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Amazon union has strong lead in NY vote count; losing in Alabama

March 31 (Reuters) – Amazon.com Inc (AMZN.O) workers at a warehouse in New York City’s Staten Island have so far voted 57% in favor of unionizing with a final tally due on Friday, a potential landmark victory for organized labor at the second-largest U.S. private employer.

But that win contrasted with 53% of Amazon workers in Alabama rejecting unionization, in a still-not final outcome.

The Alabama contest could hinge on 416 challenged ballots to be adjudicated in the coming weeks, which are sufficient to change the result, said the U.S. National Labor Relations Board (NLRB), which is overseeing the election. The situation is far different from last year when workers sided with Amazon by a more than 2-to-1 margin against unionizing.

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If final results show either location voted for a union, it would be a historic first for the retailing giant in the United States and a milestone for labor advocates, who for years have considered Amazon’s labor practices a threat to workers.

In fierce campaigns, Amazon has warned about unions in notices in bathroom stalls and held mandatory meetings telling workers that labor groups could force them to strike. It has raised pay and offered bigger signing bonuses in a labor shortage, appealing to staff who have worried organizing means perpetual strife.

At the same time, union drives have picked up momentum. Nine U.S. Starbucks (SBUX.O) stores have voted to organize, with more than 150 more seeking elections. read more Amazon workers responded to more in-person outreach by labor activists as the pandemic subsided, and a second company warehouse in Staten Island, LDJ5, will also vote on whether to unionize starting on April 25.

With nearly 2,700 ballots counted from workers at Amazon’s JFK8 warehouse in Staten Island, about 57% of votes were in favor of a union, according to a Reuters tally of the count overseen by the NLRB and streamed over Zoom. The count will resume on Friday at 9:30 a.m. ET (1330 GMT).

Christian Smalls, a former Amazon employee spearheading the New York union effort, said, “To get to this point, it’s already history.” His group is called the Amazon Labor Union.

A union win in New York “would be a triumph for unconventional organizing campaigns,” said John Logan, a labor professor at San Francisco State University. Smalls’ group made great use of social media during the campaign and diverged from a typical labor playbook, he said.

‘CONTINUE TO FIGHT’

For Bessemer, Alabama, the tally of roughly 1,900 valid ballots concluded on Thursday, but the outcome is far from certain. The NLRB said it will hold a hearing in the next few weeks to determine if any of the 416 challenged ballots should be opened and counted.

Eli Morrison, a 42-year-old Amazon worker who lives in Tuscaloosa, Alabama, said he voted against unionizing and was pleased to see the union trailing. He said he appreciates the flexibility Amazon gives him to pick up extra shifts, a benefit he fears he would lose if workers unionized.

“I come in, I bust ass every day, I get stuff done,” said Morrison, who previously held a union job at a grocery store. “I wouldn’t get to do that if there was a union. It would be whoever’s been there the longest and whoever’s been there longest doesn’t mean that they’ve done the best.”

Jennifer Bates, an early backer of the Alabama union campaign, said, “The election is not over until every ballot is counted that’s eligible, and we’ll continue to fight.”

The labor group organizing the effort plans to file objections to Amazon’s conduct around the election as well, said Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union (RWDSU).

Objections previously filed by the RWDSU led to a determination by the NLRB that Amazon had improperly interfered in the original contest in Bessemer, prompting the board to set aside the results and call for this year’s re-run. read more

Amazon did not immediately comment on the RWDSU’s plans to object or on the vote counts Thursday. The company has said it wants its employees’ voices to be heard and that it is focused on continuing to make Amazon a great place to work.

Regarding communications with Amazon staff during the contests, the company has said it was important for workers to know what a union would mean for their day-to-day employment.

A simple majority of votes cast is needed to win. Neither the New York union nor labor board has said how many ballots were received in Staten Island.

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Reporting by Jeffrey Dastin in Palo Alto, California, Danielle Kaye in New York and Julia Love in San Francisco; Additional reporting by Doyinsola Oladipo and Hilary Russ in New York, Nivedita Balu and Niket Nishant in Bengaluru; Editing by Peter Henderson, Anna Driver and Lisa Shumaker

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U.S. to issue gender neutral passports, take steps to combat anti- transgender laws

WASHINGTON, March 31 (Reuters) – Americans will be allowed to choose an X for gender on their passport applications and select their sex on Social Security cards, the Biden administration said on Thursday in announcing measures to support transgender Americans against wave of state laws targeting them.

