Thousands of small-business loans may have been fraudulent, U.S. House panel finds

By Susan Cornwell and David Morgan

WASHINGTON (Reuters) – Tens of thousands of loans worth billions of dollars may have been subject to fraud, waste and abuse in the $659 billion taxpayer-funded Paycheck Protection Program (PPP) aimed at helping small U.S. businesses survive the coronavirus pandemic, according to a report released by Democratic lawmakers on Tuesday.

Over $1 billion went to companies that received multiple loans, in violation of the program’s rules, the House of Representatives Select Subcommittee on the Coronavirus Crisis said.

At an afternoon hearing, the panel’s chairman, Democratic Representative James Clyburn, chided Treasury Secretary Steven Mnuchin for saying previously that delivering aid quickly made it inevitable for Treasury to run into issues of waste.

“That is a false dichotomy. Taxpayers should not have to choose between quickly getting aid to those who need it and wasting federal funds. And there are simple steps that could have been taken to improve oversight and reduce fraud,” Clyburn said.

Democrats in Congress and the Trump administration have been at loggerheads since July over further steps to bolster the economy after Congress approved trillions of dollars in March to respond to the coronavirus pandemic.

“We are sensitive to the fact that there is more work to be done and certain areas of the economy require additional relief,” Mnuchin told the committee.

The PPP provided more than 5.2 million forgivable loans through the U.S. Small Business Administration (SBA) by the time it ended on Aug. 8.

The SBA did not immediately respond to requests for comment.

The Trump administration says the PPP has saved some 51 million jobs at a time when much of the U.S. economy has been shuttered due to the coronavirus.

Economists say the actual impact is far lower, likely between 1 million and 14 million jobs.

Republicans on the committee issued their own report saying the small business loan program had avoided fraud to the extent that is typical with other large government relief programs, such as those following Hurricanes Sandy and Katrina.

The Democratic-led panel found more than 600 loans went to companies that should have been ineligible because they had been barred from doing business with the government. Another 350 loans went to contractors with previous performance problems.

Nearly $3 billion went to businesses that were flagged as potentially problematic by a government-contracting database.

Staff found evidence that as few as 12 percent of Black and Hispanic business owners received the full funding they requested.

The SBA’s internal watchdog has also found “strong indicators” of potential PPP fraud.

(Reporting by Susan Cornwell and David Morgan; Editing by Andy Sullivan, Chizu Nomiyama, Steve Orlofsky and Richard Chang)

New York City schools to delay class start under safety deal with unions

NEW YORK (Reuters) – New York City public schools, the largest U.S. school system, will delay the start of classes by 11 days to Sept. 21 under an agreement with education unions that had pushed for additional coronavirus safety measures, Mayor Bill de Blasio said on Tuesday.

Unions, led by the United Federation of Teachers, had expressed concern that the city was rushing into its Sept. 10 scheduled start of the school year without taking adequate steps to protect teachers, students and staff from infections.

But in announcing the agreement, de Blasio was joined by union leaders who said their health and safety concerns had been met.

“What we’ve agreed to is to make sure that the health measures are in place, to make sure there is time for the appropriate preparation for our educators,” de Blasio said at a briefing.

UFT President Michael Mulgrew last month threatened to strike, which would be illegal under state law, unless schools implemented a rigorous COVID-19 testing plan and other safety measures.

Joining de Blasio, however, Mulgrew hailed the agreement.

“Our medical experts have stamped this plan, and we now can say that the New York City public school system has the most aggressive policies and greatest safeguards of any school system in America,” said Mulgrew whose union represents 133,000 teachers and other education workers.

(Reporting by Peter Szekely in New York; Editing by Chizu Nomiyama and Richard Chang)

Trump White House restarts tours, with pandemic restrictions

WASHINGTON (Reuters) – President Donald Trump’s administration will restart tours of the White House on Sept. 12 with new restrictions aimed at limiting the spread of the coronavirus, according to an announcement released on Tuesday.

Tours at the usually bustling White House complex, where Trump lives and works, were suspended after COVID-19 began spreading throughout the country. At the same time, some White House officials have tested positive for the disease, which has killed more than 180,000 people in the United States, and media organizations have limited the number of journalists showing up each day.

