Researchers revise U.S. COVID-19 death forecast upward again

By Steve Gorman

(Reuters) – A newly revised coronavirus mortality model predicts more than 147,000 Americans will die from COVID-19 by early August, up nearly 10,000 from the last projection, as restrictions for curbing the pandemic are relaxed, researchers said on Tuesday.

The latest forecast from the University of Washington’s Institute for Health Metrics and Evaluation (IHME) reflects “key drivers of viral transmission like changes in testing and mobility, as well as easing of distancing policies,” the report said.

The revision reinforced public health warnings, including U.S. Senate testimony on Tuesday from Dr. Anthony Fauci, the nation’s top infectious disease expert, that prematurely lifting lockdowns could lead to more outbreaks of the respiratory virus.

Fauci and other medical experts have urged caution in relaxing restraints on commerce before diagnostic testing and the ability to trace close contacts of infected individuals can be vastly expanded, along with other safeguards.

IHME researchers acknowledged that precise consequences of moves to reopen shuttered businesses and loosen stay-at-home orders are difficult to gauge.

“The full potential effects of recent actions to ease social distancing policies, especially if robust containment measures have yet to be fully scaled up, may not be fully known for a few weeks due to the time periods between viral exposure, possible infection and full disease progression,” the report said.

COVID-19, the respiratory illness caused by the novel coronavirus, has already claimed nearly 81,000 lives in the United States, out of more than 1.36 million known infections, according to a Reuters tally.

The revised IHME model, frequently cited by the White House and other public health authorities, predicted that the cumulative U.S. death toll will climb to 147,040 by Aug. 4, up 9,856 from the institute’s previous update on Sunday.

A week earlier, the model had sharply increased the figure to nearly 135,000 deaths, almost double its April 29 forecast, citing steps in about 30 states to ease social-distancing requirements.

The clamor to reopen businesses ranging from restaurants to auto plants has only gained momentum since then as unemployment hit levels not seen since the Great Depression of the 1930s.

The projections are presented as a range, with the latest forecast – 147,00-plus deaths – representing the average between a best-case scenario of 102,783 lives lost and a worst-case scenario of 223,489 fatalities.

The forecasts have fluctuated over the past couple of months, with a projected death toll as low as 60,000 on April 18.

(Reporting by Steve Gorman in Los Angeles; Editing by Sandra Maler and Cynthia Osterman)

White House directs staff to wear masks after officials contract coronavirus

By Steve Holland and Jeff Mason

WASHINGTON (Reuters) – The White House on Monday directed all people entering the West Wing, where the daily operations of President Donald Trump’s administration are carried out, to wear masks after two aides tested positive for the coronavirus, administration officials said.

The new guidelines, released in a memo to the president’s staff on Monday afternoon, reflect a tightening of procedures at the highest levels of the U.S. government over fears that Trump and Vice President Mike Pence could be exposed to the virus.

Trump’s military valet and Pence’s press secretary both tested positive for the coronavirus last week.

The 73-year-old president said on Monday he did not think those cases suggested the White House system had broken down.

“I felt no vulnerability whatsoever,” Trump said, adding he felt the situation was controlled “very well.”

Still, the president said he would discuss maintaining some distance from Pence, perhaps by communicating with him by phone, for a period of time. Pence worked at the White House on Monday but did not attend a news conference held in the Rose Garden. Officials who attended wore masks, and speakers used a different podium from the one used by Trump.

ABC News first reported about the memo, which also said unnecessary visits from other parts of the White House complex to the West Wing area, which includes the Oval Office and workspace for senior advisers, are being discouraged.

Officials who work near the president have been getting tested for the coronavirus but previously had not been wearing masks on a regular basis.

“Common sense has finally prevailed,” one senior administration official told Reuters.

Trump has been resistant to wearing a mask himself and has not put one on in public, though he said he tried some on backstage during a visit to a mask factory in Arizona last week.

On Saturday he met the top leaders of the U.S. military, the Joint Chiefs of Staff, and members of his national security team in the White House Cabinet Room. The officials did not wear masks but had been tested for the virus in advance, a Pentagon spokesman said, adding that social distancing measures appeared to have been met. Secret Service agents in the room wore masks.

