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Trump downplayed drumbeat of intelligence warnings on Covid, report finds

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Beginning in late January 2020, U.S. intelligence agencies reported to senior Trump administration officials that the coronavirus spreading in China threatened to become a pandemic and spark a global health crisis.

But then-President Trump’s public statements over the next two months “did not reflect the increasingly stark warnings coursing through intelligence channels,” including the president’s daily brief, available to Trump and senior members of his administration, according to a report issued Thursday by the House Intelligence Committee.

By February, the intelligence community “had amply warned the White House in time for it to act to protect the country,” committee investigators concluded. Trump claimed in a May 2020 tweet that the intelligence community “only spoke of the Virus in a very non-threatening, or matter of fact, manner,” a statement that “simply does not match the record of intelligence analysis published in late January and February,” the committee found.

U.S. intelligence reports from January and February warned about a likely pandemic

Committee staff spent two years examining the intelligence community’s response to the covid-19 pandemic. Their report, which was staffed by bipartisan aides but written by the Democrats, who hold the majority on the committee, broadly praises the work of intelligence analysts for providing early warning about the virus for policymakers.

But the report also faulted the intelligence community for not being better prepared to provide comprehensive early warning based on exclusive intelligence. Agencies didn’t move in the outbreak’s early days to use their clandestine sources for collecting unique, potentially useful intelligence about the unfolding situation in China, the committee found. Doing so might have provided administration leaders with more insight than was available in public health channels and nonclassified sources of information.

Among the new steps the committee recommends the intelligence agencies take to prepare for the next pandemic is designating a new center with responsibility for global health security; enhancing intelligence agencies’ ability to quickly collect information when a new disease emerges; and providing more resources to the National Center for Medical Intelligence (NCMI), a component of the Defense Intelligence Agency that investigators found performed particularly well, but whose early warnings could have been more widely shared with decision-makers.

A spokesperson for the Office of the Director of National Intelligence declined to comment on the report.

Trump administration’s hunt for pandemic ‘lab leak’ went down many paths and came up with no smoking gun

Indications that a novel coronavirus might be spreading in China caught the attention of U.S. intelligence as early as Dec. 31, 2019, the committee found, when an analyst at the NCMI reviewed a notice shared on ProMED about a mysterious respiratory illness spreading in China, and that had been discussed on social media. The analyst uploaded the notice from ProMED, a publicly accessible system for monitoring disease outbreaks, into an intelligence database called Horizon, which disseminates reports to military intelligence directorates.

Labeled as a “possible pandemic warning update,” it was the first indication within the intelligence community of covid-19, which had not yet been named.

In the first week of January 2020, “alarming information was circulating throughout the U.S. government,” but most of it came from public health sources, the committee found.

On Jan. 7, the U.S. Embassy in Beijing took note in a cable of the growing outbreak. Some officials at the National Security Council wanted more information but were frustrated that the intelligence community couldn’t provide unique insights from its own clandestine sources.

Soon thereafter, intelligence analysts began focusing more on the disease and started to coordinate analysis for policymakers, the committee found. On Jan. 16, the embassy sent a cable saying that Chinese government officials were engaged in only “limited sharing” of epidemiological data, which was hindering assessments of the risk the virus posed.

The Washington Post previously reported that in January and February, as intelligence agencies ramped up their reporting on the outbreak, they warned that Chinese officials appeared to be minimizing its severity.

In the U.S., too, the president kept downplaying the coming storm.

On Jan. 22, Trump said in an interview with CNBC that the United States had the virus “totally under control,” a statement that didn’t reflect the “growing level of concern” in the intelligence community’s reports, the committee found. The next day, Trump was reportedly told about the virus in his daily intelligence briefing, and officials told the committee that an article was drafted for inclusion in the president’s daily brief, or PDB, a classified document shared with Trump and his senior advisers.

That day, the State Department ordered staff at the consulate in Wuhan and their families to evacuate China. One day later, the NCMI published an assessment that the virus had a “roughly even chance of becoming a global pandemic during the next four months.”

Intelligence agencies elaborate on theories of covid-19 origins

In a briefing with reporters on Thursday, a committee investigator noted that the World Health Organization didn’t declare a pandemic until nearly the middle of March. He said that the intelligence community’s earlier warning was a “classic example” of the way intelligence analysts can provide insights to decision-makers, which may be necessary for future pandemic response.

“Public health officials will wait until all the data is there before making a call,” said the investigator, speaking on the condition of anonymity under ground rules set by the committee. While the early warning the community provided wasn’t comprehensive, it was a notable example of “where the professional culture of intelligence analysts really shines through,” the investigator added.

The intensity and frequency of the alerts would soon grow. On Jan. 30, the CIA began preparing short intelligence reports called “executive updates” on the spread of the virus. A PDB from early February 2020 warned that covid “could not be contained.” Another report around the same time predicted that the virus would become a global crisis before May.

But the House committee could not determine precisely which reports Trump read or the totality of information that was presented to him. Historically, the executive branch resists sharing full copies of the PDB with investigators, as was the case here, the committee said.

“We don’t know exactly what went up to President Trump,” the investigator said, “but it’s not the intelligence community’s practice to tell the president one thing and the rest of the national security community another.”

The report did not investigate the origins of covid-19, which continue to be a subject of debate. Trump administration officials, led by former Secretary of State Mike Pompeo, advocated for the hypothesis that the virus originated in a lab in Wuhan and escaped possibly through an accidental transmission to lab workers. To bolster that claim, officials cited reporting that researchers at the Wuhan Institute of Virology became ill in the fall of 2019 with symptoms similar to covid-19.

But the House committee staff called those arguments “deeply misleading,” because the U.S. doesn’t know what made the workers sick and whether they had covid-19.

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RSV, flu and COVID-19: How can you tell the difference? Here’s when to see a doctor, stay home amid tripledemic warnings

SAN FRANCISCO — Doctors are seeing multiple different viruses circulate the community at increased rates.

