Pound slips below $1.25 on disappointing growth data

By Maiya Keidan

LONDON (Reuters) – Sterling fell below $1.25 on Tuesday for the first time in a week and reached a 14-day low against the euro after data showed Britain’s economy was recovering more slowly than forecast.

Gross domestic product rose by 1.8% in May after falling by a record 20.8% in April, the Office for National Statistics said, well below forecasts in a Reuters poll.

“You saw sterling moving lower almost immediately after the announcement and it was a big disappointment and I think that it’s also the realization that maybe the V-shaped recovery doesn’t apply to the UK to the same extent,” said Morten Lund, an analyst at Nordea.

Adding to fears was a warning from authorities that another, more deadly COVID-19 wave could kill up to 120,000 Britons over the winter.

The pound touched a low of $1.2485, down 0.5% on the day. It slipped 0.7% to the euro at 91.03 pence.

Broad dollar weakness has allowed sterling to gain around 0.7% versus the greenback this month but against the euro it has lost 0.5% since the start of July.

Consumer data also indicated a tentative recovery. The British Retail Consortium said retail sales values rose by 3.4% in annual terms in June, and Barclaycard said overall consumer spending fell 14.5% in annual terms in June, the smallest decline since lockdown began.

Money markets price in the Bank of England’s cutting rates below 0% only next March. But government two-year bond yields plumbed a record low around minus 0.16% and 10-year yields slipped 2.5 basis points to 0.14%.

FTSE mid-cap shares, which tend to be mostly domestically oriented, fell 1.6% versus a 0.6% decline for the exporter-laden FTSE100.

Investors are also waiting for more news on Britain’s negotiations with the European Union on concluding a trade deal for the post-Brexit period. Britain left the bloc on Jan. 31, with a one-year transition period to iron out a future relationship.

“My feeling is the market is not fully pricing in the likelihood of a hard Brexit,” said Colin Asher at Mizuho.

“There has been very little progress on negotiations and even if there is a deal, there’s not much time to put a lot in it.”

(Reporting by Maiya Keidan, editing by Larry King and Ed Osmond)

3M, MIT partner to make rapid COVID-19 antigen test

By Carl O’Donnell

(Reuters) – U.S. industrial conglomerate 3M Co has partnered with the Massachusetts Institute of Technology to develop a rapid antigen test for COVID-19, the company said on Tuesday.

The test would produce results within minutes and could be administered on a low-cost, paper-based device, similar to a home pregnancy test, that could be delivered at the point of care.

“We are seeking to improve the speed, accessibility and affordability of testing for the virus, a major step in helping to prevent its spread,” said John Banovetz, the chief technology officer at 3M.

The research effort is being aided by a grant from the National Institutes of Health, which is running a project called Rapid Acceleration of Diagnostics (RADx) that funds the development of new testing technologies in academia and business.

The program aims to have the new tests available for use by late summer or early fall.

Antigen tests scan for proteins that can be found on or inside a virus. They can detect the virus very quickly and can potentially be produced at a lower cost than other tests.

3M says it could scale manufacturing to millions of tests per day once it is developed.

(Reporting by Carl O’Donnell; Editing by Leslie Adler)

What you need to know about the coronavirus right now

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

Restrictions reimposed across Asia-Pacific region

From Melbourne to Manila, Hong Kong and India’s tech capital Bengaluru, lockdowns and strict social distancing restrictions are being reimposed across the Asia-Pacific after a surge in new coronavirus cases fanned fears of a second wave of infections.

Many parts of Asia, the region first hit by the coronavirus that emerged in central China late last year, are finding cause to pause the reopening of their economies, some after winning praise for their initial responses to the outbreak.

The number of coronavirus infections around the world hit 13 million on Monday, according to a Reuters tally, climbing by a million in just five days. Reuters’ global tally, which is based on government reports, shows COVID-19 accelerating fastest in Latin America, the number of deaths there exceeding the figure for North America for the first time on Monday.

Shutdown in California

California’s governor on Monday clamped new restrictions on businesses as coronavirus cases and hospitalizations soared, and the state’s two largest school districts, in Los Angeles and San Diego, said children would be made to stay home in August.

Governor Gavin Newsom, a Democrat, ordered bars closed and restaurants, movie theaters, zoos and museums across the nation’s most populous state to cease indoor operations. Gyms, churches and hair salons must close in the 30 hardest-hit counties.

