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In world first, S.Africa’s Afrigen makes mRNA COVID vaccine using Moderna data

CAPE TOWN, Feb 3 (Reuters) – South Africa’s Afrigen Biologics has used the publicly available sequence of Moderna Inc’s (MRNA.O) mRNA COVID-19 vaccine to make its own version of the shot, which could be tested in humans before the end of this year, Afrigen’s top executive said on Thursday.

The vaccine candidate would be the first to be made based on a widely used vaccine without the assistance and approval of the developer. It is also the first mRNA vaccine designed, developed and produced at lab scale on the African continent.

The World Health Organization (WHO) last year picked a consortium including Afrigen for a pilot project to give poor and middle-income countries the know-how to make COVID vaccines, after market leaders of the mRNA COVID vaccine, Pfizer (PFE.N), BioNTech (22UAy.DE) and Moderna (MRNA.O), declined a WHO request to share their technology and expertise.

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The WHO and consortium partners hope their technology transfer hub will help overcome inequalities between rich nations and poorer countries in getting access to vaccines. Some 99% of Africa’s vaccines against all diseases are imported and the negligible remainder manufactured locally.

During the pandemic, wealthy countries have hoovered up most of the world’s supplies of vaccines.

Biovac, a partly state-owned South African vaccine producer, will be the first recipient of the technology from the hub. Afrigen has also agreed to help train companies in Argentina and Brazil.

In September, the WHO’s hub in Cape Town decided to go it alone after failing to bring on board Pfizer and Moderna, both of which have argued they need to oversee any technology transfer due to the complexity of the manufacturing process.

Moderna had no immediate comment on Afrigen’s announcement on Thursday.

Moderna’s vaccine was chosen by the WHO due to an abundance of public information and the company’s pledge not to enforce patents during the pandemic. It’s not clear what will happen after the pandemic ends and whether the company will try to enforce them again.

‘CUTTING-EDGE PRODUCTS’

“If this project shows that Africa can take cutting edge technology and produce cutting-edge products, this will banish this idea that Africa can’t do it and change the global mindset … this can be a game-changer,” Charles Gore, executive director at MPP, told Reuters at Afrigen’s facility, a converted warehouse.

Under pressure to make drugs in lower-income countries, Moderna and BioNTech have announced plans to build mRNA vaccine factories in Africa, but production is still a long way off.

“We haven’t copied Moderna, we’ve developed our own processes because Moderna didn’t give us any technology,” Petro Terblanche, managing director at Afrigen, told Reuters.

“We started with the Moderna sequence because that gives, in our view, the best starting material. But this is not Moderna’s vaccine, it is the Afrigen mRNA hub vaccine,” Terblanche said.

She later took a delegation of EU diplomats on a tour of the state-of-the-art facility where scientists were seen making mRNA in sterile white-walled rooms.

She said it had managed to make, in collaboration with Johannesburg’s University of the Witwatersrand, its first micro-litre laboratory scale batches of COVID mRNA vaccines at the Cape Town facility.

EASIER STORAGE

Terblanche said Afrigen was also working on a next generation mRNA vaccine that didn’t need freezing temperatures for storage, required for the Pfizer and Moderna doses, and which would be better suited to Africa, which is often dealing with high temperatures and poor health facilities and infrastructure.

“We will only make our clinical trial batch probably in six months from now, (meaning) … fit for humans. And the target is November 2022,” Terblanche added.

Online training for other companies to make the shot started with manufacturers in Brazil and Argentina last year. Afrigen expects to get more on board within the next month.

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Additional reporting by Francesco Guarascio
Editing by Tim Cocks, Josephine Mason, Mark Potter and Frances Kerry

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Green Bay Packers LB Za’Darius Smith set to return for postseason after being out since Week 1 injury

GREEN BAY, Wis. — First came left tackle David Bakhtiari and center Josh Myers. Now, Za’Darius Smith might be the next key player to return to the Green Bay Packers in time for the playoffs.

The second-team All-Pro outside linebacker from a year ago will practice this week during the top-seeded Packers’ first-round bye, and if all goes well, he could play for the first time since the season opener. Smith played just 18 snaps in the regular season — all in Week 1 against the New Orleans Saints — and then underwent back surgery for an issue that plagued him during training camp.

“I want to kind of temper the expectations,” Packers coach Matt LaFleur said Monday. “Here’s a guy that hasn’t practiced since really that New Orleans game. We’ll get him back out there and see how he looks, see what type of shape he’s in. If he progresses and checks all the boxes, then he’ll be back out on the field.”

