Omicron – Business News Updates https://newsdaily.business Mon, 15 Aug 2022 11:30:37 +0000 en hourly 1 https://wordpress.org/?v=6.4.3 https://newsdaily.business/wp-content/uploads/2021/02/cropped-handshake-hand-gesture-dollar-money-finance-coin_96px-32x32.png Omicron - Business News Updates https://newsdaily.business 32 32 Live news updates: UK becomes first country to authorise Omicron vaccine https://newsdaily.business/2022/08/15/live-news-updates-uk-becomes-first-country-to-authorise-omicron-vaccine/ https://newsdaily.business/2022/08/15/live-news-updates-uk-becomes-first-country-to-authorise-omicron-vaccine/#respond Mon, 15 Aug 2022 11:30:37 +0000 https://newsdaily.business/2022/08/15/live-news-updates-uk-becomes-first-country-to-authorise-omicron-vaccine/ Afghanistan has two anniversaries coming up. Friday is Independence Day, commemorating the signing of the Treaty of Rawalpindi in 1919, in which Britain granted Afghanistan self-determination over its foreign affairs. However, most will be more concerned with Monday, which marks a year since the Taliban regained control. This week also begins with the 75th anniversary […]]]>


Afghanistan has two anniversaries coming up. Friday is Independence Day, commemorating the signing of the Treaty of Rawalpindi in 1919, in which Britain granted Afghanistan self-determination over its foreign affairs. However, most will be more concerned with Monday, which marks a year since the Taliban regained control.

This week also begins with the 75th anniversary of the British withdrawal from the Indian subcontinent, marking the partition of India and Pakistan. India’s prime minister Narendra Modi is to address the nation from historic Red Fort in Delhi with the focus likely to be on the troubles in Kashmir, the country’s only Muslim-majority state.

For British schoolchildren, it is all about the present as students in England, Wales and Northern Ireland on Thursday receive the emails and envelopes containing their A-level and vocational exam results. The task of accepting and finding university places through the clearing process will then begin in earnest.

As with the Advanced Higher exam scores announced for Scottish school students last week, the A-level results are expected to be down on last year, but probably up on pre-pandemic years. The exam body AQA has said papers will be more generously graded to reflect the return to normal test conditions.

The UK’s summer of discontent will be marked by another national rail strike this week, made worse by a general walkout across London’s public transport networks. Next Sunday, more than 1,900 workers at Britain’s biggest container port Felixstowe are set to strike, plus we have another week of the criminal barristers’ strike at courts in England and Wales, with no resolution in sight.

We are about to take a significant step forward in Nasa’s Artemis space programme. The mission aims to land the first woman and minority ethnic astronaut on the Moon, preparing for a long-term lunar presence and providing a stepping stone to sending humans to Mars. Nasa plans to livestream the transfer of the Artemis 1 rocket to the launch pad on Wednesday with the aim of completing lift-off by the end of the month.

Economic data

Inflation watchers will be kept busy this week with updates from the EU, Japan and Canada, plus, on Wednesday the publication of the Federal Open Market Committee’s latest meeting minutes will perhaps give some indication of the Fed’s willingness to tighten monetary policy.

It is also going to be a busy week for British economic news with figures on employment, inflation, productivity, retail sales, consumer confidence and house prices. All are likely to garner comment on the state of UK plc.

Companies

This week we reach the tail-end of the current reporting season with results from a clutch of retailers that are either purely online or have benefited greatly from ecommerce, notably Walmart on Tuesday, Target and Tencent a day later, and AO World on Thursday.

AO World is trying to shift its business model away from sales growth to building and maintaining margins. The problem for such retailers as we enter an economic slowdown will be maintaining sufficient sales demand.

Read the full week ahead calendar here.



Read More:Live news updates: UK becomes first country to authorise Omicron vaccine

2022-08-15 10:30:48

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Vaccine Stocks: FDA Experts Recommend Adding Omicron To Covid Boosters https://newsdaily.business/2022/06/29/vaccine-stocks-fda-experts-recommend-adding-omicron-to-covid-boosters/ https://newsdaily.business/2022/06/29/vaccine-stocks-fda-experts-recommend-adding-omicron-to-covid-boosters/#respond Wed, 29 Jun 2022 14:04:10 +0000 https://newsdaily.business/2022/06/29/vaccine-stocks-fda-experts-recommend-adding-omicron-to-covid-boosters/ Vaccine stocks diverged Wednesday after a split Food and Drug Administration panel voted to recommend including an omicron-fighting component in updated Covid boosters this fall. X The Vaccines and Related Biological Products Advisory Committee voted 19-2 in support of omicron-targeted booster shots. This puts the FDA on the path to authorizing updated vaccines in time […]]]>


Vaccine stocks diverged Wednesday after a split Food and Drug Administration panel voted to recommend including an omicron-fighting component in updated Covid boosters this fall.




X



The Vaccines and Related Biological Products Advisory Committee voted 19-2 in support of omicron-targeted booster shots. This puts the FDA on the path to authorizing updated vaccines in time for a potential seasonal Covid surge in the fall.