“It’s incumbent upon all of us to recognize soberly that COVID-19 is not going away any time soon, until there is a vaccine and/or an effective therapy,” Newsom said at a news briefing.

The decision to cancel in-person classes puts the districts at odds with U.S. President Donald Trump, who has said he might withhold federal funding or remove tax-exempt status from school systems that refuse to reopen.

‘Worst-case’ winter toll

Britain faces a potentially more deadly second wave of COVID-19 in the coming winter that could kill up to 120,000 people over nine months in a worst-case scenario, health experts said on Tuesday.

With COVID-19 more likely to spread in winter as people spend more time together in enclosed spaces, a second wave of the pandemic “could be more serious than the one we’ve just been through,” said Stephen Holgate, a professor and co-lead author of a report by Britain’s Academy of Medical Sciences.

“This is not a prediction, but it is a possibility,” Holgate told an online briefing. “Deaths could be higher with a new wave of COVID-19 this winter, but the risk of this happening could be reduced if we take action immediately.”

The United Kingdom’s current death toll from confirmed cases of COVID-19 is around 45,000, the highest in Europe.

Good news from hard-hit Belgium

Belgium, which has reined in the coronavirus after becoming the worst-hit mid-sized country in the world, reported zero new coronavirus-related deaths in 24 hours on Tuesday for the first time since March 10.

As in many European countries that were hard-hit by the pandemic in March and April, Belgium sharply reduced infections by imposing a lockdown, which is now being lifted.

The total number of deaths reported by the national public health institute Sciensano remained at 9,787. In the country of 11.5 million people, that works out to around 850 deaths per million, the worst in the world apart from the tiny city state of San Marino. The peak daily death toll was 343 on April 12.

Bastille Day with a difference

France held a scaled-down annual Bastille Day celebration on Tuesday, with none of the usual tanks and troops parading down Paris’s Champs Elysees avenue, in a concession to the COVID-19 epidemic still stalking Europe.

Instead, President Emmanuel Macron, standing in the back of a military jeep, reviewed ranks of socially-distanced troops on the Place de la Concorde square after a flypast by military aircraft.

“I wish, with all the French, with the armies themselves, to pay a vibrant tribute to health workers and those who, in all sectors, have enabled public, social and economic life to continue,” Macron said in message released ahead of the parade.

(Compiled by Linda Noakes and Karishma Singh; editing by Emelia Sithole-Matarise)

Climate change, COVID-19 stoke wildfire’s economic risk, Fed says

(Reuters) – Wildfires threaten the economy of the western United States to a greater extent than the rest of the country, and the coronavirus pandemic and climate change will only make that worse, according to research from the San Francisco Fed on Monday.

Some 52% of economic output in Arizona, California, Idaho, Nevada, Oregon, Utah, and Washington originates in counties with elevated wildfire hazard, putting the economies of the region in jeopardy as wildfires become more frequent and more destructive, the researchers found. By 2040 that proportion will have risen to 56%, they estimate. By comparison, about 25% to 30% of the Southeast’s economy faces elevated wildfire risk.

The states together account for a bit more than one-fifth of U.S. economic output.

“The portion of real output produced in (the counties of these states) with elevated exposure increases from $2.1 trillion in 2018 to $4.0 trillion in 2040 in the baseline scenario,” the researchers wrote in the regional Fed’s latest Economic Letter. The economic output under particular wildfire threat rises to $4.4 trillion under a more severe climate change scenario, they said.

Wildfire risk is a combination of the likelihood of a big fire happening – which climate scientists have shown has been rising as the planet warms – and the economic destruction, in terms of lives and livelihoods destroyed that it could cause.

The coronavirus pandemic is increasing the latter risk because the fiscal pinch to states and local governments from the drop in sales tax and other revenue means cuts to wildfire suppression and prevention spending, the researchers said.

(Reporting by Ann Saphir; Editing by Tom Brown)

Global coronavirus cases rise above 13 million, WHO sounds alarm

By Gayle Issa

(Reuters) – Coronavirus infections rose above 13 million across the world on Monday, according to a Reuters tally, climbing by one million in just five days in a pandemic that has killed more than half a million people.

World Health Organization chief Tedros Adhanom Ghebreyesus said there would be no return to the old normal for the foreseeable future, with too many countries headed in the wrong direction.

“The virus remains public enemy number one,” he told a virtual briefing from WHO headquarters in Geneva.