With 13.5 sacks in 2019 and 12.5 in 2020, Smith was one of only three players with 12-plus sacks each in those two seasons, joining Aaron Donald and T.J. Watt.

Smith still has to be designated to return off injured reserve. That would likely happen on Wednesday before practice.

The defense also could get back another second-team All-Pro from last year in cornerback Jaire Alexander. He hasn’t played since his Week 4 shoulder injury. He might have been on track to return last week but landed on the reserve/COVID-19 list.

Bakhtiari made his season debut on Sunday against the Lions, playing 27 snaps in his first action since he tore an ACL more than a year ago. Myers also returned and played for the first time since a Week 6 knee injury. A third offensive line starter also could return in right tackle Billy Turner, who missed the past four games of the regular season because of a knee injury.

“I do think he’ll be back at some point this week, but as far as will he be out there Wednesday, I’ll be able to update you guys with that on Wednesday,” LaFleur said of Turner.

The biggest injury question this week surrounds receiver Marquez Valdes-Scantling, who dropped out of Sunday’s game at Detroit because of a back injury. LaFleur said he wasn’t sure if Valdes-Scantling would practice this week.

LaFleur said he planned to get the top-seeded Packers some work outdoors in the cold weather to prepare for the Jan. 22 or 23 NFC divisional playoff game at Lambeau Field. The Packers worked inside all last week to prepare for the Lions.

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Stocks break four-day winning streak as Tencent, Alibaba slip

  • Alibaba, Tencent fined over failure to report deals
  • Turkey is prioritising inflation control- FinMin
  • Kazakh dollar bonds hit after government resigns
  • Evergrande to seek delay in coupon repayment

Jan 5 (Reuters) – Emerging market stocks broke a four-day winning streak on Wednesday as regulatory fines hit heavyweights Tencent and Alibaba, dragging tech stocks, while worries about inflation and tighter U.S. monetary policy also weighed.

China’s tech sector (.CSIINT) slipped 2.8%, dragging the broader blue-chip index (.CSI300) down 1.0%. Hong Kong’s main index (.HIS) closed down 1.6% in its worst session in more than two weeks.

Alibaba (9988.HK), Tencent (0700.HK) and Bilibili (9626.HK) dropped between 2.1% and 10.6% after the country’s top market regulator fined them for failing to properly report about a dozen deals – the latest act in Beijing’s crackdown on several industries that began last year. read more

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China stocks battered by Beijing clampdown

With e-commcerce firm Meituan (3690.HK) also sinking 11.2%, MSCI’s China-heavy index of emerging stocks (.MSCIEF) fell 0.9%, further away from three-week highs.

Stocks in Russia (.IMOEX), South Africa (.JTOPI) and Poland (.WIG) all fell between 0.1% and 0.3%, tracking weak Asian sentiment.

In Kazakhstan, violent protests over fuel price hikes saw its government resign – serving as a warning to other emerging markets policy makers trying to square the circle between tackling high inflation and resulting burdens on the population. read more .

Kazakhstan’s dollar-denominated sovereign bonds suffered sharp falls with the 2045 issue dropping around 3 cents to the dollar and many back to levels last seen in 2020, Tradeweb data showed.

Turkey is now prioritising a “sincere” fight against high inflation, Finance Minister Nureddin Nebati said on Wednesday. Inflation there rose to 36% in December after a series of interest rate cuts sought by President Tayyip Erdogan. read more

Turkey’s lira was last up 0.1% at 13.4 per dollar after having fallen up to 1.6% earlier in the session.

“We think that (Turkey’s) headline inflation will likely move towards 45% in the next couple of months and might increase further towards 48% or so in 2Q,” said Credit Suisse analyst Berna Bayazitoglu.

But the ongoing lira volatility leaves the margin of error wide, Bayazitoglu said, adding that recently announced increases in electricity and natural gas prices and minimum wage add to the inflationary pressures.

Most other emerging markets currencies made guarded moves against the dollar as investors priced in policy tightening in the United States, slating in the first of three rate hikes signalled, for May.

This sent U.S Treasury yields and the dollar higher overnight. On Wednesday, the dollar index (.DXY) held steady.

China’s yuan and South Africa’s rand were flat, while Russia’s rouble hit its lowest in more than five weeks.

