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Asia markets combined following massive miss in U.S. jobs knowledge

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US employment data released on Friday fell far short of expectations as the economy added just 235,000 jobs in August. Economists polled by Dow Jones had sought 720,000 new hires.

Meanwhile, in line with estimates, the unemployment rate fell from 5.4% to 5.2%.

“In our view, the setback in the labor market recovery and the rise in serious Covid infections will cause the FOMC to wait before announcing it will reduce its monthly security purchases. We now expect the FOMC to reduce its monthly security purchases by 10 billion at its November 3rd meeting, “Commonwealth Bank of Australia analysts wrote in a Monday note.

US markets are closed on Monday for the Labor Day holiday.

Currencies and oil

The US dollar index, which tracks the greenback versus a basket of its competitors, hit 92.164 after falling over 92.4 recently.

The Japanese yen was trading at 109.81 per dollar, stronger than the 110.1 levels seen against the greenback last week. The Australian dollar changed hands at $ 0.7433 after falling below $ 0.732 last week.

Oil prices were lower on the morning of Asian trading hours, with international benchmark Brent crude oil futures falling 0.91% to $ 71.95 a barrel. The US crude oil futures fell 0.88% to $ 68.68 a barrel.

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Health

Australia’s combined messages on Covid vaccines sow confusion

The introduction of vaccines in Australia has been slow and chaotic, with leaders and health advisers sending mixed messages.

The country’s top medical association recommends that people follow guidelines from the Australian Technical Advisory Group on Immunization when deciding which Covid vaccine to take. ATAGI advises the Minister of Health in Australia on vaccination issues.

“We recommend following expert advice, but at the end of the day people can make their own decisions as these are all safe and effective vaccines,” said Omar Khorshid, president of the Australian Medical Association, on CNBC’s “Squawk” on Thursday Box Asia. “

While Australia has been comparatively successful in controlling infection, it has faced some constraints on vaccine supplies. Currently, only the Pfizer BioNTech and Oxford AstraZeneca syringes are approved for use, and both require two doses for complete immunization.

Mixed news from the Australian government and ATAGI has created confusion – and hesitation – about the vaccines available and their safety.

What do experts say?

ATAGI says people between the ages of 16 and 59 should preferably get Pfizer shots, while the government says those people can choose AstraZeneca after consulting their doctors.

Pfizer shots are scarce in the country and reports say the majority of the cans might not arrive until the third quarter.

The recommendation of the advisory group came afterwards Data showed higher risks and observed severity of an extremely rare bleeding disorder – known as thrombosis and thrombocytopenia syndrome – associated with the use of AstraZeneca vaccines observed in Australian adults aged 50 and over.

June 2021, people are standing in front of a vaccination center in Sydney, as residents have largely been banned from leaving the city in order to stop a growing outbreak of the highly contagious Delta-Covid-19 variant in other regions.

SAEED KHAN | AFP | Getty Images

For those 60 years old and older, the group said the benefits of taking the AstraZeneca dose outweighed the risks of blood clots forming.

What is the government saying?

On Monday, Prime Minister Scott Morrison said people under the age of 60 can get the AstraZeneca vaccine if they wish, provided they have discussed it with their doctors. The country will introduce a new “no mistake compensation system” for general practitioners who administer Covid-19 vaccines, he added.

“The ATAGI Council speaks of a preference for AstraZeneca to be available and made available as preferred for people over 60. But the council is not ruling out the possibility of people under the age of 60 receiving the AstraZeneca vaccine, ”said Morrison, according to an official transcript from his press conference.

“So if you want to get the AstraZeneca vaccine we would encourage you to … go and have this conversation with your GP,” he said.

Vaccine progress

Khorshid of the Australian Medical Association said the vaccine rollout is progressing relatively well, despite the mixed messages and political tactics. He said about two-thirds of Australia’s most vulnerable population have already received at least one dose of the AstraZeneca vaccine and are expected to receive their second dose.

Still, statistics compiled by Our World in Data showed just over 23% of the population to have at least one dose of the vaccine, and only about 6% were fully vaccinated.

An aerial view of Sixty Martin Place, Sydney, Australia.

Mark Syke | View pictures | Universal picture group | Getty Images

Authorities are also making efforts to contain outbreaks in Australia as the country seeks to contain the spread of the highly contagious coronavirus delta variant, which was first discovered in India.

According to reports, seven cities with around 12 million people are now on lockdown, including Sydney, Brisbane and Perth.

Khorshid told CNBC that the medical association wants the national cabinet to be strengthened on broader issues such as agreements on border closings and hotel quarantine regulations.