The State Department in June said U.S. citizens could select their gender on applications without having to submit medical documentation. In October, it issued the first American passport with an “X” gender marker, designed to give nonbinary, intersex and gender-nonconforming people an option other than male or female on their travel document.

“Starting on April 11, U.S. citizens will be able to select an X as their gender marker on their U.S. passport application, and the option will become available for other forms of documentation next year,” Secretary of State Antony Blinken said in a statement.

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Americans will also be able to select and add their gender to U.S. Social Security cards without medical documentation, beginning in the fall, the Social Security Administration said. The cards currently do not include gender indicators.

The changes were among several measures announced by the Biden administration to mark a “Transgender Day of Visibility,” a day after the Republican governors of Oklahoma and Arizona signed bills banning transgender athletes from girls’ sports in schools. read more

They joined a growing list of states that have passed or enacted similar laws on a contentious election-year issue. Transgender rights have been pushed to the forefront of the culture wars playing out in parts of the United States in recent years, together with issues such as reproductive rights.

A woman holds passports while waiting to cross at the San Ysidro border crossing in San Ysidro, California January 31, 2008. REUTERS/Fred Greaves/File Photo

“The administration once again condemns the proliferation of dangerous anti-transgender legislative attacks that have been introduced and passed in state legislatures around the country,” the White House said in a statement on initiatives it would take aimed at taking down barriers for transgender people.

They include easing travel, providing resources for transgender children and their families, improving access to federal services and benefits and advancing inclusion and visibility in federal data.

The Transportation Security Administration will implement gender-neutral screening at its checkpoints with changes in imaging technology, reducing the number of pat-down screenings, removing gender identification from checkpoint screenings and updating TSA PreCheck to include an “X” gender marker on its application.

The Department of Health and Human Services released a new website that offers resources for transgender and LGBTQI+ youth, their parents, and providers.

Other agencies will announce new actions to expand the collection and use of sexual orientation and gender identity data, the White House said.

“Every American deserves the freedom to be themselves. But far too many transgender Americans still face systemic barriers, discrimination, and acts of violence,” the White House said.

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Reporting by Doina Chiacu; Editing by William Maclean and Bill Berkrot

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Cucumber crisis: surging energy prices leave British glasshouses empty

  • Cost of growing a cucumber to jump from 25p to 70p
  • High energy costs mean crops not planted
  • Pressures likely to push food prices higher

ROYDON, England, March 31 (Reuters) – In a small corner of south-east England, vast glasshouses stand empty, the soaring cost of energy preventing their owner from using heat to grow cucumbers for the British market.

Elsewhere in the country growers have also failed to plant peppers, aubergines and tomatoes after a surge in natural gas prices late last year was exacerbated by Russia’s invasion of Ukraine, making the crops economically unviable.

The hit to UK farms, which need gas to counter the country’s inclement weather, is one of the myriad ways the energy crisis and invasion have hit food supplies around the world, with global grain production and edible oils also under threat.

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In Britain it is likely to push food prices higher at a time of historic inflation, and threaten the availability of goods such as the quintessentially British cucumber sandwich served at the Wimbledon tennis tournament and big London hotels.

While last year it cost about 25 pence to produce a cucumber in Britain, that has now doubled and is set to hit 70 pence when higher energy prices fully kick in, trade body British Growers says.

Regular sized cucumbers were selling for as little as 43 pence at Britain’s biggest supermarket chains on Tuesday.

“Gas prices being so sky high, it’s a worrying time,” grower Tony Montalbano told Reuters, while standing in an empty glasshouse at Roydon in the Lea Valley where for 54 years three generations of his family have farmed cucumbers.

“All the years of us working hard to get to where we are, and then one year it could just all finish,” he said.

All 30,000 square metres of glasshouse at his Green Acre Salads business, which supplies supermarket groups including market leader Tesco (TSCO.L), Sainsbury’s (SBRY.L) and Morrisons, are currently empty.

Montalbano, whose grandfather emigrated from Sicily in 1968 and started a nursery to provide local stores with fresh cucumbers, decided not to plant the first of the year’s three cycles in January.