“If basics are not followed, the only way this pandemic is going to go, it is going to get worse and worse and worse. But it does not have to be this way.”

The Reuters global tally, which is based on government reports, shows the disease is accelerating the fastest in Latin America. The Americas account for more than half the world’s infections and half the deaths.

Parts of the world, especially the United States with more than 3.3 million confirmed cases, are still seeing huge increases in a first wave of COVID-19 infections, while others “flatten the curve” and ease lockdowns.

Some places, such as the Australian city of Melbourne and Leicester in England, are implementing a second round of shutdowns. Chinese-ruled Hong Kong, albeit with a low 1,522 cases, is to tighten social distancing measures again amid growing worries about a third wave.

The United States reported a daily global record of 69,070 new infections on July 10. In Brazil, 1.86 million people have tested positive, including President Jair Bolsonaro, and more than 72,000 people have died.

The U.S. state of Florida reported a record increase of more than 15,000 new cases in 24 hours on Sunday, more than South Korea’s total since the disease was first identified at the end of last year. Florida tallied 12,624 new cases on Monday.

Coronavirus infections were rising in about 40 U.S. states, according to a Reuters analysis of cases for the past two weeks compared with the prior two weeks.

Yet U.S. President Donald Trump and White House officials have repeatedly said the disease is under control and that schools must reopen in the autumn.

“The president and his administration are messing with the health of our children,” House Speaker Nancy Pelosi said on CNN’s “State of the Union” program.

“We all want our children to go back to school, parents do and children do. But they must go back safely.”

STAY AT HOME

Hungary has imposed new restrictions on cross-border travel as of next Wednesday in order to prevent the spread of the coronavirus after a surge in new cases in several countries, Prime Minister Viktor Orban’s chief of staff said on Sunday.

The leader of the Spanish region of Catalonia called on residents of an area that has seen a surge in coronavirus cases to stay at home despite a ruling by a judge who threw out a mandatory lockdown order for the district of 160,000 people.

Spain, which has been one of the European countries worst hit by the coronavirus, lifted nationwide confinement last month, when the pandemic seemed to have come under control.

Since the first cases were reported in China around the new year, it took three months to reach one million cases. It has taken just five days to climb to 13 million cases from 12 million recorded on July 8.

India, the country with the third-highest number of infections, has been contending with an average of 23,000 new infections each day since the beginning of July.

In countries with limited testing capacity, case numbers reflect only a smaller proportion of total infections. Experts say official data likely under-represents both infections and deaths.

(Reporting by Gayle Issa, Stephanie Nebehay, Michael Shields and Silke Koltrowitz, Writing by Nick Macfie, Editing by Angus MacSwan and Peter Graff)

Disney to shut Hong Kong Disneyland again as coronavirus cases rise

By Helen Coster

(Reuters) – Walt Disney Co. is temporarily closing its Hong Kong Disneyland theme park from July 15 amid rising coronavirus cases in the Chinese-ruled city, the company said Monday.

The announcement came two days after Disney reopened its biggest resort, Walt Disney World in Orlando, Florida, as coronavirus cases surged in the state.

“As required by the government and health authorities in line with prevention efforts taking place across Hong Kong, Hong Kong Disneyland park will temporarily close from July 15,” a Disney spokeswoman said in a statement.

The Hong Kong Disneyland Resort hotels will remain open with adjusted services. They have put in place enhanced health and safety measures, the company said.

Hong Kong recorded 52 new cases of coronavirus on Monday, including 41 that were locally transmitted, according to health authorities. Since late January, Hong Kong has reported 1,522 cases and local media reported an eighth death on Monday.

Hong Kong is tightening social distancing measures amid growing worries about a third wave of coronavirus infections. The government will limit group gatherings to four people – from 50 – a measure last seen during a second wave of the outbreak in March.

Hong Kong Disneyland reopened in June. Hong Kong Tokyo reopened in July; Disneyland Shanghai reopened in May.

Disney’s reopening of its parks in Asia helped provide assurance about moving ahead in Florida, Josh D’Amaro, chairman of Disney’s parks, experiences and products division told Reuters in an interview on Saturday.

Florida has emerged as an epicenter of COVID-19 infections. Over the past two weeks, the state reported 109,000 new coronavirus cases, more than any other U.S. state.

