Three Strikes against the Fed - By Willem Buiter - The Fed’s current operating practices are afflicted with three serious flaws. Like most other central banks, the Fed refuses to set seriously negative policy rates; Like many other central banks, including the ECB, the Fed acts as an unaccountable fiscal principal rather than as a transparent and accountable fiscal agent of the federal government; and, unlike most other advanced economy central banks, it has emasculated the stress tests it imposes on systemically important banks to ensure their capital adequacy. Regarding negative policy rates, the Fed does not even go down to the effective lower bound (ELB), which equals the zero interest rate on currency minus the carry cost of currency (storage, insurance, etc.). The example of the ECB and other European central banks suggests that, even without reforms, the lower bound on the Fed’s target federal funds rate could be set at -75 basis points rather than at its current level of 0.00. Indeed, the rates on required reserves and on excess reserves, both currently 0.10%, could be lowered to -75 basis points, providing a modest but non-trivial financial stimulus. It would be better, however, to get rid of the ELB altogether. With regards to the non-transparent and unaccountable (quasi-)fiscal actions of the central bank, I will focus on the size and composition of the Fed’s balance sheet. I recognise that the setting of the policy rate(s), forward guidance, and yield curve control have unavoidable fiscal consequences – redistribution between borrowers and lenders and profits for the Fed and thus for its beneficial owner, the federal treasury. It is key to recognise that, whatever the formal (often bizarre) ownership structure of a central bank, the national treasury is its beneficial owner, ultimately entitled to its profits and responsible for any losses.The Fed also pays annual remittances to the US Treasury. If there is any systematic and transparent dialogue between the Fed and the US Treasury about these remittances, it remains well hidden. The amounts of money involved are non-trivial.1Since the COVID-19 pandemic struck, the Fed has taken on significant credit risk by lending to and purchasing risky debt instruments from private financial and non-financial corporations, state and local governments, and households. Only a small fraction, generally not more than 10% of the Fed’s maximum possible exposure to these high-risk activities, is covered by US Treasury guarantees or other means of indemnification.The Fed Board released, on 25 June 2020, the results of the full Dodd Frank Act Stress Test (DFAST) 2020, including the performance of 33 individual banks, designed in 2020 Q1, before the coronavirus.3 It also released the results of an additional sensitivity analysis that did try to take into account the economic consequences of the COVID-19 pandemic, by testing the resilience of 34 large banks under three recession and recovery scenarios: V-shaped, U-shaped, and W-shaped.4 Only aggregate results for loan losses and capital ratios of the 34 banks included in the sensitivity analysis were provided, however. The sensitivity analysis did not allow for the potential effects of government stimulus payments and expanded unemployment insurance. On the other hand, the recession and recovery alphabet soup that was considered leaves out the more pessimistic, and in my view realistic, L-shaped scenario, as well as other scenarios (V-shaped, U-shaped, and W-shaped), where the recovery does not reach the pre-COVID-19 path of potential output for many years, if ever.
Fed to start buying loan stakes in coronavirus rescue program— The Federal Reserve’s Main Street Lending Program is officially open and able to purchase participations in loans that meet the central bank's criteria, the Federal Reserve Bank of Boston said Monday. The $600 billion program is aimed at helping small and medium-sized businesses stay afloat during the coronavirus pandemic. Loans will be made available via third-party banks to eligible companies with up to 15,000 employees or up to $5 billion in annual revenue.“This is an important milestone for the Main Street program,” said Eric Rosengren, president of the Boston Fed, which is administering the program. “Given the pandemic’s shock to the economy, and its uncertain duration, support for businesses and their employees through bank lending is critical.”The Fed through the program is purchasing 95% of all eligible loans. Last month the Fed increased its stake in all loans made through the program, lowered the minimum loan amount from $500,000 to $250,000 and increased the maximum loan size for each of the program's three facilities.Lenders were able to register for the program and begin making loans as of June 15. The Boston Fed also said Monday that it would publish in the coming days a state-by-state list of Main Street lenders accepting new customers.
Prins- We're Living In A Permanent Distortion - …Three time best-selling book author Nomi Prins says long before the Covid 19 crisis, the global economy was faltering big time. The Fed stepped in with the start of massive money printing in late 2019 to save the day. Prins explains, “We were already in crisis mode as I mentioned at the end of my last book going into 2019." "What did we see at the end of 2019? We saw this pivot, and I call it phase two. . . . Central banks had pivoted to easing mode. . . . Come September, October, November and December, the Fed is producing repo operations. Those are short-term lending operations that are supposed to be the purview of the banks . . . . The Fed is not supposed to get involved, but it did. The Fed had all kinds of excuses. It said it was not QE, but it was. . . . The debt at the end of 2019 for the world was three times GDP. For every $3 borrowed, only $1 of economic activity occurred. That’s what we started 2020 with. Throw a pandemic into that . . . and you have a long drawn out financial and economic crisis.” Now, the money printing has gone into overdrive to save the system from the virus crisis. The social and economic damage, according to Prins, is profound and not going away. Prins points out, “We are not going to pay back this debt, and this is global. Nobody is even considering trying to pay back the debt that has been created. Let’s think about why that debt has been created. It’s not just because the economy slowed down. That’s one reason and kind of an excuse. The reality is the Fed is on steroids, and other central banks are on steroids . . . throughout the world in a larger number and larger magnitude than in the wake of the financial crisis of 2008. This means all this new debt created is even cheaper than the debt created going into the 2008 crisis. So, more debt, created more cheaply, means less incentive to pay it back and more incentive to push it down the road and grow it. You’ve got this snowball of debt rolling down this high mountain, and it’s rolling and growing and getting bigger. The mountain, which is the main street economy, is coming down as the snow ball is coming down, and the main street economy itself, that foundation, is really shaky. . . . How does this end? It ends with us, the foundation, which is the main street economy, by both that snowball of debt and the avalanche of the mountain. That’s going to be a multi-decade problem.” Prins says this next stage has a brand new name and explains, “I call this a ‘Permanent Distortion.’ I have not used this term in prior books, but I am using it because . . . the disconnect between financial assets, equity markets and the real economy . . . has become massive...
Goldman Lowers U.S. GDP Forecast, Sees 4.6% Contraction in 2020 -- Goldman Sachs Group Inc. economists revised down their estimates for the U.S. economy this quarter, but predicted it will be back on track in September after some states imposed fresh restrictions to combat the coronavirus. While consumer spending appears likely to stall this month and next, economists led by Jan Hatzius said other economies have proved it’s possible to resume activity and changes in behavior such as wearing masks will help too. “A combination of tighter state restrictions and voluntary social distancing is already having a noticeable impact on economic activity,” the economists said in a report published on Saturday. The economists said they now expect the economy to grow 25% in the third quarter having previously predicted 33%. That would result in the economy slumping 4.6% this year, worse than the 4.2% previously seen. But the Goldman Sachs economists said they still expected growth of 5.8% next year and now project unemployment will be at 9% at the end of this year, down from the previous estimate of 9.5%.
Q2 GDP Forecasts: Probably Around 36% Annual Rate Decline - Important: GDP is reported at a seasonally adjusted annual rate (SAAR). So a 36% Q2 decline is around 10% decline from Q1 (SA). Note: 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-.36) ^ .25 - 1 = -0.095 (a 9.5% decline from Q1) From Merrill Lynch: 2Q GDP tracking remains at -36.0% qoq saar. [July 10 estimate] From Goldman Sachs: We left our Q2 GDP forecast unchanged at -33% (qoq ar). We expect -29% in the initial vintage of the report, reflecting incomplete source data and non-response bias [July 9 estimate] From the NY Fed Nowcasting Report The New York Fed Staff Nowcast stands at -15.3% for 2020:Q2 and 10.1% for 2020:Q3. [July 10 estimate] And from the Altanta Fed: GDPNow: The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in thesecond quarter of 2020 is -35.5 percent on July 9, down from -35.2 percent on July 2. [July 9 estimate]
US Budget Deficit Hits A Record $863 Billion In June, A 100X Increase - Those who have been following the record surge in US public debt (excluding the roughly $100 trillion in off-balance sheet obligations), which exploded by $3 trillion in just the past three months and hit an all time high $26.46 trillion on Tuesday, will likely have some inkling that the US budget deficit in June will be staggering. We can now confirm that: in its preview of the June budget deficit, the CBO reported that last month the US spent a record $1.105 trillion, an increase of $763 billion from last year... ... while receipts shrank by $92 billion from a year ago to $242 billion, which on an LTM basis was $3.1 trillion, an 8.3% decrease Y/Y, the largest since the financial crisis and clearly confirming the US is in a recession. This means that the June budget deficit was was a mindblowing $863 billion, an increase of 101x compared to the $8 billion deficit in June of last year. Putting June's deficit in context, it was greater than the full year deficit recorded in 2018, and in fact in any year from 2013 to 2017. It is also just $120BN shy of the $984BN full year budget deficit recorded last year when so many fiscal conservatives slammed Republicans for going crazy with spending on Trump's tax cuts. Little did they know what was about to hit. According to the CBO, the record deficit stemmed "from the economic disruption caused by the 2020 coronavirus pandemic and from the federal government’s response to it, including actions by the Administration and the enactment of four pieces of legislation." Furthermore, outlays by the Small Business Administration—which oversees the recently established Paycheck Protection Program—contributed significantly to the June deficit this year, accounting for almost half of the government’s spending.
Fed Deficit as a % of GDP now at new record - For once Trump is right to claim that he has set a new record as the federal deficit is now over 10% of GDP. It is now 10.7% of GDP as compared to the prior record of 10.2% that Obama inherited from Bush.The deficit is looking more and more like what happened in Japan. Despite ever expanding debt, Japan’s economy stagnated. Expanding federal debt may keep the economy from collapsing, but it can not stimulate growth. The strongest growth in recent decades was under Clinton when the federal government ran a surplus. But the real cause of growth under Clinton was the sharp drop in computer prices and the widespread adoption of personal computers. Clinton followed the wise policy of just stepping aside and letting it happen. Trump appears to just be following the pattern set by previous Republican administrations with their “starve the beast” strategy. That is to create such a severe deficit problem that when democrats get into office they can not afford to pass new liberal legislation.The quick and dirty rule of thumb is that when Republican presidents leave office the deficit is larger — as a share of GDP — than when they took office. It is just the opposite with Democratic presidents, that leave a smaller deficit than they inherited. But it is funny that you never have the press question Republican presidents about their claim that tax cuts will be self-financing.
Pompeo called before House panel over Russian bounty claims - The House Foreign Affairs Committee has invited Secretary of State Mike Pompeo to appear before a hearing on how the Trump administration responded to reports that U.S. intelligence was aware of Russia offering bounties to Taliban-backed fighters to kill coalition forces in Afghanistan. The hearing is set to take place on Thursday. It is titled “Russian Bounties on U.S. Troops: Why Hasn’t the Administration Responded?”Pompeo is listed as “invited” to the hearing. The State Department and the House committee did not immediately respond to a request for comment on whether he had confirmed he would attend.The other witness for the hearing is expected to be Michael Morell, former acting director of the CIA in the Obama administration. President Trump and administration officials have sought to downplay reporting last month by The New York Times and The Washington Post that said the U.S. intelligence community had concluded months ago that an arm of the Russian military intelligence service had offered financial incentives to Taliban-backed fighters to kill U.S. and coalition forces in Afghanistan. The president has said he was not briefed on the Russian threats because the intelligence was not credible. Yet he’s received bipartisan pushbackfrom lawmakers demanding answers over the threats and the administration’s response. Pompeo has pushed back on the bounty claims, accusing journalists of spreading misinformation about such intelligence reports and defending the administration’s policy toward Russia. “I can assure you that whatever reporting it is that you’re referring to, that we responded in precisely the correct way,” he told reporters at a press briefing at the State Department last week. “The fact that the Russians are engaged in Afghanistan in a way that’s adverse to the United States is nothing new,” he said. “We took this seriously, we handled it appropriately.”
Key CIA-Backed Ally Indicted for Organ Trade Murder Scheme - When President Clinton dropped 23,000 bombs on what was left of Yugoslavia in 1999 and NATO invaded and occupied the Yugoslav province of Kosovo, U.S. officials presented the war to the American public as a “humanitarian intervention” to protect Kosovo’s majority ethnic Albanian population from genocide at the hands of Yugoslav president Slobodan Milosevic. That narrative has been unraveling piece by piece ever since In 2008 an international prosecutor, Carla Del Ponte, accused U.S.-backed Prime Minister Hashim Thaci of Kosovo of using the U.S. bombing campaign as cover to murder hundreds of people to sell their internal organs on the international transplant market. Del Ponte’s charges seemed almost too ghoulish to be true. But on June 24th, Thaci, now President of Kosovo, and nine other former leaders of the CIA-backed Kosovo Liberation Army (KLA,) were finally indicted for these 20-year-old crimes by a special war crimes court at The Hague. From 1996 on, the CIA and other Western intelligence agencies covertly worked with the Kosovo Liberation Army (KLA) to instigate and fuel violence and chaos in Kosovo. The CIA spurned mainstream Kosovar nationalist leaders in favor of gangsters and heroin smugglers like Thaci and his cronies, recruiting them as terrorists and death squads to assassinate Yugoslav police and anyone who opposed them, ethnic Serbs and Albanians alike. As it has done in country after country since the 1950s, the CIA unleashed a dirty civil war that Western politicians and media dutifully blamed on Yugoslav authorities. But by early 1998, even U.S. envoy Robert Gelbard called the KLA a “terrorist group” and the UN Security Council condemned “acts of terrorism” by the KLA and “all external support for terrorist activity in Kosovo, including finance, arms and training.” Once the war was over and Kosovo was successfully occupied by U.S. and NATO forces, CIA sources openly touted the agency’s role in manufacturing the civil war to set the stage for NATO intervention.>By September 1998, the UN reported that 230,000 civilians had fled the civil war, mostly across the border to Albania, and the UN Security Council passed resolution 1199, calling for a ceasefire, an international monitoring mission, the return of refugees and a political resolution. But the U.S. and NATO immediately started drawing up plans for a bombing campaign to “enforce” the UN resolution and Yugoslavia’s unilateral ceasefire. NATO killed thousands of civilians in Kosovo and the rest of Yugoslavia, as it bombed 19 hospitals, 20 health centers, 69 schools, 25,000 homes, power stations, a national TV station, the Chinese Embassy in Belgrade and other diplomatic missions. After it invaded Kosovo, the U.S. military set up the 955-acre Camp Bondsteel, one of its largest bases in Europe, as a secret CIA black site for illegal, unaccountable detention and torture. But for the people of Kosovo, the ordeal was not over when the bombing stopped. Far more people had fled the bombing than the so-called “ethnic cleansing” the CIA had provoked to set the stage for it. A reported 900,000 refugees, nearly half the population, returned to a shattered, occupied province, now ruled by gangsters and foreign overlords.
Justin Trudeau snubs Nafta meeting with Trump in Washington - The Canadian prime minister, Justin Trudeau, has declined an invitation to visit the White House this week to celebrate a new North American free trade deal, amid worsening coronavirus figures in the US and lingering tensions with Donald Trump. Mexico’s President Andrés Manuel López Obrador is due to meet Trump in Washington on Wednesday, and had urged Trudeau to attend the meeting. But in a statement on Monday, Trudeau’s office said: “We wish the United States and Mexico well at Wednesday’s meeting. While there were recent discussions about the possible participation of Canada, the prime minister will be in Ottawa this week for scheduled cabinet meetings and the long-planned sitting of parliament.” Last week, however, the prime minister had cited threats of new aluminum and steel tariffs as a potential factor in his decision. “We’re obviously concerned about the proposed issue of tariffs on aluminum and steel that the Americans have floated recently,” Trudeau told reporters. American officials cited national security concerns when they imposed tariffs on imported steel and aluminum from Canada and Mexico during negotiations for the North American trade pact last year, which came into effect on 1 July. The tariffs – long a source of frustration for Canadian negotiators – were seen as a repudiation of the historically close relationship between the two countries. Had he accepted the invitation, the visit would have marked the first meeting between the two leaders since fresh details of Trump’s dislike of Trudeauemerged in a new book by the former US national security adviser, John Bolton.In one instance, after Trudeau expressed frustration over US tariffs, Trump allegedly told aides to “attack” the prime minister.“Trump’s direction [to senior economic adviser Larry Kudlow] was clear: just go after Trudeau. Don’t knock the others. Trudeau’s a ‘behind-your-back guy,’” Bolton writes in The Room Where It Happened.Soon after, the White House aide Peter Navarro went on TV and said there was a “special place in hell” for Trudeau because of the way he treated Trump.In addition to a politically fractious relationship with the president, Trudeau had cited concerns over the “health situation and the coronavirus reality that is still hitting all three of our countries” as another factor in his decision. With the outbreak worsening in the US, more than 80% of Canadians say the shared border, which temporarily closed in March, should remain off limits for travellers, according to a new poll from Nanos Research/The Globe and Mail.
China Is Unlikely to Meet Purchase Targets for U.S. Energy - WSJ—Economic fallout from the coronavirus pandemic has cast doubt on whether China can meet its targets to buy U.S. goods under this year’s trade deal—with energy emerging as the biggest casualty. China has made strides toward its agricultural and manufacturing targets, but it remains far behind—maybe hopelessly far—an ambitious target for purchases of oil, natural gas, refined petroleum products like propane and butane, and coal, prompting concerns from the U.S. energy industry which is encouraging the U.S. Trade Representative to increase pressure on China to reach the goal. The targets in the deal implied China would purchase around $25 billion of U.S. energy in 2020 and even more in 2021. The latest data on U.S. exports for the month of May, released on Thursday, show China has so far this year purchased only $2 billion of that sum, near the year’s midway point. The collapse in energy demand and energy prices amid the coronavirus pandemic explains part of why China is so far behind. Nevertheless, China’s U.S. energy purchases present contrast to the strides it has made toward targets for the acquisition of agricultural and manufactured goods. “It’s peculiar and concerning,” said Anne Bradbury, chief executive of the American Exploration and Production Council, which represents oil and natural gas exploration and production companies. “The energy sector has been incredibly hard hit by the pandemic and now, more than ever, this agreement is important to the industry.” As of May, China had purchased $5.4 billion of agricultural goods, with a goal for the year of $33 billion in purchases. That puts China behind, but it could still meet its targets, according to calculations from Chad Bown, a senior fellow and trade data expert at the Peterson Institute for International Economics. Agricultural purchases are 39% of the pace needed to hit the phase one goal. But agricultural purchases are heavily seasonal in the fall when major crops like soybeans are harvested, giving China time to catch up if the deal remains intact. And China has purchased $19.5 billion of manufacturing goods, where the goal for the year is $84 billion. That puts manufactured goods at 56% of the pace needed to hit the goal, according to Mr. Bown’s calculations. But energy is far behind—running at only 18% of the pace needed to reach the goal. Catching up in the next 7 months would require massive purchases to begin immediately. To hit the goal, China would need to start purchasing more than $3 billion a month of energy, more every single month than it has been able to purchase in the past five months combined. A surge in domestic energy production over the past decade has made the U.S. energy industry an exporter after decades of foreign dependence, and China—with its 1.4 billion-person population and the world’s second-largest economy—represents the single largest potential market for exports like American crude oil and liquefied natural gas
Trump administration discloses details on $521.5 billion in virus aid - The Trump administration released details of almost 4.9 million loans to businesses — from sole proprietors to restaurant and hotel chains — under the federal government's largest coronavirus relief program so far, the $669 billion Paycheck Protection Program. The data, including the names of the program's biggest borrowers, were posted Monday morning on the website of the Small Business Administration, which ran the program with the Treasury Department. The disclosures, which come after members of Congress and others voiced concern about the level of transparency surrounding the PPP, don't provide full details for any loans. Names of companies that borrowed less than $150,000 — a group that comprises the vast majority of the program's borrowers — weren't made public. And larger borrowers' loans were disclosed only in broad ranges of values, such as $5 million to $10 million. The program, passed hurriedly by Congress in March, was designed to provide small firms with loans of as much as $10 million, based on a company's average monthly payroll before the pandemic. The loans can become grants if borrowers use the proceeds mostly to pay workers — with some spending allowed for rent and overhead costs. Almost from the beginning, the PPP was dogged by controversy as some publicly traded firms tapped it. Many returned PPP loans after their borrowing drew criticism. The program's supporters say it has kept tens of millions of workers employed during the pandemic and contributed to the surprising 2.5 million U.S. jobs added in May, with an additional 4.8 million jobs in June. The SBA and Treasury said borrowers reported that PPP loans supported 51.1 million jobs, or as much as 84% of all small business employees before the pandemic. Treasury Secretary Steven Mnuchin has said the program supported at least 72% of the small business payroll in all 50 states. Monday's release reflects loans totaling almost $521.5 billion, which were approved between the launch of the program on April 3 and June 30, when the SBA temporarily stopped accepting new applications. Congress voted last week to extend the program until Aug. 8, and it reopened Monday morning. Mnuchin had drawn opposition from transparency advocates for initially refusing to disclose names of companies that received PPP loans, saying the information is proprietary because loan amounts are based on borrowers' payrolls. The administration relented after demands from lawmakers and agreed to release certain information while withholding other details. For those loans below $150,000, the agencies are disclosing specific loan amounts along with industry codes, ZIP codes, number of jobs supported and other data — but no personally identifiable borrower information. Meanwhile, SBA and Treasury officials said they provided access to the full data to congressional committees that have demanded it. Personally identifiable information in the data shared with Congress will be treated as confidential, according to letters the SBA and Treasury sent to the committees last month. Critics want to see which larger firms and chains took PPP loans after reports that entities such as Shake Shack Inc. and the Los Angeles Lakers got loans ahead of mom and pop borrowers, prompting those two and others to return their loans. The public outcry spurred the Trump administration to promise to review all loans greater than $2 million and to tell companies that had access to other sources of capital that they likely didn't qualify for the bailout program.
Treasury Releases Partial List Of Small Businesses That Took PPP Loans - A list of all companies which took PPP loans of $150,000 and above was disclosed on Monday by the Treasury Department and the Small Business Administration, after Democratic lawmakers demanded greater transparency surrounding the Paycheck Protection Program, according to CNBC. The disclosure comes after Treasury Secretary Steven Mnuchin initially suggested in June that PPP borrowers might remain anonymous. Those loans represent nearly three-fourths of total loan dollars approved, but a far smaller proportion of the number of actual loans. About 87% of the loans were for less than $150,000, according to the SBA. The SBA released other details about the program Monday, including:
- It has approved 4.9 million loans for a total of more than $521 billion.
- The program has about $132 billion in funding left over
- The average loan is $107,000.
- Companies reported that the funding supported more than 51 million jobs. But the businesses reported the total when they applied for loans, and it is unclear how many of those employees stayed on payroll. -CNBC
Companies participating in the program who maintain most of their payroll throughout the duration of the loan may convert the funds to a grant. In June, Congress passed a bill which lower the bar for converting the loans - reducing the amount a company must spend on payroll, while giving recipients a longer period of time to use the funds. On Saturday, President Trump signed a temporary extension of PPP into law, moving the application deadline from Aug. 8 to June 30 - a move which both chambers of Congress voted to approve last week.
Governors' companies among recipients of virus relief loans - — Governors who ordered shutdowns as their states responded to the coronavirus pandemic were among millions of beneficiaries of the loan program created to help small businesses weather COVID-19's effect on the economy, data released Monday show. The governors of at least eight states have ties to companies that received loans through the Small Business Administration's Paycheck Protection Program. Both Republicans and Democrats, their associated companies' loans ranged from $150,000 to more than $11 million. It is legal for businesses owned by elected officials to apply for and receive the loans, which are forgivable if used to preserve jobs. A minor league baseball team part-owned by Ohio Gov. Mike DeWine received a loan, as did an investment company led by New Hampshire Gov. Chris Sununu's family. A communications company in which New Jersey Gov. Phil Murphy has a stake, and a winery and hospitality company founded by California Gov. Gavin Newsom also were beneficiaries. At least six of billionaire West Virginia Gov. Jim Justice's family businesses qualified for loans. Virginia Gov. Ralph Northam's former medical practice, in which he's still invested, a commercial real estate brokerage firm started by Maryland Gov. Larry Hogan, and an air conditioning and supply company partially owned by Mississippi Gov. Tate Reeves also received loans. Their businesses were able to successfully navigate a system that many Main Street businesses had trouble accessing before the application deadline was extended to early next month. The aid package is the centerpiece of the federal government's plan to rescue an economy devastated by shutdowns and uncertainty. The data released by the Treasury Department presents the fullest accounting of the program thus far.
Trump-connected lobbyists reap windfall in federal virus aid - — Forty lobbyists with ties to President Donald Trump helped clients secure more than $10 billion in federal coronavirus aid, among them five former administration officials whose work potentially violates Trump's own ethics policy, according to a report. The lobbyists identified Monday by the watchdog group Public Citizen either worked in the Trump executive branch, served on his campaign, were part of the committee that raised money for inaugural festivities or were part of his presidential transition. Many are donors to Trump's campaigns, and some are prolific fundraisers for his reelection. They include Brian Ballard, who served on the transition, is the finance chair for the Republican National Committee and has bundled more than $1 million for Trump's fundraising committees. He was hired in March by Laundrylux, a supplier of commercial laundry machines, after the Department of Homeland Security issued guidance that didn't include laundromats as essential businesses that could stay open during the lockdown. A week later, the administration issued new guidance adding laundromats to the list. Dave Urban, a Trump adviser and confidant, has collected more than $2.3 million in lobbying fees this year. The firm he leads, American Continental Group, represents 15 companies, including Walgreens and the parent company of the Ultimate Fighting Championship, on coronavirus issues. Trump pledged to clamp down on Washington's influence peddling with a "drain the swamp" campaign mantra. But during his administration, the lobbying industry has flourished, a trend that intensified once Congress passed more than $3.6 trillion in coronavirus stimulus. While the money is intended as a lifeline to a nation whose economy has been upended by the pandemic, it also jump-started a familiar lobbying bonanza. "The swamp is alive and well in Washington, D.C.," said Mike Tanglis, one of the report's authors. "These (lobbying) booms that these people are having, you can really attribute them to their connection to Trump."
CNBC Talking Head And Tesla Mega-Bull, Ross Gerber Received PPP Loan Days After He Called Program "Another Trump Scam" - As we pointed out on Twitter earlier today, Tesla's favorite uber-bull and useful FinTwit punching bag Ross Gerber's firm, the Santa Monica-based Gerber Kawasaki (not to be confused with a motorbike dealer, although perhaps it would hope to be) Wealth Management, was approved for a PPP loan on May 3, 2020. The disclosure comes as part of a broader disclosure of firms who took PPP loans and confirms that Gerber's firm took a loan ranging from $350,000 to $1 million through Wells Fargo Bank. While PPP loans were given out in exchange for "retaining jobs", in the case of Gerber Kawasaki that particular number is unknown as the excel cell is empty.The irony, of course, comes from the fact that on April 27, 2020, just 6 short days before his firm's loan was approved, Gerber virtue signalled to the #resistance by tweeting that "this whole PPP thing looks like a scam. Another big Trump scam"….. A scam which Ross Gerber had applied for weeks prior and was eagerly waiting approval.Then, during the same thread about "another Trump scam", when Gerber was called out for having Trump derangement syndrome, he doubled down and said "you can correlate PPP loans and Trump supporters" before suggesting "they should publish the list of companies and amounts."
Small Business Loans Helped the Well-Heeled and Connected, Too – WSJ —Congress designed the Paycheck Protection Program to help small businesses weather fallout from the coronavirus pandemic, but the program’s $521 billion in loans also went to well-heeled and politically connected firms across the economy, including law offices, charities, restaurant chains and wealth managers. The Trump administration released the names of borrowers for the first time Monday, following pressure by Congress and others to disclose who received the taxpayer-funded loans. On the list: Boies Schiller Flexner LLP, the law firm headed by antitrust litigator David Boies; Newsmax Media Inc., the media company run by Trump donor Christopher Ruddy; and an Indianapolis service provider to charities part-owned by Education Secretary Betsy DeVos. P.F. Chang’s China Bistro Inc., a restaurant operator with more than 200 U.S. locations, got a loan. So did prominent real-estate investors and wealth managers. Nonprofits receiving funds included the Girl Scouts of the United States of America, the Sidwell Friends School in Washington, D.C., whose alumni include children of former presidents, and the foundation that runs the Guggenheim art museum in New York. “This critical financial support was paramount to the health of our organization during a time when other revenue streams were disrupted,” the Girl Scouts group said. The 660,000 companies named accounted for only the largest loans—those worth $150,000 or more. The loans can be forgiven if used largely to retain employees. The loans disclosed Monday represented about 15% of more than 4 million loan participants in the program but about $3 of every $4 distributed. While specific loan amounts weren’t disclosed, many of the best-known recipients took out loans of between $5 million and $10 million, the maximum allowed. All the borrowers may have the loans paid back by taxpayers, as long as they spend at least 60% of the funds on payroll and meet other requirements. The disclosure appeared likely to add to a continuing debate about whether the program, which distributed money rapidly, helped well-to-do businesses rather than those most in need. Some in Congress want to tighten requirements for receiving future pandemic aid. “Businesses shouldn’t have been taking loans if they didn’t need the money,” said Sen. Rick Scott (R., Fla.).
Investment Firms and Real-Estate Developers Took Stimulus Loans Too – WSJ - The former U.S. operations of a sanctioned Russian bank, a hedge fund partly owned by one of the biggest private-equity firms in the world and a real-estate developer behind two of Manhattan’s most expensive condominium towers were among the financial firms that benefited from a government program designed to help small businesses weather the coronavirus pandemic. The entities all received loans under the federal government’s Paycheck Protection Program. Since March, the program has extended about $521 billion out of more than $650 billion in authorized loans, but until now, the public hasn’t gotten a detailed look at who was benefitting from the cash. That changed on Monday, when the Small Business Administration published the names of businesses that accounted for about three-fourths of the loan dollars distributed. While small family-owned businesses and nonprofits benefited from the aid, so did many Wall Street firms that potentially have other sources of cash and didn’t suffer like restaurants and retailers. “The PPP program was designed for small businesses that had to shut down and lose revenues because of the crisis,” said Marcus Stanley, policy director for Americans for Financial Reform, which advocates for tighter financial regulations. “The markets never shut down at any point.” Loan recipients say they were justified to seek the aid and did so within the spirit and guidelines of the program. Xtellus Capital Partners, the former U.S. operations of Russian bank VTB Capital, said the pandemic hurt trading volumes, which made its effort to diversify after its 2018 spinoff riskier. VTB has been under U.S. sanctions for several years. Xtellus got a loan between $150,000 to $350,000, according to the SBA, which only disclosed loan amount ranges. More than a dozen floor brokerages at the New York Stock Exchange got loans of at least $150,000, Monday’s disclosures showed. NYSE floor brokers, who often work for smaller firms of a few dozen employees, were unable to work for about two months starting in March when the exchange shut down floor trading to prevent the spread of the virus. But others who sought the loans have subsequently had second thoughts. One such firm is BlackGold Capital Management LP, a Houston credit fund that received a $150,000 to $350,000 loan, according to the SBA. BlackGold is partly owned by private-equity giant KKR & Co. KKR co-founder George Roberts initiated the private-equity firm’s minority investment in BlackGold, which invests in natural resources and energy. A BlackGold spokesman said the firm applied for a loan at the recommendation of its banker and is in the process of returning the funds.
Private-Equity Firms Borrow From PPP, Despite Later Rule Barring Them – WSJ = A number of private-equity firms received millions of dollars in loans from a taxpayer-backed program despite being told they weren’t allowed to access the money, an analysis of U.S. Small Business Administration data shows.Hedge funds and private-equity funds were among those that tapped the Paycheck Protection Program, created to help small businesses get through the coronavirus pandemic. The SBA in April ruled that these investment firms weren’t eligible for the aid as they are “engaged in investment or speculation.” The...
Here Are The Thousands Of Investment Advisors And Portfolio Managers Who Received Government Bailouts - Today the Treasury and the Small Business Administration released the full list of companies that received Paycheck Protection Program loans - which become grants and are fully forgivable if used to pay employee salaries and/or rent - for an amount greater than $150,000. The complete data, which includes a total of 661,219 recipients, can be accessed here. As a reminder, the PPP was designed to help small businesses weather fallout from the coronavirus pandemic. It did so by funding small and medium companies with 500 employees or less; the loan/grant was meant to cover up to two and a half months of worker compensation (capped at an annualized $100,000) or in other words, the Treasury would provide at most $8,333 per employee for 2.5 months. That, at least, was the theory - in practice, things ended up being different. To be sure, the PPP program helped a broad swath of organizations, including small restaurants, construction firms, retail locations and non-profits. Many of the conventional recipients of PPP loans were restaurant chains were struggling before the pandemic and were hit particularly hard by the health crisis, since they focus on dine-in service instead of to-go sales. Among them was P.F. Chang’s China Bistro Inc., a restaurant operator with more than 200 U.S. locations. Other restaurant chains included Mexican chain Rubio’s Restaurants Inc. and California-based Black Angus Steakhouses LLC.That said, there was some "peculiar" recipients: among the recipients were Boies Schiller, the law firm headed by antitrust litigator David Boies, the Girl Scouts of the United States of America, Illinois-based megachurch Willow Creek Community Church and the prominent New York synagogue Temple Emanu-El. Yet while many businesses legitimately needed the funds to continue operations as without the PPP emergency cash infusion thousands of businesses would have shut down and been forced to layoff millions of workers, when it comes to a certain subset of recipients, questions have emerged. And yet, a casual search through the list of PPP recipients reveals that no less than 1,436 Investment Advisors applied for, and received PPP assistance, in many cases for well over $1 million. One of the most prominent firms, perhaps due to its daily appearances on CNBC, is Ritholz Wealth Management which as we noted previously repaid its PPP loan which according to the SBA was in the $350K-$1MM range. Ritholtz Wealth CEO Josh Bronwn even wrote a blog post explaining what he did in "Every cent, plus interest" in which he tried to justify why a successful RIA would need up to $1 million in government bailout loans.
Carnegie Hall got rescue aid, but not your favorite food cart - Few places illustrate the disparities in coronavirus relief assistance better than New York City. Wall Street firms, top art galleries, and the private-member club Soho House got millions of dollars in federal aid earmarked for small businesses. Evelia Coyotzi, who operates a food cart beneath the tracks of the No. 7 subway line that connects Manhattan to the outskirts of Queens, got nothing. Coyotzi — who sells tamales, the popular Mexican dish wrapped in corn husks — didn't apply for the federal Paycheck Protection Program because she had been rejected by her bank for a loan in the past. Her three employees weren't on payroll anyway, she said. "I didn't think I had a chance," Coyotzi, who is from Mexico, said through an interpreter from the Business Outreach Center Network Inc., a group that's helping her apply for a state loan instead. "I thought my business was too small." Coyotzi, one of the about 83,000 foreign-born entrepreneurs who own half of all small businesses in New York City, has so far managed to get through the downturn by using savings and stalling payments for the kitchen she uses to cook her tamales. The coronavirus hit Coyotzi more than financially. One of her former employees died of the disease. She closed her cart for two months, fearing her workers would get ill by being exposed on the streets of the Corona neighborhood, which was one of New York City's virus hot spots. Data released this week showed that big-name law firms, Carnegie Hall and companies connected to President Trump and other politicians were among the recipients of 4.9 million PPP loans worth $521 billion as of June 30. But the forgivable loans, distributed by approved lenders and based on a company's payroll, were out of reach for the myriad cash-based enterprises or underfunded businesses that are key to economic growth in the country. This could change the very fabric of New York City, with businesses that were part of people's everyday life disappearing.
Televangelists, megachurches tied to Trump approved for millions in pandemic aid - (Reuters) - Megachurches and other religious organizations with ties to vocal supporters of U.S. President Donald Trump were approved for millions of dollars in forgivable loans from a taxpayer-funded pandemic aid bailout, according to long-awaited government data released this week. Among those approved for loans through the massive government relief program were a Dallas megachurch whose pastor has been an outspoken ally of the president; a Florida church tied to Trump spiritual adviser and “prosperity gospel” leader Paula White; and a Christian-focused nonprofit where Jay Sekulow, the lawyer who defended the president during his impeachment, is chief counsel. Evangelical Christians played a key role in Trump’s victory in the 2016 presidential election and have remained a largely unwavering contingent of his base. Vice President Mike Pence spoke at a rally last month at the First Baptist Church of Dallas, whose pastor, Robert Jeffress, has been on Trump’s evangelical advisory board. The church was approved for a $2-5 million loan, the data showed. Launched on April 3, the Paycheck Protection Program (PPP) allows small businesses, nonprofits and individuals hurt by the pandemic to apply for forgivable government-backed loans. Some say allowing religious institutions to qualify for loan forgiveness highlights a breakdown in the American tradition of a strict separation of church and state. “The notion of separation of church and state is dead, and the PPP loan program is the evidence of that,” said Micah Schwartzman, a professor at the University of Virginia School of Law. “The money is going to fund core activities of many organizations, including religious organizations. That’s something we’ve not seen before.”
Over 500,000 businesses got PPP loans but are listed as retaining zero jobs, Treasury Department data show - The Paycheck Protection Program was designed to help small business weather the coronavirus pandemic while keeping their workers employed.But government data suggests that hundreds of thousands of businesses across the country got access to funds without indicating how many jobs would be saved.On Monday, the Trump Administration released data on the small businesses nationwide that received loans through the $669-billion Paycheck Protection Program. The loans distributed through the program were partially or fully forgivable depending on how much of the proceeds were used to keep employees on payroll.The Small Business Administration has said the program has helped support about 51 million jobs. Yet, wrinkles in the data point to issues the federal government will face when keeping businesses accountable once it comes time to verify whether the loans they received will be forgiven.A MarketWatch analysis of the government data found that just over 554,000 small businesses who got PPP funds reported retaining zero jobs. Nearly 50,000 of these business had received loans larger than $150,000, and more than 300 have received loans between $5 million and $10 million. Thousands more companies did not report how many jobs their loans saved. “Government data is horrific,” said Veronique de Rugy, a senior research fellow at the Mercatus Center at George Mason University, a nonprofit think tank. “This is this common pattern of these government reports.”Businesses were asked to provide information on the number of jobs that would be saved on their applications for PPP loans, a Treasury Department spokesman said, but they were not necessarily required to provide it. To receive loan forgiveness, the companies will be asked to supply information regarding how people they employ and what those workers are paid.Some business said the data released regarding the number of employees retained was incorrect. Meridian Behavioral Healthcare, a mental health care provider in Gainesville, Fla., received a loan between $5 million and $10 million through the program, and according to the government data, it retained no employees. The company told MarketWatch that in fact it has retained all of its employees and used PPP funds to do so.
Over 500,000 businesses got PPP loans but are listed as retaining zero jobs, Treasury Department data show - The Paycheck Protection Program was designed to help small business weather the coronavirus pandemic while keeping their workers employed.But government data suggests that hundreds of thousands of businesses across the country got access to funds without indicating how many jobs would be saved.On Monday, the Trump Administration released data on the small businesses nationwide that received loans through the $669-billion Paycheck Protection Program. The loans distributed through the program were partially or fully forgivable depending on how much of the proceeds were used to keep employees on payroll.The Small Business Administration has said the program has helped support about 51 million jobs. Yet, wrinkles in the data point to issues the federal government will face when keeping businesses accountable once it comes time to verify whether the loans they received will be forgiven. A MarketWatch analysis of the government data found that just over 554,000 small businesses who got PPP funds reported retaining zero jobs. Nearly 50,000 of these business had received loans larger than $150,000, and more than 300 have received loans between $5 million and $10 million.
McConnell predicts Congress will need fifth coronavirus bill - Senate Majority Leader Mitch McConnell (R-Ky.) said on Monday that he believes there will be a fifth coronavirus relief bill, as the country sees an uptick in the number of cases. "We will be taking a look at — in the Senate in a couple of weeks — another package based on the conditions that we confront today," McConnell said in Louisville, Ky. McConnell added on the potential for a fifth coronavirus bill that "I believe there will be one." McConnell previously predicted in early April that there would be another coronavirus bill, but, since then, Republicans hit pause on talk of another relief package, saying that they wanted to see how the nearly $3 trillion already appropriated by Congress was being spent. Republicans are expected to make a final decision on a fifth coronavirus bill once they return to Washington from a two-week break on July 20. But McConnell said on Monday that he was "likely" to introduce a bill in a few weeks.
Goodbye extra $600. Unemployed workers should not get benefits higher than their old wages in next stimulus bill, Mnuchin says -Treasury Secretary Steven Mnuchin said Thursday that the Trump administration wants to cap enhanced unemployment benefits in the next coronavirus package to make sure workers do not get benefits amounting to more than their former wages.Under the coronavirus bill enacted in March, workers, to encourage compliance with stay-at-home orders, received as much as $600 per week in addition to their regular unemployment benefits, which critics say encouraged the jobless to not look for work.“You can assume it will be no more than 100%, so, yes, we want to incent people to go back to work,” Mnuchin told the cable channel CNBC.The House has passed legislation that would extend the $600 in extra weekly payments until December.The impact of the so-called enhanced unemployment benefits has been hotly debated among economists recently. Supporters say the add-on has been key in keeping families out of poverty as the jobless rate shot up, noting it typically only goes beyond offsetting a previously earned wage when that wage was very low. Critics claim companies are experiencing difficulty in recruitment, despite a national unemployment rate above 11%. The add-on expires in late July.“Enhanced unemployment is intended for people who don’t have jobs, particularly in industries that are harder to rebound, so we will not be doing it in the same way,” Mnuchin said.Mnuchin said he that and Mark Meadows, the White House chief of staff, talked with Senate Majority Leader Mitch McConnell on Wednesday and that their goal was to pass the next coronavirus aid bill between July 20 and the end of the month.Mnuchin said the administration wants to see another round of direct payment checks in that next package. “We do support another round of economic impact payments,” Mnuchin said, though he added that the level of and criteria for the new payments needed to be determined.
White House defends Trump's claim that 99 percent of COVID-19 cases are 'harmless' with chart showing 5 percent are fatal - White House press secretary Kayleigh McEnany came to her press briefing on Monday prepared to defend President Trump’s claim over the weekend that “99 percent” of U.S. coronavirus cases are “totally harmless” with two charts illustrating the country’s COVID-19 death rate.But McEnany’s slides showed a case fatality rate — the percentage of confirmed cases that result in death — of 4.6 percent, not the 1 percent implied by Trump.During a July 4 “Salute to America” speech on the South Lawn of the White House, Trump boasted that the administration has conducted more than 40 million coronavirus tests.“But by so doing, we show cases, 99 percent of which are totally harmless,” Trump added.Asked about the remark during Monday’s briefing, McEnany said the president was merely pointing to “a factual statement, one that is rooted in science,” before calling for the charts to be displayed.The first showed the U.S. case fatality rate, or CFR, dipping to 4.6 percent after topping 6 percent in May; the second compared it to those of European countries — like France, Italy and the United Kingdom — where the rate is upwards of 10 percent. Both charts cited the European CDC as their source, and both showed the U.S. death rate from the coronavirus more than four times the rate Trump’s remark suggested. “What that speaks to is the great work of this administration,” McEnany said. “And that’s what the president was pointing out.”
South Dakota governor, exposed to virus, joined Trump on jet - — Shortly after fireworks above Mount Rushmore disappeared into the night sky on Friday, South Dakota Gov. Kristi Noem accompanied President Donald Trump aboard Air Force One despite having had close contact with Trump's son's girlfriend, who had tested positive for the coronavirus. Trump has been in a position all along to encounter a virus that spreads from people who don't feel sick, such as Noem, who had interacted closely at a campaign fundraiser with Donald Trump Jr.'s girlfriend, Kimberly Guilfoyle, who turned out to be infected. Noem didn't wear a mask on the plane and chatted with the president as the flight returned to Washington, D.C., according to her spokesperson, Maggie Seidel. Noem had tested negative for COVID-19 shortly before welcoming Trump to South Dakota on Friday, a day after she had interacted with Guilfoyle. One photo on social media showed Noem and Guilfoyle, who is also a Trump campaign staff member, hugging. The Trump campaign announced that Guilfoyle had tested positive on Friday. Guilfoyle's infection prompted some Republicans, such as Rep. Greg Gianforte of Montana, to take precautions against the spread of the coronavirus. He suspended in-person campaigning for his gubernatorial bid after his wife and his running mate both attended a fundraiser with Guilfoyle earlier in the week. Noem doesn't plan anything similar or to get tested again for the virus, Seidel said. She cast Noem's decision to fly on Air Force One as a demonstration of how to live with the virus. Seidel pointed to comments from the World Health Organization that the spread of the virus is "rare" from asymptomatic people. But that runs counter to guidance from public health experts, including the Centers for Disease Control and Prevention, that advises people to wear masks when interacting with people outside their household.
America Faces a Critical PPE Shortage, Again -- One of the initial reasons social distancing guidelines were put in place was to allow the healthcare system to adapt to a surge in patients since there was a critical shortage of beds, ventilators and personal protective equipment. In fact, masks that were designed for single-use were reused for an entire week in some hospitals. Now, five months into the pandemic, health care workers are raising the same concern. They are facing a shortage of masks, gowns, face shields and gloves, as The Washington Post reported."We're five months into this and there are still shortages of gowns, hair covers, shoe covers, masks, N95 masks," said Deborah Burger, president of National Nurses United, who cited results from a survey of the union's members, as The Associated Press reported. "They're being doled out, and we're still being told to reuse them." In a survey of 23,000 registered nurses, National Nurses United found 85 percent were asked to reuse masks designed for single use, according to The Washington Post. The new shortage is not just affecting urban hospitals like it did in March. The rising demand for protective gear is now plaguing a broad range of health care facilities across the country, from urgent cares to doctors' offices to nursing homes. Several major medical associations said this was a preventable problem that would have required swift and aggressive action from the federal government in the early days of the pandemic, according to The New York Times. If the government had aggressively procured and distributed critical supplies, this shortage could have been avoided. "A lot people thought once the alarm was sounded back in March surely the federal government would fix this, but that hasn't happened," said Burger to The Washington Post She, like many health-care workers, blamed the Trump administration for the lack of equipment. She pointed out that the administration has insisted the responsibility falls to state and local officials, with the federal government playing only a supporting role. Neurologists, cardiologists and cancer specialists around the country have been unable to reopen their offices in recent weeks, leaving many patients without care, according to a letter from American Medical Association to the the Federal Emergency Management Agency, Vice President Mike Pence and members of Congress.
Trump says he'll sign order with 'road to citizenship' for DACA recipients -President Trump said Friday he intends to sign an executive order on immigration within the next month that he said will include a "road to citizenship" for recipients of the Deferred Action for Childhood Arrivals (DACA) program.In an interview with Telemundo anchor José Díaz-Balart, Trump blamed Democrats from walking away from a deal on DACA and said the Supreme Court's decision last month blocking his administration's plan to end the Obama-era program gave him "tremendous power.""The deal was done. DACA is going to be just fine. We’re putting it in. It's going to be just fine. And I am going to be, over the next few weeks, signing an immigration bill that a lot of people don't know about. You have breaking news, but I'm signing a big immigration bill," Trump told Díaz-Balart."Is that an executive order?" the anchor asked."I'm going to do a big executive order. I have the power to do it as president and I'm going to make DACA a part of it," Trump responded. "But, we put it in, and we'll probably going to then be taking it out. We're working out the legal complexities right now, but I'm going to be signing a very major immigration bill as an executive order, which Supreme Court now, because of the DACA decision, has given me the power to do that."Asked whether the executive order would provide temporary relief for DACA recipients, Trump said its scope would be much wider."No, what I'm going to do is that they're going to part of a much bigger bill on immigration. It's going to be a very big bill, a very good bill, and merit-based bill and it will include DACA, and I think people are going to be very happy," said Trump."But one of the aspects of the bill is going to be DACA. We're going to have a road to citizenship," he added.The comments sparked immediate outrage among conservatives and allies of the administration who have been expecting Trump to rescind DACA following the Supreme Court ruling.Sen. Ted Cruz (R-Texas) warned on Twitter that it would be "a HUGE mistake" if Trump were to create a path citizenship via executive order.The White House attempted to clarify Trump's remarks a short time after the interview aired, saying any immigration deal would not include amnesty.“As the President announced today, he is working on an executive order to establish a merit-based immigration system to further protect U.S. workers," deputy press secretary Judd Deere said in a statement. "Furthermore, the President has long said he is willing to work with Congress on a negotiated legislative solution to DACA, one that could include citizenship, along with strong border security and permanent merit-based reforms. This does not include amnesty." It's unclear whether the president can unilaterally grant a category of undocumented immigrants — in this case DACA beneficiaries — permanent legal status with a road to citizenship.
Trump's planned order on 'dreamers' will not include amnesty, White House says – Reuters - U.S. President Donald Trump’s planned executive order on immigration will not include amnesty for migrants who are in the United States illegally but arrived in the country as children, a White House spokesman said on Friday. “This does not include amnesty,” White House spokesman Judd Deere said in a statement, after Trump said in a television interview his planned order would include a road to citizenship for such immigrants, known as “Dreamers.” In the interview with Spanish-language TV network Telemundo, Trump said his executive order would involve Deferred Action for Childhood Arrivals (DACA), the program that protects hundreds of thousands of such immigrants from deportation. “I’m going to do a big executive order. ... And I’m going to make DACA a part of it,” Trump said. “We’re going to have a road to citizenship.” The U.S. Supreme Court last month dealt a major setback to Trump’s hardline immigration policies, blocking his bid to end DACA, which was created in 2012 by his Democratic predecessor Barack Obama. The ruling did not prevent Trump from trying again to end the program. But his administration may find it difficult to rescind it - and win any ensuing legal battle - before the Nov. 3 election in which he is seeking a second term in office.
Senate Bill Would Ban Federal Use Of Facial Recognition Systems - A bill in the Senate would issue a presumptive ban on the use of any facial recognition systems by any federal agencies. That means unless a government agency or bureau is specifically authorized by Congress, they cannot deploy real time facial recognition surveillance or use it to identify people in photos and video later. The bill would also keep certain federal funds from city and state law enforcement who use biometric surveillance, like facial recognition. What this means: Facial recognition technology is too easy to abuse. The government is supposed to go through due process before investigating citizens. Even just learning the identity of someone is supposed to require reasonable suspicion that a crime has been committed. But facial recognition is a pre-emptive “search” revealing the identity of anyone on camera. And in addition to the due process concerns, facial recognition is a good way to quell dissent and protest from anyone afraid of being identified and targeted by the government for speaking out.
Supreme Court rules Electoral College members must follow state vote in presidential elections - The Supreme Court on Monday in a unanimous 9-0 decision in Chiafalo v. Washington ruled that electors in presidential elections must cast their votes in the Electoral College for the candidate who won the popular vote in their state. This case arose in the aftermath of the 2016 election when a handful of Democratic members of the Electoral College attempted to deprive Donald Trump of the 270 electoral votes needed to win the presidency. Although Trump lost the popular vote by three million votes, he carried 30 states with a combined total of 306 electoral votes. A handful of Democratic electors, however, announced that they would vote for a “moderate” Republican rather than Hillary Clinton in the hopes that they could convince enough Republican electors to cast similar votes, thereby reducing Trump’s total below the 270 needed for election. If that occurred, the Constitution would then require that the presidential winner would have to be decided by the House of Representatives, controlled at the time by Republicans, which could have elected a Republican other than Trump. More than 30 states have laws penalizing or forbidding “faithless electors,” those who run on a slate chosen by the Democratic or Republican parties but then choose to vote for someone other than that party’s candidate. The case decided by the 9-0 vote involved the state of Washington, which fined its “faithless electors,” while a separate order without an opinion upheld the Colorado law, under which one of that state’s electors was removed and replaced by another Democrat who voted for Clinton. In unanimously ruling that all electors must vote for the presidential candidate who won their state’s popular vote, the Supreme Court is attempting to avert a potential constitutional crisis in the upcoming election, when the contest between President Trump and his presumptive Democratic challenger, former Vice President Joe Biden, could well come down to a handful of electoral votes.
Supreme Court rules that large swath of Oklahoma belongs to Indian reservation - The Supreme Court ruled on Thursday that a large swath of Oklahoma belongs to Native American tribes in a huge win for a reservation that challenged the state's authority to prosecute crimes on its land. In the 5-4 decision, the majority ruled that the disputed area covering roughly half of the state and most of the city of Tulsa belongs to the Muscogee (Creek) Nation. "Today we are asked whether the land these treaties promised remains an Indian reservation for purposes of federal criminal law," Justice Neil Gorsuch, a Trump appointee, wrote for the majority. "Because Congress has not said otherwise, we hold the government to its word." The ruling could upend the state's authority over much of the land and restrict it from prosecuting tribal members who are accused of crimes on the reservation. Oklahoma may no longer be able to tax those who reside on the Creek's land. Gorsuch was joined in the majority by the four justices on the liberal wing of the court: Stephen Breyer, Ruth Bader Ginsburg, Elena Kagan and Sonia Sotomayor. Chief Justice John Roberts wrote a dissent, which was joined by Justices Samuel Alito, Brett Kavanaugh and Clarence Thomas. "The decision today creates significant uncertainty for the State’s continuing authority over any area that touches Indian affairs, ranging from zoning and taxation to family and environmental law," Roberts wrote in his dissent. "None of this is warranted." The Creek tribe released a statement Thursday hailing the decision. “The Supreme Court today kept the United States’ sacred promise to the Muscogee (Creek) Nation of a protected reservation," the statement reads. "Today’s decision will allow the Nation to honor our ancestors by maintaining our established sovereignty and territorial boundaries. We will continue to work with federal and state law enforcement agencies to ensure that public safety will be maintained throughout the territorial boundaries of the Muscogee (Creek) Nation.” The case concerns Jimcy McGirt, a convicted rapist serving a thousand years on top of a life sentence in prison, who challenged his conviction on the grounds that the crime took place on Creek territory. McGirt may now face a new trial in federal court. Oklahoma, which was backed in the case by the Trump administration, argued that the territory disputed with the Creek had never been a reservation, and even if it had, it was dissolved long ago. But Gorsuch wrote for the majority that it takes an act of Congress to dissolve a reservation and there's no evidence that it did that with the Creek's land. "Mustering the broad social consensus required to pass new legislation is a deliberately hard business under our Constitution. Faced with this daunting task, Congress sometimes might wish an inconvenient reservation would simply disappear," Gorsuch wrote. "But wishes don’t make for laws, and saving the political branches the embarrassment of disestablishing a reservation is not one of our constitutionally assigned prerogatives."
In win for Trump, Supreme Court allows plan for religious limits to Obamacare contraceptive coverage — The U.S. Supreme Court on Wednesday cleared the way for theTrump administration to give the nation's employers more leeway in refusing to provide free birth control for their workers under the Affordable Care Act. The ruling is a victory for the administration's plan to greatly expand the kinds of employers who can cite religious or moral objections in declining to includecontraceptives in their health care plans. Up to 126,000 women nationwide would lose birth control coverage under President Donald Trump's plan, the government estimated. Planned Parenthood said nearly nine in 10 women seek contraceptive care of some kind during their lifetimes. The Affordable Care Act, better known as Obamacare, gives the government authority to create the religious and moral objections, said Justice Clarence Thomas for the court's 7-2 majority. The Department of Health and Human Services "has virtually unbridled discretion to decide what counts as preventive care and screenings," and that same authority "leaves its discretion equally unchecked in other areas, including the ability to identify and create exemptions from its own guidelines," he said. In dissent, Justices Ruth Bader Ginsburg and Sonia Sotomayor said the court in the past has struck a balance in religious freedom cases, so that the beliefs of some do not overwhelm the rights of others. "Today for the first time, the court casts totally aside countervailing rights and interests in its zeal to secure religious rights to the nth degree" and "leaves women workers to fend for themselves" in seeking contraceptive services, they said. Women’s groups condemned the ruling. The National Women’s Law Center said more than 61 million women get birth control coverage through Obamacare. “The Supreme Court’s decision will leave their ability to receive this critical coverage at the whim of their employers and universities," the group said. "This decision will disproportionately harm low-wage workers, people of color, LGBTQ people, and others who already face barriers to care.”
Supreme Court Rejects Trump Bid to Block New York Subpoena Seeking Financial, Tax Records – WSJ —The Supreme Court rejected President Trump’s efforts to block a New York prosecutor from enforcing a subpoena for his financial records, but issued a mixed decision in a related case involving subpoenas from Congress. In the congressional case, the high court said the lower courts were too quick to side with three House committees seeking records from the president’s accountants and bankers. The decisions—both on 7-2 votes on Thursday—send the cases back to lower courts, where Mr. Trump can raise additional objections to the subpoenas. In the New York case, the court rejected Mr. Trump’s overarching claim that as president, he enjoys absolute immunity from disclosing information sought by prosecutors. But the court likewise rejected House arguments regarding the scope of its subpoena power, finding that it failed to recognize the prerogatives of the executive branch. The Supreme Court laid out its own criteria for considering congressional subpoenas involving the president—and sent the case back to lower courts for further review. That puts off, likely until after the November election, a final resolution of Congress’s efforts to explore Mr. Trump’s finances. Chief Justice John Roberts wrote opinions in both cases. The court’s liberal members and both of Mr. Trump’s appointees were in the majority. Conservative justices Clarence Thomas and Samuel Alito dissented. Shortly after the ruling on the New York case was announced, Mr. Trump criticized it on Twitter, lamenting that he must continue fighting the matter in a lower court. “The Supreme Court sends case back to Lower Court, arguments to continue. This is all a political prosecution,” he wrote on Twitter on Thursday morning. “I won the Mueller Witch Hunt, and others, and now I have to keep fighting in a politically corrupt New York. Not fair to this Presidency or Administration!” The president added in a separate tweet that he felt he was not being treated fairly. “Courts in the past have given “broad deference”. BUT NOT ME!,” he wrote. A lawyer for Mr. Trump didn’t immediately respond to a request for comment on the rulings.
Supreme Court grants N.Y. access to Trump taxes, blocks House - The U.S. Supreme Court cleared a New York grand jury to get President Donald Trump's financial records while blocking for now House subpoenas that might have led to their public release before the election. The pair of 7-2 rulings likely spare Trump from the scrutiny that would have accompanied disclosure of tax returns and other information he has long refused to release. At the same time, they leave room for lawmakers and state prosecutors to gain access to a president's private records with a strong enough showing. The cases were perhaps the most far-reaching of Trump's presidency, testing his claim to broad protections from congressional and state criminal investigations while in the White House. The clashes forced Chief Justice John Roberts's court to navigate politically polarizing and constitutionally weighty issues months before the presidential election. Trump weighed in on Twitter about the cases, saying they were "political prosecutions." "The Supreme Court sends case back to Lower Court, arguments to continue," he said. "Now I have to keep fighting in a politically corrupt New York. Not fair to this Presidency or Administration!" In the House case, the court returned the fight to two federal appeals courts, saying they didn't give close enough scrutiny to Trump's contentions that the document demands would be too intrusive. "Burdens imposed by a congressional subpoena should be carefully scrutinized, for they stem from a rival political branch that has an ongoing relationship with the President and incentives to use subpoenas for institutional advantage," Roberts wrote for the court. Justices Clarence Thomas and Samuel Alito dissented, saying they would have gone further and rejected the House subpoenas altogether. In the grand jury case, the court rejected Trump's call to give presidents complete immunity from criminal investigation while in office. "The president is neither absolutely immune from state criminal subpoenas seeking his private papers nor entitled to a heightened standard of need," Roberts wrote for the court. Thomas and Alito dissented in that case as well. Trump's two appointees, Justices Neil Gorsuch and Brett Kavanaugh, were in the majority in both cases. The subpoenas seek years of Trump's personal financial records, as well as those of the Trump Organization and his other businesses. They are directed to Trump's accounting firm, Mazars USA, and his banks, Deutsche Bank AG and Capital One Financial Corp. The accountants and banks aren't contesting the subpoenas and have said they will comply with their legal obligations. "This is a tremendous victory for our nation's system of justice and its founding principle that no one – not even a president – is above the law," Manhattan District Attorney Cyrus Vance said in a statement.
Five takeaways from Supreme Court's rulings on Trump tax returns - The Supreme Court handed down a split decision Thursday that upheld a New York state prosecutor’s authority to access President Trump’s tax returns but dealt a defeat to congressional Democrats who also sought Trump’s records. The overlapping efforts to nab the president’s financial paper trail presented the justices with a gordian knot of intersecting legal conflicts dealing with presidential immunity, Congress’s investigative authority and the power of state prosecutors to gather evidence linked to a sitting president. While the justices untangled some of the thorniest issues, key questions remain unanswered as the cases proceed back down to lower courts for further resolution. Here are five big takeaways from the two rulings.
- Trump’s tax returns are unlikely to become public soon. Members of the public who had hoped the ruling would lead to a swift publication of Trump’s tax returns will be sorely disappointed. The court’s decision in the New York criminal probe can be said to have cleared the way for Manhattan prosecutors to obtain Trump’s tax returns. But it’s unlikely that prosecutors or the grand jury in that case will receive those materials before additional court battles play out first.
- Court rejects Trump’s claim that presidents enjoy ‘absolute immunity’. Trump’s assertion that presidents are endowed with absolute immunity from criminal probes ran into a brick wall Thursday. In unambiguous terms, the court said in the New York case that presidents are not beyond the reach of prosecutors.
- Gorsuch and Kavanaugh defy Trump.The decision by Gorsuch and Kavanaugh to reject the president's claims of immunity and authorize investigations into his personal finances marked a stunning turn of events.Their votes allowed the court to avoid issuing the landmark rulings along ideological lines. They were also likely to deepen the president’s sense of defeat, given the justices’ hard-won confirmation battles raised expectations that a solid right-wing majority would control the court for the foreseeable future.
