MV TELEGRAPH

Newly confirmed Secretary of State Antony Blinken speaks to reporters during his first press conference at the State Department in Washington on January 27, 2021.

Carlos Barria | Reuters

WASHINGTON – Secretary of State Antony Blinken said Wednesday that the United States will pay the World Health Organization the more than $ 200 million by the end of the month, reaffirming the new administration’s commitment to global health.

“This is an important step forward in fulfilling our financial commitments as a WHO member and reflects our renewed commitment to ensuring that WHO receives the support it needs to lead the global response to the pandemic, even as we do work to reform them for the future. ” “Blinken told the UN Security Council during a video conference.

“The United States will work with our partners around the world to expand production and distribution capabilities and improve access, including marginalized populations,” said Blinken in his first speech since being named the country’s best diplomat.

Blinken also urged his colleagues to combat misinformation about vaccines and to pass on relevant information about the origin of the coronavirus to investigators.

“The ongoing expert inquiry into the causes of this pandemic and the report that will be published must be independent of scientific and fact-based evidence and free from interference,” said Blinken. “To better understand this pandemic and prepare for the next one, all countries must provide all data from the earliest days of the outbreak,” he added.

Blinken’s remarks come as President Joe Biden works to tackle the unfolding coronavirus pandemic that killed more than 2.4 million people and infected more than 109.6 million worldwide, according to Johns Hopkins University. In the United States, the coronavirus has infected more than 27.7 million people and killed at least 488,295 people.

In one of his first acts as president, Biden overturned former President Donald Trump’s decision to withdraw the US from the Geneva-based health organization of the United Nations.

In April, Trump said he had suspended US funding for the organization pending a review, citing what he described as “the World Health Organization’s role in the serious mismanagement and cover-up of the spread of the coronavirus”.

A month later, he announced his intention to remove the US from the organization amid the coronavirus pandemic, citing the so-called misuse of funding by the WHO and its cozy relationship with China.

“China is in total control of the World Health Organization even though it only pays $ 40 million a year, compared to what the United States paid, which is roughly $ 450 million a year,” Trump said.

In July, the Trump administration sent the UN Secretary-General its notice to withdraw the US from the World Health Organization by July 6, 2021.

In October, WHO Director General Tedros Adhanom Ghebreyesus said he hoped the United States would reconsider its decision to leave WHO, adding that the coronavirus could not be defeated “in a divided world”.

“The problem is not the money. It is not the funding that is the problem. It is actually the relationship with the US that is more important and its overseas leadership,” Ghebreyesus told a virtual audience at the Aspen Security Forum.

A worker puts hot peppers on a pizza in a Domino’s pizza franchise in New York.

Daniel Acker | Bloomberg | Getty Images

After a year of business closings, disruptions and unprecedented challenges, the franchise industry is poised to return to pre-pandemic levels by the end of the year, if Covid-19 is controlled, according to an upcoming report.

In its annual economic outlook, the International Franchise Association estimates that more than 26,000 franchise locations will be added, an increase of 3.5% for more than 780,000 establishments. The additions would help offset the declines seen over the past year.

In addition, franchise employment is expected to grow more than 10% to nearly 8.3 million workers, the group said. It added that of the nearly 800,000 new jobs expected, many will be in the retail, food and services sectors.

The IFA forecast produced by the research and consulting firm FRANdata assumes that the gross domestic product of the sector will increase by 7% to USD 477.4 billion and the production of the franchise business will increase by 16.4% to USD 780 billion which will also make up for last year’s losses. In 2020, the franchise lost approximately 20,000 units and saw employment fall 11.2% to 7.5 million workers due to losses in housing, full-service restaurants, and personal services.

“With rapid adaptability, scalable technology, and a focus on products and services in demand, the franchise sector has demonstrated its resilience time and again. Coupled with smart Washington policies, franchises can help Americans get back to work.” Robert Cresanti, President and CEO of IFA, told CNBC in a statement.

Most of the growth this year will come from the commercial and residential service industries, along with the continued strength of the quick service restaurant category that got a boost last year. The strength of the rebound will depend on a number of factors including pandemic control, the launch of the vaccine, and pent-up consumer demand.

“It’s important to understand that once everyone gets the green light, there won’t be just this explosive growth,” said Darrell Johnson, FRANdata CEO. “The world has changed and, in some ways, consumer behavior has changed significantly so that it is a different growth.”

As an example, Johnson cited the huge growth in home delivery and roadside pickup in fast food restaurants. He said these services were “forced into the equation” because it was the only way consumers could buy products.

The industry’s recovery also depends on government measures to support both small businesses and the economy as a whole.

President Joe Biden’s $ 1.9 trillion stimulus plan includes aid to small businesses in the form of grants and funding, and direct controls on individuals. Congress Democrats are also working to allocate $ 25 billion specifically for restaurants.