SOARING COSTS

Last year he paid 40-50 pence a therm for natural gas. Last week it was 2.25 pounds a therm, having briefly hit a record 8 pounds in the wake of Russia’s invasion.

Fertiliser prices have tripled versus last year, while the cost of carbon dioxide – used both to aid growing and in packaging – and hard-to-attain labour have also shot up.

“We are now in an unprecedented situation where the cost increases have far outstripped a grower’s ability to do anything about them,” said Jack Ward, head of British Growers.

It means a massive contraction for the industry, threatening Britain’s future food security, and further price rises for UK consumers already facing a bigger inflation hit than other countries in Europe following Brexit.

UK inflation hit a 30-year high of 6.2% in February and is forecast to approach 9% in late 2022, contributing to the biggest fall in living standards since at least the 1950s.

The National Farmers’ Union says the UK is sleepwalking into a food security crisis. It warns that UK production of peppers could fall from 100 million last year to 50 million this year, with cucumbers down from 80 million to 35 million.

In winter, the UK has typically imported around 90% of crops like cucumbers and tomatoes, but has been nearly self-sufficient in the summer.

The Lea Valley Growers Association, whose members produce about three-quarters of Britain’s cucumber and sweet pepper crop, said about 90% did not plant in January, while half have still not planted and will not plant if gas prices remain high.

“There’s definitely going to be a lack of British produce in the supermarkets,” association secretary Lee Stiles said. “Whether there’s a lack of produce overall depends on where and how far away the retailers are prepared to source it from.”

Growers in the Netherlands, one of Britain’s key salad suppliers, face similar challenges and have reduced exports.

Spain and Morocco do not heat their glasshouses to a large extent, but delivery to the UK in chilled lorries adds time and cost.

Joe Shepherdson of the UK’s Cucumber Growers Association said those growers that have planted are using less heat, but that reduces production and increases the risk of disease.

PRESSURE ON PRICES

Britain’s biggest supermarket groups, including Tesco, Sainsbury’s, Asda and Marks & Spencer (MKS.L), acknowledge the pressures in the market but say they are confident about supply, stressing their long-term partnerships with growers.

How far the increase in production costs will translate to higher prices on the shelf depends largely on whether supermarkets opt to absorb the difference themselves, or pass it on to consumers.

Smaller retailers buying from the market may struggle.

“Any cut in production from suppliers would undoubtedly put further pressure on prices,” said Andrew Opie, director of food and sustainability at retail industry lobby group the British Retail Consortium.

Growers want help from the government. They have lobbied for tax and levies on gas to be removed, but finance minister Rishi Sunak did not mention it in his spring budget last week.

Despite the dismal backdrop and after much soul-searching, Montalbano will plant a crop next month, fearing the loss of future contracts if he does not. He may gamble on the British weather, and grow his plants “cold”, with little or no heat.

“I feel like I have no choice, because if I don’t, then I lose my place,” he said, in a glasshouse that in a normal March would be packed with bushy green cucumber plants.

“Am I going to make anything out of it? I’ll be quite happy to break even this year,” he said.

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Reporting by James Davey; Editing by Kate Holton and Jan Harvey

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Intel CEO earned 1,711 times more than average company worker in 2021

March 30 (Reuters) – Intel Corp (INTC.O) Chief Executive Officer Pat Gelsinger earned 1,711 times as much as the average worker at the U.S. chipmaker in just 11 months since he joined in February last year, a regulatory filing showed on Wednesday.

Compared to Gelsinger, former CEO Bob Swan had earned 217 times more than the average Intel employee in 2020.

Gelsinger earned $178.6 million in 2021 with stock awards making up nearly 79% of his total compensation, which was about 698% higher than Swan’s 2020 pay.

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Executive pay has been rising in the United States. Apple Inc (AAPL.O) CEO Tim Cook earned 1,447 times the average employee’s salary at the tech giant in 2021. Shareholders of Apple approved the pay package despite proxy advisory firm Institutional Shareholder Services pushing against it.

Intel has asked shareholders to vote in favor of its executives’ compensation at the annual stockholder’s meeting on May 12. It did not immediately respond to a Reuters request for comment.