Embattled China Evergrande Group (3333.HK) lost another 0.6% after it sought delay to onshore bond payment due on Saturday, which would be its first domestic bond payment miss. A bondholder meeting is scheduled for Jan. 7-10.

Bad loan company China Huarong (2799.HK) plunged 50% to a record low, on resuming trade following a nine-month hiatus. read more

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Reporting by Susan Mathew in Bengaluru;
Editing by Tomasz Janowski

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Firefighters battle new blaze at South African parliament, suspect charged with arson

  • Flames flare up again on Monday afternoon
  • Police charge 49-year-old man with arson
  • Sunday’s fire caused much damage in parliament complex

CAPE TOWN, Jan 3 (Reuters) – A new blaze broke out on Monday at the complex housing the two chambers of South Africa’s national parliament in Cape Town, one day after a devastating fire swept through the buildings. read more

“The fire and rescue service confirms that the fire at parliament has flared up. The void beneath the roof sheeting of the National Assembly is on fire,” a spokesman for the city’s fire services said on Monday afternoon.

Police have charged a 49-year-old man with arson and other offences including theft, and he was expected to appear in court on Tuesday.

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National Assembly speaker Nosiviwe Mapisa-Nqakula said the arson, if confirmed, would represent an attack on the country’s democracy.

The initial fire on Sunday caused the roof of the New Wing housing the assembly’s lower chamber to collapse. The roof of the Old Wing, which dates back to 1884 and houses the upper chamber National Council of Provinces (NCOP), also partially collapsed.

However, important sections including a museum with artworks and heritage objects were saved, as was an embroidered tapestry telling the story of the Eastern Cape on the ground floor of the Old Assembly Building, officials said.

Earlier on Monday firefighters had managed to extinguish most of the initial blaze. As the new fire flared, parliament said firefighters had been reinforced with additional equipment and personnel.

Firemen work at the parliament where a fire broke out in Cape Town, South Africa, January 3, 2022. REUTERS/Sumaya Hisham

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A Reuters journalist at the scene said the speed of the wind, a key factor in the Cape’s fire season, had increased significantly and could hamper attempts to douse flames.

A city update released around 10 p.m. local time (2000 GMT)said the fourth and fifth floors of the new wing, above the national assembly, were “completely gutted” as wind-fanned flames threatened historic Tuynhuys, the Cape Town office of President Cyril Ramaphosa.

“Heavy duty, aerial firefighting (equipment) have just arrived, that can operate within the current strong winds,” city officials said.

The parliament has played a crucial role in South Africa’s transition from white minority rule as the place where transformative legislation has been passed, helping roll back repressive policies implemented under the apartheid era.

In a separate statement, the elite Hawks police said the suspect was believed to have gained entry to the parliament through a window in one of the offices.

“There is a possibility of other charges being added as there was a security breach here,” Hawks spokesperson Nomthandazo Mbambo told eNCA television.

Speaker Mapisa-Nqakula said President Ramaphosa’s address to parliament, set for Feb. 10, would still go ahead. Lawmakers will still debate and approve the budget and committees will continue their work, parliamentary officials said.

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Additional reporting by Olivia Kumwenda-Mtambo in Johannesburg and Shafiek Tassiem in Cape Town; Editing by Gareth Jones, Angus MacSwan and Richard Chang

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South Africa lifts curfew as it says COVID-19 fourth wave peaks

Passengers queue to get a PCR test against the coronavirus disease (COVID-19) before traveling on international flights, at O.R. Tambo International Airport in Johannesburg, South Africa, November 26, 2021. REUTERS/Sumaya Hisham

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CAPE TOWN, Dec 30 (Reuters) – South Africa has lifted a midnight to 4 a.m. curfew on people’s movement with immediate effect, believing the country has passed the peak of its fourth COVID-19 wave driven by the Omicron variant, a government statement said on Thursday.

The country made the changes based on the trajectory of the pandemic, levels of vaccination in the country and available capacity in the health sector, according to a press release issued by Mondli Gungubele, a minister in the presidency.

South Africa is currently at the lowest of its five-stage COVID-19 alert levels.

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“All indicators suggest the country may have passed the peak of the fourth wave at a national level,” a statement from the special cabinet meeting held earlier on Thursday said.

Data from the Department of Health showed a 29.7% decrease in the number of new cases detected in the week ending Dec. 25 compared to the number of cases found in the previous week, at 127,753, the governmentsaid.

