and that could lead to a return in price declines,” Mr. Faucher said, adding downward pressure on prices was likely to be isolated to specific industries and geographic areas.
Cleveland Fed: Key Measures Show Inflation Soft Year-over-year in June --The Cleveland Fed released the median CPI and the trimmed-mean CPI this morning: According to the Federal Reserve Bank of Cleveland, the median Consumer Price Index rose 0.1% June. The 16% trimmed-mean Consumer Price Index rose 0.2% in June. "The median CPI and 16% trimmed-mean CPI are measures of core inflation calculated by the Federal Reserve Bank of Cleveland based on data released in the Bureau of Labor Statistics’ (BLS) monthly CPI report". Note: The Cleveland Fed released the median CPI details for June here. Motor fuel increased at a 290% annualized rate in June!This graph shows the year-over-year change for these four key measures of inflation. On a year-over-year basis, the median CPI rose 2.6%, the trimmed-mean CPI rose 2.3%, and the CPI less food and energy rose 1.2%. Core PCE is for May and increased 1.0% year-over-year. Inflation will not be a concern during the crisis.
First Look at 2021 Cost-Of-Living Adjustments and Maximum Contribution Base --The BLS reported this morning: The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.5 percent over the last 12 months to an index level of 251.054 (1982-84=100). For the month, the index rose 0.6 percent prior to seasonal adjustment. CPI-W is the index that is used to calculate the Cost-Of-Living Adjustments (COLA). The calculation dates have changed over time (see Cost-of-Living Adjustments), but the current calculation uses the average CPI-W for the three months in Q3 (July, August, September) and compares to the average for the highest previous average of Q3 months. Note: this is not the headline CPI-U, and is not seasonally adjusted (NSA). In 2019, the Q3 average of CPI-W was 250.200. The 2019 Q3 average was the highest Q3 average, so we only have to compare Q3 this year to last year.This graph shows CPI-W since January 2000. The red lines are the Q3 average of CPI-W for each year.Note: The year labeled for the calculation, and the adjustment is effective for December of that year (received by beneficiaries in January of the following year). CPI-W was up 0.5% year-over-year in June, and although this is very early - we need the data for July, August and September - my current guess is COLA will probably be under 1% this year, the smallest increase since 2016.The contribution base will be adjusted using the National Average Wage Index. This is based on a one year lag. The National Average Wage Index is not available for 2019 yet, but wages probably increased again in 2019. If wages increased the same as in 2018, then the contribution base next year will increase to around $142,700 in 2020, from the current $137,700.The law - as currently written - prohibits an increase in the contribution and benefit base if COLA is not greater than zero (this is possible this year). However if the there is even a small increase in CPI-W, the contribution base will be adjusted using the National Average Wage Index. Remember - this is an early look. What matters is average CPI-W for all three months in Q3 (July, August and September).
A Pandemic and Surging Summer Heat Leave Thousands Struggling to Pay Utility Bills - Leticia Garcia cleans schools for a living and, with her hours sharply reduced, found herself at home with her two daughters. She cut their cell phone service to keep the water, gas and electricity on. "It's a lot when your hours are reduced, but there are certain things you just can't cut back on," she said through a translator about her utility expenses. Garcia is among thousands of people across the country struggling to pay rising and accumulating utility bills as they deal with the ongoing economic fallout of Covid-19 during a summer forecast to be hotter than usual in much of the country. This week meteorologists are predicting temperatures over 100 degrees and widespread dry conditions for the middle of the country that could last into August. A blanket of heat is expected to stretch from California to parts of the Northeast that could ramp up electricity demand and strain the grid. It is a situation that energy policy experts fear will become increasingly common. Rising temperatures and extreme weather due to climate change are predicted to exacerbate energy insecurity and further the need for expanding energy assistance programs. The coronavirus will likely compound both discomfort and financial distress during the heatwave, as many public places where people typically seek air conditioning are closed to prevent the spread of the virus. Even in states that have imposed moratoriums on utility shut-offs during the pandemic, advocates fear the coronavirus could heighten energy insecurity. With pauses on utility shut-offs beginning to lapse in some states, advocates have begun calling for longer-term consumer protections. "We are seeing an unprecedented number of people asking for help," said Denise Stepto, chief communications officer at Energy Outreach Colorado, a Denver-based nonprofit that helps residents afford their home energy. "It's also a big issue for people who have recently fallen into unemployment, because they don't know how to navigate this situation."
Study Finds Up to 10% Permanent Drop in US Miles Driven -- Working from home and online shopping have become the new normal and that will reduce driving in the U.S. by up to 270 billion miles a year, according to new study. The research conducted by consultant KPMG International finds the cocoon culture Covid-19 has created is not going away -- even if a vaccine is made widely available -- and that will have potentially dire consequences for the auto industry. For starters, the decline in commuting will remove 14 million cars from U.S. roads, KPMG forecasts. During the height of the pandemic in April, Americans sheltering at home drove 64% fewer miles, an unprecedented decline in travel. Those new habits will die hard, with KPMG predicting as much as a 10% permanent reduction in the nearly 3 trillion miles typically traveled every year and vehicle ownership declining to slightly less than two-cars per household. “People buy a car to get to and from work and because shopping is a very important part of their lives,” Gary Silberg, head of KPMG’s global automotive practice, said in an interview. “If two of the primary missions that the American public buys a car for are going to reduce in demand, we know that’s going to have an adverse impact on auto sales. It’s just like gravity.” The change in habits could result in roughly 1 million fewer sales of new cars and trucks annually, Silberg said. Americans have purchased more than 17 million cars, sport-utility vehicles and light trucks annually for the last five years. The National Automobile Dealers Association expects U.S. auto sales to plunge as low as 13 million this year due to the pandemic’s chill on the economy. As the industry works its way out of the hole created by the shutdown, the potential loss of 1 million sales a year will loom large. “People will fight very seriously for a million vehicles, especially if sales drop,” Silberg said. With fewer miles driven and fewer cars on the road, that also means dealers and mechanics will have less money coming in from repairs and other after-market services aimed at keeping cars running. “This is terrible news for the after-market, where a lot of profits are being made,” Silberg said. “Fewer cars driving fewer miles means less wear and tear. These will lead to profound changes.” The upside of these changes is that the market for delivery vehicles is booming thanks to the surge in online shopping. Automakers are already capitalizing on that shift, with Ford Motor Co. and Volkswagen AG joining forces to develop commercial, self-driving and electric vehicles, including delivery vans. Startups such as electric-truck maker Rivian Automotive also are getting in the growing commercial market, with a contract to provide 100,000 delivery vehicles to Amazon Inc.
U.S. Industrial Production Picked Up Again in June – WSJ -U.S. manufacturing increased in June for the second straight month, a sign of economic recovery in the weeks before the recent surge in coronavirus cases. Industrial production—a measure of output at factories, mines and utilities—rose a seasonally adjusted 5.4% in June from May, the Federal Reserve said Wednesday. That was a bigger increase than the 4% rise anticipated by economists surveyed by The Wall Street Journal. The index for May was unrevised at 1.4% while the index for April was revised down to a 12.7% drop from a 12.5% drop. As U.S. factories reopened in May and June, they helped drive a recovery from April’s record decline. Still, despite the recent gains, the index for the second quarter as a whole fell at an annual rate of 42.6%, the largest quarterly decrease since World War II. A separate Fed report said economic activity increased this summer, but remained well below levels seen before the pandemic. The Fed’s beige book, which compiles business anecdotes from around the country, said employers increased hiring across the country as many businesses reopened. Still, many companies reported new layoffs and said it was difficult to rehire workers given health and safety concerns, child-care needs and expanded unemployment benefits that exceed normal pay for some workers. Some businesses were concerned the pace of recovery wouldn’t continue if the coronavirus wasn’t contained. In the Cleveland Fed district, more firms cut worker pay, particularly for higher-salaried employees, than in the last beige book’s reporting window. The pace of economic recovery in St. Louis had slowed since mid-June. “One staffing contact reported small firms were ‘decimated,’ estimating that 5% of their small clients had filed for bankruptcy and expecting up to 25% to do so by the end of the year,” the report said
Industrial Production Increased 5.4 Percent in June; Still 10.8% Below Pre-Crisis Level --From the Fed: Industrial Production and Capacity Utilization Total industrial production rose 5.4 percent in June after increasing 1.4 percent in May; even so, it remained 10.9 percent below its pre-pandemic February level. For the second quarter as a whole, the index fell 42.6 percent at an annual rate, its largest quarterly decrease since the industrial sector retrenched after World War II. Manufacturing output climbed 7.2 percent in June, as all major industries posted increases. The largest gain—105.0 percent—was registered by motor vehicles and parts, while factory production elsewhere rose 3.9 percent. Mining production fell 2.9 percent, and the output of utilities increased 4.2 percent. At 97.5 percent of its 2012 average, the level of total industrial production was 10.8 percent lower in June than it was a year earlier. Capacity utilization for the industrial sector increased 3.5 percentage points to 68.6 percent in June, a rate that is 11.2 percentage points below its long-run (1972–2019) average but 1.9 percentage points above its trough during the Great Recession. . This graph shows Capacity Utilization. This series is up slightly from the record low set last month, and still below the trough of the Great Recession (the series starts in 1967). Capacity utilization at 68.6% is 11.2% below the average from 1972 to 2017. Note: y-axis doesn't start at zero to better show the change. Industrial ProductionThe second graph shows industrial production since 1967. Industrial production increased in June to 97.5. This is 10.8% below the February 2020 level. The change in industrial production was slightly above consensus expectations.
NY Fed: Manufacturing "Business activity increased in New York State" in July - From the NY Fed: Empire State Manufacturing Survey:mBusiness activity increased in New York State for the first time in several months, according to firms responding to the July 2020 Empire State Manufacturing Survey. The headline general business conditions index rose to 17.2, its first positive reading since February. New orders and shipments also increased, and unfilled orders were steady....The index for number of employees edged up to 0.4, signaling that employment levels were steady. Notably, 22 percent of firms said that employment levels increased in July, the same proportion that reported a decrease. The average workweek index increased nine points to -2.6, pointing to a small decline in hours worked.This was above expectations, and showed activity increased from a low level in July.
Philly Fed Manufacturing "continued to expand" in July - Note: Be careful with diffusion indexes. This shows a rebound off the bottom - some improvement from May to June to July - but doesn't show the level of activity. From the Philly Fed: July 2020 Manufacturing Business Outlook Survey Manufacturing activity in the region continued to expand this month, according to firms responding to the July Manufacturing Business Outlook Survey. The survey’s current indicators for general activity, new orders, and shipments showed positive readings for the second consecutive month, coinciding with the phased reopening of the economy in our region. The employment index reached positive territory for the first time since March. Although future indicators for general activity, new orders, and shipments declined from last month’s readings, the indexes remained elevated, suggesting that the firms expect overall growth over the next six months. The diffusion index for current activity edged down 3 points to 24.1 in July, its second consecutive positive reading after reaching long-term lows in the spring … The firms reported increases in manufacturing employment overall for the first time since March, as the current employment index rose 24 points to 20.1 this month, its highest reading since October. This was above the consensus forecast. Here is a graph comparing the regional Fed surveys and the ISM manufacturing index:
Cargo Declines at Port of Long Beach in June -The COVID-19 pandemic continued to drive down demand for goods in the second quarter of 2020, leading to an increase in canceled sailings and a decline in cargo containers shipped through the Port of Long Beach in June.Dockworkers and terminal operators moved 602,180 twenty-foot equivalent units (TEUs) last month, an 11.1% decline compared to June 2019. Imports shrank 9.3% to 300,714 TEUs and exports dropped 12.2% to 117,538 TEUs. Empty containers shipped overseas to Asia were down 13.1% to 183,928 TEUs.Economic uncertainty brought by decreased consumer spending and ongoing health concerns amid the COVID-19 epidemic contributed to a drop during the first half of 2020, with cargo shipments at 3,433,035 TEUs, 6.9% less than the same period last year.“Canceled sailings continued to rise at a rapid rate in the second quarter as ocean carriers adjusted their voyages to a decline in demand for imports during the national COVID-19 outbreak,” said Mario Cordero, Executive Director of the Port of Long Beach. “The economic challenges may persist for some time, but the Port of Long Beach continues to invest in infrastructure projects that will meet the needs of our customers.” The San Pedro Bay ports complex – Long Beach and L.A. combined – had 41 canceled sailings in the first half of 2019. This year it was 104 – 37 of which were destined for the Port of Long Beach.
LA area Port Traffic Down Year-over-year in June --Container traffic gives us an idea about the volume of goods being exported and imported - and usually some hints about the trade report since LA area ports handle about 40% of the nation's container port traffic.The following graphs are for inbound and outbound traffic at the ports of Los Angeles and Long Beach in TEUs (TEUs: 20-foot equivalent units or 20-foot-long cargo container).To remove the strong seasonal component for inbound traffic, the first graph shows the rolling 12 month average. On a rolling 12 month basis, inbound traffic was down 0.7% in June compared to the rolling 12 months ending in May. Outbound traffic was down 1.5% compared to the rolling 12 months ending the previous month.The 2nd graph is the monthly data (with a strong seasonal pattern for imports). Usually imports peak in the July to October period as retailers import goods for the Christmas holiday, and then decline sharply and bottom in February or March depending on the timing of the Chinese New Year (January 25th in 2020). Because of the timing of the New Year, we would have expected traffic to decline in February without an impact from COVID-19, but bounce back in March and April. Imports were down 8% YoY in June, and exports were down 17% YoY. In general imports both imports and exports have turned down recently YoY.
Bar Harbor Closes its Port to Cruise Ships for 2020 - The town council for Bar Harbor, Maine has decided to ban further cruise ship calls through the end of 2020 due to the continued risk of COVID-19, extending a local moratorium that expired July 1. Large cruise operators have already shut down North American cruising through mid-September, so the order will have no effect on mega-vessels. However, one small-ship company - American Cruise Lines - had proposed to restart its operations and call in Bar Harbor beginning in July. American's vessels are small enough that they are not covered by the U.S. Centers for Disease Control "no sail" order on large cruise ships, and the line has been hoping to restart its operations in New England. In a council meeting Tuesday night, the town's leaders conveyed residents' concerns about the resumption of cruise ship arrivals, and some suggested that the port calls could hurt public perception of Bar Harbor's overall COVID-19 safety. “I don’t think the risk is worth the reward,” said Bar Harbor Councilor Matt Hochman, speaking to the Bangor Daily News. “I don’t think 2020 is the year for it.” American Cruise Lines' success in carrying out a summer restart has been limited in other markets: it has suspended scheduled river cruises on the Mississippi for the month of July, and its Columbia River sailings have been deferred due to state-level restrictions. On Tuesday, American Cruise Lines also canceled its 2020 season in Southeast Alaska “because the recent spike in [coronavirus] cases around the country has renewed concerns and poses potential complications." Town councils in the destination ports of Haines and Skagway previously voted against accepting a port call for the firm's first Alaska sailing of the year. Likewise, the Alaska Municipal League - the association representing Alaska's local governments - had recommended “a moratorium on small ship cruising until mutually agreed-upon protocols can be finalized between the industry and the communities.”
American Airlines warns 25,000 employees of potential job cuts amid pandemic - American Airlines warned employees on Wednesday that it could slash up to 25,000 jobs in the fall as the airline industry continues its financial tailspin amid the coronavirus pandemic. Under the CARES Act, U.S. airline companies received significant financial aid so that they could meet their payroll obligations through the summer. As a result, airlines are prohibited from firing or laying off any of their employees through the end of September. However, in its memo to employees, American Airlines signaled that cuts could begin Oct. 1. "Today, we will begin issuing Worker Adjustment and Retraining Notification (WARN) letters to our unions and represented team members in some states," CEO Doug Parker and President Robert Isom wrote. "We hate taking this step, as we know the impact it has on our hardworking team members. From the time the CARES Act was signed in March, we had a stated goal of avoiding furloughs because we believed demand for air travel would steadily rebound by Oct. 1 as the impact of COVID-19 dissipated. That unfortunately has not been the case." They added: "Our passenger revenues in June, while we believe are better than others in the industry, were more than 80% lower than June 2019. And with infection rates increasing and several states reestablishing quarantine restrictions, demand for air travel is slowing again." In an effort to limit the number of furloughs that will take place come October, the pair of executives said that the company was introducing "enhanced leave and early-out programs." Parker and Isom also noted proposed legislation in Congress that would extend the Payroll Support Program an additional six months. "As currently proposed, the effect of this legislation would be to delay any involuntary furloughs until March 31, 2021, at which point there would most certainly be more demand for air travel, and along with that demand, much less need for involuntary furloughs throughout the industry," they explained. The memo also provided a breakdown of how different sub-sects of employees would be affected; the company's flight attendants received the most WARN notices at 9,950 — 37 percent of the company's flight attendants.
Weekly Initial Unemployment Claims decrease to 1,300,000 -- The DOL reported: In the week ending July 11, the advance figure for seasonally adjusted initial claims was 1,300,000, a decrease of 10,000 from the previous week's revised level. The previous week's level was revised down by 4,000 from 1,314,000 to 1,310,000. The 4-week moving average was 1,375,000, a decrease of 60,000 from the previous week's revised average. The previous week's average was revised down by 2,250 from 1,437,250 to 1,435,000. The previous week was revised down. This does not include the 928,488 initial claims for Pandemic Unemployment Assistance (PUA).The following graph shows the 4-week moving average of weekly claims since 1971.
Comments on Weekly Unemployment Claims – Bill McBride - On a monthly basis, most analysts focus on initial unemployment claims for the BLS reference week of the employment report. For July, the BLS reference week will be July 12th through the 18th, and initial claims for that week will be released next week, on Thursday, July 23rd. Note that a couple of states have not released Pandemic Unemployment Assistance (PUA) claims this week, so the number of PUA claims is too low. However, there may also be processing delays that are impacting the numbers.Note: The seasonal adjustment is likely off this year due to the pandemic. If we look at initial claims Not Seasonally Adjusted (NSA), claims increased sharply this week to 1,503,892 from 1,395,081 the previous week. That could be more representative of what is actually happening. However, continued claims are down 7.6 million from the peak, suggesting a large number of people have returned to their jobs (as the employment report showed). The following graph shows regular initial unemployment claims (blue) and PUA claims (red) since early February. This was the 17th consecutive week with extraordinarily high initial claims. It is possible that we are starting to see some layoffs associated with the end of some early Payroll Protection Plan (PPP) participants. We should start seeing layoffs associated with the rising COVID cases and hospitalization in some states (like Arizona, California, Florida and Texas). With bar and restaurant closings in some areas, we will probably see more initial claims in those states this week, and that will show up in the report in the coming weeks. Note that these states don't have to lockdown to see a decline in economic activity. As Merrill Lynch economists noted: "Most of the slowdown occurred due to voluntary social distancing rather than lockdown policies."
BLS: June Unemployment rates down in 42 states; 3 States at New Record Highs --From the BLS: Regional and State Employment and Unemployment Summary: Unemployment rates were lower in June in 42 states, higher in 5 states, and stable in 3 states and the District of Columbia, the U.S. Bureau of Labor Statistics reported today. Forty-nine states and the District had jobless rate increases from a year earlier, while one state had no change. The national unemployment rate declined by 2.2 percentage points over the month to 11.1 percent but was 7.4 points higher than in June 2019....Massachusetts had the highest unemployment rate in June, 17.4 percent, followed by New Jersey, 16.6 percent, and New York, 15.7 percent. The rates in these three states set new series highs. (All state series begin in 1976.) Kentucky had the lowest unemployment rate, 4.3 percent.This graph shows the number of states (and D.C.) with unemployment rates at or above certain levels since January 1976. Currently 20 states are above 10% unemployment rate. Four states are above 15%. Note that the three states setting new highs were still in lockdown (the states that were hit hard by the virus early). State UnemploymentThe second graph compares the unemployment rate in two lockdown states (New York and New Jersey), and two early open states (Florida and Texas). It seems likely the recent surge in COVID-19 cases in Florida and Texas will lead to higher unemployment rates in those states.
Covid-19 Bankruptcies Bleeding Out Jobs, Economic Capacity -Yves Smith - Even though quite a few American are confessing to having Covid-19 fatigue, there’s no escaping the ongoing damage to the economy, like bleeding out of a major artery. Commercial tenants, particularly of retail space and office space, are either not paying or are pushing their landlords to give a major rent reduction. Upscale business hotels remain closed in major cities. I am told there are lots of moving vans in New York City, and they aren’t for move ins. Restaurants are trying to figure out how to get by. Operators that depended on corporate activity, be it shops and food vendors catering to office cube dwellers commuting or retailers in airports, are thinning out their locations and their staffing.And mind you, that was the state of play as states were partly or significantly though reopening, when there was hope the economy would haltingly get back to something approaching the old normal. But now, thirty-two states reported an increase of 10% or more Covid-19 cases in the last week. Even though the death rates so far aren’t correspondingly high, experts warn that with the lag between infection and mortality, that it’s too early to rule out a follow-on death spike.What has kept the bottom from dropping out of the economy is the emergency response. Yes, way too much was in the way of zombie futures, as in allowing already heavily leveraged companies to have more access to debt. And the subsidies to households, both directly, through the $600 a week unemployment insurance supplement, which resulted in five out of six making more than when they were employed, the payroll protection plan, which kept others from being furloughed, and the $1200 per person payouts all helped preserve incomes. As a result, even though residential mortgage delinquencies are elevated, they aren’t at the post financial crisis level, when 9 million mortgages went into foreclosure.1 From HousingWire: The U.S. mortgage delinquency rate rose to 7.76% in May as Americans struggled to pay their bills during the worst public health crisis in more than a century.The rate rose from 6.45% in April and was 3.39% in March, the month when states began issuing stay-at-home orders to try to stem the spread of COVID-19, according to the report on Monday. Black Knight counts loan in forbearances – meaning they have an agreement with the servicer to suspend payments – as being delinquent, as does Mortgage Bankers Association.Measured as a number, rather than a percentage, there were 4.12 million mortgages in the U.S. that had payments more than 30 days overdue in May, Black Knight said.Last week there were 4.6 million homeowners with mortgages in forbearance, down 57,000 from the prior week, according to Black Knight.
Census: Household Pulse Survey shows 34.9% of Households Expect Loss in Income First, from @ernietedeschi Employment in the @uscensusbureau Household Pulse Survey fell another -1.3 million last week alone. It's now fallen -2.6 million cumulatively over the past 3 weeks.Seasonality & survey noise may be factors, but the HPS did an excellent job of anticipating the June jobs report.This graph is from Ernie Tedeschi (former US Treasury economist). The question on lost income is always since March 13, 2020 - so this percentage will not decline - but might increase.From the Census Bureau: Measuring Household Experiences during the Coronavirus (COVID-19) PandemicThe U.S. Census Bureau, in collaboration with five federal agencies, is in a unique position to produce data on the social and economic effects of COVID-19 on American households. The Household Pulse Survey is designed to deploy quickly and efficiently, collecting data to measure household experiences during the Coronavirus (COVID-19) pandemic. Data will be disseminated in near real-time to inform federal and state response and recovery planning.… Data collection for the Household Pulse Survey began on April 23, 2020. The Census Bureau will collect data for 90 days, and release data on a weekly basis.This will be updated weekly, and the Census Bureau released the recent survey results today. This survey asks about Loss in Employment Income, Expected Loss in Employment Income, Food Scarcity, Delayed Medical Care, Housing Insecurity and K-12 Educational Changes. The data was collected between July 2 and July 7, 2020.Loss in employment income: "Percentage of adults in households where someone had a loss in employment income since March 13, 2020." This number is since March 13, and has increased to 49.9% from 47% in the initial survey.
Expected Loss in Employment Income: - 34.9% of households expect a loss in income over the next 4 weeks. This is down from 38.8% in late April, but up from 32% two weeks ago. This might suggest the job gains stalled after the data was collected for the June employment report.
Food Scarcity: Percentage of adults in households where there was either sometimes or often not enough to eat in the last 7 days. 10.8% of households report food scarcity. This has been increasing slightly.
Delayed Medical Care: "Percentage of adults who delayed getting medical care because of the COVID-19 pandemic in the last 4 weeks." 40.1% of households report they delayed medical care over the last 4 weeks. This has declined slightly.
Housing Insecurity: 25.3% of households reported they missed last month's rent or mortgage payment (or little confidence in making this month's payment). This has increased from a low of 22.1% in the survey of June 4th - June 9th..
K-12 Educational Changes: Essentially all households with children are reporting were not being taught in a normal format.
Workers on unemployment stunned as Arizona abruptly cuts off payments Multiple workers receiving unemployment payments through the state of Arizona were stunned on Saturday to learn that their unemployment payment accounts, accessible via debit cards provided by Bank of America, had been closed without warning, withdrawing funds from their accounts and cutting off their access to much needed funds. The rescinding of payments by the Arizona Department of Economic Security (DES) has affected workers who live out of state but had been employed in Arizona. The agency has not confirmed how many workers had their accounts closed over the weekend. In response to worried and now destitute workers calls for answers, the DES said on Twitter “As part of its increased fraud detection efforts, DES closed accounts with suspicious account information and activity located out of state. The majority of claims identified are believed to be fraudulent.” Closed in this instance means that all the funds that were already received and still in workers’ bank accounts had been clawed back by the state. While the state claims fraud is rampant in the system, it is notoriously difficult to obtain unemployment in Arizona in the first place, with many workers having to wait for payments for two months. Furthermore, payments are capped at a meager $240 dollars a week, which is less than half what someone would make working for minimum wage in Arizona. The legality of what the state is doing is questionable at best. The DES’s claim that the majority of claims that they closed are “believed to be fraudulent” has not been backed up by any evidence. Given the massive loss of jobs during the pandemic this could be a matter of life or death for many workers.
Pennsylvania tightens coronavirus restrictions on businesses as cases climb - Pennsylvania Gov. Tom Wolf (D) tightened restrictions on businesses Wednesday as the number of new coronavirus cases climbs in the state. Wolf’s new orders, which will take effect Thursday, reduced capacity for indoor dining to 25 percent. Bars can be open for sit-down meals at tables, also at 25 percent capacity, but bar service will be prohibited. Indoor gatherings are also capped at 25 people, and outdoor gatherings are capped at 250 people under the new order. The governor is also requiring all businesses to operate by teleworking if possible. Wolf warned that COVID-19 cases could surpass the peak the state hit in April if further action is not taken. “During the past week, we have seen an unsettling climb in new COVID-19 cases,” Wolf said in a statement. “When we hit our peak on April 9, we had nearly two thousand new cases that day with other days’ cases hovering around 1,000. Medical experts looking at the trajectory we are on now are projecting that this new surge could soon eclipse the April peak. With our rapid case increases we need to act again now.” Pennsylvania reported 994 new coronavirus cases Wednesday, bringing the state’s total to 97,665, according to state data.
California Walks Back Reopening as Coronavirus Cases and Hospitalizations Surge - California is reversing its reopening plans amidst a surge in coronavirus cases and hospitalizations. Gov. Gavin Newsom announced Monday that businesses like restaurants, wineries, movie theaters, cardrooms, zoos and museums must no longer welcome people inside and bars must close altogether, NPR reported. In addition, gyms, places of worship, hair and nail salons, malls and non-essential offices must close in 29 counties representing 80 percent of the state's population, the Los Angeles Times reported. "We're going back into modification mode of our original stay at home order," Newsom said, as The New York Times reported. "This continues to be a deadly disease."
CA is now closing indoor operations STATEWIDE for:
-Restaurants
-Wineries
-Movie theaters, family entertainment
-Zoos, museums
-Cardrooms
Bars must close ALL operations.
The news comes as coronavirus infections have been rising in about 40 of 50 U.S. states, according toReuters. California has emerged as one of the epicenters of the U.S. outbreak, along with Arizona, Florida and Texas. As of Sunday, California has been averaging more than 8,000 new cases a day, more than two times its daily average last month, The New York Times reported. In total California has seen 331,626 cases, the second highest caseload in the nation, according to New York Times figures. More than 7,000 Californians have died of the new disease. California began its reopening process in early May and saw cases begin to rise in June, mostly due to a surge in Los Angeles County, NPR reported. Newsom first responded by requiring face masks in public from June 18 and then by shuttering bars and other indoor venues in 19 counties July 1. Newsom said his decision Monday was informed by a rise in hospitalizations, people in intensive care units (ICUs) and the rate of positive test results. Over the last two weeks, the number of people hospitalized has increased 27.8 percent while the number of people in the ICU has increased 19.9 percent, state hospitals said Monday."We're seeing an increase in the spread of the virus, so that's why it's incumbent upon all of us to recognize soberly that COVID-19 is not going away any time soon until there is a vaccine or an effective therapy," Newsom said Monday, as the Los Angeles Times reported. Counties currently subject to increased restrictions include some of the state's most populous.
Public's disconnect from COVID-19 reality worries experts — The United States is being ravaged by a deadly pandemic that is growing exponentially, overwhelming health care systems and costing thousands of lives, to say nothing of an economic recession that threatens to plague the nation for years to come. But the American public seems to be over the pandemic, eager to get kids back in schools, ready to hit the bar scene and hungry for Major League Baseball to play its abbreviated season. The startling divergence between the brutal reality of the SARS-CoV-2 virus and the fantasy land of a forthcoming return to normalcy has public health experts depressed and anxious about what is to come. The worst is not behind us, they say, by any stretch of the imagination. “It’s an absolute disconnect between our perceived reality and our actual reality,” said Craig Spencer, a New York City emergency room doctor who directs global health in emergency medicine at New York Presbyterian/Columbia University Medical Center. “To look at the COVID case count and the surge in cases and to think that we can have these discussions as we have uncontrolled spread, to think we can have some national strategy for reopening schools when we don’t even have one for reopening the country, it’s just crazy.” The number of dead from the virus in the United States alone, almost 136,000, is roughly equal to the populations of Charleston, S.C., or Gainesville, Fla. If everyone in America who had been infected lived in the same city, that city would be the third-largest in the country, behind only New York and Los Angeles. More people in the United States have tested positive for the coronavirus than live in the state of Utah. By the weekend, there are likely to be more confirmed coronavirus cases than there are residents of Connecticut. There are signs that the outbreak is getting worse, not better. The 10 days with the highest number of new coronavirus infections in the United States have come in the past 11 days. Case counts, hospitalizations and even deaths are on the rise across the nation, not only in Southern states that were slow to embrace lockdowns in March and April. California, the first state to completely lock down, has reported more than 54,000 new cases over both of the last two weeks. Nevada, about one-thirteenth the size of California, reported 5,200 new cases last week. States where early lockdowns helped limit the initial peak like Pennsylvania, Illinois and Ohio are all seeing case counts grow and hospital beds fill up. Only two states — Maine and New Jersey — have seen their case counts decline for two consecutive weeks. “We are nearing the point where pretty much most of the gains we had achieved have been lost,” said Christine Petersen, an epidemiologist at the University of Iowa. “All of us are hoping we magically get our acts together and we can look like Europe in two months. But all the data shows we are not doing that right now.”
Walmart Will Require All Customers To Wear Masks Starting July 20 - Following in the footsteps of CostCo, Best Buy and Starbucks, moments ago Walmart - the world's largest retailer - became the latest national chain to require all customers to wear masks. "As the number of confirmed cases has spiked in communities across the country recently, so too have the number and types of face covering mandates being implemented," Walmart said in a news release Wednesday. About 65% of its more than 5,000 stores, including its Sam's Club locations, are located in areas where there is government mandate on face coverings. "To help bring consistency across stores and clubs, we will require all shoppers to wear a face covering starting Monday, July 20. This will give us time to inform customers and members of the changes, post signage and train associates on the new protocols." The change will be enforced on July 20, and comes even as there is federal mandate to wear a mask exists, however the Centers for Disease Control and Prevention says everyone "should wear a cloth face cover when they have to go out in public" adding that "face coverings are meant to protect other people." Most major retailers and grocers initially hesitated to enact their own mask mandates for customers during the pandemic, partly over fears of antagonizing shoppers who refuse to wear them, they have also been reluctant to put their employees in the position of enforcing mask requirements. But sentiment has changed in recent weeks as more than 3.3 million people have now tested positive for the coronavirus nationwide. Cases are climbing in much of the country and many cities and states are reimposing restrictions to contain new outbreaks, including mask requirements in public settings. Industry groups and unions have also stepped up their calls around mask requirements for customers. Last week, the Retail Leaders Industry Association, an industry trade group, called on the nation's governors to pass statewide mandates requiring citizens to wear masks in public. The United Food and Commercial Workers' Union also urged government officials and business leaders to require masks for customers in an advertisement over the weekend. Starbucks said last week that it will require customers to wear facial coverings or masks in all 9,000 of its company-owned US stores beginning Wednesday. Best Buy also announced Tuesday that it will also require all shoppers coming into its approximately 1,000 stores to wear face masks. Costco began requiring its members to wear masks in stores beginning in May.
Philly-Area Charters Collect $30 Million+ in PPP Funding -Charters in the Philadelphia area received more than $30 million in Paycheck Protection Program funds, while public schools in Philadelphia continue to be systematically underfunded. The big winner in the PPP sweepstakes is the for-profit Chester Community Charter School, owned by a major Republican donor and billionaire. One of the largest loans, between $5 million and $10 million, went to Chester Community Charter School (CCCS), which is operated by a for-profit management company owned by wealthy Republican donor Vahan Gureghian.The loan was received by Archway Charter School of Chester, Inc., which is the nonprofit name for CCCS under which it files its 990 tax form. The CCCS charter already received more than $2.5 million from the CARES Act, intended for public schools. So CCCS, which aims for a complete takeover and privatization of its district, is funded both as a “public school” and a small business.
Parents Are Paying $50,000 To Reserve Spots At NYC Private Schools Even Though Kids May Never Attend - Parents in New York City are locking up spots at elite private schools for their kids by paying deposits of up to $50,000 - even though children may never wind up attending.One mom highlighted by Bloomberg paid more than $50,000 per child to reserve NYC private schools for her kids while at the same time enrolling them in public school out west, where the family is staying during the Covid outbreak. She is hoping her kids can use Zoom to attend classes in the interim, if the family doesn't re-locate back to the city.This is a growing trend in the world of NYC private schools. With many families having fled the city, they are on the hook to make a decision about whether to lock up schooling for their kids for the fall. The spots at private school can be tough to get and are coveted within the city, so many parents have taken the "safe" route of paying for schooling they may not ever use. Schools are also coming up with ways to try and ensure they stay funded regardless of volatility with enrollment. Fanning Hearon, head of school at Palm Beach Day Academy in Florida, where many New York families applied, said: “A lot of people are just hedging their bets.” Hearon said 3 students were confirmed on Wednesday while at the same time 2 others dropped enrollment.Grace Church School in New York’s Greenwich Village is charging $53,330 for tuition and about 4% of families said they won't be coming back this year despite putting down $6,000 deposits. At Avenues: The World School, parents can take a year break by paying about 15% of tuition, or about $8,500. The Horace Mann School in the Bronx says that if students want to stay enrolled, they need to be back this year, or they will be forced to reapply next year. The Trinity School has seen no one pull out yet. The Dalton School on the Upper East Side says it'll be doing fully remote classes for students who want it. Private schools usually require a deposit by Februrary or March the year prior to enrollment. This year, that deadline has been moved to summer for many schools as parents continue to create logistical volatility for those running the schools. Roxana Reid, an admissions consultant, said: “Schools don’t even know if they’re officially going to be coming back.”
UTLA Recommends Keeping LA Schools Closed — Amid COVID-19 infections and deaths surging to record highs, Trump’s threats to open schools prematurely, and a groundbreaking research paper that outlines necessary conditions for safely reopening schools, the UTLA Board of Directors and Bargaining Team are calling on LAUSD to keep school campuses closed when the semester begins on Aug. 18. “It is time to take a stand against Trump’s dangerous, anti-science agenda that puts the lives of our members, our students, and our families at risk,” said UTLA President Cecily Myart-Cruz. “We all want to physically open schools and be back with our students, but lives hang in the balance. Safety has to be the priority. We need to get this right for our communities.” UTLA is also engaging all members in a poll on Friday, July 10, to find out where they stand on re-opening campuses. UTLA will notify members and the media the results of the poll Friday night. Even before the spike in infections and Trump's reckless talk, there were serious issues with starting the year on school campuses. The state and federal governments have not provided the additional resources or funds needed for increased health and safety measures and there is not enough time for the district to put together the detailed, rigorous plans for a safe return to campus. According to UTLA’s research paper, there is a jarringly disparate rate of COVID-19 infection, severe illness, and death among Black, Indigenous and People of Color (BIPOC) working communities, where structural racism and economic inequality mean people live with economic and social factors that increase risk of illness and death. In these communities, people are more likely to have “essential” jobs, insufficient health care, higher levels of pre-existing health conditions, and live in crowded housing. Because of the forces of structural racism, Blacks, Latinx, and Pacific Islanders in Los Angeles County are dying of COVID-19 at twice the rate of white residents.
LAUSD Campuses To Remain Closed in Fall, Despite Trump Push to Reopen – Amid spiking coronavirus cases, Los Angeles Unified School District campuses will remain closed when classes resume next month, Superintendent Austin Beutner said Monday, defying President Donald Trump's demand that students return to in-person instruction.Beutner said the "health and safety of all in the school community is not something we can compromise."The decision comes days after the union representing the district's teachers announced results of a poll showing that 83% of instructors opposed returning to in-person classes. Despite the announcement, the LA County Public Health Department later during a news conference released a roadmap to what schools may look like when they do reopen.Some of the guidelines include:
- Students wearing masks, except when eating or having nap time.
- Students wash hands frequently.
- Recess and other physical activities were to be limited.
Dr. Barbara Ferrer said that the guidelines were not an invitation to reopen for in-person classes, but rather a helpful guide, and schools would reopen based on guidance from the state.The LAUSD on Monday issued a joint statement with the San Diego Unified School District, which also announced it will start the school year with online-only courses. In the statement, the districts acknowledged that schools have successfully reopened in some parts of the world, but said the conditions are different locally."One fact is clear -- those countries that have managed to safely reopen schools have done so with declining infection rates and on-demand testing available. California has neither,'' according to the statement. "The skyrocketing infection rates of the past few weeks make it clear the pandemic is not under control.''
Education board in California's Orange County votes to reopen schools without requiring masks -The county Board of Education in Orange County, Calif., on Monday voted to approve school reopening recommendations that do not require masks for students or social distancing in schools.In a 4-1 vote, the board approved recommendations that include frequent hand-washing, daily temperature checks and nightly disinfection of facilities and vehicles, but did not include mandatory masks for students, the Los Angeles Times reported.“K-12 children represent the lowest-risk cohort for Covid-19. Because of that fact, social distancing of children and reduced census classrooms is not necessary and therefore not recommended,” the board's recommendations reads. “Requiring children to wear masks during school is not only difficult —if not impossible to implement — but not based on science. It may even be harmful and is therefore not recommended.”Although children are at lower risk of hospitalization from the virus, people at any age with underlying conditions are at higher risk for the virus. About 6 million children in the U.S. have asthma, according to the Centers for Disease Control and Prevention.The board gave individual districts broad discretion in their reopening plans. “Though it is important that we reopen our schools, some parents and some employees may reasonably question their own fitness for a fall return,” the recommendations state. “We understand that multigenerational families, for instance, or families in which children or adults live with maladies that make them more vulnerable might feel safe at home. It’s important that school districts accommodate these choices to the best of their ability.”Los Angeles's and San Diego’s school districts have announced they will not reopen in the fall. Although Orange County shifted leftward in the 2016 and 2018 elections, it was for decades known as one of the most conservative parts of the state and has been an epicenter of opposition to mask mandates in California, according to the newspaper.Nichole Quick, the county’s chief health officer, resigned in June, citing death threats after she issued an order requiring masks in public, The Orange County Register reported.
California governor says Orange County can't reopen schools days after vote to reopen - California Gov. Gavin Newsom (D) on Friday announced that some schools in the state will remain online-only in the fall rather than reopening to in-person classes.Schools that are in counties currently on the state's coronavirus watch listdo not meet Newsom's criteria to reopen. That means that as of Friday, 80 percent of the state's schools cannot reopen in the fall.Those counties include Orange County, where the education board just this week approved reopening without masks or social distancing. Masks are also required for teachers and students in third grade and above in schools that reopen, according to Newsom. Additional requirements include physical distancing, symptom checks, hand-washing stations and increased sanitation.Newsom clarified that the new guidance is a "mandate" for both public and private schools in the state. Newsom's announcement standardizes guidance for the state after two large school districts — Los Angeles and San Diego — already announced they would not reopen for in-person learning in the fall.Schools in counties that are not on the list are not required to reopen, according to the San Francisco Chronicle.Newsom noted he hopes that counties will "fall off" the monitoring list in order to allow them to reopen schools."Our default is in-person, but we have to do it in a safe way," he said.
Cuomo unveils plan for school reopenings in New York - New York Gov. Andrew Cuomo (D) released a plan Monday for schools to reopen based on the regional level of coronavirus infection rates. “Everyone wants to reopen the schools. I want to reopen the schools, everybody wants to reopen the schools,” Cuomo said during a briefing. “It's not, do we reopen or not. You reopen if it's safe to reopen. How do you know it's safe? You look at the data.” Schools will reopen if a region is in the state’s phase four of reopening and if the daily infection rate remains below 5 percent over a 14-day average by the first week of August, the governor said. Schools will close if the regional infection rate is greater than 9 percent during a seven-day average. “We’re not going to use our children as a litmus test and we’re not going to put our children in a place where their health is in danger,” Cuomo said. “It’s that simple, common sense and intelligence can still determine what we do even in this crazy environment. We’re not going to use our children as guinea pigs.” The New York State Education Department released guidance for schools and districts to follow as they plan to reopen, whether for in-person or remote learning or a combination of the two, but is leaving decisions on plans to make up to the districts. All districts and schools are required to create and submit to reopening plans at the school level to the state education department by July 31. The State Department lists guidance for facilities, which may pose one of the largest hurdles as schools look to bring students back in the fall. The education department’s guidance states schools may expand their physical footprint or change the way they use space to help promote social distancing. The state also calls for schools to continue to “meet or exceed ventilation requirements” and may want to consult with design professionals to increase ventilation and filtration. The state guidance also says districts will be required to perform regular school bus disinfection and train school bus staff regarding social distancing on the bus, at stops and at unloading times. To help with chronic absenteeism, the state guidance said schools should use “a variety of creative methods to reach out to students and families who have not engaged in distance learning.”
South Carolina governor urges schools to open for in-person classes - South Carolina Gov. Henry McMaster (R) is urging schools to reopen after Labor Day as coronavirus cases continue to increase across the state. McMaster said Wednesday that each district will be required to submit a reopening plan that gives families an option to send children to school for five days a week. “We must give parents the choice. This is the only thing that we’re asking these districts to do today, is to give the parents the choice,” McMaster said at a briefing. “If the parent wants to send their child back to school they should be able to do so, and to do so with confidence," he added. "If the parents want to keep the child at home, they should be able to do that and to do it with confidence." McMaster said he has asked the state Superintendent of Education Molly Spearman not to approve any district’s plan that doesn’t give parents the choice to send children to school for in-person instruction. Spearman, a Republican, was absent from McMaster’s press conference Wednesday, but the governor said she had been invited, according to The State. Spearman reportedly issued a statement at the same time as McMaster’s briefing that said reopening decisions should be made by local officials and that parents should have a choice between in-person and virtual instruction. In her statement, she also said that state can’t “turn a blind eye” to health risks the virus poses to adults and children, according to The State.
Texas officials offer schools option to hold online-only classes until November — Texas officials on Friday announced that schools can continue online-only learning until November as the state sees climbing cases of the novel coronavirus. AP reports that the changes were announced just hours before Texas set another daily record for COVID-19 deaths, 174, as well as more than 10,000 new cases of the virus as the state sees a growing outbreak. Previously, state officials had given districts the option of remote learning for three weeks and then having in-person classes. Most schools will also require masks and social distancing when they reopen. Gov. Greg Abbott (R) tweeted after the announcement that "the health [and] safety of students, teachers [and] parents is the top priority."The decision comes as President Trump and Education Secretary Betsy DeVos have pushed for schools to return to in-person learning in the fall, even threatening to withhold federal funding from those that don't return full-time. But the subject has been at the center of debate and sparked backlash from parents and teachers who worry about the virus spreading among children. While health officials say children often experience less severe coronavirus symptoms or are even asymptomatic carriers, many are concerned they will bring the virus home to parents or spread it to their teachers and the vulnerable. A number of other states have made similar decisions in recent weeks. California announced on Friday that about 80 percent of its population was on a "watch list" that would not be allowed to reopen schools for in-person learning until they could demonstrate back-to-back weeks of coronavirus cases being on the decline. When schools do reopen, they will require masks and social distancing.
Texas exempts religious private schools from reopening guidelines - Texas Attorney General Ken Paxton (R) said Friday that private schools are exempt from having to follow local health restrictions regarding school openings. Paxton said in an open letter to religious private institutions that forcing such schools to comply with local reopening guidelines would be unconstitutional. “Under the Governor’s orders, local governments are prohibited from closing religious institutions or dictating mitigation strategies to those institutions,” Paxton wrote. “Local governments are similarly prohibited from issuing blanket orders closing religious private schools. Because a local order closing a religious private school or institution is inconsistent with the Governor’s order, any local order is invalid to the extent it purports to do so. “Moreover, local public health orders attempting to restrict the provision of religious instruction through religious private schools violate the United States and Texas Constitutions and the Texas Religious Freedom Restoration Act," he added. Texas’s Religious Freedom Restoration Act mandates that the government must show a “compelling interest” in regulations that “substantially burden” the free exercise of religion and that rules are applied in the least restrictive way possible. Thus, as protected by the First Amendment and Texas law, religious private schools may continue to determine when it is safe for their communities to resume in-person instruction free from any government mandate or interference. Religious private schools therefore need not comply with local public health orders to the contrary,” Paxton concluded. The letter comes as Texas and the nation grapple with how and when to safely open schools amid an alarming spike in coronavirus cases. Texas in particular has seen a sharper rise in cases than many other states, with the federal government sending military medics to the Lone Star State to grapple with the mushrooming outbreak. Texas reported roughly 10,000 new cases Thursday for the third day in a row.
Haphazard plans to reopen US schools spur growing opposition among educators - Opposition among educators, parents and students is mounting across the US against the push by the Trump administration and the ruling elite to rapidly reopen schools—a move which coincides directly with the homicidal drive by the ruling class to force workers back on the job amid the deepening COVID-19 pandemic. In recent weeks, Americans have witnessed the pandemic worsen throughout the country as a result of the measures pushed through by state governors to lift restrictions and reopen state economies. The number of new COVID-19 cases surpassed 65,000 on Monday and Tuesday, while last Friday saw a single-day record for new cases at 71,787. Throughout the US, public school districts are rushing to implement plans for reopening in the fall. Plans range from fully in-person learning, fully online, or blended models with both in-person and online instruction. The two largest school districts in California, Los Angeles Unified School District (LAUSD) and San Diego Unified School District (SDUSD), released a joint statement Monday announcing they will begin their school years fully online. LAUSD will begin classes August 18 while SDUSD will begin August 31. LAUSD and SDUSD serve a combined 20 percent of the 6 million public school students throughout California. The move to a fully online format was announced as a temporary measure, with the joint statement noting, “both districts will continue planning for a return to in-person learning during the 2020-21 academic year, as soon as public health conditions allow.”
Biden rolls out school reopening plan amid coronavirus pandemic - Former Vice President Joe Biden rolled out his plan to safely reopen schools amid the coronavirus pandemic on Friday as the debate over the issue rages across the country. "If I'm elected president, our students and educators are going to have all the tools and resources they need to succeed, to get us through COVID-19, to build the strong, resilient schools we need so that every child has a chance to succeed in the 21st century," Biden said in a video announcing his blueprint. Biden's plan states that in order for schools to reopen, the virus must be under control in the U.S. The campaign said that this involves an increase in nationwide testing and contact tracing as well as a stable supply chain to ensure the production of personal protective equipment (PPE). Additionally, Biden said that older and high-risk individuals should be protected and small businesses should be provided with the resources to open safely. The campaign's blueprint also calls for national safety guidelines that states and localities can follow during the reopening process. Biden said under his administration, emergency funding would be provided to public schools and child care providers. The plan also takes virtual learning into consideration, calling on the Department of Education to assist students with disabilities or a lack of remote learning resources. The campaign said a Biden administration would also address the "COVID-19 education equity gap," through working with health, education and community experts on the issue. The development comes as President Trump faces nationwide backlash from Democrats, health professionals and education leaders on pushing ahead with reopening schools by the fall. The president referred to the Centers for Disease Control and Prevention's (CDC) school reopening guidelines as “very tough & expensive" earlier this month and threatened to withhold funding from schools that delay reopening.
Teacher-centric is good, but student-centric is better - “Providing a World-Class Education in Every ZIP Code” is the title of Joe Biden’s education task force policy recommendations, released last week. Given his long record of support for high-quality public schools, there’s no reason to doubt the presumptive Democratic presidential nominee’s sincerity. As president, surely, he’d wave a magic wand and instantly make every American child’s school a great one, if he could. But the “unity” task force left out some important voices. It included both presidents of the two largest teachers’ unions, as well as several vocal critics of public charter schools. Excluded from the task force was any representative of the 3.3 million mostly Black and brown families who depend on charter schools for equitable access to quality education. In fact, no Black education stakeholders, other than Rep. Marcia Fudge (D-Ohio), were given a seat at this particularly important table — a puzzling omission against the backdrop of current events, not to mention the Obama-Biden administration’s strong backing of charters. Given its makeup, it’s no surprise that the task force report trots out the oft-refuted canard that charter schools “undermine” traditional schools. The National Education Association (NEA) used identical language in a2017 policy statement pledging “forceful support” for limiting charter schools. “The growth of charters has undermined local public schools and communities, without producing any overall increase in student learning and growth,” the NEA claimed. That’s demonstrably false, as PPI and other research organizations have copiously documented. Moreover, you can’t have a more equitable system without giving parents some degree of choice in the schools that their children attend. Many Black parents - including charter school parents and those on charter school waiting lists - balk at the idea that they should be forced to send their kids to the traditional district school closest to their home, regardless of whether or not it’s doing a good job of educating their kids. Far from failing to produce “any overall increase in student learning and growth,” when urban charter school students go head-to-head with students in their own cities, charter schools frequently, and significantly,outperform their traditional-school counterparts. When the pandemic closed schools, for example, many charters were providing students with a full day of distance learning in under a week, while over the course of the shutdown, many traditional districts couldn’t locate all of their students, or teach them. New York City’s Success Academy, which has closed the minority achievement gap, took just three school days to open remote classrooms. Compare that to the Fairfax Public Schools, which admits its “disastrous” failure, for weeks, to launch distance learning for 189,000 students. While many charter schools responded to the pandemic like swift boats, many districts more resembled ocean liners. That’s why the demand for charter schools is growing. In Washington D.C. alone, almost 11,000 students are wait-listed for charter schools. The more charter schools grow, the more teachers they need. Most charter schools are not unionized, so teachers’ unions see them as an existential threat that must be “forcefully” limited.