Categories
World News

S&P 500 is flat amid combined earnings outcomes, looming Fed resolution

US stocks were flat on Wednesday as investors digested key technology earnings and prepared for the recent Federal Reserve policy announcement.

The S&P 500 hovered over the flatline but hit a new intraday record at the beginning of the session. The Dow Jones Industrial Average lost 140 points, hurt by a 7% decline in Amgen stock. The Nasdaq Composite was up 0.1%.

Boeing lost about 2% after posting its sixth straight quarterly loss, which also weighed on the Dow.

The Google parent alphabet reported a better-than-expected result on Tuesday after the bell, sending the tech giant’s shares up more than 4%. Alphabet saw sales grow 34% year over year.

Meanwhile, Microsoft shares fell about 2.5% even after the company beat analyst earnings. Microsoft saw the largest revenue growth since 2018, in part due to the increase in PC sales due to the coronavirus-induced shortage last year.

AMD and Visa holdings were higher after results turned out to be better than expected.

The Fed concludes its two-day meeting on Wednesday. The central bank is not expected to take action, but economists expect it to defend its policy of temporarily heating inflation. Fed Chairman Jerome Powell will hold a press conference 30 minutes after the decision is announced at 2:30 p.m. ET. These comments could move the markets.

“Any advice given in the Board of Directors’ statement or in the subsequent press conference about a possible reduction in QE – when and how quickly – would likely move both the equity and bond markets,” said Paulsen.

Tech darlings Apple and Facebook will report their winnings on Wednesday after the bell.

“Lots of FAANGs are reporting this week and the stock market can wait for some of these key reports to be released before deciding on the next major direction,” said Jim Paulsen, Leuthold Group’s chief investment strategist.

On Tuesday, the most important averages around the flatline were traded. The Dow Jones Industrial Average only rose 3 points. The S&P 500 closed flat after hitting an all-time high on Monday. The Nasdaq Composite was the relative underperformer, falling 0.34% while Tesla fell 4.5%.

Elsewhere later on Wednesday, President Joe Biden will unveil a $ 1.8 trillion new spending and tax credit plan aimed at helping families. The Biden government’s new spending plan would raise the highest income tax rate for the richest Americans to 39.6% and raise capital gains taxes to 39.6% for households earning more than $ 1 million, according to senior government officials. Stocks had taken a hit last week when reports of the tax hike surfaced.

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Categories
World News

Inventory futures combined forward of main company earnings

US stock futures rose slightly early on Tuesday morning as investors prepared for the next corporate earnings.

Dow futures rose 63 points. S&P 500 futures and Nasdaq 100 futures both traded in slightly positive territory.

The main averages fell on Monday, reflecting the general weakness in the tech sector. The Dow Jones Industrial Average lost more than 120 points, hurt by a more than 1.5% drop in Intel stock.

The S&P 500 fell more than 0.5%.

The Nasdaq Composite was the relative underperformer, falling nearly 1% as Facebook, Amazon and Microsoft all closed lower. Tesla fell more than 3% over the weekend as Bitcoin – which makes up part of Tesla’s balance sheet – fell after an all-time high of $ 64,841 on Wednesday morning, according to Coin Metrics.

The small-cap benchmark Russell 2000 fell 1.4% on Monday.

“Real estate and healthcare had another good day last week to build on outperformance and technology stocks pulled back today after a strong start into April,” said Jim Paulsen, chief investment strategist at Leuthold Group. “The US dollar’s recent decline this month has accelerated today, driving raw material prices higher, keeping energy stocks below today’s leaders.”

The first quarter earnings season got off to a good start last week, major US banks reported. Financial results exceeded expectations by 38%, while others in the S&P 500 surprised upward by 12%, according to data from Credit Suisse.

The winning season continues on Tuesday with streaming giant Netflix after the bell. Wall Street analysts expected Netflix to remain a winner in the streaming arena even as the pandemic recovery improves.

More big reports from Johnson & Johnson, Procter & Gamble and Travelers land before the market opens. CSX and Interactive Brokers publish the results after the bell.

“The bond market will continue to be the focus this week after last week’s inexplicable slump in 10-year bond yields amid surprisingly strong economic data. The 10-year return, which is back above 1.6% today, is driven by both bonds as well as stocks, traders are watching closely this week to see if the next move is back above 1.7% or if the technical level is retested below 1.5%, “added Paulsen.

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Categories
Business

Nike shares fall after blended earnings report, layoffs information

A man wearing a face mask walks past a Nike store in the Central Business District, Beijing, China on Feb.17, 2020.

Andrea Verdelli | Getty Images

Nike shares fell Friday after the company reported mixed earnings for the third quarter late Thursday and confirmed it was laying off employees.

