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China loosens anti-COVID restrictions in policy shift

  • National Health Authority announces 10 new measures
  • China to hold news conference on COVID steps at 0700 GMT
  • Residents rush to buy drugs, fearing virus spread

BEIJING/SHANGHAI, Dec 7 (Reuters) – China said on Wednesday it would allow COVID patients with mild symptoms to isolate at home as part of a set of new measures that marked a major shift in a tough anti-virus policy that has battered its economy and sparked historic protests.

The relaxation of rules, which also include dropping a requirement for people to show negative tests when they travel between regions, came as top officials toned down warnings about the dangers posed by COVID-19.

That has raised prospects that Beijing may slowly look to align with the rest of the world and start re-opening its economy three years into a pandemic, which erupted in the central Chinese city of Wuhan in late 2019.

Investors were quick to cheer the prospect of a reprieve for the world’s second largest economy and the possibility of a shift towards a lifting of border controls next year.

“This change of policy is a big step forward,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management.

“I expect China will fully reopen its border no later than mid 2023.”

China is due to hold a press conference at 3.00 pm (0700 GMT) on “optimising” its COVID control measures, state media reported, after President Xi Jinping chaired a meeting of the Communist Party’s Politburo on Tuesday.

Cities across China were gripped by protests over tough COVID policies late last month, in what was the biggest show of public discontent since Xi came to power in 2012.

While those protests petered out in days amid a heavy police presence, cities and regions around the country started announcing a mish-mash of easing measures that fed expectations for Wednesday’s announcement.

Many of the steps taken by individual cities or regions were reflected in the list of policy changes issued by the National Health Authority on Wednesday.

But the looser curbs have set off a rush for preventative drugs as some residents, particularly the unvaccinated elderly, feel more vulnerable to the virus.

Authorities across the country have warned of tight supplies and price gouging from retailers in recent days.

“Please buy rationally, buy on demand, and do not blindly stock up,” the Beijing Municipal Food and Drug Administration was quoted as saying in the state-owned Beijing Evening News.

In Beijing’s upmarket Chaoyang district, home to most foreign embassies as well entertainment venues and corporate headquarters, shops were fast running out of some those drugs, according to a resident.

“Last night the medicines were already in stock, and now many of them are out of stock,” said Zhang, a 33-year-old educationist, who only gave his surname.

“Epidemic preventions have been lifted…COVID-19 testing sites are mostly being dismantled… So, because right now in Chaoyang district cases are quite high, it is better to stock up on some medicines,” he said.

Reporting by Brenda Goh in Shanghai and Sophie Yu, Ryan Woo, Bernard Orr and the Beijing newsroom; Writing by John Geddie; Editing by Simon Cameron-Moore

Our Standards: The Thomson Reuters Trust Principles.

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CDC loosens coronavirus guidance, signaling strategic shift

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The Centers for Disease Control and Prevention on Thursday loosened many of its recommendations for battling the coronavirus, a strategic shift that puts more of the onus on individuals, rather than on schools, businesses and other institutions, to limit viral spread.

No longer do schools and other institutions need to screen apparently healthy students and employees as a matter of course. The CDC is putting less emphasis on social distancing — and the new guidance has dropped the “six foot” standard. The quarantine rule for unvaccinated people is gone. The agency’s focus now is on highly vulnerable populations and how to protect them — not on the vast majority of people who at this point have some immunity against the virus and are unlikely to become severely ill.

The new recommendations signal that the Biden administration and its medical advisers have decided that the lower fatality rate from covid-19 in a heavily vaccinated population permits a less demanding set of guidelines.

“The current conditions of this pandemic are very different from those of the last two years,” CDC epidemiologist Greta Massetti said Thursday in a briefing for reporters.

The virus has killed more than 1 million people in the United States since it arrived in early 2020. About 42,000 people with covid are hospitalized and the daily death toll is close to 500, according to a Washington Post seven-day average of daily trends. Those numbers, though quite a bit higher than in early spring, do not approach the dire figures of last winter, and CDC officials have repeatedly pointed to greater protection against the virus because of high levels of vaccine- and infection-induced immunity, coupled with the rollout of effective treatments that have reduced severe illness.

A report released Thursday by the agency explaining the guidance revisions said the more favorable circumstances allow public health officials to focus on “sustainable measures to further reduce medically significant illness as well as to minimize strain on the health care system, while reducing barriers to social, educational, and economic activity.”

When you have covid, here’s how you know you are no longer contagious

But the revision in guidance carries some risk, according to infectious-disease experts: Another fall and winter wave of cases, or the emergence of a new coronavirus variant, could call into question the wisdom of the CDC’s strategic pivot or hamper the agency’s ability to reimpose tougher guidelines.

As part of the changes, the agency is dropping its recommendation that people be screened or tested for covid in most settings. That change is likely to affect policies in workplaces, schools and day-care centers.

