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Health

New Zealand central financial institution rate of interest choice after Covid lockdown

Workers and shoppers eat on the steps of Freyberg Place in downtown Auckland, New Zealand on October 29, 2020, enjoying the freedom from Covid-19 Alert Level 1.

Lynn Grieveson | Newsroom | Getty Images

New Zealand was widely expected to be the first advanced economy to hike rates, but the central bank left rates unchanged on Wednesday after a Covid case prompted the country to announce a nationwide lockdown the day before.

The Reserve Bank of New Zealand said in a statement the decision to keep rates at 0.25% was made “in connection with the government’s imposition of level 4 COVID restrictions on activities across New Zealand”.

Prime Minister Jacinda Ardern imposed a nationwide lockdown on Tuesday when the first Covid case in six months was discovered in Auckland, the country’s largest city.

The city will be on lockdown for seven days starting Wednesday, while the rest of the nation will maintain a three-day lockdown. Level 4 restrictions are the highest in the country and the most restrictive where people must stay at home and can only leave for essential services.

‘Knife edge situation’

By Wednesday morning, the number of cases discovered had risen to seven and was confirmed as a highly transferable Delta variant, according to Reuters.

Paul Bloxham, chief economist for Australia and New Zealand at HSBC, called it an “exceptional 24 hours” and a “very sharp situation”.

“This morning … we find out that it is Delta (variant), and at that point 24 hours ago the market thought the RBNZ would deliver not just 20 but 25 (basis points),” he told CNBC’s Street Signs Asia “.

Ahead of the interest rate decision on Wednesday, Michael Gordon, acting chief economist for New Zealand at the Australian bank Westpac, said he did not expect a rate hike.

“The key here is that the government cannot trust the extent of the (Covid) problem,” he said in a note Tuesday after Ardern’s lock decision.

Analysts mostly expected a rate hike from the central bank, at least until the lockdown was announced. The majority of the 32 economists polled by Reuters expected the central bank to raise the official currency rate by 25 basis points from a record low to 0.50%.

Most central banks around the world have cut interest rates to record lows to prop up their pandemic-hit economies. Governments around the world have incentivized their economies to support businesses.

But New Zealand is among the most successful in the world in keeping its Covid cases in check with tough lockdowns and closings of its borders.

Major central banks in the APAC region are in no hurry to raise key rates … with the exception of New Zealand and Korea.

Maxim Darmet

Fit ratings

Partly due to its zero Covid strategy, the number of Covid cases has so far been kept at around 2,500, including 26 deaths – one of the lowest in the world.

That has helped the economy recover as data shows that economic growth in the first quarter of this year was above expectations. It was mainly driven by strong retail spending, falling unemployment rates and rising house prices.

The combination of minimal Covid restrictions and generous incentives has resulted in a booming economy and rising inflation, leading analysts to expect higher interest rates.

New Zealand dollar is falling

The New Zealand dollar fell to 0.6944 against the US dollar on Wednesday.

The currency has fallen from over 0.70 to over 0.69 since the lockdown was announced on Tuesday.

Bloxham said the New Zealand dollar could rebound once the Covid situation is contained.

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“If (the lockdown) is enough to contain the virus, keep the numbers small and push them back to zero … then you could imagine in a few weeks … there would be some kind of benefit for the New Zealand dollar,” he told the other CNBC’s “Street Signs Asia”.

New Zealand is likely to continue hike rates

With the expected increase now derailed, analysts said it would now depend on the magnitude of the virus situation.

“Regardless of the economic case for higher interest rates, there is nothing to be gained by pushing the (official cash rate) higher now instead of waiting for more clarity about the Covid situation,” said Gordon of Westpac.

He said experience has shown that once restrictions are lifted, activity tends to rebound. “If that happens, the RBNZ will face many of the same problems as before: an economy faced with cost pressures and capacity constraints, with the risk of inflation becoming more stubborn,” he said, adding that the increases will continue will be needed.

Meanwhile, Maxime Darmet, Asia-Pacific economic director at Fitch Ratings, told CNBC that most of the major central banks in the region are unlikely to hike rates anytime soon.

