Florida to unveil reopening plan as data shows painful contraction of U.S. economy

By Maria Caspani and Doina Chiacu

WASHINGTON (Reuters) – Florida Governor Ron DeSantis on Wednesday was preparing to unveil his plan for loosening restrictions on business activity in one of the most populous states in the United States as data showed the economy contracted 4.8% in the first three months due to the shutdowns aimed at battling the coronavirus.

Commerce Department data showed the economy shrank at its sharpest pace since the Great Recession due to the stringent measures to slow the spread of the novel coronavirus, ending the longest expansion in U.S. history.

Economists generally define a recession as at least two months of negative growth in a row.

“The economy is in free fall, we could be approaching something much worse than a deep recession,” said Sung Won Sohn, a business economics professor at Loyola Marymount University in Los Angeles. “It’s premature to talk about a recovery at this moment, we are going to be seeing a lot of bankruptcies for small and medium sized businesses.”

With millions unemployed, about a dozen states have been forging ahead to restart shuttered commerce without being ready to put in place the large-scale virus testing or means to trace close contacts of newly infected individuals.

Public health experts have urged caution, saying that a premature rollback of social-distancing policies could trigger a resurgence of infections.

In Florida, the largest state so far to contemplate re-opening, DeSantis is expected to announce a “phase one” loosening of restrictions a day after it reported a record-high 83 deaths and more than 700 new infections from the previous 24 hours on Tuesday. Despite being spared the worst of the pandemic, the state has so far tallied 32,846 cases of COVID-19, the disease caused by the virus, including 1,171 deaths.

U.S. deaths from the novel coronavirus was approaching 60,000 on Wednesday, and cases crossed the 1 million mark. The death toll has already surpassed the number of American lives lost in the Vietnam War, and the outbreak will soon be deadlier than any flu season since 1967, according to a Reuters tally.

White House adviser Jared Kushner, President Donald Trump’s son in law, said on Wednesday that May would likely become a transition month as states begin reopening in phases.

“I think you’ll see by June, a lot of the country should be back to normal and the hope is is that by July, the country is really rocking again,” he told Fox News.

He said the White House would begin another round of calls on Wednesday with all the governors to ask what additional supplies they need and what their two-month plan is.

Some businesses in Tennessee were allowed to reopen on Wednesday following an executive order issued by Governor Bill Lee to restart the state’s economy.

Some restaurants will be able to serve food to customers seated at tables, granted they observe state-mandated guidelines, while close-contact personal service businesses like barber shops, salons and spas will remain closed for now.

In California, Governor Gavin Newsom said curbside retail, manufacturing and other “lower-risk workplaces” should reopen within weeks as testing and contact-tracing improve.

Health experts have stressed the importance of testing and contact tracing to prevent a resurgence of the virus, but a nationwide strategy remains elusive and Trump has said the testing onus rests with single states.

 

(Reporting by Maria Caspani, Editing by Sonya Hepinstall)

U.S. still worried about China’s labs amid coronavirus: Pompeo

WASHINGTON (Reuters) – U.S. Secretary of State Mike Pompeo said on Wednesday the United States remains worried about laboratories in China and the world needs to get to the bottom of how the novel coronavirus began there.

The United States and China have traded insults and accusations during the deadly coronavirus outbreak that has killed more than 200,000 people around the world and brought the global economy to a crawl.

U.S. President Donald Trump said on April 15 that his government was investigating whether the coronavirus pandemic originated in a laboratory in the Chinese city of Wuhan, where the virus emerged. Those claims have no basis in fact, the head of the lab told Reuters on Tuesday.[nL3N2CG18V]

“I can tell you there were real concerns about the labs inside of China,” Pompeo said in an interview with Fox News. “I’m still concerned that the Chinese Communist Party is not telling us about all of what’s taking place in all of the labs.”

A Washington Post opinion column this month said the U.S. State Department in 2018 warned in diplomatic cables about safety and management weaknesses at a Wuhan laboratory.

Pompeo said Chinese authorities are continuing to withhold information about the virus and will not allow U.S. experts access.

“In spite of our best efforts to get experts on the ground, they continue to try and hide and obfuscate. That’s wrong, it continues to pose a threat to the world and we all need to get to the bottom of what actually happened here,” he told Fox.

Most scientists now say the new coronavirus originated in wildlife, with bats and pangolins identified as possible host species.

Yuan Zhiming, a director at the Wuhan Institute of Virology also rejected theories that the lab had accidentally released a coronavirus it had harvested from bats for research purposes.

(Reporting by Doina Chiacu; Editing by Chizu Nomiyama and Jonathan Oatis)

Trump hails U.S. coronavirus testing as infections cross a million

By Kanishka Singh

(Reuters) – The United States has reported more than a million coronavirus infections only because of its testing, President Donald Trump said on Wednesday, hailing the effort as being “much better than any other country in the world”.

The Twitter comments came amid warnings from state public health officials that shortages of trained workers and materials have limited testing capacity.

“The only reason the U.S. has reported one million cases of coronavirus is that our testing is sooo much better than any other country in the world,” Trump said on Twitter.

“Other countries are way behind us in testing, and therefore show far fewer cases.”

