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Wednesday, May 15, 2024

Credit card delinquencies surge, almost 1 in 5 users maxed out

 Credit card delinquencies are on the rise, as research from the New York Federal Reserve shows nearly a fifth of borrowers are “maxed-out.”

According the new report, issued by the bank’s Center for Microeconomic Data, household debt rose by 1.1 percent, or $184 billion, in the first quarter of the year, bringing the total to $17.69 trillion.

“In the first quarter of 2024, credit card and auto loan transition rates into serious delinquency continued to rise across all age groups,” Joelle Scally, regional economic principal within the household and public policy research division at the bank, said in a statement. 

“An increasing number of borrowers missed credit card payments, revealing worsening financial distress among some households,” Scally added.

The nationwide aggregate credit card utilization rate was found to be 23 percent in the first quarter, in line with previous quarters. But a closer look behind those figures revealed some stark differences in utilization rates.

Almost half of borrowers “used less than 20 percent of their available credit in the first quarter,” a breakdown of the report explained, compared to 18 percent of borrowers who used “at least 90 percent of their available credit.” The latter group was dubbed “maxed-out borrowers.”

Prior to the coronavirus pandemic, the report found that less than a fourth of balances associated with those borrowers had gone delinquent per year. By comparison, last year saw roughly a third of the balances go delinquent.

Younger borrowers were also found to be more likely to be maxed-out, as well as card users who resided in “low-income areas.”

The research found that aggregate delinquency rates rose during the first quarter, with 3.2 percent “of outstanding debt in some stage of delinquency at the end of March.”

“Delinquency transition rates increased for all debt types. Annualized, approximately 8.9% of credit card balances and 7.9% of auto loans transitioned into delinquency,” a release detailing the report stated. “Delinquency transition rates for mortgages increased by 0.3 percentage points yet remain low by historic standards.”

https://thehill.com/business/4665135-credit-card-delinquencies-surge/

Biden’s weakness becomes bigger and bigger worry for Dems

Democrats are growing increasingly worried that President Biden’s brutal swing-state numbers could drag down their candidates in the Senate.

Biden has been trailing former President Trump in most of the swing states likely to determine the race for the White House, several of which will be important if Democrats are to retain their Senate majority.

“Let’s cut through the BS, on the three top issues — inflation, immigration and the war in Gaza — he’s in the toilet,” one Democratic strategist said of Biden. “The polls show he’s not doing well with some of the key voting blocs: young voters, Black voters, Hispanic voters.

“So let me ask you this: Would you want to stand side by side with him?” the strategist said.

The good news for Democrats is that their candidates in Pennsylvania, Arizona and Nevada, which are all expected to host tight Senate races, are doing better than Biden.

Sen. Jacky Rosen (D-Nev.) holds a 2-point advantage over Republican Sam Brown in Nevada, while Rep. Ruben Gallego (D-Ariz.) and Sen. Bob Casey (D-Pa.) hold 4- and 5-point leads, respectively, over Republicans Kari Lake and David McCormick in their states.

The bad news is that Biden is down double digits to Trump in Arizona and Nevada, according to recently released polling by The New York Times and Siena College, which means Democrats in those states will really need to outperform the Democratic president unless things change.

Worse, Democrats also certainly need to win Senate seats in Montana and Ohio to keep their Senate majority. Those are Republican states Trump is expected to win in the fall.

“In these battleground states, the Democrats who are going to succeed are going to be ones who demonstrate a clear level of independence from the national party, and that necessarily means a certain amount of independence from the White House,” said John LaBombard, a Democratic strategist who served as a top aide to Sen. Kyrsten Sinema (I-Ariz.) and former Sen. Claire McCaskill (D-Mo.). “That said, certainly, these numbers are nerve-wracking for those of us who think it’s critically important to keep [former President Trump] out of the White House.”

Sen. Jon Tester (D-Mont.) has become increasingly vocal on immigration and border issues in recent months, including last week when he laid into Defense Secretary Lloyd Austin over the situation there during a hearing. 

Tester also announced his support for the Laken Riley Act, a bill requiring undocumented immigrants to be apprehended and held by federal officials if they are arrested for crimes such as burglary or larceny until they are deported from the U.S. Riley, a 22-year-old nursing student in Georgia, was killed by an undocumented immigrant who had been arrested and released by the New York Police Department after committing a similar crime. 

