Trump says he will approve permit for Canada to Alaska railway to free landlocked oil

WASHINGTON (Reuters) – President Donald Trump wrote on Twitter over the weekend he would issue a permit for a railway project from Canada’s oil sands to ports in Alaska, a project that has many regulatory hurdles but could help spur shipments of the landlocked crude to foreign markets and U.S. refiners.

“It is my honor to inform you that I will be issuing a Presidential Permit for the A2A Cross-Border rail,” Trump wrote on Twitter. He said his decision was based on the recommendation of fellow Republicans Dan Sullivan, a U.S. senator, and Don Young, a U.S. representative. Projects that cross the U.S. border require presidential permits.

The $17 billion Alaska-Alberta Railway Development Corporation (A2A Rail) project, first proposed in 2015 by Canadian infrastructure financier Sean McCoshen, would move crude from the Alberta oil sands 1,600 miles (2,570 km) to the Alaskan coast, as well as freight in the other direction.

Much of the case for the project has been often-congested pipelines responsible for moving Alberta crude to U.S refineries. However, new pipelines are under construction, reducing the urgency for another transportation option, and European producer BP Plc recently questioned whether global oil demand has already peaked.

Once a permit is issued, A2A would require numerous regulatory clearances in the United States and Canada that would likely take years. The company could not immediately be reached.

Shipping oil by rail has caused several high-profile accidents in both Canada and the United States in recent years, leading to criticism about the practice by some environmental groups.

The White House did not immediately respond to a request for comment on how soon Trump would issue the permit.

The office of Alaska Governor Mike Dunleavy did not immediately respond to a request for comment.

Canadian energy companies have complained that Canada’s regulatory system is too sluggish, and proposed oil pipelines have run into opposition from environmental and indigenous groups in both Canada and the United States.

Trump issued a permit and an executive order in attempts to speed TC Energy Corp’s Keystone XL pipeline project to bring oil sands crude to U.S. refiners, but it has been mired in delays.

(Reporting by Timothy Gardner in Washington and Rod Nickel in Winnipeg; Editing by Matthew Lewis)

Canada’s biggest provinces seek clamp down on social gatherings as coronavirus wave spreads

By Mahad Arale and Allison Lampert

TORONTO/MONTREAL (Reuters) – Canada’s two most populous provinces on Friday moved to clamp down further on social gatherings in a bid to slow a second wave of coronavirus cases sweeping across much of the country.

Ontario ordered the closure of bars and restaurants from midnight to 5 a.m. except for takeout and delivery and said strip clubs would have to shut down from Saturday.

Premier Doug Ford, whose government has already slashed the size of permitted gatherings indoor and outdoors, repeated his concerns that the majority of new cases were in people under 40.

“I can tell you I don’t see seniors going into nightclubs too often,” he told a daily briefing.

Health officials in Canada have been making increasingly gloomy comments in recent days. Theresa Tam, the chief medical officer, said on Friday that some local authorities could be overwhelmed unless the wave was curbed.

In Quebec, Health Minister Christian Dube urged residents to cut down on social interactions.

“We’re asking you to make a special effort for the next 28 days,” he told a news conference, saying the government did not want to close bars because people might then attend private parties that are harder to control.

Ontario and Quebec together account for 79% of the 149,094 cases reported in Canada so far and 93% of the 9,249 deaths.

In Ottawa, Prime Minister Justin Trudeau said Canada signed a deal with AstraZeneca PLC to buy up to 20 million doses of its COVID-19 vaccine candidate. It is among the leading candidates in the global race for a vaccine.

Procurement Minister Anita Anand said in an interview that the first doses were due in early 2021, assuming public trials went well.

Canada has now signed deals for a total of around 300 million doses of vaccine candidates from a number of major pharmaceutical firms.

(Additional reporting by Allison Martell in Montreal, writing by David Ljunggren; Editing by Aurora Ellis and Alistair Bell)

Mercury released by permafrost thaw puts Yukon River fish at risk: study

By Yereth Rosen

ANCHORAGE (Reuters) – If carbon emissions continue at current rates, so much mercury will leach from thawing permafrost that fish in the Yukon River could become dangerous to eat within a few decades, according to a study published Wednesday in the journal Nature Communications.