The Paycheck Protection Program has been a lifeline for many small businesses who have had access to finance. The Small Business Administration reported that just under 1.7 million loans for nearly $ 126 billion had been approved as of February 15.

The average loan was $ 75,000 as smaller businesses have access to grants, but 1.17 million were second draw loans for those who received help at the beginning of the cycle and are back on the program.

According to the IFA report, almost half of all franchisees are operators with one or two units. These include a number of minority-owned companies as well as companies that operate in underserved communities. Help is important as these small businesses are at greatest risk of closure.

“There are companies that benefited from the first round of PPP that kept them alive. They got a second round of PPP because they were really still injured, and that’s why they were kept alive. The question What is the long-term forecast for these companies? “said Johnson. “And therein lies the puzzle for policy makers.”

Another factor driving the recovery is government policies such as raising the federal minimum wage, according to the report. The IFA warned of Biden’s plan to raise the federal minimum wage to $ 15 an hour by 2025, warning that doing so could slow the recovery and lead to more automation.

The National Restaurant Association released data reflecting that assessment Tuesday. 82% of operators expect any initial wage increases to affect recovery from Covid-19.

“Passing this bill this year would result in job losses and increased use of labor-reducing equipment and technology,” said Sean Kennedy, executive vice president of public affairs for the restaurant trade group, in a statement. “Almost all restaurant operators say they will raise menu prices, but it is clear that an increase in consumer prices is not enough to absorb higher labor costs.”

Consumers flocked to spend their stimulus checks in January, sending retail sales up 5.3% for a month in a blockbuster start through 2021, according to a government report on Wednesday.

Economists polled by Dow Jones expected an increase of only 1.2%.

Excluding cars, sales rose 5.9%, also well above the 1% estimate, driven by an unexpected strength from the consumer.

A month after Congress approved an additional $ 900 billion stimulus package on top of the $ 2.2 trillion approved in early 2020 to counter the effects of Covid-19, buyers were up with Armed with $ 600 checks they used to buy a variety of goods.

The surge in consumer spending came at a time when growth expectations were dampened in early 2021 as the economy continued to shake off the slowdown caused by the pandemic.

Spending gains were broad-based, with increases in each major category.

Electronics and home appliances saw the largest increase, up 14.7% over the month, while furniture and home furnishings stores grew 12% and online spending at retailers grew 11%. Even food and drink options, which suffered the worst during the pandemic, saw a 6.9% increase.

A year ago bars and restaurants continued to suffer as sales there fell 16.6%. Apparel and accessories were also down 11.1%, while electronics and home appliances were down 3.5%.

Online shopping is the biggest gain since January 2020, up 28.7%, while building materials rose 19% and sporting goods rose 22.5%.

While most economists are slow to start the year, they expect the pace to accelerate later in the year as vaccination efforts spread and the Covid-19 albatross subsides.

One of the main problems facing the recovery is inflation, and a separate data point showed that these pressures continue to increase.

The producer price index, which measures the prices domestic producers get for their goods, rose by 1.3%. This is the largest monthly gain since the measure began in December 2009.

Workers unload the cargo from a Hungarian Airbus 330 plane after transporting the first doses of the Chinese Sinopharm vaccine against the coronavirus (Covid-19) at Budapest Ferenc Liszt International Airport on February 16, 2021.

ZOLTAN MATH | AFP | Getty Images

LONDON – International diplomacy is likely to determine who gets access to coronavirus vaccines in the coming months, analysts told CNBC. Countries like Russia and China use one of the most sought-after commodities in the world to advance their own interests abroad.

It is hoped that the introduction of Covid-19 vaccines could help end the pandemic. While many countries have not yet started vaccination programs, even high-income countries face a supply shortage as manufacturers struggle to stimulate production.

Russia and China made the distribution of face masks and protective equipment to hard-hit countries a central principle of diplomatic relations last year. Now both countries are taking a transactional approach to the delivery of vaccines.

Agathe Demarais, Global Forecasting Director at the Economist Intelligence Unit, told CNBC over the phone that Russia, China and, to a lesser extent, India are betting on providing Covid vaccines to emerging or low-income countries to advance their interests.

“Russia and China have been doing this for a long, long time … especially in emerging markets because they feel that traditional Western powers have withdrawn from those countries,” Demarais said.

“In the past we have seen China launch the Belt and Road Initiative, when in fact it still does. We have seen Russia do a number of things, especially in the Middle Eastern countries with nuclear power plants has undertaken, and vaccine diplomacy is new brick all over the building in its attempt to build its global reputation. “

Vaccination timeline

That strategy is likely to lead Russia and China to cement long-term presence in countries around the world, Demarais said, noting that the fundamental importance of vaccines to the population will make it “super, super difficult” for countries in the future to withstand diplomatic pressure.

