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Virgin Orbit in talks with SPAC for $three billion deal to go public

Richard Branson’s Virgin Orbit takes off on a rocket under the wings of a modified Boeing 747 jetliner for a major drop test of its high-altitude launch system for satellites from Mojave, Calif., July 10, 2019.

Mike Blake | Reuters

Virgin Orbit, the satellite launch spin-off from Sir Richard Branson’s Virgin Galactic, is in advanced discussions to go public via a SPAC led by a former Goldman Sachs partner valued at approximately $ 3 billion , confirmed CNBC on Saturday.

The company is in talks about a deal with NextGen Acquisition II, a person familiar with the discussions told CNBC. NextGen II is a special-purpose acquisition company co-led by George Mattson, who previously led Goldman’s global industrial group, and former PerkinElmer Chairman and CEO Gregory Sum.

Sky News first covered the talks on Saturday and said a deal will be announced in the coming weeks. Virgin Orbit declined CNBC’s request for comment.

The company is a spin-off from Branson’s space tourism company Virgin Galactic. Virgin Orbit is privately owned by Branson’s multinational conglomerate Virgin Group, with a minority stake in Abu Dhabi sovereign wealth fund Mubadala.

The company’s first demonstration launch in May 2020.

Greg Robinson | Jungfrau Railway Or

Virgin Orbit uses a modified Boeing 747 aircraft to launch its missiles, a method known as air launch. Rather than launching missiles from the ground like competitors like Rocket Lab or Astra do, the company’s planes carry its LauncherOne missiles up to an altitude of around 45,000 feet and drop them just before they fire the engine and accelerate into space – a method that the company is promoting more flexibly than a ground-based system.

LauncherOne is designed to carry small satellites weighing up to 500 kilograms, or around 1,100 pounds, into space. Virgin Orbit completed its first successful launch in January and plans to have its second later this month.

Next Gen II raised $ 350 million when it completed its IPO in March and an additional $ 33 million greenshoe deal in April for a total of $ 383 million. The funds would primarily be used to help Virgin Orbit scale its business. Virgin Orbit CEO Dan Hart told CNBC in October that the company plans to raise approximately $ 150 million in fresh capital.

Branson brought Virgin Galactic to the public in 2019 through a SPAC deal with billionaire investor Chamath Palihapitiya.

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Saudi Arabia Limits Hajj to 60,000 From Inside the Nation

The annual Hajj pilgrimage to Mecca next month will be limited to 60,000 due to the coronavirus pandemic and to people living in Saudi Arabia, the Saudi press agency said on Saturday, as authorities host an event that normally attracts millions of people , strictly restrict each year from all over the world.

The event was almost completely abandoned last year when only about 1,000 people with social distancing and masking requirements were able to attend the ritual.

The Hajj, which all physically and financially capable Muslims should complete at least once, is scheduled to begin in mid-July. The press agency announced that participation is limited to vaccinated pilgrims between the ages of 18 and 65.

The Saudi authorities announced last month that the ritual would not return to normal this year. Fahad Nazer, a spokesman for the Saudi Embassy in Washington, said on Twitter that “there will be preventive and preventive measures to ensure the health and safety of pilgrims”.

The decision, attributed to the Ministry of Hajj and Umrah, will disappoint many Muslims, who often save up and wait for years for the pilgrimage in hopes of obtaining a Hajj visa. Getting a spot can be difficult as demand is exceptionally high and Saudi Arabia limits the number of pilgrims who can attend from each country each year.

Saudi Arabia has reported 7,537 coronavirus deaths, according to a New York Times database. It recently reopened to international air travel but also said vaccination will be required to enter most buildings and public transportation as of August.

In other news from around the world:

  • In France, Officials granted an exception to the country’s pandemic curfew on Friday night, which allowed 5,000 fans to stay for the remainder of the French Open semi-final game between Rafael Nadal and Novak Djokovic.

  • In the United States, Fully vaccinated lawmakers and House staff no longer need to wear a mask or maintain a two-meter social distance after updated Congressional physician guidelines were issued on Friday.

  • In Canada, 300,000 doses of Johnson & Johnson’s Covid vaccine have been rejected by the country’s health product regulatory agency due to contamination issues at the U.S. facility where it was manufactured.

  • In Brasil, At least a dozen players and employees of the Venezuelan national soccer team tested positive for the corona virus the day before the Copa America opener against Brazil.

  • In the Democratic Republic of the Congo, The country’s president, Felix Tshisekedi, said Saturday that the hospitals in the state capital Kinshasa were “overwhelmed,” Reuters reported. The Congo reported one of the highest daily case numbers since the pandemic began on Friday.

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Meet the researcher attempting to get Biden to forgive pupil debt

Charlie Eaton

Courtesy: Charlie Eaton

The odds of student loan forgiveness happening have never been greater, experts say. Yet a number of large obstacles stand in the way, some practical and others ideological.

Does the president have the authority to cancel the debt? Officials at the U.S. Department of Education and the U.S. Department of Justice are currently trying to find answers to that question.

If they conclude President Joe Biden can do so, will he? And if they decide he doesn’t, will Democrats, despite their razor-thin majority, manage to pass legislation forgiving student debt?

At the center of the ideological debate, meanwhile, is the question over who would really benefit from a jubilee. A number of critics of broad student loan forgiveness say the policy would direct taxpayer dollars to people who are already relatively well-off, since college degrees lead to higher earnings.

More from Invest in You:
Almost half of Americans to take on debt as a treat post-pandemic
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Biden has also questioned the fairness of canceling student debt, framing borrowers on multiple recent occasions as more privileged than others. “The idea that you go to Penn and you’re paying a total of 70,000 bucks a year and the public should pay for that? Biden said in an interview with The New York Times in May. “I don’t agree.”

And at a CNN town hall back in February, Biden said it didn’t make sense to cancel the loans “for people who have gone to Harvard and Yale and Penn.”

Now a group of scholars at the Roosevelt Institute, a progressive think tank, have published research they hope will change the minds of Biden and other critics when it comes to student loan forgiveness.

Their biggest finding is that canceling $50,000 for all student loan borrowers would wipe out more than $17,000 per person among Black households in the bottom 10% of net worth, and over $11,000 among white and Latinx households in that lowest range.

Zoom In IconArrows pointing outwards

Meanwhile, the average cancellation would be just $562 per person for those in the top 10% of net worth.

In other words: A jubilee would most benefit those who are least well-off.

CNBC spoke this week with Charlie Eaton, an economic sociologist and one of the report’s authors, about its findings and how he hopes they will impact the ongoing debate about student loan forgiveness. (The interview has been condensed and edited for clarity.)

Annie Nova: Where do you think the idea that student loan forgiveness would help those who are well-off comes from?

Charlie Eaton: Part of the myth that cancellation would help wealthy people comes from the original theory that was used to justify student loans: that individuals are better off borrowing to go to college than not going to college at all. Folks are committed to this model and justify it as something that promotes equity.

Student loan forgiveness would only be a small initial step toward redressing the economic legacy of slavery and Jim Crow. But it’s necessary.

AN: You write that race is “a glaring omission” in the arguments against student loan forgiveness. Why do you think race has been left out?

CE: A lot of the most groundbreaking work on wealth inequality has happened in the last decade. I think the newness of this knowledge is part of it. But there’s also been a willful ignorance on racial inequality by those folks who wanted to see student loans as an easy way to pay for higher education in America in place of adequate taxes and spending.

AN: You talk about student loan forgiveness as a form of racial reparations. Why?

CE: Student loan forgiveness would only be a small initial step toward redressing the economic legacy of slavery and Jim Crow. But it’s necessary to enable Black borrowers to build wealth, because Black college-goers borrow at much higher rates than white borrowers. And, as a result, it’s much harder for them to get home loans and accumulate savings.

AN: Your report expresses doubts about the effectiveness of more narrow student loan forgiveness policies, such as one that would target low-income borrowers. Why do you think a broader cancellation is the way to go?

CE: If you try to layer on these exclusions, you have greater risk of failing to undo the inequities that have been created by our student loan system. For example, if you were going to go just by income, and you said we’re not going to cancel student loans for folks who make more than $75,000 a year, you’d be excluding the disproportionate number of Black professionals who may have incomes at that level but also have much more student debt than their white counterparts.

AN: What do you see as the biggest challenge to getting student loans cancelled?

CE: Joe Biden. He seems to have accepted this myth that student debt cancellation disproportionally helps wealthier folks when the opposite is true. He has said it wouldn’t be fair to cancel debt for folks who went to Harvard or Yale or Penn. The thing is Harvard has essentially already cancelled debt for its students: Only 3% of undergraduates at Harvard have any student loan debt at all. I’m hoping our research will get through to Biden to help him understand student debt cancellation will flow to those who need it.

AN: Do you know if anyone in the Biden administration has seen your research yet?

CE: We’ve shared our work directly with White House and Department of Education staff. And we’re optimistic that the Biden administration is looking seriously at the president’s ability to cancel student debt.

The White House did not immediately respond to a request for comment.

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G7 Information: A Return to Face-to-Face Diplomacy

Here’s what you need to know:

Credit…Ludovic Marin/Agence France-Presse — Getty Images

PLYMOUTH, England — Call it the much-welcomed end of Zoom diplomacy.

Four months ago, President Biden held his first work-from-home meeting with a world leader, conferring with Prime Minister Justin Trudeau of Canada in the only viable way during a pandemic: a video call from the Roosevelt room in the White House.

More Zoom calls followed: a virtual meeting of a group known as “the Quad,” which includes the president, along with the leaders of Australia, India and Japan; and then a global climate summit “hosted” by Mr. Biden but conducted “Brady Bunch” style, with leaders stacked in video squares on big screens.

But this week, all that ended.

Mr. Biden jetted across the Atlantic for an eight-day in-person round of global backslapping and private confrontations. On Thursday, he met with Prime Minister Boris Johnson of Britain. And on Friday he is attending the first day of a Group of 7 meeting with the leaders of the world’s richest nations, the first in-person gathering of its sort in more than 15 months. On Wednesday, he will face off with President Vladimir Putin of Russia.

“I don’t think it’s possible to overstate the importance of face-to-face diplomacy,” said Madeleine Albright, who served as secretary of state under President Bill Clinton.

“On the Zoom, you have no kind of sense of their movements and how they sit and various things that show what kind of person you are dealing with,” she said. “You can’t judge what’s going through their minds.”

For Mr. Biden, who built his career on the kind of personal interactions that are at the heart of international summits like the G7, the change is particularly sweet.

Even before he was president, Mr. Biden was a regular around the world as a senator or vice president, usually making stops at gatherings with world leaders or jetting to summits. He was a regular at the Munich Security Conference in Germany, an annual gathering of national security officials from numerous countries.

“I’ve been at the Munich Security Conference when he’s been there,” Ms. Albright recalled in an interview on Friday. “You can just tell he’s listening to them and they’re listening to him. It’s a perfect setting for him.”

VideoVideo player loadingIn-person gatherings are back and that was no exception at the Group of 7 summit, where leaders met each other face-to-face for the first time in more than a year. Their greetings included elbow bumps and handshakes.

That can’t be said of all presidents — or perhaps most of them. President Barack Obama disliked the endless pomp of the formal summits that he attended during his eight years in the White House, especially the substance-free moments like the “family photo,” where the world leaders stand stiffly next to one another while photographers snap their shots.

And just holding a summit in person does not guarantee good relations among the leaders, as President Donald J. Trump proved during his time in office.

His presence at global meetings, including several G7s, caused consternation and confrontation as he clashed with America’s allies. At the G7 in Quebec City in 2018, Mr. Trump refused to sign the leaders statement, called Mr. Trudeau “very dishonest and weak” and was grumpy throughout — as captured by a picture that showed him, hands crossed across his chest, with Chancellor Angela Merkel of Germany leaning over a table with the other European leaders standing by.

But for Mr. Biden, it is different.

Ms. Merkel, Mr. Trudeau and the other world leaders get along with Mr. Biden, even if their nations sometimes clash over issues. (Mr. Biden and Ms. Merkel disagree about the need for a Russian natural gas pipeline; Mr. Trudeau and others are not happy about the president’s stand on trade and tariffs.)

Mr. Biden appeared relaxed and happy to be in the presence of his colleagues on the world stage. As they gathered for this year’s family photo along a beachfront in the resort town of Carbis Bay, the mood was light.

“Everybody in the water,” he said — presumably joking.

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World Leaders Pose for ‘Family Photo’ at G7 Summit

Leaders from the Group of 7 nations arrived in England for the G7 summit, and posed on a beach for a “family photo” before resuming discussions on how to end the pandemic.

Here we go, everybody. Thank you very much.

Video player loadingLeaders from the Group of 7 nations arrived in England for the G7 summit, and posed on a beach for a “family photo” before resuming discussions on how to end the pandemic.CreditCredit…Pool photo by Neil Hall

The leaders of the world’s wealthiest democracies are expected to pledge one billion doses of Covid vaccines to poor and middle-income countries on Friday as part of a campaign to “vaccinate the world” by the end of 2022.

The stakes could hardly be higher.

“This is about our responsibility, our humanitarian obligation, to save as many lives as we can,” President Biden said in a speech in England on Thursday evening, before the meeting of the Group of 7 wealthy democracies. “When we see people hurting and suffering anywhere around the world, we seek to help any way we can.”

It is not just a race to save lives, restart economies and lift restrictions that continue to take an immeasurable toll on people around the globe.

Since Mr. Biden landed in Europe for the start of his first presidential trip abroad on Wednesday, he has made it clear that this is a moment when democracies must prove that they can rise to meet the world’s gravest challenges. And they must do so in a way the world can see, as autocrats and strongmen — particularly in Russia and China — promote their systems of governance as superior.