Shares fell nearly 4% at noon. The stock is up more than 95% over the past year and has a market value of $ 217 billion.

Nike didn’t announce the downsizing in its earnings report on Thursday or speak to investors. The layoffs were first reported by The Oregonian, which covers the Portland-based sneaker company.

Nike said the cuts follow layoffs that began last summer. As of May 31, 2020, Nike had approximately 75,400 employees worldwide, according to a report with the Securities and Exchange Commission.

In a prepared statement, Nike focused on “shifting resources and building capacity to invest in our growth areas with the highest potential”.

“We’re building a flatter, nippier company and transforming Nike faster to define the marketplace of the future,” it said.

On Thursday, the sportswear retailer announced that its sales in North America were down 10% year over year for the third fiscal quarter ending February 28, as lagging ports delayed shipments. This resulted in goods arriving late for weeks in their own stores and at wholesale partners such as department stores and sports stores, and increased the risk of them ending up on the clearance shelf.

Sales at its stores in Europe, the Middle East and Africa also fell during the quarter due to closings and restrictions related to pandemics, Nike said.

“The good news here is that supply chain problems will subside over the next few quarters, while Europe will open up in time if the vaccine continues to roll out,” Jefferies analyst Randal Konik said in a research report. Konik rates Nike shares with a price target of $ 140.

Nike pointed to bright spots like the growth of its direct customer business, momentum in China and strong online sales. The company announced that it had reached its first quarter of $ 1 billion in online sales in North America as consumers bought new gym shoes and workout clothing while they were at home. In Greater China, sales rose 51%. And the company expects a similar revival in sales as other countries rebound from the pandemic.

Categories
Business

Treasury yields rise amid combined financial information, Brexit deal optimism

Government bond yields remained stable on Wednesday as investors digested a mix of economic data as well as signs of an impending Brexit trade deal between the UK and the European Union.

The yield on the benchmark 10-year Treasury note rose 3 basis points to 0.956%, while the yield on the 30-year government bond rose 4 basis points to 1.696%. Bond yields move inversely with prices.

Unemployment claims in the United States stood at 803,000 for the week ending December 19, the Department of Labor said on Wednesday. Economists polled by Dow Jones expected the initial claims to rise to 888,000. However, personal income declined 1.1% in November, compared to an estimate of 0.3% according to data from Dow Jones.

The yield on 10-year government bonds peaked when Brexit negotiators were on the verge of a new trade deal between the UK and the European Union. A deal would avoid tariffs due to come into effect at the beginning of the year.

President Donald Trump proposed on Tuesday not to sign a lengthy coronavirus aid package. He poured cold water on the $ 900 billion Covid relief bill that Congress passed earlier this week. Calling the measure an inappropriate “disgrace”, he called on lawmakers to make a number of changes, including larger direct payments to individuals and families.

The current package includes an increase in unemployment benefits, more small business loans, an additional $ 600 in direct payment, and funding to streamline the critical distribution of Covid-19 vaccines. However, Trump was dissatisfied with the $ 600 direct payments and requested an increase to $ 2,000.

Investors were also upset this week by a new strain of coronavirus first identified in the UK. The variant is believed to be up to 70% more transmissible than previous strains.

Categories
Politics

Pence Will Be Vaccinated on Dwell TV, Including to Administration’s Combined Virus Message

WASHINGTON — At 8 a.m. on Friday, Vice President Mike Pence will roll up his sleeve to receive the coronavirus vaccine, a televised symbol of reassurance for vaccine skeptics worried about its dangers. President-elect Joseph R. Biden Jr. is scheduled to receive his injection on camera next week.

Notably absent from any planned public proceedings is President Trump, who has said relatively little about the vaccine that may be seen as a singular achievement and has made it clear that he is not scheduled to take it himself.

The vaccine may provide a ray of hope at a time when the surging coronavirus is regularly killing around 3,000 Americans a day. But the message on the virus from the Trump administration’s highest officials remains muddled and often contradictory as they continue to toggle between facing reality and trying to dictate an alternate one.

Mr. Pence, who will receive his first vaccine shot and encourage Americans to follow suit almost six months to the day after he published an op-ed in The Wall Street Journal titled “There Isn’t a Coronavirus ‘Second Wave,’” hosted a holiday party at his residence this week where guests mingled in an outdoor tent and posed for pictures without masks, according to attendees.

