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Weekly Jobless Claims Report Will Give Newest Indication of Restoration: Reside Updates

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Credit…Toby Melville/Reuters

The start of 2021 has been rocky for Britain. Its exit from the European Union unleashed a colossal amount of red tape that has left some industries desperate for help, and the country is under yet another lockdown because of a fast-spreading strain of the coronavirus.

But there has been a glimmer of hope. More than four million people in Britain have been partially vaccinated against the coronavirus, a promising pace of inoculation.

Investors looking to ride a wave of optimism about a vaccine rollout have turned to Britain’s stock market, which has posted a strong start to the year, jumping more than 6 percent in the first week.

Overall, in the first two and a half weeks of January, the FTSE 100, Britain’s benchmark stock index of large companies, gained 4.3 percent — outstripping the S&P 500 index, which rose 2.6 percent, and the Stoxx Europe 600 index, which was up 3 percent. Even when the gains are converted to U.S. dollars, the FTSE 100 still has a clear lead.

Beyond the vaccine rollout helping to ensure an economic rebound, another factor is drawing investors: the relative cheapness of British stocks.

Britain’s FTSE 100 index is benefiting from an investment strategy in which traders buy so-called value stocks. These are companies that are perceived to be trading below their true value because their business has been disrupted by a recession, especially in the financial and energy sectors, and the FTSE 100 has a large share of these stocks.

Analysts at Citigroup have ordained Britain’s stock market their “favorite” value trade.

“I would emphasize the very much unloved and horrible dreadful U.K. market might be worth a look this year,” Robert Buckland, a Citigroup equity strategist, said in a presentation last week. “We all know it’s been a place to avoid for many, many years.”

The British stock market has been a laggard for years.

Once converted into dollars, the annual returns of the FTSE 100 have been the worst of the three indexes for the past nine years.

Why are investors betting on a turnaround now? For one, many of them are ready for a bargain. The equity bull market has been dominated by shares of American tech companies that are expensive, which makes some investors nervous about how much they can keep rising. Cheap stocks in industries that tend to do well during economic boom times are offering an alternative.

And then there is Britain’s free-trade deal with the European Union. Some investors have put aside whether it’s a good or bad deal in its detail, in favor of relief that an agreement was reached in late December.

The deal “reduced that overhang people had of uncertainty,” said Caroline Simmons, the U.K. chief investment officer at UBS Global Wealth Management.

Waiting for coronavirus tests in San Bernardino, Calif. A surge in the virus and the slow rollout of vaccinations have set back recovery hopes.Credit…Alex Welsh for The New York Times

The new Biden administration will get its first dose of economic reality Thursday morning when the Labor Department reports the latest weekly data on initial jobless claims.

Last week, the government reported a surge in demand for unemployment benefits, with more than one million new claims, as pandemic-related restrictions and lockdowns took a fierce toll on employment.

The virus has hardly abated since then, with the death toll topping 400,000 in the United States, and few economists expect any significant letup in layoffs. Although job losses have been concentrated in service industries like restaurants and leisure and entertainment, the broader economy has also shown signs of a slowdown recently.

“I think it’s going to be another bad number, but some of what we saw last week was catch-up after the holidays,” said Diane Swonk, chief economist at the accounting firm Grant Thornton in Chicago. “I think we will be able to see Thursday how much was catch-up and how much was deteriorating economic conditions.”

The beginning of vaccinations in December provided optimism about a quick turnaround, but the slow rollout in many parts of the country has set back those hopes. On the other hand, the passage of a $900 billion relief package late last year and the prospect of more aid under the Biden administration have allayed fears of a double-dip recession.

An additional $300 a week in supplemental unemployment benefits may encourage more people to file for benefits, said Carl Tannenbaum, chief economist at Northern Trust in Chicago. The increased assistance was part of the new stimulus effort.

Over all, the best bet for the economy is more vaccinations, Mr. Tannenbaum said.

“There is no better economic stimulus than a successful vaccine rollout,” he said. “It will reduce the risk of human interaction and provide a basis on which different types of businesses can open more durably.”

Windmills made by Vestas on the Danish coastline. Shares in renewable energy companies have risen this week as President Biden has recommitted the United States to the Paris climate agreement. Credit…Charlotte de la Fuente for The New York Times

  • Stocks on Wall Street were set to open higher on Thursday after the S&P 500 index closed at a record high after President Biden was sworn in the previous day.

  • The benchmark U.S. index was heading for a 0.2 percent increase as investors await the latest data on weekly unemployment claims. It will give the new Biden administration its first signal of how the American labor market is responding to new fiscal stimulus as the pandemic rages on. Last week, the number of claims jumped, though some of that was attributed to a catch up in the data from the holiday period.

  • European stocks were mostly higher as traders anticipated more U.S. fiscal stimulus. The Stoxx Europe 600 index rose 0.4 percent, reaching an 11-month high. Most markets in Asia closed higher.

  • Renewable energy stocks extended gains this week after Mr. Biden recommitted the United States to the Paris climate agreement. Shares in Orsted and Vestas, two Danish wind energy companies, are up nearly 6 percent and 8 percent this week. Siemens Gamesa, a Spanish subsidiary of Siemens Energy that makes wind turbines, rose more than 3 percent on Thursday. Shares in First Solar, an American company, were up 2.8 percent in premarket trading.

  • Shares in the Canadian company TC Energy fell 1.2 percent on Wednesday, after it said it would stop work on the Keystone XL oil pipeline. Later in the day, Mr. Biden rescinded the company’s construction permit.

  • Oil prices declined on Thursday. Futures of West Texas Intermediate fell 0.6 percent to just under $53 a barrel.

  • The euro rose 0.3 percent against the U.S. dollar before the European Central Bank announces its latest policy decision, though traders were not expecting a change from the current stance of negative interest rates and asset buying.

  • The pound rose 0.6 percent against the U.S. dollar and was stronger against most major peers after the Bank of England governor struck a cautious tone about the use of negative interest rates, diminishing some expectations in the market that the tool could be used soon. The central bank governor, Andrew Bailey, said that he expected the British economy to experience a “pronounced recovery” as the vaccination program is rolled out.

To help the White House with its goal of vaccinating 100 million people in its first 100 days, Amazon offered to vaccinate a large share of its workers.Credit…Johannes Eisele/Agence France-Presse — Getty Images

On President Biden’s first day in office, the head of Amazon’s consumer business, Dave Clark, sent a letter to the White House with an offer to help achieve the goal of vaccinating 100 million people in the administration’s first 100 days. By way of assistance, the retailer offered to vaccinate a large share of its workers.

The e-commerce giant has made similar offers to state governments, including Tennessee and Washington, although Amazon was not among the companies Gov. Jay Inslee of Washington announced as partners in its vaccination plan this week.

Those earlier letters to governors were signed by Brian Huseman, who runs Amazon’s U.S. lobbying team, which has been seeking permission from the Centers for Disease Control and Prevention to vaccinate “essential” workers at the company’s warehouses, data centers and Whole Foods “at the earliest appropriate time.”

The company has hired a health care provider to help administer the vaccine to employees, it said in the letters.

This suggests that public-private partnerships to distribute vaccines may come with perks for the companies taking part, the DealBook newsletter notes, potentially giving companies leverage to push employees up the line in priorities set by states. Several states are struggling to roll out vaccines as fast as they’d like because of issues with funding, staffing and logistics. In his letter to Mr. Biden, Mr. Clark said that Amazon could help with “operations, information technology and communications capabilities,” though he didn’t specify what that would entail.

Already oil companies have found roughly 10 billion barrels of probable recoverable reserves of oil and gas off the coast of neighboring Guyana.Credit…Adriana Loureiro Fernandez for The New York Times

Suriname, Guyana and Brazil are the new areas of focus for oil companies, attracting more new investment than the Gulf of Mexico and other more established oil fields. They are helping to keep global oil prices relatively low, undermining efforts by Russia and its allies in the Organization of the Petroleum Exporting Countries, like Saudi Arabia, to manage global supply and push up prices.

The recent pickup in interest in Guyana and Suriname is somewhat surprising because their promise as oil producers has often come up empty, reports The New York Times’s Clifford Krauss. Companies drilled more than 100 unsuccessful wells there, mostly in shallow waters, from 1950 to 2014. But after rich fields were found in the deep waters off Brazil, Exxon Mobil and other companies returned to take another look. Exxon struck a gusher in Guyanese waters in 2015, opening the current flurry of exploration.

In Guyana, oil companies have found more than 10 billion barrels of probable reserves of accessible oil and gas offshore, according to IHS Markit, the energy consulting firm. Production began in 2019 and is ramping up quickly. Guyana already accounts for one of the top 50 oil basins worldwide, according to consultants.

Suriname has at least three billion to four billion barrels of reserves, energy experts said, or up to half the new oil and gas discovered around the world last year.

Oil companies say they can make money in Suriname with oil prices as low as $30 to $40 a barrel because of lower costs. That is roughly equivalent to the threshold in Guyana and well below today’s oil price. It is also below break-even levels in many places, including some U.S. shale fields, where costs usually add up to nearly $50 a barrel.

The European Central Bank left its stimulus measures intact Thursday, as expected, as it waited to see whether measures announced in December would be enough to limit economic damage from the pandemic.

Following a meeting of its governing council, the bank reiterated its intent to pump as much as 1.9 trillion newly created euros, or $2.3 trillion, into bond markets as part of a “pandemic emergency” program intended to keep market interest rates low.

The bond purchases will continue at least until March 2022 and longer if necessary, the bank said.

As expected, the central bank also said that it would maintain a program that effectively pays banks to lend money to businesses and consumers.

The European economy continues to suffer from the burden of extended lockdowns, but analysts had not expected the central bank to take further action Thursday after expanding programs intended to encourage banks to lend and hold down market interest rates.

Ramp service employees unload cargo from a United Airlines plane O’Hare International Airport in Chicago in December.Credit…Sebastian Hidalgo for The New York Times

United Airlines lost $1.9 billion in the fourth quarter, bringing its total losses for 2020 to just over $7 billion, its worst year since merging with Continental Airlines a decade ago. Despite that terrible loss, the airline said it expects 2021 to be a “transition year” as it prepares for a recovery from the coronavirus pandemic.

“The truth is that Covid-19 has changed United Airlines forever,” the company’s chief executive, Scott Kirby, said in a statement. “The passion, teamwork and perseverance that the United team showed in 2020 is exactly what will help us build a new United Airlines that’s better, stronger and more profitable than ever.”

The airline reported about $3.4 billion in operating revenue in the final three months of last year, down more than two-thirds from the same period in 2019. It ended the year with access to nearly $20 billion in cash or cash-equivalent funds, not including federal stimulus loans.

Delta Air Lines last week reported a $12.4 billion loss in 2020, capping what its chief executive called the “toughest year in Delta’s history.”

In anticipation of a recovery, United has resumed major maintenance and engine overhauls so that planes sidelined by weak demand will be ready as more people start flying again, it said.

But that recovery is unlikely to arrive for quite some time. United said it expects to bring in about a third as much operating revenue in the first quarter of this year as it did during the same three months in 2019. Most analysts believe the airline industry will not fully recover from the pandemic for several years.

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Business

Jack Ma Seems in Public After Difficult Beijing: Dwell Enterprise Updates

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Jack Ma has shot action scenes with great martial artists, sang duets with pop stars and has appeared at corporate rallies as a glam rocker and as a masked Michael Jackson impersonator. He’s not a wallflower.

The speculation was rife after the prominent entrepreneur and co-founder of the Alibaba Group disappeared from the public eye late last year. He had criticized the Chinese regulators for their overly cautious stance on the country’s financial system, and the authorities took action against his business empire shortly thereafter. He then began to skip previously planned appearances, raising questions about his fate in China and the global news media.

Mr Ma now appears to be trying to calm the speculation.

On Wednesday he appeared in public for the first time since the end of October. He spoke at a livestream event honoring educators in China’s village schools. He didn’t address his problems, but said he would spend more time in philanthropic endeavors.

“During that time, my colleagues and I learned and thought,” he said, according to a transcript of his comments on the local news media. “We will throw ourselves more resolutely into the philanthropy of education.”

Mr. Ma, a former English teacher, said it was the responsibility of business people of his generation to work towards shared prosperity by revitalizing rural areas and developing village education. His speech was in line with his recent efforts to move away from Alibaba’s day-to-day activities and focus more on philanthropy, although he continues to have significant influence on his business empire.

His remarks were covered extensively in the state-run Chinese news media, which at least indicated that Beijing’s censorship machine approved of his remarks. His appearance made it easier for some investors, who gained around 9 percent in Alibaba’s Hong Kong-traded stocks in afternoon trading.

Mr. Ma, who led Alibaba from its founding in 1999 to its rise as one of the largest and most valuable technology companies in the world, has long been cautious of the Chinese government. Like many entrepreneurs in the country, he has forged ties with the Beijing Office to avoid regulatory issues.

However, the rise of Alibaba’s sister company Ant Group brought it increasingly into conflict with China’s state-dominated financial system. The Ant Group, which was once a subsidiary of Alibaba and provides services such as electronic payments and credit, now plays a huge role in the financial lives of many Chinese people. It had planned an IPO in Shanghai and Hong Kong late last year, which was widely expected to be the largest fundraiser of its kind.

In October, at a public event, Mr. Ma accused Chinese state-run banks of acting like “pawn shops” and the country’s financial regulators to limit innovation through risk obsession.

About a week later, the government stopped the Ant Group’s IPO and later ordered it to change its business practices. Then an antitrust investigation began against Alibaba.

In the midst of the official setback, Mr. Ma began to withdraw from previously planned appearances, including serving as a judge on a talent show he launched on the theme of African entrepreneurs. This sparked speculation, especially after severe penalties were imposed on other entrepreneurs who questioned the Chinese office.

Janet Yellen appears before the Senate Finance Committee Tuesday. Recognition…Anna Moneymaker for the New York Times

Republicans on Tuesday announced their opposition to President-elect Joseph R. Biden Jr.’s economic plans and urged Janet L. Yellen, his Treasury candidate, to defend a $ 1.9 trillion stimulus proposal that the more direct payments to individuals would allow unemployment benefits and money for states and cities.

The Republican opposition on the Senate Finance Committee during the confirmation hearing of Ms. Yellen underscored the challenge the future Biden administration will face in trying to get its proposal through Congress as it has one in the Senate and House of Representatives has tight control.

“We’re looking at another loss of spending,” said Senator Patrick J. Toomey, Republican of Pennsylvania. “The only principle of organization that I can apparently understand is to spend as much money as possible, seemingly to spend it.”

Mr Toomey questioned Mr Biden’s plans to send more money to states and cities, a move Republicans opposed last year and which has been removed from the last round of stimulus talks to raise the $ 900 billion Dollar help win package. He also expressed concern about Mr. Biden’s proposed tax hikes and his request to raise the minimum wage to $ 15.

South Carolina Republican Senator Tim Scott took up Mr Biden’s call to raise the $ 7.25 minimum wage, arguing to Ms. Yellen that doing so would harm small businesses while they are vulnerable and result in more job losses.

Other Republicans complained that Biden’s economic plan was fiscally irresponsible given the country’s growing debt burden and the federal budget deficit that exceeded $ 3 trillion last year. Louisiana Republican Senator Bill Cassidy said Mr. Biden’s plan was not targeted enough and that it was not an efficient use of federal resources to provide additional direct payments of $ 1,400 to some people who have lost jobs.

Ms. Yellen dismissed her arguments point by point, arguing that doing too little to stimulate the economy would be more expensive in the long run. She said economic research has shown minimal job losses from raising the minimum wage, citing studies by neighboring states when one imposes an increase and the other does not.

She also argued that unemployment benefits, supplemented by an additional $ 400 per week under Mr. Biden’s plan, are not enough to address families’ financial troubles and that the $ 1,400 stimulus tests are important in situations where a person, generally a woman, is present, has left a job to look after children who are out of school.

“There are many families who face exceptional financial burdens that are not covered by unemployment benefits,” she said.

Ms. Yellen has given some assurances to Republicans who fear the Democrats will repeal the entire 2017 tax bill that cut taxes on individuals and businesses. She said that while Mr Biden would like to make changes to the law, including increasing the corporate tax rate, such measures are not an immediate priority.

“The focus right now is on providing relief and helping families keep a roof over their heads and food on the table, not on collecting taxes,” she said.

The revitalized paycheck protection program is off to a smoother and slower start than last spring, when desperate borrowers inundated banks with loan applications and overwhelmed government computer systems.

The program largely opened on Tuesday when the Small Business Administration, which manages the aid program, accepted applications from all lenders. The agency allowed a small group of lenders and small banks to submit their applications last week.

In the first week of the program, the agency approved around 60,000 applications from nearly 3,000 lenders, it said on Tuesday. These requests totaled $ 5 billion, consuming approximately 2 percent of the $ 284 billion the program makes available.

These numbers don’t include loan applications sent to the agency on Tuesday. This was the first day most lenders were allowed to submit loan applications. New fraud checks and other safeguards mean that most applications will take at least a day to get approval.

The program is open to both first-time and recurring borrowers: the hardest-hit small businesses, which have seen sales declined by at least 25 percent since the pandemic began, are eligible for a second loan.

Lenders said they are preparing for significant demand, particularly second-round loans. John Asbury, the executive director of Atlantic Union Bank in Richmond, Virginia, said he expected at least 60 percent of his bank’s 11,000 borrowers to return for another loan.

Finance officials have announced that funding for the program will be enough to meet all requests. Mr. Asbury hopes that’s true.

“We just don’t know how much rush we’re going to get,” he said. “We get a lot of calls.”

Mike Lindell, the executive director of MyPillow, with President Trump at a White House briefing in March.Recognition…Al Drago for the New York Times

Bed Bath & Beyond and Kohl’s said they would be dropping MyPillow products amid backlash to comments from Mike Lindell, the executive director of the bedding company, who promoted debunked conspiracy theories related to the election on social media.

Kohl’s and Bed Bath & Beyond acted after people put pressure on them on social media, according to an interview posted on a pro-Trump website called the Right Side Broadcasting Network on Monday. Mr Lindell, who said he spoke to Bed Bath & Beyond minutes before the interview, claimed, without citing any evidence, that the criticism came from fake reports.

Bed Bath & Beyond said Tuesday that its decision was based on the performance of MyPillow. “We have streamlined our range to discontinue a number of underperforming items and brands,” a representative said in a statement. A Kohl’s spokeswoman said “customer demand for MyPillow has declined” and that the chain had no plans to purchase future inventory after closing its offer.

Mr. Lindell, whose company is a major advertiser on Fox News, has become a prominent supporter of President Trump. He attracted a wave of attention last week after a photo of partially visible notes he carried into the White House showed a mention of the Insurrection Act. MyPillow also offered a “FightforTrump” discount code on the day of the Capitol Riots. On social media, groups like Sleeping Giants, formed to stifle advertising dollars for Breitbart News, have asked vendors for their support for MyPillow products.

Mr. Lindell railed against Sleeping Giants in the interview.

