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Russia Doesn’t Ship U.S. Investor to Jail however Nonetheless Sends a Warning

MOSCOW – A Russian court on Friday sentenced an American businessman, who is one of the country’s most prominent foreign investors, to five and a half years suspended sentence in a penal colony for embezzlement conviction, undermining Russia’s ability to attract foreign investment.

The suspended sentence for businessman Michael Calvey, founder of Baring Vostok, a private equity firm with $ 3.7 billion in assets under management, means he has no time in Russia’s notoriously harsh penal colony system, the successor to the Gulag Camp, unless he is in breach of probation.

However, the risk of jail time that Mr Calvey and his six co-defendants still face in the case was expected to dampen foreign interest in doing business in Russia, where FDI is already hampered by weak property rights and Western sanctions.

The ruling became all the more worrying for business leaders when, despite deteriorating ties with the West, Calvey had consistently advocated investment in Russia despite many companies pulling out of the country.

Mr. Calvey, 53, founded Baring Vostok in the 1990s, shortly after the collapse of communism, with the aim of bringing investors into Russia’s newly capitalist economy. In its 27 years in business, the company has attracted billions of dollars in private equity capital for Russian companies like Yandex, a search engine that competes locally with Google, and Ozon, an online retailer.

The co-defendants, including Philippe Delpal, a French national and senior executive at Baring Vostok, received similar suspended sentences in the Russian prison system.

The case arose out of a business dispute with shareholders in a Siberian bank.

Prosecutors said Mr. Calvey and other executives of his fund embezzled 2.5 billion rubles (about $ 34 million) by persuading the bank’s shareholders, Vostochny Bank, to inflate a stake in another company Accept price.

In his defense, Mr. Calvey argued that the bank’s shareholders had full access to information about the value of the shares when they accepted them in lieu of repaying a loan and that the case should also have been resolved through commercial arbitration.

“I came to Russia and stayed here because I loved this country from the start and believed that Russia had the potential to become one of the world’s leading investment markets,” Calvey said in a closing statement at his trial last month .

“I convinced investors to share my confidence in Russia’s future,” he said. “Even after 2014, when the geopolitical climate deteriorated and sanctions were imposed on Russia, I continued to defend Russia’s image as an attractive country to work and invest in.”

Calvey’s investment drive continued despite two decades of corporate government takeovers, ruble devaluations, and politically tinged arrests, including Sergei L. Magnitsky, who died on custody and worked as an attorney for another prominent foreign investor, William F. Browser.

Russia’s once richest man, Mikhail B. Khodorkovsky, the founder of an oil company, was convicted twice and sentenced to long prison terms in the penal colonies.

The conditions there are tough. In a prison, Mr. Khodorkovsky was stabbed in the face with a homemade knife. The guard said another detainee was blocking unwanted sexual advances, which Mr. Khodorkovsky denied.

Mr. Calvey’s investment firm had focused on internet and retail start-ups that benefited from the riches of the petroleum industry and successfully served the country’s emerging middle class.

The arrest and detention of Mr Calvey and his colleagues in 2019 raised fears that executives at other American companies might be similarly arrested in a climate of strained relations with the United States. The seven executives were convicted by a Russian court on Thursday and sentenced on Friday.

During his detention, Mr. Calvey continued to speak out in favor of the investment case for Russia and read statements about it at hearings from the aquarium in which defendants are being held in Russian courts.

Russian entrepreneurs are often the target of market shakes and shadowy plans to steal assets, said Russia’s own corporate ombudsman. Arrests are common. Today, around one in ten prisoners in Russia’s penal colonies are white-collar criminals.

Government revenues from commodity exports such as oil and natural gas, which flow regardless of what Russian courts do in the country, have left the country’s investment climate largely unconcerned, economists noted. And an independent judicial system that would help investors could also weaken control over the political opposition.

“Russia is in what could be described as an investment pause,” said Natalia Akindinova, a researcher at the Higher School of Economics, in an interview.

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Health

‘Not Out of the Woods’: C.D.C. Points Warning to the Unvaccinated

WASHINGTON – The director of the Centers for Disease Control and Prevention warned Thursday that the United States was “not yet out of the woods” with the pandemic and was again at a “key point” when the highly contagious Delta variant tore through unvaccinated Municipalities.

Just weeks after President Biden threw a party on July 4th on the South Lawn of the White House to declare independence from the virus, the director named Dr. Rochelle P. Walensky the now dominant variant “one of the most contagious respiratory viruses”. Known to scientists.

The renewed urgency within the administration was directed at tens of millions of people who have not yet been vaccinated and are therefore most likely to be infected and become ill. Her grim message came at a time of mounting fear and confusion, especially among parents of young children who are still unsuitable for the injection. And it underscored how quickly the recent surge in the pandemic had unsettled Americans, who had begun to believe the worst was over and prompted politicians and public health officials to recalibrate their responses.

“This is like the moment in horror movies when you think the horror is over and the credits are about to begin,” said Rep. Jamie Raskin, Democrat of Maryland. “And everything starts all over again.”