“When considering whether and where to implement screening testing of asymptomatic people with no known exposure, public health officials might consider prioritizing high-risk congregate settings, such as long-term care facilities, homeless shelters, and correctional facilities, and workplace settings that include congregate housing with limited access to medical care,” the CDC wrote in the report explaining the changes.

One CDC webpage, titled “How to Protect Yourself and Others,” has been extensively revised. It no longer states, for example, “If possible, maintain 6 feet between the person who is sick and other household members.” The new language is more nuanced, does not employ the 6-foot rule, and acknowledges that it may be impractical to stay away from a sick person: “In those situations, use as many prevention strategies as you can, such as practicing hand hygiene, consistently and correctly wearing a high-quality mask, improving ventilation, and keeping your distance, when possible, from the person who is sick or who tested positive.”

Under the new guidance, quarantine procedures have been relaxed: Unvaccinated people who have had close contact with someone who is infected no longer are advised to go through a five-day period of quarantine if they have not tested positive for the virus or shown symptoms.

Previous CDC guidance said people who had been exposed but were up to date on their coronavirus shots could skip the quarantine period. The new guidance expands that standard to everyone.

The updated CDC guidance does not call for dropping all precautionary measures. For example, people who have been exposed — but not confirmed to be infected — should still wear a mask and get tested at least five days after exposure.

People who test positive should continue to isolate immediately and stay home for five full days if positive. (“Isolation,” as opposed to “quarantine,” covers those known to be infected or who are symptomatic.)

The CDC did not call for a negative test before exiting isolation. Some infectious-disease experts have argued that a negative test offers direct evidence of a person’s potential to spread the virus, unlike the one-size-fits-all timeline. And the five-days standard has been criticized as too short. A recent study found that people continue to test positive on antigen tests for eight days, on average, after becoming infected.

“I think the question is, is the CDC finally saying, ‘Look, we’ve done what we can do to contain the most acute phases of this pandemic?’” said Jeanne Marrazzo, an infectious-diseases expert and clinician at the University of Alabama at Birmingham. “So are they just finally saying that it is time for us to sort of take a step back and think about putting this back to the individual person?”

The more relaxed guidelines are “a concession to realism, to the way that a lot of people are handling this,” said William Hanage, an epidemiologist at the Harvard T.H. Chan School of Public Health. He called the new guidelines “entirely reasonable,” but added, “My major concern is whether they will continue to be entirely reasonable given the unpredictable dynamics of the virus.”

The revision by the CDC of its coronavirus guidance is the most significant move by the agency since the massive outbreak of infections from omicron last winter. Omicron sickened tens of millions of people in a matter of weeks. The CDC had been recommending a 10-day isolation period up to that point, but omicron quickly decimated the labor force and the agency abruptly cut isolation guidance in half.

The CDC is not a regulatory body. Its guidelines do not have the force of law. But many government jurisdictions, businesses, schools and millions of people have tried to adhere to the agency’s guidelines during the pandemic.

Social factors and not just virologic ones have shaped the CDC’s approach. The agency’s director, Rochelle Walensky, has said the agency wants to offer practical recommendations that can, and will, be followed by a broad swath of the public. That means taking equity issues into account, because people do not have equal access to tests, or the same ability to work remotely or isolate from family members. The agency has said it wants to avoid unnecessary extension of isolation for people who test positive but are unlikely to still be infectious.

Public health experts, interviewed in recent days about the anticipated loosening of restrictions, said the changes reveal the Biden administration’s strategic shift toward a “live with the virus” approach.

Although the latest omicron subvariant, BA.5, has fueled a wave of infections in many parts of the country over the past two months, the great majority of those cases have not required hospitalization.

“The pandemic is in a very different spot” than it was last year, said David M. Aronoff, an infectious-disease expert and physician at Indiana University. “We know the majority of Americans have some immunity to SARS-CoV-2, either because they’re immunized by a vaccine or immunized by an infection.”

Thursday’s CDC action arrives as the agency’s latest data indicates the summer BA.5 wave has peaked. The share of the country living in the highest level of stress on the medical system has dropped from 61 percent to 45 percent during the past two weeks. The South, where 66 percent of the people live in high-covid areas, continues to be by far the most-affected area, but all four regions of the country showed declining covid intensity the past two weeks.

Many workplaces may use the latest guidance to stop routine testing, and may cut back on other preventive policies, Aronoff said. But if there is a spike in severe illness and deaths in the fall, “there has to be a willingness to ramp up or dial up our preventive strategies if needed,” Aronoff said.

Caitlin Rivers, an infectious-disease epidemiologist at the Johns Hopkins Center for Health Security, said it made sense to standardize the quarantine guidance regardless of vaccination status.

“The vaccines remain protective against severe illness, but the combination of variants and waning [immunity] have eroded their protection against infection,” Rivers wrote in an email. But, she added, “I feel strongly that people who are exposed should wear a mask and test between Days 5 and 7 to avoid infecting others.”

