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Klarna losses triple after aggressive U.S. growth and mass layoffs

The logo of Swedish payment provider Klarna.

Thomas Trutschel | photo library | Getty Images

Klarna on Wednesday reported a dramatic jump in losses in the first half, adding to a deluge of negative news for the “buy now, pay later” pioneer.

The Swedish payments firm generated revenues of 9.1 billion Swedish krona ($950 million) in the period spanning January to the end of June 2022. That was up 24% from a year ago.

But the company also racked up hefty losses. Klarna’s pre-tax loss soared more than threefold year-on-year to nearly 6.2 billion krona. In the first half of 2021, Klarna lost around 1.8 billion Swedish krona.

The company, which allows users to spread the cost of purchases over interest-free installations, saw a jump in operating expenses and defaults. Operating expenses before credit losses came in at 10.8 billion Swedish krona, up from 6.3 billion krona year-over-year, driven by administrative costs related to its rapid international expansion in countries like the US credit losses, meanwhile, rose more than 50% to 2.9 billion swedish krona.

Klarna had previously been profitable for most of its existence — that is up until 2019, when the firm dipped into the red for the first time after a hike in investments aimed at growing the business globally.

The company’s ballooning losses highlight the price of its rapid expansion after the onset of the Covid-19 pandemic. Klarna has entered 11 new markets since the start of 2020, and took a number of costly gambits to extend its foothold in the US and Britain.

In the US, Klarna has spent heavily on marketing and user acquisition in an effort to chip away at Affirm, its main rival stateside. In the UK, meanwhile, the firm acquired PriceRunner, a price comparison site, in April. It has also engaged in a charm offensive with British politicians and regulators ahead of incoming regulations.

More recently, Klarna has been forced to cut back. In May, the company slashed about 10% of its global workforce in a swift round of job cuts. The company subsequently raised funds at a $6.7 billion valuation — an 85% drop from its previous valuation — in an $800 million investment deal that defined the capitulation from high-growth tech firms as investors grew wary of a possible recession.

The sharp discount reflects grim sentiment among investors in fintech in both the public and private markets, with publicly-listed fintech Affirm having lost about three quarters of its market value since the start of 2022.

“We’ve had to make some tough decisions, ensuring we have the right people, in the right place, focused on business priorities that will accelerate us back to profitability while supporting consumers and retailers through a more difficult economic period,” said Sebastian Siemiatkowski , CEO and co-founder of Klarna.

“We needed to take immediate and pre-emptive action, which I think was misunderstood at the time, but now sadly we have seen many other companies follow suit.”

Klarna said it plans to tighten its approach to lending, particularly with new customers, to factor in the worsening cost-of-living situation. However, Siemiatkowski said, “You won’t see the impact of this on our financials in this report yet.”

“We have a very agile balance sheet, especially in comparison to traditional banks due to the short-term nature of our products, but even for Klarna it takes a little while for the impact of decisions to flow through.”

Fintech companies are cutting expenses and delaying listing plans amid a worsening macroeconomic backdrop. Meanwhile, consumer-oriented services are losing their appeal among investors while so-called “business-to-business” fintechs attract the limelight.

Klarna says it is now used by over 150 million people, while the company counts 450,000 merchants on its network. Klarna mainly generates income from retailers, not users, taking a small slice of each transaction processed through its platform.

“Ultimately they’ve proven there can be a profitable business there but have doubled down on growing in the US market which is expensive,” Simon Taylor, head of strategy at fintech startup Sardine.ai, told CNBC.

“Market share there will be meaningful for long-term revenue. But it takes time and the funding taps aren’t what they used to be.”

But the company faces stiff competition, with titans in the realms of both tech and finance seeking to capitalize on growth in the buy now, pay later industry. Apple is set to launch its own BNPL product, Apple Pay Later, this case, which will allow users to split the cost of their purchases over four equal monthly payments.

Meanwhile, proposals are afoot to bring the BNPL market under regulatory supervision. In the UK, the government has announced plans to enforce tighter affordability checks and a crackdown on misleading advertisements. Stateside, the Consumer Financial Protection Bureau opened a market-monitoring probe into BNPL companies.

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Health

China orders Wuhan mass testing, Beijing restrictions as Covid delta spreads

Residents of Wuhan city in China’s Hubei province queue to take nucleic acid tests for Covid-19 on August 3, 2021.

STR | AFP | Getty Images

China is facing pockets of resurgence in major cities from Beijing to Wuhan, and authorities have imposed mass testing and widespread travel restrictions in some areas.

Daily Covid-19 cases are rising again as the delta variant spreads across the country.

China’s National Health Commission said it confirmed 96 Covid cases on Wednesday — the third straight day it reported 90 cases and above. Of the newly confirmed cases, 71 were locally transmitted, said the health commission.