On Thursday, though, Trump opened the White House to more of the public, hosting the last night of his Republican party’s national convention on its South Lawn. He gave his renomination acceptance speech in front of more than 1,000 people sitting close together, most of them without face coverings.

The resumed public tours will only take place on Friday and Saturday mornings, with roughly a fifth of the usual number of guests allowed in.

Guests must wear face coverings and follow dots on the floor to remain socially distant when they check in. Federal employees along the self-guided tour route will wear face coverings and gloves, and hand sanitizer will be available, according to the announcement.

The White House has generally welcomed the public, but access has been reduced over the years to protect its residents. Famously, President Andrew Jackson, who has served as an inspiration for Trump, hosted 20,000 people for his Inauguration Day party in 1829, serving whiskey in bathtubs on the lawn. Since the attacks of Sept. 11, 2001, visitors have had to reserve tours months in advance through a member of Congress and undergo background checks.

Public tours of the Library of Congress and the U.S. Capitol remain suspended, according to their websites.

(Reporting by Lisa Lambert; editing by Jonathan Oatis)

Delivering super-cooled COVID-19 vaccine a daunting challenge for some countries

By Matthias Inverardi and Ludwig Burger

FRANKFURT (Reuters) – Getting a coronavirus vaccine from manufacturing sites to some parts of the world with rural populations and unreliable electricity supply will be an immense challenge, given the need to store some vials at temperatures as low as minus 80 degrees Celsius (-112 Fahrenheit), Deutsche Post warned on Tuesday.

The German logistics firm said that distribution of an eventual vaccine across large parts of Africa, South America and Asia would require extraordinary measures to keep deliveries of so-called mRNA vaccines refrigerated at Antarctic-level temperatures.

Companies developing vaccines requiring exceptional cold storage, such as Moderna and CureVac, are working hard to make their injections last longer in transit.

The novel class of mRNA vaccines is among the furthest advanced in a field of 33 immunization shots currently being tested on humans globally, but they may need to be cooled at minus 80 degrees Celsius.

But upgrading cold storage infrastructure in regions outside the 25 most advanced countries, home to one third of the global population, will pose an immense challenge, said Deutsche Post in its study, conducted with consultancy firm McKinsey.

Vaccine developers Translate Bio and Moderna said in June they are working to produce evidence in time for the roll-out that their respective products can be shipped and stored at less extreme temperatures.

A spokesman for CureVac said its vaccine candidate is based on an experimental rabies vaccine which has already been shown to keep its molecular structure when stored in a regular fridge for months. Tests are underway to show the COVID-19 product has the same durability and the company is confident the data will be “competitive”, he added.

Deutsche Post said that even if the vaccine cold chain requires temperatures of only minus 8 degrees Celsius the share of the world’s population with reliable access to it increases only to about 70%, with substantial parts of Africa at risk of missing out.

“We anticipate 10 billion vaccine doses will have to be distributed across the world, and that includes regions that don’t have motorway access every five miles,” Katja Busch, Chief Commercial Officer of Deutsche Post’s DHL global forwarding unit, told Reuters.

(Additional reporting by Lisa Baertlein, editing by Louise Heavens)

White House says Senate Republicans may take up COVID-19 bill next week

WASHINGTON (Reuters) – Senate Republicans are likely to take up their COVID-19 relief bill next week offering $500 billion in additional federal aid, White House chief of staff Mark Meadows said on Tuesday, adding that the administration was still weighing help for U.S. airlines.

In an interview on CNBC, Meadows said he expected Senate Republicans’ legislation would be “more targeted” than House Democrats’ offer and could either be used as a building block or be passed on its own while negotiations continue.

Congressional negotiations on further federal intervention amid the novel coronavirus pandemic remain at a standstill after the Democratic-led U.S. House of Representatives passed its $3.4 trillion measure back in May.

Republican President Donald Trump and his administration have said they could support a $1 trillion bill. Democrats offered to split the difference with a roughly $2 trillion compromise, but there has been little movement.

Meadows told CNBC the administration “was nowhere close” to Democrats’ $2 trillion offer but added: “We’ll get there in the end.”

It was unclear whether Senate Republican Leader Mitch McConnell planned to take up the bill next week. Republican Senator John Barrasso said a conference call with Treasury Secretary Steven Mnuchin and the White House was scheduled for later on Tuesday to discuss the matter.