A Reuters tally  shows the United States has by far the world’s largest number of confirmed cases at more than a million, with total deaths topping 58,000 by late Tuesday.

Cases exceeded 3.1 million worldwide, with more than 216,000 deaths.

TESTS FOR THOSE IN NEED

The rise pressures efforts to boost testing capacity and health officials flagged the challenge of getting tests to those who need them most.

“One of the problems has been is the tests getting to the people who need them,” U.S. infectious diseases expert and health official Anthony Fauci told CNN in an interview on Tuesday.

Fauci, head of the National Institute of Allergy and Infectious Diseases, said every American in need of a virus test should be able to get one by the end of May or the beginning of June.

“Everyone who needs a test, according to the way we’re approaching the identification, isolation, contact tracing – keeping the country safe and healthy, hopefully, we should see that as we get toward the end of May, the beginning of June,” Fauci said.

The virus has taken an unprecedented toll of the U.S. economy, with a likely contraction in the first quarter at its sharpest pace since the Great Recession, as stringent measures to slow the virus spread almost shut down the nation, ending the longest expansion in its history.

The number of Americans seeking jobless benefits over the past five weeks has soared to 26.5 million, or nearly one in six U.S. workers, and the Trump administration has forecast an April unemployment rate exceeding 16%.

(Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser.)

(Reporting by Kanishka Singh in Bengaluru; Editing by Clarence Fernandez)

Special Report: Cyber-intel firms pitch governments on spy tools to trace coronavirus

By Joel Schectman, Christopher Bing and Jack Stubbs

WASHINGTON (Reuters) – When law enforcement agencies want to gather evidence locked inside an iPhone, they often turn to hacking software from the Israeli firm Cellebrite. By manually plugging the software into a suspect’s phone, police can break in and determine where the person has gone and whom he or she has met.

Now, as governments fight the spread of COVID-19, Cellebrite is pitching the same capability to help authorities learn who a coronavirus sufferer may have infected. When someone tests positive, authorities can siphon up the patient’s location data and contacts, making it easy to “quarantine the right people,” according to a Cellebrite email pitch to the Delhi police force this month.

This would usually be done with consent, the email said. But in legally justified cases, such as when a patient violates a law against public gatherings, police could use the tools to break into a confiscated device, Cellebrite advised. “We do not need the phone passcode to collect the data,” the salesman wrote to a senior officer in an April 22 email reviewed by Reuters.

A Cellebrite spokeswoman said the salesman was offering the same tools the company has long sold to help police enforce the law. The company is also offering a version of its product line for use by healthcare workers to trace the spread of the virus that causes COVID-19, but the tools can only be used with patient consent and can’t hack phones, she said.

Cellebrite’s marketing overtures are part of a wave of efforts by at least eight surveillance and cyber-intelligence companies attempting to sell repurposed spy and law enforcement tools to track the virus and enforce quarantines, according to interviews with executives and non-public company promotional materials reviewed by Reuters.

The executives declined to specify which countries have purchased their surveillance products, citing confidentiality agreements with governments. But executives at four of the companies said they are piloting or in the process of installing products to counter coronavirus in more than a dozen countries in Latin America, Europe and Asia. A Delhi police spokesman said the force wasn’t using Cellebrite for coronavirus containment. Reuters is not aware of any purchases by the U.S. government.

FILE PHOTO: A man displays a screen at a stand of Cellebrite, a company an Israeli company that manufactures data extraction, transfer and analysis devices for cellular phones and mobile devices, at the annual European Police Congress in Berlin, Germany, February 4, 2020. REUTERS/Hannibal Hanschke

So far, Israel is the only country known to be testing a mass surveillance system pitched by the companies, asking NSO Group, one of the industry’s biggest players, to help build its platform. But the rollout of NSO’s surveillance project with the Israeli Ministry of Defense is on hold pending legal challenges related to privacy issues, an NSO executive said. A spokesman for Israeli Defense Minister Naftali Bennett said NSO was involved in the project but did not provide further details.

Surveillance-tech companies have flourished in recent years as law enforcement and spy agencies around the world have sought new methods for countering adversaries who now often communicate through encrypted mobile apps. The firms argue that their experience helping governments track shadowy networks of militants makes them uniquely qualified to uncover the silent spread of a novel disease.

“I really believe this industry is doing more good than bad,” said Tal Dilian, a former Israeli intelligence officer and now a co-chief executive officer of Cyprus-based Intellexa, a cyber-surveillance firm that works with intelligence agencies in Southeast Asia and Europe. “Now is a good time to show that to the world.”

Yet some technologists remain skeptical that spying tools reliant on phone location data can be used to effectively combat a virus.

“It’s not precise enough, that’s the point. It’s not nearly going to get you down to whether you’re next to a certain person or not,” said Michael Veale, a lecturer in digital rights and regulation at University College London.

While the methods for location tracking and accuracy vary, surveillance companies say they can narrow down a person’s coordinates to within three feet, depending on conditions.

PRIVACY RIGHTS VS. HEALTH CONCERNS

Privacy issues loom. Civil liberties advocates fear that virus tracking efforts could open the door to the kind of ubiquitous government surveillance efforts they have fought for decades. Some are alarmed by the potential role of spyware firms, arguing their involvement could undermine the public trust governments need to restrain the spread of the virus.