Economists are concerned that a strict government clampdown on movements could hurt the economy — the only major economy to grow last year.

“China has shown before that it is willing to take tough action to control Covid, and we don’t doubt that it will do so again this time,” Robert Carnell, regional head of Asia-Pacific research at Dutch bank ING, said in a note on Wednesday.

“Tough restrictions on movement and travel already in place will likely bring the desired results. But the delta variant is a particularly slippery little critter, and the concern for us, and we imagine, many others, is how quickly this will occur, and at what economic cost in the meantime,” he added.

Read more about China from CNBC Pro

When Covid-19 first emerged in the country in late 2019, authorities used strict lockdowns and mass testing to control the nationwide outbreak.

Since then, Chinese authorities have clamped down hard on any flare-ups in Covid infections. The latest spread of the more transmissible Covid delta variant has again led authorities to tighten containment measures across the country.

State media Xinhua News Agency reported that authorities have urged people to limit travel and avoid gatherings, as well as suspended some flights, trains and long-distance bus services.

The capital of Beijing imposed strict entry and exit controls on Sunday and is said to be at a “critical stage” of epidemic control after cases rose late July for the first time in months, Xinhua reported.

Wuhan city, where the coronavirus first emerged, will test all its residents for Covid new cases emerged, the news agency said.

As of July 20, more than 17 million doses of Covid vaccines have been administered in Wuhan, and the vaccination rate of those 18 years and above hit 77.63%, according to the Wuhan municipal health commission.

‘Slow patch’ in China’s economy

China’s economic recovery has been uneven, with exports-oriented sectors driving most of the growth while domestic consumption has been slower to return.  

The resurgence in Covid-19 infections and the latest containment measures would delay a recovery in Chinese household spending, said Sian Fenner, lead Asia economist at consultancy Oxford Economics.

“The geographical spread of the delta variant is going to be concerning the Chinese authorities. We’ve already seen that they have a very low tolerance towards, you know, even a relatively small flare up,” she told CNBC’s “Squawk Box Asia” on Wednesday.

“We had hoped that with the increase in vaccination rates, that would actually improve that service consumption, but it looks like we’re in for another sort of slow patch going forward and … the delayed recovery in household spending,” she added.

Fenner said she’s maintaining her full-year growth forecast of 8.4% for China for now. That’s slightly higher than the International Monetary Fund’s projected growth of 8.1% in China.

— CNBC’s Weizhen Tan contributed to this report.

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Health

Mississippi well being officers plead with aged to keep away from mass indoor gatherings as delta Covid variant rips by state

Medical workers with Delta Health Center wait to vaccinate people at a pop-up Covid-19 vaccination clinic in this rural Delta community on April 27, 2021 in Hollandale, Mississippi.

Spencer Platt | Getty Images

Mississippi state health officials issued new guidance on Friday that calls for state residents over the age of 65 and immunocompromised residents, vaccinated or unvaccinated, to avoid any indoor mass gatherings for the next two weeks amid “significant transmission” of the delta variant over the coming weeks.

The new guidance is in place until July 26 and is not mandatory. The guidance should instead be considered a recommendation.

“We’re not recommending any mandates. What we’re doing is we’re providing personal recommendations for individuals who are at high risk for severe outcomes,” Mississippi State Health Officer Dr. Thomas Dobbs said during a press briefing Friday. “We don’t want anybody to die needlessly.”

Dobbs said he currently “does not anticipate” the guidance being expanded to other age groups in the future.

Officials said they are starting to see significant transmission of the delta variant that is very reminiscent of what was seen in the early days of the pandemic. Mississippi state health epidemiologist Dr. Paul Byers specifically highlighted church groups, school and summer programs, funeral gatherings and workplaces as well as long-term care facilities as areas where officials are already seeing spikes in infections.

“We have directly identified that they are the result of the delta variant, and the transmission … has been pretty significant,” Byers said at the press briefing Friday.

The state is second to last to Alabama out of all states when it comes to the percentage of the population that is fully vaccinated with two doses. About 25% of Mississippians over age 65 are still unvaccinated, and make up the majority of Covid deaths in the state. State health officials also said they are seeing deaths in vaccinated residents as well, “because we are exposing them over and over again,” Dobbs said, though it is a miniscule percentage.

Zoom In IconArrows pointing outwards

Graph shows cases, hospitalizations and deaths among vaccinated vs unvaccinated in Mississippi from June 3 to July 1, 2021.

Mississippi State Health Department

Mississippi is ranked last in the country in its share of adults with at least one Covid shot and the state is also ranked last in the country in the percentage of residents age 12 and older with at least one shot.

“I don’t think that we’re going to have some miraculous increase in our vaccination rate over the next few weeks, so people are going to die needlessly,” Dobbs warned.