The decision by millions to reject the vaccine had the consequences health officials had predicted: the number of new cases in the country has increased nearly 250 percent since the beginning of the month, with an average of more than 41,000 infections diagnosed each day Week – versus 12,000.

The disease caused by the virus kills about 250 people each day – far fewer than during the peak period last year, but still 42 percent more than two weeks ago. More than 97 percent of hospital patients are unvaccinated, said Dr. Walensky last week.

The public health crisis is particularly acute in parts of the country where vaccination rates are lowest. In Louisiana, Mississippi, Alabama, and Florida, the number of new cases every day has increased more than 200 percent in the past two weeks, leading almost entirely to new hospital admissions and deaths among the unvaccinated. Intensive care units are being filled or replenished in southern Missouri and northern Arkansas.

The turnaround is forcing both political parties in Washington to grapple – hitherto hesitantly and hesitantly – with questions about what tone to use, what guidance to give, and what changes to make to meet the latest generation of the worst public Health crisis in a century.

The White House on Thursday announced new grants to local health departments for vaccines and stepped up testing in rural communities, despite administrative officials saying they would “make further progress in our fight against the virus” and insisted it was not necessary to do their basic Rethink measures strategy. Although reports of breakthrough infections in vaccinated people are increasing, they remain relatively rare and those that cause serious illness, hospitalization, or death are particularly rare.

But the rise in infections and hospitalizations in some parts of the country, even if mostly limited to people who have chosen not to vaccinate, has presented Mr Biden with an evolving challenge that threatens economic recovery and his own political standing could.

The stock market is shaky. His administration is under renewed pressure to reintroduce mask mandates, as Los Angeles County did this week. And the president’s top aides are on the defensive in their strategy to keep the pandemic in check again.

“It’s frustrating,” Mr. Biden admitted Wednesday night during a town hall event on CNN.

The rise of the variant could also change the equation for some Republicans who see many of their own constituents hospitalized – or worse. Louisiana Rep. Steve Scalise, the No. 2 Republican in the House of Representatives, received his first shot on Sunday, noting a “further spike” in the pandemic. Fox News host Sean Hannity said on his show, “I believe in the science of vaccination.”

On Capitol Hill, House Republican leaders and doctors were reluctant to signal their support for vaccinations Thursday, even though that support was mixed.

“If you are at risk you should get this vaccine,” said Maryland doctor Andy Harris, adding, “We urge all Americans to speak to their doctors about the risks of Covid and to speak to their doctors about the benefits.” get vaccinated and then make a decision. “

Updated

July 22, 2021, 1:43 p.m. ET

Republican Rep. Greg Murphy, North Carolina, said, “This vaccine is a medicine and, like any other medicine, there are side effects and it is a personal choice.”

Their press conference was promoted as an attempt to “discuss the need for vaccination for individuals”. But it was dominated by efforts to spread an unproven theory that the Chinese released a virulent, man-made virus in the world and allegations that the Democrats were covering it up.

The vaccines work to protect those who have been injected from serious danger, but charts tracking the pandemic, which has been declining for months – heralded by Mr Biden as evidence his approach worked – are going up sharply.

The rapid momentum of the new variant makes people wonder whether they have to withdraw from restaurants, cinemas, bars, sporting events and their offices again. What seemed like clear – and mostly positive – decisions just a few days ago now seems muddy.

White House officials on Thursday turned down questions about whether vaccinated people should return to wearing masks indoors, as Los Angeles County health officials ordered days ago. Jeffrey D. Zients, the White House’s coronavirus coordinator, just said that the CDC’s current guidelines don’t require it.

“It is up to each and every American to make their own contribution,” he said. “We know that every vaccination route is different. We are ready to have more Americans vaccinated anytime, anywhere. “

Amid the concern, one thing is clear: the variant has once again turned hopes of an end to the pandemic on its head and sparked a new fear on the horizon – that a highly anticipated return to work and school could be disrupted after much of the country’s nearly 18 Months of seclusion from home.

“I’m concerned about the fall,” said Rep. Lauren Underwood, an Illinois Democrat and registered nurse. “August will be tough. It’s going to be tough back to school. We will see more sickness and more death. “

Andy Slavitt, a public health expert who recently left the Biden White House’s coronavirus response team, said the government would not consider mandating vaccinations for the military or federal workers until the Food and Drug Administration clears the coronavirus – Vaccines that are now available have been given permanent authorization under emergency use authorization.

However, the final approval of the Pfizer vaccine will take place “within weeks to a few months”. Once that happens, he said, “it should all be on the table and I can tell you that is the attitude in the White House.”

Public school systems could also require vaccinations at this point, just as they would require vaccinations against polio, measles, mumps, and rubella – with a few exceptions for religious or health reasons. That would quickly drive up vaccination rates.

Aside from mandates, there are few obvious policy changes as Congress has already inundated health officials with funding for vaccination campaigns and making vaccines widely available. Ami Bera, a Democrat from California, who is a doctor, suggested that the Biden government launch a public advertising campaign modeled on smoking cessation campaigns in which a dying man once smoked through his windpipe.