Asked about efforts to aid airlines, which have furloughed or laid off thousands of workers and curtailed flights as the outbreak had upended travel, Meadows said any aid “remains an open question” and that the administration is “looking closely at a number of executive actions.”

Meadows said he and Mnuchin met with Trump late on Monday and that the president tasked them “to get as creative as we can within the confines of the law to put forth as much money as we can so we can keep this economy going.”

(Reporting by Susan Heavey and David Morgan; Editing by Chizu Nomiyama and Jonathan Oatis)

Coffee, ketchup and Nike Air Max: it’s the COVID consumer economy

By Nick Carey, Richa Naidu and Siddharth Cavale

(Reuters) – Instant coffee, ketchup, Lululemon yoga pants and Nike Air Max sneakers are all in. Bottled water, pricey diapers and Burberry luxury trench coats are out.

Welcome to America’s pandemic consumer economy. And it’s like nothing we’ve seen before.

“Everything we knew about supply and demand, we can essentially throw out the window because consumer behavior has changed completely,” said Piotr Dworczak, assistant professor of economics at Northwestern University.

A Reuters analysis of a varied basket of goods shows how the COVID-19 crisis has upturned a decades-old consumer model for everything from clothing to food. This has given some companies surprising power to raise prices or withdraw discounts.

Many of the new trends can be attributed to one factor, according to retail specialists: working from home.

Almost overnight, a consumer-driven economy with clearly delineated work and home spending, changed profoundly. Rising demand for certain items, as well as global supply-chain disruptions, has driven up prices.

Americans are now shelling out significantly more than a year before for coffee, eggs, sliced ham, ketchup and cheese, for example, according to the Reuters analysis of the latest pricing data from Nielsen Co, the Brewers Association and StyleSage Co.

Yet it’s a complex picture, and some of the changes in behavior seem counter-intuitive during a time of deep economic uncertainty.

Demand and prices have also increased for more expensive, or “splurge”, items like $106 men’s Nike Air Max sneakers, $105 Lululemon yoga pants and even a $1,500 Louis Vuitton handbag.

Economists put this apparent discrepancy in behavior down to the fact that many people, unable to spend outside, have more cash in hand. Even many workers on furlough are receiving jobless benefits that match their wages under a federal stimulus plan.

“If I were to consider the consumer situation right now, in a strange way, they may have more disposable income, if they kept their job,” said Nirupama Rao, an assistant professor of business economics and public policy at the University of Michigan. “Of course we’re facing mass layoffs, but the bulk of people have maintained their wages and earnings.”

‘UNPRECEDENTED PRESSURE’

Shoppers paid roughly 8% more on average for JM Smucker’s instant coffees, including Folger’s and Dunkin’, at bricks-and-mortar stores in the four weeks to Aug. 8 versus a year before, according to Nielsen data analyzed by Bernstein.

They shelled out nearly 10% more for Kraft Heinz sauces and about 5% extra for Tyson Foods’ sliced hams.

Such inflation might make commercial sense, given the bump in demand for home staples. But some consumer experts complain retailers and big brands are cutting back on promotions and using their power to shore up profits during a health crisis that has led to millions losing their livelihoods.

“Brand manufacturers have been fattening their pockets with profits while putting unprecedented pressure on the consumer who has to pay those higher prices,” said Burt Flickinger, retail consultant at Strategic Resource Group.

JM Smucker said it did not raise prices of its instant coffees in the four weeks to Aug. 8, but did cut back on some promotions for in-demand products. Kraft Heinz declined to comment, but said during earnings in July that second-quarter prices went up as it pulled some offers and discounts for scarce products. Tyson did not respond to a request for comment.

Other industry experts point out that companies have had to grapple with costly production shifts to adapt to the new landscape. They note that before the pandemic, when costs were lower and there were more promotions and discounts, prices of Heinz sauces were declining.

Pre-COVID-19, tens of millions of commuters grabbed a coffee to-go en route to work. Suddenly, instead of 20-pound (9.1 kg) bags of coffee for restaurants, or large containers of ketchup, producers have had to switch to smaller, home-use packaging.

As ketchup, mayonnaise and vinegar sales surged, Kraft Heinz diverted resources to running these production lines around the clock, while suspending others. It added extra shifts for factory workers to make grocery-sized bottles.

Egg suppliers, like market leader Cal-Maine Foods Inc., have had to overcome a shortage of cartons.

