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Why Vaccinating the World Against Covid-19 Will Be Hard

In delivering vaccines, pharmaceutical companies aided by monumental government investments have given humanity a miraculous shot at liberation from the worst pandemic in a century.

But wealthy countries have captured an overwhelming share of the benefit. Only 0.3 percent of the vaccine doses administered globally have been given in the 29 poorest countries, home to about 9 percent of the world’s population.

Vaccine manufacturers assert that a fix is already at hand as they aggressively expand production lines and contract with counterparts around the world to yield billions of additional doses. Each month, 400 million to 500 million doses of the vaccines from Moderna, Pfizer and Johnson & Johnson are now being produced, according to an American official with knowledge of global supply.

But the world is nowhere close to having enough. About 11 billion shots are needed to vaccinate 70 percent of the world’s population, the rough threshold needed for herd immunity, researchers at Duke University estimate. Yet, so far, only a small fraction of that has been produced. While global production is difficult to measure, the analytics firm Airfinity estimates the total so far at 1.7 billion doses.

dangerous new variants emerge, requiring booster shots and reformulated vaccines, demand could dramatically increase, intensifying the imperative for every country to lock up supply for its own people.

The only way around the zero-sum competition for doses is to greatly expand the global supply of vaccines. On that point, nearly everyone agrees.

But what is the fastest way to make that happen? On that question, divisions remain stark, undermining collective efforts to end the pandemic.

Some health experts argue that the only way to avert catastrophe is to force drug giants to relax their grip on their secrets and enlist many more manufacturers in making vaccines. In place of the existing arrangement — in which drug companies set up partnerships on their terms, while setting the prices of their vaccines — world leaders could compel or persuade the industry to cooperate with more companies to yield additional doses at rates affordable to poor countries.

Those advocating such intervention have focused on two primary approaches: waiving patents to allow many more manufacturers to copy existing vaccines, and requiring the pharmaceutical companies to transfer their technology — that is, help other manufacturers learn to replicate their products.

more than 100 countries in asking the W.T.O. to partially set aside vaccine patents.

But the European Union has signaled its intent to oppose waivers and support only voluntary tech transfers, essentially taking the same position as the pharmaceutical industry, whose aggressive lobbying has heavily shaped the rules in its favor.

Some experts warn that revoking intellectual property rules could disrupt the industry, slowing its efforts to deliver vaccines — like reorganizing the fire department amid an inferno.

“We need them to scale up and deliver,” said Simon J. Evenett, an expert on trade and economic development at the University of St. Gallen in Switzerland. “We have this huge production ramp up. Nothing should get in the way to threaten it.”

Others counter that trusting the pharmaceutical industry to provide the world with vaccines helped create the current chasm between vaccine haves and have-nots.

The world should not put poorer countries “in this position of essentially having to go begging, or waiting for donations of small amounts of vaccine,” said Dr. Chris Beyrer, senior scientific liaison to the Covid-19 Prevention Network. “The model of charity is, I think, an unacceptable model.”

halting vaccine exports a month ago. Now, as a wave of death ravages the largely unvaccinated Indian population, the government is drawing fire at home for having let go of doses.

poses universal risks by allowing variants to take hold, forcing the world into an endless cycle of pharmaceutical catch-up.

“It needs to be global leaders functioning as a unit, to say that vaccine is a form of global security,” said Dr. Rebecca Weintraub, a global health expert at Harvard Medical School. She suggested that the G7, the group of leading economies, could lead such a campaign and finance it when the members convene in England next month.

Pfizer expects to sell $26 billion worth of Covid vaccines this year; Moderna forecasts that its sales of Covid vaccines will exceed $19 billion for 2021.

History also challenges industry claims that blanket global patent rights are a requirement for the creation of new medicines. Until the mid-1990s, drug makers could patent their products only in the wealthiest markets, while negotiating licenses that allowed companies in other parts of the world to make generic versions.

Even in that era, drug companies continued to innovate. And they continued to prosper even with the later waivers on H.I.V. drugs.

“At the time, it rattled a lot of people, like ‘How could you do that? It’s going to destroy the pharmaceutical industry,’” recalled Dr. Anthony S. Fauci, President Biden’s chief medical adviser for the pandemic. “It didn’t destroy them at all. They continue to make billions of dollars.”

Leaders in the wealthiest Western nations have endorsed more equitable distribution of vaccines for this latest scourge. But the imperative to ensure ample supplies for their own nations has won out as the virus killed hundreds of thousands of their own people, devastated economies, and sowed despair.

The drug companies have also promised more support for poorer nations. AstraZeneca’s vaccine has been the primary supply for Covax, and the company says it has sold its doses at a nonprofit price.

stumbled, falling short of production targets. And producing the new class of mRNA vaccines, like those from Pfizer-BioNTech and Moderna, is complicated.

Where pharmaceutical companies have struck deals with partners, the pace of production has frequently disappointed.

“Even with voluntary licensing and technology transfer, it’s not easy to make complex vaccines,” said Dr. Krishna Udayakumar, director of the Duke Global Health Innovation Center.

Much of the global capacity for vaccine manufacturing is already being used to produce other lifesaving inoculations, he added.

But other health experts accuse major pharmaceutical companies of exaggerating the manufacturing challenges to protect their monopoly power, and implying that developing countries lack the acumen to master sophisticated techniques is “an offensive and a racist notion,” said Matthew Kavanagh, director of the Global Health Policy and Politics Initiative at Georgetown University.

With no clear path forward, Ms. Okonjo-Iweala, the W.T.O. director-general, expressed hope that the Indian and South African patent-waiver proposal can be a starting point for dialogue.

“I believe we can come to a pragmatic outcome,” she said. “The disparity is just too much.”

Peter S. Goodman reported from London, Apoorva Mandavilli from New York, Rebecca Robbins from Bellingham, Wash., and Matina Stevis-Gridneff from Brussels. Noah Weiland contributed reporting from New York.

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What Would It Take to Vaccinate the World Against Covid?

In delivering vaccines, pharmaceutical companies aided by monumental government investments have given humanity a miraculous shot at liberation from the worst pandemic in a century.

But wealthy countries have captured an overwhelming share of the benefit. Only 0.3 percent of the vaccine doses administered globally have been given in the 29 poorest countries, home to about 9 percent of the world’s population.

Vaccine manufacturers assert that a fix is already at hand as they aggressively expand production lines and contract with counterparts around the world to yield billions of additional doses. Each month, 400 million to 500 million doses of the vaccines from Moderna, Pfizer and Johnson & Johnson are now being produced, according to an American official with knowledge of global supply.

