Johnson & Johnson’s single-dose coronavirus vaccine after six recipients in the United States developed a rare disorder involving blood clots within about two weeks of vaccination.
All six recipients were women between the ages of 18 and 48. One woman died and a second woman in Nebraska has been hospitalized in critical condition.
Nearly seven million people in the United States have received Johnson & Johnson shots so far, and roughly nine million more doses have been shipped out to the states, according to data from the Centers for Disease Control and Prevention.
“We are recommending a pause in the use of this vaccine out of an abundance of caution,” Dr. Peter Marks, director of the Food and Drug Administration’s Center for Biologics Evaluation and Research, and Dr. Anne Schuchat, principal deputy director of the C.D.C., said in a joint statement. “Right now, these adverse events appear to be extremely rare.”
On a media call later on Tuesday morning, Dr. Marks said that “on an individual basis, a provider and patient can make a determination whether or not to receive the vaccine” manufactured by Johnson & Johnson.
While the move was framed as a recommendation to health practitioners in the states, the federal government is expected to pause administration of the vaccine at all federally run vaccination sites. Federal officials expect that state health officials will take that as a strong signal to do the same. Within two hours of the announcement, Gov. Mike DeWine of Ohio, a Republican, advised all health providers in his state to temporarily stop giving Johnson & Johnson shots. In New York, the health commissioner, Dr. Howard Zucker, said the state would halt the use of the vaccine statewide while federal officials evaluate the safety risks. Appointments for Johnson & Johnson’s shot on Tuesday at state mass sites would be honored with Pfizer doses, Dr. Zucker said.
The authorities in New Jersey, Connecticut, Massachusetts, Maryland, Nebraska, Georgia, Indiana, Texas and Virginia also said that they would follow the call from federal health agencies.
Scientists with the F.D.A. and C.D.C. will jointly examine possible links between the vaccine and the disorder and determine whether the F.D.A. should continue to authorize use of the vaccine for all adults or limit the authorization.
In the media call, federal health officials tried to reassure recipients of Johnson & Johnson’s vaccine while at the same time describing symptoms that they should watch out if they received a shot within the past month.
Dr. Schuchat said that the risk of dangerous blood clots is “very low” for people who received the vaccine more than a month ago.
“For people who recently got the vaccine within the last couple of weeks, they should be aware, to look for any symptoms. If you receive the vaccine and develop severe headaches, abdominal pain, leg pain or shortness of breath, you should contact your health care provider and seek medical treatment,” she said. She emphasized that an emergency meeting of the C.D.C.’s outside advisory committee, which has been scheduled for Wednesday, to discuss how to handle the vaccine in the future is made up of independent experts.
Dr. Janet Woodcock, acting commissioner of the Food and Drug Administration, said she expects the pause in distributing and administrating the vaccine will last for “a matter of days” while officials investigate the cases. Officials also stressed that no serious safety problems have emerged with either of the other two federally authorized vaccines, developed by Pfizer-BioNTech and Moderna.
The move could substantially complicate the nation’s vaccination efforts at a time when many states are confronting a surge in new cases and seeking to address vaccine hesitancy. Regulators in Europe and elsewhere are concerned about a similar issue with another coronavirus vaccine, developed by AstraZeneca and Oxford University researchers. That concern has driven up some resistance to all vaccines, even though the AstraZeneca version has not been authorized for emergency use in the United States.
The vast majority of the nation’s vaccine supply comes from two other manufacturers, Pfizer-BioNTech and Moderna, which together deliver more than 23 million doses a week of their two-shot vaccines. There have been no significant safety concerns about either of those vaccines.
But while shipments of the Johnson & Johnson vaccine have been much more limited, the Biden administration had still been counting on using hundreds of thousands of doses every week. In addition to requiring only a single dose, the vaccine is easier to ship and store than the other two, which must be stored at extremely low temperatures.
Jeffrey D. Zients, the White House Covid-19 response coordinator, said Tuesday the pause “will not have a significant impact” the Biden administration’s plans to deliver enough vaccine to be able to inoculate all 260 million adults in the United States by the end of May. With the Johnson & Johnson setback, federal officials expect there will only be enough to cover fewer than 230 million adults. But a certain percentage of the population is expected to refuse shots, so the supply may cover all the demand.
Mr. Zients said the administration will still “reach every adult who wants to be vaccinated” by the May 31 target.
Federal officials are concerned that doctors may not be trained to look for the rare disorder if recipients of the vaccine develop symptoms of it. The federal health agencies said Tuesday morning that “treatment of this specific type of blood clot is different from the treatment that might typically be administered” for blood clots.
“Usually, an anticoagulant drug called heparin is used to treat blood clots. In this setting, administration of heparin may be dangerous, and alternative treatments need to be given,” the statement said.
In a news release, Johnson & Johnson said: “We are aware that thromboembolic events including those with thrombocytopenia have been reported with Covid-19 vaccines. At present, no clear causal relationship has been established between these rare events and the Janssen Covid-19 vaccine.” Janssen is the name of Johnson & Johnson’s division that developed the vaccine.
In the United States alone, 300,000 to 600,000 people a year develop blood clots, according to C.D.C. data. But the particular blood clotting disorder that the vaccine recipients developed, known as cerebral venous sinus thrombosis, is extremely rare.
All of the women developed the condition within about two weeks of vaccination, and government experts are concerned that an immune system response triggered by the vaccine was the cause. Federal officials said there was broad agreement about the need to pause use of the vaccine while the cases are investigated.
The decision is a fresh blow to Johnson & Johnson. Late last month, the company discovered that workers at a Baltimore plant run by its subcontractor had accidentally contaminated a batch of vaccine, forcing the firm to throw out the equivalent of 13 million to 15 million doses. That plant was supposed to take over supply of the vaccine to the United States from Johnson & Johnson’s Dutch plants, which were certified by federal regulators earlier this year.
The Baltimore plant’s certification by the F.D.A. has now been delayed while inspectors investigate quality control issues, sharply reducing the supply of Johnson & Johnson vaccine. The sudden drop in available doses led to widespread complaints from governors and state health officials who had been expecting much bigger shipments of Johnson & Johnson’s vaccine this week than they got.
The authorities in Ohio, New York, New Jersey, Connecticut, Massachusetts, Maryland, Nebraska, Georgia, Indiana, Texas and Virginia said on Tuesday that they would follow the call from federal health agencies to pause the administration of Johnson & Johnson’s vaccine after six women in the United States developed a rare disorder involving blood clots within about two weeks of vaccination.
CVS, the nation’s largest retail pharmacy chain, also said that it would immediately stop its use of Johnson & Johnson vaccinations and was emailing customers whose appointments would be canceled. A spokesman said that CVS would reschedule appointments “as soon as possible.”
Gov. Mike DeWine of Ohio and the state’s chief health official said they were advising all state vaccine providers to temporarily halt use of the single-dose vaccine. New York’s health commissioner, Dr. Howard Zucker, said the state would stop using the Johnson & Johnson vaccine, while the Food and Drug Administration and the Centers for Disease Control and Prevention evaluate the safety risks.
Connecticut health officials said they told vaccine providers to delay planned appointments and give an alternative option if they had the supply.
The C.D.C.’s outside advisory committee has scheduled an emergency meeting for Wednesday.
Jeff Zients, the White House Covid coordinator, said on Tuesday that the pause will not have a significant impact on the country’s vaccination campaign, which has accelerated in recent weeks as a rise in new virus cases threatens a fourth possible surge. Many states have already opened vaccination eligibility to all adults and others plan to by next week.
“Over the last few weeks, we have made available more than 25 million doses of Pfizer and Moderna each week, and in fact this week we will make available 28 million doses of these vaccines. This is more than enough supply to continue the current pace of vaccinations of 3 million shots per day,” Mr. Zients said in a statement.
Even though the reaction to the Johnson & Johnson shot is rare, any questions about the safety of the shots could bolster vaccine hesitancy.
Nearly seven million people in the United States have received Johnson & Johnson shots so far, and roughly nine million more doses have been shipped out to the states, according to data from the Centers for Disease Control and Prevention. The six women who developed blood clots were between the ages of 18 and 48. One woman died and a second woman in Nebraska has been hospitalized in critical condition.
“Right now, these adverse events appear to be extremely rare,” Dr. Peter Marks, director of the Food and Drug Administration’s Center for Biologics Evaluation and Research, and Dr. Anne Schuchat, principal deputy director of the C.D.C., said in a joint statement on Tuesday. “People who have received the J&J vaccine who develop severe headache, abdominal pain, leg pain, or shortness of breath within three weeks after vaccination should contact their health care provider.”
