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JPMorgan’s Dimon warns of possible $1 billion Russia loss

JP Morgan CEO Jamie Dimon looks on during the inauguration the new French headquarters of JP Morgan bank in Paris, France June 29, 2021. Michel Euler/Pool via REUTERS

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  • Dimon concerned about secondary impact of Ukraine conflict
  • Dimon calls for increased U.S. military presence in Europe
  • Dimon urges revamp of U.S. supply chain
  • Fed rate hikes could be higher than market expects -Dimon

NEW YORK, April 4 (Reuters) – JPMorgan (JPM.N) could lose about $1 billion on its Russia exposure, Chief Executive Jamie Dimon said on Monday, detailing the extent of the bank’s potential losses from the conflict in Ukraine for the first time.

In his keenly watched annual letter to shareholders, the chairman and chief executive of the biggest U.S. bank by assets also urged the United States to increase its military presence in Europe and reiterated a call for it to develop a plan to ensure energy security for itself and its allies.

Dimon did not provide a time frame for JPMorgan’s potential Russia losses but said the bank was concerned about the secondary impact of Russia’s invasion of Ukraine on companies and countries. Russia calls its actions a “special operation.”

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Global banks have detailed their exposure to Russia in recent weeks but Dimon is the most high-profile world business leader yet to comment on the broader impact of the conflict.

“America must be ready for the possibility of an extended war in Ukraine with unpredictable outcomes. We should prepare for the worst and hope for the best,” he wrote. (For five key takeaways from Dimon’s letter, click on read more )

Dimon may continue as chairman when he eventually relinquishes his role as chief executive, the bank said Monday.

The disclosure, in a report to shareholders ahead of JPMorgan’s annual meeting in May, said the bank had found that most major shareholders want Dimon to remain chairman.

The board also said that it was inclined as a “general policy” to separate the jobs of chairman and chief executive after Dimon is gone. Many shareholders have a general preference to separate the posts, it said.

Dimon has made something of a joke of perpetually saying he will resign in five years. In 2019, he said the five-year clock had actually begun.

In his letter to shareholders, Dimon addressed the relationship between the United States and China and said the United States should revamp its supply chain to restrict its scope to suppliers within the United States or to only include “completely friendly allies”. He urged the United States to rejoin the Trans-Pacific Partnership (TPP), one of the world’s biggest multinational trade deals.

Commenting on the macroeconomic environment, Dimon said the number of Federal Reserve interest rate hikes “could be significantly higher than the market expects.” He also detailed the bank’s rising expenses, in part due to technology investments and acquisition costs.

The letter is Dimon’s 17th as CEO. While Dimon is not the only CEO of a top U.S. bank to write such letters, his have become must-reads among Wall Street’s elite and policymakers for the view they provide into his political and economic ideas.

‘FORTRESS BALANCE SHEET’

This year’s letter comes as the Russia-Ukraine war and high inflation are hurting the economy, and as Dimon faces new skepticism from investors over expenses.

Some question his plans to increase spending on the bank’s information technology and campaigns to take market share in businesses and geographies where JPMorgan currently trails competitors, such as in Germany and the United Kingdom.

JPMorgan decided earlier this year to hold its first investor day since the pandemic began to address doubts about its spending plans. The meeting will be held on May 23.

Dimon has spent more than a decade building what he calls the bank’s “fortress balance sheet,” and he said it is now robust enough that JPMorgan could withstand losses of $10 billion or more and “still be in very good shape.”

While Dimon wrote that he is not worried about the bank’s exposure to Russia, he said the war in Ukraine will slow the global economy and will impact geopolitics for decades.

“We are facing challenges at every turn: a pandemic, unprecedented government actions, a strong recovery after a sharp and deep global recession, a highly polarized U.S. election, mounting inflation, a war in Ukraine and dramatic economic sanctions against Russia,” he said.

On acquisitions, Dimon said that the bank will be reducing stock buybacks over the next year to meet capital increases required by federal rules “and because we have made some good acquisitions that we believe will enhance the future of our company.”

JPMorgan has been on a buying spree, spending nearly $5 billion on acquisitions over the past 18 months. Dimon said that will increase “incremental investment expenses” by roughly $700 million this year.