The president is in the age group that is considered high risk for complications with the coronavirus, which has killed more than 80,000 people in the United States alone and ravaged countries and economies worldwide.

Staff members including Jared Kushner, the president’s senior adviser and son-in-law, wore masks on White House grounds on Monday.

The White House said last week it was stepping up precautions for people who spend time around Trump and Pence, both of whom have resumed travel outside of Washington. The two men are being tested for the virus daily.

“In addition to social distancing, daily temperature checks and symptom histories, hand sanitizer, and regular deep cleaning of all work spaces, every staff member in close proximity to the president and vice president is being tested daily for COVID-19 as well as any guests,” White House spokesman Judd Deere said in a statement.

After Pence’s spokeswoman, Katie Miller, tested positive for the virus last week, Trump was asked whether people in the West Wing would begin to wear masks. He responded that people already were doing so. But he and his guests that day had not donned masks, and staff in the West Wing were not wearing them either.

Miller is married to Stephen Miller, a senior White House aide and speech writer for the president.

Some who had contact with Katie Miller have gone into partial quarantine. An administration official said Pence worked from the White House on Monday but would be maintaining distance from the president for the immediate future, in consultation with the White House medical unit.

“We can talk on the phone,” Trump said.

(Reporting by Steve Holland and Jeff Mason; additional reporting by Lisa Lambert, Diane Bartz and Phil Stewart; Editing by Rosalba O’Brien)

What you need to know about the coronavirus right now

(Reuters) – Here’s what you need to know about the coronavirus right now:

Trade deal in doubt?

U.S. President Donald Trump said he opposed renegotiating the “Phase 1” trade deal on Monday after Chinese-run state newspaper The Global Times reported some government advisers in Beijing were urging fresh talks.

Rising U.S.-China tensions over the coronavirus outbreak have cast the trade deal between the two countries, and proposed talks on a Phase 2 deal, into doubt.

The Global Times said that malicious attacks by the United States have ignited a “tsunami of anger” among Chinese trade insiders after China made compromises in the Phase 1 pact.

Dangerous calculation

WHO officials urged “extreme vigilance” on Monday as countries began to exit from lockdowns, stressing that early studies point to lower-than-expected antibody levels against the COVID-19 disease within the general population, meaning that most people remain susceptible.

Dr Mike Ryan, head of the WHO’s emergencies program warned countries that have “lax measures” in place to be wary of counting on herd immunity to halt the spread of COVID-19, saying: “This is a really dangerous, dangerous calculation.”

Economic boost

Once Australia removes most social distancing restrictions by July, its GDP will rise by $6.5 bln each month, Treasurer Josh Frydenberg was expected to tell lawmakers on Tuesday in a speech updating them on his budget planning.

Britain’s finance minister Rishi Sunak is similarly due to answer questions about the economic response to COVID-19 in parliament on Tuesday afternoon.

There, the focus is how Britain plans to continue the Coronavirus Job Retention Scheme, which is paying employers 80% of the wages of more than 6 million workers who are on temporary leave from businesses affected by the coronavirus. The scheme is due to run until the end of June.

Prime Minister Boris Johnson said on Monday that coronavirus infections had peaked, and that people who could not work from home should return to their workplaces if possible.

Testing 11 million in 10 days

The Chinese city of Wuhan, the epicenter of China’s coronavirus outbreak, plans to conduct nucleic acid testing over a period of 10 days, an internal document seen by Reuters showed and two sources familiar with the situation said, with every district told to submit a detailed testing plan by Tuesday.

The city of 11 million people reported its first cluster of new infections over the weekend after a months-long lockdown was lifted on April 8.

These plans come as the global alarm was sounded on Monday over a potential second wave of coronavirus infections after Germany reported that the reproduction rate of the pathogen had risen above 1.

Canceled Cannes

“It breaks my heart,” said Joseph Morpelli, leading member of the so-called ‘stepladder gang’ of ardent autograph-hunters and amateur paparazzi, as he stood across the street from the venue of the canceled Cannes Festival on Monday.

Usually, a hive of activity, the location where Morpelli and his fellow diehard fans could get a glimpse of celebrities walking down the red carpet is now deserted, as the film festival which was meant to start on Tuesday has been called off.