Yet the notion of “vaccine diplomacy” can easily be intertwined with “vaccine nationalism,” which the World Health Organization has warned could ultimately limit the global availability of vaccines.

When Mr. Biden announced on Thursday that the U.S. would donate 500 million Pfizer-BioNTech doses, the president said they would be provided with “no strings attached.”

“We’re doing this to save lives, to end this pandemic,” he said. “That’s it. Period.”

But even as wealthy democracies move to step up their efforts, the scale of the challenge is enormous.

Covax, the global vaccine-sharing program, still remains underfunded and billions of doses short.

The International Monetary Fund estimates that it will cost about $50 billion to help the developing world bring the pandemic to an end. In addition to the countless lives saved, the I.M.F. says that such an investment could bring a dramatic return: $9 trillion in increased global economic growth.

While the pandemic is at the center of Friday’s G7 agenda, with the leaders of the nations meeting face to face for the first time since the coronavirus essentially put a stop to handshake diplomacy, a host of other issues are also on the table.

Finance leaders from the G7 agreed last week to back a new global minimum tax rate of at least 15 percent that companies would have to pay regardless of where they locate their headquarters.

Beyond the specific issues, the summit will be a test of how institutions created in another era to help guide the world through crises can stand up to the challenges of today.

On Thursday, Mr. Biden and Prime Minister Boris Johnson of Britain turned to a World War II-era document to provide inspiration for a new generation of challenges, renewing the Atlantic Charter eight decades after it was signed to take into account the threats of today: from cyberattacks to nuclear, climate to public health.

The gathering of the G7 is also, in many ways, a relic of another era. It was created in the 1970s to provide economic solutions after a shock in oil supply triggered a financial crisis.

Ursula von der Leyen, the European Commission president, said in a preview of the conference on Thursday that the “return of the United States to the global arena” would help strengthen the “rules-based system” and that the leaders of the G7 were “united and determined to protect and to promote our values.”

Queen Elizabeth II attending a reception and dinner at Eden Park during the G7 summit in Cornwall, England, on Friday. Camilla, the Duchess of Cornwall, and Kate, the Duchess of Cambridge, also attended.Credit…Pool photo by Oli Scarff

Queen Elizabeth II, Prince Charles and Prince William joined Group of 7 leaders on Friday for a reception and dinner, as the royal family makes an unusually robust presence around the edges of the annual summit meeting.

The royals played hosts to the leaders at the Eden Project, an environmental and educational center in Cornwall, England, about 35 miles from Carbis Bay, where the summit is being held. In addition to the queen, Charles, the prince of Wales and heir apparent to the throne, and his elder son, Prince William, the Duke of Cambridge, Charles’s wife, Camilla, Duchess of Cornwall, and William’s wife, Kate, the Duchess of Cambridge, also attended.

Earlier Friday, the first lady, Jill Biden, visited a school in Cornwall with the Duchess of Cambridge.

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First Lady and Duchess of Cambridge Tour School

The first lady, Dr. Jill Biden, and Kate, the Duchess of Cambridge, toured a primary school in England on Friday. The first lady has a particular interest in global education.

“They’re scared to death.” [laughter] “Hello.” “Thank you very much.” “Do you like it?” “At 4 years old?” “Wow, are you 5 now?” “Yes.” “Fantastic. And we know that picking up all the rubbish will —” “This is a tough word, ‘rubbish.’ That’s a hard word, very impressive.” “You’re very good at — how many do you have?” “It’s very important. It’s the foundation of everything. So I can tell you that as a teacher at the upper levels, if they don’t have a good foundation, they fall so far behind. So this is amazing to see what these children are doing and how far advanced the are at 4 and 5 years old. I met some wonderful teachers and principals and most of all, the children who were so inspiring. And so well-behaved, I know, I couldn’t get over it.”

Video player loadingThe first lady, Dr. Jill Biden, and Kate, the Duchess of Cambridge, toured a primary school in England on Friday. The first lady has a particular interest in global education.CreditCredit…Pool photo by Aaron Chown

The summit comes just two months after the death of Prince Philip, the queen’s husband of 73 years. But Elizabeth, at age 95, quickly resumed her schedule of public appearances. Friday will mark her first meeting with any foreign leader since the start of the pandemic.

The Eden Project is an apt location for Prince Charles, who also holds the title of Duke of Cornwall. He has championed a variety of environmental causes, including the fight against global warming, one of the topics the G7 leaders are discussing.

President Biden and his wife, Dr. Biden, are scheduled to visit again with the queen on Sunday at Windsor Castle, before traveling to Brussels for meetings with NATO and European Union leaders.

A nurse administering a Sinopharm Covid-19 vaccine in Ulaanbaatar, Mongolia, last month.Credit…Khasar Sandag for The New York Times

As the leaders of wealthy Western democracies step up their efforts to provide Covid-19 vaccines to the world, they are also racing to catch up with China’s moves to establish itself as a leader in the fight against the coronavirus.

Last summer, China’s top leader, Xi Jinping, heralded the promise of a Chinese-made Covid-19 vaccine as a global public good. So far, he appears to be making good on that pledge.

China now leads the world in exporting Covid-19 vaccines, cementing its bid to be a major player in global public health. The country’s vaccines have been rolled out to 95 countries, which have received more than 260 million doses, according to Bridge Consulting, a Beijing-based consultancy.

The World Health Organization recently approved the vaccines made by the Chinese companies Sinopharm and Sinovac for emergency use, giving Beijing’s reputation a further boost.

So far, China has taken a mainly country-by-country approach in doling out its vaccines. The country has given only 10 million doses to Covax, the global alliance backed by the World Health Organization to ensure that developing countries get access to affordable vaccines. But it has independently donated 22 million doses and sold 742 million doses, according to Bridge Consulting. Many of the donations were made to developing nations in Africa and Asia.

“China is picking countries that could potentially be coming back to China for more things in the future,” said Sara Davies, a professor of international relations specializing in global health diplomacy at Griffith University in Australia. “This is the start of a long-term relationship.”

But there are questions about the Chinese vaccines’ effectiveness, in particular those made by Sinopharm, a state-owned company. Countries that have vaccinated their populations widely with the Sinopharm vaccine, such as the Seychelles and Mongolia, have had new surges of the coronavirus.

The global rollout has also been dogged by delayed deliveries. China is struggling to manufacture enough doses of its two-shot vaccines to meet the needs of its 1.4 billion people and its customers abroad.

In April, Turkey’s health minister said that one reason for the country’s slow vaccination campaign was that Sinovac did not comply with a promised delivery schedule.

“This is not because of lack of production, but it is because Chinese government is using the vaccines for its own country,” the minister, Fahrettin Koca, was quoted in the Turkish press as saying.

In a regular news briefing on Thursday, a Chinese Foreign Ministry spokesman called on countries undertaking vaccine research and development to “assume their responsibility” and support Covax.

“As we all know, until recently, the U.S. has been stressing that its top priority with vaccines is its domestic rollout,” said the spokesman, Wang Wenbin. “Now that it has announced donation to Covax, we hope it will honor its commitment as soon as possible.”

Alexandra Stevenson contributed reporting, and Elsie Chen contributed research.

The Daily Poster

Listen to ‘The Daily’: Why Russia Is Exporting So Much Vaccine

Millions of doses of Russia’s pioneering coronavirus vaccine have gone abroad, strengthening the country’s influence at the expense of its people.

transcript

Back to The Daily

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Listen to ‘The Daily’: Why Russia Is Exporting So Much Vaccine

Hosted by Sabrina Tavernise; produced by Rachelle Bonja, Rachel Quester, Alexandra Leigh Young and Leslye Davis; edited by M.J. Davis Lin and Lisa Chow; and engineered by Chris Wood. Special thanks to Sophia Kishkovsky.

Millions of doses of Russia’s pioneering coronavirus vaccine have gone abroad, strengthening the country’s influence at the expense of its people.

michael barbaro

From The New York Times, I’m Michael Barbaro. This is The Daily.

Today: When Russia developed a vaccine against Covid-19, it prioritized exporting it to dozens of foreign countries at the expense of its own people. Sabrina Tavernise spoke with our colleague, Andrew Kramer, about how Russia is attempting to use its vaccine to improve its strength and standing on the world stage.

[music]

It’s Monday, April 26.

sabrina tavernise

Andrew.

andrew kramer

Sabrina, hello.

sabrina tavernise

Hi. So why are we talking about Russia and vaccines?

andrew kramer

Well, this came as a surprise to I think a lot of people in 2020 when the pandemic began.

archived recording

The Russian government is saying it’s on track to approve a coronavirus vaccine in August, well ahead of other countries, including the U.S., the U.K.

andrew kramer

Russia very quickly announced that it was developing a vaccine against the coronavirus.

archived recording

The sheer speed at which Russian scientists have been able to develop this vaccine has raised a lot of eyebrows across the world.

andrew kramer

There was skepticism. There was certainly the feeling that that’s not likely to be much of a success given the disorganized state of Russian science. But by the middle of the year, they had already announced a working vaccine.

archived recording

Russia’s Sputnik vaccine is 91.4 percent effective according to the manufacturer. It’s got emergency clearance in 15 nations.

andrew kramer

If you look at the history, though, it’s less of a surprise.

sabrina tavernise

Tell me about the history, what do you mean?

andrew kramer

Well, the story really starts in the aftermath of World War I when the Soviet Union encountered quite a lot of infectious disease throughout its territory. One of the main focuses was confronting the bubonic plague. It seems like a ghost from the Middle Ages, but this was actually a serious problem in the Soviet Union in the 1920s. And the country set up what were called sanitary epidemiological stations, the equivalent of the C.D.C. in the United States. There were field stations to detect and contain infectious diseases. There was a lot of resources put into this. And by the 1930s, a Soviet effort to control infectious diseases had really focused on vaccines. And by the end of this decade, the Soviet Union was a global leader in virology and vaccine development, but it was not alone. The U.S. had also been through the Spanish flu and had been forced to develop expertise in vaccines and was making strides in this science, so that both the Soviet Union and the United States were very proficient in vaccine development.

sabrina tavernise

So these two countries were the global leaders in vaccines.

andrew kramer

That’s right. Particularly coming out of World War II, the Soviet Union and the United States were the global leaders in vaccine science. And the real concern in the late 1940s was polio.

archived recording

This year the enemy, poliomyelitis, struck with such impact and fury that it shook the entire nation.

andrew kramer

Polio was the most frightening disease around.

archived recording

It has closed the gates on normal childhood. It has swept our beaches, stilled our boats and emptied our pockets.

andrew kramer

It was the number one killer of children. And it has spread rapidly after the chaos of World War II.

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There has been no escape, no immunity, for this is epidemic.

andrew kramer

There were devastating polio outbreaks in the United States as well as in the Soviet Union. By the mid 1950s, the Soviet Union was reporting about 22,000 polio cases a year, which was about one third of the level of polio in the United States, but was still a tremendous problem and something that was very frightening to parents because it was an incurable disease and very often resulted in paralysis and sometimes in death.

sabrina tavernise

So by the 1950s, both the Soviet Union and the United States were experiencing really serious polio outbreaks. So what was the relationship between the two countries at the time?

andrew kramer

Well, it was complicated.

archived recording

Looking at Russia, we might see it as a country to be studied. Yet we know that Russia today is regarded as a grave threat to our nation.

andrew kramer

This was the beginning of the Cold War, the two countries were at odds, really, everywhere you looked.

archived recording

Berlin, powderkeg of Europe, saw a mass demonstration of indoctrinated young Germans on mayday. And across the world in Japan, America stronghold in the Pacific, the busy commies were at it again.

andrew kramer

There was military competition in Eastern Europe and in Southeast Asia.

archived recording

This first satellite was today successfully launched in the U.S.S.R.

andrew kramer

And the space race was just getting started at this time of the 1950s.

archived recording

On every continent and in every land, the story of Sputnik 1 dominated the front pages. The Soviets had scored a scientific first. It is a challenge that President Eisenhower has said, America must meet to survive in the space age.

andrew kramer

And there really wasn’t a whole lot of cooperation at all at this point.

sabrina tavernise

So the Soviet Union and the United States are really at odds. We’re at the beginning of the Cold War. Meanwhile, polio is spreading really fast in both countries. So how do these two governments respond?

andrew kramer

So the first vaccination efforts were carried out in the United States. There was an attempt to use killed — inactivated polio. Unfortunately, there was a bad batch of this polio vaccine, which infected hundreds of children in the United States and killed some of them, and created a lot of vaccine skepticism. And also, a realization that this approach to polio vaccine may not be the best and there might be a better way using a more modern technology, which was a weakened virus. But the problem was that this would require giving a live polio virus to children. And there was nobody really in the United States who wanted to run this experiment.

sabrina tavernise

And that’s because there had been this botched experiment in which children actually died.

andrew kramer

That’s right. And it was even more frightening to give your child a live polio virus as opposed to something that had been inactivated or supposedly inactivated. So while the technology was developed in the United States, there just was no way to test this in the United States.

sabrina tavernise

What about the Soviet Union? What is it doing?

andrew kramer

Well, in the late 1950s, a Soviet delegation traveled to the United States, led by a husband and wife team of virologists, Mikhail Chumakov and Maria Voroshilova. And they visited with American scientists and asked for a sample of this new polio vaccine to bring back to the Soviet Union. Now, the American scientists sought permission. They approached the State Department and the F.B.I., which provided approval for exporting essentially a brand new medical invention to the Soviet Union. According to a study of this exchange, the Defense Department raised objections with the Soviets might use it to develop a germ warfare program. But ultimately, the decision was made that this could be provided to the scientists. There could be scientific cooperation between the two countries. And the live polio vaccine sample was carried to the Soviet Union by one account in the pocket of Mikhail Chumakov.

sabrina tavernise

In the pocket?

andrew kramer

That’s right. It was more casual perhaps than it would be done today. This was a potentially risky live virus. The Soviet scientists brought it to his laboratory for infectious disease, tested it, determined that it would probably be safe and effective. But then there was the next step that had to be taken. This had to be tested on children.

sabrina tavernise

So what does Chumakov do?

andrew kramer

So in Soviet medicine, there was a tradition that the inventor of a new technique or new medicine should try this on himself first. So he discusses this with his wife, who’s also a virologist. And they decide that they will provide the live polio vaccine to their own young children on sugar cubes.

sabrina tavernise

Wow. That’s incredible. Their own children?

andrew kramer

That’s right. And this experiment was carried out in a Moscow apartment in the late 1950s. They had their own children line up and provided them with the sugar cubes with a drop of live polio virus on them and then watch to see what would happen.

sabrina tavernise

And what did happen?

andrew kramer

Well, thankfully, nothing.