“These people don’t understand, they are scared,” said Mr. Lindell of Bed Bath & Beyond and Kohl’s. “They were good partners. In fact, I told them, come back whenever you want. “

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World News

US Surpasses 400,000 Deaths: Stay Covid-19 Updates

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Credit…Victor J. Blue for The New York Times

More than 400,000 people in the United States who had the coronavirus have died, according to data compiled by The New York Times on Tuesday, as the anniversary of the country’s first known death in the pandemic approaches.

The pace at which Americans have been dying accelerated through the fall and into the winter, exploding to record levels in January. During some weeks this month, the average deaths per day exceeded 3,300, more than the number of people killed in the Sept. 11 terrorist attacks. Tuesday’s harrowing milestone came a day after the United States surpassed 24 million total cases.

The single deadliest day of the pandemic so far was Jan. 12, when more than 4,400 deaths were reported. Unlike in the early days of the outbreak in the United States, which was centered in a handful of big, mostly Northeastern cities, this surge is widespread. As of Monday, Arizona, California, South Carolina, New York and Oklahoma had reported the most new cases per capita over the previous week. Much of the latest surge has been attributed to people gathering over the holidays, from Thanksgiving to New Year’s Eve.

The length of time it has taken to log each 100,000 deaths has decreased dramatically since the country’s first known Covid-19 death, which occurred in Santa Clara County, Calif., on Feb. 6, 2020. The first 100,000 U.S. deaths were confirmed by May 27; it then took four months for the nation to log another 100,000 deaths; the next, about three months; the latest, just five weeks.

Public health experts do not expect mortality rates to peak until the end of the month. By the end of February, the death toll might hit 500,000, a number that would have seemed unthinkable a year ago. Dr. Anthony S. Fauci, the country’s top infectious disease expert, estimated last March that up to 240,000 Americans might lose their lives, an enormous figure that still fell far short of reality.

The United States has had more total virus-related deaths than any other country in the world. In total, New York alone has recorded more than 40,000 known

deaths. In all, more than two million people have died with the virus worldwide, a number that is almost certainly an undercount.

The blame for the enormous loss of American life, many experts say, lies in a failure of leadership by President Trump, whose administration politicized the use of masks and left states to implement a patchwork of inconsistent measures that did not bring the virus under control.

“It wasn’t that he was just inept,” said Jeffrey Shaman, a Columbia University professor of environmental health sciences who has modeled the virus’s spread. “He made something that could have very easily turned into a point of patriotism, pride and national unity — protecting your neighbors, protecting your loved ones, protecting your community — into a divisive issue, as is his wont, and it cost people’s lives.”

By comparison, Vietnam, a nation of 97 million people, has confirmed just 35 virus-related deaths, Dr. Shaman added.

President-elect Joseph R. Biden Jr., who is set to be inaugurated on Wednesday, has called for an aggressive national strategy to beat the virus, including ramping up the availability of Covid-19 vaccines, though he has not committed to a federal mask mandate.

“You have my word that we will manage the hell out of this operation,” Mr. Biden said on Friday, noting the disproportionate deadly outcomes of the virus for Black, Latino and Indigenous Americans. “Our administration will lead with science and scientists.”

With the virus rampaging everywhere for so many months, hospitals have been stretched. In rural areas, doctors have at times been unable to transfer gravely ill patients to larger medical centers for more sophisticated treatment.

As of Monday, the seven-day average of cases across the United States was 200,000 a day, though it has started to decline from recent weeks. Hospitalizations also have finally begun to level off and on Sunday reached their lowest level since Jan. 2. In the Midwest, hit by its worst surge in the fall, case numbers have fallen sharply in recent weeks, but that progress seems to be slowing.

However, new variants of the virus, some of which make it more transmissible, could soon spread throughout and threaten to make infections rise again.

“There’s no clear end in sight anytime in the near future,” said Ira M. Longini Jr., a biostatistics professor at the University of Florida.

The variants have made it even more urgent to administer the coronavirus vaccines developed at record speed that brought so much hope to people when they started to become available last month.

But at the slow rate that shots are being administered — about 10.6 million people had received at least the first dose as of Friday — Dr. Shaman warned, it could take more months than expected to reach enough of a critical mass of vaccinated people for the inoculations to make a dent in the pandemic.

United States › United StatesOn Jan. 18 14-day change
New cases 142,587 –7%
New deaths 1,441 +21%
World › WorldOn Jan. 18 14-day change
New cases 521,538 +5%
New deaths 9,940 +21%

Where cases per capita are
highest

Students waited outside Sleepy Hollow Middle and High School before they took the SAT in Sleepy Hollow, N.Y., in September.Credit…Hilary Swift for The New York Times

The College Board, which administers the SAT college entrance examination and has seen its business battered by the coronavirus pandemic, said Tuesday that it will drop the optional essay section from the SAT and stop administering subject-matter tests in the United States.

“The pandemic accelerated a process already underway at the College Board to simplify our work and reduce demands on students,” the organization said in a statement, adding that it would also continue to develop a version of the SAT test that could be administered digitally — something it tried and failed to do quickly with an at-home version last year after the pandemic shut down testing centers.

The board gave no time frame for when a digital version of the SAT, which would be administered at testing centers by live proctors, might be introduced, but said it would provide more information in April.

The changes to the SAT come as more and more colleges are dropping the requirement that students take the test, as well as its competitor the ACT, a trend driven in part by concerns about equity that received a boost during the pandemic.

Critics of the College Board said the decision was almost certainly driven by financial considerations. The SAT has in the past represented a substantial portion of the College Board’s more than $1 billion in annual revenue.

“The SAT and the subject exams are dying products on their last breaths, and I’m sure the costs of administering them are substantial,” Jon Boeckenstedt, the vice provost of enrollment management at Oregon State University, said in an email.

At the same, he said, the College Board was likely to try to use the elimination of the subject tests to try to convince elite high schools to offer more Advanced Placement courses, whose tests the College Board also administers, as a way to burnish their students’ transcripts. But because A.P. tests have to be taken at the end of a student’s junior year or earlier for their scores to be considered in admissions decisions, more focus on A.P. scores in the admissions process would likely only increase pressure on students.

“Overall, it’s good for College Board, and probably not so good for students,” Mr. Boeckenstedt said. “In other words, par for the course.”

Indeed, in its announcement, the board said that A.P. courses provided students “rich and varied opportunities to showcase their knowledge and skills” and that the “expanded reach of A.P. and its widespread availability for low-income students and students of color” made the subject tests no longer necessary.

David Coleman, the chief executive officer of the College Board, said the organization’s goal was not to get more students to take A.P. courses and tests, but to eliminate redundant exams, thereby reducing the burden on high school students applying to college.

“Anything that can reduce unnecessary anxiety and get out of the way is of huge value to us,” he said.

Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, receiving his first dose of the coronavirus vaccine at the National Institutes of Health, in Bethesda, M.D., last month.Credit…Pool photo by Patrick Semansky

Dr. Anthony S. Fauci, the government’s top infectious disease expert, received his second dose of Moderna’s coronavirus vaccine on Tuesday morning at the National Institutes of Health’s vaccination center, a Department of Health and Human Services spokeswoman confirmed, drawing him closer to full protection against Covid-19.

Joining Dr. Fauci were Alex M. Azar II, the health and human services secretary, and Dr. Francis Collins, the N.I.H. director, who also received their second shots. Scientists are still working to determine how long protection from Moderna’s second dose — which follows the first after 28 days — will last. In a recent study, the company found that volunteers were still making high levels of antibodies three months after the second dose. But it is unknown what levels are needed to maintain immunity.

Dr. Fauci’s second dose came at a time when the country is struggling — with a limited supply — to get every available dose of Moderna’s and Pfizer’s vaccines into the arms of health workers and older Americans. Scientists at N.I.H. and Moderna are now analyzing data to see if they can double the supply of the vaccine by cutting doses in half.

Dr. Fauci and other government scientists have repeatedly emphasized the importance of the second dose as a way to achieve long-term immunity. At an event sponsored by the Harvard Business Review on Tuesday afternoon, he reiterated that, but said protection that people might get from a first dose is insufficient for providing fuller immunity.

He also struck an optimistic note, saying that the U.S. may have enough protection against the virus to achieve “some form of normality” by the fall. To get there, he warned that the country would need to adhere much more closely to public health measures and to successfully implement a vaccine program that can reach the vast majority of Americans.

Tuesday functioned as something of a wind-down for the Trump administration’s top health officials who will leave their roles on Wednesday, when President-elect Joseph R. Biden Jr. is sworn in. Mr. Azar delivered a final “state of the department” address in the morning, listing what he viewed as the administration’s accomplishments in funding and developing vaccines and tests for the virus, and thanking the department’s employees for working long hours and weekends during the pandemic.

On Tuesday afternoon, Vice President Mike Pence was scheduled to oversee his final meeting with the White House coronavirus task force, which Mr. Azar and Dr. Fauci are members of. Dr. Fauci will cross over into the next administration as the chief medical adviser to Mr. Biden.

As of Friday, about 10.6 million people in the United States had received at least one dose of a Covid-19 vaccine, and about 1.6 million people had been fully vaccinated, according to the Centers for Disease Control and Prevention. That is far short of the goal set by federal officials to give at least 20 million people their first shots before the end of 2020.

A field of flags from U.S. states planted on the National Mall on Monday to represent the thousands of Americans who would normally attend the inauguration.Credit…Todd Heisler/The New York Times

With the United States reaching a once-unthinkable coronavirus pandemic death toll of 400,000 people on Tuesday, the eve of his inauguration as president, Joseph R. Biden Jr. is assuming the role of mourner in chief and projecting an air of command of the issue that has vexed the Trump administration for the past year.

The president-elect will arrive in the nation’s capital Tuesday evening for a somber inauguration-eve ceremony at the Lincoln Memorial, where 400 lights will be illuminated along the perimeter of the reflecting pool. Each is meant to represent approximately 1,000 Americans who have died during the pandemic.

On Monday night, as President Trump ordered an end to the ban on travelers from Europe and Brazil that had been aimed at stopping the spread of the coronavirus to the United States, Mr. Biden’s aides said he would rescind the move when he takes office on Wednesday, before it was scheduled to go into effect.

Mr. Trump’s order was issued at a time of heightened anxiety over the coronavirus and what Mr. Biden has warned will be a “dark winter.” The country has experienced a post-holidays surge in cases that has overwhelmed some hospitals and led to record numbers of deaths. The national vaccination rollout has been slow and chaotic. And a more contagious virus variant is spreading, while others are being discovered.

Mr. Biden has declared getting control of the pandemic the central issue of his administration, and has been highly critical of how his predecessor handled the worst public health crisis in more than 100 years.

Mr. Trump, in a proclamation, said that the travel restrictions, which apply to noncitizens trying to come to the United States, would no longer be needed on Jan. 26, once the Centers for Disease Control and Prevention start requiring proof of a negative virus test before boarding for all passengers from abroad.

The proclamation appeared to be an effort to help the airline and hospitality industries.

Mr. Trump wrote that Alex M. Azar II, the secretary of health and human services, had recommended ending the restrictions for most parts of Europe and Brazil, while maintaining them for Iran and China, which Mr. Trump said had not been cooperative.

Jennifer Psaki, who will be Mr. Biden’s White House press secretary, said the new administration would not allow the directives to take effect.

“With the pandemic worsening, and more contagious variants emerging around the world, this is not the time to be lifting restrictions on international travel,” she tweeted.

In Washington, the Tuesday night event at the Lincoln Memorial will kick off “a national moment of unity” at 5:30 p.m. Eastern that will include similar commemorations at the Empire State Building in New York, the Space Needle in Seattle and other landmarks, with events also planned for Mr. Biden’s hometowns, Scranton, Pa., and Wilmington, Del.

The inaugural committee’s chief executive, Tony Allen, the president of Delaware State University, said in a statement that the inauguration “represents the beginning of a new national journey — one that renews its commitment to honor its fallen and rise toward greater heights in their honor.”

Michael D. Shear and Glenn Thrush contributed reporting.

A longstanding teacher shortage in the United States has been exacerbated by the pandemic.Credit…Ruth Fremson/The New York Times

Across the United States, state education and district officials say the pandemic has intensified a longstanding teacher shortage to crisis levels.

As spikes in cases and exposures have forced more teachers to stay home, the shortage is among the main reasons that schools or whole districts have had to halt in-person instruction, often for weeks.

“It’s just such a ripple effect,” said Laura Penman, the superintendent of Eminence Community Schools, a tiny district in rural Indiana. The district had to briefly close its only elementary school in November because an infected educator had come into contact with several colleagues.

Desperate to stanch staffing shortfalls, districts are increasing pay for substitutes and even advertising for temporary positions on local billboards. Some states and districts have suspended college course requirements, or permitted abbreviated online training, for emergency substitute teachers.

Although stopgap solutions may be necessary during the pandemic, education experts say they could diminish the quality of in-person learning, further disrupting education for a generation of children.

Public school systems in the United States have been grappling with a shortage of full-time teachers for years. There is reduced education funding in many states, and one study before the pandemic reported that schools nationwide needed more than 100,000 additional full-time licensed teachers, particularly in science and special education. The coronavirus is vastly exacerbating that shortfall, experts say, by prompting many teachers to quit or retire early.

Education researchers said the pandemic teaching shortage was likely to intensify learning disparities, especially in high-poverty schools where experienced substitutes often chose not to work.

“It’s a disaster. Those kids who have already got the worst of Covid and its consequences are the ones who are going to face a larger lack of sufficient, and sufficiently qualified, teachers,” said Emma Garcia, an education economist at the Economic Policy Institute in Washington. “It’s going to have negative consequences immediately and it’s going to take them longer to be able to catch up.”

A CVS pharmacist preparing a Covid-19 vaccination for residents of a nursing home in Harlem on Friday. Nearly a third of nursing home workers in New York State have declined to be vaccinated.Credit…Yuki Iwamura/Associated Press

The number of nursing home workers in New York State who have declined the coronavirus vaccine rivals the number who have been inoculated, raising concerns about vaccine hesitancy among those who are in contact with some of the individuals at highest risk of a severe infection.

As of Monday, about 37 percent of the more than 130,000 people working in “skilled nursing” facilities in the state have been vaccinated, according to the governor’s office.

But 32 percent of the workers have declined to be vaccinated.

In some parts of the state, staff members who have declined outnumber those who have been vaccinated. On Long Island, 46 percent declined while 34 percent have been vaccinated.

Officials cautioned that the vaccination process for long-term-care facilities was still in its early stages — the first of three inoculation phases concluded on Sunday, and many workers have not had the chance to get vaccinated. They said they hoped the proportion of staff members declining would decrease as they saw their colleagues getting vaccinated safely.

Gov. Andrew M. Cuomo said at a news conference on Monday that the state had earmarked 225,000 doses for residents and workers in long-term care facilities and that 105,000 had been used. Of the 120,000 unused doses, 15,000 will be reserved for residents and 40,000 for staff members; the remainder will be reallocated to the main vaccination program, Gareth Rhodes, a top aide to Mr. Cuomo, said Tuesday.

The vaccination rate among residents was higher: 67 percent have been inoculated, while 16 percent have declined. Workers and residents who are medically able to get the vaccine but had previously declined will still be able to get a shot if they decide to.

The state health department has done online events and other educational outreach with nursing homes, largely to address vaccine hesitancy.

Many of the workers are lower-income and people of color, communities that tend to have higher rates of vaccine hesitancy. In a speech on Monday marking Martin Luther King’s Birthday, Mr. Cuomo said he understood their distrust, citing the decades-long Tuskegee experiment in which government researchers withheld treatment from Black men infected with syphilis.

“No one can ameliorate or justify the victimization and discrimination the Black community has endured,” Mr. Cuomo said.

But, he said, “We have had New York’s doctors, the best on the planet, review the vaccine, and they vouch for it. I will take it as soon as I am eligible.”

People in the United States have been dying of Covid-19 at the highest rate of the pandemic. The new milestone of 400,000 deaths, reached on Tuesday, is the equivalent of wiping out a city the size of Oakland, Calif. It is on the order of Sept. 11 deaths more than a hundred times over. At that scale, the human brain compensates with a defense that political psychologists call “psychic numbing.”

On one single day in a monthlong period during which the United States lost more people to Covid-19 than in any other during the pandemic, Stacey Williams, a beloved youth football coach and father of five in Florida, was among more than 2,000 Americans with the virus to die.

Along with Mr. Williams, Jose H. Garcia, 59, the longtime chief of the Roma Police Department in the South Texas border region who was known to friends and family as Beto, died of Covid-19 complications. So did Nelson Prentice Bowsher II of Washington, D.C., 80, an affordable-housing advocate whose family’s feed mill business was a fixture of South Bend, Ind., through the 1960s.

Credit… 

Combing through hundreds of local obituaries, county records and interviews with families, New York Times reporters were able to piece together a tapestry of some of the lives lost on that day, Jan. 4.

Sherri Rasmussen, 51, of Lancaster, Ohio, was one. She is survived by a daughter who said she will always remember the day her mother gave her purse to a woman who complimented it in a CVS store, saying, “I want to pay it forward.”

And then there was Pedro Ramirez, 47, who loved his Puerto Rican homeland, salsa dancing and restoring Volkswagen bugs. Days before, he told his wife, Shawna Rodriguez, about the vaccine and how people like him, with chronic medical issues, would be getting it soon.

“I told him I loved him and how sorry I was that he had to be in the hospital by himself,” said Ms. Ramirez, 52, who works in a bridal salon in Macon, Ga.

The surge in deaths reflects how much faster Americans have spread the virus to one another since late September, when the number of cases identified daily had fallen to below 40,000. Since early in the pandemic, deaths have closely tracked cases, with about 1.5 percent of cases ending in death three to four weeks later.

A dose of the Pfizer-BioNTech vaccine being prepared at the Michener Institute in Toronto earlier this month.Credit…Frank Gunn/The Canadian Press, via Associated Press

Canada will not receive any vaccine shipments from Pfizer next week, but that should not affect the government’s plan to administer six million doses of the Pfizer and Moderna vaccines by the end of March, officials said Tuesday.

Last Friday, Pfizer said it would be temporarily limiting shipments of the vaccine it developed with BioNTech to Canada and European countries while it revamped a plant in Belgium to increase production. The announcement triggered outrage among health officials across the European Union and added to concerns over the sluggish pace of immunizations. (The United States is not affected by the change; doses for its domestic market are manufactured in Kalamazoo, Mich.)

Maj. Gen. Dany Fortin, the Canadian military officer in charge of vaccine distribution, told reporters that while the change had relatively little effect on Canada this week, the company will not send any vaccine during the final week of January. Previously he had said that shipments during that period would only be cut in half. Shipments of the vaccine made by Moderna to Canada are not affected.

Anita Anand, Canada’s minister in charge of procurement, said that subsequent shipments of the Pfizer-BioNTech vaccine will be increased, and that the changes will not affect the government’s plan to administer six million doses of the two vaccines over the next two months.

Some Canadian news outlets had suggested that Europe would see its shipments return to normal more quickly than Canada, based on statements from Pfizer. But Ms. Anand said that she spoke with the company over the weekend and it “assured me and Canada of equitable treatment.”