But the world is nowhere close to having enough. About 11 billion shots are needed to vaccinate 70 percent of the world’s population, the rough threshold needed for herd immunity, researchers at Duke University estimate. Yet, so far, only a small fraction of that has been produced. While global production is difficult to measure, the analytics firm Airfinity estimates the total so far at 1.7 billion doses.

more than 100 countries in asking the W.T.O. to partially set aside vaccine patents.

But the European Union has signaled its intent to oppose waivers and support only voluntary tech transfers, essentially taking the same position as the pharmaceutical industry, whose aggressive lobbying has heavily shaped the rules in its favor.

Some experts warn that revoking intellectual property rules could disrupt the industry, slowing its efforts to deliver vaccines — like reorganizing the fire department amid an inferno.

“We need them to scale up and deliver,” said Simon J. Evenett, an expert on trade and economic development at the University of St. Gallen in Switzerland. “We have this huge production ramp up. Nothing should get in the way to threaten it.”

Others counter that trusting the pharmaceutical industry to provide the world with vaccines helped create the current chasm between vaccine haves and have-nots.

The world should not put poorer countries “in this position of essentially having to go begging, or waiting for donations of small amounts of vaccine,” said Dr. Chris Beyrer, senior scientific liaison to the Covid-19 Prevention Network. “The model of charity is, I think, an unacceptable model.”

Pfizer expects to sell $26 billion worth of Covid vaccines this year; Moderna forecasts that its sales of Covid vaccines will exceed $19 billion for 2021.

History also challenges industry claims that blanket global patent rights are a requirement for the creation of new medicines. Until the mid-1990s, drug makers could patent their products only in the wealthiest markets, while negotiating licenses that allowed companies in other parts of the world to make generic versions.

Even in that era, drug companies continued to innovate. And they continued to prosper even with the later waivers on H.I.V. drugs.

“At the time, it rattled a lot of people, like ‘How could you do that? It’s going to destroy the pharmaceutical industry,’” recalled Dr. Anthony S. Fauci, President Biden’s chief medical adviser for the pandemic. “It didn’t destroy them at all. They continue to make billions of dollars.”

Leaders in the wealthiest Western nations have endorsed more equitable distribution of vaccines for this latest scourge. But the imperative to ensure ample supplies for their own nations has won out as the virus killed hundreds of thousands of their own people, devastated economies, and sowed despair.

The drug companies have also promised more support for poorer nations. AstraZeneca’s vaccine has been the primary supply for Covax, and the company says it has sold its doses at a nonprofit price.

stumbled, falling short of production targets. And producing the new class of mRNA vaccines, like those from Pfizer-BioNTech and Moderna, is complicated.

Where pharmaceutical companies have struck deals with partners, the pace of production has frequently disappointed.

“Even with voluntary licensing and technology transfer, it’s not easy to make complex vaccines,” said Dr. Krishna Udayakumar, director of the Duke Global Health Innovation Center.

Much of the global capacity for vaccine manufacturing is already being used to produce other lifesaving inoculations, he added.

But other health experts accuse major pharmaceutical companies of exaggerating the manufacturing challenges to protect their monopoly power, and implying that developing countries lack the acumen to master sophisticated techniques is “an offensive and a racist notion,” said Matthew Kavanagh, director of the Global Health Policy and Politics Initiative at Georgetown University.

With no clear path forward, Ms. Okonjo-Iweala, the W.T.O. director-general, expressed hope that the Indian and South African patent-waiver proposal can be a starting point for dialogue.

“I believe we can come to a pragmatic outcome,” she said. “The disparity is just too much.”

Peter S. Goodman reported from London, Apoorva Mandavilli from New York, Rebecca Robbins from Bellingham, Wash., and Matina Stevis-Gridneff from Brussels. Noah Weiland contributed reporting from New York.

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As Congress Dithers, States Step In to Set Rules for the Internet

Critics of the state regulations warned that tech companies weren’t the only ones that would have to maneuver through the patchwork of rules. “For consumers, this means confusion,” said Daniel Castro, a vice president of the Information Technology & Innovation Foundation, a think tank sponsored by tech companies.

Apple and Google declined to comment. Jodi Seth, a spokeswoman for Amazon, pointed to an April blog post from the company’s policy executive Brian Huseman, who said the state laws risked creating a hodgepodge of regulations that wouldn’t serve users well.

Will Castleberry, Facebook’s vice president of state and local public policy, said that instead, the social network largely backed more federal legislation. “While we support state efforts to address specific challenges,” he said in a statement, “there are some issues, like privacy, where it’s time for updated federal rules for the internet — and those need to come from Congress.”

To fight against the splintering rules, the tech companies have gone on the offensive. While data on state lobbying is inconsistent and often underreported, Google, Amazon and Facebook funneled a combined $5 million into those efforts in 2019, according to the National Institute on Money in Politics, a nonprofit. The companies also increased their lobbying ranks to dozens in state legislatures compared with skeletal forces five years ago.

Some of the companies have also recently sent top engineers to kill state proposals. In February, Apple’s chief privacy engineer, Erik Neuenschwander, testified in a North Dakota Senate hearing to oppose a bill that would let app developers use their own payment systems and bypass Apple’s App Store rules. The bill died a week later in a 36-to-11 vote.

Even so, states have barreled forward.

Maryland lawmakers in February overrode their governor’s veto of a new tax on sites like Facebook and Google. The tax, the first aimed at the business of behavioral advertising, takes a cut of the money that the companies make from the sale of ads shown in Maryland. One analysis projected that it would raise up to $250 million in its first year, a fraction of Facebook and Google’s combined $267 billion in annual revenue, but a real threat if replicated across states.

Trade groups for Google, Amazon and Facebook tried to stop the tax. They hired a well-connected political consultant to argue that it would hurt small businesses. When that failed, the trade groups sued to block it. The litigation is pending.

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What New Mask Rules Mean for Businesses

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C.D.C. surprised health experts, political leaders and others yesterday when it announced that vaccinated people could go maskless in most places, including indoors. The agency’s advice doesn’t override local and state rules, though at least seven states adopted its mask guidelines. Others, like New York, said they would study the new guidance before deciding whether to adopt it. That puts businesses in a tricky spot.

