U.S. to ship remdesivir to states including California and Texas with rising COVID-19 cases

NEW YORK (Reuters) – The U.S. government will ship more of Gilead Sciences Inc’s <GILD.O> antiviral treatment remdesivir to states experiencing an increase in COVID-19 cases including California, Texas, Florida and Arizona, according to the Department of Health and Human Services’ website.

The government reallocated remdesivir to states with increasing cases, White House task force coordinator Deborah Birx said during a briefing on Friday.

HHS said on its website that the doses will ship starting Monday and extinguish the full amount of Gilead’s donation of 120,647 treatment courses. It said it would continue to work with Gilead to determine how the company’s anticipated inventory of 2 million doses by year’s end will be allocated.

California will receive 464 cases of 40 vials each, Texas will receive 448 cases of 40 vials, Florida will receive 360 cases of 40 vials and Arizona will receive 356 cases of 40 vials, according to the website.

Gilead donated the courses after the treatment received emergency use authorization from the U.S. Food and Drug Administration last month.

New York, which was one of the hardest hit states initially, was allocated 2,714 cases in total.

(Reporting by Caroline Humer; Editing by Tom Brown)

U.S. CDC reports 2,414,870 coronavirus cases

(Reuters) – The U.S. Centers for Disease Control and Prevention (CDC) on Friday reported 2,414,870 cases of new coronavirus, an increase of 40,588 cases from its previous count, and said the number of deaths had risen by 2,516 to 124,325.

The CDC reported its tally of cases of the respiratory illness known as COVID-19, caused by a new coronavirus, as of 4 pm ET on June 25 versus its previous report a day earlier.

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

(Reporting by Manojna Maddipatla in Bengaluru; Editing by Shinjini Ganguli)

Microsoft to close physical stores, take $450 million hit

(Reuters) – Microsoft Corp said on Friday it would close its retail stores and take a related pretax asset impairment charge of $450 million in the current quarter.

The Redmond, Washington-based software giant said it would continue to serve customers online, with team members working remotely from corporate facilities.

A Microsoft spokeswoman told Reuters all current retail employees would be given an opportunity to remain with the company in different roles.

“Speaking over 120 languages, their diversity reflects the many communities we serve,” Microsoft Corporate Vice President David Porter said of the company’s retail employees in a statement. “Our commitment to growing and developing careers from this talent pool is stronger than ever.”The company also said it will rethink other spaces that serve all customers, including operating Microsoft Experience Centers in London, New York, Sydney, and Redmond campus locations.

“This is a tough but smart strategic decision for (CEO) Nadella & Co. to make at this point. The physical stores generated negligible retail revenue for Microsoft and ultimately everything was moving more and more towards the digital channels over the last few years,” Wedbush analyst Dan Ives said in a note. Retailers, whose stores shuttered in mid-March due to coronavirus-prompted lockdowns, have seen a huge surge in online demand amid stay-at-home orders.

(Reporting by Akanksha Rana in Bengaluru and Stephen Nellis in San Francisco)

New York coronavirus positive test rate lowest in U.S., governor says

(Reuters) – The percentage of people in New York state who are testing positive for the novel coronavirus is the lowest in the United States, Governor Andrew Cuomo said on Friday, citing data from Johns Hopkins University.

Cuomo said the 7-day average of the percentage of positive tests in New York was at 1.3 percent, a big improvement from an earlier peak in the state of 50 percent.

(reporting by Gabriella Borter in New York and Nathan Layne in Wilton, Connecticut, Editing by Franklin Paul)

Take Five: World stocks’ 2020 rollercoaster ride rumbles on

HALF TIME

World stocks have been on a roller-coaster ride in the first half of 2020. Having slumped 35% from Feb. 20 to March 23, they are now within 10% of February’s record highs thanks to lashings of fiscal stimulus, interest rates slashed to 0% or below in most major economies, and massive amounts of QE. Borrowing costs for high-grade U.S. companies have in fact fallen below January levels.

So what happens over the rest of the year? Much depends on whether another coronavirus wave comes crashing down, further testing policymakers. And if an effective treatment or a vaccine is found, the severest global recession in living memory could also turn out to be the shortest.

Nevertheless, the crisis has exposed weaknesses such as companies’ high debt levels and their over-reliance on share buybacks.

