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April
IMF says Japan's economy can weather Olympics cancellation
Written by Nur Yasmin
Jakarta. Cancelling or postponing the Tokyo Olympics Games probably will not hurt Japan’s economy much, but may require the government to offer targeted support for hard-hit small firms, a senior official of the International Monetary Fund said.
While the government plans to proceed as scheduled, a renewed spike in coronavirus infections and slow vaccine rollouts have added to worries about the fate of the Olympics, set to start in July after being delayed from last year.
“A change to the plans for the Olympics would have a limited impact on overall near-term growth prospects, given that Japan is a large and diversified economy,” said Odd Per Brekk, deputy director of the IMF’s Asia and Pacific department.
Most of the infrastructure needed for the Games is already in place, and the hit to growth from an evaporation of inbound tourism would be small, he added.
“That said ... we should be mindful that cancelling the Olympic Games would have disproportionate impact on the service sector in Tokyo, especially among small- and mid-sized firms,” he told Reuters in a written interview on Tuesday.
The government may need to offer support to such firms, as survey-based analysis suggests that cancelling the Olympics could lower their sales growth by more than 5%, he added.
Japan’s economy has emerged from last year’s slump caused by the pandemic, though analysts expect any recovery to be modest as a renewed spike in infections weighs on consumption.
The pandemic has further delayed achievement of the Bank of Japan’s 2% inflation target, forcing it to conduct in March a review of its tools to make them more sustainable.
Brekk welcomed the BOJ’s policy review as including “steps in the right direction” to tackle the cost of prolonged easing.
But inflation will stay below 2% in the medium term, due to the hit from the pandemic and Japan’s low potential growth that diminishes the impact of monetary easing, Brekk said.
“Looking ahead, a broader assessment may be needed of how overall economic policies, including monetary, fiscal, structural, and deregulation policies, could be brought to bear in realizing sustainable growth and achieving the 2% inflation target,” he said.
As part of its March review, the BOJ created a scheme to compensate banks for the hit from negative interest rates.
The key aim was to convince markets that, with such tools to deal with the side-effects, the BOJ can take rates deeper into minus territory to combat economic shocks.
Brekk, however, said the chance of the BOJ deepening negative rates was low.
“While the scheme signals that the BOJ would be ready and able to go deeper with negative rates, and as such represents helpful forward guidance, we do not see a rate cut in the near future, unless there are intensified deflation pressures.” (Reuters)
April
Australia reports second Astrazeneca blood clot case, vaccine rollout steady
Written by Nur Yasmin
Jakarta. Australia said on Tuesday a second person had been diagnosed with a blood clot after receiving the AstraZeneca Plc vaccine but there had been no rise in inoculation cancellations as authorities try to steady a bungled immunisation campaign.
This week Australia abandoned a goal of vaccinating all of its nearly 26 million population by year-end, after Europe’s drug regulator reported rare cases of blood clots among some adult recipients of AstraZeneca doses, suggesting a link.
This prompted Australian officials to recommend that those younger than 50 receive the Pfizer Inc’s vaccine in preference to AstraZeneca’s shot, throwing the vaccination programme into disarray.
“We had anticipated potentially a significant drop (in vaccination numbers, but that is) not what we have seen at this stage,” Health Minister Greg Hunt told reporters in Canberra.
Authorities meanwhile said they have no plans to add Johnson & Johnson’s one-dose vaccine to its immunisation drive, as Australia wanted to move away from procuring vaccines that were under review of potential links to blood clots.
The COVID-19 vaccines of Johnson & Johnson and AstraZeneca use an adenovirus, a harmless class of common-cold viruses, to introduce coronavirus proteins into cells in the body and trigger an immune response.
Both products are under review by Europe’s drug regulator after it found possible links with blood clots, although it has said the advantages still outweighed the risks.
“The government does not intend to purchase any further adenovirus vaccines at this time,” a health ministry spokeswoman told Reuters.
Australia’s immunisation drive was heavily reliant on the AstraZeneca vaccine, with plans to manufacture 50 million doses in the country. The policy change prompted authorities last week to double an earlier Pfizer order to 40 million shots.
Australia has reported zero or low single-digit cases for most days this year helping authorities to ease restrictions and putting the economy into a faster recovery trajectory.
Treasurer Josh Frydenberg said the setbacks in the vaccine rollout should not “derail momentum in our economic recovery”.
“With the successful suppression of the virus and substantial reopening of the economy both household and business confidence are now higher than before the pandemic,” Frydenberg said in an emailed statement.
Australia began vaccinations much later than some other countries due to low COVID-19 case numbers, recording just over 29,400 infections since the pandemic began.
It reported its first COVID-related death of the year on Tuesday after an 80-year old man died after contracting the virus overseas, taking the total tally to 910 deaths. (Reuters)
April
Don't play with fire on Taiwan, China warns U.S.