But plenty of questions remain. Pfizer (PFE), Moderna (MRNA) and Novavax (NVAX) tested several boosters, including shots that target omicron alone and bivalent injections. The latter targets omicron plus the ancestral strain of Covid. Complicating matters, omicron has its own sub-variants.

On Tuesday, the Centers for Disease Control and Prevention said two of those — known as B.A.4 and B.A.5 — make up a combined 52% of U.S. cases. Problematically, vaccine makers haven’t had a chance to test vaccines targeting those omicron spinoffs. Their updated shots target the earlier B.A.1 cousin.

It’s impossible to exactly pinpoint which variant will be dominant in the fall, Dr. Peter Marks, director of the FDA’s Center for Biologics Evaluation and Research, said during the meeting.

“What we’re doing today is working on a very challenging area because none of us has a crystal ball,” he said. “We’re trying to use every last ounce of what we can from predictive modeling and from the data we have that’s emerging to try to get ahead of a virus that’s been very crafty. For something that’s only nanometers in size, it’s been pretty darn crafty.”

Vaccine Stocks Tackle Omicron

In premarket trading on today’s stock market, vaccine stocks were mixed. Moderna stock lost 1.8%, trading near 139.70. Shares of Pfizer and its partner, BioNTech (BNTX), each advanced a fraction near 50.70 and 140.40, respectively. Novavax stock tumbled 4.4% near 48.80.

The matter now heads to the full FDA. The agency isn’t bound by the panel’s recommendation, but it often follows the advice. If successful at the FDA, the omicron vaccine matter will head to the CDC.

Two panelists voted against recommending an omicron update — Drs. Paul Offit and Henry Bernstein. Neither offered an explanation following the vote. However, prior to the vote Bernstein noted data are still limited for boosters targeting B.A.4 and B.A.5. And Offit said he was uncomfortable with the level of protection the omicron boosters have.

In recent testing, Pfizer said its omicron booster led to a 13.5-19.6 fold increase in antibodies capable of blocking omicron and its spinoffs. A bivalent vaccine — which could target omicron and the first strain — generated a 9.1-10.9 fold increase in antibodies, depending on the dosage. The vaccine stock inched a fraction higher on Monday following its booster news.

Novavax Highlighted

Similarly, Moderna tested a bivalent vaccine that includes an omicron-fighting component. It resulted in a 5.4-fold increase in antibodies capable of handling the B.A.4 and B.A.5 sub-variants of omicron.

In people previously infected with Covid, it led to a 6.3-fold increase. Officials currently expect those specific sub-variants to soon dominate Covid cases in the U.S.

Novavax doesn’t yet have authorization for a primary Covid series in the U.S. But the biotech is testing an omicron booster as well as a bivalent booster that contains an omicron-fighting component. In testing, both options led to “high levels” of effectiveness, the company said in briefing documents.

Dr. Amanda Cohn, another panelist, said the recommendation doesn’t necessarily mean boosters will be suggested for everyone in the fall. But the vote is an important step toward authorization. Panelist Dr. Arthur Reingold made a similar assessment.

“Who gets what and when?” he asked.

Drs. Wayne Marasco and James Hildreth, both panelists, were particularly impressed with Novavax’s Covid shot. The latter called Novavax’s results “the most compelling thing I have seen today.” He noted Novavax’s prototype booster, given at eight months, protected against B.A.1, B.A.2 and B.A.5.

Marasco questioned the ultimate effectiveness of the messenger RNA vaccines. Novavax uses a protein-based technology.

“I’m wondering after seeing this data if we’re not witnessing some of the limitations that there may be by the mRNA vaccines,” he said. “Yes, they were first out of the gate. But they don’t appear to be able to have that kind of breadth of protection. So, really, the question is do we need to change the Covid vaccine strain composition? I think the answer would be depending on what the vaccine is.”

Taking Care Of The Kids

Another important piece for the vaccine stocks: children. The FDA is only a week out from signing off on primary shots for children under the age of 5. There are little data in the pediatric population. That fact is unacceptable, panelist Dr. Archana Chatterjee said.

“The pediatric studies need to be done and they need to be done now,” she said.

Similarly, panelist Dr. Michael Nelson said immuno-bridging — a process that infers effectiveness of a vaccine under different circumstances — wouldn’t be sufficient for children. Because boys and young men are susceptible for heart inflammation following vaccination, dose response and safety studies should be completed in young children, he argued.

He worried about young children “always being behind the power curve in receiving vaccines.”

Panelist Dr. Cody Meissner also suggested repeated booster doses could ultimately lead to mounting side effects. He suggested the matter could be particularly tricky in children.