Current emissions rates threaten to trigger enough thaw release to drive mercury levels in Yukon River fish above federal safety guidelines by 2050, according to the study.

Mercury concentration in the Yukon is expected to double by the end of the century if carbon emissions continue at present rates, according to the study.

But if emissions are reduced in line with the 2015 Paris Agreement, mercury concentrations will increase by only 14% by the end of the century, keeping levels in fish at or below safety guidelines, according to the study.

“A lot will depend on what we do in terms of response to climate change,” said Kevin Schaefer of the Colorado-based National Snow and Ice Data Center, the study’s lead author.

The study has implications beyond the indigenous communities in Alaska and Canada that depend on Yukon River fish for their income, diets and culture, Schaefer said.

The nearly 2,000-mile river is “a bellwether or a canary-in-the-coal mine kind of thing, an indicator of what might happen over the whole Arctic,” he said. Thaw-released mercury will work its way from the land to the river and ultimately, into the oceans, and thaw-released mercury in gaseous form will encircle the world, he said.

“What happens in the Yukon is going to affect the entire globe, not just the people who live on or around the Yukon River,” he said.

A 2018 study co-authored by Schaefer, in collaboration with partners from the U.S. Geological Survey and other institutions, estimated that Northern Hemisphere’s permafrost soils hold nearly twice as much stored mercury as is in all the rest of the world’s soils, the oceans and the atmosphere combined.

(Reporting by Yereth Rosen; Editing by Bill Tarrant and Christopher Cushing)

COVID-19 cases rise in Canada, schools to put pressure on testing system

By Allison Martell and Moira Warburton

TORONTO/VANCOUVER (Reuters) – Canada’s three biggest provinces are seeing a pick-up in new COVID-19 cases, as officials do little to slow the virus beyond urging people to be more careful, and doctors warn school reopenings will boost demand for testing.

The country reported no deaths for one day on Friday, an echo of earlier success in controlling the virus that may already be slipping away, even before the impact of school reopenings is clear.

Demand for tests is already up in some Ontario hot spots, and will rise further as more children return to school. Students with symptoms will generally have to isolate at home until they are well and have a negative test, so any backlogs will trap families at home.

McMaster University infectious disease expert Dr Zain Chagla said assessment centers need to stop testing asymptomatic people who have no known exposure to the virus, before labs become overwhelmed.

Canada’s 5 million school children average about eight upper respiratory tract infections a year, said Chagla. Even if that falls to two this year, some 27,000 will need to be tested on any given day.

Last week, Canada averaged 47,807 tests per day.

“It’s not minor, the actual demands that are going to be put on the system as part of children going back to school,” he said. “It’s going to be paramount that the turnaround time be relatively quick.”

Ontario Premier Doug Ford said he discussed testing with Canada’s Deputy Prime Minister Chrystia Freeland on Monday morning.

“All provinces, not just Ontario, are going to start ramping up for more testing,” he said.

Federal officials have said they are aiming for a “slow burn” of infection.

Dr. Irfan Dhalla, vice president of physician quality at Unity Health, which operates two hospitals in Toronto, has argued that the country should instead try to come as close as possible to eliminating the virus, following New Zealand and Canada’s own Atlantic provinces, with testing, tracing, isolation and support.

“It’s only a matter of time before we start seeing hospitalizations increase, and before we start seeing more people dying again,” said Dhalla.

Infections in Ontario, the most populous province, charged through the 300 mark on Monday, after dropping to below 100 a day in early August with the government blaming the spread on private social gatherings like weddings.

British Columbia, which imposed fresh curbs on nightclubs last week, reported its highest-ever case count of 139 on Sept. 10. Cases are also rising in Quebec, where classes resumed first.

Quebec teachers’ union Fédération autonome de l’enseignement (FAE) filed a lawsuit on Monday, seeking more information about a promised plan to ensure teachers and students have access to accelerated testing, and on the number of COVID-19 cases in schools.

“The government is currently giving the impression that it is improvising, while the virus doesn’t give second chances,” FAE president Sylvain Mallette said in a statement.

Prime Minister Justin Trudeau reiterated his message on Monday, asking people to remain vigilant: “The last thing anyone wants is to go into this fall and lock down, similar to this spring,” he said.