LINES OF CONTROL

Asian market anxiety levels look set to rise another notch in coming days due to geopolitical tensions.

Hong Kong will be in the Chinese parliament’s sights when it meets on June 28-30 to finalize a security law aimed at tackling separatism, subversion, terrorism and collusion with foreign forces.

After a year of sometimes violent anti-government and anti-Beijing protests, the focus is on how far-reaching the law is, what activities constitute such crimes and what the punishment would be. Investors also want to know whether the laws will be retroactive or create new avenues for asset seizures.

China and much of Asia will also publish manufacturing surveys. But as North Korea’s military threats ebb and flow and troops amass on both sides of a disputed part of the Indo-Chinese border, geopolitics will likely trump other factors.

PLEASANT SURPRISE

After the dire numbers of April and May, recent U.S. economic data flow has delivered good news for the most part, helping keep stock markets within 10% of their pre-coronavirus levels.

On the heels of comebacks in employment and retail sales, Citi’s U.S. Economic Surprise Index, which tracks economic data relative to economists’ expectations, is at a record high.

Now the focus is on whether the rebound remains in force. Consumer confidence on Tuesday, manufacturing data on Wednesday and U.S. employment figures on Thursday – both weekly and monthly – are among reports due.

Non-farm jobs actually rose 2.5 million in May, versus April’s record 20 million-plus plunge. Another improvement could allow markets to push higher – bar further coronavirus-linked lock downs.

INFLATION WATCH

Economies are bouncing back from the COVID-19 shock, so will inflation follow? Preliminary June euro area data may offer clues.

Already, inflation expectations are reacting to data showing the worst of the economic gloom has lifted; a long-term gauge of where markets see euro zone inflation headed is just above 1% — near its highest since early-March and almost 40 bps above record lows hit that month.

Some investors are already buying gold and other inflation hedging assets. But others say that if you dig deeper into activity indicators, they suggest little evidence of inflationary pressures picking up. And until that happens, expect the ECB to keep its foot on the stimulus pedal.

EUROPE’S TURNING TIDE

Is the U.S. share juggernaut slowing? Seems like it. In the past month, U.S. equities have under-performed world stocks by 2.5%; Europe outperformed by a similar margin. European stocks enjoyed investment inflows in three of the past four weeks, BofA says.

Behind the shift perhaps are the growing odds of a presidential election victory for Democrat Joe Biden, worsening U.S./China ties and the continued rise in U.S. coronavirus infections that prevent economic activity from fully resuming.

Europe, meanwhile, has largely controlled the virus spread, economies are turning the corner quicker than expected and a proposed EU recovery fund is speeding up euro zone integration.

BlackRock and Goldman Sachs are among those recommending clients shift focus towards European stocks, which lagged U.S. peers throughout the previous economic cycle due to a paucity of “growth” stocks.

European out-performance looks likely until at least November’s U.S. election. Longer-term though, U.S. firms, such as tech names, may face headwinds from higher taxes especially from a Democrat administration. And in a world where investors attach increasing importance to environmental, social and governance (ESG) credentials, Europe’s higher ESG scores will be a plus.

 

(Reporting by Marc Jones, Dhara Ranasinghe and Thyagaraju Adinarayan in London; Vidya Ranganathan in Singapore and Saqib Iqbal Ahmed in New York; compiled by Sujata Rao; Editing by Hugh Lawson)

Texas governor orders bars closed due to coronavirus

(Reuters) – Texas Governor Greg Abbott on Friday ordered the closure of all bars that get 51 percent of their gross receipts from alcohol, except for take-out, and the curbing of other business activity due to surging cases of the novel coronavirus in the state.

“As I said from the start, if the positivity rate rose above 10%, the State of Texas would take further action to mitigate the spread of COVID-19,” Abbott said in a press release, explaining an executive order. “At this time, it is clear that the rise in cases is largely driven by certain types of activities, including Texans congregating in bars.”

(reporting by Jonathan Allen in New York and Nathan Layne in Wilton, Connecticut; Editing by Chizu Nomiyama)

Special Report: As world approaches 10 million coronavirus cases, doctors see hope in new treatments

By Nick Brown, Deena Beasley, Gabriela Mello and Alexander Cornwell

(Reuters) – Dr. Gopi Patel recalls how powerless she felt when New York’s Mount Sinai Hospital overflowed with COVID-19 patients in March.