A Moderna representative said the company expects to have updated data from its omicron shots — an injection focused solely on omicron and a bivalent containing an omicron-fighting component — in babies and young children in October or November. However, these shots target B.A.1, not the more dominant B.A.4 and B.A.5 sub-variants.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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Read More:Vaccine Stocks: FDA Experts Recommend Adding Omicron To Covid Boosters

2022-06-29 13:26:00

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Omicron, trade weigh on US economy in first quarter https://newsdaily.business/2022/04/28/omicron-trade-weigh-on-us-economy-in-first-quarter/ https://newsdaily.business/2022/04/28/omicron-trade-weigh-on-us-economy-in-first-quarter/#respond Thu, 28 Apr 2022 14:57:47 +0000 https://newsdaily.business/2022/04/28/omicron-trade-weigh-on-us-economy-in-first-quarter/ Reuters 28 April, 2022, 08:25 pm Last modified: 28 April, 2022, 08:27 pm People line up outside a temporary unemployment office established by the Kentucky Labor Cabinet at the State Capitol Annex in Frankfort, Kentucky, US June 17, 2020. REUTERS/Bryan Woolston “> People line up outside a temporary unemployment office established by the Kentucky Labor […]]]>


Reuters

28 April, 2022, 08:25 pm

Last modified: 28 April, 2022, 08:27 pm

People line up outside a temporary unemployment office established by the Kentucky Labor Cabinet at the State Capitol Annex in Frankfort, Kentucky, US June 17, 2020. REUTERS/Bryan Woolston

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People line up outside a temporary unemployment office established by the Kentucky Labor Cabinet at the State Capitol Annex in Frankfort, Kentucky, US June 17, 2020. REUTERS/Bryan Woolston

People line up outside a temporary unemployment office established by the Kentucky Labor Cabinet at the State Capitol Annex in Frankfort, Kentucky, US June 17, 2020. REUTERS/Bryan Woolston

Summary

  • First-quarter GDP declines at 1.4% rate
  • Inventories, trade masking underlying economic strength
  • Business investment surges; consumer spending strong
  • Weekly jobless claims fall 5,000 to 180,000

The US economy unexpectedly contracted in the first quarter amid a resurgence in Covid-19 cases and drop in pandemic relief money from the government, but the decline in output is misleading as domestic demand remained strong.

The first decrease in gross domestic product in nearly two years, reported by the Commerce Department on Thursday, was mostly driven by a wider trade deficit as imports surged, and a slowdown in the pace of inventory accumulation from the fourth quarter’s robust pace.

A measure of domestic demand accelerated from the fourth quarter’s pace, allaying fears of either stagflation or a recession. The Federal Reserve is expected to hike interest rates by 50 basis points next Wednesday. The US central bank raised its policy interest rate by 25 basis points in March, and is soon likely to start trimming its asset holdings.

“The economy is still showing some resilience, but the first quarter GDP report signals the start of more moderate growth this year and next, largely in response to higher interest rates,” said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. “Despite the contraction, the Fed has little choice but to hike aggressively in May to corral inflation.”

Gross domestic product fell at a 1.4% annualized rate last quarter, the government said in its advance GDP estimate. The economy grew at a robust 6.9% pace in the fourth quarter. Economists polled by Reuters had forecast the economy growing at a 1.1% rate. Estimates ranged from as low as a 1.4% rate of contraction to as high as a 2.6% growth pace.

Last quarter, the economy also took a hit from supply-chain challenges, worker shortages and rampant inflation. Still, output remains 2.8% above its level in the fourth quarter of 2019. When measured on a year-on-year basis, the economy grew 3.6% in the first quarter.

Imports surged, in part amid front-loading by businesses fearful of shortages because of the Russia-Ukraine war. At the same time, exports plunged. That led to a sharp widening of the trade deficit, which subtracted 3.20 percentage points from GDP growth. Trade has now been a drag on growth for seven straight quarters.

Businesses have turned to imports to satisfy demand, with local manufacturers lacking the capacity to boost production. Though businesses continued to restock, the pace moderated from the fourth quarter, resulting in inventory investment cutting 0.84 percentage points from GDP growth.

US stocks opened higher. The dollar rose against a basket of currencies. US Treasury prices were mixed.

Growth in consumer spending, which accounts for more than two-thirds of US economic activity picked up to a rate of 2.7% from the fourth-quarter’s 2.5% pace, despite taking a hit from the winter wave of coronavirus cases, driven by the Omicron variant. Even with food and gasoline prices soaring, there is no sign yet of consumers pulling back.

Strong wage gains amid a tightening labor market and at least $2 trillion in excess savings accumulated during the pandemic are providing a cushion against inflation. According to data from Bank of America Securities, lower-income consumers, who tend to be disproportionately affected by inflation, were showing greater resilience.

Strengthening labor market conditions were reinforced by a separate report from the Labor Department on Thursday showing initial claims for state unemployment benefits fell 5,000 to a seasonally adjusted 180,000 for the week ended 23 April.

Economists had forecast 180,000 applications for the latest week. Business investment accelerated, with spending on equipment increasing at a 15.3% rate last quarter.

That combined with solid consumer spending to boost final sales to private domestic purchasers at a 3.7% rate. This measure of domestic demand, which excludes trade, inventories and government spending, increased at a 2.7% rate in the fourth-quarter. Final sales to private domestic purchasers account for roughly 85% of aggregate spending.

Still, concerns remain that the Fed could aggressively tighten monetary policy and tip the economy into recession over the next 18 months. The housing market is already showing signs of slowing, with the 30-year fixed mortgage shooting above 5%.