White House blocks CDC director from testifying before House panel on reopening schools - The Trump administration is rebuffing House Democrats' effort to hear testimony from Centers for Disease Control and Prevention (CDC) Director Robert Redfield on safely reopening schools during the coronavirus pandemic. House Education and Labor Committee Chairman Bobby Scott (D-Va.) sent Redfield a letter last week asking him or a CDC designee to testify at a hearing on how K-12 public schools can reopen for in-person classroom instruction this fall. But on Friday, Scott said his panel had been informed that the Trump administration would not allow CDC testimony at the hearing planned for next week. “It is alarming that the Trump administration is preventing the CDC from appearing before the committee at a time when its expertise and guidance is so critical to the health and safety of students, parents, and educators. This lack of transparency does a great disservice to the many communities across the country facing difficult decisions about reopening schools this fall," Scott said in a statement. A senior administration official said that Redfield has already testified before Congress at least four times in the last few months. The White House has been limiting congressional testimony from top officials leading the nation's response to the coronavirus pandemic, maintaining that they should be focused as much as possible on planning and implementing the federal government's actions to contain the virus. The White House offered a similar rationale in May for preventing Anthony Fauci, the nation's top infectious disease expert, from testifying before a House Appropriations subcommittee about the government's response to the pandemic. A White House spokesman said at the time that it would be "counterproductive" for officials involved in the pandemic response to testify at congressional hearings, but that the administration would work with Congress to make them available “at the appropriate time.”
Nearly 1 in 4 US teachers at greater risk of becoming seriously ill if infected with coronavirus --About one in four teachers in the U.S. are at greater risk of becoming seriously ill if they get infected with the new coronavirus, according to a report released Friday by the Kaiser Family Foundation. The foundation, a nonpartisan organization that focuses on national health care issues, looked at a series of factors identified by the Centers of Disease Control which could indicate that a person could be “more likely than others to become severely ill,” when they are exposed to the virus. They include several underlying health conditions — such as diabetes, chronic obstructive pulmonary disease, heart disease, moderate or severe asthma, having a body mass index of greater than 40, or having a compromised immune system due to, for example, treatment for cancer — as well as being age 65 and older. The analysis found that about 1.47 million teachers and instructors in the country — nearly 24% of the entire workforce — have a condition that will put them at higher risk of serious illness from coronavirus. According to the CDC, that means that “they may require hospitalization, intensive care, or a ventilator to help them breathe, or they may even die.” The report comes as educators around the nation contemplate on the best solutions to regain some type of normalcy in the classroom, as many areas of the country experience record-breaking COVID-19 surges.
Teachers in same Arizona classroom all get coronavirus, 1 dies - Three Arizona summer-school teachers who followed the recommended safety protocols for the coronavirus while in the same classroom contracted the contagion — and one of them died, reports say.“It just feels like a bad dream that I can’t wake up from,” Jesse Byrd, the husband of beloved late first-grade instructor Kimberley Chavez Lopez Byrd, 61,told the Arizona Republic.His wife had previously retired, only to miss the classroom so much that she eventually returned to the job as a first-grade teacher in the Hayden-Winkelman Unified School District in Gila County.In June, Kimberley and two other teachers — Angela Skillings and Jena Martinez-Inzunza — got together in one classroom to conduct classes for a group of kindergartners and first- and second-graders, who watched the educators online as they performed fun nature-inspired experiments such as using Cheetos to demonstrate bee pollination.The women said they wore masks and gloves, socially distanced and used hand sanitizer to keep themselves safe, CNN reported.“We were very careful,” Skillings told the Republic.Kimberley — who suffered from diabetes, lupus and asthma — was the first to test positive for the virus, and by June 26, less than two weeks after she became a confirmed case, she was dead.The two other teachers tested positive soon after Kimberley did and said they are still suffering from complications.Arizona is among a slew of US states suffering from a recent surge in the virus.The state reported 2,537 new cases of the contagion Sunday, for a current total of 122,467 — more than a third of which occurred just so far this month, according to statistics from Arizona’s Health Department.
Arizona teachers call on governor to postpone in-person classes until at least October: 'Remote learning won't kill us but COVID can' - Arizona teachers are calling for in-person classes to be postponed until at least October, saying, "Remote learning won't kill us but COVID can." "We don't want any children to get this from us, because as a teacher, I don't want to go to any of their funerals," third-grade teacher Stacy Brosius, 47, told Reuters, adding that she is also not ready to send her own three children back to school. Brosius, among other educators in Arizona, are petitioning for Gov. Doug Ducey (R) to push the start of in-person classes to October following the death of a colleague who died from COVID-19 after teaching summer school. Teachers are planning a significant automobile strike on July 22. They will circle the capitol and governor's office to protest the state's current plans to resume in-person classes at the beginning of the school year while also demanding better funding for the education system. "This is a core piece of what our educators come together for, which is to demand that schools are properly funded," said Joe Thomas, president of the Arizona Education Association (AEA.) "Until we can see that, we are not ready to come back to schools." The teachers' concern comes as Arizona experiences rising case numbers and the school system prepares to welcome back 1.1 million public school students and 20,000 teachers. The state's 7-day average of new cases rose dramatically over the past two months, going from an average of 500 cases per week to over 3,000 in July, Reuters reported. Texas officials offer schools option to hold online-only classes... Sunday shows preview: Trump, lawmakers weigh in on COVID-19, masks... Despite reports from the Arizona Department of Public Health revealing hospital ICU capacity nearing 90 percent this week, Ducey said Thursday he would not be swayed by politics, adding that he would be comfortable sending his children back to in-person classes. "Our kids are going to be learning in the fall. We are going to do our best to conduct the most positive educational year that we can," Ducey said.
U.S. Coronavirus Cases Hit Another Daily Record as State GOP Officials Target Mask Orders – WSJ - Plans laid out by California and Texas suggest many children in each state will start the school year virtually, as coronavirus cases rose to another daily record and measures to slow the spread of the virus continued to meet political resistance.Confirmed infections in the U.S. neared 3.6 million, as the country posted a single-day record of more than 77,000 new cases.World-wide, a single-day record of 249,800 new infections was tallied Thursday, according to data compiled by Johns Hopkins University, exceeding the previous high of around 230,000 set a day earlier. Global deaths neared 600,000, and the U.S. death toll rose to more than 138,900.In California, where coronavirus cases have risen more than 20% over the past week, Gov. Gavin Newsom on Friday said schools could reopen for in-person classes only in counties that have been off the state’s Covid-19 watch list for two weeks. At least 32 of the state’s 58 counties, which account for the state’s most populous areas, are on the watch list. California, the most populous state in the nation, is home to more than 6 million school children. Counties still on the watch list will resume distance learning, and districts will be required to provide devices and connectivity for every child. In schools that are opening their doors, staff members and any students in third grade or above are required to wear masks, while those in second grade or below are encouraged to wear them.Recognizing that the virus is continuing to spread throughout California, the Democratic governor outlined criteria for closing reopened schools, starting with sending home individual classrooms. Schools will shut down if more than 5% of the campus tests positive. Districts will be closed if 25% of their schools are closed within a 14-day period. State and local leaders across the country have pushed back school start dates and delayed returning to in-person learning, saying it’s too dangerous to have children in classrooms as the virus continues to rage across the U.S.President Trump has demanded that school districts reopen or risk losing federal funding. His administration has tied the reopening of schools to economic recovery, saying keeping schools closed presents a challenge to working parents.On Friday, the Texas Education Agency updated its guidance for reopening schools, saying districts could offer online learning for up to eight weeks in the fall. The announcement came after the agency said last week that daily in-person learning would be available for parents who want their children to attend.Health officials in Dallas County on Thursday ordered schools there not to reopen for in-person instruction until after Labor Day. Houston Independent School District, the largest in the state, has already said it would delay opening and offer only online learning for the first six weeks. Concerns over in-person learning from teachers and parents alike have grown as Texas has charted a sharp rise in new Covid-19 cases and subsequent hospitalizations. Friday’s guidance in the nation’s second most-populous state does allow students who don’t have access to the internet or devices to come in for in-person learning. But Republican Gov. Greg Abbott said Friday that the state would use $200 million in Cares Act funding to purchase e-learning devices and home internet solutions.
Colleges Spend Millions to Prepare to Reopen Amid Coronavirus – WSJ --As colleges around the country map out plans to reopen their campuses in the fall, they have embarked on some unique and pricey shopping expeditions: sourcing miles of plexiglass, hundreds of thousands of face masks and, in the case of the University of Central Florida, trying to get in an order for 1,200 hand-sanitizer stations before neighboring theme parks could buy them all up. Costs for protective gear, cleaning supplies and labor for employees to take students’ temperatures and conduct hourly wipe-downs of doorknobs are already running into the millions of dollars. The added expenses come as many schools face severe budget crunches due to lower enrollment and tuition revenue, refunded housing fees from the spring and costs tied to shifting online. Even well-resourced schools are trying to fundraise to stock up on supplies. Reopening college campuses is contingent on approval from local health officials, who in some states haven’t yet signed off on campus-based instruction. Still, many schools remain hopeful and are pushing ahead with planning, with some already bringing student-athletes back for voluntary workouts. In Florida, one of the first states to reopen for business during the coronavirus pandemic, the University of Central Florida in Orlando will issue one reusable, washable face covering each to all students, faculty and staff—about 100,000 items. The school ordered another 250,000 disposable masks for visitors and those who forget their face coverings. The bill for masks was $309,000. The school, which had 69,500 students last year and expects about 30% of classes to be taught face-to-face this fall, spent another $491,000 on 1,200 touchless hand-sanitizer dispensers, 600 stations for disinfecting-wipe dispensers and many thousands of refills. One challenge is that officials don’t know how soon they will have to reorder supplies and if the products will be available when needed. “We have no historical trending to know how far those will go,” said Vice President and Chief Operating Officer Misty Shepherd. Other big-ticket items for Central Florida include $500,000 to upgrade ventilation systems with ultraviolet lighting that can help kill bacteria. It will spend $600,000 to retrofit doors with motion-sensor technology or foot-operated openers and to install $54-apiece plexiglass panels in the welcome center, student advising office and other high-traffic areas where social distancing isn’t really possible.The school is also budgeting an extra $3 million for labor and materials costs tied to increased cleaning of common areas, elevator buttons, door handles and bathrooms.
Top Democrat calls for oversight of Trump's demand for review of universities' tax-exempt status - House Ways and Means Committee Chairman Richard Neal (D-Mass.) on Wednesday called for a review of President Trump's demand that the Treasury Department examine the tax-exempt status of universities and school systems. In letters to the IRS and the Treasury inspectors general, Neal said that under the federal tax code, it's unlawful for the president to request that the IRS investigate specific taxpayers. "Under Section 7217 of the Internal Revenue Code, it is unlawful for the President, the Vice President, and other Executive Branch employees to 'request, directly or indirectly, any officer or employee of the Internal Revenue Service to conduct or terminate an audit or other investigation of any particular taxpayer,'" Neal wrote. In a pair of tweets on Friday, Trump directed the Treasury to reevaluate schools' tax exemptions. The tweets came as Trump has been trying to pressure schools to hold in-person classes in the fall, thought they made no mention of the coronavirus. Neal's letters included images of Trump's tweets. He asked the IRS and the inspectors general for the Treasury Department to provide information about whether anyone at Treasury and the IRS has taken steps to comply with Trump's comments, and about what is being done to ensure that the agencies don't comply with the president's directive.
Nearly 60 universities file brief backing challenge to ICE rule on foreign students - Nearly 60 public and private universities are supporting a lawsuit seeking to block the Trump administration from stripping foreign students of visas at colleges that opt against in-person classes this fall due to the coronavirus pandemic. Harvard University and MIT filed the lawsuit last week in federal court in Boston after Immigration and Customs Enforcement (ICE) announced that international students would need to leave the U.S. if their schools moved classes exclusively online. The universities are asking for a temporary restraining order and permanent injunction against the policy. Fifty-nine colleges filed an amicus brief in court on Sunday backing Harvard and MIT's legal action. The schools — based in 24 states and Washington, D.C. — have a combined 213,00 international students enrolled, according to the brief. The schools include Georgetown, Stanford, Arizona State University and Yale."A fundamental principle of administrative law is that the government must provide a reasoned explanation for its actions and consider all important aspects of a problem before imposing burdens on regulated parties," the brief sates. "The July 6 Directive fails this basic requirement."The universities also argued that college leaders relied on federal guidance allowing international students to remain in the country while taking online classes in preparation for the fall term. In March, ICE officials said that international students would be granted an exemption from attending in-person classes throughout the duration of the public health emergency. "The emergency persists, yet the government’s policy has suddenly and drastically changed, throwing [schools'] preparations into disarray and causing significant harm and turmoil," the universities said. ICE's announcement earlier this month on student visas came as the Trump administration ramped up its push to reopen schools this fall. Trump and Education Secretary Betsy DeVos have been vocal about the need for schools to offer in-person classes, producing concerns from some about whether teachers have the equipment necessary to do it in a safe fashion. In their lawsuit, Harvard and MIT alleged that ICE's decision was designed to “force universities to reopen in-person classes." The legal action came just two days after Harvard announced that it would offer all of its classes online for the next school year. The university has said that it will allow “those who must be on campus to progress academically” to return in the fall.
Western colleges sue over ICE foreign student policy - A group of twenty colleges and universities in the western U.S. sued the Trump administration on Monday over a rule change that would force out international students who are attending classes online due to the coronavirus pandemic. The latest of an increasing number of legal challenges to the new policy comes from schools including the University of Oregon, Stanford University, Arizona State University and Seattle University. They argued that the sudden reversal of Immigration and Customs Enforcement's (ICE) policy on foreign student visas is unlawful and gave little warning to schools and students. "Schools that had spent months carefully planning for their Fall semester are suddenly faced with a need to completely redesign their academic programming for the Fall, or risk having their F-1 students expelled from the country for failing to attend in-person courses," reads the lawsuit filed in Oregon's federal district court. In March, as the government scrambled to prepare for the public health crisis, ICE offered a reprieve to student visa holders, who are normally required to attend in-person classes to remain in the country. ICE reversed itself with little warning last week, saying that any student visa holders in the U.S. would have to leave the country if their schools would be holding classes entirely online. Lawsuits quickly followed, including from Harvard and MIT, California's public colleges and a coalition of 17 states. The Justice Department (DOJ) responded to the Harvard-MIT lawsuit on Monday, arguing against a restraining order against the policy. The administration contends that they exercised their lawful discretion to change their policies regarding student visas. "The July 6 policy announcement is nothing more than a reminder that students must depart should they violate the terms of their nonimmigrant student visa," the DOJ wrote in a court brief.
Trump administration rescinds foreign students rule - The Trump administration on Tuesday rescinded a policy that would have stripped visas from international students whose courses move exclusively online amid the coronavirus pandemic. The move comes after the policy announcement last week sparked a flurry of litigation, beginning with a suit brought by Harvard University and the Massachusetts Institute of Technology (MIT), followed by California's public colleges and later a coalition of 17 states, among other challenges. Judge Allison Burroughs, a federal district judge in Boston who was expected to preside over oral arguments in the Harvard-MIT case, made the surprise announcement at the beginning of the court proceedings Tuesday. “I have been informed by the parties that they have come to a resolution,” Burroughs said, adding, “They will return to the status quo.” The latest development cancels a move U.S. Immigration and Customs Enforcement (ICE) announced last week that international students whose courses move entirely online would be required to depart the country or transfer schools and reinstates an earlier plan to grant exemptions to student visa holders. In March, as the government scrambled to prepare for the public health crisis, ICE offered a reprieve to student visa holders, who are normally required to attend in-person classes to remain in the country. ICE reversed itself with little warning last week, saying that any student visa holders in the U.S. would have to leave the country if their schools held classes entirely online. The Harvard-MIT suit asked a federal court in Boston for a temporary restraining order and permanent injunction against the administration's new policy. Their lawsuit alleged that ICE’s decision appeared designed to “force universities to reopen in-person classes,” thereby increasing the risk of exposure to the coronavirus while scrambling carefully laid plans to conduct courses online and upending foreign students’ lives. The universities accused the administration of committing several violations of a federal law known as the Administrative Procedure Act (APA), which concerns how certain decisionmaking power resides with federal agencies. At issue was whether ICE’s new policy was legally justified or if it was “arbitrary and capricious” and thus illegal under the act. The lawsuit leaned heavily on the Supreme Court’s decision last month to block the administration’s plan to end the Obama-era Deferred Action for Childhood Arrivals program. In that case, a majority of the justices found that the government did not provide adequate justification for the policy decisions as required under the APA. The rescission announced Tuesday marked yet another stunning twist in the Trump administration’s approach to student visas amid the pandemic. As of Monday, the administration maintained it had exercised its lawful discretion to change its policies regarding student visas.
Trump Admin Exempts European, But Not Chinese, Students From Coronavirus Travel Restrictions - Following in the foosteps of a report from earlier thisweek, that the White House would rescind its decision to deny student visas to students who won't be studying on campus full time this fall, Reuters reports that foreign students coming from Europe will be exempt from a travel ban the United States imposed because of the coronavirus pandemic, the U.S. State Department told congressional offices on Thursday. The State Department also told lawmakers that it would offer exemptions for some au pairs and family members of visa holders in the United States, according to a memo sent to lawmakers and seen by Reuters. The decision is part of the administration's effort to gradually reopen international travel following months of sweeping restrictions due to the coronavirus pandemic. In March, President Trump banned travelers from most European countries as COVID-19 cases soared in the region before the disease took hold in the United States. Meanwhile, even though the European Union began to allow non-essential travel from a limited number of countries last month, travelers from the United States remain banned due to the recent spike in coronavirus cases. The U.S. decision to allow European students comes days after the Trump administration agreed to drop a policy that would have forced tens of thousands of international students to leave the United States if their classes went entirely online; the reversal came amid legal challenges by major universities and pressure from business and tech companies. China, Brazil and Iran face similar travel bans, but students from those nations were not included in the U.S. exemptions. Students in European countries who already have visas to study in the United States are exempt from the ban, according to the memo. The State Department also said spouses and children of certain foreign workers coming to the United States could qualify for exemptions, including the spouses of skilled workers with H-1B visas.
Coronavirus Tests Role of Higher Education as Recession Buffer – WSJ - In past recessions, the U.S. higher education system has served as a buffer of sorts by absorbing unemployed workers. The peculiarities of the coronavirus-induced recession present obstacles to colleges playing a similar role this time around, some economists say. For one, it is unclear how many colleges and universities will reopen or to what extent, or how many people will decide to enroll. Many laid-off workers might lack access to high-speed internet to take online courses. It is also unclear how long unemployment will remain elevated, and whether students will acquire the skills they need in the post-Covid job market. Workers who lose jobs in a recession often suffer consequences that reverberate for years, through lost wages and delays in career advancement, research shows. Enrolling in college and graduate school can help mitigate or overcome that damage, as newly acquired skills give workers greater earning potential. And a better educated labor force benefits the economy, boosting productivity and growth potential. “When there are few jobs and the economy’s not doing well, that’s the best time to go back and get a college degree,” said Adam Looney, a nonresident senior fellow at the Brookings Institution who served in the Obama administration’s Treasury Department. A 2005 paper in the Journal of Econometrics found that spending one year in community college increased the long-term earnings of displaced workers by an average of about 9% for men and 13% for women. The paper analyzed workers who had spent significant time with their employer or industry, were permanently laid off in the early 1990s and later found work. During the 2007-2009 recession and subsequent recovery, the Obama administration made higher education a central theme of its strategy to heal the economy. Officials believed the strategy would lift growth in the long term also providing a short-term boost as students spent money on tuition and living expenses. The ability of workers to learn new skills could be crucial if unemployment remains elevated for a long time. While the jobless rate fell to 11.1% in June from 14.7% in April as parts of the economy started to reopen, 17.8 million workers remained unemployed, Labor Department data show. Another 8.2 million were out of the labor force entirely even though they wanted to work.
California mom sentenced to 5 weeks in prison after paying to have online classes taken for her son - A California mother who paid $9,000 for a stand-in to take four online courses for her son was sentenced to five weeks in prison on Wednesday. Karen Littlefair of Newport Beach, Calif. said Wednesday that she is “truly sorry” for her actions, saying that the experience has been a “nightmare” for her family. “I acted out of love for my son but I ended up hurting my son greatly," said Littlefair, appearing over a videoconference because of the coronavirus pandemic, The Associated Press reported. She pleaded guilty in January to a count of conspiracy to commit wire fraud. Littlefair is one of over 50 people who were charged in the college admissions scandal that sought to get the children of wealthy parents into elite colleges by cheating on tests and faking other credentials, according to a Wednesday statement from the U.S. Attorney’s Office in Massachusetts. After Littlefair’s son, James Littlefair, was put on academic probation by Georgetown University, the woman hired Rick Singer, the admissions consultant at the center of the scandal, to have someone take four courses for the then-student – three of which were taken online through Georgetown and one that was taken online through Arizona State University. The courses were taken between 2017 and 2018. James Littlefair graduated from Georgetown in May 2019. Karen Littlefair sought a discount for the courses after her son received a “C” in one of the classes taken for him, the AP reported. U.S. District Judge Allison D. Burroughs on Wednesday also ordered Littlefair to pay a $209,000 fine and serve 300 hours of community service. Burroughs told the California socialite Wednesday that she taught her son “it’s OK to cheat, it’s OK to take shortcuts.”
Analysis finds 5.5M have lost health insurance amid pandemic - Nearly 5.5 million people who lost their jobs between February and May of this year also lost their health insurance, according to a new analysis released Tuesday. The analysis from Families USA, a consumer health care advocacy organization, finds that the COVID-19 pandemic and the resulting economic crisis have caused the greatest health insurance losses in American history. Nearly half of the coverage losses occurred in five states: California, Texas, Florida, New York and North Carolina. “Families in America are losing comprehensive health insurance in record numbers,” the authors of the analysis wrote. “This creates particularly serious dangers during a grave public health crisis and deep economic downturn.” Coverage losses are likely steep because about half of Americans get health coverage through their jobs. However, the 5.4 million people who are estimated to have also lost their health insurance doesn’t count family members who might also have been on those plans. The Kaiser Family Foundation estimates that as of May 2, nearly 27 million people could have lost employer-sponsored insurance, including family members. The coverage losses are particularly troubling during a pandemic, when individuals might contract COVID-19 and need testing or treatment that is typically costly without insurance. Most people who become uninsured will be eligible to sign up for Medicaid or if they lost job-based coverage, they will qualify for a special enrollment period on ObamaCare’s healthcare.gov marketplace. The Trump administration has also vowed to reimburse hospitals for the treatment of uninsured COVID-19 patients, but it is not clear how successful that program has been. It's also unclear how aware individuals are of these options, particularly if they are dealing with other stresses caused by the pandemic, including sickness of themselves or friends and family, job loss or working from home while caring for children, or other difficulties.
Millions of Americans Have Lost Health Insurance During COVID-19 --Accessibility to quality health care has dropped for millions of Americans who lost their health insurance due to unemployment. New research has found that 5.4 million Americans were dropped from their insurance between February and May of this year. In that three-month stretch more Americans lost their coverage than have lost coverage in any entire year, according to The New York Times. The report was compiled by the advocacy group Families USA, which looked at COVID-19's impact on workers under 65. It noted that recent increases in the number of uninsured adults are 39 percent higher than any annual increase ever recorded. The highest previous increase took place over the one-year period from 2008 to 2009, when 3.9 million non-elderly adults became uninsured, according to a Families USA statement. In that time frame, at least 22 million Americans lost their jobs or left the workforce. The public health crisis also has stripped roughly 16 million workers and their families from employer-provided health plans, according to the Economic Policy Institute, as The Independent reported. However, some of those unemployed were able to join a family member's plan or buy private health insurance.As Slate noted, health coverage has long been treated as a luxury, linked to certain kinds of white-collar employment. Now, the coronavirus has made health coverage an amenity fewer can afford."We knew these numbers would be big," said Stan Dorn, who directs the group's National Center for Coverage Innovation and who wrote the study, as The New York Times reported. "This is the worst economic downturn since World War II. It dwarfs the Great Recession. So it's not surprising that we would also see the worst increase in the uninsured." As The New York Times reported, the nonpartisan Kaiser Family Foundation has estimated that 27 million Americans have lost coverage in the pandemic. That study took into account family members of the insured. Another analysis, published Monday by the Urban Institute and the Robert Wood Johnson Foundation, projected that by the end of 2020, 10.1 million people will no longer have employer-sponsored health insurance or coverage due to job loss during the pandemic.
Coronavirus Shows the Dangers of Letting Market Forces Govern Health and Social Care - In March, 10,000 NHS staff signed a letter to UK prime minister Boris Johnson demanding better protection against COVID-19. Nurses and doctors wanted to treat patients without fear of infecting them and to minimise their own risk of falling ill. But they lacked the proper protective equipment. The problem they described was rooted in changes made long before the arrival of the coronavirus. The NHS’s reduced capacity for dealing with the pandemic – including a lack of PPE – has been the result of years of allowing financial considerations to dictate the quality of care. Back in 2017, the government rejected advice that the NHS should stockpile protective equipment in case of a potential influenza pandemic. The reason? An economic assessment found it would be too expensive. Such failings are representative of the long-running trend, beginning in the 1980s, of letting the logic of the market dictate how health and social care systems are run, both in Britain and abroad. It has left many systems without the capacity to withstand a crisis of the scale we’re currently seeing. The US’s private healthcare system epitomises the failure of letting the market govern care services. The country spends 17% of its GDP – or US$3.6 trillion (£2.8 billion) – on health, more than any other nation. Despite this, almost 30 million Americans (9% of the entire US population) remain uninsured because their employer does not offer health benefits or they cannot afford their own insurance. These are mostly working-age adults in families with low incomes.The inaccessibility of health services to those who need them has contributed to the US having the highest number of COVID-19 fatalities in the world (together with one of the highest death rates per 1 million population). Yet, even while the pandemic spreads, some of its poorest hospitals and other healthcare institutions have had to put much-needed staff on leave. Having to compete in a ruthless market environment, they cannot afford to pay them.The pandemic has also exposed failings in care homes. Prompted by the rising costs of elderly care and users’ expectations for personalised services, both the UK and Sweden introduced a market-based system of care in the 1980s. The idea was that encouraging competition among multiple providers would deliver more cost-effective and responsive services and empower consumers by letting them choose among them.
Study links abnormally high blood sugar with higher risk of death in COVID-19 patients not previously diagnosed with diabetes - New research from Wuhan, China shows that, in patients with COVID-19 but without a previous diagnosis of diabetes, abnormally high blood sugar is associated with more than double the risk of death and also an increased risk of severe complications. The study is by Dr Yang Jin, Union Hospital and Tongji Medical College, Huazhong University of Science and Technology, Wuhan, Hubei, China, and colleagues. The study is published in Diabetologia (the journal of the European Association for the Study of Diabetes [EASD]). Previous studies have established that hyperglycaemia (abnormally high blood sugar) is associated with an elevated risk of mortality in community-acquired pneumonia, stroke, heart attacks, trauma and surgery, among other conditions. A number of studies have also shown links between diabetes and poor outcomes in COVID-19 patients. However, direct correlation between fasting blood glucose (FBG) level at admission to hospital and clinical outcomes of COVID-19 patients without diagnosed diabetes has not been well established. In this new study the authors examined the association between FBG on admission and the 28-day mortality of COVID-19 patients without previously diagnosed diabetes in two hospitals. The results showed that patients in the highest FBG group were 2.3 times more likely to die than those in the lowest, a statistically significant result. Those in the middle (pre-diabetic) FBG group were 71% more likely to die than those in the lowest group, although this result only had borderline statistical significance. The data also showed that men were 75% more likely to die than women; and that patients with higher CRB65 scores (and thus worse pneumonia) were also at higher risk of death: those with a score of 3-4 were more than 5 times more likely to die than those with a score of 0, while for those with a score of 1-2 there was a 2.7 times increased risk.
Study links fermented vegetable consumption to low COVID-19 mortality - An intriguing new study by researchers in Europe suggests that coronavirus disease 2019 (COVID-19) mortality rates are likely to be lower in countries where diets are rich in fermented vegetables. Earlier this year, Jean Bousquet (Charité, Universitätsmedizin Berlin) and colleagues investigated whether diet may contribute to the significant variation in COVID-19 death rates that have been observed between countries. The study found that in some countries with low mortality rates, the consumption of traditional fermented foods was high.Now referring to the current study, “the negative ecological association between COVID-19 mortality and consumption of fermented vegetables supports the hypothesis previously reported,” writes the team. The researchers say that if their hypothesis is confirmed in future studies, COVID-19 will be the first infectious disease epidemic to involve biological mechanisms that are associated with a loss of “nature.”Significant changes in the microbiome caused by modern life and less fermented food consumption may have increased the spread or severity of the disease, they say.A pre-print version of the paper is available on the server medRxiv*, while the article undergoes peer review. However, this paper is a preliminary report and should not be regarded as conclusive or established information.
The FTC Has Sent Cease-And-Desist Letters To Over 150 Companies Who Claim To Have Covid-19 Cures -The Federal Trade Commission and Food and Drug Administration have sent over 150 cease-and-desist letters to companies claiming to have products that cure or foster coronavirus immunity; here are a few recently flagged scams:
- Butterfly Expressions in Idaho advertised blessed water, essential oils and tinctures to treat Covid-19 conditions like “coronavirus pneumonia” with claims like, “This formula is perfect for the fight against this most recent pandemic, COVID-19,” as stated in the FTC’s cease-and-desist from July 6.
- South Carolina-based Seanjari Preeti Womb Healing received a cease-and-desist in May for selling a “very strong molasses” product called “Covid-19 Cough Syrup” with the claim: “If you are living in a state where your numbers [of COVID-19 cases] are high or your numbers are starting to climb really really fast, do what’s in your power to get you some COVID [syrup].”
- Another company advertised a nasal gel called Swype Shield, saying it will “kill > 99.99% of all viral upper respiratory illnesses (VURI), including Coronavirus,” as stated in an FTC warning to the Ponte Vedra Beach, Florida, company on June 26.
- A number of companies flagged by the FDA/FTC also claimed to sell traditional Chinese herbs and medicine to treat coronavirus with unproven claims like: “Lianhua Qingwen capsule has been proven effective for the treatment of COVID-19.”
These companies and the others receiving the FTC/FDA warning letters have been found to violate the Federal Food, Drug and Cosmetic Act.The FTC and FDA requires that these companies immediately cease the sale of these products and send a letter within 48 hours of receiving the warning that describes the actions the company is taking to correct the violations and prevent their recurrence. All the aforementioned companies did not respond to requests to comment by the time of publication.
WHO still skeptical SARS-CoV-2 lingers in air—despite what the NYT says -If you happened to read The New York Times this week, you may be under the false impression that the World Health Organization significantly changed its stance on whether the pandemic coronavirus, SARS-CoV-2, spreads by lingering in the air.Around midday Thursday, the paper declared: “W.H.O., in Reversal, Affirms Virus May Be Airborne Indoors.” The paper also called it an “admission” and, in a subsequent article, said the WHO had “conceded.” The articles both noted that a group of more than 200 researchers had also published a commentary piece this week urging the WHO and other public health bodies to acknowledge and address the potential for airborne transmission of SARS-CoV-2.The problem: the WHO did not change its stance on airborne transmission. And, as such, it did not issue any new recommendations or guidance on how people can stay safe. What the organization did do is release an update of its review of the data on transmission, which it said it had been working on for weeks—well before the published commentary.In its updated scientific brief on transmission, the WHO said basically the same thing it has said for months on airborne transmission. That is: the question of whether SARS-CoV-2 lingers in the air is a topic of active discussion, and, while it may be possible in some settings, the data in aerosol transmission so far is inconclusive or unconvincing. But, as always, the WHO welcomes more high-quality research on this topic. In the latest brief, the WHO reviewed recent physics studies looking at aerosol production, but it noted: “the proportion of exhaled droplet nuclei or of respiratory droplets that evaporate to generate aerosols, and the infectious dose of viable SARS-CoV-2 required to cause infection in another person are not known.” It reviewed experiments on droplets and aerosols from normal speech and coughing and concluded, “To date, transmission of SARS-CoV-2 by this type of aerosol route has not been demonstrated; much more research is needed.” Likewise, studies using nebulizers to suspend SARS-CoV-2 in the air “do not reflect normal human cough conditions,” the WHO concluded. The WHO noted that clinical reports of exposed health workers “suggest that aerosol transmission did not occur in this context.” And, the organization added, air sampling in health care settings has been inconsistent in finding genetic traces of the virus.
If the coronavirus is really airborne, we might be fighting it the wrong way - MIT Technology Review - This was the week airborne transmission became a big deal in the public discussion about covid-19. Over 200 scientists from around the worldcosigned a letter to the World Health Organization urging it to take seriously the growing evidence that the coronavirus can be transmitted through the air. WHO stopped short of redefining SARS-CoV-2 (the virus that causes covid-19) as airborne but did acknowledge that more research is “urgently needed to investigate such instances and assess their significance for transmission of COVID-19.” . “It doesn’t take WHO coming out to make a proclamation that it’s airborne for us to appreciate this is an airborne disease. I don’t know how much clearer it needs to be in terms of scientific evidence.” So what does “airborne” really mean in this context? It’s basically an issue of size. We’re pretty sure that SARS-CoV-2 is spread through tiny droplets that contain viral particles capable of leading to an infection. For a virus to be airborne, however, means a few different things, depending on the expert you’re talking to. Typically it means it can spread via inhalation over long distances, perhaps even through different rooms, of small particles known as aerosols. There is also some debate on what we mean by “aerosol.” The droplets that carry viral particles through the air can come in all sorts of sizes, but while the larger ones will drop quickly to the ground or other surfaces, the smaller ones (just a few microns across) can linger in the air for a while, giving them a chance to be inhaled. The word is mostly used to describe these smaller particles, although Brosseau would prefer the term “aerosol transmission” to cover the entire gamut of inhalable viral particles being expelled into the air—large and small alike. If SARS-CoV-2 is airborne, it’s far from the only disease. Measles is notorious for being able to last in the air for up to two hours. Tuberculosis, though a bacterium, can be airborne for six hours, and Brosseau suggests that coronavirus superspreaders (people who seem to eject a larger amount of the virus than others) disseminate the virus in patterns that recall the infectiousness of tuberculosis. The evidence that this type of transmission is happening with SARS-CoV-2arguably already exists. Several big studies point to airborne transmission of the virus as a major route for the spread of covid-19. Other studies have suggested the virus can remain in aerosolized droplets for hours. One new study led by Roy and his team at Tulane shows that infectious aerosolized particles of SARS-CoV-2 could actually linger in the air for up to 16 hours, and maintain infectivity much longer than MERS and SARS-CoV-1 (the other big coronaviruses to emerge this century). Whether the virus is airborne isn’t simply a scientific question. If it is, it could mean that in places where the virus has not been properly contained (e.g., the US), the economy needs to be reopened more slowly, under tighter regulations that reinforce current health practices as well as introducing improved ones. Our current tactics for stopping the spread won’t be enough.
‘Compelling’ evidence air pollution worsens coronavirus – study - There is “compelling” evidence that air pollution significantly increases coronavirus infections, hospital admissions and deaths, according to the most detailed and comprehensive analysis to date. The research indicates that a small, single-unit increase in people’s long-term exposure to pollution particles raises infections and admissions by about 10% and deaths by 15%. The study took into account more than 20 other factors, including average population density, age, household size, occupation and obesity. There is growing evidence from Europe, the US and China that dirty air makes the impact of Covid-19 worse. But the study of the outbreak in the Netherlands is unique because the worst air pollution there is not in cities but in some rural areas, due to intensive livestock farming. This allows the “big city effect” to be ruled out, which is the idea that high air pollution simply coincides with urban populations whose density and deprivation may make them more susceptible to the virus. The scientists are clear they have not proven a causal link between air pollution and worse coronavirus impacts. Conclusive evidence will only come with large amounts of data on individual people, which is not yet available, rather than average data for regions as used in the analysis. But scientists said it was important to do the best research possible as understanding the link may be important in dealing with further Covid-19 outbreaks and could signal where subsequent waves will hit the hardest. Many scientists agree that air pollution is likely to be increasing the number and severity of Covid-19 infections, as dirty air is already known to inflame the lungs and cause respiratory and heart disease that make people more vulnerable. But not all agree that the evidence so far is good enough to demonstrate a large impact.
"Extremely Worrying": Nearly 90% Of Discharged COVID-19 Patients Have Symptoms Two Months After Falling Ill - An Italian study tracking discharged coronavirus patients revealed that nearly 90% of 143 people tracked still have symptoms two months after falling ill, according to the Daily Mail. Almost half reported a worsened quality of life compared to before they were struck with the virus. Experts described the results as 'extremely worrying'. It follows a study this week which suggested almost 10 per cent of patients who lose their sense of taste or smell during Covid-19 don't get it back within a month. -Daily Mail The most common symptoms among those surveyed were shortness of breath, joint pain, chest pain, coughing and loss of smell. Keep in mind that these are people who were sick enough to require hospitalization, while most people who contract coronavirus do not. The study revealed that just 12.6% of discharged patients were completely free of COVID-19 symptoms, while 32% had one or two symptoms and 55% had more than two.More than half (53.1 per cent) of patients still had fatigue, 43.4 per cent shortness of breath, 27.3 per cent joint pain and 21.7 per cent chest pain. -Daily Mail Patients who continue to exhibit symptoms are often referred to as "long haulers," and have taken to internet forums to describe their frustrating 'waves' of COVID-19 symptoms that just won't go away months later. According to Epidemiologist Gideon Meyerowitz-Katz of New South Wales, Australia, the findings are "extremely worrying," though noted on Twitter that many of these symptoms are typical for those recovering from pneumonia - which coronavirus causes in many of those who display symptoms form the disease. Dr Bharat Pankhania, a senior clinical lecturer at the University of Exeter, said the results of the study are 'inconclusive' due to the small size.However, he agreed with the study's authors that 'there may be a Covid-19 disease syndrome and that we must follow it up', The Telegraph reports.It follows a study which suggested one in ten people who lose their sense of taste and smell with the coronavirus may not get it back within a month.A change in smell or taste is now recognised as a tell-tale sign of Covid-19, alongside a continuous cough and fever. -Daily Mail You can read about people's experiences with COVID-19, including many 'long haulers,' here.
Virus immunity in recovered patients may be gone in months, researchers say People who have recovered from COVID-19 may lose their immunity to the virus within months, according to research released this month. The study is the first of its kind examining the antibody levels in confirmed coronavirus patients and evaluating how they change over time. Researchers analyzed immune responses of patients and health care workers at Guy's and St. Thomas’ National Health Service Foundation Trust in London and found that levels of antibodies that destroy the virus quickly declined after peaking several weeks after patients exhibited symptoms. The study found that 60 percent of the patients had a “potent” antibody response at peak of their battle with the coronavirus. After about two months, however, just 16.7 percent of the patients had a potent antibody response. In some cases, the antibody response to the virus later became undetectable. “People are producing a reasonable antibody response to the virus, but it’s waning over a short period of time and depending on how high your peak is, that determines how long the antibodies are staying around,” Katie Doores, lead author on the study at King’s College London, told The Guardian in an interview published Sunday. The findings may impact how governments plan for the next phase of the pandemic and fund vaccine research and development. "This is an important study that starts to define the longer-term dynamics of the antibody response to SARS-CoV-2," Lawrence Young, professor of Molecular Oncology at the University of Warwick, told AFP. “It further emphasizes the need for us to better understand what a protective immune response looks like if we are to develop an effective vaccine," Young added. The professor was not involved in the research. The virus has infected more than 12.9 million people and killed 570,220 people globally, according to data compiled by Johns Hopkins University.
My battle with coronavirus shows why people must take it seriously --Back in April, I wrote a piece for a community newspaper in New York about my bout with the coronavirus. I had first denied that I would get sick since I was in excellent health until I passed out on my kitchen floor and ended in the emergency room at Mount Sinai hospital. It was right before the numbers of cases, hospitalizations and deaths skyrocketed to the dangerous highs of early April.I was diagnosed with a moderate case, kept in a coronavirus unit with oxygen and sent home on my own two days later. After the required seven day quarantine without symptoms, I felt home free and went about my business. So why am I recounting this? Fast forward to the beginning of June. I am over two months in recovery and begin feeling some of the same lethargy, lack of appetite, shortness of breath I had previously experienced. The next day I felt as if I were hit by a truck. I called the doctor and decided to get checked out at an urgent care site the following day. Could the coronavirus have returned? The chest xray at urgent care was inconclusive and the doctor suggested I go over to an emergency room and have my chest scanned. I headed over to the Mount Sinai emergency room with what I thought would be a short visit. So began my journey with a second round of an illness related to the coronavirus. After 24 sleepless hours in the emergency room and a plethora of scans and tests, I was rehospitalized for eight days, put on a steroid and anticoagulant, given oxygen and monitored closely. My body seemed to be playing tricks on me. The conventional wisdom is that once you’ve survived the coronavirus, you have a certain level of immunity with a host of antibodies and are not contagious. I have since discovered otherwise. The slew of doctors at Mount Sinai (attendees, residents, cardiologists, pulmonary specialists and infectious disease experts) had different theories. I tested negative for the coronavirus but had troubling inflammatory markers. The pulmonologist suggested that there was additional lung damage causing the shortness of breath but he didn’t hear any abnormalities when listening to my chest. The doctors had seen a few patients who returned with the coronavirus after a month or so of recovery but had not treated anyone in my situation who was three months post infection and symptomatic again. The consensus was that I had a case of what is called a “post inflammatory syndrome” of the disease. I call it coronavirus redux. The hospital stay where they administered the steroid treatment and monitored my organ markers was more debilitating than my initial bout of the coronavirus. I’m happy to say that my numbers have improved and that I am home recovering and getting my strength back. However, the doctors said the recovery could be slow and last until the fall.
My patient caught Covid-19 twice. So long to herd immunity hopes? - “Wait. I can catch Covid twice?” my 50-year-old patient asked in disbelief. It was the beginning of July, and he had just tested positive for SARS-CoV-2, the virus that causesCovid-19, for a second time — three months after a previous infection.While there’s still much we don’t understand about immunity to this new illness, a small but growing number of cases like his suggest the answer is yes.Covid-19 may also be much worse the second time around. During his first infection, my patient experienced a mild cough and sore throat. His second infection, in contrast, was marked by a high fever, shortness of breath, and hypoxia, resulting in multiple trips to the hospital.Recent reports and conversations with physician colleagues suggest my patient is not alone. Two patients in New Jersey, for instance, appear to have contracted Covid-19 a second time almost two months after fully recovering from their first infection. Daniel Griffin, a physician and researcher at Columbia University in New York, recently described a case of presumed reinfection on the This Week in Virology podcast.It is possible, but unlikely, that my patient had a single infection that lasted three months. Some Covid-19 patients (now dubbed “long haulers”) do appear to suffer persistent infections and symptoms.My patient, however, cleared his infection — he had two negative PCR tests after his first infection — and felt healthy for nearly six weeks.I believe it is far more likely that my patient fully recovered from his first infection, then caught Covid-19 a second time after being exposed to a young adult family member with the virus. He was unable to get an antibody test after his first infection, so we do not know whether his immune system mounted an effective antibody response or not.Regardless, the limited research so far on recovered Covid-19 patients shows that not all patients develop antibodies after infection. Some patients, and particularly those who never develop symptoms, mount an antibody response immediately after infection only to have it wane quickly afterward — an issue of increasing scientific concern. What’s more, repeat infections in a short period are a feature of many viruses, including other coronaviruses. So if some Covid-19 patients are getting reinfected after a second exposure, it would not be particularly unusual.
Mississippi's GOP governor: 'Herd immunity is not anything like a realistic solution' - Mississippi Gov. Tate Reeves (R) threw cold water on the notion of defeating the coronavirus pandemic with “herd immunity,” saying Monday that states’ health systems would be overwhelmed long before reaching that point. Reeves said in a Twitter thread that in Mississippi alone, the hospital system has “started to become stressed to the point of pain” at 36,680 confirmed cases and conservatively estimated that herd immunity would require 40 percent of the population to become infected, which he said would require more than 3,000 new cases daily for the next year. Over the last two weeks, our hospital system has started to become stressed to the point of pain. We are seeing the early signs and effects of it becoming overwhelmed. We had to suspend elective surgeries again. “We would need to TRIPLE our worst day—every day—for a year,” Reeves tweeted. “I’m not one of these guys that immediately dismisses any idea that challenges the expert status quo talking points. I’m pretty skeptical by nature. That’s healthy. But herd immunity is not anything like a realistic solution in the short or mid-term. I wish it was.” Reeves's tweets come shortly after the publication of research suggesting antibody immunity after recovering from the coronavirus may not be permanent. “People are producing a reasonable antibody response to the virus, but it’s waning over a short period of time and depending on how high your peak is, that determines how long the antibodies are staying around,” Katie Doores, lead author on the study at King’s College London, told The Guardian in an interview published Sunday. Mississippi has seen more than 1,200 confirmed coronavirus deaths so far. Last week, 26 state lawmakers tested positive for COVID-19 after an outbreak at the Mississippi Statehouse.
What to Do if COVID-19 Is Here to Stay? - One great unknown about COVID-19 is whether individuals who recover from it can be reinfected. At the emergence of any new virus, it is impossible to know whether immunity is permanent or wanes, until enough time has passed for longitudinal studies to take place. At the moment, and with limited available data, medical scientists and epidemiologists are instead comparing SARS-CoV-2 to related coronaviruses, such as HCoV-HKU1 and HCoV-OC43, which are known to exhibit waning immunity. An early contribution by Kissler et al. (2020) assumed that immunity to SARS-CoV-2 wanes in approximately 45 weeks. A recent medical study (Long et al. 2020) found a significant drop in specific antibody levels after three months. Nevertheless, the duration of immunity in general is still far from understood.. If immunity wanes, the disease will become endemic, in sharp contrast to a model in which recovery confers permanent immunity. This column considers the possibility that immunity is indeed only temporary, and derives a stylised optimal containment policy to reduce the initial wave of contagion and then manage persistent infections. In practice, this means that partial lockdowns and social distancing measures may be the norm for years to come.
A plasma shot could prevent coronavirus. But feds and makers won’t act, scientists say - It might be the next best thing to a coronavirus vaccine. Scientists have devised a way to use the antibody-rich blood plasma of COVID-19 survivors for an upper-arm injection that they say could inoculate people against the virus for months. Using technology that’s been proven effective in preventing other diseases such as hepatitis A, the injections would be administered to high-risk healthcare workers, nursing home patients, or even at public drive-through sites — potentially protecting millions of lives, the doctors and other experts say.The two scientists who spearheaded the proposal — an 83-year-old shingles researcher and his counterpart, an HIV gene therapy expert — have garnered widespread support from leading blood and immunology specialists, including those at the center of the nation’s COVID-19 plasma research. But the idea exists only on paper. Federal officials have twice rejected requests to discuss the proposal, and pharmaceutical companies — even acknowledging the likely efficacy of the plan — have declined to design or manufacture the shots, according to a Times investigation. The lack of interest in launching development of immunity shots comes amid heightened scrutiny of the federal government’s sluggish pandemic response.There is little disagreement that the idea holds promise; the dispute is over the timing. Federal health officials and industry groups say the development of plasma-based therapies should focus on treating people who are already sick, not on preventing infections in those who are still healthy.Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases at the National Institutes of Health, said an upper-arm injection that would function like a vaccine “is a very attractive concept.”However, he said, scientists should first demonstrate that the coronavirus antibodies that are currently delivered to patients intravenously in hospital wards across the country actually work. “Once you show the efficacy, then the obvious next step is to convert it into an intramuscular” shot.
Global COVID-19 registry finds strokes associated with COVID-19 are more severe, have worse outcomes and higher mortality - Acute ischemic strokes (AIS) associated with COVID-19 are more severe, lead to worse functional outcomes and are associated with higher mortality , according to new research published yesterday in Stroke, a journal of the American Stroke Association, a division of the American Heart Association. In "Characteristics and Outcomes in Patients with COVID-19 and Acute Ischemic Stroke: The Global COVID-19 Stroke Registry," researchers analyzed data on patients with COVID-19 and AIS treated at 28 health care centers in 16 countries this year and compared them to patients without COVID-19 from the Acute Stroke Registry and Analysis of Lausanne (ASTRAL) Registry, from 2003 to 2019. Researchers sought to determine the clinical characteristics and outcomes of patients with COVID-19 and AIS. In both patient groups, stroke severity was estimated with the National Institute of Health Stroke Scale (NIHSS), and stroke outcome was assessed by the modified Rankin score (mRS). When AIS patients with COVID-19 were compared to non-COVID-19 patients:COVID-19 patients had more severe strokes (median NIHSS score of 10 vs. 6, respectively);COVID-19 patients had higher risk for severe disability following stroke (median mRS score 4 vs. 2, respectively); and COVID-19 patients were more likely to die of AIS. The researchers noted there are several potential explanations for the relationship between COVID-19-associated strokes and increased stroke severity: "The increased stroke severity at admission in COVID-19-associated stroke patients compared to the non-COVID-19 cohort may explain the worse outcomes. The broad, multi-system complications of COVID-19, including acute respiratory distress syndrome, cardiac arrhythmias, acute cardiac injury, shock, pulmonary embolism, cytokine release syndrome and secondary infection, probably contribute further to the worse outcomes including higher mortality in these patients. ...
Coronavirus and the heart - Lung injury and acute respiratory distress syndrome have taken center stage as the most dreaded complications of COVID-19, the disease caused by the new coronavirus, SARS-CoV-2. But heart damage has recently emerged as yet another grim outcome in the virus’s repertoire of possible complications.COVID-19 is a spectrum disease, spanning the gamut from barely symptomatic infection to critical illness. Reassuringly, for the large majority of individuals infected with the new coronavirus, the ailment remains in the mild-to-moderate range. Yet, a number of those infected develop heart-related problems either out of the blue or as a complication of preexisting cardiac disease. A report from the early days of the epidemic described the extent of cardiac injury among 41 patients hospitalized with COVID-19 in Wuhan, China: Five, or 12 percent, had signs of cardiovascular damage. These patients had both elevated levels of cardiac troponin — a protein released in the blood by the injured heart muscle — and abnormalities on electrocardiograms and heart ultrasounds. Since then, other reports have affirmed that cardiac injury can be part of coronavirus-induced harm. Moreover, some reports detail clinical scenarios in which patients’ initial symptoms were cardiovascular rather than respiratory in nature. The ways in which the new coronavirus provokes cardiac injury are neither that new nor surprising, according to Harvard Medical School physician-scientistsPeter Libby and Paul Ridker. The part that remains unclear is whether SARS-CoV-2 is somehow more virulent toward the heart than other viruses. Libby and Ridker, who are practicing cardiologists at Brigham and Women’s, say COVID-19-related heart injury could occur in any several ways.First, people with preexisting heart disease are at a greater risk for severe cardiovascular and respiratory complications from COVID-19. Similarly, research has shown that infection with the influenza virus poses a more severe threat for people with heart disease than those without cardiac problems. Research also shows that heart attacks can actually be brought on by respiratory infections such as the flu. Second, people with previously undiagnosed heart disease may be presenting with previously silent cardiac symptoms unmasked by the viral infection. In people with existing heart-vessel blockages, infection, fever, and inflammation can destabilize previously asymptomatic fatty plaques inside the heart vessels. Fever and inflammation also render the blood more prone to clotting, while also interfering with the body’s ability to dissolve clots — a one-two punch akin to throwing gasoline on smoldering embers.
