Categories
World News

China’s exports in August beat expectations

SINGAPORE – Asia Pacific stocks were mixed in trading on Tuesday as data showed China’s August trading data was above expectations.

The Shanghai composite in mainland China gained 0.77%, while the Shenzhen share rose 0.398%.

China’s exports rose 25.6% yoy in August, customs data on Tuesday showed – above analysts’ expectations in a Reuters poll of 17.1%.

Hong Kong’s Hang Seng index gained 0.61%.

The stocks of retailers listed in the city surged after Bloomberg reported that Hong Kong will allow quarantine-free entry to mainland visitors from September 15. Chow Sang Sang rose 3.8% while Giordano International rose 2.6% and Sa Sa International rose 5.26%.

Japan’s Nikkei 225 rose 0.86% while the Topix index rose 1%, with the country’s stocks continuing to climb after two consecutive days of trading with solid gains. This comes as investor sentiment is bolstered by the prospect of further stimulus reportedly being called for by Prime Minister candidate Fumio Kishida.

Elsewhere, the South Korean Kospi lost 0.7% while the S & P / ASX 200 in Australia lost 0.24%.

MSCI’s broadest index for Asia Pacific stocks outside of Japan was below the flatline.

Elsewhere, the South Korean Kospi lost 0.7% while the S & P / ASX 200 in Australia lost 0.24%.

MSCI’s broadest index for Asia Pacific stocks outside of Japan was below the flatline.

RBA rate decision

The Reserve Bank of Australia announced on Tuesday that it would stick to its cash rate target.

In a statement, Australia’s Central Bank Governor Philip Lowe also said the RBA will buy bonds at a price of A $ 4 billion (about $ 2.98 billion) a week until at least February 2022.

In August, when the plan was announced to reduce bond purchases from A $ 5 billion to A $ 4 billion in early September, Lowe had announced that the new weekly bond purchases would last at least until mid-November.

Following that announcement, the Australian dollar changed hands at $ 0.7449 from an earlier low of $ 0.7431.

CNBC Pro’s Stock Picks and Investment Trends:

Markets in the US were closed on Monday for a public holiday.

Currencies and oil

The US dollar index, which tracks the greenback versus a basket of its peers, came in at 92.126, still off the 92.4 level it hit last week.

The Japanese yen was trading at 109.78 the dollar, stronger than the 110.1 levels seen against the greenback last week.

Oil prices were mixed on the afternoon of Asian trading hours, with the international benchmark Brent crude oil futures rising 0.47% to $ 72.56 a barrel. U.S. crude oil futures declined 0.19% to $ 69.16 a barrel.

Categories
Health

EU steps up vaccine exports guidelines and pressures AstraZeneca over deliveries

President of the European Commission Ursula von der Leyen.

Thierry Monasse | Getty Images News | Getty Images

LONDON – The European Union has tightened strict rules on the export of Covid vaccines while putting pressure on AstraZeneca to deliver more shots to the area.

It is because the sluggish introduction of vaccines in the region is under scrutiny, even as the EU continues to export millions of coronavirus shots abroad.

In order to gain a stronger negotiating position with pharmaceutical companies that fail to meet delivery targets, the bloc has expanded its strict rules on vaccine exports.

Before approving the delivery of Covid-19 shots, the EU will check whether the recipient country has any restrictions on vaccines or raw materials and whether it is in a better epidemiological situation.

“We want to make sure that Europe gets its fair share of vaccines. Because we have to explain to our citizens that companies that export their vaccines around the world are fully committed to their commitments and are not taking any risks.” Security of supply in the European Union, “said the President of the European Commission, Ursula von der Leyen, on Thursday.

We all know we could have been a lot faster if all the pharmaceutical companies had fulfilled their contracts.

Ursula von der Leyen

President of the European Commission

The data released on Thursday showed that the EU has exported 77 million cans of Covid shots to 33 countries around the world since December. At the same time, 88 million were delivered to EU countries, of which 62 million were managed. As such, the EU has exported more shots than it has previously given its citizens.