After Gelsinger took the reins at Intel, once a world leader in chip-making technology, he unveiled a turnaround strategy for the company to regain its dominance in the semiconductor industry, currently led by Taiwan’s Taiwan Semiconductor Manufacturing Co (2330.TW).

Intel’s shares rose 6.8% last year after declining about 17% the year before as the company faced a manufacturing crisis and struggled with competition. The shares were up 0.3% at $52.41 on Wednesday.

Earlier this month, Intel laid out the first details of a $88 billion investment plan spanning across six European Union countries including a massive investment in Germany. read more

Gelsinger was CEO of VMWare Inc (VMW.N) before he returned to Intel as its top boss. He had spent 30 years at Intel before leaving.

His compensation included one-time new-hire equity awards with a target value of about $110 million, according to the filing.

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Reporting by Chavi Mehta in Bengaluru; Editing by Shinjini Ganguli

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Russia bombs Ukraine cities, despite pledge to pull back from Kyiv

  • UK says some Russian units leave Ukraine to regroup
  • Reporters see ruins and bodies in retaken villages
  • Ukraine says Russia regrouping for offensive in east
  • ‘Ukrainians are not naive’ says Zelenskiy
  • Berlin warns gas supply threatened after Moscow demands roubles

MALA ROHAN/NEAR IRPIN, Ukraine, March 30 (Reuters) – Russian forces bombarded the outskirts of Kyiv and a besieged city in northern Ukraine on Wednesday, a day after promising to scale down operations there in what the West dismissed as a ploy to regroup by invaders suffering heavy losses.

Nearly five weeks into an invasion in which it has failed to capture any major cities, Russia had said on Tuesday it would curtail operations near Kyiv and the northern city of Chernihiv “to increase mutual trust” for peace talks.

“It’s not true,” Kyiv mayor Vitali Klitschko said in a video address to EU regional officials. “The whole night we listened to sirens, to rocket attacks and we listened to huge explosions east of Kyiv and north of Kyiv. There are immense battles there, people died, still die.”

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Intensified bombardment could be heard in Kyiv on Wednesday morning from suburbs where Ukrainian forces have regained territory in recent days. The capital itself was not hit, but windows rattled from the relentless artillery on its outskirts.

Reuters journalists southeast of Irpin, a Kyiv suburb which has seen intense fighting for weeks, heard frequent shelling and ordnance exploding on the ground and in the air. Ukrainians evacuating spoke of heavy shelling north of Irpin, shells landing in Irpin itself and dead bodies in the streets.

Ukraine and Western leaders had cautioned that Moscow’s apparent peace gesture at Tuesday’s talks in Istanbul was a cover for reorganizing forces that had failed to take Kyiv.

Russia’s defence ministry said on Wednesday its forces were regrouping near Kyiv and Chernihiv to focus on the “liberation” of the breakaway eastern Donbas region.

‘RUSSIA ALWAYS LIES’

Chernihiv’s Mayor Vladyslav Astroshenko said Russian bombardment of that city had intensified over the past 24 hours, with more than 100,000 people trapped inside with just enough food and medical supplies to last about another week.

“This is yet another confirmation that Russia always lies,” he told CNN, adding that 25 civilians had been injured in a “colossal mortar attack” in the city centre.

Reuters could not verify the situation in Chernihiv. Russia’s defence ministry did not immediately reply to a request for comment.

Irpin itself was recaptured by Ukrainian forces this week. Reuters journalists who entered on Tuesday saw Ukrainian troops patrolling an abandoned ghost town of ruined buildings, with the body of an old man and a woman lying on the streets.

Ukraine’s President Volodymyr Zelenskiy made clear he took nothing Moscow said at face value.

“Ukrainians are not naive people,” he said in an overnight address. “The only thing they can trust is a concrete result.”

Ukrainian Defence Ministry spokesman Oleksandr Motuzyanyk said Ukraine’s armed forces had observed some movements of Russian forces away from the Kyiv and Chernihiv regions but did not consider this to be a mass withdrawal by Moscow.

“It is preparing to resume offensive operations,” he said.

Around a quarter of Ukrainians have been driven from their homes by the biggest attack on a European country since World War Two. The United Nations said on Wednesday that the number who have fled the country had risen above 4 million. More than half of those refugees are children and the rest mostly women.