Like many states, New York had already prepared for a significant drop in its supply of the Johnson & Johnson vaccine after federal officials said that supplies would be limited because of a production issue at a Baltimore manufacturing plant. On Friday, Gov. Andrew M. Cuomo said that New York expected to receive 34,900 Johnson & Johnson shots, a decrease of 88 percent from the previous week.
Dr. Zucker, New York’s health commissioner, said that the state would honor appointments made at state-run mass vaccination sites for the Johnson & Johnson vaccine by giving people the Pfizer-BioNTech vaccine instead. That vaccine requires two doses, and it was not immediately clear how the state would handle the additional strain on its supply.
Mayor Bill de Blasio of New York City said that the city would work to reschedule appointments at city-run vaccine sites, giving those people the Pfizer or Moderna vaccines instead.
“Every site has been told this morning to stop giving the J&J shots,” he said at a news conference.
Mr. Cuomo received the Johnson & Johnson vaccine at a public appearance last month in Harlem, which he framed as an effort to boost confidence in that vaccine’s efficacy rate and to address vaccine hesitancy.
Regulators in Europe and elsewhere are concerned about a similar issue with another coronavirus vaccine, developed by AstraZeneca and Oxford University researchers. That vaccine has not been authorized for emergency use in the United States.
The virus is again surging in parts of the United States, but it’s a picture with dividing lines: ominous figures in the Northeast and Upper Midwest, but largely not in the South.
Experts are unsure what explains the split, which doesn’t correspond to vaccination levels. Some point to warmer weather in the Sun Belt, while others suspect that decreased testing is muddying the virus’s true footprint.
The contours of where the virus is resurgent can be drawn around one figure: states that are averaging about 15 new cases a day for every 100,000 people. The 23 states — including Alabama, Mississippi and Arkansas — that have averaged that or fewer over the past week seem to be keeping cases relatively low, according to a New York Times database. Nationally, the country is averaging 21 new cases per 100,000 people.
In the 27 states above that line, though, things have been trending for the worse. Michigan has the highest surge of all, reporting the most drastic increase in cases and hospitalizations in recent weeks. Illinois, Minnesota and others have also reported worrisome increases.
Nationally, reported cases in the United States are growing again after a steep fall from the post-holiday peak in January. In the past two weeks, new confirmed cases have jumped about 11 percent, even though vaccinations picked up considerably, with an average of 3.2 million doses given daily.
Some Southern states, like Alabama and Mississippi, are lagging in vaccinations. Only about 28 percent of people in each state have received at least one shot, according to a New York Times vaccine tracker. Still, case counts continue to drop in both states.
Health experts say cases are rising in the Northeast and Upper Midwest for several reasons, including pandemic fatigue, the reopening of schools and the resumption of youth sports.
Hospitalizations tend to follow the trend line in cases by a few weeks, and have been rising in some states, most notably in Michigan.
Officials are also concerned about the spread of more contagious virus variants, especially B.1.1.7, first identified in Britain. The variant is now the leading source of new coronavirus infections in the United States, the director of the Centers for Disease Control and Prevention said last week.
Just why those factors might affect some states more than others is hard to pinpoint, experts say.
Dr. David Rubin, the director of PolicyLab at the Children’s Hospital of Philadelphia, said warmer weather in Southern states and California was probably playing a role, because it allows people to gather outdoors, with less risk of transmission.
New case reports have fallen by about 11 percent in Georgia over the past two weeks. And in Alabama, new cases are down roughly 29 percent, with a 17 percent decline in hospitalizations.
Some experts say, though, that reduced testing in some states could be obscuring the true picture. Testing in Alabama, for instance, has started to dip, but the share of tests that come back positive has remained high, at 11.1 percent, compared with a nationwide average of 5.1 percent, according to data compiled by Johns Hopkins University.
“People who are symptomatic and go to their provider are going to get a test,” said Dr. Michael Saag, the associate dean for global health at the University of Alabama at Birmingham, but “the desire for people to go get tested just because they want to know what their status is has dropped off dramatically.”
Still, Dr. Saag said, there is probably not a hidden spike in cases in Alabama right now, since hospitalizations in the state remain low.
— Madeleine Ngo
Millions of Muslims on Tuesday began celebrating a second Ramadan in the middle of the pandemic, although in many countries the first day of the holy month offered the promise of a Ramadan with fewer restrictions than last year.
Mosques across the Middle East and other parts of the world were closed for prayer last year, and lockdowns prevented festive gatherings with friends and family. In Jerusalem, for instance, the Old City was largely empty and the Aqsa Mosque compound was closed to the public, as coronavirus cases were surging.
But a large degree of normalcy was back on Tuesday: The Old City’s narrow alleys were crowded, sweet shops were preparing Ramadan desserts, clothing stores were open and the Aqsa compound was welcoming worshipers.
“Last year, I felt depressed and I didn’t know how long the pandemic would last,” said Riyad Deis, a co-owner of a spice and dried fruit shop in the Old City, while selling whole pieces of turmeric and Medjool dates to a customer. “Now, I’m relaxed, I have enough money to provide for my family and people are purchasing goods from my shop — it’s a totally different reality.”
The enthusiasm of some didn’t mean the Ramadan would go as normal. Across several countries in the Middle East, the authorities imposed limitations on customs and festivities, requiring that mosques enforce social distancing and telling worshipers to bring their own prayer rugs and to wear face masks.
In Dubai, Saudi Arabia and Egypt, taraweeh, the optional extra prayers that worshipers can observe at night, were capped at half an hour. No one will also be allowed to spend the night in a mosque, as is common during the last 10 days of Ramadan.
Mosques around the region were also prohibited from serving the fast-breaking meal of iftar or the predawn meal of suhoor. Though Muslims could still gather for those meals with friends and family, the authorities asked them to limit those gatherings this year.
In Jerusalem, Omar Kiswani, the director of Al Aqsa Mosque, said he was overjoyed that the compound was open to worshipers, but still urged caution.
“These are times of great happiness — we hope the blessed Aqsa Mosque will return to its pre-pandemic glory — but these are also times of caution because the virus is still out there,” Mr. Kiswani said.
In Egypt, government officials and prominent television hosts linked to the authorities warned Egyptians of a third wave of infections as Ramadan approached, hinting that another curfew or other lockdown restrictions could be imposed if cases rose.
“If you want the houses of God to remain open,” Nouh Elesawy, an official who oversees mosques at the Egyptian Ministry of Endowments, said earlier this month, “adhere to the precautionary procedures and regulations.”
The Ramadan restrictions may hit the hardest in poor neighborhoods, where residents depend on iftar banquets usually sponsored by wealthy individuals or organizations. For those people, feasting and Ramadan gifts are likely to be rarer, with tourism still at a trickle and many small businesses still suffering from the economic effects of the pandemic.
In Lebanon and Syria, the pandemic has worsened economic crisis that will likely squeeze people’s ability to enjoy the holy month, more than the governments’ limited restrictions aimed at curbing the spread of the coronavirus.
In Syria, where experts say the official infection and death numbers for Covid-19 are far below the reality, the government has few restrictions in place. Worshipers will even be allowed to stand in line inside of mosques to pray together after breaking their fast, the Syrian Ministry of Religious Affairs said.
In Lebanon, which emerged recently from a strict lockdown, shops and restaurants can operate regularly during the day but must offer only delivery service during a nighttime curfew from 9:30 p.m. to 5 a.m.
India said on Tuesday that it would fast-track the approval of vaccines in use in other countries, a move aimed at rapidly increasing the country’s vaccine supply as it battles what is currently the world’s biggest coronavirus outbreak.
The Indian government said that it would grant emergency authorization to any foreign-made vaccine that had been approved for use by regulators in the United States, the European Union, Britain or Japan, or by the World Health Organization. The move had been recommended by a panel of Indian scientists and eliminates a requirement for drug companies to conduct local clinical trials.
“The decision will facilitate quicker access to such foreign vaccines” and encourage imports of materials that would boost India’s vaccine manufacturing capacity, the government said in a statement.
Earlier on Tuesday, India’s top drug regulator granted emergency approval to Sputnik V, the Russian-made vaccine, adding a third vaccine to the country’s arsenal on the same day that health officials recorded 161,736 new coronavirus infections in 24 hours.
It was the seventh straight day that India has added more than 100,000 cases, according to a New York Times database. Only the United States has seen a faster rise in infections during the pandemic.
