Here come BQ.1 and BQ1.1: https://www.usnews.com/news/health-news/articles/2022-10-14/new-omicron-subvariants-bq-1-bq-1-1-spread-amid-concerns-of-next-coronavirus-wave . These new subvariants of Omicron BA5 have grown to 11% of US COVID cases from less than 1% a month ago. WSJ: More: https://www.wsj.com/articles/new-omicron-covid-19-subvariants-on-the-rise-in-u-s-cdc-says-11665761579 .
The winter’s third virus, RSV: https://www.nbcnews.com/health/health-news/surge-rsv-virus-fills-hospitals-can-severely-sicken-babies-rcna52082 . Along with COVID and the flu, RSV is currently filling hospital beds with severely ill respiratory patients.
WSJ: Fujifilm drops anti-COVID drug Avigan: https://www.wsj.com/articles/fujifilm-drops-anti-covid-19-pill-avigan-once-hailed-as-silver-bullet-11665751145 . This sounds like the Japanese version of hydroxychloroquine.
WSJ: Measuring inflation for the Social Security COLA: https://www.wsj.com/articles/retirees-catch-a-break-with-the-social-security-cola-11665739802 . This is an interesting aspect of the Social Security program worth understanding. Any macro expense measurement is by definition different than the experience of individual retirees. However, government macro calculations often involve approximations, and they can have inherent biases. So the question raised here is whether the current COLA calculation has biases that overstate the average inflation experienced by retirees.
Contrasting advice on Medicare options: First, WSJ: https://www.wsj.com/articles/what-is-a-medicare-advantage-plan-and-should-you-sign-up-for-one-11665719145 . The Journal article shows the complexity of trying to squeeze down your Medicare premium expenditures. As noted here previously, there are way too many thumbs in the Medicare Advantage pie. My advice: Your baseline should be traditional Medicare [Parts A (hospital), B (physician) and D (drugs)] plus the most generous Medigap supplemental plan (now Plan G as Plan F has been closed to new enrollees). If you can comfortably afford that, stop your analysis. You will have almost no out-of-pocket expense, and peace of mind.
WSJ: Rising income at United Healthcare: https://www.wsj.com/articles/unitedhealth-boosts-earnings-forecast-on-rising-revenue-11665745024 . Note that United expects substantial premium increases on ACA plans next year, something reported here (and in the Journal) about a month ago.
More from WSJ on Kroger’s acquisition of Albertson’s: https://www.wsj.com/articles/kroger-to-merge-with-albertsons-in-a-24-6-billion-deal-11665745735 . This article more directly addresses the issues I raised in yesterday’s newsletter. The plan now is to identify stores to be spun off into a subsidiary owned by Albertson’s shareholders in order to address the reduction in competition caused by this merger. From my years working with retailers on acquisitions, I really doubt that the spun-off company can be a viable business on its own. However, we’ll have to see what Kroger proposes.
WSJ: Liz Truss’ problems keep getting worse: https://www.wsj.com/articles/what-happens-after-bank-of-england-bond-purchases-end-on-friday-11665746845 . Obviously, the UK bond market remains in crisis mode. The collapsing bond prices will significantly strain corporate unfunded pension liability in the UK. Meanwhile, she fires the finance minister three weeks after appointing him: https://www.wsj.com/articles/u-k-prime-minister-expected-to-u-turn-on-parts-of-tax-plan-11665746046 . These people have no clue about economics or government. That’s typically fatal to a government. King Charles III may be meeting another prime minister in the not-too-distant future. More: https://www.wsj.com/articles/new-u-k-chancellor-jeremy-hunt-seen-as-moderate-in-bid-to-appease-markets-11665771235 .
WSJ: We fail to ask the easy questions: https://www.wsj.com/articles/egypts-answer-to-a-rising-dollar-puts-everyday-items-out-of-reach-11665754180 . Here’s my beef with this food economics article. The man is apparently paying 10 Egyptian pounds for those two plates of food. As the Egyptian pound is worth a nickel, he’s handing over 50 cents and may expect change. However, maybe he gets a steep discount because, after all, he is Batman. But with the Journal, we just don’t know …
Pelosi looked to punch Orange Julius out on January 6: https://news.yahoo.com/pelosi-trump-jan-6-punch-010313970.html . And we have the real-time video to prove it. You go, girl!
DOJ asks appeals court to plug the plug on Judge Cannon’s special master: https://apnews.com/article/donald-trump-mar-a-lago-government-and-politics-0f3ba9b523fb39bcf6d4325970020c2f . The government is entitled to receive its property back immediately.
DeMentis stunt helps migrants to special visa: https://www.nbcnews.com/politics/immigration/texas-sheriff-puts-marthas-vineyard-migrants-path-apply-special-visa-d-rcna52190 . I love this result on every level. The abused migrants get a break, and likely get to stay in the US. Also, the Harvard law grad DeMentis gets outsmarted by a Texas sheriff, Javier Salazar, who is Hispanic. And DeMentis is in legal jeopardy in Florida for misspending state funds. As the creep sows, so shall the creep reap.
WSJ: Nikola founder guilty of fraud: https://www.wsj.com/articles/nikola-founder-trevor-milton-convicted-of-securities-fraud-11665779578 .
WSJ: Ukrainians continue to advance in southern Ukraine: https://www.wsj.com/articles/russia-urges-evacuation-of-occupied-kherson-steels-for-ukrainian-advance-11665742934 . In the last month, Russia has shown no ability to hold a defensive line.
Musk looks for the Defense Department to fund his communication set-up for Ukraine: https://apnews.com/article/russia-ukraine-elon-musk-spacex-twitter-inc-930015e9d4b6d7b4c51807bf5e2ea2ab . In some ways, Musk is holding DOD hostage here. But these communications are a critical asset in Ukraine’s military communications, so presumably something will be worked out. WSJ: More: https://www.wsj.com/articles/elon-musk-says-spacex-cant-fund-ukraine-starlink-service-indefinitely-11665758917 .
WSJ: Inflation in China rises to 2.8%: https://www.wsj.com/articles/chinas-inflation-rises-at-fastest-pace-in-two-years-11665756631 . As this is a state-run economy, inflation is easier to control. However, the question is to what extent the turmoil in property markets will overwhelm what is now weak growth.
Robbie Coltrane, the actor who played Magrid in the Harry Potter series, passes at 72: https://www.nbcnews.com/news/us-news/robbie-coltrane-actor-played-hagrid-harry-potter-films-dies-72-rcna52313 . Coltrane was 6 feet 1 inch tall. In the book, Hagrid is nearly twelve feet tall. Now that’s acting! Well, or drywall stilts …