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Tuesday, March 3, 2020

FDA OK’s emergency use of respirator face masks for COVID-19

The FDA has granted a request from the Centers of Disease Control and Prevention (CDC) for an emergency use authorization to allow healthcare personnel to use certain industrial respirator face masks, including N95s, as an extra preventative measure against COVID-19.
The industrial face masks achieve a closer facial fit than surgical masks and are more efficient filterers of airborne particles. Since they are used in construction and other industrial environments, they are not required to meet FDA standards for testing.
ETFs: THW, BME, GRX, IXJ, GDNA, KMED, XLV
https://seekingalpha.com/news/3547927-fda-oks-emergency-use-of-respirator-face-masks-for-covidminus-19

TG Therapeutics net loss improves in Q4

TG Therapeutics (TGTX) Q4 results:
Revenues: $0.04M (unch).
Net loss: ($39.6M) (+26.5%); loss/share: ($0.44) (+35.3%); Quick Assets: $140.4M (+103.8%).
Key Objectives for 2020: Report topline PFS results from the Phase 3 UNITY-CLL trial, and if successful, target a potential NDA/BLA submission by year-end.
Complete rolling NDA submission for umbralisib in patients with previously treated MZL and FL, in H1.
Report topline results from the Phase 3 ULTIMATE I & II trials in RMS, in H2.
https://seekingalpha.com/news/3547937-tg-therapeutics-net-loss-improves-in-q4

Thermo Fisher to buy Qiagen for €10.4B

While talks broke off late last year, Thermo Fisher Scientific (NYSE:TMO) is acquiring Dutch molecular-testing firm Qiagen (NYSE:QGEN) for €10.4B, including assumed debt.
Investors would get €39 for every Qiagen share, 23% higher than Monday’s closing price.
It’s the second major transaction in the healthcare sector this week after Gilead Sciences agreed to buy Forty Seven for about $4.9B to advance into cancer treatments.
https://seekingalpha.com/news/3547860-thermo-fisher-to-buy-qiagen-for-10_4b

Trump attacks Fed, doubles down on call for ‘big rate cut’

President Trump attacked the Fed in an overnight tweet, and called again for a large cut in interest rates, writing: “Australia’s Central Bank cut interest rates and stated it will most likely further ease in order to make up for China’s Coronavirus situation and slowdown. They reduced to 0.5%, a record low. Other countries are doing the same thing, if not more so.” “Our Federal Reserve has us paying higher rates than many others, when we should be paying less. Tough on our exporters and puts the USA at a competitive disadvantage. Must be the other way around. Should ease and cut rate big. Jerome Powell led Federal Reserve has called it wrong from day one. Sad!”
Australia cut rates yesterday, and the European Central Bank and Bank of Japan have also signaled rate cuts.
Federal Reserve Chairman Jerome Powell issued a brief statement last Friday in which he said that the fundamentals of the U.S. economy remain strong, but the Fed is monitoring the economic effects of the coronavirus outbreak. “We will use our tools and act as appropriate to support the economy.” See the full statement. However, earlier that day, St. Louis Fed President James Bullard said in a speech that for the time being, monetary policy was fine due to previous rate cuts.
Meanwhile, the OECD has reduced its estimate of global growth, and Goldman Sachs believes there will be zero corporate earnings growth in 2020, in contrast to the consensus.
Most expect the Fed to ease policy in March, anticipating a 25 basis point cut, with some, such as Bank of America, predicting a 50 basis point cut.
This is not the first time President Trump has attacked the Fed Chairman or called for rate cuts. Yesterday, President Trump said the Fed has been slow to act. The day before, he called for the Fed to cut rates, and on Friday he said he hopes the Fed will ‘get involved soon’ over markets.
https://seekingalpha.com/news/3547867-trump-attacks-fed-doubles-down-on-call-for-big-rate-cut