Written by Nur Yasmin
Jakarta. China told the United States on Tuesday to stop playing with fire over Taiwan and lodged a complaint after Washington issued guidelines that will enable U.S. officials to meet more freely with officials from the island that China claims as its own.
The U.S. State Department’s Friday decision to deepen relations with self-ruled Taiwan came amid stepped-up Chinese military activity around the island, including almost daily air force incursions into Taiwan’s air defence zone.
Chinese Foreign Ministry spokesman Zhao Lijian told reporters they had lodged “stern representations” with the United States.
China urges the United States “not to play with fire on the Taiwan issue, immediately stop any form of U.S.-Taiwan official contacts, cautiously and appropriately handle the matter, and not send wrong signals to Taiwan independence forces so as not to subversively influence and damage Sino-U.S. relations and peace and stability across the Taiwan Strait”, he said.
Washington has watched with alarm the uptick in tensions, and on Sunday U.S. Secretary of State Antony Blinken said the United States was concerned about China’s aggressive actions against Taiwan.
In a written response to Reuters on Blinken’s remarks, China’s Foreign Ministry said the government had the absolute determination to protect the country’s sovereignty.
“Don’t stand on the opposite side of 1.4 billion Chinese people,” it added.
Taiwan’s Defence Ministry on Tuesday reported a further intrusion by Chinese jets into its air defence identification zone (ADIZ) - four J-16 fighters and an anti-submarine warfare aircraft.
On Monday, Taiwan said 25 Chinese air force aircraft including fighters and nuclear-capable bombers entered its ADIZ, the largest reported incursion to date.
Taiwan is China’s most sensitive territorial and diplomatic issue, and a regular source of Sino-U.S. friction. China has never renounced the use of force to bring the democratically ruled island under its control.
Former U.S. Secretary of State Mike Pompeo announced days before the end of former President Donald Trump’s presidency in January that he was lifting restrictions on contacts between U.S. officials and their Taiwanese counterparts.
While Washington officially recognises Beijing rather than
Taipei, like most countries, the United States is Taiwan’s most important international supporter and arms seller.
The United States is required by law to provide the island with the means to defend itself.
China believes the United States is colluding with Taiwan to challenge Beijing and giving support to those who want the island to declare formal independence.
Taiwan President Tsai Ing-wen says the island is an independent country called the Republic of China, its formal name, and that she will defend its freedom and security. (Reuters)
April
Jakarta. Japan on Tuesday proposed holding a naval drill with Germany when a German frigate visits Asia later this year, the Japanese government said, as Tokyo aims to bolster security ties with other democracies in the face of China’s maritime expansion.
The proposal was made during the first security dialogue between the foreign and defence ministers of Japan and Germany, and the two sides agreed to look into the matter further, a Japanese government statement said.
Japanese Foreign Minister Toshimitsu Motegi and Defence Minister Nobuo Kishi held the talks with German Foreign Minister Heiko Maas and Defence Minister Annegret Kramp-Karrenbauer via video conferencing.
Last month, German government officials said a German frigate would set sail for Asia in August and, on its return journey would become the first German warship to cross the South China Sea since 2002.
During the security dialogue, the Japanese and German ministers exchanged views on the East and South China Sea situation, and agreed on the importance of rules-based international order, the government statement said.
China claims almost all the energy-rich waters of the South China Sea, where it has established military outposts on artificial islands. Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims to parts of the sea.
In the East China Sea, Beijing claims a group of uninhabited Japanese-administered islets, and the dispute has long troubled bilateral relations. (Reuters)
April
Novavax says supply shortages delaying full-speed production of its COVID-19 vaccine
Written by Nur Yasmin
Jakarta. Novavax Inc has pushed back the timeline for hitting its production target of 150 million COVID-19 vaccine doses per month until the third quarter due to supply shortages including bags used to grow cells, a company spokeswoman told Reuters.
Novavax executives had previously said full-scale vaccine production could be achieved by mid-year. The company told Reuters in January it expected to reach full production capacity by May or June.
“We said during our earnings call that we expect all capacity being online by around mid-year. We’re continuing to refine that timing as we get closer, which now leads us to think we’re online/at full capacity by Q3,” Novavax communications director Amy Speak said by email on Monday.
“There are some supply shortages that come and go that have contributed to the revision in timing,” she added. “These have included things like the bioreactor bags and filters.”
Novavax could receive UK regulatory authorization for its vaccine as early as this month after releasing impressive UK trial data. It anticipates clearance in the United States could come as early as May after soon-to-be released data from its U.S. vaccine trial are reviewed by regulators.
The Maryland-based company is one of several COVID-19 vaccine makers that have had to push back production timelines due to industrywide shortages of raw materials and difficulties getting plants up and running.