“The major central banks in the APAC region are in no hurry to start raising rates … with the exception of New Zealand and Korea. Generally limited inflationary pressures and Covid-related economic setbacks put APAC central banks ready to keep policy easy, ”Darmet said in an email to CNBC on Tuesday before the New Zealand lockdown was announced.

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Politics

Lockdown ends at D.C. navy base after suspect is detained

Arnold Gate of the Anacostia-Bolling joint military base in Washington, Wednesday, April 17, 2013.

Alex Brandon | AP

A lockdown at a U.S. military base in Washington, D.C., was lifted Friday after authorities detained a possibly armed individual who had entered the campus.

The all-clear announcement came at 2:50 p.m., more than two hours after Joint Base Anacostia-Bolling alerted people that the individual, initially described as a Black man with a medium-build carrying a Gucci bag, was on base.

The suspect had been detained by security forces at the base and would be transferred to the Metropolitan Police Department, whose officers were on the scene, a spokesman for the base told CNBC. The spokesman declined to say if the person surrendered willingly or if he was armed at the time he was detained.

Earlier, a spokeswoman for the MPD told CNBC that the department had received a phone call at 12:04 p.m. regarding the sound of gunshots being heard at a location east of the base.

No victims were been identified, the spokeswoman said.

MPD said they would only verify the person was male.

A social media account for the base at 12:37 p.m. first announced the potential threat.

“LOCKDOWN LOCKDOWN LOCKDOWN,” said a post on the base’s Facebook page.

“If you encounter the individual and have a safe route, RUN. If you do not have a safe route to run, HIDE. Barricade your door, turn off the lights and your cell phone ringer, and remain silent. If you are hiding, prepare to FIGHT,” the post said.

An update later described the individual as a Black man with a medium build and “dreads that are mid-back in length.” The person was wearing blue or green pants and a white tank top, and he may have been carrying a bag, according to that Facebook post.

That update, which came more than an hour after the lockdown order was posted, advised people to “continue to shelter in place.”

About 15 minutes beforehand, the Facebook page had alerted people to be on the lookout for two individuals: one a Black male with medium build “with dreads” and “wearing ripped blue jeans,” and the other a Black man wearing green pants and a white top who “may be injured.”

That was revised to just one person in subsequent posts.

Google Earth viewo of Anacostia-Bolling Air Force Base, DC.

Google Earth

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Health

A Return to Freedom, After Almost a 12 months Trapped Indoors Underneath Lockdown

TORONTO — Ted Freeman-Atwood, 90, rolled out of his tall brick nursing home in his wheelchair, wearing a blue tweed jacket with a white handkerchief peaking from its breast pocket. “This is the farthest I’ve traveled since last year,” he told the manager of his favorite restaurant two blocks away, who greeted him by name.

It was a beautiful day in June. The sky clear, the sun generous and Toronto’s streets alive. After eight months of near-constant, government-enforced closures, small storefronts flung open their doors to customers and restaurant patrons spilled out from sidewalk patios onto the road.

It was Mr. Freeman-Atwood’s first real outing since August 2020; his second since the coronavirus pandemic began.

He ordered a glass of pinot grigio, explaining how he hadn’t tasted that pleasure in almost a year because “the joint I live in doesn’t want drunk old men pawing girls after 5 p.m.”

Toronto — the city labeled “the lockdown capital of North America” by the national federation of small businesses — was giddy with liberty and freedoms that many had considered chores back in February 2020.

Since December, gatherings in the city — even outdoors — had been banned, filling the city with a sense of loneliness. No one felt this more acutely than residents of Toronto’s nursing homes. Ground zero for the pandemic’s cruel ravages, they account for 59 percent of the country’s Covid-19 deaths. As a result, they also became the most fortified. Locked down since last March, most facilities refused all visitors for months.

For all but five weeks between March 2020 and June 2021, care home residents in Toronto were not permitted to leave their buildings for nonmedical reasons, not even a stroll. Many compared themselves to caged animals or prisoners. The lucky ones lived in residences with attached courtyards, where they could at least feel the sun on their faces.

Mr. Freeman-Atwood was not among the lucky ones.