(Reporting by Helen Coster in New York. Additional reporting by Lisa Richwine in Los Angeles, Editing by Nick Zieminski)

Coronavirus crisis may get ‘worse and worse and worse’, warns WHO

GENEVA (Reuters) – The raging coronavirus pandemic has the potential to get far worse if all nations do not adhere to basic healthcare precautions, the World Health Organization (WHO) warned on Monday.

“Let me be blunt, too many countries are headed in the wrong direction, the virus remains public enemy number one,” Director General Tedros Adhanom Ghebreyesus told a virtual briefing from WHO headquarters in Geneva.

“If basics are not followed, the only way this pandemic is going to go, it is going to get worse and worse and worse. But it does not have to be this way.”

Infections rose above 13 million across the world on Monday, according to a Reuters tally, climbing by one million in just five days in a pandemic that has killed more than half a million people.

(Reporting by Stephanie Nebehay, Michael Shields and Silke Koltrowitz; Editing by Andrew Cawthorne)

Florida sets one-day record with over 15,000 new COVID cases, more than most countries

By Lisa Shumaker

(Reuters) – Florida reported a record increase of more than 15,000 new cases of COVID-19 in 24 hours on Sunday, as the Trump administration renewed its push for schools to reopen and anti-mask protests were planned in Michigan and Missouri.

If Florida were a country, it would rank fourth in the world for the most new cases in a day behind the United States, Brazil and India, according to a Reuters analysis.

Florida’s daily increases in cases have already surpassed the highest daily tally reported by any European country during the height of the pandemic there. It has also broken New York state’s record of 12,847 new cases on April 10 when it was the epicenter of the U.S. outbreak.

The latest rise was reported a day after Walt Disney World in Orlando reopened with a limited number of guests who were welcomed with a host of safety measures, including masks and temperature checks.

Anti-mask activists in several states, including Florida and Michigan, have organized protests against local mandates, arguing that the measures infringe upon individual freedom.

Coronavirus infections are rising in about 40 states, according to a Reuters analysis of cases for the past two weeks compared with the prior two weeks. Nationally, the United States has broken global records by registering about 60,000 new cases a day for the last four days in a row, according to a Reuters tally. Hospitalizations and positive test rates are also rising in Arizona, California, Florida and Texas.

Florida reported a record amount of testing, with nearly 143,000 results announced on Sunday compared with an average of 68,000 for the prior seven days.

TRUMP DONS MASK

Facing a battered economy as he seeks re-election in November, President Donald Trump has pressured states to reopen shuttered businesses and schools.

Education Secretary Betsy DeVos said on Sunday that her department did not have its own safe reopening plans to promote, and each school district and state must devise their own plans based on their local coronavirus infection rates.

Health officials have pleaded with the public to wear masks to limit the spread of the virus, but the issue has become politically divisive in the United States unlike many other countries that have seen far lower rates of infection and death.

Seven months into the pandemic, Trump wore a mask for the first time in public when he visited a Washington D.C.-area military medical center on Saturday. He had previously refused to wear a mask in public or ask Americans to wear face coverings, saying it was a personal choice.

Many Americans still refuse to wear a mask, which health experts say help stop transmission of the virus that has killed more than 134,000 Americans.

Anti-mask activists organized a protest on Saturday at a grilled cheese restaurant and bar in Windermere, Florida, which is in Orange County about 12 miles (19 km) from Walt Disney World.

The restaurant, 33 & Melt, has become a focal point of tension after owner Carrie Hudson said she was not requiring customers to wear masks. County officials have mandated the use of masks in public since June 20.

During Saturday’s protest, no customers wore face coverings inside the restaurant. Agents from the state’s Division of Alcoholic Beverages and Tobacco arrived during the rally and served Hudson with a warning, according to a video.

“This is a virus that is very well contained,” said one of the demonstrators, anti-mask activist Tara Hill. “Everyone is responsible for their own health care decisions … We want our choices respected as well.”

In addition to a record 15,000 new cases on Sunday, more than four dozen hospitals in Florida reported that their intensive care units are full due to a surge in COVID-19 patients.

Hundreds were expected to attend a demonstration at the Michigan state capitol on Sunday afternoon, according to a Facebook event, to protest against Governor Gretchen Whitmer’s order that everyone must wear a mask in public, except when outdoors and able to maintain social distance.

Protesters were also planning to gather outside city hall in Springfield, Missouri on Monday, where the city council was due to vote on a mask mandate in response to rising cases and a more than fourfold increase in Greene County’s COVID-19 hospitalizations in the last month.