The triple threat – or “tripledemic” – of influenza (flu), COVID-19 and respiratory syncytial virus (RSV) have many of the same symptoms in common, and it is hard to tell which one you’ve caught.

We talked to Dr. David Hoffman, pediatric hospitalist at MarinHealth Medical Center, to share his insights on how to tell them apart and when you should and shouldn’t worry.

“While it’s impossible to know for sure which one of these viruses you have without testing, there are some distinctive symptoms for each virus,” Dr. Hoffman said.

Here are some symptoms of each and a guide on what to do if you or a family member is falling sick.

Influenza

Overview

The flu typically comes on very suddenly with an incubation period of one to four days, unlike COVID-19, which tends to have a gradual onset of symptoms. Typically, people feel more miserable with the flu than with other types of viruses, and it often comes with a sore throat, nausea, body aches, vomiting, or even diarrhea. A distinctive sign of the flu can be a very high fever — as high as 103 or 104 Fahrenheit. Fever is just the body’s way of fighting the infection and is not dangerous in and of itself.

Dr. Rochelle Walensky, the CDC director, said, “Hospitalizations for flu continue to be the highest we’ve seen for this time of year in a decade. If you do get sick, present yourself to your provider for early care. There are good antivirals to treat both flu and COVID-19.”

The CDC is again suggesting people voluntarily wear masks indoors to reduce their chances of getting sick in the next few weeks.

It’s not too late to get both vaccines – experts say you start getting protection within a week with a booster.

Distinctive characteristic

The most distinctive sign of the flu can be a very high fever in the 103 to 104 range.

Flu symptoms include:

  • Fever
  • Chills
  • Headache
  • Runny nose
  • Nausea
  • Fatigue
  • Loss of appetite
  • Sore throat

COVID-19

Overview

“The coronavirus has become familiar to most of us, and the signs are similar to flu and RSV. To complicate it further, some people become very ill, while others have very mild symptoms, and others show no symptoms at all. While most people develop symptoms within the first week after exposure, symptoms can occur from two up to 14 days after exposure to the virus.”

Distinctive characteristic

“Unlike other viruses, COVID-19 can affect other areas of the body outside of the lungs and, in some instances, cause long-term effects,” Dr Hoffman says.

COVID-19 symptoms include:

  • Cough
  • Brief fever
  • Shortness of breath
  • Abdominal pain
  • Loss of taste or smell
  • Congestion
  • Fatigue
  • Sore Throat
  • Nausea or vomiting
  • Diarrhea
  • Muscle or body aches
  • Headache

RSV

Overview

RSV is a virus that many adults would have already caught and it generally just causes cold symptoms for adults. “If you think back to that cold that you got that just wouldn’t go away, you kept having congestion and perhaps a cough that lasted longer than usual, there’s a decent chance that that was RSV. And again, symptoms of flu can include fever, chills, headache, runny nose, or congestion, nausea, fatigue, loss of appetite and sore throat,” Dr. Hoffman said.

RSV causes a runny nose, congestion, and cough for most people. According to Dr. Hoffman, RSV has a greater likelihood of causing severe illness in very young children, especially those born premature or who have lung disease or heart disease. The most distinctive symptom that some children infected with RSV will exhibit is wheezing. Wheezing is a high-pitched sound with each exhalation.

“For most people, and even most kids, RSV doesn’t cause a dangerous illness. But it does in a subset of kids. Even kids with significant illness that require hospitalization are usually going to do just fine. Maybe they’ll need a little bit of oxygen, maybe they just need to be watched closely. RSV is most likely to cause significant or, you know, more concerning illness in very young children and very old adults,” Dr. Hoffman said.

Distinctive symptom

The most distinctive symptom that some children infected with RSV will exhibit is wheezing, a high-pitched sound, with each exhalation.

RSV symptoms include:

  • Runny nose
  • Decreased appetite
  • Coughing
  • Sneezing
  • Fever
  • Wheezing

When to see a doctor

Dr Hoffman says to seek medical care right away if these symptoms appear:

  • Trouble breathing
  • Pain or pressure in the chest
  • New confusion
  • Inability to wake up or stay awake
  • Bluish lips or face
  • Severe abdominal pain
  • Refusing to eat and drink

When should I keep my child home?

If your child is exhibiting any symptoms of RSV, flu, or COVID-19, health experts advise you to keep your child home from school to avoid spreading the virus to other people. It doesn’t matter which of the viruses is the culprit. Caution should be taken to prevent the spread.

Prevention: How to keep your child from getting sick

Prevention is the best medicine, particularly with these viruses. These suggestions are good ideas to avoid seasonal viruses:

  • Get your child vaccinated for flu, COVID-19, pneumococcus, and pertussis.
  • Wash your hands regularly or use hand sanitizer.
  • Sanitize high-contact surfaces, such as desks, tables, and doorknobs, if someone in your household is sick.
  • If your child is sick, have them stay home to avoid spreading the illness.

“Everyone’s talking about RSV but we do see other viruses in the community as well, like metapneumovirus, which can cause bronchitis or significant respiratory infection, or viral pneumonia. There are thousands of viruses that we don’t have tests for so we don’t know exactly which virus it is, but we’re definitely seeing more of many different respiratory infections,” Dr Hoffman said.

He says the most important message he wants to impart to parents is you can do a lot more harm to yourself by being overly concerned.

“By being anxious and increasing stress, you therefore are making yourself more susceptible to all types of illness, chronic disease, and infection,’ Dr. Hoffman says.

“That said, I do think that everyone should do whatever they can do to protect themselves from all of the respiratory illnesses and other vaccine preventable illnesses out there. He encouraged all pregnant mothers to get their pertussis vaccines during their pregnancy to ‘cocoon’ their unborn child, and preventing by preventing themselves from getting pertussis,” he says.

Similarly, he urged kids to get the pneumococcal vaccine (whooping cough).