Tester’s efforts highlight the need for Democrats to tout their own brands at a time when Biden could be a detriment to them, and some in the party say it’s no different than what some Republicans will need to do.

“There’s nothing new about down-ballot candidates of either party trying to create their own brand in their districts,” said former Rep. Steve Israel (D-N.Y.), who served as the chair of the Democratic Congressional Campaign Committee. “In fact, this year, Republicans in Biden’s districts are trying to create major distance between themselves and Donald Trump.”

The Biden campaign said it is confident Biden’s record ultimately will help the party’s candidates.

“From lowering drug prices to defending our reproductive rights, President Biden’s record won at the ballot box in 2022 and it will win again in 2024,” said Lauren Hitt, a campaign spokesperson. She argued that Republicans will be dragged down by Trump’s controversies.

Democrats are hoping Biden could benefit from “reverse coattails” in some states.

In 2020, Biden’s win in Georgia was helped by get-out-the-vote efforts for two Democratic Senate candidates, now-Sens. Raphael Warnock and Jon Ossoff. Sen. Mark Kelly’s (D-Ariz.) victory that year may also have served Biden.

Some Democrats, however, argue that the situation for Biden and Senate candidates in 2024 is a world away from 2020.

“The concern is not dragging anybody down. The theory of the case was that these candidates could bring Biden along, and it’s just that we’re in two different worlds right now,” said one Democratic operative with experience in Senate races.

This Democrat argued that many of the party’s Senate candidates are relatively popular in their home states. Biden, however, is not, and his brand and negatives are specific to him.

“People have a really strong thought on what they blame Biden for and what they expect from their senators or members of Congress, and it seems he’s getting a unique brunt of the negativity from the electorate, while other candidates are not,” the Democrat said. “The Democratic coalition is strong, but the Biden coalition seems to be different and weaker.”

https://thehill.com/homenews/campaign/4663636-bidens-weakness-becomes-bigger-and-bigger-worry-for-democrats/

Long Beach, Cal. declares public health emergency after TB sickens 14

 The City Council of Long Beach, California has authorized a public health emergency in response to a local outbreak of tuberculosis.

The city's health officer, Dr. Anissa Davis, declared the emergency last week, after its health department detected 14 tuberculosis cases at a single-room occupancy hotel. The City Council vote on Tuesday night served as the final approval for the declaration.

Nine tuberculosis patients have been hospitalized and one has died, according to the health department. As of Monday, about 175 people had been exposed to tuberculosis as a result of the outbreak.

In a news release last week, the department said that “the population at risk in this outbreak has significant barriers to care including homelessness and housing insecurity, mental illness, substance use and serious medical comorbidities.”

The department added that it is testing people who were exposed. No new cases have been reported since last week.

The outbreak was reported amid a national rise in tuberculosis cases, which have increased since 2020 after 27 years of decline. The U.S. recorded 9,615 active infections last year — a 16% increase over the previous year.

The emergency declaration should free up resources for tuberculosis screening and treatment, according to the Long Beach health department.

“The health department is mostly grant funded, so we need to have the structure in place so that we can get our internal resources where they’re needed most right now,” said Jennifer Rice Epstein, the health department’s public affairs officer.

The Long Beach health department said it is isolating patients who are infectious, treating them and providing them with temporary housing, food and transportation as needed.

People experiencing homelessness have a higher risk of tuberculosis for several reasons, including substance use — which can weaken the immune system — and living in crowded conditions where it is more likely to spread. Underlying health problems, such as diabetes, cancer and HIV, also make it harder to fight off tuberculosis infections.

“Living in poverty, not having good access to nutrition, not having access to sunlight and fresh air — all these are things that are going to make it much easier for TB to spread and take advantage of vulnerable people," said Dr. Luke Davis, an associate professor of epidemiology and medicine at the Yale School of Public Health.

Davis said he's not sure whether tuberculosis is actually becoming more common or whether it's a matter of increased diagnoses.

“Are we diagnosing more people? Yes, we are. Does that also mean there’s more TB out there? That is a little bit more difficult to answer,” he said.