Guidance on how to treat the disease was scant, and medical studies were being performed so hastily they couldn’t always be trusted.

“You felt very helpless,” said Patel, an infectious disease doctor at the hospital. “I’m standing in front of a patient, watching them struggle to breathe. What can I give them?”

While there is still no simple answer to that question, a lot has changed in the six months since an entirely new coronavirus began sweeping the globe.

Doctors say they’ve learned enough about the highly contagious virus to solve some key problems for many patients. The changes could be translating into more saved lives, although there is little conclusive data.

Nearly 30 doctors around the world, from New Orleans to London to Dubai, told Reuters they feel more prepared should cases surge again in the fall.

“​We are well-positioned for a second wave,” Patel said. “We know so much more.”

Doctors like Patel now have:

*A clearer grasp of the disease’s side effects, like blood clotting and kidney failure

*A better understanding of how to help patients struggling to breathe

*More information on which drugs work for which kinds of patients.

They also have acquired new tools to aid in the battle, including:

*Widespread testing

*Promising new treatments like convalescent plasma, antiviral drugs and steroids

*An evolving spate of medical research and anecdotal evidence, which doctors share across institutions, and sometimes across oceans.

Despite a steady rise in COVID-19 cases, driven to some extent by wider testing, the daily death toll from the disease is falling in some countries, including the United States. Doctors say they are more confident in caring for patients than they were in the chaotic first weeks of the pandemic, when they operated on nothing but blind instinct.

In June, an average of 4,599 people a day died from COVID-19 worldwide, down from 6,375 a day in April, according to Reuters data.

New York’s Northwell Health reported a fatality rate of 21% for COVID-19 patients admitted to its hospitals in March. That rate is now closer to 10%, due to a combination of earlier treatment and improved patient management, Dr. Thomas McGinn, director of Northwell’s Feinstein Institutes for Medical Research, told Reuters.

“I think everybody is seeing that,” he said. “I think people are coming in sooner, there is better use of blood thinners, and a lot of small things are adding up.”

Even nuts-and-bolts issues, like how to re-organize hospital space to handle a surge of COVID-19 patients and secure personal protective equipment (PPE) for medical workers, are not the time-consuming, mad scrambles they were before.

“The hysteria of who’d take care of (hospital staff) is not there anymore,” said Dr. Andra Blomkalns, head of emergency medicine at Stanford Health Care, a California hospital affiliated with Stanford University. “We have an entire team whose only job is getting PPE.”

To be sure, the world is far from safe from a virus that continues to rage. It is expected to reach two grim milestones in the next several days: 10 million confirmed global infections and 500,000 deaths. As of Thursday evening, more than 9.5 million people had tested positive for the coronavirus, and more than 483,000 had died, according to Reuters data. The United States remains the epicenter of the pandemic, and cases are rising at an alarming pace in states like Arizona, Florida and Texas.

There is still no surefire treatment for COVID-19, the disease caused by the new virus, which often starts as a respiratory illness but can spread to attack organs including the heart, liver, kidneys or central nervous system. Scientists are at least months away from a working vaccine.

And while medical knowledge has improved, doctors continue to emphasize that the best way for people to survive is to avoid infection in the first place through good hygiene, face coverings and limited group interaction.

Dr. Ramanathan Venkiteswaran, medical director of Aster Hospitals in the United Arab Emirates, said COVID-19 will likely result in permanent changes in medicine and for the general public on “basic things like social distancing, wearing of masks and hand washing.”

LEARNING ON THE FLY

In the medical field, change can be slow, with years-long studies often needed before recommendations are altered. But protocols for COVID-19 have evolved at lightning speed.

In Brazil, São Paulo-based Hospital Israelita Albert Einstein, one of the country’s leading private hospital networks, has updated its internal guidelines for treating coronavirus patients some 50 times since the outbreak began earlier this year, according to Dr. Moacyr Silva Junior, an infectious disease specialist at the center. Those guidelines govern questions such as which patients are eligible for which drugs, how to handle patients with breathing problems, and the use of PPE like masks, gowns and gloves.

“In only three months, a resounding amount of scientific work on COVID-19 has been published,” he said.