It was only the third time in its history that the festival has failed to take place. The two previous occasions were the outbreak of World War Two and 1968, when France was roiled by violent protests.

(Compiled by Karishma Singh)

‘Dengue kills too’ – Latin America faces two epidemics at once

By Oliver Griffin

BOGOTA (Reuters) – As the coronavirus kills thousands and dominates government attention across Latin America, another deadly viral infection is quietly stalking the region.

Dengue – colloquially called breakbone fever for the severe joint pain it causes – is endemic in much of Latin America, but COVID-19’s arrival has pulled crucial attention and resources away from the fight against it, doctors and officials say.

The Pan-American Health Organization (PAHO) expects 2020 to be marked by high rates of dengue, which can fill intensive care units and kill patients even absent the pressures of COVID-19, the respiratory disease caused by the novel coronavirus.

Around the world, COVID-19 has affected other diseases in different ways. Though in Europe measures to stop the coronavirus have banished seasonal flu, in Africa border closures have stopped transportation of measles vaccines and other supplies.

In Latin America, a dengue epidemic that started in late 2018 is still being felt. Dengue infections in the Americas surged to an all-time high of 3.1 million in 2019, with over 1,500 deaths in Latin America and the Caribbean, according to the PAHO.

Cases of the disease should begin to decline in the second half of the year, the organization said.

Spread by mosquitoes, dengue outbreaks typically occur three to five years after the previous epidemic.

And with four strains of dengue in circulation, people may catch it more than once, with second cases more likely to be severe.

“COVID is the star right now, so all of the attention is being put on COVID, but there are still problems with dengue,” said Doctor Jaime Gomez, who works at a hospital in Floridablanca, in Colombia’s Santander province.

Although dengue is not usually fatal and can be treated with painkillers, some sufferers deal with persistent symptoms like fatigue, weight loss, and depression that affect their ability to work. Severe dengue is treated with intravenous fluids and those who do not get tested are at risk of dangerous complications.

Such medical intervention cannot be given if patients stay home, worried about contracting the coronavirus, or if overcrowded hospitals have to turn them away.

With relatively few cases of COVID-19 in the province where he works, Gomez said his clinic had seen hospitalizations fall by half, as people were fearful of venturing outdoors.

‘SYSTEM HAS COLLAPSED’

Paraguayan lawyer Sonia Fernandez avoided seeking care when she and her two daughters, ages 11 and 8, got sick with dengue at the beginning of April.

“All three of us had dengue, we had all the symptoms, the pain, the rash, but we didn’t go to a clinic or a health center so as not to expose ourselves (to COVID-19),” Fernandez said.

All three have since recovered.

Dengue cases in Paraguay have exploded this year. In the first 18 weeks of 2020, the country reported 42,710 confirmed cases and 64 deaths, compared to 384 confirmed cases and six deaths in the year-earlier period.

In Ecuador, where the coronavirus outbreak has hit hard and hospitals in the largest city of Guayaquil been overwhelmed, an apparent fall in the number of dengue cases could mask other issues.

According to Ecuador’s health ministry, dengue cases peaked at 888 in the week ending March 14, two weeks after the country confirmed its first case of COVID-19. For the week of April 4, they fell to 257.

“Very clearly dengue is being under-reported,” said Esteban Ortiz, global health researcher at Quito’s University of the Americas.

“Cases haven’t decreased, the diagnosis of cases has decreased, which confirms the system has totally collapsed,” he added.

Ecuador’s health ministry said in a statement that the country was no more exposed to the double impact of COVID-19 and dengue than any other in the region, adding it has sufficient supplies to treat cases of the mosquito-borne disease.

Dengue has also spiked sharply in Central America. Cases in Costa Rica nearly tripled through May 1 compared with a year ago, to over 2,000.

“We are going through a difficult moment dealing with COVID-19 but unfortunately other diseases continue their cycle,” Rodrigo Marin, director of Costa Rica’s health surveillance agency, recently told journalists.

In Panama, where dengue has caused at least two deaths this year, Panama City health official Yamileth Lopez also sounded the alarm in an interview with Reuters.