But other doctors who treat tuberculosis patients said case numbers are indeed rising, most likely because reduced access to medical care delayed diagnoses or allowed some infections to go undetected.

“We did millions and millions of tests for Covid and fewer tests for TB," said Richard Chaisson, director of the Johns Hopkins University Center for Tuberculosis Research. "What that means is that people had tuberculosis, it wasn’t diagnosed, and they continued to transmit it to other people.”

Tuberculosis symptoms usually manifest up to two years after someone is infected, so people who are diagnosed now could theoretically have been exposed during the pandemic, he said.

What’s more, Chaisson added, many public health departments are stretched for funding and staffing.

“Without increased public health interventions, we’re on the wrong course,” he said.

The U.S. Preventive Services Task Force recommends that primary care doctors screen people at increased risk of tuberculosis, such as those in homeless shelters or correctional facilities and people who previously lived in countries with high prevalences of the disease.

But that doesn't always happen, said Dr. Priya Shete, an associate professor of medicine and epidemiology at the University of California, San Francisco.

"Increasing cases over time — this year, last year and the next few years — probably shouldn't be unexpected," Shete said, adding that "it’s going to go on like this unless we do something drastic to turn the tide."

The bacterium that causes tuberculosis can spread through the air when someone with an active case coughs, sneezes or speaks. It often targets the lungs, so many people develop a bad cough that lasts three weeks or longer, experience chest pain or cough up blood or phlegm.

Most active cases aren’t linked to an outbreak — rather, they develop from a latent infection that was never screened, diagnosed or treated. Up to 13 million people in the U.S. have latent tuberculosis, meaning the bacteria live in the body without making them sick. Around 5% to 10% of those latent cases develop into active disease if they are left untreated.

Treatment for active tuberculosis usually involves taking antibiotics for at least six months, though some courses can take a year or longer.

https://www.nbcnews.com/health/health-news/tuberculosis-outbreak-california-city-health-emergency-rcna150881

CPI Does Not Signal Re-Emergence Of Disinflationary Trend

 by Simon White, Bloomberg macro strategist,

Today’s CPI data shows the gap between CPI and PPI continues to rise, a proxy for profit margins.

After a rise and fall through the pandemic, they are persistently rising again. 

Profits are positioned to be one of the main vectors of persistent consumer inflation in this cycle.

Yields are in an interim trend lower as recessionary risks resurface, but the primary uptrend is intact.

There will be another bond selling opportunity later in the summer.

This rise in the profit-margin proxy matches the message from the primary services component of the PPI data...

Nothing moves in a straight line, and it is far too early to declare that the disinflationary trend has resumed.

https://www.zerohedge.com/markets/cpi-does-not-signal-re-emergence-disinflationary-trend

Child care costs more than mortgage payment or rent almost everywhere in U.S.

 "We were spending easily 55% of our pretax household income on our mortgage and child care"

Housing costs may have gotten out of control, but there's another expense that now poses an even greater burden to many American families: child care.

Jessica Norwood, a working mother of two in North Carolina and host of the financial-literacy show "The Sugar Daddy Podcast," said daycare costs when her two children were ages 3 and 4 added up to nearly $3,000 per month - almost twice her monthly mortgage payment of $1,580.

"We were spending easily 55% of our pretax household income on our mortgage and child care," said Norwood, who grew up in Germany. Her family looked into getting a nanny or an au pair, but found disadvantages to both.

"It's no wonder so many people (i.e. women) leave work to stay home with their children," Norwood told MarketWatch in an email. "It's all excruciatingly expensive."

Norwood said her friends who work outside of the home and have young children all face this dilemma. "It's a frequent topic of conversation in our group because there is no escaping it and, in most cases, there are no other viable options."

The average cost of child care for two children is now greater than the average rent in all 50 states, and greater than the average mortgage payment in 45 states, according to a new report by the nonprofit Child Care Aware of America.

Child care is considered affordable if it costs no more than 7% of a household's income, according to the Department of Health and Human Services. Yet the typical cost of care for one child, which was $11,582 on average in 2023, is 10% of income in married households and 32% of income for single parents, according to CCAoA. The actual expenditure is often higher, as the average American family has two children and most single-parent households also have more than one child, Census Bureau data show.