At Stanford Health Care, treatment guidelines changed almost daily in the early weeks of the pandemic, Blomkalns said. She described a patchwork approach that began by following guidelines established by the U.S. Centers for Disease Control and Prevention, then modifying them to reflect a shortage of resources, and finally adding new measures not addressed by the CDC, such as how to handle pregnant healthcare workers.

The new coronavirus has been particularly vexing for doctors because of the many and often unpredictable ways it can manifest. Most people infected experience only mild flu-like symptoms, but some can develop severe pneumonia, stroke and neurological disease. Doctors say the biggest advance so far has been understanding how the disease can put patients at much higher risk for blood clots. Most recently, doctors have discovered that blood type might influence how the body reacts to the virus.

“We developed specific protocols, such as when to start blood thinners, that are different from what would be done for typical ICU patients,” said Dr. Jeremy Falk, pulmonary critical care specialist at Cedars-Sinai Medical Center in Los Angeles.

Around 15% of COVID-19 patients are at risk of becoming sick enough to require hospitalization. Scientists have estimated that the fatality rate could be as high as 5%, but most put the number well below 1%. People with the highest risk of severe disease include older adults and those with underlying health conditions like heart disease, diabetes and obesity.

While rates of COVID-19 infection have recently been rising in many parts of the United States, the total number of U.S. patients hospitalized with COVID-19 has been steadily falling since a peak in late April, according to the CDC.

Many hospitals report success with guidelines for “proning” patients – positioning them on their stomachs to relieve pressure on the lungs, and hopefully stave off the need for mechanical ventilation, which many doctors said has done more harm than good.

“At first, we had no idea how to treat severely ill patients when we (ventilate),” said Dr. Satoru Hashimoto, who directs the intensive care division at Kyoto Prefectural University of Medicine in Japan. “We treated them in the fashion we treated influenza,” only to see those patients suffer serious kidney, digestive and other problems, he said.

Hospitals say increased coronavirus testing – and faster turnaround times to get results – are also making a difference.

“What has really helped us triage patients is the availability of rapid testing that came on about six weeks ago,” said Falk of Cedars-Sinai. “Initially, we had to wait two, three or even four days to get a test back. That really clogged up the COVID areas of the hospital.”

Faster, wider testing also helps conserve PPE by identifying the negative patients around whom doctors don’t have to wear as much gear, said Dr. Saj Patel, who treats non-critical patients at the University of California San Francisco Medical Center. “You can imagine how much PPE we burned through” waiting for test results, he said.

Hospitals around the world acted early to restructure operations, including floor layouts, to isolate coronavirus patients and reduce exposure to others. It wasn’t always smooth, but doctors say they’re figuring out how to do it more efficiently.

“Our hospital infrastructure, and the way that we … manage people coming through the door is a lot slicker than it was earlier in the epidemic,” said Dr. Tom Wingfield, a clinical lecturer at the Liverpool School of Tropical Medicine in Liverpool, England.

USING WHAT’S AT HAND

But even if hydroxychloroquine looks unlikely as an effective COVID-19 treatment, hospitals continue to try new medications – both by repurposing older drugs and exploring novel therapies. Patients are being enrolled in hundreds of coronavirus clinical trials launched in the past three months.

Many hospitals said they are seeing success with the use of plasma donated by survivors of COVID-19 to treat newly infected patients.

People who survive an infectious disease like COVID-19 are generally left with blood containing antibodies, which are proteins made by the body’s immune system to fight off a virus. The blood component that carries the antibodies, known as convalescent plasma, can be collected and given to new patients.

Early results from a study at New York’s Mount Sinai Hospital found that patients with severe COVID-19 who were given convalescent plasma were more likely to stabilize or need less oxygen support than other similar hospital patients. But results from other studies have been mixed, and doctors still await findings from a rigorously-designed trial. And availability of plasma varies between regions.

At Henry Ford Hospital in Detroit, Michigan, “anecdotally everyone can provide stories” of the benefits of plasma, said Dr. John Deledda, the hospital’s chief medical officer.

But in rural New Mexico, hospitals that care for largely underserved populations struggle to find it. “There’s a limited number of blood centers” that can provide plasma, said Valory Wangler, chief medical officer at Rehoboth McKinley Christian Health Care Services, in Gallup, New Mexico. Until trial data is more conclusive, plasma is “not something we’re pursuing actively,” she said.