- Trump’s feud with the Manhattan district attorney may be far from over.Thursday’s rulings resolved some, but not all, of the legal questions surrounding the subpoenas, with the justices punting the remaining issues back down to the lower courts.“The public may have a right to know, Congress may be able to obtain certain documents and prosecutors may have their day in court someday,” he said. “But it won’t be anytime soon."
- Justices affirms Congress's subpoena power — with some caveats. While the House won’t be getting its hands on the president's financial records anytime soon, the Supreme Court reaffirmed that Congress has the authority — and even an obligation — to issue investigative subpoenas. That recognition is significant in light of the Trump administration's repeated challenges over the past year to Congress's oversight authority. “Without information, Congress would be shooting in the dark, unable to legislate ‘wisely or effectively,’” Roberts wrote, quoting past Supreme Court decisions. “The congressional power to obtain information is ‘broad’ and ‘indispensable.’ It encompasses inquiries into the administration of existing laws, studies of proposed laws, and ‘surveys of defects in our social, economic or political system for the purpose of enabling the Congress to remedy them.’”
U.S. first lady Melania Trump statue set on fire in Slovenia - -(Reuters) - A wooden sculpture of U.S. first lady Melania Trump was torched near her hometown of Sevnica, Slovenia, on the night of July Fourth, as Americans celebrated U.S. Independence Day, said the artist who commissioned the sculpture. Brad Downey, a Berlin-based American artist, told Reuters he had the life-sized blackened, disfigured sculpture removed as soon as police informed him on July 5th of the incident.“I want to know why they did it,” said Downey, who had hoped the statue would foster a dialogue about the political situation in the United States, highlighting Melania Trump’s status as an immigrant married to a president sworn to reduce immigration. In Washington, the office of Melania Trump did not immediately respond to a request for comment.
Ohio Town Proclaims Itself A "Statuary Sanctuary City" For Outcast Historical Figures - As protesters target statues around the nation, one town is becoming a statue sanctuary city for monuments honoring select figures. Newton Falls, Ohio City Manager David M. Lynch has signed a proclamation that states that the city will accept and display spurned statues of people including George Washington, Abraham Lincoln, and certain other prominent figures. "A Proclamation declaring that Newton Falls is a Statuary Sanctuary City and declaring a general amnesty for George Washington, Abraham Lincoln, Thomas Jefferson, Ulysses S. Grant, Patrick Henry, Francis Scott Key, Theodore Roosevelt and Christopher Columbus as represented by the statues of these great leaders, and volunteering to accept these statues that have been removed throughout the USA and place them in a location of honor in our community," the proclamation says, according to a copy posted by 21-WFMJ. “They founded our nation, they ended slavery, and established and protected our national parks,” Lynch said, according to Fox 8.“Yes, they had warts but they laid the foundation for what we have today,” he said.
Ex-Reddit CEO Claims She Knew About Ghislaine Maxwell "Supplying Underage Girls For Sex" In 2011 - Then Locks Twitter Account - Former Reddit CEO Ellen K. Pao admitted in a Sunday night tweet that she knew about Jeffrey Epstein 'madam' Ghislaine Maxwell procuring underage girls as far back as 2011. In response to a tweet in expressing relief at never having been photographed with Maxwell, Pao replied: "She was at the Kleiner holiday party in 2011, but I had no desire to meet her much less have a photo taken with her. We knew about her supplying underage girls for sex, but I guess that was fine with the "cool" people who managed the tightly controlled guest list" Shortly after sending the tweet, Pao locked her Twitter account. Perhaps Pao got a tap on the shoulder to let her know she just revealed herself as a potential witness in Maxwell's upcoming case - after she was charged with four criminal counts related to transporting and procuring minors for illegal sex acts, along with two counts of perjury (via Reuters).Maxwell has been accused by three women of procuring and training young girls to perform massage and sexual acts on Epstein and his associates, as well as participating in some of the alleged acts.
Epstein's Alleged Accomplice Pictured Posing on British Throne With Kevin Spacey - The British royal family has been dragged once again into the Jeffrey Epstein scandalas a photograph emerged showing the late financier's alleged accomplice posing on a throne at Buckingham Palace.The image of British socialite Ghislaine Maxwell sitting alongside "House of Cards" star Kevin Spacey, who has also faced allegations of sexual misconduct, apparently at the Queen's London residence in 2002, was published by the UK-based Daily Telegraph newspaper on Saturday.Ghislaine Maxwell sits on a throne at Buckingham Palace, alongside actor Kevin Spacey. It is believed to have been taken in 2002. CNN could not confirm why Maxwell and Spacey were at the palace. The paper reported the pair had been invited into the throne room by Prince Andrew, who has come under public pressure to explain his relationship with Epstein and allegations by one of his accusers, Virginia Roberts Giuffre. Giuffre has alleged that she was forced into sexual encounters with the prince and other men while she was underage. They all have denied the allegations. Buckingham Palace declined to comment on the photograph. A spokesperson for Prince Andrew also declined to comment.
Prince Andrew's Cousin Says Ghislaine Maxwell Has Secret Video Of Him - An acquaintance of Ghislaine Maxwell has told reporters that the socialite has secret video footage of Prince Andrew that was filmed during her time as Jeffrey Epstein’s so called ‘madam’. Christina Oxenberg told The Sun that Andrew, the British Queen’s son, “is one of many johns, all of whom were videotaped by Ghislaine.”“He is not a victim here, but Ghislaine was never his friend, she was taping him,” Oxenberg added, noting that “Friends don’t tape friends.” Oxenberg is the daughter of Princess Elizabeth of Yugoslavia, making her Prince Andrew’s cousin. She told reporters that she believes Maxwell is seeking to trade information with the FBI, and possibly the videos to save herself.“I think she thinks she can get out, obviously she’s planning on trading [information],” Oxenberg said.Oxenberg says she was interviewed by the FBI last year in regards to the case, and that she is willing to testify against Maxwell.The report claims that the royal said Maxwell previously bragged to her about obtaining underage girls under Epstein’s influence.“I will definitely be there to remind her that in ’97, she told me copious amounts,” Oxenberg said.It is not clear if Oxenberg is the same person who was cited anonymously in another report this week claiming that Maxwell has secret sex tapes that “could implicate some twisted movers and shakers.”“If Ghislaine goes down, she’s going to take the whole damn lot of them with her,” the source told the Daily Mail.As we highlighted last week, a lawyer for one of Epstein’s accusers thinks that Ghislaine Maxwell could reveal a “bigger name” involved in Epstein’s pedophile network in order to secure a plea deal following her arrest.“I’m sure that Ghislaine’s attorneys will try to make a deal where she speaks out about a bigger name to get reduced charges for herself,” said Lisa Bloom
Ghislaine Maxwell, Wall Street’s Secrets and the U.S. Attorney’s Office By Pam Martens - Outside of the Wall Street executives that did business with child sex trafficker Jeffrey Epstein, his first lieutenant, Ghislaine Maxwell, knows more about his Wall Street secrets than any other living person. Maxwell was arrested and indicted by the U.S. Attorney’s Office for the Southern District of New York (part of the U.S. Justice Department) on July 2, less than two weeks after the head of that office, Geoffrey Berman, was abruptly fired from his job by Attorney General William Barr. Berman’s former Deputy, Audrey Strauss, conducted the press conference regarding the Maxwell arrest. (See video below.) We immediately noticed a peculiarity about the indictment documentprovided by Strauss. It covered only a brief 4-year period, running from 1994 through 1997. One of the main accusers of Maxwell, Virginia (Roberts) Giuffre, has credibly indicated in previous court filings that Epstein and Maxwell sexually abused her “between 1999 and 2002.” That should lengthen the scope of the indictment by five additional years. The Southern District of New York, home to some of the biggest and most powerful Wall Street banks and their attorneys, who cycle in and out of jobs in that office, might have a strong reason to want to keep Giuffre’s claims out of this case. Giuffre has stated the following in a previous court filing against Epstein:“In addition to being continually exploited to satisfy Defendant’s every sexual whim, Plaintiff was also required to be sexually exploited by Defendant’s adult male peers, including royalty, politicians, academicians, businessmen, and/or other professional and personal acquaintances…most of these acts of abuse occurred during a time when Defendant knew that Plaintiff was approximately 15, 16 and 17 years old…” There is an abundance of evidence to be suspicious of how the U.S. Attorney’s office is handling this case. It is 14 years that the Justice Department has been sitting on the case against Maxwell. The Palm Beach, Florida Police Chief, Michael Reiter, handed a deeply investigated case against Epstein and Maxwell over to the FBI in July of 2006 according to theintrepid reporting of Julie K. Brown in the Miami Herald in November of 2018. Brown indicated that it took just eight months of FBI interviews for the U.S. Attorney’s office in Florida to have a 53-page Federal indictment ready to file against Epstein involving sexual assaults against dozens of underage girls. But the indictment was never filed. A “deal” was worked out by then U.S. Attorney, Alex Acosta, and Epstein’s well-connected lawyers. Federal charges were dropped against Epstein and he was allowed to plead guilty to only Florida state charges: one count of soliciting sex from a minor and one count of soliciting sex from an adult woman. Epstein was able to serve just 13 months in jail while also given a work release program to sit in his well-appointed office 12 hours a day, and driven around by his chauffeured limo. The deal was so outrageously constructed that it even denied his victims knowledge of the terms of the deal.
Deutsche Bank Is Fined $150 Million Over Jeffrey Epstein Links, Other Lapses – WSJ - 'New York’s financial-services regulator fined Deutsche Bank AG $150 million on Tuesday for failing to properly monitor its dealings with late financier and convicted sex offender Jeffrey Epstein.The fine, marking the latest in a series of run-ins with U.S. regulators for the German lender, was issued also in part for its relationship with two European banks embroiled in money-laundering scandals. In those cases, too, Deutsche Bank failed to act on clear red flags, which resulted in those banks being able to transfer funds, including to the U.S.The regulator’s penalty comes a year after Mr. Epstein was arrested on sex-trafficking charges. He died by suicide in custody roughly a month later, forcing the government to end its prosecution of him. Last week, authorities arrested and charged Ghislaine Maxwell, a longtime confidante of Mr. Epstein, reigniting federal prosecutors’ hopes that they will able to lay bare what they describe as a yearslong sex-trafficking ring.“In each of the cases that are being resolved today, Deutsche Bank failed to adequately monitor the activity of customers that the bank itself deemed to be high risk,” Superintendent of Financial Services Linda A. Lacewell said in statement, adding that, “despite knowing Mr. Epstein’s terrible criminal history, the bank inexcusably failed to detect or prevent millions of dollars of suspicious transactions.” The penalty from the New York Department of Financial Services comes after Deutsche Bank received a fresh rebuke from the Federal Reserve recently over its money-laundering controls at its U.S. operations, signaling U.S. authorities remain concerned about the bank’s ability to prevent criminal activities by customers.The New York regulator said it “recognizes and credits” Deutsche Bank’s ongoing efforts to address the shortcomings, adding the bank has fully cooperated.“We acknowledge our error of onboarding Epstein in 2013 and the weaknesses in our processes, and have learned from our mistakes and shortcomings,” a Deutsche Bank spokesman said. Deutsche Bank played a key role in Mr. Epstein’s financial dealings in recent years, helping him move millions of dollars in cash and securities through dozens of accounts, The Wall Street Journal has reported. Mr. Epstein amassed a fortune of more than $500 million over three decades through close relationships with several billionaire clients, although it isn’t clear how much went through Deutsche Bank.In its findings, the New York regulator said the bank processed transactions that should have been flagged, including periodic cash withdrawals totalling $800,000 over four years and payments to individuals who were publicly alleged to have been connected to Mr. Epstein’s alleged activities involving young women. Among other transactions that should have raised questions, the regulator said, were payments to Russian models, school tuition fees for women and hotel and rent expenses that were consistent with public allegations of wrongdoing.Mr. Epstein’s relationship with the bank started in 2013 after JPMorgan Chase & Co. dropped him as a client over reputational concerns. Mr. Epstein pleaded guilty in a Florida state court in 2008 to soliciting prostitution from an underage girl.
Deutsche Bank Settles Over Ignored Red Flags on Jeffrey Epstein - The New York Times -- Payments to his alleged co-conspirators. Money wired to Russian models. A cash withdrawal of $100,000 for “tips and household expenses.” When Jeffrey Epstein moved his money, Deutsche Bank didn’t ask many questions. In a $150 million settlement announced on Tuesday, the New York Department of Financial Services said Mr. Epstein, a convicted sex offender, had engaged in suspicious transactions for years, even though Deutsche Bank deemed him a “high risk” client from the moment he became a customer in summer 2013.“Despite knowing Mr. Epstein’s terrible criminal history, the bank inexcusably failed to detect or prevent millions of dollars of suspicious transactions,” Linda A. Lacewell, the department’s superintendent, said in a statement.A year and a day after Mr. Epstein was arrested on federal sex-trafficking charges, the settlement described how bank employees had relied on informal meetings and institutional momentum to allow suspicious activity to proceed largely unchecked. Instead of performing appropriate due diligence on Mr. Epstein and the activity in his accounts, regulators wrote, the bank was focused on his potential to “generate millions of dollars of revenue as well as leads for other lucrative clients.” Deutsche Bank acknowledged that it had erred in taking Mr. Epstein on as a client and that its processes had been weak. “Our reputation is our most valuable asset and we deeply regret our association with Epstein,” a bank spokesman, Daniel Hunter, said in a statement.In a message to employees on Tuesday, the bank’s chief executive, Christian Sewing, said taking Mr. Epstein on was a “critical mistake and should never have happened.” He urged them to read the settlement document and “learn the appropriate lessons” from the bank’s past conduct.“We all have to help ensure that this kind of thing does not happen again,” Mr. Sewing wrote.The settlement — the first regulatory action taken against a financial institution in connection with Mr. Epstein — provides a glimpse into the mysterious finances of the self-described tax guru and financial adviser. According to regulators, Mr. Epstein, who killed himself in a jail cell in New York last year while awaiting trial, sent $2.65 million in 120 wire transfers through accounts established in the name of an entity called the Butterfly Trust. Some of those payments — as well as money from other accounts — went to three people who had been named as co-conspirators in suits by Mr. Epstein’s accusers that were related to his 2008 guilty plea to prostitution charges in Florida.
Deutsche Bank Fined $150 Million for Enabling Jeffrey Epstein; Where’s the Fine Against JPMorgan Chase? - Pam Martens - As we reported yesterday, the U.S. Justice Department has been sitting on mountains of evidence against Jeffrey Epstein’s child sex-trafficking operation and his co-conspirators since July of 2006 when the Palm Beach, Florida Police Chief, Michael Reiter, handed a deeply investigated case against Epstein and his co-conspirators over to the FBI.After crafting a cozy 18-month work-release deal with Epstein in 2008 based on only Florida state charges (and then releasing him from jail five months early) the Justice Department allowed Epstein to return to business as usual for another 10 years until his arrest by the U.S. Attorney’s Office for the Southern District of New York in July 2019.That same Justice Department allowed Epstein to die with many of his secrets intact as a result of the negligence of the federal prison system to properly monitor him. That same Justice Department has now placed one of his newly indicted co-conspirators, Ghislaine Maxwell, who is a key to unlocking Epstein’s secret ties to other powerful men who abused these underage girls, in the same federal prison system in New York.During this 14-year span of incompetence and cronyism on the part of the U.S. Justice Department, no federal criminal charges have been brought against any financial institution for looking the other way as Epstein withdrew vast sums of cash to pay off his underage victims and their recruiters.JPMorgan Chase held a bank account for Epstein for 15 years until 2013. That’s five additional years after it was publicly known in 2008 that Epstein had pleaded guilty to soliciting sex with a minor, became a registered sex offender, and had spent time in jail. (Banks are required under law to “know your customer (KYC),” prevent illicit money dealings, and report suspicions of money laundering to FinCen, a unit of the U.S. Treasury.) The Justice Department has not brought charges against JPMorgan Chase over its involvement with Epstein despite the bank’s past sordid history in facilitating the laundering of money by Ponzi-schemer Bernie Madoff for decades. JPMorgan Chase pleaded guilty to two felony counts in that matter in 2014. (See JPMorgan and Madoff Were Facilitating Nesting Dolls-Style Frauds Within Frauds.) Yesterday, instead of the U.S. Justice Department bringing federal charges against JPMorgan Chase in the Epstein matter, the New York State Department of Financial Services (NYSDFS) settled a state civil matter with Deutsche Bank for $150 million. Deutsche Bank is where Epstein moved his account after leaving JPMorgan Chase in 2013. Epstein’s relationship with Deutsche was one-third as long as his relationship with JPMorgan Chase, lasting five years from August 2013 until December 2018, according to the NYSDFS. It is highly likely that similar activity described by the NYSDFS as occurring in Epstein’s account at Deutsche Bank also occurred in his account at JPMorgan Chase, since dozens of underage girls reported being paid in cash by Epstein during the time that his account existed at JPMorgan Chase. It also appears highly likely that the same “Relationship Manager” that Epstein had at JPMorgan Chase moved to Deutsche Bank and took charge of Epstein’s accounts when they transferred over. Epstein’s prior bank is identified by the NYSDFS as only “US Bank-1” but the timeframe of the accounts moving in 2013 coincides with when the Epstein accounts left JPMorgan Chase.
Top Men at Justice Department with Final Say on Goldman Sachs Felony Charges Got Big Payouts from Kirkland & Ellis – Goldman’s Law Firm – Pam Martens - Three of the top men at the U.S. Department of Justice who have been involved in negotiations as to whether Goldman Sachs, for the first time in its history, will be charged with a criminal felony and hit with a multi-billion dollar fine, received large sums of money from the law firm, Kirkland & Ellis, before joining the Trump administration. Kirkland & Ellis is the law firm defending Goldman Sachs in the criminal case.The top dog at the Justice Department, Attorney General William Barr, worked as “Of Counsel” to Kirkland & Ellis prior to joining the Justice Department. Barr’s financial disclosure form shows that Kirkland & Ellis paid him $1,188,257 and a $50,000 bonus for 2018. Brian Benczkowski, who stepped down last Friday as head of the Criminal Division of the Justice Department, indicates on his financial disclosure form that he received a salary and bonus from Kirkland & Ellis of $847,500. Benczkowski joined the Justice Department in July 2018 and had worked at Kirkland & Ellis since 2010.Both Barr and Benczkowski state in their financial disclosure forms that they would continue to participate in the Kirkland & Ellis Defined Contribution Plan but that the law firm would no longer make contributions on their behalf to the plan.The Financial Times reported in April 2019 that both Barr and Benczkowski had received ethics waivers to participate in the Goldman Sachs criminal case, despite their recent ties to the law firm representing Goldman Sachs.Benczkowski’s job as head of the Criminal Division is to be filled by his Deputy, Brian Rabbitt, a Trump loyalist who came to the administration from the corporate law firm, Williams & Connolly, where he specialized in government investigations. Rabbitt has hopped through jobs as a White House lawyer, policy advisor to SEC Chair Jay Clayton, and then as Chief of Staff to Barr before becoming Rosen’s Deputy. Rabbitt has no background to suggest that he is qualified to oversee a department of 600 criminal prosecutors.On June 11, the New York Times reported that lawyers for Goldman Sachs “have asked Deputy Attorney General Jeffrey Rosen to review demands by some federal prosecutors that Goldman pay more than $2 billion in fines and plead guilty to a felony charge, according to three people briefed on the matter.”The Deputy Attorney General, Jeffrey Rosen, worked for Kirkland & Ellis for 29 years prior to joining the Trump administration. Rosen’s first financial disclosure form showed that he had received compensation of $1,567,335 from the law firm and would be permanently receiving annual payments of approximately $189,505 from the law firm’s Defined Benefit Plan. The criminal case involving Goldman Sachs has been dragging on at the Justice Department since at least 2016. Goldman raised over $6 billion in bond offerings for a Malaysian sovereign wealth fund known as 1MDB. According to the Justice Department, $4.5 billion of that was “misappropriated” and used “to fund the co-conspirators’ lavish lifestyles, including purchases of artwork and jewelry, the acquisition of luxury real estate and luxury yachts, the payment of gambling expenses, and the hiring of musicians and celebrities to attend parties.” Goldman made more than $600 million in fees from the bond offerings.
Fed's Quarles urges nations to strengthen bank resolution plans— Although too-big-to-fail banking reforms have strengthened the world's financial system since the 2008 crisis, Federal Reserve Vice Chairman for Supervision Randal Quarles said regulators around the globe still have work to do to operationalize their processes for the resolution of distressed banks. Quarles — who serves as the chairman of the Financial Stability Board, an international body that works to bolster the resiliency of the global financial system — said all FSB members need to consider how to step up their resolution authorities to better prepare for the possibility of bank failures. “The benefits of reforms cannot be realized unless they are operationalized,” he said in remarks Tuesday to the Exchequer Club. “All FSB jurisdictions need to implement resolution reforms and to improve their resolution capabilities so they are fully prepared to respond to a bank failure or a crisis.” The FSB is made up of 24 central banks that span the globe, plus the European Central Bank. The Basel, Switzerland-based group is organized as an offshoot of the G-20. It is also organized as a complement to the Basel Committee on Banking Supervision, which is also based in Basel. Quarles’ remarks follow the FSB’s publication last month of an evaluation of the too-big-to-fail reforms for systemically important banks. That report found that the global banking system is in many respects better equipped to handle shocks and individual banks are less likely to require government bailouts. “Supervisors and firms are better equipped to deal with problems that occur,” Quarles said. “Supervisory oversight of systemically important banks has learned the lessons of the crisis and has added a macroprudential perspective.” The FSB report also concluded that post-crisis reforms have added “net benefits” to society, and that reforms like enhanced capital and liquidity standards required by the Basel III regulatory framework have yielded few negative side effects. Bank resolution planning has also improved around the world, Quarles said, citing the FSB report’s finding that investors now believe failing banks are more likely to be resolved than bailed out. “Recovery and resolution planning has improved banks’ capabilities to produce timely, accurate and granular information,” Quarles said. “Timely information in a crisis is key to assessing the scale of a problem and to deciding what to do about it. This additional information has already proved helpful to both banks and authorities during the pandemic.” However, Quarles highlighted the FSB report’s conclusion that noted important shortcomings in the current resolution planning processes that member countries must address. “The FSB’s evaluation shows that systemically important banks remain very complex, highlighting the importance of resolution planning,” he said. “The evaluation also highlights gaps in the information available to public authorities and to the FSB and standard setters, which reduces their ability to monitor and evaluate the effectiveness of resolution regimes.” The report also found that resolution authorities could do more to monitor and regulate a bank’s funding sources to ensure continuity and stability.
Big banks join fight against new ILCs - Bankers are closing ranks in opposition to a proposal that would make it easier for tech companies to compete in the lending business, teeing up a rare tangle between the banking establishment and Trump-appointed regulators. For three years, the main lobbying group for small U.S. banks has fought efforts by the likes of SoFi and Square to obtain so-called industrial bank charters. But now the nation’s big banks are also opposing key aspects of a regulatory proposal that would smooth a path for new entrants, according to letters filed recently with the Federal Deposit Insurance Corp. In March, the FDIC launched an effort to formalize the process of obtaining an industrial bank charter. At the same time, the agency approved deposit insurance applications by Square and the student loan servicer Nelnet, clearing a path for the first new U.S. industrial banks in more than a decade. Since then, two more companies have announced plans to operate industrial banks — the Japanese e-commerce giant Rakuten, which refiled a previously withdrawn application, and the St. Louis-based financial advisory firm Edward Jones. Trade groups that represent big banks recently expressed opposition to the Rakuten application, voicing doubt about the wisdom of mixing banking activities with nonfinancial businesses. And last week, one of those Washington-based industry groups, the Bank Policy Institute, went further, calling on the FDIC to lobby Congress to bar nonfinancial companies from owning industrial banks. In the meantime, the group urged the FDIC to institute a moratorium on processing deposit insurance applications for new industrial banks, which are also known as industrial loan companies. “Past efforts by large commercial firms, such as Wal-Mart and Home Depot, to acquire FDIC-insured ILCs have raised significant concern and alarm,” Dafina Stewart, the Bank Policy Institute’s associate general counsel, wrote in a June 30 letter, before lamenting that the FDIC’s proposal would not prevent the likes of Facebook or Amazon from acquiring industrial banks. The Consumer Bankers Association, which represents big banks, and the American Bankers Association, whose membership includes large and small depositories, also expressed opposition to aspects of the FDIC’s proposal. Under the FDIC’s proposal, parent companies of new industrial banks would have to agree to examinations, specialized capital and liquidity requirements and other measures. The big banks’ call for a moratorium comes more than two years after the Independent Community Bankers of America made a similar request, which has gone unheeded.
BankThink: Repealing brokered deposit law would be a costly mistake - Those of us who went through the savings and loan crisis and the rash of bank failures in the 1980s remember the devastating effect brokered deposits had in causing and driving up the cost of those collapses. Despite the urging of the Federal Deposit Insurance Corp.’s then-Chairman Bill Isaac, Congress only addressed the issue after the fact, restricting brokered deposits through a new section of the Federal Deposit Insurance Act. Since then, the FDIC has repeatedly studied brokered deposits, concluding that it is, in fact, correlated with a higher rate of bank failures as well as an increased cost of resolutions. That’s why it is disheartening to see the bank trade associations and even the FDIC now considering a repeal of that restriction in the FDI Act — the only law dealing directly with brokered deposits. Legislation was recently introduced in Congress to implement such a repeal.While there have been significant changes in how banks gather deposits, the basic problems caused by brokered deposits remain. In 2011, Congress mandated that the FDIC published an extensive study on the issue, finding that as “brokered deposit levels increase, the probability that a bank will fail also increases.” Furthermore, the study also found that banks with higher levels of brokered deposits were also more costly the Deposit Insurance Fund in the event of failure. In another FDIC study of the 2008 financial crisis, the agency again found a high correlation between brokered deposits and costly bank failures in the last recession, resulting in additional premiums that surviving banks paid to the DIF. The FDIC’s analysis of bank failures during that period found that 47 failed banks relied heavily on brokered deposits, which represented 13% of the total assets of all failed institutions but 38% of DIF losses. As a result, the agency recommended at the time that Congress “not amend or repeal” the brokered deposit statute. Yet now the FDIC and bank trade associations are apparently promoting a repeal with little explanation as to why these previous FDIC findings are no longer valid. Their argument seems to be that the regulation is too complicated and that changes in technology have made such regulation obsolete. However, issues of complexity and technological change can be addressed by reworking the existing regulation. In its 2011 study, the FDIC concluded “the statute is sufficiently flexible to allow the FDIC to treat deposits, including new forms of brokered deposits, appropriately.” In fact, the FDIC has already put forth major changes in a proposal on brokered deposits which is pending following a public comment period.
Are lawmakers inviting ‘hot money’ boom with brokered deposit bill-— Banks have long urged the Federal Deposit Insurance Corp. to modernize brokered deposit rules. But the focus is shifting to whether policymakers should repeal those rules altogether. Banks with damaged capital are currently restricted from accepting brokered deposits. The aim is to prevent an unhealthy institution from growing too fast, potentially leaving the FDIC with a costly failure. The FDIC is poised to revise the definition of brokered deposits to ease the restrictions. Yet a pending bill to replace those restrictions with explicit asset growth limits has spurred a new debate. Supporters of the idea say it better addresses the problem of overheated growth, but other say throwing out brokered deposit limits is a mistake. “Rapid asset growth is a problem, every analyst would agree,” said Paul T. Clark, partner at Seward & Kissel. “Most people agree that the current brokered deposit standards are not designed for and laser-focused on that problem.” But skeptics worry that the legislation proposed by Sen. Jerry Moran, R-Kan., could invite undercapitalized banks to rely on "hot money" to stay afloat. “At the end of the day, brokered deposits are all about hot money, which destabilizes financial institutions,” said Dennis Kelleher, president and CEO of Better Markets. Banks and their advocates have insisted for years that the FDIC's policy regarding brokered deposits is outdated in the digital age. They argue that some kinds of funding covered by the agency's current definition — which are thus off-limits for banks lacking well-capitalized status — are more stable than the deposits that exacerbated losses in past crises. The difference between then and now is that the FDIC appears to agree. Under a pending proposal released in December, the FDIC said it was considering clarifying the definition of brokered deposits by narrowing how it defines a "deposit broker." “The current framework for brokered deposits is, frankly, completely antiquated, given the nature of the banking system today and comparing it to what it was 40 years ago when we promulgated these regulations,” FDIC Chair Jelena McWilliams said in an interview. “If we can modernize the brokered deposit system, I think it will give the ability to banks to do more with brokered deposits without increasing the risk.” The bill would task the FDIC with creating a new framework built around restricting rapid asset growth of banks considered by examiners to be less than well capitalized, and strike any reference to “brokered deposits” in Section 29 of the Federal Deposit Insurance Act. “This legislation is a pragmatic modernization of the regulatory environment that focuses on the issue the outdated regulations were intended to resolve," Moran said in an emailed statement. "This modernization simply directs the law's emphasis where it belongs, direct oversight over asset growth and asset quality, while facilitating the relationships that allow community banks to thrive.” McWilliams has also endorsed the idea behind Moran's bill: focusing directly on asset growth, instead of barring a struggling bank from using brokered deposits.
10 years after bruising Dodd-Frank fight, is bipartisanship returning? - — The Dodd-Frank Act nearly 10 years ago marked a dramatic shift toward partisanship in the crafting of federal banking policy. But more recent legislative debates offer hope of a more collaborative future between the two parties, observers say. Only a handful of Republicans supported the sweeping package of post-crisis regulatory reforms, which became law on July 21, 2010, in the then-Democrat-controlled Congress. Anger over the 2008-9 mortgage crisis fueled Democrats' unified support for tougher banking rules, while the GOP united around concerns of government overreach. Those themes dominated the two banking committees for much of the past decade, as partisanship helped slow other bills such as reform of the government-sponsored enterprises. But since moderate Democrats joined Republicans to support a targeted rollback of certain Dodd-Frank provisions in 2018, many see the partisan freeze on banking legislation starting to thaw. They note banking provisions in recent coronavirus rescue bills, and proposals to reform anti-money-laundering and cannabis banking rules as examples where members of both parties are working together. “It’s encouraging that the two parties are now working in a bipartisan way on banking legislation that will help the economy grow," said Rob Nichols, president and CEO of the American Bankers Association. The 2018 regulatory relief package, and the AML and marijuana banking bills "are at least three pieces of legislation over the last four or so years that the two parties have worked in a bipartisan way,” he added. After months of tense debate, Dodd-Frank passed along mostly party lines. With Democrats holding a wide majority in the Senate, only three Republican votes were needed in the chamber to approve the conference committee report, sending the bill to President Barack Obama's desk. Over the ensuing eight years, as the GOP gained control of Congress — with slimmer majorities — and later the White House, debates over banking legislation were mostly driven by partisan tensions. Republican initiatives to roll back or repeal Dodd-Frank were defeated by Democrats in the minority. Likewise, since Democrats regained the House in 2018, many financial reform priorities promoted by more liberal lawmakers have been dead on arrival in the GOP-controlled Senate. “It’s pretty partisan. Not always, not on every issue, but a lot of it,” said Sen. Richard Shelby of Alabama, who was the top Republican on the Senate Banking Committee when Dodd-Frank passed. Before the 2008 crisis and efforts to pass Dodd-Frank, major banking bills tended to be non-partisan. The Gramm-Leach-Bliley Act in 1999, which enabled commercial and investment banks and securities firms to consolidate, was named for three Republicans but was signed into law by President Bill Clinton, a Democrat. Three years later, the chief authors of the Sarbanes-Oxley Act were the then-Republican chairman of the House Financial Services Committee and the then-Democratic chairman of the Senate Banking Committee.
Black communities need more help from Fed - An estimated $7 billion in corporate pledges have been made to facilitate efforts that support racial justice, and help activities that seek immediate solutions to the crisis affecting Black people. We are very familiar with these types of promises, having launched the first website focusing on financial support for minority communities in 1995 and a new website to monitor such corporate pledges. Yet it appears that only $188 million of that $7 billion is money someone can reasonably expect to get their hands on. Further, in certain sections of the Black community, there is concern about the effectiveness of the traditional organizations identified as recipients of the pledges. And there appears to be less concern with newer, trending organizations. In a recent survey of customers banking at black-owned banks, the results suggest most consumers who do not use Black banks are concerned about their financial stability, and have not been able to leverage financial resources from these institutions. Programs that rely on secondary institutions to provide capital to already underutilized Black-owned banks add another stumbling block to the effort to get capital where it is needed.Certainly, more money will help. But there may be more effective methods such as creating a digital wallet and currency to get money directly to affected communities without the need for money-sapping intermediaries; or creating a large credit program at the Federal Reserve. The latter approach holds the most promise.Recall that the Federal Reserve Board created a secondary market corporate credit facility to purchase a more diversified portfolio of corporate bonds that include supporting large employers. Regrettably, very few Black-owned firms are eligible for this program, having been locked out of the corporate-debt market largely due to discrimination, both involuntary and self-imposed.The Fed also created the Main Street Lending Program meant to encourage cash flows to small and midsize businesses by purchasing up to $600 billion in loans. But already, the number of black-owned small businesses plummeted by 41% between February and April when the coronavirus pandemic started in the U.S., according to a working paper published by the National Bureau of Economic Research. The financial losses to the Black-owned businesses is estimated at $23 billion due to the pandemic. Therefore, the Fed should allocate $23 billion of the $600 billion in its Main Street program to Black-owned firms, using a wide array of financial instruments and techniques.Lastly, Black people need a truly collaborative and cooperative effort — in and by the Black community — a community often trained to be cutthroat to each other given the paucity of resources at its disposal. After Creative Investment Research, in the public spirit, disseminated an estimate of corporate pledges to the Black Lives Matter cause (at $1.6 billion), several foundations made donations totaling $1.7 billion.
The coronavirus has given investors a ‘once-in-a-lifetime opportunity,’ says hedge-fund billionaire -- ‘I know you’re not supposed to say this, but it’s a once-in-a-lifetime opportunity. You’re not going to see this again: Where you’ve actually got an economy that’s fine, and you’ve got a Fed pumping trillions of dollars in.’ That’s Marc Lasry, hedge-fund manager and billionaire co-owner of the Milwaukee Bucks, explaining his stance on the investment landscape in a chat Wednesday on Yahoo Finance. While stocks should also fare well in the scenario he described, Lasry said it’s debt investors like himself who are poised to do “extremely well” making loans to companies that falter. His $14 billion Avenue Capital firm has capitalized on such struggling brands as Hertz, Macy’s and J.C. Penney. “You’ve got a lot of companies that are in trouble,” Lasry explained, comparing what we’re seeing in the market now to what happened back during the Great Recession. “It’s a once-in-a-lifetime, but it happened 10 years ago, also,” he added with a chuckle. Bankruptcies represent good opportunities to buy from noneconomic sellers or people who need to sell, Lasry told Barron’s in an interview last month. That’s where Avenue Capital comes in. “If things turn out, I will do exceptionally well. If a company has to liquidate that’s OK, because I’ll make money on the liquidation,” he said at the time. Lasry also suggested the economy is better positioned to weather the storm brought on by the coronavirus than it was in the face of the collapse in 2008. “Today we all know something,” he said. “We will be fine in two years. People will be back out, there will be a vaccine. The question is: How long will it take to get back to normal?” Meanwhile, the stock market continues to hold up nicely in the face of all the uncertainty.
CFPB declares most agency rules still valid after high court decision - The Consumer Financial Protection Bureau on Tuesday sought to provide certainty that key regulatory actions taken in the past eight years are still valid despite a Supreme Court ruling that the agency's leadership structure is unconstitutional. The bureau said it had "ratified" most policies, designating them as still in effect after the court's June decision. CFPB Director Kathy Kraninger said the bureau is similarly considering whether to reaffirm other “legally significant” actions, including pending enforcement actions. “The Bureau is taking action to ensure that consumers and market participants understand that the same rules continue to govern the consumer financial marketplace,” Kraninger said in a press release. The Supreme Court ruled in June that the CFPB’s statutory structure, which requires a president to find cause before firing the agency's director, violates the separation of powers. The decision means a sitting CFPB director can be fired at will by the president. While some critics of the agency sought to have the court invalidate the agency and its past rule, the justices' ruling did not go that far. The high court’s decision prompted Kraninger to ratify key actions to resolve any questions regarding what the Supreme Court called a potential “constitutional defect” with agency policies. Yet the agency made certain exceptions, including the omission of policies that were already invalidated. For example, the CFPB did not ratify underwriting requirements included in the agency's 2017 payday rule. (The CFPB released a new regulation on Tuesday that rescinded those requirements.) And Kraninger did not ratify the 2017 arbitration rule that was repealed by Congress through the Congressional Review Act. The CFPB said it is still considering whether ratifying “certain other legally significant actions by the Bureau, such as certain pending enforcement actions, are appropriate.” The bureau said it will ratify pending enforcement actions on a case-by-case basis and that all past enforcement actions do not need to be ratified.
CFPB makes it official, rescinds Cordray-era limits on payday lenders -The Consumer Financial Protection Bureau completed a rule gutting limits on payday lenders, delivering long-anticipated regulatory relief to the small-dollar lending industry. The final rule released Tuesay rescinds underwriting requirements that had been imposed in a 2017 regulation under former CFPB Director Richard Cordray. Eliminating the “ability to repay” standards has long been a policy goal of the Trump administration. The changes developed under CFPB Director Kathy Kraninger are projected to save the payday lending industry more than $7 billion a year. But the new rule will likely face a legal challenge by consumer advocacy groups that argue the agency did not follow the correct rulemaking procedures.Cordray’s 2017 rule had sought to eliminate repeat re-borrowings by a single user, citing the CFPB’s own data showing that payday lenders rely on such re-borrowings as a major source of revenue. In a press release Tuesday, the bureau said there was "insufficient legal and evidentiary bases" for the 2017 rule’s mandatory underwriting provisions.Kraninger has favored easing up on limits to payday loans. She said the CFPB will continue to monitor the small-dollar lending industry and enforce the law against bad actors.“Our actions today ensure that consumers have access to credit from a competitive marketplace, have the best information to make informed financial decisions, and retain key protections without hindering that access,” Kraninger said in the press release. “The Bureau protects consumers from unfair, deceptive, or abusive practices and takes action against companies that break the law." The CFPB said it will also undertake new research focusing on identifying information that could be disclosed to consumers during the small-dollar lending process to allow them to make the most informed choices. The bureau said it also is going to implement payment provisions in the 2017 final rule that never went into effect. The provisions prohibit lenders from withdrawing funds from a consumer's bank account after two consecutive failed attempts unless consumers consent to further withdrawals. The payment provisions also require that lenders provide consumers with written notice before making their first attempt to withdraw payment from a bank account. The payment provisions are intended to increase consumer protections from harm associated with lenders’ payment practices. Payday lenders lobbied heavily to rescind the 2017 rule because it would have eliminated 55% of revenue for lenders that offer loans of 45 days or less. Under Cordray, the CFPB conducted research over five years to write the 2017 payday rule, which never went into effect. But shortly after the Trump administration appointed former Mick Mulvaney to succeed Cordray, Mulvaney, as acting director, signaled his intention in 2018 to reopen the rule. Kraninger, a Mulvaney protege, agreed with Mulvaney within a month of taking over the agency, saying in 2019 that tough underwriting requirements would cut off access to credit, leaving low-income borrowers with few options for fast cash. The CFPB’s final rule comes after four other federal regulatory agencies released new guidance recently in the midst of the coronavirus crisis on how banks and credit unions can safely offer small-dollar consumer loans without getting dinged by regulators.
Supreme Court ruling eliminates autodialer use for FHA, VA collections - The U.S. Supreme Court's ruling in a Telephone Consumer Protection Act case will have an immediate impact on servicers of federally guaranteed mortgages who have used robocalls to reach borrowers. The ruling ended an exemption that permitted autodialing to consumer cellphones for collections of government-related debt, like mortgages. "While the Supreme Court's ruling did not add any new requirements for mortgage lenders, it reinforces that TCPA compliance remains very much in force," said Mike Eshelman, head of consumer finance at the fintech firm Jornaya. "Mortgage lenders need to ensure that they have a solution to protect themselves or they will be exposed to potential lawsuits and settlements which have recently averaged as much as $6.6 million," Eshelman added. Damages for TCPA violations start at $500 per call or text. This amount can be tripled for willful violations of the act. Servicers may still call consumers manually, assuming they meet all the criteria around spam phone calls, which are prohibited by the TCPA, as well as the Can-Spam Act, said Marx Sterbcow, a mortgage industry attorney. The exemption at the heart of the Supreme Court decision was created in a 2015 amendment to the TCPA, which had bipartisan support. But that amendment only covered Federal Housing Administration, Veterans Affairs and U.S. Department of Agriculture Rural Housing Service mortgages. The decision means that servicers once again need to have an unrevoked consent to contact consumers regarding collections for those loans and other forms of federal debt like student loans. This case is separate from past actions from the Federal Communications Commission, which has refused to grant a similar exemption to cover Fannie Mae and Freddie Mac loans.
Black Knight: Number of Homeowners in COVID-19-Related Forbearance Plans Fall by 435K - Note: Both Black Knight and the MBA (Mortgage Bankers Association) are putting out weekly estimates of mortgages in forbearance.From Black Knight: Forbearances See Largest Weekly Drop Yet The latest data from the McDash Flash Forbearance Tracker shows that, following on last week’s decline, the number of active forbearance plans fell another 435,000 week-over-week – marking the largest drop yet. This brings the total number of active forbearances to its lowest point since April 28.As of July 7, 4.14 million homeowners were in active forbearance, representing 7.8% of all active mortgages, down from 8.6% the week prior. Together, they represent just under $900 billion in unpaid principal.The overall decline in active forbearance plans is likely driven at least in part by the fact that more than half of all active forbearance plans at the start of June were set to expire at the end of the month. While the majority have been extended, this week’s data suggests a significant share were not.Of those in forbearance, 37% have now missed at least three payments, whereas nearly 60% have missed two. Again, recent spikes in COVID-19 around much of the country and the scheduled expiration of expanded unemployment benefits both represent significant uncertainty for the weeks ahead.
Black Knight Mortgage Monitor for May, Cash-Out Refinance Activity Declined - Black Knight released their Mortgage Monitor report for May today. According to Black Knight, 7.76% of mortgages were delinquent in May, up from 6.45% in April, and up from 3.36% in May 2019. Black Knight also reported that 0.38% of mortgages were in the foreclosure process, down from 0.49% a year ago. This gives a total of 8.14% delinquent or in foreclosure. Press Release: Black Knight’s May 2020 Mortgage Monitor … despite record-low interest rates and record-high levels of tappable equity – the amount available to homeowners with mortgages to borrow against before reaching a maximum combined loan-to-value ratio of 80% – both the number of cash-out refinances and the volume of equity withdrawn via such loans fell in Q1 2020. “Tappable equity rose by 8% year-over-year in the first quarter of 2020 to a record high of $6.5 trillion,” said Graboske. “What’s more, with mortgage interest rates hitting record lows, 90% of homeowners with tappable equity now have first lien rates above the prevailing market average. But while Q1 2020 saw overall refinance lending climb to a 7-year high, the number of cash-out refinances, as well as the dollar value of equity withdrawn via refinance, fell for the first time since early 2019. All in, cash-outs accounted for just 42% of refinance loans in the first quarter, roughly half of what was seen at the recent high in Q4 2018 and the lowest such share since Q1 2016. Likewise, the $38.7 billion in equity withdrawn from the market via cash-out refinances was down 8% from the prior quarter. Further, rate lock data – a good indicator of lending activity – suggests the trend is likely to continue, as the cash-out share of refinance activity has continued to fall throughout the second quarter. Here is a graph from the Mortgage Monitor that shows the National Delinquency Rate. From Black Knight:
• The national delinquency rate jumped again in May, climbing another 1.3 percentage points to its highest level since December 2011There is much more in the mortgage monitor.
• May’s increase would have been the worst single month ever recorded if it weren’t for the 3.1 percentage point increase in the month prior
• All in, the national delinquency rate of 7.8% is now up 4.5 percentage points from the record low of 3.2% in January 2020
• There are now 4.3 million homeowners past due on their mortgages, including 200,000 currently in foreclosure
• That number has ballooned by more than 2.3 million in recent months after falling below 2 million earlier in the year for the first time since 2005
Mortgage Applications Increase in Latest MBA Weekly Survey - Mortgage applications increased 2.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 3, 2020. This week’s results include an adjustment for the Fourth of July holiday. ... The Refinance Index increased 0.4 percent from the previous week and was 111 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 5 percent from one week earlier. The unadjusted Purchase Index decreased 5 percent compared with the previous week and was 33 percent higher than the same week one year ago. Mortgage rates declined to another record low as renewed fears of a coronavirus resurgence offset the impacts from a week of mostly positive economic data, such as June factory orders and payroll employment. The 30-year fixed rate slipped to 3.26 percent – down 53 basis points since late March. Borrowers acted in response to these lower rates, after accounting for the July 4th holiday,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Purchase applications continued their recovery, increasing 5 percent to the highest level in almost a month and 33 percent from a year ago. The average purchase loan size increased to $365,700 – also another high – as borrowers contend with limited supply and higher home prices.” Added Kan, “Refinance applications increased slightly, driven by a 2 percent rise in conventional refinances. Overall refinance activity was up 111 percent from last year.” ... The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) decreased to 3.26 percent from 3.29 percent, with points decreasing to 0.35 from 0.36 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
Almost One-Third of NYC Restaurants Missed June Rent, Survey Finds - The majority of restaurant owners around the city did not pay their entire rent in June, with 30 percent skipping out on it altogether, as the coronavirus pandemic continues to make it harder for eateries to survive, a new survey found. The nonprofit New York City Hospitality Alliance surveyed 509 restaurateurs around the city and found four out of five didn’t pay the full June rent. Of those, 90 percent said they paid half or less last month.“Pre-pandemic, it was incredibly difficult to run a successful restaurant,” Andrew Rigie, the executive director of the Hospitality Alliance, said. “These conditions, the longer that it goes on, is going to make it more and more challenging for small businesses to ever recover. The vast majority of small businesses will not be able to pay back months of missed rent.”The survey also found that landlords have been unwilling to give restaurants a break. Sixty percent of restaurant owners said their landlords refused to give them deferments during the pandemic, while only 10 percent were able to renegotiate their leases.Restaurant owners are “hanging on by a thread and they’re exhausting their personal savings in the hope of one day getting their business up and running again,” Rigie said.Even with the challenges and debts piling up, owners said most aren’t looking to close up shop. “The idea of walking away right now is not something that most folks want to do,” “They want to figure out how to make it through.” Emergency restrictions put in place to curb the spread of the coronavirus forced restaurants and bars to switch to take-out and delivery models since late-March. Owners dealt with a significant drop in revenue and were forced to lay off thousands of workers.
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 77.4 Percent of Apartment Households Paid Rent as of July 6: The National Multifamily Housing Council (NMHC)’s Rent Payment Tracker found 77.4 percent of apartment households made a full or partial rent payment by July 6 in its survey of 11.4 million units of professionally managed apartment units across the country.This is a 2.3-percentage point decrease from the share who paid rent through July 6, 2019 and compares to 80.8 percent that had paid by June 6, 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. “It is clear that state and federal unemployment assistance benefits have served as a lifeline for renters, making it possible for them to pay their rent,” said Doug Bibby, NMHC President. “Unfortunately, there is a looming July 31 deadline when that aid ends. Without an extension or a direct renter assistance program, that NMHC has been calling for since the start of the pandemic, the U.S. could be headed toward historic dislocations of renters and business failures among apartment firms, exacerbating both unemployment and homelessness.” It appears fewer people are paying their rent compared to last year (down 2.3 percentage points from a year ago). In the previous surveys, over the last few months, people were paying their rents at about the same pace as last year. The disaster relief has been key to helping people pay their bills, especially the extra unemployment benefits and the PPP.
More than 20 million Americans may be evicted by September - (video) The pandemic has intensified rent burden on households across the nation. We spoke to an economist about what it means for the economy.
Warren’s eviction bill is economically and politically savvy -- Senator Elizabeth Warren has a new bill out to prevent evictions during the COVID-19 crisis. The bill imposes a 1 year moratorium on evictions nationwide. That’s it. On its face, the bill seems to have two deficiencies. First, millions of low-income tenants will be unable to repay their past due rent. To give them a fresh start we will probably need a streamlined process for consumer bankruptcy filings. Second, a rent moratorium may trigger a financial crisis, as landlords default on their mortgage payments. To prevent this, an eviction moratorium will need to be accompanied by a bank bailout if banks end up having their capital depleted by mortgage defaults. Although bank bailouts are unpopular, an eviction moratorium coupled with bankruptcy reform and a bank bailout will potentially be much cheaper for taxpayers than giving insolvent tenants money to pay their landlords in full, because it pushes losses due to tenant insolvencies from taxpayers to landlords and banks. In a rational world, these predictable problems would be addressed in Warren’s bill. But we do not live in a rational world, and an eviction moratorium is much easier to sell politically than a bankruptcy overhaul and a bank bailout. (We know this is true, because a 120 day limit on evictions included for federally financed properties was included in the CARES act, Democrats have made numerous proposals for a more comprehensive approach, and many states and localities have put a temporary freeze on evictions.) And – this is the critical part – Congress will deal with the bankruptcy problem and bank bailout if they lead to crises in the future. There is certainly some risk here, especially if a bank bailout is handled poorly, but the benefits to struggling tenants (avoiding homelessness) and savings to taxpayers could easily be worth the risk. Warren knows what she is doing.
CoreLogic: House Prices up 4.8% Year-over-year in May -- The CoreLogic HPI is a three month weighted average and is not seasonally adjusted (NSA).From CoreLogic: Prepare for a Cooldown: CoreLogic Reports Home Prices Were Up in May, but Could Slump Over the Summer Nationally, home prices increased by 4.8%, compared with May 2019. Home prices increased 0.7% in May 2020 compared with April of this year.Strong home purchase demand in the first quarter of 2020, coupled with tightening supply, has helped prop up home prices through the coronavirus (COVID-19) crisis. However, the anticipated impacts of the recession are beginning to appear across the housing market. Despite new contract signings rising year over year in May, home price growth is expected to stall in June and remain that way throughout the summer. CoreLogic HPI Forecast predicts a month-over-month price decrease of 0.1% in June and a year-over-year decline of 6.6% by May 2021.Unlike the Great Recession, the current economic downturn is not driven by the housing market, which continues to post gains in many parts of the country. While activity up until now suggests the housing market will eventually bounce back, the forecasted decline in home prices will largely be due to elevated unemployment rates. This prediction is exacerbated by the recent spike in COVID-19 cases across the country.CR Note: The overall impact on house prices will depend on the duration of the crisis.
Americans leave large cities for suburban areas and rural towns — A combination of the coronavirus pandemic, economic uncertainty, and social unrest is prompting waves of Americans to move from large cities and permanently relocate to more sparsely populated areas. The trend has been accelerated by technology and shifting attitudes that make it easier than ever to work remotely. Residents of all ages and incomes are moving in record numbers to suburban areas and small towns. A perfect storm of factors makes the decision to leave major cities like New York very obvious. The dense nature of urban living and the lack of proper local government planning led to the coronavirus spreading five times faster in New York than the rest of the country. The city that never sleeps now resembles a ghost town in many areas after thousands of its wealthy and middle-class residents fled early in the pandemic. Many are moving to small towns north of the five boroughs. Four upstate counties have seen an incredible surge in real estate demand, while the rest of the New York market is cratering. In Ulster County, the number of homes now under contract nearly doubles the 2016 figures. It saw steady sales in March and April while the overall New York market fell by nearly 30 percent. Some people are staying at their vacation homes, but the data suggest there are many permanent moves in the works. An estimated quarter of a million New York residents will move upstate for good, while another 2 million could permanently move out of the state. More than 16,000 New York residents have already relocated to suburban Connecticut. The preliminary figures show New York is also losing citizens to rural New England and Florida in significant numbers. Similar trends are happening in other large urban areas. There is a political element within the domestic migration at play across the nation, but what is more telling is the level of movement to suburban areas and rural towns. Over 40 percent of urbanites have browsed online for real estate, more than twice the level of people who live in the country. Redfin reports that more than a quarter of searches on its website are by urbanites in Seattle, San Francisco, and the District of Columbia searching for homes across less populated places. While real estate sales are down in San Francisco, where prices are falling by more than 50 percent, demand in its suburbs has been soaring, where prices are rising by almost 10 percent. There has been a sharp uptick in interest in moving out to Montana, with the majority of new inquiries coming from California. Real estate sales in Montana are 10 percent higher than at this time last year. Rural Colorado, Oregon, and Maine have seen similar upticks in property sales. Vermont is going through a renaissance in real estate, with an agent there remarking that “people are buying houses without even seeing them.”
Hotels: Occupancy Rate Declined 30.2% Year-over-year -- From HotelNewsNow.com: STR: US hotel results for week ending 4 July: U.S. hotel performance data for the week ending 4 July showed a slight decline in occupancy from the previous week, according to STR.28 June through 4 July 2020 (percentage change from comparable week in 2019):
• Occupancy: 45.6% (-30.2%)
• Average daily rate (ADR): US$101.36 (-20.9%)
• Revenue per available room (RevPAR): US$46.21 (-44.8%)
Occupancy had risen in week-to-week comparisons for 11 straight weeks since mid-April. “Demand came in 67,000 rooms lower than the previous week, and beyond that, July 1 was a reopening day for a lot of hotels, further impacting the occupancy equation,” said Jan Freitag, STR’s senior VP of lodging insights. “A rise in COVID-19 cases has led to states pausing or even rolling back some of their reopenings. Beaches have been a big demand driver for hotels, but with many beaches closed ahead of the July 4 holiday, all but two markets in Florida showed lower occupancy than the previous week. Growing concern around this latest spike in the pandemic has further implications for leisure and business demand alike.” The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.
Plunge In Consumer Credit Continues As Americans Repay Record Amounts Of Credit Card Debt - One of the striking changes to US consumer behavior spawned by the economic shutdowns from the coronavirus pandemic, was the unprecedented surge in personal savings which exploded to a record 32% of disposable personal income before easing modestly last month to 23.2%. Now, thanks to the latest consumer credit data released by the Fed, we know what much of that saving went to: paying down debt. According to the Fed's latest G.19 statement, in May, total consumer credit tumbled by another $18.28 billion, which while less than the record $68.8 billion crash in April, was far below expectations for $15 billion drop. Just like March and especially April, most of the credit repayment took place in revolving credit which shrank by another $24.3 billion in May (after declines of $21.5BN in March and $58.2BN in April) as US consumption literally went into reverse and instead of spending wildly as it does every other month, usually spending what it can't afford, US consumers repaid the most on their credit cards ever. In fact, over the past three months, US consumer have paid down a staggering $104 billion in credit card debt, bring the total outstanding credit card debt below below $1 trillion. Indicatively, the first time total credit card debt hit $1 trillion was back in December 2007, which means that the deleveraging of the past 3 months has sent US credit card balances to a 13 year low! At the same time, there was a modest return to normalcy in non-revolving debt, i.e., student and auto loans, which after plunging by a near record $12 billion last month, has again rebounded and was up $6 billion in May. Going back to the aggressive repayment of credit card debt, that is quite an ominous development for a US economy which is 70% reliant on stable - in many cases credit-card funded - consumer spending. Ominous, but not unexpected, because in a time of virtually no visibility on job prospects and how the pandemic is resolved, instead of doing what they do best, i.e. spend, Americans not only saved money but also went into credit paydown mode, crippling an economy where 70% of total output is a direct result of consumer spending; and needless to say, the tens of millions of Americans (depending on whether one believes the initial claims or the BLS jobs report) who have lost their jobs are not going to go out and spend like drunken sailors any time soon.
Low-Income Households Crushed By Covid Inflation Shock --As The Fed continues to flood the system with money - insisting that inflation is merely a boogeyman and it is doing everything in its power to support the middle class, Bloomberg has found that inflation due to coronavirus is real, and is disproportionately hammering poor households. Due to higher grocery and housing costs for the bare necessities during the pandemic lockdown, the study found that the bottom 10% of households by income currently face inflation of 1.5%, while those in the top 10% face 1%. Meanwhile, the official overall average in May was 0.1%. According to the report, the difference is primarily due to changes in consumption habits during the pandemic - as households have been forced to buy more food, which has shot up in price, while spending less on recreational activities and transportation. "In a period of protest and increasing anger about inequality, the differential inflation rate experienced by low- and high-income households is a concern," said Bloomberg Economics' Björn van Roye and Tom Orlik. "Taken together with concerns about central banks bailing out investors ahead of firms and workers, and the benefits rich, asset-owning households gain from quantitative easing, it adds to the sense that central banks are unintentional contributors to the problem of inequality," Meanwhile, adding insult to injury, CCN points out that blue-collar workers are more likely to contract the virus, adding "If you can’t work remotely and you haven’t been laid off, chances are you’re headed into work and putting yourself at risk every day."
Bed Bath & Beyond to close 200 stores over 2 years as sales fall almost 50% during pandemic -Bed Bath & Beyond said Wednesday its sales tumbled nearly 50% during its latest quarter, even as online sales surged more than 100% during April and May, with consumers stocking up on cleaning supplies and home decor. The company said it plans to permanently close roughly 200 of its namesake stores over the next two years, starting later in 2020, as it works toward getting back to profitability against the backdrop of the coronavirus pandemic. As of May 30, it operated a total of 1,478 stores, including 955 Bed Bath & Beyond shops.
Wholesale inventories tumble in May – (Reuters) - U.S. wholesale inventories tumbled in May as the COVID-19 pandemic drove imports to near a 10-year low, supporting expectations that the second quarter will see the sharpest contraction in economic growth since the Great Depression. The Commerce Department said on Thursday that wholesale inventories dropped 1.2% in May as estimated last month. Stocks at wholesalers gained 0.2% in April. The component of wholesale inventories that goes into the calculation of gross domestic product fell 0.7% in May. Goods imports dropped in May to their lowest level since July 2010 as the coronavirus crisis suppressed demand and upended global trade. Imports have also been curbed by the White House’s trade war with China. Though the shrinking import bill is a positive in the calculation of GDP, it has been overshadowed by an even bigger decline in exports. That has led a widening of the trade deficit, which together with the continued inventory drawdown are expected to contribute to the steepest decline in GDP on record. The economy contracted at a 5.0% annualized rate in the first quarter, the sharpest pace of decline in GDP since the 2007-2009 Great Recession. The economy fell into recession is February. Economists expect GDP shrank at as much as a 35% pace in the April-June quarter. The government will publish its advance second-quarter GDP estimate later this month. The decline in inventories in May was broad, with a 5.1% decline in stocks of motor vehicles and parts. Sales at wholesalers rebounded 5.4% in May after plunging 16.4% in April. At May’s sales pace it would take wholesalers 1.53 months to clear shelves, down from 1.63 months in April.
Wholesale prices drop in June, U.S. inflation very low due to the coronavirus pandemic - The wholesale cost of U.S. goods and services fell in June, reflecting depressed demand in retail and other major parts of the economy caused by the coronavirus pandemic. The producer price index declined 0.2% last month, the government said Friday. Economists polled by MarketWatch had predicted a 0.4% increase. Wholesale inflation has fallen 0.8% in the past year, unchanged from May. By contrast, wholesale inflation was rising at a 1.6% pace just a year ago. Most companies have had to cut prices to drum up sales as reluctant customers worried about the pandemic hoarded their cash. That trend is likely to persist until the virus is contained. Another measure of wholesale costs known as core PPI — which excludes food, energy and trade margins — rose 0.3% last month. It was the biggest increase since January, but the spike is unlikely to last. The core rate is slightly negative in the past year. Most of the increase in producer prices last month was tied to trade margins for wholesalers and retailers, a volatile category that often causes distortions in the underlying rate of inflation. As such economists tend to dismiss trade margins. The wholesale cost of goods, meanwhile, rose 0.2% mostly because of another increase in gasoline prices. The price of oil slumped earlier in the year, and while prices have rebounded, the cost of filling up is still very low with Americans driving less. Fewer people are going on vacation or driving far distances while the coronavirus is still very active. The cost of food went in the other direction. Price fell in 5.2% in June after a 6% increase in May. The cost of meat sank almost 28%. The viral outbreaks at meat-packing plants that triggered a surge in prices in May have been brought under control and the threat of shortages has receded.
Fleet Sales To Plunge 56% In June, Pressuring US Auto Market Further - Over the last few months we detailed how used car prices were set to cripple what little interest in new cars remains, how dealers are scrambling to offer incentives and how ships full of vehicles are being turned away at port cities due to the lack of space and inventory glut.And just as the industry was hoping for some respite, weak fleet orders for June are making it seem as though a recovery is still far away. Cox Automotive is forecasting that fleet sales will fall 56% to 1.3 million vehicles in June, after plunging 83% in May and 77% in April, according to Reuters.Cox is also predicting that further job cuts could occur if production at U.S. automakers doesn't eventually ramp back up. Zohaib Rahim, economic and industry insights manager at Cox Automotive, said: “If we don’t see a rebound in 2021, this will be a problem for automakers. But right now they’re using all their production to supply dealers.” Cox is still predicting, however, that commercial sales will bounce back in 2021 despite government orders taking a hit. While fleet sales aren't a main concern for automakers - higher margin sales to customers are - they can still put pressure on the industry as a whole. And with rental companies like Hertz now in the midst of bankruptcy, there is sure to be a profound effect not only on dealer sales, but the used car aftermarket. 62% of vehicles sold to fleet buyers in 2019 went to rental car companies. In 2019, fleet sales accounted for about 22% of GM's sales, with about half going to rental fleets and the other half going to corporations and government agencies. Fleet sales made up about 28% of Nissan's 2019 sales, with 93% of those going to rental car companies. John Ruppert, Ford’s general manager of commercial and government fleet sales said it "could be some time in 2021" before sales recover.