“I’m bored to tears,” he said in January, two weeks after he’d received his first dose of the Moderna vaccine. “I do virtually nothing. Today, nothing awful happened, noting half-awful happened, nothing brilliant happened, nothing half-brilliant happened.”

He added, “I’m in my room all day.”

The child of a British army general and a mother from Newfoundland, Mr. Freeman-Atwood had lived a large, roaming life. He traveled around the world as a child and spent most of his adulthood in Rio de Janeiro, where he eventually became president of Brascan, a large Canadian firm that owned the biggest hydroelectric utility in the Southern Hemisphere, until he negotiated its sale to the Brazilian government.

In 2012, Mr. Freeman-Atwood moved into the Nisbet Lodge, a Christian nonprofit long-term care home in Toronto’s busy Greektown neighborhood. He’d suffered five aneurysms in 10 years, and had one leg removed because of bad circulation. After gangrene eventually set into the remaining leg, the doctors amputated that one, too.

His second wife had died from cancer, and he’d stubbornly refused an offer from his only child, Samantha, to take him in.

“I’m too much of a bloody nuisance,” he explained. “I’m in a wheelchair. I can’t get up or downstairs. Why should I inflict that on her?”

Before the pandemic, Mr. Freeman-Atwood regularly met Samantha, his son-in-law and two grandsons for lunch at nearby restaurants; he visited the bank and local cheese shop; and once a week, he wheeled his way to the liquor store for some wine, which he would smuggle back to his room.

Then, in March 2020, he lost what was left of his relatively independent lifestyle. He survived an outbreak in the home, during which 35 staff members and 53 residents tested positive. Four residents died. Mr. Freeman-Atwood tested positive, but experienced no symptoms.

He could no longer see his daughter, who found the trips to the building to drop off cookies and supplies for him heartbreaking.

On regular phone calls throughout the winter and spring, Mr. Freeman-Atwood’s only complaint was boredom. Sometimes, the sound of his neighbor moaning in pain echoed hauntingly in the background.

“I know it could be a hell of a lot worse,” he said. “I’d love to go out. What if I picked it up and then came back?”

During the pandemic, Canadian geriatricians sounded an alarm about “confinement syndrome.” Residents in nursing homes were losing weight, as well as cognitive and physical abilities because of social isolation — concerning given that even in nonpandemic times most residents die within two years of arriving at a care home.

Mr. Freeman-Atwood tried to stay busy. He had three newspapers delivered on Saturdays, tabulated the tax returns for four people in the spring and completed 300 exercise repetitions each morning before getting out of bed.

A big day for him was a rare trip to the building’s dining room on the top floor, where he could speak to one young waitress in German, a language he had perfected in 1956 in Austria, when he worked doing the accounts of an aid group tending to Hungarian refugees.

He met his first wife, who was also working with refugees, in Vienna. “We were young enough to think we were doing good,” he said.

As the pandemic dragged on, Mr. Freeman-Atwood also revealed some vulnerable moments.

In late March, he was presiding over a second-floor meeting of the residents’ council, which he has led since moving in. Outside, the city was in early bloom, the forsythia bushes glowing an electric yellow of promise. In an instant, the sun spilled through the windows.

“It was drawing us out, calling, ‘Come out, come out, come out and play,’” said Mr. Freeman-Atwood. “‘You’ve had your two Moderna jabs, why can’t you come out?’ The answer is, ‘No, the rest of the world hasn’t. And when will that be, nobody knows.”

Canada’s nursing homes were the first places to receive the country’s vaccines and by February, every resident of these homes in Ontario had been offered a first dose. Still, the restrictions did not change.

Government officials were “so burned by poor performance, the last thing they wanted is to be that minister who allows more bad things to happen,” said Dr. Samir Sinha, the director of geriatrics at Sinai Health System and University Health Network in Toronto. He was among those lobbying the government this past spring to relax its restrictions.

“At this point,” he said, “the risks of loneliness and social isolation are far greater than dying from Covid in these homes.”

Though the Delta variant has reached Ontario in recent months, it has not caused the damage — or shutdowns — as seen in other parts of the world, in part because of the high rate of vaccinations. Eighty-two percent of the province’s eligible population has received at least one vaccine dose, as of Aug. 11.