Investments in technology will add $2 billion to expenses this year, Dimon said.

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Additional reporting by David Henry; Editing by Michelle Price, Muralikumar Anantharaman and Nick Zieminski

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Zelenskiy asks Grammys audience to support ‘in any way you can’

April 3 (Reuters) – Ukrainian President Volodymyr Zelenskiy on Sunday made a surprise video appearance at the music industry’s star-studded Grammy Awards celebration in Las Vegas and appealed to viewers to support his country “in any way you can.”

“What is more opposite to music? The silence of ruined cities and killed people,” said Zelenskiy in the video that introduced John Legend’s performance of “Free” and featured Ukrainian musicians and a reading by Ukrainian poet Lyuba Yakimchuck.

“Fill the silence with your music. Fill it today, to tell our story. Support us in any way you can. Any, but not silence,” Zelenskiy, wearing his now trademark olive green T-shirt, said in English, his voice hoarse.

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War broke out in Ukraine over a month ago after Russian military forces invaded, displacing millions of civilians and reducing cities to rubble. Russia calls its actions in Ukraine a “special operation”.

Actor-turned-wartime-leader Zelenskiy, 44, has used nightly videos to great effect at home, often appearing unshaven and wearing a T-shirt, and has also beamed his image directly to parliaments around the world.

He has pleaded with allies in speeches at the U.S. Congress, Japanese National Diet, British and Australian parliaments and Israeli Knesset, and on Sunday chose an event dedicated to the universal language of music to spur support for his country.

“Our musicians wear body armor instead of tuxedos, they sing to the wounded, in hospitals, even to those who can’t hear them but the music will break through,” he said.

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Reporting by Maria Caspani, Rami Ayyub and Daniel Trotta; Editing by Christopher Cushing and Stephen Coates

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Social media platforms blocked in Sri Lanka amid curfew, opposition protest

COLOMBO, April 3 (Reuters) – Sri Lankan soldiers with assault rifles and police manned checkpoints in Colombo on Sunday as the government blocked social media platforms after imposing a curfew to contain public unrest triggered by the country’s economic crisis.

The latest restrictions come after the government on Saturday implemented a countrywide curfew as protests against the government’s handling of the economic crisis turned violent. The curfew will run till 6 a.m. (0030 GMT) on Monday. read more

“The social media block is temporary and imposed due to special instructions given by the Defence Ministry. It was imposed in the interests of the country and people to maintain calm,” Telecommunications Regulatory Commission Chairman Jayantha de Silva told Reuters.

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Internet monitoring organisation NetBlocks said real-time network data showed that Sri Lanka had imposed a nationwide social media blackout, restricting access to platforms including Twitter, Facebook, WhatsApp, YouTube and Instagram as a state of emergency was declared amid widespread protests.

The country’s Minister for Youth and Sports Namal Rajapaksa who is also the nephew of President Gotabaya Rajapaksa said in a tweet he would “never condone the blocking of social media”.

“The availability of VPN, just like I’m using now, makes such bans completely useless. I urge the authorities to think more progressively and reconsider this decision.”

President Rajapaksa declared a state of emergency on Friday, raising fears of a crackdown on protests as the country grapples with rising prices, shortages of essentials and rolling power cuts.

Emergency powers in the past have allowed the military to arrest and detain suspects without warrants, but the terms of the current powers are not yet clear.

It has also marked a sharp turnaround in political support for President Rajapaksa, who swept to power in 2019 promising stability.

Around two dozen opposition leaders stopped at police barricades on the way to Independence Square, some shouting “Gota (Gotabaya) Go Home”.

“This is unacceptable,” said opposition leader Eran Wickramaratne leaning over the barricades. “This is a democracy.”

Nihal Thalduwa, a senior superintendent of police, said 664 people who broke curfew rules were arrested by the police in the Western Province, the country’s most populous administrative division which includes Colombo.

Critics say the roots of the crisis, the worst in several decades, lie in economic mismanagement by successive governments that created and sustained a twin deficit – a budget shortfall alongside a current account deficit.

But the current crisis was accelerated by deep tax cuts promised by Rajapaksa during a 2019 election campaign that were enacted months before the COVID-19 pandemic, which wiped out parts of Sri Lanka’s economy.