India has administered about 105 million domestically produced vaccine doses for a population of 1.3 billion, but it is widely believed that the country needs to scale up inoculations rapidly because other measures have failed to control the virus. Many states have reimposed partial lockdowns and weekend curfews. In the country’s financial hub, Mumbai, health officials are racing to erect field hospitals as facilities report shortages of oxygen, ventilators and coronavirus testing kits.
And there is the risk of a superspreading event with the gathering of millions of Hindu pilgrims for the annual Kumbh Mela festival on the banks of the Ganges River, where the authorities say they are powerless to enforce social distancing.
India’s outbreak is reverberating worldwide as its pharmaceutical industry — which was supposed to manufacture and export hundreds of millions of doses of the AstraZeneca vaccine — is keeping most supplies at home. The approval of the Sputnik vaccine, whose first doses are expected to be available for use in weeks, offers hope that India could speed up its inoculation drive.
But it is unclear at this stage whether India will be able to procure significant quantities of other vaccines, including the Pfizer, Moderna and Johnson & Johnson shots in use in the United States. Major Western nations have accumulated much of the global supply of those vaccines and manufacturers are struggling to meet the surging demand.
India will import millions of Sputnik doses from Russia and then begin manufacturing the vaccine domestically, officials said. More than 850 million doses will be made, with some intended for export, Kirill Dmitriev, chief executive of the Russian Direct Investment Fund, a sovereign wealth fund that has financed the vaccine’s development, said in an interview with India’s NDTV channel.
“India is a vaccine-manufacturing hub and our strategic partner for production of Sputnik V,” Mr. Dmitriev said.
India has more than 13.6 million confirmed coronavirus cases, the second most after the United States, and 171,058 deaths, the fourth highest toll.
In other news around the world:
Japan has begun vaccinating 36 million people over age 65, the first time shots have been made available to the public during the country’s slow vaccine rollout. Officials said that 1,139 people nationwide had received doses on Monday, and that doses to cover all Japanese above the age threshold would reach municipal health facilities by the end of June. Although Japan has weathered the pandemic better than most countries, the pace of its vaccination effort, which until now had only covered 1.1 million frontline medical workers, has sparked public criticism and raised questions about readiness for the Tokyo Summer Olympics in just over three months.
Scotland on Tuesday moved forward plans to loosen its coronavirus lockdown, a day after the British government eased many restrictions in England. New rules beginning Friday will permit Scots to meet outdoors in groups of up to six adults from six households. The current rules restrict travel and set the maximum group size at four, from two households. Restrictions on shops and outdoor service in pubs, now relaxed in England, are scheduled to remain in Scotland until April 26.
Austria’s health minister resigned on Tuesday, citing personal health problems that he said have been exacerbated by the grueling job of helping lead the country’s response to the pandemic. “It feels like it has not been 15 months, but 15 years,” the minister, Rudolf Anschober, said in a statement. Mr. Anschober, 60, was appointed in January last year, as a Green party minister in a Conservative-led coalition, and has been one of the main faces of Austria’s coronavirus response. “In the worst health crisis in decades, the republic needs a health minister who is 100 percent fit. That is not currently me,” he said.
France will suspend all flights to and from Brazil, because of growing worries about the virus variant spreading there. “We see that the situation is getting worse” in Brazil, Prime Minister Jean Castex told lawmakers. The country previously permitted essential travel from Brazil, subject to testing and isolation requirements.
The World Health Organization on Monday evening called on governments to suspend the sale of live wild mammals in food markets to help prevent the emergence of new diseases. “Traditional markets, where live animals are held, slaughtered and dressed, pose a particular risk for pathogen transmission to workers and customers alike,” the agency said in a statement. Animals are the source of more than 70 percent of emerging infectious diseases in humans, it said. Early in the pandemic, Chinese officials suggested that the coronavirus outbreak might have started at a market. But W.H.O. experts said in a report last year that the role of animal markets in the story of the pandemic was still unclear.
BERLIN — Chancellor Angela Merkel’s government moved a step closer on Tuesday to securing the right to force restrictions on areas where the coronavirus is spreading rapidly, overriding state leaders reluctant to take action.
Ms. Merkel and her ministers approved a legislative proposal that would make it easier for the national government to enforce lockdowns and other limits on movement in regions where infection levels pass a set threshold. At current levels, it could lock down more than half of the country.
Under Germany’s decentralized leadership structures, the 16 state leaders have been meeting regularly with the chancellor to agree on nationwide coronavirus response policies. But with different regions experiencing different rates of infection, some state leaders have been reluctant to enforce the agreed limitations, leading to confusion and frustration among many Germans.
“I believe this amendment is as important as it is an urgent decision about how to proceed in the coronavirus pandemic,” the chancellor told reporters after meeting with her ministers.
Parliament still has to debate and approve the proposal, which would take the form of an amendment to the Protection Against Infection Act, and that process is expected to begin this week.
“We are in a situation where an emergency mechanism is necessary,” Ralph Brinkhaus, the leader of the Christian Democratic Union in Parliament, told reporters, before a meeting of his party lawmakers to discuss the amendment.
Under the proposed amendment, the federal government could force stores and cultural institutions to close and enforce limits on the number of people allowed to meet up in any region where infections surpass 100 new cases per 100,000 residents over a period of seven days.
More controversially, the law would also allow Ms. Merkel’s government to order that schools and day care centers close if the number of new infections reaches more than 200 per 100,000 inhabitants. Schools fall under the jurisdiction of the states, and local leaders are reluctant to relinquish that control.
Germany has registered more than three million infections and more than 78,700 deaths from Covid-19 since the virus began moving through the country last spring. It recorded 10,810 new cases of infection on Tuesday, bringing the national rate of infection to more than 140 per 100,000.
The number of patients in intensive care is expected to hit a record this month, as the country struggles to vaccinate enough people to get ahead of the spread of the highly contagious B.1.1.7 variant.
Britain has now offered vaccinations to everyone in the country age 50 and older, the government announced late on Monday, and is extending its program to another age group, the latest sign that the national rollout is continuing at pace.
On Tuesday, the authorities opened vaccinations to anyone 45 or older, yet the announcement came with a small hiccup: The website for the country’s National Health Service crashed for a short time after the younger cohort was invited to book appointments online.
The new step in the country’s vaccine rollout comes as the authorities eased several restrictions in England on Monday after months of stringent lockdowns, with pubs and restaurants opened for drinks and dining outside, and nonessential shops once again opening their doors.
Prime Minister Boris Johnson called the moment a “hugely significant milestone” and in a statement thanked those involved with the vaccine rollout. Mr. Johnson said the country was on track to offer all adults a vaccination by the end of July. More than 32 million people across Britain have received their first dose of one of the vaccines, according to government data.
The government said it had also already offered vaccinations to every health or care worker, and to everyone with a high-risk medical condition.
England has also began rolling out the Moderna vaccine, which will be offered as an alternative alongside the Pfizer BioNTech vaccine for those under 30, instead of AstraZeneca’s, which has been the mainstay of Britain’s program so far.
There have been concerns about a possible link between the AstraZeneca vaccine and very rare blood clots, and last week British regulators said an alternative should be provided for younger people. Potential infection still poses much greater risks than any vaccine side effect for all those over 30, they said, and could do so for younger people if cases surged again.
“The Moderna rollout marks another milestone in the vaccination program,” Stephen Powis, the medical director of the National Health Service, said in a statement. “We now have a third jab in our armory.”
The vaccination program, he added, “is our hope at the end of a year like no other” as he encouraged people to book their appointments.
But despite the hopeful vaccine news and the return to public life, the country is still battling new cases of the virus, and a cluster in two London neighborhoods of a worrisome variant first discovered in South Africa has prompted mass testing. Health workers have gone door to door to urge residents to get tested, even if they are not showing symptoms, as dozens of cases have emerged. Similar measures were carried out elsewhere in the city earlier this month.
Studies have shown that the variant contains a mutation that diminishes the vaccines’ effectiveness against it. Dr. Susan Hopkins, the chief medical adviser for the country’s test and trace campaign, said the cluster of cases in parts of South London was “significant.”
“It’s really important people in the local area play their part in stopping any further spread within the local community,” she said in a statement.
More than a year after the coronavirus first swept through New York, the streets of Sunset Park in southern Brooklyn reflect the pandemic’s deep and unhealed wounds intertwined with signs of a neighborhood trying to edge back to life.
The sidewalks are filling with shoppers and vendors. More businesses are welcoming customers. But owners still struggle to pay rent and keep their enterprises afloat, while many workers laid off after the city locked down last year remain without jobs.