It was a safe vaccine. They did not develop polio. What they did develop was immunity to polio because the virus was weakened and this was an effective vaccine. They took their findings based on this experiment on their own children to senior officials in the Soviet government. And as a next step, they tested the vaccine on orphans in the Baltic states, in Estonia and Latvia and Lithuania. There was a large polio outbreak in this area. And this was going to be the solution to the problem. And it was a gamble that paid off. By 1959, they had begun mass vaccinations. And in 1960, they vaccinated every person in the Soviet Union between the ages of two months and 20 years old. At the time, it was the fastest mass vaccination ever carried out. And they eliminated polio.

sabrina tavernise

Wow. And what about the U.S.? Does it start using the new polio vaccine, too?

andrew kramer

So the United States authorities agreed to approve this vaccine in the United States in 1962.

archived recording

The medical officer of health set the target, 300,000 men, women and children to be vaccinated in one week. And there’s no sore arm to worry about.

andrew kramer

And begin vaccination with live polio virus in 1963.

archived recording

[INAUDIBLE] treatment, two drops of vaccine make the dose [INAUDIBLE]. (SINGING) Hi ho, hi ho, hi ho, we’ll lick that polio.

andrew kramer

This was a collaboration which stood out in the Cold War.

archived recording

Dr. Sabin recently returned from travels to Europe where his journeys took him to Soviet Russia.

andrew kramer

The countries were in competition and yet —

archived recording (albert b. sabin)

I would say that the work on live polio virus vaccine and my associations with colleagues all over the world shows the capabilities and the possibilities of international cooperation on a large scale.

andrew kramer

Somehow the scientists were cooperating in solving the most feared infectious diseases of the time.

sabrina tavernise

So Andrew, this is all really surprising to me. It’s an example of something that’s actually hopeful — a real collaboration — at a time when the Soviet Union is considered a superpower in the world. Of course, we know, decades later, that the Soviet Union falls apart.

andrew kramer

That’s right. It was a very difficult time for Russians. Incomes plummeted. The store shelves were bare. And it was also a very difficult time for Russian scientists. What were once very prestigious jobs ended up paying just kopeks or pennies. And some scientists resorted to driving taxis, for example, to make a living. Also, abroad Russia’s international standing collapsed. The country was seen as a basket case. It was no longer one of the centers of power in the world. It was a recipient of international aid. And nonetheless, Russian scientists had a chip on their shoulder. They felt that they could achieve great things if they had resources. And Russia continue to be strong in science, and virology was one of those areas.

sabrina tavernise

That’s interesting. So these Soviet scientists and then later Russian scientists, they’re still developing vaccines? They keep going?

andrew kramer

They do. And they come out with announcements that nobody much believes that they’ve made progress on AIDS, for example. But then more recently, they developed a vaccine against MERS, which is very similar to the Covid-19. So when the coronavirus arrives, they’re ready to prove themselves to the world.

michael barbaro

We’ll be right back.

[music]sabrina tavernise

So Andrew, it’s 2020, and the coronavirus hits. Set the stage for us between the U.S. and Russia leading up to that.

andrew kramer

The relationship has gone dismally. Russia’s tried in various ways to regain influence in the world. And this has led to conflict with the United States. The relationship really worsened in 2014 when Russia intervene militarily in Ukraine. In 2016, Russia interfered in the U.S. elections in the United States. And there’s also been crackdowns at home against dissidents, in particular against the movement of Alexei Navalny. The United States has responded to these moves by Russia with sanctions. And the relationship is bad now. It’s really at the worst level that it’s been since the Cold War.

sabrina tavernise

So it seems pretty safe to assume that despite Russia’s history with vaccines, cooperation between the U.S. and Russia is probably pretty much out of the question, right?

andrew kramer

Right. There’s no question of collaboration now. The Russians begin a rush to develop a Covid vaccine as does the Western world and China. And the Russians fall back on these research institutes that have existed in their country for decades and begin developing a domestic Covid vaccine.

sabrina tavernise

And what does that actually look like on the ground in Russia?

andrew kramer

Well, there were a number of scientific institutes that all had vaccine ideas. And by May, an institute in Moscow seemed to be in the lead. And we learned about this because the scientist who was developing the vaccine went on television.

archived recording

[RUSSIAN SPEECH]

andrew kramer

To make the surprise announcement that he had injected himself with a test vaccine before animal trials had been completed.

sabrina tavernise

Oh, my goodness.

archived recording

[RUSSIAN SPEECH]

andrew kramer

This was, of course, a harkening back to the Russian scientific tradition of inventors trying their medicine on themselves first. But it was the first of several bold announcements by the Russians in the development of the vaccine that they eventually named Sputnik V.

sabrina tavernise

Sputnik, like the satellite?

andrew kramer

That’s right. The idea of the name was that this was a surprise to the Western world. The Sputnik satellite really indicated Russia’s supremacy in science in the 1950s. And it was way ahead of the United States in the space race. The Russians said, quite explicitly, that they viewed the vaccine in the same terms. That just as the Western world had heard the beeps of the radio of the Sputnik satellites circling the Earth, and that these beeps had indicated Russia was in the lead, they felt that their vaccine would be named Sputnik to indicate that it was in fact ahead of their vaccines.

sabrina tavernise

So it was a very intentional naming, a kind of glory days reference.

andrew kramer

Exactly. And a naming that also indicated they see this as a race, as the space race. And then they took it a step further.

archived recording (vladimir putin)

[RUSSIAN SPEECH]

andrew kramer

In August, Putin went on television and announced that he had approved the vaccine for general use.

archived recording (vladimir putin)

[RUSSIAN SPEECH]

sabrina tavernise

I do remember Putin coming out and saying they had this vaccine. But I also remember thinking it’s really early because no one else did yet. Is this real?

andrew kramer

It wasn’t really real. They had not tested the vaccine in late stage trials that were necessary to prove that it’s effective and safe. This was a propaganda move. And they were going to use the vaccine as a tool of influence in the world. And they began marketing it as a vaccine for all humankind.

sabrina tavernise

All right. So we’re getting new information, new data on Russia’s vaccine.

andrew kramer

They did eventually put the vaccine through trials. And when the results were in December, they were very good.

archived recording

It seems to contradict the skepticism that surrounded the heralding the jab by President Vladimir Putin back in August.

andrew kramer

The vaccine was more than 90 percent effective, which is comparable to the vaccines under development in the United States.

archived recording

It is one of only three vaccines with efficacy of more than 90%. Sputnik V is the vaccine for the mankind.

andrew kramer

Crucially, at about the same time, the Trump administration puts a ban on exports of U.S.-made vaccines, saying that the vaccines made in America should be used first to vaccinate American citizens. And this leaves Russia standing ready with a very effective vaccine.

archived recording

Russia is throwing its hat in the ring to be a global savior.

andrew kramer

Ready to make deals around the world at a time when the U.S. is not exporting any vaccine.

archived recording

Russia, for one, says it’s ready to send the E.U. 100 million doses of its Sputnik vaccine.

andrew kramer

The Russians don’t waste any time.

archived recording

Sputnik V’s global uptake is on the rise.

andrew kramer

They immediately start making export arrangements.

archived recording

Countries right now lining up for supplies of Sputnik V —

andrew kramer

Specifically intended to undermine U.S. interest and European Union interests. And it really is setting itself up as this vaccine supplier to the bad boys club.

sabrina tavernise

What does that mean the bad boys club? Who is that?

andrew kramer

Well, these are countries that are at odds with the West and which Russia has sidled up to perhaps for that reason. It markets the vaccine to Cuba, to Iran, to Syria, to parts of North Africa. Russia has friendly relations with Venezuela, with Belarus. So there are a collection of countries loosely aligned with Russia. And these are relationships which Russia would like to deepen and strengthen. There are other factors at play here as well. Russia is using the vaccine to win influence in battleground countries, countries that are wavering between Russia and the West, such as Ukraine, or Hungary, for example. There’s a very strong P.R. element to vaccine diplomacy. It really flips the narrative about Russia. It’s no longer a discussion of suppressing dissidents at home or massing military forces on a border with a neighbor, for example. This is a discussion about saving lives, providing medicine that’s in great demand today.

sabrina tavernise

What’s an example, Andrew, of how one of these deals works on the ground?

andrew kramer

One of the first countries that the Russians talked to was Brazil. Brazil is an important ally of the United States. It’s a major economic power in Latin America. And it was also an early target of Russian vaccine diplomacy. The U.S., we learned in January from documents released by the U.S. government, was working behind the scenes to prevent this from happening. And the U.S. Department of Health and Human Services disclosed that an American diplomat in Brazil had been arguing that the Brazilian government should reject the Russian vaccine because the vaccine was, in fact, seen as an agent of influence for the Russians in this important country. Now that was not a success. Brazil ultimately went with Russia for these supplies. And it illustrates well the weak hand that the United States has in vaccine diplomacy. On the ground, in situations like this, the United States has nothing to offer. The U.S. official could argue that Brazil should not take this lifesaving medicine from Russia, but they weren’t able to offer anything from the United States.

sabrina tavernise

All right. I mean, U.S. sounds like it doesn’t really have a card to play, right? I mean, on what basis should Brazil not accept the Russian vaccine? There’s effectively no alternative.

andrew kramer

Exactly. It showed the impotence of the United States in this contest that’s going on around the world over supply of vaccines. And Russia has gone from success to success in its vaccine diplomacy. For example, the European Union has been the target of a very effective vaccine diplomacy over the past several months. Two countries, Slovakia and Hungary, agreed to import Sputnik V vaccine. And this created a lot of discord within the European Union because the bloc had initially agreed to distribute vaccines equitably among its members. And they were breaking ranks with that policy. Also, the vaccine was not approved by European regulators. So this was creating discord within the European Union. And creating discord within the European Union has been a longtime goal of Russian diplomacy. And in this case, it was aided with the use of the vaccine. But it’s gone beyond that as well. The Russians have signed contracts with one region in Italy and with the state of Bavaria in Germany. So they’re winning customers now in the very heart of Europe.

sabrina tavernise

Yeah, these are core bloc states of the E.U.

andrew kramer

That’s right. And in countries that have been accepting the Russian vaccine, polls show that people trust it more than even vaccines made in the United States. For example, in Argentina and Mexico, polls have shown that more people trust the Russian made Sputnik V vaccine than American-made vaccines.

sabrina tavernise

That’s surprising.

andrew kramer

It is. And it’s been quite a benefit to Russia’s image around the world. Wherever we look in Russia’s vaccine diplomacy, it’s been quite effective politically and in terms of P.R. at the cost of, in fact, very small shipments of vaccine.

sabrina tavernise

What do you mean?

andrew kramer

For example, only tens of thousands of doses were sent to Bolivia in Latin America.

archived recording

Bolivian President Luis Arce has signed a contract for the supply of the Sputnik V vaccine to fight Covid-19.

andrew kramer

And yet the president of the country came to the airport to meet the airplane that delivered them.

archived recording

[NON-ENGLISH SPEECH]

andrew kramer

Sometimes very small numbers of doses are sent to places that will seem to have a high impact in terms of media coverage.

archived recording

While the rest of Europe is still struggling with the vaccination campaign, the tiny Republic of San Marino is on its way to immunize most of its citizens.

andrew kramer

For example, in a staunch, Russia vaccinated the entire nation of San Marino with a population of 7,000 people.

archived recording

Thanks also to the use of Sputnik V, Russia’s vaccine.

andrew kramer

So the numbers have been quite small, but they’ve had a very large impact politically.

sabrina tavernise

So Andrew, in a way, this is making me think of how Russia has been acting ever since the Soviet Union collapsed. I mean, trying again and again on the world stage to prove it is still powerful, to prove it is still important. And these vaccines are a way to show that.

andrew kramer

It also shows it in a different way than what we usually think of Russia, when we think of Russia asserting its influence. Typically, Russia is seen as a villain when it sends troops into a neighboring country like Ukraine or assassins abroad to target enemies. But in the story of vaccines, Russia has really been a savior. It’s been able to present itself as a country that’s helping the rest of the world. And in this way, it’s a form of influence which is very difficult for the West to counter, for the West to stand up against. And when the pandemic is over, it’s likely that Russia will emerge because of this vaccine diplomacy, as a country with more friends and allies than it would have had had it not pursued this course.

sabrina tavernise

Thank you, Andrew.

andrew kramer

Thank you very much.

michael barbaro

So far, Russia has manufactured about 20 million doses of its Covid-19 vaccine. Of those, it has exported about four million doses or one fifth to foreign countries instead of using them on Russians. As of this past weekend, Russia has fully vaccinated just 5 percent of its people. By comparison, the United States has fully vaccinated 27 percent.

[music]

We’ll be right back.