Over the past week, Ukrainian forces have recaptured towns and villages on the outskirts of Kyiv, broken the siege of the eastern city of Sumy and pushed back Russian forces in the southwest.

In the village of Mala Rohan in the eastern Kharkiv region, two burned-out tanks with their turrets ripped off stood near damaged houses. Maksym, a Ukrainian soldier, said the Russians were being pushed back “slowly but steadily”.

“I think their morale dropped. Most of them already understood that they made a huge mistake when they came here. Therefore, I think they have no chance here, we will win.”

ROUBLES ONLY

Russia says it is carrying out a “special operation” to disarm and “denazify” its neighbour. Western countries say Moscow’s invasion was entirely unprovoked.

The Donbas region, where Russia says it will now focus its efforts, includes Mariupol, where heavy fighting was again reported on Wednesday. read more The port city, which had a pre-war population of 400,000 people, has been laid waste after a month of Russian siege and the United Nations says thousands of people may have died.

Russian forces were shelling nearly all cities along the region’s frontline on Wednesday, said the governor of Donetsk, which is part of the Donbas.

Britain’s defence ministry said Moscow’s announcement about focusing on the Donbas was likely “a tacit admission that it is struggling to sustain more than one significant axis of advance”.

At Tuesday’s talks in Istanbul, Ukraine signalled it would accept neutral status, along with international guarantees to protect it from future attack. Its proposal also called for a ceasefire and would postpone discussion of Russia’s territorial demands.

Kremlin spokesman Dmitry Peskov said on Wednesday it was good to have the Ukrainian proposal in writing but there was no indication of a breakthrough. read more

Western sanctions have largely isolated Russia from world trade but Moscow is still the biggest supplier of oil and gas to Europe. Facing a sharp decline in its currency, Moscow has told Western buyers they will have to pay with roubles, something Western countries say breaks their contracts.

Germany, Russia’s biggest gas customer, declared an “early warning” on Wednesday of a possible emergency if Russia were to cut off supplies. read more

Economy Minister Robert Habeck urged consumers and companies to reduce consumption, saying “every kilowatt-hour counts”.

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Additional reporting by Natalia Zinets, Pavel Polityuk, Gleb Garanich and Reuters bureaux
Writing by Peter Graff and Philippa Fletcher
Editing by Frank Jack Daniel and Gareth Jones

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Putin advisers ‘too afraid to tell him the truth’ on Ukraine -U.S. official

Russian President Vladimir Putin chairs a meeting with members of the Security Council via a video link at the Novo-Ogaryovo state residence outside Moscow, Russia March 24, 2022. Sputnik/Mikhail Klimentyev/Kremlin via REUTERS/File Photo

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WASHINGTON, March 30 (Reuters) – Russian President Vladimir Putin was misled by advisers who were too scared to tell him how poorly the war in Ukraine is going and how damaging Western sanctions have been, a U.S. official said on Wednesday, citing declassified intelligence.

Russia’s Feb. 24 invasion of its southern neighbor has been halted on most fronts by stiff resistance from Ukrainian forces who have recaptured territory even as civilians are trapped in besieged cities.

“We have information that Putin felt misled by the Russian military,” leading him to mistrust the military leadership, the U.S. official said, speaking on condition of anonymity.

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“Putin didn’t even know his military was using and losing conscripts in Ukraine, showing a clear breakdown in the flow of accurate information to the Russian president,” the official said.

The official did not provide the intelligence report, but said the information had been declassified.

The Kremlin made no immediate comment after the end of the working day in Moscow, and the Russian embassy in Washington did not immediately reply to a request for comment.

Military analysts say Russia has reframed its war goals in Ukraine in a way that may make it easier for Putin to claim a face-saving victory despite a woeful campaign in which his army has suffered humiliating setbacks. read more

Russian forces bombarded the capital Kyiv and northern Chernihiv on Wednesday, a day after Russia promised to scale down military operations in both cities. read more

“We believe that Putin is being misinformed by his advisers about how badly the Russian military is performing and how the Russian economy is being crippled by sanctions, because his senior advisers are too afraid to tell him the truth,” the official said.

Russia says it is carrying out a “special operation” to disarm and “denazify” its neighbor. Western countries say Moscow launched an unprovoked invasion.