Doug Ford, the premier of Ontario, urged Prime Minister Justin Trudeau on Tuesday to pressure Albert Bourla, the chief executive of Pfizer, to increase Canada’s allotment.

“I’d be on that phone call every single day,” Mr. Ford told a news conference.

Officials in Delaware are offering a variety of incentives to encourage prisoners to consent to being vaccinated. The James T. Vaughn Correctional Center is in Smyrna, Del.Credit…Suchat Pederson/The News Journal, via Associated Press

Officials at U.S. prisons and jails are running into widespread unwillingness among prisoners to consent to be vaccinated. To combat it, some are turning to offering incentives like free snack bags, extra visiting time and even a little time off sentences.

Incarcerated people are at much greater risk from Covid-19 than the general public: Studies have shown that they are four times as likely to become infected, and twice as likely to die. But many say they are wary both of the vaccines and of the prison medical staff members who administer them.

A recent survey at a jail in Billerica, Mass., found that only 40 percent of the inmates would volunteer for a vaccination, even though there had been more than 130 infections at the jail.

Many prison systems around the nation have yet to receive any vaccine doses or offer them to prisoners. Those that have tend to provide little or no educational material about the vaccines, inmates say.

At the Allenwood federal prison complex in Pennsylvania, inmates said medical workers arrived without any prior notice on Jan. 6, carrying clipboards and pushing carts containing vaccine doses.

“They didn’t give us any information beyond, basically, ‘Hey, this is safe, and you don’t have any worries taking it,’” said Domingo Ramirez, who is incarcerated there.

At the same prison, Andres Azner said that more than half of the inmates in his unit had refused vaccination when it was offered, including him.

“They didn’t give me enough time to think about it,” he said. “They didn’t give me enough information to make a solid, sound, prudent decision. They kind of just tried to force it upon me. And, no, no, I’m not taking it.”

The Bureau of Prisons did not respond to a request for comment.

The Delaware state prison system is trying to overcome the skepticism with incentives to receive the shot, and the North Carolina system is considering doing the same.

Delaware is offering credits that shorten sentences by a few days, as well as a 30-minute video visit with loved ones and either a free commissary snack bag or a “special meal.”

The idea is not unprecedented. In November, Kansas state prisons began offering inmates $5 to get a flu shot. The prisons have not yet received coronavirus vaccines to offer to prisoners, and officials declined to say whether the same policy would apply when they do.

Lauren Brinkley-Rubinstein, a professor at the University of North Carolina School of Medicine, said that a “very dark history of experimentation on prisoners” was responsible for fostering mistrust — and that certain incentives, involving expanded visitation privileges, were ethically questionable.

Brant Addison, an inmate at the Wake Correctional Center in North Carolina, described a string of sleepless nights as he weighed whether to receive the vaccine. Mr. Addison, who is African-American, cited the infamous Tuskegee syphilis study, and said that two of his relatives who are nurses shared his concerns.

He said he might feel safer receiving the vaccine after more people have taken it, including those outside prison walls.

“I have such a short time left, just a few months,” he said, referring to his sentence. “And I want to be able to walk out of here with a sound mind and body.”

Denise Saylor, right, taking a selfie as Lara Comstack gave her the Modern vaccine at the Callen-Lorde Community Health Center in Manhattan this month.Credit…James Estrin/The New York Times

New York City expects to exhaust its supply of coronavirus vaccine on Thursday, and will then have to cancel inoculation appointments at many city inoculation sites, according to Mayor Bill de Blasio.

“We will literally have nothing left to give as of Friday,” Mr. de Blasio said at a news conference Tuesday.

New York City received 53,000 doses this week, the mayor said, and had a total of 116,000 doses in inventory Tuesday morning. But Mr. de Blasio said that was not nearly enough to keep up with the pace at which New Yorkers are being inoculated. The mayor, who raised concerns last week about a coronavirus vaccine shortage after an initially sluggish rollout, said the city is not currently scheduled to receive any more doses until next Tuesday.

Mr. de Blasio and Gov. Andrew M. Cuomo have urged the federal government to send more vaccine to New York, now that the state’s eligibility pool has been expanded to include anyone 65 or older.

Statewide, more than 835,000 people have received the first of the two doses of a vaccine — both federally authorized vaccines are two-dose vaccines — and nearly 84,000 have received the second dose, Mr. Cuomo said in a statement on Tuesday. Even so, pressure is mounting to speed up vaccinations as hospitalizations across the state surpassed state 9,000, according to Mr. Cuomo on Tuesday, for the first time since early May.

The supply issue threatens the success of the mass vaccination sites the city has been setting up in each of the five boroughs, Mr. de Blasio said. Sites at CitiField, the Mets’ home stadium in Queens, and at the Empire Outlets shopping center in Staten Island are scheduled to open next week. “This is not the way it should be,” the mayor said. “We have the ability to vaccinate a huge number of people. We need the vaccine to go with it.”

The city’s vaccination program has run into several obstacles since eligibility was expanded. Buggy websites and complex sign-up systems have made it difficult for many New Yorkers to schedule appointments. Mr. de Blasio said the city expects to have vaccinated 500,000 people by the end of Wednesday. The city had previously set a goal of one million doses by the end of January.

Gov. Andrew M. Cuomo of New York, unveiling a budget proposal, said the state was facing a $15 billion shortfall.Credit…Pool photo by Hans Pennink

Gov. Andrew M. Cuomo on Tuesday warned that New York State was facing an enormous $15 billion deficit as he unveiled a 2022 budget proposal laden with urgency and uncertainty caused by the coronavirus pandemic.

The governor pleaded with leaders in Washington to deliver $15 billion in emergency relief, but the precariousness of the situation led Mr. Cuomo to lay out two different budget possibilities: one assuming a federal aid package of $6 billion, and another with the full $15 billion.

If the federal government provided a $6 billion aid package, which the governor called the “worst-case” scenario, Mr. Cuomo said the state would be unable to fill its budget gap, resulting in cuts of about $2 billion in school funding, $600 million in Medicaid funding and $900 million in across-the-board reductions.

There are other question marks, primarily a lack of clarity about how much money the state would have on hand because of diminished tax revenues.

“This budget is really the economic reconciliation of the Covid crisis, the cost of the Covid crisis,” Mr. Cuomo said during a virtual address from the State Capitol’s Red Room in Albany. “This year, it’s going to be about reconciling the responsibility of the battle and completing the battle.”

In crafting a budget for the next fiscal year, which begins April 1, state officials face similar challenges as last year, when the pandemic devastated the economy and upended one of the nation’s largest budgets.

But the political climate in Washington is certainly different: Senator Chuck Schumer, who will take over as majority leader in Washington this week, has promised “better days ahead out of Washington for New York,” though he has stopped short of promising a complete bailout.

Last week, Mr. Schumer announced that the city and state would receive $2 billion in emergency funding related to expenses incurred as part of the coronavirus response.

The incoming Biden administration is promising $350 billion in direct aid to states and local municipalities, as part of a $1.9 trillion Covid response plan. Even so, Mr. Cuomo has maintained that without a substantial infusion of cash from Washington, the state would need to resort to a mix of tax increases, spending cuts and borrowing.

“We don’t know what level of aid we will get,” Mr. Cuomo said on Tuesday, adding, “New Yorkers deserve and demand fairness.”

Skylar Mack, the 18-year-old Georgia college student who was sentenced to two months in prison for violating coronavirus restrictions in the Cayman Islands, was released on Friday after a month behind bars.Credit…ABC News

Skylar Mack, the American college student who was released from a prison in the Cayman Islands last week for violating coronavirus restrictions, said in an interview that she “deserved it.”

In a segment that aired on ABC’s “Good Morning America” on Tuesday, Ms. Mack, 18, apologized for breaking the rules and said that any anger toward her was justified, adding that if she had gotten someone sick, she would not have been able to live with herself.

She was released on Friday after spending more than a month behind bars.

“I deserved it,” she said. “I was like, ‘You know what, I made this mistake, and it sucks, you know, but you did it to yourself.’”

After finishing the semester at Mercer University in Georgia in late November, Ms. Mack flew to the Cayman Islands to watch her boyfriend, Vanjae Ramgeet, 24, compete in the islands’ Jet Ski racing national championship.

She arrived on a Friday and tested negative for the coronavirus. While the British territory’s laws required her to remain in her hotel room for 14 days, on Sunday, the day of the championship, she slipped the electronic monitoring bracelet from her wrist. She went to the beach and cheered on Mr. Ramgeet as he won first place.

In mid-December, a Cayman Islands court sentenced Ms. Mack and Mr. Ramgeet to four months in prison. After an outcry that the punishment was too harsh, a panel of judges reduced the sentence to two months. Her release after a little more than half that time was in line with what her lawyer expected. Mr. Ramgeet was also released on Friday, according to Ms. Mack’s family.

Thousands of others around the world have been similarly punished for breaching quarantine restrictions. Extensive travel restrictions have failed to stop the virus from spreading, with some people viewing themselves as above the rules.

Global roundup

The government district in Berlin this month. Chancellor Angela Merkel was meeting with state governors on Tuesday about new lockdown rules.Credit…Lena Mucha for The New York Times

As German authorities prepare stricter lockdown measures, some German states are planning guarded mandatory quarantine centers for the very few who repeatedly disobey quarantine rules, according to an investigation by Die Welt am Sonntag, a national Sunday paper.

States like Schleswig-Holstein in the north, Brandenburg around Berlin and Baden–Württemberg in the southwest are preparing such mandatory quarantine sites in hospitals, refugee centers and a youth detention center.

“Pandemic control lives or dies with public acceptance,” Sönke Schulz, a regional leader in Schleswig-Holstein, told Kieler Nachrichten, a local daily. “This would suffer if noncompliance remained without consequence.”

However, since there are very few known cases of people who repeatedly flout quarantine and isolation rules and fines — which are imposed because someone either has Covid, has had close and prolonged contact with an infected person or has come back from a high-risk foreign country — the states are only planning for a few sites.

On Tuesday Chancellor Angela Merkel and governors are meeting to agree on new and extended lockdown rules. As of Monday, the seven-day average number of cases was 16,886, according to a New York Times database, slightly higher than when the national lockdown began at the beginning of November. Starting in mid-December, politicians strengthened the lockdown, closing most nonessential shops and most schools.

But even as numbers start to decline slowly, the German authorities are worried about a more transmissible variant of the virus that is thought to be responsible for a spike in infections in Britain.

Among the other developments around the world:

  • Rwanda announced restrictions on movement and businesses in the capital, Kigali, on Monday, as coronavirus cases continued to surge across the country. The authorities closed all places of worship, shut down public transportation, banned travel between the capital and other parts of the country, and ordered all workers other than those providing essential services to work from home. Farming can continue, and businesses selling food, medicine, fuel or cleaning products may operate but must close by 6 p.m. Funeral gatherings are permitted but cannot exceed 15 people. Foreign tourists will continue to be allowed to enter and travel around the country during the two-week lockdown, but they must present a negative P.C.R. test on arrival and departure. Rwanda has reported 11,259 coronavirus cases and 146 deaths so far, and the rate of positive test results has risen sharply since mid-November, reaching 7.7 percent on Tuesday.

  • A survey about coronavirus infections in Britain from the Office for National Statistics estimates that one in eight people in England — about 5.4 million people over the age of 16 — had antibodies against the virus in December, suggesting they were infected in the past. The report suggests about one in 10 people across Britain had such antibodies. Excess deaths were at the highest level since last May, the analysis found, and in England the Covid-19 mortality rate in the most deprived areas last month was more than twice that in the least deprived.

  • Officials in Hong Kong said on Tuesday that current social distancing measures, which include a ban on dine-in service after 6 p.m., would be extended for at least another week, a day after the number of new coronavirus cases returned to the triple digits for the first time this year. They also said they would bar entry to travelers who had spent more than two hours in Ireland or Brazil in the past 21 days — the same rule as applied to Britain and South Africa, where two more transmissible variants of the virus were first detected.

  • Starting Jan. 26, everyone flying to New Zealand will have to show proof before departure that they have tested negative for the virus, the government said on Tuesday, unless they are coming from Australia, Antarctica or most Pacific islands. Two weeks of quarantine continues to be mandatory for all travelers to New Zealand, which last recorded a locally transmitted case in November. Last week, the country began requiring predeparture tests for passengers from the United States and Britain.

  • Japan’s southernmost prefecture, Okinawa, declared a state of emergency after a spike in cases, Reuters reported. Okinawa Governor Denny Tamaki said emergency measures include asking restaurants and bars to close by 8 p.m. and residents to refrain from non-urgent outings after 8 p.m. The emergency is scheduled to last until Feb. 7. The prefecture confirmed 113 cases on Tuesday, its third-highest daily tally on record, the public broadcaster NHK reported. Shizuoka prefecture, home to Mount Fuji, also declared “an emergency alert” of its own on Tuesday after it found cases of a more contagious coronavirus variant, Kyodo News reported.

  • Britain’s health secretary, Matt Hancock, said on Tuesday that he would isolate at home for the next six days after a notification from the National Health Service coronavirus app told him he had been in close contact with someone who tested positive. Mr. Hancock, a key figure in country’s virus response, appeared in a televised coronavirus briefing Monday evening and tested positive himself in March.

  • Scotland’s lockdown will be extended to mid-February and its schools and kindergartens will remain closed until then, First Minister Nicola Sturgeon said on Tuesday. Early in January, people were asked to stay at home for all but essential purposes, and most students returned to remote learning, as the country tried to clamp down on the more transmissible British variant of the coronavirus. The restrictions were originally set to expire at the end of the month, but Ms. Sturgeon said on Tuesday that the country’s case numbers were still high and that staying locked down was vital to protect the National Health Service from becoming overwhelmed.

People wait in line to receive the Sputnik V coronavirus vaccine at the State Department Store GUM in Moscow.Credit…Sergey Ponomarev for The New York Times

The Russian government is considering issuing coronavirus health certificates that could ease travel and commerce for people who have been vaccinated or who have antibodies from surviving the disease, while sharply limiting the liberties of others — an idea that has also been floated in the European Union and by private companies.

Proponents say that such documents, often called Covid passports, could ease airline travel and hasten the reopening of theaters, cruise lines and other settings where people congregate.

Opponents fear a dystopic system that would limit the rights of people who have been careful to avoid infection and are unable or unwilling to be vaccinated. Russia has a grim history rooted in the Soviet era of controlling citizens’ movements, through a residency permit system that was never fully abolished.

Internationally, airlines have already tested electronic certificates showing negative test results for passengers. Those systems could be expanded to show the status of those with some immunity.

The head of the Russian Parliament’s committee on public health, Dmitri Morozov, said on Tuesday that a Covid passport was “very important and needed.”

Collecting people’s Covid health status in a government system, he said, could also provide important data for public health officials. “This is great, this is the new world,” he said. Mr. Morozov did not specify what kinds of information a Covid passport would display.

A regional governor in Russia, Radi Khabirov, proposed on Monday that Covid passport holders receive discounts at stores, as an incentive for people to obtain the certificate.

President Vladimir V. Putin’s spokesman, Dmitri S. Peskov, said on Tuesday that the government is considering issuing Covid passports, perhaps in digital form, but that Russia wanted to coordinate with other countries to agree on standards for them.

Stella Kyriakides, the European Union’s health commissioner, speaking during a plenary session on E.U. global strategy on coronavirus vaccinations at the E.U. parliament in Brussels on Tuesday.Credit…Pool photo by John Thys

The European Union’s executive arm on Tuesday set ambitious Covid-19 vaccination goals for its 450 million citizens, after a sluggish start to its inoculation efforts.

The European Commission said that the bloc’s 27 member states should aim to have at least 80 percent of their citizens over the age of 80, as well as at least 80 percent of their health care workers, vaccinated by March, and at least 70 percent of the whole population vaccinated by this summer.

“We are racing against time, but not against each other,” said Stella Kyriakides, the bloc’s health commissioner. “And we’re all racing together as one team.”

The commission’s call comes as E.U. countries face a resurgence of coronavirus cases, turbocharged by emerging new variants, as well as the grim reality of prolonged lockdowns. E.U. leaders are due to meet by teleconference on Thursday to endorse the Commission’s proposals.

The commission also urged the bloc’s national governments to update their testing strategies, which remain the competence of member states, and urged them to genome sequence more positive coronavirus test results: 10 percent of them, up from the current rate of below 1 percent. Genome sequencing helps quickly identify new variants, while also keeping track of the progress of known ones.

“If we do not act now with determination, we might not be able to contain the risk of a potentially harsh third wave,” warned Ms. Kyriakides. “The numbers are already worrying across the E.U., and hospitals are under a lot of pressure. We cannot be complacent.”

In order to salvage border-free travel across the bloc, the commission also opened the debate over using so-called vaccination certificates, which could permit easier travel for people who’ve been vaccinated. The concept has been advocated by Greece and other smaller states, which heavily depend on tourism, but opposed by several larger E.U. countries such as France.

The bloc intends to determine a common approach by the end of January. For the moment, the commission recommended that all nonessential travel be strongly discouraged. Traveling restrictions, as well as testing and quarantine rules, are currently the prerogative of national governments, and have resulted in a patchwork of chaotic measures across the continent.

Andrew Yang announced that he was running for mayor last week in Manhattan’s Morningside Park.Credit…James Estrin/The New York Times

Less than a week after his vigorous launch into the New York City mayor’s race, Andrew Yang said on Tuesday that he was halting in-person events and quarantining because a campaign staffer had tested positive for the coronavirus.

Mr. Yang, the former presidential candidate, had been seemingly everywhere in recent days, meeting with elected officials across the city and riding the subway and bus to campaign events. His whirlwind appearances were in sharp contrast to the mostly virtual campaigns that his rivals have been conducting.

Now Mr. Yang will enter quarantine for at least eight days, his campaign said in a statement.

“This morning, we learned that a member of the campaign staff received a positive result on a rapid Covid test,” the statement said. “Since that time, Andrew has tested negative and is not experiencing any symptoms.”

On Monday, Mr. Yang attended an event at the Rev. Al Sharpton’s headquarters in Harlem to commemorate Martin Luther King Jr.’s Birthday. He spoke without a mask before a large crowd that included many of the other mayoral candidates.

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What to Watch in Janet Yellen’s Affirmation Listening to: Stay Enterprise Updates

Folgendes müssen Sie wissen:

Anerkennung…Kriston Jae Bethel für die New York Times

Janet Yellen, die zur nächsten Finanzministerin ernannt wurde, wird den Gesetzgebern am Dienstag mitteilen, dass die Vereinigten Staaten ein robustes Konjunkturprogramm benötigen, um die von der Pandemie betroffene Wirtschaft wieder in Schwung zu bringen, und dass es jetzt nicht an der Zeit ist, sich über die zunehmende Verschuldung der Nation Sorgen zu machen Belastung.

“Angesichts der Zinssätze auf historischen Tiefstständen können wir derzeit am klügsten handeln”, wird Frau Yellen laut einer Kopie ihrer Eröffnungsrede vor dem Finanzausschuss des Senats, die von der New York Times geprüft wurde, sagen.

Frau Yellen ist eine von wenigen Kandidaten des gewählten Präsidenten Joseph R. Biden Jr., die am Tag vor der Amtseinführung von Herrn Biden vor die Senatoren gehen werden. Ihre Anhörung zur Bestätigung ist für 10 Uhr Ost geplant.