State health officials asked vaccinated residents to speak with others about their experience with the vaccine in an effort to raise awareness about the safety and efficacy of the shots.

“Let people, let your family know, let your neighbors know, let your friends know,” Dobbs said. “There’s no more powerful message than trust and faith for people to know how widely utilized the vaccine has been, and understand that people are safe and excited to be protected.”

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Health

With Mass Vaccination Websites Winding Down, It’s All Concerning the ‘Floor Sport’

NEWARK — There were only six tiny vials of coronavirus vaccine in the refrigerator, one Air Force nurse on duty and a trickle of patients on Saturday morning at a federally run mass vaccination site here. A day before its doors shut for good, this once-frenetic operation was oddly quiet.

The post-vaccination waiting room, with 165 socially distanced chairs, was mostly empty. The nurse, Maj. Margaret Dodd, who ordinarily cares for premature babies at Brooke Army Medical Center at Fort Sam Houston in San Antonio, had already booked her flight home. So had the pharmacist, Heather Struempf, who was headed back to nursing school in Wyoming.

Across the country, one by one, mass vaccination sites are shutting down. The White House acknowledged for the first time on Tuesday that it would not reach President Biden’s goal of getting 70 percent of American adults at least partly vaccinated by July 4. The setback stems from hesitancy in certain groups, slow acceptance by young adults and a swirl of other complex factors.

The Newark site, which closed on Sunday, was the last of 39 federally operated mass vaccination centers that administered millions of shots over five months in 27 states — a major turning point in the effort Mr. Biden described last week as “one of the biggest and most complicated logistical challenges in American history.” Many state-run sites are also closed or soon will be.

The nation’s shift away from high-volume vaccination centers is an acknowledgment of the harder road ahead, as health officials pivot to the “ground game”: a highly targeted push, akin to a get-out-the-vote effort, to persuade the reluctant to get their shots.

Mr. Biden will travel to Raleigh, N.C., on Thursday to spotlight this time-consuming work. It will not be easy — as Dr. Anthony S. Fauci, the president’s coronavirus response coordinator, discovered last weekend, when he went door-knocking in Anacostia, a majority-Black neighborhood in Washington, with Mayor Muriel E. Bowser.

In an interview on Tuesday, Dr. Fauci said he and the mayor spent 90 minutes talking to people on their front porches. But even with a celebrity doctor at the door and the prospect of giveaways at the vaccination center in a high school a few blocks away, many remained hesitant. Dr. Fauci said he persuaded six to 10 people to get their shots, though he did encounter some flat refusals.

“We would say, ‘OK, come on, listen: Get out, walk down the street, a couple of blocks away. We have incentives, a $51 gift certificate, you can put yourself in a raffle, you could win a year’s supplies of groceries, you could win a Jeep,’” Dr. Fauci said. “And several of them said, ‘OK, I’m on my way and I’ll go.’”

But in Newark, where more than three-quarters of the population is Black or Latino, the numbers tell the story. In Essex County, N.J., which includes Newark, 70.2 percent of adults have been vaccinated. But Essex also includes wealthy suburbs; in Newark, the figure is 56 percent, Judith M. Persichilli, the state’s health commissioner, said in an interview.

The Newark vaccination site, in a converted athletic facility at the New Jersey Institute of Technology that is ordinarily home to the school’s tennis teams, was set up and run by the Federal Emergency Management Agency in conjunction with the Defense Department and other federal agencies. It opened on March 31; when it was operating at full tilt, its medical staff administered as many as 6,700 shots a day.

By Saturday, the daily tally was down to about 300. The long, corridorlike tents that had once shielded lines of patients from cold weather were empty. Of 18 registration desks, only four were in use, and most of the vaccination cubicles were unoccupied.

Most of the patients, including some teenagers brought by their parents, were there for their second dose of the Pfizer-BioNTech vaccine. Many — like Abdullah Heath, 19, who took a year off after high school and will attend Rutgers University in the fall — said they were hesitant. But Rutgers requires vaccination, so Mr. Heath had little choice.

Updated 

June 23, 2021, 12:01 a.m. ET

“I wanted to wait to see how other people were when they took the shot,” he said.

Alfredo Sahar, 36, a real estate agent originally from Argentina, said he had received his first dose on the spur of the moment, without an appointment, when he tagged along with his wife to the Newark site. The couple showed up for their second doses on Saturday with a young friend, Federico Cuadrado, 19, who was visiting from Argentina and received his first shot.

“Relax this arm,” Major Dodd said as Mr. Cuadrado rolled up his sleeve. But she will not be administering his second shot; with the site now closed, he will have to go elsewhere.

