First coronavirus case found in sprawling migrant camp at U.S. border

By Julia Love

MEXICO CITY (Reuters) – An asylum seeker has tested positive for coronavirus in a sprawling encampment steps from the U.S. border in Matamoros, Mexico, underscoring the challenges migrants face in protecting themselves from the pandemic.

After showing symptoms of the virus last Thursday, the migrant and three family members were placed in isolation and tested, Global Response Management (GRM), a nonprofit providing medical services in the camp, said in a statement.

When results came back Monday, the migrant who had displayed symptoms tested positive and the relatives had negative results.

Two others with symptoms of the virus are also in isolation, GRM said.

Since cases of coronavirus in Mexico began to rise in March, advocates and government officials have been intensely worried about the potential for an outbreak in the camp, where an estimated 2,000 migrants live in tents on the banks of the Rio Grande river.

“The presence of COVID-19 in an already vulnerable population exposed to the elements could potentially be catastrophic,” GRM said in a statement.

U.S. Customs and Border Protection did not immediately respond to a request for comment.

Many migrants living in the camp are U.S. asylum seekers who were sent back to Mexico to await the outcome of their cases under a controversial Trump administration policy known as “Migrant Protection Protocols.”

To prepare for the virus, GRM sought to improve sanitation in the camp by setting up 88 “handwashing stations,” distributed multivitamins to boost migrants’ immune systems and built a 20-bed field hospital.

Luz, a 42-year-old asylum seeker from Peru who asked that her last name not be used due to safety concerns, said she has tried to isolate as much as possible, though she sometimes ventures out of her tent to seek some relief from the fierce Matamoros heat.

“I truly am not afraid, though I try to be cautious,” she said. “But you can’t stay in your tent all the time… It’s too hot.”

(Reporting by Julia Love; Additional reporting for Ted Hesson and Kristina Cooke; Editing by Chris Reese)

NY Fed’s Williams says full recovery will likely take years

(Reuters) – The U.S. economy is showing signs of a turnaround as businesses reopen, but the pace of the recovery is being slowed by large-scale outbreaks in some states and it could be years before the economy is back at full strength, New York Federal Reserve Bank President John Williams said Tuesday.

Increases in consumer spending and in building permits suggest that economic activity is improving in some areas and that the “low point” of the downturn may have passed, Williams said. Manufacturing activity and small business revenues in hard-hit areas such as New York are picking up, he said.

“People have been getting back to work and the unemployment rate has started to edge down,” Williams said according to remarks prepared for a virtual event focused on central banking during the pandemic. “Although this improvement is welcome, the economy is still far from healthy and a full recovery will likely take years to achieve.”

The Fed moved aggressively in March to support the U.S. economy by cutting rates to near zero, buying up trillions of dollars in bonds and launching a slate of emergency lending tools to keep credit flowing to households and businesses.

On Monday the Fed opened a facility that it can use to purchase corporate bonds directly from companies, setting up the last of the several programs created to stabilize financial markets disrupted by the pandemic.

Williams said he believes it’s possible for the U.S. labor market to return to the levels seen before the pandemic, but cautioned that the large-scale outbreaks happening in some states could slow the pace of the economic recovery.

“This is a valuable reminder that the economy’s fate is inextricably linked to the path of the virus,” he said. “A strong economic recovery depends on effective and sustained containment of COVID-19.”

(Reporting by Jonnelle Marte; Editing by Chizu Nomiyama)

Major West Bank annexation move not imminent, Israeli minister signals

By Jeffrey Heller

JERUSALEM (Reuters) – An Israeli minister played down on Tuesday the likelihood of major moves to annex Jewish settlements in the occupied West Bank on July 1, the planned start date for cabinet debate on the issue.

Zeev Elkin, a member of Prime Minister Benjamin Netanyahu’s Likud party, said Israel still did not have the green light it seeks from Washington to begin extending its sovereignty to parts of the West Bank, territory Palestinians seek for a state.

Netanyahu said in a speech he had met U.S. Ambassador David Friedman and White House adviser Avi Berkowitz to discuss “the sovereignty question,” adding: “We are working on it in these very days and will continue working on it in the coming days.”

Palestinian leaders, the United Nations, European powers and Arab countries have all denounced any annexation of land that Israeli forces captured in a 1967 war.