Companies with frontline workers aren’t sure what to do. Retailers like Macy’s and the Gap said they were reviewing the new guidance, while Home Depot has not changed its rules requiring customers and workers to wear masks in its stores. Airlines and other transportation companies didn’t need to react, because federal guidelines still require masks for their industry.

sharp turnabout, Douglas Brayley, an employment lawyer at Ropes & Gray, told DealBook. Companies need to abide by local guidelines, but the change in federal guidance raises questions. How do large companies establish a common policy when local public health agencies may not agree? How to handle employees who are still uncertain about safety when protocols shift? How will companies find out whether employees are vaccinated, and thus determine if they need to wear a mask?

And what about the Yankees? Eight fully vaccinated members of the baseball team tested positive for the virus. Some may interpret it as a lesson for businesses when workplaces loosen their protocols for things like masking, even if a majority of employees are vaccinated. “For a little bit there, we were getting pretty comfortable, because that’s what the rules called for. Now, we’ll tighten it back up and hopefully everyone stays safe,” the Yankees pitcher Jameson Taillon told The Times. Others argue that the Yankees’ frequent testing makes asymptomatic cases more likely to be caught, and given that only one of the eight has shown symptoms, it’s a sign that the vaccines are effective.

What are the rules where you are? See reopening plans and mask mandates for all 50 states.

Colonial Pipeline paid a $5 million ransom to hackers. The payment, made in Bitcoin, came shortly after the company shut down its network — and, as a result, the pipeline that supplies almost half of the East Coast’s fuel — in response to a ransomware attack. In other hacking news, Ireland’s health system operator shut down today because of a ransomware attack, and a unit of Toshiba said that it had been targeted by DarkSide, the group blamed for the Colonial infiltration.

increase pay at its 650 company-owned restaurants to an average of $13 per hour. But about 95 percent of McDonald’s restaurants in the U.S. are independently owned and will not be affected by the move.

A major teachers’ union called for schools to reopen. Randi Weingarten, president of the American Federation of Teachers, which has 1.7 million members, said of the next academic year, “There is no doubt: Schools must be open. In person. Five days a week.” Teachers’ unions have sought strict virus mitigation measures that some say have slowed reopening timelines.

Delta will require new hires to be vaccinated, making it one of the first major corporations to enact such a provision. The airline’s C.E.O., Ed Bastian, told CNN that the requirement wouldn’t extend to current employees, but he said that he expected up to 80 percent to get shots.

DoorDash tripled its revenue in the first quarter. Demand for food delivery does not seem to be dropping as restaurants reopen dining rooms. “The negative impact that we were expecting in consumer behavior was smaller than we were anticipating,” the company’s C.F.O., Prabir Adarkar, told The Wall Street Journal.

The crypto exchange Coinbase yesterday held its first earnings call since going public. Its bumper profit for the first quarter largely matched expectations set in its filings ahead of its I.P.O. last month, so the numbers didn’t raise many pressing questions from investors, who were able to submit queries online and vote for their favorites to put to management.

based on a meme, was, inevitably, the most popular and so it was asked first. “We plan to list Doge in six to eight weeks,” said Coinbase’s C.E.O., Brian Armstrong, noting that the company was looking to expand its assets and aimed to list new products faster.

met with regulators in Washington, Armstrong said, providing no specifics.

Armstrong loves an internet reference. The company’s co-founder referred to this period in the crypto industry as similar to the internet’s infancy at least three times and at one point likened Coinbase to Google. The exchange welcomes competition, he said, just as “in the early days of the internet, Google wanted more websites out there.” But Coinbase isn’t looking to compete with rivals on fees, so if users had dreams of trading for free, as on the Robinhood app, they were dashed. “We do not believe in fee-less crypto trading,” Haas said.


digs into the Gates family fortune, estimated to be worth at least $124 billion, which includes a stake in the Four Seasons hotel chain, huge tracts of farmland, a beachfront mansion in Southern California and one of Leonardo da Vinci’s notebooks.


Some of the academic research that caught our eye this week, summarized in one sentence:


poison pills, shareholder primacy and the purpose of companies, are now available in a digital archive.

The back story: Leo Strine, former chief justice of the Delaware Supreme Court and now at Wachtell, Lipton, Rosen & Katz, helped create the archive. “It has taken several years to do the coding of the memos, to draft a narrative that situates ML’s work in historical context, and that also, critically, provides links to the key cases, regulatory developments and scholars and advocates involved in the policy debates in which ML participated,” Strine said in an email. He worked on it with teams at Wachtell and Penn Law, where he teaches. An in-depth essay that serves as a guide to the archive, “Lipton and His Impact,” is the place to start.

Here are two of our favorite letters. One comes from the 1980s takeover era, when junk bonds drove Wall Street and the poison pill was invented by Lipton in response, and the other from more recently, 2018, in which Lipton frames his early thinking on anti-takeover measures in the context of focusing on all stakeholders, not just shareholders:

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Best of the rest

We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com.

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He’s a Dogecoin Millionaire. And He’s Not Selling.

Last February, when Glauber Contessoto decided to invest his life savings in Dogecoin, his friends had concerns.

“They were all like, you’re crazy,” he said. “It’s a joke coin. It’s a meme. It’s going to crash.”

Their skepticism was warranted. After all, Dogecoin is a joke — a digital currency started in 2013 by a pair of programmers who decided to spoof the cryptocurrency craze by creating their own virtual money based on a meme about Doge, a talking Shiba Inu puppy. And investing money in obscure cryptocurrencies has, historically, been akin to tossing it onto a bonfire.

But Mr. Contessoto, 33, who works at a Los Angeles hip-hop media company, is no ordinary buy-and-hold investor. He is among the many thrill-seeking amateurs who have leapt headfirst into the markets in recent months, using stock-trading apps like Robinhood to chase outsize gains on risky, speculative bets.

In February, after reading a Reddit thread about Dogecoin’s potential, Mr. Contessoto decided to go all in. He maxed out his credit cards, borrowed money using Robinhood’s margin trading feature and spent everything he had on the digital currency — investing about $250,000 in all. Then, he watched his phone obsessively as Dogecoin became an internet phenomenon whose value eclipsed that of blue-chip companies like Twitter and General Motors.

disavowed the coin, and even Mr. Musk has warned investors not to over-speculate in cryptocurrency. (Mr. Musk recently sent the crypto markets into upheaval again, after he announced that Tesla would no longer accept Bitcoin.)

What explains Dogecoin’s durability, then?

There’s no doubt that Dogecoin mania, like GameStop mania before it, is at least partly attributable to some combination of pandemic-era boredom and the eternal appeal of get-rich-quick schemes.