And while the rate of vaccination in New York has increased significantly, the coronavirus still percolates through this densely packed neighborhood. The ZIP code that includes Sunset Park had the highest rate of positive cases in Brooklyn in early April, nearly double the citywide rate. Some residents have expressed skepticism about the vaccines, spooked by false information circulated over TikTok and other social media.
Adding to the stress is a spate of hate crimes and violence against people of Asian descent in New York and around the country, fed in some cases by racist claims that Asian-Americans are responsible for spreading the virus.
About a third of the residents in Sunset Park have received at least one dose of the vaccine, roughly the same level as the city overall, according to the city health data. But local leaders say they want to push that number much higher.
Kuan Neng, 49, the Buddhist monk who founded Xi Fang Temple on Eighth Avenue, said that people had come to him in recent weeks to express concerns over vaccines.
“Why do I need to do that?” is a common refrain, according to Mr. Kuan, followed by: “I’m healthy now. The hard times are over, more or less.”
“Many people want to delay and see,” Mr. Kuan said, himself included.
ArcLight Cinemas, a beloved chain of movie theaters based in Los Angeles, including the Cinerama Dome in Hollywood, will permanently close all its locations, Pacific Theaters announced on Monday, after the pandemic decimated the cinema business.
ArcLight’s locations in and around Hollywood have played host to many a movie premiere, in addition to being favorite spots for moviegoers seeking out blockbusters and prestige titles. They are operated by Pacific Theaters, which also manages a handful of theaters under the Pacific name, and are owned by Decurion.
“After shutting our doors more than a year ago, today we must share the difficult and sad news that Pacific will not be reopening its ArcLight Cinemas and Pacific Theaters locations,” the company said in a statement.
“This was not the outcome anyone wanted,” it added, “but despite a huge effort that exhausted all potential options, the company does not have a viable way forward.”
Between the Pacific and ArcLight brands, the company owned 16 theaters and more than 300 screens.
The movie theater business has been hit particularly hard by the pandemic. But in recent weeks, the majority of the country’s largest theater chains, including AMC and Regal Cinemas, have reopened in anticipation of the slate of Hollywood films that have been put back on the calendar, many after repeated delays because of pandemic restrictions. A touch of optimism is even in the air as a result of the Warner Bros. movie “Godzilla vs. Kong,” which has generated some $70 million in box office receipts since opening over Easter weekend.
Still, the industry’s trade organization, the National Association of Theater Owners, has long warned that the punishing closures were most likely to affect smaller regional players like ArcLight and Pacific. In March, the Alamo Drafthouse Cinema chain, which operates about 40 locations across the country, announced that it had filed for Chapter 11 bankruptcy protection but would keep most of its locations operational while it restructured.
That does not seem to be the case for Pacific Theaters, which, according to two people with knowledge of the matter, fired its entire staff on Monday.
The reaction to ArcLight’s closing around Hollywood has been emotional, including an outpouring on Twitter.
Devastating. Too many losses to process. It’s just too much… At some point when I’m less upset, I’ll tell you guys a funny story about my first time meeting Quentin Tarantino in the lobby of Hollywood Arclight. https://t.co/cFypJxEk4L
— Lulu Wang (@thumbelulu) April 13, 2021
Three people infected with the coronavirus died at a hospital in Bucharest on Monday evening after the oxygen supply stopped functioning, according to the authorities, the latest incident involving oxygen failure, which in many countries has driven up the virus death toll.
It was also another fatal setback for Romania’s ageing and overwhelmed health care system, which has suffered two fires in Covid-19 wards in recent months, killing at least 15 people.
Ventilators shut down at a mobile intensive care unit set up at the Victor Babes hospital in Bucharest after oxygen pressure reached too high a level, the country’s health authorities said in a statement, depriving patients of a vital supply. In addition to the three patients who died, five others were evacuated and moved to other facilities in the city.
Romania has recorded its highest rate of Covid-19 patients in intensive care units since the pandemic began, and on Sunday Prime Minister Florin Citu said that there were just six intensive care beds available across Romania, out of nearly 1,600.
Intensive care units in Hungary and Poland have also been at risk of being overwhelmed, as much of Eastern Europe has struggled to cope with a third wave of infections across the continent. Some Hungarian hospitals have sought medical students and volunteers to assist in Covid-19 wards, giving training to those without previous medical experience.
The mobile unit struck by the oxygen problem on Monday had only been in operation since Saturday, and it has epitomized long-running concerns over the country’s fragile health care system. In January, five patients died and a further 102 were evacuated from a different hospital in Bucharest after a fire broke out. In November, 10 patients hospitalized with the coronavirus died after a fire broke out in a hospital in the northeastern city of Piatra Neamt.
Romania’s spending on health care is among the lowest in the European Union, with just over five percent of gross domestic product allocated toward it, compared with 10 percent on average among other countries of the bloc.
More than 25,000 people who tested positive for the virus have died in Romania, and the authorities have closed schools and kindergartens throughout April as part of an extended Easter holiday.
The authorities have so far administered more than 3.5 million vaccine doses, in a population of about 19 million.
— Kit Gillet
Studies have found that women in academia have published fewer papers, led fewer clinical trials and received less recognition for their expertise during the pandemic.
Add to that the emotional upheaval of the pandemic, the protests over structural racism, worry about children’s mental health and education, and the lack of time to think or work, and an already unsustainable situation becomes unbearable.
Michelle Cardel, an obesity researcher at the University of Florida, worries that this confluence of factors could push some women to leave the sciences.
“My big fear is that we are going to have a secondary epidemic of loss, particularly of early career women in STEM,” she said.
Female scientists were struggling even before the pandemic. It was not unusual for them to hear that women were not as smart as men, or that a woman who was successful must have received a handout along the way, said Daniela Witten, a biostatistician at the University of Washington in Seattle.
Women in academia often have little recourse when confronted with discrimination. Their institutions sometimes lack the human resources structures common in the business world.
Compounding the frustration are outdated notions about how to help women in science. But social media has allowed women to share some of those concerns and find allies to organize and call out injustice when they see it, said Jessica Hamerman, an immunologist at the Benaroya Research Institute in Seattle.
In November, for example, a study on female scientists was published in the influential journal Nature Communications suggesting that having female mentors would hinder the career of young scientists and recommending that young women seek out male help.
The response was intense and unforgiving: Nearly 7,600 scientists signed a petition calling on the journal to retract the paper — which it did on Dec. 21.
The study arrived at a time when many female scientists were already worried about the pandemic’s effect on their careers, and already on edge and angry with a system that offered them little support.
Alisa Stephens found working from home to be a series of wearying challenges. Dr. Stephens is a biostatistician at the University of Pennsylvania, and carving out the time and mental space for that work with two young children at home was impossible.
Things eased once the family could safely bring in a nanny, but there was still little time for the deep thought Dr. Stephens had relied on each morning for her work.
Over time, she has adjusted her expectations of herself. “Maybe I’m at 80 percent as opposed to 100 percent,” she said, “but I can get things done at 80 percent to some extent.”
In San Francisco, public officials have announced a pilot program that will provide a monthly stipend to artists. The mayor’s office recently unveiled the initiative, city payments that were approved by thearts commission, which will provide a guaranteed monthly income of $1,000 over six months to 130 eligible artists.
A similar experiment started in St. Paul, Minn., this week. There, a nonprofit organization is working with the city to disburse monthly $500 checks to 25 local artists for the next 18 months. Springboard for the Arts, the organization running the initiative, with funding from two foundations, said it hoped a successful program could change the national conversation.
And more programs, not limited to arts workers, are springing up in cities like Oakland, Calif., and Atlanta, whose leaders are part of a 41-member coalition, Mayors for a Guaranteed Income. The coalition says that providing such an income will improve racial and gender equity. (New York has no such plan in the works, a spokesman for the Department of Cultural Affairs said last week.)
Interest in guaranteed income — or universal basic income — has built over the last year as a potential solution to the lopsided economic effects of the pandemic.
initiative to invest in Black children and families.
Since opening the application portal for artists on March 25, the Yerba Buena Center for the Arts, which is administering the guaranteed income program on behalf of San Francisco, said it has received more than 1,800 responses. (The deadline for applications is April 15.)
Deborah Cullinan, the organization’s chief executive, said that if people in the arts are unstable, “to my mind, I think it means that we are not stable. An organization is only as stable as its core community.”
Cullinan said that she hoped that data from the program could be used to inform the national agenda, and that she already had interest from the federal government.