South Africa, with close to 3.5 million infections and 91,000 deaths, has been the worst-hit country in Africa during the pandemic on both counts.

Besides lifting the restrictions on public movement, the government said gatherings will be restricted to no more than 1,000 people indoors, and no more than 2,000 people outdoors.

It also ruled that alcohol shops with licenses to operate beyond 11 p.m. (2100GMT) may revert back to full license conditions, a welcome boon for traders and businesses hard hit by the pandemic and looking to recover during the festive season.

“While the Omicron variant is highly transmissible, there has been lower rates of hospitalisation than in previous waves,” cabinet said, adding that the wearing of masks in public places remained mandatory. Failure to wear a mask in South Africa when required remains a criminal offence.

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Reporting by Wendell Roelf;
Editing by Chris Reese, Dan Grebler and Aurora Ellis

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S.Africa study suggests Omicron enhances neutralizing immunity against Delta

Dec 28 (Reuters) – Research by South African scientists suggests that Omicron infection enhances neutralizing immunity against the Delta variant of the coronavirus.

The study, which has not been peer-reviewed, found that people who were infected with Omicron, especially those who were vaccinated, developed enhanced immunity to the Delta variant.

The analysis enrolled 33 vaccinated and unvaccinated people who were infected with the Omicron variant in South Africa.

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While the authors found that the neutralization of Omicron increased 14-fold over 14 days after the enrollment, they also found that there was a 4.4 fold increase of Delta virus neutralization.

“The increase in Delta variant neutralization in individuals infected with Omicron may result in decreased ability of Delta to re-infect those individuals,” the scientists said.

Alex Sigal, a professor at the Africa Health Research Institute in South Africa, said on Twitter on Monday that if Omicron was less pathogenic as it looked from the South African experience, “this will help push Delta out”.

According to an earlier South African study, there is reduced risk of hospitalisation and severe disease in people infected with the Omicron coronavirus variant compared with the Delta one, though the authors say some of that is likely due to high population immunity. read more

The Omicron variant, first detected in southern Africa and Hong Kong in November, has since spread worldwide and threatened to overwhelm hospitals and disrupt travel plans this holiday week.

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Reporting by Juby Babu in Bengaluru

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Nobel Prize-winning anti-apartheid hero Desmond Tutu dies aged 90

  • Tutu won Nobel for non-violent opposition to apartheid
  • Tutu considered nation’s conscience by both Black and white
  • Anti-apartheid hero fought for “Rainbow Nation”
  • State gives no details on the cause of death
  • Tutu diagnosed with cancer in 1990s

JOHANNESBURG, Dec 26 (Reuters) – Archbishop Desmond Tutu, Nobel Peace Prize laureate and veteran of South Africa’s struggle against white minority rule, died on Sunday at the age of 90.

In 1984 Tutu won the Nobel Peace Prize for his non-violent opposition to apartheid. A decade later, he witnessed the end of that regime and chaired a Truth and Reconciliation Commission, set up to unearth atrocities committed during those dark days.

The outspoken Tutu was considered the nation’s conscience by both Black and white, an enduring testament to his faith and spirit of reconciliation in a divided nation.

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He was diagnosed with prostate cancer in the late 1990s and in recent years was hospitalised on several occasions to treat infections associated with his cancer treatment.

“The passing of Archbishop Emeritus Desmond Tutu is another chapter of bereavement in our nation’s farewell to a generation of outstanding South Africans who have bequeathed us a liberated South Africa,” President Cyril Ramaphosa said.

“Desmond Tutu was a patriot without equal.”

The presidency gave no details on the cause of death.

Tutu preached against the tyranny of the white minority but his fight for a fairer South Africa never ended, calling the Black political elite to account with as much feistiness as he had the white Afrikaners.

In his final years, he regretted that his dream of a “Rainbow Nation” had yet to come true. read more

“Ultimately, at the age of 90, he died peacefully at the Oasis Frail Care Centre in Cape Town this morning,” Dr Ramphela Mamphele, acting chairperson of the Archbishop Desmond Tutu IP Trust and Co-ordinator of the Office of the Archbishop, said in a statement on behalf of the Tutu family.