At Colombo’s Pettah government bus stand, Issuru Saparamadu, a painter, said he was desperately looking for a way to go home to Chilaw, around 70 km away.

With public transport stalled since the curfew, Saparamadu said he spent the night sleeping on the street after working the entire week in Colombo.

“Now I cannot go back. I’m stuck,” he said. “I’m very frustrated.”

Western and Asian diplomats based in Sri Lanka said they were monitoring the situation and expected the government to allow citizens to hold peaceful demonstrations.

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Writing by Rupam Jain; Editing by Jacqueline Wong

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Ukrainians curse Russian invaders as dead civilians found in liberated towns

  • Dead civilians line streets of recaptured town near Kyiv
  • Ukraine accuses Russian forces of laying mines
  • ICRC convoy on way to besieged port of Mariupol
  • Ukrainian negotiator hints at Zelenskiy-Putin talks

BUCHA, Ukraine, April 3 (Reuters) – As Ukraine said its forces had retaken all areas around Kyiv, the mayor of a liberated town said 300 residents had been killed during a month-long occupation by the Russian army, and victims were seen in a mass grave and still lying on the streets.

Ukraine’s troops have retaken more than 30 towns and villages around Kyiv, Ukrainian officials said on Saturday, claiming complete control of the capital region for the first time since Russia launched its invasion.

At Bucha, a town neighbouring Irpin just 37 km (23 miles) northwest of the capital, Reuters journalists saw bodies lying in the streets and the hands and feet of multiple corpses poking out of a still-open grave at a church ground. read more

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After more than five weeks of fighting, Russia has pulled back forces that had threatened Kyiv from the north to regroup for battles in eastern Ukraine.

“The whole Kyiv region is liberated from the invader,” Ukrainian Deputy Defence Minister Hanna Malyar wrote on Facebook. There was no Russian comment on the claim, which Reuters could not immediately verify.

President Volodymyr Zelenskiy warned in a video address: “They are mining all this territory. Houses are mined, equipment is mined, even the bodies of dead people.” He did not cite evidence. read more

Ukraine’s emergencies service said more than 1,500 explosives had been found in one day during a search of the village of Dmytrivka, west of the capital.

Russia’s defence ministry did not reply to a request for comment on the mining allegations. Reuters could not independently verify them. Moscow denies targeting civilians and rejects war crimes allegations.

But in Bucha, Mayor Anatoliy Fedoruk said more than 300 residents had been killed. Many residents tearfully recalled brushes with death and cursed the departed Russians.

“The bastards!” Vasily, a grizzled 66-year-old man said, weeping with rage as he looked at more than a dozen bodies lying in the road outside his house. “I’m sorry. The tank behind me was shooting. Dogs!”

British Foreign Secretary Liz Truss said she was appalled by atrocities in Bucha and voiced support for the International Criminal Court’s inquiry into potential war crimes.

PUTIN-ZELENSKIY TALKS?

Since the launch on Feb. 24 of what President Vladimir Putin called a “special military operation” to demilitarise and “denazify” Ukraine, Russia has failed to capture a single major city and has instead laid siege to urban areas, uprooting a quarter of the country’s population.

Russia has depicted its drawdown of forces near Kyiv as a goodwill gesture in peace talks. Ukraine and its allies say Russia was forced to shift its focus to east Ukraine after suffering heavy losses.

Both sides described talks last week in Istanbul and by video link as “difficult”. Kremlin spokesman Dmitry Peskov said on Saturday the “main thing is that the talks continue, either in Istanbul or somewhere else”.

A new round of talks has not been announced. But Ukrainian negotiator David Arakhamia said on Saturday that enough progress had been made to allow direct talks between Russian President Vladimir Putin and Zelenskiy.

“The Russian side confirmed our thesis that the draft documents have been sufficiently developed to allow direct consultations between the two countries’ leaders,” Arakhamia said. Russia has not commented on the possibility.

MARIUPOL WAITS

Among those killed near Kyiv was Maksim Levin, a Ukrainian photographer and videographer who was working for a news website and was a long-time contributor to Reuters. read more

His body was found in a village north of Kyiv on Friday, the news website LB.ua where he worked said on Saturday.