At the height of its vaccination drive, New Jersey had seven mass sites: six run by the state, plus the FEMA site in Newark. Two of the state sites have closed, another will shut down this week, and the last three are expected to do so in mid-July, said Ms. Persichilli, a nurse and former hospital official. She called the FEMA site, which vaccinated 221,130 people in all, “invaluable.”

Mr. Biden has said repeatedly that equity — making sure people of all races and incomes have the same access to care and vaccines — is crucial to his coronavirus response. FEMA determined the locations for its mass vaccination sites using the Centers for Disease Control and Prevention’s “social vulnerability index” to identify communities most in need, Deanne Criswell, the FEMA administrator, said in an interview.

It was a learning experience for the agency, she said, adding that 58 percent of the roughly six million shots administered at the mass vaccination sites were given to people of color.

“We didn’t have a playbook for this type of an operation,” Ms. Criswell said. (The agency now has one that is 44 pages long.)

In New Jersey, traffic at the mass vaccination sites started tapering off about six weeks ago, Ms. Persichilli said. At about that time, the state moved to a “hub and spoke” strategy, creating pop-up sites in churches, barbershops and storefronts surrounding existing vaccination centers that could store and supply the vaccines.

The state also has 2,000 canvassers — 1,200 paid, partly with federal taxpayer dollars, and 800 volunteers — who have knocked on 134,000 doors in areas with low vaccination rates to direct people to nearby clinics. And the Health Department is planning vaccine clinics at a rock music festival, a balloon festival and a rodeo in Atlantic City.

Overall, New Jersey is way ahead of most states: 78 percent of adults have had at least one dose of a vaccine. In four states — Mississippi, Alabama, Louisiana and Wyoming — the figure is lower than 50 percent.

“We’re running a marathon, and we’re in the last couple of miles, and we’re exhausted, and they’re going to be the most difficult ones,” Ms. Persichilli said. “But they are also going to be the most satisfying ones.”

Public health officials know that the last mile of any vaccination campaign is indeed the hardest. The eradication of smallpox, considered the greatest public health triumph of the 20th century, came after a highly targeted global campaign that lasted two decades. Polio has still not been eradicated in some countries, Dr. Fauci said, because of vaccine hesitancy, including among women who express unfounded fears of infertility.

“We should have eradicated polio a long time ago,” he said.

The federal effort has been enormous, involving more than 9,000 people from across the government, as well as 30,000 National Guard members supporting Covid-19 vaccination in 58 states and territories, according to Sonya Bernstein, a senior policy adviser for the White House.

With the large vaccination sites winding down, FEMA is also pivoting. The agency still supports more than 2,200 community vaccination centers and mobile vaccination units. Now FEMA is rolling out a new pilot program to offer shots at or near recovery centers that it sets up after hurricanes and other natural disasters. The first of these opened this week in St. Charles Parish, La., which has a large minority population and was devastated by Hurricane Laura last summer. Only 51 percent of the adult population in St. Charles Parish has had at least one shot, according to data from the C.D.C.

In Newark, the mood on Saturday was bittersweet. People like Major Dodd and Ms. Struempf, thrown together in a crisis, were exchanging phone numbers with newfound friends and colleagues as they planned to go their separate ways. After living in hotels for more than two months, they were both eager to depart and wistful about the prospect.

Michael Moriarty, the FEMA official in charge of vaccination operations in the New York-New Jersey region, surveyed the scene: the vacant cubicles and chairs, the boxes of unused latex gloves, the brown paper taped to the floor to cover the tennis courts. It would not take long to undo, he said, adding, “They’ll be playing tennis here at the end of the week.”

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World News

China’s Guangzhou fights Delta Covid variant with lockdowns, mass testing

People wait in lines for nucleic acid tests in Guangzhou, China on May 26, 2021.

Visual China Group | Getty Images

GUANGZHOU, China – Authorities in southern China’s Guangdong Province are conducting mass tests and have closed areas to control a flare-up of coronavirus cases in Guangzhou.

The city has cited the delta variant of the coronavirus, which was first discovered in India, as the driver behind the surge in cases reported since late May. The Delta Tribe is known to be highly transmissible.

Guangzhou, a city of over 15 million people and the provincial capital, reported 96 of the over 100 cases in Guangdong Province in this latest outbreak.

China, where the coronavirus first emerged last year, has quickly got the epidemic under control and has had very few cases in the past 12 months. However, clusters have emerged in parts of the country, including major cities such as the capital Beijing and the financial center of Shanghai.

The cases in Guangzhou may be even more worrying as it is the delta strain of the coronavirus, which can spread very quickly.

Lock

A 75-year-old woman in Liwan, a district of Guangzhou to the west of the city, was the first confirmed case of the Delta variant on May 21. She went to a restaurant and eventually infected her husband. The most recent infections started from there and have since spread to other areas of the city.

