6 January 2021

1) With the ravages of the new coronavirus, Los Angeles County has been so overwhelmed it is running out of oxygen. Arizona now has the nation’s highest rate of coronavirus hospitalizations. In the Atlanta area, nearly every major hospital is almost full, prompting state officials to reopen a field hospital for the third time. This last week, new deaths and cases have increased by more than 20 percent, for a total of more than 355,000 fatalities and 21 million infections. But the toll on hospitals is more critical. Southern California is running low on ICU beds, ventilators and morgue space. But the greatest shortage is oxygen. The sheer number of patients has placed such a strain on oxygen systems that some hospitals are struggling to provide adequate air pressure and flow into patients’ lungs. But expanding the oxygen supply doesn’t solve the problems, because of the volume being pumped, some of the pipes start to freeze up. Also you start running out of oxygen tanks that patients need to be discharged and sent home. As cases increase ICU beds get full, ER gets backed up, ambulances have nowhere to take patients. There’s severe, chronic staffing shortages, while elective surgeries get canceled so the ability to care simply degrades.

2) It is being reported that President Trump privately admits his defeat, but he wants to continue brawling for attention, so Trump has kept up a flurry of activities to pressure other Republicans to aid his effort to block Biden’s presidency. But one factor political pundits are overlooking is the state of the economy that Biden will inherit. Many are expecting the economy to make a strong quick recovery, but with the whole western economies going into massive deep debt, the likelihood of sever economic problems, that are worst than the 2008 downturn, looms large. The chances of Bidens new administration turning things around for America are very, very slim. And when there are economic problems, the President gets blamed even if it’s not his fault, so the new President will soon be in trouble with the people turning against him. Whether by design or accident, the charges of election fraud will most likely become an ‘albatross’ tied around Biden’s neck. For while the people now want to ignored the questions of voter fraud and corruption, as public opinion diminishes, that ‘albatross’ will hang heavy pulling his presidency down.

3) Communist China continues its backslide into a repressive totalitarian regime with the arrest of dozens of Hong Kong democracy activists and opposition politicians for violating the city’s controversial national security law, in what appears to be the largest roundup yet under the China imposed legislation. The Chinese justify the law which bands subversion, terrorism, secession and collusion with foreign forces, but the law has mainly been used against non-violent political opponents and dissidents.

4) Stock market closings for – 5 JAN 21

Dow 30,391.60 up by 167.71
Nasdaq 12,818.96 up by 120.51
S&P 500 3,726.86 up by 26.21

10 Year Yield: up at 0.96%

Oil: up at $49.81

5 November 2020

1) Even with the election stagnated, waiting on the counting of votes to find the winner, the markets were already climbing despite the final results could be days away. The Dow Jones industrial average whipsawed overnight, despite the uncertainty which usually depresses the markets. Nevertheless, the Dow climbed to a peak of over 700 points, with the Standard & Poor’s 500 index and Nasdaq also surging upward. The state of the Senate is also in doubt with neither side having a solid majority, another source of uncertainty. Voter turnout is expected to be the highest in more than a century. Experts expect volatile markets for the coming days, and maybe weeks until the election results are finalized. While bonds have dropped in their yield as expected, oil continues to gain in price. Even the foreign markets are showing an upward trend.

2) China’s new therapy for Alzheimer’s begins a much-anticipated U.S. study, the latest effort in the multibillion-dollar search for an effective treatment for the incurable disease. The drug made by Shanghai Green Valley Pharmaceutical Co. plans a $600 million dollar global Phase III trial. The U.S. Food and Drug Administration gave its approval in April to study whether the drug can produce lasting cognitive improvement among patients in the mild and moderate stage of the debilitating neurodegenerative disorder. The trial will have 2,046 people across China, the U.S. and Europe, the first 600 expected to start in the next six months. The first patients will begin taking the drug in four weeks.

3) Nearly 140 million votes have been cast in the 2020 elections, the most ever in a US presidential election, exceeding 2016’s record of 137.1 million. About 100 million people have voted ahead of Election Day, or about 73.4% of the total votes cast nationwide in 2016. The increased number of early votes is a result of heightened public-health concerns of coronavirus pandemic with in-person voting on Election Day. Several states have taken measures to expand early voting and access to mail-in ballots.

4) Stock market closings for – 4 NOV 20:

Dow 27,847.66 up by 367.63
Nasdaq 11,590.78 up by 430.21
S&P 500 3,443.44 up by 74.28

10 Year Yield: down at 0.77%

Oil: up at $39.11

18 June 2019

1) Traditional retail stores, who have been suffering the ravages of e-commerce, are worried about another coming blow. The new tariffs on Chinese imports, which President Trump threatens to impost, could have a disastrous effect on retailers such as Walmart and Target. These next round of tariffs will be specific to consumer goods, which these retailers sell, and will start to force price increases and so most likely will result in decline of sales revenue.

2) While President Trump has been pressing for a cut in the interest rate, the U.S. Federal Reserve is expected to defer and leave the interest rates unchanged. However, the board may possibly lay the groundwork for a rate cut later this year. While the economic outlook has become less clear, there still isn’t sufficient indication of a slow down to warrant cutting interest rates yet.

3) The Pfizer pharmaceutical company is buying Array BioPharma for $10.6 billion dollars for a price 62% above the company’s closing price this last Friday. Pfizer will gain medical technology for new drugs to treat cancer that limit or suppress the effects of chemotherapy. The drugs target a mutation that’s found across many tumor types in those patients who carry the mutation. Two of Array BioPharma drugs have been FDA approved for use in advanced melanoma. There are other drugs which are in the development pipeline.

4) Stock market closings for- 17 JUN 19:

Dow               26,112.53    up    22.92
Nasdaq             7,845.02    up    48.37
S&P 500            2,889.67    up      2.69

10 Year Yield:    down   at    2.09%

Oil:    down   at    $51.90

CVS BUYING HEALTHCARE GIANT AETNA…

By: Economic & Finance Report

Pharmacy giant CVS is buying the third biggest healthcare company, Aetna for a reported $69 billion dollar deal, which includes cash and stock options.

This deal is coming to fruition just in time as the Senate and US House Reps each passed their version of the tax reform bill, now the two versions will go into conference with negotiators from both chambers. The end bill looks like it will be touching President Trump’s desk before Christmas, for his signature into law.

Both CVS and Aetna are power houses in their respective industries and business sectors. CVS beong one of the biggest retail and pharmaceutical chains in the US and Aetna being in the top 3, in the healthcare industry. Both companies have indicated that the merger makes sense because the consumer(s) will be the ultimate winners from the deal because they will be paying a lot less and saving alot more for medical prescription drugs in the US. -SB