A frail-looking Tutu was seen in October being wheeled into his former parish at St George’s Cathedral in Cape Town, which used to be a safe haven for anti-apartheid activists, for a service marking his 90th birthday. read more

Dubbed “the moral compass of the nation”, his courage in defending social justice, even at great cost to himself, always shone through. He often fell out with his erstwhile allies at the ruling African National Congress party over their failures to address the poverty and inequalities that they promised to eradicate. read more

Archbishop Desmond Tutu laughs as crowds gather to celebrate his birthday by unveiling an arch in his honour outside St George’s Cathedral in Cape Town, South Africa, October 7, 2017. REUTERS/Mike Hutchings

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Tutu, just five feet five inches (1.68 metres) tall and with an infectious giggle, travelled tirelessly throughout the 1980s, becoming the face of the anti-apartheid movement abroad while many of the leaders of the rebel ANC such as Nelson Mandela were behind bars.

Although he was born near Johannesburg, he spent most of his later life in Cape Town and led numerous marches and campaigns to end apartheid from St George’s front steps, which became known as the “People’s Cathedral” and a powerful symbol of democracy. Known for punchy quotes, Tutu once said: “I wish I could shut up, but I can’t, and I won’t”. read more

‘A PROPHET AND A PRIEST’

Having officially retired from public life on his 79th birthday, Tutu continued to speak out on a range of moral issues, including accusing the West in 2008 of complicity in Palestinian suffering by remaining silent.

In 2013, he declared his support for gay rights, saying he would never “worship a God who is homophobic”.

Tributes poured in from around the world for the man fondly known as “The Arch”. read more

The Archbishop of Canterbury Justin Welby hailed Tutu as a “a prophet and priest” while flamboyant British billionaire Richard Branson said “the world has lost a giant” and Norway’s Prime Minister Jonas Gahr Stoere recalled “a great little man who showed the power of reconciliation and forgiveness”.

UK Prime Minister Boris Johnson noted Tutu’s “critical” role in the “struggle to create a new South Africa”, while his deputy Dominic Raab said Tutu’s adage of ‘Don’t raise your voice, improve your argument’ had “never felt more apt”.

“We are better because he was here,” Bernice King, daughter of Martin Luther King, said. Palestine Liberation Organisation official Wasel Abu Youssef said Tutu was “one of the biggest supporters” of the Palestinian cause.

In a letter to Tutu’s daughter Reverend Mpho Tutu, Tibet’s spiritual leader the Dalai Lama said the world had “lost a great man, who lived a truly meaningful life”.

Tutu and his long-time friend Mandela lived for a time on the same street in the South African township of Soweto, making Vilakazi Street the only one in the world to host two Nobel Peace Prize winners.

“His most characteristic quality is his readiness to take unpopular positions without fear,” Mandela once said of Tutu. “Such independence of mind is vital to a thriving democracy.”

At a Boxing Day service at St George’s, the Very Reverend Michael Weeder paid homage to Tutu from the Archbishop’s former pulpit, saying it was “once the celebrated point of command” before asking the handful of parishioners present to bow their heads in a moment of silence.

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Additional reporting by Wendell Roelf; Writing by James Macharia Chege;
Editing by Robert Birsel, Kirsten Donovan

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Case, vaccine data mark small victories in global Omicron battle

  • AstraZeneca, Novavax say their shots protect from Omicron
  • UK data suggests fewer hospitalisations than from Delta
  • Don’t extrapolate from similar SAfrican data -African CDC
  • WHO also urged caution about drawing firm conclusions
  • Omicron has spread fast, many countries under new curbs

JOHANNESBURG/LONDON, Dec 23 (Reuters) – Two vaccine makers said their shots protected against Omicron as UK data suggested it may cause proportionally fewer hospital cases than the Delta coronavirus variant, though public health experts warned the battle against COVID-19 was far from over.

Similarly encouraging signs about hospitalisation rates emerged from South Africa on Wednesday, but the head of a leading African health agency joined the World Health Organization in cautioning that it was too soon to draw broad conclusions about Omicron’s virulence.

“Let’s be careful not to extrapolate what we are seeing in South Africa across the continent, or across the world,” Africa Centres for Disease Control (CDC) chief John Nkengasong told a media briefing.

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Coronavirus infections have soared wherever highly infectious Omicron has spread, triggering new restrictions in many countries.

First identified last month in southern Africa and Hong Kong, the variant is becoming dominant in much of Europe including Britain, where daily new infections have soared beyond 100,000.

