Paxlovid moves toward full approval: https://apnews.com/article/paxlovid-covid19-pill-fda-pandemic-illness-138d8c809c8519668e2c0bec6ab8ccba . Today’s panel vote was widely expected.
Maternal deaths nearly double during pandemic: https://www.usnews.com/news/health-news/articles/2023-03-16/cdc-study-maternal-deaths-spiked-dramatically-during-pandemic . Minority women saw the largest increases in the rate of maternal mortality. WSJ: More: https://www.wsj.com/articles/u-s-maternal-mortality-hits-highest-level-since-1965-f9829776 . Still more: https://www.wsj.com/articles/women-maternal-mortality-death-rate-what-to-know-1720cfd8 .
WSJ: Shortage of prostate cancer drug: https://www.wsj.com/articles/shortage-of-last-ditch-drug-for-advanced-prostate-cancer-worries-doctors-18de193d .
WSJ: Record global cocaine supply: https://www.wsj.com/articles/global-supply-of-cocaine-hits-record-level-u-n-says-2acec721 .
Sanofi $35 insulin price cap: https://www.nbcnews.com/health/health-news/sanofi-insulin-price-cap-rcna75346 . Sanofi is the last of the major manufacturers distributing insulin in the US to cap insulin prices. WSJ: More: https://www.wsj.com/articles/diabetes-drug-giant-sanofi-cuts-insulin-prices-by-up-to-78-e9d7ada3 .
Silent pandemic: Bacterial drug resistance: https://www.foxnews.com/health/silent-pandemic-warning-who-bacteria-killing-too-many-people-antimicrobial-resistance . We need new classes of antibiotics.
WSJ: Weekly jobless claims decline to 192,000: https://www.wsj.com/articles/jobless-claims-fell-last-week-showing-still-strong-labor-market-cc2be87f . The labor market remains robust.
Banking turmoil jeopardizes commercial property prices: WSJ: https://www.wsj.com/articles/bank-crisis-adds-a-fresh-crack-in-propertys-foundations-1bc529f0 . The major increase in remote work is another cautionary development.
WSJ: Repercussions of the SVB failure: valuation of start-ups: https://www.wsj.com/articles/the-svb-tremors-will-shake-softbank-dc7fab4 .
First Republic Bank considers sale: https://www.benzinga.com/news/23/03/31373583/bank-touted-by-jim-cramer-as-very-good-reportedly-considers-sale-among-other-options . As a warning to readers, this does not seem like a good time to buy this stock. Cramer’s tout will keep his fan base in the stock, but he famously recommended SVB within 2 weeks of its failure. The recent junk ratings are much more reliable than Cramer and his TV show. There are other (very large) banks that have been hit by the recent failures, and which have essentially no trouble in comparison to First Republic.
UPDATE: Largest US banks throw First Republic a $30 billion lifeline: https://news.yahoo.com/biggest-banks-to-infuse-first-republic-with-30-billion-to-stabilize-troubled-lender-192748893.html . One would guess that this will reduce but not end the flow of assets out of First Republic. FURTHER UPDATE: First Republic stock crashes in after hours trading: https://www.benzinga.com/news/23/03/31390446/first-republic-bank-stock-crashes-after-hours-on-heels-of-30b-deposit-deal-dividend-suspension .
Banks have borrowed $300 billion from the Fed in the past week: https://www.cnbc.com/2023/03/16/banks-take-advantage-of-fed-crisis-lending-programs-.html . Wow. Presumably the current crisis of confidence will be temporary. However, the extent of available Fed support is impressive.
Nobel-winning economist details SVB mismanagement: https://www.yahoo.com/lifestyle/nobel-winning-economist-dissects-svb-105854920.html . As we have been saying, SVB utterly failed to understand the risks of rising interest rates. However, he also points out that the Fed stress test for 2022 was based on interest rates rising from 0% to 2%. That’s clearly inadequate in retrospect. However, as we have also noted before, the Fed began raising rates a year ago. There was more than enough time for SVB to adjust the bond holdings.
WSJ: Short-term banking fixes versus long-term solutions: https://www.wsj.com/articles/banks-big-plan-might-solve-the-immediate-problem-but-not-the-bigger-ones-f348488c .
European Central Bank (ECB) raises rates by 50 basis points: https://apnews.com/article/ecb-bank-collapse-inflation-interest-rates-1b48e0456fa515c1378df197b061f572 . The ECB had communicated its intent February 11, and followed through on the 50 basis point forward guidance. As European rates are below US rates, this was needed to “catch up”. However, this also demonstrated that the Credit Suisse troubles did not make them back off. This communicates strength in the banking system. I think this locks the Fed in to a 25 basis point increase next week.