“If you look at eggs, before they’d be powdered to send to restaurants and now they have to be put in cardboard containers to go to supermarkets,” said Daniel Bachman, senior U.S. economist at Deloitte. “It took a high price to induce the change.”

Yet consumer companies cannot take demand for granted and can be burnt by raising prices.

Prices for bottled water and disposable diapers have gone up, while demand has fallen for most of the pandemic. People are unwilling to pay out extra when they can drink their own water at home, and can opt for reusable or cheaper generic diapers at a time when there’s a lack of child daycare, some economists say.

“You’re at home anyway so you’re not sending your child off somewhere in a diaper that fails,” said Rao.

A $2,245 COAT, ANYONE?

Lockdowns have meant many Americans do not travel, eat out, or go to movie theaters. As they have not been commuting or taking kids to school, many are using less gas in their cars.

So they can now splash out on other things, perhaps.

Michael Collins, a professor at the University of Wisconsin’s consumer science department, calls this a “substitution effect.”

“It’s pretty clear people behave as if they have different pots of money,” he said. “Now I don’t eat out at all, so I have a couple of hundred dollars of new income not allocated to anything. I can substitute that money away from eating out and treat myself to other things.”

This effect could help explain the rise in demand and prices for the Air Max. Nike sold about 63% of their online stocks of the shoes in July, compared with only 10% a year earlier, according to apparel data company StyleSage which collects sales information from brand websites.

Air Max prices surged 10.5% on average versus a year before.

Prices for Lululemon’s yoga pants rose 7.2%, and about 45% of stocks were sold in July versus 15% the year before.

Meanwhile, the price of Louis Vuitton’s Neverfull MM Monogram handbag has risen 5% on its website since the start of May. In July, Louis Vuitton owner LVMH said sales momentum had picked up since June, even as its star label raised prices for a third time during the pandemic.

There are some limits, though.

Demand for a Burberry woman’s trench coat has declined, with only 3% of online stocks sold in July versus 14% a year earlier.

It’s a snip at $2,245, down 3.5%.

Nike and Burberry did not respond to requests for comment, while LVMH declined to comment beyond its July remarks. Lululemon said it hadn’t raised prices on some of its core yoga pant styles, including Align and Wunder Under, but had seen a significant rise in demand for yoga products since April. The strong July sales reflected its “Warehouse Sale” offer that month, it added.

HOW LONG WILL IT LAST?

Much remains uncertain.

The U.S. epidemic and its economic consequences are moving targets, and it is unclear when – or even if – American life and consumer behavior will revert to “normal”.

The University of Michigan’s Rao said food producers had been reluctant to invest in permanent changes to retool factories. “They’re hindered by the fact there’s so much uncertainty as to how long this will last.”

Indeed, consumer demand, as well as brands’ pricing power, could change in the coming weeks and months as many Americans feel more financial pain.

The government’s first round of COVID-19-related benefits expired on July 31, leaving about 30 million unemployed Americans without the $600 weekly boost that sustained their households and promoted some discretionary spending.

With the money spigot turned off, analysts say recessionary spending behavior should take hold, with consumers cutting back.

The University of Wisconsin’s Collins said loan forbearance on mortgages, credit cards and student loans since the spring had also helped consumers.

“Eventually that will all end, and people could start to tighten up again.”

(Reporting By Nick Carey, Richa Naidu and Siddharth Cavale; Additional reporting by Silvia Aloisi; Editing by Vanessa O’Connell and Pravin Char)

COVID-19 often goes undiagnosed in hospital workers; virus may impair heart functions

By Nancy Lapid

(Reuters) – The following is a roundup of some of the latest scientific studies on the novel coronavirus and efforts to find treatments and vaccines for COVID-19, the illness caused by the virus.

COVID-19 often undiagnosed in front line hospital workers

A high proportion of COVID-19 infections among U.S. healthcare personnel appear to go undetected, according to a report on Monday in the Morbidity and Mortality Weekly Report of the U.S. Centers for Disease Control and Prevention. Between April and June, among more than 3,000 front line workers in 12 states, roughly 1 in 20 had antibody evidence of a previous COVID-19 infection, but 69% of those infections had never been diagnosed. Among those with antibodies to the novel coronavirus, about one-third did not recall having symptoms in the preceding months, nearly half did not suspect that they had been infected, and some two-thirds had never had a positive COVID-19 test. Infections among front line healthcare personnel may be going undetected, the study authors say, because some infections may be only minimally symptomatic or asymptomatic and also because personnel with symptoms may not always have access to testing. COVID-19 antibodies were less common among workers who reported using a face covering for all patient encounters and more common among those who reported a shortage of personal protective equipment. The researchers call for more frequent testing of healthcare personnel and universal use of face coverings in hospitals.