But much would depend on how quickly geopolitical tensions and supply chains ease, and whether inflation subsides.





Read More:Omicron, trade weigh on US economy in first quarter

2022-04-28 14:25:00

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Record 981 new cases; PM to front up on NZ’s next steps https://newsdaily.business/2022/02/14/record-981-new-cases-pm-to-front-up-on-nzs-next-steps/ https://newsdaily.business/2022/02/14/record-981-new-cases-pm-to-front-up-on-nzs-next-steps/#respond Mon, 14 Feb 2022 02:20:13 +0000 https://newsdaily.business/2022/02/14/record-981-new-cases-pm-to-front-up-on-nzs-next-steps/ There are a record 981 Covid cases in the community today. Today’s cases are in Northland (21), Auckland (768), Waikato (82), Bay of Plenty (23), Lakes (12), Hawke’s Bay (5), MidCentral (5), Taranaki (1), Tairawhiti (6), Wairarapa (12), Wellington (6), Hutt Valley (14), Nelson Marlborough (2), Canterbury (4), South Canterbury (1) and Southern (19), the […]]]>


There are a record 981 Covid cases in the community today.

Today’s cases are in Northland (21), Auckland (768), Waikato (82), Bay of Plenty (23), Lakes (12), Hawke’s Bay (5), MidCentral (5), Taranaki (1), Tairawhiti (6), Wairarapa (12), Wellington (6), Hutt Valley (14), Nelson Marlborough (2), Canterbury (4), South Canterbury (1) and Southern (19), the Ministry of Health said in a statement this afternoon.

Thirty-nine people with Covid are in hospitals in Whangārei, Auckland, Waikato, Rotorua, Wellington and Christchurch – none in ICU or HDU. The average age of those in hospital is 55.

Twenty-five new Covid cases were also detected at the border.

“Once again, the further increase in new cases today is another reminder that, as expected, the highly transmissible Omicron variant is now spreading in our communities as we have seen in other countries,” the ministry said.

Boosters and testing

So far, 60 per cent of eligible New Zealanders have had their booster shot. Yesterday, 20,739 boosters were given and 1268 paediatric vaccine doses.

Some 17,616 tests have been carried out in the past 24 hours.

The Ministry of Health also confirmed there are now 7.2 million Rapid Antigen Tests in the country.

Today’s update comes as Cabinet prepares to meet to discuss a shift in the Omicron response after the surge in positive cases.

A number of high-risk locations of interest, exposed to the virus over the Waitangi Day long weekend, were added to the growing list this morning.

They include popular Auckland attraction SEA LIFE Kelly Tarlton’s, New Windsor School swimming pool, The Bank Space in Grey Lynn and a private function at Worlds End Bar in Tauranga.

These new exposure sites come as the Ministry of Health is set to release the latest case numbers in a statement at 1pm, revealing whether the upward trajectory will continue.

Prime Minister Jacinda Ardern will front a post-Cabinet press conference at 4pm.

A Waikato school has told its senior students to stay home today and tomorrow after multiple Covid cases were confirmed at the school.

In a notice to the school’s community, Fraser High School said the cases were infectious while at school over three days.

Yesterday there were 810 new infections of the virus in the community, up from 454 the previous day.

Eighteen cases of Covid-19, including five historical cases, were detected at the border.

Thirty-two people were in hospital and none were in ICU or HDU.

Phase 2 shift likely in coming days

The rise in case numbers means a shift to Phase 2 of the Omicron response is likely to happen in the coming days.

Daily case numbers of 1000 or more would trigger the shift.

The second part of the strategy includes greater use rapid antigen testing and shorter isolation periods.

Te Pūnaha Matatini complex systems researcher Dion O’Neale said the rise in cases put New Zealand on track to reach 1000 cases a day by the middle of the week.

While record days have resulted in numbers like New Zealanders have never seen before, University of Otago epidemiologist professor Michael Baker warns the real numbers could be as much as 10 times the official figures.

“Most people with the infection, particularly when they’re highly vaccinated, will have very few symptoms and many will have no symptoms at all, but they can still transmit the virus.

“For every case that’s recorded, we might have another five people out there who have very mild symptoms that are not being tested.”

PM to businesses: Start planning

This morning Ardern said businesses should start planning for the close contact exemption scheme coming in the next few days.

A business could register as a critical workplace. They would be given a document to verify this and the worker then needed to take that documentation, some ID and proof they were a close contact to a local provider such as a pharmacy who would then give them a pack of 10 rapid antigen tests.

Meanwhile, as the protest at Parliament enters its second week, Ardern said she did not approve of the tactics they had seen from the protesters and said they and their children should go home.

While she believed the protesters were making anti-vaccine rather than anti-mandate stances, she reiterated the Government would only use restrictions for as long as they needed to and they had already moved away from lockdowns.

“When we can we will, but when we are on the upside of a curve in the Omicron outbreak – now is not the time,” she said.



