News for December 10 — China’s Healthcare under COVID Stress

China’s healthcare under COVID stress: https://www.usnews.com/news/world/articles/2022-12-10/chinas-healthcare-system-put-to-the-test-as-covid-curbs-fade . Each day the news suggests that China is massively underreporting a nationwide COVID wave. More: https://www.usnews.com/news/world/articles/2022-12-10/chinas-capital-swings-from-anger-over-zero-covid-to-coping-with-infections .

WSJ: Antibiotic shortage in Europe: https://www.wsj.com/articles/europe-is-hit-by-shortages-of-antibiotics-11670639357 . The US also has shortages of common medicines, such as amoxicillin and Adderall: https://abcnews.go.com/GMA/Wellness/parents-concerned-empty-drug-store-shelves-shortage-popular/story?id=94816885 . Also: https://www.cbsnews.com/video/mental-health-apps-to-blame-for-adderall-shortage/ .

Mark Cuban promotes cost-plus approach to disrupt current US drug distribution channels: https://news.yahoo.com/mark-cuban-cost-plus-drugs-company-pharmacy-supply-chain-132531582.html .

BlackRock: Tough times ahead for the stock and bond markets: https://finance.yahoo.com/finance/news/blackrock-says-throw-old-investment-190219280.html . I agree with their conclusion, but my reasoning is a bit different. First, in my view asset classes now tend to move in tandem, so that diversification is less protective than in the past. Second, while I agree that global supply chains will be significantly disrupted, they will replaced by a “two axes” system headed by the US and the West on one side, and China on the other. Third, China’s decades of rapid growth have come to an end. This will affect many third-world economies that rely on trade with China.

WSJ: Higher bond rates hurting US bank stocks: https://www.wsj.com/articles/higher-for-longer-rates-are-hammering-bank-stocks-11670640456 . While higher interest rates represent an increased earning potential for lenders, their bond portfolios have declined in value.

WSJ: Russia attacks southern Ukraine with more Iranian drones: https://www.wsj.com/articles/russia-launches-new-drone-attacks-as-partnership-with-iran-deepens-11670666867 .

Kevin McCarthy: the dog who caught the bus: https://thehill.com/homenews/house/3768571-seven-hardline-house-republicans-lay-out-speaker-demands-amid-mccarthy-opposition/ . The slim GOP House majority means that Kevin must make deals with his caucus members to gain and retain power. Problem is, even 5 hold-outs can shut him down. Right now there are many more than 5. But what better alternative will emerge that the caucus can agree on?

WSJ: Arizona election deniers deny they lost: https://www.wsj.com/articles/kari-lake-files-lawsuit-to-be-declared-winner-in-arizona-11670687533 . Kari Lake lost by 17,000 votes, Mark Finchem by 120,000. Please just go away.

World Cup 2022: France 2 – England 1: https://www.cnn.com/2022/12/10/football/france-england-2022-world-cup-spt-intl/index.html . Overall, this game featured a tremendous level of pressure on the ball by both sides. France’s two goals came from the field, while England’s came on a penalty kick.