“Get the COVID-19 and flu vaccine for kids and adults. The flu vaccine will make you perhaps feel like you have a very mild cold but that’s a lot better than getting seriously ill, or even dying from influenza. So a lot of people choose not to get the flu vaccine because they don’t like that. But really the benefits are much greater than the very small risks of getting the flu vaccine or the inconvenience of getting the flu vaccine,” Dr. Hoffman said.

“I don’t think that it’s a great idea to rush to your pediatrician’s office or your primary care provider’s office just to get tested, to try and figure out which one of these you have, aside from perhaps doing COVID-19 testing because most people who get RSV and flu and COVID-19 are going to do just fine. And so it’s really only about dictating whether or not you need to isolate strictly and for how long,” he said.

The fact is that these respiratory viruses tend to crop up with similar symptoms, such as cough, runny nose, and fever. Fortunately for most children, it doesn’t matter which of these, or the thousands of other viruses causing respiratory illnesses or colds, your child has. Most children will recover from all of these viruses on their own, without receiving medical treatment and without serious complications. If your child is sick, consider testing for COVID-19 first to inform if and how long you need to isolate your child at home.

Copyright © 2022 WPVI-TV. All Rights Reserved.



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FIA set to reduce use of black-and-orange flag warnings

Instead, the onus will be on the teams to ensure their cars remain operating in a safe manner even after sustaining damage in incidents and then prove this is the case to in-competition enquiries raised by the governing body.

The black-and-orange flag is used as an instruction to competitors ordering them to pit for repairs if they suffer damage and their continued participation is deemed unsafe, with drivers required to come in at the end of the lap after they receive the warning.

Its use in the 2022 season has made headlines since the 2022 US Grand Prix after the Haas team protested the results of Red Bull’s Sergio Perez and Alpine driver Fernando Alonso because it believed they had each finished the race while running with damage, contravening safety rules.

This followed Haas driver Kevin Magnussen receiving the black-and-orange flag instruction at three races earlier in 2022 – Canada, Hungary and Singapore – after he sustained damage to his front wing endplate in each of those races that left the part waving loose.

This was deemed unsafe by the FIA officials at those races and he duly came in for repairs.

But Haas was incensed, feeling it is being treated differently to other teams in this matter, when this did not happen for Perez in the race at Austin (his damaged endplate fell off five laps after his opening tour contact with Alfa Romeo driver Valtteri Bottas) and Alonso finished the race despite running for several laps with his right-side wing mirror bouncing loose and then falling off.

Haas’s protest against Perez was dismissed because Red Bull had supplied photos to the FIA to show the shorn endplate damage was not moving unsafely, which the FIA accepted and the stewards’ agreed with that call.

But the American squad’s protest against Alonso was initially found to be admissible and he was later handed a 30-second time addition that cost him his seventh-place finish last weekend.

Fernando Alonso, Alpine A522, collides with Lance Stroll, Aston Martin AMR22

Photo by: Carl Bingham / Motorsport Images

That was later rescinded following a long saga into the decisions around why Haas’s protest was allowed to proceed in the first place.

In the announcement that Alonso’s Austin penalty had been annulled, it was revealed that FIA president Mohammed Ben Sulayem had initiated a review into the future use of the black-and-orange flag.

Motorsport.com understands that this has been enacted in unanimous agreement with the F1 teams and follows the Austin stewards declaring that they were “concerned” that Alonso was allowed to continuing circulating with his wing mirror hanging loose.

This is central to the controversy of the use of the black-and-orange flag in 2022, as the incidents involving Magnussen follow the wording of the rule around its usage in the FIA’s sporting code, but confusion and anger has followed after it was not shown to Alonso at the Circuit of The Americas.

The FIA’s International Sporting Code on the flag’s usage states: “This flag should be used to inform the driver concerned that his car has mechanical problems likely to endanger himself or others and means that he must stop at his pit on the next lap.

“When the mechanical problems have been rectified to the satisfaction of the chief scrutineer, the car may rejoin the race.”

The black-and-orange flag usage was discussed at a meeting of the F1 team managers at the Autodromo Hermanos Rodriguez track ahead of opening practice for the 2022 Mexico City GP on Friday.

The ongoing discussion concerns how the flag will be used at coming events, with the understanding that officials will now be less inclined to automatically give the warning as F1 teams have so much data to prove a part, even if damaged, is not going to suddenly become a safety problem.

This leaves F1 in a different arrangement with other categories covered by the ISC, where the corresponding lack of data means drivers may be running unaware they have damage and so the onus is on race officials to get them to stop for repairs to ensure safety.

It is understood that no rule changes for F1 are planned as a result of the FIA review, with the governing body instead set to leave the onus on the teams to ensure their cars are running in safe manners at all times – although it will step in and make immediate enquiries in cases where damage is clearly visible.

One problem with this approach could be where disagreements arise in how safe damaged cars continue to be following incidents such as Alonso’s with Lance Stroll at Austin, with competitors naturally inclined to push the limit of the rules and other teams likely to object to gain a competitive edge.

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Ukraine war: Ukrainian army approaches Kherson, Russian ‘evacuations’, dam warnings

1. Ukrainian forces approach Kherson

Russian and Ukrainian troops are preparing for a major battle over the strategic southern city of Kherson, the centre of one of four regions Russian President Vladimir Putin has illegally annexed and subjected to martial law.

Fighting and evacuations were reported in the Kherson region on Thursday as Moscow tried to pound Ukraine into submission with more missile and drone attacks on critical infrastructure.

Putin declared martial law on the annexed regions of Kherson, Luhansk, Donetsk and Zaporizhzhia on Wednesday, in an attempt to assert Russian authority, amid battlefield setbacks, a troubled troop mobilisation, increasing criticism at home and abroad, and international sanctions.

The unsettled status of the annexed territories was visible in the Kherson region’s capital, where Russian military officials have replaced Kremlin-installed civilian leaders as part of martial law measures. 