Here’s what else you need to know today. Over the weekend, President Biden recognized the mass killings of Armenians more than a century ago as a genocide, something never before done by an American president for fear of offending Turkey, which denies that the killings amounted to a genocide. The killings of Armenians occurred at the end of World War I during the collapse of the Ottoman Empire, which later became Turkey. Ottoman Turks feared that Armenians would become allies with Russia, an enemy of the Ottoman Turks, and began forced deportations and killings of Armenians to avoid that possibility. In the end, as many as 1.5 million Armenians were killed. In response to Biden’s declaration, Turkey’s government vowed to defend itself against what it called “a lie.” Today’s episode was produced by Rachelle Bonja, Rachel Quester, Alexandra Leigh Young and Leslye Davis. It was edited by M.J. Davis Lin and Lisa Chow and engineered by Chris Wood. Special thanks to Sophia Kishkovsky.

That’s it for The Daily. I’m Michael Barbaro. See you tomorrow.

Floating balloons caricaturing President Biden and Prime Minister Boris Johnson of Britain in the harbor of Falmouth, England, on Friday.Credit…Kirsty Wigglesworth/Associated Press

FALMOUTH, England — It’s no diaper-clad Donald J. Trump, but this year’s Group of 7 meeting has its own inflatable gag: a floating blimp that caricatures President Biden and Prime Minister Boris Johnson of Britain, holding hands and waving, each wearing swim trunks in the design of their national flags.

A group of advocacy groups behind the blimp took reporters and photographers out on a morning cruise on Friday in the mist and drizzle — known in Cornwall as “mizzle” — to see its formal launch off the coast of a Cornish port where the world’s news media is encamped to cover the summit.

While the press bobbed in the waves, taking photos of Biden and Boris against the backdrop of a mist-shrouded castle, representatives of the groups explained their dead-serious agenda for world leaders. They urged them to speed up donations of coronavirus vaccines, enact tougher measures to curb climate change and at last tackle income and gender inequality.

As they spoke, a few rays of sunshine poked through the fog. That prompted jokey references to hopes that “the mist would lift” from the leaders as the activists did their best to entertain their rain-spattered guests.

“We try to organize optimism to have impact,” said Jamie Drummond, who founded the advocacy group One with Bono, the leader singer of U2. “But there are many reasons to be very angry as well. Not enough is being done.”

Mustering anger is not easy when Covid restrictions make it impossible to gather crowds of protesters, security cordons keep them 25 miles from where the leaders are staying, and one of the antagonists at such gatherings, Mr. Trump, has been replaced by the more emollient Mr. Biden.

When the Trump baby balloon first took flight in July 2018 in London, during a visit by the president, the police estimated that more than 100,000 demonstrators were on hand. The Biden-Boris blimp will float in Falmouth’s harbor, where it can be viewed by the press and the scattered tourists left in an otherwise locked-down port.

Mr. Drummond insisted that a new United States president had not taken the wind out of the advocacy efforts. There was no in-person Group of 7 last year because of the pandemic, he said, and the combination of a health and climate crisis lend this gathering as much urgency as any previous summit.

“There are hard facts and data — about Covid, about climate, about ecology and about injustice — which are not being paid attention to,” Mr. Drummond said. “And the response from leaders is not commensurate with these crises.”

Still, the image of Mr. Biden and Mr. Johnson waving jauntily to those on shore felt less like a cry for help than a reminder of the extravagant display of unity by the two leaders when they first met the previous day.

The advocacy groups will strike a more somber note on Friday evening, when they plan to hold two vigils, in Falmouth and Carbis Bay, to honor the estimated 3.7 million people who have died of Covid worldwide.

President Biden with his wife, Dr. Jill Biden, Prime Minister Boris Johnson of Britain and his wife, Carrie Johnson, in Cornwall, England, on Thursday.Credit…Doug Mills/The New York Times

Few images captured the rupture in trans-Atlantic relations better than that of President Donald J. Trump in 2018, arms folded across his chest as he resisted Chancellor Angela Merkel of Germany and other Group of 7 leaders in their doomed effort to salvage their summit meeting in Canada.

As the same countries’ leaders reconvene in Cornwall, England, on Friday, President Biden is aiming reverse the body language, replacing impasse with embrace. But beneath the imagery, it is not clear how much more open the United States will be to give-and-take with Europe than it was under Mr. Trump.

The trans-Atlantic partnership has always been less reciprocal than its champions like to pretend — a marriage in which one partner, the United States, carried the nuclear umbrella. Now, with China replacing the Soviet Union as America’s archrival, the two sides are less united than they were during the Cold War, a geopolitical shift that lays bare longstanding stresses.

So a lingering question looms over Friday’s G7 summit in England: Will this show of solidarity be more than a diplomatic pantomime — reassuring to Europeans traumatized by Mr. Trump’s “America First” policy but bound to disappoint them when they realize that the United States under Mr. Biden is still going its own way?

“America’s foreign policy hasn’t fundamentally changed,” said Tom Tugendhat, chairman of the Foreign Affairs Committee in the British Parliament. “It’s more cooperative and inclusive, but substantially it’s the same.”

Prime Minister Scott Morrison, whose ancestor was sent to Australia from Britain after being convicted of stealing “five pound and a half-weight of yarn” in 1786.Credit…Mick Tsikas/EPA, via Shutterstock

More than two centuries after his ancestor was cast out of Cornwall for stealing and sent to Australia with hundreds of other convicts, Scott Morrison returned to the area on Friday as prime minister of Australia.

“It’s a long time since one of my family was in Cornwall,” Mr. Morrison said in a speech in Perth on Wednesday before traveling to meet with other world leaders at the Group of 7 conference.

While the issues of the day were at the center of his agenda as an invited guest at the summit, it was also an unusual homecoming of sorts.

The main location of the gathering, Carbis Bay, is about 60 miles from the market in Launceston where his ancestor, William Roberts, stole “five pound and a half-weight of yarn” in 1786, according to the Australian Associated Press.

Mr. Morrison said Mr. Roberts was his “fifth great-grandfather.”

“He stole some yarn in Cornwall, and the rest is history,” Mr. Morrison said. “More than 200 years of it, so it’ll be interesting to be going back there.”

Mr. Roberts was part of a group of over 1,400 people who set sail in 11 ships from Portsmouth, England on May 13, 1787 — part of the infamous “First Fleet” — transporting military leaders, sailors and convicts across the world.

“A wide variety of people made up this legendary ‘First Fleet,’” according to the National Geographic Society. “Military and government officials, along with their wives and children, led the group. Sailors, cooks, masons and other workers hoped to establish new lives in the new colony.”

The First Fleet included more than 700 convicts — the start of what would be more than 80 years of Britain’s shipping off convicts to serve out their sentences in New South Wales, now a state in southeastern Australia. Britain sent more than 160,000 convicts to Australia in that time, and it is estimated that about 20 percent of present-day Australians can trace their ancestry to them.

Mr. Morrison is not the first Australian leader to trace his roots back to a convict.

Genealogists traced former Prime Minister Kevin Rudd’s family line to an English woman who barely escaped the hangman’s noose. In 1788, Mary Wade — Mr. Rudd’s paternal fifth-great-grandmother — was convicted at the Old Bailey in London of having robbed an 8-year-old girl of her dress and underwear in a bathroom.

Ms. Wade is said to have declared at her trial: “I was in a good mind to have chucked her down” the toilet. “I wish I had done so.”

She was sentenced “to be hanged by the neck til she be dead,” but her sentence was commuted and she was shipped off to Australia.

The agreement reached by Group of 7 finance ministers would impose an additional tax on some of the largest multinational companies.Credit…Pool photo by Henry Nicholls

When the top economic officials from the world’s advanced economies, in the days leading up to the Group of 7 summit, unveiled a broad agreement that aims to stop large multinational companies from seeking out tax havens and force them to pay more of their income to governments, it was a breakthrough in a yearslong efforts to overhaul international tax laws.

A new global minimum tax rate at least 15 percent, which finance leaders from the Group of 7 countries agreed to back, would apply to companies regardless of where they locate their headquarters.

The agreement would also impose an additional tax on some of the largest multinational companies, potentially forcing technology giants like Amazon, Facebook and Google as well as other big global businesses to pay taxes to countries based on where their goods or services are sold, regardless of whether they have a physical presence in that nation.

The pact could reshape global commerce and solidify public finances that have been eroded after more than a year of combating the pandemic.

And huge sums of money are at stake. A report this month from the E.U. Tax Observatory estimated that a 15 percent minimum tax would yield an additional 48 billion euros, or $58 billion, a year. The Biden administration projected in its budget last month that the new global minimum tax system could help bring in $500 billion in tax revenue over a decade to the United States.

While the agreement is a major step forward, many challenges remain. Next month, the Group of 7 countries must sell the concept to finance ministers from the broader Group of 20 nations. If that is successful, officials hope that a final deal can be signed in October.

Garnering wider support will not be easy. Ireland, which has a tax rate of 12.5 percent, argues that a global minimum tax would be disruptive to the country’s economic model. Some major countries such as China are considered unlikely to buy in.

And the biggest obstacle come from the United States. The Biden administration must win approval from a narrowly divided Congress to make changes to the tax code.

VideoVideo player loading“Mount Recyclemore,” a sculpture recreating the faces of Group of 7 leaders made from old mobile phones, computers and laptop covers, aims to highlight the environmental damage caused by electronic waste.CreditCredit…Adrian Dennis/Agence France-Presse — Getty Images

A sculpture recreating the faces of Group of 7 leaders in a metallic tangle of circuit boards, laptop covers and cast-off cellphone pieces stands in stark contrast to the idyllic Cornish beach they overlook on the southwestern English coast.

The installation — a garbage homage to Mount Rushmore’s carved granite heads that was erected this week before the gathering nearby of the heads of state it depicts — is intended to highlight the environmental damage caused by the disposal of electronic waste.

Discussions around climate change are on the agenda, and environmental activists staged demonstrations across Britain in the lead up to the event to call for urgent and drastic change.

The art installation, dubbed “Mount Recylemore” by its creators, depicts Prime Minister Boris Johnson of Britain, Prime Minister Yoshihide Suga of Japan, President Emmanuel Macron of France, Prime Minister Mario Draghi of Italy, Prime Minister Justin Trudeau of Canada, Chancellor Angela Merkel of Germany, and President Biden. It stands on Sandy Acres in Cornwall near Carbis Bay, where the summit is being held starting on Friday.

According to musicMagpie, an online retailer that resells electronics and was involved in the project, the installation was intended to “highlight the growing threat e-waste poses to the environment and the importance of taking action now.”

Joe Rush, an artist and founder of the Mutoid Waste Company that stages industrial performance art, and Alex Wreckage, a sculptor, collaborated with the company on the art installation, which is made up of 12 tons of scrap metal and electronic waste materials from computers, phones and other technology.

World leaders at a Group of 7 summit in Biarritz, France, in August 2019, the last time the gathering was held in person.Credit…Erin Schaff/The New York Times

For three days, beginning Friday, some of the world’s most powerful leaders are descending on a small Cornish village for a series of meetings as part of the Group of 7 summit, which brings together the heads of Britain, Canada, France, Germany, Italy, Japan and the United States.

So what exactly is the G7, and why does it matter?

The nations belonging to the club are the world’s wealthiest large democracies, close allies and major trading partners that account for about half of the global economy.

With broadly similar views on trade, political pluralism, security and human rights, they can — when they agree — wield enormous collective influence. Their heads of government meet, along with representatives of the European Union, to discuss economic issues and major international policies.

Those attending this years’ gathering include leaders from the G7 member countries — Britain, Canada, France, Germany, Italy, Japan and the United States — plus the European Union, guests Australia, South Africa and South Korea, along with India via video link.

The group, whose origins go back to the 1973 oil crisis, grew out of an informal gathering of finance ministers from Britain, the United States, France, Japan and what was then West Germany — initially known as the Big Five — as they tried to agree on a way forward.

Since the 1970s, the group and its later additional members have met dozens of times to work on major global issues that affect the international economy, security, trade, equality and climate change. In 2015, the summit paved the way for the Paris agreement to limit global emissions, which was decided later that year.

For a time, the group had eight members — remember the G8? — but Russia, always something of an outlier, was kicked out in 2014 amid international condemnation of President Vladimir V. Putin’s annexation of Crimea. Last year, President Donald J. Trump said he believed Russia should be reinstated.

Atop the agenda this year will be the coronavirus pandemic and its effects on the global economy, with a focus on worldwide recovery and vaccination.

This summit, hosted by Britain, which currently holds the group’s presidency, is the 47th of its kind and will continue through Sunday. Last year’s summit was canceled because of the pandemic, making this gathering the first in-person G7 Leaders’ Summit in almost two years. The last was in August 2019 in Biarritz, France.

President Biden with Prime Minister Boris Johnson of Britain before their meeting on Thursday.Credit…Doug Mills/The New York Times

President Biden and Prime Minister Boris Johnson of Britain signed a new version of the 80-year-old Atlantic Charter on Thursday, using their first meeting to redefine the Western alliance and accentuate what they said was a growing divide between battered democracies and their autocratic rivals, led by Russia and China.

The two leaders unveiled the new charter as they sought to focus the world’s attention on emerging threats from cyber attacks, the Covid-19 pandemic that has upended the global economy, and climate change, using language about reinforcing NATO and international institutions that Mr. Biden hoped would make clear that the Trump era of America First was over.

The new charter, a 604-word declaration, was an effort to stake out a grand vision for global relationships in the 21st century, just as the original, first drafted by Winston Churchill and Franklin D. Roosevelt, was a declaration of a Western commitment to democracy and territorial integrity just months before the United States entered World War II.