“This public health crisis needs a public health solution – not the interjection of for-profit surveillance companies looking to exploit this crisis,” said Edin Omanovic, advocacy director for the UK-based civil liberties group Privacy International.

Claudio Guarnieri, a technologist with the human rights organization Amnesty International, said any new surveillance powers embraced by states to combat the virus should be met with “high scrutiny.”

“New systems of control, from location tracking to contact tracing, all raise different concerns on necessity and proportionality,” said Guarnieri.

Cellebrite, for one, said it requires “agencies that use our solutions to uphold the standards of international human rights law.”

Government officials have sought to address such concerns by pointing to the unprecedented nature of the crisis. COVID-19, the respiratory disease caused by the new coronavirus, has so far infected more than 3 million people worldwide, killing over 210,000.

In South Africa, for example, after the government last month announced it would use telecom data to track the movements of citizens infected with COVID-19, a communications minister acknowledged concerns about loss of privacy.

“We do respect that everyone has a right to privacy, but in a situation like this our individual rights do not supersede the country’s rights,” Stella Ndabeni-Abrahams, the communications minister, said at a press conference for South Africa’s COVID-19 command council this month.

The South African Health Ministry declined to comment on details of the program and whether it had contracted with any of the intelligence firms.

A number of countries are developing and deploying COVID-19 contact-tracing apps that do not rely on location data. Instead, these apps, already in use in Singapore, India and Colombia, tap the smartphone connectivity technology Bluetooth to sense and record when other devices are nearby. When someone tests positive for coronavirus, typically, everyone that person made contact with is notified.

Christophe Fraser, an epidemiologist at Oxford University’s Big Data Institute, said this approach, if implemented properly, could save lives and shorten lockdowns. “The idea is to try and maximize social distancing practices of those at risk of infection and minimize the impact on all the other people,” he said.

This app-based approach to contact tracing is considered, by its advocates, as more privacy friendly because people voluntarily download the app and sensitive personal data are visible only to health authorities. This method of containing the disease is the focus of a rare collaboration between Apple Inc and Alphabet Inc’s Google to quickly deploy the Bluetooth-based technology for use in the United States and elsewhere. But the approach relies on widespread adoption of the apps, and its accuracy remains unproven.

Apple says its plan is designed to “help amplify the efforts of the public health authorities” and that “many factors will help flatten [infection] curves — no one believes this is the only one.” A Google spokesman referred to a prior statement, which said “each user will have to make an explicit choice to turn on the technology.”

By contrast, deploying a mass surveillance platform like Intellexa’s means everyone would be under collection right away; no one needs to opt in, nor could anyone opt out. Such a setup can be done remotely in a matter of weeks, said an executive at NSO Group, which is also offering its wares to fight the coronavirus.

PUBLIC HEALTH SPY TECH

The surging spyware business is estimated by research firm MarketsandMarkets to be worth $3.6 billion this year.

But the industry has been dogged by legal and ethical concerns. Human rights groups have accused some companies of helping undemocratic governments target dissidents and activists. The companies say they help governments prevent terrorism and capture criminals.

Last year, for example, Facebook’s WhatsApp unit accused NSO Group of helping governments hack 1,400 targets that included activists, journalists, diplomats and state officials. NSO denies the allegations, saying it only provides the technology to government agencies under strict controls and is not involved in operations.

Intellexa’s Dilian fled Cyprus last year after an arrest warrant was issued for him, on accusations that he used a surveillance van to illegally intercept communications in the country. Dilian denies the allegations, returned to Cyprus last month and said he is cooperating with authorities. A Cypriot police spokesman told Reuters the investigation is active.

Now, industry executives, investors and analysts say the coronavirus crisis offers intelligence firms the possibility of billions of dollars in business, while burnishing their reputations.

India is among the courted countries. In April, New York-based Verint Systems asked Indian officials to pay $5 million for a year’s subscription to a host of services designed to track and surveil people with coronavirus. Those included a cellphone tower geolocation platform and a program to monitor social media activity, according to documents seen by Reuters and a person with knowledge of the negotiations. No sale has yet been agreed in India, the source said.

A Verint spokesman declined to answer questions, instead referring to an April 16 press release which said unspecified products were being used by an unnamed country to help respond to COVID-19. India’s Ministry of Interior said it had not purchased a system from Verint.

NSO Group and Intellexa are also both pitching COVID-19 tracking platforms to countries across Asia, Latin America and Europe. Their technology could allow a government to track the movement of nearly every person in the country who carries a cellphone, sucking up a continuous trove of location data. Installed within telecom providers, the technology functions through the analysis of call records, said NSO and Intellexa executives.

When a person tests positive, the systems would allow authorities to input the result, tracking those who made contact with the patient in the past few weeks. Those exposed would receive a text message encouraging them to get tested or self-isolate. NSO said the system’s administrators would not see the identity of individuals.

Revelations in 2013 that the U.S. National Security Agency had collected this kind of mobile phone data about Americans to track national security threats created a storm of controversy and fueled new restrictions on surveillance.