President Volodymyr Zelenskyy’s office said on Thursday that Ukrainian forces mounted 15 attacks on Russian military strongholds in the Kherson region. 

As many as 2,000 Russian draftees have entered the Kherson region “to replenish losses and strengthen units on the front line,” according to Ukraine’s Army General Staff.

Russia’s Defence Ministry spokesman said Kremlin forces repelled Ukrainian attempts to advance with tanks on the Kherson villages of Sukhanove, Nova Kamianka and Chervonyi Yar.

Russia’s new military commander in Ukraine this week acknowledged the threat posed by Ukraine’s counteroffensive to Kherson.

General Sergei Surovikin claimed that Ukrainian forces were using HIMARS rockets to strike the city, adding that “as a whole the situation in the [war] zone can be described as tense.”

UK Defence Ministry said on Thursday that Russian authorities are considering “a major withdrawal of their forces” from all areas west of the Dnipro river.

2. Russia resumes ‘evacuations’ from Kherson

Russian-installed officials have urged residents in Kherson to “evacuate”, both for their safety and to allow the military to fortify.  

Kremlin-backed governor Vladimir Saldo said authorities were moving civilians to “keep people safe” and allow the military to “act resolutely”.

Others have claimed these “evacuations” of Ukrainian civilians to Russian-controlled territories are forced or that people have no alternative route to safety. 

Officials said some 15,000 residents had been relocated from the city and surrounding areas as of Thursday.

Kherson city, with a pre-war population of around 284,000, was one of the first urban areas Russia captured when it invaded Ukraine, and it remains the largest city it holds. 

It is a prime target for both sides because of its key industries and major river port. 

Reports of sabotage and assassinations of Moscow-backed officials in Kherson have surfaced for months in what appeared to be one of the most active Ukrainian resistance movements in occupied territory.

Moscow’s plans are to move approximately 10,000 people over the course of six days.

3. EU agrees to increase its financial support to Ukraine

European Union leaders approved a plan to provide Ukraine with €18 billion in financial support over the next year.

This comes after Zelenskyy’s warnings that Russia is trying to spark a refugee exodus by destroying Ukraine’s energy infrastructure.

As a result of the plan, the 27-nation bloc would now match US financial support for the war-torn Eastern European country.

“Ukraine is telling us that they need approximately €3-4 billion per month to have enough resources for the basics,” European Commission President Ursula von der Leyen said. 

That figure would be met in equal part by the EU and the US, with additional money coming from international financial institutions, she said. 

“It is very important to Ukraine to have a predictable and stable flow of income,” von der Leyen told reporters. 

She said the EU is looking to provide about €1.5 billion each month, describing it as a funding amount that would be “stable and reliable.”

The bloc’s finance ministers have been tasked with coming up with a system for pulling together the money, which would come on top of the €9 billion in macro-financing support that the EU is already sending.

4. Zelenskyy urges West to pressure Russia into not destroying dam

Volodymyr Zelenskyy urged the West to warn Russia not to blow up a huge dam that would flood a large part of southern Ukraine, as his forces prepare to push Moscow’s troops from Kherson in one of the war’s most important battles.

In a television address, the Ukrainian president said Russian forces had planted explosives inside the huge Nova Kakhovka dam, which holds back an enormous reservoir, dominating much of southern Ukraine. 

A Russian-installed official in the region, Vladimir Leontyev, said on Thursday that Ukrainian forces had launched five missile strikes against the dam and hydroelectric power station about 70 kilometres from Kherson city.

He said on Russian TV that if the facilities were destroyed, a critical canal providing water to annexed Crimea would be cut off.

Zelenskyy has claimed Russia mined the dam and power station, with plans to blow them up in what he called a terrorist act. 

The Ukrainian president warned this could unleash 18 million cubic metres of water, flooding Kherson and dozens of areas where hundreds of thousands of people live. He told the European Council Russia would then try to blame Ukraine.

5. Putin fires rifle as he inspects mobilisation training ground

Putin on Thursday inspected a training ground for mobilised troops and was shown firing a sniper rifle in footage that supposedly intended to show his personal support for Russian soldiers heading to Ukraine.

The Russian president visited the centre, located southeast of Moscow, along with defence minister Sergei Shoigu.

Footage from the event shows a figure who appeared to be Putin lying flat on the ground and firing a rifle. 

In the next frame, he could be seen dusting down his overcoat, slapping a soldier on the shoulder and wishing him good luck.

The visit came a day after Putin declared martial law in the four Ukrainian regions annexed by Russia. 

Conscription efforts thus far have been described as chaotic, with a wide range of mistakes and call-up papers being sent to the wrong individuals.

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Saudi Arabia Defied U.S. Warnings Ahead of OPEC+ Production Cut

RIYADH, Saudi Arabia—Days before a major oil-production cut by OPEC and its Russia-led allies, U.S. officials called their counterparts in Saudi Arabia and other big Gulf producers with an urgent appeal—delay the decision for another month, according to people familiar with the talks. The answer: a resounding no.

U.S. officials warned Saudi leaders that a cut would be viewed as a clear choice by Riyadh to side with Russia in the Ukraine war and that the move would weaken already-waning support in Washington for the kingdom, the people said.

Saudi officials dismissed the requests, which they viewed as a political gambit by the Biden administration to avoid bad news ahead of the U.S. midterm elections, on which control of Congress hangs. High gas prices and inflation have been central issues in the campaign.

Instead, the people said, the kingdom leaned on its OPEC allies to approve the cut, which is aimed at reducing production by 2 million barrels a day.

Adrienne Watson,

a National Security Council spokeswoman, rejected Saudi contentions that the Biden administration efforts were driven by political calculations. U.S. officials questioned a Saudi analysis that the price of oil was about to plunge and urged them to wait and see how the market reacted. If the price did collapse, U.S. officials told their Saudi counterparts, OPEC+ could react whenever they needed.