Reuters reported last month that Novavax had delayed a planned deal to ship at least 100 million doses of its two-shot vaccine to the European Union, in part because of supply challenges.
In a Saturday interview with the Guardian, Novavax Chief Executive Stan Erck said the company has faced difficulties sourcing key production materials including single-use bags used to grow vaccine cells.
“Single-use bags are facing critical shortages and delays,” said Mark Womack, chief business officer of AGC Biologics, a contract manufacturer that is producing materials used in Novavax’s vaccine.
The Novavax COVID-19 vaccine is based on a SARS-CoV-2 protein-subunit antigen and a proprietary adjuvant.
Data released in March from the UK trial showed the vaccine to be highly effective against the original strain of the novel coronavirus, with 90% overall efficacy against disease, as well as 86% efficacy against the more contagious variant B.1.1.7 first discovered in Britain and now rampant in Europe and the United States. The data also suggests the shot provides some protection against a highly concerning variant that emerged in South Africa, which some drugmakers have said may require a booster shot to address. (Reuters)
April
Japan begins COVID-19 shots for over 65s as fourth infection wave looms
Written by Nur Yasmin
Jakarta. Japan began COVID-19 vaccinations for its sizable elderly population on Monday, with imported doses still in short supply and the pace unlikely to stop a fourth wave of infection.
Shots for people aged 65 and above began at some 120 sites across the country, using Pfizer Inc’s vaccine made in Europe and delivered to the regions in the past week.
Just 2,810 people in Tokyo are expected to get a shot from the first batch, while most regions will receive 1,000 doses or fewer, according to a health ministry schedule. Japan has a rapidly ageing population totalling 126 million.
Touring a vaccination center in Hachioji, west of Tokyo, Prime Minister Yoshihide Suga said he expected to secure some 100 million vaccine doses by the end of June, more than enough to give two doses to the elderly population of 36 million.
“We would like to deliver (the vaccines) to as many people as possible as soon as possible,” Suga said.
Tokyo on Monday began a month-long period of quasi-emergency measures to blunt a fourth wave of contagion driven by virulent mutant strains and with the planned start of the Summer Olympics just over 100 days away.
Shots for the general populace are not likely to be available until the late summer or even winter, too late to stem a resurgence of cases that appears to be focused on people in their 30s and 40s, according to Haruka Sakamoto, a physician and researcher at Keio University in Tokyo.
“The currently available vaccination cannot prevent the fourth wave of the pandemic,” she said. “I think the younger generation is now going to be more greatly affected compared to the previous waves.”
Japan was among the last major economies to begin COVID-19 inoculations when it started in mid-February, after domestic trials to ensure safety. Japan is dependent on Pfizer’s vaccine as the only COVID-19 shot approved by domestic regulators.
About 1.1 million people in Japan, mostly frontline healthcare workers, have received at least one dose of the Pfizer vaccine’s two-shot regimen so far.
Taro Kono, the minister in charge of vaccines, has defended the pace, saying local governments wanted time to prepare.
“After tomorrow, we will inform the prefectures how much we can distribute, and they will decide how much to allocate to each municipality,” Kono said on national broadcaster NHK on Sunday. (Reuters)
April
U.S., NATO discuss need for Russia to cease military buildup near Ukraine: State Department
Written by Nur Yasmin
Jakarta. Secretary of State Anthony Blinken and NATO Secretary-General Jens Stoltenberg discussed the Russian military buildup near Ukraine and other issues on Monday before the top U.S. diplomat’s trip to Brussels this week.
Blinken and Stoltenberg discussed “the immediate need for Russia to cease its aggressive military buildup along Ukraine’s borders and in occupied Crimea” as well as prospects for advancing peace in Afghanistan, the State Department said in a statement. (Reuters)
April
Philippines' Duterte reappears in public, dismisses rumours of health problems
Written by Nur Yasmin
Jakarta. Philippine President Rodrigo Duterte reappeared in public on Monday after an absence of nearly two weeks which had fuelled concerns about his health that the government insists are unfounded.
The Philippines is battling one of the worst coronavirus outbreaks in Asia, with hospitals in the capital Manila overwhelmed amid record daily infections, while authorities face delays in delivery of COVID-19 vaccines.
Duterte, who is 76 and has not yet been vaccinated against COVID-19, resumed his weekly televised address, during which he dismissed rumours that he was in declining health and that the government was trying to keep his condition under wraps.
“If you are saying that I have a sickness that would prevent me from exercising the powers of the presidency, there’s none,” he said, in response to the concerns.
Duterte last appeared on television on March 29. He cancelled his address scheduled on April 7 to minimise his exposure as there had been an increase in active cases of COVID-19 among his staff, including some of his security detail.
To prove Duterte was well, his closest aide, Christopher “Bong” Go, a senator, posted images on social media of the president playing golf, riding a motorcycle and jogging in the presidential palace over the weekend.