Suzanne Spaulding, a former U.S. intelligence community lawyer and senior Homeland Security official, described this potential COVID-19 tracking approach as “among the most privacy-invasive.” That’s because it “envisions all of the data about everyone’s movements, not just infected individuals and their known contacts, going to the government.”

South Korea, Pakistan, Ecuador and South Africa have all indicated in public statements they were rolling out contact tracing systems using telecom data to track infected citizens, though the details haven’t been released.

South Korean officials say any loss of privacy from surveillance must be weighed against the disastrous economic consequences caused from a long-term shutdown.

“It is also a restriction of freedom when you ban free movement of people in crisis,” Jung Seung-soo, a deputy director at the Ministry of Land, Infrastructure and Transport, told Reuters. The country is not using outside surveillance vendors, the official said.

Intellexa is in the process of installing its system in two Western European countries, Dilian said. He declined to name them.

In an interview with Reuters, NSO employees responsible for the product said the company is piloting the approach in 10 countries in Asia, the Middle East and Latin America, but declined to name them.

Three other Israeli companies, Rayzone Group, Cobwebs Technologies and Patternz, are offering countries coronavirus tracking capabilities. These largely rely on location data gathered from mobile advertising platforms, according to company promotional documents reviewed by Reuters and people familiar with the companies.

Rayzone Group declined to comment. Requests for comment to Patternz went unanswered. Omri Timianker, president and co-founder of Cobwebs Technologies, said his company is working with five governments to help track the spread of the virus, but declined to identify them.

While some experts say advertising data isn’t precise enough to combat the spread of COVID-19, the documents reviewed by Reuters suggest the three firms are marketing technology which they contend can ingest and process advertising data into a form that’s useful for narrowly tracking individuals.

Intellexa’s Dilian said his company’s platform will cost between $9 million and $16 million for countries with large populations. He believes COVID-19 tracking will be just the beginning. Once the pandemic ends, he hopes countries that invested in his mass surveillance tool will adapt it for espionage and security. “We want to enable them to upgrade,” he said.

(Additional reporting by Nqobile Dludla in Johannesburg, John Geddie in Singapore, Alexandra Valencia in Quito, Frank Jack Daniel in Mexico City, Sankalp Phartiyal in New Delhi, Douglas Busvine in Berlin, Tova Cohen in Tel Aviv, Asif Shahzad in Islamabad, Michele Kambas in Athens and Sangmi Cha in Seoul. Editing by Ronnie Greene and Jonathan Weber)

UK says some children have died from syndrome linked to COVID-19

By Guy Faulconbridge and Kate Holton

LONDON (Reuters) – Some children in the United Kingdom with no underlying health conditions have died from a rare inflammatory syndrome which researchers believe to be linked to COVID-19, Health Secretary Matt Hancock said on Tuesday.

Italian and British medical experts are investigating a possible link between the coronavirus pandemic and clusters of severe inflammatory disease among infants who are arriving in hospital with high fevers and swollen arteries.

Doctors in northern Italy, one of the world’s hardest-hit areas during the pandemic, have reported extraordinarily large numbers of children under age 9 with severe cases of what appears to be Kawasaki disease, more common in parts of Asia.

“There are some children who have died who didn’t have underlying health conditions,” Hancock told LBC Radio.

“It’s a new disease that we think may be caused by coronavirus and the COVID-19 virus, we’re not 100% sure because some of the people who got it hadn’t tested positive, so we’re doing a lot of research now but it is something that we’re worried about.”

Children were until now thought to be much less susceptible than their parents or grandparents to the most deadly complications wrought by the novel coronavirus, though the mysterious inflammatory disease noticed in Britain, Spain and Italy may demand a reassessment.

“It is rare, although it is very significant for those children who do get it, the number of cases is small,” Hancock, one of the ministers leading Britain’s COVID-19 response, said.

He did not give an exact figure for the number of deaths.

Kawasaki disease, whose cause is unknown, is associated with fever, skin rashes, swelling of glands, and in severe cases, inflammation of arteries of the heart.

Britain’s National Health Service says the syndrome only affects about eight in every 100,000 children every year, with most aged under 5.

There is some evidence that individuals can inherit a predisposition to the disease, but the pattern is not clear.

Children either testing positive for COVID-19 or for its antibodies have presented gastrointestinal symptoms such as abdominal pain, vomiting and diarrhea in the last two weeks, the Spanish Pediatric Association said on Monday.

Though the children were otherwise in good health, their condition could evolve within hours into shock, featuring tachycardia and hypotension even without fever.

Most cases were detected in school-age or teenage minors, and sometimes overlapped with Kawasaki disease or toxic shock syndrome (TSS).

Parents should be vigilant, junior British interior minister Victoria Atkins said.

“It demonstrates just how fast moving this virus is and how unprecedented it is in its effect,” Atkins told Sky News.

Professor Anne Marie Rafferty, the president of the Royal College of Nursing, said she had heard reports about the similarity between cases in infants and Kawasaki syndrome.

“Actually there’s far too little known about it and the numbers actually at the moment are really too small,” told Sky News. “But it is an alert, and it’s something that’s actually being explored and examined by a number of different researchers.”