“It’s about finding new and innovative ways to address the economic insecurity of our sector,” Cullinan added.
In St. Paul, the McKnight and Bush Foundations have helped get the guaranteed-income program off the ground. Laura Zabel, Springboard’s director overseeing the project, said that the monthly payments would help artists afford food and rent. The recipients of the stipends will be chosen from a pool of previous recipients of the organization’s coronavirus emergency grants. The director added that at least 75 percent of recipients would be people of color.
The growth of the shipping industry and ship size has played a central role in creating the modern economy, helping to make China a manufacturing powerhouse and facilitating the rise of everything from e-commerce to retailers like Ikea and Amazon. To the container lines, building bigger made sense: Larger ships allowed them to squeeze out savings on construction, fuel and staffing.
“Ultra Large Container Vessels (U.L.C.V.) are extremely efficient when it is about transporting large quantities of goods around the globe,” Tim Seifert, a spokesman for Hapag-Lloyd, a large shipping company, said in a statement. “We also doubt that it would make shipping safer or more environmentally friendly if there would be more or less-efficient vessels on the oceans or in the canals.”
A.P. Moller-Maersk said it was premature to blame Ever Given’s size for what happened in the Suez. Ultra-large ships “have existed for many years and have sailed through the Suez Canal without issues,” said Palle Brodsgaard Laursen, the company’s chief technical officer, said in a statement on Tuesday.
But the growth in ship size has come at a cost. It has effectively pitted port against port, canal against canal. To make way for bigger ships, for example, the Panama Canal expanded in 2016 at a cost of more than $5 billion.
That set off a race among ports along the East Coast of the United States to attract the larger ships coming through the canal. Several ports, including those in Baltimore, Miami and Norfolk, Va., began dredging projects to deepen their harbors. The Port Authority of New York and New Jersey spearheaded a $1.7 billion project to raise the Bayonne Bridge to accommodate mammoth ships laden with cargo from Asia and elsewhere.
The race to accommodate ever-larger ships also pushed ports and terminal operators to buy new equipment. This month, for example, the Port of Oakland erected three 1,600-ton cranes that would, in the words of one port executive, allow it to “receive the biggest ships.”
But while ports incurred costs for accommodating larger ships, they didn’t reap all of the benefits, according to Jan Tiedemann, a senior analyst at Alphaliner, a shipping data firm.
California continued its uneven progress in reopening schools on Monday, as elementary students began to return to classrooms in Long Beach, the state’s fourth-largest district with 70,000 students.
Public schools in the state’s top three districts by enrollment — Los Angeles, San Diego and Fresno — have said they will begin to allow grade-school students back onto campus later in April, as new coronavirus cases have fallen sharply across California.
Schools in Oakland and San Francisco also are scheduled to reopen next month for elementary and special-needs students. But labor agreements in both cities have allowed substantial numbers of teachers to opt out, leaving some schools without enough teachers to reopen and prompting others to scramble for substitutes.
Although many smaller California districts have been open for months, large urban districts on the West Coast generally have lagged behind their counterparts in the rest of the nation. Surging infections in Southern California after the winter holiday were partly to blame for a slow rebound in the Los Angeles school system.
open earlier than other large California school systems because labor unions there agreed last summer to reopen as soon as health conditions permitted, and because the city was able to start vaccinating teachers earlier than other districts in the state.
Unlike most other cities in Los Angeles County, Long Beach has its own public health department, giving the city its own vaccine supplies and the power to set its own vaccine priorities, at a time when the county as a whole was making teachers wait until after other groups, like residents 65 and older, were vaccinated.
“A city with its own health department has the ability to be more nimble,” said Jill Baker, the city’s schools superintendent, who called the return to classrooms this week “exciting and momentous.”
The school district is among the city’s largest employers, and two-thirds of its students qualify for free or reduced-price lunches, so vaccinating school employees and reopening classrooms was viewed as economically important, Ms. Baker said.
About 14,000 students in Long Beach from transitional kindergarten through fifth grade will return this week to school buildings for masked, sanitized and socially distanced instruction. They will be on a hybrid schedule, with students spending about 2½ hours at school each day, five days a week, and completing the school day with remote instruction.
In-person classes for older students are scheduled to resume April 19, with grades 6 to 8 getting the option to return on April 20 and grades 9 to 11 on April 26. The last day of school will be in mid-June.
In 2017, a new Mazda MX-5 Miata RF, resplendent in Soul Red Metallic paint, listed for $35,901. By 2020 that jaunty two-seater had an average resale value of $24,112. If finished in stolid Machine Gray Metallic paint, however, that same model fetched an average of $1,046 less, thanks to the color alone.
Because many other factors influence car value, color is easy to overlook. Yet both paint and car manufacturers maintain international departments of stylists and colorists who not only monitor what consumers are buying but — drawing from the fields of art, architecture, fashion, popular culture and consumer research — predict what people will want up to five years in the future.
Decisions are exasperatingly complex. A popular color for sedans might not work for sports cars. A hit color in Florida might tank in Michigan. According to iSeeCars, a search engine catering to car buyers, the worst color for S.U.V.s was beige, which lost 46 percent of its value over three years. For pickup trucks the best color was … beige. Beige pickups lost only 18 percent in value in the same time period.
The importance of color to cars is almost singular. It’s nothing to chuck a formerly fashionable fuchsia T-shirt, and you can repaint a room in a weekend. But repainting a car costs thousands and requires skilled technicians. With the possible exception of kitchen appliances, there are few color decisions as costly that consumers live with for as long. In a routinely quoted poll from 2000, 39 percent of car buyers said color was more important than brand.
An iSeeCars analysis compared list prices for new 2017 cars with their resale prices in 2020 to see which colors hold value best in different vehicle classes. In addition, some larger paint manufacturers publish annual color popularity reports and predictions for the coming year. Combined, they help draw broad rules for picking the best values in car colors. And while color doesn’t wholly determine a car’s value, if it’s not part of a buying decision, you might get stuck with a gray Miata.
Paint is also about durability, not just aesthetics. It was intended to prevent rust. Henry Ford famously offered customers “a car painted any color that he wants so long as it is black.” Black paint was durable and inexpensive — and using a single color sped up production, said Matt Anderson, a curator at the Henry Ford museum in Dearborn, Mich.
“Popular myth says black was chosen because it dried fast,” he said, “but there’s no evidence that black dried any faster than dark greens or blues,” both among the colors that Ford initially offered.
By the mid-1920s, a DuPont paint formulation helped expand the palette, and color was used as a marketing device; General Motors’ Oakland Motor Car division advertised the True Blue Six model after its bright color in 1924. Even Ford Motor caved in when it needed a marketing boost in 1925.
“Colors then returned for the T’s final two model years in an effort to stimulate slumping sales,” Mr. Anderson said.
Cars came in more than a dozen hues by the mid-50s — the better to attract the female drivers of the family’s second car, the thinking went. Those colors became more vivid in the psychedelic ’60s.
Metal and paint technology upped rust resistance in the ’70s, and then a new process from Europe gained notice, said Clifford Schoff, a paint chemist who spent 30 years at the manufacturer PPG. Clear coating was about to arrive in America.
“We started hearing about the ‘wet look,’” Mr. Schoff said. “The color plus clear meant you kept a higher gloss for a longer time.”
Over the years, those technologies that improved the longevity of cars and paint may help explain the unprecedented 10-year run for white as the most popular color. Its functional advantages also help. White is good in hot climates and hides scratches and dings well, making it popular with fleet buyers.
“Rental car companies love white,” said Karl Brauer, executive analyst for iSeeCars.
But, as the iSeeCars data shows, there is a big gap between what is popular and what retains value.
The 2020 Color Report from the paint provider Axalta (formerly DuPont) said fewer than 1 percent of new cars on lots in America were yellow. Yet iSeeCars data shows yellow retained the most value over all. An overwhelming 30 percent of cars on dealers’ lots are white, followed by 19 percent for both black and gray and 10 percent for silver.
It’s the law of supply and demand. “It’s not that yellow is a popular color. It’s that yellow is popular in relation to how many people want it,” Mr. Brauer said.
“You can’t go wrong buying the popular colors — black, white or silver — but you can’t go right, either,” he added. The most popular colors generally fall in the middle of the value chart.
Rarity alone doesn’t guarantee value. Purple, brown and gold are about as rare as yellow yet retain the least value over all.
There are other anomalies, such as the previously mentioned beige paradox. Trucks did well in muted colors, possibly because, as work vehicles, those hues show less dirt and company names painted on the sides are easy to read.