(Additional reporting by Mahad Arale in Toronto, Allison Lampert in Montreal and Steve Scherer in Ottawa; Editing by Andrea Ricci)

Uber promises 100% electric vehicles by 2040, commits $800 million to help drivers switch

By Tina Bellon

(Reuters) – Uber Technologies Inc on Tuesday said every vehicle on its global ride-hailing platform will be electric by 2040, and it vowed to contribute $800 million through 2025 to help drivers switch to battery-powered vehicles, including discounts for vehicles bought or leased from partner automakers.

Uber, which as of early February said it had 5 million drivers worldwide, said it formed partnerships with General Motors and the Renault, Nissan, Mitsubishi alliance.

In addition to the vehicle discounts, Uber said the $800 million includes discounts for charging and a fare surcharge for electric and hybrid vehicles, the cost of which would be partially offset by an additional small fee charged to customers who request a “green trip.”

Uber said that vehicles on its rides platform in the United States, Canada and Europe will be zero-emission by 2030, taking advantage of the regulatory support and advanced infrastructure in those regions.

The deals with GM and the Renault alliance focus on the U.S., Canada and Europe. Uber said it was discussing partnerships with other automakers.

Uber’s plan follows years of criticism by environmental groups and city officials over the pollution and congestion caused by ride-hail vehicles and calls for fleet electrification.

Lyft Inc, Uber’s smaller U.S. rival, in June promised to switch to 100% electric vehicles by 2030, but said it would not provide direct financial support to drivers.

Uber said its goal is to reduce the overall cost of ownership for electric vehicles, which are currently more expensive than gasoline cars.

The company also released data on its emission footprint and said it would publish reports going forward.

Before the pandemic, electric cars accounted for only 0.15% of all U.S. and Canadian Uber trip miles – roughly in line with average U.S. electric car ownership. At around 12%, the share of plug-in hybrid and hybrid cars was roughly five times as high as the U.S. average.

Ride-hail trips overall account for less than 0.6% of transportation-sector emissions, according to U.S. data, but the total number of on-demand vehicles has significantly increased since Uber’s launch nearly a decade ago, with 7 billion trips last year, according to Uber’s February investor presentation.

Uber said its U.S. and Canadian trips with a passenger produce 41% more carbon dioxide per mile than an average private car once miles spent cruising between passengers are included.

Uber’s plans could be a boon to the auto industry. Stricter environmental regulation, particularly in Europe, is forcing automakers to invest billions to overhaul their operations while consumer demand for electric vehicles remains subdued. Uber is also working with BP, EVgo and other global charging providers to provide discounts and expand the location of charging stations for ride-hail drivers – generally considered a main hurdle to wider EV adoption. Beginning on Tuesday, all U.S. and Canadian Uber drivers in a fully battery-powered electric vehicle will receive $1 extra per trip, and an additional 50 cents in major U.S. cities if passengers choose to pay extra when booking a “green trip.”

(Reporting by Tina Bellon in New York; Editing by Peter Henderson and Leslie Adler)

Steroids cut death rates among critically ill COVID-19 patients, major study finds

By Kate Kelland

LONDON (Reuters) – Treating critically ill COVID-19 patients with corticosteroid drugs reduces the risk of death by 20%, an analysis of seven international trials found on Wednesday, prompting the World Health Organisation to update its advice on treatment.

The analysis – which pooled data from separate trials of low dose hydrocortisone, dexamethasone and methylprednisolone – found that steroids improve survival rates of COVID-19 patients sick enough to be in intensive care in hospital.

“This is equivalent to around 68% of (the sickest COVID-19) patients surviving after treatment with corticosteroids, compared to around 60% surviving in the absence of corticosteroids,” the researchers said in a statement.

The WHO’s clinical care lead, Janet Diaz, said the agency had updated its advice to include a “strong recommendation” for use of steroids in patients with severe and critical COVID-19.

“The evidence shows that if you give corticosteroids …(there are) 87 fewer deaths per 1,000 patients,” she told a WHO social media live event. “Those are lives … saved.”

“Steroids are a cheap and readily available medication, and our analysis has confirmed that they are effective in reducing deaths amongst the people most severely affected by COVID-19,” Jonathan Sterne, a professor of medical statistics and epidemiology at Britain’s Bristol University who worked on the analysis, told the briefing.