(Reporting by Guy Faulconbridge and Kate Holton in London and Clara-Læïla Laudette in Madrid; editing by Michael Holden and Angus MacSwan)

Hello, social distancing. Goodbye, handshakes?

By Omar Younis and Clare Baldwin

LOS ANGELES (Reuters) – It started centuries ago as a symbol of peace, a gesture to prove you weren’t holding a weapon, and over time it became part of almost every social, religious, professional, business and sporting exchange.

But the new coronavirus has forced a rethink of the handshake. No matter how friendly, it is an exchange of potentially infectious microorganisms.

“Hands are like a busy intersection, constantly connecting our microbiome to the microbiomes of other people, places, and things,” a group of scientists wrote in the Journal of Dermatological Science. Hands, they said, are the “critical vector” for transmitting microorganisms including viruses.

But if it is no longer automatically acceptable, what will replace the handshake as a fixture of post-coronavirus social etiquette? A fist or elbow bump? Maybe a traditional Japanese bow or hat doff? How about Spock’s Vulcan salute from Star Trek?

We are social beings. When we meet one another, we press flesh. We take our largest organ, skin, and mash it together with someone else’s – naked. In the middle of the coronavirus it has become clear just how intimate such a gesture is.

The human hand is fecund. We have hundreds of species of bacteria and viruses on our palms.

“Think about it,” says Charles Gerba, a microbiologist and public health researcher at the University of Arizona, who also answers to Dr Germ. “Every time you touch a surface, you may be picking up up to 50 percent of the organisms on that surface.”

Our hands can carry Salmonella, E. coli, norovirus and respiratory infections like adenovirus and hand-foot-mouth disease. And, given how frequently scientists find poop on our fingers and palms, our hygiene habits are far less fastidious than we think.

BACTERIAL EFFERVESCENCE

We can’t see any of this with the naked eye.

And so we rely on scientists with agar plates to make visible the arching, spiraling, exploding patterns of bacterial effervescence that show just what our intermingling of fingers risks, something so simple as a handshake rendered in terrifying technicolor.

Scientists can also show us viruses. Those must be studied in animal cells, in a mosaic of tiny semi-circles that scientists often stain purple or red.

The cells are lovely, says Gerba, “and then when they die, they become colorless.”

Gerba studies the movement of viruses. He’ll put a virus on an office doorknob or in a hotel room or someone’s home.

He says it takes just four hours for a virus on an office doorknob to reach half the hands and half the surfaces in an office building, or about 90 percent of the surfaces in someone’s home. A virus in a hotel often moves from room to room and sometimes to nearby conferences.

Gerba says he himself stopped shaking hands during the first SARS outbreak, in 2003. “I always say I have a cold,” he says. “That way I don’t have to shake their hand.”

Top U.S. infectious diseases expert Dr Anthony Fauci sees it the same way since the pandemic hit.

“You don’t ever shake anybody’s hands,” Fauci said this month. “That’s clear.”

LONG, HARD SQUEEZE

Handshakes have long been a way for humans to signal one another, and part of the ritual of seeking common ground.

“The handshake is what gets photographed at the time of any agreement,” says Dorothy Noyes, a professor of folklore at Ohio State University.

The long, hard squeeze of U.S. President Donald Trump and French President Emmanuel Macron in 2018 was a classic display of two males seeking dominance. Some handshakes, like the bouncing clasp of Chinese President Xi Jinping and Japanese Prime Minister Shinzo Abe, take months to negotiate.

Awkward or smooth, handshakes are a hard habit to break, even if we want to.

Minutes after announcing a ban on shaking hands to combat COVID-19, Dutch Prime Minister Mark Rutte enthusiastically pumped the hand of Jaap Van Dissel, the head of the Dutch Centre for Infectious Disease Control.

“Sorry, sorry! No, that’s not allowed! Let’s do that again,” Rutte said, breaking into a laugh.

(Additional reporting by Cath Turner; Editing by Kieran Murray)

Piglets aborted, chickens gassed as pandemic slams meat sector

By Tom Polansek and P.J. Huffstutter

CHICAGO (Reuters) – With the pandemic hobbling the meat-packing industry, Iowa farmer Al Van Beek had nowhere to ship his full-grown pigs to make room for the 7,500 piglets he expected from his breeding operation. The crisis forced a decision that still troubles him: He ordered his employees to give injections to the pregnant sows, one by one, that would cause them to abort their baby pigs.

Van Beek and other farmers say they have no choice but to cull livestock as they run short on space to house their animals or money to feed them, or both. The world’s biggest meat companies – including Smithfield Foods Inc, Cargill Inc, JBS USA and Tyson Foods Inc – have halted operations at about 20 slaughterhouses and processing plants in North America since April as workers fall ill, stoking global fears of a meat shortage.

Van Beek’s piglets are victims of a sprawling food-industry crisis that began with the mass closure of restaurants – upending that sector’s supply chain, overwhelming storage and forcing farmers and processors to destroy everything from milk to salad greens to animals. Processors geared up to serve the food-service industry can’t immediately switch to supplying grocery stores.

Millions of pigs, chickens and cattle will be euthanized because of slaughterhouse closures, limiting supplies at grocers, said John Tyson, chairman of top U.S. meat supplier Tyson Foods.