“Dengue kills too,” she said.

(Reporting by Oliver Griffin; additional reporting by Daniela Desantis in Asuncion, Alexandra Valencia in Quito, Alvaro Murillo in San Jose and Elida Moreno in Panama City; Editing by Julia Symmes Cobb and Rosalba O’Brien)

More Americans return to work; concerns grow of a second virus wave

By Ben Klayman

DETROIT (Reuters) – Factory workers began returning to assembly lines in Michigan on Monday, paving the way for the reopening of the U.S. auto sector but stoking fears of a second wave of coronavirus infections as strict lockdowns are eased across the country.

With millions of Americans thrown out of work and economic activity cratering, a growing number of states are ending the tough restrictions that were put in place in March and April to slow the spread of the outbreak.

Some auto suppliers in Michigan, a Midwest industrial powerhouse hard hit by the pandemic and its economic fallout, reopened plants on Monday with skeleton crews to get ready for the planned May 18 restart of auto production.

“We’re starting up our foundry this week in anticipation of the orders coming in next week,” Joe Perkins, chief executive of Busche Performance Group, an engineering, casting and machining firm, said in a telephone interview. Busche had been making parts for non-auto customers deemed essential, such as Deere & Co and Emerson Electric Co, but is now firing up its furnaces for auto customers and training employees on how to be safe during the pandemic.

Detroit’s Big Three automakers – General Motors Co, Ford Motor Co and Fiat Chrysler Automobiles NV – have said they plan to restart vehicle production at their North American plants on May 18.

The auto sector accounts for 6% of U.S. economic output and employs more than 835,000 Americans. The government of Mexico, another important link in North America’s automobile production chain, is expected to make an announcement this week regarding its plans for the industry.

Overall, more than 80,000 Americans have died in the pandemic out of more than 1.34 million known U.S. infections tallied since Jan. 20, according to a Reuters tally. Michigan has counted more than 4,500 deaths related to COVID-19, the respiratory illness caused by the coronavirus, ranking fourth among the 50 U.S. states.

In Ohio, another highly industrial state, the vast majority of retail shops can start serving customers on Tuesday.

Even New York, the epicenter of the U.S. crisis, was set to relax social distancing measures by week’s end in some parts of the state outside Greater New York City.

NEW YORK PHASE-IN

New York Governor Andrew Cuomo said he expected several parts of the state to begin a phased-in reopening as soon as this weekend after his stay-at-home order expires on May 15.

Certain low-risk businesses and activities like landscaping, tennis courts and drive-in theaters will open, Cuomo told a news conference. “We took the worst situation in the nation and changed the trajectory,” he said.

Rural parts of New York will begin to emerge from the statewide lockdown first. But New York City and its suburbs still must clear some formidable hurdles, including forging a safety plan for its regional subway and commuter rail system.

New York City Mayor Bill de Blasio said restrictions for non-essential businesses may relax next month.

Nearly all of the 50 states have begun loosening restrictions on daily business and social life under growing economic pressure. The pandemic has put more Americans out of work than any time since the Great Depression of the 1930s and prompted the U.S. Congress to pass trillions of dollars in emergency aid for workers and businesses.

Republican President Donald Trump, criticized by Democrats for his playing down and mishandling the outbreak, has been pushing for the reopening of the economy, which is seen as key to his chances of re-election in the Nov. 3 election.

In a Monday tweet, Trump again accused Democrats of taking their time lifting restrictions to embarrass him, a charge they have previously denied.

Public health experts have warned that moving too quickly to reopen, without vastly expanded diagnostic testing and other precautions firmly in place, risks fueling a resurgence of the virus. Polling shows a majority of Americans also concerned.

A surge of new infections in Germany and South Korea, both of which had been praised for acting aggressively after the outbreak spread from China early this year, suggested early efforts to lift restrictions could be premature.

Trump and officials from his administration scheduled a 4 p.m. (2000 GMT) news briefing on Monday to discuss testing.

The White House has directed staff to wear masks at all times in the building, except when they are at their own desks, a senior administration official said on Monday. Trump’s valet and Vice President Mike Pence’s press secretary both tested positive for the coronavirus last week.