In the east, the Red Cross was hoping a convoy to evacuate civilians would reach the besieged port of Mariupol on Sunday, having abandoned earlier attempts due to security concerns. Russia blamed the ICRC for the delays. read more

Mariupol is Russia’s main target in Ukraine’s southeastern region of Donbas, and tens of thousands of civilians there are trapped with scant access to food and water. read more

British military intelligence said in a regular update on Sunday that Russian naval forces maintained a blockade of the Ukrainian coast along the along the Black Sea and the Sea of Azov. Russia had the capability to attempt amphibious landings, although such operations were becoming increasingly high-risk, it said.

It said reported mines, the origin of which remained unclear and disputed, posed a serious risk to shipping in the Black Sea.

In the early hours of Sunday missiles struck Odesa, the city council in the southern port city said.

Russia’s defence ministry said its missiles had disabled military airfields in Poltava, in central Ukraine, and Dnipro, further south. It later said its forces had hit 28 Ukrainian military facilities across the country, including two weapons depots.

The Ukrainian military also reported Russian air strikes on the cities of Severodonetsk and Rubizhne in Luhansk, one of two southeastern regions where pro-Russian separatists declared breakaway states days before the invasion. The Ukrainian military said it had repulsed six enemy attacks in Luhansk and Donetsk, the other breakaway region, on Saturday.

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Additional reporting by Natalia Zinets in Mukachevo, Ukraine, Alessandra Prentice and Reuters bureaus; Writing by Simon Cameron-Moore; Editing by Stephen Coates and William Mallard

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Macron warns against Brexit-like election upset at mass campaign rally

PARIS, April 2 (Reuters) – French President Emmanuel Macron warned of the risk of a Brexit-style election upset in his only campaign rally before the first round of the presidential election, in a bid to convince dispirited voters and re-energise a lacklustre campaign.

A week or so before the April 10 vote, Macron finds himself on the defensive, with far-right leader Marine Le Pen staging a comeback in the polls and the race tightening between the two frontrunners for the crucial April 24 runoff. read more

“Look at what happened with Brexit, and so many other elections: what looked improbable actually happened,” Macron told a crowd of flag-waving supporters. “Nothing is impossible.”

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“The danger of extremism has reached new heights because, in recent months and years, hatred, alternative truths have been normalised,” he said. “We have got used to see on TV shows antisemitic and racist authors.”

Although he is still projected to win a second mandate, Macron has lost ground in the polls, a dip that some aides attribute to a manifesto that includes tough, conservative measures such as raising the state pension age to 65.

Others have also criticised a campaign that started late and lacked “magic”. read more

After a rockstar-like entry on to the stage of a 35,000-seat stadium outside Paris, Macron started his two-hour speech with a long list of accomplishments and promises to create jobs in hospitals and nursing homes, in a clear attempt to convince centre-left voters that pollsters say could abstain.

“Our lives, their lives, are worth more than profits,” he told the crowd, stealing a well-known anti-capitalist slogan. He also urged a round of applause for teachers and nurses.

However, he stayed true to his reformist programme, saying the French will have to work longer to pay for these measures, because he refused to raise taxes and increase a public debt pile that has ballooned to 102% of GDP during the pandemic.

“I am not hiding the fact that we will have to work more,” Macron said, attacking contenders such as Le Pen and far-left candidate Jean-Luc Melenchon who have promised to cut the pension age to 60.

“Don’t believe those who say they will cut the retirement age to 60 or 62 and that everything will be alright. That’s not true,” he added.

The rally of about 30,000 supporters – almost reaching the venue’s full capacity – was attended by former left-wing and right-wing prime ministers and other party grandees. Yet one supporter asked by Reuters found the speech underwhelming.

“It’s a speech that shows he wants to explain what he will do, but it lacked inspiration,” said Martin Rochepeau, a 22-year old student.