Secretary of State Mike Pompeo was forced into quarantine after being exposed to someone who had tested positive for the coronavirus after hosting a string of large, indoor holiday parties at the State Department and attending a private party Saturday to watch the annual Army-Navy football game. Only one unofficial adviser in the president’s circle has performed a public mea culpa for his earlier disregard of public health guidelines: Chris Christie, the former New Jersey governor, who on Wednesday released a television ad urging Americans who do not wear a mask to learn from his own harrowing medical experience and wear one.

The president, who recovered from his own bout with the virus after being treated with experimental drugs at Walter Reed National Military Medical Center, is described by aides and allies as preoccupied with the election results he still refuses to accept, and has shown no interest in participating in any kind of public health message.

Even in private conversations, they said, Mr. Trump rarely even brings up the vaccine that the White House press secretary, Kayleigh McEnany, described this week as a “medical miracle” that the president, “as the innovator,” deserved credit for.

Instead, Mr. Trump has been focused on his efforts to overturn the election results and consumed by his anger at Senator Mitch McConnell, the majority leader, who this week finally congratulated Mr. Biden on his victory and said that “the Electoral College has spoken.” And he remains frustrated that the vaccine was not available before Election Day, people who have spoken to him said.

But the president is also aware that a large part of his political base is made up of supporters who refuse to wear masks and so-called anti-vaxxers suspicious of the Covid-19 vaccine. After months of positioning himself in opposition to public health experts, people familiar with his thinking said, Mr. Trump feels on some level as if he does not want to be seen as caving in the end to the advice of the same people he has disparaged.

Some supporters with large online followings have even criticized him in recent days for promoting the vaccine at all. “You know, Trump, probably 80 percent of your base does not want that vaccine,” DeAnna Lorraine, a QAnon conspiracy theorist with a large following on Infowars, said on her program last week. “I don’t care who takes it. I don’t care if Jesus takes it. I’m not taking the vaccine.”

As Mr. Trump hesitates, lawmakers and Supreme Court justices are expected to begin receiving vaccines in the coming days, though the doses will be limited. Dr. Brian P. Monahan, the Capitol physician, wrote to lawmakers on Thursday that he had been notified by the National Security Council that his office would receive a “specific number” of doses to “provide for continuity-of-government operations.” He told lawmakers they could begin scheduling appointments to be vaccinated and suggested eventually some “continuity-essential staff members” could also receive doses.

“My recommendation to you is absolutely unequivocal: There is no reason why you should defer receiving this vaccine,” Dr. Monahan wrote. “The benefit far exceeds any small risk.”

Covid-19 Vaccines ›

Answers to Your Vaccine Questions

With distribution of a coronavirus vaccine beginning in the U.S., here are answers to some questions you may be wondering about:

    • If I live in the U.S., when can I get the vaccine? While the exact order of vaccine recipients may vary by state, most will likely put medical workers and residents of long-term care facilities first. If you want to understand how this decision is getting made, this article will help.
    • When can I return to normal life after being vaccinated? Life will return to normal only when society as a whole gains enough protection against the coronavirus. Once countries authorize a vaccine, they’ll only be able to vaccinate a few percent of their citizens at most in the first couple months. The unvaccinated majority will still remain vulnerable to getting infected. A growing number of coronavirus vaccines are showing robust protection against becoming sick. But it’s also possible for people to spread the virus without even knowing they’re infected because they experience only mild symptoms or none at all. Scientists don’t yet know if the vaccines also block the transmission of the coronavirus. So for the time being, even vaccinated people will need to wear masks, avoid indoor crowds, and so on. Once enough people get vaccinated, it will become very difficult for the coronavirus to find vulnerable people to infect. Depending on how quickly we as a society achieve that goal, life might start approaching something like normal by the fall 2021.
    • If I’ve been vaccinated, do I still need to wear a mask? Yes, but not forever. Here’s why. The coronavirus vaccines are injected deep into the muscles and stimulate the immune system to produce antibodies. This appears to be enough protection to keep the vaccinated person from getting ill. But what’s not clear is whether it’s possible for the virus to bloom in the nose — and be sneezed or breathed out to infect others — even as antibodies elsewhere in the body have mobilized to prevent the vaccinated person from getting sick. The vaccine clinical trials were designed to determine whether vaccinated people are protected from illness — not to find out whether they could still spread the coronavirus. Based on studies of flu vaccine and even patients infected with Covid-19, researchers have reason to be hopeful that vaccinated people won’t spread the virus, but more research is needed. In the meantime, everyone — even vaccinated people — will need to think of themselves as possible silent spreaders and keep wearing a mask. Read more here.
    • Will it hurt? What are the side effects? The Pfizer and BioNTech vaccine is delivered as a shot in the arm, like other typical vaccines. The injection into your arm won’t feel different than any other vaccine, but the rate of short-lived side effects does appear higher than a flu shot. Tens of thousands of people have already received the vaccines, and none of them have reported any serious health problems. The side effects, which can resemble the symptoms of Covid-19, last about a day and appear more likely after the second dose. Early reports from vaccine trials suggest some people might need to take a day off from work because they feel lousy after receiving the second dose. In the Pfizer study, about half developed fatigue. Other side effects occurred in at least 25 to 33 percent of patients, sometimes more, including headaches, chills and muscle pain. While these experiences aren’t pleasant, they are a good sign that your own immune system is mounting a potent response to the vaccine that will provide long-lasting immunity.
    • Will mRNA vaccines change my genes? No. The vaccines from Moderna and Pfizer use a genetic molecule to prime the immune system. That molecule, known as mRNA, is eventually destroyed by the body. The mRNA is packaged in an oily bubble that can fuse to a cell, allowing the molecule to slip in. The cell uses the mRNA to make proteins from the coronavirus, which can stimulate the immune system. At any moment, each of our cells may contain hundreds of thousands of mRNA molecules, which they produce in order to make proteins of their own. Once those proteins are made, our cells then shred the mRNA with special enzymes. The mRNA molecules our cells make can only survive a matter of minutes. The mRNA in vaccines is engineered to withstand the cell’s enzymes a bit longer, so that the cells can make extra virus proteins and prompt a stronger immune response. But the mRNA can only last for a few days at most before they are destroyed.