“Let’s do an ad with a 20 year old man who says, ‘I didn’t take it seriously. I got it and killed my grandmother, ”he said.

Republicans have emphasized their refusal to go backwards.

“You don’t have to shut things down,” said Kansas Senator Roger Marshall, a doctor. “Look, as far as I know, no child under the age of 18 has died of Covid unless they also had a serious illness.”

The death toll among American children is extremely small – 346 on July 15 – but some of them most likely did not have any underlying health conditions.

Even the Republicans have so far resisted sounding the alarm in the conservative population. The Kaiser Family Foundation reported in late June that 86 percent of Democrats had at least one shot, compared to 52 percent of Republicans.

Policy makers are feeling paralyzed, in large part because once Americans resume life without masks and other restrictions, it will be difficult to return. Vaccination and masking requirements would almost certainly trigger a violent backlash, but could also save lives.

“We all have this psychology, well, it’s over, but intellectually we know it’s not over yet,” said Maryland Rep. Steny H. Hoyer, the Majority Leader. He asked, “How do we get a society that had an enormous feeling of being locked in a mask, then being free again, to go back?”

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U.S. warning about Hong Kong alerts Washington might do extra: Lawyer

The U.S. has issued a warning to U.S. companies operating in Hong Kong — signaling that Washington could take further action, says a lawyer who specializes in international trade compliance.

Adam Smith, a partner at law firm Gibson, Dunn & Crutcher, said Friday’s financial and regulatory risks advisory was “quite substantial” but it “doesn’t actually do anything with respect to changing the rules” right now.

However, it does indicate “there’s a lot more the U.S. could do” from a policy perspective, he told CNBC’s “Capital Connection” on Monday.

The nine-page advisory on Friday warned that U.S. firms are encountering several risks posed by China’s national security law in Hong Kong. Washington also announced sanctions on seven Chinese officials for violating Hong Kong’s autonomy.

Possible next steps

In response to Beijing’s crackdown on the former British colony, Smith said, what would “really change the nature of engagement and risk for parties in Hong Kong” would be sanctions on organizations, entities and institutions, which have been absent so far.

Sanctions on individuals can be a challenge to U.S. firms in Hong Kong, but the “real difficulty” would come from restrictions on organizations that businesses need to interact with frequently, he said.

People wearing face masks crossing a street at Hong Kong’s Wan Chai district on Feb. 16, 2021.

Zhang Wei | China News Service | Getty Images

Hong Kong’s attraction

For now, however, there remains “too much opportunity” in Hong Kong for businesses to move out of the city.

“Hong Kong … still has an unbelievable amount of human capital that many companies still need,” he said.

Kurt Tong, a former consul general representing the U.S., and chief of mission in Hong Kong and Macao, said Hong Kong is still a good place for businesses to be despite the risks.

“There’s legal risk, there’s reputational risk, there’s a certain amount of operation risk — but I think that those risks are measured,” he said.

“At the same time, (businesses) need to keep their eye on the big picture, which is that China is an enormous and attractive economy to do business with. And Hong Kong is in many ways, still … one of the best platforms to do that work,” he added.

The rhetoric has been so tough from both sides, so there’s a lot of face-saving that needs to be done.

Kurt Tong

partner, The Asia Group

Tong, a partner at advisory firm The Asia Group, said the rule of law in Hong Kong has deteriorated, but most businesses are not convinced that it has been completely wiped out.

“I think it will take more to drive companies out of Hong Kong than the changes that have taken place thus far,” he told CNBC’s “Squawk Box Asia.”

Biden-Xi meeting?

As for the path forward, Tong said he expects U.S. President Joe Biden and Chinese President Xi Jinping to meet in the fall, and discuss each of their “red lines” that cannot be crossed.

In the meantime, he said, “diplomatic jousting” will continue.

“The rhetoric has been so tough from both sides, so there’s a lot of face-saving that needs to be done,” he added.

Trade discussions between the two sides have stalled for now, and the U.S. doesn’t have incentives to enter negotiations because it doesn’t believe such talks will be successful, Tong said.

“It’s a complex picture … the U.S.-China relationship under the Biden-Xi era,” Tong said. “We’re still on the … first scene of the first act of how this is going to play out over the coming year.”

Indeed. After Tong and Smith spoke, a new alliance of NATO member states, the European Union, Australia, New Zealand and Japan blamed China’s Ministry of State Security for a massive cyberattack on Microsoft Exchange email servers earlier this year.

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F.D.A. Attaches Warning of Uncommon Nerve Syndrome to Johnson & Johnson Covid Vaccine

The database shows only one possible death of a recipient of the Johnson & Johnson shot from Guillain-Barre Syndrome. But the man, a 57-year-old Delaware man, had also suffered a heart attack and stroke in the past four years, which raised questions about his April death.