(Reporting by Ben Klayman in Detroit, Maria Caspani in New York, Doina Chiacu and Lisa Lamber in Washington and Nathan Layne in Wilton, Connecticut; Writing by Steve Gorman and Paul Simao; Editing by Howard Goller)

U.S. CDC reports 1,300,696 coronavirus cases, 78,771 deaths

(Reuters) – The U.S. Centers for Disease Control and Prevention (CDC) on Sunday reported 1,300,696 cases of the new coronavirus, an increase of 26,660 cases from its previous count, and said the number of deaths had risen by 1,737 to 78,771.

The CDC reported its tally of cases of the respiratory illness known as COVID-19, caused by the new coronavirus, as of 4 p.m. ET on May 9, compared with its count a day earlier.

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

(Reporting by Maria Ponnezhath in Bengaluru; Editing by Daniel Wallis)

Rare syndrome tied to COVID-19 kills three children in New York, Cuomo says

By Nathan Layne

(Reuters) – Three children in New York have died from a rare inflammatory syndrome believed to be linked to the novel coronavirus, Governor Andrew Cuomo said on Saturday, a development that may augur a pandemic risk for the very young.

Both Cuomo and his counterpart in the neighboring state of New Jersey also spoke on Saturday about the pandemic’s growing toll on mental health, another factor on the minds of governors as they weigh the impact of mounting job losses against health risks in moving to loosen restrictions on daily life.

Nearly all of the 50 U.S. states will have taken steps to relax lockdown measures by this weekend, including states like Arizona and Mississippi, which are reporting increasing infections of COVID-19, the disease caused by the virus, highlighting the risk of a new wave of outbreaks.

Cuomo told a daily briefing that he was increasingly worried about a syndrome that shares symptoms with toxic shock and Kawasaki disease, which he said included inflammation of the blood vessels and potentially fatal damage to the heart.

He said three children – including a five-year old disclosed on Friday – have died from such symptoms while also testing positive for COVID-19 or related antibodies, suggesting a link that was still not fully understood.

Cuomo, who has emerged as a leading national voice on states’ response to the coronavirus crisis, said state health officials were reviewing 73 similar cases, which have rattled a prior assumption that children were largely not susceptible to the novel coronavirus.

“We are not so sure that is the fact anymore. Toddler, elementary school children are presenting symptoms similar to Kawasaki disease or toxic shock-like syndrome,” Cuomo said. “It’s very possible that this has been going on for several weeks and it hasn’t been diagnosed as related to COVID.”

Cuomo said state health officials had partnered with the New York Genome Center and the Rockefeller University to look at whether there is a genetic basis for the syndrome and have been asked by the federal Centers for Disease Control and Prevention to develop national criteria for identifying and treating cases.

The syndrome shares symptoms with toxic shock and Kawasaki disease, which is associated with fever, skin rashes, swelling of the glands, and in severe cases, inflammation of arteries of the heart. Scientists are still trying to determine whether the syndrome is linked with the new coronavirus because not all children with it have tested positive for the virus.

At a separate briefing, New Jersey Governor Phil Murphy said the death of a four-year old disclosed on Friday was not related to the syndrome. “This is a very specific situation with this blessed little kid and we are going to leave it at that.”

‘TOXIC MIX’

New York and New Jersey are at the epicenter of the pandemic in the United States, accounting for nearly half of the 77,737 American deaths from COVID-19, according to a Reuters tally, and the two states have among the strictest lockdown rules still in place.

They are also at the center of a devastating economic toll underscored in government data released on Friday showing the U.S. unemployment rate rose to 14.7% last month, up from 3.5% in February and shattering the post-World War Two record of 10.8% set in November 1982.

Cuomo said his state has seen increasing reports of mental health issues, substance abuse and domestic violence, all tied to the economic stress and isolation of the lockdowns.

On Friday a study released by the Well Being Trust and the American Academy of Family Physicians estimated an additional 75,000 people could lose their lives to suicide, drugs and other contributors to “deaths of despair” stemming from the crisis.

Murphy echoed those concerns.

“The cure for the health crisis is keeping people isolated,” Murphy told his briefing. “You add to that job loss, small businesses that have been crushed. It’s a toxic mix.”

