Good morning and happy Mother’s Day. (Hi, mom!) Here’s the news you need to know for the week ahead in business and tech. — Charlotte Cowles
What’s Up? (May 2-8)
Economists expected the April jobs report to be full of great news — lower unemployment, robust hiring, confetti! And by most measures, they were disappointed. The pace of hiring actually slowed, and the unemployment rate rose slightly, to 6.1 percent, for the first time in a year. What’s going on? It’s complicated. Some lawmakers say that the government’s supplemental unemployment benefits are discouraging people from re-entering the work force, particularly in lower-wage positions. Others point to the millions of Americans who aren’t able to work because they’re managing child care, as many schools still aren’t yet back to normal operations. Either way, the country’s economic recovery isn’t going to be simple.
Is He In, or Out?
It’s been five months since Facebook barred former President Donald J. Trump indefinitely for his role in inciting the Jan. 6 insurrection at the Capitol. As for when to allow him back, the platform kicked the question over to its independent oversight board, a group of about 20 academics, human rights leaders and political figures from around the globe. Last Wednesday, the group upheld Facebook’s ban, but ruled that the company had to establish a clearer policy for it. Facebook now has six months to make a long-term decision about Mr. Trump’s account and create community standards that justify it.
are divorcing. Their eponymous foundation has an endowment of about $50 billion and spent over $1 billion to combat the coronavirus pandemic in the past year alone. The organization released a statement saying that the couple intends to remain co-chairs and trustees, and no changes are expected. Still, the divorce will affect their shared fortune, much of which has been pledged but not yet donated to the foundation. Mr. Gates, 65, co-founded Microsoft and is one of the richest people in the world.
What’s Next? (May 9-15)
Let’s Get Together
President Joseph R. Biden will hold a meeting with the four top House and Senate leaders, from both sides of the aisle, for the first time since taking office. House Speaker Nancy Pelosi, the Senate majority leader Chuck Schumer, and their Republican counterparts, Kevin McCarthy and Mitch McConnell, are expected to discuss Mr. Biden’s $4 trillion economic agenda and his plans to fund it by taxing the rich. Republican lawmakers have fought the proposals from day one. Sounds like a fun conversation.
The Inflation Debate
Warren Buffett, the chief executive of Berkshire Hathaway, says inflation is rising. The price of building materials and other consumer goods is going up as demand grows and production costs increase. But the Federal Reserve has repeatedly encouraged investors not to fret. Is the economy going to overheat, with interest rates so low? Probably a bit. But slightly higher prices for a temporary period is in step with the Fed’s general aim for an inflation rate of 2 percent on average over time, to make up for exceptionally weak gains over the past several years.
Share the Shots
The Biden administration has backed a temporary suspension of intellectual property rights for coronavirus vaccines, which would allow third-party drugmakers around the world to manufacture and distribute them to nations that need them. But the U.S. pharmaceutical industry is not happy about this, particularly those who hold the patents on these vaccines. (Pfizer alone generated $3.5 billion in revenue from its Covid-19 vaccine in the first three months of this year.) Representatives of the companies argue that suspending those patents will discourage future innovation and potentially decrease the safety standards of vaccine manufacturing and efficacy. Support from the White House does not guarantee that a waiver will happen, but it adds momentum.
That’s changing. The Biden administration and its allies are pushing the notion that caring for children — and the sick and the elderly — is just as crucial to a functioning economy as any road, electric grid or building. It’s human infrastructure, they argue, echoing a line of thought long articulated by feminist economists (and often ignored).
President Biden included money for home-based care for the elderly and the disabled under the umbrella of infrastructure, as part of a $2 trillion package he proposed in March. The next month, he proposed more funding for paid family leave, universal pre-K and $225 billion for child care.
The ambitious legislation is going to face huge hurdles in Congress, but Dr. Folbre, now 68, is both cautiously optimistic and heartened by the culture shift: “I often say to myself I’m glad I lived this long so I can say maybe I had a point.”
Every snag in the system
Mariel Mendez and her husband, David, each the first in their immigrant families to earn college degrees and find rewarding careers, assumed they’d rely on high-quality child care to make everything work. She holds a master’s in public health from Columbia University and works at a nonprofit near Kent, Wash., where they live; he has a master’s in education policy and works as a coach for elementary school teachers.
Yet, now they’re debating if one of them should stop working altogether.
Over the past year, the Mendezes have cycled through four different child-care arrangements for Milea, their 2-and-a-half-year-old daughter, starting with an overcrowded center they felt was unsafe, then a back-and-forth with an in-home day care struggling to survive through the pandemic, and a stressful marathon at home managing remote work and never-ending toddler duty.
“We’re starting to think for our mental health and for our relationship as a family, does it make more sense for one of us to step down, shift to part time?” said Ms. Mendez, 28, who is expecting another baby in June. The prospect of an infant, a full-time job and a still uncertain child-care arrangement is overwhelming. “I never thought I’d be here. That we would all be here,” she said.
But in a sense it was inevitable that they would be, since they were headed toward a cliff — with no bridge spanning it.
Mary Beth Meehan is an independent photographer and writer. Fred Turner is a professor of communication at Stanford University.
The workers of Silicon Valley rarely look like the men idealized in its lore. They are sometimes heavier, sometimes older, often female, often darker skinned. Many migrated from elsewhere. And most earn far less than Mark Zuckerberg or Tim Cook.
This is a place of divides.
As the valley’s tech companies have driven the American economy since the Great Recession, the region has remained one of the most unequal in the United States.
During the depths of the pandemic, four in 10 families in the area with children could not be sure that they would have enough to eat on any given day, according to an analysis by the Silicon Valley Institute for Regional Studies. Just months later, Elon Musk, the chief executive of Tesla, who recently added “Technoking” to his title, briefly became the world’s richest man. The median home price in Santa Clara County — home to Apple and Alphabet — is now $1.4 million, according to the California Association of Realtors.
For those who have not been fortunate enough to make billionaire lists, for midlevel engineers and food truck workers and longtime residents, the valley has become increasingly inhospitable, testing their resilience and resolve.
Seeing Silicon Valley,” from which this photo essay is excerpted.
Ravi and Gouthami
it would give $1 billion in loans, grants and land toward creating more affordable housing in the area. Of that pledge, $25 million would go toward building housing for educators: 120 apartments, including for Konstance and the other teachers in the original pilot as long as they were working in nearby schools.
At the time of the announcement, Facebook said the money would be used over the next decade. Construction on the teacher housing has yet to be completed.
One day Geraldine received a phone call from a friend: “They’re taking our churches!” her friend said. It was 2015, when Facebook was expanding in the Menlo Park neighborhood where she lived. Her father-in-law had established a tiny church here 55 years before, and Geraldine, a church leader, couldn’t let it be torn down. The City Council was holding a meeting for the community that night. “So I went to the meeting,” she said. “You had to write your name on a paper to be heard, so I did that. They called my name and I went up there bravely, and I talked.”
Geraldine doesn’t remember exactly what she said, but she stood up and prayed — and, ultimately, the congregation was able to keep the church. “God really did it,” she said. “I didn’t have nothing to do with that. It was God.”
In 2016, Gee and Virginia bought a five-bedroom house in Los Gatos, a pricey town nestled beside coastal foothills. Houses on their street cost just under $2 million at the time, and theirs was big enough for each of their two children to have a bedroom and for their parents to visit them from Taiwan.
Together, the couple earn about $350,000 a year — more than six times the national household average. Virginia works in the finance department of Hewlett-Packard in Palo Alto, and Gee was an early employee of a start-up that developed an online auctioning app.
They have wanted to buy nice furniture for the house, but between their mortgage and child care expenses, they don’t think they can afford to buy it all at once. Some of their rooms now sit empty. Gee said that Silicon Valley salaries like theirs sounded like real wealth to the rest of the country, but that here it didn’t always feel that way.
Jon lives in East Palo Alto, a traditionally lower-income area separated from the rest of Silicon Valley by Highway 101.