In France, daily coronavirus cases – currently close to 90,000 – could rise into the hundreds of thousands in January, a scientific adviser to President Emmanuel Macron said on Thursday, while Germany reported its first Omicron death. read more

In Italy, the first Western country to be hit by the pandemic last year, the National Health Institute said Omicron would soon predominate, while Greece banned public Christmas festivities to curb its spread. Both countries also made outdoor mask-wearing mandatory. read more

But increases in hospitalisations and deaths in South Africa and Britain since Omicron took hold appear to have been only gradual, and AstraZeneca(AZN.L) and Novavax(NVAX.O) joined other vaccine manufacturers in saying their shots protect against it.

University of Edinburgh researchers who tracked 22,205 Omicron patients said on Wednesday the number who needed to be hospitalised was 68% lower than they would have expected, based on the rate in patients with Delta.

Imperial College London researchers reported evidence of a comparable 40%-45% reduction in hospitalisation risk.

‘DON’T OVER-INTERPRET’

Raghib Ali, senior clinical research associate at the University of Cambridge, said scientists had warned that, with the surge in UK cases, even a small proportion of hospitalisations could overwhelm the healthcare system.

However, the data was encouraging and “may help justify the government’s decision not to expand restrictions on social gathering over Christmas in England”, he said.

The UK data supported Wednesday’s findings from South Africa’s National Institute for Communicable Diseases (NICD). read more

A separate South African government-backed study, yet to be peer-reviewed, on health workers given the Johnson & Johnson (JNJ.N) vaccine identified “clear and early de-coupling” of hospitalisation from Omicron cases compared with Delta.

However, the CDC’s Nkengasong said the NICD data, suggesting Omicron was 70%-80% less severe than Delta, should be interpreted “with a lot of caution”.

“This is early days and public health practice is local,” he said, adding that particular factors such as the young median age of the South African population could be in play.

On Wednesday, the WHO’s technical lead on COVID-19, Maria van Kerkhove, said data on Omicron was still too “messy” to draw firm conclusions.

Case data on the spread of Omicron due later on Thursday from the UK Health Security Agency is expected to offer further clues as to its severity.

VACCINE HOPES

On Thursday, AstraZeneca said a three-course dose of its COVID-19 vaccine offered protection against the variant, citing data from an Oxford University lab study.

Findings from the study, yet to be published in a peer-reviewed medical journal, matched those from rivals Pfizer-BioNTech (PFE.N), (22UAy.DE) and Moderna (MRNA.O).

Hours earlier, Novavax Inc. (NVAX.O) said early data showed its vaccine – authorised for use by the European Union and WHO but yet to be approved by the United States – also generated an immune response against Omicron.

As financial markets welcomed the signs that Omicron might be less severe than feared, equities – notably travel- and hospitality-related stocks – extended a rally while safe-haven bonds and currencies eased. read more

In some countries, meanwhile, the older Delta variant continued to spread.

The coronavirus death toll in Russia, where officials had detected only 41 Omicron cases, passed 600,000 on Thursday, Reuters calculations based on official data showed, after a surge of Delta-linked infections. read more

Only the United States and Brazil have recorded more coronavirus deaths.

In India, where daily infections hit close to 7,500 on Thursday with just 23 Omicron cases, Prime Minister Narendra Modi was to meet with state chiefs to discuss how counter a possible Omicron surge ahead of the festive season. read more

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Reporting by Reuters bureaux around the world; Writing by John Stonestreet; Editing by Catherine Evans, Edmund Blair and Mark Heinrich

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Tencent hands shareholders $16.4 bln windfall in the form of JD.com stake

A Tencent logo is seen in Beijing, China September 4, 2020. REUTERS/Tingshu Wang

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  • Move comes as Beijing cracks down on technology firms
  • JD.com shares plunge as much as 11.2%, Tencent up 4%
  • Tencent has no plans to sell stakes in other firms-source

BEIJING/HONG KONG, Dec 23 (Reuters) – Chinese gaming and social media company Tencent (0700.HK) will pay out a $16.4 billion dividend by distributing most of its JD.com (9618.HK) stake, weakening its ties to the e-commerce firm and raising questions about its plans for other holdings.

The move comes as Beijing leads a broad regulatory crackdown on technology firms, taking aim at their overseas growth ambitions and domestic concentration of market power.

Tencent said on Thursday it will transfer HK$127.69 billion ($16.37 billion) worth of its JD.com stake to shareholders, slashing its holding in China’s second-biggest e-commerce company to 2.3% from around 17% now and losing its spot as JD.com’s biggest shareholder to Walmart (WMT.N).