S.U.V.s did best in flashy colors, possibly because the drivers didn’t want to feel like drudges.
“You are buying the S.U.V. to avoid the minivan,” said Jonah Berger, a professor at the University of Pennsylvania’s Wharton School with expertise in marketing psychology. A lively color, he said, “makes us feel like: ‘I am driving a fun car. I am a fun, exciting person.’”
Apparently minivan owners are focused on utility. Blue retained the most value, losing 39 percent, but that wasn’t much different from the worst, brown, at 42 percent.
This makes it difficult to assess the “best” color for a car. It might be better to consider the best color for a type of buyer.
“People buy things for different reasons,” Mr. Berger said. “Sometimes we buy them for what they do. Sometimes we buy them for what they say about us.”
People who buy cars for utility, like minivan and fleet buyers, seem to value subtle colors that are easy to care for. People who buy a car as a personal statement — sports- and muscle-car owners — value glitzy colors.
That still complicates the paint choice for vehicles that defy categorization. Jeeps and trucks are utility vehicles for some and showpieces for others, who bolt on lift kits, light bars and custom grilles. The Jeep Wrangler retained the most value in Xtreme Purple, a color usually at the bottom of the overall chart. Purple Wranglers kept $2,398 more value than the same model in utilitarian silver.
Color prognosticators agree that the new color to reckon with is blue. Last year it accounted for 10 percent of cars on lots, equal to silver. But which blue? Dark? Light? Metallic? People who make a livelihood from car paint see vast differences between shades of a single hue, even mundane white.
“The white we have is not the white we had 20 years ago,” said Paul Czornij, head of color design for car paint at BASF. A carmaker might ask him for “a white metallic that is a little bluish, and from this grazing angle it has this property, and from this angle is has that property,” he added. “That is very exciting.”
For consumers, those fine points appear to have little effect on value. The iSeeCars data shows that metallic paint’s value advantage over nonmetallic is insignificant.
Ultimately, many buyers may choose paint color disregarding both value and popularity to achieve a third goal, Mr. Berger said: “Maybe having a color that’s different than white makes you happy.”
sales in January surged by 7.6 percent — a gain likely fueled by stimulus checks that were deposited at the end of last year. The increase in January, revised upward on Tuesday, benefited a broad array of retailers. Consumers spent more on goods, including at furniture sellers and department stores, as well as in restaurants, in a positive sign for an economy that has been battered by the pandemic.
The data suggests that the recovery in consumer spending is likely to be bumpy as the retail sector recovers from shifts in consumer spending and a new round of stimulus payments arrives in Americans’ bank accounts. Retailers saw largely uneven sales for the better part of last year, as consumers flocked to big-box chains and grocery stores and spent less at many apparel retailers and restaurants. Balancing out those categories is likely to take a combination of stimulus money, vaccinations, improvements in unemployment numbers and warm weather.
“It was obviously going to slow down a bit,” Mickey Chadha, a retail analyst at Moody’s Investors Service, said of the February sales.
“Going forward, the new stimulus checks that are going out as we speak are definitely going to be a positive for retail sales in March and through April,” he added. “All indications are, as the vaccines roll out through the country and the pandemic gets under control, this capacity to spend is only going to fuel further sales in retail.”
Economists at Morgan Stanley had forecast a 0.7 percent gain in February sales based on the outsize gains in January, and also predicted that new stimulus money arriving in late March and early April would drive a spending surge in coming months.
President Biden signed into law a nearly $1.9 trillion relief plan last week, and direct payments of $1,400 per person are already making their way to the bank accounts of low- and middle-income Americans.
“Some of that money is bound to flow into retail — it just has to,” Mr. Chadha said.
The law, known as the American Rescue Plan, also extends $300 federal jobless benefits through Sept. 6 and provides billions of dollars to distribute coronavirus vaccines and relief for schools, states, tribal governments and small businesses struggling during the pandemic.
Emmanuel Faber, the chairman and chief executive of the French consumer group Danone, abruptly left the company on Monday under pressure from activist investors. Now, shareholders of the company, which owns Evian and several yogurt brands, are fighting among themselves about it.
CtW, an adviser to union pensions with more than $250 billion in assets, sent a sharply worded letter to Artisan Partners, the firm that led the revolt over Mr. Faber’s leadership. The twist in the letter, which was reviewed by the DealBook newsletter, is that CtW owns a “substantial” number of Artisan shares — and said that the fund needed the sort of governance shake-up it pushed for at Danone.
Artisan had criticized Danone’s performance versus competitors like Nestlé and Unilever, calling for boardroom changes, including someone other than Mr. Faber becoming chairman. Mr. Faber had been chief executive since 2014 and added the chairman role in 2017. Danone said at the beginning of the month that it would search for a new chief executive, but Mr. Faber would remain as chairman. Mr. Faber shed both of those roles on Monday.
“The appointment of new leadership and better corporate governance will strengthen the company for the benefit of all stakeholders,” Artisan said in a statement on Monday welcoming Mr. Faber’s departure.
CtW says Artisan’s own policies are inconsistent with its demands for Danone. Notably, one person, Eric Colson, serves as Artisan’s chairman and chief executive. “Artisan’s call for an independent chair at Danone while maintaining the positions of C.E.O. and chair combined on its own board is inconsistent with best governance practices,” wrote Dieter Waizenegger, CtW’s executive director. He also questioned the firm’s use of “large discretionary cash bonuses” and demanded a discussion with Artisan’s management by the end of the month.
Artisan did not respond to a request for comment.
Danone, which reported $28 billion in sales in its latest fiscal year, was the first public company to adopt the French legal framework of “Entreprise à Mission,” which allows companies to take greater consideration of social and environmental issues in their business model. Some 99 percent of shareholders, but not Artisan Partners, approved the move in June last year.
The turmoil raises the question whether business models that take all stakeholders into account can survive resistance from activist investors focused primarily on shareholder returns. Danone said in a statement announcing the management changes that it “believes in the necessity” of combining “high economic performance” with Danone’s “unique model of a purpose-driven company.”
The Taiwanese electronics behemoth Foxconn, which is aiming to become a contract manufacturer of electric cars, is considering a plant in the United States for production of its first battery-powered vehicles, the company’s chairman said on Tuesday.
Foxconn is weighing whether to use its facility in Wisconsin or one of its plants in Mexico to make its clients’ vehicles, Young Liu, the company’s chairman and chief executive, said at a news briefing in Taipei, the Taiwanese capital.
Foxconn, best-known for making iPhones for Apple, has moved eagerly to expand its car business as the world shifts away from internal combustion engines. Last month, it signed an agreement with the California-based start-up Fisker to develop a new electric vehicle. The two companies said they would aim to start jointly producing cars in 2023, with a goal of eventually making more than 250,000 of them a year.
On Tuesday, Mr. Liu emphasized that Foxconn had not made a final decision about where to manufacture cars for Fisker or any other potential partners.
Foxconn has taken its time figuring out what to produce at its site in Wisconsin, a reflection of the complicated economics of manufacturing in the United States.
At a groundbreaking ceremony for the plant in 2018, President Donald J. Trump said it would be the “eighth wonder of the world,” as a manufacturer of flat-screen TVs. But those plans have stalled, and the company will announce what it decides to make in Wisconsin — whether electric cars or something else — before July, Mr. Liu said.
In October, Foxconn unveiled a kit of technology and tools aimed at helping automakers develop electric vehicles. It also said it was aiming to release a solid-state battery by 2024. Many companies are investing in the technology behind such batteries, which would allow electric cars to travel farther and be charged more quickly than current batteries.
“It’s just the beginning of this E.V. era,” Mr. Liu said. “We have to be ready for that.”
President Biden plans to visit a small business in Pennsylvania on Tuesday to promote the $1.9 trillion American Rescue Plan, which contains an assortment of measures aimed at helping small employers and their workers endure the pandemic’s economic shocks.
The aid bill created a $29 billion grant fund for restaurants and set aside additional money for several relief programs run by the Small Business Administration, including a long-delayed grant program for music clubs and other live-event businesses that the agency said would start accepting applications early next month.
But the Biden administration’s most sweeping small-business initiative has been hindered by problems. Last month, the administration announced changes to the Paycheck Protection Program that were intended to get more money to freelancers, gig workers and other self-employed people.
Women and minority owners are much more likely to run tiny businesses than larger ones, and they were disproportionately shut out of the Paycheck Protection Program under earlier rules that calculated such companies’ forgivable relief loans based on the size of their annual profit. The Biden administration’s more forgiving formula lets those businesses instead use their gross income, a switch that significantly increased the money available to many applicants.