But there may be more structural forces at work. Over the past few years, soaring housing costs, record student loan debt and historically low interest rates have made it harder for some young people to imagine achieving financial stability by slowly working their way up the career ladder and saving money paycheck by paycheck, the way their parents did.

Instead of ladders, these people are looking for trampolines — risky, volatile investments that could either result in a life-changing windfall or send them right back to where they started.

posted a screenshot of his cryptocurrency trading app, showing that he’d bought more. And on Thursday, when the value of his Dogecoin holdings fell to $1.5 million, roughly half what it was at the peak, he posted another screenshot of his account on Reddit.

“If I can hodl, you can HODL!” the caption read.

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The Gateses’ Public Split Spotlights a Secretive Fortune

The fortune of Bill Gates and Melinda French Gates exceeds the size of Morocco’s annual economy, combines the value of Ford, Twitter and Marriott International and is triple the endowment of Harvard. While few know how their wealth will be divided in the divorce, one thing is clear: breaking it up can’t be easy.

Mr. Gates built one of the great fortunes in human history when he founded Microsoft in 1975 with Paul Allen. The Gateses’ net worth is estimated to be more than $124 billion, and includes assets as varied as trophy real estate, public company stocks and rare artifacts.

There’s a big stake in the luxury Four Seasons hotel chain. There are hundreds of thousands of acres of farmland and ranch land, including Buffalo Bill’s historic Wyoming ranch. There are billions of dollars’ worth of shares in companies like AutoNation and Waste Management. There’s a beachfront mansion in Southern California. And one of Leonardo da Vinci’s notebooks.

“The amount of money and the diversity of assets that are involved in this divorce boggles the imagination,” said David Aronson, a lawyer who has represented wealthy clients in divorce cases. “There have rarely been cases that are even close to this in size.”

2019 divorce between the Amazon founder Jeff Bezos and his now ex-wife, the novelist and philanthropist MacKenzie Scott, was bigger. Mr. Bezos had an estimated fortune of $137 billion, though mostly in Amazon stock, and Ms. Scott kept 4 percent of Amazon’s shares, worth $36 billion at the time.

But Mr. Gates has for decades been diversifying his holdings; he owns just 1.3 percent of Microsoft. Instead, his stock portfolio includes stakes in dozens of publicly traded companies. He is the largest private owner of farmland in the country, according to The Land Report. In addition to the Four Seasons, he has stakes in other luxury hotels and a company that caters to private jet owners. His real estate portfolio includes one of the largest houses in the country and several equestrian facilities. He owns stakes in a clean energy investment fund and a nuclear energy start-up.

Forbes, or $146 billion, according to the research firm Wealth-X. Including the Gates Foundation’s endowment and the Gates personal fortune, Cascade most likely oversees assets that put it on par or beyond some of the world’s biggest hedge funds in size.

Mr. Larson operates Cascade with an obsessive level of secrecy, going to great lengths to cloak the firm’s transactions so that they can’t easily be traced back to the Gateses. In a 1999 interview with Fortune magazine, Mr. Larson said he chose the name “Cascade” because it was a generic-sounding name in the Pacific Northwest.

that questions about the future of the Gates Foundation immediately arose following news of the divorce. The foundation directs billions to 135 countries to help fight poverty and disease. As of 2019, it had given away nearly $55 billion. (In 2006, Mr. Buffett pledged $31 billion of his fortune to the Gates Foundation, greatly increasing its grant making.)

Since he stepped down from day-to-day operations at Microsoft in 2008, Mr. Gates has devoted much of his time to the foundation. He also runs Gates Ventures, a firm that invests in companies working on climate change and other issues. Over the decades, Mr. Gates shed the image of a ruthless tech executive battling the United States government on antitrust to be viewed as a global do-gooder. And he appears to be keenly aware of the stark contrast between the scale of his wealth and his role as a philanthropist. “I’ve been disproportionately rewarded for the work I’ve done — while many others who work just as hard struggle to get by,” he acknowledged in a year-end blog post from 2019.

told The New York Times last year. “There’s just none.”

Matthew Goldstein contributed reporting.

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Covid Pandemic Demands Air Quality Changes in the Workplace, Researchers Say

Clean water in 1842, food safety in 1906, a ban on lead-based paint in 1971. These sweeping public health reforms transformed not just our environment but expectations for what governments can do.

Now it’s time to do the same for indoor air quality, according to a group of 39 scientists. In a manifesto of sorts published on Thursday in the journal Science, the researchers called for a “paradigm shift” in how citizens and government officials think about the quality of the air we breathe indoors.

The timing of the scientists’ call to action coincides with the nation’s large-scale reopening as coronavirus cases steeply decline: Americans are anxiously facing a return to offices, schools, restaurants and theaters — exactly the type of crowded indoor spaces in which the coronavirus is thought to thrive.

There is little doubt now that the coronavirus can linger in the air indoors, floating far beyond the recommended six feet of distance, the experts declared. The accumulating research puts the onus on policymakers and building engineers to provide clean air in public buildings and to minimize the risk of respiratory infections, they said.

new workplace standards for air quality, but the scientists maintained that the remedies do not have to be onerous. Air quality in buildings can be improved with a few simple fixes, they said: adding filters to existing ventilation systems, using portable air cleaners and ultraviolet lights — or even just opening the windows where possible.

Dr. Morawska led a group of 239 scientists who last year called on the World Health Organization to acknowledge that the coronavirus can spread in tiny droplets, or aerosols, that drift through the air. The W.H.O. had insisted that the virus spreads only in larger, heavier droplets and by touching contaminated surfaces, contradicting its own 2014 rule to assume all new viruses are airborne.

The W.H.O. conceded on July 9 that transmission of the virus by aerosols could be responsible for “outbreaks of Covid-19 reported in some closed settings, such as restaurants, nightclubs, places of worship or places of work where people may be shouting, talking or singing,” but only at short range.

detailed 10 lines of evidence that support the importance of airborne transmission indoors.

On April 30, the W.H.O. inched forward and allowed that in poorly ventilated spaces, aerosols “may remain suspended in the air or travel farther than 1 meter (long-range).” The Centers for Disease Control and Prevention, which had also been slow to update its guidelines, recognized last week that the virus can be inhaled indoors, even when a person is more than six feet away from an infected individual.

“They have ended up in a much better, more scientifically defensible place,” said Linsey Marr, an expert in airborne viruses at Virginia Tech, and a signatory to the letter.

“It would be helpful if they were to undertake a public service messaging campaign to publicize this change more broadly,” especially in parts of the world where the virus is surging, she said. For example, in some East Asian countries, stacked toilet systems could transport the virus between floors of a multistory building, she noted.