“The reason I can swing (a golf club) and ride the motorcycle is because I still can,” said Duterte, whose known ailments include back problems, migraines due to nerve damage after a motorcycle accident, Barrett’s oesophagus, which impacts his throat, and Buerger’s disease, caused by his heavy smoking.
His government is facing renewed criticism over its handling of the pandemic after a surge in COVID-19 infections that forced authorities to reimpose stricter curbs in the region of Manila and in nearby provinces for two weeks. The restrictions will be eased from April 12.
The Philippines has recorded more than 876,000 COVID-19 cases and over 15,000 deaths since the start of the pandemic.
Duterte said he was willing to give his own vaccination slot to someone who needed it more.
“If anyone wants to have it, they can have it,” Duterte said. (Reuters)
April
India approves Russia's Sputnik V COVID-19 vaccine
Written by Nur Yasmin
Jakarta. India has approved the use of Russian Sputnik V COVID-19 vaccine, the Russian Direct Investment Fund (RDIF) said on Monday, confirming earlier reports of its imminent endorsement.
India overtook Brazil to become the nation with the second highest number of infections worldwide after the United States, as it battles a second wave, having given about 105 million doses among a population of 1.4 billion.
The RDIF, which is responsible for marketing the vaccine abroad, said the Drug Controller General of India (DCGI) had approved the use of Sputnik V.
“India, the world’s 2nd most populous nation, became the 60th country to register #SputnikV after positive results of local Phase 3 clinical study. Sputnik V is now authorized in 60 countries with population of over 3 bln people,” a post on the Sputnik V official Twitter account said.
Earlier on Monday, two people familiar with the matter said the panel of the Central Drugs Standard Control Organisation (CDSCO) had recommended the authorisation.
The RDIF has signed deals to produce more than 750 million doses of Sputnik V in India with six domestic firms.
India has so far used two vaccines, one developed by AstraZeneca and Oxford University, and the other by domestic firm Bharat Biotech.
Sputnik V, developed by Moscow’s Gamaleya Institute, has proved 91.6% effective against COVID-19 and has been approved for use in more than 50 countries.
The Indian drugs regulator did not respond to a request for comment on the expert panel’s approval of the Russian vaccine.
Indian pharmaceutical firm Dr. Reddy’s, which is marketing the vaccine in India, said it was awaiting formal word from the authorities.
“Dr. Reddy’s and RDIF are working diligently with the Indian regulatory authorities to obtain the approval for Sputnik V. We are fully committed to playing our part in India’s fight against COVID,” the company said.
Shares of Dr Reddy’s ended up 5% after the Economic Times newspaper first reported the news.
The firm has helped run a small domestic trial to test the vaccine’s safety and ability to generate an immune response. (Reuters)
April
Indian panel gives emergency approval for Russia's Sputnik V vaccine: sources
Written by Nur Yasmin
Jakarta. An expert panel of India’s drugs regulator has recommended emergency use approval of Russia’s Sputnik V coronavirus vaccine, two sources said on Monday, which could make it the nation’s third to be approved as infections surge again.
India overtook Brazil to become the nation with the second highest number of infections worldwide after the United States, as it battles a massive second wave, having given about 105 million doses among a population of 1.4 billion.
The panel of the Central Drugs Standard Control Organisation (CDSCO) recommended the authorisation, said two people familiar with the matter, who sought anonymity as they were not authorised to speak to media.
Most panel recommendations are generally accepted by the regulator’s chief.
The Russian Direct Investment Fund, which is responsible for marketing the vaccine abroad, said it was expecting to hear from the Indian drugs authority soon.
“RDIF confirms it is awaiting imminently the recommendation by the Subject Expert Committee (SEC) of Central Drugs Standard Control Organization (CDSCO) of India to approve the use of the Russian Sputnik V vaccine against coronavirus in India,” it said.
The Fund has signed deals to produce more than 750 million doses of Sputnik V in India with six domestic firms.
India is now using two vaccines, one developed by AstraZeneca and Oxford University, and the other by domestic firm Bharat Biotech.
Sputnik V, developed by Moscow’s Gamaleya Institute, has proved 91.6% effective against COVID-19 and has been approved for use in more than 50 countries.
The Indian drugs regulator did not respond to a request for comment on the expert panel’s approval of the Russian vaccine.
Indian pharmaceutical firm Dr. Reddy’s, which is marketing the vaccine in India, said it was awaiting formal word from the authorities.
“Dr. Reddy’s and RDIF are working diligently with the Indian regulatory authorities to obtain the approval for Sputnik V. We are fully committed to playing our part in India’s fight against COVID,” the company said.
Shares of Dr Reddy’s ended up 5% after the Economic Times newspaper first reported the news.
The firm has helped run a small domestic trial to test the vaccine’s safety and ability to generate an immune response. (Reuters)