Virus may impair heart’s beating, contracting

Following recent reports that the new coronavirus can invade heart muscle cells comes the discovery that infected cells show impairments in function. In test tube experiments, researchers infected “myocytes,” or heart muscle cells, with the new coronavirus and found that before the infected cells die, they progressively lose their “electrophysiological and contractile properties.” This means they have trouble transmitting the electrical impulses that regulate heartbeats and shortening or lengthening their fibers so the heart can expand and contract to pump blood. In a paper posted online Sunday on bioRxiv ahead of peer review, the researchers note that their test tube experiments likely do not exactly replicate what happens with cells in the body, and more research is needed to confirm their findings. Still, they say, their results suggest that cardiac symptoms in COVID-19 patients are likely a direct effect of the virus and warn that “long-term cardiac complications might be possible … in patients who recover from this illness.”

Eye symptoms common in children with COVID-19

Children with COVID-19 often have non-serious eye symptoms like itching, discharge, or pink eye, a study from China suggests. Among 216 children hospitalized with COVID-19 in Wuhan, the epicenter of the outbreak there, 23% had these kinds of eye issues, doctors found. Eye problems were more common in children with other symptoms such as cough or fever. In all cases, the eye problems were mild and eventually went away either without treatment or with “minimal” eye drops, researchers reported in JAMA Ophthalmology. It is reassuring that most of the children had other symptoms first, said Dr. Douglas Fredrick, chief of pediatric ophthalmology at the Mount Sinai Health system in New York City, who was not involved in the study. If conjunctivitis, or pink eye, were always among the first symptoms, “we’d be more worried that children could spread this by pink eye from one child to another,” he told Reuters. Still, he said, the study doesn’t completely rule out that type of transmission.

Cell phone activity may predict COVID-19 spread

Cell phone use patterns suggest that when people stay home, coronavirus infection rates go down, researchers say. For a study published on Monday in JAMA Internal Medicine, they analyzed publicly available de-identified cell phone activity and location data collected between January and May from 2,740 counties across the United States. After mid-February, when the coronavirus outbreak began, cell phone activity declined significantly in workplaces, stores and restaurants, and mass transit stations and increased in homes – with the greatest initial changes seen in areas with higher rates of COVID-19. Two weeks after cell phone activity shifted away from workplaces and retail locations, the counties with the most pronounced changes had the lowest rates of new COVID-19 cases. “Perhaps reassuringly,” the researchers said, cell phone activity at grocery stores and in areas classified as parks was not strongly associated with rates of growth in COVID-19 cases. They speculate that publicly available cell phone location data might help health offices better predict COVID-19 growth rates and inform decision about where to implement shutdowns and re-openings.

(Reporting by Nancy Lapid and Linda Carroll; Editing by Bill Berkrot)

Nestle gets peanut allergy treatment with $2 billion Aimmune buyout

By Silke Koltrowitz and Manas Mishra

(Reuters) – Nestle will pay $2 billion to buy the remaining stake in Aimmune Therapeutics Inc., gaining full ownership of the first U.S.-approved peanut allergy treatment which has struggled with a slow launch due to the COVID-19 pandemic.

Nestle said on Monday its offer for Aimmune values the California-based drugmaker, in which it already has a stake of around 25.6%, at $2.6 billion.

Aimmune’s shares more than doubled on Monday, just shy of Nestle’s offer price of $34.50 per share.

The U.S. company’s shares have slumped this year, as the pandemic led to many clinician’s offices remaining shut, leading to a slow launch of its therapy, Palforzia, which was approved in January.

Shares “started 2020 right about at this level before the pandemic, and resultant shut-down of allergy clinics across the U.S. essentially killed the launch of Palforzia,” Piper Sandler analyst Christopher Raymond said.

“As pandemic-related disruption recedes and Palforzia’s true demand begins to manifest, it will be deemed that Nestle got itself a bargain here,” Raymond added.