Poland to send 4 MiG-29’s to Ukraine: https://www.npr.org/2023/03/16/1163895110/poland-will-send-fighter-jets-to-ukraine-the-first-nato-country-to-do-so . Note that Slovakia is also expected to send MiG’s. As the Ukrainians already fly MiG’s, they can fly these jets immediately. WSJ: More: https://www.wsj.com/articles/poland-lays-out-plans-to-send-mig-29-fighters-to-ukraine-77fbfabb .
US releases Russian fighter jet attack on US drone: https://www.nbcnews.com/nightly-news/video/pentagon-releases-video-of-russian-fighter-jets-showdown-with-u-s-drone-165459525658 . The 43-second video supports the US description of events. WSJ: More: https://www.wsj.com/articles/midair-video-shows-russian-jet-buzz-u-s-drone-888ec31 .
WSJ: Arming Ukraine: https://www.wsj.com/articles/u-s-reaches-deep-into-its-global-ammunition-stockpiles-to-help-ukraine-8224d985 . Armored vehicles from charity: https://www.wsj.com/articles/ukraine-needs-armored-vehicles-this-ukrainian-charity-bought-dozens-ad140bb5 .
WSJ: Russian war crimes in Ukraine: https://www.wsj.com/articles/u-n-sees-wide-range-of-war-crimes-by-russian-forces-in-ukraine-a512ef0a .
FTX transferred $2.2 billion to SBF and other senior employees: https://www.benzinga.com/markets/cryptocurrency/23/03/31383258/2-2-billion-gone-ftx-founder-bankman-fried-and-colleagues-receive-massive-sum . Prior statements by the new CEO that there were essentially no financial controls appear proven by this revelation. One can expect clawback of these funds, to the extent they can be identified. More: https://www.benzinga.com/markets/cryptocurrency/23/03/31380131/ftx-founder-in-deep-legal-trouble-demands-insurers-pay-up-to-cover-fees . Umm, obviously fraud voids the coverage. Why was this suit even filed?
Virgin Orbit pauses operations: https://www.cnbc.com/2023/03/15/virgin-orbit-pauses-operations-furloughs-staff.html . We hope the result is one less billionaire vanity project. In fairness, Musk’s SpaceX currently completes regular and successful launches, although not without failures. Bezos’ Blue Horizon is apparently focused on sending rich passengers into space, something the climate absolutely does not need.
TikTok banned on US government devices: https://www.cbsnews.com/news/tiktok-banned-us-government-where-else-around-the-world/ . Wsj: More: https://www.wsj.com/articles/tiktok-ceos-message-to-washington-a-sale-wont-solve-security-concerns-94a8606 . Still more: https://www.wsj.com/articles/why-is-the-u-s-threatening-to-ban-tiktok-87cde462 . What happens if a US company provides a similar app and restricts that app to use in the US? What happens if the US videos can be seen globally? Then what happens if a French company wants to buy that US company? What if a Chinese company then wants to buy the French company? We really have not figured out how to regulate data collection by private companies. WSJ: A total US TikTok ban?: https://www.wsj.com/articles/tiktok-ramps-up-lobbying-in-washington-to-try-to-avoid-u-s-ban-8adffd4a .
WSJ: E&Y split remains hung up on partners’ bickering: https://www.wsj.com/articles/ey-breakup-plan-stalled-on-partners-split-f75f5752 . These types of deals have to be done rapidly. E&Y has screwed this up at a very basic level.
Some Fox viewers lose trust over Dominion lawsuit: https://www.rawstory.com/fox-news-losing-trust/ . This slow process will help the US government finally get rid of Orange Julius. Of course, it will take longer to fix the mess the GOP has made of the courts, particularly the Supreme Court.
Meanwhile, OJ indictments near: https://news.yahoo.com/stormy-daniels-meets-with-da-as-michael-cohen-testifies-again-in-trump-hush-money-probe-heres-everything-we-know-210415745.html . While we have known most of these details for some time, a couple of points deserve review. First, inviting a potential defendant to testify strongly indicates an indictment is likely to follow. That is especially true of OJ, as failure to indict would suggest the process was political harassment.
Secondly, while Cohen is a convicted liar ad has a grudge against OJ, this does not strike me as a significant deterrent to the jury believing him. Much of Cohen’s lying was on behalf of OJ. Also, Cohen had direct responsibility in the hush money payoff, so concrete evidence buttresses much of his testimony.
Federal prosecutors warn court of potential deluge of January 6 cases: https://www.theguardian.com/us-news/2023/mar/16/january-6-capitol-attack-deluge-charges . Let it rain! These insurrectionists must face accountability for their actions.
WSJ: Catfight over America’s 250th birthday party: https://www.wsj.com/articles/officials-planning-americas-250th-anniversary-file-lawsuit-against-colleagues-4e14bde . The party remains over 3 years away …