When Mr. Freeman-Atwood finally emerged in June, it wasn’t to go on a grand voyage. His dream outing was much simpler. He rolled into a dollar store a block from his building to peruse the cheap watches, since his had broken. “Do you remember me?” he asked the man behind the counter. He was like a shipwreck survivor, giddy from the joys of basic social interaction.

“This is my first time outside in a year,” he exclaimed.

The restaurant patio bubbled with noises, like an awakening orchestra. The music from speakers threaded with boisterous conversation. A toddler at a neighboring table screamed; her parents explained this was her first time at a patio.

Meals were savored, checks slow to arrive. Mr. Freeman-Atwood ordered two more glasses of wine.

“This is more fun than I’ve had in a year,” he said.

On the way back to his building, he pushed past storefronts that hadn’t survived the pandemic; “For Sale” signs posted in their dusty windows. The sky was turning a bruising purple; storm clouds were gathering.

Mr. Freeman-Atwood said he didn’t know how long these freedoms would last, or whether we’d pay for them. But he was already planning another outing.

Vjosa Isai contributed research.

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Health

Ease of Covid lockdown restrictions could assist diminish drug abuse, physician says

The number of deaths from drug overdose in the United States hit a dismal record as the nation battled the Covid-19 pandemic at the same time. In 2020, a total of 93,331 Americans died from drug overdoses, an increase of nearly 30% year over year, according to preliminary data from the Centers for Disease Control and Prevention.

Dr. Nora Volkow, director of the National Institute on Drug Abuse, told CNBC’s The News with Shepard Smith that she hopes the surge in drug overdoses will not last.

“One of the reasons I’m optimistic … is that one of the factors that contributed to this surge in drug use was isolation and social distancing, and that doesn’t allow you to give Narcan, which reverses overdoses,” said Volkow. “This desperation, which I hope people felt, is slowly being alleviated.”

Volkow added that people will now be able to rebuild social support systems that existed before the Covid pandemic and that health systems can focus again on treating opioid abuse disorders.

The US also had the highest number of deaths from opioid overdoses in 2020, and more than 60% of those deaths were related to fentanyl. Moderator Shepard Smith asked Volkow why fentanyl played such a role in drug overdoses. Volkow stated that it had to do with potency and pricing.

“Fentanyl is a very potent drug, and it’s actually 50 times more potent than heroin, so you need smaller amounts to get the same effects,” said Volkow. “So it is actually a big win for the illicit drug market, and it has been used to actually contaminate other drugs. So when you mix fentanyl with drugs like methamphetamine or cocaine, you make them so much more deadly. “

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Health

England anticipated to substantiate lockdown lifting regardless of fears over delta surge

Football fans wrapped in English flags stand in front of Wembley Stadium ahead of the Euro 2020 England v Italy final.

SOPA pictures | LightRakete | Getty Images

LONDON – UK Prime Minister Boris Johnson is expected to confirm on Monday that the final easing of lockdown rules in England will take place on July 19th.

The move comes despite a sustained surge in coronavirus cases caused by the more contagious Delta variant. Over 31,000 new cases were reported in the UK on Sunday.

However, Johnson is expected to caution as the country reopens, stressing that some public actions, such as the wearing of masks, are a matter of personal responsibility and sensible choice. Johnson had previously said Covid should “become a virus we learn to live with,” like the flu.

In comments the government released Monday morning, Johnson said, “We’re temptingly close to the final milestone on our lockdown roadmap, but the plan to restore our freedoms must come with a warning.”

“While the phenomenal introduction of vaccines has offered every adult some protection from the virus and the critical link between cases, hospital admissions and deaths has been weakened, the global pandemic is not over.”

Johnson said Covid cases will increase if the country is unlocked. “As we confirm our plans today, our message will be clear. Caution is absolutely essential. “

Freedom Day – or step 4 in the government’s long-term plan to ease restrictions – has been postponed to July 19, after it was previously scheduled for June 21.

The government has said that “four tests” to relax Covid restrictions must be passed before relaxation can continue, including examining data to confirm vaccine adoption continues successfully and infection rates do not spike in hospital stays take risk.

