Yazar: Geoffrey Smith
Investing.com – The EU says it wants to talk about exemption from intellectual property protection to step up the global immunization campaign, and vaccine manufacturers are again under pressure. SEC chairman Gary Gensler is going to screw Robinhood. Unemployment applications and Challenger Layoffs survey will be shared. There are also a series of earnings reports led by Moderna. Central banks from the UK to Turkey will meet, and China’s relations with the West are getting worse.
What you need to know in financial markets on Thursday, May 6:
1. Moderna and BioNTech under pressure after EU says it is open to vaccine intellectual property exemption
BioNTech shares fell 19% in Germany after the European Commission said it was willing to discuss an intellectual property waiver plan to treat Covid-19 amid the pandemic.
The idea discussed Wednesday by US presidential trade adviser Katharine Tai is who will lose the most financially from such a move. Pfizer (NYSE:), BioNTech and Moderna stocks have already caused sharp declines.
Moderna will share its first quarter earnings report. Three days ago, Pfizer revised its annual revenue forecasts upwards, largely driven by the success of its mRNA-based vaccine. So far, mRNA drugs have averted the fears faced by health-care Johnson & Johnson (NYSE:) and AstraZeneca (NASDAQ:).
The Biden administration’s move marks an attempt to win the hearts of countries outside the United States that could gain significant political capital to get vaccines distributed faster in poorer countries such as India and Brazil. However, it faces significant legal challenges from the pharmaceutical industry.
2. SEC chairman Gensler focuses on commercial applications
The SEC chief gave the most concrete clue that he is planning a new regulation to squeeze in the wild trade, for example the surge in GameStop (NYSE:) and other ‘headline stocks’.
In statements prepared before appearing before the House Financial Services Committee, Gary Gensler criticized Robinhood and other brokers for incorporating game-like features into their apps to increase their trading volumes.
“Most of our edits were written largely before these cutting-edge technologies and communication practices became mainstream,” Gensler will say. “I think we need to evaluate our rules so we can see that we need to renew our rules.”
3. Stock markets calm before unemployment claims and Challenger survey; earnings season continues
US stocks will open largely unchanged on a backdrop where the Biden administration is leaning in a direction that will cut corporate profits.
In addition to the idea of exemption from the vaccine, the administration on Wednesday repealed a Trump-era rule that made it easier for companies not to classify flexible workers as employees. Concerns over cost pressures led to a 3.5% drop in Uber shares.
and decreased by less than 0.1%, but increased by similar amounts.
With weekly jobless claims, the Challenger Layoffs survey tops the poor data calendar. On the earnings front, Fiverr, Regeneron, Norwegian Cruise Lines, Wayfair (NYSE:), Kellogg (NYSE:), Blue Apron, Penn National Gaming (NASDAQ:), and Magna are among the reporters. Last night Anheuser-Busch InBev said CEO Carlos Brito is leaving.
4. Central banks move at different speeds towards tightening
Even if you don’t know it yet, today is the big day for sterling. The Bank of England (BoE) is expected to increase its annual economic forecasts.
Among advanced economies, Canada is the only central bank to have stepped out of monetary stimulus gas so far this year. The UK economy expanded at its fastest pace since 2013, with huge increases in input prices in both the manufacturing and services sectors, according to IHS Markit’s final composite purchasing managers index.
On the other hand, Norway reiterated that it wants to increase interest rates at the end of this year, while Turkey and Czechia have monetary policy meetings. On Wednesday, Brazil increased its main interest rate by 75 bp, revealing the magic gap between the monetary policies of emerging and advanced economies.
5. G7 unites against China over disappointment with Australia
One of the world’s most important trade relations is getting worse and worse. The last step in economic marginalization against China came from the West.
China has said it will suspend strategic economic dialogue with Australia as Australia cancels a number of Chinese investments under its ‘Belt and Road’ initiative. China has drastically reduced Australia’s barley and coal purchases, but it hasn’t touched iron ore, which is still important to fuel the infrastructure boom.
These movements of China, European countries and Japan, and the absence of Australia, after the G7 issued a statement denouncing China for its human rights violations against the Muslim minority in Xinjiang, and Taiwan’s persistence in preventing its participation in the World Health Organization forums. took place. This statement, at least, paves the way for more concrete actions to be discussed at the G7 summit in July.