More research is also needed on how the virus moves indoors. Researchers at the Department of Energy’s Pacific Northwest National Laboratory modeled the flow of aerosol-size particles after a person has had a five-minute coughing bout in one room of a three-room office with a central ventilation system. Clean outdoor air and air filters both cut down the flow of particles in that room, the scientists reported in April.

But rapid air exchanges — more than 12 in an hour — can propel particles into connected rooms, much as secondhand smoke can waft into lower levels or nearby rooms.

guidance for Covid does not require improvements to ventilation, except for health care settings.

“Ventilation is really built into the approach that OSHA takes to all airborne hazards,” said Peg Seminario, who served as director of occupational safety and health for the A.F.L.-C.I.O. from 1990 until her retirement in 2019. “With Covid being recognized as an airborne hazard, those approaches should apply.”

In January, President Biden directed OSHA to issue emergency temporary guidelines for Covid by March 15. But OSHA missed the deadline: Its draft is reportedly being reviewed by the White House’s regulatory office.

only during medical procedures known to produce aerosols, or if they have close contact with an infected patient. Those are the same guidelines the W.H.O. and the C.D.C. offered early in the pandemic. Face masks and plexiglass barriers would protect the rest, the association said in March in a statement to the House Committee on Education and Labor.

“They’re still stuck in the old paradigm, they have not accepted the fact that talking and coughing often generate more aerosols than do these so-called aerosol-generating procedures,” Dr. Marr said of the hospital group.

increase the risk, perhaps because they inhibit proper airflow in a room.

The improvements do not have to be expensive: In-room air filters are reasonably priced at less than 50 cents per square foot, although a shortage of supply has raised prices, said William Bahnfleth, professor of architectural engineering at Penn State University, and head of the Epidemic Task Force at Ashrae (the American Society of Heating, Refrigerating and Air-Conditioning Engineers), which sets standards for such devices. UV lights that are incorporated into a building’s ventilation system can cost up to roughly $1 per square foot; those installed room by room perform better but could be 10 times as expensive, he said.

If OSHA rules do change, demand could inspire innovation and slash prices. There is precedent to believe that may happen, according to David Michaels, a professor at George Washington University who served as OSHA director under President Barack Obama.

When OSHA moved to control exposure to a carcinogen called vinyl chloride, the building block of vinyl, the plastics industry warned it would threaten 2.1 million jobs. In fact, within months, companies “actually saved money and not a single job was lost,” Dr. Michaels recalled.

In any case, absent employees and health care costs can prove to be more costly than updates to ventilation systems, the experts said. Better ventilation will help thwart not just the coronavirus, but other respiratory viruses that cause influenza and common colds, as well as pollutants.

Before people realized the importance of clean water, cholera and other waterborne pathogens claimed millions of lives worldwide every year.

“We live with colds and flus and just accept them as a way of life,” Dr. Marr said. “Maybe we don’t really have to.”

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Covid Live Updates: U.S. Vaccine Rollout for Children 12-15 Starts

mental health emergencies among children during the pandemic.

“This is your ticket out of that problem,” he said.

Still, many parents remain hesitant to put their children on the frontline of a vaccine that they view as experimental. And unlike in previous phases of the vaccine rollout, there were few reports of crowds and long lines during the first hours of eligibility on Thursday, when many children were in school.

In New York City, Julian Boyce, 14, was among a scattering of teenagers who showed up to be vaccinated first thing Thursday morning at Harlem Hospital Center. His family has known as many as 20 people who have died of Covid-19, his father said, and Julian has spent much of the last year indoors, keeping up with school work and playing video games.

Julian, an eighth grader at The Cathedral School, asked a nurse to administer his shot in his left arm, so any soreness wouldn’t affect his writing. Then he turned his attention to his cell phone.

“I just got my vaccine,” he texted his friends.

Mayor Bill de Blasio encouraged parents to have their children vaccinated to protect their families. “Parents, let’s get our zoomers off of Zoom and back to life as normal,” he said Thursday morning.

Amanda Rosa contributed reporting.

A vaccination center in New Delhi on Thursday. A government panel has again recommended widening the gap between the first and second doses of the Oxford-AstraZeneca shots.
Credit…Prakash Singh/Agence France-Presse — Getty Images

With new infections now engulfing rural regions across India even as the daily death toll in crowded cities remains staggeringly high, regional leaders across the country are engaged in a desperate struggle to secure vaccines and stretch the doses they have on hand.

The states of Maharashtra and Karnataka, where case numbers are surging, have suspended vaccination altogether for people under 45 so that older people can receive second doses.

And a government panel on Thursday recommended widening the gap — for the third time since March — between the first and second doses of the Oxford-AstraZeneca vaccine, also known as Covishield in India.

Prime Minister Narendra Modi of India is facing increasing pressure to quickly expand the scope of the country’s fledging Covid-19 vaccination campaign as major cities run out of doses.

Some states and cities have started floating their own global tenders to import vaccines.

In a rare show of unity, a dozen opposition parties called for free, universal vaccination in a letter that said the pandemic had “assumed unprecedented dimensions of a human catastrophe.”

The parties also said that Mr. Modi’s government should invoke an order temporarily suspending patent protections for vaccines — a proposal India and South Africa jointly made for all virus vaccines globally that is under consideration by the World Trade Organization. In India, the order would allow more factories to make Covaxin, the indigenous vaccine codeveloped by the Indian government’s top scientific research body and the Hyderabad-based company Bharat Biotech.

Covaxin is in such short supply that the capital, New Delhi, has had to shutter about 100 vaccination centers. All of the doses produced by the Serum Institute of India, which is producing the Oxford-AstraZeneca shots and is the world’s largest vaccine maker, are staying in India, but still falling far short of the requirements for a population of nearly 1.4 billion people.

The ad hoc approach could also further fuel the skepticism and hesitancy that greeted the rollout of shots this winter. Leaders of Mr. Modi’s Bharatiya Janata Party claimed that the virus had been all but defeated in India, possibly tempering interest in a vaccine.

Jairam Ramesh, leader of the opposition Indian National Congress party, questioned the validity of widening the intervals between doses.

“Is this because there are not enough stocks of the vaccines for all who are eligible or because professional scientific advice says so?” Mr. Ramesh wrote on Twitter.

India reported about 362,000 cases on Wednesday, with infection numbers appearing to level off in Delhi and in the financial capital, Mumbai, but picking up in the southern city of Bengaluru and across rural India.

Less than 3 percent of the population has been fully vaccinated.