U.S. Heavy Truck Sales down 42% Year-over-year in June - The following graph shows heavy truck sales since 1967 using data from the BEA. The dashed line is the June 2020 seasonally adjusted annual sales rate (SAAR). Heavy truck sales really collapsed during the great recession, falling to a low of 180 thousand SAAR in May 2009. Then heavy truck sales increased to a new all time high of 575 thousand SAAR in September 2019. However heavy truck sales started declining late last year due to lower oil prices. And then heavy truck sales really declined towards the end of March due to COVID-19 and the collapse in oil prices. Heavy truck sales were at 305 thousand SAAR in June, up from 282 thousand SAAR in May, and down 42% from 527 thousand SAAR in June 2019.
No V-Shaped Recovery For Airlines- Ticket Sales Re-Slump As Second-Wave Strikes Sentiment - With Covid-19 cases surging in the US and in other countries, airline industry ticket sales for both domestic and international flights are declining again, as demand has turned south, according to a presentation to employees by United Airlines, filed with the SEC on July 7.UA’s presentation included the two charts below of new ticket sales for future travel, by “all carriers and sales channels,” based on data by Direct Data Solutions (DDS) through July 2. They show the percentage decline in industry-wide ticket sales for domestic and international travel from the same period last year (in a 7-day moving average). The charts are titled, “Increase in Covid-19 cases negatively impacting industry demand”:The first chart shows the decline in ticket sales for domestic flights, in terms of the number of passengers (blue line) and dollar revenues by the industry (purple line): This second chart shows the decline in international ticket sales in terms of the number of passengers: So that’s the end of any pretense of a “V-shaped” recovery of ticket sales. And it’s likely that not just airlines are impacted by this resurgence in Covid-19 cases. But airlines are already teetering on the edge.Yesterday, United Airlines announced that 36,000 employees in the US, or 45% of its US workforce, could face “involuntary furloughs” on on or after October 1. That’s the day after the restrictions attached to the $25 billion in payroll aid under the CARES act expire.United’s memo of the layoffs went out to employees in order to comply with a federal law that requires employers to give employees at least 60 days’ prior warning before mass layoffs, the so-called WARN notices.The “involuntary furloughs” would include up to 15,000 flight attendants, 11,000 customer service and gate agents, 5,500 maintenance workers, and 2,250 pilots. Another 1,300 management and support staff will be laid off on October 1, the company said.“The reality is that United simply cannot continue at our current payroll level past October 1 in an environment where travel demand is so depressed. And involuntary furloughs come as a last resort, after months of company-wide cost-cutting and capital-raising,” the company said. Delta Airlines told pilots in late June that it would send WARN notices to 2,558 pilots, or nearly 20% of its pilots, notifying them of potential furloughs. Last week, Delta said that it may cut the number of flights it had scheduled for August due to lack of demand. A month ago, Delta issued the mother or all revenue warnings. All airlines have been trying to cut their workforce with voluntary measures and have been offering severance packages and early retirement packages to nudge employees out the door without having to lay them off. Over the next few weeks, as the 60-day period before October 1 approaches, more airlines will follow United in announcing mass layoffs.
AAR: June Rail Carloads down 22.4% YoY, Intermodal Down 6.6% YoY - From the Association of American Railroads (AAR) Rail Time Indicators. U.S. rail volumes in June weren’t close to where they would have been absent the pandemic, but for the most part they were better than in April and May, so at least they’re heading in the right direction. Whether that continues is, of course, a separate question, but the worst may be behind us. . This graph from the Rail Time Indicators report shows the six week average of U.S. Carloads in 2018, 2019 and 2020: Total originated U.S. rail carloads fell 22.4% in June 2020 from June 2019, a troubling result but better than the 25.2% decline in April and 27.7% decline in May. Average weekly total carloads in June were 198,564, the third lowest of any month in records going back to January 1988. The second graph shows the six week average of U.S. intermodal in 2018, 2019 and 2020: (using intermodal or shipping containers): U.S. intermodal originations were down 6.6% in June 2020 from June 2019, their smallest percentage decline since January 2020 and much better than the 13.0% decline in May 2020 and the 17.2% decline in April 2020. An average of 251,233 containers and trailers were originated each week in June, the most since November 2019 and up from a recent low of 219,085 in April 2020. Note that rail traffic was weak prior to the pandemic.
ISM Non-Manufacturing Index increased to 57.1% in June - The June ISM Non-manufacturing index was at 57.1%, up from 45.4% in May. The employment index increased to 43.1%, from 31.8%. Note: Above 50 indicates expansion, below 50 contraction. From the Institute for Supply Management: June 2020 Non-Manufacturing ISM Report On Business®: “The NMI® registered 57.1 percent, 11.7 percentage points higher than the May reading of 45.4 percent. This reading represents growth in the non-manufacturing sector after a two-month period of contraction preceded by 122 straight months of expansion. This is the largest single-month percentage-point increase in the NMI® since its debut in 1997. (In April, the index suffered its biggest one-month decrease, a 10.7-percent drop.) The Business Activity Index registered 66 percent, up 25 percentage points from May’s figure of 41 percent. The New Orders Index registered 61.6 percent; 19.7 percentage points higher than the reading of 41.9 percent in May.The Employment Index increased to 43.1 percent; 11.3 percentage points higher than the May reading of 31.8 percent. This graph shows the ISM non-manufacturing index (started in January 2008) and the ISM non-manufacturing employment diffusion index.
Markit Services PMI: "Business activity contraction slows in June as new business nears stabilization - The June US Services Purchasing Managers' Index conducted by Markit came in at 47.9 percent, up 10.4 from the final May estimate of 37.5. The Investing.com consensus was for 46.7 percent. Here is the opening from the latest press release:Commenting on the latest survey results, Chris Williamson, Chief Business Economist at IHS Markit, said:“June saw a record surge in the PMI’s main gauge of business activity in the US as increasing numbers of companies returned to work and expanded their operations amid the reopening of the economy. The survey points to a strong initial rebound from the low point seen at the height of the pandemic lockdown in April, with indicators of output, demand, exports and employment all showing steep gains. Financial services and technology companies are now reporting improved demand, as are many consumer-facing companies. Many, however, remain constrained by social distancing measures.“With business confidence in the outlook picking up again in June, a return to growth for the economy in the third quarter looks likely, though this will very much depend on the extent to which demand continues to strengthen. There remains a strong possibility that growth could tail off after the initial rebound due to weak demand and persistent virus containment measures. The need to reintroduce lockdowns to fight off second waves of coronavirus infections will pose a particular threat to recovery momentum, and could drive a return of the recession.” [Press Release] Here is a snapshot of the series since mid-2012.
COVID Impact - 1.5 Billion Pound Potato Mountain Trapped In Supply Chain - Nationwide COVID-19 lockdowns led to the collapse of the restaurant industry has disrupted critical food supply chains, such as potatoes, which had nowhere to go. The closings of restaurants, hotels, and catering firms had a chain effect that rippled down the production line to processors and growers, "trapping 1.5 billion pounds in the supply chain," said Bussiness Insider. Some farmers gave away millions of potatoes to food banks, while others were forced to destroy millions more. Business Insider took a trip to a potato seed farm in Sheridan, Montana, and spoke with farmers Peggy and Bill Buyan, who described the emotional and financial impact COVID-19 has caused them. Courtesy of Business Insider, here's an excerpt of the video transcript:
Minor League Teams Could Be Latest Casualties of COVID’s Disaster Capitalism - Minor League season. Teams releasing players. Some team owners continue to pay Minor League players, while others convey “tough luck” sentiments and cut the players off. More than 40 Minor League teams to be eliminated; untold damage for local economies as a result. All of this happening in the context of the COVID-19/economic crises, with the future of the Minor Leagues — indeed, the future of baseball — up in the air. There are three points to make here. First, just as with others in big business, Major League Baseball owners are taking advantage of this situation in order to bring about changes that they knew would have been met with steep resistance under other circumstances. Author Naomi Klein speaks of “disaster capitalism,” in which those of wealth and avarice take advantage of disasters in order to advance their agendas and/or make changes that would have been difficult to have made otherwise. We saw this in the aftermath of Hurricane Katrina in New Orleans and in Puerto Rico after Hurricane Maria. In today’s context, what is happening to Minor Leaguers and the MLB as a whole is representative of a design that the MLB owners had in place. Months prior to COVID-19, MLB owners were seriously discussing cutting the number of teams and cutting the number of draft rounds. The changes underway may result in Minor League jobs never returning. We may be looking at a dramatic and pro-corporate restructuring of baseball as an industry after both the pandemic and economic crises end, unless there is a loud and organized public response. Second, baseball may be a game, but what is unfolding for the Minor Leaguers is far from a game or a joke. The lives and careers of thousands of players and other workers in the industry are unraveling as the uncertainty of their situations grow in intensity. The pay for the highest-level Minor Leaguers — those at the Triple-A level, one step from the Major Leagues — was already outrageously low at $12,000 a year. The MLB requires them to conduct much work with no compensation (such as during spring training), purchase their own equipment, gain pitiful amounts of per diem while on the road, and share uncomfortably close quarters with other players due to a lack of resources to live on their own. Third, this dismal situation mirrors that faced by millions of workers across the U.S. who have lost their jobs or, in other cases, been compelled to work under unhealthy conditions in the midst of this pandemic. Not only are we forced to protect ourselves through social distancing, but families are forced to give up work, in many cases, in order to take care of their children. Already stretched budgets — due to the polarization of wealth we have been seeing grow in this country over the last 40 years — have reached the snapping point. Minor Leaguers are not cresting this situation but are being swamped by this catastrophe. .
Regulators reject utility moves to recover revenue lost to COVID-19 as analysts, advocates see trend continuing -The Indiana Utility Regulatory Commission has issued an "immediate" and "decisive" rejection of a request to raise residential electric rates to compensate for COVID-19, leading consumer advocates and industry analysts to conclude that similar requests in other states are likely to suffer the same fate. "The utilities' request to recover lost revenue was beyond the pale, and, simply put, a bridge too far," said Kerwin Olson, executive director of Indiana's Citizens Action Coalition. "The reaction from the public and elected officials was immediate, decisive, and left no doubt that this request was unacceptable." On May 8, nearly a dozen Indiana utilities joined forces to request authorization to document and defer costs and losses associated with the COVID-19 crisis, including increased costs associated with responding to the public health emergency, losses associated with government orders suspending disconnections, and decreased revenue due to declining sales. They then sought permission to adjust utility rates in order to recover the deferred revenue within 24 months. The Indiana Utility Regulatory Commission rejected this proposal, citing the utilities' obligation to provide "safe, reliable service" in exchange for "just and reasonable rates." "Asking customers to go beyond their obligation and pay for services they did not receive is beyond reasonable utility relief based on the facts before us," the order states. The Wisconsin Public Service Commission has stopped similar actions, while leaders in Michigan and Virginia have also expressed disapproval of revenue recovery efforts by utilities. Robert Mudge, a principal at The Brattle Group, said that while it remains to be seen how regulators across the nation will respond to the question of COVID-19 cost recovery, rushing to make a decision could result in negative outcomes for utilities and their ratepayers. Research by The Brattle Group suggests that utilities nationwide have experienced a 5% reduction in load, resulting in potential net income losses of up to 30%. That kind of loss could be "survivable" for the utility, but the money has to come from somewhere, Mudge said, taking money away from essential services. But if regulators and utilities aim to recapture these losses too soon, Mudge said, it could have a disproportionately negative impact on ratepayers if the 5% load reduction becomes permanent — or even increases as commercial and industrial bankruptcies continue. "Let's say it's implemented in 2021," Mudge said. "That's going to be a pretty concentrated step up in rates to customers who remain on the system, and are therefore being called upon to make up those differences. What does that look like in terms of a rate hike? That's a question, but it might be sizable, and it might fall on customers who are economically challenged."
Weekly Initial Unemployment Claims decrease to 1,314,000 --The DOL reported: In the week ending July 4, the advance figure for seasonally adjusted initial claims was 1,314,000, a decrease of 99,000 from the previous week's revised level. The previous week's level was revised down by 14,000 from 1,427,000 to 1,413,000. The 4-week moving average was 1,437,250, a decrease of 63,000 from the previous week's revised average. The previous week's average was revised down by 3,500 from 1,503,750 to 1,500,250. The previous week was revised down. This does not include the 1,038,905 initial claims for Pandemic Unemployment Assistance (PUA). This was an increase from the previous week, and the previous week was revised up. The following graph shows the 4-week moving average of weekly claims since 1971.
BLS: Job Openings increased to 5.4 Million in May -- From the BLS: Job Openings and Labor Turnover Summary: The number of hires increased by 2.4 million to a series high of 6.5 million in May, the U.S. Bureau of Labor Statistics reported today. This was the largest monthly increase of hires since the series began. Total separations decreased by 5.8 million to 4.1 million, the single largest decrease since the series began. Within separations, the quits rate rose to 1.6 percent while the layoffs and discharges rate fell to 1.4 percent. Job openings increased to 5.4 million on the last business day of May. These improvements in the labor market reflected a limited resumption of economic activity that had been curtailed in March and April due to the coronavirus (COVID-19) pandemic and efforts to contain it. The following graph shows job openings (yellow line), hires (dark blue), Layoff, Discharges and other (red column), and Quits (light blue column) from the JOLTS. . Note: The difference between JOLTS hires and separations is similar to the CES (payroll survey) net jobs headline numbers. Note that hires (dark blue) and total separations (red and light blue columns stacked) are usually pretty close each month. This is a measure of labor market turnover. When the blue line is above the two stacked columns, the economy is adding net jobs - when it is below the columns, the economy is losing jobs. Jobs openings increased in May to 5.397 million from 4.996 million in April.The number of job openings (yellow) were down 26% year-over-year. Quits were down 41% year-over-year. These are voluntary separations. (see light blue columns at bottom of graph for trend for "quits"). Job openings increased in May, but were still down sharply YoY.
Job Openings & Labor Turnover: May 2020 Update - The latest JOLTS report (Job Openings and Labor Turnover Summary), with data through May, is now available. From the press release: The number of hires increased by 2.4 million to a series high of 6.5 million in May, the U.S. Bureau of Labor Statistics reported today. This was the largest monthly increase of hires since the series began. Total separations decreased by 5.8 million to 4.1 million, the single largest decrease since the series began. Within separations, the quits rate rose to 1.6 percent while the layoffs and discharges rate fell to 1.4 percent. Job openings increased to 5.4 million on the last business day of May. These improvements in the labor market reflected a limited resumption of economic activity that had been curtailed in March and April due to the coronavirus (COVID-19) pandemic and efforts to contain it. This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector, by industry, and by four geographic regions. This news release contains corrections to previously released January 2020 data in tables 1-6. An error in federal government data affected estimates for government, total nonfarm, and all four regions. More information on these corrections as well as a complete list of corrections in this news release and in the JOLTS database can be found at www.bls.gov/bls/errata/corrections-to-jobopenings-and-labor-turnover-survey-estimates-for-january-2020.htm. Data collection for the JOLTS survey was affected by the coronavirus (COVID-19) pandemic. While 42 percent of data are usually collected by phone at the JOLTS data collection center, most phone respondents were asked to report electronically. However, data collection was adversely impacted due to the inability to reach some respondents that normally respond by phone. The JOLTS response rate for May was 45 percent, while response rates prior to the pandemic averaged 54 percent. BLS modified the JOLTS estimation methods starting in March and continuing through May to better reflect the impact of the coronavirus (COVID-19) pandemic. The estimation process usually includes an alignment of monthly hires minus separations to the over-the-month change in the Current Employment Statistics (CES) employment estimates. For May estimates, as in earlier months, BLS suspended the alignment process because the differing reference periods for the CES employment estimates (pay period including the 12th of the month) and the JOLTS hires and separations estimates (the entire reference month) led to substantially different measurement outcomes. For more information about the impact of the COVID-19 pandemic on the JOLTS survey, including more information about the JOLTS estimation methodology, please see www.bls.gov/covid19/job-openingsand-labor-turnover-covid19-may-2020.htm. The first chart below shows four of the headline components of the overall series, which the BLS began tracking in December 2000. The time frame is quite limited compared to the main BLS data series in the monthly employment report, many of which go back to 1948, and the enormously popular Nonfarm Employment (PAYEMS) series goes back to 1939. Nevertheless, there are some clear JOLTS correlations with the most recent business cycle trends. The chart below shows the monthly data points four of the JOLTS series. They are quite volatile, hence the inclusion of six-month moving averages to help identify the trends. For the last five years, the moving average for openings has been above the hires levels as seen in the chart below.
Hires up, layoffs down but more economic pain is on the horizon: Policymakers must act in order to protect workers’ health and economic well-being - EPI Blog - Today’s BLS Job Openings and Labor Turnover Survey(JOLTS) reports that the labor market was down 13.1 million jobs at the end of May. The number of hires increased by 2.4 million to a series high of 6.5 million—the largest monthly increase and largest number of hires on record (series began in 2000). The hires rate also rebounded significantly to 4.9%, the highest rate on record. At the same time, layoffs dropped considerably to 1.8 million, consistent with the average number of layoffs in the pre-coronavirus period. This is a significant fall off from previous months. In April and May, layoffs totaled 19.2 million. Further, 1.8 million layoffs is much lower than the initial unemployment insurance (UI) claims we saw in May. In May, there were more than 8 million initial UI claims in regular state programs. This suggests is that a significant share of the initial UI claims in May were from layoffs in March or April, and people either waited to file claims until May, or state agencies were working through backlogs of claims. Unfortunately, there are more recent indicators that layoffs are going to pick up again as people being laid off for the second time and hires will likely slow as well. Pre-coronavirus, there were typically around 3.5 million voluntary quits each month, or a rate of about 2.3%. A large number of quits signifies a healthy labor market where people can leave their job to find one that is better for them. The quits rate increased from 1.4% in April to 1.6% in May, but is still well below its pre-virus level, underscoring that workers lack confidence in the labor market. Even at this low level, it’s likely quits would have dropped even further if not for the fact that people were counted who had to, for example, leave a job to take care of a child whose school or child care center closed as a result of the virus. The ratio of unemployed workers (averaged for mid-May and mid-June) to job openings (at the end of May) is about 3.6 workers to every job opening. On average, there were 19.4 million unemployed workers while there were only 5.4 million job openings at the end of May. This demonstrates tremendous continued slack in the labor market; for every 36 workers who were officially counted as unemployed, there were only available jobs for 10 of them. And, this misses the fact that many more weren’t counted among the unemployed. Even with the measurable gains in May as shown in improvements in hiring and layoffs in the JOLTS data and in increases to payroll employment and declines in unemployment in the Jobs data through mid-June, the recovery thus far just begun to fill in the mammoth losses in March and April. Unfortunately, more trouble is on the horizon as coronavirus cases continue to rise, states begin to re-shutter, and unemployed workers face further economic devastation when the unemployment insurance enhancements expire on July 25. Without further aid to workers and their families as well as state and local governments, the economic pain will be with us for a very long time.
Racial Jobless Gap Hits Five Year High - The virus-related economic downturn has crushed the nation's labor market and proven uniquely damaging for black workers. The road to recovery, so far, has been uneven for whites and blacks, though the Federal Reserve will never admit monetary policy exacerbates inequalities. We asked Neel Kashkari on Wednesday if the NYFed will launch QE6 and open market operations to buy equity ETFs until black unemployment reaches zero... Employment trends for June show more blacks were out of work than white folks (even after the Federal Reserve printed trillions of dollars, lowered interest rates to near zero and the federal government deployed trillions more over the last several months), fueling the racial unemployment gap to five-year highs. Jobless rates for both groups fell in June, but the rate for whites came down at a much faster rate. The white unemployment rate fell 2.3 percentage points to 10.1% from 12.4%, while the rate for Blacks dropped 1.4 points to 15.4% from 16.8%.At 5.3 percentage points, the gap is now the widest since May 2015 and exposes an important economic component of racial inequality at a pivotal moment in U.S. race relations. In recent weeks, the country has witnessed protests over police brutality against African Americans, particularly Black men. – Reuters Job loss and gains by race - notice the job recovery has been much slower for blacks than whites and Latinos.
Almost 50 Million Americans Have Now Filed For First-Time Jobless Benefits Since Lockdowns Began - Despite the hope-restoring nonfarm payrolls "recovery" and the over-hyped bounce in retail sales (ignoring the lack of 'V' in industrial production) and 'soft' sentiment surveys (which are biased by their nature as diffusion indices to bounce back hard), for the sixteenth week in a row, over 1 million Americans filed for unemployment benefits for the first time (1.314mm was slightly better than the 1.375mm expected). Texas, New Jersey, and Louisiana suffered the biggest increases in jobless claims in the prior week... That brings the sixteen-week total to 49.993 million, dramatically more than at any period in American history. However, as the chart above shows, the second derivative is slowing down drastically (even though the 1.314 million rise this last week is still higher than any other week in history outside of the pandemic) Continuing Claims did drop very modestly but hardly a signal that "re-opening" is accelerating! And definitely not confirming the payrolls or sentiment data... Graphe: Bloomberg. And as we noted previously, what is most disturbing is that in the last sixteen weeks, far more than twice as many Americans have filed for unemployment than jobs gained during the last decade since the end of the Great Recession... (22.13 million gained in a decade, 49.993 million lost in 16 weeks)Worse still, the final numbers will likely be worsened due to the bailout itself (and its fiscal cliff): as a reminder, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed on March 27, could contribute to new records being reached in coming weeks as it increases eligibility for jobless claims to self-employed and gig workers, extends the maximum number of weeks that one can receive benefits, and provides an additional $600 per week until July 31. Finally, it is notable, we have lost 378 jobs for every confirmed US death from COVID-19 (132,309). Was it worth it?
Census: Household Pulse Survey shows 32% of Households Expect Loss in Income; 24.5% Concerned about Housing -- Note: The question on lost income is always since March 13, 2020 - so this percentage will not decline. 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 last Wednesday. 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. 32% of households expect a loss in income over the next 4 weeks. This is down from 38.8% in late April, but up from 31% the previous (the previous week was the reference week for the BLS employment report). This might suggest the job gains stalled after the data was collected for the June employment report. About 10% of households report food scarcity; households where there was either sometimes or often not enough to eat in the last 7 days. 41.5% of households report they delayed medical care over the last 4 weeks. This has not declined. 24.5% of households reported they missed last month's rent or mortgage payment. This has increased from a low of 22.1% in the survey of June 4th - June 9th. Essentially all households with children are reporting were not being taught in a normal format.
Census: Household Pulse Survey shows 34.9% of Households Expect Loss in Income; 25.9% Concerned about Housing -- Note: The details in the pulse survey this week are concerning - especially about loss in income and concern about housing. This graph is from Ernie Tedeschi (former US Treasury economist).Note: The question on lost income is always since March 13, 2020 - so this percentage will not decline.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 last Wednesday. 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 June 25 and June 30, 2020.Expected Loss in Employment Income: "Percentage of adults who expect someone in their household to have a loss in employment income in the next 4 weeks." 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% the previous (the previous week was the reference week for the BLS employment report). 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. About 10% of households report food scarcity.
Delayed Medical Care: "Percentage of adults who delayed getting medical care because of the COVID-19 pandemic in the last 4 weeks." 41.5% of households report they delayed medical care over the last 4 weeks. This has not declined.
Housing Insecurity: "Percentage of adults who missed last month’s rent or mortgage payment, or who have slight or no confidence that their household can pay next month’s rent or mortgage on time." 25.9% 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.
A US senator wants to propose legislation blocking middle seats on planes after he flew on a crowded American Airlines flight - The US government is about to weigh in on whether airlines should block middle seats after a senator flew on a crowded flight Thursday that prompted him to take action. Sen. Jeff Merkley of Oregon was flying on an American Airlines flight just before the holiday weekend and saw firsthand the airline's lack of social distancing policies in action. The masked-up Democrat then took to Twitter, where he posted a photo of his flight with a dark message for the airline:"How many Americans will die bc you fill middle seats, w/ your customers shoulder to shoulder, hour after hour," the Democratic lawmaker wrote. "This is incredibly irresponsible. People eat & drink on planes & must take off masks to do so. No way you aren't facilitating spread of COVID infections."After receiving nearly 40,000 likes on the platform, Merkley followed up with a tweet saying he would address the issue when he returned to Washington and join an unnamed group of legislators already on airline-related reforms."I will introduce a bill to ban the sale of middle seats through this pandemic," Merkley said in a July 3 tweet. "And I'll work with colleagues to include it in a package of airline accountability reforms they are crafting."If Congress passes such a bill and the president signs it into law, it would be the first federal mandate regulating social distancing onboard airliners since the start of the pandemic. Most policy choices have been left up to the airlines, as Business Insider found when reviewing the social distancing policies of the 11 major US airlines, especially whether to mandate face coverings for passengers. American Airlines had been restricting flights at 85% capacity for the month of June — as Business Insider saw firsthand on two American flights in early June — and recently announced that it will be selling its flights to capacity starting July 1. Two of its main rivals, Delta Air Lines and Southwest Airlines, are taking the opposite approach and blocking middle seats until at least September 30, when provisions of the CARES Act stimulus package are set to expire.
New York City Democrats ensure budget protects NYPD and guts social services - On Monday, New York City’s “progressive” mayor Bill de Blasio and the Democratic Party-controlled City Council announced the final figures for the huge cutbacks in next year’s city budget. The justification for the latest set of austerity measures was the economic devastation caused by the uncontrolled spread of COVID-19, which has left the city with a spending deficit of $9 billion for the 2021 fiscal year. The budget was passed by the 51 members of the city’s Council, 48 of whom are Democrats, by a vote of 32 to 17. The new budget marks an escalation of the years-long cutbacks to social welfare and cultural services, overseen by local Democratic and Republican politicians alike. To placate anti-police violence protesters, the budget includes a highly publicized $1 billion “cut” to the New York Police Department (NYPD). Far from acceding to the calls to abolish or defund the NYPD that dominated the anti-police violence protests that rocked the city in June, however, the $1 billion figure is a fabrication. At least $350 million in “savings” were proposed through the transfer School Safety Agents—poorly paid, unarmed security guards who work inside public-school buildings—and school crossing guards from their current status under the NYPD to the Department of Education. Documents released last Thursday show that even this accounting trick was a gimmick, with Safety Agents remaining under the jurisdiction of the NYPD. Another $350 million is to be cut from the police budget by reductions in overtime. The NYPD has not stated how these reductions will be enforced. In the past, city agencies that have been instructed to cut overtime have ended up paying it out in full regardless. The only tangible cuts to the police budget are the cancelation of July 2020’s academy class, which will save $55 million, and delaying a new delivery of fleet vehicles, which will save $5 million. The cut of 1,200 new officers will only undo an increase to police numbers sanctioned by Mayor de Blasio in 2015. The NYPD will continue to maintain a force of 34,000 officers. Whether even these minimal cuts take place remains to be seen. While the NYPD budget has barely been touched, New York City’s social services, already in a decrepit state from years of austerity, face further crippling cuts. These come at a time when workers in New York City have filed 1.4 million new claims for unemployment benefits since the pandemic began in March.
Miami-Dade mayor closes restaurants, gyms and other facilities as COVID-19 cases rise - Miami-Dade County will close bars and restaurants amid an ongoing outbreak of the coronavirus in Florida, county Mayor Carlos Gimenez (R) announced Monday. “I am signing an emergency order that will close restaurants (except for takeout and delivery services), along with ballrooms, banquet facilities, party venues, gyms and fitness centers, and short-term rentals. These closings, among others that will be included in the order, will be effective Wednesday, July 8, 2020,” Gimenez said in an announcement Monday. “We want to ensure that our hospitals continue to have the staffing necessary to save lives. At this time, I plan to keep open various outdoor activities, including condominium and hotel pools with strict social distancing and masks rules, as well as summer camps and child daycare centers with strict capacity limits, requiring masks and social distancing of at least 6 feet,” he added. Gimenez said the county’s beaches will be open Tuesday but vowed to close them again if beachgoers fail to follow anti-crowding rules. Offices, retail stores and personal grooming businesses will remain open “for now,” he added. The mayor said county officials are continuing to track an uptick in younger patients that began in June, which he blamed on a combination of young people going to congested indoor and outdoor events without masks, specifically blaming graduation parties. Gimenez also attributed the uptick to street protests, echoing comments he made on CBS’s “Face the Nation” on Sunday, although the cities where the biggest protests took place — Minneapolis, New York and Washington, D.C. —saw no comparable spike. “We can tamp down the spread if everyone follows the rules, wears masks and stays at least six feet apart from others,” Gimenez said. “I am counting on you, our 2.8 million residents, to stop the spread so that we can get back to opening our economy.”
‘No shirts, no shoes, no mask — no service’: Gov. toughens COVID-19 requirements ⋆ Businesses will now be required to deny service to people who don’t wear masks indoors, with limited exceptions for individuals and houses of worship, according to an executive order signed Friday by Gov. Gretchen Whitmer. She summed up the policy in her order as: “No shirts, no shoes, no mask — no service.” Michigan has seen an uptick in COVID-19 cases in recent weeks. The order goes into effect immediately for individuals andat 12:01 a.m. Monday for businesses in order to stop the spread of the disease. Masks also are now required for people in crowded outdoor spaces, in light of recent congregations like the Diamond Lake beach party that made national news. Michigan has almost 68,000 cases and more than 6,000 COVID-19 deaths. “The heroes on the front lines of this crisis have gone hours without taking their masks off every day – doctors, nurses, child care workers, grocery store workers. We owe it to them to wear our masks when we’re on a trip to the grocery store or pharmacy,” said Whitmer. “Masks can reduce the chance of spreading COVID-19 by about 70%. By wearing masks, we can save lives and protect our family, friends, and neighbors from the spread of COVID-19. And by wearing masks now, we can put our state in a stronger position so our kids can return to school safely in the fall. For the sake of your loved ones, let’s all mask up, Michigan.”
New Jersey growers refuse to test migrant farm workers for COVID-19 - As many as 10,000 migrant workers have come to New Jersey during the past few weeks to pick blueberries and pack them for sale. Many of these workers have arrived after picking fruit under unsafe conditions in Florida, Georgia, North Carolina, and other states where the number of novel coronavirus infections is increasing. But a growing number of New Jersey farms are refusing to allow the seasonal workers they have hired to be tested for the virus. Driven by the demands of creditors, agribusinesses and supermarket chains to quickly harvest the crops, this indifference to the lives of migrant workers will only help spread the coronavirus again in New Jersey.Agriculture is the third-largest industry in New Jersey. The 2017 Census of Agriculture found that the state had 9,883 farms, which was 800 farms more than in the 2012 census. The value of New Jersey’s overall agricultural products was almost $1.1 billion in 2017, an increase from approximately $1 billion in 2012. About 9,000 acres of blueberries were harvested in New Jersey in 2018. These acres yielded 44 million pounds of blueberries, representing a value of $62.4 million. Approximately 80 percent of New Jersey’s blueberries are grown on 56 larger farms in Atlantic County. In May, the state’s Department of Health introduced a program under which federally qualified health centers (FQHCs) would, at no charge to growers, test the migrant workers who harvest fruits and vegetables. But the department made participation in this program voluntary. By refusing to divulge the number of growers who have refused testing, as well as their locations, the department is shielding these growers from public outrage.
Atlanta Mayor Announces Positive COVID Test Hours After Governor Declares State Of Emergency --Hours after Kemp declared a state of emergency, Atlanta Mayor Keisha Lance Bottoms announced over Twitter that she has COVID-19.COVID-19 has literally hit home. I have had NO symptoms and have tested positive. — Keisha Lance Bottoms (@KeishaBottoms) July 6, 2020 * * * Georgia governor Brian Kemp (R) has declared a state of emergency and authorized the deployment of 1,000 National Guard troops due to a sharp increase in violent crime and property destruction in the city of Atlanta. Five people were killed in shootings over the Fourth of July weekend, including an 8-year-old girl who was shot dead inside a car during a BLM protest. 30 more were wounded over the holiday weekend. "Peaceful protests were hijacked by criminals with a dangerous, destructive agenda. Now, innocent Georgians are being targeted, shot, and left for dead," said Kemp. who threatened on Sunday to "take Action" if Atlanta Mayor Keisha Lance Bottoms couldn't control the unrest, according to AJC. 'Georgia has seen violent protests, looting and violence since the deaths of George Floyd in Minneapolis, and Rayshard Brooks at an Atlanta drive-thru. In late May, rioters vandalized CNN's headquarters, broke into the College Football Hall of Fame and looted it, and started fires throughout the city.
Atlanta mayor rolls back city's reopening: 'Georgia reopened in a reckless manner' -- Atlanta Mayor Keisha Lance Bottoms (D) announced Friday she’s rolling back her city’s reopening, citing concerns over an increase in coronavirus cases in Georgia.Bottoms said in a statement that she’s bringing Atlanta back to the reopening’s first phase, mandating people to wear masks in public and urging them to frequently wash their hands and stay home except for essential trips. It also recommends businesses continue teleworking and conduct frequent cleanings of public and “high touch” areas.Nonessential city facilities will remain closed.“Based upon the surge of COVID-19 cases and other data trends, pursuant to the recommendations of our Reopening Advisory Committee, Atlanta will return to Phase I of our reopening plan,” said Bottoms. “Georgia reopened in a reckless manner and the people of our city and state are suffering the consequences.”The rollback comes as Georgia sees an alarming spike in COVID-19 cases, setting a record of nearly 5,000 new cases Friday alone. Bottoms’s move clashes with guidance from Gov. Brian Kemp (R), who has advocated for a more aggressive reopening approach and asked cities not to mandate mask-wearing. “Atlanta Mayor @KeishaBottoms' action today is merely guidance - both non-binding and legally unenforceable. As clearly stated in my executive orders, no local action can be more or less restrictive, and that rule applies statewide,” Kemp said in a swipe at Bottoms.
GOP state lawmaker says he would like 'to see more people' get coronavirus to build herd immunity - Alabama state Sen. Del Marsh (R) this week told reporters that he would “like to see more people” contract COVID-19 in order to create herd immunity in the state.Marsh was asked about Alabama setting a new daily record for COVID-19 cases after the state reported 2,164 cases on Thursday.“I’m not as concerned as much as the number of cases — and in fact, quite honestly — I want to see more people, because we start reaching an immunity as more people have it and get through it,” Marsh said.“I don’t want any deaths, as few as possible in the state, I get it. So those people who are susceptible to the disease, especially more serious, those with pre-existing conditions, elderly population, those folks, we need to do all we can to protect them. But I’m not concerned.” Marsh added that he wants “to make sure everybody can receive care.” WSFA reporter Lydia Nusbaum shared footage of the exchange on Twitter. Marsh says he wants to see more people with COVID-19 because "we start reaching an immunity as more people have it and get through it." pic.twitter.com/JH43IJCdUw — Lydia Nusbaum (@LydiaNusbaum) July 9, 2020Marsh, who serves as president pro tempore of the Alabama state Senate as well as on Alabama Gov. Kay Ivey’s (R) COVID-19 task force, appeared to be referring to herd immunity, which occurs when a large amount of the population becomes immune to a virus after being infected and recovering or through inoculation.The approach has been used by Sweden amid the ongoing coronavirus pandemic. The country has kept many businesses open and encouraged social distancing and other health measures to prevent the spread of the virus. However, thousands more people have died in the country than in neighboring countries that imposed stricter lockdowns, The New York Times reported. Sweden has also suffered a higher death rate than other countries.
Parts of U.S. scramble to shut down as country breaks another daily coronavirus record - The United States saw another record-breaking day on Friday with 66,600 new coronavirus cases, according to data from Johns Hopkins University. That's up from the previous daily record of 63,200 cases on Thursday and marks the third time in less than a week the country has hit an all-time high for new, confirmed infections. The U.S. has now seen over 3.18 million COVID-19 cases and more than 134,000 deaths due to the virus. Parts of the country are scrambling to shut down once again as the virus spreads, Michael George reported for "CBS This Morning: Saturday." Bars, restaurants and the young made their way into the crosshairs of governors in southern states where the virus is surging.South Carolina Governor Henry McMaster issued an executive order Friday to prohibit the sale of alcoholic beverages at bars and restaurants in the state after 11 p.m. It goes into effect on Saturday, affecting about 8,000 locations. "Many of the young people in our state as well as around the country seem not to be taking the virus as seriously as they should," McMaster said."We know that young adults who are rapidly contracting the virus and spreading it into our communities frequently congregate in late-night atmospheres which simply are not conducive to stopping its continued transmission," said McMaster. At a Kentucky test site, bartender Michael Whitler knows what can happen after 11 p.m."Once it gets too late at night, it's just unbelievable," said Whitler. "It's been pretty nuts," he said. "Enough to make you want to go get tested."In Tennessee, Shelby County restaurants require customers to fork over their contact information before they're seated.
Judge halts federal execution, citing coronavirus concerns - A judge halted the first federal execution set to take place in nearly 20 years over concerns regarding the coronavirus pandemic. Chief District Judge Jane Magnus-Stinson of the Southern District of Indiana Friday stayed the execution of Daniel Lee. Lee, 47, had been sentenced to death for the 1996 murders of gun dealer William Mueller, his wife, Nancy, and her 8-year-old daughter, Sarah Powell. Magnus-Stinson said she was putting the execution on hold over concerns from the victims’ family members over the coronavirus, which has spread like wildfire throughout prisons across the country. The judge cited Earlene Branch Peterson in her ruling; Peterson, whose daughter and granddaughter were killed by Lee, said she wants to be present for the execution. “The harm to Ms. Peterson, for example, is being forced to choose whether being present for the execution of a man responsible for the death of her daughter and granddaughter is worth defying her doctor’s orders and risking her own life,” Magnus-Stinson wrote. The execution was to be the first one in almost two decades after the Justice Department announced it was resuming capital punishment. Magnus-Stinson’s stay will delay the punishment until such time as there is no longer a national health emergency.
California to release another 8,000 inmates early due to coronavirus pandemic - California officials announced Friday that an additional 8,000 inmates would be released early from state prisons to prevent the spread of the novel coronavirus among both inmates and staff. “We’re glad the Governor is taking action to release more people. This is absolutely critical for the health and safety of every Californian. Too many people are incarcerated for too long in facilities that spread poor health. Supporting the health and safety of all Californians means releasing people unnecessarily incarcerated and transforming our justice system,” Californians for Safety and Justice Executive Director Jay Jordan said in a statement. The state Department of Corrections had already reduced the inmate population by 10,000 to help prevent the spread of coronavirus. To be eligible for release, inmates must have a year or less time to serve in their sentences, and must not be serving for domestic violence or a violent crime. They also must have no current or prior sentences that require a sex offender registration, and must not be considered at high risk for violence. Those over 30 years of age who are eligible will immediately be considered, while those ages 29 and under will have their release considered on a case-by-case basis. Inmates who are "high risk" such as those over 65 years old with chronic health conditions may also be considered for release.
Video shows Black man pinned to tree in what he calls 'attempted lynching' at Indiana lake - Indiana authorities are investigating a report by a Black man who said he was pinned to a tree by a group of white men, an attack he likened to an “attempted lynching.” Parts of the incident were captured on video by one of the man’s friends. In a post to Facebook, Vauhxx Booker wrote, “I don’t want to recount this, but I was almost the victim of an attempted lynching.” He went on: “On July 4th evening others and me were victims of what I would describe as a hate crime. I was attacked by five white men [with Confederate flags] who literally threatened to lynch me in front of numerous witnesses.” Booker said he and his friends were visiting a public beach on Lake Monroe outside Bloomington, Ind., to join a gathering when a group of white men said they were on private property and began following them. Some of the men became belligerent, he said. When he approached “sober seeming group members” to “see if we could smooth things over a bit,” the confrontation escalated. Video posted to social media shows a group of white men holding Booker to a tree as his friends plead with them to release him. In the video, one man shouts at the camera, “You happy about this, you nappy-headed bitch? You and your five white friends?” As Booker’s friends leave, one of the men follows, shouting, “Those Black boys want to start it all.” In his Facebook post, Booker claimed there were shouts of “get a noose” and “white power.” He said he was released after several white strangers intervened. He said he suffered bruises, abrasions and a “minor concussion” in the incident. There had been no arrests as of Monday afternoon, but Katharine Liell, a Bloomington attorney representing Booker, told Yahoo News she expected some to come. She criticized officers of the Indiana Department of Natural Resources (DNR) who responded to the scene but declined to interview witnesses who offered to share video of Booker being held against the tree. Liell said she was concerned that the officers had not relayed the full picture to prosecutors.
"We're In Your House. Let's Go." - Black Armed Protesters Challenge White Militia At Confederate Monument - The group, known as Not F**king Around Coalition (NFAC), marched through Stone Mountain Park near Atlanta on Independence Day, calling out white militias, along with protesting one of the largest Confederate monuments in the country, reported Reuters. Hundreds of heavily armed NFAC members, predominantly African Americans, were seen dressed in black combat gear with military-style rifles - quietly marched up a road in the park in two columns. One clip shows what appears to be an NFAC leader directing a right and left column of heavily armed members up a road. Armed Black Americans showed up DEEP in Stone Mountain #Georgia today for the #4thofjuly Another video shows the group coming to a stop on the road with an unidentified man shouting into a loudspeaker challenging white militias. "I don't see no white militia," he declared. "We're here. Where ... you at? We're in your house. Let's go." The Not Fucking Around Coalition (NFAC) militia in Stone Mountain, Georgia called out all rednecks and white supremacist militias "We here, where the fuck you at?". (@VlanciPictures) #BlackLivesMatter pic.twitter.com/B76Ab6WUSF John Bankhead, a spokesman for the Stone Mountain Memorial Association, said NFAC's demonstration was peaceful and orderly: "It's a public park, a state park. We have these protests on both sides of the issue from time to time. We respect people's First Amendment right," Bankhead told WXIA-TV. "We understand the sensitivities of the issue here at the park ... so we respect that and allow them to come in as long as it's peaceful, which it has been," he said. The park had just opened after being closed for virus-related issues. Around Saturday afternoon, park officials allowed the group to enter the park from the West Gate. They marched to the lawn area of the park, in view of the confederate memorial carved into granite on Stone Mountain.
After Years of Underfunding, Now Public School Teachers Are Supposed to Save the Nation’s Economy? - - Yves Smith - In the early months of the coronavirus outbreak, the nation relied on health care and grocery store workers for survival, but that labor force couldn’t possibly turn around a crashing economy. Then, conservative governors across the nation, particularly in the South and West, thought bringing back the leisure and hospitality workforce would revive business and commerce. That didn’t turn out so well. So now a broad range of policy makers and political actors are turning to school teachers to get the economy humming again. In May, as the pandemic was just about to explode from hotspots in the Northeast to a nationwide contagion, Forbes contributor Nick Morrison argued, “Until children go back to school, parents will have to remain at home looking after them, and it will be impossible to fully restart the economy.” New York Times op-ed writer Spencer Bokat-Lindell, marveling at how European countries were able to reopen schools, wrote, “Restarting classes is essential not only to parents’ mental health and children’s development, but also to reviving the economy.” “We cannot have a functioning economy, or any hope of reducing economic inequalities, without a functioning educational system,” wrote Paul Starr for the American Prospect in June. “A consensus is emerging among top economists and business leaders,” reported Heather Long for the Washington Post in July, “that getting kids back into day cares and schools is critical to getting the economy back to normal.” She quoted chief executive of JPMorgan Chase Jamie Dimon saying, “If schools don’t open, a lot of people can’t go back to work.” At a June hearing on Capitol Hill, senators and federal health officials called for “schools to resume some form of normal operations in the upcoming academic year, due in part to concerns about a weakened economy and the long-term welfare of children and families,” according to Education Week. White House counselor Kellyanne Conway declared, “[W]e know that opening our schools and getting our children back to their normal routines and their structural support is really the key… I think it’s the essential nervous system to this nation, and then people will be able to go back to work,” the Washington Post reported. Republicans in the U.S. House of Representatives have submitted the Reopen Our Schools Act that would prohibit Secretary of Education Betsy DeVos from providing funding to public schools and universities unless they return to in-person instruction, Fox News reported. A first cousin of these calls to reopen schools for the sake of the economy is the genre of commentary demanding school buildings be open full-time for the sake of parents who want to go to work after the economy fully reopens (if that ever happens).
Trump threatens to withhold funding to schools if they don't reopen this fall– President Donald Trump put the nation's schools on notice Wednesday that he may cut off their funding if they don't reopen their classrooms this fall. One day after he promised to put "a lot of pressure" on schools to reopen, Trump served up a new threat on Twitter. "In Germany, Denmark, Norway, Sweden and many other countries, SCHOOLS ARE OPEN WITH NO PROBLEMS," he wrote. "The Dems think it would be bad for them politically if U.S. schools open before the November Election, but is important for the children & families. May cut off funding if not open!" Trump issued the warning as the White House Coronavirus Task Force was preparing to meet at the U.S. Department of Education headquarters in Washington. Trump's push to open schools comes amid a nationwide debate over whether children should return to the classroom amid the coronavirus pandemic. It also echoes Trump's calls in the spring for states to reopen their local economies. Many states with Republican governors did so, but places like Texas and Florida are now seeing spikes in COVID cases. On Tuesday, the president and first lady Melania Trump staged a White House event designed to push local school districts to reopen in the fall. The event provided a forum for teachers, administrators, students and parents to discuss "best practices" for safely reopening schools around the country. "Everybody wants it,” Trump said. “The moms want it. The dads want it. The kids want it. It’s time to do it.” The first lady urged parents, teachers and schools to inform children about the Centers for Disease Control and Prevention's guidelines on coronavirus at the start of the school year and to implement those guidelines when appropriate.
Democratic Governor Gretchen Whitmer pushes unsafe reopening of Michigan schools -Last week, Michigan Governor Gretchen Whitmer released her “Return to School Roadmap,” which demands the reopening of schools even as COVID-19 cases are spiking in the state and expected to surge again in the fall. The Democratic governor’s program largely adopts state Republicans’ reckless “Return to Learn” outline released a week earlier.Whitmer also released the outline of a budget deal with the Republican-led legislature to fill a $3.2 billion budget shortfall for the fiscal year that just ended through deep cuts to state employees and school districts. The state still faces an overall $3 billion shortfall for the 2020–21 fiscal year, not including additional funding needed for vital pandemic containment and protection measures. For the 2019–20 fiscal year, the state deal includes $512 million in funding from the CARES Act to cover coronavirus protection measures, far lower than the estimated $1 billion that is required. It entails $256 million in direct cuts to state funding for K-12 public education, which translates to average cuts of $664 from the $8,111 total per-pupil spending across the state. Additionally, Michigan schools face a massive $1.2 billion shortfall for the coming school year, which translates to another $700 cut in per-pupil spending, bringing the combined total for both years to 16.8 percent in cuts, a devastating blow to public education.Michigan is currently experiencing a spike in COVID-19 cases due to the premature, bipartisan back-to-work drive. Michigan is experiencing a 59.7 percent increase in new cases from two weeks ago. As with much of the country for which studies show an enormous undercounting of COVID-19 deaths, the Michigan Department of Health and Human Services reports 3,346 deaths from the virus in April, but 4,907 more total deaths than in April 2019. This 19.5 percent jump in non-COVID identified deaths likely include many miscategorized as, among others, pneumonia and the seasonal flu, which showed a jump of 26 percent from April 2019 to April 2020. Nevertheless, stating that she is “optimistic that we will return to in-person learning in the fall,” Whitmer is making it clear that she is determined to reopen schools even as cases spike and schools will likely serve as new and powerful vectors for community transmission of the virus.
Florida orders schools to reopen as COVID-19 cases surge - On Monday, the Florida Department of Education issued an emergency order requiring school districts to reopen all “brick and mortar schools at least five days per week for all students” in August in order to facilitate “a return to Florida hitting its full economic stride.” The order, which specifically complains that school closures “limit many parents and guardians from returning to work,” is part of the murderous back-to-work campaign that has led to a spike in COVID-19 cases across Florida and dozens of other states. The number of new cases in Florida has surged from an average of 700 each day at the beginning of June to a seven-day moving average of 8,587 daily cases on July 6. With the number of cases continuing to escalate, it is certain that COVID-19 will be present throughout the school system next month and face-to-face instruction would become a significant vector for further transmission. Teachers, including those nearing retirement or with health vulnerabilities, will almost certainly contract the deadly disease, while countless students will bring it home to their parents and grandparents. The order immediately sparked outrage and protests from teachers and parents across the state. Teachers in Orange County, which includes Orlando, organized a protest caravan that blocked traffic. On Facebook, an Orange County teacher, Mia, wrote: “We the People…We can’t let the Governor and the head of the DOE make these decisions without the input of the Teachers. We’re the ones risking our lives. We need to make our voices heard and stand together. This is literally life and death.” A parent, Angela, added, “I'm a Mom and at risk due to an autoimmune issue...why for political reasons am I being forced to expose my child, her teachers, our families and communities to a virus that is not under control. Hell No! We won’t go!” The Florida order comes as part of a nationwide push to end lockdown measures, “reopen” the economy and force workers into unsafe conditions. . During the nearly four months since Florida schools were closed—when there were only 217 confirmed cases acknowledged in the state—no effective measures were implemented to contain or mitigate the disease, such as contact tracing. Now that there are 1,000 times as many confirmed cases in the state, they are trying to open up schools. The Trump administration and Governor DeSantis are so adamant about getting children physically into school regardless of health cost or educational value, because they need schools as day care centers in order to push parents back to work. Safer, more effective distance learning would require that families take care of children during the day.
Teachers "Scared" After All Florida Schools Ordered To Reopen In August - In what is sure to be discussed with some "blood on their hands" headline in the next 24 hour news cycle, Fox35 Orlando reports that Education Commissioner Richard Corcoran on Monday ordered public schools to reopen in August and offer “the full panoply of services” to students and families. The full Emergency Order says that all public schools will be required to reopen in August for at least five days a week and to provide the full array of services required by law, including in-person instruction and services for students with special needs. “Required services must be provided to students from low-income families, students of migrant workers, students who are homeless, students with disabilities, students in foster care, students who are English-language learners, and other vulnerable populations,” the order says. Corcoran's order also instructs school districts to follow the advice of state and local health officials as well as executive orders issued by Gov. Ron DeSantis. Read the full emergency order below: Of course, as one would imagine, teachers are concerned. According to Florida Education Association President Fedrick Ingram.“It’s clear in commu nications with our members that educators are scared. They don’t trust politicians to make sure things are safe --- rightly so, with the record-breaking number of cases being reported,” Ingram told the News Service of Florida in an email Monday.“The governor is trying to brush that off.” The average age for those testing positive for COVID-19 in Florida is now only 21, Gov. Ron DeSantis said Monday in an update in The Villages. He said the younger age of those testing positive is contributing to lower mortality rates from the virus across the state. The fatality rate in Florida is currently less than 2%.
CDC director: Keeping schools closed poses greater health threat to children than reopening - Centers for Disease Control and Prevention (CDC) Director Robert Redfield said Thursday that the health risks of keeping schools closed are greater than those of opening them, amid a push by President Trump to have students in classrooms this fall. "I'm of the point of view as a public health leader in this nation, that having the schools actually closed is a greater public health threat to the children than having the schools reopen," Redfield told The Hill's Steve Clemons. The comments in favor of reopening schools from Redfield come as Trump presses for schools to reopen. On Wednesday, the president criticized the CDC in a tweet for "their very tough & expensive guidelines for opening schools," raising fears about the politicization of the country's leading public health agency. Redfield said in Thursday's interview, as he did earlier in the day on ABC, that the CDC is not changing its existing guidelines for schools, but will be issuing additional guidance to provide more clarity. He said that guidance will address the role of parents and the importance of facial coverings in schools. "I think really people underestimate the public health consequences of having the schools closed on the kids," Redfield said at an event hosted by The Hill and sponsored by the Biosimilars Forum. "I'm confident we can open these schools safely, work in partnership with the local jurisdictions." The American Academy of Pediatrics has also called for students to return to classrooms, citing the educational and social harms to children of being away from school for a prolonged period of time. But education groups like the American Association of School Administrators and the American Federation of Teachers say much more funding is needed to safely reopen schools, and that districts are already facing severe budget shortfalls due to the economic downturn sparked by the coronavirus. Redfield demurred when asked about the need for more funding on Thursday. "I think we've got to see the plans that the different schools and jurisdictions come up with," he said.
Trump economic adviser says returning to school amid pandemic is 'not that hard’ - White House economic adviser Larry Kudlow told reporters Friday that it was important for schools to reopen in the fall despite risks from the novel coronavirus, saying safely bringing students back is "not that hard." "The president has been very vocal about going back to school. And I would add to that, as I said, all these fancy colleges and universities, of which I went to one," Kudlow told reporters. "They should get with the drill, you know? Put the guys in classrooms and let them learn. Or, God knows what they're teaching, but whatever. I'll put it in good faith." "Just go back to school, we can do that," Kudlow continued. "And you know, you can social distance, you can get your temperature taken, you can be tested, you can have distancing — come on, it's not that hard." The safety of school reopenings has been at the center of national debate as the start of the school year draws closer and the nation sees climbing cases of COVID-19. President Trump has pushed for students to go back to school, and this week threatened to cut funding of those that don't fully reopen this fall. He also this week criticized the Centers for Disease Control and Prevention's (CDC) guidelines on reopening schools, calling them "very tough and expensive." Vice President Pence later announced the CDC was rolling out more guidance on the matter, following Trump's criticisms. CDC Director Robert Redfield also said Thursday that the health risks of keeping schools closed are greater than those of opening them. "I'm of the point of view as a public health leader in this nation, that having the schools actually closed is a greater public health threat to the children than having the schools reopen," Redfield told The Hill. Meanwhile, some teachers and teachers' groups are worried about returning in the fall. The president of the nation’s largest teachers union hit Trump this week for calling for schools to resume in-person classes this fall, saying reopening cannot take place without guaranteeing the safety of students and staff. “We see what happens when they let bars open prematurely,” National Education Association President Lily Eskelsen Garcia said. “This isn’t a bar. We’re talking about second graders. I had 39 sixth graders one year in my class. I double-dog dare Donald Trump to sit in a class of 39 sixth graders and breathe that air without any preparation for how we’re going to bring our kids back safely.”
Doctors, teachers reject Trump's pressure to reopen U.S. schools - (Reuters) - Groups representing the nation’s doctors, teachers and top school officials on Friday pushed back against pressure from President Donald Trump to fully reopen U.S. schools despite a surge in coronavirus cases, saying science must guide the decisions. “Public health agencies must make recommendations based on evidence, not politics,” the American Academy of Pediatrics, two national teachers’ unions and a school superintendents’ group said, following days of threats by Trump to choke off federal education funds if schools do not open their doors for the upcoming academic year. “We should leave it to health experts to tell us when the time is best to open up school buildings, and listen to educators and administrators to shape how we do it,” AAP, the American Federation of Teachers, the National Education Association and the School Superintendents Association said in a joint statement. Their call was echoed by two medical groups - the Infectious Diseases Society of America and the HIV Medicine Association. Trump ramped up his threat on Friday, saying the Treasury Department would re-examine schools’ tax-exempt status and their federal funding. The Republican president this week also moved to eject foreign students attending universities in the United States if their schools do not offer in-person classes, prompting at least two lawsuits. His push to reopen schools comes as cases of the novel coronavirus surge in some of the country’s most populous areas, prompting some state and local authorities to roll back plans to relax restrictions. School administrators are weighing the risk of opening their buildings to students and staff as U.S. cases have topped 3 million this week. Some universities have announced online-only instruction plans, while others may change their calendars. New York City schools, the nation’s largest public school district, announced a hybrid plan mixing both on-site and online classes. Trump has accused Democrats of exploiting the pandemic for political gain by refusing to reopen schools and businesses to hurt the economy and his re-election prospects, even as health experts caution against easing restrictions too quickly. “Too many Universities and School Systems are about Radical Left Indoctrination, not Education,” he said in a Twitter post on Friday. “Therefore, I am telling the Treasury Department to re-examine their Tax-Exempt Status and/or Funding, which will be taken away if this Propaganda or Act Against Public Policy continues. Our children must be Educated, not Indoctrinated!” It was not immediately clear how Treasury could restrict funds, and the department could not be immediately reached for comment. Most primary and secondary school funding is local.
DeVos 'very seriously' considering withholding funding from schools that don't reopen - Education Secretary Betsy DeVos said Tuesday that she is “very seriously” considering withholding federal funding from schools that don’t reopen in the fall. "We are looking at this very seriously. This is a very serious issue across the country," DeVos told Fox News host Tucker Carlson. DeVos recently told state leaders on a conference call that plans to allow in-person activities only a few days a week were unacceptable, arguing that another semester of remote learning would hurt students. She told Carlson on Tuesday that fears of coronavirus transmission from public health officials was an example of “fearmongering.” "Kids have got to continue learning, and schools have got to open up," DeVos said. "There's got to be a concerted effort to address the needs of all kids, and adults who are fearmongering and making excuses simply have to stop doing it and turn their attention to what is right for students and for their families." However, critics of the Trump administration's threat said that if the government truly cares about children, they would readily give money to schools. "The federal government, if they were serious about this and cared about kids, wouldn't be threatening to withhold money," Arne Duncan, a former secretary of Education under former President Obama, said in a press call with reporters Wednesday. President Trump on Wednesday also threatened to cut off federal funding for schools if they do not resume in-person learning this fall and criticized the Centers for Disease Control and Prevention (CDC) for being too tough with its guidelines to aid that process. The existing CDC guidance, which is voluntary, emphasizes opening safely and that schools should dismiss classes for longer than two weeks only if there is “substantial” COVID-19 spread in their communities. The CDC is set to release another round of guidelines next week. According to the Congressional Research Service, public schools rely on local taxes for 90 percent of their funding. However, the Department of Education would be able to withhold the billions of dollars in stimulus funding allocated by Congress. The American Federation of Teachers launched an ad this week saying they require more funding in order to reopen schools safely.
Navy SEAL who oversaw bin Laden raid says America's biggest national security issue is the K-12 education system -- While some former US military leaders have had offered witty one-liners when asked which national security threat keeps them up at night, one former commander had an unconventional answer: "K-12 education." Retired Adm. William McRaven, a former US Navy SEAL commander and head of US Special Operations Command, said he was "the biggest fan" of the younger generation of Americans and that education in grade school played a broader role in national security. "When I was chancellor, I would have a lot of town hall meetings, or meetings with our alumni, and that question always came up," McRaven, who was chancellor of the University of Texas System, said at the Aspen Ideas Festival on June 29. "And they would always ask ... 'What's your No. 1 national security issue?'" McRaven, who stepped down from overseeing one of the largest US school systems in 2018, said he stood by that thinking. "It was because I recognized that unless we are giving opportunity and a quality education to the young men and women in the United States, then we won't have the right people to be able to make the right decisions about our national security," McRaven said. "They won't have an understanding of different cultures. They won't have an understand of different ideas. They won't be critical thinkers." "So we have got to have an education system within the United States that really does teach and educate young men and women to think critically, to look outside their kind of small microcosm because if we don't develop those great folks, then our national security in the long run may be in jeopardy," McRaven added. McRaven recommended the US develop a "culture of education" within communities, particular those where residents believe they cannot afford an education or where they think their children aren't "smart enough." "There is a school out there for every man and woman in the United States — I don't care what your educational capacity is, what you think it is," McRaven said. "There is a school that will help you matriculate to the point of getting a degree."
Foreign Students On Visas Must Leave USA If Schools Go Online-Only- ICE - International students in the US whose colleges switch to online-only classes this fall will have to leave the country or transfer to another school, according to a Monday afternoon order by Immigration and Customs Enforcement (ICE). Foreign nationals participating in the Student and Exchange Visitor Program (SEVP) had previously been allowed to take their spring and summer 2020 courses online due to the COVID-19 pandemic.If affected students don't transfer to in-person programs and remain in the US, they will be subject to "immigration consequences including, but not limited to, the initiation of removal proceedings." The move comes as colleges across the country - including Harvard, announce that undergraduate classes for the 2020-21 academic year will be held online. "Students will learn remotely, whether or not they live on campus," wrote Harvard officials. And now, with colleges standing to lose thousands of immigrant students, the pressure is on to resume in-person classes this fall.
ICE threatens international students with deportation unless their college resumes in-person classes --Immigration and Customs Enforcement (ICE) announced Monday that international students holding F-1 visas will not be allowed to remain in the country if their college fails to hold in-person classes this fall. The F-1 visa is the most popular study visa in the US. Last year, there were 1,095,299 studying in the US, the vast majority of whom reside in the country on F-1 student visas. In 2019 alone, 388,839 F-1 visas were issued. The ICE press release states that “F-1 and M-1 students attending schools operating entirely online may not take a full course load and remain in the United States.” It went on to disclose that new visas for incoming international first-year students will not be granted and that all students currently in possession of visas who are not attending in-person classes will be denied entry at the border. The statement goes on to note that all active students currently in the US enrolled in such programs must, “depart the country or take other measures, such as transferring to another school with in-person tuition.” The measure was undoubtedly meant to place pressure on colleges to pursue a reckless reopening of campuses in the fall. The announcement from ICE came only hours after Trump tweeted, in all caps, “SCHOOLS MUST OPEN IN THE FALL!!!” If the measure is not reversed and colleges do not reopen in-person classes, thousands of international students will be compelled to unenroll in universities across the country. Many US colleges, whose finances have become increasingly reliant on international student tuition in recent years, are now facing a choice between a deadly reopening of campus and financial collapse. In practice, the Trump administration is holding colleges hostage, with the release fee being the lives of students and their families. The rule change is a reversion to a pre-existing regulation originally meant to prevent students from using cheap online classes as a method of coming to and staying in the US. However, the regulation was suspended following the shift to online learning in the midst of the COVID-19 pandemic. ICE has now reinstated the pre-existing regulation, in order to force international students out of the country.