The latest data will be presented on Monday, “with current modeling suggesting that Covid cases will continue to increase if restrictions are relaxed,” the government said in a statement on Monday.

“Hospitalizations, serious illnesses and deaths will also continue, albeit at a much lower level than before the vaccination program,” it said.

The delay in easing restrictions came when the variant of Delta Covid, originally discovered in India, spread across the country. While infection rates have increased, hospital admissions and deaths have not increased (although there was a slight increase in these latter two records), suggesting that coronavirus vaccines are preventing serious infections.

The analysis suggests that the Pfizer BioNTech vaccine is 96% effective against hospitalization after two doses and the Oxford-AstraZeneca vaccine is 92% effective.

The UK’s Covid vaccination program has been one of the fastest in the world, with 87.1% of the adult population now receiving a first dose of a vaccine and 66% two doses, government data shows.

The government said Monday that vaccination rollout will be further accelerated by moving second doses for under 40 to eight weeks.

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Health

Covid outbreak forces lockdown at U.S. Embassy in Kabul

A US Marine stands guard outside the US embassy December 21, 2001 in Kabul, Afghanistan.

Paula Bronstein | Getty Images

WASHINGTON – The U.S. embassy in Kabul was locked down Thursday as Covid cases rise in Afghanistan, pushing the country’s fragile health system to its limits.

At the embassy, ​​114 employees tested positive for the coronavirus and are currently in isolation, one person has died and several people have been medically evacuated.

“The resources of the intensive care unit of the military hospital are running at full capacity, which is forcing our health units to create temporary Covid-19 wards to care for oxygen-dependent patients. 95% of our cases are people who are not or not fully vaccinated.” The embassy wrote in a statement.

With immediate effect, the embassy said, employees would be restricted to their quarters, except to fetch food from restaurants or to exercise or relax in the open air alone.

“Individuals can walk, run, or relax outdoors without a mask provided they are ALONE, which means they are at least 6 meters away from others. Any further need requires a mask, ”the statement went on, adding that face-to-face meetings indoors are prohibited unless“ absolutely ”. business critical. “

People who do not adhere to the guidelines could be removed from the post “on the next available flight,” the embassy added.

“The restrictions will continue until the chain of transmission is broken,” the statement said.

Afghan hospitals are quickly running out of medical equipment and other resources as infection cases increased 2,400% in the past month, the International Federation of Red Cross and Red Crescent Societies said Thursday.

Last week the US embassy in Kabul shut down all consular visa services to deal with an “intense third wave of Covid-19 cases” that may hamper visa status for thousands of Afghans who have supported the US military through the conflict .

Lawmakers on Capitol Hill on Thursday raised concerns about whether the backlog of more than 10,000 Afghan translators and their families would be cleared before remaining US troops withdraw from the war-weary country.

Army General Mark Milley, chairman of the Joint Chiefs of Staff, told the Senate Armed Forces Committee during a hearing on the Pentagon’s budget proposal that “planning is underway” to protect Afghans who have served alongside US and NATO forces.

The country’s senior military officer added that the U.S. military would be able to accommodate any request as the State Department is running the thorough visa process for eligible Afghans.

On Tuesday, the Pentagon said it had passed the center of its Herculean task of withdrawing troops and equipment from Afghanistan.

The US military has removed approximately 611 loads of material that were flown out of the country by large cargo planes, according to an update from US Central Command.

The flight crew assigned to Al Udeid Air Base, Qatar, carry their equipment into a C-17 Globemaster III assigned to Joint Base Charleston, South Carolina on April 27, 2021.

Staff Sgt. Kylee Gardner | U.S. Air Force photo

Approximately 14,000 pieces of equipment that will not be handed over to the Afghan military have been turned over to the Defense Logistics Agency for destruction. The US officially handed over six facilities to the Afghan military.

In April, Biden announced a full withdrawal of US troops from Afghanistan by September 11th, which would end America’s longest war.

Biden’s withdrawal deadline breaks with a proposed deadline that the Trump administration negotiated with the Taliban last year. Accordingly, all foreign armed forces should have left Afghanistan by May 1st.