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Reporting by Steve Holland; Writing by Doina Chiacu; Editing by Chizu Nomiyama and Jonathan Oatis

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U.S. authorizes second COVID booster for Americans 50 and older

March 29 (Reuters) – U.S. health officials on Tuesday authorized a second COVID-19 booster dose of the two most commonly used COVID-19 vaccines for people age 50 and older, citing data showing waning immunity and the risks posed by Omicron variants of the virus.

The U.S. Food and Drug Administration agency said the new boosters – a fourth round of shots for most vaccine recipients – of the Pfizer Inc (PFE.N)/BioNTech SE (22UAy.DE) and Moderna Inc (MRNA.O) vaccines are to be administered at least four months after the previous dose. They are intended to offer more protection against severe disease and hospitalization.

The FDA also authorized a second booster dose of the vaccines for younger people with compromised immune systems – those aged 12 and older for the Pfizer/BioNTech shot and 18 and older for Moderna’s.

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The U.S. Centers for Disease Control and Prevention (CDC) backed the FDA’s authorization, recommending the additional shot, particularly for older people and those with underlying medical conditions that put them at higher risk.

The decision to offer second boosters in the United States comes as some scientists have raised concern about the highly contagious and newly predominant BA.2 Omicron subvariant, which has driven up COVID-19 cases in other countries.

“If it were my relatives, I would be sending them out to do this,” top FDA official Dr. Peter Marks said during a news conference of getting booster shots. “COVID-19 has had a really disproportional adverse effect on people 65 years of age and older and those with comorbidities.”

COVID cases in the United States have dropped sharply since a record surge in January, but have seen a small uptick over the past week, according to CDC data.

BROADER BOOSTER CAMPAIGN MAY BE NEEDED

Marks said the FDA will soon weigh the benefits of authorizing another round of boosters – perhaps specifically targeted to combat new variants of concern – to a broader population after the summer.

“There may be a need for people to get an additional booster in the fall along with a more general booster campaign, if that takes place, because we may need to shift over to a different variant coverage,” he said.

The FDA said it looked at data from a relatively small, ongoing clinical trial in Israel to help make its decision. In addition, safety data from more than 700,000 people who received second boosters in Israel revealed no new concerns, the agency said.

Scientists and officials have debated for months if and when an additional booster shot would be needed as they parsed data on how long protection from the vaccines and boosters would last. read more

“It’s not clear that now is the right time for people to get a fourth dose,” Dr. William Moss, executive director of the International Vaccine Access Center at the Johns Hopkins Bloomberg School of Public Health said.

If there is a surge in cases in late fall or early winter, as is typical for respiratory viruses and influenza, an additional boost may then be needed, he said. The body’s neutralizing antibodies spurred on by a fourth booster given now may decline in just a few months, he said.

It is also unclear whether young, healthy people will need a fourth shot. The study of Israeli healthcare workers cited by the FDA suggested that the fourth dose added little additional protection in the age group.

Biden administration officials have said that the U.S. government currently has enough doses of the vaccines to meet the demand for another round of booster shots in older Americans, even as funding for the U.S. pandemic response has all but run out.

They say that unless Congress approves more spending, the government will not be likely to be able to be pay for future inoculations, if they are needed, particularly if the vaccines need to be redesigned to target new variants.

Around two-thirds of fully vaccinated Americans over the age of 65 and just over half of people between the age of 50 and 64 have gotten their first booster dose so far.

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Reporting by Michael Erman in New Jersey, Manojna Maddipatla and Leroy Leo in Bengaluru, Additional reporting by Ahmed Aboulenein in Washington; Editing by Bill Berkrot

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U.S. senators try to avoid weeks-long delay in Russia trade measure

WASHINGTON, March 29 (Reuters) – U.S. senators scrambled on Tuesday to reach a compromise to avoid further delays before passing legislation revoking “most favored” trade status for Russia and Belarus over the invasion of Ukraine, after Republican lawmakers blocked efforts to pass it quickly.

Senate Democratic Majority Leader Chuck Schumer told reporters that Democratic Senator Ben Cardin and Republican Senator Rand Paul were trying to reach a compromise that would let the measure pass quickly, rather than through “regular order,” a process that could take weeks.