Peanut allergies are prevalent in an estimated 1.6 million teens and children in the United States alone, making it a lucrative market that could eventually help Aimmune bring in billions of dollars in sales.

The deal helps Nestle, known for its KitKat chocolate bars and Nescafe instant coffee, expand its Nestle Health Science division which it set up in 2011 to open up a new area of business.

With Nestle’s prior investment of $473 million, it would be making a cash payment of just under $2 billion, Nestle Health head Greg Behar told Reuters.

The unit was on track to more than double sales by 2022, from 2 billion Swiss francs ($2.21 billion) in 2014, and was expected to close 2020 at 3.3 billion francs, Behar added.

($1 = 0.9035 Swiss francs)

(Reporting by Silke Koltrowitz in Zurich and Manas Mishra in Bengaluru; Editing by John Miller, Alexander Smith and Shounak Dasgupta)

Scientists see downsides to top COVID-19 vaccines from Russia, China

By Allison Martell and Julie Steenhuysen

TORONTO/CHICAGO (Reuters) – High-profile COVID-19 vaccines developed in Russia and China share a potential shortcoming: They are based on a common cold virus that many people have been exposed to, potentially limiting their effectiveness, some experts say.

CanSino Biologics’ vaccine, approved for military use in China, is a modified form of adenovirus  type 5, or Ad5. The company is in talks to get emergency approval in several countries before completing large-scale trials, the Wall Street Journal reported last week.

A vaccine developed by Moscow’s Gamaleya Institute, approved in Russia earlier this month despite limited testing, is based on Ad5 and a second less common adenovirus.

“The Ad5 concerns me just because a lot of people have immunity,” said Anna Durbin, a vaccine researcher at Johns Hopkins University. “I’m not sure what their strategy is … maybe it won’t have 70% efficacy. It might have 40% efficacy, and that’s better than nothing, until something else comes along.”

Vaccines are seen as essential to ending the pandemic that has claimed over 845,000 lives worldwide. Gamaleya has said its two-virus approach will address Ad5 immunity issues.

Both developers have years of experience and approved Ebola vaccines based on Ad5. Neither CanSino nor Gamaleya responded to requests for comment.

Researchers have experimented with Ad5-based vaccines against a variety of infections for decades, but none are widely used. They employ harmless viruses as “vectors” to ferry genes from the target virus – in this case the novel coronavirus – into human cells, prompting an immune response to fight the actual virus.

But many people already have antibodies against Ad5, which could cause the immune system to attack the vector instead of responding to the coronavirus, making these vaccines less effective.

Several researchers have chosen alternative adenoviruses or delivery mechanisms. Oxford University and AstraZeneca based their COVID-19 vaccine on a chimpanzee adenovirus, avoiding the Ad5 issue. Johnson & Johnson’s candidate uses Ad26, a comparatively rare strain.

Dr. Zhou Xing, from Canada’s McMaster University, worked with CanSino on its first Ad5-based vaccine, for tuberculosis, in 2011. His team is developing an inhaled Ad5 COVID-19 vaccine, theorizing it could circumvent pre-existing immunity issues.

“The Oxford vaccine candidate has quite an advantage” over the injected CanSino vaccine, he said.

Xing also worries that high doses of the Ad5 vector in the CanSino vaccine could induce fever, fueling vaccine skepticism.

“I think they will get good immunity in people that don’t have antibodies to the vaccine, but a lot of people do,” said Dr. Hildegund Ertl, director of the Wistar Institute Vaccine Center in Philadelphia.

In China and the United States, about 40% of people have high levels of antibodies from prior Ad5 exposure. In Africa, it could be as high as 80%, experts said.

HIV RISK

Some scientists also worry an Ad5-based vaccine could increase chances of contracting HIV.

In a 2004 trial of a Merck & Co Ad5-based HIV vaccine, people with pre-existing immunity became more, not less, susceptible to the virus that causes AIDS.

Researchers, including top U.S. infectious diseases expert Dr. Anthony Fauci, in a 2015 paper, said the side effect was likely unique to HIV vaccines. But they cautioned that HIV incidence should be monitored during and after trials of all Ad5-based vaccines in at-risk populations.