Although it only requires a single dose and is easier to store than Pfizer and Moderna vaccines, Johnson & Johnson vaccination played only a minor role in the US vaccination campaign. One of the reasons for this is that a plant in Baltimore that was supposed to supply most of the cans in the country was closed for three months for violating the law. The factory, operated by Emergent BioSolutions, a subcontractor, was forced to discard the equivalent of 75 million cans on suspicion of contamination, significantly delaying deliveries to the federal government.

At the same time, demand for the shot collapsed after the safety break in April. At that time, 15 women in the United States and Europe who received the Johnson & Johnson injection were diagnosed with the coagulation disorder; three died. The CDC has now confirmed 38 cases of the disorder.

Regulatory authorities and federal health officials warned that women under the age of 50 in particular should be aware of the “rare but increased” risk of clotting. In the nearly three months since the hiatus ended, only about five million people in the U.S. have taken Johnson & Johnson’s recording, and state officials report that people are much more cautious. Millions of cans distributed by the federal government sit unused and expire this summer.

Alex Gorsky, CEO of Johnson & Johnson, said last month he was still confident that the vaccine, which has been used in 27 countries, will help contain the pandemic overseas. The company has pledged up to 400 million cans to the African Union. Regardless, Covax, the global vaccine exchange program, is set to receive hundreds of millions of doses.

Studies have shown that the Johnson & Johnson syringe protects people from more contagious variants of the coronavirus, including the Delta variant, and is highly effective in preventing severe Covid-19, hospitalizations, and death.

The Food and Drug Administration shares responsibility for vaccines with the CDC, but is solely responsible for issuing product warnings. The Guillain-Barré cases will be discussed at an upcoming meeting of a committee of external experts advising the CDC, the agency said.

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F.D.A. Will Connect Warning of Uncommon Nerve Syndrome to Johnson & Johnson Vaccine

The Food and Drug Administration is planning to warn that Johnson & Johnson’s coronavirus vaccine can lead to an increased risk of a rare neurological condition known as Guillain–Barré syndrome, another setback for a vaccine that has largely been sidelined in the United States because of manufacturing problems and a temporary safety pause earlier this year, according to several people familiar with the plans.

Although regulators have found that the chances of developing the condition are low, they appear to be three to five times higher among recipients of the Johnson & Johnson vaccine than among the general population in the United States, according to people familiar with the decision.

Federal officials have identified roughly 100 suspected cases of Guillain-Barré disease among recipients of the Johnson & Johnson shot through a federal monitoring system that relies on patients and health care providers to report adverse effects of vaccines. The reports are considered preliminary. Most people who develop the condition recover.

The F.D.A. has concluded that the benefits of the vaccine in preventing severe disease or death from the coronavirus still very much outweigh any danger, but it plans to include the proviso in fact sheets about the drug for providers and patients

“It’s not surprising to find these types of adverse events associated with vaccination,” said Dr. Luciana Borio, a former acting chief scientist at the F.D.A. under President Barack Obama. The data collected so far by the F.D.A., she added, suggested that the vaccine’s benefits “continue to vastly outweigh the risks.”

In a statement released Monday, the Centers for Disease Control and Prevention said the cases have largely been reported about two weeks after vaccination and mostly in males, many aged 50 years and older.

The database reports indicate that symptoms of Guillain-Barré developed within about three weeks of vaccination. One recipient, a 57-year-old man from Delaware who had suffered both a heart attack and a stroke within the last four years, died in early April after he was vaccinated and developed Guillain-Barré syndrome, according to a report filed to the database.

The Biden administration is expected to announce the new warning as early as Tuesday. European regulators may soon follow suit. No link has been found between Guillain-Barré syndrome and the coronavirus vaccines developed by Pfizer-BioNTech or Moderna, the other two federally authorized manufacturers. Those rely on a different technology.

Nearly 13 million people in the United States have received Johnson & Johnson’s shot, but 92 percent of Americans who have been fully vaccinated received shots developed by Pfizer-BioNTech or Moderna. Even though it requires only one dose, Johnson & Johnson’s vaccine has been marginalized by manufacturing delays and a 10-day pause while investigators studied whether it was linked to a rare but serious blood clotting disorder in women. That investigation also resulted in a warning added to the fact sheet.

The new safety concern comes at a precipitous moment in the nation’s fight against Covid-19. The pace of vaccinations has slowed considerably just as a new, more contagious variant called Delta is spreading fast in under-vaccinated areas. Federal health officials are worried that the news could make some people even more hesitant to accept the vaccines developed by Pfizer-BioNTech or Moderna, even though well over 100 million people have received those vaccines, according to the Centers for Disease Control and Prevention.

Updated 

July 12, 2021, 2:12 p.m. ET

Almost one-third of the nation’s adults remain unvaccinated. The Biden administration has shifted away from relying on mass vaccination sites and is now enlisting community workers in door-to-door campaigns, supplying doses to primary care doctors and expanding mobile clinics in an attempt to convince the unvaccinated to accept shots.