“It was a statement of first principles, a promise that the United Kingdom and the United States would meet the challenges of their age and that we’d meet it together,” Mr. Biden said after his private meeting with Mr. Johnson. “Today, we build on that commitment, with a revitalized Atlantic Charter, updated to reaffirm that promise while speaking directly to the key challenges of this century.”

President Vladimir V. Putin of Russia “doesn’t necessarily want a more stable or predictable relationship” with the United States, one expert said.Credit…Sergey Ponomarev for The New York Times

The most pressing, vexing item on President Biden’s agenda while in Europe may be managing the United States’ relationship with a disruptive Russia. He will seek support from allies to that end, but no part of the trip promises to be more fraught than the daylong meeting with President Vladimir V. Putin on June 16.

On the eve of meeting with European leaders rattled by Russia’s aggressive movement of troops along Ukraine’s borders, Mr. Biden said the world was at “an inflection point,” with democratic nations needing to stand together to combat a rising tide of autocracies.

“We have to discredit those who believe that the age of democracy is over, as some of our fellow nations believe,” he said.

Turning to Russia specifically, he pledged to “respond in a robust and meaningful way” to what he called “harmful activities” conducted by Mr. Putin.

Aboard Air Force One

David E. Sanger, White House and national security correspondent, breaks down the agenda for President Biden’s first overseas trip.

Russian intelligence agencies have interfered in Western elections and are widely believed to have used chemical weapons against perceived enemies on Western soil and in Russia. Russian hackers have been blamed for cyberattacks that have damaged Western economies and government agencies. Russian forces are supporting international pariahs in bloody conflicts — separatists in Ukraine and Bashar al-Assad’s government in Syria.

Mr. Biden called for the meeting with Mr. Putin despite warnings from rights activists that doing so would strengthen and embolden the Russian leader, who recently said that a “new Cold War” was underway.

Mr. Putin has a powerful military and boasts of exotic new weapons systems, but experts on the dynamics between Washington and Moscow say that disruption is his true power.

“Putin doesn’t necessarily want a more stable or predictable relationship,” said Alexander Vershbow, who was United States ambassador to Russia under President George W. Bush. “The best case one can hope for is that the two leaders will argue about a lot of things but continue the dialogue.”

White House officials say that Mr. Biden has no intention of trying to reset the relationship with Russia. Having concurred with the description of Mr. Putin as a “killer” in March, Mr. Biden is cleareyed, they say, about his adversary: He regards him more as a hardened mafia boss than a national leader.

At nearly the same time Mr. Biden was delivering his remarks on Wednesday, a Russian court outlawed the organization of the jailed opposition leader Alexei A. Navalny, potentially exposing him and his supporters to criminal charges.

But Mr. Biden is more focused on Russian actions abroad than its domestic repression. He is determined to put what his national security adviser, Jake Sullivan, calls “guardrails” on the relationship. That includes seeking out some measure of cooperation, starting with the future of the countries’ nuclear arsenals.

Mr. Biden’s associates say he will also convey that he has seen Mr. Putin’s bravado before and that it doesn’t faze him.

“Joe Biden is not Donald Trump,” said Thomas E. Donilon, who served as national security adviser to President Barack Obama and whose wife and brother are key aides to Mr. Biden. “You’re not going to have this inexplicable reluctance of a U.S. president to criticize a Russian president who is leading a country that is actively hostile to the United States in so many areas. You won’t have that.”

Categories
World News

The Fed might be going through a jobs headache in its inflation combat

Residential single family homes construction by KB Home are shown under construction in the community of Valley Center, California, June 3, 2021.

Mike Blake | Reuters

If the Federal Reserve’s view on inflation prevails, a few key things have to go right, particularly when it comes to getting people back to work.

Solving the jobs puzzle has been the most vexing task for policymakers in the coronavirus pandemic era, with nearly 10 million potential workers still considered unemployed even though the number of open positions available hit a record of 9.3 million in April, according to the latest data from the U.S. Labor Department.

There’s a fairly simple inflation dynamic at play: The longer it takes to get people back to work, the more employers will have to pay. Those higher salaries in turn will trigger higher prices and could lead to the kinds of longer-term inflationary above-normal pressures that the Fed is trying to avoid.

“Unfortunately, we see good reasons to think that labor participation might not return quickly to its
pre-Covid level,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, said in a note. “Whatever is happening here, the Fed needs large numbers of these people to return to the labor force in the fall.”

The pace of inflation is of critical importance for economic trajectory. Inflation that runs too high could force the Fed to tighten monetary policy quicker than it wants, causing cascading impacts to an economy dependent on debt and thus critically tied to low interest rates.

Consumer prices increased at a 5% pace year over year in May, the fastest since the financial crisis. Economists, though, generally agreed that much of what is driving the rapid inflation surge is due to temporary factors that will ease up as the recovery continues and the economy returns to normal following the unprecedented pandemic shock.

That’s far from certain, though.

The Atlanta Fed’s gauge of “sticky” inflation, or price of goods that tend not to fluctuate greatly over time, rose 2.7% year over year in May for the strongest growth since April 2009. A separate measure of “flexible” CPI, or prices that do tend to move frequently, increased a stunning 12.4%, the fastest since December 1980.

In their most recent forecast, Fed officials put core inflation at 2.2% for all of 2021; Shepherdson said the current numbers suggest something closer to 3.5%.

“That’s a huge miss, and it potentially poses a serious threat to the Fed’s benign view of medium-term inflation because of its potential impact of the labor market,” Shepherdson said.

What’s keeping workers home

Surveys show a variety of factors keeping workers from taking jobs: Ongoing pandemic concerns, child-care issues, particularly for women, and enhanced unemployment benefits that are being withdrawn in about half the states and will expire entirely in September.

From the employer perspective, worries over skill mismatches have persisted for several years and have worsened during the pandemic. For instance, a survey from online learning company Coursera showed that the U.S. has fallen to 29th in the world in digital skills needed for high-demand entry-level jobs.

The dilemma is a pervasive one in American business nowadays.

All of my customers are struggling to staff at levels that they need staff to really get to the other side of this surge.

David Wilkinson

president of NCR Retail

David Wilkinson, president of NCR Retail, the cash register maker that now provides a variety of products and services to the industry, said he sees “a bit of a labor crisis” unfolding.

“As labor gets harder to come by, as labor gets more expensive, the other side of the inflationary worry is that as prices go up, the cost of living goes up and you have to pay people more as they demand more,” Wilkinson said. “All of my customers are struggling to staff at levels that they need staff to really get to the other side of this surge.”

While he thinks inflation eventually will come down from its current level, he expects it will be higher than the sub-2% that prevailed during most of the post-financial crisis era.

The implementation of technology accelerated during the Covid era. While that will continue, Wilkinson said he also expects to see retailers paying higher wages to fill the demand for staff.

“We’re seeing an increased focus on the worker in retail, and part of that is both the experience, the technology they need to do the job, and part of that is the willingness to pay,” he said. “This brought that back to the forefront.”

Managing its way through the various dynamics could prove difficult for the Fed.

Previous attempts to normalize policy over the years have largely failed, with the central bank having to revert back to the zero-interest money-printing world that arose during the financial crisis.

“The Fed is trapped,” wrote Joseph LaVorgna, chief economist for the Americas at Natixis and former chief economist for the National Economic Council.

While LaVorgna sees inflation as staying relatively under control, he thinks the Fed could face problems from deflationary pressures. The central bank doesn’t like inflation that’s too low, as it creates a low-expectation cycle that constricts monetary policy during downturns.

“The political pressure to do nothing will be intense” as government debt increases, LaVorgna said. “If the Fed cannot (or will not) remove excessive policy accommodation when the economy is booming, how can policymakers do it when growth invariably slows?”

Markets betting on the Fed

Indeed, markets aren’t expecting much movement at all in policy.

Treasury yields actually have dropped since Thursday’s hotter-than-expected consumer price index report, and market pricing now points to no rate hikes until about September 2022 and a fed funds rate of just 1% through May 2026.

A report Friday from the University of Michigan also showed consumers are lowering their inflation expectations, with the year-ahead outlook at 4%, down from 4.6% in the last survey, and at 2.8% over five years, down from 3% though still well above the Fed’s 2% target.

“For all the fears that the Fed will be prompted to tighten policy early to curb inflation, we suspect officials will be just as worried about a slowdown in the recovery in real activity,” wrote Michael Pearce, senior U.S. economist at Capital Economics.

Federal Reserve Board building is pictured in Washington, U.S., March 19, 2019.

Leah Millis | Reuters

Fed officials likely will talk next week about which way the risks are tilted in the current scenario. They’ve been lukewarm about the recovery, continuing to emphasize the role, albeit diminishing, of the pandemic and encouraging a full-throated policy response.

However, if inflation readings persist to the upside, the pressure at least to tap the brakes on the monthly asset purchases will build.

“There’s been this debate about whether inflation is different this time,” said Quincy Krosby, chief market strategist at Prudential Financial. “If inflation rises in a more material and less transitory way, consumers are going to need higher wages.”

The Fed is betting that a return to the labor market, particularly by women, will help hold down wage pressures and keep inflation in check. The current labor force participation rate for women is 56.2%, up from the pandemic lows but otherwise the worst since May 1987.

Regardless of the inflation pressures, the Fed last year changed its mission statement to keep policy accommodative until the economy sees inclusive labor gains, meaning across gender, income and race.

“They are going to make sure that the glide path to [policy] liftoff is long,” Krosby said. “The question is, if inflation picks up in a more meaningful way and is stickier, what does the Fed do? That’s the concern the market has.”

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A Fragile Israeli Coalition, With Some Underlying Glue

JERUSALEM — A new Israeli government united in its determination to oust Prime Minister Benjamin Netanyahu, but in agreement on little else, is set to take office Sunday under a right-wing leader whose eight-party coalition includes the left and, for the first time, an independent Arab party.

It looks like a recipe for chronic instability.

Even Sunday’s confidence vote in the Knesset, or parliament, that would usher in the first change in Israeli leadership in a dozen years is not a done deal, given the razor-thin majority of Naftali Bennett’s coalition with its 61 seats in the 120-member chamber. But every indication is that the votes to make Mr. Bennett prime minister are locked in, absent some 11th-hour drama.

A signed coalition agreement was formally presented to the Knesset secretariat Friday, the last step before a vote and the swearing-in of the new government.

Survival will then become the issue. Israel’s parliamentary democracy veered in a presidential direction under Mr. Netanyahu. In the end, his increasingly dismissive style had alienated too many people, especially among nominal allies on the right.

Agreement to return to democratic norms may be the underlying glue of the unlikely coalition.

“The parties are disparate, but they share a commitment to reconstitute Israel as a functioning liberal democracy,” said Shlomo Avineri, a prominent political scientist. “In recent years we saw Netanyahu begin to govern in a semi-authoritarian way.”

After agreement was reached Friday on the government program, Mr. Bennett said: “The government will work for all the Israeli public — religious, secular, ultra-Orthodox, Arab — without exception, as one. We will work together, out of partnership and national responsibility, and I believe we will succeed.”

Success will require constant compromise. “They will not deal with the highly contentious issues between left and right,” said Tamar Hermann, a professor of political science at Israel’s Open University.

In practice, that means a likely concentration on domestic rather than foreign affairs. Israel has not had a budget in more than two years of political turmoil and repetitive elections. Mr. Bennett, a self-made tech millionaire, is determined to deliver higher standards of living and prosperity to a population weary of such paralysis.

The delicate questions to be deferred or finessed would include any renewed peace negotiations with the Palestinians and any major settlement expansion in the West Bank.

Although Mr. Bennett was once a leader of the main settler movement in the West Bank and has called for the annexation of parts of the territory Israel captured in 1967, he seems certain to be constrained by centrist and left-wing members of the coalition and by the pragmatism that survival demands.

Establishing good relations with the Biden administration, a priority, and improving relations with America’s majority liberal Jewish community, another significant goal, will also require centrist restraint.

“Hard core people of the right, we have the evidence, become more centrist in office,” Ms. Hermann said. “Bennett was not prime minister when he made his pro-settlement statements.”

Mr. Bennett, 49, like other prominent members of the prospective cabinet, has waited a long time to emerge from Mr. Netanyahu’s shadow. Yair Lapid, 57, the incoming foreign minister, and Gideon Saar, 54, who would become justice minister, are other prominent politicians of a generation weary of being sidelined by the man many Israelis had come to dub the King of Israel. They will not want to return to the shadows.

Mr. Lapid, a leading architect of the coalition, would become prime minister in two years under the deal that made an alternative to Mr. Netanyahu possible — another incentive for him to help make the government work.

Still, it may not. The parties, ranging from Mr. Bennett’s Yamina party on the right to Labor and Meretz on the left, disagree on everything from L.G.B.T.Q. rights to public transportation on Shabbat.

They will come under withering, constant attack from Mr. Netanyahu’s center-right Likud party. It is conceivable that Mr. Netanyahu will be ousted from Likud at some point, whereupon the right-wing members of the coalition may return to their natural alliances.

Understand Developments in Israeli Politics

    • Key Figures. The main players in the latest twist in Israeli politics have very different agendas, but one common goal. Naftali Bennett, who leads a small right-wing party, and Yair Lapid, the centrist leader of the Israeli opposition, have joined forces to form a diverse coalition to unseat Benjamin Netanyahu, Israel’s longest-serving prime minister.
    • Range of Ideals. Spanning Israel’s fractious political spectrum from left to right, and relying on the support of a small Arab, Islamist party, the coalition, dubbed the “change government” by supporters, will likely mark a profound shift for Israel.
    • A Common Goal. After grinding deadlock that led to four inconclusive elections in two years, and an even longer period of polarizing politics and government paralysis, the architects of the coalition have pledged to get Israel back on track.
    • An Unclear Future. Parliament still has to ratify the fragile agreement in a confidence vote in the coming days. But even if it does, it remains unclear how much change the “change government” could bring to Israel because some of the parties involved have little in common besides animosity for Mr. Netanyahu.