Read More:Record 981 new cases; PM to front up on NZ’s next steps

2022-02-13 23:33:00

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Weekly Economic & Financial Commentary: Omicron Not Enough to Crash the Payroll Party https://newsdaily.business/2022/02/05/weekly-economic-financial-commentary-omicron-not-enough-to-crash-the-payroll-party/ https://newsdaily.business/2022/02/05/weekly-economic-financial-commentary-omicron-not-enough-to-crash-the-payroll-party/#respond Sat, 05 Feb 2022 07:19:57 +0000 https://newsdaily.business/2022/02/05/weekly-economic-financial-commentary-omicron-not-enough-to-crash-the-payroll-party/ Summary United States: Omicron Not Enough to Crash the Payroll Party This week ushered in a broad range of economic indicators that covered everything from supply chains to the housing market, but needless to say it was the labor market that was top of mind. Nonfarm payrolls rose 467K in January, which was not only […]]]>


Summary

United States: Omicron Not Enough to Crash the Payroll Party

  • This week ushered in a broad range of economic indicators that covered everything from supply chains to the housing market, but needless to say it was the labor market that was top of mind. Nonfarm payrolls rose 467K in January, which was not only nearly four times the consensus estimate but also well ahead of any forecast. JOLTS and nonfarm productivity pointed to a strong and thriving labor force, while January’s ISM surveys and construction spending data affirmed that we are not out of the woods yet when it comes to supply chain struggles and higher prices.
  • Next week: NFIB Small Business (Tuesday), Trade Balance (Tuesday), CPI (Thursday)

International: Central Banks Take Center Stage

  • The Bank of England delivered a hawkish monetary policy announcement, raising its policy rate by 25 bps, but with several policymakers dissenting in favor of a larger move. Given the hawkish announcement, we now expect the Bank of England to raise rates by more and earlier than previously. The European Central Bank held monetary policy steady but said inflation risks were to the upside, signaling it would re-assess its policy outlook in March.
  • Next week: Brazil CPI (Wednesday), Mexico Overnight Rate (Thursday), U.K. GDP (Friday)

Interest Rate Watch: Shrinking Budget Deficit Leads Treasury to Issue Less Debt

  • The federal budget deficit is narrowing sharply, and as a result, the U.S. Treasury announced this week that it would continue cutting the size of its Treasury security auctions, given the declining financing need.

Topic of the Week: Economic Resiliency and Progress in the Black & African American Community

  • The Black and African American community in the United States has faced significant structural obstacles over the past few centuries that have impeded full economic participation. In commemoration of Black History Month, we look at the recent economic progress the Black and African American community has made, despite these obstacles.

Full report here.



Read More:Weekly Economic & Financial Commentary: Omicron Not Enough to Crash the Payroll Party

2022-02-05 04:22:15

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Omicron to Tame Employment Growth in Canada – Temporarily https://newsdaily.business/2022/01/28/omicron-to-tame-employment-growth-in-canada-temporarily/ https://newsdaily.business/2022/01/28/omicron-to-tame-employment-growth-in-canada-temporarily/#respond Fri, 28 Jan 2022 18:33:33 +0000 https://newsdaily.business/2022/01/28/omicron-to-tame-employment-growth-in-canada-temporarily/ Canadian labour market data for January is expected to weaken substantially. We’re eyeing a 75,000 drop in employment and an uptick in the unemployment rate to 6.4% after COVID-19 restrictions prompted business closures in large parts of the country. Businesses in virtually all industries were reporting acute labour shortages just ahead of the Omicron surge, […]]]>


Canadian labour market data for January is expected to weaken substantially. We’re eyeing a 75,000 drop in employment and an uptick in the unemployment rate to 6.4% after COVID-19 restrictions prompted business closures in large parts of the country. Businesses in virtually all industries were reporting acute labour shortages just ahead of the Omicron surge, and are expected to be hesitant to let workers go as quickly as in past virus waves. For sectors unaffected by closures, high rates of absenteeism due to illness and self-isolation will weigh on total hours worked, if not official employment counts. Still, the number of available unemployed workers relative to the number of job postings is already very low—and that will likely still be the case once restrictions are lifted. Health experts are cautiously optimistic about the trajectory of infections in Canada. Overall we do not expect Omicron disruptions to extend significantly beyond the first quarter of 2022.

Coming alongside the employment report will be a somewhat outdated November GDP release. We expect StatCan’s preliminary estimate of a 0.3% increase to be confirmed. Manufacturing, wholesale and retail sales all ticked up in November, with auto production bouncing back at least temporarily from earlier supply chain disruptions. But this strength was partially offset by significant disruptions to transportation activities due to severe flooding in B.C. We expect the early estimate of December GDP growth to be similar to November’s. Our tracking of card transactions showed a large pullback in travel spending due to Omicron in December, but hours worked inched 0.6% higher and the ‘flash’ manufacturing sales estimate showed a 0.8% increase. Overall that should cap off Q4 growth at around 6% annualized, and leave output in 2021 4.6% higher on average than the year before similar to the Bank of Canada’s latest estimate in January.

Week ahead data watch:

  • US payroll employment in January is expect to rise another 150,000 and the unemployment rate to edge down to 3.8%. The spread of the Omicron variant is not expected to have a significant impact on employment, but could lower hours worked with rapid spread meaning large numbers of work were likely off sick.