Study suggests overall COVID-19 intensive care mortality has fallen by a third since the start of the pandemic - A systematic review and meta-analysis of published studies from three continents published in the journal Anaesthesia (a journal of the Association of Anaesthetists) shows that overall mortality of COVID-19 patients in intensive care units (ICUs) has fallen from almost 60% at the end of March to 42% at the end of May -- a relative decrease of almost one third. The review also shows ICU mortality for the disease is not significantly different across the three continents included: Europe, Asia and North America. The study is by Professor Tim Cook, Consultant in Anaesthesia and Intensive Care Medicine, Royal United Hospitals Bath NHS Foundation Trust, Bath, UK, and School of Medicine, University of Bristol, UK, and colleagues. The authors say: "The in-ICU mortality from COVID-19, at around 40%, remains almost twice that seen in ICU admissions with other viral pneumonias, at 22%." There are, say the authors, several explanations for the findings regarding decreasing ICU mortality over time. They say: "It may reflect the rapid learning that has taken place on a global scale due to the prompt publication of clinical reports early in the pandemic. It may also be that ICU admission criteria have changed over time, for example, with greater pressure on ICUs early in the pandemic surge." They add the findings are also likely to reflect the fact that long ICU stays, for example, due slow weaning from a ventilator, take time to be reflected in the data. Critical illness associated with COVID-19 can last for long periods, with approximately 20% of UK ICU admissions lasting more than 28 days, and 9% more than 42 days. They say: "The important message, however, is that as the pandemic has progressed and all these factors combine, survival of patients admitted to ICU with COVID-19 has significantly improved."
Bad News For Moderna- More Evidence Shows COVID-19 Antibodies Disappear Not Long After Infection - Following trial results released yesterday showing Moderna's vaccine candidate might not be safe for human consumption - apparently, the candidate caused "adverse" reactions in roughly 50% of patients who participated in a recent study - the dozens of companies, universities and governments working on COVID-19 vaccine candidates just received another piece of disheartening news: A growing body of evidence gleaned from research into the virus suggests that antibodies may not offer protection for more than 2-3 months, for many people. Now, a study produced by researchers at King’s College London is showing recovered patients antibodies declined significantly within months of infection, raising the critical question of whether a vaccine could ever provide lasting protection. Moderna's vaccine candidate has shown the capacity to produce antibodies in test subjects, but it's still unclear exactly how much protection this might provide.University of Nottingham Emeritus Professor in Immunology Herb Sewell, who consulted on the study, said it appeared to show that antibodies to the virus disappeared more quickly than antibodies for MERS and other coronaviruses. Viruses like SARS elicited an immune response that lasted at least a couple of years. This suggests that the eventual COVID-19 vaccine might need to be administered every year to offer a reliable level of protection."If the vaccine response drops off like the natural response does, it does mean we’d have to give repeat ones," he said. But that's not set in stone - at least, not yet. As the FT points out, seeing some degree in decline of efficacy is typically expected. That doesn't mean the body won't be able to reproduce those same antibodies even more quickly the next time it is infected.
Pakistan COVID19 Antibodies Study: 90% of Virus Carriers Have No Symptoms - Key Findings:• Survey revealed that 90% of the population who tested COVID-19 positive (screened via serologic test kits) were asymptomatic carriers of the disease, who would have otherwise not presented at a government-approved PCR testing facility.
• If the results of this study are extrapolated to the rest of the population with similar demographics, the total number of active COVID-19 infections in the country would go up to 4.11 million, which is 17.7 times higher than the current official number.
• While these findings are restricted to Pakistan’s urban, adult, working population in various metropolises, they still provide useful insights for guiding public health practices across the country.
• This is a groundbreaking research which can improve Pakistan’s public health response to COVID-19 by increasing testing capacity and ensuring that the true prevalence of the disease is captured via cost-effective methods, thereby reducing the burden on an already exhausted healthcare system.
Symptom tracker app reveals six distinct types of COVID-19 infection - (Reuters) - British scientists analysing data from a widely-used COVID-19 symptom-tracking app have found there are six distinct types of the disease, each distinguished by a cluster of symptoms. A King’s College London team found that the six types also correlated with levels of severity of infection, and with the likelihood of a patient needing help with breathing - such as oxygen or ventilator treatment - if they are hospitalised.The findings could help doctors to predict which COVID-19 patients are most at risk and likely to need hospital care in future waves of the epidemic.“If you can predict who these people are at Day Five, you have time to give them support and early interventions such as monitoring blood oxygen and sugar levels, and ensuring they are properly hydrated,” said Claire Steves, a doctor who co-led the study.Besides cough, fever and loss of smell - often highlighted as three key symptoms of COVID-19 - the app data showed others including headaches, muscle pains, fatigue, diarrhoea, confusion, loss of appetite and shortness of breath. The outcomes also varied significantly; some got mild, flu-like symptoms or a rash and others suffered acute symptoms or died. The study, released online on Friday but not peer-reviewed by independent scientists, described the six COVID-19 types as:
- 1 ‘Flu-like’ with no fever: Headache, loss of smell, muscle pains, cough, sore throat, chest pain, no fever.
- 2 ‘Flu-like’ with fever: Headache, loss of smell, cough, sore throat, hoarseness, fever, loss of appetite.
- 3 Gastrointestinal: Headache, loss of smell, loss of appetite, diarrhoea, sore throat, chest pain, no cough.
- 4 Severe level one, fatigue: Headache, loss of smell, cough, fever, hoarseness, chest pain, fatigue.
- 5 Severe level two, confusion: Headache, loss of smell, loss of appetite, cough, fever, hoarseness, sore throat, chest pain, fatigue, confusion, muscle pain.
- 6 Severe level three, abdominal and respiratory: Headache, loss of smell, loss of appetite, cough, fever, hoarseness, sore throat, chest pain, fatigue, confusion, muscle pain, shortness of breath, diarrhoea, abdominal pain.
U.S. CDC head says mask-wearing could get COVID-19 under control within 4-8 weeks (Reuters) - U.S. Centers for Disease Control and Prevention (CDC) Director Robert Redfield said on Tuesday that if all Americans wore a mask, the rising cases of COVID-19 could be under control within four to eight weeks. Redfield was speaking in an online interview with the Journal of the American Medical Association, or JAMA, a medical publication. “I think if we can get everyone to wear masks right now, we can bring this under control within four, six, eight weeks,” Redfield said. The CDC director also said wearing a mask was a public health issue and that he was “sad” to see it become so politicized. “I am glad to see the president and vice president wear a mask. Clearly, in their situation they could easily justify they don’t need to ... but we need for them to set the example,” Redfield said.
Dog In Texas Confirmed Covid-19 Positive -- A dog in North Texas was confirmed positive for Covid-19, becoming the first dog in Texas to test positive for it, though experts do not recommend regular animal Covid-19 testing and pets are not considered a major threat for spreading the disease. The domestic canine was tested for Covid-19 as a precautionary measure after its owners were confirmed positive for the disease, according to the Texas Animal Health Commission. “Based on current knowledge, there is no evidence that pets play a significant role in spreading SARS-CoV-2 to people,” said Dr. Andy Schwartz,the Texas State Veterinarian, echoing the Centers for Disease Control and Prevention guidance.The two-year-old dog, who lives in Tarrant County, remains healthy. TAHC and CDC do not recommend routine Covid-19 testing for animals, but do recommend that pet owners with Covid-19 “resist contact” with their pets and other animals, including “petting, snuggling, being kissed or licked, and sharing food or sleeping in the same bed.” The Texas dog is the fifth canine in the U.S. to test positive for Covid-19—the others were confirmed positive in June in New York and Georgia, according to the United States Department of Agriculture. In addition to the dogs, five cats, one lion and one tiger have tested positive for the disease in the United States. In a study of domestic pets and Covid-19, researchers concluded dogs are less susceptible to the disease than cats and other animals, per Nature. The researchers found ferrets to be highly susceptible to the disease, reports Nature, which could make them promising subjects for vaccine and therapeutic testing.
30-year-old dies after Texas 'COVID party,' thought coronavirus was a hoax - -- A San Antonio doctor said one of her hospital's patients, a 30-year-old man, died after attending a so-called "COVID party" -- a bizarre trend where young people intentionally get together with someone who's infected. Dr. Jane Appleby, chief medical officer for Methodist Hospital and Methodist Children's Hospital, said the patient thought the coronavirus pandemic was a hoax. "He thought he was young and he was invincible and wouldn't get affected ... One of the things that was heart-wrenching that he said to his nurse was, 'I think I made a mistake,'" she said. Many who attend "COVID parties" are competing to see who can catch the virus first. During events reported in Alabama, some college students even gambled money to give to the "winner," the one who catches COVID-19 first. Appleby said she is seeing more and more coronavirus patients in their 20s and 30s. She said she shared the story not to scare people, but to make sure they understand that the virus can affect anyone. On Friday, Texas surpassed 10,000 hospitalized patients for the first time, capping a week of grim markers that also saw the state exceed 10,000 new cases in a single day. And it has been the deadliest week of the pandemic in Texas, with 95 new deaths reported Friday.
Houston hospitals overwhelmed with COVID-19 patients as Texas continues to reopen - Houston, Texas has the highest number of COVID-19 cases and related deaths in the state, with 43,939 infections and 455 deaths. Dallas, Texas’ second-largest city, is in second place. Statewide, COVID-19 cases stand at 258,658, making up around 8 percent of total infections in the country. Texas continues to set new records in terms of those catching and dying from the disease on a weekly basis. Scenes familiar to what was witnessed in New York in the spring are appearing in Houston. At HCA Northwest Hospital, a refrigerator container truck is parked outside the hospital in preparation for overwhelmed morgues. Emergency rooms and ICUs are packed. The average daily rate of new hospitalizations due to COVID-19 was 360 at the Texas Medical Center hospitals in Houston, almost double the rate from two weeks ago. This is the context of the murderous back-to-work campaign being pursued by Texas Governor Greg Abbott, who conceded in a leaked May 1 meeting that reopening would “ipso facto” cause an increase in COVID-19 cases. An executive order that mandates masks and a $250 fine for those not wearing them was signed by Abbott and went into effect on July 3, in an attempt to cover up his criminal role in facilitating the spread of the disease. The governor previously forbade mayors and local governments from requiring the wearing of masks and then quickly rolled back shutdown measures. The warning made by health professionals and scientists around the world that governments should not reopen too early and that masks are insufficient to prevent disease spread is being vindicated in real time. In an interview with a KLBK TV reporter on July 10, Abbott stated that “things will get worse” in relation to the virus. When questioned about what he would do if the mask mandate was “not enough to make a difference soon,” Abbott responded that “the next step would be a lock-down.” In Harris County, which is in the Houston area and the third most populous county in the country, South East Texas Regional Advisory Council numbers show 1,580 ICU beds out of 1,614 total are in use. In short, there are just 34 beds remaining for the whole county. According to numbers obtained by ProPublica and NBC, as of Thursday, overflow patients are receiving treatment in emergency rooms. Emergency rooms are neither equipped nor staffed with the specialized personnel required to handle illnesses like COVID-19, which can require an extended period of treatment and special equipment. Rather, they are primarily used to stabilize patients so they can then be sent to the relevant hospital department.
Texas reports record highs for daily coronavirus cases, deaths - Texas has set two grim records, setting new marks for the number of single-day deaths and new COVID-19 cases, as the Lone Star State continues to get rocked by a resurgence of the pandemic. The state reported 110 deaths and 10,791 new cases of the virus on Wednesday, bringing its total number of cases during the pandemic to 282,365. It was the second consecutive day that Texas broke its record for daily number of new cases. Texas was one of the first states to reopen its economy amid the pandemic, but the recent spike in cases forced Gov. Greg Abbott (R) to reinstate restrictions, including re-shuttering bars. Additionally, the governor has made it mandatory for most Texans to wear masks while in public. Wednesday was the sixth day in a row where the state has reported over 10,000 active COVID-19 hospitalizations. Because of the rising hospitalization numbers, Abbott announced that the Department of Defense was a sending a medical task force to the Rio Grande Valley to provide additional support to the hospitals there. "I am grateful to our federal partners at the Department of Defense for sending these teams to the Valley and working within the community to protect public health and combat this virus," Abbott said in a statement. "These teams, coupled with our newly established partnership with local hotels, will aid in our efforts to slow the spread of COVID-19 and ensure adequate hospital capacity in the Valley." The Rio Grande Valley is almost out of ICU beds, reporting just 14 available beds on Wednesday.
Coronavirus deaths take a long-expected turn for the worse — A long-expected upturn in U.S. coronavirus deaths has begun, driven by fatalities in states in the South and West, according to data on the pandemic. The number of deaths per day from the virus had been falling for months, and even remained down as states like Florida and Texas saw explosions in cases and hospitalizations — and reported daily U.S. infections broke records several times in recent days. Scientists warned it wouldn’t last. A coronavirus death, when it occurs, typically comes several weeks after a person is first infected. And experts predicted states that saw increases in cases and hospitalizations would, at some point, see deaths rise too. Now that’s happening. “It’s consistently picking up. And it’s picking up at the time you’d expect it to,” said William Hanage, a Harvard University infectious diseases researcher. According to an Associated Press analysis of data from Johns Hopkins University, the seven-day rolling average for daily reported deaths in the U.S. has increased from 578 two weeks ago to 664 on July 10 — still well below the heights hit in April. Daily reported deaths increased in 27 states over that time period, but the majority of those states are averaging under 15 new deaths per day. A smaller group of states has been driving the nationwide increase in deaths. California is averaging 91 reported deaths per day while Texas is close behind with 66, but Florida, Arizona, Illinois, New Jersey and South Carolina also saw sizable rises. New Jersey’s recent jump is thought to be partially attributable to its less frequent reporting of probable deaths. Rublas Ruiz, a Miami intensive care unit nurse, recently broke down in tears during a birthday dinner with his wife and daughter. He said he was overcome by the number of patients who have died in his care. “I counted like 10 patients in less than four days in our ICU and then I stopped doing that because there were so many,” said the 41-year-old nurse at Kendall Regional Medical Center who lost another patient Monday. The virus has killed more than 130,000 people in the U.S. and more than a half-million worldwide, according to Johns Hopkins University, though the true numbers are believed to be higher. Deaths first began mounting in the U.S. in March. About two dozen deaths were being reported daily in the middle of that month. By late in the month, hundreds were being reported each day, and in April thousands. Most happened in New York, New Jersey and elsewhere in the Northeast.
With Covid-19 Deaths on the Rise, Hardest-Hit States Report Hospitals are Near Capacity Following Early Reopenings - Following weeks of warnings from public health experts regarding the dangers of allowing the public into bars, restaurants, and other enclosed spaces while coronavirus case numbers continue to rise in several states, hospitals in two of the hardest-hit states showed signs that the pandemic has spun out of control in the United States’ current epicenters. According to Florida’s Agency for Health Care Administration, 85% of the state’s intensive care unit (ICU) beds were full as of Saturday morning. Fewer than 1,000 beds are currently available for patients who become critically ill with Covid-19 in a state where more than 11,000 new cases were reported on Friday. More than 9,000 new cases and 421 new hospitalizations were reported on Saturday.Across the country, in Arizona, 90% of ICU beds were reported to be full according to The Guardian. “We will have hospitals overwhelmed and not only in terms of ICU beds and hospitals—and that’s bad—but exhausted hospital staff and hospital staff that [are] getting ill themselves,” Hotez said. “So, we won’t have enough manpower, human power, to manage all of this.” In Florida, at least 52 hospitals are currently at full capacity in their ICU’s, but Gov. Ron DeSantis, a loyalist to President Donald Trump who began pushing to reopen the state’s economy in early May, downplayed the situation. “There’ll be articles saying, ‘Oh, my gosh. They’re at 90 percent,'” DeSantis said at a press conference Friday. “Well, that’s how hospitals normally run.” As tens of thousands of people in Florida became ill over the past two days, the state reopened Walt Disney World, one of its top tourist attractions, while DeSantis stressed the importance of schools reopening in the fall. DeSantis was forced on June 26 to direct bars to shut down again as case numbers skyrocketed, nearly two months after he began the process of reopening. But grim new statistics across the state indicated that the effects of the early reopening are coming to light now. Florida was among several states which recently saw significant increases in their seven-day averages for coronavirus deaths, according to Johns Hopkins University. In Arizona on Friday evening, some morgues reported that they were near capacity, with Maricopa Office of the Medical Examiner saying it was 97% full. Phoenix Mayor Kate Gallego, a Democrat, criticized Republican Gov. Doug Ducey’s decision to begin reopening the state in mid-May. “We opened way too early in Arizona. We were one of the last states to go to stay at home and one of the first to reemerge, and we reemerged at zero to 60,” Gallego told ABC News. “We had crowded nightclubs handing out free champagne, no masks. Our 20- to 44-year-olds, which is my own demographic, really led the explosion, and we’ve seen such growth in that area.”
Hospitals are running out of staff, supplies, and beds for Covid-19 patients — and this time could be worse -If hospitalizations continue to rise, health care workers in Arizona, Texas, and California fear they’ll be completely overwhelmed. With Covid-19 hospitalizations steadily approaching a record high in the US, states like Arizona have activated emergency plans and requested refrigerated trucks to prepare for overflow at morgues. Doctors there say packed emergency rooms and ICUs are forcing them to prioritize the sickest patients, leaving other ill patients to deteriorate while waiting for care they’d ordinarily receive right away. Hospitals in hot spots across the country are expanding and even maxing out their staff, equipment, and beds, with doctors warning that the worst-case scenario of hospital resources being overwhelmed is on the horizon if their states don’t get better control of the coronavirus. “With Covid, a lot of times people who aren’t sick enough yet get pushed to the back, and then they can become really, really sick unfortunately because we were focusing our efforts on the people who are on the brink of death,” an emergency room doctor at the Banner Health system in the Phoenix metro area, who asked to go unnamed fearing retaliation from his employer, told Vox. Other doctors in Arizona, where 88 percent of hospital beds statewide were in use Tuesday, say the scarcity of resources means they’ll soon be rationing medical care, as doctors in Italy were forced to do. It’s not just Arizona. Doctors and hospital experts in Texas and Southern California say capacity is a major concern for them as well, particularly if new daily cases keep rising. Several counties in California are facing major outbreaks of the virus, with hospital resources stretched thin to care for the sickest patients. Hospital organizations in Florida say facilities there can still expand capacity if needed. But they, like other hot spot hospitals, are starting to cut back on elective surgeries and procedures — leading them to furlough staff in some cases to compensate for massive losses in revenue — to accommodate the rising tide of Covid-19 patients.
Refrigerated trucks requested in Arizona, Texas as morgues reach capacity amid COVID-19 surge -- Some Arizona and Texas counties are running out of space in their morgues and have put out calls for refrigerated trucks in which to store bodies and help take some pressure off of local medical examiners’ offices.A long-expected upturn in U.S. COVID-19 deaths across the U.S. has begun, driven by fatalities in states in the South and West. The number of deaths per day from the virus had been falling for months, and even remained down as states like Florida and Texas saw explosions in cases and hospitalizations — and reported daily U.S. infections broke records several times in recent days.Scientists warned it wouldn’t last. A coronavirus death, when it occurs, typically comes several weeks after a person is first infected. And experts predicted states that saw increases in cases and hospitalizations would, at some point, see deaths rise too. Now that’s happening.In hard-hit Houston, Texas, two top Democratic officials called for the nation’s fourth-largest city to lock back down as area hospitals strained to accommodate the onslaught of sick patients.As COVID-19 deaths rapidly increase in Texas and Arizona, the two emerging hot spots of the novel coronavirus are facing a similar scenario to New York’s experience during the onset of the pandemic in March.In Arizona, one Phoenix hospital has called for morgue trucks to help alleviate a rapidly growing death count due to the ongoing pandemic. A spokesperson for Abrazo Health told FOX 10 Phoenix that while its hospitals currently have adequate morgue space, the state has asked hospitals to implement emergency plans."Abrazo hospitals currently have adequate morgue space. The state has requested that hospitals implement their emergency plans. Part of activating our plan includes the ability to handle overflow morgue capacity if needed. Abrazo has taken a proactive approach by ordering refrigerated storage in the event it may be needed during a surge of COVID patients," the spokesperson said. The Maricopa County Medical Examiner's Office is also making preparations for an influx in corpses amid a COVID-19 surge in Arizona."Our planners at Unified Command are moving toward acquiring coolers and staffing because Office of the Medical Examiner is currently near capacity for body storage. This is a situation that occurs almost every summer and is further complicated by the current pandemic," a statement from the medical examiner’s office said. The Arizona Department of Health Services said that 671 COVID-19 patients were on ventilators and 936 were occupying ICUs as of July 12. Hospitals were hovering around 90% capacity, according to FOX 10.
1,000 inmates at Texas federal prison test positive for COVID-19 - A North Texas federal prison has more than 1,000 inmates with COVID-19, one of whom has died from the virus, NBC News reports. According to the report, the Federal Correctional Institute at Seagoville has 1,798 inmates total and at least 1,072 have tested positive for coronavirus. One inmate, 65-year-old James Giannetta, died Thursday after testing positive June 26, NBC reports. He experienced shortness of breath and spent time on a ventilator. He reportedly had pre-existing conditions. Giannetta was in prison on a drug charge and a conspiracy to launder money charge. According to the Federal Bureau of Prisons, the high count makes the Federal Correctional Institute at Seagoville home of the largest coronavirus outbreak of any US federal prison. Familes of prisoners told NBC News that inmates have complained that the prison is facing deteriorating conditions and air conditioning systems don't work properly. 85 infants test positive for COVID-19 in Texas county amid alarming... FDA gives green light on 'pool testing' to increase diagnostic... Overall, 3,600 federal inmates and more than 300 prison staff throughout the country have tested positive for COVID-19. Thousands of inmates have also recovered from the virus and 97 inmates and one employee have died. The news Friday comes as correction facilities have become a hot spot for the virus, which spreads easily in closed spaces. Many have expressed concern that inmates are not protected from COVID-19 and some states, such as California, have taken measures to reduce their inmate population to prevent the virus from spreading. Tensions over the issue escalated to the point that a riot broke out at a New Mexico jail on Monday, as prisoners demanded better coronavirus testing capabilities and were angry over a reduction in hot meals due to a lack of kitchen staff.
85 infants test positive for COVID-19 in Texas county amid alarming spike - Eighty-five infants tested positive for the coronavirus this week in a Texas county amid an alarming spike in cases in the state. Nueces County’s public health director said at a meeting Friday that a review of the county’s coronavirus data unveiled the startling statistic. 1,000 inmates at Texas federal prison test positive for COVID-19 New York's coronavirus hospitalizations fall to lowest number since... “These babies have not even had their first birthdays yet,” Annette Rodriguez said. “Please help us to stop the spread of this disease. Stay social distanced from others; stay protected. Wear a mask when in public and for everyone else, please do your best to stay home.” The statistics comes as Texas experiences a surge in coronavirus cases, recording 10,000 new cases per day for several days in a row this week. Gov. Greg Abbott (R) has issued a statewide mask mandate to try to blunt the spread of the pandemic. Texas is one of several states, mostly across the south and west, to see spikes in cases after initially flattening the curve, raising fears of a broader, nationwide outbreak later in the year and renewing worries of a second economic downturn.
Florida reports 15,000 new coronavirus cases, smashing national record -- Florida on Sunday reported more than 15,000 new coronavirus cases, smashing the daily record reported by any single state and once again putting an international spotlight on a place that does not have the virus under control. The eye-popping topline figure does come with some caveats. The Florida Department of Health received 135,992 results from people who have never been tested before, and 15,299 of those tests came back positive for Covid-19. The positivity rate of new infections was 11.25 percent, which is at least a two-week low and down significantly since the state’s record high of 18 percent reported on Wednesday. Still, public health experts express concern about positivity rates over 10 percent, a number Florida has not dipped below since June 23. In responding to the new numbers, Gov. Ron DeSantis’ administration has continued its messaging strategy of putting them in a positive light, an approach that has increasingly drawn criticism as Florida has emerged as one of the biggest virus hot spots in the world. “Florida COVID positive cases decline for a third day in a row to 11.25% despite a record 142,981 tests results returned in a single day,” tweeted DeSantis’ communications director, Helen Aguirre Ferré, using a figure that includes those who have been tested multiple times. “Average age of those testing positive also decreased: 38 years old.” DeSantis has routinely turned to the median age of new positive cases to downplay the recent spike because, his administration says, younger people often show fewer symptoms and rarely require hospitalization, which means less of a strain on the state’s health care infrastructure. Left unacknowledged, however, is an increasing toll on state hospitals, especially those in South Florida, which is seeing the state’s biggest surge in new cases. On Friday for the first time, the DeSantis administration released current hospitalization numbers, which showed 6,974 patients hospitalized with coronavirus as their primary diagnosis, a number that jumped to 7,507 on Sunday.
Florida sees one-day high of 15,300 COVID-19 cases as pandemic inundates health care infrastructure - The coronavirus has infected over 13 million people globally, adding another million cases in less than five days. The world has seen over 200,000 daily cases five days running. Global deaths have also consistently stayed over 5,000 in the same period. Regardless of the factors that have been cited for decreasing case fatality rates—younger age, improved treatments, more testing capacity—by all accounts, international health agencies are bracing themselves for grim developments. Fatalities always lag behind cases by two to four weeks. The pandemic in the United States has qualitatively shifted in a dangerous direction, growing unimpeded by the lack of any meaningful effort by federal, state and local officials to contain, let alone curtail, its trajectory. Since June 14, the number of daily cases has tripled, with sustained rates of over 60,000 per day. As had been predicted, the fatality rate, after reaching its seven-day average low of 516 daily deaths on July 5, in less than a week has grown by 40 percent to 723 deaths per day. Florida shattered the record for a one-day high of 15,300 cases on Sunday, beating out previous one-day highs set by California last Wednesday at 11,694 and New York’s 11,571 on April 15. On July 9, Texas reported 11,394 cases. On Friday, Georgia set a one-day high of 4,484 cases. Wisconsin recorded a one-day high of 926 cases on Saturday, with COVID-19 cases almost quadrupling since mid-June. Similar spikes in new cases have been reported in Idaho, Oklahoma, Tennessee and West Virginia. Florida’s positive test rates have climbed from 5 percent last month to 19 percent. Yet the peak of hospitalizations remains weeks away. Advent Health’s CEO Terry Shaw said on “Face the Nation” that the situation is very stressful, but continued with his businesslike demeanor to promote and tout his facilities’ capabilities. He chose not to use the opportunity to demand the state be shut down, instead emphasizing the need for more personal responsibility. He did admit that Advent’s intensive care unit (ICU) capacity was running as high as 90 percent. Advent has over 30 facilities in the state. Questioned on the opening of Disney’s theme park, Shaw merely said he was confident of Disney’s ability to operate safely and that he was a Disney season ticket holder. In the face of the massive number of cases in Florida, Governor Ron DeSantis dared to push for the reopening of schools in just a few short weeks, stating, “I’m confident if you can do Home Depot, if you can do Walmart, if you can do these things, we absolutely can do schools.” Clearly, schools and children are the equivalents of markets and commodities.
Florida Sets Coronavirus Death Record, Hours After Gov. DeSantis Said State Had ‘Stabilized’ - Florida set a new record for coronavirus deaths Tuesday, one of several metrics that show the state’s coronavirus crisis is still getting worse, even as Gov. Ron DeSantis claimed at a news conference Monday afternoon that the state’s situation had “stabilized.” Florida reported 132 deaths Tuesday, a massive increase from the 35 new deaths the state added on Monday and breaking the old daily record of 120, set on July 9. The key metric DeSantis said showed the state had “stabilized,” which is the rate of tests coming back positive, also took a big jump in the wrong direction. On Tuesday, the positivity rate rose back above 15%, reversing what had been a trend of decline, and far above Monday’s rate, which was below 11.5%. The median age of infection is another statistic DeSantis has continually cited to support his argument that the public health crisis in the state is overblown, but that, too, is headed in the wrong direction. That age has now risen to 41—the highest number the state has reported since it started publicly releasing the statistic on a daily basis, beginning in mid-June, and hospitalizations are on the rise. There were 9,261 new cases reported in Florida on Tuesday, which is a decrease from recent days and far below Sunday’s national record of over 15,000, but there were also fewer tests reported Tuesday than any day since July 8. Florida is now one of the main contributors to the surge in U.S. cases, and new cases in the state are surpassing even what New York had reported at the pandemic’s height there in March and April. The state was one of the most aggressive in its economic reopening, but all bars in Florida have been ordered to close once again. Unlike many other states with a spike in cases, though, DeSantis has not mandated mask-wearing statewide and ignored questions about a mask mandate at the news conference Monday. The southern part of the state, particularly Miami-Dade County, has been the hardest hit by the virus. County Mayor Carlos Giménez appeared alongside DeSantis at the news conference Monday, but took a much more sober tone, warning that there will be further closures of businesses if current trends continue.
Almost one-third of Florida children tested are positive for the coronavirus -Florida health officials have identified a troubling trend; approximately 31 percent, or one-third, of children in Florida tested for COVID-19 yield positive results, according to the Sun Sentinel. State data indicates that out of 54,022 Florida children tested, 31.1 percent have returned positive results on average. This is higher than the statewide positivity rate, which reads in at about 11 percent. Aside from the staggering figure indicating the transmission of the virus, health experts fear it can cause potential lifelong damage in children. Alina Alonso, the health department director of Palm Beach County, reportedly told county commissioners on Tuesday that the long-term consequences of coronavirus in children are unknown. Alonso described X-rays that reveal damage caused to human lungs by the coronavirus, even for people without severe symptoms. “They are seeing there is damage to the lungs in these asymptomatic children. ... We don’t know how that is going to manifest a year from now or two years from now,” Alonso told reporters. “Is that child going to have chronic pulmonary problems or not?” Throughout the pandemic, children have largely been exempt from severe COVID-19 infections, despite the recently discovered pediatric multisystem inflammatory syndrome that occurred in a small number of children who were exposed to the virus. Similar to the inflammatory illness Kawasaki Disease, the U.S. Centers for Disease Control and Prevention (CDC) issued an alert and guidance page for children exhibiting symptoms. “We are learning something every day,” said Jorge Perez, who co-founded Kidz Medical Services and operates pediatric offices throughout South Florida. “We have to be knowledgeable about this and continue to monitor to see what effects it has in children.” This comes as states determine whether in-person education will resume in the fall. Outside of potentially hazardous consequences of a coronavirus infection to children, asymptomatic carriers pose a threat to teachers and other staff, who are demographically more likely to have a severe infection.
Florida Alone Just Exceeded the Entire U.K. in Confirmed Coronavirus Cases - Health officials in Florida reported on Wednesday that more than 10,000 additional residents had tested positive for the coronavirus in the past 24 hours, bringing the state's total to 301,810.The state now has more virus cases than the 291,911 reported in the entire United Kingdom, a statistic only two other U.S. states—California and New York—reached in mid-July. Though the states' case numbers are higher, their combined number of virus deaths is still thousands below that in the U.K., which had reported 45,053 deaths as of Wednesday.According to data compiled by Johns Hopkins University, the number of cases in Florida also exceeds those in all countries except Brazil, India, Russia, Peru, Chile and Mexico. The U.S. has more virus cases than any other country in the world, with more than 3.4 million reported by Wednesday. Florida surpassed 300,000 total cases just one day after recording its highest number of COVID-19 deaths in a single day, with more than 4,500 deaths reported statewide by Wednesday. State health officials over the past several weeks have reported thousands of new cases every day. Officials added a record 15,300 new cases to the state's tally this past Sunday, which broke a record New York set in April for the most new cases a single state reported in one day.
Florida temporarily shutters emergency operations center after 12 employees contract COVID-19 -- Officials in Florida were forced to shutter the Division of Emergency Management's operations center Thursday due to an outbreak of coronavirus. The Tampa Bay Times reported that 12 staffers in the building have tested positive for COVID-19, and were self-quarantining. The rest will reportedly vacate the building as it is deep-cleaned, according to the Times."We’ve been conducting biweekly testing at the EOC for several weeks & mandated masks. The Division has had several positives throughout that period. Those individuals have been isolated while we continue to test. We also instituted teleworking at the EOC & remain at a level 1," the agency said on Twitter.We’ve been conducting biweekly testing at the EOC for several weeks & mandated masks. The Division has had several positives throughout that period. Those individuals have been isolated while we continue to test. We also instituted teleworking at the EOC & remain at a level 1.— FL Division of Emergency Management (@FLSERT) July 16, 2020"The safety of my employees and their families is paramount. It is why we have had aggressive screening, temperature checks, since February, Mandatory masks and testing. We will continue to operate and respond throughout this period," added Jared Moskowitz, the agency's director. "We are all in this together." Florida has emerged as an epicenter of new U.S. coronavirus infections in recent days as a surge of hospitalizations and new casesthreaten to overwhelm hospitals across the state.
Giveaways created a poverty sinkhole. Then the virus hit -- --Coronavirus infections have been spiking for weeks in Louisiana's northernmost big city, as they have across the South and West, from Florida to Arizona. At 61, Lynch is afraid that her respiratory disease and other health problems leave her vulnerable as the Southeast shatters daily records for new cases. "I just know people have been dying," she says of her neighbors in western Shreveport. The COVID-19 mortality rate in Louisiana was on a downward slope for most of May and June. But the state's case numbers are approaching new highs, and the daily death toll is ticking up again. Lynch has lived in Shreveport's Mooretown neighborhood for almost four decades. Since April, it's been a hot spot for the virus along with an area to the northeast, Queensborough. Many of the residents of the mostly Black neighborhoods are impoverished, and their homes encircle an oil refinery. Pipes and rail cars cut across the Calumet refinery grounds a short walk from Lynch's front door. The 240 acres of flares and storage tanks are a hub for moving gasoline, diesel and jet fuel into the Louisiana, Texas and Arkansas markets. The century-old industrial site is a constant for everyone here. For years, Lynch has blamed its pollution for the breathing problems that cause her to rely on an oxygen tank. Louisiana saw a staggering growth rate of novel coronavirus cases starting in the spring. It stood out on the U.S. map, even as rocketing case numbers and dire hospital bed and equipment shortages in New York consumed national attention. By the end of March, Shreveport, the state's third-largest city after New Orleans and Baton Rouge, would be nearly shut down by the pandemic.
Southeastern US experiencing harrowing rise in coronavirus infections - More than 3.5 million Americans have been infected by the coronavirus and more than 139,000 have died. The Southeastern states have seen sharp spikes in the rates of infection, hospitalization, and death due to the coronavirus in the last month and a half. Young or old, black or white, COVID-19 knows no boundaries. The outbreak poses particular risk to meat processing and factory workers, teachers and students, and hospital staff. From June 1 to July 10, South Carolina reported a mortifying 436.5 percent increase in newly reported cases in the 21-30-year-old age group. Dr. Joan Duwve, director of public health for the Department of Health and Environmental Control (DHEC) has reported that 42 percent of the coronavirus cases in South Carolina to date have been reported in the past two weeks. The state reports a 75 percent ICU bed utilization rate along with a 25 percent utilization rate of ventilators. Coronavirus patients represent less than 20 percent of all hospitalizations, yet they utilize the greatest amount of resources. On Tuesday, the Mississippi Department of Health (MSDH) reported 862 new cases and 23 additional deaths. The MSDH reports that 805 Mississippians are currently hospitalized across the state with coronavirus infections, an increase of 119 from the previous high of 686 reported on July 9. Mississippi reported 1,092 cases on June 25, the highest one-day total in the state during the pandemic. The state’s current total of coronavirus cases is 37,542 with 1,272 deaths. Meanwhile, Arkansas has a current total of 29,733 cases of coronavirus and 323 deaths. The hospital system in Arkansas is being stretched to its limits on resources and bed occupancy In Alabama, 57,255 people are confirmed to have contracted COVID-19 and 1,164 have died. The number of confirmed cases has been rising by more than 1,000 for the last week. The Tennessee Department of Health (TDOH) reported an additional 1,514 cases on Monday, bringing the state's total to 66,788. TDOH officials also included in their report 38,272 recoveries, 767 deaths, and 3,378 hospitalizations. On Friday, ICU beds were at over 80 percent occupancy, while on July 8, that number was at 75 percent occupancy, and 72 percent on July 7. In addition to ICU beds decreasing in availability, overall available hospital bed occupancy increased from 73 percent on July 7 to 82 percent on Friday. The North Carolina Department of Health and Human Services (NCDHHS) reports that 89,484 people in the state have tested positive for the coronavirus, with 1,552 deaths and 1,109 hospitalizations. According to the NCDHHS, 78 percent of ICU beds were occupied as of Friday, for which the total of hospitalizations in the state sat at 1,046, surpassing the previous record of 1,034 reported at the day before, marking the fifth record-breaking day in a row. The Louisiana Department of Health (LDH) recorded the second highest single-day increase on Friday, seeing 2,600 new cases. This was the highest increase of cases in a 14-day observational period. As hospitalizations continue to rise, increasing from 75 to 1,362 people, 146 patients in the state are now on ventilators. The LDH reported a total of 82,042 cases Tuesday—an increase of 7,346 from Thursday—along with 3,337 deaths since the first cases were diagnosed in March. On Tuesday, the Georgia Department of Public Health (GDPH) reported 123,963 confirmed cases of coronavirus, a 9,562 increase from Sunday, 2,662 ICU admissions, and 3,054 deaths. The number of available hospital beds to treat critically ill patients afflicted with COVID-19 is dropping across the state as more and more cases are reported. Statewide, 13,685 people are currently hospitalized due to COVID-19.
Young people are increasingly driving COVID-19's spread - Younger Americans eager to get back to their social lives are increasingly responsible for the spread of the coronavirus, risking their own health and that of their family and friends under what health experts say is the misguided impression that the virus cannot cause them harm. Health departments across the country are reporting that younger people are making up larger shares of the total number of those infected with the virus. The greater infection rates among young people are occurring both in states that are getting a handle on their outbreaks and those that are not. “In these trends, we are seeing the impact of our collective decisions. We are jeopardizing the gains we made as a state,” Washington state Health Secretary John Wiesman said Friday, pointing to an increase in hospitalizations among people between the ages of 20 and 39. “[T]he actions each one of us takes now will determine what happens next.” In early June, just 10 percent of those who tested positive in Rhode Island were in their 20s. By the end of the month, that share had doubled. The average age of a Rhode Islander who tests positive fell from 47.5 years old to 39.2 years old in a week. Maryland Gov. Larry Hogan (R) said this week the percentage of those under 35 testing positive for the virus is now 84 percent higher than it is for those over 35. In New Mexico, 44 percent of those who are testing positive for the virus are under 30 years old, according to state health data. In Illinois, there are more infections among people aged 20-29 than among any other age group. In California, those in their 20s make up the largest cohort of cases, followed closely by people in their 30s. “There is a sense that a lot of young people, you’re young, think you’re invincible,” California Gov. Gavin Newsom (D) said at a June 24 press briefing. “That can be a selfish mindset.” There are signs, too, that even children are vulnerable to the disease. More than 10 percent of confirmed cases in Arizona, Washington and Tennessee are among those under the age of 20, an analysis by Bloomberg found.
Hundreds of workers infected and four dead from COVID-19 at Los Angeles sweatshop - After months of reports and formal complaints filed by workers and advocacy groups in light of neglect for safety measures to prevent the spread of COVID-19, the Los Angeles County Department of Public Health (DPH) ordered on July 10 the continued closure of the downtown Los Angeles garment manufacturer Los Angeles Apparel. Four deaths and more than 300 infections have been confirmed among the 400-strong total workforce. This marks the largest single outbreak in Los Angeles County to date. With evidence of what the DPH called “flagrant violations” of public health infection control orders and the refusal of the company to cooperate in the investigation, the authorities had already ordered the closure of the company’s South Los Angeles facility on June 27, after an inspection of the factory found multiple violations of distancing requirements and infection control protocols, such as the use of cardboard as a barrier between the workers. Dr. Barbara Ferrer, Director of the Los Angeles County Department of Public Health, stated: “The death of four dedicated garment workers is heartbreaking and tragic. Business owners and operators have a corporate, moral and social responsibility to their employees and their families to provide a safe work environment that adheres to all of the health officer directives—this responsibility is important, now more than ever, as we continue to fight this deadly virus.” These empty words come after months of ignored calls for safety measures and the implementation of a criminal return-to-work policy that is now producing a social disaster throughout the state and the US as a whole. The Democratic Party is fully responsible for the catastrophic situation in California, where voluntary “recommendations” have replaced regulations. In this context, it is no surprise that Los Angeles Apparel has been able to defend itself from legitimate claims of alleged negligence. Its owner, Dov Charney, founder and former chairman of American Apparel, complained about “a maze of conflicting directions.” He stated, “It’s morally irresponsible for the Health Department to speak on the infection rates at our factory without also addressing its connection to the issue at large: that the Latino community in Los Angeles is left vulnerable to COVID-19 in a healthcare system that provides no support with testing and no support or assistance for those that test positive.”
Newsom Orders Bars, Indoor Dining Closed Across California as Virus Spikes – Gov. Gavin Newsom on Monday announced he is ordering the closure of bars, wineries and indoor restaurant dining statewide as cases of the coronavirus continue to spike in California.The governor made the announcement during his regular media briefing Monday afternoon.Newsom's new order covers indoor operations for restaurants, wineries and tasting rooms, movie theaters, family entertainment centers, zoos, museums and cardrooms. All bars, brewpubs, breweries and pubs must close indoor and outdoor operations. The state saw a 2.6% increase in COVID-19 cases since Sunday to more than 329,000. California's virus-related death toll surpassed 7,000 as 11 a.m. Monday, according to data published on the state's COVID-19 website.The new order also includes further indoor closures specifically for counties that have been on thestate's watch list for three consecutive days or more in the following sectors: fitness centers, places of worship, indoor protests, offices of noncritical infrastructure sectors, personal care services, hair salons and barbershops and malls. There are more than two dozen counties on the watch list, including seven in the Bay Area: Alameda, Contra Costa, Marin, Napa, Santa Clara, Solano and Sonoma. Among those seven, Contra Costa, Marin, Napa, Solano and Sonoma counties have been on the list for three straight days.
U.S. reports record 67,400 single-day spike of new coronavirus cases -The United States reported 67,417 new cases of the coronavirus on Tuesday, setting yet another fresh record for new cases reported in a single day, according to data collected by Johns Hopkins University. Cases in the U.S. keep climbing, averaging about 62,210 new cases per day over the past seven days — more than triple the number just a month ago and up more than 21% compared with the seven-day average a week ago, according to a CNBC analysis of the data from Hopkins. Texas, California and Florida accounted for 31,847 new cases on Tuesday, nearly half of all new cases reported across the country. President Donald Trump on Tuesday again attributed the increase in cases to ramped up testing. The country processed 760,282 tests on Tuesday, the second-highest number of tests conducted in a single day, according to data compiled by the Covid Tracking Project, an independent volunteer organization launched by journalists at The Atlantic. The U.S. has processed an average of more than 665,000 tests per day between July 1 and July 12, according to a CNBC analysis the Covid Tracking Project's data. That's up from a daily average of just over 174,000 diagnostic tests processed nationally per day through April, according to CNBC's analysis. "Think of this, if we didn't do testing, instead of testing over 40 million people, if we did half the testing we would have half the cases," the president said Tuesday evening. "If we did another, you cut that in half, we would have, yet again, half of that. But the headlines are always testing." Trump's medical advisors, including Director of the National Institute of Allergy and Infectious Diseases Dr. Anthony Fauci, have said the recent surge in cases is a sign of an expanding outbreak, not the increased testing.
Coronavirus Deaths Are Rising Right on Cue - There is no mystery in the number of Americans dying from COVID-19. Despite political leaders trivializing the pandemic, deaths are rising again: The seven-day average for deaths per day has now jumped by more than 200 since July 6, according to data compiled by the COVID Tracking Project at The Atlantic. By our count, states reported 855 deaths today, in line with the recent elevated numbers in mid-July. The deaths are not happening in unpredictable places. Rather, people are dying at higher rates where there are lots of COVID-19 cases and hospitalizations: in Florida, Arizona, Texas, and California, as well as a host of smaller southern states that all rushed to open up. The deaths are also not happening in an unpredictable amount of time after the new outbreaks emerged. Simply look at the curves yourself. Cases began to rise on June 16; a week later, hospitalizations began to rise. Two weeks after that—21 days after cases rose—states began to report more deaths. That’s the exact number of days that the Centers for Disease Control and Prevention has estimated from the onset of symptoms to the reporting of a death. Many people who don’t want COVID-19 to be the terrible crisis that it is have clung to the idea that more cases won’t mean more deaths. Some Americans have been perplexed by a downward trend of national deaths, even as cases exploded in the Sun Belt region. But given the policy choices that state and federal officials have made, the virus has done exactly what public-health experts expected. When states reopened in late April and May with plenty of infected people within their borders, cases began to grow. COVID-19 is highly transmissible, makes a large subset of people who catch it seriously ill, and kills many more people than the flu or any other infectious disease circulating in the country.
White House tells hospitals to bypass CDC on COVID-19 data reporting - Hospitals will begin sending coronavirus-related information directly to the Department of Health and Human Services (HHS), not the Centers for Disease Control and Prevention (CDC), under new instructions from the Trump administration. The move will take effect on Wednesday, according to a new guidance and FAQ document for hospitals and clinical labs quietly posted on the HHS website. Previously, hospitals reported to the CDC's National Healthcare Safety Network, which the agency describes as the nation’s most widely used health care-associated infection tracking system. The CDC tracked information including how many beds are available, the number of ventilators available and how many COVID-19 patients the hospitals have. Beginning Wednesday, hospitals will report the same data but will bypass the CDC and send it to HHS directly. According to HHS, the goal is to streamline data collection, which will be used to inform decisions at the federal level such as allocation of supplies, treatments and other resources. But the move comes amid concerns that the White House has been sidelining the CDC and after Trump administration officials attacked Anthony Fauci, the nation's top infectious disease expert and a member of the White House coronavirus task force.
Six more COVID-19 related deaths reported in City of Cleveland (WJW) — The Cleveland Department of Health (CDPH) has been notified of 88 more confirmed cases of COVID-19 and six new fatalities. According to a press release, that brings the total to 3,481 confirmed cases and 83 deaths. The city had not reported any additional deaths since July 2.“The fatalities include males and females ranging in age from their 30s to their 70s. The new confirmed cases include males and females whose ages range from under 1 year old to their 80s,” said officials. More detailed information on all Red Alert Level 3 counties can be found here: CDPH is working to identify anyone who may have had close contact with those individuals that would require testing or monitoring.
Kansas City metro reports record number of coronavirus deaths | The Kansas City Star - The Kansas City area saw its largest number of COVID-19 related deaths in a single day Thursday as 11 new deaths were reported.The previous record number of new deaths was eight, reported on June 20.The metro area also saw its largest number of new cases in over a week as 378 new cases were recorded. The area encompassing Kansas City and Jackson, Clay and Platte counties in Missouri and Johnson and Wyandotte counties in Kansas has recorded a total of 12,552 coronavirus cases.The seven-day rolling average of new cases in the metro is 290, the same as it was one week ago. Two weeks ago, it was 188.
US confirms over 75,600 coronavirus new cases, breaking single-day record - The U.S. reported over 75,600 COVID-19 cases on Thursday alone, marking a new daily record as cases continue to surge across the country. The grim milestone marks the 11th time in the last month that the U.S. has broken this single-day record, according to The New York Times. The prior record for daily recorded cases was set last Friday at 68,241 cases.Fatalities amid the coronavirus pandemic also reached new highs this week.Florida reported 156 new fatalities on Thursday, its highest record since the pandemic began in March. The new deaths bring the state’s total to at least 4,677 related to COVID-19.Florida was one of 10 states to set a single-day record for deaths this week, including Alabama, Arizona, Hawaii, Idaho, Montana, Oregon, South Carolina, Texas and Utah, according to the Times.The news comes after state leaders have begun zeroing in on face masks to stem the spread of the disease. Republican Arkansas Gov. Asa Hutchinson issued an order Thursday mandating that state residents wear face masks or coverings in public in an effort to slow the spread of the virus.Colorado Gov. Jared Polis (D) also issued a statewide mask mandate Thursday. Alabama Gov. Kay Ivey (R) on Wednesday announced a mask mandate that is set to continue through the end of the month as COVID-19 cases continue to spike in the state. “Despite all our best efforts, we’re seeing increases in cases every day still occurring and we’re almost to the point where hospital ICUs are overwhelmed,” Ivey told reporters this week. The U.S. has reported over 3.5 million cases of COVID-19 since the beginning of the pandemic and 138,268 fatalities as of Friday morning, according to data compiled by Johns Hopkins University.
U.S. shatters coronavirus record with over 77,000 cases in a day - (Reuters) - The United States shattered its daily record for coronavirus infections on Thursday, reporting more than 77,000 new cases as the number of deaths in a 24-hour period rose by nearly 1,000, according to a Reuters tally. The loss of 969 lives was the biggest increase since June 10, with Florida, South Carolina and Texas all reporting their biggest one-day spikes on Thursday. More than 138,000 Americans have died from COVID-19, a toll that experts warn will likely surge following recent record spikes in case numbers and an alarming rise in hospitalizations in many states. The hardest-hit areas in Texas and Arizona are running out of places to store bodies as their morgues fill up and are bringing in coolers and refrigerated trailers. U.S. deaths peaked in April, when the country lost on average 2,000 people a day. Fatalities have steadily fallen, averaging 1,300 a day in May and under 800 a day in June before rising again in July, according to a Reuters tally. Americans have become increasingly divided on issues such as the reopening of schools and businesses and wearing face masks in public, hindering the fight against the virus. The current tally of 77,217 cases surpasses the previous record set on Friday when cases rose by 69,070. In June, cases rose by an average of 28,000 a day, according to a Reuters tally. In July, they have risen by an average of 57,625 a day.
More than 138k coronavirus deaths reported in the U.S.– The coronavirus (COVID-19) outbreak in the United States has passed 3.5 million infections.On Thursday afternoon, Johns Hopkins University reported more than 138,000 deaths. The hardest hit areas are struggling with diminishing resources. Now, a battle is brewing in Georgia as parts of the country consider whether to lockdown again.In Miami, a possible new stay-at-home order is on the horizon. In Texas, refrigerated trucks are being used as makeshift morgues and a hotel has been converted to a hospital. At least 39 states are reporting an increase in the number of coronavirus cases from the week before. The surges come after an ease of restrictions across the country.Georgia governor Brian Kemp is suing the mayor of Atlanta because of a mask mandate that he said violates his own emergency orders.The lawsuit comes just one day after the governor suspended all local government mask mandates. That’s despite the rise in coronavirus cases and hospitalizations in the state.