Cuomo said 226 New Yorkers died from COVID-19 on Friday, up from 216 a day earlier, but less than half the levels recorded two weeks ago. He said hospitalizations and intubations continued their downward trend, further evidence the state has gained a measure of control over the virus.

Murphy said an additional 166 residents of his state had died over the past 24 hours from COVID-19, bringing its total fatalities to 9,116, while total cases rose by 1,759 to 137,085.

On a positive note, Murphy said the number of people hospitalized for the disease continued to fall, with the 422 patients discharged over the past 24 hours outpacing the 364 newly admitted for treatment.

Yet Murphy warned against complacency and said his constituents should continue to practice social distancing.

“We are not out of the woods, folks. Let’s not forget that,” he said.

(Reporting by Nathan Layne in Wilton, Connecticut; Editing by Daniel Wallis and Dan Grebler)

No plans to separate Trump, Pence despite White House coronavirus cases: source

WASHINGTON (Reuters) – The Trump administration has no plans to keep President Donald Trump and Vice President Mike Pence apart, a person familiar with the matter said on Sunday, as concerns rise about the spread of the coronavirus within the White House.

The New York Times first reported the lack of plans to keep Trump and Pence separated despite concern they both could be incapacitated by the disease, citing two senior administration officials.

The White House did not respond to a request for comment.

Two coronavirus cases in the White House last week spurred fears of contagion for the president and vice president, who are leading the U.S. response to the pandemic, and who have both resumed travel and business schedules even as the U.S. death toll from the virus nears 80,000.

Pence’s press secretary, Katie Miller, the wife of Trump’s senior adviser, Stephen Miller, tested positive for the coronavirus a day after confirmation that Trump’s personal valet had been diagnosed with the disease.

White House Press Secretary Kayleigh McEnany sought on Friday to defend administration efforts to protect Trump and Pence, pointing to new measures taken by the White House including contact tracing and putting in place all guidelines recommended for essential workers.

The White House has also instituted daily coronavirus tests for Trump and Pence.

Anthony Fauci, a high-profile member of the White House coronavirus response team, Robert Redfield, director of the U.S. Centers for Disease Control and Prevention, and U.S. Food and Drug Administration Commissioner Stephen Hahn, were in self-quarantine on Saturday after coming into contact with someone who had tested positive for the disease.

If Republicans Trump and Pence were both to become incapacitated, Democratic House of Representatives Speaker Nancy Pelosi would assume presidential duties under U.S. law.

Last month, British Prime Minister Boris Johnson was admitted to an intensive care unit after becoming the first leader of a major power to announce he had tested positive for the highly contagious respiratory virus. Foreign Secretary Dominic Raab deputized for Johnson during his convalescence.

(Reporting by Alexandra Alper; Editing by Peter Cooney)

Germany surge sounds coronavirus alarm as world takes steps to reopen

By Douglas Busvine and Michel Rose

BERLIN/PARIS (Reuters) – Germany reported on Monday that new coronavirus infections were accelerating exponentially after early steps to ease its lockdown, news that sounded a global alarm even as businesses opened from Paris hair salons to Shanghai Disneyland.

Germany’s Robert Koch Institute reported that the “reproduction rate” – the number of people each person infected with the coronavirus goes on to infect – had risen to 1.1. Any rate above 1 means the virus is spreading exponentially.

German authorities had taken early steps to ease lockdown measures just days earlier, a stark illustration that progress can swiftly be reversed even in a country with one of the best records in Europe of containing the virus so far.

It follows a new outbreak in night clubs in South Korea, another country that had succeeded in limiting infections.

Governments around the world are struggling with the question of how to reopen their economies while still containing the coronavirus. In Europe, the world’s worst-hit continent, Spain and France began major steps to ease lockdowns, while Britain announced more cautious moves.

Traffic flowed along the Champs Elysees in Paris, a giant tricolor flag billowing under the Arc de Triomphe, as workers cleaned shop-front windows to reopen.

“Everyone’s a little bit nervous. Wow! We don’t know where we’re headed but we’re off,” said Marc Mauny, a hairstylist who opened his salon in western France at the stroke of midnight when new rules took effect.