By the time Jon was in the eighth grade he knew he wanted to go to college, and he was accepted by a rigorous private high school for low-income children. He discovered an aptitude for computers, and excelled in school and professional internships. Yet as he advanced in his career, he realized that wherever he went there were very few people who looked like him.
“I got really troubled,” he said. “I didn’t know who to talk to, and I saw that it wasn’t a problem for them. I was just like ‘I need to do something about this.’”
Jon, now in his 30s, has come back to East Palo Alto, where he has developed maker spaces and brought tech-related education projects to members of the community.
“It is amazing living here,” said Erfan, who moved to Mountain View when her husband got a job as an engineer at Google. “But it’s not a place I want to spend my whole life. There are lots of opportunities for work, but it’s all about the technology, the speed for new technology, new ideas, new everything.” The couple had previously lived in Canada after emigrating from Iran.
“We never had these opportunities back home, in Iran. I know that — I don’t want to complain,” she added. “When I tell people I’m living in the Bay Area, they say: ‘You’re so lucky — it must be like heaven! You must be so rich.’”
But the emotional toll can be weighty. “We are sometimes happy, but also very anxious, very stressed. You have to be worried if you lose your job, because the cost of living is very high, and it’s very competitive. It’s not that easy — come here, live in California, become a millionaire. It’s not that simple. ”
Elizabeth studied at Stanford and works as a security guard for a major tech firm in the area. She is also homeless.
Sitting on a panel about the issue at San Jose State University in 2017, she said, “Please remember that many of the homeless — and there are many more of us than are captured in the census — work in the same companies that you do.” (She declined to disclose which company she worked for out of fear of reprisal.)
While sometimes homeless co-workers may often serve food in cafeterias or clean buildings, she added, many times they’re white-collar professionals.
“Sometimes it takes only one mistake, one financial mistake, sometimes it takes just one medical catastrophe. Sometimes it takes one tiny little lapse in insurance — it can be a number of things. But the fact is that there’s lots of middle-class people that fell into poverty very recently,” she said. “Their homelessness that was just supposed to be a month or two months until they recovered, or three months, turns out to stretch into years. Please remember, there are a lot of us.”
WASHINGTON — The disappointing jobs report released Friday by the Labor Department is posing the greatest test yet of President Biden’s strategy to revive the economy, with business groups and Republicans warning that the president’s policies are causing a labor shortage and that his broader agenda risks stoking runaway inflation.
But the Biden administration showed no signs on Friday of changing course, with the president defending the more generous jobless benefits included in the $1.9 trillion bill he signed into law in March and saying the $4 trillion in spending he proposed for infrastructure, child care, education and other measures would help create more and better-paying jobs after the pandemic.
Speaking at the White House, Mr. Biden urged “perspective” on the report, which showed only 266,000 new jobs added in April. He said it would take time for his aid bill to fully reinvigorate the economy and hailed the more than 1.5 million jobs added since he took office. And he rejected what he called “loose talk that Americans just don’t want to work.”
“The data shows that more workers are looking for jobs,” he said, “and many can’t find them.”
Republicans cast the report as a sign of failure for Mr. Biden’s policies, even though job creation has accelerated since Mr. Biden replaced President Donald J. Trump in the White House. They called on his administration to end the $300 weekly unemployment supplement, while several Republican governors — including those in Arkansas, Montana and South Carolina — moved to end the benefit for unemployed people in their states, citing worker shortages.
relief money to subsidize tax cuts, which could further slow the rollout.
Mr. Biden said at the White House that the administration would begin releasing the first batch of money to state and local governments this month. He said the money would not restore all of the lost jobs in one month, “but you’re going to start seeing those jobs in state and local workers coming back.”
The administration also took steps on Friday to get money out the door more quickly, saying the Treasury Department would release $21.6 billion of rental assistance that was included in the pandemic relief legislation to provide additional support to millions of people who could be facing eviction in the coming months.
Officials said they expected increased vaccination rates to ease some lingering fears about returning to jobs in the pandemic. The number of Americans 18 to 64 who are fully vaccinated grew by 22 million from mid-April, when the survey for the jobs report was conducted, to Friday. That was an acceleration from the previous month. Some White House officials said the administration’s push to further increase the ranks of the vaccinated could be the most important policy variable for the economy this summer.
Treasury Secretary Janet L. Yellen, speaking at the White House, said that a lack of child care related to irregular school schedules was making it a challenge to get the labor market back to full strength. She also said that health concerns about the pandemic were holding back some workers who might return to the market.
“I don’t think that the addition to unemployment compensation is really the factor that’s making the difference,” Ms. Yellen said.
She said that she believed the labor market was healthier than the figures released on Friday suggested, but she allowed that the economic recovery would take time.
“We’ve had a very unusual hit to our economy,” Ms. Yellen said, “and the road back is going to be somewhat bumpy.”
Ms. Boushey and Mr. Bernstein said that it appeared the economy was working through a variety of rapid changes related to the pandemic, including supply chain disruptions that have hurt automobile manufacturing by reducing the availability of semiconductor chips and businesses beginning to rehire after a year of depressed activity because of the virus.
“It’s our view that these misalignments and bottlenecks are transitory,” Mr. Bernstein said, “and they’re what you expect from an economy going from shutdown to reopening.”
Other key economic officials treated the report as a sign that the labor recovery ahead is likely to prove wildly unpredictable. Robert S. Kaplan, the president at the Federal Reserve Bank of Dallas, said in an interview that his economics team had warned him that the April report might show a significant slowdown as shortages of materials — including lumber and computer chips — and labor bit into employment growth.
He said he was hoping to see those supply bottlenecks cleared up, but he was watching carefully in case they did not resolve quickly.
“It shows me that getting the unemployment rate down and moving forward to improved employment to population is going to have fits and starts,” Mr. Kaplan said. He noted that sectors that were struggling to acquire materials, like manufacturing, shed jobs, and he said leisure and hospitality companies would have added more positions if not for challenges in finding labor.
“It’s just one jobs report,” cautioned Tom Barkin, the president of the Federal Reserve Bank of Richmond, in Virginia. But he said labor supply issues could be at play: Some people may have retired, others may have health concerns, and unemployment insurance could be encouraging low-paid workers to stay at home or allowing them to come back on their own terms.
“I get the feeling that people are being choosy,” Mr. Barkin said. “The first question I have in my mind is — is it temporary or is it more structural?”
He said that the supply constraints playing out were likely to fade over time, and that while businesses complain about rising input costs and might have to raise entry-level wages somewhat, he struggled to see that leading to much higher inflation — the kind that would worry the Fed.
The Fed is trying to achieve maximum employment and stable inflation around 2 percent on average. It has pledged to keep its cheap-money policies, which make borrowing inexpensive, in place until it sees realized progress toward those goals.
Neel Kashkari, the president of the Federal Reserve Bank of Minneapolis, said the payrolls disappointment vindicated the Fed’s slow-moving stance.
“I feel very good about our policy approach, which is outcome-based,” Mr. Kashkari said, speaking on a Bloomberg television interview shortly after the report came out. “Let’s actually allow the labor market to recover, let’s not just forecast that it’s going to recover.”
their Covid-19 vaccine for use in people 16 and older. The vaccine is currently being administered to adults in America under an emergency use authorization granted in December.
The approval process is likely to take months.
The companies said in a statement on Friday that they had submitted their clinical data, which includes six months of information on the vaccine’s safety and efficacy, to the F.D.A. They plan to submit additional material, including information about the manufacturing of the vaccine, in the coming weeks.
“We are proud of the tremendous progress we’ve made since December in delivering vaccines to millions of Americans, in collaboration with the U.S. government,” Dr. Albert Bourla, Pfizer’s chief executive, said in the statement. “We look forward to working with the F.D.A. to complete this rolling submission and support their review, with the goal of securing full regulatory approval of the vaccine in the coming months.”
As of Thursday, more than 134 million doses of the vaccine had been administered in the United States, according to the Centers for Disease Control and Prevention. Full approval would allow Pfizer and BioNTech to market the vaccine directly to customers.