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Reporting by Michel Rose; Additional reporting by Elizabeth Pineau; Editing by David Holmes

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Tesla delivers record vehicles in first quarter; output falls during China shutdown

A Tesla logo on a Model S is photographed inside of a Tesla dealership in New York, U.S., April 29, 2016. REUTERS/Lucas Jackson/File Photo

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April 2 (Reuters) – Tesla Inc (TSLA.O) on Saturday reported record electric vehicle deliveries for the first quarter, largely meeting analysts’ estimates, but production fell from the previous quarter as supply chain disruptions and a China plant suspension weighed.

“This was an *exceptionally* difficult quarter due to supply chain interruptions & China zero Covid policy,” Chief Executive Elon Musk tweeted. “Outstanding work by Tesla team & key suppliers saved the day.”

Tesla delivered 310,048 vehicles in the quarter, a slight increase from the previous quarter, and up 68% from a year earlier. Wall Street had expected deliveries of 308,836 cars, according to Refinitiv data.

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Tesla produced 305,407 vehicles from January to March, down from 305,840 the previous quarter.

Tesla, the world’s most valuable automaker, has navigated the pandemic and supply chain disruptions better than rivals and its new Shanghai factory has been driving growth.

But a recent spike in COVID-19 cases in China has forced Tesla to temporarily suspend production at the Shanghai factory for several days in March and April as the city locks down to test residents for the disease. read more

The deliveries were “better than feared given supply chain issues,” said Daniel Ives, an analyst at Wedbush, in a report.

Tesla said it sold a total of 295,324 Model 3 sedans and Model Y sport utility vehicles, while it delivered 14,724 Model S luxury sedans and Model X premium SUVs.

PRICE HIKE

Skyrocketing gas prices spurred by the Ukraine crisis is expected to fuel demand for electric cars, but lack of inventory and higher vehicle prices would weigh on sales, analysts said.

Tesla in March raised prices in China and the United States after Musk said the U.S. electric carmaker was facing significant inflationary pressure in raw materials and logistics after Russia’s invasion of Ukraine.

“Impressive (deliveries) given all the headwinds,” Gene Munster, managing partner at venture capital firm Loup Ventures, said, adding he expected Tesla to continue outperforming other automakers in sales growth.

Toyota and GM, Hyundai Motor on Friday reported lower first-quarter U.S. sales than a year earlier. read more

Musk said in October that Shanghai had surpassed its Fremont, California factory – the company’s first plant – in output. The two factories are critical for Tesla’s goal to boost deliveries by 50% this year, as production at its new factories are expected to ramp up slowly in their first year.

Tesla started delivering vehicles made at its factory in Gruenheide, Germany, in March and deliveries of cars made at its plant in Austin, Texas, were to begin in the near future.

The company’s stock soared after Tesla this week revealed plans to seek investor approval to increase its number of shares to enable a stock split. read more Tesla shares have risen about 3% so far this year, while GM and Ford shares have declined.

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Reporting by Hyunjoo Jin in San Francisco, Akash Sriram, Akriti Sharma in Bengaluru; Editing by Maju Samuel and Alistair Bell, Diane Craft and Richard Chang

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Sri Lanka imposes curfew after president declares state of emergency

  • Curfew until 0030 GMT on Monday
  • Lawyers urge president to revoke state of emergency
  • Sri Lankans suffering from lack of fuel, essential items
  • India rushes to provide food aid

COLOMBO, April 2 (Reuters) – Sri Lanka’s government imposed a weekend curfew on Saturday, even as hundreds of lawyers urged President Gotabaya Rajapaksa to revoke a state of emergency introduced following unrest over fuel and other shortages in a deep economic crisis.

The government’s information department said a countrywide curfew would run from 6 p.m. (1230 GMT) on Saturday to 6 a.m. (0030 GMT) on Monday.

Rajapaksa introduced a state of emergency on Friday, raising fears of a crackdown on protests. Emergency powers in the past have allowed the military to arrest and detain suspects without warrants, but the terms of the current powers are not yet clear.

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The Indian Ocean island nation of 22 million people is grappling with rolling blackouts for up to 13 hours a day as the government scrambles to secure foreign exchange to pay for fuel and other essential imports. read more .

“People take to the streets when things are impossible,” 68-year-old Colombo shop owner Nishan Ariyapala told Reuters TV. “When people take to the streets the political leaders of the country must act thoughtfully.”