Mickey Mouse welcomed thinned-out crowds in Shanghai, the first Disney theme park to re-open, with a strict limit on the number of tickets. Parades and fireworks were canceled, and workers and guests were required to wear face masks and have their temperatures screened at the entrance.

“I think (these measures) make tourists feel at ease,” said Kay Yu, a 29-year-old pass holder wearing a Minnie Mouse hat, who said he had woken up at 4 a.m. to make the trip to the park.

“IT’S NOT OVER UNTIL IT’S OVER”

A German health ministry spokesman said the authorities were taking the rise in the infection rate seriously and it did not mean the outbreak was out of control.

Karl Lauterbach, a Social Democrat lawmaker and professor of epidemiology, had warned that the virus could start spreading again quickly after seeing large crowds outside on Saturday in his home city of Cologne.

“It has to be expected that the R rate will go over 1 and we will return to exponential growth,” Lauterbach said in a tweet. “The loosening measures were far too poorly prepared.”

In South Korea, which largely avoided a lockdown by implementing a massive testing and contact-tracing program early on, authorities were rushing to contain a new outbreak traced to night clubs.

“It’s not over until it’s over. While keeping enhanced alertness till the end, we must never lower our guard regarding epidemic prevention,” President Moon Jae-In said on Sunday.

New Zealand, which had success in fighting infection with one of the toughest and earliest lockdowns, said it would open malls, cafes, and cinemas this week.

“The upshot is that in 10 days’ time we will have reopened most businesses in New Zealand, and sooner than many other countries around the world,” Prime Minister Jacinda Ardern told a news conference. “But that fits with our plan – go hard, go early – so we can get our economy moving again sooner.”

But some of the countries and territories that were taking steps to open up their economies were acting without yet reporting sustained falls in the spread.

India, which has locked down its population of 1.3 billion people since March, reported a record daily rise in cases. But it said it would begin to restart passenger railway services, with 15 special trains, from Tuesday.

Russia, where the death toll is still comparatively low but the caseload surging, overtook Italy and Britain to report the highest number of cases after the United States and Spain.

In the United States, where unemployment figures released last week were the worst since the Great Depression, President Donald Trump has been trying to shift the emphasis towards reopening the economy. Many states have begun loosening restrictions even though cases continue to rise.

While economies around the world are facing the worst contraction in living memory, stock markets have surged since the start of April, fuelled by unprecedented injections of cash from central banks. That has created unease that financial markets are out of whack with the economies they reflect.

There were signs of a shift in sentiment on Monday, with stock markets giving up their early gains.

“Since late March there has been an extraordinary divergence between the real economy and financial risk, with the latter helped by unprecedented policy accommodation,” said Alan Ruskin, head of G10 foreign exchange trading at Deutsche Bank.

(Reporting by Reuters bureaux, Writing by Peter Graff, Editing by Timothy Heritage)

As U.S. meat workers fall sick and supplies dwindle, exports to China soar

By Tom Polansek

CHICAGO (Reuters) – U.S. President Donald Trump ordered meat processing plants to stay open to protect the nation’s food supply even as workers got sick and died. Yet the plants have increasingly been exporting to China while U.S. consumers face shortages, a Reuters analysis of government data showed.

Trump, who is in an acrimonious public dispute with Beijing over its handling of the coronavirus outbreak, invoked the 1950 Defense Production Act on April 28 to keep plants open. Now he is facing criticism from some lawmakers, consumers and plant employees for putting workers at risk in part to help ensure China’s meat supply.

“We know that over time exports are critically important. I think we need to focus on meeting domestic demand at this point,” said Mike Naig, the agriculture secretary in the top U.S. pork-producing state of Iowa who supported Trump’s order.

Processors including Smithfield Foods, owned by China’s WH Group Ltd, Brazilian-owned JBS USA [JBS.UL] and Tyson Foods Inc temporarily closed about 20 U.S. meat plants as the virus infected thousands of employees, prompting meatpackers and grocers to warn of shortages. Some plants have resumed limited operations as workers afraid of getting sick stay home.

The disruptions mean consumers could see 30% less meat in supermarkets by the end of May, at prices 20% higher than last year, according to Will Sawyer, lead economist at agricultural lender CoBank.