“It’s not going to be easy,” said Avraham Diskin, a political scientist at Hebrew University in Jerusalem. “I really doubt that Lapid will become prime minister two years from now.”

Among measures the prospective government has agreed on is legislation that would set a two-term limit for prime ministers. In effect, this would preclude Netanyahu redux.

Four ministries will be shut down, including the digital and strategic affairs ministries. Mr. Netanyahu had a cabinet so large and unwieldy he could argue that he had to make decisions himself.

The prospective government will also pursue legislation designed to make it more difficult to change Israel’s basic laws, which serve as the constitutional foundation of the country in the absence of a constitution. Mr. Netanyahu, who had been indicted on fraud and other charges, appeared to seek a curtailing of the powers of the Supreme Court and immunity from prosecution as prime minister.

The presence of Raam, an independent Arab party, in government, will affect policy to some degree.

The disparities in living standards, education, and access to land between Israeli Jews and the Palestinian citizens of Israel, who account for some 20 percent of the population, has become a burning issue. Violent clashes between the communities last month were the worst in two decades. Tensions remain high.

The government looks set to allocate almost $10 billion to close gaps between the communities over the next several years, freeze demolitions of unlicensed homes in Arab areas, recognize three Bedouin villages in the Negev desert, improve public transportation, and increase policing in disadvantaged Arab communities suffering from drug dealing and violence.

The posts promised to Raam to secure its support include deputy minister in the prime minister’s office and chairman of the Knesset committee for Arab affairs.

But tensions could flare at any moment. Most immediately, a nationalist march through Muslim-majority areas of Jerusalem’s Old City has been rescheduled for Tuesday. The original Jerusalem Day march last month was canceled because of Hamas rocket fire and clashes between the police and Palestinian protesters.

The issue remains highly sensitive, charged with the same emotions that led to a short war last month, despite efforts to agree on a less sensitive route for the march. The political adroitness of Mr. Bennett and Mr. Lapid will be quickly tested.

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G-7 leaders to pledge 1 billion doses of Covid vaccines to poorer nations

LONDON – The G-7 leaders are expected to pledge 1 billion doses of coronavirus vaccine to poorer nations this weekend to allay concerns about vaccine nationalism.

The world’s most advanced economies – as the G-7 defines itself – have been criticized for not sharing more vaccines with countries that have fewer resources. For example, the United States has a legal requirement that it cannot send vaccines abroad until it has reached satisfactory levels of vaccination within its borders. The UK and the EU have also received similar criticism.

However, the G-7 countries – the US, UK, Canada, France, Germany, Italy and Japan – want to end the pandemic next year and will increase their individual contributions, according to a statement released by the UK government on Thursday.

The UK already announced on Thursday that it would donate at least 100 million surplus coronavirus vaccine doses within the next year. The United States also announced earlier this week that it would donate 500 million doses of the Pfizer BioNTech shot to low-income countries.

On Thursday, EU Commission President Ursula von der Leyen, who will represent the EU in the G-7, also said: “We are signing the G-7’s goal of ending the pandemic by 2022 through increased global vaccination.”

Sharing vaccines is described by health officials as the only way to end the pandemic completely. Because as long as the virus exists, it can mutate and spread around the world. At the same time, measures like lockdowns and social distancing are likely to continue to affect global economic performance.

According to the Johns Hopkins University, there have been more than 174 million cases of Covid-19 and more than 3.7 million deaths worldwide since the pandemic broke out in early 2020.

The pandemic is at the center of discussions among G-7 leaders, whose three-day summit in Cornwall, England, kicks off on Friday.

In this context, the US surprised other heads of state and government last month by supporting the waiver of intellectual property rights for Covid vaccines.

Health experts, human rights groups and international medical charities argue that this is vital to urgently addressing the global vaccine shortage amid the pandemic and ultimately avoiding a prolongation of the health crisis. However, vaccine makers say this could disrupt the flow of raw materials and result in less investment in health research by smaller biotech innovators.

This opinion is also shared by some EU leaders, in particular French President Emmanuel Macron and German Chancellor Angela Merkel.

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America Might Be ‘Again’ in Europe, however How A lot Has Actually Modified?

FALMOUTH, England – Few pictures have captured the rupture of the transatlantic relationship better than that of President Donald J. Trump in 2018, arms crossed over his chest, as he saw Chancellor Angela Merkel and other frustrated leaders in their doomed endeavors the rescue of their summit resisted in Canada.

When the same leaders meet again in Cornwall, England on Friday, President Biden will reverse body language and replace stagnation with hug. But below the pictures, it’s not clear how much more open the United States will be to Europe than it was under Trump.

The transatlantic partnership has always been less reciprocal than its proponents like to claim – a marriage in which one partner, the United States, held the nuclear umbrella. Now that China is overtaking the Soviet Union as America’s arch-rival, the two sides are less united than they were during the Cold War, a geopolitical shift that exposes longstanding tensions between them.

At the reunification of the group of 7 industrialized nations on Friday, the question arises: will this expression of solidarity be more than a diplomatic pantomime – reassuring for Europeans who are traumatized by Trump’s “America First” policy, but have to disappoint them if they do realize that? does the United States go its own way under Mr Biden?

“America’s foreign policy has not fundamentally changed,” said Tom Tugendhat, Chairman of the Foreign Affairs Committee in the UK Parliament. “It’s more collaborative and inclusive, but essentially it’s the same.”

“Like all leaders,” he added, “Biden puts his own country first. How he achieved this distracted many. “

Few Europeans question the sincerity of his efforts. Even more than his former boss, Barack Obama, Mr Biden is an Atlanticist who has been involved in European affairs from the Balkans to Belfast for decades.

On Thursday he and Prime Minister Boris Johnson presented a new Atlantic Charter based on the post-World War II draft signed by Franklin D. Roosevelt and Winston Churchill.

In their first face-to-face meeting, Mr Biden and Mr Johnson each projected unity, each promising that his country would provide hundreds of millions of doses of vaccine to the developing world.

“I will not contradict the President in this or anything,” said Mr Johnson after Mr Biden said that both he and the newlywed Prime Minister “got married over our station.”

But the president has made China the guiding star of his foreign policy more aggressive. While American officials seek European support for these efforts, analysts said their expectations are limited given the commercial interests of Germany and other countries and the fact that Ms. Merkel and other Europeans showed no appetite for a new Cold War with Beijing.

“The Biden administration is determined to be courteous, determined to hear them, and then they will do whatever it was up to,” said Jeremy Shapiro, who worked at the State Department during the Obama administration and is now the European Council’s director of research for foreign relations in London.

“It doesn’t matter what US policy is towards Europe,” said Shapiro, summing up the prevailing opinion in the government. “We’re going to get the same amount out of them in China.”

The skepticism goes in both directions. Many European officials view Mr. Biden’s statement that “America is back” with a yellowish look, even if it is well-intentioned, in the face of the attack on the US Capitol and other threats to American democracy, not to mention Mr. Trump’s iron influence on the Republican Party.

“We live in an era of loss of confidence,” said Wolfgang Ischinger, a former German ambassador to the United States who chairs the Munich Security Conference, at which Biden was a regular speaker.

The Germans used to think that the transatlantic alliance didn’t care much whether the president was a Democrat or a Republican. Now Ischinger said: “For the first time in 70 years we are confronted with a new question: What happens when a resurrected Trump appears on the stage?”

White House officials have carefully choreographed Mr Biden’s trip to make it a summer festival of Alliance repair. But back in Washington, analysts say its staff moves show a marginalized role for Europe.

Biden in Europe

Updated

June 10, 2021, 8:08 p.m. ET

The White House has appointed prominent officials to coordinate Indo-Pacific and Middle Eastern politics in the National Security Council. There is no equivalent for Europe, nor has the government made diplomatic appointments such as a NATO ambassador or an envoy for Northern Ireland.

Mr Biden has welcomed the leaders of Japan and South Korea to the White House, but has not yet welcomed a major European leader.

On the eve of his visit to the UK, a senior American diplomat spoke bluntly to Johnson’s chief negotiator for Brexit about how the UK is handling tensions over post-Brexit trade deals in Northern Ireland.

There is a similar sense of limited expectations of Russia on both sides, even if Mr Biden meets President Vladimir V. Putin in Geneva next week. Washington-Moscow relations quickly deteriorated in the early months of the administration as the United States faced a Russian hacking operation, evidence of continued Russian interference in the 2020 presidential campaign, and Putin’s masses of troops on Russia’s border with Ukraine.

Russia’s arrest of opposition leader Aleksei A. Navalny three days before Mr Biden’s inauguration set the tone for tensions to come.

Far from the “reset button” that Mr. Biden announced during his tenure as Vice President of Mr. Obama in 2009, his meeting with Mr. Putin appears to be primarily aimed at suppressing tensions with what is usually a divided Russia, so that both sides can use it avoid conflicts that could disrupt Mr Biden’s domestic political agenda.

Given what analysts are saying, Mr Putin’s calculation is that Russia will benefit from instability by sowing, they question how successful Mr Biden will be. Europe’s proximity to Russia – and Germany’s dependence on its natural gas – means that instability would pose a greater threat to Europe than it does to the United States.

“The problem with China is that it’s not our neighbor, it’s the US neighbor,” said Robin Niblett, director of Chatham House, a think tank in London. “Russia is Europe’s neighbor, and that reality complicates it, but only to the extent that the US wants to raise the temperature.”

The government’s zigzag course on Nord Stream 2, a gas pipeline that runs from Russia to Germany, has left some in Europe scratching their heads. Foreign Minister Antony J. Blinken said Mr. Biden publicly rejected the pipeline as a “bad idea”. But Mr Blinken recently declined to impose sanctions on those behind the $ 11 billion project, saying its conclusion was a “fait accompli”.

The reversal on the eve of Mr Biden’s European tour seemed designed to avoid a break with Germany, a critical ally. But in Britain, which is cracking down on Russia tougher than Germany, some officials said they were concerned that the decision would encourage Mr Putin and weaken Ukraine’s eastern border.

While the transatlantic differences with China are substantial, officials on both sides say Europe is gradually moving in Mr Biden’s direction. The European Parliament held up the ratification of a landmark investment treaty between Brussels and Beijing last month. This followed Beijing’s sanctioning of ten European Union politicians in what Europeans thought was an exaggerated reaction to the sanctions China had imposed for imprisoning Uighur minorities in Xinjiang.

The UK has leaned on the US on China, restricting Chinese telecommunications giant Huawei’s access to its 5G network. However, analysts warn that the change is motivated less by a change of heart about Beijing than by a desire not to get out of step with its most important ally after Brexit.

Some in Europe argue that Mr. Biden’s China policy is not fully worked out, noting that there was no shortage of diplomatic pantomime at Mr. Blinken’s stormy meeting with Chinese officials in Alaska in March.

Europe’s views could also develop further with the departure of Ms. Merkel, who firmly believes in a commitment to China, after 16 years in office and with French President Emmanuel Macron, who faces a difficult election campaign next year.

“The EU’s position on China has hardened over human rights issues,” said Simon Fraser, a former senior official in the UK Foreign Office. “I suspect there is a lot in common, even if different national interests come into play.”

Still, some Europeans have been put off by the way Mr Biden has portrayed competition with China in stark ideological terms – a fateful battle between democracy and autocracy in which the autocrats could win.

For leaders like Ms. Merkel, whose land sells millions of Volkswagen and BMW in China, the relationship is driven by trade and technology, not a possible military clash in the South China Sea.

“There’s a profound psychological problem at play,” said Thomas Wright, director of the Center on Europe and the United States at the Brookings Institution in Washington. “Some Europeans believe the US is too nostalgic for the Cold War and too ready to return.”

These are, of course, the early days of Mr Biden’s presidency. Analysts said he had recalibrated his message on China and Russia two months ago when he told Congress that Chinese President Xi Jinping believed that “democracy cannot compete with autocracies in the 21st century.”

Charles A. Kupchan, a Georgetown University professor who worked in the Obama administration on European affairs, said Mr Biden’s goal was to prevent the creation of a Sino-Russian bloc against the West. That requires the help of allies, which is why he predicted that Mr. Biden would not only listen to Europeans, but would also listen.

“This attempt to find geopolitical dividing lines will not find much support from the American allies,” said Kupchan.

Mr Biden appears to be sensitive to these concerns. In a column in the Washington Post last Sunday in which he outlined his travel destinations, he refrained from militant references to an autocratic China. Instead, he wrote about whether the United States and its allies might face a poor challenge: “Can democracies come together to deliver real results for our people in a rapidly changing world?”

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Third member of prestigious FDA panel resigns over approval of Biogen’s Alzheimer’s drug

A sign for the Food and Drug Administration is seen outside of the headquarters on July 20, 2020 in White Oak, Maryland.

Sarah Silbiger | Getty Images

A third member of a key Food and Drug Administration advisory panel has resigned over the agency’s controversial decision to approve Biogen’s new Alzheimer’s drug, Aduhelm, CNBC has learned.

Dr. Aaron Kesselheim, a professor of medicine at Harvard Medical School, said the agency’s decision on Biogen “was probably the worst drug approval decision in recent U.S. history,” according to his resignation letter obtained by CNBC.

“At the last minute, the agency switched its review to the Accelerated Approval pathway based on the debatable premise that the drug’s effect on brain amyloid was likely to help patients with Alzheimer’s disease,” he wrote in resigning from the FDA’s Peripheral and Central Nervous System Advisory Committee.

He wrote it was “clear” to him that the agency is not “presently capable of adequately integrating the Committee’s scientific recommendations into its approval decisions.”