(Reporting by Gabriella Borters in New York and Octavio Jones in Windermere, Florida; Writing by Lisa Shumaker; Editing by Daniel Wallis)

New U.S. health crisis looms as patients without COVID-19 delay care

By Sharon Bernstein

(Reuters) – A Texas man who waited until his brain tumor was softball-sized; a baby who suffered an ear infection for six days; a heart patient who died: The resurgence of COVID-19 is creating another health crisis as hospitals fill and patients are fearful or unable to get non-emergency care.

With U.S. coronavirus infections reaching new heights, doctors and hospitals say they are also seeing sharp declines in patients seeking routine medical care and screenings – and a rise in those who have delayed care for so long they are far sicker than they otherwise would be.

“I had one lady who had delayed for five days coming in with abdominal pain that was getting worse and worse,” said Dr. Diana Fite, who practices emergency medicine in Houston. “When she finally came in, she had a ruptured appendix.”

After the pandemic was declared a national emergency in March, many states banned non-essential medical procedures, and the number of patients seeking care for other ailments took a nosedive. Hospitals and medical practices were hit hard financially.

Emergency department use dropped by 42% during the first 10 weeks of the pandemic despite a rise in patients presenting with symptoms of the coronavirus, data from the U.S. Centers for Disease Control and Prevention show. In the same period, patients seeking care for heart attacks dropped by 23% and stroke care by 20%.

As the initial outbreak leveled off in the weeks that followed, healthcare experts planned to handle primary care differently should infections rise again, making sure minor procedures like cancer screenings were still allowed and assuring patients that hospitals and clinics were safe.

But the recent surge in cases has swamped hospitals in many states, including Texas, Arizona, Florida and parts of California.

CANCER MORTALITY RATES

Texas has again banned many non-emergency procedures, though cancer surgeries are still allowed, and a hospital in California’s San Joaquin Valley for several days admitted only COVID-19 patients.

Patients without COVID-19 – either out of fear, confusion or because of difficulty in obtaining the care they need – are again staying home.

The result is a healthcare crisis in the making, said Austin oncologist Dr. Debra Patt, who said she expects mortality rates from cancer to skyrocket in the years after the pandemic because patients have delayed their care.

“They’re scared to go in the hospital unless they absolutely have to,” said Patt. “And even when the patients are willing, it’s hard to get things done.”

Patt in recent days treated a man who waited to come in for headaches and dizziness until he had lost 35 pounds and had a softball-sized tumor in his head.

Fite, who is president of the Texas Medical Association, cared for a baby whose parents waited six days before bringing him in with a severe ear infection.

Patt said screening mammograms are down by 90% in Austin, where she specializes in breast cancer and serves as executive vice president of Texas Oncology. That means some tumors will be missed, and women who develop aggressive cancers might not know about it until the disease is more advanced and more likely to be deadly.

“It’s an impact we will see on cancer survival for years to come,” she said.

Dr. David Fleeger, a colorectal surgeon in Austin and a past president of the Texas Medical Association, said he has had numerous patients cancel colonoscopies in recent days.

“The delays in colonoscopies that are occurring right now ultimately will lead to more cancers and more deaths,” he said.

‘IN A HOLDING PATTERN’

Patt’s patient Helen Knost had to put off surgery for breast cancer in early spring because it was considered non-emergency in Texas and barred at the time, and she was treated instead with the medication Tamoxifen.

“It’s very strange to know you have cancer and you’re just hanging out with it, just in a holding pattern,” said Knost, who did ultimately undergo successful surgery.

In California, doctors at the 150-bed Adventist Lodi Memorial Hospital in the San Joaquin Valley were determined that a second surge in coronavirus cases would not bring a repeat of the pandemic’s early days, when emergency room visits dropped in half. Emergency medical technicians also reported a 45% rise in the number of heart patients who died before they could be brought to the hospital.

Hospital CEO Daniel Wolcott led a campaign to inform the community that the medical center was open and safe, even speaking to people about it in the grocery store.

But with new COVID-19 cases swamping the hospital, sickening nearly 30 staff members and forcing it to divert non-coronavirus cases to other facilities for several days, Wolcott fears that again patients with heart conditions and other illnesses will stay away.

“We won’t know for years how many people lost their lives or lost good years of their lives for fear of coronavirus,” he said.

(Reporting by Sharon Bernstein in Sacramento, California; editing by Bill Tarrant and Cynthia Osterman)