Liwan, still the hardest hit district, has strictly closed certain streets. Some areas do not allow people into a certain zone and residents are not allowed to leave their building. Checkpoints have been set up 24 hours a day to monitor movement in and out of these areas.

Restaurants and entertainment venues have also been closed.

But the virus has also spread to other parts of the city and province. Foshan, a city southwest of Guangzhou, has reported cases. On June 6th, six members of the same family in Guangzhou’s Nansha District tested positive for the coronavirus. On Sunday, a positive case was found at the Chinese technology center in Shenzhen, home to companies like Huawei and Tencent.

In other areas of Guangzhou that are less affected by the recent accumulation of cases, some restaurants and bars have started offering take-away meals.

Mass tests, travel restrictions

After the first case was found, Guangzhou first conducted mass tests in Liwan, which have since been expanded to other areas.

In the central business district known as Zhujiang New Town, residents were asked between Friday and Sunday to take a test at a location near their homes.

One such test site, which was set up on a street full of bars and restaurants, had huge lines on Friday.

Guangzhou performed over 16 million tests at midnight between May 26 and June 5.

In Guangzhou, the authorities have imposed stricter travel restrictions. Some metro stations in the city are closed. The authorities have asked people not to leave the city. However, if residents must leave the province, they should have a negative nucleic acid test within 48 hours of their departure. Previously, travelers had a 72-hour window.

Hundreds of domestic flights from Guangzhou’s Baiyun International Airport have also been canceled.

Driverless cars that carry supplies

Guangzhou has become a hub for driverless automakers to test their vehicles on public roads. And since Liwan is blocked, these companies transport goods to Liwan with their autonomous vehicles.

Guangzhou-based WeRide has used its autonomous bus to transport groceries to Liwan. Pony.ai, another autonomous driving company, has sent its vehicles to Liwan with supplies.

Chinese internet giant Baidu also used its autonomous vehicles to bring food and medical personnel to the affected areas.

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Politics

Biden Declares Mass Killings of Armenians a Genocide

WASHINGTON – President Biden on Saturday recognized the mass murders of Armenians more than a century ago as genocide, signaling a willingness to test an increasingly frayed relationship with Turkey, which has long been a key regional ally and partner within NATO.

“Every year on that day we remember the lives of all those who were killed in the Armenian genocide in the Ottoman era, and we re-commit ourselves to preventing such an atrocity from ever happening again,” said Biden in a statement marking the 106th anniversary of the start of a brutal campaign by the former Ottoman Empire that killed 1.5 million people. “And we remember that we always remain vigilant against the corrosive influence of hate in all its forms.”

Mr Biden’s statement reflected his government’s commitment to human rights, a pillar of its foreign policy. It is also a pause from Mr Biden’s predecessors, who refused to anger a country of strategic importance and are careful not to advance their leadership against American opponents such as Russia or Iran.

The Turkish government, as well as human rights activists and ethnic Armenians, reacted subdued to the news that became known days in advance, describing the move as largely symbolic. Later on Saturday, the country’s foreign minister called the US ambassador to protest the statement, state media reported.

President Recep Tayyip Erdogan, who has repeatedly denied the killings constituted genocide, had worked hard to prevent the announcement and held a conference and media campaigns ahead of the anniversary on Saturday.

In a phone call on Friday, however, Mr Biden told Mr Erdogan directly that he would declare the massacre as genocide, according to a person familiar with the discussion who spoke on condition of anonymity to reveal details of the conversation.

A summary of the White House appeal merely stated that the couple had consented to “effective management of disagreements.” The Turkish presidency stated in a statement that both heads of state and government agreed on the “importance of cooperation”. They are due to meet in June at a summit of the North Atlantic Treaty Organization.

In his statement on Saturday, Mr. Biden paid tribute to the Armenians who were forced to rebuild their lives.

“We confirm the story,” he said. “We’re not doing this to blame, but to make sure what happened is never repeated.”

Since taking office, Mr Biden has kept Mr Erdogan at a distance, called other world leaders – and kept his Turkish counterpart, who was on friendly terms with President Donald J. Trump, waiting for months.

After the news of the impending announcement became known on Wednesday, Erdogan said in a statement that Turkey would “defend the truth against the lie of the so-called” genocide of the Armenians “.”

Mr Erdogan is widely expected to use the term to increase support at home, where he is increasingly adopting a nationalist-Islamist stance in order to maintain his electoral base. But political analysts said he will likely be careful with the United States.

Relations between the countries have reached their lowest point in decades as Mr Erdogan has become increasingly combative in his dealings with Washington, especially after a failed coup in 2016. Mr Erdogan has blamed a Turkish clergyman for ousting him from power Living in self-imposed exile in rural Pennsylvania and, more broadly, the United States.