It could also make it easier for companies, government agencies and schools to require vaccinations. The Equal Employment Opportunity Commission said in December that employers could mandate vaccination, and legal experts have generally agreed.
Many companies have been hesitant to require the vaccines, especially while they have only emergency authorization, which is designed to be temporary. Some institutions, like the University of California and California State University systems, have said that they would do so only after a vaccine has full approval.
Full approval could also prompt the U.S. military, which has had low uptake of Covid-19 vaccines, to mandate vaccinations for service members.
If the F.D.A. grants full approval, it could also help raise confidence in the vaccine. The pace of vaccination has slowed in the United States in recent weeks, and a recent national survey indicated that most people in the country who planned to get the shots had already done so.
The agency is also expected to issue an emergency authorization for use of the Pfizer-BioNTech vaccine in 12- to 15-year-olds next week. The companies have said that they plan to file for emergency authorization for 2- to 11-year-olds in September.
Moderna plans to apply for full approval for its Covid-19 vaccine this month, the company said during its quarterly earnings call on Thursday.
— Emily Anthes
Dr. Nancy Messonnier, who famously warned the nation early last year that the coronavirus would upend their lives, resigned from her position at the Centers for Disease Control and Protection on Friday.
Dr. Messonnier’s resignation is effective May 14. She is taking on a new role as an executive director at the Skoll Foundation, a philanthropical organization based in Palo Alto, Calif., she told staff in an email on Friday.
Her exit may augur more changes at the agency. Reports have circulated for weeks that the C.D.C.’s new director, Dr. Rochelle Walensky, planned to completely reorganize the division Dr. Messonnier led.
“My family and I have determined that now is the best time for me to transition to a new phase of my career,” Dr. Messonnier wrote in the email to staff.
Dr. Messonnier began her career in public health in 1995 with a stint in the prestigious Epidemic Intelligence Service. She has since held a number of leadership posts in the C.D.C. Since 2016, she has served as director of the National Center for Immunization and Respiratory Diseases, the C.D.C. division responsible for managing influenza and other respiratory threats.
In late 2019, she became the agency’s lead in responding to the coronavirus, and initially shared a stage with President Trump at briefings about the coronavirus.
She fell out of favor with President Trump and sent stocks tumbling after she sounded a dire alarm about the coronavirus, saying it would disrupt the lives of every American.
“It’s not a question of if this will happen but when this will happen and how many people in this country will have severe illnesses,” she said on Feb. 25, just as Mr. Trump was boarding Air Force One in New Delhi for his flight home.
Soon after that, she stopped appearing at briefings of the White House and of the C.D.C.
India’s worsening coronavirus outbreak has spread far outside its cities to rural areas with poor health care infrastructure and limited testing capacities, doctors and experts say.
One factor behind the surge of cases, they believe, is a series of recent campaign rallies held without social distancing.
The state of West Bengal, where Prime Minister Narendra Modi’s party lost an election last week after more than a month of campaigning to vast crowds, is recording the highest rate of positive coronavirus tests in the country. More than 31 percent of tests in the state are now coming back positive.
“There is a clear pattern here: States that went through elections and where large rallies were held are witnessing a huge rise in cases,” said Dr. Thekkekara Jacob John, a senior virologist in the southern state of Tamil Nadu.
In Uttar Pradesh, India’s most populous state, 1,028 new coronavirus cases and four deaths were recorded on March 26. On April 29, after campaigns for local village council elections were held, there were 35,104 cases and 288 deaths. A teachers’ union in the state said that 577 teachers and support staff members who were on duty as election workers had died of Covid-19.
The country’s cases as a whole have been skyrocketing since late March, from a seven-day average of more than 62,000 on March 31 to more than 385,000, according to the Our World in Data project at the University of Oxford. On Friday, the country reported more than 410,000 new daily infections, a record, and more than 3,900 deaths.
As the outbreak reaches new heights, India’s vaccination campaign has slowed down, marred by supply shortages and competition among states.
The official daily death in the country has stayed over 3,000 over the past 10 days, and experts say the numbers are much higher,.
The true scope of the outbreak remains hard to measure. Nationwide, India conducted about 1.9 million coronavirus tests on Thursday, an increase from about 1.2 million daily tests last month, but hardly enough to keep up with a daily caseload that has almost quadrupled in that time.
West Bengal, a state of 90 million people that has poor health care infrastructure and is under a partial lockdown, has carried out fewer than 60,000 coronavirus tests a day. That is one of the lowest rates in the country, according to data compiled by researchers at the University of Michigan.
Dr. Abhijeet Barua, a physician in Kolkata, the state’s capital, said that cases had exploded in every corner of the city and that infections were spreading quickly in the state’s rural areas. At his 10-bed clinic, two people have died every day over the past 15 days, Dr. Barua said.
“What is making things worse in Kolkata is that over 70 percent of the population lives in close contact,” he said, adding that he was receiving dozens of calls a day from patients seeking help. “You can’t isolate yourself, because it is so congested here.”
Mr. Modi has repeatedly refrained from imposing a nationwide lockdown. Instead nearly a dozen of India’s 28 states have imposed restrictions, though they are less stringent than the nationwide lockdown put in place last year.
TOKYO — Japan on Friday extended a state of emergency in Tokyo and other regions until the end of May to contain a surge of coronavirus cases, casting further doubt on the country’s ability to safely host the Summer Olympics, which are scheduled to begin in 11 weeks.
Prime Minister Yoshihide Suga made the announcement at a meeting of the government’s coronavirus task force, saying that the measures were necessary because infections remain at a “high level, mainly in large cities.”
The announcement extends emergency measures imposed last month to two more prefectures, covering a total of six prefectures, including Tokyo and Osaka, that are together home to over a third of Japan’s 126 million people. Another eight prefectures will be under slightly looser restrictions.
The existing state of emergency, which were imposed to curb travel during the just-ended Golden Week holiday period and had been set to expire next week, have not slowed Japan’s fourth wave of coronavirus infections. In early March, the country recorded about 1,000 daily new. It is now recording nearly 6,000, according to a New York Times database.
Health officials say that they are seeing a growing number of cases of coronavirus variants spreading in the population, including at least 26 cases of the strain first detected in India. The authorities in Tokyo say that in four out of five cases found in the city, the infected person neither traveled abroad nor had close contact with someone who had.
The outbreak is stretching health care systems even in Japan’s biggest cities. On Thursday, there were 370 people being treated for serious cases of Covid-19 in Osaka, a prefecture of nine million people, more than the number of hospital beds available for seriously ill patients.
Japan, which has recorded more than 620,000 infections and 10,000 deaths since the start of the pandemic, has controlled the virus better than many countries. But the government has faced criticism for the sluggish pace of vaccinations, and for pledging to go ahead with the Tokyo Olympics, scheduled to begin on July 23, despite widespread public opposition.
Toru Hashimoto, a lawyer and a former governor of Osaka prefecture, said on a television show on Friday that Olympic organizers were ignoring the severity of Japan’s outbreak, and that it was inappropriate to continue holding pre-Olympic “test events” during the state of emergency, even though they are taking place without spectators.
“If the government wants to reduce the number of people in the city, it’s not a time when test events can be held,” Mr. Hashimoto said.
The government has imposed two previous states of emergency during the pandemic, although they are looser than the total lockdowns seen in many nations. The measures allow the prefectures to ask businesses to close or to restrict their hours, and to fine those that do not.
Under the extended state of emergency, people are asked not to go out for nonessential matters, especially after 8 p.m., and to refrain from traveling outside their prefectures. Karaoke parlors are asked to close, and restaurants requested not to serve alcohol, with fines of up to 300,000 yen, or $2,750, for noncompliance.
A global debate is heating up over how to get Covid-19 vaccines to the nations most in need.
The United States is supporting an effort to suspend intellectual property protections on Covid-19 vaccines, and European countries say that richer nations should begin exporting more of their vaccine supply to poorer ones.