Rajapaksa said the state of emergency was needed to protect public order and maintain essential supplies and services.

Angered by the shortages of fuel and other essential items, hundreds of protesters clashed on Thursday with police and the military outside Rajapaksa’s residence as they called for his ouster and torched several police and army vehicles.

Police arrested 53 people and imposed a curfew in and around Colombo on Friday to contain other sporadic protests.

Shops opened and traffic was normal on Saturday, while police remained stationed at some petrol stations.

‘FAILURE TO UNDERSTAND’

“There has been a failure to understand the aspirations of the people and to empathize with the suffering of the people of the country,” the lawyers, members of the Bar Association of Sri Lanka, said in their appeal, adding that freedom of speech and peaceful assembly should be respected.

Reacting to the state of emergency, U.S. ambassador to Sri Lanka Julie Chung said: “Sri Lankans have a right to protest peacefully – essential for democratic expression.

“I am watching the situation closely, and hope the coming days bring restraint from all sides, as well as much needed economic stability and relief for those suffering,” she tweeted.

Highlighting the severe shortage of foreign currency, a vessel carrying 5,500 metric tonnes of cooking gas had to leave Sri Lankan waters after Laugfs Gas (LGGL.CM), the company that ordered it, could not procure $4.9 million from local banks to pay for it.

“People are struggling with an acute shortage of cooking gas, but how can we help them when there are no dollars? We are stuck,” Laugfs Gas Chairman W.H.K. Wegapitiya told Reuters.

The ongoing crisis – the result of economic mismanagement by successive governments – has been compounded by the COVID-19 pandemic, which has hit tourism and remittances.

It has also marked a sharp turnaround in political support for Rajapaksa, who swept to power in 2019 promising stability.

The government has said it is seeking a bailout from the International Monetary Fund and loans from India and China.

In the first major food aid to the country since Colombo secured a credit line from New Delhi, Indian traders have started loading 40,000 tonnes of rice. read more

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Reporting by Uditha Jayasinghe Writing by Rupam Jain
Editing by William Mallard and Mark Potter

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Shanghai separates COVID-positive children from parents in virus fight

SHANGHAI, April 2 (Reuters) – Esther Zhao thought she was doing the right thing when she brought her 2-1/2-year-old daughter to a Shanghai hospital with a fever on March 26.

Three days later, Zhao was begging health authorities not to separate them after she and the little girl both tested positive for COVID-19, saying her daughter was too young to be taken away to a quarantine centre for children.

Doctors then threatened Zhao that her daughter would be left at the hospital, while she was sent to the centre, if she did not agree to transfer the girl to the Shanghai Public Health Clinical Center in the city’s Jinshan district.

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Since her daughter was sent to the centre Zhao has had only one brief message that she was fine, sent through a group chat with doctors, despite repeated pleas for information from Zhao and her husband, who is in a separate quarantine site after also testing positive.

“There have been no photos at all… I’m so anxious, I have no idea what situation my daughter is in,” she said on Saturday through tears, still stuck at the hospital she went to last week. “The doctor said Shanghai rules is that children must be sent to designated points, adults to quarantine centres and you’re not allowed to accompany the children.”

Zhao is panicking even more after images of crying children at a Shanghai health facility went viral in China. The anonymous poster said these were children who had tested positive for COVID-19 and been separated from their parents at the Jinshan centre.

The photos and videos posted on China’s Weibo and Douyin social media platforms showed wailing babies kept three to a cot. In one video, a groaning toddler crawls out of a room with four child-sized beds pushed against the wall. While a few adults can be seen in the videos, they are outnumbered by the number of children.

Reuters could not immediately verify the images, but a source familiar with the facility confirmed they were taken at the Jinshan facility.

The Shanghai Public Health Clinical Center said, however, that the photos and videos circulating on internet were not of a “Jinshan infant quarantine facility” but were scenes taken when the hospital was moving its paediatric ward to another building to cope with a rising number of COVID paediatric patients.

This was done to “improve the hospital environment”, it said on its official WeChat account on Saturday, adding that it had organised for more pediatric workers and would strengthen communication with the children’s parents.

“Paediatric patients admitted to our hospital… are guaranteed medical treatment and their daily needs taken care of,” it said.