Tensions escalated with Turkey’s deal to buy a missile system from Russia in 2017, prompting the Trump administration to impose sanctions on Turkey in December. Syria was also a focal point. Mr Erdogan has bitterly criticized the U.S. military’s support for Kurdish forces in Syria, part of a group that led a decades-long uprising against Turkey, and his own operations there have further tested the Atlantic alliance.

Mr Erdogan sees Turkey, a country with 80 million inhabitants and a member of the 20-strong group, as a regional power that deserves more respect on the world stage. This view has led to greater geopolitical enforcement, as demonstrated by military interventions in Syria, Libya, Iraq and Azerbaijan, as well as exploration of energy in disputed waters in the Eastern Mediterranean over the past year.

European heads of state and government and members of the Biden government continue to campaign for Mr Erdogan’s government, as Turkey is home to millions of Syrian refugees who would otherwise be able to travel to Europe. They also point to Turkey’s support for Ukraine and Afghanistan, where it will maintain a small force to train Afghan army and police personnel while the United States and other coalition forces withdraw through September 11.

The White House’s continued silence on Mr Erdogan had been seen as a sign that Mr Biden did not see Turkey as a priority and intended to manage relations at lower levels of administration.

“You don’t want to have a conflict with him, but you don’t want to be too comfortable with him either,” said Ozgur Unluhisarcikli, the director of the Ankara office of the German Marshall Fund of the United States.

Nor would Mr Erdogan attempt to further damage relations via the genocide label, said Asli Aydintasbas, a senior official on the European Council on Foreign Relations. According to a census, at least 29 other countries have taken similar steps.

“Turkey has issued all kinds of threats in the past, but recently the policy of allied recognition of genocide has been to shake them off,” she said. “They will issue denunciations, but will not go so far as to create a crisis.”

Mr. Unluhisarcikli, like other analysts and human rights defenders, questioned the timing and purpose of the announcement.

“The Turkish government will feel obliged to respond in a way that is relevant to the US and US-Turkey relations,” he said.

The Turkish public will see it as evidence of American double standards, and anti-Western forces in Turkey will use it to stir up anger, he said.

Both opposition and pro-government leaders attacked the expected designation.

“This is an inappropriate, unfair attitude,” said Kemal Kilicdaroglu, leader of the largest opposition party, the Republican People’s Party.

Dogu Perincek, the leader of the ultra-nationalist Patriotic Party, questioned his authority to make such a statement in an open letter to Mr. Biden. “As is well known, the genocide of the Jews was decided by an authorized court,” he wrote, “but there is no court decision regarding the incidents of 1915.”

The killings of Armenians occurred at the end of World War I during the collapse of the Ottoman Empire, the predecessor of modern Turkey. Concerned that the Christian Armenian population would ally themselves with Russia, a major enemy of the Ottoman Turks, officials ordered mass deportations in what many historians consider to be the first genocide of the 20th century: nearly 1.5 million Armenians were killed, some in the case of massacres by soldiers and the police, others in forced exodus into the Syrian desert, who starved to death.

Turkey has recognized that widespread atrocities took place during this period, but its leaders have adamantly denied that the killings were genocide.

In the days leading up to Mr Biden’s announcement, Armenians and human rights activists in Turkey expressed caution, also because of years of political debate on the subject.

“Personally, it won’t upset me,” said Yetvart Danzikyan, editor-in-chief of Agos, an Armenian-Turkish weekly newspaper in Istanbul, citing a 1981 statement by President Ronald Reagan on the Holocaust that mentioned the issue of “genocide.” the Armenians “in passing.

Murat Celikkan, journalist and longtime human rights activist, said the statement was good for American-Armenian citizens, but he didn’t expect it to change attitudes in Turkey or promote reconciliation between Turks and Armenians.

“It hasn’t changed as more than 20 countries have officially recognized it, including Germany,” he said.

In the United States, some Armenian activists hailed the declaration as a step forward.

“The genocide rejection was such a painful chapter,” said Bryan Ardouny, executive director of the Armenian Assembly of America. “This is a really critical moment in the history of the defense of human rights.”

“The president is firmly against a century of denial and is embarking on a new course,” he said.

Katie Rogers reported from Washington and Carlotta Gall from Istanbul. Giulia McDonnell Nieto del Rio contributed to coverage from New York.

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Politics

Senate Panel to Debate Gun Management After Two Mass Shootings

Senators quickly split by partisan standards on Tuesday as Democrats called for action after two mass shootings last week and Republicans denounced their calls to highlight the political divide that has fueled a decade-long cycle of inaction against gun violence.

At a Senate Justice Committee hearing scheduled ahead of the Atlanta and Boulder shootings that killed at least 18 people, Democrats argued that the recent slaughter left Congress with no choice but to issue stricter guidelines. They lamented the grim pattern of fear and outrage, followed by partisanship and paralysis that had become the norm after mass shootings.