Florida And Texas Both Set Coronavirus Death Records Thursday --Florida and Texas have again set state records for coronavirus deaths, reporting the new highs on Thursday, as coronavirus deaths have steadily climbed during July in the United States.Texas reported 129 new deaths Thursday, setting a new record for a second-straight day. The sobering numbers from Texas came just hours after Florida , which gives its coronavirus update in the morning, broke its record for coronavirus deaths, with 156, topping the old record set just one week earlier.But there was a positive note from Thursday’s statistics: hospitalizations have now dropped for two straight days in Texas for the first time since Memorial Day.On Wednesday, states like Arizona and Alabama also set new death records, the same day that Alabama became the 25th state to issue a mask mandate. Deaths have risen during the month of July nationwide, ending what had been a steady fall in deaths starting in late April.The rise is coming from a wider range of states than what pushed death tolls earlier in the pandemic, when New York alone went weeks regularly reporting over 500 cases a day, peaking around 1,000 deaths a day at its height. Major indicators suggest the death count will continue to climb. According to The COVID Tracking Project, hospitalizations in the U.S. are at their highest numbers since April. The U.S. is also now regularly reporting over 60,000 new cases a day, by far the highest since the pandemic began, but significantly more tests are also being done compared to the first major surge in March and April. Deaths generally lag behind increases in infections and hospitalizations.
Pandemic-hit Arizona, Texas counties order coolers, refrigerated trucks for bodies - (Reuters) - Arizona and Texas counties hit hard by COVID-19 are ordering coolers and refrigerated trailers to store bodies as their morgues fill up, authorities said on Thursday. Arizona’s Maricopa County, home to the state’s largest city, Phoenix, is bringing in 14 coolers to hold up to 280 bodies and more than double morgue capacity ahead of an expected surge in coronavirus fatalities, officials said on Thursday. In Texas, the city of San Antonio and Bexar County have acquired five refrigerated trailers to store up to 180 bodies as some morgues at hospitals and funeral homes reach capacity, Mario Martinez, San Antonio Metro Health assistant director, said in a video. New York used dozens of refrigerated trailers in April as its daily COVID-19 deaths exceeded 700. The appearance of mobile morgues in Arizona and Texas reflects that the pandemic appears to now be spinning out of control in southern U.S. states. “We are likely to see the trends of deaths rise over the next two to three weeks,” Maricopa County health director Marcy Flanagan told a news briefing. Maricopa’s daily COVID-19 cases peaked in late June at over 3,000. Patients typically spend a few weeks in hospital before dying, Flanagan said.9:56 PM
July 17 COVID-19 Test Results; Record 77,233 Positive Cases - The US is now conducting over 700,000 tests per day. Based on the experience of other countries, the percent positive needs to be well under 5% to really push down new infections, so the US still needs to increase the number of tests per day significantly (or take actions to push down the number of new infections).There were 851,788 test results reported over the last 24 hours. This is a new record. There were 77,233 positive tests. This is a new record. This data is from the COVID Tracking Project.The percent positive over the last 24 hours was 9.1% (red line). For the status of contact tracing by state, check out testandtrace.com.
WHO warns coronavirus pandemic may get 'worse and worse and worse' As coronavirus cases hit record levels over the weekend and deaths increased in a majority of U.S. states, the World Health Organization (WHO) on Monday warned the pandemic is worsening and there will be “no return to the old normal for the foreseeable future.” WHO Director-General Tedros Adhanom Ghebreyesus said that while several countries in Europe and Asia have been able to bring outbreaks under control, there is a lot to be concerned about if leaders fail to take the steps needed to curb the transmission of the virus. “In several countries across the world, we are now seeing dangerous increases in COVID-19 cases, and hospital wards filling up again. It would appear that many countries are losing gains made as proven measures to reduce risk are not implemented or followed,” Tedros said during a virtual news conference in Geneva Monday. “Let me be blunt, too many countries are headed in the wrong direction. The virus remains public enemy number one,” Tedros said. “If basics are not followed, the only way this pandemic is going to go. It is going to get worse and worse and worse.” Tedros, however, said there is a roadmap to a "situation where we can control the disease and get on with our lives." "We need to reach a sustainable situation where we do have adequate control of this virus without shutting down our lives entirely, or lurching from lockdown to lockdown," He said. Tedros said to get to this place there needs to be a focus on reducing mortality and suppressing transmission, an empowered and engaged community that takes individual measures to protect the community and strong government leadership and communication. WHO reported more than 230,000 infections globally Sunday, setting a record for new infections reported in one day. Tedros said nearly 80 percent of those cases were reported from just 10 countries, and 50 percent from just two countries. Both the U.S. and Brazil lead the world in the number of cases and deaths. Tedros criticized political leaders, without naming any specifically, saying “mixed messages” from leaders are “undermining the most critical ingredient of any response: trust.”
Coronavirus cases, deaths soar in Mexico and across Latin America -- Mexico has now surpassed Italy in its number of known COVID-19 deaths, which currently stand at just over 35,000, making the country’s pandemic outbreak the fourth deadliest in the world after the United States, Brazil and the United Kingdom. Mexico now also reports just under 300,000 total coronavirus cases, and its pandemic curve mirrors those across Central and South America, a region which accounts for about a quarter of all cases and deaths internationally. To cope with its surging case rate and death toll, Mexico City Mayor Claudia Sheinbaum has announced that any household with one confirmed case of the virus will be required to stay home for at least 15 days, with the government providing food and supplies. The city has also been forced to enforce laws limiting the length of time a body can be buried to allow the dead in public cemeteries to be exhumed, making space for those who died from the pandemic. Older bodies are being cremated and replaced with a new one. In contrast to the dire situation across the country, Mexican President Andrés Manuel López Obrador (AMLO) claimed Sunday, “The bottom line is that the pandemic is on the downside, that it is losing intensity.” His remarks, which echo the numerous falsehoods uttered by US President Donald Trump about the pandemic, are an attempt to justify the economic reopening his administration has spearheaded even as the actual case and death numbers have continued to increase. AMLO’s pandemic policies have been criticized by former health officials. Salomón Chertorivski, who served as health minister from 2011–2012, argued against reopening the economy before cases and deaths were steadily decreasing. “There are three fundamental variables: a reduction in the last 14 days in the numbers of contagions, reduction in recent days in the number of deaths, and reduction in the number of hospitalized people,” Chertorivski told the Mexican newspaper Reforma. “None of those three parameters were achieved.”
COVID-19 outbreaks escalate across England - UK Health Secretary Matt Hancock admitted this weekend, “Each week there are over a hundred local actions taken [in response to coronavirus outbreaks] across the country—some of these will make the news, but many more are swiftly and silently dealt with.” This statement made to the Telegraph is a marked increase on previously reported figures. The outbreaks are a confirmation that the UK’s epidemic, never fully suppressed, is again spreading out of control. In Sheffield, an outbreak at a warehouse run by Clipper for fashion retailer Boohoo has infected at least 25 workers. Many more had symptoms but were never tested. Breaking the story at the weekend, the Sunday Times reported the words of a 51-year-old father of two who contracted the virus: “I caught it from the warehouse. There’s no way I should have been working. How is distributing cheap women’s fashion essential?” He explained how he was forced to work 12-hour shifts throughout April and May, saying, “I needed to put food on the table for my kids.” His wife and son have now both tested positive for COVID-19. Another employee told the Times, “I watched workers from multiple households travelling to the warehouse in packed cars. It saves money.” As in all such cases, workers have been raising safety concerns for months, but have been smothered by the continued inaction of government agencies and local politicians. On March 26, a video was circulated on social media showing warehouse employees working close to each other, in clear breach of social distancing guidelines. Labour MP for Sheffield South East, Clive Betts, has received complaints from at least 50 different workers at the site. On March 31, eight days into the national lockdown, one wrote to him, “The warehouse is completely full, people are virtually on top of each other with nothing put in place for social distancing, no PPE [personal protective equipment] whatsoever. It’s a breeding ground for the virus and needs closing down ASAP!” Betts did nothing other than to write to Boohoo. Between April and June, Sheffield’s Labour council and Public Health England (PHE) investigated the warehouse and found it had taken “reasonable steps” to ensure workers’ safety. Following the Times investigation, Clipper and Boohoo were able to respond, “The warehouse has been inspected a number of times by Public Health England and Sheffield City Council and has been approved each time.” Echoing the excuse of corporations the world over, Sheffield Council’s director of public health, Greg Fell, said virus transmission was more likely to have occurred “within households in the local community.” He did not elaborate on the implications of this statement for the “local community,” nor what geographical location he was referring to.
"It's Unlike Anything We've Seen" - Hong Kong Discovers COVID-19 Mutation That Makes Virus 30% More Infectious - As Hong Kong reimposes new social distancing restrictions and orders gyms and arcades to close, while asking restaurants to close dine-in service in the evenings, one of its top virus experts is warning the city state might be on the cusp of its biggest and deadliest outbreak yet, and that Hong Kongers must be careful to do their part to help stop SARS-CoV-2 from spreading. Professor Gabriel Leung, dean of the University of Hong Kong’s medical school and a frequently quoted voice whose statements and views help influence the government's response, says he believes there are a least 50 hidden cases in the community, many caused by international travelers according to the SCMP. Moreover, the doctor warned, apparently citing evidence obtained from local researchers, that a new mutation had been discovered in Hong Kong - a mutation that, according to Dr. Leung, has caused the virus to become 30% more infectious. He highlighted Kowloon East and Sha Tin as two areas of heightened risk, and insisted that the city state provide more resources for the elderly there.Like all statements about mutations, this should be taken with a grain of salt, though some research certainly does suggest that minor variations that affect how the virus attaches to the human ACE2 reception could make the virus more infectious. "This is the start of a sustained massive local outbreak the likes of which we have never seen before," Leung said during a radio interview on Sunday. The day before, HK health authorities warned that a third wave of the virus appears to be the most serious by far, as at least 61 people in the city are believed to have been infected, or highly suspected to have been but are awaiting final test results. Unlike when SARS swept through Hong Kong's financial district in 2003, Hong Kong has been largely spared by COVID-19, with a total of roughly 1,500 cases and only a handful of deaths. Still, officials have remained on guard, and Dr. Leung warned that the location of the latest cases suggests that the city didn't do a good enough job suppressing several known clusters. Saturday’s new local infections arose from restaurants in Ping Shek Estate of Kwun Tong district and in Jordan of Yau Tsim Mong district, along with an old folks home in Tsz Wan Shan.
Coronavirus: Hong Kong expert warns each infected person can now spread Covid-19 to four people - May Tse A top medical expert advising the Hong Kong government on Covid-19 has warned that each infected person could transmit the coronavirus to four others, as the virus has turned more infectious, while the city has now entered the most serious phase of the public health crisis. Professor Gabriel Leung, dean of the University of Hong Kong’s medical school, said he believed there were at least 50 to 60 hidden cases in the community as an international study indicated a strain of the virus had increased its infection rate by 30 per cent due to a DNA mutation. He highlighted Kowloon East and Sha Tin as two areas most at risk of an outbreak and urged the government to prioritise testing resources for the elderly. “This is the start of a sustained massive local outbreak the likes of which we have never seen before,” Leung said on a radio programme on Sunday. On Saturday, health authorities warned that Hong Kong’s third wave of Covid-19 was by far the most serious of the public health crisis to date, as at least 61 people in the city were either confirmed as infected or had tested preliminary positive. The city reported 16 local infections among 28 cases officially confirmed on Saturday, while another 33 people were awaiting confirmation they had caught the deadly virus. The continued surge takes Hong Kong’s Covid-19 total to 1,431 with seven deaths. Saturday’s new local infections included those from previously known clusters revolving around two restaurants – in Ping Shek Estate of Kwun Tong district and in Jordan of Yau Tsim Mong district – as well as an elderly care home.
Indonesia records over 1,000 COVID-19 cases every day for three weeks - Indonesia is becoming the new COVID-19 epicentre in East Asia. Over the past three weeks, more than 1,000 new cases were recorded every day. If the current trend continues, within the next two weeks the country’s official figures will surpass those of China, where the virus first broke out in January. During the same period, the death toll similarly climbed, with between 30 and 90 fatalities confirmed each day. The numbers currently stand at 75,699 infections and 3,606 deaths. Last Thursday, a new record was reached with 2,657 cases in one day. The spike was due to the discovery of a large cluster at a military academy in Bandung, West Java. Army Chief of Staff General Andika Perkasa revealed on Saturday there were 1,280 confirmed cases at the school. Of these, 991 were army cadets, while the rest were staff and their families. The vast majority showed no symptoms. Moreover, the 2,657 cases were discovered from testing only 12,554 people, suggesting an infection rate of over 20 percent. Indonesia’s testing rate, despite a mild expansion of capacity over the past month, remains among the lowest in the world. Ranked 162nd, according to website Worldometer, it conducts only 3,789 tests per million people. In the fourth-most populous country in the world, with over 273 million people, this is highly dangerous. The dramatic rise in figures partly corresponds to increased testing, but the government’s aggressive back-to-work policy has accelerated the spread of the virus across the nation’s 6,000 inhabited islands. Overcrowded urban centres have become viral hotbeds, since the large-scale reopening of workplaces, restaurants, and public transport began early last month. In response to Thursday’s spike, President Joko Widodo labelled the situation a “red signal” but blamed the spread of the virus on the behaviour of the population. He claimed that transmission would rise if the public did not cooperate with prevention measures. The government is seeking to divert popular attention from its own track record of mixed messages and blatant misinformation about the virus. Government ministers have variously advocated bean sprouts and broccoli to avoid contracting the virus. Widodo himself promoted drinking jamu, a traditional herbal drink. Others asserted that the coronavirus cannot survive in tropical climates. Agriculture Minister Syahrul Yasin Limpo was condemned last week by experts for claiming a necklace made from eucalyptus could help prevent transmission. The necklaces have been developed by the government and will be mass-produced in August.
Rouhani warns 25 million infected as Iran reimposes restrictions - (Reuters) - President Hassan Rouhani said on Saturday that 25 million Iranians have been infected with the coronavirus and that another 35 million were at risk of acquiring it as Iran reimposed restrictions in the capital and elsewhere. The figures Rouhani cited in a televised speech were far higher than Saturday’s official toll of 271,606. His office said they were based on “an estimated scenario” from a report by the health ministry’s deputy minister of research. “Our estimate is that until now 25 million Iranians have been infected with this virus and about 14,000 have lost their dear lives,” Rouhani said in the speech. “There is the possibility that between 30 and 35 million other people will be at risk.” He said more than 200,000 people had been hospitalised and that the ministry expected that number to double in the coming months. Authorities on Saturday reimposed one-week restrictions in the capital Tehran including banning religious and cultural functions, closing boarding schools, cafes, indoor pools, amusement parks and zoos. The Health Ministry reported 188 deaths in the past 24 hours to take Iran’s total to 13,979.
AP Explains: Why India cases are rising to multiple peaks— In just three weeks, India went from the world’s sixth worst-affected country by the coronavirus to the third, according to a tally by Johns Hopkins University. India’s fragile health system was bolstered during a stringent monthslong lockdown but could still be overwhelmed by an exponential rise in infections. India has tallied 793,802 infections and more than 21,600 deaths, with cases doubling every three weeks. It’s testing more than 250,000 samples daily after months of sluggishness, but experts say this is insufficient for a country of nearly 1.4 billion people. “This whole thing about the ‘peak’ is a false bogey because we won’t have one peak in India, but a series of peaks,” said Dr. Anant Bhan, a bioethics and global health researcher. He pointed out that the capital of New Delhi and India’s financial capital, Mumbai, had already seen surges, while infections had now begun spreading to smaller cities as governments eased restrictions. The actual toll would be unknown, he said, unless India made testing more accessible. The Health Ministry said Thursday that India was doing “relatively well” managing COVID-19, pointing to 13 deaths per 1 million people, compared to about 400 in the United States and 320 in Brazil. But knowing the actual toll in India is “absolutely impossible” because there is no reporting mechanism in most places for any kind of death, said Dr. Jayaprakash Muliyil, an epidemiologist at the Christian Medical College in Vellore who has been advising the government. Official data shows 43% of the people who have died from the coronavirus were between the ages of 30 and 60, but research globally indicates that the disease is particularly fatal to the elderly, suggesting to Muliyil that many virus deaths among older Indians “don’t get picked up” or counted in the virus fatality numbers. In India, public health is managed at a state level, and some have managed better than others. The southern state of Kerala, where India’s first three virus cases were reported, has been held up as a model. It isolated patients early, traced and quarantined contacts and tested aggressively. By contrast, Delhi, the state that includes the national capital, has been sharply criticized for failing to anticipate a surge of cases in recent weeks as lockdown measures eased. Patients have died after being turned away from COVID-designated hospitals that said they were at capacity. It led the Home Ministry to intervene and allocate 500 railway cars as makeshift hospital wards.But as the capital rushes to conjure new beds, officials admit that they’re worried about the lack of trained and experienced health care workers. According to Jishnu Das, a professor of economics at Georgetown University, there is “no central coordination” to move health care staff from one state to another, exposing India’s relative inability to use data to guide policy decisions.
India reaches over 1 million COVID-19 cases - India on Friday surpassed 1 million coronavirus cases, joining the U.S. and Brazil as the only countries to reach the grim milestone around the world. There are 1,003,832 confirmed cases of coronavirus in India as of Friday morning, according to data compiled from Johns Hopkins University. The country has confirmed over 26,600 fatalities. The peak comes after the country’s health ministry reported a record 34,956 infections in a 24-hour period on Friday, CNN reported. Schools and university across India have been shuttered since March in an effort to slow the spread of the virus, The New York Times reported. The country’s government has called on school systems to limit online courses to just a few hours a day. Over 100 million people in the country have lost their jobs amid the ongoing pandemic, with the country's economy predicted to contract by an estimated 9.5 percent, according to the Times. In the beginning of the pandemic, Prime Minister Narendra Modi called for masks and social distancing and imposed a nationwide lockdown that lasted nearly three months. But recently, he called for the leaders of India’s 28 states and 8 territories to “unlock” amid the economic hit from the pandemic, the Times noted. On Tuesday, health officials in Brazil announced that the country has surpassed 2 million COVID-19 cases. The U.S. leads the world in COVID-19 cases, confirming 3,576,221 infections and 138,360 fatalities as of Friday morning, according to John Hopkins University.
Coronavirus updates: India passes 1m virus cases as Brazil hits 2m – BBC - There have now been more than 1m confirmed cases in India, and 2m in Brazil. The total in both countries has doubled in less than a month. Despite an increase in daily infections, the death rate in Brazil is largely flat. But in India, the number of people dying with Covid-19 each day is increasing. The Health Ministry has now confirmed that with more than 34,000 new infections in the last 24 hours, India has breached the one million mark. The number of deaths reported has now crossed 25,000.When India first went into lockdown, back in March, cases were hovering around 500. And when it started to gradually exit out of its lockdown on 8 June, confirmed cases had increased rapidly across states.With more than 1.3 billion people, the country was always a point of concern. With its densely populated cities, most experts anticipated India to become a big hotspot when cases were still in the thousands.From the first case, which was confirmed in January, to now, it took nearly 170 days to cross a million infections. Over the months, it raced past China, Europe's worst-hit countries, and most recently, Russia, to confirm the third-highest caseload in the world.In the past two months, we've heard heart-breaking stories of people unable to get care and hospitals overwhelmed. Simultaneously, testing across states has increased which could help explain the rise in numbers too. But it's worth noting that India's active cases are still relatively low at around 340,000. The number of people recovering from the virus is optimistic - for every 100 confirmed cases, 63 have recovered. And the mortality rate, at 2.55%, remains encouraging. Brazil has now tallied more than two million confirmed virus cases. It was less than a month ago that Brazil reached one million cases - and there is little sign that the rate of increase is slowing. Brazil, which is home to around 210 million people, is the second worst affected country behind the US. But President Jair Bolsonaro, who tested positive for the virus, has continued to play down its health risks and fought against social distancing orders. More than 74,000 people have died from the virus - and the true figures are believed to be even higher.
FDA Expands List of Potentially Deadly Hand Sanitizers The Food and Drug Administration (FDA) has expanded its list of potentially toxic hand sanitizers to avoid because they could be contaminated with methanol. Methanol, or wood alcohol, can be toxic when absorbed through the skin and deadly when swallowed. The FDA now lists 67 hand sanitizers that have been recalled, tested positively for methanol contamination or were reportedly made in the same facility as labels that tested positive. "That should never be in a hand sanitizer," ABC News chief medical correspondent Dr. Jennifer Ashton told the network Monday. "Its absorption can produce toxic, and in some cases, deadly results." The FDA issued an initial warning June 19 for nine hand sanitizers made by the company Eskbiochem SA de CV in Mexico. Since then, the agency has added dozens of other products and continues to investigate the use of methanol in hand sanitizer. The product has become incredibly popular since February, when the threat of the new coronavirus began to spread, and this has led to shortages of familiar brands like Purell, as well as the emergence of new brands to meet the demand, USA TODAY pointed out. "All Americans should practice good hand hygiene, which includes using alcohol-based hand sanitizer if soap and water are not readily available. Unfortunately, there are some companies taking advantage of the increased usage of hand sanitizer during the coronavirus pandemic and putting lives at risk by selling products with dangerous and unacceptable ingredients. Consumers and health care providers should not use methanol-containing hand sanitizers," FDA Commissioner Stephen M. Hahn said in a July 2 press release.The products flagged by the FDA are labeled as containing ethanol, but tested positive for methanol despite this.
Federal Judge Nixes Part of Glyphosate Settlement That Would Allow a Panel of Scientific “Experts”, Rather Than Juries, to Decide Whether the Chemical is Carcinogenic for Future Claims - Jerri-Lynn Scofield --Federal district court judge Vince Chhabria last Monday effectively torpedoed a controversial part of Bayer’s proposed $10.9 billion glyphosate settlement, which he must approve – thus effectively nixing the provision.Bayer wants a panel of specially selected scientific experts to decide whether something causes cancer or not, taking that decision away from future juries. According to the New York Times, judge Chhabria said: he “is skeptical of the propriety and fairness of the proposed settlement, and is tentatively inclined to deny the motion.” He raised concerns about the creation of a scientific panel to decide whether the key ingredient, glyphosate, causes cancer and whether the agreement unfairly limits potential plaintiffs from suing.Glyphosate is the active ingredient in Roundup, the most widely used herbicide in the world, Bayer acquired Monsanto in August 2018 and assumed its Roundup-related liabilities. Bayer now faces liability for about 125,000 lawsuits throughout the United States. Three multi-million dollar verdicts have been returned so far and Bayer is appealing each of these judgments. Bayer is keen to cap its Roundup-related legal exposure not only for the 95,000 lawsuits that have already been filed, but also to bind the roughly 30,000 plaintiffs who have only got so far as to contact a lawyer but have yet either to file suit, let alone agree to any settlement offer.The amount to be paid out for 95,000 existing lawsuits has been negotiated. The panel’s carcinogenicity determination would apply to and limit the options for those 30,000 potential plaintiffs. According to the NYT: The settlement, announced two weeks ago after months of effort with the help of the veteran mediator Kenneth R. Feinberg, includes $8.8 billion to $9.6 billion to cover about 95,000 cases. In addition, $1.25 billion was set aside to finance the scientific panel and assist impoverished Roundup users with non-Hodgkin’s lymphoma. As I mentioned when I last posted on this topic, in Bayer Agrees to $10.9 Billion Glyphosate Settlement(quoting the Wall Street Journal), such a provision would be rare. Not only will the panel decide on whether glyphosate causes cancer and at what levels, but Bayer and other litigants would be bound by its determination in future proceedings.
Microplastics are contaminating the fruit and vegetables we eat including apples, carrots and lettuces after being absorbed through their roots, studies show - Microplastics have been discovered in apples, carrots, pears, broccoli and lettuce, studies have revealed. Root vegetables including radishes, turnips and parsnips could also be contaminated with the man-made waste, prompting fears over the health impact. The tiny pollutants are thought to have been sucked into plants roots with water, and then travelled up the stem into the leaves and, where possible, fruits. Scientists have argued for decades that this was 'impossible', claiming they were 'too large' to fit through the pores in the roots. Microplastics have previously been identified in meats including chicken, canned fish and shellfish. A separate study published this week found that plants containing microplastics grew smaller with shorter roots, reducing their yield and nutritional value. 'We've known for years that plastics are in our air, ocean and soil. And now, finally, we have the proof plastics are in the fruit and vegetables we feed our children,' The founder of environmental group Plastic Soup Foundation, Maria Westerbos, added: 'If it is getting into vegetables, it is getting into everything that eats vegetables as well, which means it is in our meat and dairy too.' 'What we need to find out now is what this is doing to us. This is uncharted territory. Does plastic make us sick?' Apples were the fruits most contaminated with microplastics, according to a study published today in the journal Environmental Research, and carrots were shown to be the most contaminated vegetable. The largest microplastics (2.52 um) were identified in lettuces, while the smallest (1.51 um) were found in carrots.
Microplastics Are Increasing in Our Lives, New Research Finds - In the past 70 years, virgin plastic production has increased 200-fold, and has grown at a rate of 4% each year since 2000, according to a 2017 study in Science Advances. Only a small portion of plastics are recycled, and about a third of all plastic waste ends up in nature, another study suggests.While new research indicates that plastic is leaking into every part of the natural world, the ocean has long been a focal point of the plastic pollution issue. But how much is actually in the sea?Moore says it's "virtually impossible" to get an accurate estimate because of the ongoing production of plastic, and the tendency for plastic to break down into microplastics."This count is constantly increasing, and it's increasing at a very rapid rate," he said. "It's a moving target."One commonly cited study, for which Moore acted as a co-author, estimated that there are more than 5.25 trillion plastic pieces floating in the ocean, weighing more than 250,000 tons, based on water samples and visual surveys conducted on 24 expeditions in five subtropical gyres. But even at the time of publication in 2014, Moore said he knew "that was an underestimate." A more recent study published this year, led by researchers at Plymouth Marine Laboratory, indicates that there's a lot more microplastic in the ocean than we previously thought. When taking samples from the ocean, most researchers use nets with a mesh size of 333 microns, which is small enough to catch microplastics, but big enough to avoid clogging. But the team from Plymouth Marine Laboratory used much finer 100-micron nets to sample the surface waters in the Gulf of Mexico and the English Channel. "Our nets clogged too, so we used shorter trawls and a specialized technique for removing all the plankton — microscopic plants and biota — from the sample to reveal the microplastics," . "This process is quite time-consuming, so it'd be challenging for all samples collected to be treated this way." The researchers found there were 2.5 to 10 times more microplastics in their samples compared to samples that used 333-micron nets. "If this relationship held true throughout the global ocean, we can multiply existing global microplastic concentrations ascertained using 333-micron nets, to predict that globally there are 125 trillion plastics floating in the ocean," Cole said. "However, we know these plastics keep on degrading, and these smaller plastics would be missed by our smaller 100 micron net — so the true number will be far greater."
House hearing highlights political divide over plastics and pandemic response - Democratic lawmakers and environmental advocates are increasingly connecting issues surrounding plastics to the coronavirus pandemic, arguing the materials pose a public health crisis unfolding alongside COVID-19. The plastics industry has highlighted the role those materials have played throughout the pandemic, but during a House Committee on Oversight and Reform hearing this week, critics said plastics are doing more harm than good. The July 7 hearing hosted by the environmental subcommittee focused on "the life-threatening impact of single use plastic on human health," and featured predominately environmental advocates. Plastics Industry Association (PLASTICS) CEO Tony Radoszewski also spoke, noting the role plastics have played in the pandemic. "Simply put, plastic saves lives," he said. During the hearing, subcommittee Chairman Harley Rouda, D-Calif., said an increasing national focus on public health should prompt passage of the Break Free From Plastic Pollution Act (BFFPPA), of which he is a co-sponsor. But Rep. Fred Keller, R-Penn., called the hearing a "shameful" attack on plastics, the latest sign of a growing political divide over the issue.Throughout the pandemic, the plastics industry has repeatedly said its products are serving an important role, helping to preserve public health at a time when research into how the virus spreads remains limited. Tuesday's hearing gave environmental advocates and some Democratic lawmakers a platform to respond to those proponents. In his opening remarks, Rouda said COVID-19 has been found to be more dangerous for people with pre-existing cardiovascular and respiratory problems. "This link is especially concerning when we consider the disproportionate impact on fenceline communities, who are already facing challenges as a result of significant air pollution from the outsized impacts of petrochemical facilities and waste disposal sites, including landfills and incinerators," the chairman said. Dr. Kimberly Terrell from Tulane Environmental Law Clinic referenced the toll the coronavirus has taken in Louisiana, a state with many petrochemical plants that bolster plastics production. "The burden of proof should be on industry to show the absence of risk from putting a petrochemical plant in a community," she said.
Mountains of Microplastics Forming at the Bottom of the Ocean We already know our love for plastic is as deep as the deepest depths of the ocean. Because, of course, we found it there, way down at the bottom of the Mariana Trench. It takes a special kind of submarine to make that nearly 36,000-feet dive. But candy wrappers? Bon-bon voyage. And while those unwelcome discoveries demonstrate just how pervasive this plastic plague has become, there may be something even more unsettling about these new denizens of the deep-sea. Scientists haven’t been able to account for most of the 8 million tons of it that we heave into the ocean every year. But a new study may have finally answered that question. The research found that plastic is moving into the deep-sea neighborhoods that anywhere from 500,000 to 10 million species call home. But zip-loc bags among giant spider crabs and tube worms and vampire squid are one thing. Plastic is also finding its way to the vents that literally stir the oceans. Those slow-moving masses of water near the ocean floor, dubbed thermohaline currents, act like a vast circulatory system. They swish around oxygen and nutrients vital to life at those depths. According to the new study, they may also be spreading microplastics far and wide. “Our new research shows that powerful currents sweep these microplastics along the seafloor into large 'drifts' which concentrate them in astounding quantities,” the researchers note in The Conversation. It’s easy to spot the menacing mounds of garbage floating on the open sea, including the granddaddy of garbage, the Great Pacific Ocean Garbage Patch. But they’re more like icebergs than islands. As plastic breaks down, it gets smaller, forming particles that are less than five millimeters in diameter. While some microplastics remain afloat, at least half of it sinks into the sea, permeating even its food chains. “Almost everybody has heard of the infamous ocean 'garbage patches' of floating plastic, but we were shocked at the high concentrations of microplastics we found in the deep-seafloor,” study lead author Ian Kane of The University of Manchester notes in a press release. "We discovered that microplastics are not uniformly distributed across the study area; instead they are distributed by powerful seafloor currents which concentrate them in certain areas." Indeed, the vast microplastic drifts forming on the ocean floor may far eclipse what we see on the surface.
Bubonic Plague Found in Colorado Squirrel - The plague has recently seen an uptick in cases, and the World Health Organization has categorized it as a re-emerging disease. That's why public health officials in Colorado are urging people to be vigilant after a squirrel tested positive for bubonic plague.The squirrel was found in the town of Morrison, west of Denver. Jefferson County Public Health (JCPH) officials announced the discovery of the plague-infected squirrel in a statement over the weekend. It's the first case of plague in the county, according to the statement, as CBS News reported. "Plague is an infectious disease caused by the bacteria Yersinia pestis, and can be contracted by humans and household animals if proper precautions are not taken," officials from JCPH said in the statement. The county was prompted to test the squirrels after someone in Morrison reported seeing at least 15 dead squirrels around the town. Officials tested one, and since it was positive for bubonic plague, they expect others to be infected, according to CBS News. The disease has been around for centuries and is responsible for the deadliest pandemic in human history. An estimated 50 million people in Europe died during the Black Death pandemic of the Middle Ages. JCPH warns the public that it can infect both humans and animals if proper precautions are not taken, according to CNN. The U.S. reports up to a few dozen cases every year, according to the Centers for Disease Control. Two people died in Colorado from the plague in 2015, according to CNN. Rodents are the main vector of plague transmission from animals to humans, but the disease can also be passed on through flea bites or from person to person. People can be infected from direct contact with blood or tissues of infected animals such as a cough or a bite, according to ABC News. That danger hit home on the other side of the world this week when a teenage boy in Mongolia died from bubonic plague after eating a marmot, according to a separate report from CNN. Marmots are large ground squirrels, a type of rodent, that have historically been linked to plague outbreaks in the region. Tests confirmed the teenager had contracted bubonic plague and authorities imposed quarantine measures in the Tugrug district of Gobi-Altai province, according to CNN.
A Virus Wiped Out 90% of This Turtle Species. Can It Recover? - In most cases an extinction takes decades of slow attrition and population declines — a death by a thousand cuts. Sometimes, though, a species can nearly vanish in the blink of an eye. Take the strange, scary case of the Bellinger River snapping turtle (Myuchelys georgesi). A few years ago, an estimated 4,500 of these colorful critters swam the waters of the Australian water system for which they were named, a 44-mile river in the state of New South Wales, about six hours north of Sydney. They were probably never a populous species, and they faced a few problems from egg-eating predators, but otherwise these turtles hung on just fine. Then disaster struck. In 2015 canoeist Rowan Simon and a friend were paddling down the Bellinger River when they noticed a turtle sitting on a rock. It should have jumped back into the water as they approached. It didn't. They got closer and found a shocking sight — its eyes "were grown over with this disease," . They found another sick turtle 20 minutes later. That was the first sign of a disease that, in under two months, would wipe out more than 90% of the species. In addition to blindness, the virus reportedly caused inflammatory lesions and internal organ failure. Today as few as 150 Bellinger River snapping turtles remain, making them one of the world's 25 rarest turtle or tortoise species. Australia has declared them critically endangered and devoted hundreds of thousands of dollars toward the species' conservation. "I don't know of any similar wildlife mortality like this," says ecologist Bruce Chessman of the University of New South Wales-Sydney. "Of course, the chytrid fungus has wiped out some amphibian species quickly, but I don't know of anything equivalent with turtles." Chessman served as the lead author of a recent paper that provided an estimate of the Bellinger River snapping turtle's precipitous decline. "There's a lot of uncertainty because, as the paper says, trying to get a reliable estimate of a very rare species over 70 kilometers of river is quite challenging. But we think it's about 150-200 animals remaining. The risk of extinction is real because of the small number left."
Save the Tiger, Shift to other Big Cats: Illegal Wildlife Trafficking and the Rise in Zoonotic Diseases by Jerri-Lynn Scofield - The worldwide shortage of tiger parts has not been good for other endangered big cats, as illegal wildlife traffickers have shifted to substitute body parts from jaguars, clouded and snow leopards, and lions instead. Last week, the UN Office on Drugs and Crime (UNODC) released its World Wildlife Crime Reportfor 2020 reported the disturbing trend. This is the second such survey since the agency published is first report in 2016. The full report makes for some depressing reading. Our inhumanity to others of our species is a cliche, but our record as a species is even worse when you add in what we do to wildlife,. UNODC reports the spread of zoonotic diseases, which represent up to 75 per cent of all emerging infectious diseases – including SARS-CoV-2 that caused the COVID-19 pandemic and identified illegal wildlife trade as one potential cause. From the report: The COVID-19 pandemic and the vast subsequent harms to human and economic well-being have starkly illustrated the potential global impact of zoonotic diseases, for which wildlife trade – both legal and illegal – is a potential vector. UNODC and its partners are dedicated to understanding the nexus between wildlife trafficking and risks associated with zoonotic diseases, while recognizing that there remain substantial uncertainties relating to this area. According to the World Health Organization, around 75% of new or emerging infectious diseases that have affected humans over the past three decades originate in animals. While the understanding of both the disease and the origin of the virus that causes it are evolving rapidly, COVID-19 is likely linked to a pathogen found in wild bats that is suspected to have passed to humans, possibly via an intermediary. While there are many factors that have contributed to the spread of zoonotic diseases, including social, environmental and economic developments such as urbanization, increasing human population density, climate change, and the increase in speed of trade and travel, large-scale wildlife trafficking and deforestation are among these key factors. More frequent human-wildlife interactions increase the probability of transmission of animal-borne pathogens to human beings, and illegally sourced wildlife, traded in a clandestine way,escapes any sanitary control and exposes humans to the transmission of new viruses and other pathogens. Many species are part of the global trade in wildlife parts, including bears, birds, turtles, tigers – and pangolins, according to the press release issued in conjunction with the report: The report notes that pangolins, which were identified as a potential source of coronaviruses, are the most trafficked wild mammals in the world, with seizures of pangolin scales having increased tenfold between 2014 and 2018. The criminal networks that profit from the illegal wildlife trade are transnational and organized, and increasingly use modern techniques – such as social media – to sell their wares.
Critically Endangered Orangutan Species in Indonesia Gets Reprieve as Controversial Dam Delayed - Construction of a hydropower plant in the only known habitat of a critically endangered orangutan species on the Indonesian island of Sumatra might be delayed for up to three years due to COVID-19 and funding issues.Muhammad Ikhsan Asaad, who oversees the project for state-owned utility PLN, said the Batang Toru plant was supposed to start operating in 2022, based on the agreement between PLN and project developer PT North Sumatra Hydro Energy (NHSE)."But it might be delayed to 2025, mainly because the drawdown from lender Bank of China is stopped due to environmental concerns as well as COVID-19," he said.In construction, a drawdown refers to a situation in which a company receives part of the funding necessary to complete a project, and the rest of the funding might be disbursed gradually over the course of the project.The project is estimated to cost $1.68 billion, financed through equity and loans.NSHE initially sought loans from funders like the World Bank's International Finance Corporation (IFC) and the Asian Development Bank (ADB). But following the description of a new orangutan species, the Tapanuli orangutan (Pongo tapanuliensis), in the Batang Toru ecosystem in northern Sumatra in 2017, environmentalists have called for the project to be stopped or at least halted to allow for an independent scientific study of its impact on the newly known species. They say the project might devastate the most critical areas of the Batang Toru ecosystem and drive the Tapanuli orangutan to extinction. Only 760 of the great apes are estimated to survive in a tiny tract of forest less than one-fifth the size of the metropolitan area that comprises Indonesia's capital, Jakarta. Shortly after its description, the Tapanuli orangutan was categorized as critically endangered on the IUCN Red List due to its decreasing population trend — down by 83% in just three generations — and heavily fragmented distribution.
Puerto Rico declares emergency as drought leaves nearly 150,000 residents without water - Puerto Rico’s Governor Wanda Vázquez declared a state of emergency on June 29 due to an ongoing drought that has hit the island. On July 2, the Puerto Rico Electric Power Authority (PREPA) began limiting water services for nearly 150,000 residents for 24 hours every other day in an effort to strictly ration water on the island, including the island’s capital, San Juan, indefinitely. More than 32 percent of the island is experiencing a severe drought, while another 54 percent is experiencing a moderate drought, according to the US Drought Monitor. This has mainly affected the South and Northeast of the island. PREPA, the island’s utility company, has warned residents not to stockpile tap water, which has resulted in the limited availability of bottled water at grocery stores as people rush to buy essential reserves. The drought is made all the more dire by the ongoing coronavirus pandemic. The US territory has had over 9,600 confirmed and likely cases of COVID-19 and 167 deaths as of July 12. So far, the island’s capital San Juan has been the epicenter. There were 669 cases reported on July 6, the largest daily total to date. Since Governor Vázquez’s return to work policy was enacted back in May, there has been a sharp increase of cases throughout the island. A lack of consistent running water will make it more difficult to follow the Centers for Disease Control and Prevention guidelines that everyone wash their hands frequently, and will severely handicap people’s ability to take showers and wash their clothes. The emergency declaration of June 29 prohibits, in most municipalities, watering gardens, filling pools, and the use of a hose and non-recycled water to wash cars. Those who are caught can be fined $250 for individuals and $2,500 for businesses.
COVID-19 and the Global Food Supply: Big Lessons From the World’s Small Farms - The COVID-19 pandemic has revealed both the strengths and limitations of globalization. The crisis has made people aware of how industrialized food production can be, and just how far food can travel to get to the local supermarket. There are many benefits to this system, including low prices for consumers and larger, even global, markets for producers. But there are also costs — to the environment, workers, small farmers and to a region or individual nation's food security. These costs have led many people to look once again at the benefits of small farms and locally produced fruits, vegetables and meat. Of course, farmers on relatively small plots producing for local markets are the norm in developing countries. While it has many benefits, small-scale agriculture is far from idyllic. It often translates into low incomes and even poverty. But it doesn't have to. There are many successful initiatives to help farmers raise their productivity and incomes, improve their communities and amass capital to expand agricultural output and start small businesses. All of this can be done in an environmentally sustainable manner that builds resilience to external shocks, including climate change and even pandemics. As Edd Wright, World Neighbors Regional Director for Southeast Asia notes, "In Timor-Leste, to control the spread of the virus the government called a State of Emergency, which included the closing of all markets where people would normally buy and sell their weekly basic goods. Small-scale farmers have continued to have a secure supply of food during this emergency as they predominantly live off what they grow on their own land." These holistic community-based development programs also improve health and sanitation, teach literacy and help develop local leaders who plan and advocate for their communities. Successes in farming communities in Nepal, India, East and West Africa, Guatemala, Peru, Burkina Faso, and several other countries hold lessons for those in the US who look to small farms as a way to build resilience and food security. "Small-scale agricultural producers have a strong capacity for innovation," notes Do Christophe Ouattara, World Neighbors Senior Program Officer in West Africa. "In Burkina Faso, indigenous soil and water conservation techniques improve production and contribute considerably to food security."
US Corporations a Driving Force Behind ‘Unprecedented Wave’ of Global Land Privatization: Report - A study released Tuesday by the Oakland Institute details an “unprecedented wave of privatization of natural resources that is underway around the world”—one that is largely being driven by the United States and its allies. According to the progressive think tank’s report (pdf), “Driving Dispossession: The Global Push to Unlock the Economic Potential of Land,” governments around the world—particularly in developing countries—are often put under pressure by financial institutions and Western agencies to open up land for so-called “productive use” by miners, agribusiness interests, and other corporate entities intent on exploiting natural resources for profit. The U.S. in particular, the report says, is a “key player in an unfettered offensive to privatize land around the world.” NEW REPORT: Uncovers the global push to put land into “productive use” & how privatization efforts destroy the livelihoods of local communities, family farmers & Indigenous#Ukraine#Zambia #Myanmar #Srilanka #Brazil #PNGhttps://t.co/APrjgQmBpUpic.twitter.com/cxcSWuQkLf — Oakland Institute (@oak_institute) July 14, 2020 With deforestation and fossil fuel extraction helping to fuel the climate crisis, governments are being pushed in a direction that’s “just the opposite of the drastic shift we need to win the struggle against climate change,” Frederic Mousseau, policy director of the Oakland Institute and lead author of the report, said in a statement. “Most of the land on our planet, especially in the Global South, is public land or land held under customary tenure systems [and] is seen as an obstacle to exploitation and economic growth,” Mousseau said. The Oakland Institute included in its report six case studies in Ukraine, Myanmar, Sri Lanka, Zambia, Papua New Guinea, and Brazil, finding that global land privatization is often directly driven by U.S. interests.
Over 300 Groups Oppose Duckworth Water Privatization Bill - Over 300 groups on Monday urged Senate leadership to reject a bill currently under consideration that would incentivize communities to sell off their public water supplies to private companies for pennies on the dollar."This bill is an egregious handout to giant water corporations which would embolden them to manipulate and fleece struggling communities—particularly communities of color," said Food & Water Action executive director Wenonah Hauter. "The fact that this bill is being touted as an 'environmental justice' measure makes it all the more nefarious."Food & Water Action led the demand in a letter taking aim at the "Voluntary Water Partnership for Distressed Communities Act," described in the document as "inappropriate, unjust, and unreasonable.""From California to Montana to New Jersey, we've seen how privatizing water harms communities, whether it's higher bills or dirtier water," Donald Cohen, executive director of In the Public Interest, said in a statement. "It's simple: water is a basic human right, which means let's keep it in public hands." The bill was introduced by Sens. Tammy Duckworth (D-Ill.) and Mike Braun (R-Ind.) and acts as an amendment to the America's Water Infrastructure Act of 2020. Critics charge the legislation induces poor communities to sell off their water rights. As the American Prospect's Robert Kuttner explained, doing so would likely spell disaster for affected communities: Privatized systems are typically less reliable, far more expensive, and prone to corrupt deal-making. The average community with privatized water paid 59% more than those with government supplied water. In New Jersey, which has more private water than most, private systems charged 79% more. In Illinois, they charged 95% more. Private water corporations have also been implicated in environmental disasters. The French multinational, Veolia, issued a report in 2015 certifying that Flint, Michigan's water system met EPA standards, but neglected to mention high lead concentrations. "We know that Wall Street actors target Black and brown communities in moments of crisis to enrich themselves and Wall Street-backed water companies see opportunity in this moment," Maurice BP-Weeks, co-executive director of letter signatory Action Center on Race and the Economy, said in a statement.
Nile dam: Egypt, Ethiopia and Sudan talks end with no deal - The latest round of negotiations between Egypt, Sudan and Ethiopia over the latter's contentious dam on the Blue Nile has ended with no agreement, according to Egyptian and Sudanese officials. "All of the efforts exerted to reach a solution didn't come to any kind of result," Egyptian Foreign Minister Sameh Shoukry said on Monday in an interview with Egypt's DMC TV channel. The failure sank modest hopes the three countries could resolve their differences and sign an agreement on the dam's operation before Ethiopia begins to fill the Grand Ethiopian Renaissance Dam (GERD), set to be Africa's largest. Addis Ababa had previously pledged to start storing water in the dam's vast reservoir at the start of the wet season in July, when rains flood the Blue Nile. The bitter dispute pits Ethiopia's desire to supply electricity to a significant portion of its population that lacks it and to become a major power exporter by selling its surplus, against downstream Egypt's concern that the colossal dam will significantly curtail its water supply if filled too quickly. Egypt, which is almost entirely dependent on the Nile for its fresh-water supplies, sees the project as a potentially existential threat. It is anxious to secure a legally binding deal that would guarantee minimum flows and a mechanism for resolving disputes before the dam starts operating. For its part, Sudan stands to benefit from the project through access to cheap electricity and reduced flooding, but it has also raised fears over the dam's operation, which could endanger its own smaller dams, depending on the amount of water discharged downstream daily. Years of talks with a variety of mediators have failed to produce a solution, with the latest round - mediated by the African Union (AU) and observed by US and European officials - proving no different. The three countries agreed they would send their reports to the AU president and reconvene in a week to determine next steps.
River Nile dam: Sudan blasts 'unilateral' move as Ethiopia dam fills – BBC - Sudan says River Nile water levels have dropped as a reservoir behind Ethiopia's Grand Renaissance dam has filled up, hitting out at "any unilateral actions taken by any party". Egypt has also demanded "quick official clarification" from Ethiopia. Both Sudan and Egypt are downstream, and fear the large dam will greatly reduce their access to water. Ethiopia sees the hydroelectric project as crucial for its economic growth and improving electricity supplies. "If Ethiopia doesn't fill the dam, it means Ethiopia has agreed to demolish the dam," Prime Minister Abiy Ahmed told parliament earlier this month. But state media have backtracked after reports on Wednesday that suggested the dam was being filled deliberately, though without making it clear whether the dam's gates had been closed. On Thursday Sudan's foreign ministry quoted an Ethiopian official as saying Ethiopia was not filling the dam and had not closed its gates. Earlier this week, talks between the three nations over the $4bn (£3.2bn) Grand Ethiopian Renaissance Dam (Gerd) ended without agreement, Ethiopian officials said, blaming "unchanged and additional and excessive demands of Egypt". Dialogue and a fair solution were needed, Sudan's Information Minister Faisal Saleh was quoted as saying on Monday by Reuters. Sudan said it had measured a noticeable decline in the flow of water at the al-Deim water station which borders Ethiopia. Years of fraught negotiations have failed to reach a consensus on how and when to fill the reservoir, and how much water it should release. Egyptian Foreign Minister Sameh Shoukry has previously warned that filling and operating the dam without an agreement "that protects the downstream communities… would heighten tensions and could provoke crises and conflicts that further destabilise an already troubled region". A conflict between Egypt and Ethiopia, which are both US allies, would put millions of civilians at risk.
Devastating Floods Along China's Yangtze River Spark Fears About World's Biggest Dam -- Some of the worst rainfall on record has punished China during flood season fueling new concerns the world's largest hydroelectric gravity dam is under stress. The #CCP claims that the #ThreeGorgesDam has "done its best" as water levels exceed their warning limits and concerns over the dam failing deepening.@JoshJPhilipp has the latest news on China's natural #disasters. Watch herehttps://t.co/ukgxutGo50 pic.twitter.com/WyCaIMxvxq ABC (Australian Broadcasting Corporation) reports at least 140 people have died in central and eastern China as floodwaters rise. In weeks, 28,000 homes have been destroyed in the Yangtze River region, with at least 33 rivers reaching record-high levels. The People's Daily newspaper said earlier this week that 1.5 million people have already evacuated from flood-prone regions. Vice Minister of Emergency Management Zheng Guoguan told reporters Monday some regions around the Yangtze river have recorded the highest rainfall in over a half-century. The country recently declared the second-highest emergency response level. Emergency teams have been dispatched to Jiangxi, a southeast Chinese province severely impacted by flooding. Reuters notes high waters along the Yangtze and surrounding lakes "prove the Three Gorges Dam isn't doing what it was designed for." "One of the major justifications for the Three Gorges Dam was flood control, but less than 20 years after its completion, we have the highest floodwater in recorded history," said David Shankman, a geographer with the University of Alabama who concentrates on Chinese floods. "The fact is that it cannot prevent these severe events." Fan Xiao, a Chinese geologist and significant critic of dam projects on the Yangtze, said dams are used for electricity generation and control, could "make flooding worse by altering the flow of sedimentation down the Yangtze." Shankman said the Three Gorges Dam has the ability to alleviate flooding in regular periods, but when extreme weather strikes, the dam is useless. "Residents in the Yangtze River basin in recent weeks have expressed concerns over the ability of the massive dam to handle more heavy rain, even though authorities have been releasing floodwater from the structure," said Fox News.
At least 14 dead in China after heavy rains cause landslide, dam overflow - At least 14 fatalities were reported in southern China Saturday following torrential flooding that caused massive landslides and a dam overflow, the Associated Press reported. Soldiers and workers constructed makeshift barriers along the Yangtze River using sandbags and rocks as floodgates of the Three Gorges Dam were opened due to floodwaters rising over 50 feet, according to the official Xinhua News Agency. The dam was holding back nearly 45 percent of the water, the report added. China National Emergency Broadcasting announced that over 20,000 people were evacuated, and 1,031 homes were destroyed from the floods. The heavy rains on Friday also resulted in landslides in Dunhao, a mountainous town in Chongquing, killing six. Three more were killed in the nearby Hubei province, according to a social media post from the region's emergency management department. The aftermath of the floods was broadcasted by CCTV, showing residents in the city of Enshi cleaning up muddy streets and shops after the floods on Friday. Rescue workers used inflatable rafts to save over 1,900 who were trapped in their homes and buildings in the way of the floodwaters. According to Xinhua, the overflowing waters were said to peak on Saturday behind the Three Gorges Dam, although more rain is forecasted to hit the area Tuesday. The seasonal rains, which are reportedly unusually high this year, were estimated to incur direct losses of more than 49 billion yuan ($7 billion), the Ministry of Emergency Management said.