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The owner of WeChat, which first invested in JD.com in 2014, said it was the right time for the divestment, given the e-commerce firm had reached a stage where it can self-finance its growth.

Chinese regulators have this year blocked Tencent’s proposed $5.3 billion merger of the country’s top two videogame streaming sites, ordered it to end exclusive music copyright agreements and found WeChat illegally transferred user data.

The company is one of a handful of technology giants that dominate China’s internet space and which have historically prevented rivals’ links and services from being shared on their platforms.

“This seems to be a continuation of the concept of bringing down the walled gardens and increasing competition among the tech giants by weakening partnerships, exclusivity and other arrangements which weaken competitive pressures,” Mio Kato, a LightStream Research analyst who publishes on Smartkarma said of the JD.com stake transfer.

“It could have implications for things like the payments market where Tencent’s relationships with Pinduoduo and JD have helped it maintain some competitiveness with Alipay,” he said.

JD.com shares plunged 11.2% in early trade in Hong Kong on Thursday, the biggest daily percentage decline since its debut in the city in June 2020, before recovering partially to a 7% decline by 0450 GMT. Shares of Tencent, Asia’s most valuable listed company, rose 4%.

Shares of Tencent and JD on Dec 23

The companies said they would continue to have a business relationship, including an ongoing strategic partnership agreement, though Tencent Executive Director and President Martin Lau will step down from JD.com’s board immediately.

Eligible Tencent shareholders will be entitled to one share of JD.com for every 21 shares they hold.

PORTFOLIO DIVESTMENTS?

The JD.com stake is part of Tencent’s portfolio of listed investments valued at $185 billion as of Sept. 30, including stakes in e-commerce company Pinduoduo (PDD.O), food delivery firm Meituan (3690.HK), video platform Kuaishou (1024.HK), automaker Tesla (TSLA.O) and streaming service Spotify (SPOT.N).

Alex Au, managing director at Hong Kong-based hedge fund manager Alphalex Capital Management, said the JD.com sale made both business and political sense.

“There might be other divestments on their way as Tencent heed the antitrust call while shareholders ask to own those interests in minority stakes themselves,” he said.

A person with knowledge of the matter told Reuters Tencent has no plans to exit its other investments. When asked about Pinduoduo and Meituan, the person said they are not as well-developed as JD.com.

Tencent chose to distribute the shares as a dividend rather than sell them on the market in an attempt to avoid a steep fall in JD.com’s share price as well as a high tax bill, the person added.

Kenny Ng, an analyst at Everbright Sun Hung Kai, said the decision was “definitely negative” for JD.com.

“Although Tencent’s reduction of JD’s holdings may not have much impact on JD’s actual business, when the shares are transferred from Tencent to Tencent’s shareholders, the chances of Tencent’s shareholders selling JD’s shares as dividends will increase,” he said.

Technology investor Prosus (PRX.AS), which is Tencent’s largest shareholder with a 29% stake and is controlled by Naspers of South Africa, will receive the biggest portion of JD.com shares.

Walmart owns a 9.3% stake in JD.com, according to the Chinese company. Payments processor Alipay is part of Tencent rival Alibaba Group .

($1 = 7.7996 Hong Kong dollars)

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Reporting by Sophie Yu in Beijing and Scott Murdoch in Hong Kong; Additional reporting by Xie Yu, Selena Li, Donny Kwok and Eduardo Baptista in Hong Kong and Nikhil Kurian Nainan in Bengaluru; Writing by Jamie Freed; Editing by Subhranshu Sahu and Muralikumar Anantharaman

Our Standards: The Thomson Reuters Trust Principles.

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S.African study offers Omicron hope amid second coronavirus Christmas

  • S.African Omicron study suggests reduced risk of severe illness
  • Many see booster shots as key to reining in Omicron
  • South Korean business groups protest against new curbs

GENEVA/JOHANNESBURG, Dec 22 (Reuters) – South African data offered a glimmer of hope on Wednesday about the severity of the Omicron coronavirus variant, but World Health Organization officials cautioned that it was too soon to draw firm conclusions as the strain spread across the globe.

With the second Christmas of the pandemic just days away, countries imposed new restrictions on their citizens while they worried about the damage the variant might inflict on their economies.

Plans for Christmas parties and celebrations were wiped out from London to New Delhi amid the uncertainty.

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Omicron was first detected last month in southern Africa and Hong Kong. Preliminary data indicated it was more resistant to vaccines developed before it emerged.