“In addition to a moment of silence, I would like to invite a moment of action,” said Senator Dick Durbin, Democrat of Illinois and chairman of the committee. “A moment of real care. A moment when we don’t allow others to do what we have to do. Prayer leaders have an important place here, but we are Senate leaders. What do we do?”

Even before the recent shootings, the Democrats had begun to push for stricter arms control measures, which face great opportunities in the 50:50 Senate. House Democrats passed two bills this month aimed at expanding and strengthening background checks on gun buyers by applying them to all gun buyers and extending the time it takes for the FBI to review those flagged by the national emergency inspection system.

But the two laws passed in the House were deemed too expansive by most Republicans – only eight Republicans in the House voted to push universal background scrutiny legislation. The bills would almost certainly not get the 60 votes required to clear a filibuster in the Senate.

Iowa Senator Chuck Grassley, the top Republican on the panel, said in his opening address he was confident that Democrats and Republicans could work together to make “bipartisan, sensible” progress on gun control. But he said that the legislation passed by the House did not fit this bill as the measures would be passed almost entirely on a party-political basis.

“That’s not a good sign that all voices and perspectives are being considered,” said Grassley.

Senator Ted Cruz, Republican of Texas, went further, slapping Senator Richard Blumenthal, Democrat of Connecticut, who said Republicans had offered “fig leaves” rather than actionable, meaningful gun control solutions.

“Every time there is shooting, we play this ridiculous theater where this committee comes together and proposes a number of laws that do nothing against these murders,” said Cruz. “But what they suggest – not only does it not reduce crime, it makes it worse.”

The renewed focus on gun control is expected to return attention to Senator Joe Manchin III, Democrat of West Virginia, who speaks out against the downsizing of the legislative filibuster but has long – unsuccessfully – endeavored to propose a bipartisan Say goodbye to gun control. Following the 2012 massacre of Sandy Hook Elementary School in Newtown, Connecticut, Mr. Manchin signed a contract with Senator Pat Toomey, Republican of Pennsylvania, to fill legal loopholes that would allow people to buy firearms at gun shows or on the Internet , allow background checks to be avoided, but proponents could not muster enough support to pass them.

Mr Manchin told CQ Roll Call earlier this month that he was speaking out against the General Background Review Bill passed by the House, citing its provision citing checks for individual sales, but said he was in favor of a legislative revival from Manchin-Toomey interested.

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World News

WHO says pandemic has prompted extra ‘mass trauma’ than WWII and can final for years

Tedros Adhanom Ghebreyesus, Director General of the World Health Organization (WHO), speaks after Dr. Anthony Fauci, Director of the National Institute for Allergies and Infectious Diseases, during the 148th session of the Executive Board on the Coronavirus Disease (COVID-19) outbreak in Geneva, Switzerland, January 21, 2021.

Christopher Black | WHO | via Reuters

The Covid-19 pandemic has caused mass trauma on a larger scale than World War II, the effects of which “will last for many years,” said the World Health Organization’s top official on Friday.

“After World War II, the world experienced mass trauma because World War II affected many, many lives. And now, even with this Covid pandemic, on a larger scale, more lives are affected,” said WHO Director General Tedros Adhanom Ghebreyesus said at a news conference on Friday. “Almost the whole world is affected, every single person on the surface of the world is actually affected.”

“And that means a mass trauma that is disproportionate and even greater than what the world experienced after World War II,” he added, noting the mental health implications. “And if there is a mass trauma, it affects the communities for many years.”

His comments came in response to whether countries should consider the economic and mental health impact of the pandemic more when planning their ways forward. Tedros MPs stressed that mental health should be a priority.

“The answer is absolutely yes,” said Maria Van Kerkhove, director of the WHO’s Emerging Diseases and Zoonosis Division. “There are differences in the impact this has had on individuals, whether you’ve lost a loved one or family member or friend to this virus. Whether you’ve lost your job, children out of school people, who are forced to stay at home in very difficult situations. “

She added that the world is still in the “acute phase” of the pandemic as the virus penetrates communities and kills tens of thousands every week. However, she added that psychological distress from the pandemic will become a major problem in the long run, saying that “governments, communities, families and individuals need to put much more emphasis on taking care of them.” our wellbeing. “

Dr. Mike Ryan, executive director of the WHO’s health emergencies program, urged people not only to highlight the pandemic’s mental health as a problem, but also to discuss solutions.

“It is one thing to say that mental health and mental health are under pressure – it is true – but also the opposite of what we do to support people and communities and provide psychosocial support,” he said .

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Israeli information counsel mass vaccinations led to drop in extreme Covid instances, CDC examine finds

An Israeli health worker from Maccabi Healthcare Services prepares to administer a dose of the Pfizer BioNtech vaccine in Tel Aviv on February 24, 2021.