Lockdown restrictions are in place in many parts of India, but on Thursday, when Muslims celebrated Eid al-Fitr, the end of the fasting month of Ramadan, people were seen crowding markets.

The Pfizer-BioNTech and Moderna coronavirus vaccines are safe and effective during pregnancy, according to preliminary results from two continuing studies.

Both vaccines produce robust immune responses in pregnant and lactating women, and are likely to provide at least some protection against two dangerous coronavirus variants, B.1.1.7 and B.1.351, according to a study published in JAMA on Thursday. Vaccinated women can also pass protective antibodies to their fetuses through the bloodstream and to their infants through breast milk, the research suggests.

In a second study, published in the journal Obstetrics & Gynecology on Tuesday, researchers found no evidence that either the Pfizer or Moderna vaccines damaged the placenta during pregnancy.

Covid presents serious risks during pregnancy. Research has shown that pregnant women with coronavirus symptoms are more likely to be admitted to the intensive care unit, to require mechanical ventilation and to die from the virus than are symptomatic women of a similar age who are not pregnant.

Because of these risks, the Centers for Disease Control and Prevention has recommended that the vaccines at least be made available to pregnant people, many of whom have opted to receive the shots.

“We can shift our framework from, ‘Let’s protect pregnant people from the vaccine,’ to ‘Let’s protect pregnant people and their infants through the vaccine,’” said Dr. Emily S. Miller, an expert in maternal-fetal medicine at Northwestern University and co-author of the placenta study. “I think that’s really powerful.”

A teacher receiving a vaccine in January in Redmond, Ore. On Tuesday, Gov. Kate Brown of Oregon joined a handful of other states in setting a vaccination benchmark for lifting restrictions.
Credit…Ryan Brennecke/The Bulletin, via Associated Press

While some states are offering residents incentives like savings bonds or sports tickets to encourage them to be vaccinated, a few are making a very different pitch: The sooner you get a shot, the sooner the state will fully reopen.

The latest is Oregon, where the governor said on Tuesday that the state’s remaining restrictions would stay in place until at least 70 percent of eligible residents 16 and older had had at least one shot.

“We still have some work to do to reach our 70 percent goal, but I am confident we can get there in June and return Oregon to a sense of normalcy,” said Gov. Kate Brown, a Democrat.

Oregon, where 49 percent of residents have had at least one dose, is one of the few states that is explicitly tying lifting its indoor mask requirement to the adult vaccination rate. Michigan, Minnesota and Pennsylvania also are awaiting the 70 percent threshold before moving forward with reopening plans.

In Michigan, capacity limits for businesses will lift two weeks after 65 percent of eligible residents have been vaccinated, and the gatherings and face mask orders will end two weeks after 70 percent of eligible residents have been fully vaccinated, Gov. Gretchen Whitmer said. Thirty-seven percent of residents there have been immunized in the state, which has shown one of the country’s steepest drops in cases over the past two weeks. The average number of new infections reported daily during that time sank 45 percent and hospitalizations were down 32 percent.

Pennsylvania is waiting for 70 percents of adults to be fully vaccinated before lifting its mask mandate. Only 37 percent have been immunized in Pennsylvania.

The mask requirement in Minnesota will be lifted once 70 percent of residents 16 and older have received at least one dose of a Covid-19 vaccine, but no later than July 1, Gov. Tim Walz said. Half of Minnesotans have had at least one dose.

On Wednesday, Maryland said that every business would be allowed to open, starting on Saturday, at 100 percent capacity, but that the indoor mask requirement would be in place until 70 percent of adults had received one dose. So far, only 52 percent have met that guideline.

“Those who are not vaccinated continue to slow our health and economic recovery efforts, and they also continue to be at risk for infection, hospitalization and death,” Gov. Larry Hogan said on Wednesday.

In New Jersey, Gov. Phil Murphy said on Wednesday that he would be signing an executive order that would put into effect what he called “our most aggressive reopening play” to date. As was announced last week, on Wednesday, May 19, many restrictions on public gatherings will be dropped although social distancing measures will be in effect. In New Jersey, 42 percent of adults are fully vaccinated and 55 percent have received one shot.

And in New Mexico, the state will remove most restrictions once 60 percent of residents have been fully vaccinated. Forty-two percent of people have been inoculated there.

But these statewide vaccination targets are well below what experts now calculate the herd immunity threshold to be: at least 80 percent.

President Biden has called for 70 percent of adults to have at least one dose by July 4. Jeffrey Zients, Mr. Biden’s Covid response coordinator, said that the goal should be to achieve some sense of normality by hitting that target. Reaching 70 percent will create “a pattern of decreasing cases, hospitalizations and deaths and take us down to a sustainable low level,” he said this week.

Inmates last week at a field hospital for Covid patients set up at a prison in Bangkok.
Credit…Department of Corrections, via Associated Press

A variant of the coronavirus is sweeping through Thailand’s prisons, the country’s chief prison doctor said on Thursday, as the government acknowledged that nearly 3,000 inmates had been found to be infected.

The chief prison doctor, Weerakit Harnpariphan, deputy director general of Thailand’s Department of Corrections, did not identify the variant that had been detected. But protective measures that were effective in the prisons last year, he said, are not working well now.

“The spread this time is something very worrying,” he said. “The transmissibility of this variant, as it is known, is very quick. It spread in a short period of time.”

There are two variants of concern spreading in the region: the first, detected last fall in Britain, is now the main driver of the pandemic in countries around the world.

Health officials in Thailand said it was now widespread in the country and was partly responsible for the recent surge in cases.

But there is growing concern about the spread of a variant first reported in India, which the World Health Organization said may be even more contagious.

Scientists still don’t know much about that variant, but they are worried that it might be helping to fuel the rise in India’s coronavirus infections and could now be driving up cases in neighboring countries.

Called B.1.617, the variant has been detected in Thailand only in one family that had been quarantined after arriving from Pakistan, health officials said.

On Thursday, Thailand reported a daily record of 4,887 cases, which reflects the inclusion of 2,835 prison cases that had not been counted previously in the national total. Thailand has averaged about 2,000 new cases a day for the past three weeks.

The prison outbreak came to light on Wednesday after a leader of Thailand’s pro-democracy movement, Panusaya Sithijirawattanakul, 22, was released on bail and reported in a Facebook post that she had contracted the coronavirus. She said that more than 50 women had also come down with the virus at the prison where she had been held for nearly two months.

Justice Minister Somsak Thepsuthin said that the coronavirus was under control in the prisons but acknowledged that too few prisoners were being tested until this week.