Later on Saturday the Shanghai rumour buster WeChat account, which is backed by China’s cyberspace watchdog, published four photos that it said showed the children’s current situation at the Jinshan centre.

One of the photos showed young children sitting in and standing around beds that were arranged neatly in two rows, though no adults were pictured. In another photo, a hazmat-suited person attends to a baby lying in a cot. Only one other adult, also in a hazmat suit, can be seen in the two other photos.

The Shanghai government referred Reuters to the hospital’s statement and declined to comment further.

A Shanghai health official said last week that hospitals that were treating COVID-positive children maintained online communications with their parents.

POST DELETED

By Saturday, the original post had been deleted from Weibo, but thousands of people continued to comment and repost the images. “This is horrific,” said one. “How could the government come up with such a plan?,” said another.

In some cases children as young as 3 months old are being separated from their breastfeeding mothers, according to posts in a quarantine hospital WeChat group shared with Reuters. In one room described in a post, there are eight children without an adult.

In another case, more than 20 children from a Shanghai kindergarten aged 5 to 6 were sent to a quarantine centre without their parents, a source familiar with the situation said.

Since Shanghai’s latest outbreak began about a month ago, authorities have locked down its 26 million people in a two-stage process that began on Monday.

While the number of cases in Shanghai is small by global standards, Chinese authorities have vowed to stick with “dynamic clearance”, aiming to test for, trace and centrally quarantine all positive cases.

The U.S., French and Italian foreign consulates have warned their citizens in Shanghai that family separations could happen as Chinese authorities executed COVID curbs, according to notices seen by Reuters.

Shanghai on Saturday reported 6,051 locally transmitted asymptomatic COVID-19 cases and 260 symptomatic cases for April 1, versus 4,144 asymptomatic cases and 358 symptomatic ones on the previous day.

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Reporting by Brenda Goh and Engen Tham, Additional reporting by Winni Zhou; Editing by Christian Schmollinger, William Mallard and Clelia Oziel

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Red Cross plans fresh evacuation effort from Ukraine’s Mariupol

  • Ukraine official hopes for ‘good news’ on Mariupol evacuations
  • Ukrainian forces recapture more territory around Kyiv
  • Missiles hit cities in central Ukraine, say local officials

ZAPORIZHZHIA, Ukraine, April 2 (Reuters) – A Red Cross convoy will try again to evacuate civilians from the besieged port of Mariupol on Saturday as Russian forces looked to be regrouping for new attacks in southeast Ukraine.

Encircled since the early days of Russia’s five-week old invasion, Mariupol has been Moscow’s main target in Ukraine’s southeastern region of Donbas. Tens of thousands are trapped there with scant access to food and water.

The International Committee of the Red Cross (ICRC) sent a team on Friday to lead a convoy of about 54 Ukrainian buses and other private vehicles out of the city, but they turned back, saying conditions made it impossible to proceed. read more

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“They will try again on Saturday to facilitate the safe passage of civilians,” the ICRC said in a statement on Friday. A previous Red Cross evacuation attempt in early March failed.

An advisor to Ukrainian President Volodymyr Zelenskiy said he was hopeful about the Mariupol evacuations.

“I think that today or maybe tomorrow we will hear good news regarding the evacuation of the inhabitants of Mariupol,” Oleksiy Arestovych told Ukrainian television.

Russia and Ukraine have agreed to humanitarian corridors during the war to facilitate the evacuation of civilians from cities, but have often traded blame when the corridors have not been successful.

Seven such corridors were planned for Saturday, Ukraine’s Deputy Prime Minister Iryna Vereshchuk said, including one for people evacuating by private transport from Mariupol and by buses for Mariupol residents out of the city of Berdyansk.

After failing to take a major Ukrainian city since it launched the invasion on Feb. 24, Russia says it has shifted its focus to the southeast, where it has backed separatists since 2014.

In an early morning video address, Zelenskiy said Russian troops had moved toward Donbas and the heavily bombarded northeastern city of Kharkiv.

“I hope there may still be solutions for the situation in Mariupol,” Zelenskiy said.