Shares of Biogen surged 38% Monday after the FDA approved the biotech company’s drug, the first medication cleared by U.S. regulators to slow cognitive decline in people living with Alzheimer’s and the first new medicine for the disease in nearly two decades.

The agency’s decision was a departure from the advice of its independent panel of outside experts, who unexpectedly declined to endorse the drug last fall, citing unconvincing data. At the time, the panel also criticized agency staff for what it called an overly positive review of the data.

This is a developing story. Please check back for updates.

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Covid-19 Reside Updates: The Newest Information

Here’s what you need to know:

Credit…Pool photo by Francisco Seco

Leaders of the European Union on Thursday joined the calls for a full investigation into the origins of Covid-19, with the European Council president declaring “support for all the efforts in order to get transparency and to know the truth.”

“The world has the right to know exactly what happened in order to be able to learn the lessons,” added the president, Charles Michel, who heads the European Council, the body that represents the bloc’s national leaders. He made the comments during a news conference preceding the Group of 7 summit, which starts on Friday and will be attended by President Biden.

The World Health Organization conducted an inquiry this year into the origins of the virus, which first appeared in the Chinese city of Wuhan in late 2019. The study concluded that “introduction through a laboratory incident was considered to be an extremely unlikely pathway” but was widely seen as incomplete because of China’s limited cooperation. Governments, health experts and scientists have called for a more complete examination of the origins of the virus, which has killed more than 3.7 million people worldwide.

Late last month, Mr. Biden ordered American intelligence agencies to investigate the origins of the virus, an indication that his administration was taking seriously the possibility that the deadly virus had accidentally leaked from a lab, in addition to the prevailing theory that it was transmitted by an animal to humans outside a lab.

Ursula von der Leyen, the president of the European Commission, the European Union’s executive arm, highlighted on Thursday that “investigators need complete access to the information and to the sites” to “develop the right tools to make sure that this will never happen again.”

In the draft conclusions of next week’s summit between the European Union and the United States, leaders will call for “progress on a transparent, evidence-based and expert-led W.H.O.-convened Phase 2 study on the origins of Covid-19, that is free from interference.”

The nearly empty parking lot of a drive-through vaccination site in Forest, Miss., on Wednesday.Credit…Elijah Baylis for The New York Times

NASHVILLE — Public health departments have held vaccine clinics at churches. They have organized rides to clinics. Gone door to door. Even offered a spin around a NASCAR track for anyone willing to get a shot.

Still, the United States’ vaccination campaign is sputtering, especially in the South, where there are far more doses than people who will take them.

As reports of new Covid-19 cases and deaths nationwide plummet and many Americans venture out mask-free, experts fear the virus could eventually surge again in states like Alabama, Louisiana and Mississippi, where fewer than half of adults have had a first shot.

“I don’t think people appreciate that if we let up on the vaccine efforts, we could be right back where we started,” said Dr. Jeanne Marrazzo, the director of the Division of Infectious Diseases at the University of Alabama at Birmingham.

A range of theories exist about why the South, which as of Wednesday was home to eight of the 10 states with the lowest vaccination rates, lags behind: hesitancy from conservative white people, concerns among some Black residents, longstanding challenges when it comes to health care access and transportation.

The answer, interviews across the region revealed, was all of the above.

“There’s no magic bullet. There’s no perfect solution,” said Dr. W. Mark Horne, president of the Mississippi State Medical Association.

Time is of the essence, both to prevent new infections and to use the doses already distributed to states. Coronavirus variants are spreading, especially the highly transmissible and increasingly prevalent Delta variant, first detected in India. And millions of Johnson & Johnson vaccine doses will expire nationwide this month, prompting some governors to issue urgent pleas that health providers use them soon.

From rural Appalachia to cities like Birmingham and Memphis, the slowdown has forced officials to refine their pitches to residents. Among the latest offerings: mobile clinics, Facebook Live forums and free soccer tickets for those who get vaccinated.

A health worker preparing a dose of Moderna’s Covid vaccine at a medical center near Paris in March. Credit…Dmitry Kostyukov for The New York Times

Moderna requested an emergency authorization on Thursday from the Food and Drug Administration for use of its coronavirus vaccine in 12- to 17-year-olds. If authorized, as expected, the vaccine would offer a second option for protecting adolescents from the coronavirus, and hasten a return to normalcy for middle- and high-school students.

The company has already filed for authorization with Health Canada and the European Medicines Agency, and plans to seek approval in other countries, the chief executive Stéphane Bancel said in a statement. Authorization by the F.D.A. typically takes three to four weeks.

Last month, the F.D.A. expanded emergency use authorization for the vaccine made by Pfizer and BioNTech for use in children ages 12 to 15 years. That vaccine was already available to anyone older than 16. About 7 million children under 18 have received at least one dose of the vaccine so far, and about 3.5 million are fully protected.

Moderna’s vaccine was authorized for use in adults in December. Its application to the F.D.A. for young teens is based on study results reported last month. That clinical trial enrolled 3,732 children ages 12 to 17 years, with 2,500 receiving two doses of the vaccine and the remaining a saltwater placebo.

The trial found no cases of symptomatic Covid-19 among fully vaccinated teens, which translates to an efficacy of 100 percent, the same figure that Pfizer and BioNTech reported for that age group. The trial also found that a single dose of the Moderna vaccine has an efficacy of 93 percent. Participants did not experience serious side effects beyond those seen in adults: pain at the site of the injection, headache, fatigue, muscle pain and chills.

An independent safety monitoring committee will follow all participants for 12 months after their second injection to assess long-term protection and safety.

A funeral home employee sanitized coffins in Buenos Aires in early May.Credit…Juan Ignacio Roncoroni/EPA, via Shutterstock

RIO DE JANEIRO — Officials at the World Health Organization on Wednesday repeated their calls for the world’s governments to accelerate plans to distribute coronavirus vaccines to hard-hit nations, warning that many countries in Latin America continued to see rising caseloads.

“Across our region, this year has been worse than last year,” said Dr. Carissa F. Etienne, the director of the Pan American Health Organization, which is part of the W.H.O. “In many places, infections are higher now than at any point in this pandemic.”

The comments came as President Biden prepared to announce that his administration would buy 500 million doses of the Pfizer-BioNTech vaccine and donate them among about 100 countries over the next year, according to people familiar with the plan. Mr. Biden could announce the arrangement as early as Thursday, as he begins his first trip abroad as president.

It is not yet clear which countries the 500 million vaccine doses would be supplied to, but Latin America is among the regions where the need is urgent. Eight of the 10 countries with the highest rate of Covid deaths per capita are in Latin America and the Caribbean, according to the Center for Systems Science and Engineering at Johns Hopkins University.

And even as hospitals in Argentina, Chile, Uruguay and other nations where the virus continues to spread aggressively have created overflow facilities, health care systems in several nations in the region are struggling to cope, Dr. Etienne said during the W.H.O.’s virtual news conference on Wednesday morning.

“Despite the doubling or even the tripling of hospital beds throughout the region, I.C.U. beds are full, oxygen is running low and health workers are overwhelmed,” she said.

Most governments in Latin America are struggling to acquire enough doses to quickly inoculate their people, which will delay their ability to fully reopen economies, officials said.

Last week, Mr. Biden said that the United States would distribute 25 million doses this month to countries in the Caribbean and Latin America; South and Southeast Asia; Africa; and the Palestinian territories, Gaza and the West Bank. Those doses are the first of 80 million that Mr. Biden pledged to send abroad by the end of June.

Dr. Etienne said that only a more equitable distribution system would put an end to the pandemic in the foreseeable future.

“Today we’re seeing the emergence of two worlds, one quickly returning to normal and another where recovery remains a distant future,” Dr. Etienne said. “Unfortunately, vaccine supply is concentrated in a few nations while most of the world waits for doses to trickle down.”

She singled out the vaccine shortage in Central America, home to more than 44 million people, where just over two million have been inoculated. Fewer than three million people have been vaccinated in nations in the Caribbean, which has a population of just over 34 million.

A covid-19 vaccination center in Sultanpur village in Utter Pradesh, India, last week.Credit…Atul Loke for The New York Times

As it has with nearly every other major event of the past year, the pandemic looms large over this week’s Group of 7 summit, with world leaders already making commitments to do more to stop the coronavirus as they prepare for the three-day gathering that begins on Friday.

In recent months, wealthy nations with robust vaccination campaigns have quickly moved toward inoculating large swaths of their population. Now, they are pledging to help the rest of the world meet that goal, too.

In a statement released on Thursday, Prime Minister Boris Johnson, who is playing host to the summit as Britain takes up the G7 presidency this year, said it was crucial to use the moment to act.

“The world needs this meeting,” he said. “We must be honest: International order and solidarity were badly shaken by Covid. Nations were reduced to beggar-my-neighbor tactics in the desperate search for P.P.E., for drugs — and, finally, for vaccines,” he added, referring to personal protective equipment.

He said now was the time to “put those days behind us.”

“This is the moment for the world’s greatest and most technologically advanced democracies to shoulder their responsibilities and to vaccinate the world, because no one can be properly protected until everyone has been protected,” he added.”

President Biden, under pressure to address the global coronavirus vaccine shortage, will announce on Thursday that his administration will buy 500 million doses of the Pfizer-BioNTech vaccine and donate them among about 100 countries over the next year, the White House said.

“We have to end Covid-19, not just at home, which we’re doing, but everywhere,” Mr. Biden told United States troops at R.A.F. Mildenhall in Suffolk, England, on Wednesday evening. “There’s no wall high enough to keep us safe from this pandemic or the next biological threat we face, and there will be others. It requires coordinated multilateral action.”

Pfizer said in a statement announcing the deal on Thursday that the United States would pay for the doses at a “not for profit” price. The first 200 million doses will be distributed by the end of this year, followed by 300 million by next June, the company said. The doses will be distributed through Covax, the international vaccine-sharing initiative.

“Fair and equitable distribution has been our North Star since Day One, and we are proud to do our part to help vaccinate the world, a massive but an achievable undertaking,” Albert Bourla, Pfizer’s chief executive, said in a statement.

global round up

Singapore this month. In mid-May, the government banned dining in restaurants and gatherings of more than two people.Credit…Feline Lim/Getty Images

The Singaporean government said on Thursday that it would ease some social restrictions after nearly a month of tough measures to contain a coronavirus outbreak fueled in part by the Delta variant, first detected in India.

The city-state also said that it would expand its vaccination campaign, allowing Singaporeans ages 12 and older to register for shots beginning on Friday and extending eligibility to the rest of the population in the coming months.

The announcement came a day after the nation of 5.7 million recorded just two new coronavirus cases, the lowest number in months. In mid-May, after an outbreak at Singapore’s international airport led to dozens of infections, the government banned dining in restaurants and gatherings of more than two people.

“We have slowed down the chains of transmission and reduced the number of community cases, and are now in a position to ease the tightened measures,” the Health Ministry said in a statement on Thursday.

Beginning on Monday, people will be allowed to gather in groups of up to five, and restaurants and gyms will be permitted to reopen to customers the following week if cases remain low, the ministry said.

About a third of Singaporeans are fully vaccinated, one of the highest rates in Asia, but the country has kept cases low by requiring masks, strictly tracing contacts and eliminating most overseas travel. Officials have said that lifting further restrictions will depend on many more people getting vaccinated.

In other news around the globe:

  • Abu Dhabi, in the United Arab Emirates, will restrict access to shopping malls, restaurants, cafes and other public places to those who have been vaccinated against the coronavirus or who have recently tested negative, starting on Tuesday, Reuters reported. The new rules were announced late on Wednesday and come as the United Arab Emirates has seen daily cases rise during the past three weeks. The restrictions will also apply to gyms, hotels, public parks, beaches, swimming pools, entertainment centers, cinemas, and museums, Abu Dhabi’s media office said.

  • Germany’s vaccination confirmation app was introduced on Thursday, nearly half a year after inoculations started there. The app, called CovPass, will present a simple QR code confirming that the owner is fully vaccinated. Starting on Monday, doctors and pharmacies will be able to transcribe the usually handwritten entries from paper vaccine booklets into the digital app.

  • After accusations of fraud at its rapid virus-testing centers, the Health Ministry in Germany announced tougher licensing rules and more spot checks. Public sector health insurers are being tasked with keeping a close eye on the number of tests claimed and carrying out spot checks if the numbers seem off. The government’s per-test payout will also be significantly reduced, to a maximum of 12.50 euros, or about $15, from €18.

  • David Hasselhoff called for people to roll up their sleeves for the vaccine in an advertisement for Germany’s inoculation campaign. “I’ve found freedom in vaccination,” the former “Baywatch” star said in the clip, a reference to his 1989 version of the song “Looking for Freedom,” which became a smash success in Germany as the Berlin Wall fell and which he performed atop the Wall on New Year’s Eve that year. German health authorities believe that as much as 75 percent of the population will eventually get vaccinated.

Christopher F. Schuetze contributed reporting.

An eruption of the Kilauea volcano last December. The volcano is just one of the many tourist draws on Hawaii’s Big Island.Credit…Janice Wei/National Park Service, via Associated Press

An overcrowded jail in Hawaii that had avoided Covid-19 outbreaks during the first 15 months of the pandemic has been overwhelmed by the virus — with more than one-third of its inmates infected — just as the state is more fully reopening to tourists.

The outbreak corresponds with a significant rise in Covid-19 cases in Hawaii County, or the Big Island, where the jail is situated: There has been a 141 percent increase in infections during the past two weeks, according to a New York Times database.

The National Guard is helping with testing and security to control the outbreak at the Hawaii Community Correctional Center in Hilo, the Big Island’s largest city, where inmates started fires last week as part of a protest, advocacy groups for inmates said.