Dr. Monahan began notifying lawmakers who were eligible for vaccines, and Mr. McConnell and Speaker Nancy Pelosi indicated they would be among the first vaccinated.

Public health officials said they were pleased that the vice president was going to be vaccinated in public, along with Surgeon General Jerome Adams, despite the president’s own lack of interest in sending a similar public health message.

“It’s the right thing to do,” said Dr. Vinay Gupta, an assistant professor of pulmonary and critical care medicine at the University of Washington. “The question is why don’t they do it together, six feet apart? It would be really powerful for the president, who has gotten exceptional treatment, to say that even in spite of getting the best care, it’s important that I get this vaccine.”

Mr. Trump’s decision, so far, to not get vaccinated, Dr. Gupta said, risked undermining any confidence that Mr. Pence might instill among skeptics who take their cues from the president alone.

“The fact that he is not getting it makes one wonder if he’s worried,” Dr. Gupta said. He also said the muddled messages from the administration — hailing the vaccine while hosting holiday parties — risked “giving false reassurances to the American people that the vaccine is here and vigilance is no longer required.”

White House officials have said Mr. Trump does not need to get vaccinated because he still has the protective effects of the monoclonal antibody cocktail that was used to treat him for the virus in October. But Dr. Gupta said that was a misinterpretation of the results and that there was “no scientific reason not to get vaccinated.”

The first lady, Melania Trump, who tested positive for the virus in October and credited her recovery to a regimen of “vitamins and healthy food,” also has no plans to receive the vaccine in public. A spokeswoman, Stephanie Grisham, declined to say whether Mrs. Trump would get vaccinated.

Mr. Trump said on Sunday that he would delay a plan for senior White House staff members to receive the coronavirus vaccine in the coming days, hours after The New York Times reported that the administration was planning to rapidly distribute the vaccine to its staff.

“I am not scheduled to take the vaccine,” Mr. Trump added, “but look forward to doing so at the appropriate time.”

But many White House officials are eager to receive the vaccine, even as the president has made it clear he wants them to wait.

Doctors from Walter Reed this week set up vaccine stations inside the Indian Treaty Room in the Eisenhower Executive Office Building. There, they began vaccinating staff considered critical to the functioning of government: That included Secret Service members, some medical staff and some other support staff who work near Mr. Trump.

But Mr. Trump made it clear he does not like the optics of West Wing aides receiving the vaccine, and the White House declined to detail who exactly was receiving it. The number of doses they had received, an official said, was classified.

“His priority is frontline workers, those in long-term care facilities, and he wants to make sure that the vulnerable get access first,” Ms. McEnany said this week. When it came to staff working in the West Wing, she added, “it will be a very limited group of people who have access to it, initially.”

Mr. Pence declined to get the vaccine on the first day it was available to him, despite pressure from aides who wanted him to do so quickly, publicly — and before Mr. Biden held his own public event. Mr. Pence, people familiar with his thinking said, was concerned about the optics of jumping the line, when he wanted the administration to receive credit for the distribution of an effective vaccine to frontline medical workers without any distractions.

Instead, Mr. Pence chose to delay his own vaccination until Friday, when his office has asked all of the television networks to carry him live.

Lara Jakes and Nicholas Fandos contributed reporting.