Harvard, MIT seek temporary halt to Trump administration rule on international students - (Reuters) - Harvard University and Massachusetts Institute of Technology sued the Trump administration on Wednesday, seeking to block a new rule that would bar foreign students from remaining in the United States if their universities move all courses online due to the coronavirus pandemic. The two universities filed a lawsuit in federal court in Boston asking for an emergency temporary restraining order on the new directive issued by the government on Monday. "We will pursue this case vigorously so that our international students - and international students at institutions across the country - can continue their studies without the threat of deportation," Harvard President Lawrence Bacow wrote in a statement addressed to the Harvard community. The lawsuit filed by Harvard and MIT, two of the most elite U.S. universities, is the first to challenge the order that could force tens of thousands of foreign students to leave the country if their schools switch fully to remote learning. Harvard had announced it would hold all classes online in the coming fall term. [L1N2EE0CA] The Trump administration announcement blindsided academic institutions grappling with the logistical challenges of safely resuming classes as the coronavirus pandemic continues unabated around the world, and surges in the United States, especially among young people. There are more than a million foreign students at U.S. colleges and universities, and many schools depend on revenue from foreign students, who often pay full tuition.
Harvard is keeping classes online this fall, placing it among the 8% of US colleges planning to do so. Here's the list so far.- After a semester of remote courses and online graduations, some colleges and universities are deciding not to return for in-person classes this fall.Harvard announced Monday that all its undergraduate courses will be online for the entire academic year, through spring 2021. The university will allow up to 40% of students to live on campus in the fall, but they must agree to get tested for COVID-19 every three days.Six of Harvard's graduate and professional schools, including Harvard Medical School, have also announced that their students will take classes online in fall.California State University, the largest four-year public university system in the US, has cancelled in-person classes for the fall semester at all 23 of its campuses. However, just 8% of colleges are taking the online approach to fall, according to an analysis by The Chronicle of Higher Education. Most schools — 60% — are planning for in-person classes, while others are considering a hybrid approach, with some classes online and some in-person, or with blended classes. The virus could easily spread between students and professors if they meet face-to-face in campus classrooms. "Every way we approach the question of whether universities can resume on-campus classes, basic epidemiology shows there is no way to 'safely' reopen by the fall semester," Shweta Bansal, Colin Carlson and John Kraemer — three health and biology professors at Georgetown University — wrote in The Washington Post. "If you were to design a place to make sure that everyone gets the virus, it would look like a nursing home or a campus," Paul LeBlanc, the president of Southern New Hampshire University, told The Atlantic. Here are the colleges and universities that plan to remain online for the fall 2020 semester:
Yale University to open campus without sophomores in fall and without freshmen in spring - Yale University will reopen in the fall without sophomores living on campus and then will be open in the spring without freshmen living on campus in an attempt to slow the spread of coronavirus, Yale's president and provost announced in a letter to the community Wednesday.Juniors and seniors can choose to live in on-campus housing both semesters. The decision will allow the university to lower its student population living in the campus colleges to about 60% of normal, President Peter Salovey and Provost Scott Strobel said.In addition, most undergraduate courses will be taught remotely so all students, whether living on or off campus, can attend. A small number of classes, such as labs or studio work, will take place in person in socially distanced settings, the university said.Undergraduate students living on or off campus will be required to be tested weekly. As per rules in Connecticut, where Yale is located, all students arriving from abroad or from states with high Covid-19 transmission rates will be required to quarantine for 14 days. And overall, all students will be asked to wear face masks and social distance."These decisions are possible because of the continued decline in community transmission of COVID-19 in Connecticut, the creation of a university-wide COVID-19 screening program, and the implementation of other health and safety actions," Salovey and Strobel wrote.Yale's decision comes as schools and colleges across the country are grappling with how to reopen safely while still mitigating the spread of a virus that thrives in places with close contact. Some colleges have made plans to bring students back but with delayed starts to classes, shortened semesters and attempts to reduce travel. For K-12 schools, the American Academy of Pediatrics is pushing for students to be physically present in classrooms rather than continue in remote learning for the sake of their well-being. The group, which represents and guides pediatricians across the country, updated its back-to-school recommendations to say evidence shows the academic, mental and physical benefits of in-person learning outweigh the risks from the coronavirus.
Harvard and Princeton announce plans to bring back students for the fall semester – Harvard and Princeton universities will bring back students to campus this fall, but not everyone will return at the same time. The pandemic has forced universities to formulate plans to keep educators and students safe from Covid-19. Harvard University plans to bring up to 40% of undergraduates back to campus for the fall semester, including all first-year students, the school announced on Monday. In addition to first-year students, Harvard will allow students who need to be on campus "to progress academically" to return as well.Princeton University will welcome undergraduate students back to campus in the fall with a reduced capacity, the school announced on Monday. First-year students and juniors will be allowed to return to campus for the fall semester, while sophomores and seniors will be welcomed back in the spring semester.Princeton is also offering 10% discounted tuition for the school year. Both universities will emphasize online instructions. At Harvard, all course instruction will be delivered online, including for students living on campus. Princeton said that most academic instruction will remain online."Over the last two months, my colleagues and I have been studying the pandemic and identifying measures we can take to accommodate students on campus," Princeton President Christopher L. Eisgruber said in his message to the university community. "Based on the information now available to us, we believe Princeton will be able to offer all of our undergraduate students at least one semester of on-campus education this academic year, but we will need to do much of our teaching online and remotely."Testing will be required for everyone returning to campus, both universities announced, with regular testing throughout the semester. Harvard will implement social distancing and dedicated quarantine space in dorms. Every person on Princeton's campus, including visitors, will be required to wear a face covering when inside, except in a dormitory or apartment. Princeton undergraduate students returning to campus must sign what the university is calling a "social contract" -- which outlines their commitment to following the health and safety protocols designed by the school.
Coronavirus roundup: Surge in cases forces universities to change their fall plans - Two universities that were planning on in-person fall terms are now backing away from those plans due to the rise in coronavirus cases, and a third university is shifting its second summer session courses online. Meanwhile, Florida State University clarified that employees can care for children while working from home after facing a backlash over a memo it sent June 26 suggesting employees working remotely would need to secure childcare by Aug. 7. Here's an update on some of the latest news developments regarding the impact of COVID-19 on higher education:
- The University of Southern California announced last week that undergraduate students will take all or most of their courses online, reversing course from earlier plans to invite undergraduates back to campus for an in-person fall semester. In announcing the decision, USC administrators cited “an alarming spike in coronavirus cases [in Los Angeles], making it clear we need to dramatically reduce our on-campus density and all indoor activities for the fall semester.”
- Across the country, in Virginia, Hampton University also cited the rise in coronavirus cases in announcing it was changing its plans to reopen the campus in favor of a remote-only fall. Hampton president William R. Harvey said the “COVID-19 situation has changed drastically,” forcing the university to change its plans. “Not reopening the campus to students will minimize the risk of the spread of COVID-19 on campus and in the Hampton, Virginia community. It is our hope that this will also allow sufficient time for the threat of the virus to diminish,” Harvey wrote in a July 1 message.
- Texas State University said it would shift almost all of the classes for its second summer session online, with the only classes that will remain face-to-face being those “that require a face-to-face component for licensure or degree requirements.” Texas State is still planning a return to face-to-face instruction and full campus services for the fall term, which is scheduled to start Aug. 24.
- Florida State University has clarified that employees can continue to care for children while working remotely, backing away from a memo it previously sent on June 26 saying otherwise. The previous memo, which said that employees would no longer be able to care for children while working remotely starting on Aug. 7, was widely criticized on social media and received widespread media attention, including an article in People magazine.
Universities in a Mess Over Upcoming Year; Some Reopenings Meeting Fierce Resistance - Yves Smith - US universities and colleges are already in serious financial trouble due to coronavirus, and the coming fall season won’t do much to improve matters. Schools were already all over the map about what they are doing for the coming school year. And some of them are changing course midstream as infections rise in their state.It isn’t just that schools had to refund room and board fees for their aborted spring terms. Universities make about $50 billion from non-tuition charges, not just room and board but also renting out university space and tickets to sporting events. That has evaporated and is not coming back any time soon.Even at the campuses that say they are reopening, things will not go back to the old normal. Foreign students only account for 5.5% of the student population, but over the years, Chinese students have become the most heavily represented nationality and they pay full fees and tuition. Between travel restrictions, China-bashing, and high Covid-19 risks, foreign enrollment is expected to plunge, and that will have a disproportionate impact on revenues.It isn’t clear whether it is possible to reopen a university safely, at least in an America which has done plenty to get coronavirus wrong and still has far too few people wearing masks. One academic has told me the administrators he has spoken to at several universities have admitted they see no way to reopen dorms safely, yet many are doing just that. Lowering density of occupancy would reduce but not eliminate risk.And that raises the question of safe for whom? The universities’ decisions appear to be driven by concerns about safety of their students and their faculty. The fate of support staff like cafeteria workers and dorm crews gets nary a mention. Nor does the safety of the communities in which they live, even when the school is tax exempt, appear to rate high, if at all. The lack of criticism from locals seems odd until you factor in the dependence of many communities like Charlottesville, VA on their school. Imagine the hostility if you took what would be perceived as a position opposing the survival of the biggest employer in town. Nevertheless, these reopenings, even ones on a more limited scale, are all superspreader events in the making, particularly since it will be impossible to regulate student behavior in student housing and on their free time. And the whole point of an on-campus experience is to get to know classmates. Hard to do that at a six foot remove.
Trump tells Treasury to review universities' tax exempt status - President Trump on Friday threatened the tax-exempt status of and funding for universities and colleges, claiming that “too many” schools are driven by “radical left indoctrination.” “Therefore, I am telling the Treasury Department to re-examine their Tax-Exempt Status and/or Funding, which will be taken away if this Propaganda or Act Against Public Policy continues,” Trump tweeted. “Our children must be Educated, not Indoctrinated!” Trump did not name specific institutions whose tax-exempt status he wants the Treasury Department to review. Most private and public colleges and universities are exempt from taxes because they qualify as 501(c)(3) organizations. It would fall to the IRS, a bureau of the Treasury Department, to conduct the review that Trump described. However, federal law prohibits the IRS from targeting groups for regulatory scrutiny “based on their ideological beliefs.” Trump’s latest remarks come amid his escalating battle over schools’ plans for learning during the coronavirus pandemic. The president has sought to pressure schools to physically reopen come fall, even suggesting he could withhold federal funding from those that do not comply with his demands. Schools across the country shuttered in the spring and moved to virtual learning amid the pandemic, and local officials are contemplating plans for safely restarting classes in the fall while preventing the spread of the coronavirus. Trump has suggested local officials want to keep schools physically closed for political reasons and not health ones. The president has recently complained about schools being driven by what he describes as a radical left-wing ideology. He spent a decent portion of Independence Day remarks at Mount Rushmore warning of a “far-left fascism” controlling American schools, newsrooms and other institutions. “The violent mayhem we have seen in the streets of cities that are run by liberal Democrats, in every case, is the predictable result of years of extreme indoctrination and bias in education, journalism and other cultural institutions,” Trump said, referencing recent protests that have grown across the country in the wake of the police killing of George Floyd, some of them turning violent and resulting in the destruction of property and statues. “Against every law of society and nature, our children are taught in school to hate their own country and to believe that the men and women who built it were not heroes, but that were villains,” Trump continued.
"Racist" College Researcher Ousted After Sharing Study Showing No Racial Bias In Police Shootings - The vice president of Research and Innovation at Michigan State University, physicist Stephen Hsu, has been forced out of his position at the university after daring to show actual facts from a 2019 study that show there to be no racial bias in incidents of police shootings. Hsu wrote on his blog on Sunday that “The [Graduate Employees Union] alleged that I am a racist because I interviewed MSU Psychology professor Joe Cesario, who studies police shootings.”"Cesario’s work…is essential to understanding deadly force and how to improve policing," Hsu said. Cesario's 2019 study found "that the race of the officer doesn’t matter when it comes to predicting whether black or white citizens are shot." The conclusion of the study was that “contrary to activist claims and media reports, there is no widespread racial bias in police shootings.” Cesario's study was then cited in a June 3 Wall Street Journal op-ed called "The Myth of Systemic Police Racism". The MSU communications team highlighted the mention of Cesario's work days later and on June 10, the GEU "blasted" Hsu for sharing the research, claiming that it "did not alight with public statements issued by MSU," according to blog The Police Tribune. GEU Vice President Acacia Ackles said: “It is the union’s position that an administrator sharing such views is in opposition to MSU’s statements released supporting the protests and their root cause and aim.” That's when Hsu said the social media attacks began: “This started as a twitter mob attack, with very serious claims: that I am a Racist, Sexist, Eugenicist, etc.” He also said he was under attack for blogging about research involving genetic differences of races. The GEU subsequently circulated a "Fire Stephen Hsu" petition that demanded Hsu's firing. While more than 800 signed the petition to get him fired, days later Hsu had compiled over 2,000 signatures in a support petition. “Over just a few days, 1700+ individuals from around the world signed the support petition… Among the signatories are hundreds of professors from MSU and around the world, and an even larger number of PhD degree holders,” Hsu said. On June 19, Hsu was asked to resign from his position. He consented, but wrote on his blog: “I do not agree with his decision, as serious issues of Academic Freedom and Freedom of Inquiry are at stake. I fear for the reputation of Michigan State University.”
Ivy League Cancels All Fall Sports On Pandemic Fears Through 2020 - Another coronavirus-related bombshell this week: after Harvard announced its Fall semester is going to online instruction only, with only 40% of students invited back to live on campus, the Ivy League on Wednesday announced the suspension of all Fall sports.It's the first Division I conference to make the drastic move nixing football and all other collegiate sports over fears of the coronavirus pandemic. It plans to hold no competitions until after January 1."We simply do not believe we can create and maintain an environment for intercollegiate athletic competition that meets our requirements for safety and acceptable levels of risk," the Ivy League Council of Presidents explained in a statement. The league has left open the possibility of transferring the sports, especially football, to the Spring semester contingent on COVID-19 numbers significantly declining."We are entrusted to create and maintain an educational environment that is guided by health and safety considerations. There can be no greater responsibility — and that is the basis for this difficult decision," it said.The suspension of games includes football, soccer, volleyball, cross country, field hockey and even later fall into winter sports like basketball. Meanwhile, there's already pressure for all other divisions and college leagues to follow suit: U.S. Sen. Richard Blumenthal (D-Conn.) called on other leagues to follow the Ivy League's lead again."There's absolutely nothing different between the Ivy League and any division except for the money, to be very blunt," he told USA Today Sports. "It's about the money. And if the other schools fail to follow the Ivy League's lead, it will be only because of the money. And, in fact, it will be another misguided act in a long litany of putting school profits ahead of the people who play for them."
Types of flu people encounter in childhood may affect susceptibility to different flu strains later in life - A team of researchers from the University of Pennsylvania, the University of Pittsburgh, Centro Nacional de Diagnóstico y Referencia, Nicaragua, and the University of Michigan has found that the strains of influenza virus that infect people when they are young may influence their susceptibility to other influenza strains later in life. In their paper published in Proceedings of the National Academy of Sciences, the group describes their study of influenza strains in ferrets and human blood samples and what they found.As the researchers note, most people are first infected with aninfluenza virus at age five, when they first go to school. Thereafter, most people are exposed to and are infected by several influenza viruses throughout their lifetimes. Prior research has shown that the antibody response by an individual person to a specific influenza virus can be boosted by infections by other strains. In this new effort, the researchers sought to find out if the strain of influenza that infects a person early in their life might affect their ability to fight off other strains later in life. To find out, they conducted tests with two well-known strains of influenza, lab ferrets and human blood.The experiments involved infecting ferrets or blood samples with one strain of an influenza virus and then attempting to infect them again with another strain—and also attempting to infect blood samples from people who had already had one or the other types of infection earlier in their life. The researchers found that if a person was infected with H1N1, (the strain of influenza behind the 2009 pandemic), antigens in the blood would successfully fight off the H3N2 strain. The reverse was not true, however. A person infected with H3N2 as a child saw no increased protection against H1N1. These results led the researchers to conclude that the specific type of flu a child acquires may affect their susceptibility to other strains when they grow older. They suggest that infections during childhood result in the development of a memory immune response—the basis behind what has come to be known as "Original Antigenic Sin."
“I have serious news”: A cancer patient in the COVID-19 epidemic --It’s 3:00 AM, July 3rd, 2020, in the Ottawa Hospital Civic Campus emergency department. I have been here since 3:00 PM, July 2nd. The journey began in mid-January when I started to experience occasional difficulty swallowing my food. Come early March, the swallowing problem is recurring, and there is now a soreness in my throat. My wife notices that the register of my voice seems to be changing. OK, time to do something. Getting a problem looked at in Canada requires one to go through your family physician. By US standards, the Canadian health care system is conservative in its use of diagnostic procedures. The bigger problem, though, is the pandemic. All non-urgent care is postponed. I get a chest x-ray and standard bloodwork, but they reveal nothing. I try to get a videofluoroscopic study of my swallowing problem, but I can’t get through the waiting list. Weeks pass. My PCP pleads with the diagnostic clinics. They promise to get back to me for a phone appointment to evaluate whether I need a diagnostic procedure. It doesn’t happen.Then, on July 2nd, I start coughing blood. A quick conference with my PCP, the only course is to go to the ED. I get there at 3:00, and it’s standing room only. This is Canada, so the crowd is orderly and cooperative, but it’s not a good scene. Five hours of waiting and I see a resident. I tell him my story. He responds using medical words that translate to “uh oh,” and he sends me to get a CT scan. I get scanned at about 11:00 PM. And then I wait.Which brings us to 3:00 AM. I am called to an exam room. An attending physician comes in. She says, directly but gently and gracefully, “I have serious news.” I have been through this with friends and family. Now it’s my turn. The CT scan shows that I have a mass in my oropharynx, the middle component of the throat. Later that morning, I see an ENT surgeon who had the same view as the ED doc, “This is an oropharyngeal squamous cell carcinoma [OPSCC] until proven otherwise.” He did a biopsy with a needle through the side of my neck. On the 7th, I got a call from my PCP with the results from the biopsy. “I am going to be straightforward. This is bad news.” The mass is indeed an OPSCC, with lymph node involvement to boot. The report also included word salad about the staining of cells on the slides. I’m sure it’s crucial, but it made no sense to either of us, which we found hilarious. Thank God that my PCP speaks my native tongue, which is Black Humour. The other good news is that OPSCC can often be treated with success. The upshot is that I am now a cancer patient during the COVID-19 pandemic.
Coronavirus pandemic threatens lives of at least one million people at risk from AIDS, tuberculosis, malaria - Estimates from the United Nations, the International AIDS Society, the Stop TB Partnership and the Imperial College London predict the supply chain disruptions caused by the coronavirus pandemic could lead to at least one million extra deaths caused by AIDS, tuberculosis and malaria as resources traditionally used to fight these diseases are diverted to combat outbreaks of COVID-19.A majority of these deaths are likely to occur in Africa, where there have been more than 481,000 cases and at least 11,400 deaths caused by the coronavirus. Countries including South Africa, Egypt, Nigeria, Ghana and Algeria have been particularly hard hit. While the total case and death numbers are currently lower than other regions of the world, including the United States, India and Brazil, the World Health Organization (WHO) has repeatedly warned of the dangers of the pandemic in Africa, which has some of the least developed health care infrastructure in the world. At the same time, the virus is claiming the lives of nurses, doctors and other medical workers as they try to fight and contain the pandemic. The situation has also meant that institutions such as Médecins Sans Frontières, which have in the past provided resources to fight HIV/AIDS, have been forced instead to focus on treating patients with COVID-19.The United Nations Global AIDS Update 2020 paints a dire picture for the years-long progress in eliminating the HIV/AIDS pandemic. Its models show that, if medical supplies for AIDS are disrupted for six months, there will be between 471,000 and 673,000 excess AIDS-related deaths in in sub-Saharan Africa alone by the end of 2021.
Vitamin D promoted as potential defence against coronavirus FT - Calls are growing for people to take vitamin D supplements to reduce the risk of contracting coronavirus, as some research suggest they could be especially beneficial to those with darker skin.This week three influential organisations, including the government’s Scientific Advisory Commission on Nutrition, urged people in the UK to make sure they were consuming enough vitamin D.But even advocates of the “sunshine vitamin” — so called because the body makes it in the skin through exposure to sunlight — say more evidence is needed to prove definitively that it cuts the risk of coronavirus infection and severity of symptoms.Vitamin D, a steroid hormone, is essential for maintaining a healthy immune system. In mid-latitude countries such as the UK, people with pale skin can make enough of it during summer by exposing bare arms or legs to sunlight for a few minutes a day.The process takes longer in those with heavily pigmented skin that blocks more ultraviolet radiation from the sun. In winter all of a person’s vitamin D has to come from foods, such as oily fish, egg yolks and mushrooms, or pills. Other reports promoting vitamin D came from the National Institute for Health and Care Excellence and the Royal Society, Britain’s senior scientific body. The latter urged the government to strengthen its public health advice for the public to take daily vitamin D supplements while more research takes place.
Airborne Coronavirus Transmission Must Be Taken Seriously, 239 Scientists Tell WHO -The World Health Organization (WHO) is holding the line on its stance that the respiratory droplets of the coronavirus fall quickly to the floor and are not infectious. Now, a group of 239 scientists is challenging that assertion, arguing that the virus is lingering in the air of indoor environments, infecting people nearby, as The New York Times reported.The idea that the virus lingers in the air may explain why the virus is finding new victims to infect in clusters as people visit bars, restaurants, gyms and casinos worldwide.In an open letter to the WHO, 239 scientists from 32 countries outlined the evidence that proves smaller particles can infect people, and are calling for the agency to revise its recommendations. The researchers plan to publish their letter, titled "It is Time to Address Airborne Transmission of COVID-19," in a scientific journal this week, according to The New York Times. The paper will be published in Clinical Infectious Diseases, according to The Washington Post."We are aware of the article and are reviewing its contents with our technical experts," WHO spokesman Tarik Jasarevic said in an email reply to a Reuters request for comment.However, as recently as last Monday, the WHO published guidelines on stopping the spread of the virus in healthcare facilities that said airborne transmission of the virus is possible only after medical procedures that produce aerosols, or droplets smaller than 5 microns, or 5 millionths of a meter.The fact that scientists resorted to a paper to pressure the WHO is unusual, analysts said to The Washington Post. It is likely to renew questions about the WHO's messaging. "WHO's credibility is being undermined through a steady drip-drip of confusing messages, including asymptomatic spread, the use of masks, and now airborne transmission," said Lawrence Gostin, a professor of global health law at Georgetown University who provides technical assistance to the WHO.
Researchers: COVID-19 spreads ten meters or more by breathing -- A plea issued by 239 scientists from around the world to recognize and mitigate airborne transmission of COVID-19 addressed to international health authorities is to be published in the journal Clinical Infectious Diseases. The 239 signatories from 32 countries come from many different areas of science and engineering, including virology, aerosol physics, flow dynamics, exposure and epidemiology, medicine, and building engineering. Led by internationally recognized air quality and health expert QUT Professor Lidia Morawska, the appeal is to address the overwhelming research finding that an infected person exhales airborne virus droplets when breathing and talking that can travel further than the current 1.5m social distance requirement."Studies by the signatories and other scientists have demonstrated beyond any reasonable doubt that viruses are exhaled in microdroplets small enough to remain aloft in the air and pose a risk of exposure beyond 1 to 2m by an infected person," Professor Morawska, director of the International Air Quality and Health Laboratory, said."At typical indoor air velocities, a 5-micron droplet will travel tens of meters, much greater than the scale of a typical room while settling from a height of 1.5m above the floor." Signatories to the appeal come from many disciplines including different areas of science and engineering, including virology, aerosol physics, flow dynamics, exposure and epidemiology, medicine, and building engineering. The measures that need to be taken to mitigate airborne transmission include:
- Provide sufficient and effective ventilation (supply clean outdoor air, minimize recirculating air) particularly in public buildings, workplace environments, schools, hospitals, and aged care homes.
- Supplement general ventilation with airborne infection controls such as local exhaust, high efficiency air filtration, and germicidal ultraviolet lights.
- Avoid overcrowding, particularly in public transport and public buildings.
"These are practical and can be easily implemented and many are not costly. For example, simple steps such as opening both doors and windows can dramatically increase air flow rates in many buildings. Numerous health authorities currently focus on hand-washing, maintaining social distancing, and droplet precautions. Hand-washing and social distancing are appropriate, but it is view, insufficient to provide protection from virus-carrying respiratory microdroplets released into the air by infected people."
Increase in delirium, rare brain inflammation and stroke linked to COVID-19 - Neurological complications of Covid-19 can include delirium, brain inflammation, stroke and nerve damage, finds a new UCL and UCLH-led study.Published in the journal Brain, the research team identified one rare and sometimes fatal inflammatory condition, known as ADEM, which appears to be increasing in prevalence due to the pandemic.Some patients in the study did not experience severe respiratory symptoms, and the neurological disorder was the first and main presentation of Covid-19.Joint senior author Dr Michael Zandi (UCL Queen Square Institute of Neurology and University College London Hospitals NHS Foundation Trust) said: "We identified a higher than expected number of people with neurological conditions such as brain inflammation, which did not always correlate with the severity of respiratory symptoms."We should be vigilant and look out for these complications in people who have had Covid-19. Whether we will see an epidemic on a large scale of brain damage linked to the pandemic - perhaps similar to the encephalitis lethargica outbreak in the 1920s and 1930s after the 1918 influenza pandemic - remains to be seen."
Guillain-Barre Syndrome, a Rare Neurological Disorder, Linked to COVID-19 -The patient in the case report (let's call him Tom) was 54 and in good health. For two days in May, he felt unwell and was too weak to get out of bed. When his family finally brought him to the hospital, doctors found that he had a fever and signs of a severe infection, or sepsis. He tested positive for SARS-CoV-2, the virus that causes COVID-19 infection. In addition to symptoms of COVID-19, he was also too weak to move his legs.When a neurologist examined him, Tom was diagnosed with Guillain-Barre Syndrome, an autoimmune disease that causes abnormal sensation and weakness due to delays in sending signals through the nerves. Usually reversible, in severe cases it can cause prolonged paralysis involving breathing muscles, require ventilator support and sometimes leave permanent neurological deficits. Early recognition by expert neurologists is key to proper treatment.We are neurologists specializing in intensive care and leading studies related to neurological complications from COVID-19. Given the occurrence of Guillain-Barre Syndrome in prior pandemics with other corona viruses like SARS and MERS, we are investigating a possible link between Guillain-Barre Syndrome and COVID-19 and tracking published reports to see if there is any link between Guillain-Barre Syndrome and COVID-19.Some patients may not seek timely medical care for neurological symptoms like prolonged headache, vision loss and new muscle weakness due to fear of getting exposed to virus in the emergency setting. People need to know that medical facilities have taken full precautions to protect patients. Seeking timely medical evaluation for neurological symptoms can help treat many of these diseases. Guillain-Barre syndrome occurs when the body's own immune system attacks and injures the nerves outside of the spinal cord or brain – the peripheral nervous system. Most commonly, the injury involves the protective sheath, or myelin, that wraps nerves and is essential to nerve function. Without the myelin sheath, signals that go through a nerve are slowed or lost, which causes the nerve to malfunction. The majority of Guillain-Barre Syndrome patients improve within a few weeks and eventually can make a full recovery. However, some patients with Guillain-Barre Syndrome have lingering symptoms including weakness and abnormal sensations in arms and/or legs; rarely patients may be bedridden or disabled long-term.
Data show panic and disorganization dominate the study of Covid-19 drugs - In a gigantic feat of scientific ambition, researchers have designed a staggering 1,200 clinical trials aimed at testing treatment and prevention strategies against Covid-19 since the start of January. But a new STAT analysis shows the effort has been marked by disorder and disorganization, with huge financial resources wasted. The analysis, conducted in partnership with Applied XL, a Newlab Venture Studio company, found that one in every six trials was designed to study the malaria drugs hydroxychloroquine or chloroquine, which have been shown to have no benefit in hospitalized patients. “If the goal was to optimize the likelihood of figuring out the best treatment options, the system is off course,” said Robert Califf, the head of clinical policy and strategy at Verily Life Sciences and Google Health and a former commissioner of the Food and Drug Administration. The findings show, he said, that too often studies are too small to answer questions, lack real control groups, and put too much emphasis on a few potential treatments, as occurred with hydroxychloroquine. Indeed, the analysis found many of the studies are so small — 39% are enrolling or plan to enroll fewer than 100 patients — that they are unlikely to yield clear results. About 38% of the studies have not actually begun enrolling patients. “It’s a huge amount of wasted effort and wasted energy when actually a bit of coordination and collaboration could go a long way and answer a few questions,” said Martin Landray, a professor of medicine at Oxford University and one of the lead researchers on the RECOVERY study, a large trial of multiple treatments being run by the U.K. government.
Dr. Fauci Warns Any Protection Provided By COVID-19 Vaccine May Be "Transitory - During an NIH Q&A on Monday, Dr. Anthony Fauci answered questions about the current state of the US outbreak, while trying to manage the public's expectations in a way that adequately conveys the seriousness of the viral threat we are facing. But he was once again forced to acknowledge an intractable fact: That scientists still not sure whether a COVID-19 vaccine will provide lasting projection.Dr. Fauci was joined by NIH Director Dr. Francis Collins.The good doctor started out by warning that the "current state is not good," referring to the state of the coronavirus response. The US is still "knee deep" in the first wave of the pandemic. The coronavirus cases went up, came back down, but they never went back to baseline. Now, they're surging back."This is a serious situation," Dr. Fauci said.Moving to the subject of the vaccine trials, while the US government is working with several of the most promising candidates, all of whom will be starting trials involving 30,000 patients from all over the country, Dr. Fauci acknowledged that the scientific community still can't say for certain whether a vaccine will offer lasting protection, or require annual injections, more akin to the flu vaccine."We don't know how long COVID-19 antibody protection lasts"...Fauci said. For all we know, any protection provided by the vaccine could be "transitory."Still, Dr. Fauci says he's "doubtful" about reinfection, although "I wouldn't be surprised if, in rare cases, people went into remission and then relapsed."In the meantime, the doctor said the NIH is doing everything it can to ensure that the patients included in the study span all age ranges and racial groups. He promised that minority groups will be "well represented" in the trial, offering the customary virtue-signaling that must be a part of every conversation about public issues, not matter how irrelevant.
Coronavirus herd immunity may be 'unachievable' because antibodies disappear after a few weeks in some people - Population-wide immunity to the novel coronavirus could be "unachievable" with antibodies to the virus disappearing after just a few weeks in some patients, according to a major new Spanish study. The Spanish government teamed up with some of the country's leading epidemiologists to discover what percentage of the population had developed antibodies that could provide immunity from the coronavirus. The study found that just 5% of those tested across the country maintained antibodies to the virus, in findings published by the medical journal The Lancet.The study also found that 14% of people who had tested positive for coronavirus antibodies in the first round of testing no longer tested positive in subsequent tests carried out weeks later. "Immunity can be incomplete, it can be transitory, it can last for just a short time and then disappear," Raquel Yotti, the director of Spain's Carlos III Health Institute, which helped conduct the study, said.Other researchers said the study corroborated findings elsewhere that immunity to the virus might not be long-lasting in people who develop only mild or no symptoms."No symptoms suggests a mild infection, which never really gets the immune system going well enough to generate immunological 'memory,'" Ian Jones, a professor of virology at the University of Reading, said. Jones added: "Anyone who tests positive by antibody test should not assume they are protected. They may be, but it is not clear."
Preliminary study suggests tuberculosis vaccine may be limiting COVID-19 deaths - One of the emerging questions about the coronavirus that scientists are working to understand is why developing countries are showing markedly lower rates of mortality in COVID-19 cases than expected.Research by Assistant Professor Luis Escobar of the College of Natural Resources and Environment and two colleagues at the National Institutes of Health suggests that Bacille Calmette-Guérin (BCG), atuberculosis vaccineroutinely given to children in countries with high rates of tuberculosis infection, might play a significant role in mitigatingmortality rates from COVID-19. Their findings have been published in the Proceedings of the National Academy of Sciences."In our initial research, we found that countries with high rates of BCG vaccinations had lower rates of mortality," explained Escobar, a faculty member in the Department of Fish and Wildlife Conservation and an affiliate of the Global Change Center housed in the Fralin Life Sciences Institute. "But all countries are different: Guatemala has a younger population than, say, Italy, so we had to make adjustments to the data to accommodate those differences."Escobar, working with NIH researchers Alvaro Molina-Cruz and Carolina Barillas-Mury, collected coronavirus mortality data from around the world. From that data, the team adjusted for variables, such as income, access to education and health services, population size and densities, and age distribution. Through all of the variables, a correlation held showing that countries with higher rates of BCG vaccinations had lower peak mortality rates from COVID-19.One sample that stood out was Germany, which had different vaccine plans prior to the country's unification in 1990. While West Germany provided BCG vaccines to infants from 1961 to 1998, East Germany started their BCG vaccinations a decade earlier, but stopped in 1975. This means that older Germans—the population most at risk from COVID-19—in the country's eastern states would have more protection from the current pandemic than their peers in western German states. Recent data shows this to be the case: western German states have experienced mortality rates that are 2.9 times higher than those in eastern Germany.
WHO Says Coronavirus Is Likely Airborne - The coronavirus may linger in the air in crowded indoor spaces, spreading from one person to the next, the World Health Organization acknowledged on Thursday, as The New York Times reported. The announcement came just days after 239 scientists wrote a letter urging the WHO to consider that the novel coronavirus is lingering in indoor spaces and infecting people, as EcoWatch reported.The letter, written by two scientists from Australia and the U.S. and published in the journal Clinical Infectious Diseases, said that studies have shown "beyond any reasonable doubt that viruses are released during exhalation, talking and coughing in microdroplets small enough to remain aloft in the air."The WHO had previously dismissed those concerns, but that position is quickly changing."We have to be open to this evidence and understand its implications regarding the modes of transmission, and also regarding the precautions that need to be taken," said Benedetta Allegranzi, technical leader of the WHO task force on infection control, as Nature reported.Its new scientific report released details on how the coronavirus that leads to COVID-19 can pass from one person to the next by staying in the air during medical procedures, or, for example, in crowded restaurants, choir practices and fitness classes, as The Associated Press reported."In these events, short-range aerosol transmission, particularly in specific indoor locations, such as crowded and inadequately ventilated spaces over a prolonged period of time with infected persons cannot be ruled out," the United Nations health agency's new guidance said, as CNBC reported.And yet, the WHO said more research is "urgently needed to investigate such instances and assess their significance for transmission of COVID-19."In the updated brief, the WHO also pointed out more directly than it previously had that people who do not have symptoms may spread the virus. "Infected people can transmit the virus both when they have symptoms and when they don't have symptoms," the agency said, as The New York Times reported. Prior to the new brief, the WHO said asymptomatic transmission was probably "very rare."
CDC Expands List of Those With Higher COVID-19 Risks: What to Know - The Centers for Disease Control and Prevention (CDC) has updated its list of underlying conditions that may lead to more severe outcomes from a COVID-19 diagnosis.The agency is warning that people with type 2 diabetes, kidney disease, whole organ transplants, and women who are pregnant could experience more severe outcomes if they contract COVID-19.The updated guidelines also remove 65 as the age when more severe outcomes may occur. Instead, it is suggesting as people age, the chance of severe outcomes increases. By removing a set age cut off, the updated guidelines give notice to people with underlying conditions of all ages that they are more likely to end up in an intensive care unit (ICU) if they contract the virus.The guidelines do not suggest that people with these underlying conditions are more susceptible to developing COVID-19. Experts say the key is to stay in the know and practice safe habits such as masking, physical distancing, and, when needed, isolation. Here's a look at some of the underlying conditions added to the CDC list.
EPA Approves Two Lysol Products to Kill Coronavirus on Surfaces -The U.S. Environmental Protection Agency (EPA) recently issued a list of 431 products that are effective at killing viruses when they are on surfaces. Now, a good year for Lysol manufacturer Reckitt Benckiser just got better when the EPA said that two Lysol products are among the products that can kill the novel coronavirus that causes COVID-19.The two products are Lysol Disinfectant Spray and Lysol Disinfectant Max Cover Mist. In a press release, the agency said that the two products were both successful in laboratory testing at preventing the spread of the virus.While there are 431 products on the EPA's list of disinfectants that are strong enough to stave off "harder-to-kill" viruses than the novel coronavirus, the two Lysol products are the first to be tested directly against the virus behind the global pandemic and be proven effective, as CNN reported.While the EPA plans to test more products against the coronavirus specifically, it has so far only approved the two Lysol products as effective at removing the virus from surfaces.That doesn't mean you just spray the disinfectant, wipe it away, and the virus is gone. The tests showed it was effective after two minutes, which means spraying it, leaving it, and then vigorously scrubbing are important steps to ensuring the sprays remove the coronavirus.Reckitt Benckiser has already seen its profits rise more than 13 percent in the first half of the year as individuals and businesses have prioritized sanitizing surfaces, as Forbes reported. The company also made headlines in April when it had to disavow President Trump's claim that a disinfectant inside the body could knock out the virus in one minute."We must be clear that under no circumstance should our disinfectant products be administered into the human body (through injection, ingestion or any other route)," the company said in statement at the time, as Forbes reported.
COVID-19 ‘Please Tell Me My Life Is Worth A LITTLE Of Your Discomfort,’ Nurse Pleads - When an employee told a group of 20-somethings they needed face masks to enter his fast-food restaurant, one woman fired off a stream of expletives. “Isn’t this Orange County?” snapped a man in the group. “We don’t have to wear masks!” The curses came as a shock, but not really a surprise, to Nilu Patel, a certified registered nurse anesthetist at nearby University of California-Irvine Medical Center, who observed the conflict while waiting for takeout. Health care workers suffer these angry encounters daily as they move between treacherous hospital settings and their communities, where mixed messaging from politicians has muddied common-sense public health precautions. “Health care workers are scared, but we show up to work every single day,” Patel said. Wearing masks, she said, “is a very small thing to ask.” Patel administers anesthesia to patients in the operating room, and her husband is also a health care worker. They’ve suffered sleepless nights worrying about how to keep their two young children safe and schooled at home. The small but vocal chorus of people who view face coverings as a violation of their rights makes it all worse, she said. That resistance to the public health advice didn’t grow in a vacuum. Health care workers blame political leadership at all levels, from President Donald Trump on down, for issuing confusing and contradictory messages. “Our leaders have not been pushing that this is something really serious,” said Jewell Harris Jordan, a 47-year-old registered nurse at the Kaiser Permanente Oakland Medical Center in Oakland, California. She’s distraught that some Americans see mandates for face coverings as an infringement upon their rights instead of a show of solidarity with health care workers. (Kaiser Health News produces California Healthline, is not affiliated with Kaiser Permanente.) “If you come into the hospital and you’re sick, I’m going to take care of you,” Jordan said. “But damn, you would think you would want to try to protect the people that are trying to keep you safe.”
Coronavirus Surge in Tulsa ‘More Than Likely’ Linked to Trump Rally - A surge in coronavirus cases in and around Tulsa, Okla., is probably connected to the campaign rally President Trump held there last month, the city’s top health official said on Wednesday.Tulsa County reported 206 new confirmed cases on Tuesday and 261 — a record high — on Monday, and Dr. Bruce Dart, the director of the Tulsa Health Department, said at a news conference that it was reasonable to link the spike to the rally and related events. “The past two days we’ve had almost 500 cases, and we know we had several large events a little over two weeks ago, which is about right,” Dr. Dart said. “So I guess we just connect the dots.” The county has more infections right now than any other in Oklahoma, and “we’ve had some significant events in the past few weeks that more than likely contributed to that,” he added. A few days before the event, Dr. Dart urged the president to cancel, calling the rally a “perfect storm of potential over-the-top disease transmission.” When he said that, Tulsa County had just recorded 89 new cases in a day, a record high at the time. This week, the daily totals have been more than twice that.
Whatever their intent, protests aren't exempt from the laws of nature - Conservatives are often accused of being “science-deniers.” From mask-wearing to global warming, the right is often the punching bag for those who venerate scientific evidence. Yet recently we’ve seen that the left is equally willing to buy into questionable evidence, when it supports their cause of the moment. A study released last month on the effects of social justice protests on coronavirus infection rates appears to be emblematic of this. The study has been given attention across a broad spectrum of news outlets, from The Economist to the Los Angeles Times. It purports to show that the protests in America’s streets have had no impact on infection rates across more than 300 cities. The ostensible mechanism for this lack of case growth is that the protests led other people to socially distance more. By itself, this puts an asterisk on the findings. If fear or aversion to the protests led people to stay home, this doesn't actually mean that crowding together in demonstrations didn’t spread the virus, only that countervailing decisions mitigated the harm that might have been caused. But there are a number of far broader issues with the paper that deserve attention. First, the study attempts to compare a set of cities where protests took place to a control group of cities that experienced no protests. To the extent that cities a fair distance apart could be analyzed, this might be a valuable approach. But when one looks at the control cities, it is easy to find that some are mislabeled. For example, Irving, Texas, is mentioned as a control-group city in which protests didn’t occur — but a cursory Google search reveals protests involving hundreds of people did take place there during the time frame of the study’s analysis. If mistakes can be identified this easily, one questions the credibility of the study. But an even larger issue is that many of the cities included as controls are in the same metropolitan areas as cities that are part of the “treatment” group where protests occurred. As anyone who has visited a large American city knows, people easily and regularly cross municipal lines. Protestors were as likely to come to a demonstration from any number of surrounding locations — not just where the event took place. Because protests were widespread, and COVID-19 cases were growing fairly rapidly around the country at the time, it is simply not credible to think a viable control group could be created. To the extent that the coronavirus remains an important problem, research such as this can have negative implications for public health as well. If people hear that large-scale protests are totally safe, why wouldn’t going out to dinner, or making a trip to the local pub be safe as well? All of this is not meant as an attack on a particular movement. From the “Reopen America” protests in May to those involving police and the death of George Floyd, people of all political stripes in recent weeks have taken to the streets to let their voices be heard. But what this is meant to be is an indictment of the motivated reasoning of many Americans today.
Florida has reported more than 10,000 new cases for a fourth straight day as the country sees another surge in the illness. - Florida surpassed 200,000 coronavirus cases as the state reported another 10,059 new positives on Sunday. The state has reported more than 10,000 new cases for a fourth straight day as the country sees another surge in the pandemic. Florida is among 11 states where numbers have spiked, at least doubling over the past two weeks. On Saturday, Florida reported 11,458 new cases of the virus, which breaks its previous records and approaches New York's highest daily tally of 11,571 from April.. Florida Gov. Ron DeSantis has taken heat for his response to the virus, including his early refusal to issue a statewide shutdown of beaches as spring breakers flocked to the state in March. The state shut down bars late last month after “widespread noncompliance” of the state’s reopening guidelines.
Dozens of Florida hospitals out of available ICU beds, state data shows (Reuters) - More than four dozen hospitals in Florida reported that their intensive care units (ICUs) have reached full capacity on Tuesday as COVID-19 cases surge in the state and throughout the country. Hospital ICUs were full at 54 hospitals across 25 of Florida's 67 counties, according to data published on Tuesday morning by the state's Agency for Health Care Administration. More than 300 hospitals were included in the report, but not all had adult ICUs. Thirty hospitals reported that their ICUs were more than 90% full. Statewide, only 17% of the total 6,010 adult ICU beds were available on Tuesday, down from 20% three days ago, according to the agency's website. Florida's coronavirus cases have soared in the last month, with the state's daily count topping 10,000 three times in the last week. The death rate from COVID-19 rose nearly 19% in the last week from the week prior, bringing the state's death toll to more than 3,800. All ICU beds are filled at the three hospitals in Clay County, where the population is around 220,000. Florida Governor Ron Desantis on Monday encouraged state residents to seek care at hospitals if needed, citing concerns that people with life-threatening conditions other than COVID-19 had avoided hospitals earlier in the pandemic to the detriment of their health. "Hospitals are safe and Floridians in need of treatment shouldn’t avoid seeking care," Desantis wrote on Twitter. In Miami-Dade - the state's most populous county - eight hospitals reported their intensive care units were filled to capacity, including North Shore Hospital with 56 ICU beds. The hospital with the most ICU capacity in the county, Jackson Memorial, reported that its ICU was 91% full.
Texas Sees Record Jump In COVID-19 Hospitalizations- Live Updates --Texas saw daily hospitalizations reach a fresh record high on Sunday as 8,181 patients with the virus were admitted to hospitals around the state, even as the number of new COVID-19 cases reported declined day-over-day.Texas reported 3,449 new confirmed cases of COVID-19 Sunday, after a record high of 8,258 Saturday. State health officials also reported 29 additional deaths, bringing the totals to 2,637 deaths and 195,239 confirmed cases, per state data. Officials in cities like Austin are pushing Gov Abbott to return control to municipalities to allow some places to implement new stay-at-home orders, a measure the governor has resisted despite making mask-wearing mandatory. Mayor Steve Adler, a Democrat, said as much on CNN’s “State of the Union” Sunday as he warned that hospitals have been facing a crisis and ICUs could be overrun in as few as 10 days. A few counties warned that their ICUs had been overwhelmed over the last couple of days, and hospitals in Houston have already needed to transport some patients 50 miles away. In the Houston area, Democratic Harris County Judge Lina Hidalgo claimed a stay-at-home order is needed.
Coronavirus on track to overwhelm Houston hospitals in two weeks, mayor says - Hospitals in Houston, Texas are on track to be overwhelmed in approximately two weeks as coronavirus cases mount, Mayor Sylvester Turner said on Sunday. "The number of people who are getting sick and going to the hospitals has exponentially increased. The number of people in our ICU beds has exponentially increased," Turner said on CBS's "Face The Nation." "In fact, if we don't get our hands around this virus quickly, in about two weeks our hospital system could be in serious, serious trouble." Texas hit a record number of new coronavirus cases on Saturday, reporting 8,258 people infected over 24 hours. Nearly 200,000 in the state have tested positive, according to data provided state health officials, including more than 35,000 in Harris County, which contains Houston. At least 2,608 people in the state have died of the disease. In Houston, the percentage of tests for the virus coming back positive has risen to nearly 25%. Turner said that people of color were being disproportionately impacted, particularly Hispanic residents. Turner, a Democrat, said that the main problem facing Houston hospitals is staffing, not a shortage of beds. "We can always provide additional beds, but we need the people, the nurses and everybody else, the medical professionals, to staff those beds. That's the critical point right now," Turner said.
Coronavirus surge stressing Texas hospitals in major cities | The Texas Tribune - Local officials and experts in Austin, San Antonio, Houston and Fort Worth have expressed concerns in recent days that increasing coronavirus hospitalizations could overwhelm their intensive care capacities, with some saying it could happen in less than two weeks. As Texas hit another record high Sunday, reporting 8,181 people hospitalized for the new coronavirus, local officials predicted cities could soon run out of space to care for the sickest patients. The state reported that there still are 13,307 available staffed hospital beds, including 1,203 available staffed ICU beds statewide, but hospital capacity varies greatly by region. On Sunday, Austin Mayor Steve Adler told the Austin American-Statesman that hospitals there could be overwhelmed in the "next 10 days to two weeks" if the amount of people admitted because of the coronavirus continues to increase, adding that 434 out of 1,500 Austin-area hospital beds for coronavirus patients are occupied. The San Antonio Express-News also reported that the city's hospitals could be overrun with patients in the next week or two, noting that the number of hospitalized coronavirus patients in that area's trauma service region rose by 55% in the past week. The Fort Worth Star-Telegram reported Tuesday that Rajesh Nandy, an associate professor of biostatistics and epidemiology in the UNT Health Science Center’s School of Public Health, warned that Tarrant County hospitals could reach capacity in about three weeks. As of Saturday, 10 of 12 hospitals in Texas' Rio Grande Valley had already reached capacity as the number of people being hospitalized for the coronavirus more than doubled over the last two weeks. Ten of Texas' trauma service regions have more than 70% of their beds filled, with six of those regions reporting their beds are at least 80% filled, according to data from the Texas Department of State Health Services. On Thursday, Gov. Greg Abbott ordered Texans in most counties to wear masks in public. The mandate warns people living in counties with more than 20 active coronavirus cases that first-time violators will face a warning while repeat offenders could face a $250 fine.
Texas Doctor Warns Patients 'Might Die' For Lack Of Beds- Live Updates --Texas followed Florida on Monday and passed the 200k case mark, leaving Texas just shy of Florida with the 4th largest outbreak in the country, behind NY, Cali, and Fla. But the bigger news was the hospitalizations, which saw another near-record jump in newly hospitalized COVID-19 patients. Hospitalizations rose by 517 to 8,698. July 6th, 2020:
New Cases - 5,318
New Fatalities - 18
*Hospitalizations - 8,698 (+517 from prior day)
Hospital Capacity Usage - 76%
— Texas COVID-19 (@TexasCovid) July 6, 2020
The state also reported another 5k+ new cases. Doctors in Texas tell CNN that they're starting to run out of ICU beds, and that patients who would otherwise be excellent candidates for this type of treatment might die because of it.Texas Doctor: I got 10 calls yesterday for young people who will die if they don’t get ICU support, but I only have three beds left. pic.twitter.com/qAAQSuu6bk— Keith Boykin (@keithboykin) July 5, 2020CNN also reported that Texas has been struggling with outbreaks in childcare centers.At least 1,335 people have tested positive from child care facilities in Texas, the state's Department of Health and Human Services reported Monday, citing figures from Friday.Of those infected, 894 were staff members and 441 were children. The cases came from 883 child care facilities that are open in the state, DHHS said.
The US COVID-19 toll to hit 3 million cases as Texas health system nears collapse - The United States will surpass 3 million cases of COVID-19 today, with over 133,000 deaths. It was exactly one month ago when this figure passed the 2-million mark. Many states had set into motion their return-to-work policies, opening movie theaters, restaurants, night clubs, beaches, parks, pools, and salons. Yet the coronavirus, as many health officials and epidemiologists had warned, was still very much present and the necessary infrastructure to contain and isolate the virus was woefully lacking, even nonexistent, despite the assurances provided by Democratic and Republican governors that everything was under control. However, very soon in the month of June, local and state health officials began warning of a rise in new cases COVID-19 cases, predominately along the sunbelt where states like Florida, Texas, and Arizona were the first to open the doors and encourage people to return to normal routines. Besides perfunctory statements that things were under control and admonishing young people to wear their masks and maintain social distancing, no effort was made to intervene. On June 7, the United States saw its lowest daily count since the pandemic hit in force, with 18,930 new cases. Yesterday’s three-day rolling average for the number of new cases per day was 52,439, a three-fold increase, though the daily number of deaths has been slowly declining, to just over 500, a fact that the Trump administration and its right-wing media apologists have seized on to dismiss the significance of the skyrocketing number of infections.
July 7 COVID-19 Test Results - The US is now conducting over 600,000 tests per day, and that might be enough to allow test-and-trace in some areas. 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. According to Dr. Jha of Harvard's Global Health Institute, the US might need more than 900,000 tests per day. There were 653,091 test results reported over the last 24 hours. There were 51,888 positive tests. This data is from the COVID Tracking Project. The percent positive over the last 24 hours was 7.9% (red line). For the status of contact tracing by state, check out testandtrace.com.
U.S. COVID-19 Death Toll Passes 130,000 Amid Surge in Cases - The official number of people in the U.S. who have lost their lives to the new coronavirus has now passed 130,000, according to tallies from The New York Times, Reuters and Johns Hopkins University. The grim news comes amidst a surge in U.S. cases. More than 50,000 new cases a day were reported several times over the past week, The New York Times pointed out. And the country still has the world's worst outbreak with nearly three million cases, double the world's second-highest caseload in Brazil, Reuters reported. In an interview streamed Monday with National Institutes of Health (NIH) Director Dr. Francis Collins, National Institute of Allergy and Infectious Diseases Director Dr. Anthony Fauci said the U.S. had never successfully exited the first wave of the pandemic. "I would say this would not be considered a wave," Dr. Fauci said, as The New York Times reported. "It was a surge, or a resurgence of infections superimposed upon a baseline that really never got down to where we wanted to go." At least 32 states are reporting higher rates of new cases this week compared to last, according to Johns Hopkins data reported by USA TODAY.The states where cases are rising are mostly in the West and South, according to Reuters, while cases continue to fall in the Northeast.Arizona surpassed 100,000 cases Monday, according to New York Times data, and cases there have doubled in the past two and a half weeks. Both Idaho and Texas broke records for the most new cases reported in a single day Monday, at more than 400 and more than 8,800 new cases respectively. Despite Monday's grim milestone of 130,000 deaths, the rate of increase of deaths in the country has continued to decline, Reuters reported. However, a surge in deaths can come weeks or even months after a surge in cases, public health experts said. And at least five states have seen their death rates rise, including Arizona, which reported 449 deaths in the last two weeks of June compared to 259 in the first two weeks. As of July 3, intensive care units in the state were at 91 percent capacity, an all-time high, The Associated Press reported. The Centers for Disease Control and Prevention (CDC) predicts that the U.S. death toll will climb to between 140,000 and 160,000 by July 25, according to Reuters. It further projects that deaths will rise in Arizona, Arkansas, Florida, Idaho, Nevada, Oklahoma, Oregon, South Carolina, Texas, Utah and Wyoming.
Coronavirus updates: US hits daily record of 60,021 new cases; total nears 3 million; Ryder Cup postponed 1 year - Hospitalizations continued to rise and ICU beds were quickly filling as the nation surpassed 3 million coronavirus cases Wednesday. The stunning milestone hit less than six months after the first confirmed case was reported Jan. 21, in Everett, Washington. Tuesday saw a record 60,021 new cases as the nationwide surge showed no signs of ebbing. The number of new daily cases has risen exponentially since the middle of last month, reaching a record high of 57,209 on July 3. At a Senate hearing last week, Dr. Anthony Fauci, director of the National Institute for Allergy and Infectious Diseases, testified that the U.S. is “going in the wrong direction” and that he “would not be surprised if we go up to 100,000 a day if this does not turn around.” The virus has killed more than 130,000 Americans and put a strain on the health care system. In California, hospitalizations are up 50% from two weeks ago. In Arizona, more than 90% of its ICU beds were filled, and the percentage was growing. In Savannah, Georgia, hospitalizations have nearly quadrupled in a month. In Florida at least 56 hospital intensive care units have reached capacity – and some Republican senators said they won't attend the Republican National Convention in Jacksonville next month. Still, opposition to tighter restrictions aimed at stemming the surge remained stiff. One Louisiana lawmaker compared the treatment of people who refuse to wear masks to the treatment of Jews during the Holocaust. And multiple movie chains have filed suit in New Jersey, demanding the right to reopen.
US coronavirus case count soars past 3 million - There have been more than 1 million new confirmed coronavirus cases in the US in the past month, bringing the total to just under 3.1 million. A further 20,000 human lives were lost during that time, bringing the official death toll to more than 133,000, more than the total number of US soldiers killed in World War I and nearly three times the number of lives lost to the flu each year. Including the fatalities in the United States, there have been 544,000 deaths worldwide and more than 11.8 million cases. Next to the US, Brazil, India and Russia have the most cases, while Brazil, the United Kingdom, Italy and Mexico have the most deaths from the disease. Every day that the pandemic is not brought under control leaves at least another 4,000 people dead. “The outbreak is accelerating,” said World Health Organization (WHO) Director-General Dr. Tedros Adhanom Ghebreyesus at yesterday’s press briefing, “and we have clearly not reached the peak of the pandemic.” He continued, “I will say it again. National unity and global solidarity are more important than ever to defeat a common enemy, a virus that has taken the world hostage. This is our only road out of this pandemic.” The WHO leader’s remarks contrasted sharply to the nationalist action by President Donald Trump, who yesterday formally issued notice to Congress that the United States is withdrawing from the World Health Organization. According to a State Department official who spoke to CNN, the letter is addressed to António Guterres, UN secretary-general, and notes that the withdrawal will be effective on July 6, 2021. When Trump first announced this move, it was decried by Richard Horton, the editor-in-chief of the Lancet medical journal, as a “crime against humanity.” Trump is also pushing for a full reopening of in-person classes this fall. The Trump administration views sending students back to school as a necessary precondition for the next stage of the back-to-work campaign. Forcing workers back on the job despite the acute risk of infection and even death is essential for the extraction of surplus value and profit from the labor of workers to back up the trillions in debt piled up to bail out Wall Street. Trump’s policy would entail all 60 million K-12 students returning to enclosed spaces for several hours each school day as the pandemic gains strength across the country—a recipe for giving the virus to every young person in the country. In that scenario, according to the existing data, some 0.06 percent of students would die—a total of 36,000 children. The rest would bring the disease back home, further spreading the contagion to untold millions of their older and more vulnerable parents and grandparents.
July 8 COVID-19 Test Results, Record Positive, Highest Percent Positive since Early May --600,000 tests per day, and that might be enough to allow test-and-trace in some areas. 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. According to Dr. Jha of Harvard's Global Health Institute, the US might need more than 900,000 tests per day. There were 666,196 test results reported over the last 24 hours.There were 62,197 positive tests. Most ever. This data is from the COVID Tracking Project.The percent positive over the last 24 hours was 9.3% (red line).For the status of contact tracing by state, check out testandtrace.com.
Wyoming to test all inmates, corrections officials for coronavirus - Wyoming will test all inmates and employees at its five correctional facilities next week, the state Department of Corrections announced Wednesday. On Monday Wyoming will start a one-time testing of all inmates and employees at the state's five correctional institutions in rotation. Wyoming Department of Corrections Director Bob Lampert said in a statement that once the state’s baseline is established, the corrections department will institute “ongoing surveillance testing” in the manner as done in nursing homes to maintain “the safest possible living and work environment.” Wyoming has had no confirmed COVID-19 cases among its incarcerated population, making it and Hawaii the only two states not reporting coronavirus cases among their prison populations, according to the Wyoming Corrections Department. “We want to confirm our zero COVID-19 status,” Lampert said, according to the statement. “Due to the recent uptick in the incidence rate of COVID-19 in various communities in Wyoming, we want to be extra cautious.” The department of corrections also said that other restrictions and requirements continue to remain in place to mitigate the spread of the coronavirus, including limiting the size of grouping and requiring face coverings when indoors or within six feet of others. Family visitation also remains suspended, but inmates have been given access to two free phone calls per week and have scheduled access to video visitation, according to the department. Wyoming’s health department has reported 1,428 confirmed COVID-19 cases, 346 probable cases and 21 COVID-19 related deaths.
Mexico Closes US Border In Arizona As COVID Cases Soar - - In the last four days, 15 states have reported record increases in new coronavirus cases, resulting in at least 40% of the U.S. pausing or reversing reopenings. Cases are particularly surging in Arizona, California, Florida, and Texas, as the world watches in disbelief. The international community is alarmed about the major upswing in infections, with European officials maintaining the US traveler ban and now even America's southern neighbor is putting up walls...Officials in Sonora, Mexico moved quickly to slam the border shut before the start of the July Fourth weekend, traditionally a peak tourism time as Americans flock south to celebrate, the Arizona Daily Star reported.Officials have not announced a reopening date.Additionally, residents of Sonoyta, the Mexican border town near Lukeville, Arizona, erected a blockade of vehicles at the border this past holiday weekend to prevent Americans from entering the country, reported Newsweek.Sonoyta Mayor Jose Ramos Arzate issued a statement Saturday: "U.S. tourists not to visit Mexico." The blockade included a line of vehicles on the Mexican side that prevented Americans from entering.
Arizona Declared World's Biggest COVID-19 Hotspot As Deaths Top 2,000: Live Updates Arizona has released its latest number. Confirmed cases rose by 4,057 to a total of 112,671, the state Department of Health said Thursday (remember, these figures are reported with a day lag). Further details of the daily update revealed that COVID-19-related hospitalizations increased by 16 to 3,437 as of Wednesday , a 12th straight record high. 75 Arizonans died, pushing the state's death toll above 2k. Adult intensive care unit beds in use by all patients in the state edged lower from 91% on Tuesday to 89% on Wednesday. Here's more from the state's dashboard: The positivity rate tumbled to 11.5% on Thursday, well below the nearly 30% rate the state reported yesterday. As states cleared a rumored weekend backlog yesterday, at least five states - Missouri, Tennessee, Texas, Utah and West Virginia - set single-day records for new infections on Wednesday, per the NYT.. Additionally, the NYT this morning declared Arizona the world's biggest "hot spot", claiming the state has the largest infection rate (often represented by the variable "R") in the world. The NYT ranked Arizona No. 1, with about 3,300 cases per 1 million in population, with Florida (2,700) and South Carolina (2,300) following. Bahrain (2,200) took the No. 4. spot.
Florida Sees Record Deaths; Arizona Cases Spiking: Virus Update -- Florida reported records in both new hospitalizations and deaths, while Arizona added 4,057 new cases, the most in six days. In New York, there were 95% fewer outdoor diners at restaurants than a year ago and public transport has stalled at about half pre-pandemic levels. This comes as the state’s infection rate has fallen to about 1% of daily testing. Fewer Americans than forecast have applied for unemployment benefits, easing concerns of a renewed downturn as an acceleration in new cases in the U.S. and Mexico pushed the global total past 12 million. Still, Wells Fargo & Co., the largest employer among U.S. banks, is preparing to cut thousands of jobs starting this year. Hong Kong will tighten social distancing rules after reporting 42 new cases on Thursday, of which 34 were domestic. Tokyo found 224 new incidences, a record for a single day. The World Health Organization, meanwhile, started a review into its response to the outbreak that’s been criticized by the U.S. Miami-Dade County, Florida’s most populous, again reported the highest numbers of virus patients in intensive care and hospitals generally since at least early April. Miami-Dade has 1,688 people in hospitals, up 32 from a day earlier. The number of patients in intensive-care beds rose to 358 from 343. Covid-19 patients on ventilators jumped to 184 from 175 a day earlier and was at the highest since April 20, according to the county’s daily report on Wednesday, based on self-reporting by hospitals.