Rivers said she was sorry to see the agency drop its recommendation that testing be used to screen for the virus, calling it a “useful tool for identifying outbreaks early and monitoring the burden of disease in a population.” The expense can be a barrier, she said, but “absenteeism and losses in learning or productivity are also costly.”

Julia Raifman, an assistant professor at the Boston University School of Public Health, said what is most notable about the guidelines is what is missing.

“The CDC sets the bar on what should happen, like a speed limit,” Raifman wrote in an email. “Instead, we have the CDC establishing that there are no speed limits and making it very difficult for state and local governments to set better policies.”

There is no policy guidance “to reduce a bad surge and its harms to health as well as widespread disruption of education and work by turning on a mask mandate and increased testing,” Raifman said. CDC should “establish longer-term policies for living with less COVID and have policy preparedness to make surges less harmful and disruptive to health and the economy.”

The new guidance also provides additional information about the reliability of rapid antigen tests and the importance of testing more than once — what is known as serial testing. It comes amid evidence that many people who are symptomatic with an illness and suspect they have covid are still testing negative, initially, on the at-home tests.

The new guidance says people who are exiting isolation and don’t want to wear a mask for another five days, as the CDC recommends, can take two tests to reach mask-free status. One test should come no sooner than Day 6 (after symptoms appeared, or the person had that initial positive test result). The second test should come 48 hours later, the new guidance said. Two antigen tests with more than 48 hours between them provides “more reliable information because of improved test sensitivity,” the guidance said. People should have two consecutive negative tests to discontinue masking, the guidance said.

A University of Massachusetts research study, posted online but not yet published in a peer-reviewed journal, has spurred the government to embrace serial testing. The study showed that two rapid antigen tests conducted 48 hours apart were sensitive to 93 percent of the infections detected independently by the much more accurate PCR tests during the initial week of infection. But a single rapid test caught only 60 percent of infections among symptomatic people on the day they came up positive on the more sensitive PCR test, according to the study’s lead author, Apurv Soni, director of the program in digital medicine at the University of Massachusetts Chan Medical School.

“Public health implications of our findings suggest that people who are suspected to be infected with SARS-CoV-2 should exercise caution despite an initial negative rapid antigen-test and favor mask-wearing and avoiding crowded places,” the authors wrote. Given reports of people continuing to test positive after five days of isolation, the authors said their findings “support isolation for a longer period of time to prevent the potential of spread of SARS-CoV-2 to others.”

Even so, the CDC is not making major changes in its recommendation for people who are recovering from covid and want to know when they can exit isolation. That guidance says patients can end isolation five days after their first day of symptoms, so long as their symptoms have improved and they have been fever-free for at least 24 hours without fever-reducing medication. The CDC encourages people who become very sick or have weakened immune systems to isolate for 10 days.

In the coming days, the agency plans to consolidate hundreds of websites related to its covid response, each with different messages on testing, ventilation and masking in different settings.

Jacqueline Dupree and Dan Keating contributed to this report.

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Casino stocks rally as Macau loosens restrictions

Casino stocks are on a hot streak this week.

Las Vegas Sands, Wynn, Caesars, Penn National Gaming and MGM Resorts have all surged in recent days, getting a big boost Tuesday after gambling destination Macao eased restrictions for visitors from mainland China.

This group has been incredibly volatile over the past 18 months, hit hard by closures and then travel disruptions and uneven traffic during the coronavirus pandemic.

So, is Lady Luck finally on the casinos’ side?

Quint Tatro, president of Joule Financial, says yes … for one stock.

“The easy play is Las Vegas Sands,” Tatro told CNBC’s “Trading Nation” on Tuesday. “It was March of just this year we were on here speaking about their abrupt shift and their sale of all their Las Vegas properties to basically double down and focus on their Asia exposure. At the time, I think it was a big question mark.”

The benefits of that strategy now make more sense to Tatro in light of China’s reopening and Macao’s rebound. Las Vegas Sands announced in the first quarter that it would sell its Vegas properties including its Venetian Resort for a total of $6.25 billion.

“It still has a difficult balance sheet, it’s not the greatest balance sheet, but they do have $2 billion now in unrestricted cash that they can put where they see the best opportunity,” said Tatro. “If this [rebound] is legit and we start to see a resurgence in the casino space, I think Las Vegas Sands is the play here.”

Las Vegas Sands has tumbled 36% from a March high. It is down 28% for the year.

JC O’Hara, chief market technician at MKM Partners, said the downturn in the China-exposed casino names has him wary. Instead, he prefers DraftKings, a gambling stock that he says looks to have stabilized after its pullback.

“It is reestablishing itself in an uptrend, breaking back above the 150-day moving average. So rather than trying to bottom pick some of these names and make calls on economic data, let’s look where the price action is positive and that’s DraftKings,” he said during the same interview.

O’Hara targets the March highs above $74 as a promising target price and sees a band of support at $50. DraftKings closed Tuesday at $56.47.

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