“It’s categorically false to connect this to U.S. elections,” Ms. Watson said. “It’s about the impact of this shortsighted decision to the global economy.”

President Biden visited Saudi Arabia in July with the goal of repairing relations with the kingdom.



Photo:

Evan Vucci/Associated Press

National Security Council spokesman

John Kirby

said Tuesday that President Biden believes that the U.S. should review the relationship with Saudi Arabia in light of the OPEC+ decision, “and take a look to see if that relationship is where it needs to be and that it is serving our national security interests.” He said the president was willing to discuss the bilateral relationship with members of Congress.

On Tuesday Prince Faisal bin Farhan, the Saudi foreign minister, said the OPEC+ decision was purely economic and had no political dimensions. The alliance seeks to stabilize energy markets and advance the interests of producers and consumers, he said in an interview with Saudi-owned Al Arabiya television.

Prince Faisal said relations with the U.S. are long standing and strategic and that military cooperation between the two countries has contributed to peace and stability in the region.

U.S. officials said the OPEC+ decision was unhelpful as inflation driven by high energy prices threatens global growth and represents an economic weapon against the West for Russian President Vladimir Putin. It threatens to drive up American gasoline prices ahead of the Nov. 8 midterms.

The one-month delay requested by Washington would have meant a production cut made in the days before the election, too late to have much effect on consumers’ wallets ahead of the vote.

High oil prices have been beneficial for OPEC+, an alliance of oil-producing countries that controls more than half of the world’s output. WSJ’s Shelby Holliday explains what OPEC+ countries are doing with the windfall and why they aren’t likely to distance themselves from Russia. Illustration: Adele Morgan

Since the OPEC+ decision, the White House vowed to fight OPEC’s control of the energy market. Lawmakers from across the political spectrum called on the U.S. to cut off arms sales to Saudi Arabia. And U.S. officials started looking for ways to punish Riyadh.

In one of its first responses, U.S. officials said, the Biden administration is weighing whether to withdraw from participation in Saudi Arabia’s flagship Future Investment Initiative investment forum later this month. According to people familiar with the matter, the U.S. has pulled out of a working group meeting on regional defenses next week at the Gulf Cooperation Council, based in Saudi Arabia.

Mr. Biden’s visit to Saudi Arabia in July was meant to repair relations after the president entered office with a vow to treat the kingdom as a pariah over human rights, particularly the 2018 killing of Saudi journalist Jamal Khashoggi at the hands of Saudi agents.

Images of the president’s fist bump with Crown

Prince Mohammed

bin Salman became a polarizing symbol of the trip.

But according to people inside the Saudi government, Mr. Biden’s July visit did little to change Prince Mohammed’s determination to chart a foreign policy independent of U.S. influence, in a break from almost 80 years of American-Saudi partnership.

If anything, said the people inside the Saudi government, the visit angered Prince Mohammed, who was upset that Mr. Biden went public with his private comments to the Saudi royal over Mr. Khashoggi’s death, which prompted Saudi officials to publicly contradict Mr. Biden’s characterization of their interaction.

U.S. officials said they saw no indications in their talks with Saudi leaders in recent months that Mr. Biden’s comments about Mr. Khashoggi had been damaging to ties.

Saudi Arabia’s Prince Abdulaziz bin Salman, in white at last week’s OPEC+ gathering, lobbied other oil ministers to outdo September’s production cut, delegates said.



Photo:

christian bruna/EPA/Shutterstock

Prince Mohammed—who runs the kingdom day to day for his father,

King Salman

—has tried to maximize Saudi Arabia’s economic strength. With high energy prices, the kingdom’s economic growth this year is estimated by the IMF at more than 10%—making it one of the best performers globally.

Prince Mohammed has told advisers that he isn’t willing to sacrifice much for the Biden administration, said the people inside the Saudi government, citing its critical view of the Saudi war in Yemen, bid to close a nuclear deal with Iran that Riyadh opposes and Mr. Biden’s own comments on the prince.

In August, the Saudis had planned to push OPEC+ to raise oil production by 500,000 barrels a day in an effort to please Mr. Biden, but Prince Mohammed ordered the increase lowered to a token 100,000 barrels a day after the Biden visit, the people inside the Saudi government said.

The U.S. State Department’s energy-security envoy,

Amos Hochstein,

sent the Saudi energy minister,

Prince Abdulaziz

bin Salman, an email that suggested he had broken his word promising a larger increase, people familiar with the matter said.

The email angered Prince Abdulaziz and strengthened his resolve to forge an oil policy independent of the U.S., the people said.

In September, Prince Abdulaziz engineered OPEC+’s first production cut since the pandemic, erasing the 100,000 barrels a day increase from August. Then, before the Oct. 5 OPEC+ meeting, Prince Abdulaziz called Persian Gulf oil chiefs and urged them to back a bigger cut, OPEC+ delegates said.

He cited a Western plan for an oil-price cap as a direct attack on crude producers, according to OPEC+ delegates. “It’s us against them,” he told at least two Gulf oil ministers in phone calls, according to the delegates.

U.S. officials launched an intense lobbying campaign to persuade Saudi Arabia to delay its plans, people familiar with the matter said. White House officials held multiple calls with Prince Mohammed, the people said, and Treasury Secretary

Janet Yellen

spoke to the Saudi finance minister.

The United Arab Emirates, another significant OPEC producer, opposed the production cut and advocated privately for a one-month delay, in line with U.S. requests, said people familiar with its position. In the days leading up to the Oct. 5 OPEC+ meeting in Vienna, Emirati officials communicated intensely with their Saudi and U.S. counterparts in an effort to prevent the decision, the people said.

Kuwait, Iraq and Bahrain also pushed back privately against the proposed cut, arguing it could trigger a recession that would sap oil demand, but all these countries ultimately went ahead with the decision in order to preserve unity within OPEC+, U.S. and regional officials said.