Das Bestätigungsverfahren für Frau Yellen, eine erfahrene Ökonomin und Zentralbankerin, die von 2014 bis 2018 als Vorsitzende der Federal Reserve fungierte, wird voraussichtlich relativ reibungslos verlaufen.

“Dies ist die schlimmste Wirtschaftskrise seit 100 Jahren, und niemand ist besser qualifiziert als der designierte Sekretär Yellen, um eine wirtschaftliche Erholung zu leiten”, sagte Senator Ron Wyden aus Oregon, der Vorsitzender des Finanzausschusses wird, wenn die Demokraten die Kontrolle über den Senat übernehmen.

Und Senator Charles E. Grassley aus Iowa, derzeit republikanischer Vorsitzender des Finanzausschusses, hat positiv über Frau Yellen gesprochen, seit Herr Biden sie für den Job ausgewählt hat.

Frau Yellen, die durch eine Abstimmung im Senat von 56 zu 26 als Fed-Vorsitzende bestätigt wurde, wird wahrscheinlich vor Fragen zu den wirtschaftlichen Beziehungen Amerikas zu China, ihrer Position zur Sanktionspolitik in Bezug auf den Iran und ihren Gedanken zur Steuerpolitik stehen.

Während die Unterstützung bei der Gestaltung und Überwachung der wirtschaftlichen Hilfsmaßnahmen der Biden-Regierung zunächst ihre oberste Priorität sein wird, wird Frau Yellen auch die weitreichende Regulierungsmacht der Regierung über Banken und den Finanzsektor steuern. Bei der Anhörung wird sie unter Druck stehen, Demokraten und fortschrittlichen Gruppen zu zeigen, dass sie bereit ist, das zu beenden, was sie als Verwöhnung der Wall Street durch Steven Mnuchin, den scheidenden Finanzminister, ansehen.

Viele Politiker sind aufgrund der historisch niedrigen Zinssätze weniger besorgt über die Kreditaufnahme der Regierung.Anerkennung…Erin Schaff / Die New York Times

In der Vergangenheit tendierten die Gesetzgeber dazu, die Treue zur Vollbeschäftigung zu predigen – die niedrigste Arbeitslosenquote, die eine Volkswirtschaft aufrechterhalten kann, ohne eine hohe Inflation oder andere Instabilitäten zu schüren -, während sie die steuerliche und finanzielle Unterstützung zurückzogen, bevor sie dieses Ziel erreichten, da sie befürchteten, dass ein geduldigerer Ansatz dazu führen würde Preisspitzen und andere Probleme.

Diese Schüchternheit scheint diesmal weniger wahrscheinlich zu sein, berichtet Jeanna Smialek von der New York Times.

Der gewählte Präsident Joseph R. Biden wird sein Amt antreten, da die Demokraten das Haus und den Senat kontrollieren, und zu einer Zeit, in der sich viele Politiker aufgrund der historisch niedrigen Kreditkosten weniger Sorgen darüber machen, dass die Regierung Schulden aufnimmt.

Und die Federal Reserve, die nachweislich die Zinsen erhöht, wenn die Arbeitslosigkeit sinkt und der Kongress mehr ausgibt als Steuern einbringt, hat sich diesmal zu mehr Geduld verpflichtet.

Mitte bis Ende der 1960er Jahre konzentrierten sich die Fed-Beamten stark auf die Jagd nach Vollbeschäftigung. Als sie testeten, wie weit sie den Arbeitsmarkt vorantreiben konnten, versuchten sie nicht, die Inflation abzuwehren, da sie sich einschlich, und sahen höhere Preise als Kompromiss für eine geringere Arbeitslosigkeit. Als Amerika Anfang der 1970er Jahre seine letzten Schritte vom Goldstandard abbrach und ein Ölpreisschock eintraf, nahmen die Preisgewinne zu – und es bedurfte einer massiven Straffung des Geldgürtels durch die Fed und jahrelanger ernsthafter wirtschaftlicher Schmerzen, um sie zu zähmen.

Es gibt Gründe zu der Annahme, dass diese Zeit anders ist. Die Inflation ist seit Jahrzehnten niedrig und bleibt weltweit begrenzt. Der Zusammenhang zwischen Arbeitslosigkeit und Löhnen sowie Löhnen und Preisen war schwächer als in den vergangenen Jahrzehnten. Von Japan bis Europa besteht das Problem der Ära in schwachen Preisgewinnen, die die Volkswirtschaften in Stagnationszyklen festhalten, indem sie den Spielraum für Zinssenkungen in schwierigen Zeiten und nicht in einer übermäßig schnellen Inflation untergraben.

Anerkennung…Paige Vickers

Im Zentrum einer Kartellklage, die im vergangenen Monat von 10 Generalstaatsanwälten eingereicht wurde, steht ein Vertrag, den Google laut Gerichtsdokumenten auf Facebook ausgeweitet hat, um Partner in der digitalen Werbefläche zu werden.

Einzelheiten der Vereinbarung, die auf Dokumenten beruhten, die die Generalstaatsanwaltschaft von Texas als Teil der Klage in mehreren Staaten aufgedeckt hatte, wurden in der im letzten Monat beim Bundesgericht in Texas eingereichten Beschwerde redigiert. Sie wurden jedoch nicht in einem Entwurf der von der New York Times geprüften Beschwerde versteckt, berichten Daisuke Wakabayashi und Tiffany Hsu.

Führungskräfte von sechs der mehr als 20 Partner einer Allianz für digitale Werbung, die alle unter der Bedingung der Anonymität sprachen, um eine Gefährdung ihrer Geschäftsbeziehungen mit Google zu vermeiden, erklärten gegenüber The Times, dass ihre Vereinbarungen mit Google nicht viele der gleichen großzügigen Bedingungen enthielten wie diese Facebook erhielt und dass der Suchriese Facebook einen bedeutenden Vorteil gegenüber dem Rest von ihnen gegeben hatte.

  • Die vielleicht schwerwiegendste Behauptung im Beschwerdeentwurf war, dass die beiden Unternehmen festgelegt hatten, dass Facebook einen festen Prozentsatz der Auktionen gewinnen würde, auf die es bietet. “Unbekannt für andere Marktteilnehmer, egal wie hoch andere bieten könnten, haben die Parteien vereinbart, dass der Hammer mehrmals zu Gunsten von Facebook fallen wird”, heißt es in dem Beschwerdeentwurf. Eine Google-Sprecherin sagte, Facebook müsse das höchste Gebot abgeben, um eine Auktion zu gewinnen, genau wie seine anderen Börsen- und Werbenetzwerkpartner.

  • Laut Gerichtsdokumenten hatte Facebook 300 Millisekunden Zeit, um für Anzeigen zu bieten, die über das Google-Netzwerk verkauft wurden. Die Führungskräfte der anderen Partner von Google gaben jedoch an, dass sie normalerweise nur 160 Millisekunden oder weniger zum Bieten hatten.

  • Laut Gerichtsdokumenten durfte Facebook direkte Abrechnungsbeziehungen zu den Websites herstellen, auf denen Anzeigen geschaltet wurden. Für die meisten anderen Partner kontrollierte Google die Preisinformationen, stellte effektiv eine Mauer auf und verbarg, wie viele Websites mit Gewinngeboten letztendlich erhalten, sagten die Führungskräfte anderer Unternehmen.

  • Google erklärte sich damit einverstanden, Facebook dabei zu helfen, besser zu verstehen, wer die Anzeigen erhalten würde, indem das Unternehmen 80 Prozent der mobilen Nutzer und 60 Prozent der Webnutzer identifizieren konnte. Aber mehrere andere Partner sagten, sie hätten wenig Hilfe, um zu verstehen, wem Anzeigen gezeigt wurden.

Costco verkauft einen von Babe Ruth signierten Baseball auf seiner Website für 64.000 US-Dollar.Anerkennung…Costco

Wenn Sie auf dem Markt für Sportmemorabilien sind, sollten Sie sich an Costco wenden. Ja, Costco.

Der nur für Mitglieder bestimmte Großhändler, der für seine Schnäppchen bei Lebensmitteln und Reinigungsmitteln bekannt ist, verkauft einen von Babe Ruth signierten Baseball auf seiner Website für 64.000 US-Dollar.

Costco beschreibt es als “einen der schönsten signierten Babe Ruth Home Run-Spezialbälle, die jemals der Öffentlichkeit zugänglich gemacht wurden, und ist insgesamt einer der schönsten signierten Babe Ruth-Bälle, die es gibt.” Costco listete einen weiteren Ball auf, der im Mai vom Sultan von Swat für 30.000 US-Dollar unterzeichnet wurde.

Das Konzept scheint eine Abkehr von der Marke Costco zu sein und bietet Kunden günstige Grundnahrungsmittel. Nicht so, sagte Andrew Lipsman, Analyst bei der Forschungsfirma eMarketer.

“Es ist für Costco nicht völlig untypisch, High-Ticket-Artikel zu verkaufen”, sagte er und bemerkte, dass das Unternehmen Möbel und Verlobungsringe verkauft hat, manchmal für Hunderttausende von Dollar. “Ich habe das Gefühl, dass dies eine Art Experiment mit High-Ticket-Artikeln ist und sieht, was sich verkaufen wird.”

Herr Lipsman fügte hinzu, dass dies ein Zeichen dafür sein könnte, dass sich das Unternehmen auf einen wachsenden Markt ausrichtet. “Sport-Erinnerungsstücke sind im letzten Jahr in die Höhe geschossen”, sagte er.

In der Tat erreichte der PWCC 500, ein Index der Top 500-Sammelkarten, im Juni ein Rekordhoch und ist weiter gestiegen. Experten führen dies auf die Kaufkraft von Babyboomern, den Markteintritt von Millennials und das zunehmende Interesse von Ausländern zurück, berichtete das Wall Street Journal.

Costco lehnte es ab, zu diesem Artikel einen Kommentar abzugeben.

Baseball-Sammlerstücke erzielen oft die höchsten Preise. Ein Ruth-Trikot wurde 2019 bei einer Auktion für 5,67 Millionen US-Dollar verkauft.

Neben 27 weiteren Artikeln im Bereich „Sportmemorabilien“ auf seiner Website verkauft Costco auch eine von Ty Cobb signierte Fledermaus. Die Fledermaus, die Costco als “extrem selten und sehr wertvoll” beschreibt, trägt die Aufschrift “Mit freundlichen Grüßen” und datiert “14.03.49”. Der Preis liegt bei 160.000 US-Dollar.

Beide Verkäufe enden am 31. Januar.

Eine Seite aus dem Darlehensantrag des Paycheck Protection Program im Mai.Anerkennung…Lucas Jackson / Reuters

Die losen Regeln des Paycheck Protection Program ermöglichten es praktisch jedem kleinen Unternehmen oder Unternehmen in Amerika, sich für ein staatlich unterstütztes Hilfsdarlehen zu qualifizieren. Bürger und Aktivistengruppen haben Tausende von Empfängern kritisiert, die sie für unwürdig hielten, darunter wohlhabende Anwälte, Politiker und politische Lobbyisten, börsennotierte Unternehmen und Unternehmen, die von der Regierung untersucht werden.

Jetzt macht eine Interessenvertretung, die Online-Fehlinformationen bekämpft, auf eine Gruppe von Kreditempfängern aufmerksam, die sie beunruhigt: Anti-Impfstoff-Aktivisten.

Sechs Organisationen, die die Sicherheit von Impfstoffen in Frage gestellt und behauptet haben, Wissenschaftler hätten falsche Anrufe erhalten, erhielten nach Angaben der Small Business Administration, die das Programm verwaltet, insgesamt mehr als 1,1 Millionen US-Dollar. (Die Daten wurden letzten Monat aufgrund eines Gerichtsbeschlusses als Reaktion auf eine Klage der New York Times und anderer Nachrichtenorganisationen veröffentlicht.)

Die Gruppen, die die Darlehen erhalten haben, sind Children’s Health Defense, gegründet von Robert F. Kennedy Jr.; das Netzwerk für informierte Zustimmungsmaßnahmen; das Nationale Impfstoffinformationszentrum; Mercola.com Health Resources und Mercola Consulting Services, beide verbunden mit dem bekannten Impfstoffskeptiker Joseph Mercola; und das Tenpenny Integrative Medical Center, eine Arztpraxis von Dr. Sherri Tenpenny, einer Ärztin und Autorin, die sich gegen Impfstoffe ausspricht.

Die Kredite, die von Banken vergeben und von der Regierung unterstützt wurden, reichten von 72.500 USD an Dr. Tenpennys medizinisches Zentrum bis zu 335.000 USD an Mercola.com. Sie scheinen nicht gegen die Vorschriften der Small Business Administration zu verstoßen: PPP-Kredite standen allen kleinen Unternehmen oder gemeinnützigen Organisationen (im Allgemeinen mit 500 oder weniger Arbeitnehmern) zur Verfügung, die bescheinigen wollten, dass „die derzeitige wirtschaftliche Unsicherheit diese Kreditanfrage erforderlich macht“, um ihre fortgeführten Aktivitäten zu unterstützen .

Das Center for Countering Digital Hate, eine in London ansässige Interessenvertretung, deckte die Kredite auf und alarmierte die Washington Post, die erstmals darüber berichtete. Imran Ahmed, der Geschäftsführer der Gruppe, nannte es „Bananen“, dass solche Gruppen Anspruch auf steuerfinanzierte Hilfsgelder hatten.

“Hier gibt es eine Anomalie”, sagte Herr Ahmed. “Die PPP wurde benötigt, um den wirtschaftlichen Schock von Covid zu bewältigen, und die Anti-Vaxxer hemmen unsere Fähigkeit, Covid zu besiegen und darüber hinwegzukommen, grundlegend.”

Barbara Loe Fisher, die Präsidentin des Nationalen Impfstoffinformationszentrums in Sterling, Virginia, sagte per E-Mail, dass ihre Gruppe den Kredit beantragt habe, „als sich herausstellte, dass Sperren und soziale Distanzierungsbeschränkungen die Arbeitsplatzsicherheit einiger unserer Mitarbeiter direkt bedrohten und gefährdete die weitere Vermietung unseres Hauptsitzes in Virginia. “ Die Gruppe nutzte das Darlehen, um alle 21 Arbeiter zu behalten, sagte sie.

Frau Fisher bestritt die Vorstellung, dass ihre Gruppe gegen Impfstoffe ist. Die Organisation “gibt keine Empfehlungen zur Verwendung von Impfstoffen ab und ermutigt alle, sich umfassend über die Risiken und Komplikationen von Infektionskrankheiten und Impfstoffen zu informieren”, sagte sie.

Das Paycheck Protection Program verteilte von April bis August 523 Milliarden US-Dollar an mehr als fünf Millionen kleine Unternehmen, um ihnen dabei zu helfen, die durch die Coronavirus-Pandemie verursachten Stillstände und anderen wirtschaftlichen Schocks zu ertragen. Solange die Empfänger das meiste Geld verwenden, um ihre Arbeitnehmer zu bezahlen und andere Regeln einzuhalten, können die Kredite von der US-Regierung vollständig vergeben und zurückgezahlt werden.

Categories
Business

US Inventory Market and Financial system Tracker: Reside Updates

Here’s what you need to know:

Credit…Ruth Fremson/The New York Times

Consumer spending fell for the third-consecutive month in December, confirming what many economists had predicted would be a disappointing holiday season for many retailers.

Retail sales fell 0.7 percent last month, the Commerce Department said on Friday, as the economic recovery showed signs of stalling, stimulus money ran dry and virus cases surged across the country, prompting shoppers to avoid stores.

The decline also likely reflects how retailers’ strategies of offering holiday deals early this fall spread out the holiday shopping season across months, and may have dampened sales closer to Christmas.

The drop was widespread across many categories, including electronics, building supplies and food and beverage stores, which had been areas of strong spending last spring and summer. Spending at restaurants in December was also down amid a rise in new cases and new closures.

The Commerce Department also revised its November sales data, showing a decline of 1.4 percent, larger than the 1.1 percent drop it had previously reported.

The three months of weak consumer spending, which comprises 70 percent of the U.S. economy, adds new urgency to the $1.9 trillion economic rescue package that the incoming Biden administration proposed this week, which increase direct payments to individuals by $1,400.

JPMorgan Chase reported earnings of just over $12 billion, although the increase was attributed mostly to the newly freed funds.Credit…Justin Lane/EPA, via Shutterstock

Optimism is taking hold among the country’s largest banks. With vaccines beginning to be administered to the most vulnerable Americans and a new round of economic stimulus on the way, banks on Friday revealed that they had begun to pare back the enormous reserves they had socked away in case of an economic disaster.

“Thank God for the vaccine, folks” JPmorgan’s chief executive, Jamie Dimon, said on a call with reporters on Friday.

JPMorgan Chase, the largest U.S. bank, ended 2020 on a strong note, releasing $2.9 billion from an emergency pool of money, which helped push its profit 42 percent higher in the fourth quarter.

Citigroup and Wells Fargo also reported loosening their rainy-day funds.

Citigroup said on Friday that it had released nearly $1.5 billion, but it was not enough to raise its quarterly earnings above what it earned in the same period in 2019. The bank reported a profit of $4.6 billion on revenue of $16.5 billion. Both its revenue and its earnings were lower than they were a year earlier.

And Wells Fargo released $757 million from its reserve pool, but it said the change was driven by the sale of its student loan business rather than any reassessment of its economic outlook. The bank earned $3 billion in the fourth quarter, just slightly more than it did in the same quarter in 2019, even though its revenue fell to nearly $18 billion from $19.8 billion.

JPMorgan revealed its reserve release in a report on its fourth-quarter financial results on Friday, when it reported earnings of just over $12 billion, although the increase, from the same period last year, was attributed mostly to the newly freed funds. The bank’s revenue was 3 percent higher, at $30 billion, compared with the same quarter a year earlier.

Regular recalculations of how much money the bank would need in the event of a disaster had led to the release, Mr. Dimon said in a statement accompanying the bank’s results, but he added that there was still plenty more saved up in case a downturn occurred.

“While positive vaccine and stimulus developments contributed to these reserve releases this quarter, our credit reserves of over $30 billion continue to reflect significant near-term economic uncertainty and will allow us to withstand an economic environment far worse than the current base forecasts by most economists,” he said.

The results showed that JPMorgan’s retail customers have been buying houses and cars. Mortgages and auto loans rose 20 percent compared with a year earlier. The bank’s profit from stock trading jumped 32 percent, while earnings from trading in bonds, currencies, commodities and other products rose 15 percent from the same period a year earlier.

Citi’s earnings were hit by reduced activity by its credit card users around the world. Deposits grew in its global bank by 19 percent, but the amount it earned from card usage declined, sending overall revenue 14 percent lower. On Wall Street, Citi bested its performance a year earlier. Stock trading earnings rose 57 percent, while earnings from trading in bonds and other products increased 7 percent.

Wells Fargo’s chief executive, Charles W. Scharf, said the bank’s results, which showed significant expenses that cut into its ability to earn profits, reflected its efforts to move on from its past abusive practices. The bank has had to revamp how it monitors its operations to identify illegal or harmful activities, and has plowed significant sums into the overhaul.