The European Union — whose approval is needed for any waiver of vaccine patents — said on Thursday that it would consider the Biden administration’s proposal. But Germany, the bloc’s largest economy, said that pushing pharmaceutical companies to share vaccine patents could have “significant implications” for the production of vaccines.
“The limiting factor in vaccine manufacturing is production capacity and high-quality standards, not patents,” a spokeswoman for Chancellor Angela Merkel of Germany said in a statement.
On Friday, Canada shared similar concerns. “Our government firmly believes in the importance of protecting intellectual property and recognizes the integral role that industry has played in innovating to develop and deliver lifesaving Covid-19 vaccines,” the minister of small businesses, Mary Ng, said in a statement.
She added many barriers to vaccine access, like supply shortages, were unrelated to intellectual property.
The European Commission president, Ursula von der Leyen, said the bloc was “ready to discuss any proposals that address the crisis in an effective and pragmatic manner.”
She also suggested, however, that the focus should be on getting more vaccines to countries that needed them by following the bloc’s example in allowing significant exports of doses. The United States has balked at that approach, keeping most doses produced domestically for use at home.
“We call upon all vaccine-producing countries to allow export and to avoid measures that disrupt the supply chains,” Ms. von der Leyen said.
The European statements emphasized the challenges of winning E.U. support for the waivers at the World Trade Organization, where the bloc wields significant influence, and where unanimous approval would be needed for any measure to suspend patents.
Many experts believe that the waivers are needed to expand the manufacturing of vaccines and get them to poorer parts of the world where inoculations have far lagged behind those of richer countries.
Until the Biden administration’s announcement this week, the United States had been a major holdout at the W.T.O. over a proposal by India and South Africa to suspend some intellectual property protections. The move could give drugmakers access to the trade secrets of how the vaccines are made.
The pharmaceutical industry has argued that suspending patent protections would undermine risk-taking and innovation.
“Who will make the vaccine next time?” Brent Saunders, the former chief executive of Allergan, which is now part of AbbVie, wrote on Twitter.
But Stephane Bancel, the chief executive of Moderna, told investors on Thursday, “We saw the news last night, and I didn’t lose a minute of sleep.”
Mr. Bancel said his company never planned to enforce the patent because few, if any, other drug makers can easily manufacture mRNA, the genetic script that carries DNA instructions to each cell’s protein-making machinery.
The debate arises amid a growing divide between wealthy nations that are slowly regaining normal life, and poorer countries that are confronting new and devastating outbreaks.
In India, which is suffering the world’s worst outbreak since the start of the pandemic, only 2.2 percent of the population is fully vaccinated, according to a New York Times database. South Africa has fully vaccinated less than 1 percent of its people. By contrast, vaccinations are slowing down in the United States — where one-third of people are fully inoculated — as they begin to pick up in Europe.
If the European Union agrees to support patent waivers, it would take months for developing nations to see the impact. Ngozi Okonjo-Iweala, the head of the W.T.O., told The Washington Post that she would press member countries to reach an agreement by Dec. 3.
Even if a waiver receives support from the trade body, it alone would not increase the world’s vaccine supply. Large drug manufacturers in India and elsewhere would need extensive technological and other support to produce doses, experts say.
Lifting intellectual property protections “is only one element,” said Anant Bhan, a health researcher at Melaka Manipal Medical College in southern India. Because of the additional steps required to begin making a vaccine on a huge scale, he said, “it is not going to mean increased access to vaccines in the near future.”
The American jobs engine slowed markedly last month, confounding rosy forecasts of the pace of the recovery and sharpening debates over how best to revive a labor market that was severely weakened by the coronavirus pandemic.
Employers added 266,000 jobs in April, the government reported Friday, far below the vigorous gains registered in March. The jobless rate rose slightly to 6.1 percent, as more people rejoined the labor force.
“It turns out it’s easier to put an economy into a coma than wake it up,” Diane Swonk, chief economist for the accounting firm Grant Thornton, said of the disappointing report. “It’s understandable, it’s going to take some time, you’re not just going to snap your fingers and get everyone back to work,
Economists had forecast an addition of about a million jobs. The increase for March was revised down to 770,000 from 916,000.
The Alliance for American Manufacturing blamed supply chain problems for the loss of 18,000 jobs in that sector, noting in particular the impact that a shortage of semiconductors has had on the automotive industry.
And many offices are not yet ready to reopen fully. “I just think it takes a while for businesses to figure out how many people they need,” Ms. Swonk said, noting there is still a lot of skittishness on the part of employers and workers. “I don’t view this as terribly troubling or distressing.”
Ben Herzon, executive director of U.S. economics at the financial services company IHS Markit, agreed. “A single report with unexpected weakness in job gains is not a cause for concern,” he said. “Demand is picking up, activity is picking up.”
He noted that labor force participation had been on the upswing for two months in a row, rising to 61.7 percent last month from 61.4 percent in February.
More opportunities are bubbling up as coronavirus infections ebb, vaccinations spread, restrictions lift and businesses reopen. Job postings on the online job site Indeed are 24 percent higher than they were in February last year.
“There’s been a broad-based pickup in demand,” said Nick Bunker, who leads North American economic research at the Indeed Hiring Lab. The supercharged housing market is driving demand for construction workers. There is also an abundance of loading, stocking and other warehousing jobs — a side-effect of the boom in e-commerce.
The economy still has a lot of ground to regain before returning to prepandemic levels. Millions of jobs have vanished since February 2020, and the labor force has shrunk.
–8.2 million since February 2020
152.5 million jobs in February 2020
As the economy fitfully recovers, there are divergent accounts of what’s going on in the labor market. Employers, particularly in the restaurant and hospitality industry, have reported scant response to help-wanted ads. Several have blamed what they call overly generous government jobless benefits, including a temporary $300-a-week federal stipend that was part of an emergency pandemic relief program.
But there are other forces constraining the return to work. Millions of Americans have said that health concerns and child care responsibilities — with many schools and day care centers not back to normal operations — have prevented them from returning to work. Millions of others who are not actively job hunting are considered on temporary layoff and expect to be hired back by their previous employers once more businesses reopen fully. At the same time, some baby boomers have retired or switched to working part time.
A series of vaccine developments and the loosening of restrictions amid an improving virus trajectory may foreshadow a welcome return to normalcy for many young Americans, just as summer vacation nears.
By early next week, the Food and Drug Administration is expected to issue an emergency use authorization allowing the Pfizer-BioNTech coronavirus vaccine to be used in children 12 to 15 years old, a major step ahead in the United States’ efforts to tackle Covid-19. Pfizer also expects to seek federal clearance in September to administer the vaccine to children age 2 to 11, the company said on Tuesday.
Vaccinating children is key to raising the level of immunity in the population, experts say, and to bringing down the numbers of hospitalizations and deaths. It could also put school administrators, teachers and parents at ease if millions of adolescent students become eligible for vaccination before the next academic year begins.
The move would be a major leap forward, experts say, and comes as the director of the Centers for Disease Control and Prevention, Dr. Rochelle Walensky, said that vaccinated adolescents would be able to remove their masks outdoors at summer camps.
Yet the eagerness of parents to let their children be vaccinated is limited, according to a new national poll, which found that three in 10 parents surveyed said they would get their children vaccinated right away and 26 percent said they wanted to wait to see how the vaccine was working. About 23 percent said they would definitely not get their children vaccinated, and 18 percent said they would do so only if a child’s school required it. The survey also noted that only 9 percent of respondents said they had not yet gotten a shot but still intended to do so, one more indication that achieving widespread immunity in the United States is becoming increasingly challenging.
As health experts focus on the future of vaccinating children, a growing number of students have returned to in-person learning this school year. In March, 54 percent of K-8 schools were open for full-time in-person learning, and 88 percent were open for either full-time in-person and/or hybrid learning, according to data from a federal government survey released on Thursday. But Black, Hispanic and Asian students are enrolled in full-time in-person learning at much lower rates than white students.
The Biden administration has made an aggressive push for reopening schools in recent months, including an effort to prioritize vaccinations for teachers and employees.