“Whoever painted a picture of everything happening in one day on July 1, did so at their own risk,” Elkin, minister of higher education, told Army Radio when asked what would happen on Wednesday. “From tomorrow, the clock will start ticking.”

No cabinet session for Wednesday has been announced.

Friedman and Berkowitz are in Israel as part of the White House’s efforts to win consensus within its government for annexation as envisioned in an Israeli-Palestinian peace plan announced by U.S. President Donald Trump in January.

The proposal calls for Israeli sovereignty over about 30% of the West Bank – land on which Israel has built settlements for decades – as well as creation of a Palestinian state under strict conditions.

Palestinians say the blueprint would make the state they seek in the West Bank, Gaza and East Jerusalem unviable. Most world powers view Israel’s settlements as illegal. Netanyahu says the Jewish people have a legal, historic and moral claim to the West Bank, the biblical Judea and Samaria.

Netanyahu and his main coalition government partner, Defense Minister Benny Gantz, are at odds over annexation, which the right-wing prime minister has promoted.

(Editing by Maayan Lubell and Timothy Heritage)

U.S. Supreme Court allows public money for religious schools in major ruling

By Andrew Chung and Lawrence Hurley

WASHINGTON (Reuters) – The U.S. Supreme Court narrowed the separation of church and state in a major ruling on Tuesday by endorsing Montana tax credits that helped pay for students to attend religious schools, a decision paving the way for more public funding of faith-based institutions.

In a 5-4 decision with the conservative justices in the majority and the liberal justices dissenting, the court backed a Montana program that gave tax incentives for people to donate to a scholarship fund that provided money to Christian schools for student tuition expenses.

The ruling, written by Chief Justice John Roberts, represented the court’s latest expansion of religious liberties, a priority of its conservative majority in recent years.

The court sided with three mothers of Christian school students who appealed after Montana’s top court invalidated the tax credit for violating the state constitution’s ban on public aid to churches and religious entities.

Roberts wrote, “A state need not subsidize private education. But once a state decides to do so, it cannot disqualify some private schools solely because they are religious.”

The justices faulted the Montana Supreme Court for voiding a taxpayer program merely because it can be used to fund religious entities, saying it violated the U.S. Constitution’s protection for the free exercise of religion.

President Donald Trump’s administration supported the plaintiffs in the case. His education secretary, Betsy DeVos, is a prominent supporter of such “school choice” plans. Christian conservatives are an important voter bloc for Trump, who is seeking re-election on Nov. 3.

Thirty-eight states have constitutional provisions like Montana’s barring public aid to religious entities. Opponents have said these provisions were the product of anti-Catholic bias and resulted in impermissible discrimination against religion.

Liberal Justice Stephen Breyer wrote in dissent that the ruling risks “entanglement and conflict” over where to draw the line between allowing free exercise of religion while protecting against government endorsement of religion, both of which are required under the Constitution.

The decision followed the court’s major 2017 religious rights ruling in favor of a Missouri church, Trinity Lutheran, that challenged its exclusion from state playground improvement grants generally available to other nonprofit groups. The court ruled in that case that churches and other religious entities cannot be flatly denied public money even in states whose constitutions explicitly ban such funding.

Churches and Christian groups in the United States have sought for years to widen access to taxpayer money for religious schools and places of worship, testing the limits of U.S. secularism.

The Montana tax credit program, created in 2015, provided up to $150 as an incentive for donations to groups that fund scholarships for tuition to private schools including religious schools. In practice, most of the money went to Christian schools. The one such scholarship organization currently operating provides $500 payments to schools, primarily to help lower-income students attend.

The dispute began when state tax officials limited the program to non-religious schools to comport with the state constitution’s prohibition on “direct or indirect” public aid to any church or “school, academy, seminary, college, university or other literary or scientific institution controlled in whole or in part by any church, sect, or denomination.”

Lead plaintiff Kendra Espinoza and two other mothers of students at Stillwater Christian School in Kalispell, Montana challenged the exclusion, saying state officials infringed their religious rights under the U.S. Constitution.

The Montana Supreme Court struck down the scholarship program entirely in 2018 because it could be used to pay for religious schools. Most private schools in Montana are Christian.