CIVILIANS IN HOSPITAL

In Chuhuiv, a city in Kharkiv province, two young women sat on neighbouring hospital beds, limbs bandaged and pinned in metal braces, survivors of an attack on a bus that they said was carrying around 20 civilians.

Speaking to Reuters Television on Friday, Alina Shegurets remembered her own screams, and pointed to her wounded legs and hip.

“Windows started to shake. Then I saw something that looked like holes. Then bullets started to fly above. Powder, smoke… I was screaming and my mouth was full of it,” Shegurets said.

The other woman, who identified herself only as Yulia, said eight people died in the attack.

The war has killed thousands, uprooted a quarter of Ukraine’s population and devastated cities such as Mariupol.

Russia denies targeting civilians in what President Vladimir Putin calls a “special military operation” aimed at demilitarising and “denazifying” Ukraine.

Ukraine calls it an unprovoked war of aggression and Western countries have imposed sweeping sanctions in an effort to squeeze Russia’s economy.

British military intelligence said on Saturday that Ukrainian forces continued to advance against withdrawing Russian forces near Kyiv, and that Russian troops had abandoned Hostomel airport in a northwest suburb of the capital, where there has been fighting since the first day.

The British daily assessment also said Ukrainian forces had secured a key route in eastern Kharkiv after heavy fighting.

Russia has depicted its drawdown of forces near Kyiv as a goodwill gesture in peace negotiations. Ukraine and its allies say Russian forces have been forced to regroup after suffering heavy losses.

MISSILE STRIKES

In the early hours on Saturday, Russian missiles hit two cities – Poltava and Kremenchuk in central Ukraine, Dmitry Lunin, head of the Poltava region, wrote in an online post.

He said infrastructure and residential buildings were hit in the region east of Kyiv, but he had no casualty estimates. Reuters could not immediately verify the report.

In the Dnipro region in southwestern Ukraine, missiles hit an infrastructure facility, wounding two people and causing significant damage, Valentyn Reznichenko, head of the region, said in an online post. read more

Russia’s defence ministry said high-precision air-launched missiles had disabled military airfields in Poltava and Dnipro.

Before dawn on Saturday, as sirens sounded across Ukraine, the Ukrainian military reported Russian air strikes on the cities of Sievierodonetsk and Rubizhne in Luhansk.

In that eastern region and neighbouring Donetsk, pro-Russian separatists declared breakaway republics that Moscow recognised just before its invasion.

The Ukrainian military also said defenders repulsed multiple attacks in Luhansk and Donetsk on Friday and that Russian units in Luhansk had lost 800 troops in the past week alone. Reuters was unable to verify those claims.

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Additional reporting by Natalia Zinets in Mukachevo, Ukraine, Alessandra Prentice and Reuters bureaus;
Writing by Rami Ayyub, Simon Cameron-Moore and Madeline Chambers
Editing by Daniel Wallis, William Mallard and Frances Kerry

Our Standards: The Thomson Reuters Trust Principles.

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Sarah Palin announces run for U.S. House seat from Alaska

April 1 (Reuters) – Sarah Palin, the Republican nominee for vice president in 2008, announced her run for Alaska’s only seat in the U.S. House of Representatives on Friday.

It would be Palin’s first run for public office since serving as John McCain’s running mate in a campaign that saw Democrat Barack Obama elected president in November 2008.

“America is at a tipping point,” Palin said in a statement released on her Twitter account announcing her candidacy. “As I’ve watched the far left destroy the country, I knew I had to step up and join the fight.”

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“At this critical time in our nation’s history, we need leaders who will combat the left’s socialist, big-government, America-last agenda,” she said.

Such fiery, anti-establishment rhetoric came to define Palin’s vice-presidential campaign in 2008 and served as a precursor to the rise of Republican former President Donald Trump and the modern Republican Party.

Alaska’s House seat became vacant after Republican Don Young died suddenly last month at age 88 after serving for more than four decades.

A website, www.sarahforalaska.com, was set up as of Friday evening for Palin’s campaign. The home page of the site says, “Sarah Palin is running for Congress!” and seeks donations.

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Reporting by Dan Whitcomb; Editing by Leslie Adler

Our Standards: The Thomson Reuters Trust Principles.

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