Florida emerges as world's new epicenter for COVID-19 - Florida has emerged as a global epicenter of the latest coronavirus surge, raising questions about the safety of major events that relocated to the state. As coronavirus cases surged throughout much of the Northeast in April and May, Florida Gov. Ron DeSantis (R) declared victory. Florida was one of the last states to impose a stay-at-home order, and one of the first to reopen. DeSantis earned praise from President Trump for his response to the pandemic and attacked the media for fearmongering after the state reopened its beaches. “When you look at some of the most draconian orders that have been issued in some of these states and compare Florida in terms of our hospitalizations ... I mean, you go from D.C., Maryland, New Jersey, New York, Connecticut, Massachusetts, Michigan, Indiana, Ohio, Illinois — you name it — Florida has done better,” DeSantis said from the Oval Office in late April. Buoyed by the low infection rates and encouraged by the White House, the state’s first phase of reopening included restaurants, gyms, barbershops and large spectator sporting events, with reduced capacity. Professional sports leagues, including the NBA and Major League Soccer, announced they would resume their seasons in Florida. The Republican National Convention was moved to Jacksonville from Charlotte, N.C., because there would be fewer restrictions. But weeks later, infections are skyrocketing. Some sports teams have already arrived in the state, and league leaders are facing questions about whether it’s safe to continue with their plans. In an interview with Fortune magazine, NBA Commissioner Adam Silver acknowledged the situation in Florida was not the same as when the league made its decision to play in Disney World. But Silver said he wasn’t sure what the threshold would be to cancel the remainder of the season that’s supposed to resume July 30. On Wednesday, Florida reported nearly 10,000 new cases. There are nearly 220,500 positive cases statewide, and the test positivity rate has been above 14 percent for more than a week. Adding to the trouble, hospitals across the state are running out of beds in the intensive care units, although state officials say there is still plenty of capacity and hospitals have the ability to add surge beds. According to a state dashboard from the Agency for Health Care Administration (AHCA), hospitals have less than 15 percent ICU capacity available. Statewide, 42 hospitals have no ICU beds available, though that number is down from the 56 hospitals reported on Tuesday. DeSantis has refused to release data on daily hospitalizations, despite pledging to do so. Florida is one of the only states that doesn’t publicly release that information.
Florida adds record 120 coronavirus deaths, 411 hospitalizations on Thursday - Florida’s surge in coronavirus cases continued on Thursday, with deaths and hospitalizations hitting record daily levels as the state’s hospitals reported their intensive care beds were filling up fast -- including at Tampa General Hospital, which reported all 105 in its facility as occupied.Of the 120 deaths reported statewide Thursday, 40 were in the Tampa Bay area, including 19 in Hillsborough County. That’s the most deaths any local county has reported in one day since coronavirus deaths began being recorded in the state in March.The state deaths included an 11-year-old Broward girl, the second 11-year-old child to die from the coronavirus in the state in the last week. The girl, Yansi Ayala, had cerebral palsy and other health issues,according to South Florida news outlets.The growing numbers had health experts concerned about what’s to come, especially considering hospitalizations and deaths lag behind high case numbers by weeks.“We’re not over this at all,” said Dr. Marissa Levine, a professor of public health and family medicine at the University of South Florida. “If we’re going to really flatten this curve it’s going to require everybody doing their part.”The deaths recorded Thursday bring the total victims of the pandemic statewide to 4,111.The previous single-day high for deaths was 113 people recorded in early May, part of which resulted from the Department of Health including non-Florida residents in its count that day, including some that appeared to die within the state weeks earlier. No other day has come close to passing that May record.The weekly average deaths from coronavirus in Florida is now about 56 a day. In the past week, the state has recorded 393 deaths.The state also added 8,935 new infections, bringing the total to 232,718 people who have had coronavirus since recording began in March.The state also broke its record for hospitalizations by adding 411 over 24 hours. The previous high for new hospitalizations was an increase of 400 people, recorded in mid-May.Across the state, about 14 percent of ICU beds are available, according to the Agency for Healthcare Administration. About 17,500 people have had to seek hospitalization because of the virus.
US posts over 68K new virus cases, setting record for third straight day -The U.S. on Friday reported more than 68,000 new COVID-19 cases, breaking the country's record for the daily number of new cases for the third consecutive day as the growing pandemic tightens its grip on the country.Friday's total was a significant rise from Thursday's record mark of 59,886, according to The New York Times' tally, though it also underscores the massive jump in new cases over the past two weeks. Friday's record of 68,100 represents an 84 percent increase over the last 16 days, the Times found.Several states set new records for the number of new cases on Friday, including Georgia, Utah, Montana, North Carolina, Iowa and Ohio. Georgia, the first state to begin reopening its economy amid the pandemic, recorded 4,904 cases on Friday, smashing its previous record of 2,886 on July 2. Atlanta officials have signaled that the city could be shifting back to "Phase 1" guidelines, which largely direct people to stay at home. The city's mayor, Keisha Lance Bottoms (D), tested positive for COVID-19 this week, though she says she is asymptomatic. She made wearing a masks while in public a requirement for city residents on Wednesday. Texas reported 9,923 new cases on Friday after seeing nearly 11,000 cases on Thursday, a record. Gov. Greg Abbott (R) has re-shuttered bars and mandated that all Texans wear masks while out in public, but he warned Friday that more restrictions could be coming, predicting that "things will get worse." "This was a very tough decision for me to make,” Abbott said in a TV interview, explaining the mask requirement. “I made clear that I made this tough decision for one reason: It was our last best effort to slow the spread of COVID-19. If we do not slow the spread of COVID-19 … the next step would have to be a lockdown.” Florida, which has become one of the main epicenters in the world for the pandemic, nearly broke its record for daily cases that it set on July 4, reporting 11,433 new cases on Friday. Despite the surge in cases, Gov. Ron DeSantis (R) has said that he will not shut the state down again. "We're open. We know who we need to protect Most of the folks in those younger demographics, although we want them to be mindful of what's going on, are just simply much much less at risk than the folks who are in those older age groups," he said late last month.
Coronavirus deaths rise again amid mounting outbreaks - Coronavirus deaths are rising in hard-hit states and starting to tick back up nationally, a sign that mounting outbreaks are taking a serious toll. Arizona, California, Texas and Florida all set record numbers of daily deaths in recent days. According to an analysis from the Harvard Global Health Institute, daily deaths over the past two weeks from the coronavirus are up 79 percent in Arizona, 37 percent in Florida and 52 percent in Texas. The mounting deaths undercut President Trump’s effort to downplay the explosion of new cases by pointing to the death rate. Earlier this week, Trump had pointed to falling death counts to push back at criticism over his response to the crisis, given the rising case numbers. Nationally, the number of deaths per day from the coronavirus has been falling for months. But that drop has largely been driven by the improving situation in the Northeast, which has outweighed the worsening situation in the South and Southwest. Deaths are also a lagging indicator, meaning it takes time for people to die from the disease, so rises in cases and hospitalizations will show up first. Now, as the situation worsens in the hard-hit states, even the national number of deaths is starting to tick back up. Daily deaths hit their highest point since early June in the past three days, with 867 deaths reported Thursday, according to The COVID Tracking Project. And while the case fatality rate in the United States is lower than in some major European countries, it is not the lowest in the world, according to Johns Hopkins University data. Experts said that despite the efforts by some to downplay the severity of the outbreaks in the U.S., it should not be surprising that deaths are rising. “It’s so crazy that we have to prove to people that sick people die,” said Ashish Jha, director of the Harvard Global Health Institute.
July 11 COVID-19 Test Results; Highest Percent Positive Since Early May - The US is now conducting over 600,000 tests per day, and that might be enough to allow test-and-trace in some areas. 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.There were 633,974 test results reported over the last 24 hours. There were 63,007 positive tests.This data is from the COVID Tracking Project. The percent positive over the last 24 hours was 9.9% (red line).For the status of contact tracing by state, check out testandtrace.com.
Thousands of public housing tenants under hard lockdown as COVID-19 spreads Thousands of public housing residents will be locked in their homes for five days, and two more suburbs in Melbourne's inner-north were added to the city’s list of "hotspots", after Victoria recorded 108 new coronavirus cases on Saturday. Nine public housing estates in Flemington and North Melbourne were placed in a "hard lockdown" from 4pm on Saturday, with 500 police stationed across every floor of the towers, as more than 23 cases were identified stretching across a dozen households. The hard lockdown – the most severe restriction imposed so far, which will deprive some of Victoria’s most disadvantaged people of their freedom – will mean all occupants in the towers will be banned from leaving their apartments for at least five days. "There will be no one going in other than residents returning home, and no one will be allowed out," Premier Daniel Andrews said. "I don’t for a moment underestimate how challenging and how traumatic in some respects that will be for those 3000 residents." From midnight on Saturday, the suburbs of Flemington, Kensington and North Melbourne were added to 36 others where stage three coronavirus restrictions have been reapplied. This means residents can only leave their home for four reasons: food or essential supplies; medical care or caregiving; exercise; or for work or study. Housing Minister Richard Wynne acknowledged how difficult the hard lockdown would be for residents in the housing commission towers. "People living in these public housing towers are some of the most vulnerable people in our community," he said. But Mr Andrews said the step was necessary.
Catalonia locks down 200,000 over coronavirus outbreak - Spain's northeastern Catalonia region on Saturday locked down an area with about 200,000 residents following a surge in cases of the new coronavirus. Catalonia's regional president Quim Torra said there had been a "sharp rise" in infections in Segria, a zone that includes the city of Lleida some 150 kilometres (90 miles) west of Barcelona. "We've decided to confine Segria due to data that confirm too significant a growth in the number of COVID-19 infections," Torra told a news conference. People would not be allowed to enter or leave the area, gatherings of more than 10 people would be banned and visits to retirement homes halted, officials said. The restrictions do not apply to seasonal harvest workers, and movement is not restricted within the zone, however. Regional health ministry data showed there were 3,706 cases in the Lleida region on Friday, up from 3,551 the previous day. Catalonia is one of the hardest-hit parts of Spain, with a total of 72,860 coronavirus cases, according to regional health ministry data released on Friday. The move came as the summer holiday started in Spain and the country began re-admitting visitors from 12 countries outside the European Union, two weeks after allowing people from the EU's visa-free Schengen zone and Britain to return. "It is a surprise," said Josep Raluy, a 63-year-old retiree who returned to the area from a second home as a precaution. "It's another step backwards, it's not good." Spain has been one of the countries worst hit by the coronavirus pandemic with at least 28,385 deaths, Europe's fourth-highest toll after Britain, Italy and France.
India just surpassed Russia to become the country with the 3rd-highest number of coronavirus infections - India recorded just shy of 24,000 new COVID-19 cases on Sunday, raising its total to 697,836, according to Worldometer data. A similar surge was reported one day earlier, as 24,015 new cases were recorded Saturday, according to Worldometer data. The new data brought country's total case count ahead ahead of Russia's 681,251 and placed it third in the world behind the US and Brazil for total confirmed cases. New Delhi, India's capital, leads the country in new COVID-19 cases, according to the BBC. Last week, the outlet reported that the capital city was the country's largest hot spot, with nearly 80,000 cases. India's rising case counts are not for lack of trying to contain the spread, according to The Guardian, as Prime Minister Narendra Modi instituted strict lockdown measures and has expressed consistent social-distancing messages since the lockdowns began in March. The country exited a two-month lockdown at the end of May only to find that it didn't succeed in flattening any curve, however, The Washington Post reported. Modi has already stated his opposition to another national lockdown, according to NPR, but some cities are preparing to reenter lockdown in 10-day increments. India Today reports that cities surrounding Mumbai will, once again, be forced into lockdown with exemptions only for workers deemed essential. India is the world's most populous country, with over 1.3 billion people — more than triple the US population. As The Guardian reports, testing facilities couldn't keep up with demand, with a single testing lab in one area meant to serve 30 million people. While attempting to fight off the coronavirus, India has also been suffering through a heat wave that has worsened the crisis as residents struggle with staying at home, according to the Associated Press. Temperatures soared to nearly 120 degrees Fahrenheit in New Delhi in late May, making mask wearing unbearable to some and social distancing harder to maintain.
Ecuador hospitals under pressure, on verge of collapse (video) Health workers in Ecuador's capital say hospitals are on the verge of collapse, because of the number of new coronavirus cases. More than 59,000 people are infected and at least 4,600 have died. Al Jazeera’s Teresa Bo reports.
Brazil’s fascistic President Bolsonaro tests positive for coronavirus --Brazil’s fascistic President Jair Bolsonaro announced yesterday morning to a group of reporters that he tested positive for the new coronavirus, after first presenting symptoms on Sunday. The COVID-19 pandemic has already reached catastrophic dimensions in Brazil, with more than 1,600,000 infected and 66,000 dead, according to the official count. This toll is surpassed internationally only by the United States. The impact of the virus continues to expand, with a weekly average of about 37,000 new cases per day. Amidst this scenario, Bolsonaro used his interview, watched by millions of Brazilians and an international audience, to reaffirm his criminal message on behalf of the entire Brazilian ruling class: “Life goes on, Brazil has to produce, we have to activate the economy.” Bolsonaro reminded everyone that, at first, he was attacked by his political rivals for his sociopathic perspective. “Some people talked in the past, criticizing me, that the economy recovers, life doesn’t,” he said in direct reference to a phrase by Wilson Witzel, governor of Rio de Janeiro. “The guns were all pointed at me, criticizing me very harshly. We suffered a lot, but now you can all see that we were right”. The positions that Bolsonaro claims have been substantiated are actually a set of unscientific assertions about the nature of the coronavirus and policies in response to the pandemic that have proven completely false and of terrible consequence. The fascistic president’s main argument is that the virus is like a “rain” that will inevitably fall on everyone. But, he claimed, the dangers of the disease, which has already killed more than half a million people worldwide, would pose no serious risk to the population.
South Africa sees surge in COVID-19 as restrictions lifted - The lifting of the lockdown and social distancing measures has caused a surge of coronavirus infections in South Africa. The total number of cases is now approaching 210,000 and the number of deaths is over 3,300. This makes South Africa the country with the second highest number of deaths, behind Egypt, and the largest number of cases on the continent. The numbers are expected to peak in July and August, particularly in Gauteng, the country’s industrial hub—where the sharp increases in cases could overwhelm the province’s health system—as well as the Western Cape and Eastern Cape provinces. Health experts have warned that deaths from COVID-19 could reach from 40,000 to more than 70,000 deaths before the end of the year. The surge follows the government’s reopening of the economy in May, as South Africa’s economy teeters on the brink. The pandemic has worsened the already high rate of unemployment and drastically increased hunger. Shabir Madhi, professor of vaccinology at Johannesburg’s University of the Witwatersrand, speaking of the devastating impact of these numbers, said, “We’re seeing a spike in infections in Johannesburg [the country’s largest city]. The number of people that we are diagnosing on a daily basis now is absolutely frightening.” He added, “Who we are finding positive now is an indication of who will be in hospital three weeks from now.” Despite the surge in cases, President Cyril Ramaphosa has said that the African National Congress (ANC) government does not intend to reinstate a nationwide lockdown to stop the spread of the virus. Ramaphosa told Business Insider, “Another hard lockdown is not being considered for now, the issue of jobs lost concerns us. Other countries are experiencing even bigger losses. We are developing various other ways of responding to this.” By this, he means social distancing and mask wearing.
"Don't Let Them Vaccinate You": Farrakhan Warns Africans That Dr. Fauci Is Trying To Kill Them - It is bad enough when you become a political rally cry for the right as a man trying to destroy our economy or instill fear into the nation. Now, Dr. Anthony Fauci is being called a mass murderer who, with the cabal of Bill and Melinda Gates, are seeking to “depopulate the Earth.” That is hardly the most deranged thing that Nation of Islam leader Louis Farrakhan, 87, has uttered, but it may be the most dangerous. Farrakhan is encouraging people to refuse vaccinations, a problem that is already causing world health leaders concerns in Africa. This is viewed as the new “epicenter” for the pandemic with Africans facing a threat with the need to protect hundreds of millions of Africans. Health officials will need their cooperation but they have now heard from Farrakhan who has declared that, if they want to live, “Do not take their medication.” In this Fourth of July remarks, Farrakhan declared that“They’re making money now, plotting to give seven billion, five-hundred million people a vaccination. Dr. Fauci, Bill Gates and Melinda — you want to depopulate the Earth. What the hell gave you that right? Who are you to sit down with your billion to talk about who can live, and who should die?… I say to my brothers and sisters in Africa, if they come up with a vaccine, be careful. Don’t let them vaccinate you with their history of treachery through vaccines, through medication.” He added “That’s why your world is coming to an end quickly, because you have sentenced billions to death, but God is now sentencing you to the death that you are sentencing to others.”
Toxic hand sanitizers have blinded and killed adults and children, FDA warns - Adults and children in the United States have been blinded, hospitalized, and, in some cases, even died after drinking hand sanitizers contaminated with the extremely toxic alcohol methanol, the Food and Drug Administration reports. In an updated safety warning, the agency identified five more brands of hand sanitizer that contain methanol, a simple alcohol often linked to incorrectly distilled liquor that is poisonous if ingested, inhaled, or absorbed through the skin. The newly identified products are in addition to nine methanol-containing sanitizers the FDA identified last month, which are all made by the Mexico-based manufacturer Eskbiochem SA de CV. According to FDA testing, one of the products contained 81 percent methanol and no ethanol, a safe alcohol typically used in hand sanitizers. Methanol is metabolized to formaldehyde, then to formic acid inside the body. This can lead to a dangerous buildup of acid in the bloodstream that damages organs and tissues, particularly the optic nerve, causing vision impairment and blindness. Drinking as little as 30 milliliters—2 tablespoons—may be lethal to children, and even smaller amounts can cause blindness.But drinking isn’t the only way methanol causes severe harms. Inhaling or absorbing methanol through the skin can lead to the same systemic effects seen from ingestion. Those can manifest as nausea, vomiting, headache, blurred vision, permanent blindness, seizures, coma, permanent damage to the nervous system, or death, the FDA notes.“Although all persons using these products on their hands are at risk for methanol poisoning, young children who accidently ingest these products and adolescents and adults who drink these products as an alcohol (ethanol) substitute, are most at risk,” the FDA said in its warning. Risks are heightened further amid the current COVID-19 pandemic since many people are using hand sanitizer more frequently to try to protect against the devastating new coronavirus. The newly identified products are as followed: (list) The full list of product codes can be found here.
FDA expands list of hand sanitizers to avoid due to methanol risk with more being recommended for recall - The Food and Drug Administration has expanded the number of hand sanitizers to avoid because they may contain methanol, a toxic substance when absorbed through skin or ingested.The FDA now lists on a chart 59 varieties of hand sanitizer that should be avoided, some which have already been recalled, and other products being recommended for recalls as they may contain the potentially fatal ingredient.All of the products in the FDA's latest methanol update appear to have been produced in Mexico. The FDA says it has "seen a sharp increase in hand sanitizer products that are labeled to contain ethanol (also known as ethyl alcohol) but that have tested positive for methanol contamination." In June, the FDA warned consumers not to use nine kinds of hand sanitizers because they may contain methanol, and added to the list in early July."Methanol is not an acceptable active ingredient for hand sanitizers and must not be used due to its toxic effects," the FDA said, noting its investigation of methanol in certain hand sanitizers is ongoing. Methanol is used industrially as a solvent, pesticide and alternative fuel source, according to the Centers for Disease Control and Prevention. Exposure to it can cause nausea, vomiting, headache, blurred vision, permanent blindness, seizures, coma, permanent damage to the nervous system and death.
Salmonella outbreak: One person has died and 465 people have gotten sick after interacting with pet poultry - One person has died and 86 have been put into the hospital in the latest outbreak of salmonella connected to pet poultry, the US Centers for Disease Control and Prevention reported Wednesday. The CDC says 368 people have reported getting sick since May 20, bringing this year's total to 465 poultry-related salmonella cases reported in 42 states. That's about twice as many as were reported at the same time last year, the CDC said.The CDC says 86 people have been hospitalized. One person in Oklahoma has died from the infection. About a third of those who have gotten sick are young children under the age of 5.Backyard flocks have become an increasingly popular hobby. People often say they want to raise the birds because they have an interest in knowing where their food comes from, but it's also about more than just fresh eggs. People say they like the companionship the birds provide, much like a cat or dog would. Media reports at the start of the Covid-19 pandemic showed that hatcheries nationwide saw a spike in orders for the birds. The hobby can be fun and educational, but families have to be aware of how to safely manage the animals,according to the CDC. It's a little different than raising a dog or cat.
Bubonic Plague Case Confirmed in China's Inner Mongolia --A herdsman in the Chinese autonomous region of Inner Mongolia was diagnosed with the bubonic plague Sunday, The New York Times reported.The Bayannur city health commission confirmed the diagnosis and issued a third-level alert, the second from the bottom in a four-level system. Mongolian health authorities are also investigating a second suspected case involving a 15 year old who developed a fever after coming into contact with a marmot that had been hunted by a dog, China's Global Times tweeted. "At present, there is a risk of a human plague epidemic spreading in this city. The public should improve its self-protection awareness and ability, and report abnormal health conditions promptly," the local health authority said, according to China Daily.The bubonic plague caused the Black Death that killed around 50 million people in Africa, Asia and Europe during the 14th century, according to BBC News. But public health experts say it is unlikely to give the newcoronavirus a run for its money as a global pandemic."Unlike in the 14th Century, we now have an understanding of how this disease is transmitted," Stanford Health Care infectious disease physician Dr. Shanti Kappagoda told Heathline, according to BBC News. "We know how to prevent it. We are also able to treat patients who are infected with effective antibiotics." Bubonic plague is caused by the Yersinia pestis bacterium which is spread from infected rodents to humans by fleas, according to The New York Times. In Inner Mongolia, the rodents in question are usually marmots, and the health alert put in place by Bayannur health officials warns against eating, hunting or transporting potentially infected animals and urges people to report diseased or dead rodents. The alert will remain in place till the end of the year, according to BBC News.
China Confirms Case of Bubonic Plague In Inner Mongolia - China has confirmed one case of bubonic plague in northern province Inner Mongolia, according to a statement on the local health authority’s website. The patient is now under treatment at a hospital and is in a stable condition, the Bayannur health commission said in a late Sunday night statement. It also issued a level-three alert, warning of the risks of human-to-human infection and urging citizens to report dead animals, suspected plague cases and patients running a fever for unidentified reasons.Bubonic plague, also called the ‘Black Death’, killed 50 million people in a 14th century outbreak in Europe and about 12 million globally in the 19th century. It’s now the most common type of plague and can be treated with antibiotics. Inner Mongolia reported four cases in November while Madagascar sees some cases nearly every year between the months of September and April.Sign up here for our daily coronavirus newsletter on what you need to know, and subscribe to our Covid-19 podcast for the latest news and analysis.Mongolia also confirmed two cases of bubonic plague earlier this month, triggering a quarantine in the province that borders China and Russia.Treatable AilmentWhile the ailment is treatable, unlike the novel pathogen which has caused the ongoing pandemic, Chinese health authorities are wary of any infectious disease spreading after a hard-fought containment of the coronavirus outbreak. Residents have been asked to take precautions while going to the grasslands, and refrain from approaching and eating wild animals.Bubonic plague is a bacterial infection and is characterized by painful swollen lymph nodes or ‘buboes’. Less deadly than the pneumonic plague, it occurs when an infected flea bites a person or when materials contaminated with the pathogen enter through a break in a person’s skin.
Deadly Brain-Eating Amoeba Confirmed in Florida - As if the surging cases of coronavirus weren't enough for Floridians to handle, now the state's Department of Health (DOH) has confirmed that a person in the Tampa area tested positive for a rare brain-eating amoeba, according to CBS News. The Florida DOH posted a warning to residents to remind them of the dangers of the rare single-celled amoeba that attacks brain tissue. The amoeba is known, scientifically, as Naegleria fowleri. Only four people have survived Naegleria fowleri in the U.S. between 1962 and 2016, out of 143 who contracted the disease, as The Independent reported. There have been only 37 cases reported in Florida since 1962, which makes up nearly 26 percent of all instances in the U.S. Naegleria fowleri is typically found in warm freshwater such as lakes, rivers and ponds. The Florida DOH has cautioned people who swim in those freshwater sources to be aware of the amoeba's possible presence, particularly when the water is warm, according to CNN. The DOH did not disclose where in Hillsborough County the patient had contracted the amoeba, nor the patient's condition, according to The Independent. The amoeba's deadly effects happen when it causes a rare infection of the brain called primary amebic meningoencephalitis (PAM), which destroys brain tissue and is usually fatal, according to Fox News. "Infections can happen when contaminated water enters the body through the nose," the DOH said in its letter. After the amoeba enters the nose through contaminated water, it then travels to the brain where it causes PAM, according to health officials. "Infections usually occur when temperatures increase for prolonged periods of time, which results in higher water temperatures and lower water levels," health officials stated in their letter.
Eight million locusts have entered Nepal, consuming hundreds of hectares of crop - The first swarm of locusts, which had entered the country on Saturday morning, have already wrought havoc on a number of districts, especially in the Tarai. Since then, the locusts have quickly spread to 27 districts, including districts as high as Khotang, Okhaldhunga, Rukum West, Mustang and Solukhumbu. These large swarms are regularly breaking off and forming smaller groups and flying haphazardly in the sky, according to the Locust Information Centre at the Agriculture Ministry, formed on Sunday to keep track of the swarms and find ways to contain them.As per the Plant Quarantine and Pesticide Management Centre’s initial estimates, around seven to eight million locusts have entered Nepal. Currently, over three million are believed to be actively flying around Nepali skies in groups that can potentially damage crops, after others died off or got separated from their large swarms. The Centre, on Wednesday afternoon, issued an alert warning farmers of swarms of locusts living along the Nepal-India border that could enter Nepal given favourable winds.According to Subedi, who also heads the Centre’s information centre, five large swarms have been sighted in Bara, Parsa, Sarlahi, Bhairahawa and Kapilvastu. On Wednesday, a large swarm of locusts was seen moving towards Dhaulagiri Base Camp, flying along the Myagdi river. “Some bugs have been seen in Dhaulagiri Municipality. A big swarm is marching towards the mountains,” said Thamsara Pun, chairperson of Dhaulagiri Municipality. “We have not yet seen locusts devouring crops but we have asked locals to create smokes and chase them away.” The country’s weather, which had been impacted by westerly winds coming from the Arabian Sea in the last few days, will receive southeasterly winds for at least the next three days, according to the special weather bulletin from the Meteorological Forecasting Division. This change in wind direction is likely to coincide with the locust swarms in India’s Bhagalpur and Motihari and another group flying towards Champaran district from Kushinagar. These swarms are likely to enter Nepal, according to an alert from the Plant Quarantine and Pesticide Management Centre. According to the Food and Agriculture Organization of the United Nations, the desert locust (Schistocerca gregaria) is considered the most dangerous of all migratory pest species in the world.
Anti-locust operation completed over 2.294 million acres : NLCC - The anti-locust operations have been carried out in 9, 297 square kilometers, approximately 2.2927 million acres of land across 31 affected districts of the country in order to eradicate the locusts swarms. As many as 966 joint teams comprising over 5,082 people took part in the anti-locusts operations across the country, according to details released by the National Locust Control Center (NLCC). The joint teams of the Ministry of National Food Security, provincial agriculture departments and the Pakistan Army were conducting a comprehensive survey and control operation against the locusts in different districts and so far 388,378 square kilometers (90.55) million acres had been surveyed. About 5,082 people and 648 vehicles took part in the anti-locust operation, the NLCC data said. In the Punjab province, about 234,128 acres had been surveyed during last 24 hours and while control operation was performed over 999 acres. More than 2,282 people and 323 vehicles took part in the exercise, it added. So far the survey was completed over an area of approximately 2.83 million acres and anti-locust operation carried out on 949,910 acres. In the Sindh province the survey was conducted over 93,900 acres and the locust presence was confirmed in four districts, while anti-locust operation was carried out on 2,217 acres. More than 109 vehicles and 865 people, including the Pakistan Army personnel, participated in the campaign. So far, the survey was completed on 14.4 million acres of land in Sindh, with locust control operation carried out on area of 154,527 acres.
Six states on high alert as govt warns of more locust swarms - More swarms of crop-eating locusts are likely to migrate from Somalia to the summer breeding areas along the India-Pakistan border, the agriculture ministry has said in a statement, prompting officials in six most “at-risk” states to be on high alert. Operations to control infestation are continuing in six states -- Rajasthan, Madhya Pradesh, Punjab, Gujarat, Uttar Pradesh, and Haryana -- by locust circle offices. The invasions have caused “minor crop losses”, according to a status update till July 3. The UN’s Food and Agricultural Organisation (FAO) has said locust invasions from Africa, the worst in 70 years, pose a “serious” risk to the country’s agriculture. Currently, immature pink locusts and adult yellow locusts are active in Jaisalmer, Barmer, Jodhpur, Nagaur, Sikar, Jaipur, and Alwar of Rajasthan and Tikamgarh (Madhya Pradesh), according to the update. An inter-ministerial empowered group has ramped up resources to protect the country’s robustly progressing kharif or summer-sown crops. It has hired five technology firms to provide five advanced drones each of up to 50kg each, apart from helicopters hired from Pawan Hans Ltd. Till July 3, control operations have been carried out in 1,32,777 hectares in Rajasthan, Madhya Pradesh, Punjab, Gujarat, Uttar Pradesh and Haryana. State governments have carried out containment in another 1,13,003 hectare. One hectare equals 2.5 acre. “The use of drones is something new and is evidently very effective. India should maintain enough production and supply of malathion, the main pesticide effective against locust, throughout the summer months,” said Pramod Vajpayi, a former entomologist with the Indian Council of Agricultural Research. So far, 12 drones have been deployed in Jaisalmer, Barmer, Jodhpur, Bikaner, and Nagaur. Drones are effective for covering tall trees and inaccessible areas. One drone can douse crops with pesticides in 16-17 hectare area in one hour.
Africa’s locust outbreak is far from over - The crunch of young locusts comes with nearly every step. The worst outbreak of the voracious insects in Kenya in 70 yearsis far from over, and their newest generation is now finding its wings for proper flight.The livelihoods of millions of already vulnerable people in East Africa are at stake, and people like Boris Polo are working to limit the damage. The logistician with a helicopter firm is on contract with the United Nations Food and Agricultural Organization, helping to find and mark locust swarms for the targeted pesticide spraying that has been called the only effective control. “It sounds grim because there’s no way you’re gonna kill all of them because the areas are so vast,” he told The Associated Press from the field in northwestern Kenya on Thursday. “But the key of the project is to minimize” the damage, and the work is definitely having an effect, he said.For months, a large part of East Africa has been caught in a cycle with no end in sight as millions of locusts became billions, nibbling away the leaves of both crops and the brush that sustains the livestock so important to many families. “The risk of significant impact to both crops and rangelands is very high,” For now, the young yellow locusts cover the ground and tree trunks like a twitching carpet, sometimes drifting over the dust like giant grains of sand.In the past week and a half, Polo said, the locusts have transformed from hoppers to more mature flying swarms that in the next couple of weeks will take to long-distance flight, creating the vast swarms that can largely blot out the horizon. A single swarm can be the size of a large city.Once airborne, the locusts will be harder to contain, flying up to 200 kilometers (124 miles) a day.“They follow prevailing winds,” Polo said. “So they’ll start entering Sudan, Ethiopia and eventually come around toward Somalia.” By then, the winds will have shifted and whatever swarms are left will come back into Kenya. “By February, March of next year they’ll be laying eggs in Kenya again,” he said. The next generation could be up to 20 times the size of the previous one.The trouble is, only Kenya and Ethiopia are doing the pesticide control work. “In places like Sudan, South Sudan, especially Somalia, there’s no way, people can’t go there because of the issues those countries are having,” Polo said. “The limited financial capacity of some of the affected countries and the lockdown due to the coronavirus pandemic have further hampered control efforts. Additionally, armed conflict in Somalia rendered some of the locust breeding areas inaccessible,”
Roundup Cancer Settlement Hits Snag Over Future Plaintiffs' Rights - Bayer's $10 billion settlement to put an end to roughly 125,000 lawsuits against its popular weed killerRoundup, which contains glyphosate, hit a snag this week when a federal judge in San Francisco expressed skepticism over what rights future plaintiffs would have, as the San Francisco Chronicle reported.The $10 billion settlement does not actually need judicial review and is set to move forward. The issue is that $1.25 billion from the settlement does need a court order to be approved. That part deals with future lawsuits by cancer patients who have not yet gone to court and by others who have not yet been diagnosed. The U.S. District Judge Vince Chhabria said in an order Monday that he had questions about the legality and fairness of the agreement and was "tentatively inclined" to reject it, as the San Francisco Chronicle reported.In a court filing on Monday, the judge described a plan to create a class action for future litigants as problematic, and he set a July 24 hearing date to address the matter, as Bloomberg reported. "We appreciate the judge's order raising his preliminary concerns with the proposed class settlement, which we take seriously and will address" at the hearing, Chris Loder, a U.S.-based spokesman for the Germany-based chemical and pharmaceutical giant Bayer, said in an interview. Chhabria said he "is skeptical of the propriety and fairness of the proposed settlement." 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, according to The New York Times. Right now about 30,000 claims contending Roundup caused non-Hodgkin's lymphoma are left unsettled. Some lawyers in the U.S. have vowed to file another wave of new suits that could add tens of thousands to the logjam of existing cases, according to Bloomberg. Bayer has lost a series of high-profile multi-million dollar cases for Roundup's role in causing non-Hodgkin's lymphoma in people who used the Monsanto brand herbicide. That series of losses has seen investors flee from Bayer since it acquired Monsanto for $63 billion in 2018. To stem the tide of suits, Bayer insisted that the protection against future suits is a linchpin of the current settlement. Without it, the bulk of the $10 billion deal has the potential to fall apart, according to The New York Times. In addition to the $8.8 billion to $9.6 billion to cover about 95,000 cases, $1.25 billion was set aside to finance the scientific panel and assist impoverished Roundup users with non-Hodgkin's lymphoma. As The New York Times described, that panel would then decide whether glyphosate caused cancer and, if so, what exposure level was dangerous. Both Bayer and claimants would be bound to accept the findings in future litigation. New York-based lawyer Hunter Shkolnik opposed the novel class-action idea from the onset. He described it as "nothing more than a legally infirm, backroom deal to protect Monsanto rather than compensating Roundup cancer victims," in an emailed statement to Bloomberg.
The complex relationship between deforestation and diet diversity in the Amazon - Microplastic fiber pollution in the ocean impacts larval lobsters at each stage of their development, according to new research. A study published in the Marine Pollution Bulletin reports that the fibers affect the animals' feeding and respiration, and they could even prevent some larvae from reaching adulthood."In today's ocean, organisms are exposed to so many environmental factors that affect how many make it to the next stage of life," said Paty Matrai, a study author and senior research scientist at Bigelow Laboratory for Ocean Sciences. "Lobsters play a fundamental role in the Gulf of Maine ecosystem as well as the state's economy, and it is important that we understand how pollutants impact their development."Young lobsters grow to adulthood through four distinct developmental stages, and the researchers found that the physiology of each stage determined how the animals interacted with plastic fibers. The youngest lobsters didn't consume them - but they were plagued by fibers accumulating under the shells that protect their gills. In experiments where the larvae were exposed to high levels of fibers, the youngest larvae were the least likely to survive. More mobile and agile, the older lobster larvae did not accumulate fibers under their shells - but they did ingest the particles and keep them in their digestive systems. This could be problematic for lobster larvae coming of age in the ocean. Fresh plastics often leach chemicals, and their surfaces can foster potentially toxic sea life.
A Big Rat in Congress Helped California Farmers in Their War Against Invasive Species California Rep. Josh Harder needed a way to convince the U.S. House of Representatives to pay attention to his speech about invasive species during a meeting in February. So he brought in a hefty rat carcass and laid it on the table next to him.The taxidermied rat, which Harder called "Nellie," convinced the House to unanimously pass a bill that supports eradication efforts in states infested with nutria, large rodents also known as swamp rats that are native to South America. The legislation would revise the Nutria Eradication and Control Act of 2003, which initially provided grants to Maryland and Louisiana, to expand nutria eradication efforts to about a dozen states, including California. The nutria has been established in 17 states. A spokesperson for Harder said it was unclear when the bill would be introduced in the Senate. He said the pandemic has slowed down the momentum behind the bill. If enacted, the legislation would provide $12 million for nutria eradication, and California would receive a substantial portion of that sum. The money would be an addition to $10 million allocated to California last year for an eradication team trained to tackle the species. In April, the eradication team put a tracking device in a neutered nutria to track where the rest of the animals are located. Harder said the initiative is working and since May, California has caught 1,000 of the rodents. But more federal funding is needed to make the program fully operational, Harder said. The nutria is one of the most recent invasive species to arrive in California and one of the most harmful. For the last year, the rodents have plagued California's Central Valley region, posing risks to agriculture and the environment by eating up crops and polluting canals, Harder said. Even with the current pandemic and resulting economic downturn, California plans to spend millions to eradicate the nutria, and farmers are on high alert. With its diverse topography, more than 400 commodity crops and lucrative agriculture industry, California faces a massive threat from invasive species, and the state spends millions every year to mitigate their impact. Harder's goal is to eradicate the animals by 2025, potentially an arduous effort considering that one female nutria can produce more than 200 offspring in a year, he said. "If we don't get this under control in California, there'll be 250,000 of these giant 40-pound swamp rats within five years, which is a big deal," he said. "And so one of the challenges here is making sure that we could make this relevant to every member of Congress."
Famished NYC Rats Are Harassing Outdoor Diners - New York City rats, famished by restaurant closures and emboldened by starvation, are plaguing outdoor diners—crawling on their shoes and sitting on benches—as business owners call on the city to address the rodent problem. New York City has allowed restaurants to serve diners outdoors since June 22, leading to reports of meals disrupted by rodents.“Any mammals, if you take the food away you’re going to have abnormal behavior show up really quick,” said Dr. Bobby Corrigan, an urban rodentologist, toGothamist on the city’s rat resurgence. Giacomo Romano, the owner of Ciccio in SoHo, told NBC New York that a rat had run across one of his customer’s foot during his meal. Romano and other restaurateurs are asking the city to reduce the city’s rodent population, but the odds look slim — amid a budget crisis caused by the coronavirus pandemic, the Sanitation Department’s rat mitigation budget has been by $1.5 million to $12.3 million, meaning 25% less trash pick-up in areas with significant rat issues, according to NY 1. Rats have long plagued New York City residents as garbage from the city’s nearly 27,000 restaurants provide an all-you-can eat paradise for the rodents. Corrigansays that when the restaurants closed in New York panic ensued among the rats, manifested in behaviors like infanticide and fighting. He believes that the rats took to the sewers to feed on feces and flushed goods.
The Rabbit Outbreak - One of the lagoviruses of the family Caliciviridae causes a highly contagious illness called rabbit hemorrhagic disease. RHD is vexingly hard to diagnose. An infected rabbit might experience vague lethargy, or a high fever and difficulty breathing, or it might exhibit no symptoms at all. Regardless of the symptoms, though, the mortality rate for RHD can reach a gloomy hundred per cent. There is no treatment for it. The virus’s ability to survive and spread is uncanny. It can persist on dry cloth with no host for more than a hundred days; it can withstand freezing and thawing; it can thrive in a dead rabbit for months, and on rabbit pelts, and in the wool made from Angora-rabbit fur, and in the rare rabbit that gets infected but survives. It can travel on birds’ claws and flies’ feet and coyotes’ fur. Its spread has been so merciless and so devastating that some pet owners have begun referring to it as “rabbit Ebola.” According to the United States Department of Agriculture, RHD is a “foreign animal disease”: one that is “an important transmissible livestock or poultry disease believed to be absent from the United States and its territories that has the potential to create a significant health or economic impact.” All foreign animal diseases are “reportable.” This means that any incidence needs to be logged with a state animal-health official. In most places, that’s the state veterinarian, who, like a governor, oversees local policy. Alix Wilson was familiar with RHD, and she wondered in passing whether it might have been responsible for the deaths at her clinic. “But then I thought, No, impossible,” she said recently. “Rabbit hemorrhagic disease isn’t in the city.” When the diagnosis came back as a variant of the virus, called RHDV2, Wilson was astonished. The clinic immediately stopped taking in any rabbits, and began a deep cleaning, which included replacing ceiling tiles and discarding thousands of dollars’ worth of equipment that couldn’t be sterilized. Todd Johnson, the U.S.D.A.’s emergency coördinator for New York and New Jersey, helped oversee the cleanup, and a veterinary epidemiologist and an intern from the department contacted a hundred and fifty-five owners of rabbits that had been in the clinic during the previous few months, in an effort to identify Rabbit Zero. The bewildering thing was that, as it turned out, rabbits had already been dying of RHDV2 in Washington State, and soon were dying in other states, including Arizona, Texas, New Mexico, and Nevada.
In Addition To Everything Else, Now "Bunny Ebola" Is Spreading Rapidly Across The US - It has been such a challenging year, and we certainly don’t need any more problems, but now there is one more crisis that we can add to the list. An outbreak of a virus that is known as “bunny ebola” erupted in the southwestern United States in April, and since that time it has “moved like mad” from one location to another. At this point, cases have been confirmed at 146 different locations in the states of Arizona, California, Colorado, Nevada, New Mexico, Texas, and Utah. The good news is that this virus does not infect humans, but it is absolutely deadly for rabbits, hares, and pikas. Thousands have already died, and it appears that this pandemic is just getting started. Once rabbits start exhibiting symptoms, it is usually already too late to do anything. According to one expert in New York, the cases that he personally witnessed earlier this year all ended horribly… “Someone saw them spasming and yelled,” recalled Lorelei D’Avolio, LVM, a certified veterinary practice manager with a veterinary-technician specialty in exotics at the Center for Avian and Exotic Medicine in Manhattan. “We tried to do CPR, but these rabbits were dead within minutes. They would convulse, scream horribly, and die.” The USDA says that the incubation period for this virus is between three and nine days, and it is estimated that 50 to 70 percent of those that get infected end up dead. The virus viciously attacks internal organs, and the hemorrhaging that it often causes is the reason why it has been dubbed “bunny ebola”, but this virus is not actually related to Ebola at all. The following comes from the New York Daily News… Though the quick-moving virus is “not related in any way, shape, or form” to Ebola, the ways in which it damages the body — including system-wide inflammation and in many cases, hemorrhaging — appear similar.In addition to destroying liver cells and causing hepatitis, the virus leads to lesions on organs like the heart or lungs which result in internal bleeding. But it turns out that “bunny ebola” is “way more infectious” than COVID-19 is…The outbreak comes amid the coronavirus pandemic plaguing the human population but RHDV2 is “way more infectious,” Lorelei D’Avolio, a certified veterinary practice manager at Manhattan’s Center for Avian and Exotic Medicine, told the The Cut.“It’s way more persistent, it’s resistant to extreme temperatures, it can be transmitted on bugs, on carcasses. It can spread on water, it can be spread on shoes.” Once this virus is introduced into a community of rabbits, it is almost inevitable that they are all going to get it.
ENDANGERED SPECIES: Grizzly bears in North Cascades: Gone for good? -- Thursday, July 9, 2020 The Interior Department's cancellation of plans to reintroduce grizzly bears into the North Cascades will "result in adverse impacts" on the bears both in Washington state and "throughout their range," federal experts predicted in an extensive study that's now been halted in its tracks.
Yellowstone Grizzlies Win Reprieve From Trophy Hunt as Court Restores Endangered Species Protections -- Grizzly bears in Wyoming and Idaho won't be subject to a trophy hunt thanks to a federal court decisionWednesday upholding endangered species protections for these iconic animals.The 9th Circuit Court of Appeals upheld a 2018 decision from the Montana District Court reinstating protections for Yellowstone area grizzly bears after the Trump administration stripped them of protections in 2017. Wyoming and Idaho then announced plans to hunt the animals for the first time in more than 40 years."This is a tremendous victory for all who cherish Yellowstone's grizzly bears and for those who've worked to ensure they're protected under the Endangered Species Act," Center for Biological Diversity (CBD) attorney Andrea Zaccardi said in a press release. "Grizzlies still have a long way to go before recovery. Hunting these beautiful animals around America's most treasured national park should never again be an option." CBD joined the Northern Cheyenne Tribe, the Sierra Club and the National Parks Conservation Association in suing to reinstate protections for the bears. The plaintiffs were represented by Earthjustice, according to apress release. The U.S. Fish and Wildlife Services delisted Yellowstone area grizzlies in 2017, in a decision that impacted around 700 bears in Wyoming, Idaho and Montana, according to The Hill. Those who supported the move said that the bears' population as well as successful conservation efforts and state policies justified the move. Then Idaho and Wyoming said they would allow up to 23 bears to be hunted and killed outside of Yellowstone National Park, according to CBD. But the Montana court ruled that the FWS did not consider the impact of delisting on a remnant population and did not use the best available science when making its decision, according to Courthouse News Service, and the Ninth Circuit agreed. Specifically, the court found that FWS did not take into account how delisting and trophy hunting would impact the genetic diversity of Yellowstone grizzlies. The court ordered the FWS to reconsider its decision with a view towards how delisting would impact a remnant population and genetic diversity.
Botswana finds more dead elephants, says test results due this week (Reuters) - Botswana wildlife officials investigating hundreds of unexplained elephant deaths have verified six more carcasses and say it is still not clear what is killing the animals, around two months after the first bodies were spotted. Officials told reporters near the Okavango Delta on Thursday that they had now verified 281 carcasses and that the deaths were concentrated in an area of 8,000 square km that is home to about 18,000 elephants. Flying over the area in a helicopter, a Reuters reporter saw one carcass splattered in droppings from vultures, which had eaten some of the flesh, and red paint from officials marking verified carcasses. Hundreds of live elephants wandered nearby. “We are not dealing with a common thing, it looks like it’s a rare cause,” said Mmadi Reuben, principal veterinary officer at the Department of Wildlife and National Parks, adding the death rate in the affected area was below 2%. “We cannot rule out anything at this stage, it could be a virus, vegetation, overnutrition after last year’s drought ... We have asked the community not to interact with the carcasses.” He said officials were expecting to receive test results this week on samples sent to South Africa and Canada. Some campaign groups have criticised the government for acting too slowly to solve the mystery of the dying elephants, an accusation Reuben has denied. Although the number of deaths so far represents a fraction of the estimated 130,000 elephants in Botswana, there are fears more could die if authorities cannot establish the cause soon.
How Botswana's Sudden Elephant Deaths Impact the Species - When an elephant dies in the wild, it's not uncommon to later find its bones scattered throughout the surrounding landscape.That's one way you can tell other elephants have passed through the area, says George Wittemyer, a wildlife conservation biologist at Colorado State University who's been researching African elephants in Kenya's Samburu National Reserve for more than 20 years.Another sign, long-term elephant conservationist Joyce Poole adds, is the presence of tracks worn through the grass leading to its body. "The vegetation will be gone and the carcass will be surrounded by elephant dung because so many elephants will have visited and stayed," Poole says.While scientists are yet to pinpoint what exactly struck down a reported 356 elephants in Botswana's Okavango Delta area, what we do know is that these deaths are not only significant for ecologists and conservationists — but elephants themselves. Highly social creatures that form deep familial bonds, elephants have long been observed gathering at the site where a peer or family member has died — often spending hours, even days, quietly investigating the bodies or the bones of other dead elephants. Although the popular idea that dying elephants are instinctively drawn to special communal graves — so-called "elephant graveyards" — is a myth, their tendency to go out of their way to visit the bones and tusks of the deceased isn't unlike human rituals at graveyards, says animal psychologist Karen McComb. "They spend a lot of time touching and smelling skulls and ivory, placing the soles of their feet gently on top of them, and also lifting them up with their trunks," McComb, who's been studying African elephants for 25 years in Kenya's Amboseli National Park, told DW. The most striking part of watching an elephant experience loss, Poole recalls, is the quietude. She still remembers one of the first elephant deaths she witnessed; a mother who birthed a stillborn calf. That elephant stayed with its baby for two days, trying to lift it and defending it from vultures and hyenas. "I was so struck by the expression on her face and her body. She looked so dejected. It was really like, 'Oh God, these animals grieve…'. It was just so different," Poole told DW.
Lemurs and Northern Right Whales Near Brink of Extinction - A new analysis by scientists at the Swiss-based International Union for Conservation of Nature (IUCN) found that lemurs and the North Atlantic right whale are on the brink of extinction.For lemurs, the analysis found that almost one-third of the species in Madagascar are critically endangeredwhile 98 percent are threatened or worse, according to the IUCN's updated Red List of Threatened Species. The demise of lemurs is largely attributed to deforestation and hunting on the giant island off eastern Africa, conservationists said Thursday, as the AP reported. To put that in numbers, instead of percentages, 33 lemur species are critically endangered, with 103 of the 107 surviving species threatened with extinction, according to the IUCN. The updated list now has 13 species pushed into the critically endangered category due to human activity.The IUCN also says there were fewer than 250 mature North Atlantic right whales believed to be alive in 2018, marking a 15-percent drop since 2011. That number includes about only 100 breeding females."At the heart of this crisis is a dire need for alternative, sustainable livelihoods to replace the current reliance on deforestation and unsustainable use of wildlife," Grethel Aguilar, IUCN's acting director general, said in a statement, as The Washington Post reported. "These findings really bring home the urgent need for an ambitious post-2020 biodiversity framework that drives effective conservation action." At the end of June, one dead whale was spotted off the coast of New Jersey. That six-month-old calf had been struck several times on the head, suggesting one or possibly two vessel collisions, according to The New York Times. Increasingly, collisions with ships, entanglements in fishing nets, and underwater noise pollution are killing the animals, which rely on echolocation for basic activities such as feeding, communicating and finding mates, as The Washington Post reported.The whale's preferred home, in the Gulf of Maine's deep waters, has warmed nearly 9 degrees Fahrenheit since 2004, faster than 99 percent of the world's oceans for much of this century, according to The New York Times. The prospects are bleak for the North Atlantic right whale now that President Trump lifted restrictions on commercial fishing in a key area of the whale's habitat.
Warming Oceans Deter Fish From Spawning, New Study Finds - German scientists now know why so many fish are so vulnerable to ever-warming oceans. Global heating imposes a harsh cost at the most critical time of all: the moment of spawning."Our findings show that, both as embryos in eggs and as adults ready to mate, fish are far more sensitive to heat than in their larval stage or as sexually mature adults outside the mating season," said Flemming Dahlke, a marine biologist with the Alfred Wegener Institute at Bremerhaven."On the global average, for example, adults outside the mating season can survive in water that's up to 10°C warmer than adults ready to mate, or fish eggs, can."The finding – if it is confirmed by other research – should clear up some of the puzzles associated with fish numbers. There is clear evidence, established repeatedly over the decades, that fish are responding to climate change.But almost three fourths of the planet is blue ocean, and at depth is responding far more slowly than the land surface to global heating fueled by fossil fuel exploitation that releases greenhouse gases. Since fish in the temperate zones already experience a wide variation in seasonal water temperatures, it hasn't been obvious why species such as cod have shifted nearer the Arctic, and sardines have migrated to the North Sea.But marine creatures are on the move, and although there are other factors at work, including overfishing andthe increasingly alarming changes in ocean chemistry, thanks to ever-higher levels of dissolved carbon dioxide, temperature change is part of the problem.The latest answer, Dr Dahlke and his colleagues report in the journal Science, is that many fish may already be living near the limits of their thermal tolerance. The temperature safety margins during the moments of spawning and embryo might be very precise, and over hundreds of thousands of years of evolution, marine and freshwater species have worked out just what is best for the next generation. Rapid global warming upsets this equilibrium.
Microplastic pollution harms lobster larvae, study finds - Ten years ago, non-indigenous households from three communities in the Ucayali region in Peru regularly ate fish, wild fruits and other products collected from the Amazon forest. Combined with whatever they grew and harvested on their lands, this contributed to a relatively diverse diet. Today however, this has been largely replaced by commercial agriculture such as palm oil and cocoa. This shift in agricultural production objectives has affected the sources of food for local communities and appears to be associated with relatively less diverse diets, according to a new study authored, among others, by CIAT (now the Alliance of Bioversity International and CIAT) scientists. The study represents one of rather few attempts to trace changes in food access, livelihood strategies, deforestation and agricultural biodiversity over time. The scientists collected data on livelihood strategies and nutritional health among 53 families in the Ucayali region in Peru and compared the results with data gathered from the same families in the early 2000s. Despite the small sample, caused by significant outmigration from these communities, the results were remarkable. "We found that in the 15-year study period, farming households shifted from diets based on limited consumption of meat and dairy items and high consumption of plant-based foods from their own production, towards diets with high protein and fat content, with food items increasingly purchased in the market. In parallel, production systems became less diversified, more market-orientated and specialised toward commercial crops, oil palm and cacao in particular," says Blundo Canto.
350 facilities skip reporting water pollution under temporary EPA rule --More than 350 facilities nationwide have taken advantage of a temporary Environmental Protection Agency (EPA) rule that lets companies forgo monitoring their water pollution during the pandemic. A total of 352 facilities, including fossil fuel companies, water treatment plants and schools, made use of the EPA's relaxation of Clean Water Act requirements, according to a list the agency shared with The Hill. At least one company on the list recently settled with the EPA to resolve allegations of Clean Water Act violations dating back to 2016. Environmentalists are raising alarms over the number of facilities that aren’t monitoring their pollution levels, saying the damage could last well beyond the Aug. 31 expiration date of the temporary policy. “Where facilities don’t monitor their own discharges and emissions, that can present significant environmental problems depending on what wasn’t reported that got into the environment,” said Joel Mintz, a former EPA enforcement attorney. On March 26, the EPA announced it would allow companies and others to pause their pollution monitoring if they could demonstrate hardship stemming from the coronavirus pandemic. The agency said the move would allow facilities to focus more on pollution controls and safety instead of sampling and monitoring. Opponents argued that if companies are not required to monitor how much pollution they emit, they might exceed legal limits. Critics also decried the open-ended nature of the temporary policy, which until last week had no end date. Clean Water Act discharges were not the only type of pollution-monitoring impacted by the temporary EPA policy. Facilities are permitted to skip other types of pollution monitoring, meaning the total number of facilities taking advantage of the policy likely exceeds 352.
Waste Away - Notes on Beirut’s broken sewage system - Beneath every city, its underground twin. Its dark heart; its churning guts. This is no metaphor: I’m talking about the sewer system. A network of pipes connecting to every shower drain, every kitchen sink, every toilet, disappearing a household’s dirt and grease and vomit and urine and feces down the gullets of small pipes that flow down into the ground, that then feed into bigger pipes, and ever bigger pipes, all our shit merging: the organic, fibrous roughage of the rich, the nutrient-deficient poop of the poor, and all the middle-class crap in between, all democratically flowing together in a single system, ideally powered by gravity, ideally leading to the great bowel of a treatment plant meant to deal with all this waste, turn it clear again, so that it can be safely dumped into rivers and seas. Alongside this system, another one. The storm-drainage system that receives a city’s rain and rushes it back from whence it came. A rhythmic cycle, as nature intended: from river to river, lake to lake, sea to sea. This water is also used to feed the groundwater supply, some of it piped back into wells and tanks. Soil absorbs rain, feeding it into the root systems of crops and flowers and trees; asphalt, concrete does not. As such, streets must be designed to be ever so slightly convex, so that rain may flow to either side and rush down into the storm drains meant to line every one of them. Streets also ought to be kept clear of garbage, not just for aesthetic purposes, but because this water picks up pollutants and trash along its journey and brings them back to our crops, our waterways, our homes. Storm pipes are bigger than sewer pipes: the deluge from above is faster and more powerful than any faucet, any flush. Ideally, a proportional amount of money is invested in maintaining this invisible city in such a way that it keeps pace with whatever is taking place aboveground. And what we have beneath our feet is a rotting, disintegrating, barely functional sewage infrastructure. Some of the pipes date back to the 1940s. No one knows how old it is. It is notoriously difficult to get any clear “whole network” maps from the municipal offices; many activists—many of them nonpartisan urban planners and architects—have tried. That there is a decided lack of access to information is already a type of information about what sort of city we live in. In the news, it is occasionally announced that engineers have been called in to reroute old systems, build pumping stations at the different outfalls, revamp old treatment plants or build new ones. But the pumping stations remain silent; the treatment plants as well. Running them costs money, eats into profits, withholds the reward of generous bribes for the municipal authorities. Also, there is the fact that the city’s sectarian divisions, its original rotten infrastructure, extend all the way down into the underground. There are squabbles about who should host the treatment plants, how to route the sewers, through whose area. Each refuses, literally, to take the other’s shit. So they send it to the only place without a sectarian scumbag to claim it: the sea.
Severe Floods in Japan Kill at Least 34 People -- Scores of people remained stranded in southern Japan on Sunday after heavy rain the day before caused deep flooding and mudslidesthat left at least 34 people confirmed or presumed dead. Floodwaters from the Kuma River inundated many houses, buildings and vehicles, causing people to climb onto roofs and wait for rescue. More than 40,000 soldiers, coast guard personnel and fire brigades are taking part in search and rescue operations. Altogether 16 residents at an elderly care home in Kuma Village are presumed dead after the facility was flooded by water and mud. Fifty-one other residents have been rescued by boats and taken to hospitals for treatment, officials said. Eighteen other people elsewhere have been confirmed dead, while more than a dozen others were still missing as of Sunday afternoon. The Fire and Disaster Management Agency said many others were still waiting to be rescued from other inundated areas. Hitoyoshi City was also badly affected by flooding, as rains in the prefecture exceeded 100 millimeters (4 inches) per hour at their height. More Rain Forecast The disaster in the Kumamoto prefecture on Kyushu island is the worst natural catastrophe since Typhoon Hagibis in October last year, which cost the lives of 90 people. Although residents in Kumamoto prefecture were advised to evacuate their homes following the downpours on Friday evening into Saturday, many people chose not to leave for fear of contracting the coronavirus.
'Race against time' in Japan floods, 50 feared dead --Emergency services in western Japan were "racing against time" on Tuesday (Jul 7) to rescue people stranded by devastating floods and landslides that have killed at least 50, as the country braced for more torrential downpours.Japan's Meteorological Agency (JMA) issued its second-highest emergency warning for heavy rain and landslides over vast swathes of the country's southwest and said "risks are rising" nationwide.Television footage showed swollen rivers breaking their banks and sweeping away bridges while landslides destroyed roads and buried houses, complicating access for the 80,000 rescue personnel battling to save lives.At least 50 deaths have been confirmed in the rains that began early Saturday, top government spokesman Yoshihide Suga said, but the toll is expected to rise, with four more feared dead and over a dozen reported missing.He warned that more heavy rain was forecast over the next two days, saying: "Even a small amount of rainfall could cause a disaster. I would like people to be on full alert against landslides and floods." In the hardest-hit region of Kumamoto, on the southwest tip of Japan, disaster management official Yutaro Hamasaki said: "We are racing against time." "We have not set any deadline or time to end the operation, but we really need to speed up our search as time is running out. We won't give up to the end," Hamasaki told AFP.At an elementary school in Omuta city, dozens of children and their teachers spent the night sheltering on the upper floor of the building after floodwater inundated the ground level. Fourteen of the dead were wheelchair-bound residents of a nursing home unable to escape to higher ground as the waters rose.
Pink Snow in the Italian Alps Means Trouble, Scientists Say - In a troubling sign for the future of the Italian Alps, the snow and ice in a glacier is turning pink due to the growth of snow-melting algae, according to scientists studying the pink ice phenomenon, as CNN reported.The algae will make the snow melt faster. The salmon-hue that has tinged the snow is from algae that carry carotenoid pigment, which reflects the distinctive color. While most algae thrive in warm freshwaters, these are known as cryophilic, meaning they thrive in colder temperatures, where they create the "watermelon snow" effect, according to Salon. The concern is that the algal bloom on the snow will accelerate the effects of the climate crisis. As Agence France-Presse (AFP) reported the plant, known as Ancylonema nordenskioeldii, is often found in Greenland's so-called Dark Zone, where the ice is also melting.Normally ice reflects more than 80 percent of the sun's radiation back into the atmosphere, but as algae appear, they darken the ice so that it absorbs the heat and melts more quickly, according to AFP. "Everything that darkens the snow causes it to melt because it accelerates the absorption of radiation," said Biagio Di Mauro of Italy's National Research Council to AFP. "We are trying to quantify the effect of other phenomena besides the human one on the overheating of the Earth." He noted that the presence of tourists could also have an effect in weakening the snow. Di Mauro told CNN that the spring and summer had very little snowfall high in the Alps, which has seen higher than average temperatures. "This creates the perfect environment for the algae to grow," he added. Di Mauro emphasized that the algal bloom is particularly bad news for the glaciers, which may see a rapid melting. That would be in line with glaciers around the world that are starting to fade away as global heating continues to push up atmospheric temperatures. "In this case, we're seeing an amplifying feedback wherein biological darkening (due to Algae growing on the surface of melting ice), leads to more solar absorption by the ice and even faster melting. We call this a 'positive feedback' but it is anything but positive. It reflects a process which is leading to faster melting of the glaciers than our simple models predict."