NOAA Warns of 'Extraordinary' Increase in Coastal Flooding -The National Oceanic and Atmospheric Administration (NOAA) said Tuesday that a trend of increased coastalflooding will continue to worsen as the climate crisis escalates.Increased flooding is happening even without storms. "Nuisance" or "sunny day" high-tide flooding is becoming more commonplace across the U.S., according to the NOAA report that warns such flooding will worsen in the decades to come as seas continue to rise, according to USA Today.The agency noted record levels of high-tide flooding in 2019. Some of the hardest hit areas were on the Atlantic and Gulf coasts, where the increase in high-tide flooding has been "extraordinary," according to the report, 2019 State of High-Tide Flooding and 2020 Outlook.The number of days with high-tide flooding set or tied records in 19 places around the country last year, including Corpus Christi, Texas, which recorded 18 days of flooding; Galveston, Texas (18 days); Annapolis, Maryland (18 days); and Charleston, South Carolina (13 days), as The New York Times reported. The place with the greatest number of recorded flood days was Eagle Point, Texas, in Galveston Bay; it dealt with high-tide flooding on 64 days, or about one out of every five days.Those numbers represent huge jumps in a short period of time, the report found. In 2000, Corpus Christi had just three days of tidal flooding; Charleston had two. The report notes that Charleston recorded just 13 days of high-tide flooding in the more than 50 years that measurements were first kept — the exact amount that occurred in 2019 alone, according to The New York Times.The Southeast, on average, has seen a three-fold increase in flooding since 2000, according to NOAA.The Northeast will not be spared. NOAA predicts that from May 2020 to April 2021, the national high tide flood frequency is expected to accelerate, with U.S. coastal communities seeing an average of 2 to 6 days of flooding in the coming year. Communities along the northeast and western Gulf coasts are projected to see even more days of flooding, according to the report."America's coastal communities and their economies are suffering from the effects of high tide flooding, and it's only going to increase in the future," said Nicole LeBoeuf, acting director of NOAA's National Ocean Service, in a statement. "NOAA is committed to working with coastal communities to provide the information and data they need to tackle the problem of high tide flooding, both now and in the coming years as sea levels continue to rise."
Intense Heat Wave Bakes Much of the U.S. -A heat wave that set in over the South and Southwest left much of the U.S. blanketed in record-breaking triple digit temperatures over the weekend. The widespread and intense heat wave will last for weeks, making the magnitude and duration of its heat impressive, according to The Washington Post.The heat wave brought temperatures that soared above 110 degrees to some parts of the South over the weekend. While it scorched that part of the country, it is expected to linger around the nation's heartland as it moves north and east over the Ohio Valley this week, according to CBS News."The heat wave will be very long-lived, lasting multiple weeks in some areas with only a few days of near-normal temperatures during that span," said Jeff Masters, Ph.D., founder of the popular site Weather Underground and a regular contributor to Yale Climate Connections, to CBS News. "This will increase the odds of heat illness and heat-related deaths."The high temperatures in many parts of the country were 10 degrees above normal over the weekend. Las Vegas, Phoenix and Tucson all saw temperatures over 110 degrees. Dallas, San Antonio and Lubbock all exceeded 100 degrees. In New England, Boston and Providence had a heat index of 96 degrees. Other hot locations included Orlando, Florida, Montgomery, Alabama and Columbia, South Carolina, which all saw temperatures around 95 degrees Sunday, according to CNN. Lara Pagano told The Guardian that the heatwave is being caused by high pressure over the area that is being exacerbated by unusually low monsoonal moisture."Typically this time of year we tend to see more monsoonal moisture moving into the south-west so that can help temper some of the higher temperatures," she said. "It's been delayed."The Washington Post reported that by the middle of this week, a zone of high pressure coming down from southeast Canada will merge with a similar system in the west, combining into a synergistic continental-scale heat dome.
Colorado Wildfire Forces 1,000 to Evacuate - More than 1,000 people were told to evacuate their homes when a wildfire ignited in the foothills west of Denver Monday, Colorado Public Radio reported. The Elephant Butte Fire sparked in Evergreen, Colorado around 2:30 p.m., KDVR reported. As of Tuesday morning, it had spread to 50 acres and was zero percent contained, the Jefferson County Sheriff's Office tweeted. One of the families forced to evacuate Monday told CBS4 the land they fled had been in the family for 100 years. "It's completely made out of wood. It's a 104-year-old house. I've lived there all my life," teenager Aidan Lincoln told CBS4. "It's been there since before my dad was born. It means a lot to my family." Lincoln feared the family home had caught fire, but the sheriff's office says no homes have been lost. Fire officials also said no one had been injured as of 6:30 p.m. Monday, The Denver Post reported. The fire is burning in the Upper Bear Creek Road and Overlook Trail area, according to Evergreen Fire Rescue. The evacuation area initially covered a five-mile radius and around 250 homes but was later increased to cover around 1,000 homes. The Elk Meadow and Alderfer/Three Sisters parks were also both closed because of the blaze. There were more than 100 people fighting the fire Monday and at least three air tankers and several helicopters, Colorado Public Radio reported. Monday's weather made battling the flames more difficult. Firefighters on the ground had to pause in their efforts a little before 7 p.m. Monday because of lightning in the area, and wind pushed the fire up into the treetops of one ridge. There was a little rainfall, but it proved disappointing. Conditions are expected to be more favorable Tuesday because of a cold front, KDVR reported.
NASA Forecast: Conditions Ripe for North Atlantic Hurricanes and Amazon Wildfires --NASA scientists say that warmer than average surface sea temperatures in the North Atlantic raise the concern for a more active hurricane season, as well as for wildfires in the Amazon thousands of miles away, according to Newsweek.As NASA pointed out in a statement, warm ocean temperatures near the equator draw the water northward. As the water moves away from the Amazon, the landscape becomes drier and more flammable. That means that fires set for agriculture and clearing land have an increased potential to grow out of control. Meanwhile, the additional moisture traveling north aids the development of hurricanes. "The fire season forecast is consistent with what we saw in 2005 and 2010, when warm Atlantic sea surface temperatures spawned a series of severe hurricanes and triggered record droughts across the southern Amazon that culminated in widespread Amazon forest fires," said Doug Morton, chief of the Biospheric Sciences Laboratory at NASA's Goddard Space Flight Center in Greenbelt, Maryland, in the NASA statement.Morton, who co-created the Amazon fire season forecast, analyzes the relationship between climate conditions and active fire detections from NASA satellite instruments to predict fire season severity. "Our seasonal fire forecast provides an early indication of fire risk to guide preparations across the region," Morton, noting that the forecast is most accurate three months before the peak of burning in the southern Amazon in September. Their model suggests that the regions that were hardest hit by the 2019 wildfires are at the highest risk again. Furthermore, the depleted resources as South American countries try to combat the COVID-19 crisis will exacerbate the problem by diminishing firefighting and emergency responder capabilities, according to Newsweek.
EPA ordered to reconsider New York efforts to tame downwind pollution - A three-judge panel chastised the Environmental Protection Agency (EPA) Tuesday, siding with states who had sued the agency to do more to battle cross-state pollution. New York and other states said the EPA had not done enough to restrict smog from downwind states, jeopardizing upwind states’ air quality. Tuesday’s decision from D.C.'s Court of Appeals criticized the EPA for resisting New York’s efforts to force more restrictive habits under the Clean Air Act’s “Good Neighbor Provision.” “The EPA offered insufficient reasoning for the convoluted and seemingly unworkable showing it demanded of New York’s petition,” the court wrote in its decision. The decision comes just a day after the EPA announced it would not seek to set more restrictive regulations on ozone pollution, commonly referred to as smog. It remands the case for further review, requiring the EPA to reconsider New York’s petition, which seeks to limit pollution from about 350 power plants and other polluting sources located across nine other states. “We are reviewing the decision,” the EPA said in a statement. The EPA has lost other, similar Good Neighbor cases, including a previous effort brought by New York alongside several other states, as well as another effort from Wisconsin. Environmental groups have pushed EPA to enact stronger smog standards for at least a decade, challenging the Obama-era ozone standard of 70 parts per billion (ppb). EPA’s proposal Monday would retain the current standard. “Based on a review of the scientific literature and recommendation from our independent science advisors, we are proposing to retain existing ozone standards which will ensure the continued protection of both public health and the environment,” EPA Administrator Andrew Wheeler said in a release. That group of science advisers, the Clean Air Scientific Advisory Committee (CASAC), faced heavy scrutiny in the first two years of the Trump administration after all its original members were replaced by either Wheeler or his predecessor Scott Pruitt. “EPA is effectively saying, ‘If it was good enough for Obama, it’s good enough for us,’ but that was basically their goal from day one,” John Walke, a senior attorney with the Natural Resources Defense Council, said Monday. Walke said the agency is ignoring a growing body of evidence that shows ozone pollution is still harmful to health when present in concentrations higher than 60 ppb. “The point of the scientific review isn't to determine whether this was good enough then — it’s to decide what the science tells you should be done today in 2020,” he said.
Global methane emissions soar to record high - Global emissions of methane have reached the highest levels on record. Increases are being driven primarily by growth of emissions from coal mining, oil and natural gas production, cattle and sheep ranching, and landfills. Between 2000 and 2017, levels of the potent greenhouse gas barreled up toward pathways that climate models suggest will lead to 3-4 degrees Celsius of warming before the end of this century. This is a dangerous temperature threshold at which scientists warn that natural disasters, including wildfires, droughts and floods, and social disruptions such as famines and mass migrations become almost commonplace. The findings are outlined in two papers published July 14 in Earth System Science Data and Environmental Research Letters by researchers with the Global Carbon Project, an initiative led by Stanford University scientist Rob Jackson.In 2017, the last year when complete global methane data are available, Earth's atmosphere absorbed nearly 600 million tons of the colorless, odorless gas that is 28 times more powerful than carbon dioxide at trapping heat over a 100-year span. More than half of all methane emissions now come from human activities. Annual methane emissions are up 9 percent, or 50 million tons per year, from the early 2000s, when methane concentrations in the atmosphere were relatively stable. In terms of warming potential, adding this much extra methane to the atmosphere since 2000 is akin to putting 350 million more cars on the world's roads or doubling the total emissions of Germany or France.
Global methane emissions rising due to oil and gas, agriculture - studies - (Reuters) - U.S. oil and gas drilling along with agricultural production worldwide are driving up global emissions of methane, a potent greenhouse gas, two new studies show. That marks a shift from the 2000s, when methane output from human activity came mostly from coal mines. But from 2007 through 2017, methane emissions have climbed on leaks from fossil fuel operations and on food production as people around the world eat more meat. In the United States, now the world’s top oil and gas producer, increased drilling by the industry contributed most to the rise. In South Asia, South America and Africa, growing agricultural activities such as livestock operations and farm waste caused methane levels in those regions to spike, both studies showed. A rise over China was attributed to both agriculture and fossil fuels. “It’s more robust evidence that fossil fuels and agriculture are both equally contributing to the increase of methane contributions in the atmosphere,” said co-author Ben Paulter, and environmental scientist at NASA Goddard. The two studies - published in the journals Earth System Science Data and Environmental Research Letters - update global knowledge on both natural and human-driven methane sources, or what is known as the Global Methane Budget. The last update was in 2016, and accounted for emissions up to 2012. Methane, an invisible gas, is more efficient in trapping heat than carbon dioxide. But it lingers for less time in the atmosphere, so reducing methane emissions could help to prevent the worst impacts from climate change. The only region shown to have lowered emissions between 2000 and 2017 was Europe. This was likely due to lower meat consumption and stricter regulations on landfills, where decomposing garbage releases methane, said Euan Nisbet, an Earth scientist at Royal Holloway, University of London, who did not contribute to the reports.
Trump administration has been underestimating costs of carbon pollution, government watchdog finds - The Trump administration has been systematically underestimating the damage caused by carbon pollution, according to a new report from the Government Accountability Office (GAO), slashing figures used under the Obama administration to weigh the impacts of policy. The reduced figure, known as the social cost of carbon, has been used by the Trump administration to justify a host of environmental rollbacks. While the Obama administration assessed a $50 cost to carbon, the Trump administration uses a $7 figure, nixing consideration of any international impacts carbon pollution from the U.S. might have. “The current federal estimates, based on domestic climate damages, are about 7 times lower than the prior federal estimates,” the GAO wrote in its report. Numerous government agencies weighing any policy with an environmental angle use the social cost of carbon to calculate the impact of its policies. A lower cost of carbon can make less restrictive environmental regulations appear more favorable. The review was requested by eight Democratic senators shortly after a 2017 executive order from President Trump disbanding a group working to update the methods for determining the social cost of carbon. "We need a social cost of carbon pegged to the best available science to plan and adapt,” Sen. Sheldon Whitehouse (D-R.I.), who requested the report, said in a release. “Instead, the Trump administration undermined the social cost of carbon, and then stuck its head in the sand when the federal government’s top scientists recommended implementing important changes," he added. "Shutting off the headlights of science and sound economics makes it more likely that we’ll drive straight off a climate cliff.”
The Trump administration cooks the climate change numbers once again - In its campaign against action on greenhouse gas emissions, one of the more subtle moves by the Trump administration is its manipulation of the Social Cost of Carbon (SCC). This number is used to represent the damage resulting from emitting an additional ton of carbon. Climate economists sometimes refer to it as the most important number you've never heard of. Undermine the SCC and you can discredit action to fight climate change, boost support for the fossil fuel industry, tip the scales away from renewable energy and counter other important policy initiatives. Fortunately, in a detailed report on the estimation of the SCC, the congressional watchdog General Accounting Office has called out this latest affront to reliable assessment of the science and risks of climate change. The SCC is a key input to the benefit-cost analyses required of all federal regulatory actions, and thus is an important factor in their justification. The federal SCC estimate has also been adopted by several states. Examples of the SCC’s use are abundant, including the setting of reasonable federal standards for the performance of private automobiles and appliances. Estimating the SCC requires joint consideration of natural and social science aspects of the climate change problem. A federal working group spent nearly a decade on this process. Recognizing that the underlying methodology needed rigorous and impartial review, the interagency group commissioned a comprehensive update by the U.S. National Academy of Sciences (NAS). The 2017 NAS report supported the previous approach to valuing the SCC, recommending a program of research and analysis to improve the estimate. The Trump administration did not follow this recommendation. Instead, it imposed measures to hobble reliable estimation of the SCC. The earlier working group was disbanded, associated documents were withdrawn and the NAS study was ignored. Instead, changes were made to limit the SCC’s scope and the weight it gave to future generations. These changes cannot be justified by either the science or the standards deemed acceptable for benefit-cost studies. As a result of the administration’s changes, the previous central value for the SCC – roughly $50 per ton of CO2 – was reduced by nearly 90 percent. These changes are misguided and pernicious. They limit damages to those occurring within U.S. borders, and thus reflect a tragic misunderstanding about climate change and the U.S. national interest. CO2 emissions, primarily from the burning of fossil fuels, impact every person on the planet, regardless of the geographical location of the source. To limit current and future climate change damages, it is in the U.S. national interest not only to reduce its own emissions, but also to encourage other countries to do the same. The administration’s near-zero SCC does just the opposite, offering other countries a pretense for adopting positions that mimic those of the world’s second-largest emitter.
EPA declines to tighten smog standards amid pressure from green groups -The Environmental Protection Agency (EPA) on Monday did not propose more ambitious standards for reducing smog despite pressure from environmental groups and even some courts that had urged the agency to set more restrictive regulations on the pollutant. The Monday proposal would retain the 70 part per billion (ppb) standard for ozone, commonly referred to as smog, set under the Obama administration. That standard has faced numerous lawsuits from environmental and health groups. “Based on a review of the scientific literature and recommendation from our independent science advisors, we are proposing to retain existing ozone standards which will ensure the continued protection of both public health and the environment,” EPA Administrator Andrew Wheeler said in a release. That group of science advisers, the Clean Air Scientific Advisory Committee (CASAC), faced heavy scrutiny in the first two years of the Trump administration after all its original members were replaced by either Wheeler or his predecessor Scott Pruitt. “The cherry-picked CASAC gave the Administrator the answer he wanted to hear,” Chris Frey, a former director of CASAC, wrote on Twitter, saying the later review done by CASAC was “hamstrung/undermined.” Ozone helps create a layer in the stratosphere to protect Earth from the sun’s ultraviolet light, but when it is at ground level, it can contribute to asthma attacks and other respiratory issues. Critics say the EPA’s latest proposal falls short of what is needed to protect health, and health and environmental groups have suggested a more restrictive standard of 60 ppb. “EPA is effectively saying, ‘If it was good enough for Obama, it’s good enough for us,’ but that was basically their goal from day one,” said John Walke, a senior attorney with the Natural Resources Defense Council. Walke said the agency is ignoring a growing body of evidence that shows ozone pollution is still harmful to health when present in concentrations higher than 60 ppb. “The point of the scientific review isn't to determine whether this was good enough then — it’s to decide what the science tells you should be done today in 2020,” he said. A court on Friday said the EPA erred when it found five different states were meeting ozone regulations, while other cases from late last year said the EPA hasn’t done enough to limit cross-state air pollution. “The agency is supposed to be answering a very simple question: What level of air pollution harms health?” Paul Billings, senior vice president of advocacy for the American Lung Association, said of both the court rulings and the opportunity to update the standards.
Joe Biden unveils $2 trillion green infrastructure and jobs plan -- Former Vice President Joe Biden released a sprawling plan Tuesday to revamp American infrastructure and energy to both curb climate change and spur economic growth. The presumptive Democratic presidential nominee's proposal aims to achieve carbon-free power generation by 2035. As the coronavirus pandemic leaves the U.S. mired in an economic crisis, Biden said he will set out to create "millions" of union jobs that pay at least $15 per hour as the U.S. overhauls its roads, bridges, trains, auto industry and broadband system. The plan, which comes days after a joint task force formed by the Biden and Sen. Bernie Sanders campaigns outlined a climate change agenda, sets out a more ambitious approach to developing clean energy than the Biden campaign did during the Democratic primary. It calls for $2 trillion in spending over four years, more than the $1.7 trillion the campaign previously proposed to spend over a decade. "Even if we weren't facing a pandemic and an economic crisis, we should be making these investments anyway," Biden said of the plan during remarks in Delaware. He called the investments "critical" for the economy and public health. The Democratic presidential hopeful also aims to use the federal government to reverse years of Trump administration efforts to ease environmental rules, including by setting up an environmental and climate justice division within the Justice Department. The campaign said it would create tools to better monitor and root out pollution that disproportionately leaves communities of color with chronic health issues. "We need to be mindful of the historical wrongs and damage" that companies have done to vulnerable communities, which are often composed of people of color, Biden said. He added that he aims to hold chief executive officers more accountable for practices that leave neighborhoods polluted. The Biden campaign did not say how it would pay for the infrastructure investments. The former vice president supports increasing taxes on corporations and the wealthiest Americans.
Republicans say Biden energy plan will help GOP in rust belt states - Top Republicans are looking to target presumptive Democratic presidential nominee Joe Biden’s $2 trillion climate and infrastructure plan, expressing confidence the former vice president’s position on issues like fracking will give them an edge in the rust belt states heading into November. Biden unveiled his ambitious plan to make electricity generation carbon-free by 2035 on Tuesday. This plan follows his existing $5 trillion climate plan that incorporates elements of the Green New Deal, a progressive policy spearheaded by firebrand freshman Rep. Alexandria Ocasio-Cortez (D-N.Y.). However, Republicans have repeatedly bashed the Green New Deal as a socialist takeover in their messaging strategy. During a Trump campaign call on Tuesday featuring House Minority Whip Steve Scalise (R-La.) and Rep. Mike Kelly (R-Pa.), the lawmakers told reporters they believe climate and energy are winning issues for Republicans in key states necessary in retaining the White House and down ballot. Biden’s proposal is a sharp contrast to President Trump's policies. Democrats have repeatedly attacked the GOP for not prioritizing an agenda to combat climate change, but Republicans argue Biden’s plan to shift away from the country’s reliance on fossil fuels will be off-putting to swing voters in states that rely on natural gas and oil jobs. “We have hundreds of thousands of jobs — over 250,000 jobs would be lost, under Joe Biden's Green New Deal energy plan. You would see higher energy costs, and you would see who gets hit the hardest — it’s low-income families," Scalise said during the call. Scalise also took a swing at Biden over Solyndra, the solar manufacturer that received $535 million in stimulus dollars in 2009 recovery package before going bankrupt, arguing the policies laid out would lead to an influx of similar instances. “We'll see Solyndras all across the nation — failed energy policy, which would lead to higher energy costs and lost jobs. And what I represent Southeast Louisiana, and our economy, we've been very active in the production of energy,” Scalise said. Kelly echoed Scalise’s sentiments, adding that he believes the shift away from fossil fuels and fracking could have negative implications in unexpected areas. "If Joe Biden really cared about Pennsylvania, why would he proposed killing over 600,000 jobs that are supported by fracking in a state that's provided stability and health care to families across the state."
Donald Trump scales back environmental protections to help economy - President Trump finalized a major overhaul Wednesday of one of the country’s most consequential environmental laws on the grounds that it has slowed the construction of highways, pipelines and other major projects across the country.The sweeping changes to the 50-year-old National Environmental Policy Act, which opponents have vowed to fight in court and reverse if Democrats regain control of the executive and legislative branches this fall, underscore the stakes in this year’s election. The law requires the federal government to analyze the impact of a major project or federal action on the environment — and to seek public input — before approving it. Trump and his allies in business and industry argue that the law has proved costly and cumbersome to developers. But supporters say it provides Americans — particularly those in poor and minority neighborhoods that bear the brunt of many polluting industries — with a say on proposals that will affect them for decades to come.Trump chose Georgia, which has emerged as a battleground state in this year’s presidential and Senate elections, as the site for unveiling his move. At Wednesday’s event in Atlanta, he noted that his action is expected to cut down the length of time for a highway expansion plan there to two years from the original seven.“We’re going to give every project a clear answer: Yes or no,” Trump said to applause. A White House official said the move will benefit the UPS hub by reducing congestion and promoting economic development in the region.The president can’t amend the law, but he intends to change the rules governing the way it is implemented. He wants to exempt some projects and activities from environmental review altogether while speeding up the time frame for reviews for other projects. In one of the most contentious changes, federal agencies would be told not to consider the climate impact of burning fossil fuels extracted from public lands and waters.
'Historic breakthrough': Trump overhauls NEPA -- Wednesday, July 15, 2020 -- President Trump this afternoon trumpeted the completion of rules to overhaul implementation of the National Environmental Policy Act.Speaking at UPS Inc.'s airport hub in the Atlanta area, the president touted his administration's three-plus-year effort to rewrite the rules surrounding NEPA. He declared that his plan would jump-start the economy that has been depressed by the pandemic."We are here to celebrate a historic breakthrough that will transform the lives of workers and families across the nation," said Trump."For decades," he added, "the single biggest obstacle to building a modern transportation system has been the mountains of bureaucratic red tape." Fewer industry supporters made the trip than usual because of social distancing concerns, sources told E&E News (Greenwire, July 15). The changes, proponents say, will "modernize" the intensive permitting process associated with approving pipelines, port terminals, renewable power plants, border walls and other infrastructure projects throughout the country.NEPA, enacted 50 years ago, requires federal agencies to examine the consequences on communities and consider alternative options. Greens stress that NEPA allows communities to challenge bad projects.Trump said his plan would cut the federal permitting process from more than 20 years down to two while still ensuring that the environment was protected.The president added that the regulation would codify the "One Federal Decision" principle to prevent companies from having "to go through nine, 10, 12 different agencies" to complete environmental review.
Trump Admin Overhauling Environmental Reviews-- President Donald Trump said his administration is overhauling environmental reviews of infrastructure projects to clear the way for construction to be completed faster, a step environmentalists said will benefit polluters. “For decades the single biggest obstacle” has been “mountains and mountains of red tape,” Trump said Wednesday at a United Parcel Service Inc. hub at Atlanta’s airport. “We’re doing something very dramatic.” The administration is rewriting rules for how agencies consider the environmental implications of new oil wells, pipelines, highways, and other projects, limiting both the scope of federal agency reviews as well as what projects must be scrutinized. The White House Council on Environmental Quality had proposed the new procedures under the National Environmental Policy Act in January. The president has long complained that environmental reviews are too burdensome, and said he wants the federal government to give developers a quick yes-or-no answer about whether their infrastructure projects pass environmental muster. The White House says the new rule will have immediate impact on planned construction efforts, saying proposals like the effort to expand the I-75 highway in Atlanta -- which feeds the UPS hub -- would be permitted within two years, cutting roughly five years off the process. The president has said he’s particularly eager to get construction projects going as the coronavirus pandemic continues to batter the U.S. economy, and has called for additional funding for infrastructure as part of the next stimulus bill being negotiated on Capitol Hill. The move was cheered by developers, manufacturers and the oil industry, which said it would help unleash projects and drive an economic recovery. “Modernizing and clarifying NEPA could not come at a better time for our country, as we are recovering from COVID-19,” said Anne Bradbury, head of the American Exploration and Production Council representing oil producers. “NEPA permitting reforms will allow the U.S. to safely build energy infrastructure, provide job opportunities to American communities, and help expand our national economy.” Still, the new regulations are likely to face a legal challenge from environmental groups who say the rush to approve projects could weaken a tool used to help protect front-line communities that live next to highways, power plants and other infrastructure. “This may be the single biggest giveaway to polluters in the past 40 years,” said Brett Hartl, government affairs director at the Center for Biological Diversity, a conservation group that has sued over NEPA violations. Critics also say the effort could backfire, because streamlined reviews that fall short of its mandates could be struck down in court. “Even though the president has said that he wants to make this process more efficient and effective, it’s going to make it even worse, because it’s going to create more litigation and uncertainty,” said Sharon Buccino, senior director of the lands division at the Natural Resources Defense Council. “The controversy and the confusion around these projects is going to increase, rather than decrease.”
Trump Announces Final Rollback of Law That Gives Communities a Say in Fossil Fuel Projects - President Donald Trump announced the final rollback of the "Magna Carta" of U.S. environmental laws on Wednesday, The New York Times reported.The target of Trump's latest rollback is the National Environmental Policy Act (NEPA), which was signed into law by Richard Nixon 50 years ago, CNBC explained. It requires the federal government to consider the environmental impacts of major infrastructure projects like pipelines and highways and gives communities a chance to speak up on projects that will impact them. Advocates say its rollback will disproportionately harm low-income communities of color, who tend to be exposed to higher pollution levels."The Trump administration's anti-environment agenda is a racist agenda. Dismantling NEPA is a blatant attempt to silence the working class communities of color who are resisting the expansion of fossil fuel infrastructure into their communities," Greenpeace senior climate campaigner Lisa Ramsden told CNBC. NEPA has recently been instrumental in key legal setbacks for controversial energy projects like the Dakota Access and Keystone XL pipelines, NPR pointed out.Trump announced the rollback, which was first proposed in January, at the UPS Hapeville Airport Hub in Atlanta, Georgia. He recalled being frustrated by the slow pace of the NEPA process as a construction magnate in New York and said the revised regulations would speed the expansion of I-75, a major Georgia thoroughfare for truckers, BBC News reported."This is a historical breakthrough that means better roads and highways," Trump said, as BBC News reported. "We are reclaiming America's proud heritage as a nation that gets things done." Specifically, the administration is making the following changes, as The New York Times reported:
- Environmental studies will have to be completed in only one to two years.
- Certain activities will be exempted from environmental reviews altogether.
- Federal agencies will no longer have to consider a project's "cumulative" effects on the environment, such as its impacts on the climate crisis.
Trump argued that the changes would save hundreds of millions of dollars over almost a decade because they would speed reviews. He has also pushed to loosen regulations to boost the economy in the wake of thecoronavirus pandemic. In June, he signed an executive order mandating agencies bypass NEPA in order to expedite certain projects.
FERC Tries to Undercut Renewable Energy – Again | NRDC - The Federal Energy Regulatory Commission voted today on a series of changes that threaten to undercut small wind, solar and other clean energy sources. The decision could lead to more pollution by propping up fossil fuel power plants. The following is statement from Tom Rutigliano, an advocate in te Sustainable FERC Project, which is housed at NRDC (Natural Resources Defense Council): “This order runs counter to the purpose of the law. Instead of promoting small, clean generation, FERC is undercutting the ability of solar and wind power to get a fair chance to compete. “Homeowners putting solar panels on their roof, farmers leasing their land to wind turbines, and industrial facilities with efficient on-site power all lose under FERC’s rule today. “FERC is pushing the nation to use more fossil fuels just when it should be doing everything it can to support clean power. FERC did one thing right today in rejecting the outrageous petition that would have upended the ability of rooftop solar owners to get a fair price for the excess electricity they generate." For forty years the Public Utility Regulatory Policies Act has helped grow clean power. Congress wrote PURPA to guarantee small wind, solar, and other clean power sources get a fair chance to compete by requiring utilities buy energy from them at a fair price. It also prohibits utilities from creating administrative barriers that block small, clean power installations from competing. Among other things, the rules FERC adopted today make it easier for utilities to refuse to buy power from renewable generators, lower the price clean-energy sources get paid and remove the guarantee that small clean power plants can connect to the power grid. This order attacking small-scale clean energy follows FERC’s Minimum Offer Price Rule from last year, which would push many large-scale renewable power plants out of capacity markets.
FERC’s New PURPA Rule Undermines Clean Energy Projects, Advocates Say - The Federal Energy Regulatory Commission has changed the rules for a federal law that allows independent energy projects to secure utility contracts for their power. Utility groups say the changes will reduce costs for customers, but clean-energy groups and independent power developers say they’ll stifle open competition. FERC’s new rule for the Public Utilities Regulatory Policies Act (PURPA), which closely matches its proposal from last year, passed by a 3-1 vote Thursday over the objections of the commission’s sole Democrat, Richard Glick. In FERC’s Thursday meeting, Chairman Neil Chatterjee said the new rule represents a “wide-ranging and comprehensive set of reforms” to how the 1978 federal law is implemented. Under PURPA, utilities in states without wholesale energy markets must contract with independent power projects, known as qualifying facilities (QFs), if they can produce electricity at less than the utility’s avoided cost of generation. But Glick echoed criticisms from clean-energy and environmental advocacy groups that FERC’s new rule fails to reform key problems in how PURPA has been implemented on a state-by-state basis over the past decade. He also cited new changes that could undermine PURPA’s goal of creating a level playing field for independent energy developers in regions where vertically integrated utilities hold monopoly power. “One of PURPA’s requirements is to encourage QFs,” he said at the meeting. But after reading the draft final rule, which has not yet been publicly released, he added, “I have a hard time seeing how it encourages it. I think it actually discourages QF development.”
15 states, DC will collaborate on 100% electric truck sales by 2050 - Governors from 15 states and the mayor of Washington, D.C., signed a memorandum of understanding (MoU) to ensure 100% of medium- and heavy-duty sales are zero-emissions vehicles (ZEV) by 2050, according to a Northeast States for Coordinated Air Use Management (NESCAUM) press release. The group has an interim target of 30% electric vehicle (EV) sales by 2030. The participants will work through NESCAUM's Multi-State ZEV Task Force, created in 2013. The task force's latest action plan, released in 2018, focused on light-duty passenger vehicles. Under the MoU, the group will develop and implement a plan for trucks and buses. Thirty-seven businesses, including DHL, Ikea, Pepsi and Unilever, signed a letter in support of the MoU. "Electrification of many commercial vehicle applications still face significant challenges around higher upfront costs, range, weight, charging time, and infrastructure deployment. A coordinated multi-state approach to implementation of market-enabling initiatives is required," the letter reads. The MoU represents the "largest multi-state action on clean transportation in U.S. history," according to a press release from nonprofit Ceres, which leads the Corporate Electric Vehicle Alliance that was formed in January. Cosignatories to the letter supporting the MoU said a multi-state approach "is required" given the "significant challenges around higher upfront costs, range, weight, charging time, and infrastructure deployment" for commercial EVs. The MoU follows the California Air Resources Board's (CARB) rule for EV sales, passed late last month. Though the memorandum doesn't mandate policy, NESCAUM Executive Director Paul Miller told Transport Dive it gives states the opportunity to follow in the Golden State's footsteps. "We all recognize we're in tough economic times. And at the same time, I think, collectively, we want to come out of this ... stronger than the way we came in," Miller told Transport Dive in an interview. "And things like getting off petroleum where we can not only helps the resiliency of the industry, it also serves our state's goals of addressing climate and public health issues." According to the Department of Energy, switching from using solely petroleum to using a variety of alterative fuels can make the industry "more resilient to natural disasters by improving the redundancy of its supply, increasing local storage, strategizing access to that storage, expediting resupply, and improving the efficiency at which that fuel is used for transportation purposes." Natural gas, propane and electricity all come from different sources, increasing redundancy. Participating jurisdictions will develop an action plan within six months to identify barriers and propose solutions to reach the goals, according to the MoU. They'll consider financial and non-financial vehicle and infrastructure incentives, funding models, coordinated outreach and education for fleet managers, utilities needed for a charging infrastructure, measures to encourage use of electric trucks in densely populated areas, weight restrictions that are barriers to EV deployment, and standards and data collection requirements, among other areas.
The Future For Connecticut's Trash Remains Uncertain --After years of debate and study, the future of Hartford’s aging trash-to-energy facility is finally beginning to crystalize. And Connecticut’s trash future may end up looking a lot like a step into the past: sending garbage to landfills.. “We don’t like the choices we have, but wishing for better choices doesn’t make them appear,” said Tom Kirk, president of the Materials Innovation and Recycling Authority (MIRA).MIRA recently submitted an operational plan to state officials, asking for $330 million to help refurbish the struggling plant in Hartford. That plant has been plagued by troubles in recent years, including several closures that caused trash to pile up outside.But according to the Department of Energy and Environmental Protection, the plan was years overdue and inadequate.In a July 14 letter, DEEP asked for a revised plan and issued a pointedly worded media release: “State Rejects MIRA Plea for Hundreds of Millions in Subsidies for Hartford Waste Incinerator.”“The concept of investing that kind of subsidy in a decades-old facility, decades-old technology, is in our view, really not moving us forward in terms of more sustainable solutions for our state,” DEEP Commissioner Katie Dykes said during a news conference Wednesday morning. But Kirk said the Hartford trash-to-energy facility, which handles about one-third of the state’s trash, needs money now to stay online. MIRA has contracts to take trash from more than 50 Connecticut towns through 2027. “Absent capital infusion it will shut down ... in the next couple of years,” Kirk said. “And we will have no option but to take the waste and put it on trucks and send it to other states for disposal in landfills.”
The Wood Pellet Business is Booming. Scientists Say That’s Not Good for the Climate. - In rural Southern towns from Virginia to Texas, mill workers are churning out wood pellets from nearby forests as fast as European power plants, thousands of miles away, can burn them. On this side of the Atlantic, new pellet plants are being proposed in South Carolina, Arkansas and other southern states. And Southern coastal shipping ports are expanding along with the pellet industry, vying to increase deliveries to Asia.While the United States has fallen into a coronavirus-induced recession that dealt a blow to oil, gas, and petrochemical companies, for biomass production across the South, it's still boom time. The industry has exploded, driven largely by European climate policies and subsidies that reward burning wood, even as an increasing number of scientists call out what they see as a dangerous carbon accounting loophole that threatens the 2050 goals of the Paris climate agreement.This month, the Environmental Protection Agency, acting at the direction of the U.S. Congress, is expected to propose securing that loophole with a new rule that details how burning biomass from forests can be considered carbon neutral, at least in the United States.The industry wants to see regulations that will keep their businesses growing, including expanding U.S. energy markets that now barely exist. But some scientists and environmental groups argue that new EPA rules that are favorable to the industry would put the climate at further risk, along with forest ecosystems across biologically rich landscapes."Burning wood puts more carbon dioxide in the air right now, today, with certainty, than the fossil fuels you were burning," said John Sterman, a professor of management and engineering at the Massachusetts Institute of Technology, who has published peer-reviewed research on lifecycle carbon emissions from burning wood pellets. To solve the climate crisis, he said, "emissions from fossil fuels need to go down rapidly, but it is equally important to keep the carbon in forests on the land.".For their part, the industry leaders believe they have science on their side, making a case that wood pellet production is barely putting a dent in the carbon-storage capacity of forests in the South. The industry wants EPA rules that "recognize the benefits of bioenergy," and that provide certainty, said Paul Noe, vice president of public policy for the American Forest & Paper Association, a lobbying group for the paper and wood products industry. "Is it recognized as being beneficial, or is it, as some say, worse than burning coal? You have to know where you stand," he said. "We have been waiting for an answer for a decade."
Ohio State power plant case pits clean energy technologies against each other - A $290 million project that’s expected to shrink The Ohio State University’s carbon footprint by about a quarter is facing pushback from the Sierra Club, which wants to make sure the school evaluated cleaner renewable options. The Ohio State University submitted plans last fall to build a 105.5-megawatt gas-fired power plant for combined heat and electricity on campus. The facility would anchor a new microgrid and district heating and cooling system for the campus core and an adjacent innovation district. Figures on costs and greenhouse gas reductions come from the university’s April 2020 climate action plan.The Sierra Club questions the decades-long investment in more natural gas infrastructure at a time when renewable energy and storage technologies have become economically competitive. The organization maintains that the university didn’t comply with a state law requiring minimum environmental impacts unless it fully evaluated those technologies before committing to the new fossil fuel generation. “This is a new gas plant that will be built on campus in Columbus,” said Neil Waggoner, senior campaign representative for the Sierra Club’s Beyond Coal Campaign. “This is just adding more local generation and local pollution.”The Ohio Power Siting Board’s evidentiary hearing is currently set to start on July 14. On July 7, Administrative Law Judge Sarah Parrot ordered Ohio State to provide the Sierra Club with certain materials and information it had sought in discovery about the extent to which the school had considered all-renewable alternatives, such as solar and wind. Combined heat and power, or CHP, has been recognized as a clean energy strategy in Ohio since 2012. The concept is that when one fuel — usually natural gas — does double duty for heat and electricity, it avoids greenhouse gas emissions and other pollution that would result from using separate fuel sources. The technology can also increase energy efficiency and save money. Combined heat and power can also play a role in resilience planning. At New York University, for example, a campus microgrid used gas-powered combined heat and power to keep the lights on after Hurricane Sandy caused major disruptions to Manhattan’s power grid in 2012. Similarly, Ohio State’s proposed facility would set up “a microgrid for the Columbus campus to increase the campus energy resiliency and reliability,” said Scott Baker, Ohio State’s senior director for comprehensive energy management, in his prehearing testimony filed on July 6. The project would also reduce the amount of power Ohio State must buy from the market, he said.
Second Public Hearing Planned for OSU Power Plant -The Ohio Power Siting Board has scheduled a second public hearing to gather feedback on a proposed combined heat and power plant on Ohio State University’s main campus. The hearing will be held virtually on August 4 at 6 p.m., utilizing the Webex platform. The plant, which is proposed for a piece of OSU-owned land at the northeast corner of Tharp Street and Herrick Drive, would provide electricity and heat to the central campus and to the planned expansion of west campus. Several environmental organizations, led by the Sierra Club, have lined up in opposition to the plant, arguing that the university should be exploring more climate-friendly alternatives that do not rely on fracked natural gas to operate. Ohio State maintains that the plant will serve as a bridge to a carbon-free future and will lead to a 35% cut in carbon emissions in its first year of operation. Twenty people expressed their opposition to the proposal at a three-hour virtual hearing held on June 30, voicing concerns about the climate impact of the plant as well as worries about pollution both in Columbus and at the source of extraction in eastern Ohio. Only one participant, an OSU professor, spoke in favor of the proposed plant.
Solar firm buying land rights near coal plants with eye toward transmission -- A utility-scale solar developer is acquiring land rights near U.S. coal-fired power plants, hoping the facilities will close sooner than expected and open up lucrative transmission connections. Photosol US, a subsidiary of a French company, has purchased options near plants in Nebraska and Kansas, as well as the San Juan Generating Station in northern New Mexico. While the San Juan plant has approval from state regulators to shut down in 2022, the Nebraska and Kansas plants, completed in the early 1980s, do not have retirement dates. Josh Case, Photosol’s chief executive officer, intends to develop two arrays — one with 400 megawatts and one with 250 megawatts — on 5,000 acres he has under lease option near Nebraska’s Gerald Gentleman station. He pays an annual fee to maintain the option to lease the acreage. Photosol has applied to the Southwest Power Pool for interconnections for those projects as well as two 125-megawatt arrays near the Holcomb power plant in western Kansas. He has options to lease 2,400 acres near the Holcomb plant. The Nebraska arrays would include 325 MW of battery storage. Renewable projects often rise or fall with the price to connect to the grid, and Case said he can pay the price the Southwest Power Pool gave him to connect his 400-megawatt project to the SPP system. He’s waiting to learn what the grid operator will charge to connect the other three arrays to the grid. He didn’t identify any buyers, but said only that he is “marketing to all potential off-takers.” Case has purchased lease options on about 30,000 acres across the country, including 4,200 near the San Juan Generating Station in New Mexico. The state’s utility regulators in April gave the plant’s owners permission to shutter the remaining two units, with a capacity of about 850 MW, on June 30, 2022. Two other units were closed in 2017. The plant’s future is still not clear. Eric Chavez, a spokesperson for the majority owner, the Public Service Company of New Mexico, said the city of Farmington, which owns 5% of the plant, is negotiating to possibly purchase the other 95% percent of the plant to install a carbon capture system. Chavez said the utility, which owns 66% of the station, “has thoroughly assessed this technology and modeling has concluded that, for PNM, continued operations of the San Juan coal plant with carbon capture would not benefit our customers.” If the vision does not come to fruition, the plant will close in June. Chavez said the Federal Energy Regulatory Commission would allocate transmission capacity through its public transmission-rights process.
Blackouts trigger Calif. energy storage boom -- Monday, July 13, 2020 -- The threat of chronic blackouts is sparking a rush to install battery backup systems as California homeowners try to avoid disruptive power cuts related to wildfires. Blackouts are increasingly a part of life as Pacific Gas and Electric Co. strives to avoid igniting deadly blazes with aging equipment. At fault for some of the state's worst wildfires, the utility shut off power nine times between June and October last year in Northern California. Some blackouts lasted for days, and at least one affected more than a million people. The utility plans to use shut-offs for years as it upgrades its system (Climatewire, July 1). It's pledged to reduce their scope and restore power more quickly. But many residents aren't reassured. Permit applications for energy storage projects are surging, according to local officials. In Sonoma County, about 80 miles north of San Francisco, 174 permits were issued in the first half of this year. That eclipsed the 161 permits that were approved in all of 2019. Interest has boomed with advancing storage technology and since it became clear that blackouts will persist. The county issued 76 permits in 2018, and 47 in 2017, said Domenica Giovannini, policy manager for Sonoma County. Marin County, just north of San Francisco, issued 763 "solar" permits in the year ending on June 30. Those permits are needed for various types of energy projects that would help homeowners keep the lights on during outages, including storage systems and a number of solar technologies. It marked a 136% increase compared with the previous year, said Bill Kelley, the county's deputy director of building inspection and safety. The county didn't break out how many of those permits included storage, but "our sense is that most rooftop PV installations (which is more than 99% of our solar permits) now include an integrated energy storage system," Kelley said in an email. He added that "customers are anxious to get these permits issued quickly before the [power shut-off] season is upon us." The project boom comes as California is entering peak fire season. Last week, seven fires were burning in the state. The biggest one in a populated area was located in Santa Clara County, south of San Jose. It had burned 5,500 acres as of yesterday.
Heatwaves and COVID Mean Higher Home Electricity Bills; What Do We Do About That? - Union of Concerned Scientists - When the COVID-19 outbreak began to spread, states across the country began to institute stay-at-home orders in an effort to help contain the virus and “flatten the curve.” At the same time, advocates in the utility world began to call for moratoriums to electric and gas shut-offs, so that a lack of financial resources would not threaten a family’s ability could shelter in place safely, especially as the economic crisis deepens. Now, utilities want to start collecting on unpaid bills and many state policymakers are thinking of capitulating to utility demands by lifting previously imposed bans on utility shut-offs.Here’s the problem: The COVID-19 pandemic hasn’t gone away—3 million US people have been diagnosed with COVID-19 and that number is rising, swiftly. Meanwhile, millions of people are unemployed as the COVID-related economic crisis worsens, and many families are struggling to pay for basic necessities like food and shelter. And now, a major heatwave is bearing down on the same states that are also in the throes of a dangerous surge in COVID-19 cases.Even absent a health or economic crisis, the hottest days of summer are the absolute worst time to liftlife-saving moratoriums on utility shut-offs.As heat waves blanket the country, bills are expected to spike. UCS analysis found that the average family could see their bill increase 25% over past summers, that’s $50 a month for some.Families across the country are facing difficult decisions. It is in both their own personal interest and in the interest of public health to stay at home as new COVID-19 hot spots emerge in states like Arizona, Texas, and Florida. But, staying at home means more electric use and higher electric bills. And with one and three families struggling to pay energy bills prior to the COVID pandemic, a spike in electric bills won’t be easy to deal with.
Ohio Valley Coal Groups React To Biden’s Clean Energy, Climate Plan - Presumptive Democratic presidential nominee Joe Biden’s $2 trillion clean energy plan is drawing praise from organizations that work with coal communities on economic transition, but mixed reactions from union officials and industry groups. The plan, released Tuesday, would boost investment in clean energy and rebuild infrastructure in order to reach net-zero carbon emissions by 2050.The platform frames decarbonizing the economy as a jobs creator. Of note, the plan calls for a carbon-free power sector by 2035, upgrading 4 million buildings and weather proofing 2 million homes, and boosting investment in zero-emissions transportation. It also includes environmental justice components and explicitly mentions a commitment to invest in coal country and workers who may be displaced by a shift away from fossil fuels. “I’m setting a goal to make sure that these frontline and fence line communities, whether in rural places or center cities, receive 40 percent of the benefits from the investment we are making in housing, pollution reduction, and workforce development and transportation,” Biden said during his speech in Wilmington, Delaware, Tuesday. The plan was met with praise by many of the environmental and community advocacy groups that work with coal communities across the Ohio Valley. Specifically, they lauded the Biden plan for seemingly borrowing from a recently-released policy agenda, the National Economic Transition Platform. It provides a list of suggestions to help coal communities make a transition to a clean energy economy, and was endorsed by more than 80 stakeholders from across the country’s coal-impacted regions. A survey of some of the plan’s drafters found they were not explicitly consulted by the Biden campaign. But Peter Hille, president of the Mountain Association for Community Economic Development, or MACED, which for more than four decades has worked with communities in eastern Kentucky on economic transition, said many of the platform’s tenets were reflected in the Biden plan.
Oil giants including Exxon set first joint carbon target - (Reuters) - A group of the world’s top oil companies, including Saudi Aramco, China’s CNPC and Exxon Mobil, have for the first time set goals to cut their greenhouse gas emissions as a proportion of output, as pressure on the sector’s climate stance grows. But the target, set by the 12 members of the Oil and Gas Climate Initiative (OGCI), means absolute emissions can rise as production increases. It is eclipsed by more ambitious plans set individually by the consortium’s European members, including Royal Dutch Shell, BP and Total. “It is a significant milestone, it is not the end of the work, it is a near term target ... and we’ll keep calibrating as we go forward,” OGCI Chairman and former BP CEO Bob Dudley told Reuters. The OGCI members agreed to reduce the average carbon intensity of their aggregated upstream oil and gas operations to between 20 kg and 21 kg of CO2 equivalent per barrel of oil equivalent (CO2e/boe) by 2025, from a collective baseline of 23 kg CO2e/boe in 2017, the OGCI said in a statement. The OGCI includes BP, Chevron, CNPC, Eni, Equinor, Exxon, Occidental Petroleum, Petrobras, Repsol, Saudi Aramco, Shell and Total, which together account for over 30% of the world’s oil and gas production. The members agreed on a common methodology to calculate carbon intensity and the targets could be extended to other sectors, such as liquefied natural gas and refining in the future, Dudley said. London-based environmental thinktank Carbon Tracker dismissed the OGCI’s claim the targets were in line with the 2015 U.N.-backed Paris agreement to limit global warming by the end of the century. “Having some targets to reduce carbon pollution is better than none,” Carbon Tracker’s head of oil, gas and coal Andrew Grant said in a statement. But “the (oil and gas) industry can never consider itself ‘aligned’ with the Paris goals when business plans assume steady investment in fossil fuel production on a planet with absolute limits”.
'Almost impossible' for FERC to address rehearing orders in 30 days, Glick says | Utility Dive - It will be "almost impossible" for the Federal Energy Regulatory Commission to respond to requests for rehearing within 30 days, as required by the D.C. Circuit of Appeals, Commissioner Richard Glick said Tuesday during a virtual conference on wholesale market reform hosted by the American Public Power Association. The court ruled earlier this month that the Federal Energy Regulatory Commission could no longer postpone rehearing decisions on natural gas projects through the issuance of tolling orders, a move legal experts believe will also apply to electric power rulings. FERC requested a 90-day stay with the court, but is hoping for a more permanent extension through Congress. The Federal Power Act (FPA) and Natural Gas Act (NGA) enabled FERC to delay ruling on a rehearing indefinitely, waiving a 30-day period required for rehearing requests and preventing stakeholders from litigating commission orders. Glick suggested Tuesday Congress modify the NGA and FPA to give FERC anywhere from 45 to 120 days. Groups can request a rehearing 30 days after FERC issues an order, which gives FERC another 30 days to approve, reject or delay the order, under the FPA and NGA. However, it became common for the commission to continuously delay, or toll, those orders, creating situations where landowner complaints over a contentious pipeline proceeding would be stuck in a "purgatory" of rehearing requests while developers moved forward with the project. However, the D.C. Circuit's ruling, which Commissioner Glick agreed on Tuesday applies to the FPA as well, puts FERC in a precarious situation, he said. The court found "30 days means 30 days," said Glick. "The problem with that is that we have an enormous number of recurring orders and it's really almost impossible if we're going to continue to issue rehearing orders at the same pace for staff to be able to adequately work on these orders." Glick said modifying the FPA and the NGA to give the commission 90 days to respond to a request for rehearing would likely be the most reasonable action for Congress to take. He also suggested allowing repetitive requests for rehearing to expire could speed up the process and open up bandwidth. Other former FERC commissioners echoed Glick's concern earlier this month, telling Utility Dive 30 days would not be enough time to address all the issues in the queue, and would likely lead to some requests getting legally denied as a consequence.
Moody’s: U.S. utility sector coal consumption could fall more than 30% in 2020 - Moody’s Investors Service expects “very weak” second-quarter earnings in the U.S. coal sector because of falling electricity demand amid the coronavirus pandemic, saying it sees 2020 coal consumption by power utilities shrinking more than 30%. “The U.S. coal industry has weakened after taking the brunt of lower electricity demand and is now highly vulnerable to resurgent coronavirus infections that could further reduce demand for coal in a downside scenario,” Moody’s said in a July 15 note. Meanwhile, coal export prices continue to weaken, with the firm noting that global steel production, which depends heavily on metallurgical coal as an input, fell about 5% through May. Moody’s also noted that it took negative ratings actions in the first half on most of the North American coal producers it covers, with a couple of exceptions. “Only the low-cost, met-focused producers such as Arch Resources Inc. (Ba3 stable) and Warrior Met Coal Inc. (B2 positive) have not experienced a recent downgrade to long-term ratings nor an outlook revision, as they have fundamentally stronger discretionary cash flow generation than their peers — free cash flow before considering dividends and expansionary capital spending,” Moody’s wrote. The U.S. coal sector has been hit by a wave of bankruptcies driven in part by the pandemic and competition from other energy sources such as gas and renewables. Coal has also fallen out of favor in some jurisdictions as governments and consumers push for lower-carbon alternatives. Moody’s projected that aggregate EBITDA for rated U.S. coal producers would slump by about 50% in 2020 and said the sector faces further downgrades if the pandemic significantly worsens.