U.S. officials said they were blindsided by the size of the cut, believing OPEC+ would only cut one million barrels a day.

Russia had lobbied the Saudis to enact the production cut, OPEC+ delegates said. Kremlin spokesman Dmitry Peskov called the OPEC+ decision “balanced, thoughtful and planned work of the countries.”

The White House has said the OPEC+ decision shows that the group is clearly aligned with Russia now. U.S. officials warned that the Saudi move could imperil more than $100 million in active foreign military sales that Riyadh is seeking from the U.S.

U.S. lawmakers announced plans to reintroduce a bill to immediately suspend arms sales to Saudi Arabia. Any hopes the Saudis had of securing more precision guided missiles from the U.S. have been all but quashed, U.S. officials said.

Some U.S. lawmakers want to pull American troops out of Saudi Arabia. And Senate leaders from both parties are backing a bill that would allow the Justice Department to sue Saudi Arabia and other OPEC nations for illegal price fixing.

Among those calling on the U.S. to punish Saudi Arabia for the move was U.S. Sen.

Robert Menendez,

(D., N.J.), who vowed to use his position as chairman of the Senate Foreign Relations Committee to block any future arms sales to the kingdom. 

“There simply is no room to play both sides of this conflict—either you support the rest of the free world in trying to stop a war criminal from violently wiping off an entire country off of the map, or you support him,” he said. “The Kingdom of Saudi Arabia chose the latter in a terrible decision driven by economic self-interest.”

Saudi officials said the OPEC+ production cut was necessary to protect their economy.

By early October, oil prices had fallen over 30% from a peak in June, and were threatening to fall below $80 a barrel. Saudi Arabia is likely to need $76-$78 a barrel to balance its budget next year, economists say, based on preliminary forecasts.

Brent crude traded at $94.01 on Tuesday, up 13% since hitting a low of $82.86 on Sept. 26.

Saudi officials told their American counterparts that they believed the oil market could collapse if they didn’t act, and fall to $50 a barrel—a move they feared would imperil the kingdom’s Vision 2030 economic plan to diversify its economy, said people familiar with the matter.

To entice the Saudis to delay their decision, U.S. officials told the kingdom they would buy oil on the market to replenish Washington’s strategic stockpiles if the price of Brent, the main international benchmark, fell to $75 a barrel, according to U.S. officials and people inside the Saudi government.

Such a large American purchase of oil could have put a floor on prices. The Saudis refused the offer.

—Nancy A. Youssef, Timothy Puko and Michael Amon contributed to this article.

Write to Summer Said at summer.said@wsj.com, Benoit Faucon at benoit.faucon@wsj.com, Dion Nissenbaum at Dion.Nissenbaum@wsj.com and Stephen Kalin at stephen.kalin@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Live stock market news: Stocks choppy as recession warnings mount, Uber and Lyft react to gig worker proposal, Amazon’s Prime Day

Symbol Price Change %Change
I:DJI $29,202.88 -93.91 -0.32
SP500 $3,612.39 -27.27 -0.75
I:COMP $10,542.10 -,110.30 -1.04

U.S. stocks whipsawed early Tuesday morning as investors voice concerns about the Federal Reserve tightening rates and making borrowing more difficult.

Stocks fell Monday, continuing a stretch of volatility as concerns about Federal Reserve tightening, escalation in the Ukraine war, and China-trade policy shake markets. 

The S&P 500 turned lower after opening with slight gains, shedding 27.27 points, or 0.7%, to close at 3612.39. The Dow Jones Industrial Average edged down 93.91 points, or 0.3%, to 29202.88 while the Nasdaq Composite fell 110.30 points, or 1%, to 10542.10. That’s the lowest closing value for the tech-heavy Nasdaq since July 2020, according to Dow Jones Market Data.

Shares of chip-manufacturers suffered losses stemming from the Biden administration’s new restrictions imposed on semiconductor exports, aimed at hampering China’s military.

The PHLX Semiconductor Sector dropped 3.5% on Monday to its lowest closing level since November 2020. Those losses also helped drag down stocks for businesses that are major chip users.

“The new restrictions placed on selling semiconductors to China are big reason why we are seeing the downtrend in those stocks,” said Randy Frederick, managing director of trading and derivatives at Schwab Center for Financial Research.

Technology stocks represent about one-fourth of the S&P 500, noted Mr. Frederick. Chip maker Qualcomm sank $6.31, or 5.2%, to $114.60 on Monday while Broadcom fell $22.78, or 5%, to $437.70. Technology was the worst performer among the S&P 500’s 11 sectors, down 1.6%.

Shifting expectations about more interest-rate increases from the Fed have been the primary driver of recent stock-swings.

Friday’s jobs report showed the labor market is still tight as the unemployment rate fell back to a half-century low, exacerbating concerns that the Fed could tighten financial conditions more aggressively.

Hopes for a “Fed pivot” — in which the central bank would pause interest-rate increases and jolt stocks higher — have largely been dashed.

Traders now expect the benchmark federal-funds rate to touch 4.7% by the second quarter of 2023, according to FactSet derivatives data, more aggressive than the Fed’s own forecasts.

“Inflation is still high and the labor market is red hot — there’s nothing to suggest the Fed will be dovish or pivot for at least several months,” said Michael Antonelli, market strategist at Baird. Investors are looking ahead to the next U.S. inflation data release Thursday as another important indicator for where monetary policy might be headed.

“There’s still that hangover in markets. The U.S. labor market is still incredibly strong and the Fed has a single mandate right now: inflation, ” said Fahad Kamal, chief investment officer at Kleinwort Hambros. “The most important number in the world right now” is the coming inflation figure, he said.

Meanwhile, Asian shares were mostly lower on Tuesday as losses in technology-related shares weighed on global benchmarks. 

Taiwan dropped 4.4% after reopening from a holiday in the first trading session since the U.S. imposed new limits on exports of semiconductors and chip-making equipment to China. TMSC, the world’s biggest chipmaker, plunged 8.3%. 