Britain’s vaccines regulator advised on Friday that all adults under 40 in the country should be offered alternatives to AstraZeneca’s Covid-19 vaccine. It factored in concerns over very rare blood clots, the dwindling risk of severe coronavirus infection in younger adults and the availability of alternatives.
The guidance extends earlier advice that people under 30 would be offered alternative doses.
The use of the AstraZeneca vaccine has been marred by uncertainty after reports of a possible link between the doses and very rare blood clots, but public health experts around the world say that the vaccine’s benefits far outweigh the risks for most people.
Britain’s Joint Committee on Vaccination and Immunization stressed that the chances of younger people becoming seriously ill with the coronavirus had grown smaller as infection rates decrease across the country. It said that this new reality paired with the availability of alternative vaccines had factored into the decision.
But the country is also closely monitoring new variants of the coronavirus, and on Friday public health officials in England noted that a variant first detected in India was now considered a “variant of concern” — meaning that it is at least as transmissible as the dominant variant in Britain. The cases identified in the country more than doubled from 202 to 520 in the week, but still account for just a fraction of the cases there.
While there is still not enough evidence to indicate whether any of the variants recently detected in India cause more severe illness or render vaccines any less effective, Britain is proceeding with caution. Most of the identified cases of the variant are in London and in the town of Bolton in the northwestern England.
Regarding the AstraZeneca vaccine, the regulator advised that where available, an alternative should be offered to healthy adults under 40, though it stressed that potentially severe side effects from the doses were “extremely rare.” It noted that “for the vast majority of people, the benefits of preventing serious illness and death far outweigh any risks.”
The vaccination committee advised that anyone who received a first dose of the AstraZeneca vaccine should still receive a second, except those who experienced clotting.
Britain’s medicines regulatory agency had received reports of 242 cases of blood clots accompanied by low platelet counts in people who received the AstraZeneca vaccine through April 28. As of that date, about 22.6 million AstraZeneca doses had been administered in Britain, including about 5.9 million second doses.
Over all, about 35 million people in the country have received at least one dose of a coronavirus vaccine.
One returning pilot lost control of an aircraft during landing and skidded off the runway into a ditch. Another just returning from furlough forgot to activate a critical anti-icing system designed to prevent hazards in cold weather. Several others flew at the wrong altitudes, which they attributed to distractions and lapses in communication.
In all of these incidents, which were recorded on NASA’s Aviation Safety Reporting System, a database of commercial aviation mistakes that are anonymously reported by pilots and other airline crew, the pilots involved blamed the same thing for their mistakes: a lack of practice flying during the pandemic.
In 2020, global air passenger traffic experienced the largest year-on-year decline in aviation history, falling 65.9 percent compared with 2019, according to the International Air Transport Association. Flights were grounded, schedules reduced and thousands of pilots were laid off or put on furlough for up to 12 months.
As vaccination programs pick up speed across some parts of the world and travel starts to rebound, airlines are beginning to reactivate their fleets and summoning pilots back as they prepare to expand their schedules for the summer. But returning pilots can’t just pick up where they left off.
“It’s not quite like riding a bike,” said Joe Townshend, a former pilot for Titan Airways, a British charter airline, who was laid off when the pandemic hit in March last year.
“You can probably go 10 years without flying a plane and still get it off the ground,” he said, “but what fades is the operational side of things.”
Although Covid-19 is primarily a respiratory disease, research conducted early in the pandemic revealed that people infected with the coronavirus often shed it in their stool. This finding, combined with the scale and urgency of the crisis, spurred immediate interest in tracking the virus by sampling wastewater.
In the past year, many scientists have been drawn into the once niche field of wastewater epidemiology. Researchers in 54 countries are tracking the coronavirus in sewage, according to the Covid19Poops Dashboard, a global directory of the projects.
These teams have found that the wastewater data seemed to accurately indicate what was happening in society. When the number of diagnosed Covid-19 cases in an area increased, more coronavirus appeared in the wastewater. Levels of the virus fell when areas instituted lockdowns and surged when they reopened.
Several teams have also confirmed that sewage can serve as an early warning system: Wastewater viral levels often peaked days before doctors saw a peak in official Covid-19 cases.
And wastewater analysis has allowed scientists to detect the arrival of certain variants in a region weeks before they are found in people — and to identify mutations that have not yet been detected in people anywhere.
The surveillance is not a replacement for clinical testing, experts said, but can be an efficient and cost-effective complement. The approach is likely to be especially valuable in low- and middle-income countries, where testing resources are more limited.
“Not every population gets tested, not everyone has access to health care,” said Dr. Marc Johnson, a virologist at the University of Missouri. “If there’s groups of people that are asymptomatic, they probably aren’t getting tested either. So you aren’t really getting the full big picture. Whereas for our testing, everyone poops.”
— Emily Anthes
Australia will resume repatriation flights for Australian nationals in India after May 15, Prime Minister Scott Morrison said on Friday.
The resumption will end a travel ban that made it a criminal offense for citizens and residents of Australia to enter the country from India. No other democratic nation has issued a similar ban on all arrivals.
Australians who test positive for the coronavirus will not be allowed to travel, officials said, and the government has introduced a pre-departure testing regime in India in an effort to catch infections before they reach Australia.
Critics of the travel ban have accused the government of racism and insensitivity, but officials have said that the restrictions are necessary to prevent transmission from the devastating outbreak in India.
Australian officials initially said that anyone trying to return from India faced up to five years in prison and nearly 60,000 Australian dollars ($46,300). But as the measure came under withering criticism this week, Mr. Morrison said it was “highly unlikely” that those seeking to return home would actually face jail.
In other news from around the world:
Tunisia will enter a weeklong nationwide lockdown starting on Sunday, Prime Minister Hichem Mechichi said on Friday. The country of nearly 12 million people has reported 11,122 deaths and 315,000 cases, according a New York Times database.
jobs report Friday morning. Forecasters surveyed by Bloomberg estimate that payrolls grew by 978,000 last month and that the unemployment rate fell to 5.8 percent from 6 percent.
As coronavirus infections ebb, vaccinations spread, restrictions lift and businesses reopen, the labor market has been healing. The March gain, subject to revision on Friday, was 916,000.
“Recovery in employment will come in fits and starts,” said Diane Swonk, chief economist at the accounting firm Grant Thornton. “But we’re going to see a lot of strong gains this year.”
Mall traffic has picked up, Ms. Swonk said, but manufacturing may be hobbled by bottlenecks in the supply chain. Restaurants, hotels and travel are coming back online, she said, but it is unclear whether the job increases in those industries will exceed the seasonal gains typical at this time of year.
The economy still has a lot of ground to recover before returning to prepandemic levels. In March, there were roughly 8.4 million fewer jobs than in February 2020, and the labor force has shrunk.
Employers, particularly in the restaurant and hospitality industry, have reported scant response to help-wanted ads. Several have blamed what they call overly generous government jobless benefits, including a temporary $300-a-week federal stipend that was part of an emergency pandemic relief program.
But the most solid evidence of a real shortage of workers, many economists say, would be rising wages. And that is not happening in a sustained way. As Jerome H. Powell, the Federal Reserve chair, said at a news conference last week: “We don’t see wages moving up yet. And presumably we would see that in a really tight labor market.”
Millions of Americans have said that health concerns and child care responsibilities — with many schools and day care centers not back to normal operations — have kept them from returning to work. Millions of others who are not actively job hunting are considered on temporary layoff and expect to be hired back by their previous employers once more businesses reopen fully.
The good news, said Robert Rosener, a senior U.S. economist at Morgan Stanley, is that the choppiness in the labor market that results from successive rounds of openings and closings seems to be easing. “People are going back to work and are more likely to stay at work,” he said.
This week the Republican governors of Montana and South Carolina said they planned to cut off federally funded pandemic unemployment assistance at the end of June, citing complaints by employers about severe labor shortages.
That means jobless workers there will no longer get a $300-a-week federal supplement to state benefits, and the states will abandon a pandemic program that helps freelancers and others who don’t qualify for state unemployment insurance. (Montana will, however, offer a $1,200 bonus for those taking jobs.)