The bill stalled in the Senate despite lawmakers’ insistence that they want to show a united front in supporting the government in Kyiv, more than a month into the Russian invasion.

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Under U.S. law, Congress must approve the change in trade status.

The legislation has strong bipartisan support, having passed the House of Representatives by an overwhelming 424-8 earlier this month.

But in the Senate, it got ensnared in partisan fighting, first over Russian oil imports and more recently over abortion rights. read more

The measure passed by the House also reauthorizes the Global Magnitsky Human Rights Accountability Act, authored by Cardin, which allows the imposition of sanctions over human rights violations.

But the reauthorization has a slight change in wording. It now addresses “serious” human rights violations, having previously addressed “gross” ones.

The new Magnitsky language came from a 2017 executive order from former Republican President Donald Trump. But Paul argued that the new language in the bill gives too much power to a president to impose sanctions over human rights abuses, including that it could be used to sanction anyone who denied a woman access to an abortion.

Backers of the legislation dispute this.

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Reporting by Patricia Zengerle;
Editing by Alistair Bell

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Russia steps up economic retaliation with Eurobond rouble buyback offer

A view shows Russian rouble coins in this picture illustration taken October 26, 2018. Picture taken October 26, 2018. REUTERS/Maxim Shemetov

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  • Eurobond rouble payment offer revives default fears
  • Moscow does not say if bondholders must take roubles
  • Russia has already demanded gas payments in roubles
  • Move may help locals facing dollar payment restrictions

LONDON, March 29 (Reuters) – Russia retaliated in what it has called an “economic war” with the West on Tuesday by offering to buy back its $2 billion Eurobonds maturing next month in roubles rather than dollars.

The finance ministry offer on Eurobonds maturing on April 4, Russia’s biggest debt payment this year, follows Western moves to tighten sanctions against the country over its invasion of Ukraine and to freeze Moscow out of international finance.

Moscow, which calls its actions in Ukraine a “special military operation”, says Western measures amount to “economic war”. In response, it has already demanded foreign firms pay for Russian gas in roubles rather than dollars or euros. read more

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It was not immediately clear if bondholders would be forced to accept roubles if they rejected the offer, a move that would break the terms of the bond and would again raise the prospect of Russia’s first external sovereign default in a century.

Creditors said it might be aimed at helping Russian holders who now face restrictions in receiving dollar payments.

“This is a tender offer and not a final decision that these bonds will be paid in roubles. Perhaps, Russian authorities want to gauge investors’ willingness to accept payment in roubles?” said Seaport Global credit analyst Himanshu Porwal.

Tim Ash of BlueBay Asset Management, which is not a bondholder, said the move was part of a fight back by Russia’s central bank and finance ministry “to fend off default and stabilise markets and the rouble”.

Ash said the United States’ Office of Foreign Assets Control (OFAC), which enforces U.S. sanctions, “should make clear” it will not extend a deadline of May 25 for U.S. individuals or entities to receive payments on Russian sovereign bonds.

Russia’s finance ministry said in its statement on Tuesday that bondholders should submit requests to sell their holdings to the National Settlement Depository between 1300 GMT on March 29 and 1400 GMT on March 30.

SECURING PAYMENT

The Eurobonds would be bought at a price equivalent to 100% of their nominal value, it said.

A fund manager said the ministry’s offer might be designed to help Russian investors secure payment because Euroclear, an international settlement system, had been blocking dollar payments to the Russian clearing system.

“Everybody wants dollars right now – in and outside Russia – so I would assume that only local holders and local banks that have issues with sanctions will make use of this operation,” said Kaan Nazli, portfolio manager at Neuberger Berman, which recently reduced its exposure to Russian sovereign debt.

Nazli, who said he had not previously seen a buyback that switched the repayment currency, added that foreign investors were unlikely to be interested given the rouble “is no longer a convertible currency.”

The rouble initially crumbled after the West imposed sanctions, plunging as much as 40% in value against the dollar since the start of 2022. It has since recovered and was trading down about 10% in Moscow on Tuesday.

The finance ministry did not provide a breakdown of foreign and Russian holders of the Eurobond-2022. It did not respond to a request about how much of the outstanding $2 billion it wanted to buy back or what would happen if investors refused the offer.