(Reporting by Andrew Chung in New York and Lawrence Hurley in Washington; Editing by Will Dunham)

Where COVID-19 is spreading fastest as U.S. cases rise 46% in past week

By Chris Canipe and Lisa Shumaker

(Reuters) – The United States saw a 46% increase in new cases of COVID-19 in the week ended June 28 compared to the previous seven days, with 21 states reporting positivity test rates above the level that the World Health Organization has flagged as concerning.

Nationally, 7% of diagnostic tests came back positive last week, up from 5% the prior week, according to a Reuters analysis of data from The COVID Tracking Project, a volunteer-run effort to track the outbreak.

The World Health Organization considers a positivity rate above 5% to be a cause for concern because it suggests there are more cases in the community that have not yet been uncovered.

Arizona’s positivity test rate was 24% last week, Florida’s was 16%, and Nevada, South Carolina and Texas’s were all 15%, according to the analysis.

Thirty-one states, mostly in the U.S. West and South, reported more new cases of COVID-19 last week compared to the previous week, the analysis found. Florida, Louisiana, Idaho and Washington state saw new cases more than double over that period.

In response to the new infections, Louisiana and Washington state have temporarily halted the reopening of their economies. Washington also mandated wearing masks in public.

Florida ordered all bars and some beaches to close. Idaho was not immediately available for comment.

Nationally, new COVID-19 cases have risen every week for four straight weeks. While part of that increase can be attributed to a 9% expansion in testing, health experts have also worried about states relaxing stay-at-home orders that had been credited with curbing the outbreak.

State officials across the country report the same trend in the new cases: People under 35 years old are going to bars, parties and social events without masks, becoming infected, and then spreading the disease to others.

Cases continue to decline in Northeast states, but some Midwest states that had new infections under control are seeing cases once again rise, including Illinois, Michigan and Pennsylvania.

 

(Reporting by Chris Canipe in Kansas City, Missouri, and Lisa Shumaker in Chicago; Editing by Tiffany Wu)

China passes national security law in turning point for Hong Kong

By Clare Jim and Yew Lun Tian

HONG KONG/BEIJING (Reuters) – China’s parliament passed national security legislation for Hong Kong on Tuesday, setting the stage for the most radical changes to the former British colony’s way of life since it returned to Chinese rule 23 years ago.

Details of the law – which comes in response to last year’s often-violent pro-democracy protests in the city and aims to tackle subversion, terrorism, separatism and collusion with foreign forces – were yet to be released.

Hong Kong leader Carrie Lam nevertheless welcomed the law’s passage and said it would come into effect later on Tuesday, giving the city’s 7.5 million people little time to digest what is expected to be highly complex legislation.

Amid fears the law will crush the global financial hub’s freedoms, and reports that the heaviest penalty under it would be life imprisonment, pro-democracy activist Joshua Wong’s Demosisto group said it would dissolve.

“It marks the end of Hong Kong that the world knew before,” Wong said on Twitter.

The legislation pushes Beijing further along a collision course with the United States, Britain and other Western governments, which have said it erodes the high degree of autonomy the city was granted at its July 1, 1997, handover.

The United States, already in dispute with China over trade, the South China Sea and the coronavirus, began eliminating Hong Kong’s special status under U.S. law on Monday, halting defense exports and restricting technology access.

China said it would retaliate.

Lam, in a video message to the United Nations Human Rights Council in Geneva, urged the international community to “respect our country’s right to safeguard national security”.

She said the law would not undermine the city’s autonomy or its independent judiciary.

Authorities in Beijing and Hong Kong have repeatedly said the legislation is aimed at a few “troublemakers” and will not affect rights and freedoms, nor investor interests.

The editor-in-chief of the Global Times, a tabloid published by the People’s Daily, the official newspaper of China’s ruling Communist Party, said on Twitter the heaviest penalty under the law was life imprisonment.

As the law was passed in Beijing, the Chinese People’s Liberation Army garrison in Hong Kong held a drill which included exercises to stop suspicious vessels and arrest fugitives, according to the Weibo social media account of state-run CCTV’s military channel.

‘OVERPOWERING’

The legislation may get an early test with activists and pro-democracy politicians saying they would defy a police ban, amid coronavirus restrictions, on a rally on the anniversary of the July 1 handover.

At last year’s demonstration, which came amid a series of pro-democracy protests, a crowd stormed and vandalized the city’s legislature.

“We will never accept the passing of the law, even though it is so overpowering,” said Democratic Party chairman Wu Chi-wai.