Johnson & Johnson’s vaccine has played a minor role in the nation’s inoculation campaign partly because the Baltimore plant that was supposed to supply most of the doses to the United States has been shut down for three months because of regulatory violations. The factory, operated by Emergent BioSolutions, a subcontractor, has been forced to throw out the equivalent of 75 million doses because of suspected contamination, severely delaying deliveries to the federal government.

Demand for the shot also plummeted after the April safety pause. At that time, 15 women in United States and Europe who had received the Johnson & Johnson shot had been diagnosed with the disorder. Three had died.

Regulators ultimately decided that the risk was remote and far outweighed by the benefits. They attached a warning to the drug and cleared it for use, but state officials have said that the perception that the vaccine might be unsafe hurt it.

Alex Gorsky, Johnson & Johnson’s chief executive, said last month that he was still hopeful that the vaccine, which has been used in 27 countries so far, would help contain the pandemic overseas. The company has promised up to 400 million doses to the African Union. Separately, Covax, the global vaccine-sharing program, is supposed to receive hundreds of millions of doses.

Studies have showed that the Johnson & Johnson shot protects people against more contagious virus variants, including the Delta variant, and is highly effective at preventing severe Covid-19, hospitalizations and death.

The F.D.A. shares jurisdiction over vaccines with the Centers for Disease Control and Prevention but is responsible for issuing product warnings. The Guillain-Barré cases are expected to be discussed in an upcoming meeting of a committee of outside experts who advise the C.D.C.

The F.D.A. has also attached a warning to the Pfizer-BioNTech and Moderna vaccines, but some health officials described that as less serious than the warnings about Johnson & Johnson. Last month, the agency warned about an increased risk of inflammation of the heart or the tissue surrounding it — diseases known as myocarditis and pericarditis — particularly among adolescents and young adults who had received Pfizer-BioNTech or Moderna shots. But the C.D.C. said in most cases, symptoms promptly improved after simple rest or medication.

The Guillian-Barré syndrome is more likely to result in medical intervention, officials said. It occurs when the immune system damages nerve cells, causing muscle weakness and occasional paralysis, according to the F.D.A. Several thousand people — or roughly 10 out of every one million residents — develop the condition every year in the United States. Most fully recover from even the most severe symptoms, but in rare cases patients can suffer near-total paralysis.

The suspected cases were reported in the Vaccine Adverse Event Reporting System, or VAERS, a 30-year-old federal monitoring system. So far, researchers have not identified any particular demographic pattern, but the many of the reports in the publicly available database indicate that the patients were hospitalized.

Guillain-Barré syndrome has also been linked to other vaccines. The Centers for Disease Control and Prevention has said that flu vaccines, including the 1976 swine flu vaccine, led to a small increased risk of contracting the syndrome, although some studies suggested that people are more likely to develop Guillain-Barré from the flu itself than from flu vaccines. Earlier this year, the F.D.A. warned that GlaxoSmithKline’s shingles vaccine, Shingrix, could also increase the risk of the disease.

Only about five million people in the U.S. have taken Johnson & Johnson’s shot since the April pause was lifted. Millions of doses that have been distributed by the federal government are sitting unused and will expire this summer.

Apoorva Mandavilli and Carl Zimmer contributed reporting.

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Health

FDA provides warning of uncommon coronary heart irritation to Pfizer, Moderna vaccines

Vials with Pfizer-BioNTech and Moderna coronavirus disease (COVID-19) vaccine labels are seen in this illustration picture taken March 19, 2021.

Dado Ruvic | Reuters

The U.S. Food and Drug Administration on Friday added a warning to patient and provider fact sheets for the Pfizer and Moderna Covid-19 vaccines to indicate a rare risk of heart inflammation.

For each vaccine, the fact sheets were revised to include a warning about myocarditis and pericarditis after the second dose and with the onset of symptoms within a few days after receiving the shot.

Myocarditis is the inflammation of the heart muscle and pericarditis is the inflammation of the tissue surrounding the heart. Health officials said the benefits of receiving the vaccine still outweigh any risk.

“The risk of myocarditis and pericarditis appears to be very low given the number of vaccine doses that have been administered,” Janet Woodcock, acting FDA commissioner, said in a statement.

“The benefits of Covid-19 vaccination continue to outweigh the risks, given the risk of Covid-19 diseases and related, potentially severe, complications,” she said.

The FDA update follows a review and discussion by the Centers for Disease Control and Prevention’s Advisory Committee on Immunization Practices meeting on Wednesday. 

There have been more than 1,200 cases of a myocarditis or pericarditis mostly in people 30 and under who received the shots, according to presentation slides from the CDC meeting.

About 300 million shots had been administered as of June 11, according to the CDC. There have been just 12.6 heart inflammation cases per million doses for both vaccines combined.

— CNBC’s Berkeley Lovelace Jr. contributed reporting

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U.S. will seemingly resume use of J&J Covid vaccine with a warning

Dr. Anthony Fauci, director of the National Institute for Allergies and Infectious Diseases, testifies on April 15, 2021 at the House Select subcommittee on the coronavirus crisis on Capitol Hill in Washington.