Japan’s Nikkei 225 declined 2.6% to 26,401.25. South Korea’s Kospi lost 1.8% to 2,192.07. Both markets also were reopening after holidays on Monday. Hong Kong’s Hang Seng dropped 2.2% to 16,830.73. The Shanghai Composite gained 0.2% to 2,979.79, while Australia’s S&P/ASX 200 lost 0.3% to 6,645.00. 

“Japan and South Korean markets are catching up to previous global market losses, with their exposure to the tech sector spurring a greater extent of the sell-off as mirrored in Wall Street,” Yeap Jun Rong, a market strategist at IG in Singapore, said in a report. 

In a bit of encouraging news, Japan reopened to generally unrestricted tourism on Tuesday after more than two years of COVID-19 restrictions. Pent-up travel spending could help lift the world’s third largest economy as it grapples with slowing global growth and inflation.



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Hurricane Julia: Nicaragua braces amid flash flood and mudslide warnings | Nicaragua

Hurricane Julia swept by just south of Colombia’s San Andres island on Saturday evening soon after strengthening from a tropical storm, as Nicaraguans rushed to prepare for the storm’s arrival on their coast overnight.

After gaining power throughout the day, Julia’s maximum sustained winds had increased to 120km/h (75mph) by Saturday evening, the US National Hurricane Center said.

The storm was centred about 30km west-southwest of San Andres and 200km east-northeast of Bluefields, Nicaragua, and was moving west at 28km/h.

The Colombian president, Gustavo Petro, had declared a “maximum alert” on San Andres as well as Providencia islands to the north and asked hotels to prepare space to shelter the vulnerable population.

Officials on San Andres imposed a curfew for residents at 6am Saturday to limit people in the streets. Air operations to the islands were suspended.

Similar precautions were under way in the central area of Nicaragua’s Caribbean coast, where authorities issued an alert for all types of vessels to seek safe harbour. The hurricane was on a general path to the area of Bluefields and Pearl City.

Nicaraguan soldiers deployed to help evacuate inhabitants of islands and cays around the town of Sandy Bay Sirpi. The army said it delivered humanitarian supplies to Bluefields and Laguna de Perlas for distribution to 118 temporary shelters.

Forecasters said a greater threat than Julia’s winds were rains of 13-25cm (5-10in) – up to 38cm in isolated areas – that the storm was expected to dump across Central America.

Palm trees are buffeted ahead of Julia’s arrival on San Andres Island, Colombia, on Saturday. Photograph: Michael Arevalo/AFP/Getty Images

“This rainfall may cause life-threatening flash floods and mudslides through this weekend,” the US National Hurricane Center said.

The storm’s remnants were forecast to sweep across Nicaragua and then skirt by the Pacific coasts of El Salvador and Guatemala, a region already saturated by weeks of heavy rains.

In Guatemala, officials said Julia could drench 10 departments in the east, centre and west of the country, an area that has been most affected by this rainy season and where the poorest people are concentrated.

From May to September, storms caused 49 confirmed deaths and six people were missing. Roads and hundreds of homes have been damaged, Guatemalan officials say.

In El Salvador, where 19 people have died this rainy season, the worst rainfall was expected Monday and Tuesday, said Fernando López, the minister of environment and natural resources.

Officials said they had opened 61 shelters with the capacity to house more than 3,000 people.

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Taiwan quake: Tsunami warnings issued after 6.9-magnitude earthquake

Japan’s Meteorological Agency has issued a tsunami warning for Miyako island in the East China Sea following the quake, which hit the Yujing district in rural Taiwan and had a depth of 10 kilometers.

Photos showed collapsed buildings in southern Taiwan following the powerful earthquake. The USGS initially registered it at 7.2, before downgrading it to 6.9.

Three people are trapped under the rubble of one building, the island’s official Central News Agency (CNA) reported. A fourth person was rescued.

About 20 passengers were evacuated after a train derailed in the area, but there were no casualties from the incident, the Taiwan Railway Administration said.

Kolas Yotaka, a former presidential spokeswoman who is running for local elections in Hualien county, said that damages were also reported at a local school.

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European stocks extend losses as slowdown warnings weigh

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LONDON, Sept 16 (Reuters) – European stocks dipped on Friday and Europe’s benchmark German 10-year bond yield hit its highest since mid-June as investors braced for a U.S. rate hike while warnings from the World Bank and the International Monetary Fund fanned fears of a slowdown.

The World Bank’s chief economist said on Thursday he was worried about a period of low growth and high inflation in the global economy. The International Monetary Fund said downside risks continue to dominate the global economic outlook but it is too early to say if there will be a widespread global recession. read more

Wall Street sold off on Thursday after U.S. economic data gave the Federal Reserve little reason to ease its aggressive rate-hike stance. read more

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The downbeat tone continued during Asian trading, with data showing that China’s property sector had contracted further last month. read more

As of 0815 GMT, the MSCI world equity index, which tracks shares in 47 countries, was down 0.5% on the day and set for its fourth consecutive day of losses. (.MIWD00000PUS)

Europe’s STOXX 600 was down 1.2% (.STOXX) and London’s FTSE 100 (.FTSE) edged 0.1% lower. Germany’s DAX was down 1.8% (.GDAXI). read more

Markets priced in a 75% chance of a 75-basis-point rate hike and a 25% chance of 100 bps when the Fed meets next Wednesday.

In the UK, retail sales fell more than expected, in another sign that the economy is sliding into recession as the cost-of-living crisis squeezes households’ disposable spending. read more

“We’re now seeing data confirm that the economy is indeed slowing down,” said Axel Rudolph, market analyst at IG Group.

“I expect stocks to head back down to below their March lows. If you are in an environment where you have central banks that aggressively raise rates, historically this has always led to bear markets.”

The pound weakened to a 37-year low against the U.S. dollar . read more

The U.S. dollar index was up 0.3% at 110.13 , still hovering near a 20-year high, and steady against the yen at 143.365 .