It is unclear if attending the unauthorized rally would constitute a national security crime.

A majority in Hong Kong opposes the legislation, a poll conducted for Reuters this month showed, but support for the protests has fallen to only a slim majority.

Police dispersed a handful of activists protesting against the law at a shopping mall.

Dozens of supporters of Beijing popped champagne corks and waved Chinese flags in celebration in front of government headquarters.

“I’m very happy,” said one elderly man, surnamed Lee.

“This will leave anti-China spies and people who brought chaos to Hong Kong with nowhere to go.”

This month, China’s official Xinhua news agency unveiled some of the law’s provisions, including that it would supersede existing Hong Kong legislation and that interpretation powers belong to China’s parliament top committee.

Beijing is expected to set up a national security office in Hong Kong for the first time and could also exercise jurisdiction on certain cases.

Judges for security cases are expected to be appointed by the city’s chief executive. Senior judges now allocate rosters up through Hong Kong’s independent judicial system.

It is not known which specific activities are to be made illegal, how precisely they are defined or what punishment they carry.

Britain, the European Union, Japan, Taiwan and others have also criticized the legislation.

China has hit back at the outcry, denouncing “interference” in its internal affairs.

(Additional reporting by Yanni Chow, Carol Mang, Joyce Zhou, Tyrone Siu, Jessie Pang and James Pomfret in Hong Kong; Writing by Marius Zaharia; Editing by Michael Perry, Robert Birsel)

‘Wear a mask!’ Republicans change tune as COVID-19 surges

By Doina Chiacu

WASHINGTON (Reuters) – Republican lawmakers are making a public push for face coverings, splitting with mask-averse U.S. President Donald Trump on the issue as COVID-19 cases surge in some Republican-leaning states.

The top Republican in the House of Representatives, Kevin McCarthy, said on Monday every American has a responsibility to follow recommendations to help slow the spread of the coronavirus.

“They should wear a mask,” McCarthy told CNBC after his home state of California began to roll back efforts to reopen the economy. “If you cannot social distance, you need to be wearing a mask and you need to be respectful to one another.”

Republican Senator Tim Scott of South Carolina, where cases are spiking, posted a similar message on Twitter.

“I am encouraging everyone to WEAR YOUR MASKS!” he said.

While a number of Republican politicians have donned masks themselves, some have shied away from insisting Americans cover their faces in public, saying it was a matter of personal choice.

That began to change as coronavirus cases nationwide soar to record levels day after day, prompting Republican-led states like Texas and Florida to re-impose restrictions, such as closing recently reopened bars.

Vice President Mike Pence encouraged Americans to wear masks during a visit to Texas on Sunday.

In one of the more compelling images, U.S. Representative Liz Cheney of Wyoming on Friday tweeted a photo of her father, Republican former Vice President Dick Cheney, wearing a surgical mask with the hashtag #realmenwearmasks.

(Reporting by Doina Chiacu; Editing by Bill Berkrot)

WHO sending team to China to investigate origins of coronavirus

GENEVA (Reuters) – The World Health Organization is sending a team to China next week to investigate the origins of the novel coronavirus, its head Tedros Adhanom Ghebreyesus told a briefing on Monday.

The United States, the WHO’s largest critic which has said it is leaving the U.N. agency, has called for an investigation into the origin of the coronavirus.

President Donald Trump and Secretary of State Mike Pompeo have said it may have originated in a laboratory, although they have presented no evidence for this and China strongly denies it.

(Writing by Peter Graff; Editing by Alison Williams)

From New York to Houston, flood risk for real estate hubs ramps up

By Kate Duguid and Ally Levine

NEW YORK (Reuters) – The number of properties in the United States in danger of flooding this year is 70% higher than government data estimates, research released on Monday shows, with at-risk hot spots in Houston, New York, Los Angeles and Chicago.

The higher risk identified could have implications for property values as well as insurance rates, municipal bonds and mortgage-backed securities, according to investors and researchers at First Street Foundation, which released the data. (http://www.floodfactor.com)

“This could change the calculus on whether a given property is resalable, or what price you sell it at,” said Tom Graff, head of fixed income at Brown Advisory.

The data, which covers the contiguous United States, found that around 14.6 million properties, or 10.3%, are at a substantial risk of flooding this year versus the 8.7 million mapped by the Federal Emergency Management Agency (FEMA).