The bond has a 30-day grace period and no provisions for payments in alternative currencies, JPMorgan said.

According to Refinitiv database eMAXX, which analyses public filings, major asset managers such as Brandywine, Axa, Morgan Stanley Investment Management, BlackRock were recently among the holders of the bond coming due on April 4.

The finance ministry had said earlier on Tuesday it had fully paid a $102 million coupon on Russia’s Eurobond due in 2035, its third payout since Western sanctions called into question Moscow’s ability to service its foreign currency debt.

Russian sovereign debt repayments have so far gone through, staving off a default, although sanctions have frozen a chunk of Moscow’s huge foreign reserves. Russian officials have said any problem with payment that led to a formal declaration of default would be an artificial default.

Russia’s next payment is on March 31 when a $447 million payment falls due. On April 4, it also should pay $84 million in coupon a 2042 sovereign dollar bond . read more

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Reporting by Reuters; Writing by Edmund Blair; Editing by Alexander Smith and Carmel Crimmins

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Oil drops on positive signals from Russia-Ukraine peace talks

Storage tanks are seen at Marathon Petroleum’s Los Angeles Refinery, which processes domestic & imported crude oil into California Air Resources Board (CARB), gasoline, diesel fuel, and other petroleum products, in Carson, California, U.S., March 11, 2022. Picture taken with a drone. REUTERS/Bing Guan

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  • Ukraine-Russia continue peace talks after two weeks
  • Russian negotiator calls talks constructive
  • Pipeline outage forces Kazakhstan to cut output by a fifth
  • OPEC+ expected to stick to modest output rise
  • Shanghai locks down, seen hitting China oil demand

LONDON, March 29 (Reuters) – Oil prices dropped on Tuesday, extending losses from the previous day after Russia called peace talks with Ukraine constructive and China’s new lockdowns to curb the spread of the coronavirus hit fuel demand.

Brent crude fell $4.55, or 4%, to $107.93 a barrel by 1210 GMT, and U.S. West Texas Intermediate (WTI) crude was down $4.64, or 4.4%, at $101.32. Both benchmarks lost about 7% on Monday.

Ukrainian and Russian negotiators met in Turkey for the first face-to-face talks in nearly three weeks. The top Russian negotiator said the talks were “constructive”.

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Ukraine proposed adopting neutral status in exchange for security guarantees at the talks, meaning it would not join military alliances or host military bases, Ukrainian negotiators said. read more

“Oil prices are under pressure again on expectations about peace talks between Ukraine and Russia, which could lead to an easing of sanctions …” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

Sanctions imposed on Russia over its invasion of Ukraine have disrupted oil supplies, driving prices higher. read more

Prices also came under pressure after new lockdowns in Shanghai to curb rising coronavirus cases hit fuel demand in China, the world’s biggest importer.

Shanghai accounts for about 4% of China’s oil consumption, ANZ Research analysts said. read more

Lockdowns have dampened consumption of transportation fuels in China to a point where some independent refiners are trying to resell crude purchased for delivery over the next two months, traders and analysts said.

“China’s zero-COVID policy is bringing some relief to the oil market, albeit involuntarily, which is very tight due to the supply outages from Russia,” said Commerzbank analyst Carsten Fritsch.

Oil prices rose almost $2 earlier in the day as Kazakhstan’s supplies continued to be disrupted and major producers showed no sign of being in a hurry to boost output significantly.

Kazakhstan is set to lose at least a fifth of its oil production for a month after storm damage to mooring points used to export crude from the Caspian Pipeline Consortium (CPC), the energy ministry said.

The producer group OPEC+ was also expected to stick to its plan for a modest rise in May at this week’s meeting, despite a surge in prices due to the Ukraine crisis and calls from the United States and other consumers for more supply. read more

The energy ministers of Saudi Arabia and the United Arab Emirates, key members of OPEC+, said the producers’ group should not engage in politics as pressure mounted on them to take action against Russia over its invasion of Ukraine. read more

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Reporting by Yuka Obayashi in Tokyo and Bozorgmehr Sharafedin in London; Additional reporting by Sonali Paul in Melbourne; Editing by Edmund Blair, Kirsten Donovan and Emelia Sithole-Matarise

Our Standards: The Thomson Reuters Trust Principles.

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