Dr Abdullatif al-Khal, head of infectious diseases at Qatar’s Hamad Medical Corporation and a co-chair of the country’s pandemic preparedness team, said he saw patients improve after he started using donated plasma early in the course of COVID-19 before the patients deteriorated.

Qatar is also assessing a steroid known as dexamethasone to treat COVID-19. But Khal says he wants to wait for publication of clinical data behind a recent UK study suggesting that the steroid reduced death rates by around a third among the most severely ill COVID-19 patients.

In patients with severe COVID-19, the immune system can overreact, triggering a potentially harmful cascade. Steroids are an older class of drugs that suppress that inflammatory response. But they can also make it easier for other viral or bacterial infections to take hold – making doctors leery of their use in a hospital setting or in patients with early-stage COVID-19.

Some countries, including Bahrain and the United Arab Emirates, reported using HIV drugs lopinavir and ritonavir with some success. Clinical trials, though, have suggested little benefit, and they aren’t widely used in the United States.

MIDNIGHT DELIVERY

Many of the doctors who spoke with Reuters were bullish on the use of remdesivir, the only drug so far shown to be effective against the coronavirus in a rigorous clinical trial. The antiviral developed by California-based Gilead Sciences Inc <GILD.O> was shown to reduce the length of hospital stays for COVID-19 patients by about a third, but hasn’t been proven to boost survival.

Remdesivir is designed to disable the mechanism by which certain viruses, including the new coronavirus, make copies of themselves and potentially overwhelm their host’s immune system.

It is available under emergency approvals in several countries, including the United States. But Gilead’s donated supplies are limited, and distribution and availability are uneven.

Dr. Andrew Staricco, chief medical officer at McLaren Health Care, which operates 11 hospitals across Michigan, recalls the urgency to obtain remdesivir early on. He got an email from Michigan’s health department on May 9, a week after the U.S. Food & Drug Administration authorized the drug for use in treating COVID-19. The health department said it had received a small batch from the federal government, and planned to dole it out to local hospitals based on need. Staricco wrote back, saying he had 15 to 18 critically ill patients, but was given enough to treat just four.

The drug was so precious, he said, that state police troopers were responsible for transporting it to the hospital – which they did, dropping it off around 1 a.m. the next morning.

Health officials originally directed remdesivir for use on the most critically ill patients. But doctors later found they got the best results administering it earlier.

“We started finding that, actually, the sooner you get treated with it, the better,” Staricco said. “We’ve revisited our criteria for giving it to patients three different times.”

Data on the drug, he said, is still scarce. But his anecdotal observations on the benefits of early treatment were echoed by several U.S. doctors.

‘COPY-CATTING’

Gilead on Monday said it aims to manufacture another 2 million courses of remdesivir this year, but did not comment on how it plans to distribute, or sell, those supplies for use by hospitals. The company has licensed the antiviral to several generic drugmakers, who will be allowed to sell the medication in over 100 low-income nations.

Although much about the coronavirus remains unknown, a key reason hospitals say they now are more prepared owes to teamwork.

Many doctors described a kind of unofficial network of information sharing.

In hard-hit Italy, Dr. Lorenzo Dagna of the IRCCS San Raffaele Scientific Institute in Milan, organized conference calls with institutions in the United States and elsewhere to share experiences and anecdotes treating COVID-19 patients.

McLaren’s Staricco said the Michigan hospital chain adopted its policy on use of blood thinners by looking at peers at Detroit Medical Center and Vanderbilt University Medical Center.

As more institutions put their guidelines online, he said, there was “lots of copy-catting going on.”

(Reporting by Nick Brown in New York, Deena Beasley in Los Angeles, Gabriela Mello in São Paulo and Alexander Cornwell in Dubai.; Additional reporting By Alistair Smout in London, Matthias Blamont in Paris, Emilio Parodi in Milan, Lisa Barrington in Dubai, Rocky Swift in Tokyo and Sangmi Cha in Seoul.; Editing by Michele Gershberg and Marla Dickerson)

 

U.S. watchdog finds flaws in virus testing data, chews out Transport Dept, SBA

NEW YORK (Reuters) – Incomplete and inconsistent testing data reported by the Centers for Disease Control and Prevention make it more difficult to know the COVID-19 infection rate, and take informed decisions on reopening communities, a U.S. government watchdog said.

