China Stops Some U.S. Flights; Australia’s Omicron: Virus Update

(Bloomberg) — American Airlines Group Inc. and United Airlines Holdings Inc. said Chinese aviation regulators have blocked some of their flights from entry as the country steps up precautions against Covid-19. Angry parents in Hong Kong are criticizing the government’s order to close schools again.

Australia’s Covid cases are surging, with the omicron variant now representing about 90% of cases in New South Wales state, but virus deaths and hospitalization rates are gaining much more slowly than overall infections. The nation’s immigration chief Alex Hawke is weighing whether to cancel Novak Djokovic’s visa and ruin his hopes of winning the Australian Open.

About 400,000 Israelis have gotten a fourth dose of vaccine, according to Prime Minister Naftali Bennett. European Union regulators said that frequent boosters could adversely affect the immune system and may not be feasible. The World Health Organization warned of a “west-to-east tidal wave” that may infect more than half of Europe’s population within the next six to eight weeks. 

Key Developments: 

  • Virus Tracker: Cases top 313 million; deaths pass 5.5 million
  • Vaccine Tracker: More than 9.52 billion shots administered
  • Global supply chains brace for impact as omicron reaches China
  • Hong Kong school shutdown decried by parents as ‘Groundhog Day’
  • Covid test makers struggle to cope with whiplash from omicron

Kingmed Manager Detained, Shares Fall (1:44 p.m. HK)

A regional manager of a Guangzhou Kingmed Diagnostics Group Co. unit in China’s Zhengzhou was detained and is being investigated for law violations that led to the spread of Covid, the local police bureau said in a statement. Shares fall as much as 7.8% in Shanghai afternoon trading.

Omicron Worsens Australia Worker Shortage (1:37 p.m. HK)

Australia was already facing a record shortfall of workers before spiraling omicron infections triggered the widespread absenteeism that is causing the country more acute pain from the variant than its global peers.

Official data Wednesday showed job vacancies climbed to a record, up 18.5% to almost 400,000 in the three months through November. With the virus now raging, a key industry body is warning that firms in food and logistics are reporting 10%-50% of their workers are sick or in isolation, leaving supermarket shelves empty.

China Vice Premier Urges Action in Henan (1:31 p.m. HK)

Vice Premier Sun Chunlan called on authorities in Henan province in central China to adopt more targeted measures to curb Covid after virus flareups there in recent days, the official Xinhua News Agency reported late Tuesday.

Hangzhou city in China’s southeast, meanwhile, will offer immigrant workers digital coupons to encourage them to stay in the city and avoid travelling during the Lunar New Year holiday, the Paper reported. Toyota Motor Corp. has stopped work at its plant in Tianjin since Monday as authorities in the municipality to the east of Beijing lock down areas and move to test citizens for Covid-19.

Most Cases in Osaka Since September (1:24 p.m. HK)

Japan’s Osaka prefecture is expected to report about 1,700 coronavirus cases Wednesday, broadcaster NHK reported, the most since September. While Japan is still posting some of the lowest infection numbers among developed countries, Covid cases have started to pick up again in recent weeks.

Korea Approves Novavax Vaccine (1:13 p.m. HK)

South Korea’s Ministry of Food and Drug Safety will allow the use of Novavax Inc.’s Covid-19 vaccine, provided a report of the final clinical test result is submitted, according to a statement. The vaccine is manufactured by SK Bioscience Co. in Korea.

Meanwhile, about 40 officials with Samsung Electronics Co., SK Group and Hyundai Motor Group who attended a CES trade show in Las Vegas last week were infected with Covid, Chosun Ilbo newspaper reported, without citing anyone.

Philippines’ Public Transport Rules Tightened (11:52 a.m. HK)

The Philippines has banned unvaccinated individuals from public transport in the capital following President Rodrigo Duterte’s order to restrict their movement as Covid-19 infections surge.

Commuters are required to show proofs of vaccination before riding buses, jeepneys, trains and other public transport in Metro Manila, the transportation department said Wednesday. The “no vaccination, no ride” policy will be in effect while the capital is under Alert Level 3, the third-highest in a five-step scale.

Djokovic Awaits Australia Visa Decision (11:47 a.m. HK)

Novak Djokovic’s shot at a record 21st Grand Slam victory rests on the shoulders of one Australian minister. Immigration chief Alex Hawke is still weighing whether he’ll exercise special personal powers that allow him to cancel Djokovic’s visa and spoil his hopes of winning the Australian Open this month.