“We are making progress,” Mr. Scharf said in a statement accompanying the financial results. He noted that the improved economic outlook offered an additional source of hope.

“With a more consistent, broad-based recovery, and as we continue to press forward with our agenda, we expect you will see that this franchise is capable of much more,” Mr. Scharf said.

PepsiCo joined companies that have suspended all political donations after the attack on the Capitol.Credit…Joshua Bright for The New York Times

PepsiCo announced on Thursday that it was suspending all donations from its corporate political action committee, adding to the list of dozens of companies that have come out with some sort of halt on political giving since last week’s violence at the Capitol.

“The peaceful transfer of power is a keystone of the American democratic process, and we categorically denounce the violence last week that attempted to disrupt this process,” a representative said. “In light of these events, we are suspending all political contributions while conducting a full review to ensure they align with our company’s values and our shared vision going forward.”

Pepsi’s PAC spent $140,000 this election cycle, according to the Center for Responsive Politics.

In pausing all donations, Pepsi is not going as far as companies like Walmart and Marriott, which halted donations specifically to the 147 Republicans in Congress who objected to certifying the presidential election result. It joins companies like rival Coca-Cola, along with the energy giant BP and the consulting firm EY, formerly Ernst & Young, in halting donations across the board.

The brokerage firm Charles Schwab said this week that it was shutting down its PAC, citing the divisive political environment.

“I’ve never seen the corporate PAC world react to something this uniformly and strongly,” said Kenneth Gross, a partner at the law firm Skadden who focuses on campaign finance law.

“I think there’s a sense of, ‘Let’s not overreact — but we need to do something,’” he said.

Credit…J. Scott Applewhite/Associated Press

A lawmaker in Washington is asking big banks and other financial services companies to stop processing financial transactions for people and organizations that participated in last week’s attack on the United States Capitol.

Representative Emanuel Cleaver, a Missouri Democrat who serves on the House Financial Services Committee and is chairman of its subcommittee on national security, announced on Thursday that he had written to a trade group, the Electronic Transaction Association, to request the freeze. He also asked the group, which represents companies like Visa, JPMorgan Chase and Square, to immediately stop doing business with anyone who based fund-raising campaigns off the Jan. 6 attack.

“Far-right, white-nationalist and associated domestic terror organizations pose an imminent threat to the national security of the United States and our financial system,” Mr. Cleaver wrote in a letter on Tuesday to the group’s leaders.

“Every effort should be made to identify all terror suspects involved in the attack, prevent the facilitation of further criminal activity, and to disrupt their illicit networks.”

Mr. Cleaver said that several groups, including the Proud Boys, the Boogaloo Bois and the Sons of Liberty, which had been documented as participants in the attack, had already been cut off from many mainstream fund-raising platforms, but were still using “intermediary organizations with questionable terms of service” that might in turn be doing banking and payments business with mainstream companies. He asked that the association’s members assess their “formal and informal relationships” with the groups and work to cut them off He also asked that the group respond to his request by Friday.

“We received the chairman’s letter and are preparing our response on how the payments industry is addressing illegal activity that occurred last week,” Scott Talbott, a lobbyist for the group, said in an email on Thursday.

IBM’s recommendations for government policy changes were released in response to the violence at the Capitol last week.Credit…Rick Wilking/Reuters

IBM announced a series of recommendations for government policy changes on Friday in response to last week’s riot at the Capitol. They include clearer guidance around presidential transitions, stricter rules on financial disclosures for office holders and more.

The tech giant’s advocacy is noteworthy because these issues aren’t related directly to its business and they’re not backed by a company political action committee. IBM has forbidden corporate political donations for more than a century.

“What companies should be thinking about is policy reforms, not PAC checks,” Christopher Padilla, IBM’s vice president of government and regulatory affairs, wrote on the company’s policy blog. “Rather than just suspending PAC contributions as a signal-sending exercise, what makes more sense for us, since we don’t do political contributions, is to try to reform government in a way that will prevent some of this stuff from happening in the future,” he told the DealBook newsletter.

Despite eschewing direct donations, IBM is an active lobbyist and hasn’t shied from hiring people with political ties, including most recently Gary Cohn, President Trump’s former economic adviser, as vice chairman. “IBM looks for people who bring experience and qualifications and doesn’t really look at what their political background is,” Mr. Padilla said.

Employees and shareholders expect companies to be “responsible players, Mr. Padilla said, “and that’s what we’re trying to do.” IBM employees had pressed the company to speak out following the violence in the Capitol, much like they did after George Floyd’s killing last year. Following Mr. Floyd’s death, the company called for changes to police policy and said it would get out of the facial recognition business.

Britain’s economy declined in November, the earliest signal that the country might be heading for its second round of contraction within months — a double-dip recession — because of the severity of the second wave of the pandemic and the restrictions that have been imposed on businesses and the population.

Gross domestic product dropped 2.6 percent in November, when a second lockdown was imposed across England, after six consecutive months of economic growth, according to the Office for National Statistics.

That said, the impact of this second lockdown was much less economically severe than the closures last spring, when the economy fell by more than 18 percent. The difference this time was, in part, because the restrictions were looser and more businesses had adapted: schools remained open, more people could go to their workplaces and many retail and hospitality businesses had added delivery and pickup services. The construction and manufacturing sectors of the economy were the only ones that grew in November, but the overall decline was smaller than most economists had forecast.

Still, the economic recovery that many thought would come once vaccinations began has been postponed, at least until the spring. Much of Britain is under a third lockdown (longer and stricter than the second), as a more contagious variant of the virus has strained the health care system, and economists are forecasting the economy to contract in the first quarter of 2021.

Trade disruptions created by Britain’s exit from the European Union’s single market and customs union, including delays, lost business, and the halting of some services, is also expected to weigh on the economy in the first few months of the year.

“We should expect the economy to get worse before it gets better,” Rishi Sunak, the chancellor of the Exchequer, said in Parliament on Monday. The next day, Andrew Bailey, the governor of the central bank, said the economy was facing its “darkest hour” and that it was in “a very difficult period.”

A Disneyland parking lot was used as a vaccination site on Wednesday. The resort has been closed for 10 months because of the pandemic.Credit…Mario Tama/Getty Images

Disneyland, which has been closed for 10 months because of California’s strict approach to coronavirus safety, alerted annual passholders that it was ending the popular program, which it started offering to hard-core customers in the 1980s.

The Walt Disney Company said it would begin issuing prorated refunds in the coming days. Annual passes to Disneyland were most recently $419 to $1,449, depending on access and perks.

Disney declined to say how many people were enrolled. The Orange County Register estimated in 2018 that Disneyland sold “hundreds of thousands” annual passes a year.

In part, the program is ending because Disney expects pent-up demand — from passholders and day guests alike — to far outstrip capacity when the attractions eventually reopen. Walt Disney World in Florida returned in July and has been running at 35 percent capacity since the fall.

In a letter to passholders, Ken Potrock, president of the Disneyland Resort, cited uncertainty about the duration of the pandemic and “expected restrictions around the reopening of our theme parks.”

“We plan to use this time while we remain closed to develop new membership offerings,” he said. He gave no update on when Disneyland might reopen.

Disneyland typically attracts more than 18 million visitors per year; an adjacent Disney theme park in Anaheim, Calif., draws 10 million. Total revenue in 2019 stood at roughly $3.8 billion, according to analysts.

  • Stocks drifted lower on Friday, as the initial enthusiasm about President-elect Joseph R. Biden Jr.’s $1.9 trillion spending plan to address the impact of the pandemic gave way to some second thoughts about the cost of all that borrowing.

  • Still, as has been the case all week, the moves were relatively small. The S&P 500 fell less than half a percent in early trading.

  • Mr. Biden said Thursday night that his plan would address the “real pain overwhelming the real economy,” with money to quicken the rollout of the coronavirus vaccine, help for state and local governments to address budget shortfalls, more generous jobless benefits and direct payments of $1,400 to individuals.

  • As virus cases keep climbing in many parts of the world, anticipation of Mr. Biden’s spending plans have helped keep stock benchmarks in the United States close to record levels.

  • Those gains have come even as fresh data shows the economic damage being done by the pandemic. On Thursday, it was that more than one million people in the United States filed for unemployment benefits last week. On Friday, the Commerce Department said retail sales fell for a third-straight month in December, despite the holiday shopping season.

  • But investors are also looking closely at the enormous amount of borrowing that will be necessary to finance Mr. Biden’s proposal. Already, Treasury bonds have sunk in value, and their yields risen. As yields inch up, borrowing costs will rise. That has also raised concerns about tax increases to help underwrite Mr. Biden’s proposal.

  • The benchmark Stoxx Europe 600 was 0.6 percent lower on Friday, and the FTSE 100 in Britain lost 0.7 percent.

  • Oil prices stumbled, with Brent crude, the international benchmark, falling 1.6 percent, and West Texas Intermediate down 1.4 percent.

Fannie Mae and Freddie Mac effectively guarantee roughly half of all mortgages in the United States against default.Credit…Steven Senne/Associated Press

The Treasury Department said it would allow Fannie Mae and Freddie Mac, the two government-controlled mortgage finance firms, to retain more of their profits to guard against future risks in the housing market.

The plan is part of an effort to enable Fannie and Freddie to leave government control — although neither the Treasury nor the Federal Housing Finance Agency, which regulates both firms, expect that to happen anytime soon.

Both firms have been in a government conservatorship since September 2008, when Treasury officials in the Bush administration had to step in with a $187 billion bailout in the early days of the financial crisis. Today, they effectively guarantee roughly half of all mortgages in the United States against default, which helps keep a lid on the interest rate for a traditional 30-year mortgage.

The Treasury and the F.H.F.A. said in a joint statement that the conservatorship was not meant to be indefinite and that federal officials had developed a “blueprint” for privatizing the firms. That blueprint foresees Fannie and Freddie both being able to sell stock to raise capital at some later date.

But the conservatorship, which has already spanned parts of three presidencies, will now be overseen by the Biden administration. That means a new Treasury secretary, and it may soon mean a new F.H.F.A. director.

Mark Calabria, who took over the agency in 2019, has long favored a plan to end the conservatorship. But a case pending before the Supreme Court could allow the president to replace him without waiting for Mr. Calabria’s five-year term to expire.

Categories
Business

World Enterprise Information: Dwell Market Updates

Here’s what you need to know:

Credit…Bryan Denton for The New York Times

New claims for state unemployment benefits sharply increased last week as the resurgent coronavirus pandemic continued to batter the economy.

A total of 1.15 million workers filed initial claims for state unemployment benefits during the first full week of the new year, the Labor Department said. Another 284,000 claims were filed for Pandemic Unemployment Assistance, an emergency federal program for freelancers, part-time workers and others normally ineligible for state jobless benefits. Neither figure is seasonally adjusted. On a seasonally adjusted basis, new state claims totaled 965,000.

Economists had been bracing for a fresh wave of claims as the virus batters the service industry. The government reported last week that the economy shed 140,000 jobs in December, the first drop in employment since last spring’s steep losses, with restaurants, bars and hotels recording steep losses.

“We know that the pandemic is worsening, and with the jobs report last Friday, we can see that we’re in a deep economic hole and digging in the wrong direction,” said Daniel Zhao, senior economist with the career site Glassdoor.

The labor market has rebounded somewhat since the initial coronavirus wave in the spring. But of the 22 million jobs that disappeared, nearly 10 million remain lost.

“Compared to then, we are doing better,” said AnnElizabeth Konkel, an economist at the career site Indeed, referring to the spring. “But compared to the pre-Covid era, we still have so far to go.”

Still, economists and analysts see better times ahead. As more people are vaccinated, cases will begin to fall, which will ease restrictions on businesses and could lead to a resurgence in consumer activity, helping to revive the service industry.

Perhaps more immediately, President-elect Joseph R. Biden Jr. has pledged to put forward a stimulus package that would provide relief to individuals, small businesses, students, schools and local governments.

“It is a sad byproduct of the current political climate that some now resort to using questionable tactics and misleading claims to attack companies like ours,” Charles Schwab said in a statement on Wednesday.Credit…Steve Dykes/Getty Images

Charles Schwab will shut down its political action committee, perhaps the most significant move among companies rethinking their political donations after last week’s violence in the Capitol.

Schwab said it found the current “hyperpartisan” environment too complex to navigate without risk of distraction. “We believe a clear and apolitical position is in the best interest of our clients, employees, stockholders and the communities in which we operate,” the company said on Wednesday.

The company’s PAC will no longer take contributions from employees or make financial contributions to lawmakers. It will donate the leftover funds to Boys & Girls Clubs of America and to historically Black colleges and universities, organizations that Charles Schwab has supported in the past.

The Lincoln Project, a group of anti-Trump conservatives, had featured Charles Schwab in a recent campaign highlighting companies that donated to President Trump or to Republicans in Congress who voted against certifying President-elect Joseph R. Biden Jr.’s victory.

“It is a sad byproduct of the current political climate that some now resort to using questionable tactics and misleading claims to attack companies like ours,” the statement said, an apparent reference to the campaign. “It is unfair to knowingly blur the lines between the actions of a publicly held corporation and those of individuals who work or have worked for the company.”

The company’s billionaire chairman, Charles R. Schwab, has personally given millions to pro-Trump and Republican groups, far more than the company’s PAC. “Every individual in our firm has a right to their own, individual political beliefs and we respect that right,” the company said in its statement.

After the riot at the Capitol, a number of companies, including Goldman Sachs and JPMorgan Chase, paused corporate giving. Others, such as Walmart and Marriott, have said they will halt donations only to the 147 Republicans in Congress who objected to certifying the presidential election result. In a survey of 40 C.E.O.s from major corporations at a meeting on Wednesday held by Yale’s Jeffrey Sonnenfeld yesterday, nearly 60 percent said that companies shouldn’t stop all political donations.

Charles Schwab said in its statement that it was confident its “voice will still be heard in Washington” even without a PAC, noting that it is a “major employer in a dozen metropolitan centers.” Other companies that do not have a PAC, like IBM, have said they do not think a lack of one puts them at a political disadvantage.

Luca de Meo, the chief executive of Renault, said the carmaker would go from “simply surviving the storm to putting the company in better shape than it has ever been before.”Credit…Benoit Tessier/Reuters

The French carmaker Renault, saying it does not expect auto sales to bounce back quickly from the pandemic, announced a plan on Thursday to survive and make money while selling fewer cars and shifting emphasis to electric vehicles.

The plan presented by Luca de Meo, who took over as Renault’s chief executive in July, is a sharp departure from the strategy pursued by Carlos Ghosn, the former chief executive of Renault’s alliance with Japanese automakers Nissan and Mitsubishi.

Mr. de Meo implicitly criticized Mr. Ghosn during an online briefing for journalists and analysts on Thursday, saying that Renault had “too many layers, too many silos, too many shared responsibilities. All that mattered were size and volumes.”

Under the new plan, Renault will cut production capacity, reduce the number of models it offers and simplify manufacturing by increasing the number of parts shared among vehicles. For example, all gasoline vehicles will use the same basic engine.

Mr. de Meo said his aim was to avoid job cuts beyond those already planned. The French government is a big shareholder in the company, and has resisted job cuts in the past.

“We are also here to protect the work of people,” Mr. de Meo told reporters during a conference call. “We have so many opportunities to get rid of other costs.”

During a brutal period for the auto industry, Renault was among the hardest hit. The company said Tuesday that sales fell more than 20 percent in 2020, to less than three million vehicles.

“We are not betting on a strong recovery,” Clotilde Delbos, the Renault chief financial officer, said during the presentation. “Cost reduction will be the strongest lever for our improvement.”

Electric cars are among Renault’s few bright spots. Sales of the Zoe, a two-door battery powered hatchback, doubled in 2020 despite the pandemic. The Zoe displaced the Tesla Model 3 as the best-selling electric car in Europe. However, at around 20,000 euros after subsidies, or $24,000, the Zoe costs half as much as the Model 3 and is likely to be less profitable.

Mr. de Meo mentioned Renault’s troubled but essential alliance with Japanese carmakers Nissan and Mitsubishi only in passing. But at the end of the video presentation, Makoto Uchida, the chief executive of Nissan, made an appearance to say that he endorsed the Renault plan.

“I’m happy to see Renault back on the path to profitability,” Mr. Uchida said.

  • Wall Street was poised for a small gain on Thursday and shares in Europe were modestly higher as investors anticipated President-elect Joseph R. Biden Jr.’s announcement of a multitrillion-dollar spending plan to counter the coronavirus’s impact on the U.S. economy.

  • Mr. Biden’s plan is expected to have an initial focus on expanding the country’s vaccination program and virus testing capacity, Jim Tankersley reports.

  • Mr. Biden is to provide details in a speech Thursday evening in Delaware, hours after the latest tally of weekly unemployment claims showed a sharp rise in newly unemployed workers in the United States. Hiring remains dreadful in the U.S. economy, with employers recording a net loss of 140,000 jobs in December. Last spring, as the pandemic arrived in the United States, 22 million jobs disappeared. Nearly 10 million remain lost.

  • European markets were gaining, with the benchmark Stoxx Europe 600 up 0.5 percent in late-morning trading. The CAC 40 in France was 0.3 percent higher and the DAX in Germany gained 0.5 percent.

  • The latest data from China shows a humming economy. Exports rose 18 percent in December from a year earlier, reflecting global demand for work-from-home devices. Imports also increased, 6.5 percent from a year earlier, a sign of a strengthening consumer economy inside the country.

  • China will probably be the only major economy to have grown in 2020. Germany’s economy, usually regarded as Europe’s strongest, reported a 5 percent contraction in 2020.

Hong Kong police officers carrying a flag in July to warn protesters about actions that violate the new national security law.Credit…Lam Yik Fei for The New York Times

Hong Kong Broadband Network said in a statement on Thursday that it had taken steps to block access to a website that featured the personal information of police officers, the first full website censorship under Hong Kong’s expansive national security law.

The site, which featured personal information about the police and pro-establishment figures in the Chinese city, first faced partial blocks in Hong Kong on Jan. 6. A technical analysis by The New York Times showed the territory’s internet service providers appeared to be interfering with access to the site.

Hong Kong Broadband, one of the city’s largest internet service providers, said it cut access to the site on Jan. 13 “in compliance with the requirement issued under the national security law.”

In the past, Hong Kong’s government had a separate process, which included issuing court orders, to go after content deemed illegal online. But the purge of the website happened without any warning or official legal notification, according to Naomi Chan, the 18-year-old high-school student who created the site.

The disruption raises the prospect that Hong Kong, long a bastion of internet freedom on the border with China’s closely censored internet, could fall under the shadow of the mainland’s Great Firewall, which blocks foreign internet sites like Google and Facebook.

Since the national security law was put in place over the summer, the police have turned to harsh digital investigative tactics reminiscent of those used by security forces in China, including hanging cameras outside the doors of politicians and forcing arrestees to give them access to smartphones.

The law was prompted by sometimes violent antigovernment protests in 2019, which alarmed Communist Party leaders in Beijing. The Chinese government has since used the law to tighten its grip on the former British colony, which operates under its own laws and has long enjoyed some degree of autonomy, including freedom of speech.