Public health officials have warned for months that the nation’s correctional facilities will continue to suffer from large numbers of coronavirus infections until the vast majority of inmates and staff are vaccinated.

And because the average person stays in jail for only about 10 days, the virus has been able to spread rapidly between the community and jails during the course of the pandemic.

The reluctance among inmates and staff in the nation’s prisons and jails to get inoculated has complicated vaccination efforts, including in Hawaii.

At the Hilo jail, there are no precise figures available for vaccinations, but as few as 25 percent of inmates and 50 percent of staff have consented to be vaccinated, Lt. Gov. Josh Green, who is also an emergency room physician, said in an interview. The result, he said, is potential community spread through both inmates and staff.

“If there was a continuous simmering outbreak of Covid in the one place where very few people are getting vaccinated, it can break back into the community,” Mr. Green said.

The jail outbreak has led to some uncertainty about reopening. For much of the pandemic, travelers have been required to quarantine for at least 10 days upon arrival.

But arriving tourists can now skip quarantine by showing proof of a negative coronavirus test taken within 72 hours of their arrival. Beginning next Tuesday, people will no longer have to show negative tests to travel from one of the state’s islands to another. Demand for hotel rooms has increased more than 800 percent, according to state tourism data from April, the latest available.

As of Wednesday morning, 138 inmates and 18 staff have been infected in the Hilo jail, officials said.

There are currently about 340 inmates at the jail — about 120 more than its capacity. Inmates routinely must sleep on floors.

“This is scary because what’s happening — I don’t think it’s just going to be contained to that one place, because it’s going to leak out into the community where the guards live,” said Kat Brady, the coordinator of an advocacy group, the Community Alliance on Prisons.

Dr. Green said the state is considering prohibiting unvaccinated guards from having contact with prisoners in the future.

He said correctional institutions were among the “last pockets of risk” for coronavirus outbreaks, and that the lack of priority in reducing crowding and increasing vaccination rates was shortsighted.

“People are more inclined to spend money on ‘good citizens’ versus those who have lost their way,” he said. “But outbreaks will affect us all.”

Ann Hinga Klein and

A hospital in Bhagalpur, in the Indian state of Bihar, last year. A review found that more than 9,000 people had died from Covid-related complications  in the northern state since March 2020.Credit…Danish Siddiqui/Reuters

NEW DELHI — India’s coronavirus death toll shot up on Thursday after an audit unearthed thousands of uncounted fatalities in the northern state of Bihar, one of the largest and poorest states in the country.

The audit in Bihar showed that more than 9,000 people had died from Covid-related complications since March 2020, significantly higher than the 5,500 deaths originally reported.

The audit was ordered after a hearing on May 17 in the Bihar High Court in Patna, the state capital, in which a district commissioner reported that a single cremation ground had handled 789 bodies in a 13-day period in May. That number clashed sharply with the seven deaths in the whole of May that Tripurari Sharan, a top state-level official, had reported for that entire district.

The revised figures underline the doubts about the accuracy of the Indian government’s official coronavirus statistics. Even in normal times, only about one in five deaths in India is medically certified, experts say.

Opposition political parties in Bihar have accused the state’s top elected official, Nitish Kumar, and his administration of hiding the true death toll to mask failures to mitigate the deadly second wave that has battered India.

The high court in Bihar has been monitoring the state government’s pandemic response since early May after taking up a petition filed by an activist that complained of mismanagement.

But Bihar’s health minister, Mangal Pandey, told The New York Times that the updated numbers reflected a good-faith effort to uncover families eligible for monetary support from the government.

“The intention is to help everyone, not to hide the real death toll,” Mr. Pandey said. “We will leave no death unaccounted for.”

Elsewhere in India, such as in the western state of Gujarat, observers have reported a wide discrepancy between official coronavirus death numbers and the actual figures. While some states have issued revised numbers, no update comes close to Bihar’s. Still, experts say they believe that India’s total number, which because of the audit in Bihar rose by 6,148 deaths on Thursday to 359,676, is a vast undercount.

Emily Schmall reported from New Delhi, and Sameer Yasir from Srinagar, Kashmir.

Gilbert Torres, 30, a few hours after being extubated in January, in the intensive care unit of a Los Angeles hospital.Credit…Isadora Kosofsky for The New York Times

Deaths from Covid-19 have dropped 90 percent in the United States since their peak in January, according to provisional federal data, but the virus continues to kill hundreds daily. By late May, there were still nearly 2,500 weekly deaths attributed to Covid-19.

With more than half of the U.S. population having received at least one vaccine dose, experts say that the unvaccinated population is driving the lingering deaths.

After seniors were given priority when the first vaccines were authorized for emergency use in December, the proportion of those dying who were 75 or older started dropping immediately.

Younger populations began to make up higher shares of the deaths compared with their percentages at the peak of the pandemic — a trend that continued when all adults became eligible for the shots. While the number of deaths has dropped across all age groups, about half now occur in people aged 50 to 74, compared with only a third in December.

More than 80 percent of those 65 and older have received at least one vaccine dose, compared with about half of those 25 to 64.

“I still think the narrative, unfortunately, is out there with younger people that they can’t suffer the adverse events related to Covid,” which is not the case, said Krutika Kuppalli, an infectious-diseases expert at the Medical University of South Carolina.

Still, those 50 and older make up the bulk of Covid-19 deaths. Among that cohort, white Americans are driving the shifts in death patterns. At the height of the pandemic, those who were white and aged 75 and older accounted for more than half of all Covid-19 deaths. Now, they account for less than a third.

Middle-age populations of all racial groups are making up a higher proportion of Covid-19 deaths than they did in December.

The extent of the drop in deaths, however, is not uniform, and cumulative vaccination rates among Black and Hispanic populations continue to lag behind those of Asian and white populations, according to demographic data from the Centers for Disease Control and Prevention.

The data shows that more work is needed to reach and vaccinate “rural populations, ethnic and racial minority populations, homeless populations, people who don’t access medical care,” Dr. Kuppalli said.

Outside the Goldman Sachs headquarters in Manhattan. The bank is requiring all of its employees in the United States to log their vaccination status in the bank’s system.Credit…Brendan Mcdermid/Reuters

Goldman Sachs wants to know how many of its employees have gotten a Covid-19 shot. The bank sent a memo this week informing employees in the United States that they must report their vaccination status by noon on Thursday.

“Registering your vaccination status allows us to plan for a safer return to the office for all of our people as we continue to abide by local public health measures,” said a section of the memo, which was sent to employees who have not yet reported their status and was obtained by the DealBook newsletter.

Disclosing vaccination status had been optional at the bank. In May, Goldman told employees that they could go maskless in the Manhattan office if they reported their vaccination status.

Now, all Goldman employees in the United States, regardless of whether they choose to wear a mask while in the office, will need to log their status in the bank’s system. They do not need to show proof of vaccination, but will be asked to record the date they received their shots and the maker of the vaccine.

The bank has roughly 20,000 employees based in the firm’s New York headquarters as well as other U.S. cities, including San Francisco and Dallas.

The Equal Employment Opportunity Commission made clear this month that asking employees for their vaccination status was legal, as long as the data was kept confidential.

Companies are trying to find out how many workers are vaccinated ahead of full office reopenings. They’re doing it by conducting surveys, giving out cash rewards upon proof of vaccination or making reporting compulsory, as with Goldman. That data can inform the need for new incentives to get more people vaccinated or potentially to impose a mandate. (Goldman, for its part, said in the memo it “strongly encourages” vaccination, though the choice “is a personal one.”) The Wall Street firm, which began to bring more workers back to the office this month, has been offering employees paid time off to get the shots.

An underground market has sprung up for vaccination cards.Credit…Lucy Nicholson/Reuters

A Nevada man accused of stealing more than 500 blank Covid-19 vaccine cards from the Los Angeles vaccination site where he worked was charged on Wednesday with one felony count of grand theft, according to the Los Angeles County District Attorney’s office.

The man, Muhammad Rauf Ahmed, 46 of Las Vegas, had been arrested in April, but the charge was delayed as the police and prosecutors sought to determine the value of the cards, which was eventually judged to be “at least $15 apiece if illegally sold.”

Around the country, many bars, restaurants and businesses that operate under limited capacity have loosened restrictions for people who can prove that they have gotten the vaccine, creating an underground market for doctored or fraudulent vaccine cards.

In January, fake vaccine cards were being sold on eBay, Etsy, Facebook and Twitter, ranging in price from $20 to $60. In May, a California bar owner was arrested on charges that he sold fake vaccine cards for $20 a piece.

Mr. Ahmed was a nonclinical contract employee hired to work at the vaccination site at the Los Angeles County Fairgrounds, where nearly 4,000 vaccines are administered daily, the La Verne Police Department, in eastern Los Angeles County, said in a statement on Tuesday.

La Verne Detectives recover over 500 blank COVID-19 vaccine cards stolen from Fairplex Mega-POD.

Muhammad Raud Ahmed, 45 of Las Vegas NV, a non-clinical contracted employee of the location has been arrested.#arrest #COVID19 #vaccine pic.twitter.com/HlzJpSONEU

— La Verne Police Dept (@LaVernePD) June 8, 2021

On April 27, the department was contacted after a security guard at the site spotted Mr. Ahmed leaving with a batch of the distinctive cards in his hand, Detective Sgt. Cory Leeper said in an interview on Wednesday.

Eventually, two staff members from the vaccination site confronted Mr. Ahmed at his car, the detective sergeant said. Mr. Ahmed told them that he liked to go to his car on his break and on that day, sought to “pre-fill” the cards with information that went to every recipient in order to get ahead of his workload, the detective sergeant said.

Officials recovered 128 cards from Mr. Ahmed’s vehicle, according to the police, and when questioned further, Mr. Ahmed acknowledged that he may have taken additional cards. The police found 400 blank cards in the hotel room where he was staying. Mr. Ahmed was arrested. Efforts to reach him by telephone on Wednesday were not successful.

“Selling fraudulent and stolen vaccine cards is illegal, immoral and puts the public at risk of exposure to a deadly virus,” George Gascón, the district attorney in Los Angeles, said in a statement on Wednesday.

Receiving the Astrazeneca vaccine last month in Rome. The shots have been promoted to younger people at “open” events, but that may be about to change.Credit…Fabrizio Villa/Getty Images

Back in April, Italy, acting on a report by Europe’s drug regulator of a “possible link” between the AstraZeneca vaccine and rare blood clots, recommended not giving the shots to people under 60.

But in the ensuing months, as the country put its inoculation campaign into overdrive, AstraZeneca vaccines became the featured attraction of “open days” or “open nights,” which offered shots to younger people weeks ahead of where they would have fallen in the priority schedule. The events — some featuring D.J.s and group selfies — were praised as a great success. But they also raised concerns that Italy seemed to be promoting the AstraZeneca vaccine to younger people despite the regulator’s recommendations.

On Wednesday, the government muddled matters further by publicly mulling whether to introduce stricter limitations on the use of the AstraZeneca shots that would effectively prohibit such events for younger people in the future.

“I think new indications would be appropriate,” Pierpaolo Sileri, an undersecretary at the Italian Health Ministry, told the Italian news website Fanpage, adding that the government would consider a block on administering the vaccine to people under the age of 30 or 40.

Other countries have also struggled to chart a clear policy on the AstraZeneca vaccine.

Though the regulator, the European Medicines Agency, deemed the vaccine safe, the risk of very rare blood clots has led some nations to adapt their approaches. In Britain, where the vaccine was created, more than 35 million doses have been given, but the country has acknowledged the risk by offering younger people an alternative when possible. France only distributes the shots to people who are 55 and older, Belgium to those who are 41 and older.

Germany stopped using the AstraZeneca shots altogether for a few days, before later recommending that they should not be used in people under 60. Now, like Italy, Germany has made the AstraZeneca vaccine available to anyone over 18, as long as they acknowledge the risk.

On Wednesday, a new study published in the journal Nature Medicine showed that people receiving the AstraZeneca vaccine had a slightly increased risk of a bleeding disorder and possibly of other rare blood problems.

Andrea Costa, another undersecretary at the Italian Health Ministry, said on Italian radio on Wednesday that the country was able to rely on “many other vaccines” and that any further limitation “will not hamper the vaccination campaign.”

But some doctors in Italy said they feared that yet another change in direction could prompt more skepticism toward the AstraZeneca vaccine.

“This poor vaccine,” said Dr. Patrick Franzoni, who spearheads the inoculation campaign in the northern region of Trentino-Alto Adige. “With this Ping-Pong of information, we risk completely boycotting it.”

In the past weeks, Dr. Franzoni said that he had helped organize open nights, complete with D.J.s, during which 22,000 younger people, who would otherwise have had to wait weeks for a shot, received the AstraZeneca vaccine.

“When older people saw they had AstraZeneca on their slot they did not book the vaccine,” Dr. Franzoni said, “so we did these open nights” to use up the supply.

“And we had a great response,” he added.

Other Italian regions introduced similar initiatives. In Lazio, which includes Rome, about 200,000 people of all ages got their AstraZeneca shot during open days. And Liguria, in the northwest, offered more than 40,000 doses at similar events.

But when reports spread about an 18-year-old girl who was hospitalized with a cerebral thrombosis after attending an open day in Liguria, many canceled their appointments.

Some doctors in Italy have urged the government to stop distributing the AstraZeneca vaccine to younger people. “With a low circulation of the virus, the risks of AstraZeneca can outweigh the benefits in people below the age of 30,” Nino Cartabellotta, a prominent public health researcher, tweeted.

The Italian government is now discussing possible new and more restrictive recommendations, a spokesman for the Health Ministry said.

Christopher F. Schuetze, Monika Pronczuk and Constant Méheut contributed reporting.