The removal of approximately 3,000 US soldiers coincides with the 20th anniversary of the September 11th terrorist attacks that spurred America’s entry into protracted wars in the Middle East and Central Asia.

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Health

Malaysia lockdown pressures authorities funds, says minister

Malaysia’s government finances are becoming “very constrained” as a surge in Covid-19 infections has once again forced the country into a lockdown, International Trade and Industry Minister Mohamed Azmin Ali told CNBC on Friday.

The Malaysian government has announced a new stimulus package worth 40 billion Malaysian ringgit (roughly $9.68 billion) to help businesses and households cope with another round of “total lockdown” that started on Tuesday.

That latest stimulus came on top of six prior packages worth a total 340 billion Malaysian ringgit (around $82.31 billion) rolled out over the past year. The government said the additional spending could push 2021’s fiscal deficit above its target of 6% of gross domestic product.

People wearing face masks walk in front of the Petronas Twin Towers in Kuala Lumpur, Malaysia, Jan. 29, 2021.

Xinhua News Agency | Getty Images

“Certainly this is (putting) a lot of pressure on our fiscal space, but again … we have no other options except to look at various options to support the industries, the SMEs and also the informal sectors so that they can continue with their economic activities,” Azmin told CNBC’s “Squawk Box Asia.”

During the June 1-14 “total lockdown,” businesses offering essential services will remain open while certain segments of the manufacturing sector can operate with reduced capacity.

Azmin and his ministry have been criticized by opposition politicians and the Malaysian public for allowing some nonessential businesses — such as a furniture firm and a brewery — to operate during the lockdown, according to media reports.  

In a Thursday statement, Azmin said his ministry is not the only one granting permissions to companies that applied to remain open during the lockdown. He added that only 128,150 businesses — involving 1.57 million workers — had obtained approvals to do so, out of 586,308 that applied for permission, according to the Malay language statement translated by CNBC.     

Malaysia’s Covid-19 outbreak has substantially worsened despite the government imposing lockdowns of varying degrees over the past year.

Last week, the Southeast Asian country reported five consecutive days of record infections and on Wednesday registered its largest daily death toll since the start of 2020. Overall, Malaysia has confirmed more than 595,000 Covid cases and 3,096 deaths, data from the health ministry showed on Thursday.

Malaysian director-general of health, Dr. Noor Hisham Abdullah, has urged people to stay at home to break the chain of transmission. A leading figure in the country’s fight against Covid, Noor Hisham warned that the health system could be paralyzed if cases continue to surge.

Azmin said the government is accelerating its national vaccination drive. He explained that the strategy is to administer more than 200,000 doses a day by the end of this month, and double that amount next month.

“We expect to reach the 80% vaccination target as early as August 2021,” said the minister.

But Malaysia’s vaccination progress has been slow. Only 6.2% of the country’s roughly 32 million population have received at least one dose of the Covid vaccine, according to data compiled by statistics site Our World in Data.

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Health

Shares commerce decrease as nation for ‘whole’ lockdown

A man wearing a facemask as a protection against Covid-19 walks past two Malaysian flags in capital city Kuala Lumpur.

Faris Hadziq | SOPA Images | LightRocket via Getty Images

Stocks in Malaysia fell in early Monday trade as the government announced a nationwide “total lockdown” to curb the rapidly rising daily Covid-19 infections in the country.

The benchmark FTSE Bursa Malaysia KLCI Index fell around 1.5% at the open before settling around 1.1% — underperforming most Asia-Pacific markets.

Malaysia has been struggling to control a surge in Covid infections. Last week, the country reported five-consecutive days of record increases in coronavirus cases, taking cumulative infections to more than 565,500 cases with 2,729 deaths as of Sunday, health ministry data showed.

Prime Minister Muhyiddin Yassin announced Friday after market close that the country will enter a two-week lockdown starting Tuesday.

During the period, individuals are generally only allowed to leave their homes to buy essential items or seek medical services. For companies, those offering essential services will remain open while certain segments of the manufacturing sectors can operate with a reduced capacity.

Brian Tan, an economist at Barclays Bank in Singapore, estimated that the measures will cost the Malaysian economy between 0.5 to 1 percentage point every two weeks.