“What was intended to be short-term financial assistance for the vulnerable and displaced during the height of the pandemic has turned into a dangerous federal entitlement, incentivizing and paying workers to stay at home,” declared Gov. Henry McMaster of South Carolina.
But that view is just one piece of a broad debate about the impact of temporarily enhanced unemployment benefits during the pandemic.
Gail Myer, whose family owns six hotels in Branson, Mo., says the $300-supplement is indeed a barrier to hiring. “I talk to people all over the country on a regular basis in the hospitality industry, and the No. 1 topic of discussion is shortage of labor,” he said.
Before the pandemic, Mr. Myer said, there were about 150 full-time employees at his six hotels. Now, staffing is down about 15 percent, he said. Jobs at Myer Hospitality for housekeepers, breakfast attendants and receptionists are advertised as paying $12.75 to $14 an hour, plus benefits and a $500 signing bonus.
Worker advocacy groups offer a different perspective. “The shortage of restaurant workers we are seeing across the country is not a labor-shortage problem; it’s a wage-shortage problem,” said Saru Jayaraman, president of One Fair Wage, a minimum-wage advocacy group.
In surveys of food service workers by One Fair Wage and the Food Labor Research Center at the University of California, Berkeley, three-quarters cited low wages and tips as the reason for leaving their jobs since the coronavirus outbreak. Fifty-five percent mentioned concerns about Covid-19 as a factor. And nearly 40 percent cited increased hostility and harassment from customers, often related to wearing masks, in addition to long-running complaints of sexual harassment.
Amy Glaser, senior vice president at the staffing firm Adecco, said former restaurant workers and others were migrating toward warehousing jobs that had raised wages to as high as $23 an hour and customer service jobs that could be done from home.
The United States needs to quickly find new supplies of lithium as automakers ramp up manufacturing of electric vehicles.
Lithium is used in electric car batteries because it is lightweight, can store lots of energy and can be repeatedly recharged. Other ingredients like cobalt are needed to keep the battery stable.
But production of raw materials like lithium, cobalt and nickel that are essential to these technologies are often ruinous to land, water, wildlife and people, Ivan Penn and Eric Lipton report for The New York Times. Mining is one of the dirtiest businesses out there.
That environmental toll has often been overlooked in part because there is a race underway among the United States, China, Europe and other major powers. Echoing past contests and wars over gold and oil, governments are fighting for supremacy over minerals that could help countries achieve economic and technological dominance for decades to come.
Mining companies and related businesses want to accelerate domestic production of lithium and are pressing the administration and key lawmakers to insert a $10 billion grant program into President Biden’s infrastructure bill, arguing that it is a matter of national security.
“Right now, if China decided to cut off the U.S. for a variety of reasons we’re in trouble,” said Ben Steinberg, an Obama administration official turned lobbyist. He was hired in January by Piedmont Lithium, which is working to build an open-pit mine in North Carolina and is one of several companies that have created a trade association for the industry.
So far, the Biden administration has not moved to help push more environmentally friendly options — like lithium brine extraction, instead of open pit mines. Ultimately, federal and state officials will decide which of the two methods is approved. Both could take hold. Much will depend on how successful environmentalists, tribes and local groups are in blocking projects.
Even as a chip shortage is causing trouble for all sorts of industries, the semiconductor field is entering a surprising new era of creativity, from industry giants to innovative start-ups seeing a spike in funding from venture capitalists that traditionally avoided chip makers, Don Clark reports for The New York Times.
“It’s a bloody miracle,” said Jim Keller, a veteran chip designer whose résumé includes stints at Apple, Tesla and Intel and who now works at the artificial intelligence chip start-up Tenstorrent. “Ten years ago you couldn’t do a hardware start-up.”
Chip design teams are no longer working just for traditional chip companies, said Pierre Lamond, a 90-year-old venture capitalist who joined the chip industry in 1957. “They are breaking new ground in many respects,” he said.
Equity investors for years viewed semiconductor companies as too costly to set up, but in 2020 they plowed more than $12 billion into 407 chip-related companies, according to CB Insights. Cerebras, a start-up that sells massive artificial-intelligence processors that span an entire silicon wafer, for example, has attracted more than $475 million. Groq, a start-up whose chief executive previously helped design an artificial-intelligence chip for Google, has raised $367 million.
Taiwan Semiconductor Manufacturing Company and Samsung Electronics have managed the increasingly difficult feat of packing more transistors on each slice of silicon. IBM on Thursday announced another leap in miniaturization, a sign of continued U.S. prowess in the technology race.
More companies are concluding that software running on standard Intel-style microprocessors is not the best solution for all problems. Giants like Apple, Amazon and Google more recently have gotten into the act. Google’s YouTube unit recently disclosed its first internally developed chip to speed video encoding. And Volkswagen said last week that it would develop its own processor to manage autonomous driving.
WASHINGTON — President Biden’s plan to raise taxes on high earners and the wealthy is likely to entice more rich Americans to give property or other assets to charity before they die in order to avoid large tax bills, a top administration official told nonprofit leaders last week in a private conference call.
On the call, a deputy director of Mr. Biden’s National Economic Council, David Kamin, was asked how the president’s tax plans would affect charitable giving — in particular, his proposals to change the tax treatment of the capital gains income that high earners receive from selling assets that have gained value, like businesses or stocks.
The plan “actually increases the incentive to give to charity,” Mr. Kamin told the group. “And it basically says if you want to not pay tax on the gain, the way you need to do that is to give the property to charity.”
Mr. Kamin further explained the administration’s rationale, saying “at that point it’s obviously with a charitable organization.”
published an online guide to Mr. Biden’s tax plans for its donors in November, noting that donating stocks and other assets that have gained value “to a public charity — like Duke — can have two powerful tax benefits.” The president’s proposed increase in the capital gains rate for high earners, it wrote, “would mean that significantly more tax could be avoided through a charitable gift, greatly incentivizing gifts of these appreciated investments.”
Patrick M. Rooney, an economist who is the executive associate dean for academic programs at the Indiana University Lilly Family School of Philanthropy, said Mr. Biden’s increases could also create a psychological incentive of sorts for people who were under pressure to pass assets on to their heirs, but instead want to donate them.
“It kind of gives you an out with the kids and the grandkids,” he said. “‘I’m not going to give it to you, because so much will be taken out in taxes — and you can help me decide who to give it to.’”
Unemployment filings fell again last week as the improving public health situation and the easing of pandemic-related restrictions allowed the labor market to continue its gradual return to normal.
About 505,000 people filed first-time applications for state jobless benefits, the Labor Department said Thursday, down more than 100,000 from a week earlier. In addition, 101,000 people filed for Pandemic Unemployment Assistance, a federal program covering freelancers, self-employed workers and others who don’t qualify for regular benefits. Neither figure is seasonally adjusted.
Applications for unemployment benefits remain high by historical standards, but they have fallen significantly in recent weeks after progress stalled in the fall and winter. Weekly filings for state benefits, which peaked at more than six million last spring, fell below 700,000 for the first time in late March and have now been below that level for four straight weeks.
“In the last few weeks we’ve seen a pretty dramatic improvement in the claims data, and I think that does signal that there’s been an acceleration in the labor market recovery in April,” said Daniel Zhao, senior economist at the employment site Glassdoor.
pull out of a federal program offering enhanced benefits to unemployed workers and would instead pay a $1,200 bonus to recipients when they found new jobs.
Economic research has found that unemployment benefits can reduce the intensity with which workers search for jobs. But most studies find that the impact on the overall labor market is small, especially when unemployment is high. And Mr. Zhao and other economists say there are other reasons that labor supply might be rebounding more slowly than demand. Many potential workers are juggling child care or other responsibilities at home; others remain cautious about the health risks of returning to in-person work.