However, some EU countries have raised concerns about stricter export regulations, with countries like Belgium and the Netherlands wanting supply chains to remain open. There is a risk that stopping vaccine exports will trigger a trade war and other parts of the world – which produce the raw materials needed to make vaccines – stop shipping to Europe.

Pressure on AstraZeneca

The EU has also quarreled with the Swedish-UK drug maker over not firing as many Covid shots as the bloc expected.

The 27 nations waited for 90 million doses of this vaccine in the first quarter and 180 million in the second quarter of 2021. However, AstraZeneca said that due to manufacturing issues, only 30 million doses can be dispensed by the end of March and 70 million between April and June.

Read the latest coverage from CNBC on the pandemic:

The reduced delivery targets are a problem for EU countries, some of which wanted more of this vaccine as it is cheaper and easier to store than others. Further delivery delays to Europe could affect the broader rollout plans.

“We all know we could have been much faster if all pharmaceutical companies had fulfilled their contracts,” said von der Leyen on Thursday.

During a press conference, she added that AstraZeneca “needs to catch up, respect the treaty with European member states, before it can export vaccines again”.

The introduction of vaccines in the EU has posed a number of challenges from the start and the Commission, which has negotiated with drug manufacturers, has been criticized for taking too long to sign vaccination contracts.

Italy’s former Prime Minister Mario Monti told CNBC on Friday: “We shouldn’t be surprised that Europe has reacted quite well in terms of the monetary and financial response to the pandemic and so far not quite (so) in terms of procurement and in terms of the pandemic industrial response. “

He argued that while the EU countries have integrated their monetary policy and part of their fiscal responses, “there has never been a health union”.

Individual governments remain responsible for their own health policies, while areas such as international trade remain the primary responsibility of the European Commission.

A deal with the UK

The EU’s stricter export regulations could become a problem especially for the UK, which has received vaccines from the EU. The vaccination rate is higher than that of the block based on the number of first doses given.

European Commission figures show the UK has received 21 million doses of vaccine block-made – the highest share of EU exports yet. The UK has so far given its population 31 million doses of Covid-19 syringes, suggesting that around two-thirds of the vaccines used in the UK come from the EU.

“We discussed what else we can do to ensure a mutually beneficial relationship between the UK and the EU on Covid-19,” the two sides said in a joint statement on Wednesday.

“Given our interdependencies, we are working on specific steps that we can take in the short, medium and long term to create a win-win situation and expand the supply of vaccines to all of our citizens.”

Dutch Prime Minister Mark Rutte said at a press conference on Thursday that a vaccine deal between the EU and Great Britain could be announced on Saturday.

Categories
Business

E.U. Set to Curb Covid Vaccine Exports for six Weeks

BRUSSELS – The European Union completes emergency legislation that gives it extensive powers to curb exports of the block-made Covid-19 vaccines for the next six weeks. This is a marked escalation in their response to domestic supply shortages that have created a political vortex amid a rising third wave on the continent.

The bill, due to be released on Wednesday, has been reviewed by the New York Times and approved by two EU officials involved in the drafting process. The new regulations will make it harder for pharmaceutical companies that make Covid-19 vaccines in the European Union to export them, and supplies to the UK are likely to be disrupted.

The European Union has come into conflict with AstraZeneca in the first place, as it drastically reduced its supplies to the bloc and cited production problems in January. The company is the main target of the new regulations. However, legislation that could block the export of millions of doses from EU ports could also affect Pfizer and Moderna vaccines.

Britain is by far the biggest benefactor of EU exports and will lose the most to these rules. However, they could also be used to curb exports to other countries such as Canada, for example the second largest recipient of vaccines made in the EU. and Israel, which is receiving doses from the block but is very advanced in its vaccination campaign and is therefore seen as less needy.

“We are in the crisis of the century. And I’m not ruling anything out for now, because we have to make sure that Europeans are vaccinated as soon as possible, ”said Ursula von der Leyen, President of the European Commission, in comments last week that paved the way for the new rules. “Human life, civil liberties and also the prosperity of our economy depend on it, on the speed of vaccination and on further development.”

The legislation is unlikely to affect the United States, which has received fewer than one million doses from facilities in the EU.