Read More:Omicron to Tame Employment Growth in Canada – Temporarily

2022-01-28 15:25:07

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Omicron knocks UK and eurozone growth to 11-month lows; banknote maker De La Rue warns on profits – business live | https://newsdaily.business/2022/01/24/omicron-knocks-uk-and-eurozone-growth-to-11-month-lows-banknote-maker-de-la-rue-warns-on-profits-business-live/ https://newsdaily.business/2022/01/24/omicron-knocks-uk-and-eurozone-growth-to-11-month-lows-banknote-maker-de-la-rue-warns-on-profits-business-live/#respond Mon, 24 Jan 2022 12:23:45 +0000 https://newsdaily.business/2022/01/24/omicron-knocks-uk-and-eurozone-growth-to-11-month-lows-banknote-maker-de-la-rue-warns-on-profits-business-live/

The Omicron variant has dragged UK company growth to its slowest since the lockdowns nearly a year ago.

British business activity cooled to an 11-month low in January, led by a slowdown in the services sector, a closely-watched survey of UK purchasing managers from IHS Markit shows.

Customer-facing parts of the economy were, understandably, worst hit by Omicron, as the UK experienced a “two-speed recovery in January”.

The service sector slowed for the third month running, with hospitality, leisure and travel all struggling due to the restrictions which were introduced last month, and which are now being eased.

Companies across the economy reported rising backlogs of work due to staff absences, as record numbers of Covid-19 infections led to more people off ill or isolating.

But there’s good news too — manufacturing output hit a five-month high, thanks to a “sustained turnaround in materials availability” which may show the supply chain crisis is finally easing.

Business confidence in the outlook also picked up, driving sustained solid jobs growth.

The IHS Markit/CIPS Composite PMI, which tracks activity in the economy, dipped in January to 53.4 from 53.6.

That’s the lowest in 11 months, and weaker than expected (economists forecast a rise to 55, which would have shown a pick-up). But it is higher than the eurozone’s composite PMI of 52.4 (see earlier post), suggesting the UK has started 2022 a little stronger.

IHS Markit PMI™
(@IHSMarkitPMI)

🇬🇧 January flash data for the UK pointed to a slower expansion with the #PMI at 53.4 (Dec: 53.6). Greater material availability led to a faster rise in the manufacturing sector while rising Omicron cases continued to hit services. Read more: https://t.co/su0dpz6cK6 pic.twitter.com/4I8VYKbY0q


January 24, 2022

Chris Williamson, chief business economist at IHS Markit, says there were wide variations across different sectors this month.


Consumer-facing businesses have been hit hard by Omicron and manufactures have reported a further worrying weakening of order book growth, but other business sectors have remained encouragingly robust.

Looking ahead, while the Omicron wave meant the hospitality sector has sunk into a third steep downturn, these restrictions are now easing, meaning this downturn should be brief. Many business and financial services companies have meanwhile been far less affected by Omicron, and saw business growth accelerate at the start of the year

With inflationary pressures remaining elevated at near-record levels, this all adds to the likelihood of the Bank of England hiking interest rates again at its upcoming meeting, he adds:





Read More:Omicron knocks UK and eurozone growth to 11-month lows; banknote maker De La Rue warns on profits – business live |

2022-01-24 11:41:45

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Starbucks, Omicron and the COVID endemicity endgame: Morning Brief https://newsdaily.business/2022/01/21/starbucks-omicron-and-the-covid-endemicity-endgame-morning-brief/ https://newsdaily.business/2022/01/21/starbucks-omicron-and-the-covid-endemicity-endgame-morning-brief/#respond Fri, 21 Jan 2022 11:58:45 +0000 https://newsdaily.business/2022/01/21/starbucks-omicron-and-the-covid-endemicity-endgame-morning-brief/ This article first appeared in the Morning Brief. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe Friday, January 21, 2021 Coffee giant rips off the band-aid, clearing a path for others There was no shortage of market-moving headlines in Thursday’s session: Netflix’s subscriber growth outlook […]]]>


This article first appeared in the Morning Brief. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe

Friday, January 21, 2021

Coffee giant rips off the band-aid, clearing a path for others

There was no shortage of market-moving headlines in Thursday’s session: Netflix’s subscriber growth outlook let down investors, while battered tech stocks struggled to claw their way out of correction territory. And Peloton shocked the world (and its investors) by halting production on its high-end exercise equipment, according to a bombshell CNBC report.

However, kudos to Yahoo Finance’s Anjalee Khemlani for honing in on what was arguably the day’s most intriguing theme, which also ties into another surprising development that involved Starbucks (SBUX). In the wake of last week’s Supreme Court ruling that partly struck down the Biden administration’s COVID-19 vaccine mandate, the coffee giant became the first major company to backtrack on its own requirement that workers be inoculated.

Khemlani’s conversation with University of Saskatchewan virologist Angela Rasmussen yielded an insight we at the Morning Brief recently explored — namely, what the arrival of the hyper-transmissive Omicron variant means for society, and for a patchwork of restrictions that are becoming more counterproductive by the day.