A heat wave thawed Siberia’s tundra. Now, it’s on fire. - For months, Siberia has been experiencing extreme heat due to a combination of persistent sunny weather and human-caused climate change. In addition to producing Arctic temperatures that cracked 100 degrees in June, the heat has fueled an enormous outbreak of wildfires, including fires on tundra underpinned by permafrost—normally frigid soil that is likely becoming even less frozen this year. This rash of fires on landscapes that are typically too cold, wet, and icy to burn is raising alarms for ecologists and climate scientists, who fear it’s yet another sign that the Arctic is undergoing rapid changes that could tip off a cascade of consequences both local and global. If fire becomes a regular occurrence on Siberia’s thawing tundra, it could dramatically reshape entire ecosystems, causing new species to take over and, perhaps, priming the land for more fires. The blazes themselves could also exacerbate global warming by burning deep into the soil and releasing carbon that has accumulated as frozen organic matter over hundreds of years. (Read about how melting permafrost could supercharge climate change—in a very bad way.) Siberia is no stranger to large summertime wildfires, including fires north of the Arctic Circle in the region’s expansive boreal forests. But so far, 2020 has been a banner year for fire in the Russian Arctic. Daily levels of “fire radiative power,” a measure of the fires’ heat output, rival those seen in 2019 (another extreme fire year) and far exceed anything else the Arctic has experienced since at least 2003. Russia’s Forestry Agency estimates that millions of acres of land have gone up in flames in eastern Siberia’s Sakha Republic, Chukotka, and Magadan regions. In addition to flames being extremely intense and widespread, scientists are struck by how far north fires are burning and the types of ecosystems that are igniting. Smith has been investigating this using a combination of land cover maps and satellite data. He’s found that in addition to the huge number of fires scorching northern boreal forests, many are burning even further north on the tundra and in carbon-rich peatlands. In all cases, the ecosystems that are burning sit atop frozen soils that comprise permafrost. Several of the fires might even be setting geographic records. In late June, the European Space Agency’s Sentinel-2 satellite detected a series of fires at latitudes close to 73 degrees north—the northernmost fires in records going back to 2003, according to satellite remote sensing expert Annamaria Luongo. The most recent one, spotted by Sentinel-2 on June 30, flared up just a few miles from the shores of the Laptev Sea, a part of the Arctic Ocean.
The Arctic Is on Fire and Warming Twice as Fast as the Rest of the Earth - Once thought too frozen to burn, Siberia is now on fire and spewing carbon after enduring its warmest June ever, according to CNN.The most immediate impacts of the climate crisis are in the nether-regions world of the world where temperatures are extreme and inhospitable. One of the most alarming examples is playing out in Siberia, which just saw temperatures reach triple digits as it endured its warmest month ever. That June heatwave in Siberia has led to some staggering numbers, according to scientists, as CNN reported.The wildfires in Siberia started much earlier in the spring than ever before, according to The Washington Post. Permafrost is thawing, infrastructure is crumbling, and sea ice is dramatically vanishing."We always expected the Arctic to change faster than the rest of the globe," said Walt Meier, a senior research scientist at the National Snow and Ice Data Center at the University of Colorado at Boulder, to The Washington Post. "But I don't think anyone expected the changes to happen as fast as we are seeing them happen." The wildfires released an estimated 59 megatonnes of carbon dioxide across Siberia in June, according to scientists at the Copernicus Atmosphere Monitoring Service (CAMS). This spate of fires on landscapes that are typically too cold, wet, and icy to burn is raising alarms for ecologists and climate scientists, according toNational Geographic. They fear the rash of blazes is another sign that the Arctic is undergoing rapid changes that could set off a series of consequences on a global scale.The fires can be a double whammy for the Siberian ecosystem. If they become a regular occurrence, it could cause new species to colonize the area, which would set the stage for more fires. Also, the increased intensity and duration of the fires may accelerate the climate crisis by thawing the ground and releasing trapped carbon that has accumulated in frozen organic matter, as National Geographic reported. "By how big they are and how hot they are, I would say there's no way they're not burning down," Already, the area's carbon dioxide emissions for June were its highest in the 18 years of the CAMS dataset, surpassing the record of 53 megatonnes set just one year ago in June 2019. "Higher temperatures and drier surface conditions are providing ideal conditions for these fires to burn and to persist for so long over such a large area," Siberia also had a warmer than average winter. CAMS said that the warm winter meant that "zombie" blazes were able to smolder through the winter and may have reignited this spring, according to Phys.org. Some parts of Siberia had an average temperature that was 10 degrees Celsius, or 18 degrees Fahrenheit, warmer than average.
Intense Arctic Wildfires Set a Pollution Record -Intense wildfires in the Arctic in June released more polluting gases into the Earth’s atmosphere than in any other month in 18 years of data collection, European scientists said in a report Tuesday.These fires offer a stark portrait of planetary warming trends.The Arctic is warming at least two and a half times faster than the global average rate. Soils in the region are drier than before. Wildfires are spreading across a large swath. In June, fires released 59 million metric tons of planet-warming carbon dioxide, greater than all the carbon emissions produced by Norway, an oil-producing country, in a year. The last time fires in the Arctic were this intense or released such a large volume of emissions was last year, which itself set a record.
UN: World could hit 1.5-degree warming threshold by 2024 — The world could see annual global temperatures pass a key threshold for the first time in the coming five years, the U.N. weather agency said Thursday. The World Meteorological Organization said forecasts suggest there’s a 20% chance that global temperatures will be 1.5 degrees Celsius (2.7 Fahrenheit) higher than the pre-industrial average in at least one year between 2020 and 2024. The 1.5 C mark is the level countries agreed to cap global warming at in the 2015 Paris accord. While a new annual high might be followed by several years with lower average temperatures, breaking that threshold would be seen as further evidence that international efforts to curb climate change aren’t working. “It shows how close we’re getting to what the Paris Agreement is trying to prevent,” said Maxx Dilley, director of climate services at the World Meteorological Organization. Dilley said it’s not impossible that countries will manage to achieve the target set in Paris, of keeping global warming well below 2 degrees Celsius (3.6 Fahrenheit), ideally no more than 1.5 C, by the end of the century. “But any delay just diminishes the window within which there will still be time to reverse these trends and to bring the temperature back down into those limits,” he told The Associated Press. Scientists say average temperatures around the world are already at least 1 C higher now than from 1850-1900 because of man-made greenhouse emissions.
Carbon Dioxide Emissions Near Level Not Seen in 15 Million Years, New Study Warns - As a United Nations agency released new climate projections showing that the world is on track in the next five years to hit or surpass a key limit of the Paris agreement, authors of a new study warned Thursday that increasing carbon dioxide in the atmosphere is nearing a level not seen in 15 million years.For the study, published in the journal Scientific Reports, researchers at the University of Southampton in the United Kingdom examined CO2 levels during the Late Pliocene about three million years ago "to search for modern and near future-like climate states," co-author Thomas Chalk explained in a series of tweets."A striking result we've found is that the warmest part of the Pliocene had between 380 and 420 parts per million CO2 in the atmosphere," Chalk told the Guardian. "This is similar to today's value of around 415 parts per million, showing that we are already at levels that in the past were associated with temperature and sea-level significantly higher than today."When CO2 levels peaked during the Pliocene, temperatures were 3ºC to 4ºC hotter and seas were 65 feet higher, the newspaper reported. Chalk said that "currently, our CO2 levels are rising at about 2.5 ppm per year, meaning that by 2025 we will have exceeded anything seen in the last 3.3 million years.""We are burning through the Pliocene and heading towards a Miocene-like future," warned co-author Gavin Foster, referencing a period from about 23 to 5.3 million years ago. It was during the Miocene, around 15 million years ago, when "our ancestors are thought to have diverged from orangutans and become recognizably hominoid," the Guardian noted. Reporting on the study elicited concern and calls for action from environmentalists and advocacy groups."Every kilo of CO2 we emit is one we have to sequester later, provided the food doesn't run out first," tweetedExtinction Rebellion Finland, urging the international community to #ActNow.Nathaniel Stinnett, executive director of the U.S.-based Environmental Voter Project, also responded to the report on Twitter, saying, "Big Oil and Gas are killing us."A new report released Thursday by the U.N.'s World Meteorological Organization (WMO) about global temperatures likely coming in the next five years provoked similar alarm and demands. The WMO report projects that the annual global temperature is likely to be at least 1°C warmer than pre-industrial levels in each of the next five years. Although it is "extremely unlikely" the average temperature for 2020–2024 will be 1.5°C warmer than pre-industrial levels, WMO warned certain periods could hit that temperature.
EMISSIONS: Top sources of CO2: Vistra, Duke, Southern Co. -- Wednesday, July 8, 2020 -- .Houston-based Vistra Energy was the top emitter of carbon dioxide in the U.S. power sector in 2018, followed by Duke Energy and Southern Company, according to an environmental group’s report annual report released today.
Pa. House moves to block RGGI entrance as DEP estimates it will save money and lives -Pennsylvania’s House of Representatives is trying to block the state’s entrance into a regional effort to curb carbon emissions from power plants. The House passed H.B. 2025 to prevent the state joining the Regional Greenhouse Gas Initiative (RGGI) through executive action on the same day the Department of Environmental Protection released estimates that participation in the effort would save hundreds of lives and billions of dollars. The House passed the bill with a vote of 130-71. It now goes to the state Senate. Gov. Tom Wolf has said he would veto it. Wolf signed an executive order last year directing DEP to join RGGI through regulation, with a goal of joining by 2022. As part of that, DEP needs to estimate what effect RGGI would have on health, the environment, and the economy. The agency made part of its analysis public ahead of the House debate on the bill Wednesday afternoon. The agency plans to present a draft to the Environmental Quality Board in September. If the board approves the draft, it will be put up for public comment. Under RGGI, a cap-and-trade program, power plants have to pay for the carbon dioxide they emit. Opponents to RGGI argue participation will cost the commonwealth jobs in the coal industry, causing a ripple effect that will hurt the overall economy. DEP found it will result in a net increase of 27,000 jobs and add $1.9 billion to the state’s economy. The agency did not provide details on how it arrived at those figures. The DEP analysis also estimated that the pollution reduction achieved by joining RGGI would realize more than $6 billion worth of health benefits over the next decade and cut the number of asthma attacks for children aged 6-18 by more than 45,000.
House rejects Trump cuts, proposes boost for environmental agencies - The Democratic-led House Appropriations Committee on Monday proposed a funding bump for the Interior Department and Environmental Protection Agency (EPA), soundly rejecting cuts proposed by President Trump. The committee bill would increase funding for the EPA, Interior and related agencies by $771 million for fiscal 2021, including a $304 million increase for Interior and a $318 million increase for the EPA. “With this bill, we reject the Trump administration’s pandering to the fossil fuel industry and disregard for the environment and public lands. Instead, we increase funding to preserve our landscapes, protect endangered species, and help prevent the worst impacts of climate change,” said House Appropriations Committee Chairwoman Nita Lowey (D-N.Y.) in a statement. The $36.7 billion in funding is slightly smaller than the $37.2 billion the committee approved last year. The final budget approved for the agencies was reduced following a compromise with the Republican-led Senate. Meanwhile, a separate appropriations bill would increase the Energy Department's budget by $2.3 billion over last year's budget. In his budget wish-list unveiled earlier this year, President Trump proposed a 26 percent cut to the EPA’s budget and a 16 percent cut to the Interior Department budget. He also proposed cutting the Energy Department's budget by 8 percent. The House panel's budget would provide increases of $55 million for the National Park Service, $188 million for the Bureau of Indian Affairs and $37 million for the Fish and Wildlife Service. It would cut the Bureau of Land Management's budget by $28 million, though this would represent a significant increase in funding from Trump's proposal. At the EPA, the bill would boost the Superfund program, which cleans up hazardous waste sites, by $37 million and would increase the agency’s environmental justice activities by $4.8 million, or about 47 percent. Funding for the Land and Water Conservation Fund would no longer discretionary, but would be considered mandatory appropriations. And at Energy, the House is proposing a $10 million increase in funding for the Advanced Research Projects Agency—Energy, which Trump had proposed eliminating entirely.
Sanders-Biden climate task force calls for carbon-free power by 2035 A unity task force made up of supporters of both Sen. Bernie Sanders (I-Vt.) and former Vice President Joe Biden has come up with a series of broad environmental recommendations for Biden as he prepares to become the official Democratic presidential nominee. The task force’s broad plan includes a goal of eliminating carbon pollution from power plants by 2035, achieving net-zero emissions for all new buildings by 2030, and making energy-saving upgrades to as many as 4 million buildings and 2 million households within five years. Some of the recommendations released Wednesday set more specific targets than the former vice president’s current climate plan, which calls for a shift away from coal-fired electricity, halving the carbon footprint of buildings by 2035 and starting a national program aimed at affordable energy efficiency retrofits in homes. The group is one of several “unity task forces” made up of supporters of Sanders and Biden that is making platform recommendations as Biden courts favor from the progressive faction of the party. Sanders, who sought to challenge the former Delaware senator from the left, came in second place in the 2020 Democratic primary, repeating his result from 2016, when he lost the presidential nomination to former Secretary of State Hillary Clinton The climate panel is co-chaired by Rep. Alexandria Ocasio-Cortez (D-N.Y.), a leading proponent of the Green New Deal, and 2004 Democratic presidential nominee John Kerry. “The Unity Task Force urges that we treat climate change like the emergency that it is and answer the crisis with an ambitious, unprecedented, economy-wide mobilization to decarbonize the economy and build a resilient, stronger foundation for the American people,” the document says. The plan also calls for a significant investment in renewable energy, including installing 500 million solar panels and manufacturing 60,000 wind turbines. In the transportation sector, the group recommends the adoption of “strong standards” for clean cars and trucks and the transition of all school buses to American-made, zero-emission alternatives within five years. The New York Times first reported on some of the recommendations earlier this week.
Climate Activists See ‘New Era’ After Three Major Oil and Gas Pipeline Defeats -Climate activists sense a turning point in their war against the Trump administration's effort to cement a fossil-fueled future for the United States, with three major defeats for high-profile oil and gas pipeline projects. Early Monday, a federal judge ordered the shut-down and emptying of the Dakota Access Pipeline pending an environmental review—an extraordinary, if not unprecedented, remedy for the Standing Rock Sioux tribe in its long fight against the project. Late in the day, the U.S. Supreme Court denied an emergency bid by the Trump administration and Canada's TC Energy to allow construction of the Keystone XL pipeline to move forward while legal issues are resolved. And on Sunday, two big energy companies pulled the plug on a major East Coast natural gas project—the proposed Atlantic Coast Pipeline—which would have delivered fracked gas from West Virginia to population centers in Virginia and North Carolina. "A new era upon us—one for clean energy, and one where the risks of fossil fuel infrastructure are increasingly exposed," said Kelly Martin, director of the Sierra Club's Beyond Dirty Fuel campaign. Greg Buppert, senior attorney for the Southern Environmental Law Center, said that six years ago, when landowners and communities took up the battle against the Atlantic Coast Pipeline, there was little reason to think they would succeed. "The remarkable thing is these communities, organizations and landowners never backed down," Buppert said. "They've won a victory, really for every community facing the unfair burden of an unneeded project." "Two things really stand out to me as the lessons—the voices of the community matter and the law matters," said Buppert. The American Petroleum Institute, the oil and gas industry's largest advocacy group, said in a statement after the cancellation of the Atlantic Coast pipeline that "outdated and convoluted permitting rules are opening the door for a barrage of baseless, activist-led litigation." Coming in less than 48 hours, the pipeline decisions amounted to a vivid rebuke of President Donald Trump's efforts to sweep aside obstacles to the oil and gas industry's desired expansion. The future of big fossil fuel infrastructure projects is more murky than ever, despite Trump's three executive orders expediting pipelines, his relentless regulatory rollbacks and his abandonment of climate policy. Much of the uncertainty stems from the economic turmoil wrought by the coronavirus, which some analysts believe will force an historic retrenchment of the industry. But the pipeline setbacks demonstrate the potency of the opposition the industry faces from tribes, community activists, landowners and those fighting for a clean energy transition. Pipeline proponents have vowed to push forward, however it is now clear that they are not on a glidepath, but in a slog.
Even if we start to fix climate change, the proof may not show up for 30 years - Washington Post - The young climate activists clamoring today for rapid cuts to the world’s fossil fuel emissions could be well into their 30s or 40s before the impact of those changes becomes apparent, scientists said in a study published Tuesday. As if curbing climate change wasn’t tough enough already, the new research finds that even if humans sharply reduce greenhouse gas emissions now — cutting carbon dioxide, methane and other pollutants by at least 5 percent or more a year — it could still take decades before it’s clear those actions are beginning to slow the rate of the Earth’s warming. In short, because of the massive amount of fossil fuels burned since the Industrial Revolution, and the complexity of the Earth’s climate, there’s no quick payoff from changing our fossil fuel habits, researchers found.The results lend added perspective to the relatively minor drop in emissions that occurred due to worldwide shutdowns in response to the coronavirus pandemic — a drop that appears unlikely to have much effect on the planet’s overall temperature. “This is a big ship. We’ve given a lot of speed to a big heavy system,” said Bjorn Samset, a researcher with the Center for International Climate Research in Oslo who conducted the research in Nature Communications with two colleagues, Jan Fuglestvedt and Marianne Lund. “We have never warmed the world like this before, and we have certainly never cooled it.” Samset said the delayed benefits of climate action could complicate the push to quickly wean the world off fossil fuels, in part because politicians and policymakers might have a difficult time showing that measures to combat climate change are making a discernible difference in the short term — even if emissions cuts help stave off future warming. “It’s one of the things that makes climate change so difficult,” he said. “You’re looking at an avoided issue in the long term. So the best thing you can hope for is to stay at the status quo.”
Activists Not Only Slow Oil Pipelines, But Also Power Lines Needed For Renewable Energy - Builders of oil and gas pipelines suffered a trio of setbacks over legal challenges in the space of just 36 hours between Sunday and Monday. An $8 billion natural gas pipeline was cancelled, the Dakota Access oil pipeline was ordered to shut down for up to 13 months, and the Supreme Court declined to greenlight the infamous Keystone XL oil pipeline. Pipeline builders nodded grimly: growing environmental opposition and expanded federal environmental reviews mean it’s simply not as easy as it once was to build pipelines. But oil and gas executives might not be the only ones with cause for concern in an era of rising environmental concerns. Long-distance power lines designed primarily to carry electricity from parts of the U.S. with abundant wind and solar power to regions that need more of it face growing legal and regulatory barriers, according to energy and legal experts. “Power lines, like other energy infrastructure, are becoming harder to build in the US," There are now "more environmental reviews, more governments with veto power, and more restrictions on the use of eminent domain."Yet even as the need for such power lines grows, fewer are being built. Only about 1,300 miles of power transmission projects were built in 2018, well below a peak of about 4,600 miles built in 2013, according to federal data compiled this year by energy consulting firm ScottMadden. A growing number of proposed projects — from the 780-mile Grain Belt Express that would connect wind energy-rich Kansas to Indiana, to the 520-mile SunZia line that would stretch from New Mexico to Arizona, and others — are mired in lengthy court battles and various stages of permitting.
Appeals court backs sale of controversial wind energy line in Missouri - A state appeals court ruled in favor of a controversial wind electricity project Tuesday, putting the Grain Belt Express transmission line another step closer to construction. The project, which has been tied up in legal and legislative challenges for years, will carry wind-generated power from Kansas to Indiana on a 780-mile-long transmission line that includes eight northern Missouri counties. A group of landowners challenged a June 2019 ruling by the state’s Public Service Commission allowing Chicago-based Invenergy to acquire the line from Grain Belt. The PSC’s decision to approve the sale was a necessary step for Invenergy to buy the rights to construct the proposed line. Attorneys for the Eastern Missouri Landowners Alliance, also known as Show Me Concerned Landowners, argued that regulators did not have jurisdiction to approve the sale. They say the state should not allow a private company to use eminent domain proceedings to acquire land for the towers that will hold the line. The Missouri Court of Appeals Western District disagreed, saying the PSC decision was correct because the project will deliver energy to Missouri wholesale customers, who will provide that energy to their retail customers. “The commission found that, Grain Belt will not selectively sell to particular retail customers, but the electricity it transmits will serve the general public,” the court noted. “We find that the commission had the statutory authority to approve the sale of Grain Belt to Invenergy.”
U.S. power use to drop by record amount in 2020 due coronavirus: EIA - (Reuters) - U.S. electricity consumption will collapse by a record 4.3% in 2020 due to business closures for coronavirus-linked lockdowns, the U.S. Energy Information Administration (EIA) said on Tuesday in its Short Term Energy Outlook (STEO). EIA projected total U.S. power demand will drop to 3,730 billion kilowatt hours (kWh) in 2020 from 3,896 billion kWh in 2019 before rising to 3,785 billion kWh in 2021. That compares with an all-time high of 4,003 billion kWh in 2018, according to federal data going back to 1949. If power consumption falls as expected in 2020, it would be the first time since 2012 that total demand declines for two consecutive years. EIA said natural gas’ share of generation will rise from 37% in 2019 to 41% in 2020 before dropping to 36% in 2021 as gas prices increase, while coal’s share will slide from 24% in 2019 to 18% in 2020 before rising to 21% in 2021. Nuclear’s share of generation will rise from 20% in 2019 to 21% in 2020 and 2021, while renewables will rise from 17% in 2019 to 20% in 2020 and 22% in 2021. Both nuclear and renewables will top coal for the first time in 2020. EIA projected power sales to commercial and industrial consumers will drop by 7.0% and 5.6%, respectively, in 2020 from 2019 as offices close and factories run at reduced capacity for the coronavirus.Electricity sales to the residential sector will hold steady in 2019 and 2020 as mild weather reduces heating and air conditioning use even though government lockdowns are causing many people to stay home.While both the residential and commercial sectors consumed record amounts of electricity in 2018 at 1,469 billion kWh and 1,382 billion kWh, respectively, the industrial sector set its all-time high of 1,064 billion kWh in 2000.
As COVID-19 surges, federal regulators worry about energy sector supply chain -- Amid reports the United States has topped 3 million cases of the novel coronavirus and now leads the world in infections and deaths, federal regulators are taking a hard look at what may happen to the energy sector as the pandemic continues with no end in sight."I want the commission to get in front of these issues as much as we can, and to think proactively about how we can respond over the coming months and even years," Federal Energy Regulatory Commission Chairman Neil Chatterjee said Wednesday during a technical conference on the long-term impacts of the global pandemic. “We all face uncertainty, especially as we see a resurgence of cases in various areas of the country," Chatterjee said. The country has seen decreased demand for electricity, gas and oil since March — though Chatterjee said a rebound is expected as summer peak season arrives. "Ultimately, we don't know where these trends are heading," he warned.That has led to concerns over supply chain issues, deferred equipment maintenance and the potential for outages."Unfortunately it appears this is something we're going to have to live with for a while," Commissioner Richard Glick said.Grid operators have so far been able to maintain equipment and faced no shortages when replacing core electric components, according to James Robb, president and CEO of the North American Electric Reliability Corp. However, he told regulators on Tuesday that "the longer this goes, the risk of that continues to mount." When quarantines and lockdowns began months ago, there were widespread concerns about the energy supply chain — particularly for generators needing to do maintenance and replace parts, according to Michael Bryson, senior vice president of operations PJM Interconnection. But looking ahead, he warned the industry needs a consider that it may become a problem in the future — particularly in light ofPresident Donald Trump's executive order barring the installation of bulk-power system equipment designed, developed, manufactured, or supplied by some countries. Experts say the order will primarily impact equipment sourced from China, which supplies transformers and other grid components.
New safety guidelines lead to challenges as efficiency contractors return to work - Weatherization contractors in New Hampshire say some of the guidelines are inconvenient and difficult to follow.As lockdown restrictions ease, New Hampshire’s utilities have joined to create a training program for contractors to begin efficiency projects in customers’ homes. But some contractors say the program, intended to ensure employee and customer safety, ignores the realities of their work.The utilities are partnering with a Massachusetts-based occupational health and safety consulting firm, Environmental Health & Engineering (EH&E), which developed safety guidelines and webinar training. Since utilities often work across state lines, other New England contractors and utilities also participated.The guidelines were divided into two main phases: The first involved projects on the outside of the home and in parts unoccupied by the customer, like the attic. The second phase involves projects in occupied parts of the home.Contractors have to follow the guidelines to participate in utilities’ efficiency incentive programs, and quality assurance monitors accompany teams to sites.“Safety is the priority here, and EH&E is basing their guidelines on this from a safety perspective,” said Kate Peters, a New Hampshire-based energy efficiency spokesperson with Eversource, New Hampshire’s biggest utility. Information on the virus is continually evolving, Peters said, meaning the guidelines will evolve as well. “These are living documents.”
Amazon to buy bio jet fuel to lower air cargo emissions -Amazon's plans to decarbonize its shipping supply chain isn't just focused on electrifying its delivery vans.The logistics and retail giant announced Wednesday morning that it plans to buy 6 million gallons of bio jet fuel via a division of Shell and produced by World Energy, a big biodiesel producer. The companies said the jet fuel will be made from agricultural waste fats and oils (such as used cooking oil and inedible fats from beef processing).The move shows the efforts that Amazon is willing to go to eke out carbon emissions across its vast network of planes, vehicles and distribution centers that deliver on-demand goods across the globe. Amazon has pledged to reach net-zero carbon emissions by 2040, and says it will make sure half of Amazon shipments are net-zero by 2030. That commitment also includes buying 100,000 electric delivery vehicles, and using 100 percent clean energy by 2025. But the business of biofuels is a bit messier and — for bio jet fuel — at an earlier stage than procuring solar and wind energy or even purchasing electric vehicles. The market for next-generation sustainable aviation fuel is just now being trialed commercially by airlines such as JetBlue and United, produced by developers such as World Energy and Finnish company Neste, and solicited by San Francisco International (SFO) and other airports. Neste announced Tuesday that it delivered its first batch of sustainable aviation fuel via pipeline for airlines refueling at SFO to use. Over the years, a variety of airlines have tested bio jet fuels, some made with algae as a feedstock, and many abandoned the initial efforts after the fuels were not able to be made economically at scale. Since then, companies such as Neste have been able to industrialize the process of taking waste oils and fats from various sources and producing a fuel for vehicles and airplanes that can lower carbon emissions and be cost-effective. In recent years, airlines increasingly have looked to the promise of bio jet fuels as a key way for the industry to meet climate goals. United Airlines announced last year that it is investing $40 million into advancing sustainable aviation fuel, including the purchase of 10 million gallons of it over two years — a drop in the fuel tank of roughly 4.3 billion gallons the airline uses annually. Electric aircraft have been considered by much of the airline industry as too far away on the horizon and too expensive for commercial use. Regardless of the specifics, the airline industry is feeling the heat from its reliance on fossil fuel-based jet fuel and thus its relatively large emissions. Sustainability-focused large corporations whose employees do a lot of business travel are also considering ways to both reduce airline travel and also work with carbon neutral airlines. Amazon's news doesn't just highlight the emergence of the bio jet fuel industry and the environmental spotlight on the airline industry, it also shows growing attention and worry around the carbon intensity of air cargo. The vast majority of goods in the United States are shipped by trucks, but a small and rapidly growing segment of goods are shipped by planes.
Rain cancels rally in Jersey City, but opposition to NJ Transit power plant in Kearny wages on - While a big rain storm cancelled a planned Jersey City rally, it couldn’t dampen the mood among environmental groups and elected officials who planned to voice their opposition to NJ Transit’s proposed 140-megawatt, gas-powered power plant in Kearny. Food and Water Watch NJ and the New Jersey Sierra Club planned a rally at Leonard Gordon Park with at least four Jersey City council members, since the site overlooks Koppers Koke Peninsula – the site of the proposed plant – but the weather forced the gathering onto Zoom. Matt Smith, the state director for FWW, said in an interview that the proposed project is, from a climate change perspective, a terrible idea because the plant is expected to generate upwards of 650,000 metric tons of carbon dioxide annually once it goes online.“Right now in New Jersey, we get a higher percentage [of energy] from renewables: 21 percent of our energy now has to come from renewable energy, and between that and nuclear, and some other carbon-free sources, there is no way that NJ Transit can claim that building a new gas-powered plant to operate 24/7 would be good for air quality,” Smith argued.He also noted that the proposed gas-powered plant “flies in the face” of Gov. Phil Murphy’s (D) Energy Master Plan that he signed into law earlier this year to power the state’s entire energy infrastructure with clean energy sources by 2050.The plan outlines a number of strategies to get to that goal in 30 years, such as reducing energy consumption and emissions from the transportation sector.The Kearny project received an approximately $415 million federal grant, with other costs to be determined by NJ Transit.
Comment period for NIPSCO Bailly plant in Chesterton underway | IER Indiana Environmental Reporter --The U.S. Environmental Protection Agency has opened the 45-day public comment period for the proposed cleanup plan of an inactive power plant in Chesterton.The proposal addresses the cleanup of Area C of the Northern Indiana Public Service Co.’s Bailly Generating Station, which abuts the Indiana Dunes National Park.Area C includes former coal ash disposal areas that threaten wildlife in the Dunes with boron contamination.The cleanup proposal includes the excavation and removal of 92,000 cubic yards of coal ash. The coal ash would then be taken to a lined landfill on the grounds of the Schahfer Generating Station in Wheatfield.The proposal also includes mixing 86,000 cubic yards of coal ash found below groundwater level with a cement mix to immobilize contamination. The EPA will accept public comments through Aug. 19. The agency will also host a virtual question and answer session Monday, Aug. 3. Building additional long-distance power lines — hulking ski lift-like structures visible from miles away — is key to America’s transition from fossil fuels to wind and solar power, a number of experts believe. Since solar farms tend to be in sunny southwestern states like California or Texas, while most wind farms are in windy states such as Iowa or Illinois, it's important to be able to send that electricity to regions lacking in wind or sun. If that's not possible, then states in these regions will have little choice but to crank up gas- or coal-fired power plants.
Trump Administration Seeks to Block Settlement Between Sierra Club and Michigan Utility – WSJ --The Trump administration is asking a federal judge to reject a settlement between the Sierra Club and a Michigan utility over alleged clean-air violations, arguing that the deal improperly goes beyond what the federal government has approved.The motion, filed late Wednesday, asks a U.S. district court in Michigan to reject a settlement that would require Detroit-based utility DTE Energy Co. to close three coal-fired power plants and pay $2 million for local environmental improvements.Those terms would be in addition to a $7.3 million settlement with the federal government and would have ended a decade-long case over alleged Clean Air Act violations at DTE plants.The Sierra Club has been a co-plaintiff alongside the U.S. government, but the Justice Department says it shouldn’t have the power to push for settlement terms beyond what the government approves. Justice Department lawyers say they are trying to make this a test case, leading to a national precedent limiting the ability of citizen groups to press for stiffer punishments.Shannon Fisk, an attorney for the Earthjustice environmental group who represented the Sierra Club in the case, said the government’s action jeopardizes a settlement that took more than two years to negotiate and would benefit Black and poor communities that suffered from the coal-burning plants in their communities.“It’s unconscionable,” Mr. Fisk said. “This should be an easy win for everyone involved.” A DTE spokesman said the company had no comment on the legal action, but that it remains committed to fulfilling the terms of its agreements with both the government and the Sierra Club.
Germany Approves Coal Phaseout by 2038 - The Bundestag and Bundesrat — Germany's lower and upper houses of parliament — passed legislation on Friday that would phase out coal use in the country in less than two decades as part of a road map to reduce carbon emissions."The fossil age in Germany comes to an irrevocable end with this decision," said Economy Minister Peter Altmaier. Environment Minister Svenja Schulze called it a "great political success for all those who care about the climate-friendly future of our children and grandchildren."The legislative package has two main features. The first establishes a legal avenue for the gradual reduction in emissions by 2038 at the latest, while the second targets regional economies that would be impacted by the phaseout. Coal-producing regions in the German states of North Rhine-Westphalia, Saxony, Saxony-Anhalt and Brandenburg will have access to €40 billion ($45 billion) to help absorb the impact. Those funds are also expected to go towards restructuring regional economies, re-skilling workers and expanding local infrastructure. Financial compensation is also be available to coal plant operators who face losses as a result of the early phaseout. However, compensation is contingent on operators announcing plans by 2026 to shutter plants and cease other emissions-intensive activity. Michael Vassiliadis, who heads the IG BCE trade union, called the measures a "historic landmark." He said the package has provided a safety net for workers affected by the phase out and would provide them with the necessary support to transition to future sectors. However, not everyone agrees that the measures are enough to mitigate climate change.Environmentalist activists say the legislation falls short of its ultimate aim, with Greenpeace managing director Martin Kaiser describing it as a "historic error."German Green party chief Annalena Baerbock said the legislation was "oblivious to the future" and instead called on the government to complete Germany's coal phase out by 2030 the latest.
Ohio Valley Coal Companies Get Tens Of Millions In Paycheck Protection Loans - More than 50 Ohio Valley coal companies received loans totaling as much as $119 million through the Paycheck Protection Program meant to keep people employed during the pandemic’s economic downturn. Congress passed the PPP in March to help businesses keep employees on the payroll and out of unemployment lines. The data released by the Small Business Administration does not show specific dollar amounts for the loans, but rather categorizes loans into ranges such as $150,000 to $350,000 at the lowest end, and $5 million to $10 million at the upper end. Six Ohio Valley coal companies fell into that high-dollar category, including Rhino Energy, whose former CEO David Zatezelo currently heads the federal Mine Safety and Health Administration.Five subsidiaries of Lexington, Kentucky’s bankrupt Blackhawk Mining received loans totalling as much as $14 million. Four of those five subsidiaries reported that zero employees would be affected by the loan. A spokesperson from Blackhawk did not immediately respond to requests for comment. Lexington-based Ramaco Resources, with mines in Pennsylvania and West Virginia, indicated 381 jobs would be affected by the program, according to SBA records.And according to ProPublica, coal companies associated with West Virginia’s billionaire Governor Jim Justice’s family received up to $12 million from the program. Many of the Justice mines have long histories of failures to pay mine safety fines and taxes.Employment in the coal sector is uncertain in the best of times; some coal miners say they head underground each shift well aware that they may not have a job when next they see daylight. The pandemic has only worsened the prospects for miners. Just 43,800 Americans were employed in the coal industry this June, down from 51,000 last December, according to the Bureau of Labor Statistics. And a wave of bankruptcies has now overtaken most of the region’s coal producers. To incentivize companies to use the funds to preserve jobs, PPP loans are eligible for forgiveness — meaning companies don’t have to pay the government back — if the loans are used to cover employee wages, benefits or tips. Indiana-based American Resources Corporation, which has mines in Kentucky and West Virginia, received as much as $5 million through the program, even though the company has come under fire for failing to pay its employees long before the pandemic hit. In a recent bankruptcy court hearing, Judge Gregory Schaaf urged ARC attorney Billy Shelton to use the loan instead to pay court fees, foregoing the possibility of forgiveness at a later date. If ARC chooses that path, it would put a further financial strain on a company that is already teetering under the weight of new liabilities it acquired last year. “I would expect [ARC] to liquidate given current market conditions and available liquidity,” said Josh Macey, Assistant Professor at the University of Chicago and an expert on coal-company bankruptcies in reference to ARC’s financial standing at the time of the bankruptcy hearing. “There is just not enough cash right now for them to keep operating.”The PPP loans come amid a historic downturn in the coal industry, which has only been made worse by the coronavirus pandemic. New renewable energy plants are cheaper than new coal plants “virtually everywhere,” according to a recent report, and the retirements of Ohio Valley coal-fired power plants mean the market for the resource will likely continue to worsen.
Environmental groups sue over W.Va. coal reclamation fund (AP) — Environmental groups have sued the West Virginia Department of Environmental Protection over what they say is the agency’s failure to adhere to federal reporting requirements for a coal mine reclamation fund. The lawsuit filed Thursday by the West Virginia Highlands Conservancy, Ohio Valley Environmental Coalition and the Sierra Club seeks to force the state to address the state’s “dramatically underfunded” program whose purpose is to cover the costs of coal mine reclamation, according to a news release. The groups said the DEP failed to notify the U.S. Office of Surface Mining Reclamation and Enforcement if significant funding or budget changes were to affect the enforcement and administration of the special reclamation fund. The DEP in March sued a company that acquired more than 100 mining permits from Patriot Coal Corp.’s 2015 bankruptcy. Most of the permits are in West Virginia and others are in Kentucky, Illinois and Tennessee. The DEP has said the company, ERP Environmental Fund Inc., laid off all of its employees, ceased operations and abandoned its mining sites. An earlier notice of a pending suit from the environmental groups said the DEP indicated in its March lawsuit that the special reclamation fund would be overwhelmed if it were to take responsibility for ERP’s permits. But a letter sent this week from the DEP to the federal enforcement office indicated DEP does not believe there is a problem with its reclamation program, the environmental groups’ statement said. “This lawsuit ensures that state and federal agencies can no longer deny the existence of this pervasive and urgent crisis,” Karan Ireland of the Sierra Club’s West Virginia chapter said in the statement. The DEP did not immediately respond to a request for comment Thursday. Money from the fund is used to complete mine reclamation when the amount of bonds that are forfeited by companies are less than the actual cost of reclamation. Most of the funding for the special reclamation fund comes from a tax of 27.9 cents on each ton of clean coal mined in the state.
Suspected mayfly swarm causes power loss at nuclear plant in Michigan | Toledo Blade — A swarm of newly hatched mayflies caused one of the Fermi 2 Nuclear Power Plant’s offsite powerlines to shut down Wednesday, authorities said. The power loss was reported at 11:05 p.m., though generators automatically kicked in to avoid a disruption in incoming power, a report from the Nuclear Regulatory Commission said. The event is under review but is believed to be caused by an accumulation of mayflies around the switchyard, it said. “That occurred after a large hatch of mayflies overnight,” Fermi spokesman Stephen Tait said. “Many of those mayflies landed on equipment, which caused arcing or a short on the equipment and the loss of power on one of our lines.” The plant routinely decreases the number of exterior and interior lights visible in the area this time of year to deter the mayflies from gathering there, Mr. Tait said. Other actions are also in place to minimize the insect’s impact, he said. “The plant remains and always remained in a safe and stable condition throughout the event,” and the health and safety of the public was never compromised, he said. The power plant is in the process of restoring the line. Mayflies are a winged insect that develop on river and lake bottoms and emerge in late June to early July to mate. They are a sign of good ecological health, being unable to survive in areas with high pollution, but their vast number can cause havoc when they swarm lighted areas. Their numbers have been so thick along Lake Erie, the Detroit River, and Lake St. Clair that they sometimes show up on weather radar and have been known to leave roadways dangerously slick.
Regulatory commission rejects activist group's challenge of Fermi 2 license extension | Toledo Blade— A Monroe County activist group’s attempt to reopen negotiations for DTE Energy’s Fermi 2 license extension has been rejected by a federal tribunal that considers challenges to U.S. Nuclear Regulatory Commission decisions. The NRC’s Atomic Safety and Licensing Board, which acts independently of the agency as a trial-level, adjudicatory panel of experts empowered to act like judges, said in a ruling issued Tuesday that Citizens’ Resistance at Fermi 2, also known as CRAFT, had failed to convince it of the need for an additional hearing, and dismissed the case. It listened to DTE, CRAFT, and the NRC present 10-minute overviews during a teleconference on June 10, then asked each party to answer a series of questions. At issue is the stability of spent fuel stored inside DTE’s Fermi 2 nuclear plant, which sits along the western Lake Erie shoreline in northern Monroe County about 30 miles from downtown Toledo. When the NRC decided in 2016 that it would grant a 20-year extension to Fermi 2’s operating license, DTE agreed to remove and replace Boraflex neutron absorbing materials, or NAMs, from the plant’s spent fuel pool. That was to happen before 2025, when the license was originally set to expire. With the 20-year extension, the expiration date has been pushed back into 2045. Recently, though, DTE asked for permission to use a less-expensive alternative to replacing the existing Boraflex. An NRC spokesman, Prema Chandrathil, said that request is currently under review. The ASLB said in its 24-page decision that CRAFT “plainly has failed to submit an admissible contention.” Jessie Collins, CRAFT co-chair, said the group is disappointed by the ruling and has 25 days to appeal, but isn’t sure yet what it will do.
Frac-Sand Supplier Covia Files for Bankruptcy - Frac-sand supplier Covia Holdings Corp. has filed for bankruptcy as part of a plan to cut more than $1 billion in debt and shed its railcar leases after taking a beating from the economic disruption sparked by the coronavirus pandemic and lower energy prices. The Independence, Ohio, company filed for chapter 11 protection in the U.S. Bankruptcy Court in Houston late Monday after reaching a restructuring support agreement with a group of holders of a majority of its secured debt.
Companies Cancel Atlantic Coast Pipeline After Years of Delays - The Wall Street Journal - The builders of the Atlantic Coast Pipeline are pulling the plug on the project as companies continue to meet mounting environmental opposition to new fossil-fuel conduits. Duke Energy Corp. and Dominion Energy Inc. said Sunday they were abandoning the proposed $8 billion pipeline—which aimed to carry natural gas 600 miles through West Virginia, Virginia and North Carolina and underneath the Appalachian Trail—citing continued regulatory delays and uncertainty, even after a favorable Supreme Court ruling last month.Dominion said it was selling the rest of its natural-gas transmission and storage network to Warren Buffett’s Berkshire Hathaway Inc. for $9.7 billion including debt. The deal includes a 25% stake in the Cove Point liquefied natural gas export facility in Maryland, of which Dominion will remain the largest owner. “This announcement reflects the increasing legal uncertainty that overhangs large-scale energy and industrial infrastructure development in the United States,” Dominion and Duke said in a joint statement. “Until these issues are resolved, the ability to satisfy the country’s energy needs will be significantly challenged.”Utilities and pipeline companies have been trying to expand U.S. pipeline networks for more than a decade to take advantage of the bounty of oil and gas unlocked by the fracking boom. But many of the projects have encountered intense opposition from landowners, Native American groups and environmental activists concerned about climate change who want to keep fossil fuels in the ground. The Trump administration has sought to make it easier for companies to build pipelines and other energy infrastructure, but the effort has failed to fast-track projects amid continued legal and regulatory challenges by opponents. Dominion and Duke had first proposed building the Atlantic Coast Pipeline in 2014. It repeatedly faced legal challenges from environmentalists, Native American groups and others. Its costs had swelled to $8 billion before the companies decided to abort the plan. “Duke and Dominion did not decide to cancel the Atlantic Coast Pipeline—the people and frontline organizations that led this fight for years forced them into walking away,” said Michael Brune, the executive director of the Sierra Club. The companies had scored a significant victory last month when the Supreme Court ruled that it could cut under the historic Appalachian Trail, which runs from Georgia to Maine. The court overturned a lower-court ruling that found the U.S. Forest Service didn’t have the authority to grant a special-use permit that allowed for the development of that segment. However, Duke and Dominion said Sunday that the ruling wasn’t enough to mitigate an “unacceptable layer of uncertainty and anticipated delays” for the project. They cited a Montana court ruling last month that threw another roadblock in the path of the Keystone XL Pipeline as an example of the continued challenges such projects face. That ruling, which related to a federal permit program for oil and gas pipelines, had the potential to also further delay the Atlantic Coast Pipeline, the companies said. The companies involved had together invested about $3.4 billion in the pipeline to date.
Atlantic Coast Pipeline Canceled Following Years of Legal Challenges -- The Atlantic Coast Pipeline (ACP), which would have carried fracked natural gas through 600 miles of West Virginia, Virginia and North Carolina, will never be completed. Pipeline owners Dominion and Duke Energy announced Sunday they were cancelling the fossil fuel project due to mounting delays and uncertainty. They said the many legal challenges to the project had driven up the projected costs by almost half, from $4.5 to $5 billion when it was first announced in 2014 to $8 billion according to the most recent estimate. Environmental and community groups, who have long opposed the project on climate, conservation and racial justice grounds, welcomed the news. "If anyone still had questions about whether or not the era of fracked gas was over, this should answer them,"Sierra Club Executive Director Michael Brune said in a statement emailed to EcoWatch. "Today is a historic victory for clean water, the climate, public health, and our communities. Duke and Dominion did not decide to cancel the Atlantic Coast Pipeline — the people and frontline organizations that led this fight for years forced them into walking away. Today's victory reinforces that united communities are more powerful than the polluting corporations that put profits over our health and future." The utilities' announcement comes a little less than three weeks after the pipeline scored an important legal victory when the Supreme Court ruled that it could pass beneath the Appalachian Trail. But environmental groups at the time pointed out that the project still needed eight other permits. Early this year, a federal court vacated a permit the pipeline needed to build a natural gas compressor station in Union Hill, a historic Black community in Virginia, after community members successfully argued that it would disproportionately harm the health of the mainly African American residents who lived nearby. Courts have also tossed permits over the pipeline's plans to cut a visible scar through the forest as it crosses beneath the Blue Ridge Parkway, its crossing of more than 1,500 streams and rivers in West Virginia and its impact on endangered species like the Indiana bat and Madison cave isopod, Sierra Magazine pointed out in 2019. "All of the ACP's problems are entirely self-inflicted," Greg Buppert, a senior attorney for the Southern Environmental Law Center, told Sierra Magazine at the time. "It was never a good idea to build this pipeline through two national forests, a national park, across the Appalachian Trail, and through the steepest mountains in West Virginia."
Warren Buffett's Berkshire buys Dominion Energy natural gas assets in $10 billion deal - Warren Buffett's Berkshire Hathaway is finally pulling the trigger. The conglomerate is spending $4 billion to buy the natural gas transmission and storage assets of Dominion Energy. Including the assumption of debt, the deal totals almost $10 billion. It's Berkshire's first major purchase since the coronavirus pandemic and subsequent market collapse in March. At his annual shareholder meeting in May, Buffett revealed that Berkshire had built up a record $137 billion cash hoard as financial markets tanked and that he hadn't seen many favorable deals, despite the stock market's swoon. "We have not done anything because we don't see anything that attractive to do," Buffett said at the time, suggesting that the quick actions taken by the Federal Reserve this year meant companies could get more access to financing in the public markets than they could during the financial crisis in 2008 and 2009. "If we really liked what we were seeing, we would do it, and that will happen someday," Buffett said in May. For Dominion, the move is part of its transition to a pure-play regulated utility company that focuses on clean energy production from wind, solar and natural gas. Following the sale, Dominion expects that 90% of its future operating earnings will come from its utility companies that provide energy to more than 7 million customers in states like Virginia, North and South Carolina, Ohio and Utah. Dominion also announced that it is cancelling its Atlantic Coast Pipeline project with Duke Energy. The $8 billion project has faced increasing regulatory scrutiny and delays that have ballooned projected costs and raised doubts about its economic feasibility. With the purchase, Berkshire Hathaway Energy will carry 18% of all interstate natural gas transmission in the United States, up from 8% currently. Under the deal, Berkshire Hathaway Energy will acquire 100% of Dominion Energy Transmission, Questar Pipeline and Carolina Gas Transmission and 50% of Iroquois Gas Transmission System. Berkshire will also acquire 25% of Cove Point LNG, an export-import and storage facility for liquefied natural gas, one of just six in the U.S.
Opponents: Pipeline's defeat 'a testament to perseverance' (AP) — Richard Averitt and his wife have spent six years and more than six figures fighting to keep the Atlantic Coast Pipeline off their picturesque central Virginia property. In all that time, Averitt said he couldn’t recall meeting a single person who thought they would succeed. The massive interstate natural gas pipeline designed to start in West Virginia and run at least through Virginia and North Carolina was being developed by some of the country’s biggest and most politically powerful energy companies with support of lawmakers and governors from both parties, labor unions and the Trump administration. But on Sunday, Duke Energy and Dominion Energy announced they had pulled the plug on the $8 billion project, citing uncertainties about costs, permitting and litigation. Environmental advocates and other opponents of the ACP called the decision to scrap the project a historic David-beats-Goliath win that — along with a recent blow to the Keystone XL oil sands pipeline — marks a turning point in the climate fight, illustrating the time has passed for energy companies to invest in massive fossil fuel infrastructure projects.“The Atlantic Coast Pipeline was an anvil that would have stymied investment in renewable energy for decades, harmed vulnerable communities, and crushed mountainsides,” Greg Buppert, a senior attorney at the Southern Environmental Law Center, which for the past six years has represented conservation groups opposing the project, said in a statement. Prominent conservation groups including the Sierra Club, the Natural Resources Defense Council and SELC did fight the pipeline, but the effort also included smaller, grassroots organizations, including more than 50 in Virginia and West Virginia that banded together to form the Allegheny-Blue Ridge Alliance. Getting the project built would have involved tree removal and blasting and leveling some ridgetops as the pipe, 42 inches (1 meter) in diameter for much of its path, crossed mountains, hundreds of water bodies and other sensitive terrain and burrowed underneath the Appalachian Trail.Dominion and Duke said in their announcement that a key reason they were abandoning the pipeline was a decision by a Montana judge in a case over the Keystone XL that would potentially keep the ACP tied up in court too.In the Keystone case, an April ruling from a federal judge dealing with a type of permit used to approve oil and gas pipelines and other utility work through wetlands and streams had threatened to delay not just that project but more than 70 other pipelines across the U.S. and add as much as $2 billion in costs, according to industry representatives.
Atlantic Coast Pipeline: why it took so long to defeat. -The Atlantic Coast Pipeline was a planned underground highway of natural gas, meant to cover 600 miles across the South. Activists were hugely worried about the environmental impact of the pipeline, so their strategy was to block every attempt to get it built. They tried to keep pipelines away from the Appalachian Trail. They argued that construction of the pipeline put endangered species at risk. They filed lawsuits. All this work slowed the pipeline down, but what no one was expecting was what happened this weekend: After six years of legal fights, Duke Energy and Dominion Energy, the companies behind this pipeline, announced that thewhole thing was canceled. How did this victory happen? And can it be replicated?On Wednesday’s episode of What Next, I spoke with Lyndsey Gilpin, the founder and editor in chief of Southerly, a media organization covering ecology, justice, and culture in the South, about the people who dedicated years to successfully busting the Atlantic Coast Pipeline. Our conversation has been edited and condensed for clarity.
Duke Energy, Dominion likely began to consider abandoning Atlantic Coast Pipeline last year - Charlotte Business Journal - Back in November, Duke Energy announced a $2.5 billion stock sale that allowed it "to absorb a wide range of outcomes associated" with the Atlantic Coast Pipeline. Turns out that amount covers the charge Duke expects to take against earnings for abandoning the project.
What sank the Atlantic Coast Pipeline? It wasn't just environmentalism. - In a year of turmoil, the news that Dominion Energy and Duke Energy had decided to pull the plug on the pipeline still managed to be a bombshell. The companies had poured billions into the effort, which was only about 6 percent complete. They had just won a victory at the U.S. Supreme Court, which had declared the pipeline could pass beneath the Appalachian Trail. So what happened? Dominion attributed the pipeline’s demise to “ongoing delays and increasing cost uncertainty which threaten the economic viability of the project.” In particular, the utility pointed a finger at a string of legal challenges to federal and state permits the pipeline had received and then subsequently saw yanked. The delays had been extremely costly: since the initial $4.5 to $5 billion estimate, the price tag had risen to $8 billion. “To state the obvious, permitting for investment in gas transmission and storage has become increasingly litigious, uncertain and costly,” Farrell told investors on a Monday call. “This trend, though deeply concerning for our country’s economic growth and energy security, is a new reality.” President Donald Trump’s administration, which had argued on behalf of Dominion before the Supreme Court in February, blamed what U.S. Secretary of Energy Dan Brouillette on Sunday called “the well-funded, obstructionist environmental lobby,” an accusation picked up by industry groups like the U.S. Energy Association, which called out “environmental lobbyists with a myopic view and an ideology-driven agenda.” But seeing the ACP’s defeat merely as proof that natural gas pipeline projects are increasingly litigious and difficult to build “really ignores the fact that the problems with this project were self-inflicted,” said Southern Environmental Law Center attorney Greg Buppert, who has represented project opponents in numerous cases, including the Cowpasture case that went to the Supreme Court.“There were always different choices that the company could have made. … Those are decisions that have consequences,” he said.
NATURAL GAS: With Atlantic Coast dead, is this pipeline next? -- The death of the long-embattled Atlantic Coast pipeline has energized environmental and public health groups looking to bring down other major oil and gas projects. For many in the Appalachian region, that means the 300-mile Mountain Valley pipeline, which is being built to move natural gas from northwestern West Virginia to southern Virginia and has faced similar backlash from local community groups. But the project's developer, EQM Midstream Partners LP, insists the pipeline is on track to come online next year, and some analysts say the demise of the Atlantic Coast line could actually boost Mountain Valley's prospects. Dominion Energy Inc. and Duke Energy Corp. axed the Atlantic Coast natural gas transmission pipeline Sunday, citing ongoing delays and concerns over the $8 billion project's economic viability (Energywire, July 5). "It is a somewhat positive development for Mountain Valley because the Appalachian region is still a prolific gas-producing basin," said Sreedhar Kona, a senior oil and gas analyst with Moody's Investors Service. "There is gas that needs to get out, and now there is one less pipeline that can carry it." Joe Dawley, a partner at Earth & Water Law who helped lead the push on the Mountain Valley pipeline project as a top attorney for natural gas producer EQT Corp., echoed this sentiment. He said that without the Atlantic Coast pipeline, Mountain Valley will have access to dedicated federal resources."There are limited agency resources, so one less large project on their plate is beneficial to Mountain Valley," he said. "But at the same time, the environmental scrutiny will be higher."Indeed, environmental groups have found recent success by dragging fossil fuel projects through litigation battles. Lawyers with the Southern Environmental Law Center succeeded in getting the 4th U.S. Circuit Court of Appeals to stall the Atlantic Coast pipeline by arguing the permitting process was hurried and flawed (Energywire, July 7).
PIPELINES: Court urged to keep door shut on FERC delay tactic -- Friday, July 10, 2020 -- Environmentalist groups are asking a federal court to remain firm in its watershed decision to bar the Federal Energy Regulatory Commission from stalling challenges to pipeline projects, despite the agency's request for more time.
Natural gas pipeline developers aim to differentiate from Atlantic Coast and avoid its fate --Duke Energy and Dominion Energy's joint announcement canceling the Atlantic Coast Pipeline (ACP) natural gas project has spurred other natural gas pipeline developers to project confidence in their projects and differentiate themselves from ACP."The industry is rightfully scared that the status quo is changing... and it's therefore unsurprising that companies would be eager to find ways to distinguish themselves from Atlantic Coast," Gillian Giannetti, an attorney in the Sustainable FERC Project at the Natural Resources Defense Council, told Utility Dive. "Whether that turns out to be appropriate remains to be seen."Similar to ACP, the Mountain Valley Pipeline (MVP) project is crossing the Appalachian Trail and developers continue to pursue permitting for the project. They were quick to issue a statement on Sunday setting their project apart from ACP."From the beginning, ACP and Mountain Valley Pipeline (MVP) have been very different projects, as evidenced by the fact that total project work for MVP is roughly 92% complete," they said.Mountain Valley is owned by Equitrans Midstream, NextEra Energy, Consolidated Edison, AltaGas and RGC Resources. The pipeline is set to enter into service early next year and its capacity "has been fully subscribed since the onset of the project," to deliver natural gas in the mid-Atlantic and Southeastern U.S.Reuters reported on Tuesday that analysts foresee how the proposed Southgate extension of the MVP project into North Carolina could gain traction due to the region's growing energy demand in the wake of the ACP cancellation. But MVP has also run into challenges. FERC ordered a halt to construction in October along the entire route while the federal government studies MVP's potential impacts on endangered species. But developers say the project remains on track. "As the MVP project team continues to work through and resolve the outstanding regulatory permits, the project’s current construction plan incorporates sufficient tie-in work and activity that will allow for construction to progress into the early winter, provided MVP receives its Biological Opinion in July and the FERC lifts the stop work order, all of which keeps MVP on track to meet its targeted early 2021 in-service date," according to Natalie Cox, Equitrans spokesperson. But environmental groups maintain that MVP could face a similar fate to ACP. Another project, the PennEast Pipeline, also highlighted that it's "unrelated" to ACP, according to spokesperson Patricia Kornick. The developers are pursuing a decision from the Supreme Court, which requested input from the U.S. Solicitor General on a permitting issue, which has caused environmental groups to compare the two projects.
PennEast Pipeline partners still determined to build $1 billion pipeline project - PennEast Pipeline partner companies remain committed to their pipeline project as they await a decision by the U.S. Supreme Court on whether the high court will hear its appeal, which could decide the projects fate. The appeal centers around a 2019 Third Circuit Court of Appeals decision denying the condemning of 42 parcels of New Jersey state-owned land for its $1 billion pipeline project. Before the high court makes its decision, Supreme Court justices had asked for the U.S. Solicitor General to file a brief expressing the Trump Administration’s views on the issue at hand on June 29, according to the U.S. Supreme Court docket for the petition. PennEast’s spokesperson Patricia Kornick said partner companies are pleased that the U.S. Supreme Court requested the views of the solicitor general regarding the issues presented in the company’s petition. “Eighteen business, labor and consumer advocacy organizations filing amicus briefs in support of the PennEast petition demonstrate the importance of reversing the Third Circuit’s decision.” The construction of the 116-mile long natural gas pipeline is a $1 billion project from Pennsylvania into New Jersey. If the pipeline project were to be constructed, its construction would occur in the Hopewell area, while the New Jersey leg of the pipeline accounts for about one-third of the total project. “PennEast remains hopeful that the U.S. Supreme Court will grant the petition and put an end to the ‘profoundly adverse impacts … on the development of the nation’s interstate natural gas transportation system’ that FERC has explained the Third Circuit’s decision is having,” Kornick said. The recent abandonment by Duke Energy and Dominion Energy of their own $8 billion pipeline project (Atlantic Coast pipeline) from West Virginia to North Carolina will not have any impact on future decisions by PennEast partner companies on PennEast’s own project, according to Kornick. In November, the company made the decision to appeal its federal appeals case to the U.S. Supreme Court. The decision came in light of a November ruling by Third Circuit Court of Appeals, denying PennEast’s request to rehear a case concerning the condemning of 42 parcels of New Jersey state-owned land for PennEast’s pipeline project. Due to that denial and opinion by the third circuit, the New Jersey Department of Environmental Protection also denied the company’s Freshwater Wetlands Permit application siting that PennEast’s application could not be “administratively complete” because of the circuit’s decision.
Controversial $180M pipeline that ruined a N.J. house has key permit suspended - The future of a controversial natural gas pipeline running through the Pinelands is in doubt after work on the project caused a house to be condemned last month. On Wednesday, the New Jersey Department of Environmental Protection suspended a key permit for construction of the Southern Reliability Link pipeline. The permit allowed for horizontal direction drilling (HDD) at specific points along the pipeline route. As long as the permit remains suspended, no such drilling is allowed for the project. The $180 million pipeline, which is being constructed by New Jersey Natural Gas, would carry natural gas 30 miles underground through Burlington, Monmouth and Ocean counties. The goal of the new pipeline is to provide more resilience to the areas natural gas supply in case of disaster, according to the utility. Environmental groups and opponents of the pipeline have long maintained there is no proof that such added resilience is necessary. Instead, they argue that the pipeline is a way to boost natural gas capacity as the fracking-driven natural gas boom in Pennsylvania’s Marcellus Shale region continues, and that the pipeline poses a threat to environmental health. HDD uses drilling fluid to bore horizontally through the ground, rather having workers dig a trench. If something goes wrong, that drilling fluid can force its way back to the surface and cause a spill known as an “inadvertent return.” In its letter to NJNG, the DEP said that three recent drilling-related spills had caused the SRL pipeline project to pollute sensitive environments like freshwater wetlands and headwater streams, thus violating the conditions of the permits. The DEP did not immediately respond to NJ Advance Media’s request for comment. Kevin Roberts, a spokesman for NJNG, said in a statement that the utility is working with authorities while HDD work for the pipeline remains suspended. Roberts added that NJNG still expects the SRL pipeline to be in service in 2021.
Are gas royalty owners buyers or sellers? In a court fight over royalties, the answer to that question could make all the difference to landowners - When natural gas drillers started rolling into Pennsylvania during the shale boom over a decade ago, some landowners got their hopes up. “Depending on the amount of acreage you had, people had big expectations and small expectations,” said Jackie Root, a consultant and membership director of the Pennsylvania Oil and Gas Landowner Alliance. Some farmers who leased their mineral rights were able to pay cash for new equipment or barns. Some landowners got enough money to put their kids through college. But for many, those expectations never materialized. “It’s like they’re led up to the river and then actually can’t get in there to drink,” Root said. Some say the drillers aren’t paying them what they’re owed. Many have joined class action lawsuits in an attempt to recover their losses. Some have reached settlements with companies, while others are still waiting on a final decision. Under the direction of former Gov. Tom Corbett and state Sen. Gene Yaw (R-Lycoming), then-Attorney General Kathleen Kane started investigating one driller, Chesapeake Energy, in early 2014. Her office filed a lawsuit in late 2015,alleging the company deceived landowners into leasing their mineral rights. The office said the case could affect more than 4,000 Pennsylvania landowners who signed leases with Chesapeake. Now, after years of delays, a case in Pennsylvania’s Supreme Court could determine whether the AG’s case can go forward. At the heart of that case is who is protected by the state’s Unfair Trade Practices and Consumer Protection Law. A decision siding with the AG would allow the case to finally be argued in Bradford County Court, where it originated. If they win there, royalty owners could have another tool when disputing contracts and payments with gas companies. Landowners hope that tool will ultimately help them get paid what they claim they’re owed.
U.S. natgas jumps to 5-week high on hot weather, rising cooling demand (Reuters) - U.S. natural gas futures jumped to a five-week high on Monday on forecasts calling for warmer weather and higher air conditioning demand over the next two weeks than previously expected. That price move comes despite rising output, coronavirus demand destruction, swelling stockpiles and a collapse in liquefied natural gas (LNG) exports to their lowest since 2018. Front-month gas futures rose 9.6 cents, or 5.5%, to settle at $1.830 per million British thermal units. That is their highest close since May 29 and is up almost 30% from a near 25-year low of $1.432 hit about a week ago. Looking ahead, futures for the balance of 2020 and calendar 2021 were trading about 22% and 43% over the front-month, respectively, on hopes the economy and energy demand will rebound as state governments lift coronavirus-linked lockdowns. Refinitiv said production in the Lower 48 U.S. states averaged 88.7 billion cubic feet per day (bcfd) so far in July, up from a 20-month low of 87.0 bcfd in June compared with an all-time monthly high of 95.4 bcfd in November. As the weather heats up, Refinitiv forecasts U.S. demand, including exports, would rise from 89.0 bcfd this week to 92.6 bcfd next week. That is higher than its forecasts on Thursday before the long U.S. July Fourth holiday weekend. 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. U.S. pipeline exports, meanwhile, were mixed. Refinitiv said pipeline exports to Canada averaged 2.4 bcfd so far in July, up from 2.3 bcfd in June but still well below the all-time monthly high of 3.5 bcfd in December. Pipeline exports to Mexico, however, averaged 5.2 bcfd so far this month, down from 5.4 bcfd in June and a record 5.6 bcfd in March.