Pork has been hit especially hard, with daily production cut by about a third. Unlike cattle, which can be housed outside on pasture, U.S. hogs are fattened up for slaughter inside temperature-controlled buildings. If they are housed too long, they can get too big and injure themselves. The barns need to be emptied out by sending adult hogs to slaughter before the arrival of new piglets from sows that were impregnated just before the pandemic.

“We have nowhere to go with the pigs,” said Van Beek, who lamented the waste of so much meat. “What are we going to do?”

In Minnesota, farmers Kerry and Barb Mergen felt their hearts pound when a crew from Daybreak Foods Inc arrived with carts and tanks of carbon dioxide to euthanize their 61,000 egg-laying hens earlier this month.

Daybreak Foods, based in Lake Mills, Wisconsin, supplies liquid eggs to restaurants and food-service companies. The company, which owns the birds, pays contract farmers like the Mergens to feed and care for them. Drivers normally load the eggs onto trucks and haul them to a plant in Big Lake, Minnesota, which uses them to make liquid eggs for restaurants and ready-to-serve dishes for food-service companies. But the plant’s operator, Cargill Inc, said it idled the facility because the pandemic reduced demand.

Daybreak Foods, which has about 14.5 million hens with contractor-run or company-owned farms in the Midwest, is trying to switch gears and ship eggs to grocery stores, said Chief Executive Officer William Rehm. But egg cartons are in shortage nationwide and the company now must grade each egg for size, he said.

Rehm declined to say how much of the company’s flock has been euthanized.

“We’re trying to balance our supply with our customers’ needs, and still keep everyone safe – including all of our people and all our hens,” Rehm said.

DUMPING HOGS IN A LANDFILL

In Iowa, farmer Dean Meyer said he is part of a group of about nine producers who are euthanizing the smallest 5% of their newly born pigs, or about 125 piglets a week. They will continue euthanizing animals until disruptions ease, and could increase the number of pigs killed each week, he said. The small bodies are composted and will become fertilizer. Meyer’s group is also killing mother hogs, or sows, to reduce their numbers, he said.

“Packers are backed up every day, more and more,” said Meyer.

As the United States faces a possible food shortage, and supermarkets and food banks are struggling to meet demand, the forced slaughters are becoming more widespread across the country, according to agricultural economists, farm trade groups and federal lawmakers who are hearing from farmer constituents.

Iowa Governor Kim Reynolds, along with both U.S. senators from a state that provides a third of the nation’s pork, sent a letter to the Trump administration pleading for financial help and assistance with culling animals and properly disposing of their carcasses.

“There are 700,000 pigs across the nation that cannot be processed each week and must be humanely euthanized,” said the April 27 letter.

The U.S. Department of Agriculture (USDA) said late Friday it is establishing a National Incident Coordination Center to help farmers find markets for their livestock, or euthanize and dispose of animals if necessary.

Some producers who breed livestock and sell baby pigs to farmers are now giving them away for free, farmers said, translating to a loss about $38 on each piglet, according to commodity firm Kerns & Associates.

Farmers in neighboring Canada are also killing animals they can’t sell or afford to feed. The value of Canadian isoweans – baby pigs – has fallen to zero because of U.S. processing plant disruptions, said Rick Bergmann, a Manitoba hog farmer and chair of the Canadian Pork Council. In Quebec alone, a backlog of 92,000 pigs waits for slaughter, said Quebec hog producer Rene Roy, an executive with the pork council.

A hog farm on Prince Edward Island in Canada euthanized 270-pound hogs that were ready for slaughter because there was no place to process them, Bergmann said. The animals were dumped in a landfill.

DEATH THREATS

The latest economic disaster to befall the farm sector comes after years of extreme weather, sagging commodity prices and the Trump administration’s trade war with China and other key export markets. But it’s more than lost income. The pandemic barreling through farm towns has mired rural communities in despair, a potent mix of shame and grief.

Farmers take pride in the fact that their crops and animals are meant to feed people, especially in a crisis that has idled millions of workers and forced many to rely on food banks. Now, they’re destroying crops and killing animals for no purpose.

Farmers flinch when talking about killing off animals early or plowing crops into the ground, for fear of public wrath. Two Wisconsin dairy farmers, forced to dump milk by their buyers, told Reuters they recently received anonymous death threats.

“They say, ‘How dare you throw away food when so many people are hungry?’,” said one farmer, speaking on condition of anonymity. “They don’t know how farming works. This makes me sick, too.”

Even as livestock and crop prices plummet, prices for meat and eggs at grocery stores are up. The average retail price of eggs was up nearly 40% for the week ended April 18, compared to a year earlier, according to Nielsen data. Average retail fresh chicken prices were up 5.4%, while beef was up 5.8% and pork up 6.6%.

On Van Beek’s farm in Rock Valley, Iowa, one hog broke a leg because it grew too heavy while waiting to be slaughtered. He has delivered pigs to facilities that are still operating, but they are too full to take all of his animals.