Jack Guez | AFP | Getty Images

Data from Israel, which vaccinated the vast majority of its elderly population with the Pfizer Covid-19 vaccine, suggests that mass vaccination has prevented people from getting seriously ill, according to a new study by the Centers for Disease Control and Prevention.

While clinical studies have shown the Pfizer BioNTech vaccine to be 95% effective at preventing Covid-19, the Israeli data provide early insight into the vaccine’s effectiveness in an uncontrolled, real-world setting.

The study, published Friday in the CDC’s weekly report on morbidity and mortality, found that among the most vaccinated portion of the Israeli population, the percentage of patients requiring ventilation has dropped dramatically, suggesting a reduction in the serious illness.

“Taken together, these results suggest a reduced rate of severe COVID-19 after vaccination,” wrote researchers from Ben Gurion University in the Negev, Tel Aviv University and Maccabi Healthcare Services.

Israel launched its national vaccination campaign in December, prioritizing people aged 60 and over, healthcare workers and people with comorbid illnesses. By February, according to the researchers, 84% of the population aged 70 and over had been fully immunized with the Pfizer-BioNTech two-shot vaccine. Only 10% of the population under the age of 50 had been vaccinated at any one time, the researchers said.

The researchers compared the number of Covid-19 patients aged 70 and over who needed a mechanical ventilator with those under 50 who needed a ventilator. The researchers said they needed a ventilator, a medical tool that helps patients breathe, to measure severe Covid-19.

Between October and February, the number of patients aged 70 and over who needed a ventilator decreased. At the same time, the number of people under the age of 50, a generally unvaccinated population, who needed a ventilator, the study found. The country began using gunshots on mostly elderly people on December 20. A second round of shooting followed three weeks later.

The researchers noted some limitations to the study. Israel put in place a strict national stay-at-home order on Jan. 8, weeks after the vaccination campaign began, which could have resulted in a decline in seriously ill patients who would have needed ventilators. The introduction of new variants of the coronavirus could also have affected the data.

The researchers said their results are preliminary, “important evidence of the effectiveness of vaccines in preventing severe cases of COVID-19 at the national level in Israel”.

“Getting COVID-19 vaccines to eligible individuals can help limit the spread of disease and potentially reduce the incidence of serious diseases,” they write.

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Biden administration to construct two mass websites in New York, Cuomo says

A health care worker will administer the Pfizer BioNTech Covid-19 vaccine to a vaccination site in a church in the Bronx, New York on Friday, February 5, 2021.

Angus Mordant | Bloomberg | Getty Images

The Biden government will work with New York to build and occupy two mass vaccination sites for Covid-19 in the New York City area that aim to hit the minority communities hardest hit by the pandemic.

The locations, which will open the week of February 24th, will be at York College in Queens New York and Medgar Evers College in Brooklyn, Governor Andrew Cuomo said at a news conference on Wednesday. Each location can administer 3,000 shots a day, making it the largest vaccination center in the state to date.

The federal government will be tasked with supplying cans directly to the centers, and the sites will be manned by members of the New York State National Guard and Army personnel, Cuomo said. More websites are being added in New York state to help target what the governor calls “socially vulnerable” communities.

“These will be very large sites. They will be complicated surgeries, but they will meet a dramatic need to get the vaccine to the people who need it most,” Cuomo said.

A mass vaccination site for Queens residents and other key workers opened in Citi Field earlier Wednesday. The site’s debut, delayed due to lack of doses, comes just days after another mass site opened for residents at Yankee Stadium in the Bronx.

New York City Mayor Bill De Blassio speaks to media representatives as an attempt is made to obtain a Covid-19 vaccine at the Citi Field Vaccination site in Queens, New York on February 10, 2021.

I have Betancur | AFP | Getty Images

New York isn’t the only state where the federal government will open mass vaccination centers.

President Joe Biden’s Covid-19 Response Team announced shortly before Cuomo’s briefing that they would be working in a similar manner with representatives from Texas to build three new community vaccination centers in Dallas, Arlington and Houston. Jeff Zients, Bidens Covid-Tsar, said these three centers will enable healthcare providers to administer more than 10,000 shots a day.

Beginning next week, the Biden government will be sending cans direct to community health centers to expand reach to traditionally underserved communities.

These doses will be used in addition to the vials sent directly to the states and pharmacy chains that will be accepting vaccine doses from the federal government starting Thursday.

While supplies are still limited, vaccinations at community health centers will help improve access to life-saving interventions for the homeless, migrant agricultural workers, social housing residents and those with limited English proficiency, said Dr. Marcella Nunez-Smith, Chair of the White House Covid-19 Health Equity Task Force.