Susan Walsh | Pool | Reuters

The Chief Medical Officer of the White House, Dr. Anthony Fauci said Sunday he believes the US is likely to resume use of the Johnson & Johnson Covid-19 vaccine with a warning or restriction.

Health officials on Tuesday urged states to temporarily suspend the single dose of J&J after six cases of rare brain blood clots were reported in women of approximately 7 million people who received the vaccine in the United States

The cases occurred in women ages 18 to 48 who developed symptoms six to 13 days after receiving the shot. The Food and Drug Administration said the recommendation to stop the vaccine was “out of caution”.

Fauci said he expected a decision on the J&J vaccine as early as Friday when the vaccine advisory panel of the U.S. Centers for Disease Control and Prevention meets to discuss reopening.

“I guess we will continue to use it in some form,” Fauci said during an interview on NBC’s Meet the Press. “I very seriously doubt they’ll just cancel it. I don’t think that’s going to happen. I think there will likely be some kind of warning or restriction or risk assessment.”

“I don’t think it will just go back and say, ‘Okay, everything is fine. Go right back.’ I think it will likely say, “Okay, we’re going to use it, but be careful in these certain circumstances,” Fauci continued.

About 5% of vaccine supplies in the US are lost due to the pause in J&J admission. It is unclear how the hiatus will affect the company’s goal of delivering 100 million cans nationwide by the end of May.

White House Tsar Jeff Zients said the stop would have no material impact on the U.S. vaccination program, which is handing out enough Pfizer and Moderna vaccines to continue the current pace of around 3 million shots a day.

The country reports an average of 3.3 million daily vaccine doses given in the past week, and 3 million if only Pfizer and Moderna are counted. According to CDC data, only around 7.8 million of the total of 202 million recordings in the US are from J&J

“You don’t want to jump in front of yourself and decide that you know the full spectrum. This is one of the reasons they paused and hopefully we’ll know by Friday,” Fauci said during an interview on CBS. “Face the nation.”

– CNBC’s Nate Rattner contributed to the coverage

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Peloton Pushes Again In opposition to Federal Company Over Treadmill Warning

Exercise bike company Peloton struggled Saturday after a federal agency warned those with children at home should stop using the company’s Tread + treadmills.

The agency, the US Consumer Product Safety Commission, issued an “urgent warning” after reports of 38 injuries and one death related to the machine previously known as the Tread.

The agency said those with young children at home should stop using the machine and warned that the Tread + posed a risk to children, including abrasions, breaks, and even death.

The commission said at least one accident reportedly happened while one parent was using the treadmill. Those who continue to use it should do so in a locked room that is inaccessible to children and pets, the agency said.

The commission also shared a video on Saturday of a child stuck under the machine. After a few seconds the child was able to break free and walk away.

The commission did not provide the age of the deceased or injured child.

Joe Martyak, a commission spokesman, said it continues to investigate the dangers associated with the Tread + machine.

“Given the pattern of hazards that have been reported to affect children in private households with this product, public health and safety warrants such a warning,” Martyak said.

Peloton pushed back on Saturday, saying the commission’s warning was “inaccurate and misleading”. The company said in the statement that there was no reason for consumers not to use the machine, adding that safety warnings should always be followed.

Peloton admitted that “a child died while using the Tread + machine,” adding that they were “shocked and devastated” to learn of the death. The company also reported that another child suffered a brain injury in an accident. The child should make a full recovery, Peloton said.

In business today

Updated

April 16, 2021, 1:30 p.m. ET

“While Peloton knows the Tread + is safe for the home in accordance with warnings and cautions, the company is committed to taking all necessary and reasonable steps to further educate members about potential risks,” the company said.

“The importance of following Peloton’s safety warnings and instructions is very evident in the video,” Peloton said, referring to the video shared by the commission. The company added that Peloton is instructing its customers to remove the machine’s security key when not in use to prevent such incidents.

The machine costs more than $ 4,200, according to the company’s website.

Senator Richard Blumenthal, a Connecticut Democrat, urged Peloton to work with the agency.

“It is clear that the Peloton Tread + needs to be recalled,” said Blumenthal. “The company’s attempts to disapprove consumer abuse reports are irresponsible and inexcusable as there have been several incidents involving adults using the treadmill as directed by the company.”

Peloton said it had asked the commission to make a joint announcement about the risks of failing to follow safety instructions and asked John Foley, the company’s executive director, to meet with the agency.

“Peloton is disappointed that, despite its offers to collaborate and despite the fact that the Tread + meets all applicable safety standards, CPSC was unwilling to have significant discussions with Peloton before issuing its inaccurate and misleading press release,” the company said .

In a letter published in March, Mr. Foley addressed the child’s death.

“While we have known only a small handful of Tread + -related incidents that have injured children, everyone in Peloton is devastating and our hearts go out to the families affected,” said Foley.