Van Beek paid $2,000 to truck pigs about seven hours to a Smithfield plant in Illinois, more than quadruple the usual cost to haul them to a Sioux Falls, South Dakota, slaughterhouse that the company has closed indefinitely. He said Smithfield is supposed to pay the extra transportation costs under his contract. But the company is refusing to do so, claiming “force majeure” – that an extraordinary and unforeseeable event prevents it from fulfilling its agreement.

Smithfield, the world’s largest pork processor, declined to comment on whether it has refused to make contracted payments. It said the company is working with suppliers “to navigate these challenging and unprecedented times.”

Hog farmers nationwide will lose an estimated $5 billion, or $37 per head, for the rest of the year due to pandemic disruptions, according to the industry group National Pork Producers Council.

A recently announced $19 billion U.S. government coronavirus aid package for farmers will not pay for livestock that are culled, according to the American Farm Bureau Federation, the nation’s largest farmer trade group. The USDA said in a statement the payment program is still being developed and the agency has received more requests for assistance than it has money to handle.

Minnesota farmer Mike Patterson started feeding his pigs more soybean hulls – which fill animals’ stomachs but offer negligible nutritional value – to keep them from getting too large for their barns. He’s considering euthanizing them because he cannot find enough buyers after Smithfield indefinitely shut its massive Sioux Falls plant.

“They have to be housed humanely,” Patterson said. “If there’s not enough room, we have to have less hogs somehow. One way or another, we’ve got to have less hogs.”

(Reporting By Tom Polansek and P.J. Huffstutter in Chicago. Additional reporting by Rod Nickel in Winnipeg, Manitoba. Writing by P.J. Huffstutter; Editing by Caroline Stauffer and Brian Thevenot)

China lab rejects COVID-19 conspiracy claims, but virus origins still a mystery

By David Stanway

SHANGHAI (Reuters) – Claims that the coronavirus pandemic originated in a laboratory in the Chinese city of Wuhan have no basis in fact, the head of the lab told Reuters, adding that there were still no conclusive answers as to where the disease started.

Conspiracy theorists have claimed SARS-CoV-2, now responsible for more than 200,000 deaths worldwide, was synthesised by the Wuhan Institute of Virology (WIV), based in the city where the disease was first identified.

Though the scientific consensus is that the coronavirus evolved naturally, such claims have gained traction. U.S. President Donald Trump said on April 15 that his government was investigating whether it had originated in the Wuhan lab.

Yuan Zhiming, professor at WIV and the director of its National Biosafety Laboratory, said “malicious” claims about the lab had been “pulled out of thin air” and contradicted all available evidence.

“The WIV does not have the intention and the ability to design and construct a new coronavirus,” he said in written responses to questions from Reuters. “Moreover, there is no information within the SARS-CoV-2 genome indicating it was manmade.”

Some conspiracy theories were fuelled by a widely read scientific paper from the Indian Institute of Technology, since withdrawn, claiming that proteins in the coronavirus shared an “uncanny similarity” with those of HIV. However, most scientists now say SARS-CoV-2 originated in wildlife, with bats and pangolins identified as possible host species.

“More than 70% of emerging infectious diseases originated from animals, especially wild animals,” Yuan said.

“In recent years, we have seen increasing risks posed by close contact between humans and wild animals, with global climate change and the continuous expansion of human activities,” he said.

All seven known human coronaviruses have origins in bats, mice or domestic animals, scientists say.

Yuan also rejected theories that the lab had accidentally released a coronavirus it had harvested from bats for research purposes, saying the lab’s biosecurity procedures were strictly enforced.

“High-level biosafety labs have sophisticated protective facilities and strict measures to ensure the safety of laboratory staff and protect the environment from contamination,” he said.

‘STILL NO ANSWERS’

Conspiracy theories are common during epidemics.

Russian scientists claimed the SARS outbreak in 2002-2003 originated in a lab, and during the emergence of HIV/AIDS in the late 1970s, some political groups also claimed the virus had been “spliced” together by government scientists.

Though the new coronavirus was first identified in Wuhan, conspiracy theories circulating within China have suggested the virus did not originate there.

Chinese foreign ministry spokesman Zhao Lijian said on Twitter in March that the coronavirus might have emerged in the United States, and there has been speculation on Chinese social media that it reached Wuhan via the World Military Games, held there in October.

Yuan did not comment directly on the claims, but said there were “still no answers” about the virus’s origins. He cited a paper by British and German scientists published this month suggesting that the SARS-CoV-2 variant circulating in the United States was a more “primitive” version of the one in China, and might have appeared there first.

“Tracing the virus’s origin is a very challenging scientific question with strong uncertainty,” Yuan said.

China has been accused of underestimating its total number of cases and trying to cover up the origins of the disease, which the government rejects.

Asked whether his institute would cooperate with an international inquiry into the pandemic, Yuan said that he was unaware of “such a mechanism”, but that the laboratory was already inspected regularly.

He added that his institute was committed to transparency and would share all available data about the coronavirus in a timely fashion.

“I hope everyone will put aside their prejudices and biases in order to provide a rational environment for research on tracing the origin of the virus,” he said.