Monday, March 2, 2020

Global shares extend rebound on hopes of G7 support

Global shares and oil prices extended their rebound on Tuesday on mounting speculation policymakers around the world would move to ease the economic fallout from the spreading coronavirus, ahead of a conference call by Group of Seven heads.
Finance ministers from the group are expected to hold a conference call on Tuesday (1200 GMT), sources said, to discuss measures to deal with the economic impact of the coronavirus outbreak.
“There are hopes that G7 countries will take some sort of coordinated actions to fight the virus, possibly including fiscal spending,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.
The European Central Bank on Monday joined the chorus of central banks signalling a readiness to deal with the growing threats from the outbreak.
Earlier messages from the U.S. Federal Reserve that it was prepared to act weighed on the greenback against many other major currencies.
The improved mood supported U.S. S&P 500 futures, which rose 0.3% in early Asian trade on Tuesday, a day after the S&P 500 gained 4.60%, the biggest gain since December 2018.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.0%.
South Korea’s Kospi added 1.3% and Australian shares advanced 1.6% ahead of an expected rate cut by the Reserve Bank of Australia.
Japan’s Nikkei lost steam after short-covering ran its course, trading almost flat having given up earlier gains of 1.8%.
The rout in global stocks last week had already prompted Fed Chair Jerome Powell and Bank of Japan Governor Haruhiko Kuroda to flag a readiness to move.
Money markets are fully pricing in an cut of at least 0.25 percentage point to the current 1.50%-1.75% target rate at the Fed’s March 17-18 meeting as well as a 0.10 percentage point cut to the ECB’s key rate at March 12 meeting.
The frantic moves by policymakers reflected growing fears that the disruption to supply chains, factory output and global travel caused by the new epidemic could deal a serious blow to a world economy trying to recover from the U.S.-China trade war.
The Organisation for Economic Cooperation and Development on Monday cut its forecast of global economic growth this year to 2.4%, the lowest since 2009 and down from a forecast of 2.9% in November.
Coronavirus is now spreading much more rapidly outside China than within the country, leading the world into uncharted territory, although the World Health Organization (WHO) has so far stopped short of calling it a pandemic.
In the United States, six people in the Seattle area have died of the illness caused by the new coronavirus, as authorities across the country scrambled to prepare for more infections.
“It would be myopic to think that (economic) policy actions alone will bring back calmness to markets. The reality is, the coronavirus is still spreading,” said Takehiko Masuzawa, head of sales trading for Japanese clients at Macquarie in Tokyo.

FED RATE CUTS

The rebound in global stock prices saw U.S. bond yields roll back some of their sharp falls.

The 10-year U.S. Treasuries yield retreated to 1.135% from a record low of 1.030% marked on Monday. The rate-sensitive two-year notes yield jumped back to 0.859% from Monday’s 3 1/2-year low of 0.710%.
Still, the 10-year and two-year yields are down more than 40 and 50 basis points, respectively, from about two weeks ago.
April Fed funds rate futures still price in about 80% chance of a 0.50 percentage point cut this month and a total of almost 1 percentage point cuts by the end of year.
Expectations of Fed rate cuts prompted investors to cut their exposure to the dollar.
Against the yen, the dollar lost 0.3% to 107.97 yen, slipping towards a five-month low of 107 set on Monday.
The euro stood at $1.1139, having hit an eight-week peak of $1.1185.
The Australian dollar dropped 0.3% to $0.6517, less than a cent above an 11-year low of $0.64345 set on Friday.
Australia’s central bank is widely expected to cut the policy interest rate to 0.5% from 0.75%, already at a record low.
Oil prices bounced back further after a jump of more than 4% on Monday, reversing an early decline to multi-year lows.
Hopes of a deeper output cut by the Organization of the Petroleum Exporting Countries and central banks’ policy measures countered fears of slower growth.
U.S. West Texas Intermediate (WTI) crude futures rose 2.6% to $47.96 a barrel, up sharply from Monday’s low of $43.32 a barrel, which was the lowest since December 2018.
While the coronavirus continues to dominate investor attention, focus has also swung to Super Tuesday in the United States, the biggest day in the Democratic primary elections to choose a challenger to President Donald Trump.
https://www.reuters.com/article/us-global-markets/global-shares-extend-rebound-on-hopes-of-g7-support-idUSKBN20Q02V