Nation’s largest emitter of greenhouse gas to be downsized in 2022, near Macon – The nation’s largest emitter of greenhouse gas is to see one of its four coal-fired power units close by Jan. 1 2022, at Plant Scherer near Macon. Cleanup at this one unit is expected to take 46 years. Plant Scherer is to lose one of its four coal-fired steam power generators by Jan. 1, 2022, under terms approved by unit’s owners. Credit: Steve Tanner, Chris Zabriskie, Sky Riser Aerials via YouTube The closure is expected to result in a sharp drop in CO2 emissions. The projected decrease is 64 percent by 2024, relative to the peak in 2007. This amount includes emissions from replacement sources of electricity, according to terms of the transaction that was approved June 26.Plant Scherer produced 16.7 million metric tons of CO2 in 2018, according to the most recent report by the U.S. Environmental Protection Agency. The plant burns subbituminous coal that’s mined in Wyoming’s Powder River Basin and transported by Norfolk Southern Corp. The coal provides power to steam generators that create electricity.The owners also predict a sharp drop in the cost of producing power. The unit once was the lowest-cost provider in their system. Now it is the most expensive provider in the network operated by JEA and Florida Power and Light Co., according to terms.Plant Shererer is the facility that was the subject of protests at the state Capitol this year.Residents of the town of Juliette, where the plant is located, came to Atlanta seeking legislative relief for hazards. Cobalt and boron has been detected in groundwater around the plant, according to findings in a 2018 report released by the Environmental Integrity Project and Earthjustice. The Legislature did not enact regulations to address the concerns.
Regulators approve Xcel Energy's plan to run 2 Minnesota coal plants at part-time — Xcel Energy, Minnesota's largest electricity company, will idle two of its coal plants for six months of the year under a plan state regulators approved Wednesday, July 15. The company has said that operating the plants on a seasonal basis will cut carbon emissions as well as consumer costs. When the company filed its proposal with the state Public Utilities Commission in December, it estimated the move could have saved customers up to roughly $1.5 million in 2020. "This is an important proposal and I appreciate Xcel Energy bringing it forward," Commissioner Matt Schuerger of the PUC said in a news release. "I think this highlights Xcel’s focus on saving their customers money, on meeting Minnesota’s environmental policies, and in being responsive to the investigation the Commission opened." It's unclear how the approval of the plan Wednesday affects earlier cost and emissions forecasts associated with it. Both plants moving to seasonal operation -- the Allen S. King Generating Station in Oak Park Heights and Unit 2 of the Sherburne County Station in Becker -- are already slated to close entirely in the coming years as part of the company's broader plans to wean itself off coal by 2030, with a natural gas plant due to be built in place of the latter. Generating energy for the regional market from June to August and December to February, as Xcel proposed under the plan, would slash greenhouse 7.3 million tons of greenhouse gas emissions in Minnesota by 2023. The move would seemingly put Xcel on track to meeting the state target for utilities to slash emissions to 30% below their 2005 levels by 2025, according to the PUC.
Environmental groups sue DEP over feared collapse of surface mine reclamation fund - Three environmental groups have filed suit in federal court to force the state Department of Environmental Protection to maintain a fund designed to clean up and reclaim coal mines abandoned by insolvent operators. The lawsuit is intended to head off “the anticipated collapse” of the Special Reclamation Fund and start the process of “state and federal agencies working together to make the necessary fixes to West Virginia’s program,” according to a news release from the plaintiffs. The suit, which names DEP Secretary Austin Caperton as defendant, was filed Thursday in U.S. District Court in Charleston by the Ohio Valley Environmental Coalition, West Virginia Highlands Conservancy and the state chapter of the Sierra Club. Lawyers for the organizations maintain that the $61 million remaining in the Special Reclamation Fund, raised through a state tax on coal sales, is inadequate to meet existing needs, let alone cover the potential reclamation costs of other large operators now facing bankruptcy. Thursday’s lawsuit came about following the DEP’s filing for an emergency motion in Kanawha Circuit Court in March to force the coal company ERP Environmental Fund into receivership. In 2015, ERP bought more than 100 mining permits from Patriot Mining. Since then, according to the DEP, the company racked up “hundreds of violations of surface mining and water pollution laws” plus scores of cessation and show-cause orders, before ceasing operations, laying off all employees and becoming insolvent. The company’s insolvency left “many mining sites unmanned, unsecured, unmaintained and in various stages of land and water disturbance and incomplete reclamation,” according to the DEP’s March filing. ERP did hold reclamation bonds totaling $115 million, which its bond provider may not be able to fully pay out, according to the DEP. But even if all of the $115 million was made available and all $61 million in the DEP’s Special Reclamation Fund was tapped, it would still fall short of covering the cost of reclaiming its mine lands, estimated at $230 million. Hundreds of millions of additional dollars would be needed to treat polluted water at ERP’s mine sites, according to the suit.
Could Japan's plan to retire 100 coal units hurt the Powder River Basin? - The fickleness of international markets, steep transport costs and public pressure to block coal export terminals have left murky the prospect of reviving global coal exports for Wyoming.Nonetheless, energy operators mining in Wyoming’s Powder River Basin have hoped to export coal to countries across Asia for years. But the dream of exporting coal to one of the world’s leading importers of the commodity was dashed last week when Japan’s Minister of Economy, Trade and Industry, Hiroshi Kajiyama, said the country would consider phasing out 100 of its older coal-fired power plant units by 2030.The news comes as the country races to meet emission standards set by the Paris climate accord within the coming decade. The news conference was covered by the Yomiuri Shimbun, a newspaper in Japan on July 3. Japan is one of the top coal-importing countries, ranking third worldwide behind India and China. It imports 99% of the coal it uses, according to the Energy Information Administration. Over one-third of the country’s energy comes from coal too. But now, Japan wants to slash its dependency on coal, making it only 26% of its energy portfolio. The agency has yet to announce an official policy or decision detailing how many coal-fired power plants the country will actually retire before 2030. Meanwhile, the country’s march to divest from coal has continued unabated. The Yomiuri Shimbun also reported details involving the government’s plan to stop funding the construction of coal-fired power plants overseas. In recent years, Japan’s shortage of domestic energy resources has led the country to increase its reliance on coal and natural gas coming from abroad. A 2011 earthquake and tsunami, which compromised the country’s Fukushima-Daiichi nuclear reactors, also caused Japan to pivot away from its reliance on atomic reactors. But with pressure worldwide from climate activists to divest from fossil fuels, Japan is looking for ways to lessen its carbon footprint.
Dominion to raise customer utility rates after nuclear fiasco - As a viral pandemic sweeps the state, Dominion Energy is signaling its intent to raise rates on customers for the first time since acquiring SCE&G, the beleaguered utility that engineered one of the biggest construction failures in South Carolina history. Dominion, a national energy giant headquartered in Virginia, filed notice Monday with the S.C. Public Service Commission of a planned rate adjustment that many expect will be a hefty increase for the company’s electric customers in South Carolina. The proposed rate increase, to be detailed next month, comes at a time when many South Carolina residents are suffering through the coronavirus disease pandemic that has left them out of work or struggling financially. It also comes less than three years after SCE&G, the company acquired by Dominion, walked away from a nuclear construction project that had cost ratepayers billions of dollars. Dominion didn’t say Monday how high it would seek to raise rates. But officials with the Office of Regulatory Staff and attorneys who tangled with SCE&G over the V.C. Summer nuclear expansion project said they expect the company would file for a sizable increase following last year’s merger agreement to acquire SCE&G. The deal kept Dominion from seeking a rate increase until this summer.
Yucca Mountain funds not included House panel approved spending bill | Las Vegas Review-Journal— A House panel approved a spending bill Monday that includes $27 million for interim storage of nuclear waste and no funds for a Yucca Mountain repository.The bill was considered a victory for Nevada because it also included language to prevent the Trump administration from conducting a nuclear weapons test and also prohibited future shipments of weapons-grade plutonium from South Carolina to the Nevada National Security Site.“We have once again defeated the dangerous attempts to make our state the dumping ground for the nation’s waste,” said Rep. Dina Titus, D-Nev. “President Trump tried for three years to shove nuclear waste down our throats and this year his allies didn’t put up much of a fight,” she added.The spending bill for energy and water in fiscal year 2021 is the first in recent years not to include funding for Yucca Mountain, designated by Congress in 1987 as the sole site for permanent storage of nuclear waste from power plants and Navy ships.The Trump administration had sought funding in its past three budget proposals but backed off seeking Yucca Mountain licensing money in the upcoming year, which begins before the presidential election. Nevada is considered a competitive state needed for Trump’s re-election efforts.The administration instead proposed $27 million to explore interim storage of nuclear waste at other sites, a proposal accepted by the House Appropriations Committee.The committee passed the legislation, 30-21. The bill now goes to the full floor of the House, where an amendment to add Yucca Mountain funding could be offered. The Senate also is drafting its version of the spending bill. Any differences would be ironed out by a House-Senate conference committee to create a final bill.
Yucca Mountain: Faster Water Flow Undermines Project Safety, UNR Geologist Says - The landscape appears arid. Yet, water flows at the heart of the controversy about a federal plan to build a national nuclear waste repository at Yucca Mountain in southwestern Nevada. A new scientific paper concludes water is moving through the mountain much faster than researchers previously had suspected. This may increase the possibility that groundwater in the region could become contaminated with radioactive elements. About 90 miles northwest of Las Vegas, Yucca Mountain originally was designated as a potential nuclear waste storage site in 1983, in part because of its remoteness and its arid clime. With an average of about 6 inches of precipitation yearly, it’s the driest spot in the driest state in the nation. About 2,000 scientists worked to design more than 60 miles of storage tunnels deep inside the mountain. They researched water movement, seismic activity, and corrosion risks to waste containers stored there. They calculated the risks of various possible problems at Yucca Mountain using complex math and assumptions about processes and even about some data. Even back then, they disagreed with each other on many points. The scientists concluded the risk of a worst-case scenario — radiation released somehow into the air or getting into groundwater — was on the order of a million-to-one. That's the figure in the licensing application now before the U.S. Nuclear Regulatory Commission. Such an event likely would take thousands of years to occur, said licensed nuclear engineer Charlotta Sanders. She is an associate research professor at the University of Nevada, Las Vegas, and formerly an engineering specialist and group supervisor on the project. But this latest paper calls that early research on risk into question. The author, geologist Scott Tyler of the University of Nevada, Reno, said water movement models used to calculate those risks are out of date. Measurements taken since then show water is moving much faster than earlier estimates had calculated. The public deserves to feel confident the project would work as designed, he added. "Yucca Mountain could easily show some contamination in a very short period of time," added Tyler, perhaps within 100 years.
UTICA SHALE WELL ACTIVITY AS OF JULY 11 -
- DRILLED: 143 (143 as of July 4)
- DRILLING: 110 (111)
- PERMITTED: 501 (500)
- PRODUCING: 2,518 (2,518)
- TOTAL: 3,272 (3,272)
No horizontal permits were issued during the week that ended July 11, and 6 rigs were operating in the Utica Shale. TOP COUNTIES BY NUMBER OF PERMITS:
- 1. BELMONT: 691 (691 as of July 4)
- 2. CARROLL: 530 (530)
- 3. HARRISON: 524 (524)
- 4. MONROE: 438 (438)
- 5. JEFFERSON: 283 (283)
- 6. GUERNSEY: 280 (280)
Harvest Oil selling eastern Ohio wells - Harvest Oil has decided to sell its holding in Appalachian Basin, primarily on eastern Ohio. The company formed two years ago after the bankruptcy of EV Energy Partners. Harvest Oil & Gas, based in Houston, has struck a deal to sell its Appalachian Basin holdings and leave the region. The $20.5 million deal is set to close in August and the buyer hasn't been identified. The buyer is set to pay $14.5 million in cash and use a $6 million note to cover the balance. All of the assets are in the Utica Shale in eastern Ohio, the company said. Harvest said it intends to evaluate the process of winding-up and of returning capital to its shareholders in the event the sale and other contemplated asset divestitures are completed. This evaluation depends on an analysis of net cash available for distribution to stockholders and the amount of net cash needed to satisfy ongoing liabilities during the process. Harvest was previously EV Energy Partners, which filed bankruptcy and reorganized in April 2018. Two months later it emerged as Harvest Oil & Gas.
Daelim Cites Covid-19 in Dropping Stake in Ohio Ethane Cracker - PTT Global Chemical pcl has lost its equity partner in a multi-billion dollar ethane cracker proposed for southeast Ohio. Daelim Chemical USA dropped its stake, citing the Covid-19 pandemic’s impact on the project timeline and the global economy’s impact on its investment plans. PTT affiliate PTTGC America LLC said it would move ahead with the cracker and look for another partner as Daelim aids in the transition. Earlier this year, the companies said a final investment decision (FID) would likely be delayed because of market volatility caused by the coronavirus. It wasn’t the first time an FID for the project has been postponed, but before the outbreak the companies expected to make a decision by the end of June. They said Tuesday a decision on sanctioning wasn’t likely for another six to nine months. PTT has been at work on the facility since 2015. It partnered with Daelim, a South Korean conglomerate, in 2018 to conduct a feasibility study and secure funding for the project, which would be located in the heart of the Utica Shale in Belmont County. “The Ohio petrochemical facility continues to be a top priority for PTTGC America,” said CEO Toasaporn Boonyapipat. “We are in the process of seeking a new partner whilst working toward a final investment decision. We look forward to making an announcement by the end of this year or early next year on this transformative project for the Ohio Valley region.” The first phase of site preparation and engineering work has been completed, with other demolition jobs remaining around the site on the Ohio River. All of the nearly 500 acres required for the plant have also been purchased, and Ohio has contributed more than $70 million in revitalization and economic development grants and loans. The plant, which has secured all major regulatory approvals, would use six ethane cracking furnaces and manufacture ethylene, high-density polyethylene and linear low-density polyethylene, which are used in plastics and chemical manufacturing. It would be similar in size to another cracker underway by Royal Dutch Shell plc in nearby western Pennsylvania that would consume about 100,000 b/d of ethane.
Chesapeake bankruptcy freezes royalty lawsuit - - A lawsuit over Chesapeake Energy’s royalty payments to Ohio landowners is on hold after the company’s recent bankruptcy filing. The class action lawsuit, filed in 2015 by a group of Columbiana County landowners, claimed damages of at least $30 million on behalf of 224 landowners. It is before a federal appeals court. With the bankruptcy filing, “the odds of getting any money out of Chesapeake are very long indeed,” said Dennis E. Murray Jr., an attorney for the landowners. But claims remain against other defendants in the case, and a favorable appeals court ruling could help the same landowners in their lawsuit against the company that purchased Chesapeake’s Ohio assets. Chesapeake pioneered the practice of drilling and fracking large horizontal wells in Ohio’s Utica and Marcellus shales. But the Oklahoma City-based company borrowed billions of dollars as it drilled hundreds of new oil and natural gas wells. The situation became untenable last month in the face of persistently low oil and natural gas prices, and Chesapeake filed June 28 for Chapter 11 bankruptcy. The company has said its restructuring plan will eliminate $7 billion in debt, but has not said how long the process will take. Chesapeake cut its Ohio ties in 2018 when it sold its assets, including a regional office building in Louisville, to Encino Acquisition Partners for $2 billion. EAP is a partnership between the Canada Pension Plan Investment Board and Encino Energy, a private oil and gas company based in Houston. But Chesapeake — along with French energy giant Total, and Jamestown Resources and Pelican Energy, two companies connected to late Chesapeake founder Aubrey McClendon — were being sued in federal court by Ohio landowners who said the companies underpaid royalties.
Utica and Marcellus Shale condensate prices plunge - Pittsburgh Post-Gazette - Prices for Marcellus and Utica shale condensate fell below zero this week as collapsing demand for oil and gasoline pushed specialty grades out of the market. Ergon Oil Purchasing’s price for Marcellus and Utica condensate was a penny per barrel on Monday and Tuesday before dropping to -$0.69 on Wednesday. The price rebounded Thursday to $4.32, but it was still down 91% from the start of the year. Condensate is an ultra-light liquid hydrocarbon produced along with natural gas from some shale wells. It is not as valuable as oil, but prices for the two commodities tend to rise and fall together. Between 2012 and 2014 — when oil prices were high and gas prices were low — condensate and natural gas liquids buoyed producers focused on the liquids-rich areas of the Marcellus and Utica shales in Western Pennsylvania and Ohio, said Tony Scott, managing director of analytics at BTU Analytics.Condensate at $50 a barrel, as it was before the recent collapse, “goes a long way to making those wells economic at the type of gas prices we are seeing today,” he said. Now, regional natural gas prices are still “very weak” and the condensate premium has evaporated. Jesse Mercer, senior director of crude oil markets at Enverus, said it “makes sense that Utica condensate is pricing at next to nothing right now.”The condensate is mostly used in making gasoline. Demand for transportation fuels is down dramatically amid the global economic shutdown associated with COVID-19, as cars and airplanes sit parked.“Refiners are concerned about running out of storage capacity for all the unwanted gasoline, so they are shunning grades that make a lot of gasoline,” he said.“In this crisis, nobody wants a grade that makes none of the stuff you want and only the stuff you don’t have room to store.” In December 2019, the most recent month available, Pennsylvania, Ohio and West Virginia produced 150,000 barrels of oil and condensate per day, according to the U.S. Energy Information Administration. All oil and condensate produced in the three states is light, but Ergon defines Marcellus and Utica condensate as the lightest in that range.Nicholas Andreychek, manager of Appalachian crude and condensate for Mississippi-based Ergon Oil Purchasing, said he has never seen condensate prices like this. On Thursday, the credit rating agencies Moody's and Fitch Ratings both downgraded Denver-based Antero Resources, a Marcellus and Utica-focused operator and the nation’s second-largest producer of natural gas liquids.
Williams Scores Approval for Leidy South Natural Gas Project - FERC on Friday approved the Williams Leidy South natural gas pipeline project that would connect Marcellus/Utica shale supply to demand markets along the Atlantic Seaboard ahead of the 2021-2022 winter. The 582,400 Dth/d pipeline, an extension of the massive Transcontinental Gas Pipe Line system, aka Transco, would source gas produced by Cabot Oil & Gas Corp. and Seneca Resources Co. LLC. The project is to include six miles of large-diameter pipeline loop, two compressor stations and associated facilities in Pennsylvania’s Clinton, Columbia, Lycoming, Luzerne, Schuylkill and Wyoming counties.Williams CEO Alan Armstrong said the project represents one of many opportunities to further reduce greenhouse gas emissions, noting that “there remain more than 80 coal plants in the states Transco serves that can potentially be displaced” by gas.By maximizing the use of the existing Transco transmission corridor and expanding existing facilities in Pennsylvania, Leidy South would “substantially reduce” the amount of new infrastructure and land use required to meet these needs, minimizing community and environmental impact, Armstrong said.“With the growing urgency to transition to a low-carbon fuel future, Williams and its natural gas-focused strategy provide a practical and immediate path to reduce industry emissions, support the viability of renewables and grow a clean energy economy,” the CEO said. Approval by the Federal Energy Regulatory Commission for Leidy South comes at an uncertain time for oil and gas pipelines across the country.Earlier this month, Dominion Energy and Duke Energy canceled the proposed Atlantic Coast gas pipeline project, citing ongoing delays and increasing cost uncertainty. Meanwhile, the future of the Dakota Access crude pipeline, three years after entering service, is increasingly unclear amid an ongoing legal battle over key water-crossing permits.
Appalachian Basin Becoming Petrochemical Hub-- It’s the third leg of a three-legged stool proponents, experts, consultants – even the federal government -- agree is key to the Appalachian Basin once again becoming a U.S. petrochemical hub.Appalachia certainly has the natural gas liquids production (Leg No. 1), as it leads the U.S. in natural gas production, with more than 20% of Marcellus and Utica Shale play production in the form of natural gas liquids (NGLs).Within 18 months, Shell’s massive $6 billion cracker (Leg No. 2) northwest of Pittsburgh should be online, tapping the free-flowing NGLs in Appalachia. And more crackers are expected going forward.But as the petrochemical industry expands in Appalachia, NGL storage (the third leg) becomes an increasingly vital component of NGL infrastructure. The largest announced NGL storage hub proposed for the Appalachian Basin is the Appalachian Storage Hub, a $10 billion, public-private project that would be located along the Ohio River in the basin.What is envisioned in the hub is a system of underground caverns, salt caves and areas where natural gas was extracted. Roughly 100 million barrels of NGLs would be stored, plus the project includes 3,000 miles of pipelines to move the chemicals to industries along a 454-mile corridor in the states of Pennsylvania, Ohio, West Virginia and Kentucky.To keep you up-to-date on Appalachian hub progress, along with other, planned storage facilities in the basin, join industry brethren, including competitors in the Upstream, Midstream and Downstream sectors, at the Fourth Annual Appalachian Hub Conference, presented by ShaleDirectories.com and TopLine Analytics.The one-day conference on Aug. 27, at the Hilton Garden Inn, in the Southpointe Office Park just off Interstate 79 South, south of Pittsburgh, in deference to the ongoing Coronavirus pandemic, for the first time will be a hybrid production: The audience can attend in person, or attend – interact, with speakers – via LIVE streaming. The price is $495.
More common sense needed on fossil fuels - Randi Pokladnik - Last week’s Times Leader (July 5, 2020) carried an op-ed by Greg Kozera, the director of marketing and sales for Shale Crescent USA. In the op-ed Mr. Kozera talked a lot about common sense and our need for fossil fuels: specifically, plastics.In a world drowning in plastic, common sense would dictate that we need to significantly cut down on our production of single-use plastics. According to the Ocean Conservancy, which monitors litter on beaches worldwide, the 10 most common items of litter picked up by volunteers were made of plastic. This included cigarette butts, food wrappers, drink bottles, caps and grocery bags. Not surprising, as plastic packaging makes up about 40 percent of all the plastics produced today.One of the major issues with plastics is that they do what they are intended to do very well; they last forever. Plastics are long-chain carbon polymers that are synthesized from petroleum or natural gas feedstocks. Unlike other naturally occurring long-chain carbon compounds, such as carbohydrates found in plants, plastics will not degrade when exposed to enzymes or bacteria in the environment. Common sense would ask is it wise to expand the production of something that never degrades? According to a study published in 2017 in Science Advances, we have produced approximately 8,300 million metric tons of plastic since the 1950s. Plastic waste now blankets our planet. More than 8 million tons of plastic is dumped into our oceans every year. Peer reviewed studies show that water from the Great Lakes contains a substantial amount of microplastics. Research published in the Public Library of Science disclosed microplastics were in 12 American beers. A study published in ORB Media determined that of 159 tap water samples taken from around the world, 83 percent contained plastic particles. Mr. Kozera points to recycling as a solution to our plastic wastes. In 2017, there were 6.3 billion tons of plastic waste. Only 9 percent was recycled, 12 percent was incinerated and 79 percent ended up in landfills or the environment. I am old enough to remember the Keep America Beautiful anti-litter campaign of the 1970s. Backed by the beverage industry, it was a slick attempt to continue the production of plastic beverage bottles by passing off the responsibility for litter to consumers. Common sense would ask how successful has recycling been if after nearly 50 years, we only recycle 9 percent of our plastic waste.
Wolf, legislature draw closer to more tax breaks for the natural gas industry - State lawmakers voted this week on a bill that would benefit the state’s natural gas industry by providing an incentive for manufacturers that use the gas.The legislation would give tax credits to fertilizer and petrochemical manufacturers that create jobs. The state Senate voted 40-9 Monday to approve the measure. The state House of Representatives agreed Tuesday with a vote of 163-38. At an unrelated news conference earlier Tuesday, Gov. Tom Wolf said he supports the legislation.The measure is similar to a bill the governor vetoed in March. Wolf’s veto message cited the economic hardship created by the coronavirus pandemic and the need for a “responsible use of the Commonwealth’s limited resources. At the Tuesday news conference, Wolf said he was concerned the first version of the bill didn’t have “adequate protections for prevailing wage for the workers” and that it was “fiscally irresponsible” for giving more than $1 billion in potential tax credits.“This has cut the…amount of money available over 25 years by a lot and it has placed a cap per year on the spending, which was not in the original bill, so this is a better bill,” he said.The original bill, HB 1100, passed both chambers of the General Assembly with veto-proof majorities. Backers have been calling for a veto-override vote, though the effort took a backseat as attention turned to COVID-19.The new measure appears to be something of a compromise. It limits the credits to $26.7 million per fiscal year and caps recipients at four, making the maximum annual credit per company $6.7 million. The tax program would begin in 2024 and last until 2050, for a total of nearly $670 million in tax credits.A state Department of Revenue analysis of the previous bill found the annual credit per manufacturing facility could reach $26.5 million, which could have led to more than $1 billion in credits over the course of the program. The new legislation, HB 732, would lower the qualifying threshold a manufacturer needs to invest by $50 million to $400 million, but keeps the combined number of new and permanent jobs required for the incentive at 800.
As Pennsylvania Lawmakers Push Sneaky Petrochemical Corporate Subsidies, Investing in Renewables Would Be Jobs Bonanza | Food & Water Watch --Yesterday, the State Senate passed an amendment to an unrelated bill that will grant massive tax breaks to petrochemical corporations in Pennsylvania, a move that recalls legislation (HB 1100) that was vetoed by Governor Tom Wolf earlier this year.While these corporate handouts are promoted as a powerful tool to create desperately needed jobs, forthcoming research from the national organization Food & Water Watch reveals that the subsidies awarded to energy giant Shell to build a plant in Beaver County created far fewer jobs than supporters predicted, and that a similar level investment in renewable energy projects would create far more employment opportunities.The Food & Water Watch research determined that while the state granted Shell an astonishing $1.6 billion in tax incentives for a project that will create a total of 600 permanent jobs (a cost of $2.75 million for every long-term job), a similar level of investment in wind and solar would create 16,500 jobs, which would almost match the state’s total employment in the oil and gas industries.In response to the Senate vote, Food & Water Watch Executive Director Wenonah Hauter released the following statement: “In the midst of a deadly global pandemic, Pennsylvania lawmakers are creating a secret scheme to hand hundreds of millions of dollars to petrochemical corporations in order to rescue the ailing fracking industry and create more plastic junk. Our research shows that investing in wind and solar provides far more bang for the buck. Instead of giving money to corporate polluters like Shell, lawmakers should put a halt to these absurd petrochemical giveaways, and build a clean, renewable energy industry that will create far more safe and stable jobs.”
Pa. Legislature adopts $670 million tax credit bill for petrochemical plants - A bill aiming to lure petrochemical and fertilizer plants to Pennsylvania with more than $650 million in new tax credits is on the way to Gov. Tom Wolf after the House and Senate passed it by large margins this week. The Democratic governor vetoed a similar bill earlier this year, but his administration was involved in negotiating this one and he said he plans to sign it. Neither bill was the subject of public hearings. House Bill 732 creates a new “local resource manufacturing tax credit” for companies that invest at least $400 million and create at least 800 construction and permanent jobs to build petrochemical or fertilizer plants that use dry natural gas produced in Pennsylvania. A maximum of four companies can qualify for the credits each year and each company’s annual tax credit is capped at $6.7 million. The credit would amount to $667 million in foregone taxes over the 25 years that the credit program would run from 2025 to 2050. The credit is modeled after one used to entice Shell to build its petrochemical plant in Beaver County, but this one is exclusive to petrochemical and fertilizer manufacturers that use dry natural gas rather than ethane. Dry gas is produced abundantly from the Marcellus Shale in northeastern and north-central Pennsylvania and, to a lesser extent, from Pennsylvania’s Utica Shale. The dry gas requirement disqualifies most Marcellus Shale gas produced in southwestern Pennsylvania, which is considered “wet” because it contains natural gas liquids. The bill Mr. Wolf vetoed earlier this year would have incentivized the use of natural gas more broadly, but it contained no limits on how many plants could qualify for the credits and lacked enforcement provisions to ensure companies pay construction workers prevailing wage rates. Pennsylvania’s Department of Revenue estimated the vetoed proposal would have cost $22 million per year per plant in foregone taxes until the end of 2050.
Shell forced by Covid-19 case increases to slow down addition of workers in Beaver County - Royal Dutch Shell has temporarily halted the steady addition of workers returning to the massive Beaver County petrochemical plant construction site after an increase in Covid-19 cases that are apparently tied not to the site but sharp rises of the novel coronavirus in the community. There have been 17 workers at the Shell plant that have tested positive for Covid-19, up from the six cases that had been confirmed between mid-March and the end of June. Shell had, with the first cases of Covid-19 in the early days of the pandemic, shut down construction on the $6 billion plant and sent all but 300 of its 8,000 construction workers home as the site was deep cleaned and mitigation measures put into place. It has been adding back employees in a measured way, increasing to about 3,500 to 3,700 employees on site now. "Based on contact tracing and what we see going on in the broader community, in increased cases in Beaver and Allegheny counties, we believe that's not reflective of the additional risks occurring at the site but people being in the community," Shell spokesman Michael Marr said during the Petrochemical Development USA conference Thursday afternoon. "We believe we have a good exposure control on site that we've implemented." Further details weren't immediately available about the new cases, but Marr said as the number of cases have grown, Shell has taken steps to prevent more Covid on its site. "We've decided to at least temporarily halt the addition of workers," Marr said. It's a week-by-week decision that is made every Thursday afternoon for the week ahead whether to keep adding workers. "We only will do so when we are comfortable we have sufficient levels of mitigation procedures in place to manage Covid spread," Marr said.
Damning report on Pa.’s failure to protect residents from fracking unlikely to result in major reform · — The recent findings of a massive grand jury investigation into the state’s failure to protect communities from unconventional oil and gas development, known as fracking, were damning, and lent official credence to problems many residents have decried for years. The long-anticipated report outlined explicit ways in which the Department of Environmental Protection and the Department of Health turned a blind eye to the snowballing effects of fracking on Pennsylvania’s residents and skirted constitutional obligations to protect the environment. State officials testified about directives to ignore health concerns and practices that glossed over the harm the public experienced, effectively gaslighting residents whose tap water appeared brown or experienced rashes when they showered, but were told nothing was wrong. The testimony also revealed how officials deferred to the industry and poorly tracked complaints, and how state workers failed to properly test potentially tainted air and water. “More than anything, it is the government’s willingness to use the tools at its disposal to protect people,” Alex Bomstein, an attorney for Clean Air Council, said. “That’s what needs to change.” Despite the two-year effort to bring these findings to light — encompassing 287 hours of testimony before the grand jury, resulting in a 243-page report — it’s unclear if the grand jury’s report will bring about actual, meaningful reforms sought by those who say they’ve been harmed.Several of the report’s recommendations address problems previously raised by advocates in legal cases and unsuccessful pushes for new legislation to better account for the health and environmental impacts of fracking. Some lawmakers said the proposals overreach and are an ineffective way to change policy.State agencies, meanwhile, dismissed the report outright, calling the recommendations unnecessary and crafted by a group of people unqualified to understand environmental law. Many of the issues raised were outdated, they said, and already addressed.
Q&A: Terry Engelder, Penn State scientist whose work led to the shale gas boom, talks about grand jury report on fracking - - interview - In 2007, Terry Engelder, then a professor of geosciences at Penn State, estimated how much natural gas could be accessed in the Marcellus Shale formation using hydrofracking. That calculation led to a drilling boom across the Marcellus region in Pennsylvania.Widely recognized for his work, Engelder has advised state agencies, including the Pennsylvania Department of Environmental Protection. And, his research has received funding from a number of companies in the industry. Now retired and a professor emeritus, Engelder is working on a book called “A Frackademic from Appalachia.” Along with economic benefits, the surge in gas exploration in Pennsylvania led to environmental and health concerns. On June 25, state Attorney General Josh Shapiro announced the findings of a Pennsylvania grand jury condemning the DEP and state Department of Health for inadequate oversight of the natural gas industry.The report outlines problems from brown water caused by fracking to the state dismissing residents’ complaints without investigation. The report also makes recommendations from additional pipeline regulation to increasing the setback of oil gas wells. StateImpact Pennsylvania spoke with Engelder about the grand jury’s findings.
Marcellus Shale region project, others scrapped after increased regulatory requirements and environmental opposition -– The push to bring more economic development to western Pennsylvania, West Virginia and Ohio – referred to as the shale crescent region – has encountered a major glitch after an $8 billion Atlantic Coast Pipeline plan was cancelled in Appalachia and other projects have been slowed or halted. Cancellations come after state regulations and environmental opposition increased. Production from the Marcellus Shale was expected to rebound after some states reopened after coronavirus shutdowns. Fracking in the region has driven down natural gas prices and helped to make the U.S. a net exporter of the fuel for the first time, Bloomberg News reports. In June, the U.S. Department of Energy announced a major initiative in response to President Donald Trump’s Executive Order 13868, “Promoting Energy Infrastructure and Economic Growth” to assess opportunities to promote economic and energy growth in the Appalachian region. “The energy-rich Appalachian region is now the single largest natural gas producing region of the country and increasingly is becoming a major producer of natural gas liquids, including ethane, propane, and butane,” Secretary of Energy Dan Brouillette said in a statement. “These resources can serve as feedstocks for new opportunities in low-cost power generation, petrochemicals, and the manufacturing industry. Harnessing these opportunities will decrease our reliance on foreign-sourced supply-chains, as showcased by the COVID-19 pandemic, and bring back U.S. jobs to this important region of the country.” Richmond-based Dominion Energy Inc. and Charlotte-based Duke Energy Corp. abandoned plans to construct a major pipeline from the region to southern states. Canceling the Atlantic Coast Pipeline project, the companies said in a statement, was due to "ongoing delays and increasing cost uncertainty which threaten the economic viability of the project." Dominion was also impacted by the Virginia Legislature enacting a law in April requiring it to be 100 percent carbon free by 2045. Both companies sold their natural gas assets to billionaire investor Warren Buffett's Berkshire Hathaway Inc. – the largest deal announced in 2020 to buy U.S. energy assets, according to Bloomberg data.
The Atlantic Coast Pipeline Is Cancelled, But Here’s Why That’s Not Enough | Food & Water Watch - With many still grieving a recent Supreme Court ruling allowing the Atlantic Coast Pipeline to cut through the Appalachian Trail, big news hit last Sunday that Dominion and Duke Energy are canceling the pipeline altogether, with Dominion also selling off its remaining fracked gas holdings. The shutdown announcement from Dominion and Duke Energy comes after six years of entrenched legal battles, public protest and direct action to disrupt construction, and a price tag that grew to 8 billion dollars. Duke and Dominion didn’t make their decision out of goodwill — they made it with an eye to their bottom line. Dominion made the right decision for the wrong reasons. While a thriving clean energy economy does have the potential to bring well-paying jobs and increased investments to Virginia, profit isn’t the driving motivation for humanity’s move toward renewable energy. The transition to renewables is non-negotiable, and it needs to be funded by the companies that have wrecked our environment and exploited both people and resources for centuries — whether they want to make that payout or not. We have to move towards renewable energy because refusing to implement change will result in mass death, ecological crisis, and a hugely diminished quality of life. Virginia has the capacity to lead nationally in this transition, and the cancellation of the ACP should be an opening to speed ahead with the hard work of greening our state. Recent changes in the state’s legislative makeup made us hopeful for aggressive environmental legislation. But the last session brought disappointment when the pro-industry Virginia Clean Economy Act railroaded the more ambitious Green New Deal, and passed into law with Northam’s signature. The Virginia Clean Economy Act failed to demand more from Virginia’s fossil fuel corporations than what these companies had already agreed to, making it clear the legislation bent to the whims of industry rather than pushing past its comfort zone. The VCEA also set the deadline for a renewable energy transition at 2050, deemed a dangerously inadequate timeline by the world’s leading climate scientists. And it didn’t require any action to stop the fossil fuel infrastructure already underway in Virginia, projects that will ravage public health and clean air and water in the near term.
Senators hope Berkshire Hathaway invests in West Virginia natural gas projects - — A week after Berkshire Hathaway Inc. announced its purchase of Dominion Energy Inc.’s natural gas transmission and storage assets, a group of West Virginia senators are asking the company to consider investing in natural gas projects in West Virginia.Ten Democratic lawmakers sent a letter to Chairman and CEO Warren Buffett on Monday regarding a possible investment and the impact of the Atlantic Coast Pipeline project’s cancellation.“We think your wager is a wise one and share your belief that natural gas will be a mainstay in the production of American power for decades to come,” the legislators said. “The gas that sits beneath our feet is rich and plentiful, and our people are ready to go to work.”Duke Energy Corp. and Dominion Energy announced July 5 the cancellation of the Atlantic Coast Pipeline because of delays and legal uncertainties. The 600-mile pipeline would have gone from Harrison County, West Virginia into Virginia and North Carolina.Berkshire Hathway’s $9.7 billion deal with Dominion Energy was announced the same day. The agreement includes more than 7,700 miles of pipelines and around 900 billion cubic feet of natural gas storage. “That gave us reason for hope,” Sen. William Ihlenfeld, D-Ohio, said on Tuesday’s “MetroNews Talkline.”
US natgas output rises after W.Va. Mountaineer pipe returns (Reuters) - U.S. natural gas production rose over the weekend after TC Energy Corp’s Mountaineer Xpress pipeline in West Virginia returned to service following unplanned work, according to the company and data from Refinitiv.Pipeline data showed U.S. output climbed to 88.2 billion cubic feet per day (bcfd) on Sunday, up from a low of 87.0 bcfd last week due mostly to the Mountaineer shutdown. One billion cubic feet is enough gas to supply about 5 million U.S. homes for a day. TC Energy’s Columbia Gas Transmission (TCO) unit, which operates Mountaineer, said it returned the 2.6-bcfd pipe to service over the weekend after lifting a force majeure on July 11 that it imposed on July 7 due to unplanned maintenance. “The hard work of our crews and better than forecasted weather conditions led to the early lifting of the Force Majeure and return to service,” TCO said in a notice to customers. Most of the U.S. output increases came from Marcellus and Utica shale with West Virginia up about 0.3 bcfd from last week’s low to 6.9 bcfd and Pennsylvania up about 0.7 bcfd to 19.5 bcfd, according to Refinitiv. Despite last week’s decline in output, Refinitiv said production in the Lower 48 U.S. states has averaged 88.1 bcfd so far in July. That is up from a 20-month low of 87.0 bcfd in June after energy firms shut wells following the collapse in energy prices due to coronavirus demand destruction. Monthly output peaked at 95.4 bcfd in November.
Appalachia gas production edges back toward annual highs as EQT restores output - — Gas production in the Appalachian Basin has recently edged its way back toward highs not seen since early May as output previously curtailed by the region's largest producer, EQT, now appears to be fully restored. In the past week, combined production from the Marcellus and Utica shales has averaged nearly 32.2 Bcf/d – up 1.2 Bcf/d, or about 4% from its mid-May average, S&P Global Platts Analytics data shows. At Appalachia's benchmark supply hub, Dominion South, cash prices have remained near $1.30/MMBtu recently – comparable to levels seen after EQT's production curtailments – as record gas-fired power burns this summer help to balance the additional supply length. On July 16, the cash market at Dominion South was nearly flat to its prior-day settlement, trading down just a half-cent to $1.285/MMBtu, preliminary trade data from S&P Global Platts showed. Roughly half of the recent gain in output has come from just five production meters used by EQT on Equitrans, Rockies Express Pipeline, Columbia Gas Transmission and Texas Eastern Transmission. Over the past five days, upstream receipts from those points have averaged a combined total of 2.7 Bcf/d, which compares to an average 2 Bcf/d in the five days after EQT announced its curtailments. Within the Appalachian Basin, the largest production gains have accrued in the South Pennsylvania dry window, with smaller gains from West Virginia and the Ohio dry – the same three sub-basins that saw steep declines following EQT's mid-May production cuts.Over the balance of this year, Appalachian gas production is likely to remain below previous record-high levels at over 33 Bcf/d as growth is constrained by slower drilling and completion activity, limited midstream capacity and low gas prices.
U.S. natgas futures fall over 3% on rising output, less hot weather (Reuters) - U.S. natural gas futures fell over 3% on Monday on rising output and forecasts for less hot weather and lower air conditioning demand over the next two weeks than previously expected. Traders noted that prices declined despite a drop in liquefied natural gas (LNG) exports this month to their lowest since early 2018 due to global coronavirus demand destruction. Front-month gas futures fell 6.6 cents, or 3.7%, to settle at $1.739 per million British thermal units. Refinitiv said production in the Lower 48 U.S. states averaged 88.1 billion cubic feet per day (bcfd) so far in July, up from a 20-month low of 87.0 bcfd in June but still well below the all-time monthly high of 95.4 bcfd in November. Refinitiv forecast U.S. demand, including exports, will rise from 90.4 bcfd this week to 92.2 bcfd next week. That, however, was lower than Refinitiv's outlook on Friday. Pipeline gas flowing to U.S. LNG export plants averaged just 3.2 bcfd (33% utilization) so far in July, down from a 20-month low of 4.1 bcfd in June and a record high of 8.7 bcfd in February. Utilization was about 90% in 2019. Flows to Freeport in Texas held at zero for a seventh day for the first time since July 2019 when the first of its three liquefaction trains was in test mode. U.S. pipeline exports, meanwhile, rose as consumers in neighboring countries cranked up their air conditioners. Refinitiv said pipeline exports to Canada averaged 2.5 bcfd so far in July, up from 2.3 bcfd in June, but still below the all-time monthly high of 3.5 bcfd in December. Pipeline exports to Mexico averaged 5.5 bcfd this month, up from 5.4 bcfd in June, but below the record 5.6 bcfd in March.
U.S. natgas futures edge up on hot weather forecasts, rising pipeline exports (Reuters) - U.S. natural gas futures edged higher on Tuesday on forecasts for more hot weather and higher cooling demand over the next two weeks and an increase in pipeline exports to Canada and Mexico. Traders noted prices were up even though output continued to rise slowly and liquefied natural gas exports (LNG) remained at their lowest since early 2018 due to a global hit to demand from the coronavirus pandemic. Front-month gas futures rose 0.7 cents, or 0.4%, to settle at $1.746 per million British thermal units. Refinitiv said production in the Lower 48 U.S. states averaged 88.1 billion cubic feet per day (bcfd) so far in July, up from a 20-month low of 87.0 bcfd in June but still well below the all-time monthly high of 95.4 bcfd in November. Refinitiv forecast U.S. demand, including exports, will rise from 90.4 bcfd this week to 92.9 bcfd next week. That was higher than Refinitiv's outlook on Monday. Pipeline gas flowing to U.S. LNG export plants averaged just 3.2 bcfd (33% utilization) so far in July, down from a 20-month low of 4.1 bcfd in June and a record high of 8.7 bcfd in February. Utilization was about 90% in 2019. Flows to Freeport in Texas held at zero for an eighth straight day for the first time since July 2019 when the first of its three liquefaction trains was in test mode. U.S. pipeline exports, meanwhile, rose as consumers in neighboring countries cranked up their air conditioners.
U.S. natgas futures up 2% on rising pipe exports, cooling demand - (Reuters) - U.S. natural gas futures gained almost 2% on Wednesday due to an increase in pipeline exports and as rising air conditioning demand over the next two weeks keeps the amount of gas going into storage lower than usual for this time of year. Prices rose despite a slow output increase and decline in liquefied natural gas exports to their lowest since early 2018. Front-month gas futures rose 3.2 cents, or 1.8%, to settle at $1.778 per million British thermal units. Refinitiv said production in the Lower 48 U.S. states averaged 88.1 billion cubic feet per day (bcfd) so far in July, up from a 20-month low of 87.0 bcfd in June but still well below the all-time monthly high of 95.4 bcfd in November. Refinitiv forecast U.S. demand, including exports, will rise from 90.8 bcfd this week to 93.6 bcfd next week. That was higher than Refinitiv's outlook on Tuesday. Pipeline gas flowing to U.S. LNG export plants averaged 3.2 bcfd (33% utilization) so far in July, down from a 20-month low of 4.1 bcfd in June and a record 8.7 bcfd in February. Utilization was about 90% in 2019. Flows to Freeport in Texas held at zero for an ninth straight day for the first time since July 2019 when the first of its three liquefaction trains was in test mode. Refinitiv said pipeline exports to Canada averaged 2.5 bcfd so far in July, up from 2.3 bcfd in June, but still below the all-time monthly high of 3.5 bcfd in December. Pipeline exports to Mexico averaged 5.5 bcfd this month, up from 5.4 bcfd in June, but below the record 5.6 bcfd in
US working natural gas volumes in underground storage rise by 45 Bcf: EIA — US natural gas stocks increased nearly 20 Bcf less than the five-year average due to year-to-date high gas-fired power demand, but the NYMEX Henry Hub balance-of-summer strip remained relatively static despite even smaller builds likely in the weeks ahead. Storage inventories rose 45 Bcf to 3.178 Tcf for the week ended July 10, the US Energy Information Administration reported July 16. The injection was below an S&P Global Platts' survey of analysts consensus that called for a 50 Bcf build. Wider responses to the survey ranged from injections of 42 Bcf to 65 Bcf. The build was also less than the 67 Bcf injection reported during the same week last year and the five-year average injection of 63 Bcf, according to EIA data. It was the third consecutive weekly build that was below the five-year average. Storage volumes now stand at 663 Bcf, or 26.4%, more than the year-ago level of 2.515 Tcf and 436 Bcf, or 16%, more than the five-year average of 2.742 Tcf. Total demand rose by 1.4 Bcf/d during the week after 2.6 Bcf/d of power burn increases were reduced by a 1 Bcf/d drop in LNG feedgas demand and another 500 MMcf/d of declines from the residential and commercial sector, according to S&P Global Platts Analytics. Upstream, supplies rose slightly on an increase in onshore production and an increase in net Canadian imports, pushing total supplies higher by 400 MMcf/d and leaving US supply-demand balances tighter by 1 Bcf/d week on week. The NYMEX Henry Hub balance-of-summer contract, August through October, remained relatively static to average $1.846/MMBtu in trading following the release of the EIA's weekly storage report. Spreads to next winter have remained stable as well. The November-through-March contract strip is priced at $2.71/MMBtu, leaving spreads from balance of summer to next winter in the high 80 cents/MMBtu range. Platts Analytics' supply-and-demand model currently expects a 36 Bcf injection for the week ending July 17, which would be 1 Bcf below the five-year average.
U.S. natgas futures fall to two-week low as output rises, low LNG exports - (Reuters) - U.S. natural gas futures fell over 3% to a two-week low on Thursday as output slowly rises and liquefied natural gas exports hold near their lowest since early 2018. That price decline came despite a smaller-than-usual storage build that was in line with estimates and forecasts hot weather expected to keep air conditioning demand high over the next two weeks. The U.S. Energy Information Administration (EIA) said U.S. utilities injected 45 billion cubic feet (bcf) of gas into storage during the week ended July 10. That was close to the 47-bcf build analysts forecast in a Reuters poll and compares with an increase of 67 bcf during the same week last year and a five-year (2015-19) average build of 63 bcf for the period. The increase boosts stockpiles to 3.178 trillion cubic feet (tcf), 15.9% above the five-year average of 2.742 tcf for this time of year. By the end of the injection season in October, analysts expect U.S. inventories will reach a record high near 4.1 tcf. Front-month gas futures fell 5.5 cents, or 3.1%, to settle at $1.723 per million British thermal units, their lowest close since July 1. Refinitiv said production in the Lower 48 U.S. states averaged 88.1 billion cubic feet per day (bcfd) so far in July, up from a 20-month low of 87.0 bcfd in June but still well below the all-time monthly high of 95.4 bcfd in November. As consumers crank up their air conditioners, Refinitiv forecast U.S. demand, including exports, will rise from 90.8 bcfd this week to 93.5 bcfd next week.
U.S. natgas holds near 2-week low on less hot weather - (Reuters) - U.S. natural gas futures held near a two-week low on Friday on forecasts for less hot weather over the next two weeks than previously expected. Prices remained weak even though pipeline exports to Mexico are on track to hit a record high this month. Front-month gas futures fell 0.5 cents, or 0.3%, to settle at $1.718 per million British thermal units, the lowest close since July 1. For the week, the front-month was on track to drop about 5% after rising almost 21% in the prior two weeks. Refinitiv said production in the Lower 48 U.S. states averaged 88.2 billion cubic feet per day (bcfd) so far in July, up from a 20-month low of 87.0 bcfd in June but still well below the all-time monthly high of 95.4 bcfd in November. Traders noted output was rising as EQT Corp boosted production in Appalachia. Refinitiv forecast U.S. demand, including exports, will rise from 90.8 bcfd this week to 93.0 bcfd next week and 93.3 bcfd in two weeks. That, however, was lower than Refinitiv's outlook on Thursday. Pipeline gas flowing to U.S. LNG export plants averaged 3.3 bcfd (34% utilization) so far in July, down from a 20-month low of 4.1 bcfd in June and a record 8.7 bcfd in February. Utilization was about 90% in 2019. Refinitiv said pipeline exports to Canada averaged 2.4 bcfd so far in July, up from 2.3 bcfd in June, but still below the all-time monthly high of 3.5 bcfd in December. Pipeline exports to Mexico averaged 5.56 bcfd so far this month, up from 5.44 bcfd in June and on track to top the record 5.55 bcfd in March.
Utica, Haynesville Down as US Drops Five Rigs - A drop-off in the Utica and Haynesville shales saw the U.S. rig count fall five units to finish at 253 for the week ending Friday (July 17), according to the latest figures from Baker Hughes Co. (BKR). Four natural gas-directed rigs exited the patch in the United States during the week, joined by one oil-directed rig. The 253 active U.S. rigs as of Friday compares with 954 rigs running at this time last year. All of the domestic declines occurred on land, with the Gulf of Mexico continuing to run 12 rigs, down from 25 a year ago. Five horizontal and four vertical units departed, partially offset by the return of four directional units, according to BKR. In Canada, six rigs — all gas-directed — returned to action during the week, growing the Canadian rig count to 32, versus 118 in the year-ago period. The combined North American rig count ended the week at 285, versus 1,072 at this time last year. Among plays, the Utica saw the largest net drop for the week, with two rigs exiting to leave the gassy play with just six active rigs, down from 17 in the year-ago period. The Barnett Shale, the Haynesville and the Permian Basin each dropped one rig. On the other side of the ledger, the Eagle Ford Shale picked up two rigs on the week to grow its tally to 11, versus 67 a year ago. Among states, Texas saw the largest drop week/week at three units, followed by Ohio, which dropped two. Louisiana and Pennsylvania each dropped one rig week/week, while New Mexico and West Virginia each added one, BKR data show.The number of oil and natural gas wells likely to be drilled around the world this year is forecast to hit its lowest level since at least the early 2000s, with North America the most impacted from slumping demand in the age of Covid-19, according to a recent analysis from Rystad Energy. The firm said it expects the number of drilled wells globally this year to decline by 23% to 55,350 from 2019’s 71,946 wells. Meanwhile, Raymond James & Associates Inc. analysts estimate that the decline in the U.S. oil and gas rig count may be close to a bottom, and the current commodity strip could allow activity to grind higher.