Employing the concept of “endemicity” — a highfalutin epidemiological term that, in the interest of full disclosure, I literally just learned how to pronounce a few weeks ago — Rasmussen essentially dashed hopes that we can vaccinate our way out of the pandemic.

“I don’t think that elimination is going to be possible with this virus,” she told Yahoo Finance Live, as the virus moves from pandemic to endemic. That sentiment was reinforced by the World Health Organization’s director of emergency programs, Dr. Mike Ryan.

“We won’t end the virus this year, we may never end the virus. These pandemic viruses end up becoming part of the ecosystem,” Ryan told the World Economic Forum, Khemlani reported.

Previously, the Morning Brief has argued that whatever specious utility vaccine protocols may have enjoyed early on has been upended by the appearance of a variant that’s infected scores of the vaccinated.

Among other things, the debatable efficacy of mandates has isolated the unvaccinated in ways that deprive struggling businesses of patrons, and needed workers of gainful employment. For those reasons, the Czech Republic’s newly-elected government rightly reversed a plan to require vaccinations among citizens there, a move designed to avoid “deepening fissures” among the electorate.

The New York Times hit the nail on the head by highlighting how Starbucks’ move to quickly abandon its employee mandate shows how “retailers and their advocates had been among the most vocal critics of the federal government’s vaccine rule, saying it would have exacerbated their struggles to hire or hold on to workers when millions of unemployed Americans remain on the sidelines of the job market.”

To be certain, the coffee giant and other brands will need to comply with state and federal guidelines, and there’s no indication states like New York and California will back away from their insistence on vaccine restrictions.

Yet both (blue) states have seen an uneven recovery that’s sent many citizens in search of greener pastures in (red) areas — mainly in an effort to escape COVID-19 restrictions (alas, a story for another edition). The variant’s rapid spread among both the vaccinated and unvaccinated have shattered the illusion that the virus can somehow be mandated into submission.

And the unexpected spike in the latest jobless claims data served as a timely reminder that even a white-hot jobs market isn’t entirely impervious to uncertainty stemming from COVID-19 — or, for that matter, ill-advised restrictions that block workers from jobs, or force companies to get rid of them if they don’t comply (looking at you, Jamie Dimon).

By Javier E. David, editor at Yahoo Finance. Follow him at @Teflongeek

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What to watch today

Economy

Earnings

Pre-market

  • 7:00 a.m. ET: Schlumberger (SLB) is expected to report adjusted earnings of 39 cents a share on revenue of $6.09 billion

  • 7:30 a.m. ET: Ally Financial (ALLY) is expected to report adjusted earnings of $1.97 per share on revenue of $2.07 billion

Politics

  • President Biden’s schedule includes a speech about the ongoing semiconductor shortage at 11:00 a.m. ET. Commerce Secretary Gina Raimondo will also speak. A virtual meeting with the Prime Minister of Japan and a speech to U.S. mayors is also on the president’s agenda.

  • Today’s program at the virtual World Economic Forum includes a speech by Treasury Secretary Janet Yellen at 11:30 a.m. ET.

Top News

European stock markets slump as global sentiment sours [Yahoo Finance UK]

Netflix shares sink after subscriber outlook misses estimates [Yahoo Finance]

Intel plans $20 billion chip manufacturing site in Ohio [Reuters]

Bitcoin tumbles below $40,000 to lowest level in five months [Bloomberg]

Yahoo Finance Highlights

Fed calls central bank digital coin a ‘highly significant innovation’ in white paper

Why the Nasdaq in correction territory may be a short-term buy signal

Union Pacific calls for ‘strong deterrence’ vs train robbers, won’t go ‘nuclear’

Read the latest financial and business news from Yahoo Finance

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Read More:Starbucks, Omicron and the COVID endemicity endgame: Morning Brief

2022-01-21 10:59:06

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United posts $646M loss as omicron casts shadow https://newsdaily.business/2022/01/20/united-posts-646m-loss-as-omicron-casts-shadow/ https://newsdaily.business/2022/01/20/united-posts-646m-loss-as-omicron-casts-shadow/#respond Thu, 20 Jan 2022 06:04:39 +0000 https://newsdaily.business/2022/01/20/united-posts-646m-loss-as-omicron-casts-shadow/ Check out what’s clicking on FoxBusiness.com. United Airlines lost $646 million in the fourth quarter and said Wednesday that the current spike in COVID-19 cases will hurt its results in the March quarter. The airline said it expects its first-quarter revenue will be down 20% to 25% from the same period in 2019. Costs other […]]]>


United Airlines lost $646 million in the fourth quarter and said Wednesday that the current spike in COVID-19 cases will hurt its results in the March quarter.

The airline said it expects its first-quarter revenue will be down 20% to 25% from the same period in 2019. Costs other than fuel will rise about 15% on a per-seat basis.

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The omicron variant of the virus is showing up in United’s plans for 2022. The airline had once hoped to operate 5% more flights than it did in 2019, but now expects to fly less this year than it did before the pandemic.

United said omicron is hurting near-term bookings, but the outlook is better for travel in spring and summer. The Chicago-based airline said it is on track to hit long-term financial targets for 2023 and 2026.