He said the trials – conducted by researchers in Britain, Brazil, Canada, China, France, Spain, and the United States – gave a consistent message throughout, showing the drugs were beneficial in the sickest patients regardless of age or sex or how long patients had been ill.

The findings, published in the Journal of the American Medical Association, reinforce results that were hailed as a major breakthrough and announced in June, when dexamethasone became the first drug shown to be able to reduce death rates among severely sick COVID-19 patients.

Dexamethasone has been in widespread use in intensive care wards treating COVID-19 patients in some countries since then.

Martin Landray, a professor of medicine and epidemiology at the University of Oxford who worked on the dexamethasone trial that was a key part of the pooled analysis published on Wednesday, said the results mean doctors in hospitals across the world can safely switch to using the drugs to save lives.

CLEAR BENEFITS

“These results are clear, and instantly usable in clinical practice,” he told reporters. “Among critically ill patients with COVID-19, low-dose corticosteroids … significantly reduce the risk of death.”

Researchers said the benefit was shown regardless of whether patients were on ventilation at the time they started treatment. They said the WHO would update its guidelines immediately to reflect the fresh results.

Until the June findings on dexamethasone, no effective treatment had been shown to reduce death rates in patients with COVID-19, the respiratory disease caused by the new coronavirus.

More than 25 million people have been infected with COVID-19 and 856,876​ have died, according to a Reuters tally.

Gilead Sciences Inc’s remdesivir was authorized by United States regulators in May for use in patients with severe COVID-19 after trial data showed the antiviral drug helped shorten hospital recovery time.

Anthony Gordon, an Imperial College London professor who also worked on the analysis, said its results were good news for patients who become critically ill with COVID-19, but would not be enough to end outbreaks or ease infection control measures.

“Impressive as these results are, this is not a cure. We now have something that will help, but it is not a cure, so it’s vital that we keep up all the prevention strategies.”

(Reporting by Kate Kelland; Editing by Mark Heinrich and Catherine Evans)

Canada to impose retaliatory tariffs on C$3.6 billion worth of U.S. goods

By David Ljunggren

OTTAWA (Reuters) – Canada will slap retaliatory tariffs on C$3.6 billion ($2.7 billion) worth of U.S. aluminum products after the United States said it would impose punitive measures on Canadian aluminum imports, a senior official said on Friday.

Deputy Prime Minister Chrystia Freeland told a news conference the countermeasures would be put in place by Sept. 16 to allow consultations with industry.

U.S. President Donald Trump on Thursday moved to reimpose 10% tariffs on some Canadian aluminum products to protect U.S. industry from a “surge” in imports. Canada denies any impropriety.

“A trade dispute is the last thing anyone needs – it will only hurt an economic recovery on both sides of the border. However, this is what the U.S. administration has chosen to do,” said Freeland.

“We do not escalate and we do not back down,” she said later, describing the U.S. decision as unjust and absurd.

The Canadian list of goods that might be subject to tariffs include aluminum bars, plates, household articles, refrigerators, bicycles and washing machines.

It is the second time in two years that Canada has struck back at Trump over trade. In 2018, Ottawa slapped tariffs on C$16.6 billion ($12.5 billion) worth of American goods ranging from bourbon to ketchup after Washington imposed sanctions on Canadian aluminum and steel.

Canadian officials may be calculating that the measures will be short-lived. An Ottawa source briefed by Prime Minister Justin Trudeau’s office said Canadian officials are increasingly sure that Trump will lose the Nov. 3 presidential election to Democratic presidential candidate Joe Biden.

Trump acted just weeks after a new continental trade pact between the United States, Canada and Mexico took effect. The North American economy is highly integrated and Canada sends 75% of all its goods exports to the United States.

The premier of Ontario, Canada’s most populous province, said earlier on Friday that he had encouraged Freeland to impose tariffs on as many U.S. goods as possible.

“For the President to come and attack us during these times, during a pandemic when we need everyone’s support, is totally unacceptable,” Doug Ford told a news conference.

(Reporting by David Ljunggren; Editing by Chris Reese and Dan Grebler)

Canadian court rules invalid ‘Safe Third Country’ with the U.S.