There’s no roadmap to the other side of the natural gas bridge. These states are making one. --In early June, the attorney general of Massachusetts, Maura Healey, filed a petition with state utility regulators advising them to investigate the future of natural gas in the Commonwealth. Healey described the urgent need to figure out how the gas industry, which helps heat millions of homes throughout freezing Northeastern winters, fits into the state’s plan to zero-out its greenhouse gas emissions by 2050 — especially considering the fuels burned for indoor heating and hot water are responsible for about a third of the state’s carbon footprint.Eliminating emissions from this sector means venturing into uncharted waters. While many states are rapidly developing wind and solar farms to cut carbon from their electric grids, few are tackling the thornier challenge of reducing the gas burned in buildings. Officials in California and New York, which both have binding economy-wide net-zero emissions laws, have recently come to the same conclusion as Healey: Meeting state climate goals is going to require changes to the way gas utilities are regulated. Earlier this year, both states opened up precisely the kind of investigation that Healey is requesting in Massachusetts.Natural gas, a fossil fuel, has long been called a “bridge” to a cleaner energy future because burning it has a much lower carbon footprint than burning coal or oil. But research has called that narrative into question by showing that methane leaking across the natural gas supply chain raises its climate impact significantly. Recent developments have called the economics of natural gas into question, too: In early July, the developers of the high-profile Atlantic Coast Pipeline decided to abandon the projectafter an onslaught of lawsuits made the pipeline too expensive to build.California, Massachusetts, and New York haven’t decided whether — or to what extent — natural gas can remain in their energy mixes. But the point of these investigations is much larger than those questions. There’s no established roadmap for managing the transition to zero-emissions buildings, and there are serious consequences to getting it wrong — huge cost burdens on residents, mass layoffs and bankruptcies at utilities, and of course, climate disaster.
Trump Overhauls Key Environmental Law To Speed Up Pipelines And Other Projects : NPR - In Atlanta today, President Trump announced a "top to bottom overhaul" of the regulations that govern one of the nation's most significant environmental laws. The aim is to speed up approval for major projects like pipelines and highways, but critics say it could sideline the concerns of poor and minority communities impacted by those projects, and discount their impact on climate change. Speaking at a UPS facility, Trump decried the "mountains and mountains of bureaucratic red tape in Washington, D.C.," and recalled being frustrated by it as a builder in New York. He said one of the first projects to benefit from his streamlining would be the expansion of a freeway south of Atlanta. "We are reclaiming America's proud heritage as a nation of builders and an nation that can get things done," he said. The 50-year-old National Environmental Policy Act, or NEPA, was signed into law by President Richard Nixon. It requires federal agencies to consider the environmental effects of proposed projects before they are approved. It also gives the public and interest groups the ability to comment on those evaluations. The administration's new regulations are expected to reduce the types and number of projects that will be subject to review under the NEPA, shorten the timeline for reviews, and drop a requirement that agencies consider the cumulative environmental effects of projects, such as their contribution to climate change. The changes weaken a law that's played a major role in limiting the Trump administration's agenda of "energy dominance." In just the last week, environmental reviews have sidelined a series of controversial oil and gas pipeline projects, including the Keystone XL, the Dakota Access and the Atlantic Coast pipelines. But environmental groups warn the new rules will sideline the environmental effects of pipelines, highways and other projects. "What the Trump administration is doing is fundamentally changing those regulations and really gutting them," says Sharon Buccino, a senior attorney at the Natural Resources Defense Council. What's more, Buccino says the law was designed to give a voice to communities long hurt by pollution from highways, pipelines and chemical plants that are disproportionately located in their neighborhoods. "NEPA gives poor and communities of color a say in the projects that will define their communities for decades to come. Rather than listen, the Trump administration's plan aims to silence such voices," says Buccino. Trump announced the proposed rules at the White House in January and said he wanted to streamline an "outrageously slow and burdensome federal approval process" that can delay major infrastructure projects for years. He said the country's infrastructure used to be the envy of the world but red tape has delayed projects making the U.S. "like a Third World country." The average times for agencies to complete an environmental impact statement is currently 4 ½ years, says Mary Neumayr, chair of the White House Council on Environmental Quality. When the proposal was announced, she said this delay "deprives Americans of the benefits of modernized bridges and roads that enable them to get home to their families."
Destructive plan to search for oil in Southwest Florida retreats --The Conservancy’s long-term persistence has paid off, as the extremely destructive oil project proposed by Tocala, LLC has been withdrawn. Once in our sights, the Conservancy will fight against a bad project every step of the way. For the past six years, the environmentally sensitive lands of Collier and Hendry counties have been at direct risk of a damaging seismic survey that would have used thousands of explosive-laden shot holes to search for oil reserves. And for the past six years, the Conservancy of Southwest Florida and others in the environmental community have fought this plan. The ebb and flow of gas prices during that period map play a role in the project’s feasibility, but what’s clear is that the Conservancy’s long-term commitment to fight Tocala’s ill-conceived proposal has delayed the project for years. Thankfully, it now appears that Tocala’s thousands and thousands of proposed shot holes are no longer being pursued. These shot holes – up to 8,800 proposed at one point – would have been packed with explosives and placed up to 100 feet deep to create the seismic waves used to record the oil reserve data. The Conservancy identified that these shot holes would not only pock-mark the landscape, but also pose a threat to our aquifers. Shot holes can act as conduits for pollutants to enter our drinking water supply. Further, this large project, originally proposed on over 100,000 acres, also threatened endangered species. The project would have been located on a mix of public and private lands, but all of it is important habitat to the Florida panther and other imperiled species. Perhaps the most disturbing part of Tocala’s proposal was that its survey was going to include public lands like the Dinner Island Ranch Wildlife Management Area. As a member of the Ranch’s Management Advisory Group, the Conservancy has long expressed concern about how privately owned mineral rights under the Ranch could result in threats to surface resources on this 21,000+ acre preserve. Dinner Island Ranch was acquired specifically to protect Florida panther habitat and the habitats of other vulnerable species. Tocala’s project would have not only threatened wildlife, but also critical restoration projects.
Florida Defends Its Shores Ten Years After the BP Oil Disaster Was Finally Contained | Audubon - Ten years ago today, the BP Deepwater Horizon oil disaster, which killed up to 1 million birds, turned a corner. Following the oil rig’s initial explosion and sinking on April 20, 2010, the deep-sea well spewed 210 million gallons of oil into the Gulf of Mexico for 87 days. On July 15, 2010, after many unsuccessful attempts to stop the flow of oil, the well was finally capped. Research over the following 10 years has revealed that, in addition to the miles of oiled beaches in the Florida Panhandle, ocean currents had also carried oil just offshore of Tampa Bay, and as far away as the Atlantic Coast. Much still remains deep on the ocean floor. For many Floridians, this was not only a devastating disaster to a state known for pristine beaches, productive fisheries, and abundant wildlife—this was also a wake-up call. If the Sunshine State's environment and economy could be affected so much by an oil spill that started three states over in Louisiana, one can only imagine how dire the effects could be if drilling were allowed directly off Florida's coast. Congress is currently considering the National Defense Authorization Act, which authorizes funding for Department of Defense programs and activities, and this legislation presents an opportunity for an amendment to extend the ban on oil drilling off Florida’s coast. Sen. Marco Rubio has started the ball rolling in the Senate. He has submitted an amendment to extend the moratorium as part of the Act, but the Senate leaders must allow the vote. Ten years after the Deepwater Horizon disaster brought businesses like Jarvis’s to a halt and oiled vulnerable sea- and shorebirds, Audubon staff continue to work to prevent future disasters. We urge our elected officials to make the moratorium permanent, protecting the wildlife and coastal communities of the eastern Gulf of Mexico now and into the future.
Bayou Bridge Pipeline 'Trampled' Landowner Rights, Court Rules— A Louisiana appeals court ruled Thursday that Bayou Bridge Pipeline, which was constructed as the final stretch of the controversial Dakota Access Pipeline, “trampled” landowners’ rights when it cut across their properties without their permission. The company cut down hardwood trees, trenched and laid pipelines without ever first receiving authorization from property owners. Only after the property owners complained, the company sought the land it desired through eminent domain. The Third Circuit Court of Appeal for the state of Louisiana reversed a lower court’s ruling that the plaintiffs were entitled to just $150 apiece for their land and awarded them instead $10,000 plus legal fees for violation of the landowners’ due process rights. But the court said the pipeline company was entitled to take the land through eminent domain, since doing so is legal under Louisiana law. Louisiana is one of the few states where oil and gas companies can expropriate land if their project is deemed to be for public benefit. Judge Keith Comeaux of the 16th District Court in St. Martin Parish in a December 2018 order calculated, based on expert testimony from Energy Transfer Partners, that landowner plaintiff Theda Larson Wright was entitled to 37 cents for the land Bayou Bridge cleared and built the pipeline under and Peter K. Aalestad and his sister Katherine Aalestad should each receive $2.17. But Comeaux awarded them each $75 apiece instead for the land and another $75 for the trees Bayou Bridge cut down, though he agreed with the expert that the trees were worthless because the properties are so remote. The Atchafalaya Basin through which the Bayou Bridge Pipeline runs, is the largest remaining river swamp in North America, containing many old growth trees and endangered species. The 44-page order issued Thursday by the Third Circuit five-judge panel said Bayou Bridge Pipeline “trampled” the property owners’ due process rights as landowners when it “consciously ordered construction to begin” on their properties. Bayou Bridge “eviscerated the constitutional protections laid out to specifically protect those property rights. Therefore, we find the trial court committed legal error when it failed to compensate Defendants when BBP tread upon those constitutionally recognized rights,” the order said. The court found that Bayou Bridge violated the property owners’ rights and “[t]o decide otherwise would give entities such as BBP the unrestrained ability to decide whether another citizen’s property rights can be restricted and makes a mockery of the state’s carefully crafted laws of expropriation.”
Covington offshore operator places long-term bet on deepwater project despite recent downturn -- After about a decade in development, Covington-based LLOG Exploration is moving forward on an oil and gas discovery in the Gulf of Mexico despite a tumultuous market in the past few months. LLOG Exploration specializes in deepwater production and expects to drill inside a discovery known as Taggart which sits 140 miles southeast of New Orleans in the Gulf of Mexico under the Devils Tower Spar. The spar is owned by Williams, a publicly traded Tulsa, Oklahoma-based energy business. LLOG Exploration inked a deal with Williams, where the businesses would use a tie-back, which refers to an underwater connection between a new oil and gas discovery and an existing production facility. In recent months, the Louisiana oil and gas industry has struggled since several service businesses have filed for bankruptcy, on-shore exploration businesses are shutting in wells and oil futures plummeted below $0 per barrel at one point while there was a glut of oil and gas in storage tanks. As of Friday, there are 12 active rigs in the Gulf compared to 26 rigs one year ago. Across Louisiana, there are 31 rigs which include on-shore and offshore facilities down from 69 rigs one year ago. But LLOG Exploration is bullish that its investment will pay off, especially since it won't go into production until 2022. "We recognize the current challenging oil market, but we believe that we will see improved pricing in the market," said the company in a statement. "LLOG believes that smart investment through a down cycle can create advantaged barrels as we see pricing recovery over the full life of the project."
U.S. gives Delfin another year to build Louisiana floating LNG project - (Reuters) - U.S. energy regulators on Wednesday granted Delfin LNG a second one-year extension until September 2021 to complete its proposed floating liquefied natural gas export facility off the coast of Louisiana. The U.S. Federal Energy Regulatory Commission in September 2017 authorized Delfin to build its project by September 2019. The company in June 2019 asked FERC for a 3-1/2-year extension, but the agency only gave it one more year until September 2020 to finish the project. Since Delfin still has not started building the facility, it asked the FERC in June for a second one-year extension, which the agency approved on Wednesday. Delfin’s project seeks to use existing offshore pipelines to supply gas to up to four vessels that could produce up to 13 million tonnes per annum (MTPA) of LNG or 1.7 billion cubic feet per day (bcfd) of natural gas. In the past, the company said it planned to make a final investment decision (FID) to build the facility in 2020, which should enable it to enter service in mid-2024.
Buckeye starts crude exports from Corpus Christi's South Texas Gateway terminal — Buckeye Partners said it started loading the first cargoes of crude oil for export on July 16 from its brand-new South Texas Gateway terminal at the Port of Corpus Christi. Stay up to date with the latest commodity content. Sign up for our free daily Commodities Bulletin. Sign Up While US crude exports have slipped amid the coronavirus pandemic, the Port of Corpus Christi became the nation's top crude-exporting hub late last year. The Aframax Minerva Libra began loading 789,484 barrels of crude destined for Northwest Europe, according to data from Kpler, a data intelligence company, and S&P Global Platts. "The milestone reached by Buckeye Partners on loading its first vessel at the South Texas Gateway Terminal is monumental, particularly as our nation's economic recovery from COVID-19 gets underway," said Port of Corpus Christi CEO Sean Strawbridge in a statement. "The oil and gas industry has gone through a period of unprecedented demand destruction that is only now beginning to show signs of reversing. The loading of this vessel with crude from the Permian Basin is a sign that this economic downturn is changing direction." Operations are expected to ramp up as additional phases of construction are completed by the first quarter of 2021. When fully operational, the terminal will be able to export 800,000 b/d from two deepwater docks. The terminal will have 8.6 million barrels of storage capacity with the ability to expand to about 10 million barrels, according to Buckeye. A third deepwater dock also could be added. Houston-based Buckeye owns 50% of the terminal with Phillips 66 Partners and Marathon Petroleum each own 25%. "This world-class facility will play a critical role in serving global energy markets from South Texas and the Port of Corpus Christi," said Khalid Muslih, Buckeye president of global marine terminals.
Fracking Services Company Files for Chapter 11 - Hi-Crush Inc has revealed that it has voluntarily filed petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas. The company made the filings to implement the terms of a restructuring support agreement it has entered into, Hi-Crush outlined. This agreement is said to be with certain noteholders collectively owning or controlling approximately 94 percent of the aggregate outstanding amount of the company's 9.5 percent senior unsecured notes due 2026. The terms of the agreement provide for a comprehensive restructuring of the company's balance sheet to be implemented through the commencement of Chapter 11 cases, according to Hi-Crush. The company said the prearranged plan, if implemented, will result in the elimination of approximately $450 million of unsecured note debt and an ongoing reduction in annual interest expense of greater than $43 million. Hi-Crush said that during the Chapter 11 proceedings, the company will continue to operate its business in the normal course without disruption to its vendors, customers, or employees, and added that it will have sufficient liquidity to meet its financial obligations during the restructuring process. “We are very pleased to have reached this agreement with our various lenders,” Robert E. Rasmus, chairman and chief executive officer of Hi-Crush, said in a company statement which was posted on Hi-Crush’s website. “The agreement will allow Hi-Crush to maintain normal operations and continue delivering high quality services to our customers. We will also significantly improve our balance sheet and enhance our company's financial flexibility over the near and long-term,” he added. “We expect to emerge from this process in an even stronger market position, with an enhanced ability to execute on our operational strategy and grow our business over the long-term,” Rasmus continued. Hi-Crush describes itself as a fully-integrated provider of proppant and logistics services for hydraulic fracturing operations. The business offers frac sand production, advanced wellsite storage systems, flexible last mile service and innovative software for real-time visibility and management across the entire supply chain, according to its website.
Risk of premature births 50% higher for mothers near flaring - Houston Chronicle- The practice of burning excess natural gas during drilling operations significantly increases the risk of premature births for mothers living nearby, according to an analysis of births in the South Texas region encompassing the Eagle Ford Shale.When done in high amounts, the practice, known as flaring, was associated with a 50 percent greater chance of preterm birth compared to women with no exposure, according to the analysis by researchers at the University of Southern California and University of California Los Angeles. Researchers analyzed more than 23,000 births in the Eagle Ford region between 2012 and 2015.The study was published Wednesday in the peer-reviewed Environmental Health Perspectives journal. “It’s a pretty large effect,” said Lara Cushing, an assistant professor of environmental health sciences at UCLA’s Fielding School of Public Health and one of the authors. “It’s on par with what you see for moms who smoke during pregnancy compared to moms who don’t.” A high amount of flaring was defined as 10 or more nightly flare events within three miles of the pregnant woman’s residence. Using satellite observations, researchers estimated that more than 43,000 flaring events occurred in the Eagle Ford region between 2012 and 2016.Flaring releases chemicals including benzene, fine particulate matter, carbon monoxide, carbon dioxide and nitrogen oxides, pollutants that contribute to climate change and have been linked to harmful human health effects. The practice of flaring increased with the fracking boom as companies drilling for more lucrative oil sought to get rid of the cheaper natural gas that comes out of the ground with the crude. Without pipeline capacity to get the gas to market, oil companies sought and received permission from Texas regulators to burn it away. Oil companies operating in the Permian Basin of West Texas burned a record $750 million worth of natural gas in 2018, or 238.1 billion cubic feet, according to a report by the Institute for Energy Economics and Financial Analysis, a nonpartisan group in Ohio that researches industry trends. The Texas Oil and Gas Association, a trade group, said the methodology of the preterm birth study is problematic because it used proximity to flaring as an indicator of exposure. TXOGA also noted that the study’s authors said that more research would be necessary to establish a link between flaring and preterm birth rates.
Stitt recommends energy firm CEO to head Oklahoma Commissioners of the Land Office -- The CEO of an oil and gas company that allegedly shorted the Oklahoma Commissioners of the Land Office on royalty payments is being recommended by Gov. Kevin Stitt to serve as the new head of that state agency. Stitt is recommending that Elliot Chambers, CEO of White Star Petroleum Holdings LLC, be appointed as the new secretary of the Commissioners of the Land Office, an agency that manages public lands and a trust funds for the benefit of education. A special CLO meeting is scheduled for 8 a.m. Tuesday to consider the appointment. White Star Petroleum filed for bankruptcy in May 2019, listing the Commissioners of the Land Office among thousands of creditors. When White Star sought permission through bankruptcy court to auction off its leases, an attorney for the CLO objected, stating White Star first needed to get written permission from the CLO and pay the royalty payments it had shorted the agency plus interest that had accrued. Documents obtained from the CLO through an Open Records Act request show that the agency calculated the money it was owed to be $207,233.62 and noted that White Star had failed to include certain statutorily required details on its check detail report, forcing the agency to use estimates. White Star challenged the amount but eventually agreed to pay a settlement amount of $176,148.57. The CLO governing board approved that settlement in February but The Oklahoman checked with the CLO Friday and was told the agency still hadn't received its money
Environmental Groups Argue Details Are Missing On Proposed Wisconsin Pipeline Relocation --Multiple environmental groups say a Canadian energy firm hasn't provided enough information for state regulators to decide whether to grant waterway and wetlands permits for a proposed pipeline relocation project in northern Wisconsin. Regulators and the company say details have yet to be submitted and reviewed. But the Wisconsin Department of Natural Resources said it's made a tentative decision to approve the permits with modifications. Enbridge Inc. is proposing a roughly 40-mile reroute of Line 5 outside the Bad River Reservation in Ashland and Iron counties that would cross more than 180 waterbodies and temporarily impact at least 109 acres of wetlands. Enbridge is looking to move its pipeline after the Bad River Band of Lake Superior Chippewa filed a lawsuit to shut down and remove Line 5 from the tribe's reservation. Midwest Environmental Advocates (MEA) and nine other organizations submitted comments, raising concerns about the route, surveys and plans that have yet to be completed. "DNR seems to be proceeding through the process without a complete permit application, which is really troubling," said Rob Lee, MEA staff attorney. The agency contends it's still early in the process with more work yet to be done, according to Ben Callan, the agency's section chief of integration services within the Bureau of Environmental Analysis and Sustainability. While the application is deemed complete, he said that doesn't mean that the project has met the agency's standards.Callan added the agency plans to incorporate public input as part of an environmental impact statement, which must be completed before any decision is made. Callan said a timeline for that review hasn't been determined. He noted the EIS would include details on the environmental and socioeconomic impacts of the project, which would also be subject to public comment. However, the groups highlighted that Enbridge has yet to identify the exact route since it's still working with landowners to acquire property for the project. MEA also argues that Enbridge has failed to provide accurate or sufficient information on specific waterway crossings and its plans to avoid or minimize environmental impacts, as well as ownership information. Groups said the company informed regulators that it had only completed surveys for about 70 percent of affected waters.
Midstream oil sector facing end of growth era as ominous earnings season looms — The midstream oil sector enters the earnings season for one of the toughest quarters in the industry's history as its struggles to manage lower crude volumes, project delays, and wary investors all amid an ongoing pandemic that's far from under control in North America. After years of rapid growth from Texas to Alberta to keep up with surging oil production volumes, the midstream sector suddenly sees itself overbuilt much more quickly than expected and facing shrinking flows of both crude and cash. The second-quarter earnings cycle kicks off first with reports from rail companies and then gets into the biggest pipeline players, such as Enbridge and Enterprise Products Partners, at the end of July with analysts mostly looking past weak quarterly earnings and paying more attention to forward-looking guidance. Existing contracts with minimum-volume commitments keep the pipeline firms' bottom lines from being decimated as badly as the oilfield services sector, but the pain is still tangible. "The midstream companies are frustrated because they want more investors to take a look at them," said Pearce Hammond, a midstream analyst with Simmons Energy. "There are supply-and-demand worries, and concerns that the dividends aren't sustainable. And then the environmental issues are even more tricky and challenging." It certainly doesn't help that earnings reports are coming following a series of major setbacks for individual pipeline projects, including the still-pending, court-ordered shutdown of the three-year-old Dakota Access Pipeline, the continued legal suspension of the long-delayed Keystone XL Pipeline, and the decision to outright cancel the Atlantic Coast gas pipeline that was still facing a myriad of legal and regulatory hurdles. As Morningstar's director of oil research, Sandy Fielden, put it, "No one is building any pipeline anymore. And, if they are, it's against the backdrop of a never-ending struggle in the permitting process. And what's the value of doing that anyway?" Supply and demand The broad consensus is the second quarter likely will represent the low point in the coronavirus-induced crash in the oil sector. But US crude production remains about 2 million b/d below its mid-March level and there are a wide variety of opinions about how quickly global demand will recover and whether the US shale sector will be able to follow. "They built for 13 million b/d of US oil production or higher, and we're way below that right now," Hammond said. "US oil production is not going to hit its previous highs for awhile, so global demand is really going to be key." "And the midstream companies are wanting to save on capital spending, so they're not eager to move on new projects right now," he added.
Federal ruling on Weld County emissions could make life harder for oil and gas industry – A federal appeals court ruled Friday that an emissions-heavy section of northern Weld County that’s currently excluded from limits on air pollution imposed on the Denver metro area should be counted, potentially ratcheting up pressure on the oil and gas industry to operate more cleanly or cut output. The U.S. Court of Appeals for the District of Columbia Circuit determined that the Environmental Protection Agency incorrectly left a swath of Weld County abutting the Wyoming state line out of the nine-county “nonattainment” area that centers on Denver, meaning emissions from hundreds of oil and gas wells in that part of the county could soon be added to the metro area for air pollution measurement purposes. Robert Ukeiley, senior attorney for the Center for Biological Diversity, said the ruling effectively means that Weld County energy operations near the Wyoming border will have to “comply with the more protective standard” that the metro area is under in terms of their emissions output. “Oil and gas, including in northern Weld County, is responsible for our smog problem, and the court told the EPA enough is enough,” Ukeiley said. “You have to get (the industry) to reduce their pollution.” The ruling from the appeals court sends the matter back to the EPA for further consideration. The lawsuit against the EPA was brought by the Center for Biological Diversity, the Sierra Club, the National Parks Conservation Association and the Boulder County Board of Commissioners. Heat and sunlight bake pollutants, including some of the chemicals emitted by oil and gas operations, to form ozone, or smog. For more than 15 years, Colorado has flunked federal air quality health standards with ozone air pollution exceeding a decade-old federal limit of 75 parts per billion, which was tightened to 70 parts per billion under President Barack Obama. The World Health Organization recommends no more than 50 parts per billion to protect human health.
Conservation groups file new lawsuit against Keystone XL pipeline - (UPI) -- A coalition of conservation and landowner groups sued the Trump administration Tuesday challenging its approval for construction of the Keystone XL pipeline through federal lands in Montana. Filed in the U.S. District Court for the District of Montana, the lawsuit by the Bold Alliance, the Center for Biological Diversity, the Sierra Club and others accuses the Bureau of Land Management and the U.S Fish and Wildlife Service's review of the project of being "riddled" with errors and omissions and their approval of its constriction was made "in reliance of flawed data and outdated spill response plans." "The Keystone XL project was never in the public interest, yet this administration continues to flaunt key environmental lases in its effort to promote the dirty and dangerous pipeline," Jared Margolis, senior attorney at the Center for Biological Diversity, said in a statement. "The project would be devastating for the people and wildlife in its path, and regulators have repeatedly failed to fully address its environmental risks, including oil spills." According to the lawsuit, the Bureau of Land Management unlawfully granted a right-of-way and temporary use permit for the pipeline on Jan. 20 as it based its decision on environmental review documents that violate the National Environmental Policy Act, the Endangered Species Act and the Administrative Procedure Act.The lawsuit also accuses the Bureau of Land Management of violating other statutes when it issued a notice that it would proceed with construction of the pipeline prior to being granted all the permits necessary, several of which still remain outstanding. "The Trump administration keeps trying to fast-track and rubber-stamp the boondoggle Keystone XL pipeline project, but they keep losing 'bigly' every time we take them to court," Bold Alliance founder Jane Kleeb said in a statement mocking President Donald Trump who used the non-word in a debate while he was running for the country's highest office. The lawsuit is the latest to bog down construction of the controversial project that upon completion would deliver some 830,000 barrels of crude tar sand oil a day from the Canadian city of Hardisty, Alberta, to Steel City, Neb.
Open valve leads to crude oil spill in western North Dakota (AP) — An open valve led to a crude oil spill on a well pad in western North Dakota, state environmental officials said. The North Dakota Department of Environmental Quality was notified Wednesday of the spill that happened Tuesday northeast of Fairfield in Billings County. Operator Scout Energy Management, LLC estimates about 7,560 gallons of oil were released, impacting rangeland. Officials said a valve was left open on a recirculation pump due to human error. Personnel from the agency are inspecting the site and will continue to monitor the investigation and remediation.
Federal appeals court temporarily halts Dakota Access pipeline shutdown - — A federal appeals court on Tuesday temporarily halted a judge’s order that the Dakota Access Pipeline be shut down in three weeks. The U.S. Court of Appeals for the District of Columbia Circuit issued an “administrative stay” of the judge’s order. Though the appeals court said it “should not be construed in any way as a ruling on the merits” of the case, the Bismarck Tribune reported. The stay will remain in place until the appeals court rules on whether developer Energy Transfer can keep oil flowing while the court decides the Texas-based company’s appeal of the shutdown order. U.S. District Court Judge James Boasberg last week ordered the line shut down by Aug. 5 pending a lengthy environmental review. The line began pumping oil more than three years ago. Energy Transfer estimates it would take three months to empty the pipeline of oil and complete steps to preserve it for future use. Pipeline supporter GAIN Coalition, which includes businesses, trade associations and labor groups, called the order “a key step forward in reaffirming the Dakota Access Pipeline’s critical role in the American energy infrastructure network.” North Dakota Republican U.S. Sen. Kevin Cramer, another supporter, called the temporary halt “common sense.” But Earthjustice attorney Jan Hasselman, who represents the Standing Rock Sioux Tribe, said the move is not significant. Hasselman said in a statement an administrative stay is typical and “is not in any way indicative of how the court is going to rule — it just buys the court a little additional time to make a decision.” The line was the subject of months of protests in 2016 and 2017, sometimes violent, during its construction near the Standing Rock Sioux Reservation that straddles the North Dakota-South Dakota border. The tribe took legal action against the pipeline even after it began carrying oil from North Dakota across South Dakota and Iowa and to a shipping point in Illinois in June 2017. The $3.8 billion, 1,172-mile pipeline crosses beneath the Missouri River, just north of the reservation. The tribe draws its water from the river and has concerns about pollution. The company maintains the line is safe.
North Dakota's oil production dropped a record 30 percent in May - May was not a merry month for the oil and gas industry in North Dakota, with production dropping by record amounts for a second month in a row. North Dakota oil production fell 30 percent month over month to 850,000 barrels per day in May, setting a back-to-back record with April, when production fell a record 15 percent to 1.2 million barrels per day. That’s the lowest production has been since 2013. Natural gas production, meanwhile, dropped a record 23 percent to 1.9 billion cubic feet per day. That followed on April’s record 14 to 15 percent decline to 2.7 billion cubic feet per day. “Every operator was shutting in everything,” North Dakota Director of Mineral Resources Lynn Helms said. “We just saw a tremendous decline.” The inactive well count has hit 6,100 — the highest ever — triple what it was in April. Curtailment, however, is higher than even that number reflects. According to figures from North Dakota Pipeline Authority Justin Kringstad, the number of wells shutting in at least 75 percent of production is 6,700. These wells are spread across the Bakken map. They are not in particular areas, they don’t reflect particular well types, and they are not limited to any particular operators. Helms said the bottom has probably already been reached, and predicted better numbers when July production is reported two months from now. “By the time July numbers come out, we may be back to that million number or higher,” he said. Prices, meanwhile, were terrible for May, while differentials were worse, Helms said. Differentials refer to the cost of transporting oil and gas to markets. The average differential for WTI and North Dakota crude was $14 on a $28 barrel. “There was no incentive for North Dakota operators to produce and market North Dakota crude oil, unless they had that crude oil hedged,” Helms said. “And there was a significant amount of hedging that was out there. That is kind of what sustained activity as it was in the month of May.” Even that support may turn out to be thin, given the legal issues facing Dakota Access pipeline, ordered by a federal court to shut down by Aug. 5 while more environmental study is done. A temporary stay of that shutdown is in place for now, while a higher court determines whether it should stand.
Federal judge blocks Trump administration's easing of rule on methane emissions - (Reuters) - A federal judge in California late on Wednesday blocked a rollback by the Trump administration of a rule on slashing emissions of the powerful greenhouse gas methane from oil and gas operations on federal and tribal lands. U.S. District Judge Yvonne Rogers of the Northern District of California said in her ruling that the administration’s easing of the Waste Prevention Rule was contrary to the Interior Department’s mandate to ensure safe and responsible drilling on public lands, and failed to consider scientific findings relied upon by previous presidential administrations. The Obama-era rule was meant to curb emissions from flaring and venting of natural gas and to reduce leaks. The Obama administration said the rule would fight climate change and wasted fuel costs. The ruling was the latest blow to the Trump administration, which has pursued a policy of energy dominance, or maximizing fossil-fuel production while slashing regulations that protect the environment. The courts have also recently blocked pipelines, Keystone XL and Dakota Access. Methane, an invisible gas, is more efficient in trapping heat than carbon dioxide, the main greenhouse gas. But it lingers for less time in the atmosphere, so reducing methane emissions could help rein in the worst impacts from climate change and warming. The Interior Department eased the rule in September 2018, by reducing the amount of methane required to be captured at drilling locations and relaxing measures on well completions and leak detections. David Bernhardt, now secretary of the interior, said at the time the rule would “encumber energy production” and prevent creation of jobs. Leaks from U.S. oil and gas drilling, along with a boom in agricultural production worldwide, are driving up global emissions of methane, two studies showed this week. California Attorney General Xavier Becerra said the ruling was crucial to addressing air pollution generated from his state’s public lands.
Calif. Operator Files Chapter 11 Bankruptcy-- California Resources Corp. filed for bankruptcy with a plan to hand ownership to lenders, kicking off what could turn into the next wave of collapses among oil drillers and the businesses that depend on them. Under a proposal the company negotiated with senior lenders as part of its bankruptcy planning, shareholders will be wiped out and investors holding the company’s $1.3 billion, 2017 loan will get 93% of a reorganized California Resources. Lower-ranking creditors will share 7% of the new company if they vote in favor of the proposal. The plan must be approved by U.S. Bankruptcy Judge David R Jones after lower-ranking creditors have a chance to object. The company joins more than 200 oil explorers that have filed for court protection since 2015, and more may be coming in a matter of weeks. Denbury Resources Inc. and Noble Corp. missed their July debt payments, and Chaparral Energy Inc. asked lenders for more time, setting them on course for a possible default. With oil prices hovering around $40 a barrel, the industry simply isn’t able to support debts taken on when prices were near peak levels. California’s biggest crude producer has been weighed down by massive borrowings since its spinoff from Occidental Petroleum Corp. in late 2014, right at the start of the previous downturn in the crude market. Low levels of cash and stricter state drilling regulations added to the pressure on California Resources, despite a $320 million investment from Tom Barrack Jr.’s Colony Capital Inc. last year. The company said it owed more than 50,000 creditors about $6.1 billion, according to a Chapter 11 petition filed in federal court in Houston. About $5 billion of those liabilities are funded debt that may be reduced as part of the reorganization.
Bankrupt Fracking Companies Are Harming the Climate and Taxpayers - Fracking companies are going bankrupt at a rapid pace, often with taxpayer-funded bonuses for executives, leaving harm for communities, taxpayers, and workers, the New York Time reports. Nearly 250 U.S. oil and gas companies are expected to file for bankruptcy by the end of next year — more than went under in the last five years combined — as demand craters due to the pandemic, a global price war, and falling renewable energy prices. These failing companies often neglect well maintenance and plugged well repairs to save money, causing tons of ultra-heat-trapping methane to continue gushing into the atmosphere. Shale wells typically cost $300,000 to close — far more than the estimates used by companies, regulators and financial analysts — and an analysis prepared for the Times found companies have failed to reserve sufficient funds, as required by law, to remediate their well sites, leaving taxpayers to foot the cleanup bill. As a result, early estimates show substantial increases in methane concentrations over Texas and New Mexico oil fields in March and April 2020 compared to the previous year. The Trump administration is seeking to effectively eliminate methane leak detection and repair requirements. One drilling site, abandoned by Extraction Oil & Gas in Greeley, Colorado, is situated just 700 feet from an elementary school serving the community's fast-growing immigrant population where air pollution monitors recorded 100 periods of elevated levels of toxic benzene over the course of seven months last year. Those wells were originally planned to lie closer to a more affluent, majority white charter school, but were moved after an outcry from that school's parents. Extraction Oil & Gas paid 18 of its officers and key employees a combined $6.7 million in "retention agreements" last month, three days before it filed for bankruptcy protection. Extraction is hardly alone, Chesapeake Energy declared bankruptcy in May after paying $25 million in executive bonuses just weeks before. Diamond Offshore Drilling got a $9.7 million COVID-stimulus tax refund in March and then paid its executives the same amount as cash incentives to remain with the company as it undergoes bankruptcy proceedings. "It seems outrageous that these executives pay themselves before filing for bankruptcy," "These are the same managers who ran these companies into bankruptcy to begin with."
US oil, gas rig count rises for first time in over 4 months, up 9 on week: Enverus — After more than four months of weekly decreases, the US oil and gas rig count rose by nine to a net 288 the week ending July 15, rig data provider Enverus said, signalling a a widely awaited trough to a difficult year for the upstream industry grappling with the coronavirus and its devastation of crude demand. Stay up to date with the latest commodity content. Sign up for our free daily Commodities Bulletin. Sign Up The rise in rig activity marked a cessation of weekly rig count decreases which from early March to July reached a total loss of nearly 560 rigs from domestic fields. For the week ended July 15, oil rigs rose by 10 on week to 202, while rigs chasing natural gas fell by one to 86. Rigs rose nominally across most of the largest basins, although they dropped by two in the Permian Basin, the US' biggest petroleum play, leaving 131. Also shedding two rigs was the Utica Shale, mostly found in Ohio, leaving seven rigs. The Eagle Ford Shale of South Texas and the SCOOP/STACK play of Oklahoma gained two rigs each, for totals of 12 and 10, respectively. The Williston Basin of North Dakota/Montana (12 rigs), the Haynesville Shale of East Texas/Northwest Louisiana (34 rigs), and the Marcellus Basin mostly in Pennsylvania (28 rigs) all gained one rig each. Click here for full-size image. Matt Andre, analyst for S&P Global Platts Analytics, said the continued rig decline in the Permian is likely a result of rig contracts rolling off. "But all non-Permian major oil basins have apparently stabilized, that is, stopped declining for the most part," Andre said. All major oil basins have been severely affected by rig reductions since mid-March. The Permian at its lowest was down 297 rigs, or 69%, over the four-month period, while the Bakken was down 41 rigs, or 79%, and the Eagle Ford was down 65 rigs, or 87%.
Bill to hobble development of ANWR and Tongass advances in US House - Alaska Public Media The U.S. House Appropriations Committee approved a bill Friday that would erect barriers to oil development in the Arctic National Wildlife Refuge and logging in the Tongass National Forest.The provisions are tucked into the Democrats’ appropriations bill for the Interior Department and the Forest Service. The Republican-led Senate is sure to block them, so the measures serve primarily as a statement of Democratic values and to draw attention to what environmentalists view as endangered land in Alaska.One provision says the government can only auction off drilling rights on the Coastal Plain of the Arctic Refuge with a minimum bid of half a billion dollars.The Interior Department is expected to announce an ANWR lease sale soon. Alaska’s delegation in Congress wants to see the area developed. But Alaska’s sole House member isn’t on the appropriations committee, so it fell to Rep. Dan Newhouse to try to remove the ANWR provision. “In addition to creating new jobs in Alaska and across the nation, opening this minuscule area to oil exploration, empowers the United States to reduce our dependence on foreign sources of oil and expand our domestic energy supply,” Rep. Newhouse, R-Wash., said during the House Appropriations Committee’s session on the bill. Newhouse’s amendment also aimed to remove a sentence in the bill to block new logging roads in the Tongass. The Newhouse amendment failed, leaving the anti-development measures for the Tongass and the Arctic Refuge in the bill. The legislation next goes to the full House, where it will likely pass. The Senate is working on its own bill. As Newhouse acknowledged during the debate, the Alaska provisions don’t stand much chance in the conference committee where the two bills will be reconciled.
Wolf Richter: The Great American Shale Oil & Gas Massacre: Bankruptcies, Defaulted Debts, Worthless Shares, Collapsed Prices of Oil & Gas - The Great American Oil Bust started in mid-2014, when the price of crude-oil benchmark WTI began its long decline from over $100 a barrel to, briefly, minus -$37 a barrel in April 2020. Bankruptcies of US companies in the oil and gas sector started piling up in 2015. In 2016, the total amount of debt listed in these filings hit $82 billion. Bankruptcy filings continued, with smaller dollar amounts of debt involved. In 2019, the shakeout got rougher.And this year promises to be a banner year, as larger oil-and-gas companies with billions of dollars in debt collapsed, after having wobbled through the prior years of the oil bust. The 44 bankruptcy filings in the first half of 2020 among US exploration and production companies (E&P), oilfield services companies (OFS), and “midstream” companies (gather, transport, process, and store oil and natural gas) involved $55 billion in debts, according to data compiled by law firm Haynes and Boone. This first-half total beat all prior full-year totals of the Great American Oil Bust except the full-year total of 2016: The cumulative amount of secured and unsecured debts that the 446 US oil and gas companies disclosed in their bankruptcy filings from January 2015 through June 2020 jumped to $262 billion: The three biggies: In the first half of 2020, nine of the 44 US oil and gas companies that filed for bankruptcy listed over $1 billion in debts, including the three biggies with debts ranging from $9 billion to nearly $12 billion, according to data by Haynes and Boone. These three companies – oil-field services companies Diamond Offshore and McDermott and natural-gas fracking pioneer Chesapeake – are the biggest in terms of debts that have toppled in the Great American Oil Bust so far. Those three companies combined listed $31 billion in debts, accounting for 56% of the $55 billion in total debts listed by all 44 companies to file so far this year: Since 2015, there have been 239 bankruptcy filings by oil-and-gas companies in Texas – the largest oil producing state in the US – of the 446 total US filings. So far this year, Texas accounts for 39 filings of the 44 total filings in the US. Of note, Chesapeake is headquartered in Oklahoma, but it filed in U.S. Bankruptcy Court for the Southern District of Texas and counts as a Texas bankruptcy. The Great American Fracking Bust took on absurd proportions when the price of WTI in the futures market plunged to minus -$36.98 on April 20, 2020, in an epic WTF moment for the entire oil industry. Since then, the price has bounced off and currently trades just over $40 a barrel, where the US fracking industry is still burning large amounts of cash: Surviving in this pricing environment for overleveraged permanently cash-flow negative companies in the fracking business has proven to be tough – and for investors, who kept buying their hype over the years, it has turned into a massacre. Investors have not only poured billions of dollars into supplying these companies with debt capital – including the $262 billion listed in bankruptcy filings since 2015 – but also into supplying them with equity capital as these companies sold new shares to raise money, and these billions in equity capital have now disappeared without trace. Those billions from those share sales don’t even get mentioned in bankruptcy filings.
Fracking Firms Fail, Rewarding Executives and Raising Climate Fears - The day the debt-ridden Texas oil producer MDC Energy filed for bankruptcy eight months ago, a tank at one of its wells was furiously leaking methane, a potent greenhouse gas, into the atmosphere. As of last week, dangerous, invisible gases were still spewing into the air.By one estimate, the company would need more than $40 million to clean up its wells if they were permanently closed. But the debts of MDC’s parent company now exceed the value of its assets by more than $180 million.In the months before its bankruptcy filing, though, the company managed to pay its chief executive $8.5 million in consulting fees, its top lender, the French investment bank Natixis, later alleged in bankruptcy court. Oil and gas companies in the United States are hurtling toward bankruptcy at a pace not seen in years, driven under by a global price war and a pandemic that has slashed demand. And in the wake of this economic carnage is a potential environmental disaster — unprofitable wells that will be abandoned or left untended, even as they continue leaking planet-warming pollutants, and a costly bill for taxpayers to clean it all up. Still, as these businesses collapse, millions of dollars have flowed to executive compensation. Whiting Petroleum, a major shale driller in North Dakota that sought bankruptcy protection in April, approved almost $15 million in cash bonuses for its top executives six days before its bankruptcy filing. Chesapeake Energy, a shale pioneer, declared bankruptcy last month, just weeks after it paid $25 million in bonuses to a group of executives. And Diamond Offshore Drilling secured a $9.7 million tax refund under the Covid-19 stimulus bill Congress passed in March, before filing to reorganize in bankruptcy court the next month. Then it won approval from a bankruptcy judge to pay its executives the same amount, as cash incentives. “These are the same managers who ran these companies into bankruptcy to begin with,” . MDC’s listed telephone number appears to be disconnected, and repeated attempts to contact its C.E.O., Mark Siffin, and the company’s bankruptcy lawyers were unsuccessful. Whiting Petroleum and Diamond Offshore did not respond to requests for comment, and Gordon Pennoyer, a Chesapeake spokesman, declined to comment. Almost 250 oil and gas companies could file for bankruptcy protection by the end of next year, more than the previous five years combined, according to Rystad Energy, an analytics company. Rystad analysts now expect oil demand will begin falling permanently by decade’s end as renewable energy costs decline, energy efficiency improves, and efforts to fight climate change diminish an industry that has spent the past decade drilling thousands of wells, transforming the United States into the biggest oil producer in the world. The environmental consequences of the industry’s collapse would be severe. Even before the current downturn, methane, a powerful greenhouse gas, was being released from production sites in America’s biggest oil field at more than twice the rate previously estimated, according to a recent study based on satellite data. Some experts say that with the industry in disarray, efforts to fix leaks of methane, which pound for pound can warm the planet more than 80 times as much as carbon dioxide over a 20-year period, may fall by the wayside. Low natural gas prices may lead to increases in flaring or venting, the intentional release of excess gas, the International Energy Agency said this year.
Biden says fracing “not on the chopping block” in his $2 trillion climate plan - --Joe Biden on Tuesday will unveil clean-energy and infrastructure plans that seek to balance progressives’ demands for bold action on climate against protecting swing-state jobs in a coronavirus-altered economy. Biden’s plan includes $2 trillion in spending over four years and sets the goal of a 100% clean-energy standard by 2035, people briefed on the proposals said. That’s more spending over a shorter period than the $1.7 trillion, 10-year plan that Biden had offered during the Democratic primary. The proposal is another key element of Biden’s broader plan to pull the U.S. out of the recession touched off by the pandemic as he builds his argument into the November election against President Donald Trump. With the energy plan, the Democratic nominee will seek to both revive the economy and address deeper systemic problems that existed before the virus hit. Yet the challenge for Biden lies in convincing progressive voters that he hasn’t left them short even as he set aside some of the more ambitious moves called for in the Green New Deal championed by left-wing Democrats including Representative Alexandria Ocasio-Cortez. During a virtual fundraiser Monday night with dozens of renewable energy developers and advocates, Biden said clean energy would offer an opportunity for American workers to rebound from multiple predicaments. “It makes it all easier in a bizarre way,” he said. “We’re facing a historic set of crises: a pandemic, an economic crisis and systemic racism. And the most sweeping crisis of all -- climate change -- touches each one, and it exacerbates the threats to global health and to the economy and racial justice.” Biden also said he understands the urgency to act, telling donors that “2050 is a million years from now in the minds of most people. My plan is focused on taking action now, this decade, in the 2020s.” In his initial climate proposal from June 2019, 2050 was the target for net-zero emissions.
2020 oil, gas drilling to hit at least 20-year low | Oil & Gas Journal -- The number of drilled wells globally is expected to reach around 55,350 this year, said Rystad Energy, the lowest level since at least the beginning of the century as oil and gas activity, including the drilling market both in terms of wells drilled and related demand for drilling equipment, has been stymied by the COVID-19 pandemic. The decline is a staggering 23% fall from 2019’s number of 71,946 wells. Rystad Energy’s forecast, which extends to 2025, does not expect last year’s number to be met or exceeded within the considered timeframe. Drilled wells are expected to partly recover to just above 61,000 in 2021, as governments ease travel restrictions, boosting oil demand and prices. Then numbers will rise further to just above 65,000 in 2022 and remain just below 69,000 until the end of 2025. North America is likely to be most affected, with the country’s rig count already down to historic lows just a few months into the downturn. Although modest recovery is possible in second-half 2020, drilling activity will remain more than 50% below the levels seen at the same time last year. Of the 55,350 wells to be drilled in 2020, 2,238 are offshore and 53,112 are onshore. Before the pandemic, Rystad Energy had expected total wells to rise year-over-year to 74,575, of which 2,896 would be offshore wells and 71,679 onshore wells. “Both new wells and drilling lengths will be pared down as E&P’s scale down investments, affecting the entire supply chain associated with these services. This includes drilling tools, which will decline by 35% in 2020 compared to 2019,” said Reza Hassan Kazmi, energy services analyst at Rystad Energy. When looking at drilling tools, Rystad Energy includes blowout preventers (BOPs), downhole drilling tools, drill bits, drill pipe, jars, drill collars, and other drilling tools except downhole pumps used for artificial lift, under the generic service segment. Drilling length, another key driver for drilling tools, especially for drill pipes, drill collars, heavy-weight drill pipes and drill bits, is also estimated to drop by 25% this year before improving in 2021. At a more granular level, such as the regional or country level, the percentage decrease in wells will not always result in a proportional reduction in total drilling lengths, as drilling depths per well could greatly vary between different regions and countries.
US warns firms about sanctions for work on Russian pipelines (AP) — The Trump administration is hardening its efforts to prevent the completion of new German-Russian and Turkish-Russian natural gas pipelines by warning companies involved in the projects they'll be subject to U.S. sanctions. Secretary of State Mike Pompeo announced Wednesday the administration is ending grandfather clauses that had exempted firms previously involved in the pipelines' construction from sanctions. The move will likely increase tensions in already fraught U.S.-European ties as well as anger Russia. It opens the door for U.S. economic and financial penalties to be imposed on any European or other foreign company for work on Nord Stream 2 and the second TurkStream line. The administration believes the pipelines will increase dependence on Russian energy.
Russias Nornickel fights cover-up accusations over Arctic oil spill (Reuters) - Pressure is mounting on Russian mining company Norilsk Nickel over an Arctic oil spill that has wiped about 17% off its share price, left it with a hefty compensation bill and exposed it to accusations of covering up the full extent of the damage. Nornickel, as it is better known, denies the cover-up allegations by green campaigners, a regional governor and a former official at Russia’s environmental watchdog, who have spoken out publicly and, in some cases, published tests, photographs and witness accounts to support their allegations. Their evidence, which Reuters has been unable to verify, shows diesel has spread into a lake and, according to witnesses, into a river that feeds into the Arctic Ocean. Nornickel, citing official tests and satellite images, denies pollution has spread into either body of water. It says it has contained the leak, from a power station near the industrial city of Norilsk on May 29, and that it has recovered 90% of the diesel by using containment booms and pumps. It also denies hiding the extent of the damage, saying the vast number of companies, regulators and others officials involved in the clean-up operation guarantees full transparency. “We cannot imagine how it would be possible to hide anything in such conditions,” a company spokeswoman said. “An investigation into the incident is being carried out by regulatory and monitoring agencies.” Reuters has no independent evidence to support the allegations that Nornickel has suppressed information. Nornickel’s shares fell 5% in one day in Moscow on Monday after Russia’s environmental watchdog demanded over $2 billion in damages. Nornickel said on Wednesday it disputed the size of the claim and the methodology used for its calculation. President Vladimir Putin in June chided Vladimir Potanin, the billionaire boss of Norilsk, for not replacing the source of the spill, a fuel tank, in timely fashion and said significant damage had been caused to the fragile Arctic environment. Potanin told Putin Nornickel would spare no expense to restore the environment and was committed to fund programs that would increase the deer population and maintain rare fish stocks. Nornickel has said publicly it is also committed to a federal investigation into the incident, takes full responsibility for what happened, and wants to avoid a repeat.
Philippine Oil Spill Threatens Recovering Mangrove Forests -An oil spill on July 3 threatens a mangrove forest on the Philippine island of Guimaras, an area only just recovering from the country's largest spill in 2006. This latest spill stems from an explosion onboard a floating power barge in the 13-kilometer (8-mile) waterway between the city of Iloilo and Guimaras Island. Operator AC Energy Inc. said the incident spilled 48,000 liters (12,700 gallons) of fuel oil into the Iloilo River and its tributaries before being contained eight hours later. But the Philippine Coast Guard said around 251,000 liters (66,300 gallons) of oil had spread around the waterway. The day after, July 4, the Coast Guard estimated it had collected 130,000 liters (34,300 gallons) of oil.Some of the oil was swept out of the containment area by strong waves and carried across to communities in Guimaras."The root cause has yet to be determined," AC Energy said in a statement. "But initial findings reveal that the discharge is due to the ignition of fuel oil in storage which ruptured the barge's fuel tank."AC Energy said it took responsibility for the explosion and that the cleanup could take around two weeks. Reports from the Iloilo City Disaster Risk Reduction Management Office (ICDRRMO) state that the oil spill has affected 321 families along the coast. The provincial office has ordered an immediate evacuation. The spill comes as a blow to residents of Guimaras, who, nearly 14 years ago, suffered a similar disaster on a bigger scale. On Aug. 11, 2006, the oil tanker M/T Solar, owned by Sunshine Maritime Development Corp. and chartered by Petron, the Philippines' largest oil company, sank off the southern coast of the island, leaking 500,000 liters (132,000 gallons) of bunker fuel. The mangroves only began to show signs of recovery last year, but are now threatened by this latest incident. The spill has disrupted the area's fishing sector, with fishers no longer going out to sea and aquaculture culture farms contaminated. Residents have reported milkfish and lobsters swimming in the oil slick and have reached out to their municipal offices for support.