The report issued by the Government Accountability Office on Thursday marked the first review of the government’s response to the coronavirus pandemic and made recommendations to lawmakers on how to improve the fight to come out of crisis.

Some of its harshest criticism was reserved for the Small Business Administration (SBA), which oversees a $670 billion emergency loan programme to help companies survive the pandemic, and the lack of a plan from the Department of Transportation to improve the aviation sector’s response to outbreaks.

Detailing its findings on the coronavirus testing data, the GAO said the data that was collected at times included antibody tests that detect prior infections, and sometimes included counts on the number of samples tested, which could include multiple tests for one person.

“The absence of complete and consistent COVID-19 testing data reported through May 31, 2020, has made it more difficult to track and know the infection rate, mitigate the effect of infections, and inform decisions on reopening communities,” the watchdog said.

It said the United States is also missing a national aviation-preparedness plan for infectious diseases.

“While the Department of Transportation agreed that a plan is needed, as of May 2020, no such plan had been developed,” the watchdog said. It said the Transportation Department has maintained that other U.S. agencies should take the lead in planning for outbreaks.

As part of its recommendations to U.S. lawmakers, the watchdog said it is urging them to take legislative action to require the Transportation Department to work with others to develop a national plan.

It criticised the SBA for failing to give detailed descriptions of loans made in its data, and not outlining plans to review loans worth less than $2 million.

“We encountered the most difficulty trying to obtain information from the Small Business Administration (SBA),” said the watchdog,. “SBA to date has failed to provide information critical to our review.”

The SBA did not immediately respond to a request for comment.

The level of transparency around U.S. government spending to fight the pandemic has been a contentious issue between various watchdogs and government agencies.

According to the watchdog, the U.S. government has set aside $2.6 trillion worth of spending to fight the pandemic, but spending so far is unknown as all agencies are not required to report their expenditures until July 2020.

(Reporting by Koh Gui Qing; Editing by Simon Cameron-Moore)

Coronavirus kills 93 U.S. meatpacking workers, union says

(Reuters) – The largest U.S. meatpacking union said on Thursday that 93 meatpacking and food-processing workers have died from COVID-19 and employees continue to face risks from the new coronavirus.

The United Food and Commercial Workers International Union told reporters on a conference call that over 196 of all its members, who also include grocery store workers, have died.

(Reporting by Tom Polansek, Editing by Franklin Paul)

Coronavirus may have infected 10 times more Americans than reported, CDC says

By Steve Holland

WASHINGTON (Reuters) – Government experts believe more than 20 million Americans could have contracted the coronavirus, 10 times more than official counts, indicating many people without symptoms have or have had the disease, senior administration officials said.

The estimate, from the Centers for Disease Control and Prevention, is based on serology testing used to determine the presence of antibodies that show whether an individual has had the disease, the officials said.

The officials, speaking to a small group of reporters on Wednesday night, said the estimate was based on the number of known cases, between 2.3 million and 2.4 million, multiplied by the average rate of antibodies seen from the serology tests, about an average of 10 to 1.

“If you multiply the cases by that ratio, that’s where you get that 20 million figure,” said one official.

If true, the estimate would suggest the percentage of U.S. deaths from the disease is lower than thought. More than 120,000 Americans have died from the disease since the pandemic erupted earlier this year.

The estimate comes as government officials note that many new cases are showing up in young people who do not exhibit symptoms and may not know they have it.

Officials said young people with no symptoms, but who are in regular contact with vulnerable populations, should proactively get tested to make sure they do not spread it.

“We have heard from Florida and Texas that roughly half of the new cases that are reporting are people under the age of 35, and many of them are asymptomatic,” one official said.

The CDC has sent 40 response teams to help deal with the outbreaks, they said.

More than 36,000 new cases of COVID-19 were recorded nationwide on Wednesday, just shy of the record 36,426 on April 24, concentrated on states that were spared the brunt of the initial outbreak or moved early to lift restrictions aimed at curbing the virus’ spread.

(Reporting by Steve Holland; Editing by Lisa Shumaker)