The financial challenges facing families have impacted some people's decision to have children. In a 2021 Pew survey, finances were the third-most common reason people said they didn't plan to have children, after not wanting children and medical reasons.

"The reality is that for most families, everywhere, child care is very expensive, and it is a very large part of families' monthly and yearly budgets. That is true in every region," said Anne Hedgepeth, chief of policy and practice at CCAoA. "There may be different extremes, but child-care prices outpace almost everything else."

In the largest metro area, New York, the typical monthly cost of child care for two children is $2,634 while the typical monthly housing cost is $2,451, according to the Economic Policy Institute's Family Budget Calculator, which estimates the typical costs for a modest standard of living around the country.

But the problem is not unique to large, pricey coastal cities. In a smaller metropolitan area like Scranton, Pa., child care for two typically costs $1,541 per month while housing costs $1,008 monthly, according to the EPI's calculator.

Even in Danville, Ill. - one of the lowest-cost housing markets in the country, according to Realtor.com - the typical monthly cost of child care is $999, outstripping the monthly housing cost of $878, per the calculator. (Realtor.com is operated by News Corp subsidiary Move Inc.; MarketWatch publisher Dow Jones is also a subsidiary of News Corp.)

The American child-care system today is not only unaffordable for many families who need care, it also does not provide livable wages for many of those who work in the field. Workers in child-care centers earn an average of $30,360 per year, according to the Bureau of Labor Statistics.

"If parents can't contribute more, and educators are making so little in the child-care and early-learning system, I think that really tells us that our investments are going to need to come from elsewhere, from places like our federal government," Hedgepeth said.

A Biden administration rule announced earlier this year reduced costs for families that receive child-care subsidies, limiting the amount they pay to 7% of their household income. It is estimated to impact 100,000 children.

"President Biden and I believe that every family in our nation should be able to access affordable child care," Vice President Kamala Harris said in a statement.

CCAoA's policy recommendation is for lawmakers in Congress and in state governments to expand funding for the system, so that states can "provide more families with subsidies, lower the price of child care, support and retain the child-care workforce, and increase access and supply."

https://www.morningstar.com/news/marketwatch/20240515272/child-care-costs-more-than-a-mortgage-payment-or-rent-almost-everywhere-in-the-us-there-is-no-escaping-it

Women in U.S. Can Now Collect Their Own Sample for Cervical Cancer Screening

 BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today announced U.S. Food and Drug Administration (FDA) approval for the use of self-collected vaginal specimens for human papillomavirus (HPV) testing when cervical specimens cannot otherwise be obtained. The approval allows women to self-collect vaginal specimens for HPV testing in a health care setting, which could include non-traditional locations such as a retail pharmacy or mobile clinic.

HPV is the cause of virtually all cervical cancer, and HPV testing is the preferred screening method by the American Cancer Society in the United States. The BD Onclarity™ HPV Assay is FDA-approved for HPV primary testing without the need for a traditional Pap smear performed with a speculum. This new approval of self-collected samples opens the door to a less invasive testing option, and it improves access to testing for individuals who face barriers to cervical cancer screening.

"Many patients are uncomfortable with the intimate nature of a pelvic exam," said Dr. Jeff Andrews, board-certified gynecologist and vice president of Global Medical Affairs for Diagnostic Solutions at BD. "Also, many people live in areas without a local doctor or clinician trained to obtain a sample with a speculum. The option to self-collect in a clinical setting can help women overcome some of these barriers."

Cervical Cancer is Preventable
Cervical cancer is preventable, and screening plays a crucial role in early detection and prevention. According to the American Cancer Society, approximately 50% of cervical cancer diagnoses are in never-screened people, and 10% of diagnoses occurs in under-screened individuals. In addition, 25% of women in the U.S. do not receive regular cervical cancer screening, according to the National Cancer Institute.

Various factors contribute to inadequate screening, including physical and geographic inaccessibility, financial insecurity (including lack of health insurance coverage), lack of awareness about the importance of screening, social or religious preferences, physical disability, medical conditions, or history of sexual, physical or psychological abuse that may make a pelvic examination for sample collection by a clinician traumatizing.