Tan wrote in a Monday note that he has lowered Malaysia’s 2021 growth forecast from 6.5% to 5.5% — below the central bank’s projection range of 6% to 7.5%.

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Health

UK lifts lockdown however India Covid variant threatens June 21 easing

Busy bars and restaurants on Old Compton Street, Soho, in London in April 2021.

SOPA pictures | LightRocket | Getty Images

The UK continued easing restrictions on its economy and social contact on Monday, but the spread of the variant of Covid, which first appeared in India, threatens a total lifting of the measures.

From Monday, pubs, bars and restaurants will be able to serve customers inside. Museums, cinemas and theaters can be reopened; and exercise classes and indoor sports can be resumed. In addition, up to six people or two households can socialize indoors, and gatherings of up to 30 people are allowed outdoors.

International travel can also be resumed on Monday if people are allowed to participate in foreign holidays. Countries have been put on a “green”, “amber” or “red” list – with different quarantine rules for returning to the UK – determined by their infection rate.

While the reopening is a sigh of relief for the hospitality, leisure and travel industries, the lifting of restrictions will be tempered by a surge in Covid cases attributed to a variant of the coronavirus that first emerged in India.

British Prime Minister Boris Johnson called for a cautious approach to the reopening, warning that the proliferation of the new variant could threaten further easing on June 21 in hopes that all restrictions on social contact would be lifted.

On Friday, Johnson said there is currently no evidence that the variant is dodging Covid vaccines used across the country, but that the new variant “could seriously disrupt our progress … and I must stress that we will do this. ” whatever it takes to protect the public. “

He said the variant was more transmissible than other strains but cautioned it wasn’t clear by how much. UK Chief Medical Officer Chris Whitty speaks next to Johnson, added that there was “confidence” that the strain was “more transferable” than other variants already circulating in the country.

In cases rise

The new variant is also believed to be more transferable than a variant that first launched in the UK last fall. This became the dominant strain in the country, along with the US and parts of Europe.

On Sunday, the UK reported just over 1,900 new cases, bringing the total number of infections registered in the UK to 4,450,777. As of Sunday, 15,918 cases had been reported in the past seven days, an 8.6% increase over the May 3-9 period, according to government figures.

This surge in cases has led the government to change its vaccination strategy. Those over 50 and those at risk will receive their second dose eight weeks after the first dose rather than 12 weeks according to the previous vaccination strategy.

It was announced on Friday that the UK would be running vaccinations and testing in areas where the new variant of Covid, first discovered in India, is spreading.

To date, nearly 70% of the UK adult population have received a first dose of a coronavirus vaccine, while just over 38% have received two doses. This UK reached the milestone on Sunday of giving 20 million people a second dose of a Covid shot.

UK Health Secretary Matt Hancock said the government would make a decision on June 14 whether to finally lift the restrictions a week later. Speaking to Sky News on Sunday, Hancock said variants are one of the “greatest risks to this opening”.

“Because of the speed of transmission, it can really spread like wildfire among the unvaccinated groups. So it is important to vaccinate as many people as possible, especially those most susceptible to hospitalization.”

– CNBC’s Matt Clinch contributed to this story.

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Health

Turkey goes into first full lockdown as third-wave Covid instances surge

People are shopping in the Egyptian bazaar and around Eminonu before a full lockdown from Thursday evening through May 17 to contain the spread of the coronavirus in Istanbul, Turkey on April 29, 2021.

Ezra Bilgin | Anadolu Agency via Getty Images

Turkey will be completely in lockdown for three weeks starting Thursday as a third wave of coronavirus cases hit the country’s health system.

The 82-million country had by then managed to avoid a full lockdown and impose a series of partial restrictions that brought the average daily caseload to 6,000 by February. However, a loosening of these restrictions in March sparked a new wave of infections that gave Turkey the highest daily case rate in Europe, reaching more than 60,000 registered cases per day by the end of April.

The government is asking all businesses to shut down, unless the Home Office grants an exception, to ban intercity travel without a permit, and to relocate all schooling online. Supermarkets can remain open except on Sundays.