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With Warning to Democrats, Manchin Factors the Method for Biden’s Agenda

Republican senators, chanted about their experiences with the Pandemic Relief Act, responded to Mr Biden’s gestures of bipartisanism with a cool statement that the last time he publicly asked for cooperation, he “Our efforts were flatly deemed utterly inadequate dismissed it to justify its go-it-alone strategy. “

During an appearance on Fox News Sunday, Republican Senator Roy Blunt urged the government to negotiate an infrastructure measure that would represent approximately 30 percent of the proposed $ 2.25 trillion before turning to the budget vote make additional spending increases.

“My advice to the White House was to take this bipartisan victory, do it in a more traditional way of infrastructure, and then if you want to impose the rest of the package on Republicans in Congress and in the country, you can do it on anyone Case do. Said Mr. Blunt.

Importantly, Republicans have no interest in raising corporate taxes, which would essentially undo their most significant Trump-era legislative achievement. Also corporate groups that have helped in the past to make some bipartisan compromises on economic issues but have lost power in recent years as populist impulses have gripped both parties.

Senator Mitch McConnell, the Republican and minority leader in Kentucky, described the tax proposal as “an attempt to rewrite the 2017 tax bill,” which was passed through a budget vote without a Democratic vote.

The Trump tax bill “was largely responsible, in my opinion, for our February 2020 economy having the best economy in 50 years,” said McConnell. “But they’ll tear this off.”

Even so, business lobbyists and some lawmakers continue to hope that Mr Manchin’s appeal could induce Mr Biden and the leaders of Congress to make a number of miniature compromises on infrastructure. Such deals could include high spending on research and development for emerging industries like advanced batteries in the supply chain bill, which carries bipartisan sponsorship in the Senate. This could include hundreds of billions of dollars for highways and other land transportation projects. This could satisfy at least part of Mr. Manchin’s quest for bipartisanism and allow both parties to achieve victory.

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Biden Backs Taiwan, however Some Name for a Clearer Warning to China

WASHINGTON – If anything can turn the global power struggle between China and the United States into actual military conflict, many experts and administrators say it is the fate of Taiwan.

Beijing has increased its military harassment on what it believes to be rogue territory, including threatening flights by 15 Chinese fighter jets near its coast in recent days. In response, Biden government officials are trying to calibrate policies that will protect the democratic, tech-rich island without creating an armed conflict that would be catastrophic for all.

Under a long-standing – and notoriously confused – policy stemming from America’s “One China” position, which supports Taiwan without recognizing it as independent, the United States provides political and military support for Taiwan, but makes no explicit promises to counter it to defend a Chinese attack.

However, as China’s power and ambition grow, and Beijing views Washington as weakened and distracted, a debate is ongoing as to whether the United States should be more committed to defending the island, in part to reduce the risk of China’s miscalculation doing this could lead to unwanted war.

The debate reflects a key foreign policy challenge that the Biden government is facing as it draws up its broader Asia strategy. At the White House, the State Department and the Pentagon, which is reviewing its military stance in Asia, officials are reassessing the rationale of American strategy for a new and more dangerous phase of competition with China.

American officials warn that China is increasingly able to invade the island democracy of nearly 24 million people, located about 100 miles off the coast of mainland China, whose status has been since the retreat of Chinese nationalists and the formation of a government after the communist of Beijing 1949 has owned revolution.

Last month, the military commander for the Indo-Pacific region, Adm. Philip S. Davidson on what he sees as a risk that China may attempt to retake Taiwan by force within the next six years.

The United States has long avoided saying how it would react to such an attack. While Washington supports Taiwan with diplomatic contacts, arms sales, fixed language, and even the occasional military maneuver, there are no guarantees. No declaration, doctrine, or security arrangement compels the United States to save Taiwan. A 1979 Congressional law simply states that “any effort to determine the future of Taiwan by means other than peaceful means” would be “a serious concern of the United States.”

The result is known as “strategic ambiguity,” a careful balance so as not to provoke Beijing or encourage Taiwan to make a formal declaration of independence that could lead to a Chinese invasion.

Biden government officials formulating their China policy are paying special attention to Taiwan, trying to determine whether strategic ambiguity is sufficient to protect the increasingly vulnerable island from Beijing’s drafts. But they also recognize that after two decades of bloody and costly conflict in the Middle East, Americans may be unfavorable to new, distant military commitments.

For this reason, Admiral Davidson raised his eyebrows last month when, under questioning, contrary to usual government news, he confirmed that the policy “should be reconsidered” and added, “I look forward to hearing from you.”

“I think there has been a change in the way people think,” said Richard N. Haass, former director of policy planning at the State Department under President George W. Bush and now president of the Foreign Relations Council. “What you have seen over the past year is an acceleration of concern in the United States about Taiwan.” He described the feeling that “this delicate situation, which for decades seemed to have been successfully mastered or refined, suddenly awoke people with the possibility that this era has come to an end”.

Mr. Haass helped stimulate conversation on the matter last year after he published an article in the September issue of Foreign Affairs Magazine declaring that strategic ambiguity had “taken its course”.