A mock-up from the Commons Project of what a digital vaccine credential might look like.

Airlines, workplaces and sports stadiums may soon require people to show their coronavirus vaccination status on their smartphones before they can enter.

A coalition of leading technology companies, health organizations and nonprofit groups — including Microsoft, Oracle, Salesforce, Cerner, Epic Systems and the Mayo Clinic — announced on Thursday morning that they were developing technology standards to enable consumers to obtain and share their immunization records through health passport apps.

“For some period of time, most all of us are going to have to demonstrate either negative Covid-19 testing or an up-to-date vaccination status to go about the normal routines of our lives,” said Dr. Brad Perkins, the chief medical officer at the Commons Project Foundation, a nonprofit organization in Geneva that is a member of the vaccine credential initiative.

That will happen, Dr. Perkins added, “whether it’s getting on an airplane and going to a different country, whether it’s going to work, to school, to the grocery store, to live concerts or sporting events.”

Vaccine passport apps could fill a significant need for airlines, employers and other businesses.

In the United States, the federal government has developed paper cards that remind people who receive coronavirus vaccinations of their vaccine manufacturer, batch number and date of inoculation. But there is no federal system that consumers can use to get easy access to their immunization records online and establish their vaccination status for work or travel.

A few airlines, including United Airlines and JetBlue, are already trying out Common Pass, a health passport app from the Commons Project. The app enables passengers to retrieve their coronavirus test results from their health providers and then gives them a confirmation code allowing them to board certain international flights. The vaccination credentialing system would work similarly.

Most applicants for Paycheck Protection Program loans can borrow up to 2.5 times their monthly payroll. Some lodging and food services businesses can borrow 3.5 times their payroll.Credit…Mohamed Sadek for The New York Times

After giving small lenders a head start, the Paycheck Protection Program will open for all applicants on Tuesday, the Treasury Department said on Wednesday.

The stimulus package passed last month included $284 billion in funding to restart the small-business relief effort, which made $523 billion in loans last year to 5.2 million recipients. The new funding will be available both to first-time applicants and to some returning borrowers.

Borrowers seeking a second loan will need to demonstrate a 25 percent drop in gross receipts between comparable quarters in 2019 and 2020. Second loans will also be limited to companies with 300 or fewer workers, and the amounts will be capped at $2 million.

First- and second-time applicants can borrow up to 2.5 times their monthly payroll. (Those in the lodging and food service business who are seeking a second loan can borrow 3.5 times their payroll, a concession to the devastation those industries have faced.) The loans — which are made by banks but backed by the federal government — can be forgiven if borrowers spend least 60 percent of the money paying workers and use the rest on other allowable expenses.

Starting Tuesday, loans will be available from thousands of lenders, including national banks like Bank of America, JPMorgan Chase and Wells Fargo; most regional banks; and financial technology companies like PayPal.

Some smaller lenders have already gotten started. Community Development Financial Institutions, Minority Depository Institutions and Certified Development Companies — specially designated lenders that focus on underserved populations, including Black- and minority-owned businesses — were allowed to start taking loan applications this week. And on Friday, lenders with $1 billion or less in assets will be allowed to start submitting applications.

The Small Business Administration, which manages the program, has not said how many applications it has already received. Unlike the first round, when the agency approved loans instantaneously, approvals will now take at least a day because of new fraud safeguards the agency has adopted.

Brian Brooks, who warned that requiring customers to wear masks during the pandemic could lead to more bank robberies, is stepping down as the country’s top bank regulator, according to an announcement on Wednesday.

Mr. Brooks has served as acting comptroller of the currency since late May. As of Thursday night, Blake Paulson, a career employee of the Office of the Comptroller of the Currency, will take over.

“It has been an honor to serve the United States as acting comptroller,” Mr. Brooks said in a statement. “I am extremely proud of what we have accomplished.”

In the months after he took over the agency following the departure of Joseph Otting, Mr. Brooks rushed to enact a number of changes, including one that would prohibit banks from cutting off credit to the fossil fuel industry and another establishing guidelines for how banks could measure their activities in low-income and minority neighborhoods as required under an anti-redlining law.

Until recently, Mr. Brooks was in line for his job to be made permanent. Despite having already lost the 2020 election, President Trump said on Nov. 17 that he intended to nominate Mr. Brooks to become the comptroller for a five-year term.

But the chances for Mr. Brooks to be confirmed during the lame-duck period of Mr. Trump’s presidency were low, and the Georgia runoff elections have given Democrats control of both chambers of Congress.

Advisers to President-elect Joseph R. Biden Jr. had already begun vetting candidates to replace him after Mr. Biden takes over next week.

Erna Solberg, the prime minister of Norway, on a tour of New York Harbor in 2019 to discuss Equinor’s wind farm project for New York State. This week Equinor and BP were chosen for two more wind projects.Credit…Gabriela Bhaskar for The New York Times

Gov. Andrew M. Cuomo of New York has picked two European giants, Norway’s Equinor and BP, to supply the state with clean electricity from wind turbines planted on two large tracts in the Atlantic.

Offshore wind developers are attracted to the East Coast of the United States because of the availability of shallow water sites suitable for wind farms and the proximity of major electric power consuming centers like New York and Boston.

Until recently, offshore wind was largely a European industry but it has gained interest elsewhere as larger turbines and other innovations have brought down costs.

The deal will bring investment of nearly $9 billion, according to a news release from the state government. One of the sites is 20 miles off the south shore of Long Island, and the other is about the same distance south of Nantucket. The projects are expected to produce power late in this decade.

Equinor had already reached a $3 billion offshore power deal with New York in 2019. That wind farm plus the two just announced will have generating capacity sufficient to power 1.8 million homes.

For European oil companies like Equinor, the former Statoil, offshore wind projects provide opportunities to invest billions of dollars to advance their agenda of shifting away from oil and gas toward cleaner energy. Equinor moved early to acquire rights to ocean acreage off the United States and last year agreed to sell a 50 percent stake in its U.S. business to BP for $1.1 billion.

Equinor, other companies and the state will invest $644 million in a port in South Brooklyn and other facilities for constructing and servicing the wind farms, according to the news release.

Categories
Business

Inventory Markets Stay Calm, Regardless of Turmoil Elsewhere: Reside Updates

Recognition…Hunter Kerhart for the New York Times

Hoping to catch up with the growing demand for fast delivery of goods amid the pandemic, airports are building new hubs for air freight companies.

Since the pandemic began almost a year ago, 15,000 fewer people are arriving and departing from the Cincinnati / Northern Kentucky International Airport, known as CVG, every day. However, the four runways carry a record amount of air cargo – almost 4,000 tons per day. Keith Schneider writes for the New York Times that a new construction project will become the center of Amazon Air’s national air transport network.

The new facility, which is located on 640 hectares along the southern border of the airport, is due to open in the fall. It will offer a 798,000 square meter sorting center, a seven-story parking structure and acres of freshly poured concrete for 20 aircraft.

The new building is a signal of Amazon’s influence as the largest online retailer and its commitment to fast delivery. Both have helped create a wave of air cargo construction at airports across the United States.

  • FedEx, the world’s largest air freight company, has just opened a 50-acre project at Ontario International Airport in Southern California.

  • Ted Stevens Anchorage International Airport, the second largest air cargo airport in the US after Memphis International Airport, is planning new facilities for cargo and parcel handling and sorting worth US $ 500 million.

  • Chicago Rockford International is building a 90,000 square foot cargo facility. As soon as the airport opens in spring, it will start another 100,000 square meter freight project for DB Schenker, Emery Air and Senator International.

“Freight traffic is now driving new demand in airports,” said Rex J. Edwards, industry analyst and vice president of Campbell-Hill Aviation Group, a consulting firm in Northern Virginia. “That’s the development of business now.”

Recognition…Nicholas Albrecht for the New York Times

Of the existing 18.5 million Bitcoin, around 20 percent – currently valued at around $ 140 billion – appear to be in lost or otherwise stranded wallets, according to cryptocurrency data company Chainalysis. Wallet Recovery Services, a company that helps find lost digital keys, said it received 70 requests a day from people seeking help recovering their wealth, three times as many as a month ago.

The unusual nature of cryptocurrency has left many people locked out of their Bitcoin fortune due to lost or forgotten keys. They had to watch helplessly as the price rose and fell sharply and could not benefit from their digital wealth.

Bitcoin owners locked out of their wallets speak of endless days and nights of frustration as they tried to gain access to their wealth. Many have owned the coins since Bitcoin’s inception a decade ago when no one trusted that the tokens would be worth anything.

The dilemma is a stark reminder of Bitcoin’s unusual technological foundations that set it apart from ordinary money and give it some of its most vaunted – and riskiest – properties. With traditional bank accounts and online wallets, banks like Wells Fargo and other financial firms like PayPal can provide users with the passwords for their accounts or reset lost passwords.

Bitcoin doesn’t have a company that provides or stores passwords. However, the structure of this system did not take into account how difficult it is for people to remember and secure their passwords.

“Even sophisticated investors have been unable to manage private keys at all,” said Diogo Monica, co-founder of a start-up called Anchorage, which helps companies manage the security of cryptocurrencies. Mr Monica founded the company in 2017 after helping a hedge fund regain access to one of their Bitcoin wallets.

Categories
World News

Covid-19 Vaccine, Instances Reside Updates: The Newest International Information

Here’s what you need to know:

Credit…Christopher Occhicone for The New York Times

The Trump administration, in a major policy shift aimed at accelerating lagging distribution of the coronavirus vaccine, announced on Tuesday that it would release all available doses and instructed states to immediately begin vaccinating every American 65 and older, as well as tens of millions of adults with health conditions that put them at higher risk of dying from the virus.

The announcement, by Health Secretary Alex M. Azar II and other top federal health officials, came amid continuing complaints about the pace of the vaccine rollout. Mr. Azar warned that states will lose their allocations if they don’t use up doses quickly, and that starting in two weeks, how many each state receives will be based on the size of its population of people 65 and older.

Precisely how that will work is unclear; in two weeks, President-elect Joseph R. Biden Jr. will already have been sworn in as president. Mr. Azar said the incoming Biden administration would be briefed on the changes, though he added that Americans “operate with one government at a time, and this is the approach that we believe best fulfills the mission.”

The new distribution plan, first reported Tuesday morning by Axios, is a reversal for the administration, which had been holding back roughly half of its vaccine supply — millions of vials — to guarantee that second doses would be available. Mr. Azar said the administration always expected to make the shift when it was confident in the supply chain. Both vaccines authorized in the United States so far require two doses: 21 days apart for the one developed by Pfizer and BioNTech, and 28 days apart for the one from Moderna.

“This next phase reflects the urgency of the situation we face,” he said.

Just days ago, Mr. Azar and officials from Operation Warp Speed, the administration’s fast-track vaccine initiative, criticized aides to Mr. Biden for announcing a similar plan. Mr. Azar said at the time that releasing nearly all of the doses, as the Biden team proposed, would jeopardize the “system that manages the flow, to maximize the number of first doses, but knowing there will be a second dose available.”

He called any proposed changes an “untenable position.”

Health officials also recommend that the vaccines be given to all adults with pre-existing conditions that make them more likely to develop serious illness from the virus, such as diabetes, chronic lung or heart disease, high blood pressure and cancer. Before the change, the vaccines were largely being distributed to people in the highest-risk categories, including frontline health care workers and older people in nursing homes.

In addition to the eligibility changes, health officials are also adding more community centers and pharmacies to the list of places where people can be vaccinated.

Mr. Azar’s new directive threatens to create more confusion in states that had already articulated different plans for who should receive the vaccine next. As of Monday, about 9 million people have received at least one dose of a Covid-19 vaccine, according to the Centers for Disease Control and Prevention, far short of the federal government’s original goals. At least 151,000 people in the United States have been fully vaccinated, as of Jan. 8, according to a New York Times survey of all 50 states. More than 375,000 people have died related to the virus and in recent days, the number of daily deaths in the country has topped 4,000.

Instead of holding back vaccine doses all existing doses will be now sent to states to provide initial inoculations. Second doses are to be provided by new waves of manufacturing.

The idea of using existing vaccine supplies for first doses has raised objections from some health workers and researchers, who worry that frontloading shots will raise the risk that second injections will be delayed. Clinical studies testing the vaccines showed the shots were effective when administered in two-dose regimens on a strict schedule. And while some protection appears to kick in after the first shot, experts remain unsure of the extent of that protection, or how long it might last without the second dose to boost its effects.

But others have vocally advocated for explicit dose delays, arguing that more widely distributing the partial protection afforded by a single shot will save more lives in the meantime.

The new recommendations come after some states have already begun vaccinating people 65 and older, leading to long lines and confusion over how to get a shot. Health experts and officials have faced difficult choices as they decided which groups would be prioritized in the vaccine rollout. While the elderly have died of the virus at the highest rates, essential workers have borne the greatest risk of infection, and the category includes many poor people and people of color, who have suffered disproportionately high rates of infection and death.

Despite the bumpy rollout, Gov. Ron DeSantis of Florida, who prioritized people 65 and older from the start, said he believed making all older people eligible was always the right thing to do.

The initial guidelines “would have allowed a 20-year-old healthy worker to get a vaccine before a 74-year-old grandmother,” he said on Tuesday at a news conference in the sprawling retirement community of The Villages. “That does not recognize how this virus has affected elderly people.”

In New York, which began vaccinating people 75 and older and more essential workers this week, Gov. Andrew M. Cuomo said that the state will accept the new federal guidance to prioritize those 65 and older, though he criticized the administration for not clearly defining who should be considered “immunocompromised.”

The new guidance will make more than 7 million New Yorkers eligible for the vaccine, Mr. Cuomo said, though the state only receives 300,000 doses a week.

“The federal government didn’t give us an additional allocation,” he said. “At 300,000 per week, how do you effectively serve 7 million people, all of whom are now eligible, without any priority?”

New Yorkers 65 and older are immediately able to schedule appointments on the state’s website, according to Melissa DeRosa, a top Cuomo aide, who added that the state was working with the C.D.C. on who is considered immunocompromised.

New guidelines released on Monday by the Centers for Disease Control and Prevention now note that while people should get their second shots “as close to the recommended 3-week or 1-month interval as possible,” there is “no maximum interval between the first and second doses for either vaccine.”

The update perplexed experts, who said that while other, previously licensed vaccines that involve multiple doses can be administered months or even years apart, no evidence yet exists to clearly support this strategy for Covid-19. “They will need to back this up with data,” said Marion Pepper, an immunologist at the University of Washington.

Dr. Leana Wen, an emergency physician at the George Washington School of Public Health, echoed the call for an explanation. With skepticism of vaccines already hindering the rollout of some shots, “the last thing we want to do is give the impression that there are shortcuts being taken in the approval process.”

Health officials in Britain are now allowing intervals between the first and second doses of Pfizer’s vaccines of up to 12 weeks. Last week, the World Health Organization said the injections could be given up to six weeks apart. The agency’s Strategic Advisory Group of Experts on Immunization “considers the administration of both doses within 21 to 28 days to be necessary for optimal protection,” said Saad Omer, a vaccine expert at Yale University who helped draft the WHO’s position on the matter.

In response to queries about dose delays, representatives from Pfizer and Moderna have repeatedly pointed to the company’s clinical trials, which tested dosing regimens of two shots, separated by 21 days for Pfizer, and 28 days for Moderna.

“Two doses of the vaccine are required to provide the maximum protection against the disease, a vaccine efficacy of 95 percent,” Steven Danehy, a spokesman for Pfizer, said earlier this month. “There are no data to demonstrate that protection after the first dose is sustained after 21 days.”

United States › United StatesOn Jan. 11 14-day change
New cases 222,902 +37%
New deaths 2,048 +48%
World › WorldOn Jan. 11 14-day change
New cases 625,815 +32%
New deaths 10,307 +28%

Where cases per capita are
highest

A coronavirus testing site in a shopping center parking lot in southern Los Angeles last week.Credit…Philip Cheung for The New York Times

California is trying to speed up its vaccination efforts, which have lagged amid the state’s struggle with a weekslong deluge of coronavirus cases that has led to some of the most dire consequences in the country.

Emergency rooms have had to shut their doors to ambulances for hours at a time. Nearly one in 10 people has tested positive for the virus in Los Angeles County, the nation’s most populous. And a surge of hospitalizations has caused problems for the oxygen delivery and supply system used by medical facilities.

Over the past week, an average of 480 people daily have died of Covid-19 in the state, according to a New York Times database.

Gov. Gavin Newsom said on Monday that California would employ an “all-hands-on-deck approach” to ramp up vaccinations.

The approach includes transforming Dodger Stadium from one of the nation’s biggest and most visible Covid-19 testing sites into a mass vaccination center. Petco Park, where the San Diego Padres play, and the state fairgrounds in Sacramento are also being set up as vaccination sites, the governor said.

The Orange County board of supervisors said on Monday that the county’s first of five planned “super” vaccination sites would open this week at the Disneyland Resort in Anaheim, which has been closed for much of the pandemic. Vaccinations will be available by appointment to everyone in “Phase 1a,” which includes frontline health care workers, paramedics, dentists and pharmacists.

Los Angeles County opened vaccine eligibility to a wider group of health care workers on Monday, allowing workers in facilities like primary care clinics, Covid-19 testing centers, laboratories, pharmacies and dental offices, as well as those who work with people who are homeless, to be vaccinated.

Previously, workers in hospitals and long-term-care facilities were prioritized. But as The Los Angeles Times reported, large numbers of health care workers in Los Angeles and Riverside Counties were declining to be inoculated.

And relatively few people in California have gotten vaccine doses, compared with other places: Only 2 percent of the state’s population has received a vaccine, according to a New York Times database; 782,638 doses out of the more than 2.8 million that the state has received have been administered.

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Newsom Broadens Who Can Administer Vaccines

Gov. Gavin Newsom of California described an “all-hands-on-deck approach” that will allow a wider range of health care workers, including pharmacists and dentists, to administer the coronavirus vaccine.

We are sending an urgent call across the spectrum, our health care partners, our legislative partners, as well as labor and business partners up and down the state, this notion of an all-hands-on-deck approach to accelerate the equitable and safe distribution of vaccines. Again, we’re not losing sight of the issue of equity. We’re not losing sight of the imperative to prioritize the most vulnerable and the most essential. So that’s why we talk about our special efforts to vaccinate the vaccinators as part of an all hands on deck — the slide that represents the number of categories of individuals and groups that can currently vaccinate. And you can see the myriad of different registered nurses, physician assistants and the like. But we recognize more folks need to have that ability. And that’s why you recall a week or so ago, we talked about our efforts on pharmacists and pharm techs. We’re seeing more and more paramedics partnering with the counties. Local health officers are encouraging this and we are very supportive of EMTs as this local option for additional vaccinators to help administer these vaccines faster.

Video player loadingGov. Gavin Newsom of California described an “all-hands-on-deck approach” that will allow a wider range of health care workers, including pharmacists and dentists, to administer the coronavirus vaccine.CreditCredit…Alex Welsh for The New York Times

Dr. Mark Ghaly, California’s secretary of health and human services, said at a news conference on Monday that the state was working to distribute vaccines to those who need them and want them — without allowing wealthy people to cut the line.