“I would be worried about the use of those vaccines in any country or any population that was at risk of HIV, and I put our country as one of them,” said Dr. Larry Corey, co-leader of the U.S. Coronavirus Vaccine Prevention Network, who was a lead researcher on the Merck trial.

Gamaleya’s vaccine will be administered in two doses: The first based on Ad26, similar to J&J’s candidate, and the second on Ad5.

Alexander Gintsburg, Gamaleya’s director, has said the two-vector approach addresses the immunity issue. Ertl said it might work well enough in individuals who have been exposed to one of the two adenoviruses.

Many experts expressed skepticism about the Russian vaccine after the government declared its intention to give it to high-risk groups in October without data from large pivotal trials.

“Demonstrating safety and efficacy of a vaccine is very important,” said Dr. Dan Barouch, a Harvard vaccine researcher who helped design J&J’s COVID-19 vaccine. Often, he noted, large-scale trials “do not give the result that is expected or required.”

(Additional reporting by Christine Soares in New York, Kate Kelland in London, Polina Ivanova in Moscow and Roxanne Liu in Beijing; Editing by Caroline Humer and Bill Berkrot)

What you need to know about the coronavirus right now

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

Global records

India reported 78,512 new novel coronavirus infections on Monday, slightly fewer than its record set the previous day when it posted the biggest, single-day tally of infections of any country in the pandemic. On Sunday, India’s total of 78,761 new cases exceeded the previous record of 77,299 in the United States on July 16, a Reuters tally of official data showed.

Despite the surging case numbers, Prime Minister Narendra Modi has been pushing for a return to normalcy to lessen the economic pain of the pandemic, having earlier imposed strict lockdowns of the country’s 1.3 billion people.

U.S. cases of the novel coronavirus surpassed 6 million on Sunday as many states in the Midwest reported increasing infections, according to a Reuters tally. While the United States has the most recorded infections in the world, it ranks tenth based on cases per capita.

More than eight months into the pandemic, the United States continues to struggle with testing. The number of people tested has fallen in recent weeks. Public health officials believe the United States needs to test more frequently to find asymptomatic coronavirus carriers to slow the spread of the COVID-19 disease.

Mutation found in Indonesia

A more infectious mutation of the new coronavirus has been found in Indonesia, the Jakarta-based Eijkman Institute for Molecular Biology said on Sunday, as the Southeast Asian country’s caseload surges.

The “infectious but milder” D614G mutation of the virus has been found in genome sequencing data from samples collected by the institute, deputy director Herawati Sudoyo told Reuters, adding that more study is required to determine whether that was behind the recent rise in cases.

The strain, which the World Health Organization said was identified in February and has been circulating in Europe and the Americas, has also been found in neighboring Singapore and Malaysia.

Vaccine approval and use underway in China

Sinovac Biotech Ltd’s coronavirus vaccine candidate CoronaVac was approved for emergency use as part of a program in China to vaccinate high-risk groups such as medical staff, a person familiar with the matter said.

China National Biotec Group (CNBG), a unit of state-owned pharmaceutical giant China National Pharmaceutical Group (Sinopharm), also said it had obtained emergency use approval for a coronavirus vaccine candidate in social media platform WeChat last Sunday. CNBG, which has two vaccine candidates in phase 3 clinical trials, did not say which of its vaccines had been cleared for emergency use.

China has been giving experimental coronavirus vaccines to high-risk groups since July, though officially it has given little details on which vaccine candidates have been given to high-risk people under the emergency use program and how many people have been vaccinated.

Lighter traffic in Seoul; masks on in Auckland

Private tuition centers shut for the first time and traffic was lighter in South Korea’s capital on Monday, the first working day of tighter social-distancing rules designed to halt a second wave of coronavirus outbreaks.

The decision came after earlier restrictions on movement failed to prevent a second wave of coronavirus infections from erupting at churches, offices, nursing homes and medical facilities.

Meanwhile in Auckland, schools and businesses reopened on Monday after the lifting of a lockdown in New Zealand’s largest city to contain the resurgence of the coronavirus, but face masks were made mandatory on public transport across the country. Prime Minister Jacinda Ardern said she was confident the new measure would be taken up across New Zealand, adding that “a bit of smiling with the eyes behind the mask” and kindness to Aucklanders in particular, would help get the country through the latest outbreak.

(Compiled by Karishma Singh; Editing by Jacqueline Wong)