“It is time for the United States to adopt a policy of strategic clarity: one that makes it clear that the United States would respond to any Chinese use of force against Taiwan,” wrote Haass with colleague David Sacks.

Mr. Haass and Mr. Sacks added that after four years under President Donald J. Trump ranting “endless wars” and openly questioning United States relations, Chinese leader Xi Jinping may question America’s willingness to its alliances to defend security commitments. A clearer promise, while more hawkish-sounding, would be safer, they argued.

“Such policies would reduce the likelihood of misjudging China, which is the most likely catalyst for a cross-strait war,” wrote Haass and Sacks.

In the past few months the idea has grown in prominence, including on Capitol Hill.

Florida Republican Senator Rick Scott has tabled a bill that would authorize the president to use military action to defend Taiwan against a Chinese attack – no longer making America’s intentions ambiguous. When Mr. Haass testified last month before a committee on the Foreign Relations Committee of the House of Representatives on Asia, he was filled with questions about how to deter the Chinese threat to Taiwan.

Speaking at a Washington Post event in February, Robert M. Gates, a former Secretary of Defense and CIA director who served under presidents of both parties, including Bush and Barack Obama, identified Taiwan as the facet of US relations and China, that was what concerned him most.

Mr. Gates said it “may be time to abandon our longstanding strategy of strategic ambiguity with Taiwan”.

The thought gained another unlikely support when former Representative Barney Frank, a Massachusetts Democrat and longtime diver in military matters, argued in an opinion piece in The Hill newspaper last month that the United States must guarantee, for human rights reasons, that one flourishing Asian democracy is protected from “being violently immersed in an outrageously brutal regime that exemplifies the denial of basic human rights”.

Mr. Frank cited China’s “imperviousness to other considerations” as violence as a reason “to save 23 million Taiwanese from the loss of their basic human rights.”

Though Taiwan has limited territorial value, it has also gained greater strategic importance in recent years as one of the world’s leading manufacturers of semiconductors – the high-tech equivalent of oil in the nascent supercomputing showdown between the US and China microchip supply shortages .

These factors combined have led the Biden government to back Taiwan, which some experts call surprisingly haunting.

When China sent dozens of fighter jets across the Taiwan Strait days after Mr. Biden’s inauguration in January, the State Department issued a statement declaring America’s “rock-solid” commitment to the island. Mr Biden raised the issue of Taiwan during his phone conversation with Mr Xi in February, and Foreign Secretary Antony J. Blinken and National Security Advisor Jake Sullivan raised their concerns about the island during their meeting in Anchorage last month with two front-line Chinese officials.

“I think people lean back to say to China,” Don’t get the math wrong – we strongly support Taiwan, “said Bonnie Glaser, director of the China Power Project at the Center for Strategic and International Studies.

Ms. Glaser said she was surprised at the Biden team’s early stance on Taiwan, which so far has maintained the Trump administration’s heightened political support for the island, a stance some critics have described as overly provocative. She noted that Mr Blinken had recently made a phone call calling for Paraguay’s president to maintain his country’s formal relations with Taiwan despite pressure from Beijing, and that the US ambassador to Palau, an archipelago state in the western Pacific, had recently joined a diplomatic delegation from that country to Taiwan.

“This is really outside of normal diplomatic practice,” said Ms. Glaser. “I think that was pretty unexpected.”

However, Ms. Glaser does not support a more explicit US commitment to Taiwan’s defense. Like many other analysts and American officials, she fears that such a policy change could provoke China.

“Maybe then Xi will be pushed into a corner. This could really lead to China making the decision to invade, ”she warned.

Others fear that a concrete American security guarantee would encourage Taiwan’s leaders to officially declare independence – an act which, given the island’s over 70 years of autonomy, symbolic as it may seem, would cross a clear red line for Beijing.

“Taiwan independence means war,” a spokesman for the Chinese Defense Ministry, Wu Qian, said in January.

Some analysts say the Biden government could manage to deter China without provoking it with more forceful warnings on the brink of explicit promises to defend Taiwan. US officials can also issue private warnings to Beijing that will not put Mr. Xi at risk of losing face in public.

“We only need China to understand that we would come to Taiwan’s defense,” said Elbridge A. Colby, a former deputy assistant secretary of defense for strategy and troop development under Trump.

The United States has long provided Taiwan with military equipment, including billions in arms sales under the Trump administration that included fighter jets and air-to-surface missiles that Taiwanese planes could use to attack China. Such devices are designed to reduce Taiwan’s need for American intervention if attacked.

But Mr Colby and others say the United States needs to develop a more credible military deterrent in the Pacific to keep up with recent advances by the Chinese military.

HR McMaster, a national security advisor to Mr. Trump, testified before the Senate Armed Forces Committee last month that the current ambiguity was sufficient.

“The message to China should be, ‘Hey, you can assume the United States won’t answer” – but that was also the assumption made when North Korea invaded South Korea in June 1950, “McMaster said.