PCG charges energy firm over oil spill in Iloilo City waters - — Authorities on Saturday said they had filed a complaint against a thermal energy company for the oil spill incident in Iloilo City over a week ago. The Philippine Coast Guard said that it sued Ayala-owned AC Energy, Inc., its president John Eric Francia and Power Barge 102 plant manager Roberto Gambito. The case was filed with the Iloilo Provincial Prosecutor’s Office on Friday for violation of Section 107 of the Fisheries Code. Under Section 107, those found administratively liable for aquatic pollution may face closure of their business and be ordered to pay up to P500,000 and “an additional fine of P15,000 per day until the violation ceases and the fines are paid.” The coast guard said in a statement that Commander Joe Mercurio of the Coast Guard Station–Iloilo, and their legal affairs team “found sufficient evidence to prove the negligence” of the firm and the two other respondents over the July 3 incident where around 48,000 liters of oil spilled into waters after AC Energy's Power Barge 102 in Lapuz district's Barrio Obrero exploded. The PCG reported that the explosion contaminated the coastal areas of approximately 23 communities in Iloilo City, municipality of Dumangas, and Guimaras as well as a one-hectare mangrove forest. The blast also displaced hundreds of families or 400 residents, the PCG added. PCG Commandant, Vice Admiral George Ursabia, Jr. said that rehabilitation of the affected forest and communities is still ongoing. About 72 percent of the oil has been recovered while the shoreline cleanup is 15-percent complete. Dr. Rex Sadaba of the University of Visayas advised PCG’s marine protection unit to wait for the spilled oil at the mangrove stems to dry first, the agency said.
"Four Times Worse Than Exxon Valdez Disaster": Decaying Oil-Laden Tanker Off Yemen A Ticking Time Bomb - For the past five years there's been a stranded oil tanker in the Red Sea off Yemen's coast, near the terminal of Ras Isa in an area controlled by Houthi rebels. It is loaded with 1.1 million barrels of crude oil and was deserted at sea when the war started, after Yemen's Houthis seized the Japanese-made vessel from Yemen's government. The United Nations is now warning that the badly damaged tanker - damage considered "irreversible" after it hasn't been worked on or maintained for over five years - is on the brink of a disastrous oil spill which "would be four times worse than Exxon Valdez" off Alaska in 1989, according to a UN official. The FSO Safer is already witnessing spillage into the sea and is in danger of sinking into the ocean altogether, new reports say.“Prevention of such a crisis from precipitating is really the only option,” Executive Director of the United Nations Environment Program Inger Andersen warned this week. “Despite the difficult operational context, no effort should be spared to first conduct a technical assessment and initial light repairs.”Time is running out, officials and environmentalists say. They also warn it could possibly explode, releasing dangerous toxic gases into the air, due to gas leakage after lack of maintenance. A UN team is currently attempting to gain access to the site to inspect it and initiate whatever temporary light repairs are possible. For years the Houthis have blocked access to any international inspections teams. However, the current heightened looming threat of a disastrous spill, and the potential to destroy local livelihoods and the environment for years to come, has reportedly led to a breakthrough, with permission recently being issued.
$16B LNG Funding Deal Bucks Slowdown - Total SA’s Mozambique liquefied natural gas project has completed as much as $16 billion in funding involving a score of banks, despite a slowdown in energy investment as the coronavirus hammers the global economy. It is the biggest foreign direct investment in Africa yet, according to law firm White & Case LLP, which advised the financiers. Financial close is expected by the end of September, it said. The African Development Bank will provide $400 million in senior loans and the Japan Bank for International Cooperation signed a loan agreement for as much as $3 billion for the scheme in northern Mozambique, they said Thursday in separate announcements. The amount raised, which includes a loan from the Export-Import Bank of the U.S., matches the African nation’s gross domestic product. Oil India Ltd., a partner, also confirmed the financing in a statement. A Maputo-based spokeswoman for the Total-led project didn’t respond to a request for comment. The financing achievement underscores the faith being shown in the $23 billion project known as Mozambique LNG. While crude oil has staged a partial comeback from the worst effects of the pandemic, the gas market continues to face a massive oversupply. Despite this, lenders are betting on the country’s location in southern Africa for ease of export, and the sheer size of gas deposits linked to the project. The project, which could be transformational for the country’s economy, still faces significant challenges including its location in an area where an Islamist insurgency began in 2017. Similar schemes, including Exxon Mobil Corp.’s Rovuma LNG to be built next to Total’s facility, have been delayed due to depressed energy prices and the pandemic. Mozambique LNG’s funding effort still raised $600 million more than planned, with pricing at pre-coronavirus levels, according to Societe Generale SA, the financial adviser for the project.
China refinery output hits record in June on strong margins, demand recovery - (Reuters) - China’s daily crude oil throughput in June climbed 9% from the same month a year earlier, hitting the highest level on record, as refiners ramped up processing on healthy margins amid a recovery in demand for gasoline and diesel. ADVERTISEMENT China processed 57.87 million tonnes of crude oil last month, according to data released by the National Bureau of Statistics (NBS) on Thursday, equivalent to about 14.08 million barrels per day (bpd). That was up from 13.63 million bpd in May, beating the previous record set in December last year. Throughput for the first half of this year totalled 319.09 million tonnes, equal to about 12.8 million bpd, up 0.6% from the same period a year ago. Refiners cranked up processing in the second quarter as domestic fuel demand started to recover, after deep production cuts during February and March when the coronavirus outbreak peaked in China. “Refinery processing was elevated in June as both state refiners and independents maxed out utilisation rates to capitalise on healthy margins,” said Chen Jiyao, a consultant with FGE, speaking ahead of the data release. Diesel demand was supported by new construction projects and a boost in manufacturing activity, while gasoline consumption saw a further recovery from the pandemic in June when China’s Dragonboat festival holiday boosted driving, said Chen.
Oil slips as traders eye supply cut easing at OPEC meeting - Oil steady ahead of OPEC meeting despite surge in COVID-19 infections - Oil prices were little changed on Monday as the market waits for direction from an OPEC meeting later this week that is expected to recommend an increase in output. That lack of price movement came despite concerns demand could take a hit if some governments reverse lockdowns after global coronavirus cases rose by a record daily amount. The World Health Organization reported a record daily increase in global coronavirus cases on Sunday, with the total up by more than 230,000. In the United States, infections surged over the weekend as Florida reported an increase of more than 15,000 new cases in 24 hours, a record for any state. Brent futures fell 1 cent to $43.23 a barrel, while West Texas Intermediate crude rose 8 cents, or 0.2%, to $40.63. Oil traders remained on edge as the Joint Ministerial Monitoring Committee (JMMC) of the Organization of the Petroleum Exporting Countries (OPEC) prepares to meet on Tuesday and Wednesday to recommend levels for future supply cuts. OPEC and allies including Russia, a group known as OPEC+, are expected to ease their production cuts to 7.7 million barrels per day (bpd) after a recovery in global oil demand. "That seems a quite risky option, with the safer being a one month extension ... It may be time to brace for volatility once again," OPEC+ cut output by a record 9.7 million bpd for May, June and July. A gradual rise in oil demand as countries ease coronavirus lockdowns and record supply cuts by OPEC+ are bringing the oil market closer to balance, OPEC Secretary General Mohammad Barkindo said on Monday. Libya, meanwhile, re-imposed force majeure on all oil exports on Sunday because of a renewed blockade by eastern forces. The move comes only two days after Libya exported its first crude cargo in six months.
Oil prices drop on demand recovery fears amid U.S. virus surge - Oil prices fell around 2% in early trade on Tuesday on worries that new clampdowns on businesses to stem surging coronavirus cases in California and other U.S. states could threaten the nascent recovery in fuel demand. U.S. West Texas Intermediate (WTI) crude futures slid 84 cents, or 2.1%, to $39.26 a barrel at 0138 GMT, while Brent crude futures fell 77 cents, or 1.8% to $41.95 a barrel.Both benchmark contracts lost just over 1% on Monday.California's governor on Monday ordered bars to shut and restaurants, movie theatres, zoos and museums in the country's most populous state to cease indoor operations as coronavirus cases and hospitalizations soared.The state's two largest school districts, in Los Angeles and San Diego, also said they would teach only online when school resumes in August.California's moves follow the recent reinstatement of some restrictions in other states, such as Florida and Texas."With the California soft lockdown now framing the picture, July could be an even more challenging month for oil than expected with even more demand woes emanating from coronavirus-linked uncertainty," AxiCorp market strategist Stephen Innes, market strategist said in a note.The market will be closely watching data on fuel consumption due later on Tuesday from the American Petroleum Institute industry group and on Wednesday from the U.S. Energy Information Administration. Analysts estimate U.S. gasoline stockpiles fell by 900,000 barrels and crude oil inventories fell by 2.3 million barrels in the week to July 10, a preliminary Reuters poll showed. With fuel demand growth hampered, the market will also be eyeing the next move from the Organization of Petroleum Exporting Countries and its allies, together known as OPEC+, whose market monitoring panel is set to meet on Tuesday and Wednesday.
Oil end higher as traders weigh uncertainty over next move for OPEC+ - Oil futures erased earlier losses to end higher on Tuesday, getting a boost from some weakness in the U.S. dollar, as traders weighed uncertainty over the next move for OPEC+ on production levels, and a forecast for a weekly decline in U.S. supplies. Prices for oil remained vulnerable to losses in the wake of mounting tensions between the U.S. and China, as well as a continued rise in COVID-19 infections in the U.S. and elsewhere — both of which can hurt energy demand. “Crude prices reversed earlier losses as a weaker U.S. dollar persisted and gave most commodities a boost,” U.S. benchmark crude futures are back above the $40 level, but still below the last week’s key high of $41.08, he added. In a note, Moya attributed earlier price declines to “concerns OPEC+ could trigger a taper tantrum,” reducing the size of the current cuts of 9.7 million barrels per day to 7.7 million barrels per day, even as coronavirus restrictions are no longer steadily easing. “WTI crude will not be able to stay near the $40 level if coronavirus spread continues to damage reopening efforts that will be accompanied with much softer demand for crude,” he said. West Texas Intermediate crude for August delivery CL.1, -0.04% on the New York Mercantile Exchange rose 19 cents or 0.5%, to settle at $40.29 a barrel after trading as low as $39.07. September Brent crude BRN.1, -0.09%, the global benchmark, climbed by 18 cents or 0.4% at $42.90 on ICE Futures Europe. Analysts said the Monday decision by California Gov. Gavin Newsom to reverse the reopening of indoor operations at restaurants, bars, movie theaters and other venues in the state dented sentiment and could make a meeting this week by members of the OPEC+ alliance’s monitoring committee more interesting. “With the California soft lockdown now framing the picture, July could be an even more challenging month for oil than expected with even more demand woes emanating from coronavirus-linked uncertainty. So, it will be especially necessary for OPEC+ to present a centralized front while addressing these and other issues that may pop up,”
Oil rises slightly as OPEC+ complies with production cuts (Reuters) - Oil prices rose slightly on Tuesday as OPEC and its allies cut production by more than agreed to in June, although demand concerns lingered due to increased cases of COVID-19 in the United States. Brent crude LCOc1 futures settled up 18 cents at $42.90 a barrel, after moving lower earlier in the session. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 19 cents to $40.29 a barrel. Crude futures strengthened in post-settlement trading, rising after the American Petroleum Institute, a trade group, said U.S. crude inventories fell more than expected in the latest week. The market will be watching for additional weekly data Wednesday from the U.S. Energy Information Administration. [EIA/S] Analysts estimate that U.S. gasoline stockpiles fell by 600,000 barrels and crude oil inventories by 2.1 million barrels last week, a preliminary Reuters poll showed. The Organization of the Petroleum Exporting Countries and its allies led by Russia, collectively known as OPEC+, have delivered compliance of 107% with their agreed oil output cuts in June, an OPEC+ source said on Tuesday. The market is eagerly awaiting news from OPEC+ on the next level of production cuts. OPEC’s Joint Technical Committee meets on Tuesday, with the Joint Ministerial Monitoring Committee due to meet on Wednesday.
OPEC+ set to roll back some production cuts but risks sending prices lower again - OPEC+ production cuts have brought oil prices back from the brink, but the group will have to tread carefully to avoid triggering a new price collapse when it begins to reverse those reductions. The Joint Ministerial Monitoring Committee, which reviews OPEC+ production, meets on Wednesday, and will consider whether the the group should keep 9.6 million barrels a day off the market, or roll that back by about 2 million barrels a day, as sought by Saudi Arabia. OPEC+ has been policing its members and demanding high compliance of its latest round of cuts. "The question is, going forward, if you start easing, which they're going to do, can they keep it together or do they open the flood gates?" said Helima Croft, RBC head of global commodities strategy. "Can you hold discipline within the producer organization?" Croft said the wild card is whether there's another wave of Covid-19 cases, large enough to force more economic shutdowns or even a lockdown by another country. "There's a lot of optimism that the market can handle anything that is thrown at it, in terms of Covid," said Croft. "Does [ OPEC+] have enough of an early warning system? They're going to have to be really nimble because there's so much uncertainty about a second wave." Oil prices began to fall early in the year, on the decline in China demand as it shut parts of its economy due to the spreading virus. A price war between Saudi Arabia and Russia then made the situation worse, and in March, oil took a sharp leg down, as the U.S. and Europe took steps to lock down economic activity. By April, the price even sank into negative territory as investors got trapped in expiring futures contracts, in a market with no buyers and too much oil. West Texas Intermediate crude futures for August were at $40.52 per barrel Wednesday, trading flattish. Brent, the international benchmark was just above $43 per barrel. The International Energy Agency said last week that the worst effects of the coronavirus on oil demand have passed, but the impact will linger. It said oil demand would be down by 5.1 million barrels a day in the second half of 2020. While that's half of the 10.75 million drop in demand in the first half, the rise in oil prices could entice more producers to add oil to the market. "They're itching to put more oil on the market and cash in on this $40 a barrel price improvement they've gotten," said John Kilduff, partner with Again Capital. "I think it's a little early. I'm not sure the market can really absorb any additional barrels right now."
Oil Set To Plunge As OPEC Seeks To Boost Output By 2 Million Barrels -Four months after OPEC cobbled together a record production cut to offset the demand destruction unleashed by the covid-19 lockdowns, R-OPEC+ (i.e., OPEC plus Russia and a bunch of non-OPEC exporters) is set to slowly resume pumping more after an alliance of producers led by Saudi Arabia wants to increase oil production starting in August, amid signs that demand is returning to normal levels following coronavirus-related lockdowns Bloomberg and the Journal reported overnight.Bloomberg confirms as much, noting overnight that "having successfully doubled crude prices over the past few months through unprecedented output cuts, the OPEC+ alliance led by the Saudis and Russia is poised to begin unwinding these stimulus measures. As fuel demand recovers with the lifting of coronavirus lockdowns, the producers are about to open the taps a little." According to the report, alliance members will meet via zoom on Wednesday to debate the group’s current and future production, which include plans to restore some 2 million in production following the record production cut in April which saw Saudi Arabia push for a 9.7 million b/d in production stoppages as the pandemic led to a collapse of oil demand. More from BBG: The JMMC will consider whether the 23-nation alliance should keep 9.6 million barrels of daily output off the market for another month, or restore some supplies as originally planned, tapering the cutback to 7.7 million barrels. As the demand recovery gains traction, members are leaning toward the latter option, according to several national delegates who asked not to be identified. Shipping schedules for August are already being set, so the course is more or less locked in, one said. While all this sounds great in principle, in practice it will likely send the price of oil crashing because just as there was a massive uphill battle in April to get everyone on the same page (and even that did not stop oil from hitting a record negative price on April 20), so now that production quotas are being eased, the result will be a furious scramble to outproduce everyone else, as OPEC's most characteristic feature is exposed for the entire world to see: cheating. “If OPEC clings to restraining production to keep up prices, I think it’s suicidal,” a person familiar with the Saudis' thinking told the Journal. "There’s going to be a scramble for market share, and the trick is how the low cost producers assert themselves without crashing the oil price."
OPEC+ eases record oil cuts as economy recovers from pandemic - (Reuters) - OPEC and allies such as Russia agreed on Wednesday to ease record oil supply curbs from August as the global economy slowly recovers from the coronavirus pandemic but said a second wave of the virus could complicate rebalancing in the market. The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, have been cutting output since May by 9.7 million barrels per day, or 10% of global supply, after the virus destroyed a third of global demand. From August, cuts will officially taper to 7.7 million bpd until December. However, Saudi Arabian Energy Minister Prince Abdulaziz bin Salman said the effective curbs would be deeper because countries which overproduced in May-June would make extra cuts in August and September to make up, so total cuts would end up amounting to about 8.1 million to 8.3 million bpd. “As we move to the next phase of the agreement the extra supply resulting from the scheduled easing of production cuts will be consumed as demand continues on its recovery path,” Prince Abdulaziz after a meeting of a ministerial advisory panel to OPEC+, known as the JMMC. He said Saudi oil exports in August would remain the same as in July because about 0.5 million bpd of extra barrels the kingdom was set to pump would be used domestically. Oil prices LCOc1 have recovered to almost $43 a barrel from a 21-year low below $16 in April. The recovery has allowed some U.S. producers to resume production. Russia and OPEC rely heavily on oil revenue but they will be keen not to push prices too high to give a further boost to rival U.S. oil output growth. On Tuesday, OPEC said it saw demand recovering by 7 million bpd in 2021 after falling by 9 million this year. However, fears of a second wave of coronavirus are weighing heavily on the market and OPEC+ said in documents seen by Reuters that “a second strong wave” could deepen the hit to demand to 11 million bpd this year. Under such a negative scenario, OPEC would fail to address a huge global stocks overhang by the end of the year, it said. Such a scenario could also put in jeopardy OPEC’s plans to supply an extra 6 million bpd of crude to the market next year. “The expected forecast draws are at the mercy of the outcome of the COVID crisis and could be weighed down further by the prospect of Libya’s production coming back,”
Oil jumps more than 2% on surprise U.S. inventory draw - Oil prices rose more than 2% on Wednesday, supported by a sharp drop in U.S. crude inventories, but further gains were limited as OPEC and its allies are set to ease supply curbs from August as the global economy gradually recovers from the coronavirus pandemic. Brent crude was up 75 cents, or 1.75%, at $43.65 a barrel, and West Texas Intermediate crude rose 91 cents, or 2.26%, to settle at $41.20 per barrel. Prices were boosted after data from the Energy Information Administration showed U.S. crude inventories fell 7.5 million barrels last week, compared with analysts' expectations in a Reuters poll for a 2.1 million-barrel drop. "The story of the report is we will see more draws in the coming weeks," "We will see tightening of supplies and the market is signalling that we are going to need more oil pretty soon, probably by August." The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, have been cutting output since May by 9.7 million barrels per day (bpd), or 10% of global supply, after the virus destroyed a third of global demand. After July, the record cuts are due to taper to 7.7 million bpd until December. Saudi Arabia's energy minister Prince Abdulaziz bin Salman said OPEC+ was moving to the next phase of its oil cut pact when the group is expected to ease their reductions as oil demand recovers. Russian Energy Minister Alexander Novak said a partial restoration of production would benefit the market and that Russia would raise oil output by around 400,000 bpd from August. "OPEC+ managed to orchestrate the greatest balancing act ever seen in oil market history. But now, the alliance is ready to start concluding the show," On Tuesday, OPEC said it saw demand recovering by 7 million bpd in 2021 after falling by 9 million bpd this year. The global benchmark Brent has recovered to about $43 a barrel from a 21-year low below $16 in April. The rebound in prices has allowed some U.S. producers to resume suspended production, a move that is set to weigh on OPEC's decision on Wednesday. Prices were also supported by promising early data for a potential COVID-19 vaccine, but the resurgence of the coronavirus in the United States and other countries still kept traders on edge. "Although the demand for crude has jumped in recent weeks, rising coronavirus cases in the United States along with some cities in other major economies reimposing shutdowns have the potential to hit demand,
Oil rises after U.S. crude stocks drop, focus on OPEC+ meeting - Oil prices rose more than 2% on Wednesday, supported by a sharp drop in U.S. crude inventories, but further gains were limited as OPEC and its allies are set to ease supply curbs from August as the global economy gradually recovers from the coronavirus pandemic. Brent crude was up 75 cents, or 1.75%, at $43.65 a barrel, and West Texas Intermediate crude rose 91 cents, or 2.26%, to settle at $41.20 per barrel. Prices were boosted after data from the Energy Information Administration showed U.S. crude inventories fell 7.5 million barrels last week, compared with analysts' expectations in a Reuters poll for a 2.1 million-barrel drop. "The story of the report is we will see more draws in the coming weeks," said Phil Flynn, analyst at Price Futures Group. "We will see tightening of supplies and the market is signalling that we are going to need more oil pretty soon, probably by August." The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, have been cutting output since May by 9.7 million barrels per day (bpd), or 10% of global supply, after the virus destroyed a third of global demand. After July, the record cuts are due to taper to 7.7 million bpd until December. Saudi Arabia's energy minister Prince Abdulaziz bin Salman said OPEC+ was moving to the next phase of its oil cut pact when the group is expected to ease their reductions as oil demand recovers. Russian Energy Minister Alexander Novak said a partial restoration of production would benefit the market and that Russia would raise oil output by around 400,000 bpd from August. "OPEC+ managed to orchestrate the greatest balancing act ever seen in oil market history. But now, the alliance is ready to start concluding the show," said Rystad Energy's senior oil markets analyst Paola Rodriguez-Masiu. On Tuesday, OPEC said it saw demand recovering by 7 million bpd in 2021 after falling by 9 million bpd this year. The global benchmark Brent has recovered to about $43 a barrel from a 21-year low below $16 in April. The rebound in prices has allowed some U.S. producers to resume suspended production, a move that is set to weigh on OPEC's decision on Wednesday. Prices were also supported by promising early data for a potential COVID-19 vaccine, but the resurgence of the coronavirus in the United States and other countries still kept traders on edge.
Oil Prices Get Boost from Trump China Move-- Oil jumped to a four-month high after U.S. President Donald Trump indicated that he doesn’t want to add more sanctions against Chinese officials for now in a move to diffuse tensions with Beijing. Crude futures in New York rose 2.3% Wednesday. The decision to refrain from further restrictions added positive momentum to a market already supported by a U.S. government report showing that crude stockpiles contracted by the most this year. Earlier, Saudi Arabia and Russia said OPEC+ will taper its output curbs in August, but the supply increase will be offset as demand recovers and laggard members compensate for overshooting quotas by making extra reductions. “No conflict with China is good for oil.” The large draw from American stockpiles in the Energy Information Administration report was largely due to declining imports, signaling the end of excess shipments from Saudi Arabia. At the same time, U.S. gasoline demand increased for the 11th consecutive week to the highest since late March. “Lower imports was a big reason for the draw, and the import number is a good number for what we’re going to see for the next few months,” “Those 2 million barrels per day that OPEC might add on the first day of August won’t hit until September or October.” Crude has traded in a tight range around $40 a barrel in July as lower supply and recovering demand is tempered with nervousness over a pandemic that’s still raging in many parts of the world. There are patchy indications of a market recovery, with sulfurous crudes in short supply and key swaps in the North Sea market -- known as contracts-for-difference -- signaling additional strength. In physical markets, Bakken crudes strengthened Wednesday morning following reports that the U.S. Court of Appeals for the District of Columbia Circuit issued an administrative stay on a lower court order that the Dakota Access Pipeline to shut down next month. West Texas Intermediate for August delivery advanced 91 cents to settle at $41.20 a barrel in New York. Brent for September settlement climbed 89 cents to end the session at $43.79 a barrel. CFDs in the North Sea closed in their strongest backwardation since February on Tuesday, according to Bloomberg fair-value data, pointing to supply tightness in some corners of the market. The 23-nation OPEC+ coalition, led by Riyadh and Moscow, will taper its curbs to 7.7 million barrels a day in August from 9.6 million currently, Saudi Energy Minister Prince Abdulaziz bin Salman and his Russian counterpart Alexander Novak said on Wednesday at the meeting of the group’s monitoring committee. Yet coalition members that didn’t fulfill their commitments to cut output in May and June -- such as Iraq and Nigeria -- will make up for it with extra reductions in August and September, the prince said at the start of the conference.
Oil falls as OPEC+ plans to raise output while virus cases increase - (Reuters) - Oil prices fell 1% on Thursday after OPEC+ agreed to ease record supply curbs and as new infections of the novel coronavirus continue to surge in the United States. Both benchmark Brent and U.S. crude have remained above $40 a barrel for the last several weeks. The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, lowered daily supply beginning in May and demand worldwide has rebounding, helping prices to stabilize. Fears of a second wave of cases of COVID-19 - led by the United States - are keeping the rally in check. Nearly 600,000 people worldwide have died of the disease, according to a Reuters tally. Brent fell 42 cents, or 1%, to settle at $43.37 a barrel. U.S. West Texas Intermediate (WTI) crude fell 45 cents, or 1.1%, to settle at $40.75 a barrel. Both benchmarks rose 2% on Wednesday following a sharp drawdown in U.S. crude inventories. [EIA/S] International Energy Agency Executive Director Fatih Birol said on Wednesday that global oil markets are rebalancing, with prices of about $40 per barrel expected in coming months. OPEC+ agreed on Wednesday to scale back oil production cuts from August, reducing cuts by 2 million barrels per day to 7.7 million bpd through December. “Nobody could really expect OPEC+ to keep the 9.7 million bpd curtailments into August,” said Rystad Energy’s senior oil markets analyst Paola Rodriguez-Masiu. “Boosting output by 2 million bpd is not little, but the demand recovery, even though a little slower than expected, justifies it.”
Oil prices slip as coronavirus cases surge (Reuters) - Oil prices edged lower on Friday as concerns about the surge in coronavirus cases sapping fuel demand while major crude-producing nations ready increases in output. The United States reported at least 75,000 new COVID-19 cases on Thursday, a daily record. Spain and Australia reported their steepest daily jumps in more than two months, while cases continued to soar in India and Brazil. Fuel demand has broadly recovered from a 30% drop in April after nations worldwide restricted movements and businesses shuttered. Consumption remains below pre-pandemic levels, however, and fuel purchases are falling again as infections rise. Brent crude futures LCOc1 fell 23 cents a barrel to settle at $43.14 per barrel. U.S. West Texas Intermediate (WTI) crude CLc1 fell 16 cents to $40.59. Both contracts were little changed from a week earlier. Lawmakers in the United States and the European Union are set to debate more stimulus over the coming days. Benchmark crude fell 1% on Thursday after the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, agreed to trim record supply cuts of 9.7 million barrels per day (bpd) by 2 million bpd, starting in August. U.S. energy firms cut the number of oil and natural gas rigs operating to a record low for an 11th week in a row, according to data from energy services firm Baker Hughes Co (BKR.N). Firms have slowed reductions as some consider returning to the well pad with crude prices up from historic lows. Energy firms could start adding rigs later this year if prices remain stable at higher levels. “U.S. rig activity will bottom near 250 rigs or roughly today’s levels,” analysts at Raymond James said. They expect the rig count to average 270 in the second half of 2020.
Oil Prices Falter As Supply Surge Looms | Rigzone -- Oil snapped its two-day rally amid a weaker demand outlook underscored by the OPEC+ alliance’s decision to taper production cuts and U.S. economic data signaling a slowing recovery in the labor market. After hitting a four-month high in the prior session, U.S. crude futures fell 1.1% on Thursday. OPEC+ plans to add at least 1 million barrels a day of output to the market in August after almost three months of historic curbs to ease the impact of the coronavirus pandemic. Adding to supply concerns, traders are weighing the potential for tension between the world’s top oil producers. Saudi Arabia’s energy minister Abdulaziz bin Salman Al Saud said the alliance’s March deal was reached as the kingdom was fed up of volunteering and taking on others’ burdens. The comments imbued a “little bit of nervousness” into the market as investors look to “get a full picture of the relationship between Russia and Saudi Arabia,” said Phil Flynn, senior market analyst at Price Futures Group Inc. “We know that the last disagreement between Russia and Saudi Arabia created a production war the world will never forget.” Oil also came under pressure as equities weakened in the U.S. Labor Department figures showed the number of Americans filing for unemployment barely dropped last week, signaling the labor-market recovery is stalling as virus cases surge around the country. In addition to supply worries, a lackluster demand picture is also spooking investors. The pace of oil-demand improvements is starting to slow, driven by a sharp pullback in the U.S., according to Goldman Sachs Group Inc. Signs of a slowing recovery in the U.S. “does not bode well for gasoline demand,” said John Kilduff, partner at Again Capital LLC. “With the increased measures in various states due to the renewed Covid outbreak, it’s another negative for the gasoline demand outlook.” The Organization of Petroleum Exporting Countries and its allies will withhold 7.7 million barrels a day from the market in August, compared with 9.6 million currently. The actual cut next month will be 8.1 million to 8.3 million barrels a day due to the compensatory curbs from members including Iraq and Nigeria. However, Saudi Arabia’s energy minister Abdulaziz bin Salman Al Saud said the OPEC+ oil production cuts deal will continue until April 2022 and may extend beyond two years if warranted. The producer group will take more measures if needed to deal with the impact from the virus on oil markets. West Texas Intermediate for August delivery declined 45 cents to settle at $40.75 a barrel in New York. Brent for September settlement fell 42 cents to end the session at $43.37 a barrel. It traded at a 13-cent discount to the October contract, the smallest in nearly two weeks, a sign of tighter supply.
Forecasters See More Oil Demand Destruction -- The recovery in global oil demand looks like it’s going to be slower than expected, as a resurgence in Covid-19 cases forces the re-imposition of lockdowns. All three of the world’s main oil forecasting agencies — the International Energy Agency, the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries — have increased their assessments of demand destruction in the third quarter of 2020, even as they see the depth of the crisis in the second quarter being less bad than previously thought. In their latest monthly reports, the three agencies all saw third-quarter global oil demand falling further behind last year’s level than they did in June, as the chart above shows. The average loss compared with the same period in 2019 is now 7.5 million barrels a day, compared with less than 7 million forecast a month ago and 6.5 million seen in May. The fourth quarter looks a little better, but demand is still expected to be somewhere between 3.7 million and 4.6 million barrels a day below the same period in 2019. The IEA and EIA are at the more optimistic end of that range, with OPEC seeing the effects of demand destruction lingering longer. Those numbers are still a lot better than the levels of demand destruction seen in the second quarter, which the three groups now see averaging 16.4 million barrels a day. All three have trimmed their assessment of the demand loss in the April to June quarter in their latest reports, but it still amounts to almost 1.5 billion barrels over the period, enough to power the entire world for half a month. A resurgence in Covid-19 cases, particularly in North and Latin America, is leading to new lockdowns and causing concern that the rebound in oil demand will falter. Congestion on U.S. city streets is still well down on pre-lockdown levels. Delays in Los Angeles are about a third of what they were before restrictions were imposed, while in New York they’re at about 60% of normal levels. In Europe the picture is a bit different, with congestion on Berlin’s roads almost back to levels seen before restrictions were imposed, and other major cities on the continent not far behind. The pace of economic recovery has slowed in several major economies, including the U.S., Canada and the U.K., with activity remaining around 60% of pre-pandemic levels, according to Bloomberg Economics’ daily gauges. Despite the concerns, the Joint Ministerial Monitoring Committee of the OPEC+ group of oil-producing countries recommended yesterday that members ease back on output cuts from the beginning of August. The size of the headline output cut will be reduced from 9.6 million barrels a day to 7.7 million, but some of that increase in supply will be offset by deeper reductions from those countries that failed to implement in full the curbs they agreed for May and June. Much of the rest will be soaked up by higher domestic consumption in the producing countries themselves, leading Saudi Energy Minister Prince Abdulaziz bin Salman to remark that the additional volume of oil reaching the global market next month will be “barely felt.”
OPEC+ deal compliance reaches 108% in June - Production of OPEC+ countries in June decreased by almost 2 mln bpd compared to the previous month and reached 33.4 mln bpd. The agreement to reduce oil production this month saw 108% compliance against 89% a month earlier, according to the July report of the International Energy Agency (IEA).“On the supply side, global oil production fell sharply in June to stand 13.7 mb/d below the April level. The compliance rate with the OPEC+ supply agreement was 108%. This includes overperformance by Saudi Arabia which cut production by 1 mb/d more than required, reducing OPEC crude output to its lowest point in nearly three decades. This solid performance by the OPEC+ group has been supplemented by substantial market-driven cuts, mainly in the United States,” the report said. According to the report, in June Russia 100% fulfilled its quota for reducing oil production. In total, OPEC countries in June reduced oil production by 112% of the plan, and non-OPEC countries – by 99%.
IMF slashes growth forecasts in the Middle East again amid an 'unusually high level of uncertainty' - The International Monetary Fund revised its growth forecasts for the Middle East and North Africa downward again amid an "unusually high level of uncertainty," according to its latest regional economic report. It now expects MENA economies to contract 5.7% in 2020. In April, it predicted that the region would shrink 3.3% for the year. "The unusually high level of uncertainty regarding the length of the pandemic and its impact on firm closures, the resulting downside risks (including social unrest and political instability), and potential renewed volatility in global oil markets dominate the outlook," the report said. Jihad Azour, director of the IMF's Middle East and Central Asia department, said the region experienced "twin shocks" with the coronavirus pandemic and depressed oil prices. "Managing this crisis had a big impact and a toll on the economy and this is why we had to revise our growth rates downward this year," he told CNBC's Hadley Gamble on Sunday. "I would say (the downgrade is) in line with most of the countries in the world, but in our part of the world, with the diversity of the economies and the linkages that exist between oil exporting and oil importing, this is going to be a challenge going forward," he said. The IMF also lowered its expectations for the global economy last month, and now sees a contraction of 4.9% in global gross domestic product in 2020.
UN: 700 Die In Syrian Camp For ISIS Families - "Explosive" Situation For Renewed Terrorism ISIS has long been out of international media headlines, but sprawling refugee camps full of what are said to be Islamic State families and sympathizers remain in eastern Syria. Days ago the United Nations issued an alarming report detailing that the some 70,000 mostly women, children, and elderly connected to ISIS at the al-Hol and Roj camps remain in "very dire conditions". The UN counterterrorism chief Vladimir Voronkov announced late last week that 700 people "recently" died in the two camps, according to information his office had received. Al-Hol and Roj are essentially massive open-air prison camps in the desert, administered by Syrian Kurdish forces backed by the United States. Voronkov underscored that driving the high fatality rate are "lack of medicine, lack of food" - and though there have been recent reports that coronavirus may be in the camps, it's unclear the extent to which COVID-19 is a factor. A UN team was reported to have entered the largest of the two camps, al-Hol, earlier this month. The populations there are in a legal limbo of sorts, and their fate uncertain. From a counterterrorism point of view, the UN office warned the camps post a "huge problem" as they remain "very dangerous" for the prospect of a renewed Islamic State terror campaign. Voronkov warned: "they could create very explosive materials that could be very helpful for terrorists to restart their activities" in Syria and Iraq.
Yemen fragmenting under pressure of war, collapsing economy and COVID-19 -- The five-year-old Yemen war is creating a catastrophe of immense proportions in the Middle East’s poorest country. Last week, Saudi Arabia launched scores of air strikes on the capital Sana’a, Saada and other cities in the north under the control of the Houthi rebels, with the aim of killing top officials. The attacks followed the Houthis firing missiles and drones at the Saudi capital Riyadh and military installations in Jizan, Najran, Khamis Mushayt, and Abha. While the Saudis said they had intercepted and destroyed two missiles and six drones, the Houthis claimed they had hit the Tadawin camp where Saudi and Yemeni leaders were meeting, killing and injuring dozens, as well as the Saudi Ministry of Defence. The Houthis said their attacks were in response to the crimes of the Saudi-led coalition, the latest being the killing of four civilians, including a child, in a naval attack in May on the country’s north-western province of Hajjah, and the ongoing naval blockade of Hodeidah port that is preventing the most basic commodities, including food and pharmaceuticals, reaching Yemen’s people. Around 14 million of Yemen’s 28 million population are on the brink of starvation, while 80 percent are reliant on food aid. The Saudis’ 257,000 aerial strikes and the United Arab Emirates (UAE) naval blockade have caused the deaths of at least 230,000 civilians, both directly and indirectly due to hunger and disease, and displaced 3.6 million. Save the Children estimated last year that at least 75,000 under the age of five have starved to death since the onset of the war. The worst cholera epidemic on record has infected an estimated 1.2 million people and led to at least 2,500 deaths, while the recent floods have sparked a dengue fever outbreak in Hadramawt. The United Nations has recorded 137,000 cases of cholera and diarrhea this year, nearly a quarter of them in children under five. Armed gangs, militias, and former Saudi mercenaries terrorise the people and extort money. Hospitals and schools do not have basic necessities, while water supplies, telecommunications, electricity generation and the road system barely function, if at all, due to the Saudi-led coalition’s airstrikes. Human rights organisations have reported extrajudicial detentions, beatings, nail removal and electric shocks in Yemen’s unofficial detention centres and prisons, which have expanded during the war, with abuses committed by all parties to the war. This is in addition to the atrocious conditions in the official prisons and detention centres. The recent escalation in fighting follows the failure of the Riyadh Agreement, backed by the US and France and signed by the Hadi government and the secessionist Southern Transitional Council in November last year, for a power sharing deal, as well as the Saudis’ efforts over the last four months to effect a ceasefire. The Houthis have been reluctant to agree a ceasefire under conditions where the Saudi-led coalition has failed to make headway in a costly war it had in 2015 expected to win in a matter of weeks.
With U.S. Backing, U.N. Confronts Tehran Over Nuclear Work – WSJ —Rafael Grossi spent more than a decade sleuthing around Iran’s nuclear activities. Now he leads global efforts to contain that work and is facing down Tehran in an increasingly tense test of the United Nations’ atomic agency’s authority. Since becoming chief of the International Atomic Energy Agency on Dec. 3 with strong U.S. backing, Mr. Grossi has steered the agency into a deepening confrontation with Iran over enforcement of nuclear-weapons control rules. Now Mr. Grossi is assessing when to up the ante. In an interview with The Wall Street Journal at IAEA headquarters, he said the agency won’t retreat, warning that if Tehran doesn’t grant access by the end of this month, it “will be bad.” U.S. officials have urged him to update IAEA members soon on Tehran’s cooperation, an ostensibly procedural step that could set dominoes falling and further threaten the embattled 2015 Iran nuclear deal. It would allow Washington to try to take Iran to the U.N. Security Council over its IAEA stonewalling—a move likely to spark opposition from Russia and China and fury from Tehran. The Trump administration has praised Mr. Grossi for his handling of the standoff. Washington, which quit the 2015 nuclear deal in 2018, this year bolstered the IAEA with extra money as it cut funding to other U.N. agencies. Some diplomats say the Argentine diplomat’s approach risks killing the nuclear accord, known as the JCPOA. “We need to avoid a reckless and a hasty step,” said a senior IAEA diplomat. “Under certain circumstances, the JCPOA may even cease to exist.”
Azerbaijan Threatens To Strike Armenian Atomic Plant Amid Worst Border Fighting In Years - The Azerbaijani Ministry of Defense warned on Thursday, that its forces could carry out a precision strike on the Metzamur power station in western Armenia if Yerevan decided to hit Azerbaijani strategic installations.This after renewed fighting along the historically contested border early this week, as the AP described: Armenia and Azerbaijan forces fought Tuesday with heavy artillery and drones, leaving at least 16 people killed on both sides, including an Azerbaijani general, in the worst outbreak of hostilities in years. Skirmishes on the volatile border between the two South Caucasus nations began Sunday. Azerbaijan said it has lost 11 servicemen and one civilian in three days of fighting, and Armenia said four of its troops were killed Tuesday. In response to Armenian threats to hit the Mingchevir water tank in northern Azerbaijan, the Azerbaijani Defense Ministry spokesman, Colonel Waqif Dargankhali, threatened: “The Armenian side should not forget that the latest missile systems available to our army are capable of hitting the Metzamur Atomic Energy Station with high accuracy, which will turn into a great tragedy for Armenia.”These statements reported in Interfax come against the backdrop of the military escalation in the border region between Armenia and Azerbaijan, which the two sides have accused each other of causing.Moscow and Tehran have confirmed that they would do their utmost to reduce the tension between Baku and Yerevan, while Turkey aligned with Azerbaijan, has vowed to make Armenia “pay the price” for clashing with Azerbaijan. Azerbaijan's Defence Ministry states that it can hit Armenia's Metsamor Nuclear Power Plant "with high accuracy", something it says would be a "great catastrophe for Armenia". https://t.co/jguSHiZ5q8 Meanwhile, the press secretary for the Armenian Ministry of Defense, Shusha Stepanian, announced on Thursday the resumption of clashes on the border between Armenia and Azerbaijan.
China’s Imports and Exports Rebound as Coronavirus Fades in World’s Second-Largest Economy – WSJ —Chinese imports from the U.S. rose for the first time since the new coronavirus emerged earlier this year, showcasing Beijing’s post-pandemic purchasing power even as political tension between the world’s two largest economies continues to rise. China’s appetite for meat and other agricultural goods helped Chinese imports of U.S. goods to jump by 11.3% in June from a year earlier, after a 13.5% drop in May, data from Beijing’s General Administration of Customs showed Tuesday. The Chinese buying helped to narrow Washington’s trade deficit with Beijing from a year earlier, though Chinese exports to the U.S. also improved, rising 1.4% in June from a year earlier after a 1.3% decline in May. Even so, the momentum in China’s foreign trade could slow in the coming months amid uncertainties surrounding the coronavirus fight and its toll on the global economy, as well as the U.S.-China trade tensions, Li Kuiwen, a customs spokesman, said Tuesday. For Chinese trade with the world at large, Beijing’s June trade figures showed increases in both total imports and exports compared with a year earlier, reflecting improving demand at home and abroad, as China and some of its trading partners brought the pandemic largely under control. China’s imports from the rest of the world climbed 2.7% in June from a year earlier, Chinese customs officials said Tuesday, reversing a 16.7% slump in May and coming in much stronger than an expected drop of 10%, according to economists polled earlier by The Wall Street Journal. Exports, meantime, edged up 0.5% in June from a year earlier, versus a 3.3% decline in May, customs data showed. June’s exports were also higher than economists’ median forecast for a 4.3% year-over-year decline. Detailed data on traded commodities and countries of origin won’t be available until later this month, but Tuesday’s data showed China significantly ramped up its purchases of agricultural products from its global trading partners in the first half of the year. In the first six months of 2020, China imported 2.12 million metric tons of pork, 1 million tons of beef and 45 million tons of soybeans from its trading partners, which represented increases of 140%, 42.9% and 17.9%, respectively, from the same period a year earlier. Its overseas purchases of iron ore, crude oil, coal and natural gas also increased by volume in the first six months as commodity prices tumbled. Also helping lift China’s exports were increased global demand for electronic products, as more people in the U.S. and Europe shifted to working from home during the pandemic, said Betty Wang, an economist with ANZ. The easing of lockdowns in some places also raised demand for Chinese goods, she added.
Oxfam Warns 12,000 Could Die Per Day From Hunger Due to Pandemic - Oxfam International warned Thursday that up to 12,000 people could die each day by the end of the year as a result of hunger linked to the coronavirus pandemic—a daily death toll surpassing the daily mortality rate from Covid-19 itself.April saw the highest global daily mortality rate for Covid-19 thus far with just over 10,000 deaths per day. Oxfam's warning comes in a new report entitled The Hunger Virus, which the humanitarian group says "shines a light on a food system that has trapped millions of people in hunger on a planet that produces more than enough food for everyone" and that has enabled global food and beverage giants to lavish billions on shareholders since the coronavirus crisis erupted. Kadidia Diallo, a female milk producer in Burkina Faso quoted in the report, puts the crisis in stark terms. "We are totally dependent on the sale of milk, and with the closure of the market we can't sell the milk anymore," she said. "If we don't sell milk, we don't eat." The publication says the hunger crisis is set to deepen in already existing "hunger hotspots" like Yemen, Democratic Republic of Congo (DRC), Afghanistan, and Syria. In those locations, the pandemic "has added fuel to the fire of an already growing hunger crisis." But millions of people in other countries are poised to be "tipped over the edge" as the virus rages, with nations including Brazil and India likely to emerge as new hunger hotspots."Covid-19 is the last straw for millions of people already struggling with the impacts of conflict, climate change, inequality, and a broken food system that has impoverished millions of food producers and workers," Oxfam interim executive director Chema Vera said in a statement. "Meanwhile, those at the top are continuing to make a profit: eight of the biggest food and drink companies paid out over $18 billion to shareholders since January even as the pandemic was spreading across the globe—10 times more than the U.N. says is needed to stop people going hungry."
Video captures Brazilian cop stand on black woman's neck — Two cops in Brazil have been suspended after a disturbing video showed one of them standing on a black woman’s neck, according to reports. São Paulo Governor João Doria announced the cops would be investigated Monday after the woman, a 51-year-old owner of a bar, suffered a broken neck, the BBC and the Daily Mail reported. Footage recently surfaced of one of the cops pressing his boot into her neck in Parelheiros on May 30. The woman, who was not identified, said she had been trying to intervene in a tussle between the two cops and her friend, the Daily Mail reported. But after asking cops to stop hitting her pal, she became involved in a struggle with one of the officers. “The more I struggled, the more he [cop] tightened the boot around my neck,” said the woman, according to the Daily Mail.
Special Report: Drug cartel ‘narco-antennas’ make life dangerous for Mexico’s cell tower repairmen - (Reuters) - The young technician shut off the electricity at a cellular tower in rural Mexico to begin some routine maintenance. Within 10 minutes, he had company: three armed men dressed in fatigues emblazoned with the logo of a major drug cartel. The traffickers had a particular interest in that tower, owned by Boston-based American Tower Corp, which rents space to carriers on its thousands of cellular sites in Mexico. The cartel had installed its own antennas on the structure to support their two-way radios, but the contractor had unwittingly blacked out the shadowy network. The visitors let him off with a warning. “I was so nervous... Seeing them armed in front of you, you don’t know how to react,” the worker told Reuters, recalling the 2018 encounter. “Little by little, you learn how to coexist with them, how to address them, how to make them see that you don’t represent a threat.” The contractor had disrupted a small link in a vast criminal network that spans much of Mexico. In addition to high-end encrypted cell phones and popular messaging apps, traffickers still rely heavily on two-way radios like the ones police and firefighters use to coordinate their teams on the ground, six law enforcement experts on both sides of the border told Reuters. Traffickers often erect their own radio antennas in rural areas. They also install so-called parasite antennas on existing cell towers, layering their criminal communications network on top of the official one. By piggybacking on telecom companies’ infrastructure, cartels save money and evade detection since their own towers are more easily spotted and torn down, law enforcement experts said. The practice has been widely acknowledged by telecom companies and Mexican officials for years. The problem persists because the government has made inconsistent efforts to take it on, and because companies have little recourse to stop it, experts on law enforcement and Mexican society said. “There is a sense of powerlessness” in Mexico, said Duncan Wood, director of the Wilson Center’s Mexico Institute in Washington. He said companies feel they “cannot respond to issues like this because (they) are afraid of the consequences from groups that essentially enjoy impunity.”
Caribbean countries are selling citizenship for as low as $100,000 — here's how the ultra-wealthy are cashing in to avoid pandemic travel restrictions - Caribbean island countries have long offered passports to wealthy foreigners in exchange for a — sometimes steep — monetary investment, but facing a cash crunch and a surge in interest, there are deals to be had. Through December 1, the island nation Saint Kitts and Nevis is selling a four-person family package for $150,000 — down from $190,000, in exchange for a minimum real-estate purchase of $200,000 that must be held for at least seven years. The Caribbean country's passport ranks roughly in line with Mexico's, according to the world Passport Index. And, perhaps more intriguing for Americans currently barred from Europe, the passport's good for visa-less travel to the European Union and the UK, among others. "In these days of Covid, when tourism is not happening, we have to find ways to create revenue to sustain our economy," Les Khan, CEO of Saint Kitts and Nevis Citizenship Investment Unit, told Bloomberg News. Other island nations in the region — including Saint Lucia, Antigua & Barbuda, Grenada, and Dominica — all offer similar programs, some at a new discount, as they hope to cash in on the increased interest ,too. According to Henley & Partners, a London-based passport broker and "identity management" firm, there's been a 42% uptick in citizenship applications. What's more, the US currently has a 1.5 million-passport backlog in its processing queue because of the pandemic. Anyone hoping for easier travel to the United States, however, can expect to pay a lot more. Malta, whose passport power ranks just under Italy, Canada, and Norway in terms of travel, will sell you citizenship that includes EU and US travel — though there are more strings attached. The Mediterranean island nation has long been a hotspot for the world's ultra wealthy.
ECB Leaves Monetary Stimulus Unchanged as It Assesses Pandemic’s Economic Pain —European Central Bank President Christine Lagarde said the eurozone economy is rebounding strongly but faces a highly uncertain outlook, as the bank left its large monetary stimulus unchanged. At a news conference, Ms. Lagarde indicated that the ECB would continue to provide strong support for the region’s governments, businesses and households as they emerge from lengthy lockdowns. She urged European Union leaders meeting this weekend to thrash out a deal on a controversial multibillion euro recovery fund that could remove some of the crisis-fighting burden from the ECB. Europe was hit early and hard by the coronavirus pandemic, but muscular intervention by governments and the ECB have so far helped to curb infection rates and support consumer spending and growth. The ECB alone unveiled around $3 trillion of stimulus measures in recent months, putting its crisis response on par with the Federal Reserve’s. “We are in a good place at the moment,” Ms. Lagarde told reporters, pointing to a significant economic rebound in May and June from April’s low, as governments across Europe eased lockdown measures. Still, she warned that job and income losses, together with exceptionally high uncertainty, would weigh on consumer spending and business investment. The rise in infections in the U.S. is a major concern, she said. The ECB said in a statement Thursday that it would continue to purchase €1.35 trillion ($1.54 trillion) of government and corporate debt through June 2021 under its Pandemic Emergency Purchase Program, or PEPP. The bank also left its key interest rate unchanged at minus 0.5%. A key challenge for Ms. Lagarde, a former International Monetary Fund managing director and French finance minister, is to steer the region’s economy out of its deepest crisis in decades, just as a faster rebound in Northern Europe triggers calls for an early end to easy money. Europe’s recovery is expected to be uneven, tilted toward the richer North, and it depends heavily on costly government support and a rebound in exports. The latter seems unlikely as key trading partners like the U.S. continue to struggle with surging coronavirus infections. The economies of Italy, France and Spain are expected to shrink around 11% this year, roughly twice as much as Germany’s, the European Commission, the EU’s executive arm, wrote in a report this month. Italy’s public debt is expected to rise above 150% of economic output this year, more than double the level in Germany, according to the International Monetary Fund.
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