But a studyby South Africa’s National Institute for Communicable Diseases (NICD) suggested that those infected with Omicron were much less likely to end up in hospital than those with the Delta strain. read more

COVID-19 cases also appear to have peaked in South Africa’s Gauteng province, the region where Omicron first emerged, it said.

The study, which has not been peer-reviewed, compared South African Omicron data from October and November with data about Delta between April and November.

“In South Africa, this is the epidemiology: Omicron is behaving in a way that is less severe,” the NICD’s Professor Cheryl Cohen said.

“Compellingly, together our data really suggest a positive story of a reduced severity of Omicron compared to other variants.”

However, the WHO technical lead on COVID-19, Maria van Kerkhove, said the U.N. agency did not have enough data to draw firm conclusions about the severity of the Omicron variant.

The data was still “messy” as countries reported its arrival and spread, she told a briefing in Geneva.

“We have not seen this variant circulate long enough in populations around the world, certainly in vulnerable populations. We have been asking countries to be cautious, and to really think, especially as these holidays are coming up.”

The WHO’s European head told Reuters in Brussels that three to four weeks was needed to determine Omicron’s severity.

Hans Kluge said that Omicron, already dominant in Britain, Denmark and Portugal, was likely to be the main coronavirus strain in Europe in a few weeks.

“There is no doubt that Europe is once again the epicentre of the global pandemic. Yes, I’m very concerned, but there is no reason for panic. The good news is…, we know what to do.”

VACCINATE

Meanwhile governments raced to contain the variant’s rapid spread, urging citizens to get vaccinated as Omicron upended reopening plans that many had hoped would herald the end of the pandemic. read more

Germany, Scotland, Ireland, the Netherlands and South Korea have reimposed partial or full lockdowns or other social distancing measures in recent days. read more

Germany’s health minister said he had not ruled out a full lockdown. read more

Italy was preparing new measures and might make vaccinations obligatory for more categories of workers, Prime Minister Mario Draghi said.

Austria is to order a 10 p.m. close in the hospitality sector and classified Britain, Denmark, the Netherlands and Norway as risk areas, meaning arrivals from there must go into quarantine if they have not had a booster shot.

Belgium, the Czech Republic and Spain were also considering new curbs. The Indian capital of New Delhi banned Christmas and other celebrations ahead of the New Year. read more

The Chinese city of Xian – home to the Terracotta Warriors

– told its 13 million residents to stay at home as it struggles to contain rising COVID-19 cases under Beijing’s zero-tolerance policy.

ECONOMIC BLOW

Policymakers across the world are trying to address the economic blow that might come from new outbreaks.

On Wall Street, concern about Omicron upending the economic recovery lingered and U.S. stock indexes were mostly flat at the market open.

“Overall the volatility for December has been much higher than usually seen,” said Anu Gaggar, global investment strategist for Commonwealth Financial Network. “The Santa Claus rally is slightly lower this year.”

Some 300 South Korean business owners protested in Seoul on Wednesday against the return of strict social distancing rules, urging the government to scrap its “vaccine pass” policy and compensate for losses. read more

Israeli Prime Minister Naftali Bennett welcomed a Health Ministry panel’s recommendation that over 60s, those with compromised immune systems and health workers should receive fourth COVID shots.

More than 275 million people have been reported to be infected with the coronavirus around the world, and nearly 5.7 million have died, according to a Reuters tally. read more

Infections have been reported in more than 210 countries and territories since the first cases were identified in central China in December 2019.

U.S. President Joe Biden on Wednesday tested negative for the coronavirus, the White House said. On Tuesday, Biden promised to distribute half a billion free rapid COVID-19 tests, and warned the quarter of American adults who are unvaccinated that their choices could spell the “difference between life and death”. read more

Professor Lawrence Young, virologist at the University of Warwick in England, said it was difficult to justify fourth shots when many people had been vaccinated in richer countries and far fewer in Africa.

WHO Director-General Tedros Adhanom Ghebreyesus said boosters should not be seen as the only way of dealing with the pandemic when other countries are struggling to roll out shots.

“Blanket booster programmes are likely to prolong the pandemic rather than ending it,” he told a briefing in Geneva.

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Eikon users can click https://apac1.apps.cp.thomsonreuters.com/cms/?navid=1063154666 for a case tracker.

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Reporting by Reuters bureaux around the world; Writing by Nick Macfie and Angus MacSwan; Editing by Mark Heinrich

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