The problem for Moscow and Beijing, however, is that “there is a big, big chance” that they both promise too much and deliver too little, she added.

Russia’s Sputnik V vaccine and China’s Sinopharm and Sinovac vaccines have already started rolling out globally. A total of 26 countries, including Argentina, Hungary, Tunisia and Turkmenistan, have approved the Russian Covid vaccine. China’s customers include Brazil, Indonesia, Thailand and the United Arab Emirates.

A health worker receives the Sputnik V vaccine at the Centenario Hospital in Rosario, Santa Fe Province, when the vaccination campaign against the novel coronavirus Covid-19 began in Argentina on December 29, 2020.

STR | AFP | Getty Images

According to analysts, both Russia and China have typically signed supply contracts that strengthen existing political alliances. However, production problems with western-made vaccines could be an incentive for some non-traditional allies to look to Moscow and Beijing.

Russia and China are currently unable to meet their respective home markets’ vaccine needs and continue to export to countries around the world. Production is the main hurdle to this challenge, while many high-income countries have pre-ordered more cans than they need.

We don’t currently have a system at international level to ensure, for example, that you can adjust the effectiveness of the vaccine to the variant in which a variant is in circulation.

Suerie Moon

Co-Director of GHC at the Graduate Institute Geneva

A report released last month by the Economist Intelligence Unit forecast that most of the adult populations in advanced economies would be vaccinated by the middle of next year. In contrast, this period extends to early 2023 for many middle-income countries and even until 2024 for some low-income countries.

It highlights the global mismatch between supply and demand and the wide gap between high and low income countries when it comes to access to vaccines.

Last month, the World Health Organization’s top official warned that the world was on the verge of “catastrophic moral failure” because of unequal Covid vaccination policies.

Dr. Tedros Adhanom Ghebreyesus said Jan. 18 that it was clear that, even though some countries and companies speak the language of fair access to vaccines, they are still prioritizing bilateral deals, bypassing COVAX, raising prices and trying to jump up the line . “

“That’s wrong,” he added.

Tedros Adhanom Ghebreyesus, Director General of the World Health Organization (WHO), speaks after Dr. Anthony Fauci, Director of the National Institute for Allergies and Infectious Diseases, during the 148th session of the Executive Board on the Coronavirus Disease (COVID-19) outbreak in Geneva, Switzerland, January 21, 2021.

Christopher Black | WHO | via Reuters

Tedros condemned what he called the “me-first” approach from high-income countries, saying it was self-destructive and endangered the world’s poorest and most vulnerable. Almost all high-income countries have prioritized the distribution of vaccines to their own populations.

When asked if there is any prospect of countries changing their so-called me-first approach following the WHO warning about vaccine diplomacy, Demarais replied, “No. It won’t happen. I’m following it very closely and it’s all very depressing . “

“The Big Challenge”

COVAX is one of the three pillars of the so-called Access to COVID-19 Tools Accelerator, which was introduced last April by the WHO, the European Commission and France. It focuses on equitable access of Covid diagnostics, treatments and vaccines to help less affluent countries.

Analysts have long been skeptical about how efficiently COVAX can deliver supplies of Covid vaccines to middle and low income countries around the world, despite several heads of state calling for global solidarity at the start of the pandemic.

The international aid group Medecins Sans Frontieres has described what we are seeing today in terms of global access to vaccines as “far from an image of justice”.

“The big challenge is that every time a country signs a bilateral agreement, it becomes all the more difficult to put vaccines into the multilateral pot via COVAX,” said Suerie Moon, co-director of the Global Health Center at the Graduate Institute in Geneva. said CNBC by phone.

Adding to this concern, Moon said, “We currently have no system at the international level to ensure, for example, that you can reconcile the effectiveness of the vaccine with the variant of a circulating variant.”

She cited South Africa as an impressive example. Earlier this month, South Africa suspended the launch of the Oxford-AstraZeneca vaccine after a study raised questions about its effectiveness against a highly infectious variant first discovered in the country.

“In a rational and ethical world, South Africa would suddenly have access to vaccines that are effective against its variant, and the AstraZeneca vaccines could be sent to another part of the world that does not have that variant. That would be the rational way you do it, but we just haven’t made arrangements for this type of transaction, “said Moon.

“Ideally, something like this happens when you have strong international collaboration, but I think the reality is that it will be a mess,” she continued.

“We’re going to have vaccines that expire in some countries if they could be used elsewhere. We’re going to have vaccines effective in one place, but they’re not in the right place (and) we’re going to have excess vaccines as a security.” measure, while in another country people have nothing. “