But the change was not retroactive, which has set off a backlash from the hundreds of thousands of borrowers who got much smaller loans than they would now qualify for. Many have used social media or written to government officials to vent their anger.
JagMohan Dilawri, a self-employed chauffeur in Queens, got a loan in February for $1,900. Under the new rules, he calculates that he would have been eligible for around $15,000. That wide gulf frustrated Mr. Dilawri, who has struggled to keep up on his mortgage, car loan and auto insurance payments since the pandemic took hold.
“When the Biden administration came, they said, ‘We will be fair with everyone,’” he said. “But this is unfair.”
Small Business Administration officials have said that only Congress can fix that disparity. Some key Democratic lawmakers say they are willing.
“I am aware of the situation facing these sole proprietors and am working to ensure they get the funds they are entitled to under the Biden administration’s rule changes retroactively,” said Representative Nydia M. Velázquez, a New York Democrat who leads the House Small Business Committee. “My staff and I are working with the S.B.A. and congressional Republicans to find a path forward, whether that be through agency action or additional legislation.”
Signal, the encrypted chat app, had stopped functioning in China as of Tuesday, in what appeared to be a block of one of the last major foreign messaging services still available in the country, where the internet is closely controlled.
Users in China on Tuesday morning reported widely that the app had stopped working. A New York Times test of the app in Shanghai and Beijing confirmed the reports. Signal did not respond to an emailed request for comment.
The outage appeared likely to be a government-led block. The app continued to work when users in the mainland logged on to the service via a virtual private network, software that routes their connections outside the country.
Signal allows messages to be sent with “end-to-end encryption,” which blocks anyone but the sender and receiver from reading the contents. The app has soared in popularity globally in recent months a fears have grown over data harvesting from large internet companies.
The likely block further limits communication options on China’s internet, where the government has built a sophisticated system of censorship and surveillance to control speech. Over the past 15 years, Beijing has steadily winnowed down the major foreign communication tools available to regular Chinese users. Services like Google’s Gmail, Facebook’s WhatsApp and Twitter are all blocked.
In recent years, Signal had grown a modest following in China among activists, journalists, lawyers and others as China’s top leader, Xi Jinping, has presided over a series of campaigns to crack down on the media, civil society groups and online speech broadly.
For years, it had been a parlor game among its users in China to guess why Signal, long a well-known tool for secret communications, remained unblocked. One theory was that it helped the authorities find who was trying to hide from government spies because, when first downloaded, the app sends the new user a text message that they could possibly track. Still, China’s government often waits for apps to reach larger scale before banning them. Last month, the social media site Clubhouse fell afoul of the blocks after it soared in popularity.
Wall Street followed European and Asian markets higher on Tuesday, adding slightly to gains that on Monday lifted the S&P 500 to a record.
The S&P 500 rose about 0.1 percent in early trading while the Nasdaq composite gained more than half a percent. The Stoxx Europe 600 and FTSE 100 rose about 0.8 percent. Hong Kong’s Hang Seng Index and the Nikkei in Japan had climbed more than half a percent earlier.
The gains came despite recent turmoil about the vaccine rollout in Europe, and growing expectations of a new round of pandemic-related restrictions there.
Several European countries, including Germany, France, Denmark and Norway, have halted the use of the AstraZeneca vaccine after reports that some people had developed fatal brain hemorrhages and blood clots after receiving the vaccine. AstraZeneca has said there is “no evidence” of a link, and the European Medicines Agency and the World Health Organization have warned that countries suspending use of the vaccine would disrupt the rollout.
But investors are in wait-and-see mode ahead of central bank meetings this week.
On Wednesday, the Federal Reserve will announce its policy stance and publish new economic forecasts. Analysts at BNP Paribas said the Fed chair, Jerome H. Powell, faces a tricky balancing act: acknowledging the improved economic outlook and increase in bond yields, while defending the central bank’s easy-money policies.
Investors have been focused on interest rates and inflation expectations for the past several weeks, concerned that resurgent growth in the United States might prompt the Fed to start to wind down efforts to keep rates low sooner than they’d expected. Fed officials have repeatedly said that they’re not concerned about lasting inflation, and that they have no intention of ending their efforts to keep the financial system functioning smoothly.
On Thursday, the Bank of England will announce a rate decision. Economists are not forecasting a change in policy.
A survey of investor confidence in Germany’s economic outlook rose in March, for the fourth consecutive month. The Stoxx Europe 600 index rose 0.5 percent and the DAX index of Germany’s 30 largest companies by market value gained 0.6 percent.
What else is happening in markets
Shares in NatWest, formerly known as Royal Bank of Scotland, fell 1.8 percent after Britain’s financial regulator said it has begun criminal proceedings against the bank for failing to properly follow money laundering rules.
Oil prices fell. Futures of West Texas Intermediate, the U.S. crude benchmark, dropped 1.5 percent to about $64.50 a barrel.
Volkswagen shares spiked as much as 29 percent after the German carmaker said on Monday that it was going all in on electric cars, with plans to build battery factories in Europe and work out how to drastically cut charing times.
Commerzbank, one of Germany’s largest banks, said on Monday that Hans-Jörg Vetter would step down as chairman of the supervisory board for health reasons after barely six months in the position. Mr. Vetter, 68, was appointed chairman in August over the objections of shareholders led by Cerberus, the private equity firm, which owns a 5 percent stake in Commerzbank and wanted someone it thought would be more likely to force changes. The German government is the bank’s biggest shareholder with 15 percent.
Viewership for the Grammy Awards on CBS on Sunday fell to 8.8 million viewers, according to Nielsen, the television research firm. That’s a new low for the show and a 53 percent drop compared with last year’s show, which drew 18.7 million viewers. The previous low was 17 million viewers in 2006, when Green Day won record of the year.
The future for the travel industry is looking a little brighter as more Americans get vaccinated, states open up and resorts sell out, the nation’s largest airlines said Monday. Speaking at the J.P. Morgan Industrial Conference on Monday, the chief executive of Delta Air Lines, Ed Bastian, said he was starting to see “real glimmers of hope” as ticket sales accelerated. At the same conference, the United Airlines chief executive, Scott Kirby, said his company would end the month having taken in more cash from operations than it spent.
The Hatch is alive, albeit as a different place.
Louwenda Kachingwe used ingenuity and a bit of good fortune to take advantage of federal money and discounted leases to not only hold on but expand his Oakland, Calif., bar, Jack Nicas reports for The New York Times.
He lobbied city officials to close down a lane of traffic and then twice built a patio in its place. (Days of rain ruined the first patio.) He and staff built the takeout window, rewrote the menu, moved a projector and screen outside, and bought an outdoor sound system off Craigslist.
He said the Hatch was now better suited for a post-pandemic world, with more outdoor space and a takeout operation. It also suddenly has a few sister businesses.
Last month, he and the Hatch’s manager, Robin Easterbrook, opened Pothead, a flower and wine shop, next door to the Hatch. They also took on a third lease in the empty space next to Pothead as a place to build larger floral arrangements for events, to stage a new operation making bottled cocktails and sauces, and to sublease the storefront to some friends’ apparel business.
Such a bet in the midst of a pandemic was bold, but Mr. Kachingwe saw opportunity. He had just received his second $72,500 forgivable loan from the federal government, and his landlord was desperate. So Mr. Kachingwe negotiated a deal that gave him access to the three adjacent storefronts for $7,500 a month, or 20 percent more than what he was paying for only the Hatch before the pandemic. The landlord said they would assess the arrangement at the end of April.
Over two decades, as Amazon mushroomed from a virtual bookstore into a $1.5 trillion behemoth, it forcefully — and successfully — resisted employee efforts to organize. Some workers in recent years agitated for change in Staten Island, Chicago, Sacramento and Minnesota, but the impact was negligible.
The arrival of the coronavirus last year changed that, reports David Streitfeld for The New York Times. It turned Amazon into an essential resource for millions stuck at home and redefined the company’s relationship with its warehouse workers. Like many service industry employees, they were vulnerable to the virus. As society locked down, they were also less able to simply move on if they had issues with the job.
Now Amazon faces a union vote at a warehouse in Bessemer, Ala. — the largest and most viable U.S. labor challenge in its history. Nearly 6,000 workers have until March 29 to decide whether to join the Retail, Wholesale and Department Store Union. A labor victory could energize workers in other U.S. communities, where Amazon has more than 800 warehouses employing more than 500,000 people.