AT&T, VERIZON ALTER 5G ROLLOUT AS UNITED AIRLINES WARNS OF POTENTIAL FLIGHT CANCELLATIONS

Company officials are scheduled to discuss the results with analysts on Thursday.

United’s fourth-quarter loss compared with a loss of $1.9 billion a year ago and profit of $641 million in the fourth quarter of 2019.

Excluding special items, the company said its adjusted loss was $1.60 per share. Analysts expected a wider loss of $2.09 per share, according to a FactSet survey.

Ticker Security Last Change Change %
UAL UNITED AIRLINES HOLDINGS INC. 44.40 -1.21 -2.65%

Revenue was $8.19 billion, 25% below the same period in 2019 but better than the $7.96 billion forecast by analysts. Passengers flew 28% fewer miles than they did two years earlier.

United lost $1.96 billion for all of 2021, even after getting $4 billion in federal pandemic relief to help cover labor costs.

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The airline finished the year with 84,100 employees, down from 95,900 at the end of 2019.

Shares in United Airlines Holdings Inc. were down about 2.4% in extended trading following the release of the earnings report.



Read More:United posts $646M loss as omicron casts shadow

2022-01-20 03:34:39

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Oil rises as investors focus on OPEC+ decision amid growing Omicron fears https://newsdaily.business/2021/12/02/oil-rises-as-investors-focus-on-opec-decision-amid-growing-omicron-fears/ https://newsdaily.business/2021/12/02/oil-rises-as-investors-focus-on-opec-decision-amid-growing-omicron-fears/#respond Thu, 02 Dec 2021 10:11:48 +0000 https://newsdaily.business/2021/12/02/oil-rises-as-investors-focus-on-opec-decision-amid-growing-omicron-fears/ General view shows Mexican state oil firm Pemex’s Cadereyta refinery, in Cadereyta, on the outskirts of Monterrey, Mexico April 20, 2020. REUTERS/Daniel Becerril/File Photo Register now for FREE unlimited access to reuters.com Register Supply policy to be decided by OPEC+ on Thursday U.S. could tweak timing of stockpile release U.S. crude stocks down, fuel inventories […]]]>


General view shows Mexican state oil firm Pemex’s Cadereyta refinery, in Cadereyta, on the outskirts of Monterrey, Mexico April 20, 2020. REUTERS/Daniel Becerril/File Photo

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  • Supply policy to be decided by OPEC+ on Thursday
  • U.S. could tweak timing of stockpile release
  • U.S. crude stocks down, fuel inventories higher -EIA

TOKYO, Dec 2 (Reuters) – Oil prices rose on Thursday, more than recouping the previous day’s losses, as investors adjusted positions ahead of an OPEC+ decision over supply policy, but gains were capped amid fears the Omicron coronavirus variant will hurt fuel demand.

Brent crude futures rose $1.24, or 1.8%, to $70.11 by 0748 GMT, having eased 0.5% in the previous session.

U.S. West Texas Intermediate (WTI) crude futures gained $1.13, or 1.7%, to $66.70 a barrel, after a 0.9% drop on Wednesday.

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“Investors unwound their positions ahead of the OPEC+ decision as oil prices have declined so fast and so much over the past week,” said Tsuyoshi Ueno, senior economist at NLI Research Institute.

Global oil prices have lost more than $10 a barrel since last Thursday, when news of Omicron first shook investors.

“Market will be watching closely the producer group’s decision as well as comments from some of key members after the meeting to suggest their future policy,” Ueno said.

The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, will likely decide on Thursday whether to release more oil into the market as previously planned or restrain supply. read more

Since August, the group has been adding an additional 400,000 barrels per day (bpd) of output to global supply each month, as it gradually winds down record cuts agreed in 2020.

The new variant, though, has complicated the decision-making process, with some observers speculating OPEC+ could pause those additions in January in an attempt to slow supply growth.

“Oil prices climbed as some investors anticipate that OPEC+ will decide to maintain the current supply levels in January to cushion any damage on demand from the Omicron spread,” said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd.

Fears over the impact of the Omicron variant of the coronavirus rose after the first case was reported in the United States, and Japan’s central bank has warned of economic pain as countries respond with tighter containment measures. read more

U.S. Deputy Energy Secretary David Turk said President Joe Biden’s administration could adjust the timing of its planned release of strategic crude oil stockpiles if global energy prices drop substantially. read more

Gains in oil markets on Thursday were capped as the U.S. weekly inventory data showed U.S. crude stocks fell less than expected last week, while gasoline and distillate inventories rose much more than expected as demand weakened.

Crude inventories (USOILC=ECI) fell by 910,000 barrels in the week to Nov. 26, the Energy Information Administration (EIA) said, compared with analyst expectations in a Reuters poll for a drop of 1.2 million barrels. read more

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Reporting by Yuka Obayashi; Editing by Tom Hogue and Muralikumar Anantharaman

Our Standards: The Thomson Reuters Trust Principles.



Read More:Oil rises as investors focus on OPEC+ decision amid growing Omicron fears

2021-12-02 08:23:00

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