More testing sheds light on how virus is spreading in US

An increase in testing for the coronavirus began shedding light Monday on how the illness has spread in the United States, including among nursing home residents in one Washington state facility.
U.S. health officials updated the number of COVID-19 cases to 91 in 10 states after Oregon and Illinois announced new diagnoses. Seattle officials announced four more deaths, bringing the total in the U.S. to six.
King County Executive Dow Constantine declared an emergency and said the county was buying a hotel to be used as a hospital for patients who need to be isolated. He said the facility should be available by the end of the week.
“We have moved to a new stage in the fight,” he said.
Vice President Mike Pence met with the nation’s governors and pledged to continue updating them by teleconference on a weekly basis.
The nursing home cases especially troubled health care experts because of the vulnerability of sick and to the illness and existing problems in nursing facilities.
“It’s going to be a disaster,” said Charlene Harrington, who studies nursing homes at the University of California at San Francisco. Infection is already a huge problem in U.S. nursing homes because of a lack of nurses and training.
The Centers for Disease Control and Prevention said the case count includes 45 infections among people who were on the Diamond Princess cruise ship, which is one more than previously reported. It also includes people who tested positive after returning from travel to outbreak areas in other parts of the world, their close contacts, and what appear to be infections from community spread—people who did not travel and did not have known contact with other infected people.
The CDC recently broadened its guidelines for who should be tested for the to include people with symptoms but without a travel history to virus hot zones.
More testing will bring more confirmed cases, experts said, but they cautioned that does not mean the virus is gaining speed. Instead, the testing is likely to reveal a picture of the virus’ spread that was previously invisible.
In Seattle, schools and one skyscraper closed, but health experts cautioned that closures can have downsides.
On Monday, the F5 technology company said it was closing its 44-story tower in downtown Seattle after learning an employee had been in contact with someone who tested positive for coronavirus. The employee tested negative, but company spokesman Rob Gruening said the tower was closed as a precaution.
More than 10 schools in the Seattle area were closed for deep cleaning over virus concerns, although the city-county public health department said it was not yet recommending school closures or cancellation of activities.
Closing schools or large gatherings are what’s called social distancing, the idea that distancing people will reduce spread.
“The evidence for these measures are not as strong as we would like it to be,” Jennifer Nuzzo of the Johns Hopkins Center for Health Security cautioned Monday during a webinar.
Measures such as school closures have been used during flu outbreaks, and the new coronavirus isn’t acting exactly like flu. Moreover, they have downsides.
“Maybe it makes people more likely to stay at home. Maybe it doesn’t if people re-congregate elsewhere,” Nuzzo said.
Closing schools also leaves , first responders and others without child care, making it difficult for them to come to work.
On Capitol Hill, negotiations on a bipartisan, emergency $7 billion to $8 billion measure to battle the virus are almost complete, according to both Democratic and GOP aides. The measure appears on track to be unveiled as early as Tuesday, and the hope is to speed it quickly through both House and Senate by the end of the week.
The measure would finance both federal and state response efforts, fund the ‘s drive to develop and produce a vaccine, and offer Small Business Administration disaster loans to help businesses directly affected by the virus crisis.
At the Pentagon, the chairman of the Joint Chiefs of Staff, Gen. Mark Milley, told reporters that the COVID-19 outbreak has had little impact on the U.S. military. “Right now the overall broad impact to the U.S. uniformed military is very, very minimal. That’s not to say it’s zero,” he said.
U.S. Surgeon General Jerome Adams discussed the virus Monday during a stop in Connecticut, where he was touring the state public health laboratory.
“Caution, preparedness, but not panic,” Adams said. “That’s how we’re going to successfully navigate this coronavirus situation.”
Adams and state Public Health Commissioner Renee Coleman-Mitchell urged the public to take precautions such as washing hands, elbow “bumping” instead of hand shaking and getting flu shots. They said flu shots would decrease the number of people hospitalized because of flu and free up space, if needed, to treat patients sickened by the .
https://medicalxpress.com/news/2020-03-virus.html

Pfizer IDs some antiviral compounds with potential as coronavirus treatment

Drugmaker Pfizer Inc said on Monday that it identified certain antiviral compounds it had in development that have the potential to inhibit coronaviruses and is engaging with a third party to screen the compounds.

The company said it hopes to have the results from that screening by the end of March and if any of the compounds are successful, it would hope start testing them by the end of the year.
Pfizer Chief Scientific Officer Mikael Dolsten was one of a number of pharmaceutical executives who met with U.S. President Trump at the White House on Monday.

https://www.marketscreener.com/PFIZER-INC-23365019/news/Pfizer-identified-some-antiviral-compounds-with-potential-as-coronavirus-treatments-30096488/