“I think we will see labor supply improve pretty dramatically in the coming months as the pandemic abates,” Mr. Zhao said.
filed first-time applications for state jobless benefits, the Labor Department said Thursday, down more than 100,000 from a week earlier. In addition, 101,000 people filed for Pandemic Unemployment Assistance, a federal program covering freelancers, self-employed workers and others who don’t qualify for regular benefits. Neither figure is seasonally adjusted.
Applications for unemployment benefits remain high by historical standards, but they have fallen significantly in recent weeks after progress stalled in the fall and winter. Weekly filings for state benefits, which peaked at more than six million last spring, fell below 700,000 for the first time in late March and has now been below that level for four straight weeks.
“In the last few weeks we’ve seen a pretty dramatic improvement in the claims data, and I think that does signal that there’s been an acceleration in the labor market recovery in April,” said Daniel Zhao, senior economist at the employment site ZipRecruiter.
Economists should get a clearer picture of the labor market’s progress on Friday when the Labor Department will release data on hiring and unemployment in April. The report is expected to show that employers added about one million jobs last month, up from 916,000 in March. The leisure and hospitality industry, which was hardest hit by the initial phase of the pandemic last spring, has led the way in the recovery in recent months, a trend that forecasters believe continued in April.
Many employers have said in recent weeks that they would like to hire even faster but have struggled to find enough workers. Some have blamed enhanced unemployment benefits for discouraging people from returning to work. On Tuesday, Gov. Greg Gianforte of Montana said his state would pull out of a federal program offering enhanced benefits to unemployed workers and would instead pay a $1,200 bonus to recipients when they find new jobs.
Economic research has found that unemployment benefits can reduce the intensity with which workers search for jobs. But most studies find that the impact on the overall labor market is small, especially when unemployment is high. And Mr. Zhao and other economists say there are other reasons that labor supply might be rebounding more slowly than labor demand. Many potential workers are juggling child care or other responsibilities at home; others remain cautious about the health risks of returning to in-person work.
“I think we will see labor supply improve pretty dramatically in the coming months as the pandemic abates,” Mr. Zhao said.
The Bank of England unveiled a much brighter outlook for the British economy on Thursday, saying it would return to its prepandemic levels at the end of this year as lockdowns ended, consumers spent billions of pounds in extra savings and the vaccine rollout reduced public health worries.
The central bank, in its quarterly monetary report, raised its growth forecasts and slashed its predictions for unemployment. The British economy is now projected to grow 7.25 percent this year, compared to a forecast of 5 percent growth three months ago. This would be the fastest pace of expansion for the economy since official records began in 1949, pulling Britain out of its worst recession in three centuries.
The higher forecast comes after the government has announced tens of billions of pounds in additional spending to see workers and businesses through the summer, and outlined its plan to end lockdown restrictions by late June.
Britain’s economic output“recovers strongly over the course of 2021, albeit only back to pre-Covid levels,” Andrew Bailey, the governor of the Bank of England, said in a news conference on Thursday.
“Of course, there remains uncertainty around how the pandemic might evolve and so there are risks around this projection, including from renewed waves of infections in the U.K. and other countries,” he said.
He added that there was also an “enormous amount of uncertainty” about how the pandemic might permanently change people’s working and living patterns, and the effect that will have on the shape of the economy.
Even though inflation is expected to rise above the central bank’s 2 percent target, policymakers voted unanimously to keep the benchmark interest rate at 0.1 percent. It cut rates to that level in March 2020 at the start of the coronavirus pandemic.
The central bank also said it would slow the pace of its £875 billion government bond-buying program, which was projected to run through 2021, so that it does not finish the program before the end of the year.If the central bank had continued at its current pace, the buying program would have ended several months early. Instead of buying £4.4 billion government bonds a week, the central bank will buy £3.4 billion. The program helps keep government borrowing costs low and supports the economy by encouraging investors to buy other assets.
The minutes of the central bank’s policy meeting showed that officials don’t intent to tighten monetary policy until “there is clear evidence that significant progress” is made on the economic recovery and inflation is sustainably at the bank’s target.
The Bank of England now forecasts unemployment to peak at 5.5 percent later this year, because of the extension of the government’s furlough program. In February, the central bank predicted the unemployment rate would rise as high as 7.75 percent.
The easing of pandemic restrictions will also increase consumer spending. The central bank added that it now expected people to spend about 10 percent of the excess savings they built up in lockdown based on new survey evidence. The previous estimate was just 5 percent.
But these extra savings are “not evenly distributed,” Mr. Bailey said. And they are concentrated among people who are older and already wealthier.
Gary Gensler, the newly installed chair of the Securities and Exchange Commission, is testifying on Thursday, at noon Eastern time, before the House Financial Services Committee. He will address the meme-stock volatility in January that led to trading restrictions and prompted an outcry about Wall Street’s relationship with retail investors.
“I think these events are part of a larger story about the intersection of finance and technology,” Mr. Gensler will say in his prepared remarks, highlighting seven factors at play that also hint at his regulatory priorities in the months ahead:
Gamification. Fun features combined with predictive analytics on trading apps increase engagement. Watching a movie based on a streaming app recommendation, “we might lose a couple of hours,” Mr. Gensler said. “Following the wrong prompt on a trading app, however, could have a substantial effect on a saver’s financial position.” He suggested it may be time for new rules to address the practice.
Payment for order flow. Many retail brokers don’t charge fees for trades, earning money instead by directing customer orders to wholesalers to execute. More trades generate more payments, which raises questions about conflicts of interest, consumer protection and data aggregation, Mr. Gensler said.
Market structure. A few wholesalers account for a growing share of retail stock trading volume, with Citadel Securities particularly dominant. This concentration can “lead to fragility, deter healthy competition and limit innovation,” Mr. Gensler said.
Short-selling transparency. He wants to increase “transparency in the stock loan market.”
Social media. Investors exchanging views online is fine, but Mr. Gensler worries bad actors take advantage of legitimate debates. In particular, this risks sending false signals to algorithms that some investors use to gauge the “relationships between words and prices.”
Plumbing. When brokers restricted customer trading in meme stocks, they blamed clearinghouses and two-day settlement times. Mr. Gensler said same-day settlement is technologically possible and has asked for a draft proposal on speeding up settlement.
Systemic risks. The S.E.C. will issue a report over the summer, the chair said, examining what happened in detail during the meme-stock frenzy and considering “whether expanded enforcement mechanisms are necessary.”
A spike in sales to Chinese customers helped Volkswagen rebound strongly from the disruption caused by the pandemic, the carmaker said Thursday, underlining China’s importance to the German economy.
Sales in the first three months of 2021 rose 13 percent compared to a year earlier, to 62.4 billion euros, or $75 billion, while profit rose nearly sevenfold to 3.4 billion euros, the company said. Vehicle sales in China, which is Volkswagen’s largest market, rose more than 60 percent.
The recovery in sales bodes well for the German economy. Vehicles are the country’s biggest export product. But Volkswagen also illustrates Germany’s dependence on China when tensions between Beijing and the European Union are rising because of the Chinese government’s treatment of minority groups and its crackdown on dissent in Hong Kong.
As is typical for Volkswagen, the company’s Audi and Porsche divisions generated most of the profit. The luxury vehicles have a higher profit margin than the more affordable cars that account for most of Volkswagen’s volume.
Volkswagen said it was able to manage the shortage of semiconductors that has afflicted all carmakers in recent months, but warned that the chip famine could become more acute in months to come.
Volkswagen sold 60,000 battery-powered vehicles out of a total of 2.4 million during the quarter. That may be a disappointment to the company, which has staked its future on a new line of electric cars, the first of which went on sale late in 2020.
Stocks on Wall Street were flat on Thursday, while European shares were mixed, as investors digested an assortment of corporate earnings reports.
The S&P 500 was little changed in early trading. The benchmark Stoxx Europe 600 index was 0.3 percent lower and the FTSE 100 in Britain was 0.2 percent higher.
In the United States, the Labor Department revealed its weekly tally for new state claims for unemployment insurance on Thursday, which showed the number is continuing to decline. About 505,000 people filed first-time applications, down more than 100,000 from a week earlier.