In response to the virus, he said, the prison population has been reduced from 390,000 prisoners to less than 310,000 by granting amnesty to some and releasing others to be monitored with ankle bracelets.

Human Rights Watch called on Thailand to ensure that prisoners had adequate protective measures and health care. Nearly 20 percent of the country’s inmates are being held while they await trial, the group said, including other members of the pro-democracy movement who are accused of insulting the monarchy.

Thailand is facing its biggest surge in cases since the start of the pandemic and has imposed a partial lockdown on the hardest-hit parts of the country, including Bangkok.

The country reported only 6,884 cases and 61 deaths for all of last year. But the numbers have soared this year to a total of 93,794 cases and 518 deaths as of Thursday, with most of them coming in the past three weeks.

Enjoying the sun in Athens on Saturday. Tourism accounts for a fifth of Greece’s work force and around 20 percent of gross domestic product.
Credit…Costas Baltas/Reuters

As the vaccination campaign in Greece rapidly expands to reach hundreds of thousands of residents across dozens of islands dotting the Aegean Sea, the country planned to throw open its doors on Friday to more foreign visitors, including those have been vaccinated, have proof of previous infection or can provide a negative coronavirus test result.

With tourism accounting for a fifth of the country’s work force and around 20 percent of gross domestic product, the loosening of restrictions is an economic priority.

The move comes as the country gradually eases domestic restrictions.

Cafes and bars opened last week after a six-month shuttering, and primary and junior high schools reopened this week.

On Friday, residents will no longer have to complete a form or notify the authorities via text message to leave the house for work, shopping, visits to doctors or physical exercise, among other reasons.

Museums are scheduled to reopen, and the 11 p.m. curfew will be pushed back to 12.30 a.m.

Although the rate of daily coronavirus infections in Greece has stabilized in recent weeks, deaths and hospitalizations remain relatively high.

The U.S. State Department is currently warning against travel to Greece, and similar advice is in place in many other countries.

Greece’s vaccination drive has been slow compared with other European Union countries, but it has stepped up in recent weeks.

About 1.3 million people in the nation of 10 million have been fully vaccinated, and 2.6 million have received one of their two shots, according to the authorities.

Prime Minister Kyriakos Mitsotakis on Tuesday heralded a plan to vaccinate the permanent residents of the country’s islands by the end of June.

In a teleconference call with the mayors of several Greek islands, Mr. Mitsotakis called the campaign Operation Blue Freedom — a variation of the name of the national inoculation drive, Operation Freedom.

The residents of 32 small islands have been fully vaccinated, and a drive to inoculate those on another 36 islands with up to 10,000 residents is on course to be complete by the end of May.

The next stage aims to vaccinate more than 700,000 residents of 19 larger islands, including the popular vacation destinations of Corfu, Mykonos, Rhodes, Santorini and Zakynthos, by the end of June.

That drive is to begin later this month, using the first large delivery of the one-dose Johnson & Johnson vaccine. Mr. Mitsotakis appealed to the mayors to encourage islanders to get the shots as part of broader efforts to build Greece’s first “mass wall of immunity.”

The Bran Castle in Romania.
Credit…Octav Ganea/Inquam Photo, via Reuters

The needles at Bran Castle in the Transylvania region of Romania won’t be drawing blood — instead, they’ll be administering a dose of the Pfizer-BioNTech vaccine.

Vaccines will be available every weekend in May without an appointment at the castle, which says it is “the only castle in all of Transylvania” that fits the description of Dracula’s castle in the novel about the vampire.

People who get vaccines there will get “free access to the exhibition with medieval torture tools,” the castle said on its Facebook page. But venturing to the castle for the shots and scares wouldn’t be wise for international travelers, as the vaccines are available at the castle only to residents of Romania, Bran Castle’s marketing manager, Alexandru Priscu, told The Associated Press.

Amid concerns in Romania that demand for vaccines is slowing, Mr. Priscu said, “we wanted to show people a different way to get the needle.”

More than 19 percent of people in Romania have received at least one dose of a Covid-19 vaccine, according to the Our World in Data project at the University of Oxford. New daily coronavirus cases there have dropped significantly — around 1,200 each day on average — since spikes in November and March.

The castle joins the many weird and occasionally beautiful places around the world that are doubling as vaccine spots, some for convenience and some hoping to entice people by the location. They include Poet’s Corner at Westminster Abbey, the American Museum of Natural History, on the sand in Miami Beach and a ski resort in Colorado.

A coworking space in London last month run by WeWork. Sandeep Mathrani, the company’s chief executive drew Twitter fire when he said on Wednesday that employees who work from home are the “least engaged.” 
Credit…Tolga Akmen/Agence France-Presse — Getty Images

If you’ve enjoyed working from home during the pandemic — no commute, cooking lunch in your own kitchen or being around family more often — the chief executive of WeWork has some thoughts about you.

“Those who are least engaged are very comfortable working from home,” Sandeep Mathrani, the C.E.O. of WeWork said at a Wall Street Journal event on Wednesday. “Those who are überly engaged with the company want to go to the office two-thirds of the time, at least.”

“People are happier when they come to work,” he added. The company is betting on people wanting to — or being required to — work outside of their homes once it is safe to do so widely.

His comments were not received well by many online as many companies and employees consider the post-Covid-19 workplace after more than a year of doing their jobs from home.

“I wonder why the C.E.O. of a company that rents office space would say this,” wrote one Twitter user.

Others noted that working from home has benefited parents and has improved some workers’ mental health.

Ann Johnson, a corporate vice president at Microsoft, wrote: “If the only way you can keep your employees engaged is by being in the office with them, you have a leadership issue — not an employee engagement issue.”

Google said this month that it would relax its remote work protocols and that it expected 20 percent of its employees to work remotely after its offices reopen. The tech giant had previously been one of the industry’s holdouts on flexible remote work, and Insider reported that some employees had threatened to quit if they couldn’t keep working from home.

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Elon Musk’s Sudden Swerve on Bitcoin

Elon Musk has been a big cryptocurrency booster of late, even directing Tesla to buy $1.5 billion in Bitcoin for its corporate treasury earlier this year. Yesterday, he abruptly reversed course, tweeting that Tesla would stop accepting Bitcoin as payment for cars, citing environmental reasons. “We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” he said.