FEMA maps are currently used to determine rates on government flood insurance and underpin risk assessments done by mortgage lenders, investors and home buyers. The maps, however, only account for coastal flooding – not rain or rivers – and do not incorporate the ways climate change has made storms worse.

A FEMA spokesperson said that First Street’s maps build on those created by the agency and the two are not incompatible.

Los Angeles, Chicago, Houston, New York and Cape Coral, Florida top First Street’s list of cities with the most number of properties at risk. At the state level, Florida, Texas, California, New York and Pennsylvania have the most to lose. Florida and Texas also top FEMA’s list, but with significantly fewer properties estimated to be at risk.

Washington, D.C., has the greatest deviation from FEMA’s numbers, 438.4% more properties at risk, because First Street accounts for potential flooding from the Potomac and Anacostia rivers and a drainage basin under the city. Utah, Wyoming, Montana and Idaho have the next highest deviations, all between three to four times greater than FEMA estimates.

Commercial mortgage-backed securities (CMBS), investments that pool loans for office buildings, hotels, shopping centers and more, are among the securities most exposed to flood risk because of the concentration of cities on the U.S. coasts.

“There is a moral hazard within the investment community of not pricing in the risk of something like this happening,” said Scott Burg, chief investment officer at hedge fund Deer Park Road.

Nearly 20% of all U.S. commercial real estate value is located in Houston, Miami and New York, according to CoStar data, each of which has been hit by hurricanes in the last decade.

Hurricane Harvey, which slammed Houston in 2017 and caused $131 billion damage, affected over 1,300 CMBS loans, 3% of the CMBS market in 2017, according to BlackRock research. Hurricane Irma in 2017 affected 2%.

The BlackRock report concluded that 80% of the commercial property damaged by those two storms was outside of FEMA flood zones, indicating that many of the buildings hit may not have been appropriately insured.

Any floods this year could compound the effects of the coronavirus pandemic, which has sent more than $32 billion of commercial loans into special servicing – negotiations for relief in the event of a default – according to Moody’s.

“For property owners that’s like getting your arm amputated and then your head lopped off,” said Jacob Hagi a professor of finance at the University of North Carolina and a First Street research partner.

(Reporting by Kate Duguid; editing by Megan Davies and Steve Orlofsky)

U.S. Supreme Court spurns environmental challenge to Trump’s border wall

By Jan Wolfe

WASHINGTON (Reuters) – The U.S. Supreme Court on Monday declined to hear a challenge by four environmental groups to the authority of President Donald Trump’s administration to build his promised wall along the border with Mexico.

The justices turned away an appeal by the groups of a federal judge’s ruling that rejected their claims that the administration had unlawfully undertaken border wall projects in Arizona, California, New Mexico and Texas harmful to plant and animal life. The groups had argued that the 1996 law under which the administration is building the wall gave too much power to the executive branch in violation of the U.S. Constitution.

The groups that sued are the Center for Biological Diversity, the Animal Legal Defense Fund, Defenders of Wildlife and the Southwest Environmental Center. They said the wall construction efforts would harm plants, wildlife habitats and endangered species including the jaguar, Mexican gray wolf and bighorn sheep.

The border wall is one of Trump’s signature 2016 campaign promises, part of his hard line policies toward illegal and legal immigration. The Republican president has vowed to build a wall along the entire 2,000-mile (3,200-km) U.S.-Mexico border. He promised that Mexico would pay for it. Mexico has refused.

The 1996 law, aimed at combating illegal immigration, gave the U.S. government authority to build border barriers and preempt legal requirements such as environmental rules. It also limited the kinds of legal challenges that could be brought.

The environmental groups argued that the law was unconstitutional because it gave too much power to the executive branch – in this case the Department of Homeland Security – to get around laws like the Endangered Species Act and the National Environmental Policy Act without congressional input.

Progress toward building the wall has been limited because Congress has not provided the funds Trump has sought, leading him to divert money – with the blessing of the Supreme Court – from the U.S. military and other parts of the federal government.

Trump on June 23 visited a newly built section of the wall along the frontier with Mexico in San Luis, Arizona, autographing a plaque commemorating the 200th mile (320 km) of the project.

(Reporting by Jan Wolfe; Editing by Will Dunham)