U.S. natgas output drops by record amount after West Virginia pipe shuts - U.S. natural gas production was on track to drop by a record amount on Tuesday to its lowest since September 2018 due in part to unplanned work on TC Energy Corp’s Mountaineer Xpress pipeline in West Virginia, according to Refinitiv data.Preliminary pipeline flow data showed U.S. output was expected to drop by 4.2 billion cubic feet per day (bcfd) to 84.6 bcfd on Tuesday. One billion cubic feet is enough gas to supply about 5 million U.S. homes for a day. If correct, that would be the biggest daily decline on record, according to Refinitiv data going back to 2011. Traders, however, noted pipeline flows are measured several times a day and the data is subject to change. Analysts said work on the 2.6-bcfd Mountaineer Xpress was expected to reduce output in West Virginia by around 2.0 bcfd, so the rest of the nation’s production declines were scattered among several other states and not necessarily related to Mountaineer. TC Energy’s Columbia Gas Transmission (TCO) unit, which operates the Mountaineer pipe, said on its website that it declared a force majeure effective for the evening cycle on Tuesday, July 7, due to unplanned maintenance. That work requires a pressure reduction south of the Mount Olive compressor station. The company did not say when the pipe would return to full service. Officials at TC Energy were not immediately available for comment. Despite the output decline on Tuesday, Refinitiv said production in the Lower 48 U.S. states has averaged 88.1 bcfd so far in July.
NYMEX prompt hits two-month high as force majeure cuts Appalachian production | S&P Global Platts -NYMEX Henry Hub prompt-month prices surged to a two-month high in July 7 trading after a force majeure on Columbia Gas' Mountaineer XPress Pipeline cut Appalachian gas production by over 2.2 Bcf/d, amid no announced timeline for a return to service on the impacted segment. After trading into the low $1.90s, the August contract settled July 7 at $1.88/MMBtu – up more than 20 cents since the start of the month to its highest closing price since early May. In the cash market, Henry Hub gas rose about 4 cents on the day to $1.74/MMBtu, preliminary settlement data from S&P Global Platts showed. In Appalachia, gas production dropped on July 7 by over 2.2 Bcf on the day to an estimated 29.8 Bcf, its lowest in 14 months, amid concentrated declines in the West Virginia wet and South Pennsylvania dry windows, data compiled by S&P Global Platts Analytics showed. While upstream receipts are likely to be revised higher as rerouted production becomes visible, a return to prior 30-day output levels in Appalachia, around 31.6 Bcf/d, could be limited by existing flow restrictions on other regional pipes, including Texas Eastern Transmission, and by elevated storage levels. In a critical notice updated July 7, Columbia Gas said that unplanned maintenance on a segment of its Mountaineer XPress Pipeline near Leach, Kentucky would a require a temporary pressure reduction, dropping capacity on the line to 100 MMcf/d, down from its nameplate 2 Bcf/d. According to the updated posting, the pressure reduction will remain in effect until further notice. Flows along the affected segment of Mountaineer XPress dropped to 100 MMcf/d July 7, down from a prior 30-day average at 1.9 Bcf/d. In West Virginia, evening cycle production receipts dropped roughly 1.6 Bcf on the day, while receipts in southern Pennsylvania were down by over 400 MMcf/d. Appalachian market At Appalachia's benchmark Dominion South hub, stranded production overwhelmed local demand, driving cash prices down about 16 cents on the day to a preliminary settlement at $1.33/MMBtu. According to Platts Analytics, Tennessee Gas Pipeline has the most spare-capacity among alternate interstate pipes exiting the Appalachian Basin, with roughly 500 MMcf/d available. With capacity on Texas Eastern Transmission limited by its own ongoing pressure reduction near the Owingsville compressor station in Kentucky, the pipeline is current flowing nearly full around 1.4 Bcf/d.
U.S. natgas climbs to 2-month high on hot weather, pipe shutdown - (Reuters) - U.S. natural gas futures rose to a two-month high on Tuesday with output on track to fall by a record amount after a pipe shutdown in West Virginia and on forecasts confirming Monday's hot weather outlook that will keep air conditioners humming for the next two weeks. The price rise comes despite coronavirus demand destruction, stockpiles swelling toward record highs, and a collapse in liquefied natural gas (LNG) exports to their lowest levels since 2018. Front-month gas futures rose 4.6 cents, or 2.5%, to settle at $1.876 per million British thermal units. That is the highest price since May 7 and up 31% from a near 25-year low of $1.432 hit about a week ago. Looking ahead, futures for the balance of 2020 and calendar 2021 were trading about 19% and 37%, respectively, over the front-month, on hopes the economy will rebound and energy demand will increase as state governments lift coronavirus-linked lockdowns. U.S. gas production was on track to drop by a record amount on Tuesday to its lowest level since September 2018 due in part to unplanned work on TC Energy Corp's Mountaineer Xpress pipeline in West Virginia. Overall, however, 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 compared with an all-time monthly high of 95.4 bcfd in November. As the weather heats up, Refinitiv forecasts U.S. demand, including exports, will rise from 88.8 bcfd this week to 91.9 bcfd next week. That is a little lower than its forecasts on Monday.
U.S. natgas slides on smaller than expected output drop, less cooling demand -(Reuters) - U.S. natural gas futures slipped on Wednesday from a two-month high in the prior session on a forecast small decline in cooling demand next week, a continued drop in liquefied natural gas (LNG) exports and a smaller than expected drop in output due to unplanned pipeline work. Front-month gas futures fell 5.2 cents, or 2.8%, to settle at $1.824 per million British thermal units. On Tuesday, the contract closed at its highest since May 7. Looking ahead, futures for the balance of 2020 and calendar 2021 were trading about 22% and 43%, respectively, over the front-month, on hopes energy demand will rise. 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. U.S. gas production on Wednesday was on track to drop to its lowest since mid June following revisions of pipeline flows on Tuesday due to unplanned work on TC Energy Corp's Mountaineer Xpress pipeline in West Virginia that will continue through at least July 13. On Tuesday, early pipeline flow data showed output was expected to drop by a record 4.2 bcfd. In reality, however, output fell by just 1.9 bcfd, which is still high but only the most in a day since May 1. As the weather heats up, Refinitiv forecasts U.S. demand, including exports, will rise from 89.1 bcfd this week to 91.0 bcfd next week. The outlook for next week is a little lower than Refinitiv expected on Tuesday. Pipeline gas flowing to U.S. LNG export plants averaged just 3.1 bcfd (32% 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.
US working natural gas volume in underground storage rises by 56 Bcf: EIA | S&P Global Platts— US natural gas in storage rose 56 Bcf in the week ended July 3, according to Energy Information Administration data released July 9, as electric generation boosted demand and the Henry Hub prompt-month contract continues to inch closer to the $2/MMBtu mark. The estimated 56 Bcf build, to total underground gas storage stocks of 3.133 Tcf, was slightly above consensus expectations of an S&P Global Platts' survey of analysts, which called for a 55 Bcf build. Responses to the survey ranged from an injection of 42 Bcf to one of 65 Bcf. The injection was smaller than the 83 Bcf build reported during the corresponding week in 2019 and the five-year average increase of 68 Bcf, according to EIA data. Summer heat intensified across the US Midwest and Southeast in the week that ended July 3, pushing estimated nationwide power burn to a year-to-date high of 39.9 Bcf/d, according to S&P Global Platts Analytics. Meanwhile, after bottoming out at 3.8 Bcf/d two weeks ago, LNG feedgas deliveries held above 4 Bcf/d for the second week in a row, helping trim the 18% inventory surplus that will weigh on Henry Hub prices through the end of injection season in October. Storage volumes now stand 685 Bcf, or 28%, above the year-ago level of 2.448 Tcf and 454 Bcf, or 17%, above the five-year average of 2.679 Tcf. Platts Analytics' supply and demand model currently expects a 52 Bcf injection for the week ending July 10, which would be 11 Bcf below the five-year average, as supply-and-demand fundamentals draw tighter. Gas-fired power demand continues to ratchet up deeper into the US cooling season. Year-to-date power burn has been impressive from the perspective of electricity demand, which was relatively lackluster because of a mild winter, followed immediately by the suppressive impact of coronavirus and efforts to mitigate its spread. However, corresponding pressure to gas prices has provided gas-fired generation the ability to increase market share and dominate the supply stack, displacing an enormous amount of coal-fired generation, according to Platts Analytics. Through June, electricity demand across the continental US averaged 4% lower year on year, while gas-fired generation managed to increase 7% in the same period. Gas prices at Henry Hub averaged 90 cents/MMBtu lower through the first half of 2020, which facilitated nearly 30% year-on-year declines in coal-fired generation.
U.S. natgas futures fall with crude prices after storage report - (Reuters) - U.S. natural gas futures fell over 2% on Thursday, following a 3% decline in crude futures related to worries about ongoing coronavirus demand destruction despite a report showing a smaller-than-usual weekly gas storage build that was in line with estimates. That price drop also came as gas output slowly rises and liquefied natural gas (LNG) exports slowly fall, despite forecasts for hot weather and high air conditioning demand over the next two weeks. The U.S. Energy Information Administration (EIA) said U.S. utilities injected 56 billion cubic feet (bcf) of gas into storage during the week ended July 3. That is close to the 58-bcf build analysts forecast in a Reuters poll and compares with an increase of 83 bcf during the same week last year and a five-year (2015-19) average build of 68 bcf for the period. Front-month gas futures fell 4.5 cents, or 2.5%, to settle at $1.779 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.
U.S. natgas futures rise as hot weather boosts air conditioning demand -(Reuters) - U.S. natural gas futures climbed on Friday on forecasts hotter-than-normal weather will keep air conditioners humming through late July. The higher price move comes despite a slow increase in output and a drop in liquefied natural gas (LNG) exports to their lowest since early 2018. Front-month gas futures rose 2.6 cents, or 1.5%, to settle at $1.805 per million British thermal units. For the week, the contract gained about 4%, putting it up for a second week in a row after soaring 16% last week. Traders predicted that Tropical Storm Fay, which is heading for the New York City area, would likely have little impact on gas demand. 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 the weather heats up, Refinitiv forecast U.S. demand, including exports, will rise from 89.3 bcfd this week to 91.4 bcfd next week and 93.3 bcfd in two weeks. Pipeline gas flowing to U.S. LNG export plants averaged just 3.1 bcfd (32% 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 LNG in Texas fell to zero for a fourth day in a row the first time since July 2019 when its first liquefaction train was still in test mode. 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 5.4 bcfd for a second month in a row, which is down from a record 5.6 bcfd in March.
Anti-Line 5 activists buoyed by national pipeline victories ⋆ Indigenous activists and environmentalists scored two major victories over pipeline companies this week in quick succession. On Sunday, two major energy companies in Virginia and North Carolina announced that permitting delays, economic concerns and legal challenges have caused them to pull the plug on a $8 billion natural gas pipeline. The Atlantic Coast pipeline would have traveled under the Appalachian Trail. Only a day later, a federal judge ruled that the controversial Dakota Access Pipeline (DAPL) will be shut down for a thorough environmental review — possibly for years — and must be emptied of oil by early August. Could a few significant wins for water defenders also spell trouble for Enbridge, the Canadian oil company facing criticism and lawsuits over its Line 5 oil pipeline under the Straits of Mackinac? Enbridge, in addition to being the largest pipeline company in North America, is also a partial owner of the DAPL. The 27.6% stake it holds in the Bakken Pipeline System housing the DAPL translates to an investment of $1.5 billion. Enbridge finalized that investment in 2016 — the same year that protests against the DAPL surged and led to violent clashes between indigenous people and law enforcement in North Dakota. The Line 5 dual pipeline has transported oil across the Straits bottomlands for nearly 70 years. A 1953 easement with the state of Michigan allows Enbridge to operate under the choppy waters connecting Lake Michigan and Lake Huron. Sean McBrearty, campaign coordinator for the anti-Line 5 Oil & Water Don’t Mix coalition, said Monday’s DAPL court order was a “monumental victory” for North Dakota’s Standing Rock Sioux Tribe. “Across the country, courts and government agencies are beginning to realize that environmental protections must be enforced to protect residents and our natural resources from the devastating impacts of further fossil fuel development,” McBrearty said.
Tests show west leg of Line 5 pipeline isn't damaged - A court-ordered investigation on one of the dual Line 5 oil pipeline’s underwater segments found no indication of metal loss or deformation on an area of interest, according to court documents obtained by the Advance. Canadian oil company Enbridge had restarted the west leg of Line 5, which runs under the Straits of Mackinac, on July 1 under orders from circuit court Judge James Jamo. Jamo had requested that an in-line inspection (ILI) be completed on a 50-square-inch area toward the middle of the pipeline and that Enbridge provide those results to the state within seven days. The west segment remains in operation while the east segment remains shut down. “The inspection results conclude that there are zero metal loss and zero dent anomalies in this area. These results are consistent with past ILI inspection results and demonstrate the pipeline is safe and fit for continued operation,” Enbridge’s notice of the west line investigation report reads. Enbridge spokesperson Ryan Duffy said the test “reconfirms that the west leg of the pipeline is safe to operate” and emphasized that the state of Michigan will continue to be advised of further investigations. Enbridge has not been able to conclude definitively what caused the damage to either line, but says the discolored patch and disturbed aquatic biota on the west line’s area of interest was likely caused by a thin, lightweight cable being dragged perpendicular across it by a boat. Sean McBrearty, campaign coordinator to the anti-Line 5 Oil & Water Don’t Mix coalition, said in a statement Thursday afternoon that the July 1 investigation results should not reassure Michiganders about the pipeline’s risk to the Great Lakes. “While Enbridge wants us to be reassured by a report they issued today on the damage to one of two Line 5 pipelines, this is just another finger holding back a breach in the proverbial overflowing dam,” McBrearty said. “Only luck is keeping Michigan and the Great Lakes being hit with a catastrophic Line 5 rupture. “…Michigan shouldn’t be relying on Enbridge to keep the Great Lakes safe. The fact that Gov. Whitmer is content with simply keeping a finger poised to plug the next immediate Line 5 threat is disappointing and unacceptable. The solution is obvious: we need all hands on deck to shut down Line 5 and that includes Michigan’s governor,” McBrearty continued.*
Natural gas pipeline from Wicomico to Somerset County, public comment open - – A natural gas pipeline is proposed to be built on the Eastern Shore by the end of 2021. Many are voicing their support and citing economic growth but environmentalists aren’t too happy with the project. The Maryland Department of Environment held the first public hearing on this proposal on Tuesday night. Lawmakers say this has been in the works for more than two decades. Supporters say this will entice more businesses to set up shop in Somerset County as well as benefit the University of Maryland Eastern Shore and Eastern Correctional Institution. However, critics say there are safer alternatives that won’t put residents’ health at risk. “It’s either the pipeline or nothing. But my perspective is that there are choices,” says Susan Olsen with the Lower Eastern Shore Group of the Sierra Club. Residents and officials are making their voices heard about an almost 18-mile long proposed natural gas pipeline extension, stretching the Del-Mar Energy Pathway Project from Wicomico County to Somerset County. “We want a clean environment. We want a sustainable environment. We also need a sustainable economic future,” says Jim Mathias, the director of government relations for the University of Maryland Eastern Shore. According to proposals, 91 percent of the pipeline would be under existing roadways like Route 13 but it would also cross some areas with water to reach Princess Anne and Westover. Environmental groups are concerned about this project because these pipes can leak which some research links to health issues including cancer. “I don’t think we have to go to fracked gas. It’s too dangerous,” says Olsen. Officials say this change would make Somerset County more attractive to new businesses and offer a cheaper more eco-friendly alternative to places that currently use diesel fuel including the University of Maryland Eastern Shore and Eastern Correctional Institution. “The conversion to natural gas would reduce CO2 emissions at ECI by 64 percent and reduce CO2 emissions at UMES by 23 percent,” says Maryland Senator Mary Beth Carozza.
Shell is testing the market to sell its Convent refinery, Sorrento salt cavern and more - Shell is testing the market to potentially sell its Convent refinery and various facilities associated with the site. A potential sale of the Convent refinery, located midway between Baton Rouge and New Orleans, also would include its products truck terminal, marine docks, the Sorrento salt cavern for liquefied petroleum gas storage, and rights for its Bengal Pipeline. "We have informed staff and local community leaders that we are assessing market interest for the potential divestment of the Shell Convent refinery in Louisiana," spokesman Curtis Smith said. He said the process could take several months. The plan is consistent with a mid-2019 announcement that the company plans to narrow its ownership to a smaller, optimal core set of "uniquely positioned refineries by 2025." The remaining core sites will be ones more closely integrated with Shell trading hubs and able to produce more chemicals and related products expected to be resilient in a low-carbon future. "It’s important to keep in mind this process may or may not result in a finalized sale," Smith said. He said the U.S. Gulf Coast will remain a key region for Shell through its integrated manufacturing sites, Gulf of Mexico oil and gas operations, midstream infrastructure assets, branded gasoline outlets and hub offices in Houston and New Orleans. The refinery is located on a 4,400-acre site that straddles Ascension and St. James parishes and employs 700 Shell workers and 400 contract workers. The processing equipment is located in St. James Parish and occupies about 900 acres, according to the company's website, with a capacity to process 240,000 barrels of crude oil per day. The refinery produces various grades of gasoline; jet fuel; diesel fuel and heating oil; propane and butane for residential and industrial use; and oil for tankers, power generation and locomotives. The facility has access to multiple major crude oil and product pipelines, which ship gasoline, diesel, kerosene and jet fuel. The site’s location on the Mississippi River allows shipping and receiving petroleum products aboard ocean-going vessels. The refinery uses two docks along 6,000 feet of Mississippi River access.
Dakota Access Pipeline Shutdown Will Not Affect Bayou Bridge Pipeline, Says Company That Owns Both - The temporary closure of the Dakota Access Pipeline will not affect Louisiana’s Bayou Bridge Pipeline, according to the company that owns both.“The Bayou Bridge Pipeline is an extension of a pre-existing network of infrastructure that has already been in place for years,” Energy Transfer spokesperson Lisa Coleman said in an email Tuesday morning. “The pipeline is fully permitted and will remain in operation.”On Monday, a federal judge ordered the Dakota Access Pipeline to be shut down and drained of oil while an environmental impact statement was completed by the Army Corps of Engineers. It’s the latest development in a multi-year fight that involved high-profile Standing Rock protests in North Dakota in 2016.The Obama Administration denied permits for the pipeline in 2016, but the Trump Administration quickly reversed that decision once he took office in 2017. It was completed in 2017.In Monday’s ruling, U.S. District Judge James Boasberg decided that the permits issued by the Army Corps of Engineers violated federal environmental law, that the Corps needs to amend its environmental assessment, and that the pipeline should cease operations while that takes place.Energy Transfer disagreed with the judge’s ruling. In a statement, the company said it believes Boasberg “exceeded his authority in ordering the shutdown of the Dakota Access Pipeline, which has been safely operating for more than three years.” Coleman said the company is “looking into all options available to us to keep the Dakota Access Pipeline operating.” Bayou Bridge also faced resistance to its construction, albeit with a much lower profile compared to the Dakota Access. Over a span of many months in 2018, landowners and protesters attempted to block its construction both on the ground and in the courts.That included several arrests in 2018, including a few made that Septemberunder a then-new Louisiana law that made trespassing on pipeline property a felony, rather than just a misdemeanor. Construction stopped briefly in September 2018 when a landowner accused the company of illegally trespassing, but resumed shortly thereafter. In December 2018, a Louisiana judge ruled that the company had indeed trespassed, but was allowed to exercise eminent domain over the property. The Bayou Bridge Pipeline ultimately went into service in March of 2019.
US Oil Exports Can Compete at $30 Break-Even --The near-term economic shock of the coronavirus, or COVID-19 pandemic has been profound, and as a domino effect the price of the global economy’s poster commodity – crude oil – has taken a hammering. Largely predictable range-bound oil price oscillation seen for much of 2019, gave way in February 2020 to extreme volatility as soon as the human cost and economic upheaval caused by the virus in China, its point of origination, became clear. Subsequent collapse of OPEC+ on March 6 and sparring between Saudi Arabia and Russia, coupled with the global spread of the virus, then created a supply glut as well as a demand crisis in tandem. As oil threatened to slide below $20, OPEC scrambled back to the negotiating table and brokered a 9.7 million barrels per day (bpd) production cut effective May 1. But the deal came too late to save April and was too little for May. That’s because all of the big five crude oil-consuming nations – U.S., China, India, Japan and South Korea – were experiencing lockdowns. Around the world, aviation, services and manufacturing sectors were seen taking the biggest hit. That meant paper traders were left dangling West Texas Intermediate (WTI) May contracts due for expiry on April 21, and their attempts at dumping a day before saw U.S. oil prices enter a negative patch for the first time in trading history closing at -$37.63 per barrel. That situational aberration aside, some semblance of normalcy is returning. While it is premature to assume the only way is up, major crude markets are limping back to heath. The westward spread of the virus has meant East Asian markets have been among the first to come out of the pandemic and are looking to step up economic activity. Such a scenario augurs well for U.S. exporters still left in the game, given that 2019 offered ample proof of incremental volumes of the country’s light sweet crude heading to Asia in general and East Asia in particular. According to Energy Information Administration (EIA), May 2019 saw more than half of 3 million bpd in exported American barrels going to Asia.
North American Oil And Gas Companies Continue To Go Bankrupt At $40 Oil --The rash of oil and gas bankruptcies in North America is set to continue for the remainder of 2020, a report by Haynes and Boone cited by Reuters shows. After the coronavirus pandemic and oil price war set in at the end of the first quarter, the second quarter began with a wave of bankruptcies in the oil and gas sector in North America, according to the report. There have been more than 18 producer bankruptcies in Q2 alone, according to Haynes and Boone—it is the highest quarterly figure since 2016 during the previous oil price crash. So far this year, 41 oil producers and oilfield service firms have sought bankruptcy protection. Even without the coronavirus pandemic or the oil price war, the flurry of bankruptcies were to be expected, with companies holding junk-rated bonds defaulting on interest payments at record levels even in 2019, with more distressed companies in the energy sector than in any other, Michael Bradley, energy strategist with Tudor, Pickering, Holt said at the end of last year. Of course, these distressed companies were all holding out hope that oil prices would recover in 2020. Nothing could have been further from how this year is playing out. This year has seen Chesapeake Energy, Diamond Offshore Drilling, Whiting Petroleum, And even while prices have rebounded, the $40 per barrel oil price right now will not be sufficient to stave off doom for the debt-laden shale producer, Haynes and Boone said. $40 oil will not be enough for shale companies to make good on their hefty debt obligations. Rystad Energy in April warned that as many as 530 U.S. oil companies could file for bankruptcy protection if oil had stayed at $20 per barrel.
PANDEMIC: Texas drilling permits plunge 69% -- Thursday, July 9, 2020 -- The biggest oil-producing state in the country issued less than a third as many oil and gas drilling permits last month as it did in June 2019, another sign of the COVID-19 pandemic's impacts on the energy industry.
'We aren’t going away': Oil drilling inside city limits remains thorny issue for many Texans - — An explosion jolted Jim and Mary Alice Estes awake early one morning last June as light from a nearby fireball danced on the walls of their home. The giant flare was from natural gas burning at an oil well being put into production a few hundred feet behind their property. A drilling rig had been parked behind their Bethel Springs Lane home for months, but nobody warned the couple or their neighbors in the Magnolia Creek subdivision that such startling production work would be taking place. Fearing something had gone wrong, they called 911. It was a rude awakening, literally, to a reality endured by thousands of city and suburban residents across Texas with oil and natural gas operations in their backyards.It came some five years after the passage of House Bill 40, a law that was supposed to sort out legal issues for drilling within city limits. Before oil and natural gas wells can be drilled within city limits, they require permits from both state and local officials. Supporters of House Bill 40 say the law settled what the state regulates and what cities control reaffirms. The bill reaffirmed the state’s authority to regulate the technical and underground aspects of an oil well while giving cities the authority to control surface activities such as traffic, noise and light, and requires wells to be a certain distance from homes and businesses. Critics, however, say the debate over distance requirements remains unsettled and that the law makes cities hostages to lawsuits, leaving them powerless to deny drilling permits. “That bill put profits over people and has made cities afraid to fight back,” Mary Alice Estes said. “None of the people who signed that bill would want to live in our house, on our street and experience what we experienced.” The vast majority of the state’s 438,000 oil and gas wells are in rural areas, but there are thousands in cities such as Fort Worth and Houston, in suburban communities and under entire towns in the Permian Basin, according to the Railroad Commission of Texas, the state agency that regulates the industry.Over the decades, oil companies have drilled hundreds of wells in areas that have been swallowed up by Houston as the city grew. An area across Loop 610 from NRG Stadium is surrounded by hundreds of wells. Many have been plugged, but other wells were drilled in South Houston, the Oates Prairie neighborhood in northeast Houston and near the Sam Houston Race Park off Windfern Road near Beltway 8 in northwest Houston. The Magnolia Creek subdivision in League City, about halfway between Houston and Galveston along I-45, has $350,000 homes, parks, trails and a golf course. It was built over former rice fields that contained decades-old drilling sites.
Ruling: Nearly half of Okla. under tribal control -- Thursday, July 9, 2020 -- Millions of acres in the eastern half of Oklahoma remain part of a Native American reservation for criminal law purposes, the Supreme Court said today in a sharply divided ruling that could have implications for oil and gas development in the state. This morning's 5-4 decision put an end to a stalemate over whether 3 million acres of land, including part of the city of Tulsa, remained within the boundaries of Indian Country under an 1832 treaty struck with the Creek Nation after the U.S. government forced members of the tribe from their lands in Georgia and Alabama. The decision also recognized four other reservations in the state, bringing the total reservation land to 19 million acres. "Today we are asked whether the land these treaties promised remains an Indian reservation for purposes of federal criminal law," Justice Neil Gorsuch, joined by the court's four liberal justices, wrote for the majority. "Because Congress has not said otherwise, we hold the government to its word." The case, McGirt v. Oklahoma, had drawn the attention of at least one oil and gas association, which warned of the potential consequences to energy development if the high court found that the lands were still under tribal control. Gorsuch today acknowledged the "potential for cost and conflict" as a result of the ruling but said the state and tribe are capable of reaching intergovernmental agreements. Chief Justice John Roberts, who penned the court's dissenting opinion, also warned of the broad potential consequences of the ruling. He was joined by Justices Samuel Alito, Brett Kavanaugh and Clarence Thomas, except in one footnote of the opinion. Roberts argued that today's decision would hobble the state's ability to prosecute serious crimes and could lead to decades of convictions being thrown out. "On top of that, the Court has profoundly destabilized the governance of eastern Oklahoma," the chief justice wrote. "The decision today creates significant uncertainty for the State's continuing authority over any area that touches Indian affairs, ranging from zoning and taxation to family and environmental law."
New Mexico fines oil and gas company DCP Midstream - A Denver-based oil and gas company was fined $5.3 million by the New Mexico Environment Department (NMED) for repeated violations of state air pollution standards dating back to 2017. DCP Midstream was issued a compliance by NMED on Tuesday for eight Permian Basin facilities in Eddy and Lea counties which had thousands of past violations between December 2017 and June 2019, per a news release from NMED. During that time, DCP submitted 367 excess emission reports for the eight facilities, totaling in more than 2.1 million pounds of pollutants, read the release. Aside from the civil financial penalty, NMED’s order also demanded that DCP immediately comply with all air permit limits and state and federal air quality laws. DCP Midstream spokesperson Sarah Sandberg said the company received NMED's order and plants to respond to the allegations. She maintained that the emission releases "generally" related to equipment malfunctions and leaks and were excused from civil penalties under state law.
New Mexico again cites Kinder Morgan over 2018 gas spill cleanup in Anthony - . - Kinder Morgan was issued a formal notice of violation Tuesday by the New Mexico Environment Department's Hazardous Waste Bureau over its cleanup of a 2018 oil spill in southern Doña Ana County. A gasoline pipeline operated by the company burst near Three Saints Road outside the city of Anthony. According to the bureau, more than 400,000 gallons of refined petroleum spilled, requiring solid waste cleanup of contaminated soil. That amount is higher than previously reported. Three families were evacuated and temporarily lodged at hotels, at the company's expense. 54,600 gallons of gasoline were reported to have soaked into the Anthony Drain, a ditch within the Elephant Butte Irrigation District. In Tuesday's notice, the bureau said Kinder Morgan violated New Mexico statutes by failing to test the contaminated soil for toxicity until after it moved the soil, allegedly stockpiling next to a ditch before moving it to another location. Because it was moved, the bureau said levels of benzene in the soil were reduced before it was measured, obscuring the extent of toxicity where the spill took place. "Kinder Morgan failed to make a hazardous waste determination at the point of generation, before an alteration of the waste occurred," bureau chief Kevin Pierard wrote in the notice. "As a result, Kinder Morgan also failed to make an accurate determination as to whether the petroleum contaminated soil was a hazardous waste, a necessary step to ensure proper management of the waste stream."
Judge Orders Dakota Access Pipeline to Shut Down —Owners of the Dakota Access Pipeline (DAPL) must halt operations while the government conducts a full-fledged analysis examining the risk DAPL poses to the Standing Rock Sioux Tribe, a federal judge ruled today. The court decision delivered a hard-fought victory to the Tribe, which has been engaged in a high-profile struggle against the Dakota Access Pipeline since 2016.The ruling ordering a shutdown of DAPL marks the final word of a March 25 decision by the same judge. That ruling found that the U.S. Army Corps of Engineers had violated the National Environmental Policy Act (NEPA) and glossed over the devastating consequences of a potential oil spill when it affirmed its 2016 decision to permit the pipeline. The court ordered the Corps to re-examine the risks of the pipeline and prepare a full environmental impact statement, but left open the question as to whether pipeline operations would be halted as a legal remedy pending further briefing. After carefully analyzing the seriousness of the government’s legal violations, and the potential impacts on the Tribe and third parties, today’s decision concluded that shutting down the pipeline was necessary.The shutdown will remain in place pending completion of a full environmental review, which normally takes several years, and the issuance of new permits. It may be up to a new administration to make final permitting decisions. “Today is a historic day for the Standing Rock Sioux Tribe and the many people who have supported us in the fight against the pipeline,” said Chairman Mike Faith of the Standing Rock Sioux Tribe. “This pipeline should have never been built here. We told them that from the beginning.”“It took four long years, but today justice has been served at Standing Rock,” saidEarthjustice attorney Jan Hasselman, who represents the Tribe. “If the events of 2020 have taught us anything, it’s that health and justice must be prioritized early on in any decision-making process if we want to avoid a crisis later on. ”
Dakota Access Oil Line to Be Shut by Court in Blow for Trump (2) -The Dakota Access pipeline must shut down by Aug. 5, a district court ruled Monday in a stunning defeat for the Trump administration and the oil industry. The decision, which shuts the pipeline during a court-ordered environmental review that’s expected to extend into 2021, is a momentous win for American Indian tribes that have opposed the Energy Transfer LP project for years. It comes just a day after Dominion Energy Inc. and Duke Energy Corp. scuttled another project, the Atlantic Coast natural gas pipeline, after years of legal delays.Environmentalists have increasingly used the courts to try to block additional investment in fossil fuel infrastructure while they push for a clean energy transition. Tribes, landowners, and other project opponents have also complained about local impacts from construction and potential spills on or near their land.The sophisticated legal onslaught has led to delays and disruptions for numerous other proposed and operational pipelines, including Keystone XL. But Monday’s court order, if upheld on appeal, marks the first time a major, in-service oil pipeline will be forced to shutter because of environmental concerns. The U.S. District Court for the District of Columbia said a crucial federal permit for Dakota Access fell too far short of National Environmental Policy Act requirements to allow the pipeline to continue operating while regulators conduct a broader analysis the court ordered in a previous decision. The ruling scraps a critical permit from the Army Corps of Engineers, and requires the pipeline to end its three-year run of delivering oil from North Dakota shale fields to an Illinois oil hub. Judge James E. Boasberg said Dakota Access must shut down the pipeline and empty it of oil by Aug. 5. “Today is a historic day for the Standing Rock Sioux Tribe and the many people who have supported us in the fight against the pipeline,” tribal Chairman Mike Faith said in a statement. “This pipeline should have never been built here. We told them that from the beginning.” The Army Corps referred questions about the ruling to the Justice Department, which didn’t immediately respond to requests for comment, including on whether it intends to appeal the ruling.
Court orders Dakota crude pipeline shutdown, in win for Native American tribes in long-running saga - A federal court ruled Monday that the Dakota Access Pipeline must shut down within 30 days, by Aug. 5, according to a copy of the brief obtained by USA Today. The U.S. District Court for the District of Columbia scrapped a key permit from the Army Corps of Engineers, and ordered the pipeline to end its three-year run of delivering oil out of North Dakota's Bakken shale basin to its endpoint in Illinois. The decision marked the end of a yearslong legal battle over the Energy Transfer Partners-owned pipeline's environmental damage to the Missouri River. President Donald Trump granted the permit in 2017 over the objections of the Standing Rock Sioux Tribe and environmental activists, arguing oil spills could contaminate their water source and put their culture at risk. The court ruled the pipeline be shut down pending a full environmental review ordered previously. "The Corps had failed to produce an Environmental Impact Statement despite conditions that triggered such a requirement," the court ruling said. "Although mindful of the disruption such a shutdown will cause, the Court now concludes that the answer is yes." "Given the seriousness of the Corps' NEPA error, the impossibility of a simple fix, the fact that Dakota Access did assume much of its economic risk knowingly, and the potential harm each day the pipeline operates, the Court is forced to conclude that the flow of oil must cease," the ruling said. A spokesperson at Energy Transfer Partners told CNBC the pipeline is "the safest, most environmentally responsible method for moving North Dakota's crude oil to refining markets around the country." "Shutting down this critical piece of infrastructure would throw our country's crude supply system out of balance, negatively impact several significant industries, inflict more damage on an already struggling economy, and jeopardize our national security," the spokesperson said. "This was an ill-thought-out decision by the Court that should be quickly remedied."
Dakota Access Pipeline Decision: The Standing Rock Generation Triumphs - The story of the Dakota Access Pipeline is as damning a tale as any told about the crooked dealings of the colonists and capitalists who swindled this continent away from its First Peoples. You’ve probably heard it already, but just in case, here’s the synopsis. An oil pipeline with close financial ties to Donald Trump — he was an investor, and Kelcy Warren, the CEO of Energy Transfer Partners, the company that operates the pipeline, is a donor— was rerouted from upstream of the predominantly white city of Bismarck, North Dakota downstream through the treaty lands and drinking supply of the Standing Rock Sioux Tribe. When the tribe protested, guards sicced dogs on activists. When people saw the images and descended on the reservation from far and wide to stand with Standing Rock, North Dakota Governor Jack Dalrymple called in the National Guard. Protesters, who took to calling themselves Water Protectors, squared off with law enforcement agents better armed than many militaries: riding in armored vehicles and brandishing all manner of lethal and non-lethal weapons — including, even, a surface-to-air missile launcher. At the protest encampments, TigerSwan, a private security firm employed by Energy Transfer Partners, deployed counterinsurgency tactics brought back from the battlefields of Iraq and Afghanistan. After months, President Barack Obama intervened, ordering an environmental review. But less than a week after his inauguration, President Trump reversed the decision with one of his first actions in office. Oil began flowing through the pipeline later that year. Adam Killsalive was on the front lines of much of this fight. When his friends confirmed the news — that a judge had, in fact, ordered the Dakota Access Pipeline to empty — his heart lifted. “What we did wasn’t for nothing,” he said. “But what still bothers me is that the people who built and approved this pipeline are being shown that it’s a bad idea, but still think they’re doing right.”
Judge declines to reverse Dakota Access Pipeline shutdown -- A federal judge on Tuesday declined to reverse his decision ordering the Dakota Access Pipeline to be shut down. Obama appointee James Boasberg declined a request from Dakota Access LLC to immediately stay his Monday decision, but added that the court will “set a status hearing" on the matter when it receives certain documents from the company. Boasberg on Monday said that the pipeline had to temporarily shut down by Aug. 5 while the Army Corps of Engineers works to prepare an environmental impact statement for a rule relaxation granted to the project. In a filing after the decision, Dakota Access argued that his order should be halted because “the Court’s decision requires Dakota Access to begin shutting down a major interstate pipeline.” “As a result, Dakota Access would need to undertake a number of expensive steps before it is likely to have a ruling on the forthcoming stay motion,” the company said. However, tribes challenging the pipeline disagreed, saying in their own filing that the company did not do enough to show that the stay was unnecessary or try to work with the challengers to reach an agreement. The Standing Rock Sioux Tribe sued over the controversial pipeline, which crosses native lands and has drawn protesters from across the country, in 2016. Boasberg had previously ruled that the Army Corps of Engineers had violated environmental laws when it gave Dakota Access an easement to construct a segment of the pipeline. In ordering the shutdown, he wrote that the “seriousness of the Corps’ deficiencies outweighs the negative effects of halting the oil flow.”
North Dakota regulators say no to imposing oil production cuts - North Dakota regulators on Tuesday decided not to impose any mandatory production cuts on the oil industry, following the lead of Texas and Oklahoma, which both nixed similar proposals this year as oil prices plummeted amid the coronavirus pandemic.The unanimous decision by the North Dakota Industrial Commission to dismiss the matter comes after a lengthy hearing in May and extensive written comments, in which numerous oil producers and tribal mineral owners from the Fort Berthold Indian Reservation opposed the idea.“Let’s let the private sector hammer out some of these things and where government can assist and intervene we’ll do so, but it’s probably best if we don’t go down this road,” said Agriculture Commissioner Doug Goehring, who sits on the commission along with Gov. Doug Burgum and Attorney General Wayne Stenehjem.State regulators have instituted production cuts before, in the 1950s and 1960s during the early days of North Dakota’s oil industry. But the industry has grown much more complex since those days, State Mineral Resources Director Lynn Helms said. Nevertheless, regulators still have the authority to declare oil as a “waste” if prices get low, and in effect require that oil producers curtail their output.OPEC, for example, regularly imposes production cuts for member countries as a way to prop up oil prices when they fall.Many Bakken producers, as well as the North Dakota Petroleum Council, asked the state to let the market determine oil’s fate. The demand for oil dropped with the pandemic as people halted travel, causing oil prices to crash. Prices have increased slightly over the past few months to around $40 per barrel Tuesday, but that amount is still too low to prompt the restart of many idled oil wells and new drilling.Helms noted that even when the price of oil turned negative in futures markets one day in April, North Dakota did not receive any bills for oil produced from state-owned minerals, nor did the tax commissioner receive any filings related to the volatility, he said.
PIPELINES: Dakota Access NEPA ruling may end 'build first' strategy – This week's court-ordered shutdown of the Dakota Access pipeline prompted the company behind the project yesterday to say it wouldn't immediately comply with the court order. Experts watching the crossfire say the ruling serves as a stark warning for federal agencies.
Dakota pipeline still moving oil despite shutdown order - (AP) — The owner of the Dakota Access Pipeline continued to fill it with North Dakota crude oil on Wednesday and said it has no immediate plans to shut down the line, despite a federal judge’s order that it be stopped within 30 days for additional environmental review. Pipeline owner Energy Transfer asked the court Wednesday to halt the order, and is seeking an expedited appeal. “We are not shutting down the line immediately,” said Vicki Granado, who noted that the Texas-based company is still taking orders to move oil on the line in August. “We’re not saying we’re going to defy anything.” U.S. District Judge James Boasberg on Monday ordered the pipeline shuttered for an additional environmental assessment more than three years after it began pumping oil. “We don’t believe he has the authority to do this,” Granado said. Boasberg has given the company 30 days to empty the pipeline while the U.S. Army Corps of Engineers fulfills his demand to conduct a more extensive environmental review than the one that allowed the pipeline to start moving oil near the Standing Rock Indian Reservation. Boasberg cited the “potential harm” that the pipeline could cause before the Corps finishes its survey.
Company estimates shutting down Dakota Access Pipeline will take 3 months - The operator of the Dakota Access Pipeline estimates it will take three months to empty the pipe of oil and complete steps to preserve it for future use. The timeline of 86 to 101 days comes as part of the argument Energy Transfer made this week to a federal judge in an effort to halt an order to shut down the line by Aug. 5 -- in about 30 days -- for the duration of a lengthy environmental review. The company says the line must be filled with an inert gas, such as nitrogen, to keep the pipe from corroding if oil no longer flows through it. Energy Transfer outlined the process in a motion filed Wednesday evening in which it asked the judge to put the order on hold while it appeals the decision to a higher court. U.S. District Judge James Boasberg denied the company's request Thursday, effectively putting it in the hands of a panel of judges on the U.S. Court of Appeals for the District of Columbia Circuit. Energy Transfer indicated to the judge that it wishes to make its case to the appellate court as soon as possible, according to court documents. A company executive wrote in a court filing made public Thursday that while the pipeline operator could turn off the equipment that causes oil to flow through the line by the judge's deadline, "it is not physically possible to 'empty it of oil' in the thirty days provided by the order." The line must undergo a "purge-and-fill process" that involves draining segments of the line one at a time while the pipeline is operating to replace the oil with nitrogen, Vice President of Crude and Liquid Operations Todd Stamm wrote. An attorney for the Standing Rock Sioux Tribe and other Sioux tribes that have fought the pipeline in court for four years said in an interview Thursday that the tribes are not “overly worried” about the duration of the shutdown process. “If it takes longer than 30 days to drain the pipeline of oil, I don’t think that’s a major issue,” said Jan Hasselman, an attorney with Earthjustice who represents the tribes. Energy Transfer says the shutdown process involves “a number of expensive” steps. The company estimates it will cost $24 million to empty the line of oil and take steps to preserve the pipe. The company adds that to maintain the line, it will incur another $67.5-million expense each year the pipeline remains inoperable. Energy Transfer also discloses the revenue hit it anticipates during a shutdown, estimating it will lose out on at least $2.8 million every day the line sits idle. Hasselman acknowledged that there are costs associated with shutting down the line but said the company “has a history of wild exaggeration.”
Grim Day for Pipelines Shows They’re Almost Impossible to Build - In the span of less than 24 hours, a court ordered the Dakota Access crude oil pipeline to shut down and the developers of the Atlantic Coast gas conduit said they were canceling the project. It was a deluge of bad news for an industry that’s increasingly finding that the mega-projects of the past are no longer feasible in the face of unprecedented opposition to fossil fuels and the infrastructure that supports them.Armed with experienced lawyers and record funding, environmental groups are finding enormous success blocking key pipeline permits in court. The challenges come despite support from President Donald Trump, who so far has failed to ensure big projects like Keystone XL get built.“I would expect this to be a turning point for new investment,” said Katie Bays, co-founder of Washington-based Sandhill Strategy LLC. “There is real investor fatigue around this parade of legal and regulatory headwinds to energy projects.”Dominion Energy Inc. and its partner Duke Energy Corp. said Sunday they’ll no longer pursue their $8 billion Atlantic Coast natural gas pipeline after years of delays and ballooning costs, becoming the third such project this year to be sidelined or canceled altogether amid mounting opposition to development of oil and gas.Then on Monday, a U.S. district court ordered Energy Transfer LP’s Dakota Access crude oil pipeline to shut down by Aug. 5. It ruled that a crucial federal permit for the project fell too far short of National Environmental Policy Act requirements to allow the pipeline to continue operating while regulators conduct a broader analysis ordered in a previous decision.The keep-it-in-the-ground movement has increasingly turned its attention to the pipes, rather than the wells themselves, because they require various federal and state permits, which, for the most part, can be more easily litigated. Dakota Access entered service but remained embattled. Keystone XL still hasn’t been built. In February, Williams Cos. scrapped its Constitution natural gas pipeline after failing repeatedly to gain a water permit from New York. “The Dakota Access and Atlantic Coast pipes encapsulate the last few years of a trend we’ve watched: the dramatic expansion of using regulatory obligations to hurt infrastructure projects in the courts,”
Revealed: legislators’ pro-pipeline letters ghostwritten by fossil fuel company This March, North Dakota’s governor, Doug Burgum, sent a letter to the Federal Energy Regulatory Commission (Ferc) emphatically supporting the North Bakken Expansion Project, a 61.9-mile natural gas pipeline that has angered environmentalists and Native American nations alike. Building pipelines, the 8 March letter stated, “ensures the long-term viability of our state’s oil and gas industry, preserves the quality of our environment, and allows our state’s producers to capitalize on this valuable commodity while supplying markets in need”. Yet Burgum’s letter omitted a key detail: it was based on a template provided by Justin Dever, a senior public affairs officer for MDU Resources. The line that claimed the pipeline would bolster both the oil and gas industry and “the quality of our environment”, was lifted verbatim from the template letter sent by Dever, email correspondence obtained through a public records request shows. The letter sent by Burgum was one part of a broader ghostwriting campaign that saw several key legislators send pro-pipeline support letters ghostwritten by officials of MDU Resources – a subsidiary of the fossil fuel giant WBI Energy – to key regulatory agencies. The records, obtained by the watchdog group the Energy and Policy Institute and provided to the Guardian, show that three North Dakota state legislators and a Williams county, North Dakota, commissioner signed and mailed letters to Ferc and the US army corps of engineers that reproduced word-for-word letters sent to them by MDU Resources’ political strategists. Although the fossil fuel industry’s dominance of North Dakota politics is well-known, the records shed new light on the extent of the industry’s role in shaping what the public – and federal regulators – hear about these industries from supportive state and local officials. The North Bakken Expansion Project pipeline would deliver natural gas from Bakken shale production sites in western North Dakota to an interconnection point with the Northern Border pipeline, which extends from western Canada to a terminus near Hayden, Indiana, and is owned by TC Energy – best known as the builder of the Keystone XL tar sands pipeline. Ferc is scheduled to rule on the project this coming November, with MDU Resources aiming to put it in operation by late 2021.
US Supreme Court deals blow to Keystone oil pipeline project -— The U.S. Supreme Court handed another setback to the Keystone XL oil sands pipeline from Canada on Monday by keeping in place a lower court ruling that blocked a key environmental permit for the project. Canadian company TC Energy needs the permit to continue building the long-disputed pipeline across U.S. rivers and streams. Without it, the project that has been heavily promoted by President Donald Trump faces more delay just as work on it had finally begun this year following years of courtroom battles. Monday's Supreme Court order also put on hold an earlier court ruling out of Montana as it pertains to other oil and gas pipelines across the nation. That's a sliver of good news for an industry that just suffered two other blows — Sunday's cancellation of the $8 billion Atlantic Coast gas pipeline in the Southeast and a Monday ruling that shut down the Dakota Access oil pipeline in North Dakota. In the Keystone case, an April ruling from U.S. District Judge Brian Morris in Montana had threatened to delay not just Keystone but more than 70 pipeline projects across the U.S., and add as much as $2 billion in costs, according to industry representatives. Morris agreed with environmentalists who contended a U.S. Army Corps of Engineers construction permit program was allowing companies to skirt responsibility for damage done to water bodies. But the Trump administration and industry attorneys argued the permit, in place since the 1970s, was functioning properly when it was cancelled by Morris over concerns about endangered species being harmed during pipeline construction. Monday's one-paragraph order did not provide any rationale for the high court's decision.
Supreme Court Rejects Trump Effort to Greenlight Keystone XL Construction - The Supreme Court late Monday upheld a federal judge's rejection of a crucial permit for Keystone XL and blocked the Trump administration's attempt to greenlight construction of the 1,200-mile crude oil project, the third such blow to the fossil fuel industry in a day—coming just hours after the cancellation of the Atlantic Coast Pipeline and the court-ordered shutdown of the Dakota Access Pipeline.While the ruling was not a total victory for the climate—the high court said other pipeline projects can proceed as environmental reviews are conducted—green groups applauded the delay of Keystone XL construction as further confirmation of their view that the Canada-owned pipeline will never be built thanks to legal obstacles and fierce grassroots opposition."Three dangerous pipelines delayed within 24 hours should serve as a clear warning to any companies hoping to double down on dirty fossil fuel projects," said Greenpeace USA climate campaign director Janet Redman. "For more than a decade now, a powerful movement has been taking on reckless oil and gas pipelines and fighting to put Indigenous rights, a just economy, and our environment before oil company profits.""It is past time to leave fossil fuels in the ground," Redman added, "and begin a just transition to a Green New Deal and 100 percent renewable energy." The Supreme Court's decision upheld a Montana judge's April ruling that the Trump administration violated the Endangered Species Act by issuing a water-crossing permit for Keystone XL without fully assessing the damage the pipeline could inflict on wildlife along its planned route from Alberta, Canada to Nebraska.As Bloomberg reported, the Supreme Court's ruling "means almost all Keystone XL construction is delayed until 2021."Kendall Mackey, Keep It in the Ground campaigner with 350.org, celebrated the high court's decision to stall construction of Keystone XL "despite the Trump administration's desperate pleas and corporate pandering.""This pipeline continues to be an epic boondoggle for Big Oil," said Mackey. "Tribal nations, farmers and ranchers, and allies across the country in solidarity with resistance to Keystone XL are not going anywhere—we will continue fighting to protect our climate from fossil fuel corporations at every turn."
Rulings on KXL Permit Cloud Other Oil and Gas Pipeline Projects -The demand destruction caused by COVID-19 hasn’t only hurt producers and refiners; it’s also slowed the development of a number of planned midstream projects. In fact, the only multibillion-dollar crude-related project to reach a final investment decision (FID) during the pandemic is TC Energy’s Keystone XL, which in late March won financial backing from Alberta’s provincial government. But Keystone XL soon hit another snag, this time in the form of U.S. district and appellate court rulings that vacated the project’s Nationwide Permit 12 for construction in and around hundreds of streams and wetlands along the U.S. portion of the pipeline’s route in the U.S. More important, the courts also put on ice — at least for now — the use of the general water-crossing permit for other new oil and natural gas pipelines as well. As we discuss in today’s blog, that could result in delays and legal challenges to dozens of projects that midstreamers and their counterparties have been counting on. For midstream companies, the process of advancing a pipeline, an export terminal, or another major project is often fraught with challenges. For one, there’s the competition among midstreamers to line up the long-term commitments generally needed to secure financing — a factor that has always been a hurdle for large new midstream projects. Then there’s the matter of locking down the various regulatory approvals and permits that the project will need — again, always a stumbling block that has only increased in significance over the years. Today, environmental, landowner, and stakeholder challenges to pipeline projects, even from the states they traverse, have become very difficult. For example, Williams has failed to convince New York regulators that its Constitution Pipeline project passes environmental muster. And even when midstream developers do get the approvals and permits they need from administrative agencies, there’s always the very real possibility that there will be court challenges that could drag on for years.
Setbacks hamper pipeline industry backed by Trump (AP) — After a U.S. energy boom and strong backing from President Donald Trump propelled a major expansion of the nation’s sprawling oil and gas pipeline network, mounting political pressures and legal setbacks have put its future growth in doubt even as the pandemic saps demand for fuel. Two major oil pipeline projects suffered courtroom blows this week: The U.S. Supreme Court upheld the cancellation of a key permit for the Keystone XL oil sands pipeline from Canada, and a federal judge ordered the Dakota Access Pipeline shut down more than three years after it started moving oil across the U.S. Northern Plains. The rulings came a day after utilities cancelled an $8 billion natural gas pipeline through West Virginia, Virginia and North Carolina amid mounting delays and bitter opposition from environmentalists. Industry representatives took consolation from the Supreme Court’s decision that the permit it denied for Keystone XL can once again be used for other projects. That would allow more than 70 pipeline projects that faced potentially billions of dollars of delays to proceed. But that outcome may be “too little too late” for some companies already making changes to their plans, said Ben Cowan, who represents pipeline companies as an attorney with Locke Lord LLP. The recent blows against the industry have emboldened environmentalists and Native American activists, who routinely oppose fossil fuel pipelines because of potential spills and their contribution to climate change. Montana farmer Dena Hoff, a Keystone opponent, witnessed the environmental damage that pipelines can cause in 2015 when a pipeline broke beneath the Yellowstone river adjacent to her farm and spilled 31,000 gallons (117,000 liters) of crude that fouled downstream water supplies serving 6,000 people. She said the years of protests against Keystone and other lines have made the public listen. “There’s more to this argument than jobs and tax dollars,” Hoff said Thursday. Industry executives acknowledged pipeline opponents have found some success in the courts, but insist that continued demand for oil and gas means new lines will be needed. “We will meet them at the courthouse and fight these battles out legally at every opportunity,” said American Petroleum Institute President Mike Sommers. “The activist community doesn’t want to build anything, anywhere.”
Is This the End of Oil and Gas Pipelines? - The New York Times - They are among the nation’s most significant infrastructure projects: More than 9,000 miles of oil and gas pipelines in the United States are currently being built or expanded, and another 12,500 miles have been approved or announced — together, almost enough to circle the Earth.Between 2008 and 2019, oil production in the United States more than doubled and gas production increased by more than 60 percent as a result of new drilling techniques known as hydraulic fracturing, or fracking. Electric utilities have built hundreds of new natural gas power plants, and the United States has transformed itself from a gas importer to an energy superpower looking to build export terminals to ship oil and gas overseas. Now, however, pipeline projects are being challenged as never before as protests spread, economics shift, environmentalists mount increasingly sophisticated legal attacks and more states seek to reduce their use of fossil fuels to address climate change.On Monday, a federal judge ruled that the Dakota Access Pipeline, an oil route from North Dakota to Illinois that has triggered intense protests from Native American groups, must shut down pending a new environmental review. That same day, the Supreme Court rejected a request by the Trump administration to allow construction of the long-delayed Keystone XL oil pipeline, which would carry crude from Canada to Nebraska and has faced challenges by environmentalists for nearly a decade. The day before, two of the nation’s largest utilities announced they had canceled the Atlantic Coast Pipeline, which would have transported natural gas across the Appalachian Trail and into Virginia and North Carolina, after environmental lawsuits and delays had increased the estimated price tag of the project to $8 billion from $5 billion. And earlier this year, New York State, which is aiming to drastically reduce its greenhouse gas emissions,blocked two different proposed natural gas lines into the state by withholding water permits. The roughly 3,000 miles of affected pipelines represent just a fraction of the planned build-out nationwide. Still, the setbacks underscore the increasing obstacles that pipeline construction faces, particularly in regions like the Northeast where local governments have pushed for a quicker transition to renewable energy. Many of the biggest remaining pipeline projects are in fossil-fuel-friendly states along the Gulf Coast, and even a few there — like the Permian Highway Pipeline in Texas — are now facing backlash.“You cannot build anything big in energy infrastructure in the United States outside of specific areas like Texas and Louisiana, and you’re not even safe in those jurisdictions,” said Brandon Barnes, a senior litigation analyst with Bloomberg Intelligence. The growing opposition represents a break from the past decade, when energy companies laid down tens of thousands of miles of new pipelines to transport oil and gas from newly accessible shale formations in North Dakota, Texas and the Appalachian region.
Microsoft, striving for zero CO2, steers millions into oil -- Friday, July 10, 2020 -- Microsoft Corp. made a bold promise earlier this year when the technology giant vowed to remove more carbon dioxide from the atmosphere than it emits within a decade. That climate commitment, however, doesn't extend to the company's retirement program, which has pumped hundreds of millions of dollars into the fossil fuel industry. A group of Microsoft employees has been pushing the company to change that. The internal effort, being reported here for the first time, includes more than 1,200 employees who want Microsoft executives to create an investment fund focused on companies with strong environmental, social and governance records. That's hard to do, and the Trump administration is trying to make it even harder. But Microsoft risks undermining its aggressive climate goals if it doesn't try, according to employees involved in the initiative. "It's just such an obvious blind spot in its aspirations to go carbon negative," said an engineer at Microsoft who asked to remain anonymous to avoid putting his job at risk. "The inconsistencies are brought into sharp relief by the legitimately impressive commitments to improving our carbon footprint." The company is only "willing to throw its weight around where it doesn't interfere with their customers, like the oil and gas companies," the engineer said. Earlier this year, the environmental advocacy group Greenpeace determined that the Redmond, Wash.-based company was likely "the biggest tech partner to the oil and gas industry." Microsoft has cloud computing and data analysis contracts with fossil fuel producers such as Chevron Corp., a subsidiary of Exxon Mobil Corp. and several oil field services firms (Greenwire, May 19). Microsoft's $27.5 billion retirement program — one of the nation's largest by value — is heavily invested in fossil fuels. At the end of last year, its 401(k) plan owned stock worth more than $84 million in oil, gas and coal companies or businesses that rely on them, according to an E&E News analysis of holdings disclosed last month.
Alaska at center of Trump administration’s drive to drill public lands during pandemic - Traditional subsistence hunting has always been a pillar of life along Alaska's remote North Slope. Dependable migrations of bowhead whales, Arctic grayling fish, and the country's last remaining caribou herds have provided for generations of indigenous Alaskans who make their home on America's northernmost edge."We depend on a clean environment to feed our families during the year," Rosemary Ahtuangaruak, a 66-year-old resident of the village of Nuiqsut, told ABC News. The grandmother of twenty says she owns a harpoon and still participates in the whale hunt on Cross Island each fall.Rosemary's village is among the few largely indigenous communities scattered throughout the region's vast Arctic oil fields. A small grid of homes located at the limits of most modern transportation routes with just one grocery store, more than three-quarters of the Inupiat Eskimo village relies on traditional subsistence hunting as their primary source of food. With the arrival of COVID-19, residents of Nuiqsut say it's been decades since their ancestral ways have been this important. The global pandemic forced roads to close and the region's only airline to declare bankruptcy, cutting off an already isolated village from outside supply lines. With the nearest hospital hundreds of miles away and the virus pushing northward, some fear the village -- with a population of just 500 -- would be wiped off the map if community spread took hold."It's life or death," Siqiniq Maupin, a community advocate based in Fairbanks whose family lives in Nuiqsut, told ABC News. "We have people that need to hunt and be out on the land right now because we just don't know what's going to happen this winter."But in the midst of the crisis, as the tribal government frantically moved to obtain medical supplies and shut down non-essential services, residents learned their community was being asked to confront yet another challenge -- the federal government's controversial plan to massively expand oil and gas drilling in the area. In April, the Bureau of Land Management -- the agency within the United States Department of the Interior responsible for the administration of public lands -- moved forward with "virtual public comment hearings" on revised plans for the controversial ConocoPhillips Willow Oil Project.The Willow project aims to add a gravel mine and up to 250 oil and gas wells to the existing energy extraction sites already surrounding Nuiqsut on nearly all sides. First proposed in 2018, the project has long beenopposed by some tribal leaders and environmental groups for its potential impacts on wildlife and public health.
Ninth Circuit Greenlights Drilling in Alaska Reserve — Drilling can proceed in a sensitive Alaskan reserve without an update to the government’s 2012 assessment of whether the oil and gas development would speed up climate change, and despite the fact that the assessment was completed four years before the oil at issue was discovered, the Ninth Circuit ruled Thursday. The National Petroleum Reserve-Alaska is 23.4 million acres of pristine wilderness named as a source of oil for the U.S. Navy in 1923. The vast area is important habitat for millions of migratory birds, marine mammals like beluga whales and home to the Teshekpuk Lake caribou herd — critical for Nuiqsut subsistence hunters. Congress handed management of the reserve to the Department of the Interior in 1976 with the mandate to provide “maximum protection” to the area’s fish and wildlife habitat. The BLM’s own analysis found that developing the project would be bad for subsistence hunters in the village of Nuiqsut. “The BLM expects that limitations to subsistence access and the reduced resource availability attributable to development of the project would result in an extensive interference with Nuiqsut hunter access,” the agency’s draft analysis states. ConocoPhillips Alaska is currently running one drill site in the reserve, is constructing a second site and has proposed a third. Environmental groups had claimed the new discovery meant the government had to perform “site-specific analysis” to consider the harm that would be caused by that specific project. But U.S. District Judge Sharon L. Gleason, a Barack Obama appointee, found the government couldn’t have known which parts of the vast area they opened for drilling would actually be drilled, so it’s more generalized assessment was sufficient. The Ninth Circuit affirmed that ruling on Thursday, finding that the 2012 document had contemplated future oil and gas leases, and the judges said that was enough. Writing for the panel, U.S. Circuit Judge Milan D. Smith Jr. found that previous case law allows the government to prepare just one document as both an overarching management plan and as a detailed, site-specific consideration of individual projects within a large reserve — even in cases like this one, where the government can’t back out once oil companies lease sites. Here, the BLM’s 2017 lease sale “irretrievably committed” the agency to allowing drilling in the sites it leased. “We disagree with plaintiffs’ suggestion that a programmatic EIS prepared for a broad-scale land use plan categorically cannot provide the site-specific analysis required for irretrievable commitments of resources,” Smith wrote. But Suzanne Bostrom, arguing before the panel in February on behalf of Trustees of Alaska, said that approach equaled a foregone conclusion — one where specific oil and gas leases and their environmental consequences were no longer optional. “The problem is here is that when the agency is getting down the line to deciding development decisions, it’s saying that it has already tied its hands,” Bostrom said at the hearing in February. “It’s saying that it can no longer adopt the ‘no action’ alternative.”