The yen could hurtle towards three-decade lows before the year-end, according to market analysts and fund managers. read more

The dollar’s strength pushed China’s offshore yuan past the 7-per-dollar level for the first time in nearly two years. read more

The euro was a touch lower at $0.9961 . Germany’s two-year bond yields hit a fresh 11-year high after the European Central Bank vice president said an economic slowdown in the euro zone would not be enough to control inflation and the bank will have to keep raising interest rates. read more

Germany’s benchmark 10-year bond was up 3 basis points on the day at 1.765% – having touched its highest since mid-June in early trading .

Oil prices edged higher, but were on track for a weekly drop amid fears of a reduction in demand. read more

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Reporting by Elizabeth Howcroft; Editing by Sherry Jacob-Phillips

Our Standards: The Thomson Reuters Trust Principles.

Elizabeth Howcroft

Thomson Reuters

Reports on the intersection of finance and technology, including cryptocurrencies, NFTs, virtual worlds and the money driving “Web3”.

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Target Misses On Earnings After Walmart Beat Views, Amid Warnings

Target (TGT) missed on earnings views but met revenue expectations Wednesday, with the retail giant reaffirming guidance for the second half of the year after slashing guidance in June. TGT’s financial report comes a day after Walmart (WMT) beat lowered earnings and sales predictions. TGT stock dropped early Wednesday morning.




X



Target Earnings

Estimates: Wall Street forecasted Target would earn 79 cents per share on $26 billion in sales. Same store sales were projected to be around 3%.

Results: Target earned 39 cents per share, a 89% drop year-over-year. The company reported a 3% bump in revenue with $26 billion in the second quarter. Same store sales grew 2.6% in Q2 and its operating income margin was 1.2%.

Target maintained its full-year revenue guidance of growth in the low- to mid-single digits. It also expects an operating margin rate around 6% in the second half of 2022.

“I’m really pleased with the underlying performance of our business, which continues to grow traffic and sales while delivering broad-based unit-share gains in a very challenging environment,” CEO Brian Cornell said in a news release.

In early June, Target had downgraded its second-quarter guidance. The Minneapolis-based company slashed its Q2 operating margin forecast to 2%, down from 5.3%.

The company also announced it is planning price increases to address “unusually high transportation and fuel costs.” In addition, Target also reported its intent to cull excess inventory and cancel orders before the end of the second quarter.

“While these inventory actions put significant pressure on our near-term profitability, we’re confident this was the right long-term decision in support of our guests, our team and our business,” Cornell said Wednesday.

Target made the decisions after it missed earnings estimates, guided lower on profit and reported large stockpiles of unsold goods in the first quarter. Those results sent Target stock to its lowest level since September 2020.

Target stock dropped more than 3% before Wednesday’s market trading. On Tuesday, shares climbed 3.9% to 180.15 Tuesday. TGT stock has scaled back above 10-week support, but is still some distance from a declining 50-day line.

 

Walmart Earnings

Estimates: Analysts predicted Walmart earnings to drop 9% to $1.62 per share. Analysts’ revenue target is $150.9 billion, up 7%.

Results: Walmart earned $1.77 per share vs. $1.78 a year earlier. Revenue grew 8.4% to $152.9 billion. Much of that sales gain reflects higher prices, which are response to rising costs.

Walmart reported weak fiscal Q1 results and guidance on May 17, then followed up with another warning on July 26.

The retail giant found itself with unwanted big-ticket items like TVs, as inflation-hit shoppers shifted to cheaper staples vs. discretionary goods spending.

On Tuesday, Walmart signaled it’s getting a handle on its inventory.

“The actions we’ve taken to improve inventory levels in the U.S., along with a heavier mix of sales in grocery put pressure on profit margins for Q2 and our outlook for the year,” CEO Doug McMillon said in a statement.

Executives told analysts Tuesday that Walmart canceled billions of dollars in orders to help align inventory levels with expected demand. Fewer goods and higher prices resulted in strong revenue as Walmart reported that “mid-to higher-income customers” are flocking to its stores.

Outlook: The Dow Jones retail giant still expects Walmart U.S. same-store sales to rise 3% excluding fuel in the second half of the year, or 4% for the full year. Based on current exchange rates, the company said it predicts a headwind of about $2.1 billion in the second half of 2022.

Walmart sees full-year adjusted EPS down 9%-11%. In July, the discount giant slashed estimates, predicting EPS would fall 11%-13%. Analysts have projected full-year earnings of $5.69 per share, down 11.9%.

For Q3, Walmart expects net sales growth of about 5% along with a 9%-11% decline in adjusted EPS.


Is Walmart A Buy Or A Sell Right Now?


Walmart stock rose 5.1% to 139.39 on Tuesday. Shares are above their 50-day line and are working toward their 200-day average, according to MarketSmith analysis.

The stock has a 48 Composite Rating out of 99. It has a 33 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The stock’s EPS rating is 69.

More Retail Earnings

Walmart and Target earnings are part of a big week for retail stocks. Others due to report during the week include off-price specialists TJX (TJX) and Ross Stores (ROST).

Walmart’s Dow Jones peer Home Depot (HD) topped Q2 views early Tuesday, with rival home improvement chain Lowe’s (LOW) on tap Wednesday.

The annual rate of inflation in July dropped to 8.5%, down from 9.1% in June. The deceleration owed largely to decreasing gas prices, but federal data shows the prices of food and other goods are still on the rise.

Best Buy (BBY), Dollar Tree (DLTR) and Dollar General (DG) were among the other retail stocks that dropped on Walmart’s late July warning.

Target sits third, behind Walmart and Costco (COST), in the Retail-Major Discount Chains industry group. The stock has a Composite Rating of 48. Its Relative Strength Rating is 13 and its EPS Rating is 82.

Please follow Kit Norton on Twitter @KitNorton for more coverage.

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