Mr. Newsom said the state was allowing a broader range of workers to administer vaccines, including pharmacists and dentists, and was rolling out a public awareness campaign in 18 languages.

“People have said, ‘Well, what about sending in the National Guard?’” he said of the groups administering vaccines. “Well, we have the National Guard out there.”

He also said there were urgent efforts to “vaccinate the vaccinators.”

Representative Brad Schneider, Democrat of Illinois, speaking in Washington last year.Credit…Samuel Corum/Getty Images

Three Democratic members of Congress have tested positive for the coronavirus, and say they believe their infections are linked to their time spent in a secure location with colleagues who did not wear masks during last week’s siege of the U.S. Capitol.

Representative Brad Schneider, Democrat of Illinois, said he received a positive test result Tuesday morning after driving home to Illinois, and that he did not have symptoms. Like Representatives Bonnie Watson Coleman of New Jersey and Pramila Jayapal of Washington, two Democrats who had announced positive tests on Monday, he directly blamed a group of House Republicans who refused to wear masks while sheltering in a secure location during the Capitol siege.

“Today, I am now in strict isolation, worried that I have risked my wife’s health and angry at the selfishness and arrogance of the anti-maskers who put their own contempt and disregard for decency ahead of the health and safety of their colleagues and our staff,” Mr. Schneider said.

He called for lawmakers who ignore public health guidance to be sanctioned “and immediately removed from the House floor by the Sergeant-at-arms for their reckless endangerment of their colleagues.”

Capitol Hill has long struggled to contain the spread of the virus, and within hours of the beginning of the 117th Congress on Jan. 3, lawmakers began announcing positive test results.

Now lawmakers, aides, police officers and reporters who fled to secure locations during the siege have been warned that they might have been exposed to the virus while sheltering from the mob.

On Sunday, Representative Chuck Fleischmann, Republican of Tennessee, who was also in protective isolation at the Capitol during the siege, said that he had tested positive for the virus after being exposed to his roommate, Representative Gus Bilirakis of Florida, also a Republican.

Mr. Fleischmann told the local news station WRCB that he was notified Wednesday that Mr. Bilirakis had tested positive, but did not receive the notification amid the riot. He said he did not know how many other lawmakers he had come in contact with.

Democrats, already frustrated by resistance from their Republican colleagues to wearing masks, accused maskless Republicans in the secure House location of reckless indifference.

“It angers me when they refuse to adhere to the directions about keeping their masks on,” Ms. Watson Coleman said in an interview. “It comes off to me as arrogance and defiance. And you can be both, but not at the expense of someone else.”

Ms. Jayapal said on Twitter that she had tested positive “after being locked down in a secured room at the Capitol where several Republicans not only cruelly refused to wear a mask but recklessly mocked colleagues and staff who offered them one.”

Ms. Jayapal, who said she had begun quarantining immediately after the siege on the Capitol, also said that any member of Congress who did not wear a mask should be removed from the floor by the sergeant-at-arms and fined.

“This is not a joke,” she said in a statement. “Our lives and our livelihoods are at risk, and anyone who refuses to wear a mask should be fully held accountable for endangering our lives because of their selfish idiocy.”

Dustin Johnson teeing off the 17th tee during round two at the Masters golf tournament in Augusta, Ga., in November.Credit…Doug Mills/The New York Times

This year’s Masters tournament in April will be attended by a limited number of spectators, the Augusta National Golf Club announced Tuesday. The club, which prohibited fans from the event two months ago, did not specify how many fans would be allowed in 2021, adding that spectators would be permitted if “it can be done safely.”

The 2020 Masters was postponed from its usual April date to November because of the coronavirus pandemic and was contested with protocols that included virus testing before the event for all players, caddies, club members, staff and other personnel, including a reduced number of media members.

Fred Ridley, the club chairman, said in a statement issued Tuesday that similar health standards would be instituted for this year’s tournament, which is scheduled to be contested from April 8 to 11. The club, based in Augusta, Ga., made the announcement as the state reported 16 new coronavirus deaths and 7,957 new cases on Jan. 11. Over the past week, there has been an average of 9,604 cases per day, an increase of 55 percent from the average two weeks earlier.

“Following the successful conduct of the Masters Tournament last November with only essential personnel, we are confident in our ability to responsibly invite a limited number of patrons to Augusta National in April,” Ridley said. “As with the November Masters, we will implement practices and policies that will protect the health and safety of everyone in attendance.”

The Augusta National statement said the club was in the process of communicating with all ticket holders and that refunds will be issued to those patrons not selected to attend.

Commuters at Shinjuku station in Tokyo last week.Credit…Noriko Hayashi for The New York Times

Another new coronavirus variant has been detected in four people who traveled to Japan from Brazil.

Japan’s health ministry said that the people who arrived this month at Tokyo’s Haneda Airport had tested positive for the coronavirus and that it was a separate variant with similarities to those detected in Britain and South Africa. It is also distinct from another variant recently identified in Brazil, according to experts who have analyzed the data.

Makoto Shimoaraiso, an official with Japan’s Cabinet Secretariat and Office for Covid-19 Preparedness and Response, said on Tuesday that the country was consulting with the World Health Organization.

It is not unusual for viruses to accumulate mutations or for new variants to emerge. But scientists are calling for greater surveillance of variants, particularly after those from Britain and South Africa proved to be more contagious.

Mr. Shimoaraiso said epidemiologists were not sure whether the variant identified in Japan was more infectious or likely to cause more severe illness.

According to Japan’s health ministry, one of the passengers infected with the new variant, a man in his 40s, was admitted to a hospital after having breathing difficulties. Of the other cases, a woman in her 30s and a teenage boy are experiencing sore throats and fever, and a teenage girl is asymptomatic.

London last week. A coronavirus variant that emerged in Britain has been found in about 50 countries.Credit…Andrew Testa for The New York Times

In recent weeks, scientists have raised concerns about a coronavirus variant first detected in December in South Africa, noting that this version of the virus may spread more quickly than its cousins, and perhaps be harder to quash with current vaccines.

Their worries are compounded by skyrocketing Covid-19 cases in the United States and another highly infectious new variant that is driving a surge in Britain.

Scientists still have a lot to learn about these variants, but experts are concerned enough to warn people to be extra-vigilant in masking and social distancing. Here’s what you need to know:

  • The British variant has been found in about 50 countries, including the United States, where dozens of cases have been identified. The South African variant has spread to about 10 countries but has yet to be detected in the United States.

  • Both variants carry genetic changes in the virus’s spike protein — the molecule used to unlock and enter human cells — that could make it easier to establish an infection. Researchers estimate that the British variant is about 50 percent more transmissible than its predecessors. Julian Tang, a virologist at the University of Leicester, said that researchers didn’t yet have a good estimate for how much more contagious the South African variant is.

  • There is no evidence that any of the new variants are more deadly on their own, but an uptick in the spread of any virus creates ripple effects as more people become infected and ill. That can strain already overstretched health care systems and undoubtedly lead to more deaths.

  • It is unlikely that either variant will completely evade the protective effects of the new Covid vaccines. A recent study, not yet published in a scientific journal, found that the Pfizer-BioNTech vaccine is still effective against a virus carrying a mutation common to both new variants.

    The South African variant does carry genetic changes that could make vaccines less effective: One mutation appears to make it harder for antibodies produced by the immune system to recognize the coronavirus, which means they may be less effective at stopping the variant. But it is “important to note that doesn’t mean vaccines won’t be functionally protective,” said Angela Rasmussen, a virologist affiliated with Georgetown University.

    Vaccines use multifaceted immune responses, and while some antibodies may be confused by the variant, others probably won’t be. In addition, antibodies are only one sliver of the complex cavalry of immune cells and molecules that battle infectious invaders.

    Also, if the virus accumulates more genetic changes, many of the authorized vaccines, including Pfizer’s and Moderna’s, can be adjusted fairly quickly.

Transportation emissions dropped sharply in 2020 as millions of people stopped driving to work and lockdowns were in place.Credit…Lucy Nicholson/Reuters

America’s greenhouse gas emissions from energy and industry plummeted more than 10 percent last year, reaching their lowest levels in at least three decades as the pandemic slammed the brakes on the nation’s economy, according to an estimate published Tuesday by the Rhodium Group.

The steep drop was the result of extraordinary circumstances, however, and experts say the United States still faces enormous challenges in getting its planet-warming pollution under control.

“The most significant reductions last year were around transportation, which remains heavily dependent on fossil fuels,” said Kate Larsen, a director at Rhodium Group, a research and consulting firm. “But as vaccines become more prevalent, and depending on how quickly people feel comfortable enough to drive and fly again, we’d expect emissions to rebound unless there are major policy changes put in place.”

Transportation, the nation’s largest source of greenhouse gases, saw a 14.7 percent decline in emissions in 2020 as millions of people stopped driving to work and airlines canceled flights. Although travel started picking up again in the second half of the year as states relaxed lockdowns, Americans drove 15 percent fewer miles last year than in 2019.

Over all, the fall in emissions nationwide was the largest one-year decline since at least World War II, the Rhodium Group said. It put the United States within striking distance of one of the major goals of the Paris climate agreement, a global pact by nearly 200 governments to address climate change.

As part of that agreement, President Barack Obama had pledged that U.S. emissions would fall 17 percent below 2005 levels by last year. President Trump withdrew the country from the Paris accord, and before last year, it appeared that the United States would miss the emissions target. But America’s industrial emissions are now roughly 21.5 percent below 2005 levels.

Scientists say that even a big one-year drop is not enough to stop climate change. Until humanity’s emissions are essentially zeroed out and nations are no longer adding greenhouse gases to the atmosphere, the planet will continue to heat up. As if to underscore that warning, European researchers announced last week that 2020 was probably tied with 2016 as the hottest year on record.

Global roundup

Coronavirus testing at a clinic outside Kuala Lumpur, Malaysia, on Monday.Credit…Fazry Ismail/EPA, via Shutterstock

Malaysia’s king declared a national state of emergency on Tuesday to stem a surge in coronavirus cases, suspending Parliament, closing nonessential businesses and locking down several states and territories, including the largest city, Kuala Lumpur.

The emergency declaration could last until Aug. 1, and some critics said the main beneficiary would be the prime minister, Muhyiddin Yassin, the head of an unelected government who for months has barely maintained his hold on power.

Mr. Muhyiddin, who asked the king to issue the declaration, went on television to assert that the emergency measure was necessary to contain the virus — and that it was not about extending his political career.

“Let me assure you, the civilian government will continue to function,” he said. “The emergency proclaimed by the king is not a military coup.”

Mr. Muhyiddin promised to hold a general election after the virus was brought under control.

Malaysia was mostly successful in containing the virus for much of last year, but the number of infections began rising in October and reached a daily peak of more than 3,000 new cases on Thursday. The surge was caused in part by an election campaign in the state of Sabah and by an outbreak among migrant workers. The government reported a total of more than 141,000 cases and 559 deaths as of Tuesday.

Mr. Muhyiddin came to power in March after the previous government collapsed. He formed a new coalition and the king appointed him prime minister without a parliamentary vote. Opponents have since questioned whether he has the support of a majority of Parliament’s 222 members.

Now, the king’s declaration means that no parliamentary vote or general election can be held for more than six months, as long as the virus persists.

James Chin, professor of Asian studies at the University of Tasmania, said the declaration gave Mr. Muhyiddin extraordinary powers, including the authority to pass laws that override existing ones and to use the military for police work.

“Politically he will benefit the most from this Covid emergency,” he said. “This will give him what he wants without any scrutiny from Parliament.”

Other global developments:

  • Taiwan on Tuesday reported two locally transmitted coronavirus infections: a doctor and a nurse at a hospital in the northern part of the island that treats coronavirus patients. They are Taiwan’s first locally transmitted cases since Dec. 22, when it reported the first such case since April.

  • The European Union’s top drug regulator said it would assess the coronavirus vaccine developed by AstraZeneca and Oxford University “under an accelerated timeline,” after receiving an application for emergency authorization of the drug.

  • The leader of the German state of Bavaria has urged health care workers to do their “civic duty” by getting vaccinated, and called on the government to consider making coronavirus vaccinations for medical personnel mandatory in some cases. And about half of the staff at Charité, Germany’s largest research hospital, has refused to receive vaccine shots, according to Dr. Andrej Trampuz, a department head at the facility.

  • Because of high infection numbers, Berlin residents will be restricted from traveling more than about 9 miles outside the city, under new rules agreed to by German lawmakers. The distance of travel within Berlin is not being limited.

  • A couple who were out walking on Saturday night in Sherbrooke, Quebec, told the police that they were in compliance with a new overnight curfew because the wife was walking her crawling husband on a leash like a dog, CTV News reported. People walking their dogs are excluded from the province’s curfew, which is in effect from 8 p.m. to 5 a.m., as are essential workers and those seeking medical care. The pair were fined 1,500 Canadian dollars each. The province’s leader, François Legault, said on Monday that 740 people were fined over the weekend for violating the curfew, the first of its kind in Canada.

Dr. Rochelle P. Walensky is President-elect Joseph R. Biden Jr.’s nominee to lead the Centers for Disease Control and Prevention.Credit…Hilary Swift for The New York Times

Dr. Rochelle P. Walensky, chief of the infectious diseases division at Massachusetts General Hospital and a professor at Harvard, has been nominated by President-elect Joseph R. Biden Jr. to be director of the Centers for Disease Control and Prevention. In a column for The New York Times Opinion section, excerpted here, she writes about her plans for the agency.

On Jan. 20, I will begin leading the C.D.C., which was founded in 1946 to meet precisely the kinds of challenges posed by this pandemic. I agreed to serve as C.D.C. director because I believe in the agency’s mission and commitment to knowledge, statistics and guidance. I will do so by leading with facts, science and integrity — and being accountable for them, as the C.D.C. has done since its founding 75 years ago.

I acknowledge that our team of scientists will have to work very hard to restore public trust in the C.D.C., at home and abroad, because it has been undermined over the last year. In that time, numerous reports stated that White House officials interfered with official guidance issued by the C.D.C.

As chief of the infectious diseases division at Massachusetts General Hospital, I and many others found these reports to be extremely disturbing. The C.D.C.’s science — the gold standard for the nation’s public health — has been tarnished. Hospitals, doctors, state health officials and others rely on the guidance of the C.D.C., not just for Covid-19 policies around quarantine, isolation, testing and vaccination, but also for staying healthy while traveling, strategies to prevent obesity, information on food safety and more.

Restoring the public’s trust in the C.D.C. is crucial. Hospitals and health care providers are beyond tired, beyond stretched. I know because I have stood among them, on the front lines of the Covid-19 response in Massachusetts. We also face the need for the largest public health operation in a century, vaccinating the population — twice — to protect ourselves and each other from a surging pandemic. Because the impact of Covid-19 does not fall equally on everyone, we must redouble our efforts to reach every corner of the U.S. population.

The research and guidance provided by the civil servants at the C.D.C. should continue regardless of what political party is in power. Novel scientific breakthroughs do not follow four-year terms. As I start my new duties, I will tell the president, Congress and the public what we know when we know it, and I will do so even when the news is bleak, or when the information may not be what those in the administration want to hear.

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Gorillas Test Positive for Coronavirus at San Diego Zoo

Officials at the zoo’s Safari Park said that several gorillas had tested positive for the virus and that they believed an asymptomatic staff member infected the animals.

They’re doing OK, they’re experiencing some mild symptoms. And we continue to observe them. But they’re drinking, they’re eating and they’re interacting with one another. So we suspect that the gorillas got this virus from an asymptomatic team member. And that’s despite all of the precautions that we take. We follow C.D.C. guidelines. We follow San Diego County health guidelines. The team wears P.P.E. around all of our wildlife. And so even with all those precautions, we still have an exposure that we think happened with that team member. This virus has been very, very tricky. We’ve done everything we can to respond to it and make sure that we’re taking all the precautions and following all the guidelines that we can. But as we see it evolving everywhere around the world right now, we know that it is, it is, it’s evolving. It’s changing. And the best that we can do for humans and wildlife is just to ensure that we stay up to date on any protocols, that we remain nimble so that we can respond accordingly and make sure that we’re doing the very best we can to protect both our team, our guests and wildlife.

Video player loadingOfficials at the zoo’s Safari Park said that several gorillas had tested positive for the virus and that they believed an asymptomatic staff member infected the animals.CreditCredit…Ken Bohn/San Diego Zoo Global/Via Reuters

Several gorillas at the San Diego Zoo Safari Park have tested positive for the coronavirus, becoming what federal officials say are the first known apes in the United States to be infected.

Zoo officials said on Monday that they believed the gorillas were infected by an asymptomatic staff member who had been following safety recommendations, including wearing personal protective equipment when near animals.

Veterinarians are closely monitoring the troop, which is made up of eight western lowland gorillas. The infected animals are expected to make a full recovery, officials said.

“Aside from some congestion and coughing, the gorillas are doing well,” Lisa Peterson, the Safari Park’s executive director, said in a statement.

Three animals are exhibiting symptoms, officials said. And because gorillas live together in troops, “we have to assume,” the zoo said, “that all members of the family group have been exposed.”

The total number of western lowland gorillas, which can be found in central Africa, has declined more than 60 percent over the past two decades, according to the World Wildlife Fund.

Zoo officials learned that at least two gorillas had been infected with the coronavirus after the animals were observed on Wednesday “coughing and showing other mild symptoms,” the zoo said in the statement.

The zoo’s Safari Park has been closed since Dec. 6 amid a lockdown, and the primate habitat where the gorillas are housed poses “no public health risk,” officials said. Last year, as the pandemic spread across the country, the zoo installed additional barriers to ensure that more than six feet of space separated visitors from “susceptible species,” officials said.

The gorillas are among the latest animals in the country to become infected with the coronavirus. In April, the first case of human-to-cat transmission was detected in a tiger at the Bronx Zoo in New York City. In August, minks on two farms in Utah tested positive. In December, a coronavirus infection in a snow leopard was detected at the Louisville Zoo in Kentucky.

VideoVideo player loadingMayor Bill de Blasio of New York City announced on Tuesday that CitiField, the Mets’ home stadium in Queens, will be a “24/7 mega-vaccination site” starting the week of Jan. 25.CreditCredit…Ryan Christopher Jones for The New York Times

Mayor Bill de Blasio of New York City announced on Tuesday that CitiField, the Mets’ home stadium in Queens, will be a mass vaccination site starting the week of Jan. 25. The site will operate around the clock, seven days a week, with the capacity to vaccinate 5,000 to 7,000 people a day, Mr. de Blasio said. The location is ideal, the mayor said, because it is right next to a subway and railroad station and has plenty of parking.

“It’s going to be big, and it’s going to be a game changer,” Mr. de Blasio said at a news conference on Tuesday.

Large sports venues across the country have been used as sites for mass coronavirus testing, and more recently for vaccination, including the home stadiums of the Los Angeles Dodgers and San Diego Padres baseball teams, the Arizona Cardinals of the N.F.L. and the San Antonio Spurs of the N.B.A. Testing and vaccination efforts at Hard Rock Stadium in Miami were temporarily suspended on Monday to allow the college football championship game between Alabama and Ohio State to be played there.