Bitcoin’s price promptly plunged by more than 10 percent. Tesla said it would begin accepting the cryptocurrency a few months ago, when it also revealed a billion-dollar Bitcoin buy, pushing the price up by more than 10 percent. Bitcoin seems remarkably sensitive to the billionaire’s tweets, and “if one person can dramatically alter spending power, the ‘stable store of value’ criteria of a currency is not met,” Paul Donovan of UBS wrote in a note to clients today.

Bitcoin’s climate problem is hardly a secret. So what gives?

  • Why now? Tesla only started accepting Bitcoin for car purchases in the U.S. in March. Just over two weeks ago, Zach Kirkhorn, Tesla’s C.F.O., told investors that “it is our intent to hold what we have long term and continue to accumulate Bitcoin from transactions from our customers as they purchase vehicles.” He described the rationale for buying and accepting Bitcoin as, simply, “Elon and I were looking for a place to store cash that wasn’t being immediately used, trying to get some level of return.”

  • What changed about Tesla’s understanding of energy issues? An entry-level Tesla is worth about 1 Bitcoin, so the company’s $1.5 billion Bitcoin purchase in February far surpasses the amount of crypto it would collect from car sales for a very long time. That raises questions about the vetting and approval process for that investment, which may worry E.S.G. investors, who otherwise look favorably at an electric vehicle company. Did Musk not know about Bitcoin’s environmental impact until now? Who advised him on it? Did climate factor into the board’s approval process?

  • How does Musk justify the environmental impact of his other companies? SpaceX’s rockets are massive carbon emitters. The Boring Company, his tunnel drilling endeavor, has also faced criticism about its environmental impact.

  • Did Tesla or Musk sell Bitcoin before the announcement? Musk’s statement said that “Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy.” We’ll see whether it made any recent trades when it reports second-quarter results in July. Given the impact Musk’s tweet had on Bitcoin’s price, any action just before or after will be scrutinized.

  • Did regulation play a role in the reversal? The return policy for cars bought with Bitcoin worked in Tesla’s favor, stipulating that buyers get back Bitcoin if it’s worth less than the equivalent dollar value at purchase but get back dollars if Bitcoin is worth more. That raises many issues, including accounting risks and worries about warranties and other consumer protection laws.

Musk can be an unreliable narrator. On Tuesday, he asked his followers on Twitter if Tesla should accept Dogecoin, the jokey cryptocurrency. (Most said yes.) On Sunday, he announced that SpaceX had taken Dogecoin as payment for shuttling a satellite to the moon. And as host of “Saturday Night Live,” he said that cryptocurrency was both “the future of currency” and “a hustle.”

around $1 billion in so-called meme coins to a Covid relief fund in India.

The Colonial Pipeline resumes operations. The pipeline, which supplies the East Coast with nearly half its transportation fuel, took the first step in restarting after a ransomware attack as panicked consumers rushed to buy gasoline. Normal conditions won’t return for several days.

The C.D.C. approves the Pfizer-BioNTech vaccine for 12- to 15-year-olds. The move is meant to accelerate school reopenings. Meanwhile, Ohio is creating a lottery with $1 million prizes to encourage residents to get vaccinated, and seven New York Yankees — all fully vaccinated — have been quarantined after testing positive.

Opposition to pandemic unemployment benefits grows. At least 11 Republican-led states plan to end the $300 weekly checks as early as June, amid debate over whether they are contributing to labor shortages. Senator Joe Manchin, Democrat of West Virginia, said he won’t vote to extend them when their authorization expires in September.

amassed a 6 percent stake in the chain, praising its performance during the pandemic and its delivery capabilities. He also hinted that his $5 billion SPAC was working on a complex deal for a well-known company.

Coinbase faces its first test as a publicly traded company. The cryptocurrency exchange will report its first earnings since going public after markets close today. Analysts expect a strong set of numbers, though they’re closely watching for the impact of increased competition.

U.S. stock futures and global indexes are down this morning, following yesterday’s market drop — the third in a row — after consumer price data stoked fears of rising inflation that would test the Fed’s commitment to keeping interest rates low. All that also has the Biden administration increasingly concerned about the fate of its ambitious (and expensive) economic proposals.

The S&P 500 dropped 2 percent, its worst day since February, while the tech-heavy Nasdaq fell 2.7 percent. (The flagship fund of Ark Invest, which bet heavily on high-growth tech darlings, has fallen to a six-month low.) The yield on the 10-year Treasury note jumped to around 1.7 percent, from 1.5 percent a week ago.

said Richard Clarida, the central bank’s Trump-appointed vice chair, though he conceded that yesterday’s numbers were a “surprise.” Clarida cited last week’s disappointing job gains data as a reason for the Fed to stay its course on interest rates. But some economists remain skeptical: “There is a lot of concern that the Fed is behind the curve on this,” Alan Detmeister of UBS told The Times.

The Washington Post reports. Officials from the National Economic Council and the Treasury Department met over the weekend to discuss strategy. And an effort yesterday to woo Republican support for President Biden’s $2.3 trillion infrastructure proposal appeared to gain no converts.


— Sandeep Mathrani, WeWork’s C.E.O., at a Wall Street Journal event. “People are happier when they come to work,” the chief of the office rental company added.


Yesterday, Democratic senators introduced the Carried Interest Fairness Act, proposing to end a tax break that benefits real estate, private equity and venture capital investors above all. Senator Joe Manchin of West Virginia, the centrist Democrat who doesn’t always toe the party line, is among those proposing to shut the long-debated, little-understood loophole, which is one sign that it may become law after previous false starts.

Investment managers often pay less tax on earnings than other workers. Money from investment returns (or “carry”) is taxed at the capital gain rate, about 20 percent. Regular income is taxed at more than double this rate, when state and local levies are taken into account. Proponents of the practice, who hold a lot of political sway via their connections and donations, say that the funds merely represent a return on investment, not income.

Donald Trump campaigned on a promise to end the break, but the tax law that emerged from Congress did not address it. The loophole’s persistence surprised even Larry Kudlow, the conservative economist who crafted Trump’s tax plan. “I don’t know how that thing survived,” he said at the time. “I’m sure the lobbying was intense.”

President Biden has also promised a fix. He called on Congress to eliminate the loophole, saying it would be “an important structural change that is necessary to ensure” fairness. The Democrats have narrow majorities in both chambers, but the loophole has proved hard to close.

Axios)

  • Shares in Hertz soared after the rental-car company backed a $6 billion takeover bid that includes a rare payout to shareholders of a bankrupt company. (CNBC)

  • The activist hedge fund ValueAct has taken a 4 percent stake in the owner of 7-Eleven and suggested it favors breaking up the convenience store operator. (Reuters)

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