Self-Collection Improves Access
Self-collection can improve cervical cancer screening access, especially in underserved populations. In the U.S., Black, Hispanic and American Indian women have higher rates of cervical cancer than women of other racial groups, with Black women having the highest rate of death. With vaginal self-collection as an option for cervical cancer screening, women are more inclined to participate in such care — with never-screened women demonstrating a more than two-fold increase in acceptance and participation — allowing health care providers an alternative option to identify a high-risk HPV infection in more convenient care settings.1 2

The National Cancer Institute (NCI), part of the National Institutes of Health (NIH), has been working with BD in a public-private partnership called the Cervical Cancer "Last Mile" Initiative to address disparities in cervical cancer screening. As part of this initiative, BD will be a participant in the Self-collection of HPV testing to Improve Cervical Cancer Prevention (SHIP) trial, which will begin enrolling this summer, to evaluate accuracy of self-collection for HPV testing both in health care and other settings, including at home.

Some HPV Strains Carry a Higher Risk than Others
There are many strains (genotypes) of HPV viruses, with some strains posing a much higher risk for causing precancer and cancer than others. BD Onclarity™ is the first FDA-approved assay that reports six HPV strains individually, providing a more precise, accurate way to measure a women's risk for developing cervical precancer by showing results for an extended set of individual HPV strains and enabling those strains to be tracked over time. Most clinically validated tests report multiple strains in a single pooled result that prohibits monitoring of specific strains over time, which is an important determinant of cervical cancer risk in women who test positive for HPV.

"The integration of self-collection with testing for individualized strains of HPV represents a significant advancement in cervical cancer screening," said Dr. Shieva Ghofrany, a practicing OB-GYN and Fellow of the American Congress of Obstetricians and Gynecologists. "Self-collection provides greater access to testing and BD Onclarity™ allows health care providers to determine the specific HPV strains present in the samples and more precisely identify and treat individuals at high-risk and avoid unnecessary treatments for women at low risk."

https://www.biospace.com/article/releases/women-in-u-s-can-now-collect-their-own-sample-for-cervical-cancer-screening/

Abeona Q1 and Progress Report

 BLA resubmission anticipated in second half of 2024

Closed $75 million underwritten offering in May, extending expected cash runway into 2026

Pz-cel for RDEB

  • In April 2024, Abeona received a Complete Response Letter (CRL) from the U.S. Food and Drug Administration (FDA) regarding the Company's Biologics License Application (BLA) for prademagene zamikeracel (pz-cel) for recessive dystrophic epidermolysis bullosa (RDEB), based on the need for additional Chemistry Manufacturing and Controls (CMC) information. In the CRL, the FDA noted that certain additional information needed to satisfy CMC requirements must be resolved before the application can be approved. The information needed to satisfy the CMC requests in the CRL pertains to validation requirements for certain manufacturing and release testing methods. The CRL did not identify any deficiencies related to the clinical efficacy or clinical safety data in the BLA, and the FDA did not request any new clinical trials or clinical data to support the approval of pz-cel. The Company anticipates completing the BLA resubmission in the second half of 2024.
  • New pz-cel long-term safety data with up to 11 years of follow-up has been accepted as a late-breaking presentation at the Society for Investigative Dermatology (SID) Annual Meeting, being held on May 15-18, 2024.

U.S. commercial launch preparations for pz-cel

  • Abeona continues to advance key commercial activities in preparation for a potential U.S. launch for pz-cel, including onboarding discussions with epidermolysis bullosa treatment sites, conducting medical and payer engagement, as well as building supply chain and enterprise capabilities to support the Company’s transition to a commercial stage company.

Conference Call Details

The Company will host a conference call and webcast on Wednesday, May 15, 2024, at 8:30 a.m. ET, to discuss the first quarter results. To access the call, dial 888-506-0062 (U.S. toll-free) or 973-528-0011 (international) and Entry Code: 496484 five minutes prior to the start of the call. A live, listen-only webcast and archived replay of the call can be accessed on the Investors & Media section of Abeona’s website at https://investors.abeonatherapeutics.com/events. The archived webcast replay will be available for 30 days following the call.

https://www.biospace.com/article/releases/abeona-therapeutics-reports-first-quarter-2024-financial-results-and-recent-corporate-progress/