Oil futures fell after recent gains, with West Texas Intermediate, the American benchmark, down 0.6 percent to $65.25 a barrel. Yields on 10-year Treasury notes were unchanged.
The Biden administration’s surprise announcement that it would support efforts to waive intellectual property protections for coronavirus vaccines caused share prices for some pharmaceutical companies to tumble.
Pfizer fell 3.6 percent in early trading Thursday. BioNTech, the German firm that developed a vaccine with Pfizer, was also lower.
Shares of Moderna fell nearly 10 percent, while Novavax, the Maryland-based drug maker which is expected to seek U.S. approval for its vaccine soon, dropped more than 6 percent on Thursday.
The British pound rose 0.2 percent against the U.S. dollar as the Bank of England announced it would hold interest rates at 0.1 percent but would slow down the pace of its bond-buying program for the rest of the year. Policymakers also increased their forecasts for the British economy.
Consider it a small victory.
Eurostar, the sleek and speedy high-speed train service that ties London, Paris, Brussels, Amsterdam and other cities, will increase as of May 27 its timetable to two trains per day on its once heavily-traveled Paris-London route, up from just one round-trip train per day imposed during the pandemic.
The slightly increased service comes as governments in Europe plan to slowly lift longstanding national restrictions on travel designed to combat the spread of the virus. From a peak of running more than 60 trains a day, Eurostar cut service during the pandemic to one daily round-trip between London and Paris, and one on its London-Brussels and Amsterdam routes.
The Brussels/Amsterdam route will remain the same with one train in each direction per day, a spokesman said, adding that Eurostar will adapt its timetable should demand increase, which still depends on travel restrictions across its routes.
Eurostar’s future has been thrown into turmoil as pandemic measures led last year to a 95 percent slump in ridership, creating a cash crunch and pushing the iconic company to the brink of bankruptcy.
While some airlines and other tourist-related businesses in Europe have been able to rely on government support during the crisis, Eurostar, an independent train operator, isn’t eligible for direct state aid.
Last month, the company, which is now owned by a consortium that includes the French and Belgium national railways, reportedly secured a deal with its lenders to refinance a debt pile worth £400 million ($553 million). The British government, which in 2015 sold its stake in the rail company, last month declined to back a broader financial rescue package.
A spokesman for Eurostar said it had no new details on a financial rescue, but said that “conversations are still progressing.” The spokesman added that it is “too early to predict a recovery to prepandemic levels, this would be very much dependent on the easing of international travel restrictions which are yet to be confirmed.”
Eurostar trains will continue to maintain some vacant seats onboard to allow for social distancing. The company said it is advising riders to check with their embassies before traveling, and to consult the company’s website for the latest information.
Tim Lorentz, a special-education teacher in Spokane, Wash., loves both cars and boats. He has raced cars and has owned a variety of muscle and exotic vehicles.
“Car guys always want to own or drive a unique car that no one else owns,” Mr. Lorentz said. “I created an eight-passenger convertible. Why not a boat mounted over a convertible? I have never seen another one like it.”
And so the LaBoata was born. Mr. Lorentz, now 65, built it in 2009 using a white 1993 LeBaron a used 17-foot boat he got for $100, Mercedes Lilienthal reports for The New York Times.
The LaBoata was “instant fun,” he said, until he received a letter from the Washington Department of Motor Vehicles canceling his registration and title. The authorities had noticed his converted convertible, and they weren’t amused. He removed the boat shell, drove the car to the D.M.V. and had it reinspected, reinstated and relicensed. He went home and popped the boat back on, and he has had no issues since.
Mr. Lorentz is part of a community that builds cars out of scrap. Kelvin Odartei Cruickshank, who is 19 and lives in Accra, Ghana’s capital city, built, from scratch, a two-person car that looks like a ramshackle DeLorean. It took three years to complete. Mr. Cruickshank used about $200 of scrap metal and parts not normally used in cars because of financial constraints.
Fox News, the cable news giant controlled by Rupert Murdoch, kept its parent company flush in the first three months of the year, notching a slight gain in profit and sales despite a drop in viewers. Altogether, Fox Corporation beat Wall Street expectations with a sevenfold increase in profit to $567 million and a 6.5 percent drop in revenue to $3.2 billion compared with the same period a year prior. But revenue at most of its businesses dropped as fewer viewers tuned into the company’s cable channels and the Fox broadcast network, in part because Fox did not host the Super Bowl this year. Total advertising sales fell 24 percent to $1.2 billion.
Uber said its business was recovering from the slowdown caused by the pandemic, although it continued to lose money. The company said on Wednesday that revenue was $2.9 billion in the first three months of the year, down 11 percent from the same period a year ago. Excluding money earmarked for a settlement with drivers in Britain, Uber’s revenue was $3.5 billion, an 8 percent increase from the previous year that outpaced Wall Street expectations of $3.28 billion.
The New York Times Company recorded its smallest gain in new subscribers in a year and a half. The Times reported a total of 7.8 million subscribers across both print and digital platforms, with 6.9 million coming for online news or its Cooking and Games apps. The company added 301,000 digital customers for the first three months of the year, the lowest increase since the third quarter of 2019. The company reported adjusted operating profit of $68 million, a 54 percent jump from last year, as it generated more dollars from each subscriber, partly because of the expiration of promotional rates as the new year rolled over. Total revenue rose modestly, about 6.6 percent, to $473 million.
Public health experts are praising President Biden’s announcement that his administration would create a federal stockpile of coronavirus vaccine doses and invest millions in community outreach, saying the moves would help immunize underserved communities and ensure doses would go where they’re most needed as demand falls.
Until now, vaccines had been allotted to states strictly on the basis of population, despite reports of wasted doses and pleas for more of them where the virus was surging, as in Michigan just weeks ago. In a reversal, the Biden administration is now trying to match supply with demand. Federal officials informed states on Tuesday that if they did not order their full allocation of doses in a given week, that vaccine would be considered part of a federal pool, available to other states that wanted to order more.
The administration had been unwilling to shift doses to states that were faster to administer them out of a concern that low-income communities would lose out to richer areas where residents were more willing to get shots.
the new coronavirus strategy that Mr. Biden announced on Tuesday at the White House: Pharmacies are to allow people to walk in for shots, and pop-up and mobile clinics will distribute vaccines, especially in rural areas. Federal officials also plan to enlist the help of family doctors and other emissaries who are trusted voices in their communities.
“We’ve got the product and we’ve vaccinated the very high-risk people, elderly people in nursing homes, people with diseases,” said Dr. Robert Murphy, executive director of Northwestern University’s Institute for Global Health. “Now we have to get the healthy ones and the younger ones and the ones that are being referred to as vaccine-hesitant.”
Allowing walk-ins at pharmacies would cut down on waste, he said, and funding for community outreach through trusted institutions like churches and schools could help reach people who are reluctant. That could offset the misinformation that has complicated efforts to vaccinate Black and Hispanic residents, who also face obstacles like language and technology barriers and less access to medical facilities.
Dr. Eric Topol, a professor of molecular medicine at Scripps Research in La Jolla, Calif., said he was “overjoyed” by the announcement. Dr. Topol pushed for loosening vaccine allocation limits last month, when Michigan was hit with a virus surge and unsuccessfully sought a boost in supply.
more than 106 million people in the United States were fully vaccinated and more than 56 percent of adults — or almost 148 million people — had received at least one shot. That has contributed to a steep decline in cases, hospitalizations and deaths across all age groups, federal officials said.
But despite a flood of available doses, the pace of vaccination has fallen considerably over the past two and a half weeks. Providers are now administering an average of about 2.19 million doses per day, about a 35 percent decrease from the peak of 3.38 million reported on April 13, according to data from the Centers for Disease Control and Prevention.
Officials across the country say they believe that despite falling demand, a substantial portion of Americans will get vaccinated if given more support and more information from trusted messengers, like personal doctors.
“We need to be in the community, asking the community what works for them and keeping that presence,” said Dr. Karen Landers, Alabama’s assistant state health officer. She added: “We are not giving up.”