(Reporting by David Stanway. Editing by Gerry Doyle)

As U.S. states ease restrictions, projected coronavirus death toll rises

By Doina Chiacu

WASHINGTON (Reuters) – As Georgia lifted a ban on eating in restaurants and a handful of other U.S. states began easing other restrictions aimed at fighting the coronavirus pandemic, scientists warned the death toll would climb if governors reopen businesses prematurely.

The outbreak could take more than 74,000 U.S. lives by August, compared with an earlier forecast of 67,000, according to the University of Washington’s predictive model, often cited by White House officials and state public health authorities.

The university’s Institute for Health Metrics and Evaluation (IHME) said late on Monday that the number of U.S. deaths caused by the virus was not abating as quickly as previously projected after hitting a daily peak on April 15 with about 2,700.

IHME director Christopher Murray said the death toll would climb if states reopen their economies too early.

With President Donald Trump’s administration forecasting an unemployment rate of more than 16% for April and residents chafing under stay-at-home orders, states from Alaska to Mississippi are seeking to restart their battered economies despite a lack of large-scale virus testing.

Texas Governor Greg Abbott said on Monday he would allow the state’s stay-at-home order to expire and begin reopening businesses including restaurants and retail shops in phases beginning on Friday.

The White House released a blueprint on Monday that put the onus on states to implement testing and rapid response programs, despite pleas from New York Governor Andrew Cuomo and others for federal help. It said states were responsible for identifying, and overcoming barriers to, efficient testing.

The U.S. government’s role was to “act as supplier of last resort,” the blueprint said. It would provide guidelines for easing restrictions and administering diagnostic tests, while providing technical assistance on how to best use testing technologies and align supplies with anticipated lab needs.

U.S. Senator Patty Murray, a Democrat from hard-hit Washington state, on Tuesday criticized the Republican Trump’s testing blueprint as “nothing new.”

“It doesn’t set specific, numeric goals, offer a timeframe, identify ways to fix our broken supply chain, or offer any details whatsoever on expanding lab capacity or activating needed manufacturing capacity,” she said in a statement.

“Perhaps most pathetically, it attempts to shirk obviously federal responsibilities by assigning them solely to states instead,” she said.

After crowds jammed beaches over the weekend in California, Governor Gavin Newsom said social-distancing enforcement would be stepped up.

Deborah Birx, response coordinator for the White House coronavirus task force, urged Americans on Monday to go on sheltering in place and maintain social distancing until authorities lift their orders.

“We’re beginning to understand more and more that there may be an inverse relationship for how severe the disease is and your age. So younger people could actually be infected and not know they are infected and unintentionally pass the virus on,” she told Fox News on Tuesday.

(Reporting by Doina Chiacu and Susan Heavey in Washington, additional reporting by Peter Szekely in New York; Writing by Maria Caspani, Editing by Howard Goller)

U.S. coronavirus cases approach one million, one-third of global infections: Reuters tally

By Lisa Shumaker

(Reuters) – U.S. cases of the novel coronavirus were approaching 1 million on Tuesday, having doubled in 18 days, and made up one-third of all infections in the world, according to a Reuters tally.

More than 56,000 Americans have died of the highly contagious respiratory illness COVID-19 caused by the virus, an average of about 2,000 a day this month, according to the tally.

The actual number of cases is thought to be higher, with state public health officials cautioning that shortages of trained workers and materials have limited testing capacity.

About 30% of the cases have occurred in New York state, the epicenter of the U.S. outbreak, followed by New Jersey, Massachusetts, California and Pennsylvania.

Globally, coronavirus cases top 3 million since the outbreak began in China late last year. The United States, with the world’s third-largest population, has five times as many cases as the next hardest-hit countries of Italy, Spain and France.

Of the top 20 most severely affected countries, the United States ranks fifth based on cases per capita, according to a Reuters tally. The United States has about 30 cases per 10,000 people. Spain ranks first at over 48 cases per 10,000 people, followed by Belgium, Switzerland and Italy.

U.S. coronavirus deaths, the highest in the world, now exceed the total number of Americans killed in the 1950-53 Korean War – 36,516. Coronavirus deaths total just below the 58,220 Americans killed during the Vietnam War that ended in 1975.

The coronavirus has killed more people in the United States than the seasonal flu in recent years, except for the 2017-2018 season, according to the U.S. Centers for Disease Control and Prevention (CDC) https://www.cdc.gov/flu/about/burden/past-seasons.html.

Flu deaths range from a low of 12,000 in the 2011-2012 season to a high of 61,000 during 2017-2018.

Coronavirus deaths in the United States fall far short of the Spanish flu, which began in 1918 and killed 675,000 Americans, according to the CDC.

Unprecedented stay-at-home orders to try to curb the spread of the virus have hammered the economy, with the number of Americans seeking unemployment benefits over the last five weeks soaring to 26.5 million.

About a dozen states are beginning to relax the stay-at-home restrictions despite the warning of health experts that premature actions could cause a surge in new cases.

A Reuters/Ipsos survey this month found that a bipartisan majority of Americans want go on sheltering in place to protect themselves from the coronavirus, despite the impact on the economy.

(GRAPHIC: Reuters online site for coronavirus – https://www.reuters.com/live-events/coronavirus-6-id2921484)

(Writing by Lisa Shumaker; Editing by Howard Goller)