By Steve Scherer and Moira Warburton

OTTAWA/TORONTO (Reuters) – A Canadian court on Wednesday ruled invalid a pact that compels asylum seekers trying to enter Canada via the American border to seek sanctuary first in the United States, saying their detention there violates their human rights.

Under the so-called Safe Third Country Agreement between the two neighbors, asylum seekers at a formal border crossing traveling in either direction are turned back and told to apply for asylum in the country in which they first arrived.

Lawyers for refugees who had been turned away at the Canadian border challenged the agreement, saying the United States does not qualify as a “safe” country under U.S. President Donald Trump.

Nedira Jemal Mustefa, one of the refugees turned back, described her time in solitary confinement in the United States as “a terrifying, isolating and psychologically traumatic experience,” according to the court ruling.

“We’re all too familiar with the treatment that the U.S. metes out to asylum seekers,” said Maureen Silcoff, president of the Canadian Association of Refugee Lawyers. “This case highlights the conditions that people face when Canadian officials turn them around at the U.S. border.”

More than 50,000 people have illegally crossed the Canada-U.S. border to file refugee claims over the past four years, walking over ditches and on empty roads along the world’s longest undefended border.

Canada has sought to stem the human tide of asylum seekers that flowed into the country starting in 2016, after Trump promised to crack down on illegal immigration. Experts have said suspending the agreement would have huge implications for the Canada-U.S. relationship.

Federal court judge Ann Marie McDonald ruled that the agreement was in violation of a section of Canada’s Charter of Rights that says laws or state actions that interfere with life, liberty and security must conform to the principles of fundamental justice.

She suspended her decision for six months to give Parliament a chance to respond to the ruling, which is not final and can be appealed to the Federal Court of Appeal and then the Supreme Court if necessary.

Canada’s justice ministry and immigration ministry had no immediate comment, nor did officials in the U.S. embassy in Ottawa.

(Reporting by David Ljunggren and Steve Scherer; Editing by Chizu Nomiyama and Jonathan Oatis)

Voice data recovered from Ukraine jet downed by Iran

PARIS (Reuters) – Investigators examining the black boxes from the Ukrainian jet accidentally shot down by Iran have recovered its cockpit voice data, France’s BEA accident investigation bureau said.

Iranian forces say they brought down the Ukraine International Airlines (UIA) jet, a Boeing 737, on Jan. 8 after mistaking it for a missile amid heightened tensions with the United States. All 176 people aboard Flight PS752 were killed.

“CVR data – including the event itself – has been successfully downloaded,” the BEA said in a tweet on Monday, referring to the cockpit voice recorder from the downed jet.

The BEA did not elaborate on the content of the audio, which records the pilots’ verbal communications and other cockpit sounds. The release of any further information is a matter for Iranian authorities leading the investigation, a BEA spokesman said.

The data extraction, expected to take most of this week, is being carried out with an Iranian investigator and observed by Canadian, U.S., Swedish and British experts and representatives from UIA, Boeing and engine maker Safran.

Iran agreed in June to send the black boxes to the BEA for analysis, ending a long standoff with Canada, Ukraine and France over access to the data. Work began early on Monday at BEA headquarters outside Paris.

Many of the crash victims were Canadian citizens or permanent residents, or had Canada as their final destination.

An interim report by Iran’s Civil Aviation Organisation last week blamed a misalignment of a radar system and lack of communication between the air defense operator and his commanders for the tragedy.

Ukrainian President Volodymyr Zelenskiy said on Monday he welcomed Iran’s decision to hand over the black boxes, saying those responsible would be held accountable.

(Reporting by Laurence Frost; Editing by Mark Heinrich)

When the U.S. sneezes, the world catches a cold. What happens when it has severe COVID-19?

By Howard Schneider

WASHINGTON (Reuters) – During a blue-sky moment in 2018 near the end of a decade-long economic expansion, it was the United States that helped pull the world along as the extra cash from tax cuts and government spending flowed through domestic and global markets.

But if it was U.S. policy that pushed the world higher then, it is U.S. policy that threatens to pull the world under now as the country’s troubled response to the coronavirus pandemic emerges as a chief risk to any sustained global recovery.

Officials from Mexico to Japan are already on edge. Exports have taken a hit in Germany, and Canada looks south warily knowing that any further hit to U.S. growth will undoubtedly spill over.