Djokovic, meantime, admitted on Wednesday that he attended a newspaper interview and photo shoot when he knew he was infectious with Covid-19 and blamed “human error” for an incorrect travel declaration. 

Omicron 90% of Cases in Australian State (11:45 a.m. HK)

The omicron variant represents about 90% of cases in New South Wales state, Chief Health Officer Kerry Chant told reporters Wednesday, the remainder being the delta strain. Omicron is now responsible for about 67% of Covid-19 cases in intensive care units across the state, she said.

Australia’s virus deaths and hospitalization rates are gaining much more slowly than overall infections.

China Hands Out Jail Terms for Virus Lapses (10:22 a.m. HK)

China has sent three people to prison for up to four-plus years over breaches of rules that led to a virus outbreak, in one of the harshest punishments for lapses in enforcing the government’s strict Covid-zero policy.

The violations at a cargo company in Dalian, a port in the northeast, included failing to ensure employees wore masks, avoided visiting public venues after hours, and were properly quarantined and tested, the Global Times reported late Tuesday. Those oversights allowed four people to infect 83 others.

China Border With Vietnam Reopens (10:13 a.m. HK)

China’s Guangxi region resumed customs clearance Jan. 10 at three border crossings with Vietnam’s northern province of Quang Ninh after thousands of transport trucks were stranded for weeks.

Guangxi authorities halted customs clearance at the border crossings beginning Dec. 21 to review and boost Covid-19 prevention and control, Vietnam’s trade ministry reported on its website.

Okinawa Sees Medical System Limits (10:05 a.m. HK)

Japan’s southern island of Okinawa, the site of the nation’s biggest Covid-19 outbreak, saw the number of health-care workers taking sick leave climb to a record of 503, Kyodo News reported Tuesday. That’s forced 15 medical institutions to limit the capacity of emergency patients they accept.

The prefecture is home to the bulk of American troops in Japan, and the U.S. agreed to limit military personnel’s movements off base in the country after regional governors blamed them for helping to introduce the omicron variant.

J&J Vaccine Gets Warning on Bleeding (8:28 a.m. HK)

The fact sheet for Johnson & Johnson’s Covid-19 vaccine has been revised by U.S. regulators to warn of the risk of a rare bleeding disorder.

The Food and Drug Administration said in a letter to the company on Tuesday that adverse-event reports suggested an increased risk of immune thrombocytopenia during the 42 days following vaccination. Symptoms include bruising or excessive or unusual bleeding, according to the agency.

China Blocks Some Flights From U.S. (4:15 p.m. NY)

American Airlines and United Airlines said Chinese aviation regulators have blocked some of their flights from entry as the country steps up precautions against Covid-19, triggering discussions between industry representatives and government agencies.

At least six of American’s flights have been barred from China, a spokesperson said Tuesday, declining to provide further details. United canceled flights from San Francisco to Shanghai on six days in late January.

Israel Gives Fourth Doses to 400,000 (1 p.m. NY)

About 400,000 Israelis have gotten a fourth dose of the Covid-19 vaccine, Prime Minister Naftali Bennett said in a press conference on Tuesday. Israel was the first to give the extra shot to people age 60 and over, part of his government’s strategy to protect those most vulnerable to the virus.

European Union regulators on Tuesday warned that frequent Covid-19 booster shots could adversely affect the immune system and may not be feasible.  

NYC Cases ‘Plateauing,’ Governor Says (12:05 p.m. NY)

The omicron-fueled Covid surge in New York appears to be “cresting over that peak” as the rate of increase slows, New York Governor Kathy Hochul said.

The percentage of New Yorkers that tested positive has dropped to 18.6% from more than 22% in recent days. In New York City, Covid rates are “plateauing,” while upstate figures are tracking behind the city by a couple of weeks, Hochul said in a virus briefing.

Omicron May Hit Half of Europeans, WHO Says (6:07 a.m. NY)

More than half of Europe’s population may be infected with omicron within weeks at current transmission rates, a World Health Organization official said.

The fast-spreading variant represents a “west-to-east tidal wave sweeping across the region,” said Hans Kluge, the regional director of the WHO for Europe at a briefing Tuesday. He cited forecasts by the Institute for Health Metrics and Evaluation that the majority of Europeans could catch it in the next six to eight weeks.

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