“This is happening in the toughest state, with the toughest company, at the toughest moment,” said Janice Fine, a professor of labor studies at Rutgers University. “If the union can prevail given those three facts, it will send a message that Amazon is organizable everywhere.”
But a unionization effort in Chester, V.a., which The Times reconstructed with documents from regulators and the machinists’ union, as well as interviews with former facilities technicians at the warehouse and union officials, offers one of the fullest pictures of what encourages Amazon workers to open the door to a union — and what techniques the company uses to slam the door and nail it shut.
The tactics that Amazon used in Chester are surfacing elsewhere:
The retail workers union said Amazon was trying to surveil employees in Bessemer and even changed a traffic signal to prevent organizers from approaching warehouse workers as they left the site.
Last month, the New York attorney general said in a lawsuit that Amazon had retaliated against employees who tried to protest its pandemic safety measures as inadequate.
It wouldn’t have been a Carl Hiaasen column if it didn’t go on the attack. In his Miami Herald farewell on Friday, Mr. Hiaasen took aim at the sorry state of local news coverage.
“Retail corruption is now a breeze,” he wrote, “since newspapers and other media can no longer afford enough reporters to cover all the key government meetings.”
Mr. Hiaasen, 68, joined The Miami Herald as a reporter in 1976 and started his column in 1985. Along the way he became a best-selling author, writing about Florida’s underbelly and environmental devastation in comic novels like “Tourist Season,” “Sick Puppy” and “Strip Tease.” Now he will no longer have a weekly venue for skewering government officials, business leaders and the various absurdities of life in the Sunshine State.
“Nobody becomes a journalist because they yearn for mass adoration,” he wrote in his final column. “Donald Trump didn’t turn the public against the mainstream media; the news business has never been popular.”
Mr. Hiaasen also used his goodbye to pay tribute to his brother, Rob, a journalist who was killed in a gunman’s rampage at The Capital Gazette in Maryland in 2018. He also thanked The Herald’s “talented, tenacious” editors and reporters.
The paper was owned by the newspaper publisher Knight Ridder when he started working there. In 2006, the McClatchy Company, a family-run newspaper chain, bought Knight Ridder for $4.5 billion. Last year Chatham Asset Management, a New Jersey hedge fund, bought McClatchy, and The Herald along with it, in a bankruptcy auction.
In an interview Monday, Mr. Hiaasen said he had lasted 45 years at The Herald because it was “a good fit.”
“I always felt privileged to be able to write for a paper that I read as a kid growing up here in Florida and to be writing in a place that I care about,” he said. “I was lucky to be at this paper as a reporter in the ’70s and ’80s, when Miami was catching fire. It was a hell of a newspaper, hell of a news town and I was lucky to be there.”
He said he planned to do more fishing but will continue writing books. “Nobody really retires as a writer,” Mr. Hiaasen said. “You keel face forward into the keyboard one day and that’s it.”
He added that the hardest thing to watch during his career was the shrinking of the local news industry, saying, “There are fewer and fewer boots on the ground to do the grunt work required to keep democracy informed.”
Ms. Easterbrook, the Hatch’s manager, had been planning to open a sister bar called Good for Nothing, but she quickly ditched the plan when the pandemic arrived. Then, in a late-night conversation while waiting for takeout orders at the Hatch, Ms. Easterbrook, a trained florist, and Mr. Kachingwe came up with the idea for Pothead. To them, the concept made sense: There was still demand for flowers and plants, the Hatch’s new outdoor space could attract customers, and they could use the bar’s liquor license to sell wine.
Ms. Easterbrook said the first weeks had been a success, though Mr. Kachingwe still had plenty to learn. “In the beginning he asked me things like, ‘Should I get more sand for the flowers?’” she said.
Mr. Kachingwe teamed up with the Hatch’s cook, Leonardo Garcia, to make and bottle sauces, including Hatch Fire Ketchup and Hatch Fuego. And he worked with Giacchino Breen, a 23-year-old bartender, on bottling cocktails under a new brand, Wolfmoon. As part of Mr. Kachingwe’s effort to empower his employees, Mr. Garcia and Mr. Breen have stakes in the sales.
Now, after a year in which he worried the Hatch would never fully open again, Mr. Kachingwe said his biggest anxiety was welcoming customers back inside. He is trying to figure out how to make the sound system cover both the indoor and outdoor spaces and whether to have indoor customers order food at the outdoor window. Until they receive a vaccine, some on the staff are also uncomfortable with customers returning inside the compact bar.
In fact, Mr. Kachingwe said, he prefers the new Hatch to what it was before the pandemic. With the outdoor seating, “it’s more lively,” he said. “I don’t see things going back to the way they were.”
The master tenant of the Oakland Ghost Ship warehouse, where a fire killed 36 people in 2016, received a 12-year sentence – but he is not likely to see the inside of a state prison.
Already on house arrest after being released from jail last year because of coronavirus concerns, Derick Almena, 50, on Monday was ordered to serve the rest of his term under electronic monitoring, followed by three years of probation.
“I know that no family member will find this in any way acceptable, and I accept that responsibility,” Trina Thompson, a judge on the Alameda county superior court, said.
She added: “I wish I could in the stroke of a pen take away your deep loss and your sadness.”
The sentence marked an end to an emotionally charged case that devastated the local underground arts and music community. The 2 December 2016 Ghost Ship inferno, one of the deadliest structure fires in US history, brought into focus the harsh reality of the Bay Area’s housing crisis, and the hazardous conditions it was forcing local artists to accept in order to continue living and working.
Almena, who lived in the warehouse with his family, was accused of ignoring fire codes and warnings that the space was hazardous when he illegally converted it into commune-style living quarters. He filled the building with Balinese statues, antiques, discarded material and wooden pallets, racking up a history of violations and complaints. Almena often hosted for-profit concerts at the commune, even though it was not licensed for entertainment.
The night of the blaze, prosecutors alleged Almena knowingly packed dozens of people into a “fire trap” for an electronic music party, trapping victims on an illegally constructed second floor. Prosecutors said the victims got no warning and had little chance to escape down the narrow, ramshackle staircase.
Many of the those who died that night came from the local community, including musicians, artists, students, teachers and photographers.
In 2019, a jury acquitted Max Harris, Almena’s purported right-hand man, of involuntary manslaughter, but could not reach a verdict on charges against Almena. Almena pleaded guilty in January to 36 counts of involuntary manslaughter in exchange for a 12-year sentence, a plea deal he struck with prosecutors to avoid a second trial.
Many of the relatives of the 36 killed had urged the judge to reject the plea deal. Because he received credit for time already spent behind bars while awaiting trial and for good behavior, he will spend the next year and a half at home with an ankle monitor.
“This lenient, slap-on-the-wrist sentence is vastly inappropriate for the crimes Derick Almena committed,” the family of Sarah Hoda, a victim of the fire, said in a statement read to the court via teleconference. “Upholding the DA’s irresponsible plea recommendation would shortchange 36 victims and their families.”
Emilie Grandchamps, the mother of Alex Ghassan, another victim, said Almena along with the warehouse’s owners and city agencies that are supposed to enforce regulations should be held accountable.
“I often ask, ‘Why was my son given a death sentence for being in the wrong place and at the wrong time and those responsible for his and 35 others’ death are given a second chance at life?’ I want my son’s death not to go in vain,” she said.
The judge and prosecutors said they took into consideration the difficulties of trying the case again, given the challenges of selecting jurors and calling witnesses who could face traveling during a pandemic, and because Almena had admitted his guilt. Almena apologized to the victims and said he was “sick with shame”.
“My shame cannot stand as any defense against what I am responsible for. It is my fault, my terrible accumulation of error, that shaped and built a place so dangerous,” he said in a statement read to the court through his attorney, Tony Serra.
Almena became the object of ire in the wake of the fire after after he posted on Facebook, just hours after the flames broke out: “Everything I worked so hard for is gone. It’s as if I have awoken from a dream filled with opulence and hope … to be standing now in poverty of self worth.”
The post was later deleted. Past residents and artists later came forward to describe not only dangerous living conditions at the warehouse, but what they called Almena’s erratic, manipulative behavior.
The Oakland city council agreed last year to pay just over $33m to settle civil lawsuits filed on behalf of the victims. The settlements included $23.5m to families of 32 victims and $9.3m to a survivor who suffers from “severe, lifelong injuries.”.
Almena was also ordered to pay about $181,000 in restitution for funeral expenses and counseling. A restitution hearing will be held on 30 April.