Polar Bear Moms Stick to Their Dens Even Faced With Life-Threatening Dangers Like Oil Exploration --As a warming climate melts sea ice in the Arctic, female polar bears have increasingly been forced to make their dens on land. But a new study has found that mother bears are unlikely to abandon their dens when they are disturbed—for example, by fossil fuel companies' exploration for new sources of oil—even if the disturbance is life-threatening.As the Trump administration works toward allowing oil drilling in the Coastal Plain of the Arctic National Wildlife Refuge (ANWR), which counts polar bears among the many species that live there, that reluctance to flee could pose a danger to the bears. Scientists have found signs that polar bears are at risk from climate change, including changes in reproductive rates, physical condition and size, some of which have been linked to sea ice loss. Published Tuesday in the journal Arctic, the study found that a one-mile buffer to protect polar bear dens from industrial activity is adequate to keep pregnant bears and new mothers safe—but, according to the study's authors, that's only if those dens can be located.While the oil and gas industry's attempts to identify polar bear dens before exploring for fossil fuel resources, the technology it uses to detect the dens—a type of thermal imaging camera called forward looking infrared—misses about 55 percent of the enclosures."It presents this problem where if [the oil and gas industry] can't locate all these dens and they're just doing business as usual up there, there's a decent chance that at some point they're going to kill bears with their cubs or make the mom run off and leave her cubs," said lead author Wesley Larson, who was a graduate student at Brigham Young University during the study.
Who’s Insuring the Trans Mountain Pipeline? - Rainforest Action Network recently uncovered a document that lists the 11 companies that are currently insuring the controversial Trans Mountain tar sands pipeline in Canada. These global insurance giants are providing more than USD$500 million in coverage for the massive risks of the existing Trans Mountain pipeline, and they're also lined up to cover the expansion project.The existing Trans Mountain pipeline is a major environmental and public health hazard with a long history of disastrous spills. Earlier this month, 50,000 gallons of crude oil spilled from a pump station located above an aquifer that supplies the Sumas First Nation with drinking water.The Trans Mountain Expansion Project would multiply these risks tremendously. Though it is officially called an "expansion," this is no minor renovation. The Canadian government, which owns Trans Mountain, is attempting to build a parallel pipeline that would ship more than 890,000 barrels per year of highly-polluting tar sands crude oil to the coast of British Columbia.For more than a decade, the expansion of Trans Mountain has been delayed in the face of powerful, Indigenous-led resistance on the ground and in the courts. It has not secured the Free, Prior, and Informed Consent of Indigenous communities that are directly in the pipeline's route. Right now, the Tsleil-Waututh Nation, Squamish Nation, and Coldwater Indian Band are actively engaged in legal challenges on the project, and land defenders are asserting their rights and title along the route. In the midst of the COVID-19 crisis, the government and corporations are doubling down on their destructive plans to build new fossil fuel projects. Bulldozers that are laying the initial pipe on Trans Mountain have not quieted, even though this construction poses major risks to Indigenous and rural communities in its path, as well as workers that are housed together in close quarters. In Alberta, viral outbreaks have been linked to man camps at tar sands extraction sites, and yet the province's energy minister proclaimed that now is a great time to construct a pipeline, due to social distancing protocols that limit public protest.
Oil spill in Khimki water basin to be cleaned up by end of week — water regulator -TASS . Consequences of the oil spill in the Khimki water basin in the Moscow Region are planned to be eliminated by July 12, press service of the Federal Agency for Water Resources told TASS on Monday. "Head of the Moscow-Oka Basin Water Department Vakhtang Astakhov reported to head of the Federal Agency for Water Resources Dmitry Kirillov at the working meeting that the oil spill in the Butakovsky Bay of the Khimki water basin will be cleaned up by July 12, 2020," the press service said. Activities are at the closing phase now. The pollution source was detected and plugged back.
Norilsk Nickel fined US$2.1bn for Arctic oil spill - NORILSK Nickel has been fined US$2.1bn by Russian environmental watchdog Rosprirodnadzor for the damage done to waterways and soil following an oil spill in May.Around 21,000 t of diesel leaked into the Ambarnaya and Daldykan rivers near Norilsk, Russia, on 29 May following the collapse of a storage tank at a power plant. It is believed that melting permafrost is the most likely cause of the collapse of the tank due to abnormally warm conditions in the Arctic.Norilsk Nickel has been engaged in the cleanup, and reported that as of 6 July, 33,237 m3 of contaminated water and 185,102 t of contaminated soil had been removed in the area. Sergey Dyachenko, First Vice President and Chief Operating Officer, said: “We are working as part of an interregional commission set up by the government and staying in close touch with Rosprirodnadzor to develop and implement relevant site rehabilitation plans.”However, Rosprirodnadzor has fined the company almost 148bn roubles (US$2.1bn) as “voluntary compensation” for the damages. According to The Financial Times, the fine is equivalent to around a third of Norilsk Nickel’s net profit for 2019. According to The Financial Times, Dmitry Kobylkin, Ecology Minister, said: “The scale of the damage to Arctic waterways is unprecedented. The fine is proportional to it. If you recall the Exxon Valdez disaster off the coast of Alaska, the fine for the damage was more than US$5bn.”Norilsk Nickel contests the severity of the fine, saying that the figure had been calculated at the assumption of maximum damage and didn’t take into account the cleanup already occurring. The company also emphasised its commitment to fully cover the environmental cost. The spill is reported by local media to have reached Lake Pyasino, which is fed by the Ambarnaya and Daldykan rivers, after booms installed to contain the spill were broken by drifting ice. Greenpeace Russia has raised concerns that the true scale of the disaster is being covered up, after samples that it took from the Pyasina river – which flows out of the lake – to determine if the diesel will reach the Arctic ocean were confiscated before they could be tested by an independent laboratory.Dmitry Groshkov, Director of WWF-Russia, wrote an open letter to Vladimir Potanin, President of Norilsk Nickel. “We expect a maximally open position and informing both about the causes and consequences of the accident, and about the measures taken. In the first days after the accident, we observed an attempt to hide what had happened. WWF-Russia experts, having received information about the scale of the accident from social networks, had to intervene and inform the Marine Rescue Service.”“Such secrecy, as well as the provision of false information is unacceptable. Any delay in responding to a spill leads to significantly greater damage and complicates the management of the consequences. We suggest that you develop corporate regulations to inform all interested parties about incidents that have occurred.”
Russian mining giant contests fine for massive Arctic spill - Moscow: Mining giant Norilsk Nickel on Wednesdy said it was contesting a fine imposed by the Russian authorites over a massive oil spill in the Arctic that sparked a state of emergency.Norilsk Nickel "disputes the amount of environmental damage caused by the diesel leak" calculated by the Russian environmental watchdog, Rosprirodnadzor, the company said in a statement. The watchdog this week requested a subsidiary of Norilsk Nickel pay "voluntary compensation" totaling 147.8 billion rubles ($2.05 billion), or one third of the group's net profit last year. Norilsk Nickel reiterated, however, that it would financially support "the consequences of the accident at its own expense".Russia's Environment Minister Dmitri Kobylkin said the company had "every right" to contest the fine in court.But "we saw the consequences of the accident and saw the damage done there", he added. Kobylkin also said the company was liable for environmental damage, saying those responsibile are "required to pay full compensation". "Damage to the environment and compensation for the consequences of the accident are two different things," he added. President Vladimir Putin declared a state of emergency after 21,000 tonnes of diesel leaked from a fuel storage tank at one of the company's subsidiary plants near the Arctic city of Norilsk in late May.
The fuel seeped into the soil and dyed nearby waterways bright red in a spill that was visible from space. A massive clean up effort involved trapping floating diesel with booms on the water surface to prevent it from flowing into crucial waterways and fresh water lakes.Russia's natural resources minister said the fine reflected the huge damages caused by the spill."The scale of the damage to Arctic water resources is unprecedented," Kobylkin said earlier this week. He drew comparisons to one of the worst oil spills in US history -- the 1989 Exxon Valdez oil spill off Alaska which, he pointed out, cost Exxon Mobil more than $5 billion in punitive damages. Putin has said he expected Norilsk Nickel to fully restore the environment.Russia's richest man Vladimir Potanin who owns the company earlier estimated that the clean-up would cost about 10 billion rubles, on top of any fines, and vowed to spend "whatever is needed".
Hundreds evacuated after oil spill in central Philippines(AP) More than 400 people have been evacuated from a coastal village in the central Philippines after some 250,000 liters (66,000 gallons) of bunker fuel spilled from a power-generating barge into the sea, an official said Monday. “The stench was so bad we have to move people away to two schools and last night there was a request for a third evacuation site,” Iloilo City Mayor Jerry Trenas told the Associated Press by telephone. The spill began Friday when an accidental explosion on the barge blasted a hole in it hull. There were no reported injuries. The accident has not affected the power supply to the commercial city of about half a million people because it has other power sources, Trenas said. The coast guard said it was investigating and charges may be filed against the owners of the barge if needed. (AP) RS RS
Nearly 48,000 liters of oil spill into Iloilo City waters after power barge explosion — Around 48,000 liters of oil spilled into waters off Iloilo City on Friday after an explosion at a power barge, local officials said. Authorities estimated an area of 1,200 square meters was affected by the spillage. The Coast Guard also pegged that about 40,000 liters were spilled. Courtesy: Leo Solinap "Current efforts involve scooping and skimming of spilt oil in order to contain the spill led by the [Philippine Coast Guard]," said the city's city's emergency operation center. According to reports from the Coast Guard Saturday, one of the tanks exploded due to hot work as acetylene was used to open rusted compartments. The explosion took place at 2:24 p.m. at AC Energy's Power Barge 102 in Lapuz district's Barrio Obrero, officials reported. The fire was declared out by 3 p.m. The barge's estimated capacity is 200,000 liters. AC Energy said that the oil spill was initially blocked by a structure surrounding the barge but high waves caused it to spill out. The PCG added that approximately one hectare of mangrove area has become a “proximate sensitive area” to the oil spill, as revealed by environment scanning. The Marine Environment Protection Unit of Western Visayas has already installed five segments of oil spill booms to the water ingress point to prevent damage to the mangrove, the PCG said.
Coast Guard to probe Iloilo City oil spill, may file charges vs. power barge owner ‘if warranted’ — The Philippine Coast Guard said Sunday it will investigate the oil spill incident in Iloilo City, adding it will look into possible legal action against the owner of the power barge if necessary. In a statement, PCG said its legal affairs team will be flying to Iloilo to assist in the ongoing probe on Friday’s incident, wherein over 40,000 liters of oil spilled into the waters following a barge explosion in Lapuz district. “The PCG will file criminal charges against the owner of Power Barge Number 102, if warranted,” it said in a statement. PCG Marine Environmental Command Rear Admiral Art Abu, however, told CNN Philippines that the agency will still have to study possible complaints that may be filed against the company, with officials still awaiting the final results of the investigation. “Pinag-aaralan pa dahil (We’re still studying it because) right now we are busy on containing the oil,” Abu said in an interview with Newsroom Weekend. Officials from the Coast Guard as well as personnel and management from the AC Energy Corporation— owner of the power barge— have started a coastal cleanup in the area to contain further damage brought by the oil spill pegged at around 48,000 liters. Authorities have likewise placed multilayered spill booms from the tank to prevent the further spread of oil in the waters. Initial reports from the PCG said one of the tanks exploded due to hot work as acetylene was used to open rusted compartments. AC Energy meanwhile said that the oil spill was initially blocked by a structure surrounding the barge but high waves caused it to spill out. Meanwhile, PCG reported that around 100 families composed of over 300 individuals living in the vicinity were affected by the incident. They were evacuated to a nearby school, it added.
Iloilo oil spill cleanup likely to last for 15 days says AC Energy - AC Energy said Monday initial investigations showed that the Iloilo oil spill from its power barge was likely due to an explosion in its fuel oil storage that raptured the tank. Cleanup efforts will likely last for 15 days. The firm's power barge 102 in Barrio Obrero, Iloilo City discharged fuel at around 3 p.m. on July 3, AC Energy said in a disclosure to the stock exchange. The leakage was contained at 10 p.m. the same day, it said. "The root cause is yet to be determined, but initial findings reveal that the discharge is attributable to ignition of fuel oil in storage which ruptured the barge’s fuel tank," the Ayala-led unit said. The company has tapped Harbor Star, a maritime service provider, to finish the cleanup for both the waters and the coastline, AC Energy said. Cleanup is estimated to last up to 15 days, it said. Some 120 households have been relocated while the cleanup is ongoing. AC Energy said it would continue to coordinate with officials in the containment efforts. It will also tap third-party experts to determine the root cause of the explosion, it added.
Guimaras govt demands total cleanup of oil spill—The Guimaras provincial government has called on the operator of a damaged power barge that triggered an oil spill to ensure the swift and complete cleanup of areas on the island that have been dirtied by bunker fuel. “I would like to be clear that there should be no bunker fuel left in Guimaras,” said Gov. Samuel Gumarin in a statement. He said the Ayala-owned AC Power Corp., which operates the power barge, has the responsibility to clean up the bunker fuel that leaked from Power Barge 102 docked off the coast of Iloilo City last July 3. As of July 6, black oil sludge had reached at least 23 coastal villages in the towns of Buenavista and Jordan and Guimaras province. Senior Supt. Jerry Candido, officer-in-charge of the Bureau of Fire Protection (BFP) in Western Visayas, said investigators have “established that there was negligence” leading to the explosion on the barge. The BFP is preparing to file a complaint for reckless imprudence resulting in damage to property and reckless imprudence resulting in slight physical injuries in relation to the explosion and the injury it caused one of the workers on the barge. Candido, citing investigation results, said workers were using acetylene torch to cut bolts and nuts on an air vent as part of maintenance work on Power Barge 102. The air vent, which was outside the hull of the power barge, leads directly to one of the tanks that store bunker fuel. Investigators said they believed the cutting work, using acetylene torches, triggered the explosion that tore five holes on the hull of the barge including a hole less than a meter in diameter on the side where the bunker fuel leaked. “It should have been common sense that work using open fire should not have been done near the fuel tank,” Candido told the Inquirer.
CEO, directors held for Visakhapatnam gas leak - Police on Tuesday night arrested the CEO and two directors besides eight other officials of LG Polymers in connection with the styrene vapour leak at its plant in Visakhapatnam on May 7, which killed 12 people. Visakhapatnam commissioner of police R.K. Meena confirmed the arrests to PTI. The arrests were made a day after the high-powered committee, appointed by the state government to probe the vapour leak, submitted its report to chief minister Y.S. Jagan Mohan Reddy, which blamed multiple inadequacies on the part of LG and slackness of management over poor safety protocols and breakdown of emergency response procedures in the plant.
Lost in Oil Rally: $2 Trillion-a-Year Refining Industry Pain – Crude oil is the world’s most important commodity, but it’s worthless without a refinery turning it into the products that people actually use: gasoline, diesel, jet-fuel and petrochemicals for plastics. And the world’s refining industry today is in pain like never before. “Refining margins are absolutely catastrophic,” Patrick Pouyanne, the head of Europe’s top oil refining group Total SA, told investors last month, echoing a widely held view among executives, traders and analysts. What happens to the oil refining industry at this juncture will have ripple effects across the rest of the energy industry. The multi-billion-dollar plants employ thousands of people and a wave of closures and bankruptcies looms. “We believe we are entering into an ‘age of consolidation’ for the refining industry,” said Nikhil Bhandari, refining analyst at Goldman Sachs Inc. The top names of the industry, which collectively processed well over $2 trillion worth of oil last year, are giants such as Exxon Mobil Corp. and Royal Dutch Shell Plc. There are also Asian behemoths like Sinopec of China and Indian Oil Corp., as well as large independents like Marathon Petroleum Corp. and Valero Energy Corp. with their ubiquitous fuel stations. The problem for the refiners is that what’s killing them is the medicine that’s saving the wider petroleum industry. When U.S. President Donald Trump engineered record oil production cuts between Saudi Arabia, Russia and the rest of the OPEC+ alliance in April, he may have saved the U.S. shale industry in Texas, Oklahoma and North Dakota, but he squeezed refiners. A refinery’s economics are ultimately simple: it thrives on the price difference between crude oil and fuels like gasoline, earning a profit that’s known in the industry as a cracking margin. . But with demand still in the doldrums, gasoline and other refined products prices haven’t recovered as strongly, hurting the refiners. The industry’s most rudimentary measure of refining profit, known as a 3-2-1 crack spread (it assumes three barrels of crude makes two of gasoline and one of diesel-like fuels), has slumped to its lowest level for the time of the year since 2010.
IEA raises 2020 oil demand forecast but warns COVID-19 clouds outlook - (Reuters) - The International Energy Agency (IEA) bumped up its 2020 oil demand forecast on Friday but warned that the spread of COVID-19 posed a risk to the outlook. The Paris-based IEA raised its forecast to 92.1 million barrels per day (bpd), up 400,000 bpd from its outlook last month, citing a smaller-than-expected second-quarter decline. "While the oil market has undoubtedly made progress ... the large, and in some countries, accelerating number of COVID-19 cases is a disturbing reminder that the pandemic is not under control and the risk to our market outlook is almost certainly to the downside," the IEA said in its monthly report. (Graphic: Lockdown versus new cases, here) The easing of lockdown measures in many countries caused a strong rebound to fuel deliveries in May, June and likely also July, the IEA said. But oil refining activity in 2020 is set to fall by more than the IEA anticipated last month and to grow less in 2021, it said. Demand in 2021 will likely be 2.6 million bpd below 2019 levels, with kerosene and jet fuel due to a drop in air travel accounting for three-quarters of the shortfall. (Graphic: Oil demand change by product, here) "For refiners, any benefit from improving demand is likely to be offset by expectations of much tighter feedstock markets ahead. Refining margins will also be challenged by a major product stocks overhang from the very weak second quarter of 2020," the IEA said. (Graphic: Global oil supply and demand, here) On the supply front, the IEA said the Organization of the Petroleum Exporting Countries and other producers including Russia, a grouping known as OPEC+, had shown 108% compliance with their pact to rein in output. Market driven cuts had also affected other producers, especially the United States, though U.S. supply was expected to slowly recover in the second half of 2020 while the lifting of force majeure on exports of Libyan crude could add another 900,000 bpd to global markets by the end of the year.
Angola resists OPEC pressure to comply fully with oil cuts- sources - (Reuters) - Angola is resisting pressure by OPEC for a steeper oil output cut to comply fully with record supply curbs, OPEC and industry sources said. The Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, have been cutting oil output since May by a record 9.7 million barrels per day after the coronavirus crisis destroyed a third of global demand. After July, the cuts are due to taper to 7.7 million bpd until December. Saudi Arabia, which chairs a panel that monitors adherence with the oil cuts, has been heading efforts to press laggards such as Iraq, Kazakhstan, Nigeria and Angola to improve compliance with the reductions and compensate for May overproduction in July-September. “Angola is saying they would not compensate for its overproduction in July-September like the rest of the countries but would be able to compensate only in October-December,” said one OPEC source. “We are still trying to convince them.” Another OPEC source said that Nigeria and Algeria are now reaching out to Angola to convince it to execute the agreement. “The whole (OPEC+) group is adding pressure on Angola and others who are not complying to adhere to what they have agreed to,” said the source. Angola’s Ministry of Mineral Resources and Petroleum and state oil company Sonangol did not respond to Reuters requests for comment. In May, Angola pumped 1.28 million bpd, according to OPEC data, or 100,000 bpd more than its target. It trimmed production to 1.24 million bpd in June, based on a Reuters survey, 60,000 bpd above its target. “Angola argues they did cut quickly despite the pain and difficulty it put them in with regard to long-term supply contracts,” said one source familiar with Angolan oil plans.
Yemeni government calls on immediate UN Intervention for Derelict Oil Tanker - Yemen’s government has urged the UN Security Council to intervene to prevent a rundown oil tanker, Safer, from leaking more than a million barrels of oil into the Red Sea. Foreign Minister Mohammed al-Hadhrami called on the UNSC to hold a special session following the Iran-backed Houthi militia’s refusal to allow UN experts to conduct their five-year maintenance on the ship. Al-Hadhrami, in a letter, urged the Council to undertake its responsibilities to avoid an environmental catastrophe. An oil leak from the Safer’s tanks would be “one of the biggest environmental disasters in the region and the world,” he told Christoph Heusgen, Germany’s Permanent Representative to the UN and President of UNSC. The Houthis have rejected all independent international requests to board the vessel, including the latest one from UN Yemen envoy Martin Griffiths, who demanded access for an international technical team. Al-Hadhrami, in his letter, briefed the UNSC about all government and international efforts, including the government approving a separate proposal to resolve the Safer oil tanker crisis presented recently by Griffiths. Houthis have rejected the proposal. Al-Hadhrami quoted previous government letters and statements to the UN which showcase the oil tanker’s deteriorating situation. The tanker, which has been floating near the port city of Hodeidah since 1989 following an oil spill, is at risk of exploding and causing a massive environmental disaster. Safer – often described by officials as a ticking time bomb – has not docked since 2014 and is currently in waters controlled by the Houthis. The minister called on the Council to address the situation immediately and separate the issue from Yemen’s ongoing crisis. An environmental catastrophe would pose a more immediate threat to Yemen and the region, he added.
Oil Went Below $0. Some Think It Will Rebound to $150 One Day. – WSJ Oil markets began the 2020s by nosediving below $0 a barrel for the first time. Investors and analysts are now trying to work out what the rest of the decade holds in store.Some think the bust will set in motion a boom, predicting that investment in oil-and-gas production will dry up and propel crude prices back above $100 a barrel.“That funding pressure is going to be massive. It’s going to be really difficult for some of the producers to produce,” said Trevor Woods, chief investment officer of Ohio-based hedge fund Northern Trace Capital. “We could hit $150 pretty easily by 2025.”Others say the pandemic will sap fuel demand after the threat of contracting coronavirus has faded, cementing an era of cheap oil.The debate over the long-term direction of the world’s most important energy source is thorny. Oil markets have dozens of moving parts, making them hard to forecast.In the long run, most analysts agree prices should gravitate to a level at which energy producers profit from making just enough crude to match demand. Covid-19 has made that calculation more complex. Investors are unsure whether the pandemic will permanently alter transport and consumption patterns, or expedite the move toward cleaner energy sources.Oil prices staged a quick recovery after turning negative in late April, boosted by a pickup in China’s economy as well as output cuts by the Organization of the Petroleum Exporting Countries, Russia and producers in North America. The rally has stalled since new coronavirus cases threatened to hit fuel demand in Southern and Western U.S. states. West Texas Intermediate futures, the benchmark in U.S. oil markets, have traded at around $40 a barrel since late June.The case for soaring prices rests on asset managers and banks declining to bankroll necessary investments in new and existing oil wells, leading to a shortfall of crude.Oil companies have already slashed spending plans, seeking to shore up their balance sheets in response to the drop in revenue caused by the pandemic. Exxon Mobil Corp., which last weekwarned of big losses in its second-quarter earnings, has said it plans to reduce capital spending in 2020 by $10 billion, or 30%.European majors are also responding to pressure from investors to reduce their carbon footprint. BP PLC cut its investment plans by 25% to $12 billion and is reviewing whether to develop oil-and-gas fields it hasn’t fully tapped.
Oil prices mixed as coronavirus spike casts shadow over U.S. demand - Oil prices offered up a mixed market snapshot on Monday, with Brent crude edging higher, supported by tighter supplies, while U.S. benchmark WTI futures dropped on concern that a spike in coronavirus cases could curb oil demand in the United States. Brent crude rose 18 cents, or 0.4%, to $42.98 a barrel by 0252 GMT after a 4.3% gain last week, while U.S. West Texas Intermediate crude was at $40.42, down 23 cents, or 0.6%, from its previous settlement on Thursday. U.S. markets were closed on Friday to mark July 4 holiday celebrations. Amid rising numbers of coronavirus cases in 39 U.S. states, a Reuters tally showed that in the first four days of July alone, 15 states reported record increases in new COVID-19 infections with parties over the holiday weekend possibly leading to another spike. "There will be some kind of decline in demand if cases were to increase as people will stay at home," said Howie Lee, an economist at Singapore's OCBC Bank. "The pace of U.S. demand recovery will not be as steep as expected." For now, analysts at ING bank said data for several cities in affected states show no significant reduction in road traffic week-on-week. "We will get a better idea of what impact tighter restrictions in several states have had on gasoline demand with the EIA (Energy Information Administration) report this week," ING said in a note. The implied volatility for Brent crude has dropped to the lowest since prices started collapsing in March as some in the market remain focused on tightening supplies as production by the Organization of the Petroleum Exporting Countries (OPEC) fell to its lowest in decades with Russian output dropped to near targeted cuts. OPEC and allies including Russia, collectively known as OPEC+, have pledged to slash production by a record 9.7 million barrels per day (bpd) for a third month in July. After July, the cuts are due to taper to 7.7 million bpd until December. U.S. production, the world's largest, is also falling. The number of operating U.S. oil and natural gas rigs fell to an all-time low for a ninth week, although the reductions have slowed as higher oil prices prompt some producers to start drilling again.
Oil steady as hopeful economic data face spike in virus cases - (Reuters) - Oil futures ended largely steady on Monday as positive economic data supported prices, while a spike in coronavirus cases in the United States that could curb fuel demand pressured prices. Brent crude LCOc1 settled at $43.10 a barrel, up 30 cents. U.S. West Texas Intermediate (WTI) crude CLc1 settled at $40.63 a barrel, down 2 cents. “The competing forces in the oil market right now are the reopening of economies around the world, increasing oil demand, countered by concerns about economies closing around the world due to a resurgence in the number of virus cases,” Andy Lipow, president of consultants Lipow Oil Associates. In the first five days of July, 16 states reported record increases in new cases of COVID-19, which has infected nearly 3 million Americans and killed more than 130,000, according to a Reuters tally. U.S. services industry activity rebounded sharply in June, almost returning to its pre-COVID-19 pandemic levels, while China’s economy was recovering and its capital markets attracting money, setting the scene for a healthy bull market, the official China Securities Journal said in an editorial. German data, however, showed that the recovery from COVID-19 will be slow and painful. Germany’s industrial orders rebounded moderately in May and a fifth of firms in Europe’s biggest economy said in a survey published on Monday they feared insolvency.
Oil slips as traders eye demand amid rise in coronavirus cases but U.S. supplies seen falling – - Oil futures ended with a modest loss on Tuesday, with the increase in coronavirus cases in parts of the world continuing to pressure prospects for energy demand.Expectations for a decline in U.S. crude inventories for a second week in a row, however, provided some support for prices.On Tuesday, West Texas Intermediate crude for August fell by a penny, 0.02%, to settle at $40.62 a barrel on the New York Mercantile Exchange, after also ending marginally lower on Monday.Global benchmark Brent oil for September declined by 2 cents, or 0.05%, to $43.08 a barrel on the ICE Futures Europe exchange, following a gain of 0.7% in the previous session.On the demand side, the Energy Information Administration’s report Wednesday, which covers data for the week ended July 3, “may capture a small piece of early 4th of July holiday driving, though next week’s report will be the one to watch,” said Robbie Fraser, senior commodity analyst at Schneider Electric.On average, the EIA is expected to report a decline of 3.7 million barrels in crude stockpiles for last week, according to analysts polled by S&P Global Platts. That would mark a second-straight weekly fall. They also forecast supply declines of 1.2 million barrels for gasoline and 500,000 barrels for distillates.
Oil steadies as economic data overshadows coronavirus worries - Oil prices settled little changed on Tuesday as demand concerns due to a new surge in coronavirus cases overshadowed U.S. government forecasts for lower production. Brent crude futures settled at US$43.08 a barrel, down 2 cents in the session. U.S. West Texas Intermediate settled down 1 cent at $40.62 a barrel. Early in the session, the market popped because of the higher forecast demand, and more bullish jobs data, said Phil Flynn, senior analyst at Price Futures Group in Chicago. But the market gave up the gains as focus returned to rising coronavirus cases. The U.S. Energy Information Administration (EIA), forecast that global oil demand would recover through the end of 2021, predicting demand of 101.1 million barrels per day (bpd) by the fourth quarter of next year. “Global oil demand continues to recover faster than previously estimated," Linda Capuano, EIA administrator, said, noting that global liquid fuels consumption in the second quarter was down an average 16.3 million bpd from a year earlier. Oil prices also got a boost as equities edged higher after the U.S. Labor Department's Job Openings and Labor Turnover (JOLTS) survey for May showed the largest-ever monthly gain for hirings. Still, 16 U.S. states have reported record increases in new COVID-19 cases in the first five days of July, according to a Reuters tally. Florida is reintroducing some limits on economic reopenings. California and Texas also reported high infection rates.
Oil dips as U.S. inventory build stokes supply fears - Oil prices eased in early trade on Wednesday as industry data showing a build in U.S. crude stockpiles and a forecast for U.S. crude output to fall less than anticipated in 2020 added to worries about oversupply. Brent crude futures fell 13 cents, or 0.3%, to $42.95 a barrel by 0019 GMT. U.S. West Texas Intermediate (WTI) crude futures dropped 10 cents, or 0.3%, to $40.52 a barrel. Prices were little changed in the previous session and have been held in a narrow band over the past two weeks as concerns about a spike in coronavirus cases globally tempers optimism about a recovery in fuel demand. U.S. crude oil stockpiles rose last week, against expectations for a draw, although gasoline and distillate inventories fell more than expected, data from industry group the American Petroleum Institute showed on Tuesday. The U.S. Energy Information Administration's (EIA) said on Tuesday U.S. crude oil production is expected to fall by 600,000 barrels per day (bpd) in 2020, a smaller decline than the 670,000 bpd it forecast previously. However, it also expected global oil demand would recover through the end of 2021, predicting demand of 101.1 million bpd by the fourth quarter of next year. "The EIA's forecast of a lower decline in U.S. output was partially offset by its outlook for firm demand recovery, which limited losses in oil markets," Hiroyuki Kikukawa, general manager of research at Nissan Securities said. "Still, expectations that the Organization of the Petroleum Exporting Countries (OPEC) and allies would taper oil output cuts from August and softer U.S. equities added to pressure," he said. Abu Dhabi National Oil Co (ADNOC) plans to boost oil exports in August, the first signal that OPEC and its allies, together known as OPEC+, are preparing to ease record oil output cuts next month, three sources familiar with the development told Reuters. Key ministers of the OPEC+ are due to hold talks next week.
Oil rises on improving U.S. gasoline demand - Oil prices edged up on Wednesday on signs of a recovery in gasoline consumption in the United States, but rising U.S. crude inventories and an increase in coronavirus infections limited gains. Brent crude futures rose 25 cents to $43.37 a barrel. West Texas Intermediate crude futures settled 28 cents, or 0.69%, higher at $40.90 per barrel. Both benchmarks were on track for a fourth session of daily percentage changes of less 1% in either direction, shrugging off news that OPEC member Libya was adding to global supplies by reopening its Es Sider oil terminal for exports. U.S. gasoline inventories decreased sharply by 4.8 million barrels as demand climbed to 8.8 million barrels per day, the highest since March 20, according to data from the Energy Information Administration released Wednesday. Refinery utilization increased by 2% but is still hovering approximately 17% lower than in the same period last year. "While a big draw on gasoline in the summertime is healthy, the U.S. is really close to all time record highs in crude oil and distillate storage, which is not as healthy," said Bob Yawger, director of energy futures at Mizuho. U.S. Gulf Coast crude oil stockpiles rose by 5 million barrels to a record high last week, the data showed. "The reduction of crude storage held on sea is simply shifting to land at this point which is not necessarily a bearish omen," said Tony Headrick, energy markets analyst at CHS Hedging. The latest surge in U.S. coronavirus cases, taking the U.S. total above 3 million, has reduced hopes for a swift recovery in oil demand which has been hammered by the global lockdowns to prevent the virus spreading. Key ministers in OPEC+, which includes OPEC, Russia and other producers, were due to hold talks next week about their deal on record output cuts that will run to the end of July and then start tapering.
Oil falls $1/bbl as resurgent pandemic prompts worries about U.S. demand - (Reuters) - Oil prices fell about $1 a barrel on Thursday as investors worried that renewed lockdowns to contain the spread of coronavirus in the United States would again sink fuel consumption. Brent crude LCOc1 futures fell 94 cents, or 2.2%, to settle at $42.35 a barrel, after gaining 0.5% on Wednesday. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell $1.28, or 3.1%, to settle at $39.62 a barrel. “As the U.S., Brazil and other countries continue to get hammered by COVID-19, demand is at stake,” said Louise Dickson, oil markets analyst at Rystad Energy. The United States reported more than 60,000 new COVID-19 cases on Wednesday, the biggest increase reported by a country in a single day. Coronavirus cases have been on the rise in 42 of the 50 U.S. states over the past two weeks, according to a Reuters analysis. The fresh surge has prompted states such as California and Texas to reimpose some restrictions. The renewed orders are likely to dent any sustained recovery in fuel demand. Data from the U.S. Energy Information Administration showed U.S. gasoline stockpiles fell by 4.8 million barrels last week, much more than analysts expected, as demand hit its highest level since March 20. [EIA/S] In storage hub Cushing, Oklahoma, crude stockpiles rose around 2 million barrels in the week to Tuesday, traders said, citing a Thursday report from Genscape. In India, fuel demand fell 7.9 percent in June compared with the same month last year, denting market sentiment further on Thursday. “The Indian demand numbers were disappointing,” said Phil Flynn, senior analyst at Price Futures Group in Chicago. “That didn’t fit the narrative we were hearing that India’s economy was bouncing back.” Still, futures have held around $40 a barrel and some analysts expect prices to hold in a range ahead of a meeting on July 15 of the market monitoring panel of the Organization of the Petroleum Exporting Countries (OPEC) and its allies. Meanwhile, oil supply from Libya remains uncertain. The country, whose ports have been blockaded since January, is trying to resume exports after the state oil firm lifted force majeure at its Es Sider oil terminal on Wednesday. However, a tanker was prevented from loading. A second tanker is currently heading toward the port.
Oil falls, with U.S. benchmark settling back under $40 as coronavirus concerns swirl - Oil futures fell on Thursday, with U.S. benchmark prices settling back below $40 a barrel, as commodity traders contended with rising cases of coronavirus in the U.S. and some other countries that may threaten to unsettle demand for crude. U.S. prices on Wednesday “remained resilient” to the surprise 5.7-million-barrel rise in domestic inventories last week, said Ipek Ozkardeskaya, senior analyst at Swissquote Bank, in a recent note. However, “the short-term direction is unclear, as investors hesitate whether it is a good idea to carry the rally further while the combination of lower demand prospects and higher supply tilts the balance to the opposite direction.” “Inability to extend gains above the $40 mark hints that a downside correction could be around the corner,” he said. August West Texas Intermediate crude fell by $1.28, or 3.1%, to settle at $39.62 a barrel on the New York Mercantile Exchange, after climbing 0.7% on Wednesday. Prices finished Thursday at the lowest since for a front-month contract June 30, according to Dow Jones Market Data. Global benchmark Brent oil for September lost 94 cents, or 2.2%, at $42.35 a barrel on the ICE Futures Europe exchange. It settled at the lowest since July 1. Prices for both WTI and Brent on Wednesday marked their highest settlements since March 6. “Oil seems ripe for a pullback here and if the demand outlook shows further signs of faltering, WTI could settle back towards the mid-$30s,” Meanwhile, feeding expectations for a slowdown in economic recovery and weakness in energy demand, the U.S. reported more than 58,000 new coronavirus cases on Wednesday, according to data compiled by Johns Hopkins University. Infections have topped 3 million in the country, with world-wide cases exceeding 12 million. India reported 24,879 new cases, taking its total to 767,296, The Wall Street Journal reported, citing data from the country’s Ministry of Health and Family Welfare. On Wednesday, the Energy Information Administration reported that U.S. crude inventories rose by 5.7 million barrels for the week ended July 3, but gasoline stockpiles decreased by 4.8 million barrels. On Thursday, August gasoline fell 3.1% to $1.2505 a gallon, on the heels of a nearly 1.3% gain a day earlier. August heating oil HOQ20, +0.14% edged down by nearly 0.9% to $1.2239 a gallon. Natural-gas futures turned lower by the settlement on Thursday, following losses among their energy peers. The EIA reported Thursday that domestic supplies of natural gas rose by 56 billion cubic feet for the week ended July 3. That was generally in line the average increase of 55 billion forecast by analysts polled by S&P Global Platts.
Oil Gets Rare, Late Week Boost From IEA Demand Outlook - The global energy agency that rarely helps the positive case in oil has given a friendly boost to those long crude, just as the week comes to an end. Crude prices jumped more than 1% on Friday after the International Energy Agency bumped up its 2020 forecast for global oil demand, lifting a market that took its worst hammering in six weeks in the previous session. The IEA’s outlook on oil has typically been dour over the past few years, putting it at odds with the Saudi-dominated OPEC — or Organization of the Petroleum Exporting Countries — whose members are determined to keep crude prices supported under any condition. The Paris-based IEA raised its demand forecast to 92.1 million barrels per day, up 400,000 bpd from its outlook last month, citing a smaller-than-expected second-quarter decline. New York-traded West Texas Intermediate, the benchmark for U.S. crude futures, was up 97 cents, or 2.4%, at $40.59 per barrel by 2:00 PM ET (18:00 GMT. London-traded Brent, the global benchmark for oil, also gained 97 cents, or 2.2%, to trade at $43.32. For the week, WTI was flat while Brent rose more than 1%. Aiding the IEA’s outlook on crude was a slight weekly drop in the U.S. oil rig count and positive news on Covid-19 vaccine development. The weekly survey of rigs actively-drilling for oil in the United States fell by four to 181, indicating that crude production was still somewhat under control despite recent trends indicating higher output.
Oil climbs, but U.S. benchmark ends lower for the week as IEA warns of coronavirus risk - Oil futures climbed on Friday, buoyed by positive results tied to a COVID-19 treatment, but U.S. prices ended lower for the week as a report from the International Energy Agency cautioned that weaker demand caused by the coronavirus pandemic will linger, even if the worst of the hit to economies has subsided. The global oil market has “reached a sort of stasis,” with Brent crude-oil prices having stabilized around $40 a barrel for much of June and early July, “as oil majors try to align their output levels with the fragile pace of the economic recovery,” said Cailin Birch, global economist at The Economist Intelligence Unit. “Stronger growth in oil demand is needed to change this dynamic and drive sustained price growth,” she told MarketWatch. “This is unlikely to happen until a coronavirus vaccine is widely available, which we only expect around end-2021.” Still, oil prices did get a boost after Gilead Sciences said clinical trial data show its antiviral drug remdesivir reduced the risk of death for coronavirus patients by 62%. The news also provided support to the U.S. stock market. “Oil futures have been trading with a high degree of correlation to the equity markets this week as the resurgence in coronavirus cases is continuing to be offset by further hopes for a swift global economic recovery,” said Richey. The IEA in a monthly report, however, raised its annual forecast for crude demand to 92.1 million barrels per day, up 400,000 barrels a day from its outlook last month, citing a smaller-than-expected second-quarter decline as lockdowns eased in many countries. However, the Paris-based agency said that a resurgence of cases of COVID-19 could pose problems for oil demand going foward.The monthly report said “the large, and in some countries, accelerating number of COVID-19 cases is a disturbing reminder that the pandemic is not under control and the risk to our market outlook is almost certainly to the downside.”There were more than 63,000 new cases of COVID-19 in the U.S. on Thursday, setting a fresh daily record, as cases and hospitalizations in California and Texas rose, The Wall Street Journal wrote. Investors were also watching the relaunch of the Messla oil field and Sarir refinery in Libya, closed since January due to civil unrest in the country. Libya coming back on line could add more pressure to an energy market that has been attempting to find its footing amid the economic damage wrought by the coronavirus pandemic.
Who Will Get Full Control Of Libya’s Oil Riches? - We are now at a crossroads in Libya where a military solution is temporarily off the table, as factions and their external allies wrangle over oil revenues--the distribution of which will now decide when the pumps are turned back on and force majeure lifted. For the first time in seven years, there is a light at the end of the Libyan tunnel, but with open and backdoor talks being brokered by various external allies, sorting rumor from fact and wishful thinking is tricky. What we know for sure is this: It’s all about leverage, and the Turkish-backed GNA doesn’t have nearly enough to call the shots on this one despite recent territorial gains in and around Tripoli against General Haftar. Now, with Egypt stepping up to the plate and drawing a red line in Sirte, the strategic gateway to the Libyan oil facilities, the potential for oil revenue negotiations is emerging. Haftar controls the oil, but not the revenues, and if everyone now has the right balance of leverage for talks to proceed, he could turn the pumps back on in return for a different setup for the distribution of oil revenues. Right now, all the revenues go to the central bank in Tripoli, where Haftar has no access. Depending on the source, talks are going on behind the scenes that would split up these revenues before they hit the central bank in Tripoli.According to the Guardian, “proposals in the talks include that the revenues be split between as many as three banks representing different regions, with an agreement not to use them for military purposes. Eastern tribal leaders are being consulted on the plans.”This version of events is also being spread about through various other media, and the National Oil Company (NOC)--a neutral source in all of this--takes issue with the scenario as presented. While the NOC confirms that talks are in progress and that it is optimistic that the result will be to turn on the taps and remove the force majeure on exports from the Hariga, Brega, Zueitina, Es Sider and Ras Lanuf ports, it denies there is any talk of splitting revenues in the manner described above.
Bombing of Turkey’s Watiya base escalates Franco-Italian proxy war in Libya - The decade-long civil war between rival imperialist-backed warlords triggered by the 2011 NATO war in Libya is spiraling out of control.On July 5, unidentified warplanes bombed al-Watiya airbase, which Italian-backed Government of National Accord (GNA) forces recently retook from French-backed Libyan National Army (LNA) forces of Khalifa Haftar. The attack damaged hangars and destroyed military equipment from Turkey, which is coordinating its support for the GNA with Italy. LNA official Khaled al Mahjoub told Al Arabiya that “other attacks similar to the one on the base will soon be carried out. ... We are in a real war with Turkey, which has oil ambitions in Libya.”Turkish military sources told Spanish news site Atalayar the raid included “nine precision air strikes against Turkish air defense systems,” which wounded several Turkish intelligence officials. They added that the attacks were “successful” and left “three radars completely destroyed.” However, Atalayar refuted reports that MiG-29 or Su-24 jets Moscow has given the LNA carried out the strikes, saying that it was the work of French-made Rafale jets.Egypt, the United Arab Emirates (UAE), and France itself all field Rafales, support the LNA, and could have bombed al-Watiya. On June 21, Egyptian dictator General Abdel Fattah al-Sisi threatened to intervene in Libya against Turkey.Turkish President Recep Tayyip Erdoğan’s office reacted to the strike by tweeting that Turkey would escalate operations in Libya, attacking the coastal city of Sirte and Al Jufra, Libya’s largest airbase, both located in central Libya and held by LNA forces. It cited control of oil supply lines and Russian support for the LNA to justify its intervention.The bombing of al-Watiya, barely 150km from Tripoli, followed visits by Turkish and Italian officials. It came only a few hours after Turkish Defense Minister Hulusi Akar concluded a trip to Tripoli, during which he proclaimed, “Turkish sovereignty and our return, after the withdrawal of our ancestors, to return forever in Libya.” This apparently referred to the Turkish Ottoman Empire’s control over Libya, until Italy seized Libya and held it as a colony from 1911 until 1943 and its defeat during World War II.
Turkey To Hold Massive Naval Exercise Off Libyan Coast In 'Message To Egypt' - In a noticeable step in terms of timing and location, the Turkish Navy announced that it would soon conduct massive naval exercises off the Libyan coast. Turkish media quoted the navy as saying that the expected maneuvers would be called “Naftex”, and would take place off the Libyan coast in 3 different regions, and each would bear a special name, which is “Barbaros”, “Targot Rais” and “Chaka Bay”. Furthermore, the Turkey-based Yeni Safak newspaper revealed that the military exercises will take place imminently, and that they are training in anticipation of any war in the eastern Mediterranean, in addition to what has been described as escalating tensions in Libya between Egypt and Turkey. Commenting on the Turkish military maneuvers off the coast of Libya, Egyptian military expert Major General Samir Ragheb said that it is a dangerous diplomatic message called “battleship diplomacy”. Ragheb said in an interview with RT Arabic this week that the Turkish military maneuvers are sending a stern warning to Ankara’s enemies that they are willing to use its armed forces to combat any threat. The Egyptian military expert considered that these maneuvers came in response to the destruction of the Turkish air defense system at the Al-Watiyah military base south of the Libyan capital, Tripoli last week. In particular, Ragheb believes Turkey is sending a message to Egypt, who is currently watching the events in Libya very closely, especially at the Sirte front in the north-central part of the country.
Israel to begin construction of 164 new settlement units in Bethlehem - Head of the Wall and Settlement Resistance Committee in Bethlehem, Hassan Brejiyah said that the Settlement Council the West Bank announced the start of work for building 164 new settlement units in the “Neve Daniel” settlement, south of Bethlehem. Brejiyah added that, according to Hebrew sources, this settlement expansion aims to create a new neighborhood in the “Neve Daniel” settlement at the expense of the citizens’ lands in the towns of Al-Khader and Nahhalin, which will put hand on dozens of agricultural dunums. He pointed out that this settlement expansion falls within the policy of fitting the settlements within the project of the so-called “Greater Jerusalem”, and taking advantage of the current situation of the spread of Coronavirus, where the settlers and under the protection of the occupation forces are taking over large areas of land, in light of the new policy of delivering notices Evacuation and deportation.
Israel’s annexation of Palestinian lands could trigger 3rd intifada: Abbas’ aide --An adviser to Palestinian President Mahmoud Abbas has warned that a third intifada (uprising) could be just around the corner if Israel goes ahead with its highly-contentious plan to annex parts of the occupied Palestinian territories. Speaking to France 24 Arabic , Nabil Shaath said that the two major Palestinian groups Hamas and Fatah, which are based in the Gaza Strip and the West Bank respectively, are in agreement about a new intifada if Israel annexes the West Bank. “When things flare up and it becomes a fully-fledged intifada, we will see a combination of forces between Gaza and the West Bank,” he said. Shaath also noted that he expected the potential Palestinian uprising to be funded by the Arab world. The first intifada, which took place in 1987-1993, involved Palestinian demonstrations, mass boycotts and general strikes as well as attacks on Israeli forces using rocks, Molotov cocktails, and firearms. Donate our fundraising campaign, If you want to continue to read our work and help us produce more news and reports from Palestine The second intifada featured many more pitched gun battles and bombings. It began in 2000 and lasted until 2005, leaving 3,200 Palestinians and about 1,000 Israelis dead. Israel’s ruling coalition, led by prime minister Benjamin Netanyahu, had announced July 1 as the date to begin moving forward with the scheme to impose “sovereignty” over about a third of the West Bank, including settlements and the fertile Jordan Valley. Israel, however, failed to launch the land grab bid on the set date amid widening differences between Netanyahu and his coalition partner, minister of military affairs Benny Gantz. Israeli labor, social affairs and services minister Ofir Akunis stressed that officials were still working out the details of the plan with their American counterparts.
Qatar Airways is now requiring all passengers wear a face shield in addition to masks — except in business class - Qatar Airways is stepping up its onboard personal hygiene requirements by requiring its passengers to wear not only a face mask but also a face shield. Except when eating and drinking, economy flyers are required to wear both items at all times including during boarding and deplaning. Passengers will receive the plastic shields during the boarding process, except for those originating from the airline's main hub in Doha who will receive the masks during check-in. The shields come in two sizes, one for adults and one for children, and come as part of a hygiene kit that also includes hand sanitizer, a face mask, and gloves. Not all passengers onboard, however, are required to don either the face mask or face shield for any portion of the flight as those seated in business class are exempt from the rule. "Business Class customers are asked to wear their face shield and mask onboard at their own discretion, as they enjoy more space and privacy," the airline's announcement states. Qatar Airways' newer long-haul jets are fitted with Qsuites, business class suites that have closable doors and partitions separating surrounding seats. But smaller aircraft and those without the Qsuite product still feature open seats with few dividers between customers. Cabin crew will be wearing additional personal protective equipment including a disposable gown to be worn over uniforms, as well as safety glasses, a mask, and gloves. While requiring at least a face covering has become commonplace among global airlines, Qatar Airways is among the first to take it to the next level by requiring the additional face shield. Wearing a face mask helps reduce the spread of coronavirus from a carrier by as much as 85% with the face shield acting as a secondary layer of protection for the wearer, according to studies cited by Time.
China Inks Military Deal With Iran Under Secretive 25-Year Plan --Last August, Iran’s Foreign Minister, Mohammad Zarif, paid a visit to his China counterpart, Wang Li, to present a roadmap on a comprehensive 25-year China-Iran strategic partnership that built upon a previous agreement signed in 2016. Many of the key specifics of the updated agreement were not released to the public at the time but were uncovered by OilPrice.com at the time. Last week, at a meeting in Gilan province, former Iran President Mahmoud Ahmadinejad alluded to some of the secret parts of this deal in public for the first time, stating that: “It is not valid to enter into a secret agreement with foreign parties without considering the will of the Iranian nation and against the interests of the country and the nation, and the Iranian nation will not recognize it.” According to the same senior sources closely connected to Iran’s Petroleum Ministry who originally outlined the secret element of the 25-year deal, not only is the secret element of that deal going ahead but China has also added in a new military element, with enormous global security implications. One of the secret elements of the deal signed last year is that China will invest US$280 billion in developing Iran’s oil, gas, and petrochemicals sectors. This amount will be front-loaded into the first five-year period of the new 25-year deal, and the understanding is that further amounts will be available in each subsequent five year period, provided that both parties agree. There will be another US$120 billion of investment, which again can be front-loaded into the first five-year period, for upgrading Iran’s transport and manufacturing infrastructure, and again subject to increase in each subsequent period should both parties agree. In exchange for this, to begin with, Chinese companies will be given the first option to bid on any new – or stalled or uncompleted – oil, gas, and petrochemicals projects in Iran. China will also be able to buy any and all oil, gas, and petchems products at a minimum guaranteed discount of 12 per cent to the six-month rolling mean average price of comparable benchmark products, plus another 6 to 8 per cent of that metric for risk-adjusted compensation. Additionally, China will be granted the right to delay payment for up to two years and, significantly, it will be able to pay in soft currencies that it has accrued from doing business in Africa and the Former Soviet Union states. “Given the exchange rates involved in converting these soft currencies into hard currencies that Iran can obtain from its friendly Western banks, China is looking at another 8 to 12 per cent discount, which means a total discount of around 32 per cent for China on all oil gas, and petchems purchases,” one of the Iran sources underlined.
China New Car Sales Crash 37% In 4th Week Of June - -- June does not appear to be shaping up to be the month where Chinese auto sales "bounce back". Dealing with recessionary headwinds pre-Covid, the world's largest auto market has been decimated by the effect of the pandemic and doesn't look to be leading the world to any type of meaningful recovery any time soon.Overnight the China Passenger Car Association said that retail car sales were down 37% YOY for the 4th week of June. Average daily sales were down to 51,627 during June 22-27. This is a 6% sequential fall from the same week in May, indicating little respite or improvement from the pressure of the coronavirus pandemic on the industry. PCA blamed "seasonal factors" for the drop, which is a funny way to say "Chinese-borne virus ravaging the entire planet". This also paints an ugly picture for June's new car sales number, since we reported about 3 weeks ago that the first week in June was also off to an ugly start. In that article, we noted that retail car sales fell 10% year over year - but more importantly 20% from the same period in May - in the first week of June. June's interim data comes after what looked like the beginning of a rebound for the industry in May, to the extent that we can trust the numbers coming out of Beijing. This news comes despite better than expected results in May, where sales showed a 12% increase year over year. According to The Detroit Bureau, premium and luxury passenger car retail sales led the charge in May, rising 28% last month compared with year-ago results. Those vehicles accounted for 1.61 million of the month's 2.14 million vehicles sold.
Hong Kong Schools Must Ensure Patriotic Content & Remove Books Breaching China Security Law -Things in Hong Kong have rapidly gone straight Orwellian very quickly after the July 1 enactment of the new national security law. As we detailed this week activists are busy scrubbing their digital footprints, including deleting social media profiles and chat histories, given authorities can reportedly pry citizens' online communications from internet companies without a warrant under the law.But it's not just college-age and 'professional demonstrators' and pro-independence organizers that have to worry, as now even schools have been ordered to review textual content in books. This means teachers and young students are coming under threat if they don't visibly and "positively" conform. Hong Kong's Education Bureau this week announced that schools must review their own long in use education material, including books in classrooms and on library shelves, to ensure that no content which violates the law is present.The bureau described this as part of an initiative to “positively teach” students regarding the new law. "In accordance with the four types of offences clearly stipulated in the law, the school management and teachers should review teaching and learning materials in a timely manner, including books," the Education Bureau said."If they find outdated content or content that may concern the four aforementioned offences, they should remove them," it added. This essentially hearkens back to 1930's Germany book burning days.And in a chilling statement which seems straight of a dystopian novel, the Education Bureau added: "As with other serious crimes or immoral behaviour that is not socially acceptable, materials should be removed and re-selected."
China & India Agree To 1km Buffer Zone, Troop Pullback After Deadly Border Clash - Following the deadly June 15 India-China border fight which had the highest casualties of any skirmish between the two along the Line of Actual Control (LAC) in fifty years, Indian and Chinese officers have conducted multiple deescalation talks as each country's media saber rattles, and as India has retaliated economically against Beijing. These talks have led to a major breakthrough apparently, as on Monday both sides have announced the establishment of a sizable buffer zone along the LAC in the Galwan River valley, requiring each to move troop positions away from the site. This after especially a semi-permanent PLA build-up was observed in the region, and as Indian troops responded by sending tanks and armored units. The buffer zone agreement was reportedly firmed up Sunday during a phone call between Chinese Foreign Minister Wang Yi and Indian National Security Advisor Ajit Doval, which agreed to immediate mutual disengagement. An Indian government statement said "it was necessary to ensure at the earliest complete disengagement osf the troops along the LAC and de-escalation from India-China border areas." The statement as widely reported in Indian media said further: "In this regard they further agreed that both sides should complete the ongoing disengagement process along the LAC expeditiously." Regional media also said both sides have already begun the one kilometer pull-back from the disputed border line:Today, sources said China has withdrawn its troops by at least a kilometer and dismantled its temporary structures in Ladakh's Galwan river valley, where 20 soldiers were killed in action during a clash with Chinese troops on June 15. Indian soldiers have also pulled back and a buffer zone has been created, sources said. Ahead of this days ago, Indian Prime Minister Narendra Modi made a visit to the Ladakh region in solidarity with troops stationed at the remote Himalayan border area.
Will the real Kim Yo Jong stand up? --It is incredibly difficult to get any reliable information about the leaders in North Korea. For a variety of reasons, North Korea practices extreme information denial. And the little information it does release is heavily tainted by North Korea’s particular political objectives of the day. This is especially true with Kim Jong Un’s younger sister, Kim Yo Jong. For years she exuded a smiling and personable image while acting in a servile relationship to her brother. While being part of the supposed “god” Kim Family, she avoided any appearance of leadership, carrying an ashtray for her brother’s cigarette, bringing him a tray with the scissors for a ribbon cutting ceremony and pulling back the chair to seat President Kim Yong Nam, the official leader of the North Korean delegation, when they met with South Korean President Moon during the 2018 Olympics. During the North Korean theater ballistic missile tests last September, pictures of Kim Jong Un at the tests with his advisers show Kim Yo Jong in the far but visible background. Then in early March of this year, the situation changed. Kim Yo Jong began taking on a spokesperson role. Kim Yo Jong issued her first statement representing the North Korean regime, accusing the South Korean Presidential Offices of being “idiotic” and having an “incoherent and imbecile way of thinking” for denouncing the North’s first missile tests of 2020. Later in March she thanked President Trump for offering assistance against COVID-19, which she declined. Her tone then escalated in early-June, when she lashed out in extremely harsh terms against North Korean defectors sending leaflets into North Korea, calling them “human scum” and “rubbish-like mongrel dogs” and severely criticizing the South Korean government before threatening to abort the North’s role in inter-Korean peace talks. North Korea subsequently severed most communications with South Korea, which were symbolic of inter-Korean rapprochement. Then she again officially criticized the defectors, expressed her exasperation with inaction by the South Korean government against the defectors and said she had directed the “department in charge of the affairs with enemy” to take the next action, implying that South Korea had become the North’s enemy. On June 16, North Korea destroyed the inter-Korean joint liaison office in Kaesong, which had also been a key symbol of rapprochement. This was a serious shock to the South Korean government. Kim Yo Jong then escalated the crisis by blaming Moon personally for the breakdown of inter-Korean relations, “accusing Moon of ‘pro-U.S. flunkyism and submission.’”North Korea was clearly trying to disrupt the South Korea/U.S. alliance, and also trying to get the South Korean government to start joint economic projects with the North to break the North’s economic troubles associated with international sanctions. President Moon’s office responded most seriously to this personal criticism. Fortunately, Kim Jong Un stepped in a week later and deescalated this confrontation.
Fired Ukraine Minister Dons Skimpy Bikini, Launches New Party To Fight Corruption Of "Pants-Wearing Idiots"Ukraine's former deputy infrastructure minister, Aleksandra Klitina, recently released a racy video announcement of a new political party while partially exposing upper chest cleavage, reported RT News. Klitina, 37, apparently knows how to attract a new base - her 'physique' was the centerpiece in the video as she called for a new political party called "Ukraine against corruption" - she posted the video on YouTube in late June. In the short clip, Klitina is wearing a skimpy swimsuit while giving a political speech outdoors, standing feet in front of a camera, where she said: "I decided to fight for truth myself because those pants-wearing idiots are hopeless," she proclaimed, promising that her party will "finally deal with those male political prostitutes.""They think that if they have something in their pants, it's enough for them to be successful and be eligible to abuse women. But women are a hundred times smarter and a hundred times more honest than you."
French bus driver left brain-dead after asking passengers to wear masks - A bus driver in the southern French city of Bayonne has been left brain-dead from a brutal assault, after he ordered a group of passengers to either wear masks or get off the bus, on Sunday evening. According to police accounts, the driver, Philippe Monguillot, 59 years old, was attacked by one or multiple passengers at a stop. He had told one passenger attempting to get on the bus that he would not be allowed on without wearing a coronavirus mask, which is required by law on public transport. At the same stop he reportedly told three other passengers on the bus that they would have to get off if they did not put on masks. After the assault, Monguillot was transported unconscious to a hospital and placed on life support, but was declared brain-dead. He has a wife and three adult daughters. On Sunday, a 34-year-old man was placed under arrest and remains in police custody. Four other men were arrested on Monday, one of whom is a minor and has subsequently been released. The prosecutor reported last night that two men would be charged with intentional murder. On Monday, the bus drivers at Chronoplus, where Monguillot worked, announced that they were on strike until after Monguillot’s funeral service. Chronoplus serves bus routes in Bayonne, Anglet and Biarritz, a sea-side resort on the south-west Atlantic coast of France. Routes in all three areas were stopped on yesterday. The drivers are demanding greater protection.
Brexit: Running Down the Clock? -- Yves Smith - The Brexit front has seemed positively dull compared to the horrors of Covid-19, US protests and rising social tensions. However, the lack of much apparent action, aside from the Groundhog Day sort, is a bit misleading, since letting the clock run has consequences of its own. Even though you’d not discern it from the tone of the press coverage, with the transition period over on December 31, both sides ought to be in “time is of the essence” mode. Yet the first face to face negotiating session since March, which took place last week, ended a day early, which was clearly a bad sign. Four big issues remain outstanding: the so-called level playing field (which is shorthand for “if the UK wants advantaged access to EU markets, it has to adhere to EU standards”), fisheries, intelligence and judicial cooperation, and what the press has called “governance”. The last is what I have called a “shape of the table” issue, which ought to take precedence before the others. The UK wants a raft of sector-by-sector mini-deals, like Switzerland, while the EU wants one big deal so that any oversight or enforcement mechanisms operate across all areas. A trade agreement is a vastly more complex document than either the Withdrawal Agreement or Political Declaration were. And even then, for Johnson to get to a deal, he edited the agreement Theresa May had struck. Six months is not enough time to negotiate anything remotely resembling a “normal” trade deal, such as a so-called free trade agreement. And the fact that the UK has a large services sector makes matters worse, since services deals are much more difficult to negotiate than ones involving goods. And the UK’s pet idea of many little deals is an impossible hill to climb even if the EU were to have a change of heart. One of the big reasons for preferring sector-specific arrangements was to provide for sector-specific provisions on regulatory synchronization and enforcement. It’s hard enough to negotiate even a biggish deal in six months. A bunch of bitty deals is a non-starter. So the most the UK is likely to be able to cinch in the remaining time is bare bones pact covering tariffs and quotas, and perhaps with some side deals. But the UK will not have frictionless or even low friction trade. UK goods will be subject to border procedures when they go into EU.Yes, in theory the EU and UK could fudge the year end drop-dead date, and they clearly would if negotiations were almost done but technical matters needed to be cleaned up. The Institute for Government outlines some of the ways the finesse could be achieved:
- Amend the end date of the transition period in the Withdrawal Agreement. This could in theory be done at any point after June. But it would almost certainly require the European Court of Justice to give a legal opinion first.
- Create a new transition period to begin on 1 January 2021. This would mean striking a new, complex agreement and a lengthy ratification process, alongside future relationship negotiations.
- Include an implementation phase as part of the future relationship treat. This would give businesses time to make investment decisions and adapt supply chains.
- Create an implementation phase to prepare for a potential no-deal exit
- Agree a temporary deal to allow traders to adapt to a no-deal scenario in the event that talks break down.
Even though Boris “rather die in a ditch” Johnson is famous for walking away from past commitments, he has so lashed himself to the mast of a year end Brexit that even if he were to extend, his fellow travelers will raise a furor about any delay. And recall that Brexit is no longer popular with voters; recent polls have come in at only 40% now supporting it. So a few months is probably the most Johnson would try to sell.
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