“Globally there will be difficult months and years ahead and it is of particular concern that the number of COVID-19 cases is still rising,” the International Monetary Fund said in a review of the U.S. economy that cited “social unrest” due to rising poverty as one of the risks to economic growth.

“The risk ahead is that a large share of the U.S. population will have to contend with an important deterioration of living standards and significant economic hardship for several years. This, in turn, can further weaken demand and exacerbate longer-term headwinds to growth.”

It was a clinical description of a grim set of facts: After the U.S. government committed roughly $3 trillion to support the economy through a round of restrictions on activity imposed to curb the virus in April and May, the disease is surging in the United States to record levels just as those support programs are due to expire. More than 3.6 million people have been infected and 140,000 killed. Daily growth in cases has tripled to more than 70,000 since mid-May, and the 7-day moving average of deaths, after falling steadily from April to July, has turned higher.

Meanwhile the country has fractured over issues like mask-wearing that in other parts of the world were adopted readily as a matter of common courtesy. With some key states like Texas and California now reimposing restrictions, analysts have already noted a possible plateau to the U.S. recovery with the country still 13.3 million jobs shy of the number in February.

A GLOBAL DISAPPOINTMENT

For other major economic powers, that is a weight added to their own struggles with the virus and the economic fallout.

The U.S. economy accounts for about a quarter of world gross domestic product. Though much of that is service-related, and much of the direct impact of the virus is tied up in industries like restaurants with weak links to the global economy, the connections are still there. A lost job leads to lower consumer spending leads to fewer imports; weak business conditions lead to less investment in the equipment or supplies that are often produced elsewhere.

Year-to-date U.S. imports through May are down more than 13%, or roughly $176 billion.

In Germany, whose measures to contain the pandemic are considered to have been among the most effective, exports to the United States plunged 36% year-over-year in May. Analysts see little prospect for improvement, with year-to-date U.S. auto sales through June down nearly 24% from a year earlier.

“That is really a disappointment,” said Gabriel Felbermayr, president of the Kiel Institute for the World Economy, in a recent interview with radio network Deutschlandfunk. The spike in U.S. infections, he said, could not have been expected.

In Japan, the speed of the recovery is seen tied directly to U.S. success in stemming the virus.

“Japan’s recovery will be really delayed if the spreading of the coronavirus in the United States isn’t stopped and U.S.-bound exports from various Asian countries don’t grow,” said Hideo Kumano, a former Bank of Japan official who is now chief economist at Dai-ichi Life Research Institute.

PESSIMISM AT BOTH BORDERS

The IMF projected U.S. GDP will shrink this year by 6.6%, in line with many analysts’ projections.

The Bank of Canada is more pessimistic, forecasting U.S. GDP to fall 8.1% on the year. That has already been lowered once as the health situation decayed.

A further leg down would hit Canada directly, with perhaps three-fourths of the country’s exports headed over the U.S. border.

“We did take down our U.S. projection … I would underline that there’s a lot of uncertainty, and the principle source of the uncertainty is the evolution of the coronavirus itself,” said BOC governor Tiff Macklem.

At the southern border, Mexico is also posting record daily numbers of new cases, but President Andres Manuel Lopez Obrador has at times deflected criticism of his government’s efforts by pointing to the U.S. numbers.

Lopez Obrador undertook a risky visit with President Donald Trump earlier in July, couching his journey to Washington as a matter of economic necessity as Mexico attempts to revive an economy that could shrink by 10% or more this year, according to forecasts.

The Mexican president hopes the new United States-Mexico-Canada Agreement (USMCA) trade deal, which took effect on July 1, will spur business and investment, but pessimism about the outlook has been growing.

“To the point that people in the U.S. are losing jobs or incomes it is a downward weight … and it will have ramifications on the ability to consume globally,” said Elizabeth Crofoot, senior economist at the Conference Board, which documented a record drop in global consumer confidence in a recent survey.

“We take one step forward and two steps back.”

(Reporting by Howard Schneider in Washington; Additional reporting by Reinhard Becker and Christian Kraemer in Berlin, Leika Kihara in Tokyo, Steve Scherer in Ottawa and Dave Graham in Mexico City; Editing by Dan Burns and Matthew Lewis)