The pool of people eligible for the vaccine in New York has recently expanded to include teachers and a range of other essential workers, as well as any resident who is 65 or older. At first, the vaccine was limited to frontline health care workers and nursing home residents.

The CitiField location is part of New York City’s initiative to establish mass inoculation sites in each of the city’s five boroughs. Vaccination centers opened in Brooklyn and the Bronx this week; locations in Manhattan and Staten Island have not yet been announced.

More than 26,000 vaccine doses were administered in the city on Monday, according to Mr. de Blasio, who is trying step up the pace of inoculations. The mayor has said his goal is to have one million doses administered by the end of January.

Mr. Cuomo, a third-term Democrat, said on Tuesday that the state intended to set up a series of rapid testing sites in areas where restrictions have closed indoor dining and arts events, and closed offices. Some of these sites would be located in vacant retail spaces or shuttered businesses, he said, promising hundreds of “pop-up” testing sites.

At the same time, Mr. Cuomo wants to reopen office buildings — a major element of New York City’s economy, both for their tenants and developers — saying he had received assurances from their owners that they could ramp up testing for workers. “Bringing workers back safely will boost ridership on our mass transit, bring customers back to restaurants and stores, and return life to our streets,” he said.

A coronavirus testing site in Los Angeles on Monday. The United States was one of the poorest-performing countries in a study of responses to the pandemic.Credit…Alex Welsh for The New York Times

How well a country has responded to Covid-19 is not explained by the country’s economic power or scientific capacity, but by how its people relate to one another and their government, according to preliminary findings of a research study.

“Countries with traditions of acting in concert against social problems, and countries with histories of deference to public authorities, fared better on compliance than countries lacking either or both,” the researchers wrote.

Investigators compared characteristics of 23 countries on six continents, considering outcomes related to disease burden, economic impact and disparities. In the United States, rated as one of the poorest-performing countries, “the virus ‘exploited’ pre-existing weaknesses” in public health, the economy and politics.

Before the pandemic, numerous reports and congressional testimony “recognized vulnerabilities that became apparent during Covid-19,” another study found, including threats of viruses emerging from animals, economic disruption, inadequate stockpiles and vulnerability to global supply shortages. For that study, researchers compiled more than 1,200 pre-pandemic records in an expanding online library that was introduced on Tuesday — Health Security Net — in the hopes that it will “inform future planning and response efforts.”

Another team, studying five countries in Africa, found that national leaders there had quickly recognized the threat from the virus and imposed measures to limit its importation and spread. “That managed to at least curtail the outbreak,” said Wilmot James, a Columbia University research scholar who was one of the study’s principal investigators, “but the impacts on the economies were quite devastating.”

The Africa Centers for Disease Control and Prevention, a four-year-old institution modeled in part on its U.S. counterpart, was unique in providing technical assistance for an entire continent.

The research reports were released Tuesday in conjunction with a two-day symposium, the Futures Forum on Preparedness, supported by Schmidt Futures and the Social Science Research Council.

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Business

Banks Halt Political Donations After Professional-Trump Mob Storms Capitol: Reside Updates

Here’s what you need to know:

Credit…Justin Lane/EPA, via Shutterstock

Big businesses often donate to both political parties and say that their support is tied to narrow issues of specific interest to their industries. That became increasingly fraught last week, after a pro-Trump mob stormed the Capitol and some Republican lawmakers tried to overturn Joseph R. Biden Jr.’s win in the presidential election.

A flurry of companies have since reviewed political giving via their corporate political action committees, according to the DealBook newsletter.

Some big banks are pausing all political donations:

  • Goldman Sachs is freezing donations through its PAC and will conduct “a thorough assessment of how people acted during this period,” a spokesman, Jake Siewert, told DealBook.

  • JPMorgan Chase is halting donations through its PAC for six months. “There will be plenty of time for campaigning later,” said Peter Scher, the bank’s head of corporate responsibility.

  • Citigroup is postponing all campaign contributions for a quarter. “We want you to be assured that we will not support candidates who do not respect the rule of law,” Candi Wolff, the bank’s head of government affairs, wrote in an internal memo.

Other banks, including Bank of America and Wells Fargo, said they would review their corporate contribution strategy.

Some companies are pausing donations to specific politicians. Marriott said it would pause donations from its PAC “to those who voted against certification of the election,” a spokeswoman told DealBook. She did not say how long the break would last or how the bank would decide when to resume.

Blue Cross Blue Shield, Boston Scientific and Commerce Bancshares are taking a similar, targeted approach to donation freezes. The newsletter Popular Information is tracking the responses of these and other companies that donated to lawmakers who challenged the election result.

The suspensions coincide with the first quarter after a presidential election, which is typically light on fund-raising anyway. Efforts by some companies to pause PAC donations to all lawmakers — those who voted to uphold the election as well as those who sought to overturn it — are raising eyebrows. And companies can still give to “dark money” groups that don’t disclose their donors but often raise far more money than corporate PACs.

In other fallout, the P.G.A. of America said it would no longer hold its signature championship at the Trump National Golf Club in Bedminster, N.J.; the social app Parler, popular among conservatives as an alternative to Twitter, went dark this morning after Amazon cut it off from computing services; the payment processor Stripe banned the Trump campaign from using its services; YouTube blocked Steve Bannon’s podcast channel; and the debate continues over tech giants’ influence over public speech.

Banks are expecting heavy demand for the new round of loans, as the virus continues to surge and restrictions on activity are reintroduced.Credit…Mohamed Sadek for The New York Times

The Paycheck Protection Program reopens this week, and underserved borrowers — including women-led businesses and those run by Black, Latino and Asian owners and other minorities — will be first in line to tap the new funds, The New York Times’s Stacy Cowley reports.

Starting Monday, a group of specially designated institutions known as community lenders, which specialize in working with Black- and minority-owned small businesses, will begin accepting applications for new loans. The government said larger financial institutions and banks would begin processing loans “shortly.”

Giving community lenders a head start is intended to address complaints that the aid was not distributed equitably the last time around. Here are more details about the new program.

  • Borrowers were previously limited to just one loan, but the new funding will be available to both first-time and returning borrowers. Businesses will be eligible for a second loan if they suffered a sales drop of 25 percent or more in at least one quarter of 2020, compared with the previous year.

  • Second loans will be restricted to businesses with no more than 300 employees; initial loans are available to larger companies, generally those with up to 500 workers.

  • The Small Business Administration, which manages the program, said it would begin accepting applications on Monday from community lenders seeking loans for first-time borrowers. On Wednesday, those lenders will be able to submit applications from people seeking second-round loans.

  • The S.B.A. will no longer approve loan applications instantaneously, a move that previously allowed some borrowers to receive their loan funds just hours after they applied. Now approvals will generally take at least one day.

Twitter locked President Trump’s account on Friday after he posted tweets calling his supporters “patriots” and saying he would not attend the presidential inauguration.Credit…Twitter

In the hours and days after a mob of President Trump’s loyalists stormed the Capitol, the nation’s biggest tech companies began to shut down accounts that helped incite the rampage. In the days and weeks before the attack, President Trump had used his Twitter feed and Facebook page to spread the lie that he had won the November election. It was that falsehood that helped drive the mob from to the Capitol last Wednesday after a speech by the president.

Facebook said the risks were too great to allow the president’s posts. Twitter followed suit. The focus shifted to Parler, a favorite app for right-wing figures. Citing posts on Parler that encouraged violence and crime, Apple and Google removed the app from their app stores. Then Amazon told Parler it would stop hosting it.

For Big Tech, the events of the past week raised tricky questions about politics, free speech and radicalization of people online.

How Parler, a Chosen App of Trump Fans, Became a Test of Free Speech

The app has renewed a debate about who holds power over online speech after the tech giants yanked their support for it and left it fighting for survival. Parler was set to go dark on Monday.

Stripped of Twitter, Trump Faces a New Challenge: How to Command Attention

The president became a celebrity through television, but Twitter had given him a singular outlet for expressing himself as he is, unfiltered by the norms of the office.

Amazon, Apple and Google Cut Off Parler, an App That Drew Trump Supporters

The companies pulled support for the “free speech” social network, all but killing the service just as many conservatives are seeking alternatives to Facebook and Twitter.

Twitter Permanently Bans Trump, Capping Online Revolt

The president’s preferred megaphone cited “the risk of further incitement of violence.” It acted after Facebook, Snapchat, Twitch and other platforms placed limits on him.

Facebook Bars Trump Through End of His Term

Mark Zuckerberg, Facebook’s chief executive, said the risks of Mr. Trump using the service were too great, even as Twitter lifted its lock on the president’s account.

In Pulling Trump’s Megaphone, Twitter Shows Where Power Now Lies

The ability of a handful of people to control our public discourse has never been more obvious, our columnist writes.

World Wrestling Entertainment event in Riyadh in 2019. George Barrios and Michelle Wilson, who spent more than a decade at WWE, announced the formation of a new investment firm.Credit…Fayez Nureldine/Agence France-Presse — Getty Images

George Barrios and Michelle Wilson — the former co-presidents of World Wrestling Entertainment who abruptly left the company a year ago — are announcing a new project: Isos Capital Management, an investment firm focused on media, entertainment and sports. The DealBook newsletter was the first to report the new venture.

Mr. Barrios and Ms. Wilson are veterans of the sports and entertainment business, including more than a decade at WWE. “We feel really proud of everything that was accomplished during our tenure, so we’re excited about the next chapter with Isos,” Ms. Wilson said. After WWE, they both considered several opportunities — including chief executive roles — but decided instead to continue working together.

The new fund will look at companies at all stages of development, with a focus on new technologies that keep fans and subscribers engaged. “There are spaces — whether it’s video gaming, e-sports, sports betting — that will drive fan engagement, and that digital transformation will really become the vehicle to make that happen,” Ms. Wilson said. She and Mr. Barrios declined to comment on other details about the fund.

As money has poured into the industry and deal-making has picked up, the fund’s founders believe their experience and contacts set them apart; at WWE, they led the company’s aggressive international push and signed content deals with USA Network and Fox Sports, among others. The company’s media division has helped counteract declining performance in its live performance unit in recent years.

“Capital is important, but it’s fungible,” Mr. Barrios said. “What Michelle and I bring is expertise, credibility and a global network.”

  • Stocks on Wall Street and in Europe fell on Monday, a day of consolidation after the markets began the year with a rally to record highs.

  • The S&P 500 fell more than half a percent in early trading, while the Stoxx Europe 600 index dipped by percent and the FTSE 100 in Britain by 0.5 percent.

  • Twitter tumbled more than 11 percent, after the social media company on Friday permanently banned President Trump, who had more than 88 million followers, citing “the risk of further incitement of violence.”

  • Boeing fell close to 3 percent following Saturday’s crash in Indonesia of a 737-500 series passenger carrying 62 people. The Sriwijaya Air flight fell into the Java Sea shortly after takeoff from Jakarta.

  • Last week, U.S. stock markets pushed higher after Democrats won two Senate seats in Georgia, clinching control of the upper house of Congress, increasing investors’ expectations of more fiscal spending. The markets continued rising even after a pro-Trump mob stormed the Capitol on Wednesday. Democrats, pointing to Mr. Trump’s inciting of the mob, have taken steps to remove Mr. Trump from the presidency.

  • Bitcoin fell to about $35,000 on Monday, down 17 percent from a record high of $41,962 reached on Friday. The cryptocurrency has surged substantially in recent weeks; just a month ago its price was below $20,000.

  • “Bitcoin’s parabolic rise is unsustainable in the near term,” Scott Minerd, the global chief investment Officer of Guggenheim Partners, an investment company, wrote on Twitter. “Vulnerable to a setback. The target technical upside of $35,000 has been exceeded. Time to take some money off the table.”

Nothing has stopped the stock market’s momentum over the last year: not the pandemic, not record unemployment and not the Capitol riot.

But don’t take that as a sign that the market is envisioning a calm and prosperous six months ahead, writes The New York Times’s Jeff Sommer. Instead, the rally simply reflects the greed of bullish investors. Here’s what’s fueling the high hopes:

  • Interest rates remain extraordinarily low, and the Federal Reserve and other central banks have said they are determined to keep short-term rates low. When rates are low, stocks and other risky assets are comparatively attractive.

  • The pandemic is the main cause of global economic troubles and it will eventually end. With vaccinations underway, Wall Street hopes that growth in most regions and sectors will surge later this year, along with rising corporate profits.

  • With Democrats sweeping the two contested Senate seats in Georgia, the chances of at least some further economic stimulus have increased. President-elect Joseph R. Biden Jr. will most likely be able to deliver more aid to people in need and to local governments, which is expected to increase economic growth.

  • Truly sweeping legislative changes will be difficult, if not impossible, given the Democratic Party’s razor-thin margin in the Senate and reduced majority in the House. Some increased spending is likely, but this slim grip on power implies that big tax increases on wealthy investors and rich corporations may not happen soon.

  • The election may have delivered something close to a Goldilocks alignment for the stock market. Mr. Biden’s cabinet picks so far suggest that he will govern as a centrist, and the market historically has fared well under Democratic presidents who do not have sweeping control of Congress. The possibility that the Biden administration will usher in a more efficient and inclusive government, with more spending and only moderate changes otherwise, is seen as a sweet outcome for stocks.

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World News

Indonesia Boeing Aircraft Crashes Into Sea: The Newest Updates

BANGKOK – A passenger plane carrying more than 60 people crashed into the Java Sea a few minutes after taking off from the Indonesian capital Jakarta on Saturday, Indonesian officials said, again drawing attention to a nation long cursed by air disasters.

The fate of the plane, a Boeing 737-500, also had the potential to drag the troubled American aviation giant into a worse public spot, although the cause of the crash was not yet clear.

The Indonesian Ministry of Transportation announced that the last contact with the plane, Sriwijaya Air Flight 182, was at 2:40 p.m. local time. The plane flew to the city of Pontianak on the island of Borneo. According to the Ministry of Transport, there were 62 people on board. Four minutes after taking off in heavy rain in the monsoon season, the 26-year-old aircraft lost more than 10,000 feet of altitude in less than 60 seconds after a delay in bad weather, according to Flightradar24, the flight tracking service.

The Indonesian National Search and Rescue Agency said it found debris in waters northwest of Jakarta that it believed could have come from the wreckage of the aircraft, but that darkness and bad weather hampered the search. The area where the debris was found is known as the Thousand Islands.

“Tomorrow we will investigate the place,” said Soerjanto Tjahjono, the head of the National Road Safety Committee in Indonesia, on Saturday evening, clouding hopes that survivors could be found.

Boeing confirmed the crash on Saturday and said on Twitter: “Our thoughts are with the crew, passengers and their families. We are in contact with our airline customers and are ready to support them in these difficult times. “

The aviation sector in Indonesia, a developing country with thousands of inhabited islands, has been plagued by crashes and security vulnerabilities for years. As Indonesian airlines, especially low-cost airlines, have grown rapidly to cover a vast archipelago, the domestic aviation industry has been undermined by poor aircraft maintenance and careless adherence to safety standards.

For years, the leading Indonesian air carriers were banned from flying to the US and Europe by the regulators of these countries. Low cost airlines would go into business only to file for bankruptcy after fatal crashes.

However, Sriwijaya Air, Indonesia’s third largest airline, which opened in 2003, has never suffered a fatal crash.

And the Sriwijaya Air plane, which disappeared from radar screens on Saturday, was part of Boeing’s 737 500 series, which is considered a workhorse model with years of safe flying.

Whatever the cause, the crash comes at a terrible time for Boeing, whose reputation and profits were shattered two years ago by two crashes aboard its 737 Max aircraft.

In 2018, Lion Air Flight 610 crashed into the Java Sea with 189 people on board after the anti-stall system of the 737 Max jetliner malfunctioned. Another 737 Max crashed in Ethiopia in March 2019 after a similar faulty activation of the antistall system.

A total of 346 people died in these crashes that led to the creation of the Max fleet worldwide, sparked criminal investigations, scrutinized governments around the world and resulted in the overthrow of the Boeing CEO. In November, the Federal Aviation Administration became the first major aviation authority to lift its flight ban after requiring software updates, rewiring and retraining of pilots. At the end of December, American Airlines became the first US airline to resume scheduled flights on board the 737 Max.

Boeing estimated last year that grounding would cost more than $ 18 billion. But that was before the coronavirus pandemic brought travel to a standstill and messed up the aviation industry. In 2020, Boeing lost more than 1,000 aircraft orders, mostly for the Max, although there are still more than 4,000 left. The share price has fallen by about a third compared to two years ago.

On Thursday, the company announced it would pay more than $ 2.5 billion in an agreement with the Justice Department related to the antistall software used in the 737 Max. This includes $ 500 million for the families of those killed in the accidents and $ 1.77 billion in compensation for customers. In a statement announcing the deal, a senior Justice Department official accused Boeing staff of “choosing the path of gain over openness by hiding essential information from the FAA”.

Whistleblowers have accused Indonesian transportation officials of ignoring danger signs as domestic airlines, including Lion Air, expanded rapidly to cater to a growing middle class in a nation of 270 million people.

The Lion Air Group, which belongs to Indonesia’s largest airline, signed the two largest air transport agreements in history at the time, one with Boeing and one with Airbus. Boeing had targeted airlines in developing countries like Lion Air with its 737 Max model. eager to pack their fleets with new jets designed for short money-making.

However, aviation experts warned that selling aircraft to airlines, which are growing rapidly in unregulated environments, could be a recipe for disaster.

Jefferson Irwin Jauwena, the executive director of Sriwijaya Air, said Saturday night that they are “very concerned about this incident”.

“We hope your prayers will help the search process go well and smoothly,” he added. “We will also offer the families the best possible help.”

Rapin Akbar, the uncle of Rizki Wahyudi, one of the passengers on Flight 182, said his nephew called him on Saturday to tell him the flight from Jakarta to Pontianak was delayed. Mr Rapin reminded his nephew, a national park employee, to keep his face mask at the airport to avoid contracting the coronavirus. Mr. Rizki’s wife, child, mother and cousin were also on the plane.

While waiting for search and rescue boats to report, Mr Rapin said he was hoping for his family members. “There will be a miracle from Allah,” he said.

Indonesian aviation analysts said this crash could jeopardize the viability of Sriwijaya Air, especially as the coronavirus has emptied the Indonesian skies of many planes.

“Sriwijaya is trying hard to survive and the pandemic is making it harder,” said Gerry Soejatman, an Indonesian aviation expert. “This crash could mean the end.”

Indonesian pilots have also complained that the coronavirus has reduced their opportunities to practice their skills and brush up on their training. At one point during the pandemic, Sriwijaya only operated five planes, Soejatman said, which lowered crew morale.

At the Indonesian National Road Safety Committee, investigators were preparing for the very familiar task of finding out what went wrong in the country’s skies.

“Whenever we hear this kind of news, we get ready,” said Ony Suryo Wibowo, a committee investigator, on Saturday. “We collect all the information we can get.”

Niraj Chokshi contributed to the coverage from New York.