The Biden government has announced that it has received enough doses from its three authorized manufacturers – Pfizer-BioNTech, Moderna, and Johnson & Johnson – to cover all adults in the country by the end of May. Most of this supply comes from plants in the United States. The country also exports vaccine components to the European Union, which is reluctant to risk disrupting the raw material supply chain.

The European Union allowed pharmaceutical companies to perform their contracts by authorizing them to export more than 40 million doses of vaccine to 33 countries between February and mid-March, with 10 million going to the UK and 4.3 million going to Canada. The bloc has kept about 70 million at home and distributed them to its 27 member states, but its efforts to run mass vaccination campaigns have been set back by a series of missteps.

Liberal overseas exports when domestic supply is low was a significant part of the problem, and the bloc was criticized for allowing exports at all when the United States and Britain practically closed domestic production through contracts with pharmaceutical companies .

The result was a problematic introduction of vaccines for the richest group of nations in the world. The impact of the outages is compounded by a third wave that puts health systems across the continent on emergency mode and instigates painful new lockdowns.

Updated

March 23, 2021, 8:03 p.m. ET

The European Commission, which ordered the vaccines, and individual governments in member states responsible for their national campaigns, have been banned by voters fed up of being banned and increasing the number of Covid-19 cases because of their failure , heavily criticized. Public anger and political costs have risen as the bloc has fallen behind several wealthy counterparts in the world in promoting vaccination campaigns, despite major manufacturers based here.

The bloc has seen recipients of vaccines made in its member countries as well as other rich countries drive their vaccination campaigns. Almost 60 percent of Israelis have received at least one dose of vaccine, 40 percent of British and a quarter of Americans, but only 10 percent of EU citizens have been vaccinated, according to the latest information released by Our World in Data.

The export restrictions are being enforced by the European Commission, the executive branch of the European Union, and while changes to the new rules could take place before the law is finalized, officials said they are unlikely to be substantial. They are expected to enter into force quickly.

EU officials said the rules would allow for a degree of discretion, meaning they would not result in a blanket export ban, and officials still expected many exports to continue.

“The proposed measures concern,” said Youmy Han, spokeswoman for Canada’s Minister for International Trade, Mary Ng.

“Minister Ng’s colleagues have repeatedly assured her that these measures will not affect vaccine shipments to Canada,” said Ms. Han. She added: “We will continue to work with the EU and its member states, as we have done throughout the pandemic, to ensure that our essential health and medical supply chains remain open and resilient.”

Canada depends on the European Union for almost all of its vaccine supply: all of Canada’s Moderna and Pfizer vaccines come from Europe, although the country received a small shipment of the AstraZeneca vaccine from India.

The new rules come after months of escalating tensions between the European Union and AstraZeneca in a situation that has become toxic to the bloc’s fragile relations with its recently deceased member, the UK.

The problems started in late January when AstraZeneca notified the block that it would cut its shipments by more than half in the first quarter of 2021, which turned plans to launch vaccines upside down. In response, the European Union has put in place an export authorization process whereby pharmaceutical companies must obtain permission to export vaccines and give the European Union the power to block them if they are seen as a breach of a company’s contractual obligations to the bloc.

As of February 1, the European Union has blocked just one of more than 300 exports, a small shipment of AstraZeneca vaccines to Australia, on the grounds that the country is virtually Coviden-free while the block struggles with increasing infections.

The new rules will introduce more reasons to block exports, the drafts show. They will encourage blocking shipments to countries that do not export vaccines to the European Union – a clause clearly targeting the UK – or to countries that have “a higher vaccination rate” than the European Union, “or where the current epidemiological situation is less serious “than in the block according to the Times.

In recent days, British Prime Minister Boris Johnson has tried to use a conciliatory tone to avert an EU export ban that would deal a severe blow to his country’s rapidly advancing vaccination campaign.

At a press conference on Tuesday, Mr Johnson said he was against blockades and was “encouraged by some of the things I’ve heard from the continent.” The UK news media reported that his government would be ready to have the block produce four million AstraZeneca cans in an EU factory.

Benjamin Mueller reported from London, Sharon LaFraniere from Washington and Ian Austen from Ottawa.