While pork supplies tightened as the number of pigs slaughtered each day plunged by about 40% since mid-March, shipments of American pork to China more than quadrupled over the same period, according to U.S. Department of Agriculture data. https://tmsnrt.rs/2YLF1XN

Smithfield, which China’s WH Group bought for $4.7 billion in 2013, was the biggest U.S. exporter to China from January to March, according to Panjiva, a division of S&P Global Market Intelligence. Smithfield shipped at least 13,680 tonnes by sea in March, Panjiva said, citing its most recent data.

Smithfield, the world’s biggest pork processor, said in April that U.S. plant closures were pushing retailers “perilously close to the edge” on supplies.

The company is now retooling its namesake pork plant in Smithfield, Virginia, to supply fresh pork, bacon and ham to more U.S. consumers, according to a statement. The move is an about-face after the company reconfigured the plant last year to process hog carcasses for the Chinese market, employees, local officials and industry sources told Reuters.

The Virginia facility currently serves export markets like China and domestic customers, according to Smithfield. Most U.S. pork processors routinely export products to more than 40 international markets, company spokeswoman Keira Lombardo said.

The virus infected about 850 employees at another Smithfield pork plant in Sioux Falls, South Dakota. Across the U.S. industry, about 5,000 infections and 20 deaths occurred, according to the U.S. Centers for Disease Control and Prevention.

“That tragic outcome is all the worse when the food being processed is not going to our nation’s families,” said U.S. Representative Rosa DeLauro, a Democrat from Connecticut. “That is what the Defense Production Act is all about: protecting America’s national interests, not China’s.”

Pork processor Fresh Mark resumed making bacon and ham for global customers at a Salem, Ohio, plant it shut in April over coronavirus cases.

“If we start having a shortage in America, I think it should stay here,” said Bruce Fatherly, a maintenance worker at the plant and member of the Retail, Wholesale and Department Store Union.

Fresh Mark said exports are a small part of its business.

WHOLE HOGS

The supply concerns could not have been foreseen when Trump signed a deal in January to ease a trade war he started with Beijing two years earlier. China promised to increase purchases of U.S. farm goods by at least $12.5 billion in 2020 and $19.5 billion in 2021, over the 2017 level of $24 billion.

The White House declined to comment. The USDA and U.S. Trade Representative’s office did not respond to requests for comment.

China increased its purchases because of its dire need for protein after a pig disease called African swine fever led to the death of half the country’s herd over the past two years. Beijing lifted a nearly five-year ban on U.S. chicken imports in November and also waived retaliatory tariffs on meat shipments to help boost supplies.

Year-to-date, about 31% of U.S. pork has been exported, totaling about 838,000 tonnes, according to the U.S. Meat Export Federation. One-third of that volume went to China, accounting for more than 10% of total first-quarter production, the industry group said.

Carcasses, which include most of the pig, were the top product shipped to China in January and February, according to USDA. Loads also include feet and organs that many Americans do not eat.

Exports to China set a record for the period from January to March, and shipments to all destinations in March set a record for any month, according to USDA.

JBS, which produces pork, beef and chicken, told Reuters it reduced exports to focus on meeting U.S. demand during the pandemic. About 280 employees at a JBS beef plant in Greeley, Colorado, have been infected with the virus, and seven died, union officials said.

“I think we need to take care of our country and our needs first,” said Kim Cordova, president of the local United Food and Commercial Workers International Union that represents plant employees.

Tyson Foods did not respond to requests for comment about exports.

Suppliers like Tyson have limited meat products for retailers because of plant closures. Kroger Co and Costco Wholesale Corp, meanwhile, restricted shoppers’ meat purchases.

U.S. farmers, who struggled financially during the trade war with Beijing, say they still need importing countries, including China, to buy their pork. Prior to the pandemic, they grappled with an oversupply of hogs.

“There’s enough meat for all channels if we could get these plants back up and rolling,” said Brian Duncan, a hog farmer and vice president of the Illinois Farm Bureau.

(Additional reporting by Karl Plume in Chicago and Dominique Patton in Beijing; editing by Caroline Stauffer and Edward Tobin)