Turkey has reported more than 4.7 million cases of the virus and over 39,000 deaths since the pandemic began. That’s a relatively low 0.8% death rate, which official figures say is due to the country’s strong health system.

However, as the new surge continues to spread, residents fear the economic impact of the lockdown on a population already affected by high inflation, rising unemployment and a dramatically weakened currency.

The lockdown will “destroy the people who want to make money for their loved ones as the economy was badly hit even before the corona,” Eyal, an Istanbul tourist who works in the tourism industry, told CNBC.

“As a person in the tourism sector, we also have problems with the government’s poorly managed corona situation as after (the announcement of the lockdown) the few reservations we had were canceled,” Eyal said, withholding his last name for fear of government reprisals .

The Turkish Ministry of Health did not immediately respond to a CNBC request for comment.

According to the Organization for Economic Cooperation and Development, tourism accounts for 7.7% of Turkish employment. Record sales were achieved in tourism in 2019 before falling a whopping 72% in the first eleven months of 2020, Reuters reported in November.

President Recep Tayyip Erdogan said Tuesday that without stricter restrictions and slowed down infection rates, a “high price” would be paid for tourism, education and trade. He wants to reduce the daily infections to 5,000. According to the Johns Hopkins University, the daily recorded cases as of Wednesday were 40,444.

“More and more unemployed”

The bus stops in Istanbul were full of travelers trying to get out of the city before the lockdown. Many Turks fear that this could only make the situation worse.

“This curfew might be the only solution to lessen the new cases, but almost all of the people who have the money didn’t want to stay in Istanbul,” he said, describing an exodus to other parts of the country that he fears Increase the new falls instead of decreasing them. “

Erdogan has also come under fire for hosting overcrowded events, like a massive gathering for his political party’s congress in late March, which packed thousands of people into a 10,400-capacity sports complex to obey the socially distant rules to withdraw from Turkey.

“I’m just as scared as I was watching the big indoor government gatherings for no reason,” Eyal said. “There’s a little bit of government support, almost nothing, and there are more and more unemployed and I’m worried about them.”

The Turkish Presidency Office did not immediately respond to CNBC’s request for comment.

“Bad Execution” and Prohibition of Alcohol

“It’s not the lockdown itself that is frustrating, but the poor execution,” a European expat living in Istanbul told CNBC anonymously over concerns about government reprisals.

“Whenever the number of cases seems to be going down, the restrictions are being lifted prematurely, which happened not so long ago. The number of cases ended up being below 5,000 and all bars and restaurants were up and running, which is the biggest increase we’ve had . ” ,” he said.

Another government policy has rubbed off many Turks and residents: a ban on alcohol sales from April 29th to May 17th.

ISTANBUL, TURKEY – APRIL 29: People are waiting in a queue in the Cevizlibag district to board metro buses and trams to return their homes before the full lockdown Thursday evening through May 17 to stop the spread of coronavirus in Istanbul, Turkey on May 29 Curb April, 2021 (Photo by Isa Terli / Anadolu Agency via Getty Images)

Anadolu Agency | Anadolu Agency | Getty Images

“Probably the furthest thing is the ban on alcohol,” said the expat resident, adding, “This has caused outrage among secular Turks, saying that the government has no right to deal with any person and what they drink at home , too busy. “”

Earlier this week, #alkolumedokunma – meaning “don’t touch my alcohol” – was the most popular hashtag on Turkish Twitter as secular politicians criticized the government’s move to impose religious values ​​on the country’s people.

Light at the end of the tunnel?

The lockdown “comes at a bad time for Turkey,” said Agathe Demarais, global forecasting director at the Economist Intelligence Unit. Inflation in Turkey is 15%, youth unemployment is 25% and the Turkish lira has hit record lows against the dollar in recent months.

“The new measures will further reduce confidence and increase uncertainty, which will weigh on economic growth this year,” said Demarais.

Still, she noted, “There is light at the end of the tunnel on the coronavirus front: Turkey’s vaccination program is proceeding rapidly and the government should be able to lift restrictions later this year, possibly before the crucial summer season for tourism. “

The EIU estimates that Turkey vaccinated the majority of its adult population in the first half of 2022, which would place it in the same category as Canada, Australia or South Korea.