(Bloomberg) -- U.S. stocks are unlikely to make fresh lows thanks to the “do whatever it takes” approach of policy makers, according to Goldman Sachs Group Inc.A combination of unprecedented policy support and a flattening viral curve has “dramatically” cut risks to both markets and the American economy, strategists including David Kostin wrote in a note Monday. If the U.S. doesn’t have a second surge in infections after the economy reopens, equity markets are unlikely to make new lows, they said.“The Fed and Congress have precluded the prospect of a complete economic collapse,” the strategists wrote. “These policy actions mean our previous near-term downside of 2,000 is no longer likely” for the S&P 500 Index.The U.S. benchmark closed Thursday around the 2,790 level, having hit a three-year low of 2,237 on March 23.Goldman cited policy measures including rate cuts, the Federal Reserve’s Commercial Paper Funding Facility and fiscal stimulus such as...
U.S. drugmaker Pfizer Inc. (PFE) finalized a plan to develop a coronavirus vaccine in partnership with German drugmaker BioNTech SE (BNTX) with the target of jointly producing millions of vaccines by the end of 2020.Under the terms of the partnership, Pfizer will pay BioNTech $185 million upfront to develop the vaccine including an equity investment of about $113 million, with additional payments if certain milestones are achieved that could take its total investment to nearly $750 million, the two companies said in a joint statement.They plan to start clinical trials of the vaccine as early as the end of this month, subject to regulatory clearance. Development of the potential drug will commence in the U.S. and Europe and then across multiple sites, they said. Pfizer will help manufacture any potential drug product and said it aims to produce hundreds of millions of vaccines next year.Moreover, Pfizer and BioNTech will share development...
(Bloomberg) -- Seventy coronavirus vaccines are in development globally, with three already being tested in human trials, the World Health Organization said.The number of people infected worldwide reached 1.85 million, while death toll topped the 114,000-mark.The northeastern Chinese city of Harbin tightened rules to curb the spread of coronavirus by extending quarantine periods for certain visitors to 28 days. China reported 108 more cases April 12, mostly imported.Parts of the U.S. may be ready in May to ease emergency measures. U.K. Prime Minister Boris Johnson praised doctors for saving his life.Key Developments70 coronavirus vaccines in development globallyCoronavirus Tracker: Global cases reach 1.85 million; deaths top 114,000China’s Harbin tightens measuresPork producer warns of meat shortagesCruise passengers spend Easter on “ghost ship”Volatile data complicates ending Europe lockdownVaccines in Development (2:01 p.m. HK)WHO says 70 vaccines are in development. The furthest along in the clinical process is an experimental vaccine developed by Hong Kong-listed...
(Bloomberg) -- India’s most ambitious attempt to influence how foreigners trade its currency slipped through with little fanfare two weeks ago.On a day when the Reserve Bank of India executed an emergency rate cut and pledged $50 billion of liquidity, it also opened the way for local banks to trade non-deliverable forwards, a currency derivative often blamed as a tool for speculators.The policy shift opens a new front for the RBI to manage volatility in the rupee, which plumbed to a record low during the coronavirus outbreak. The central bank, with foreign reserves worth about $475 billion, is taking a markedly different approach to peers like Malaysia and Indonesia, which have sought to lure offshore trading and hedging activities back within their borders.This will help the RBI take “necessary action in managing volatility in both onshore and offshore markets through appropriate steps, including intervention through Indian banks,” said B. Prasanna, group...
Oil prices posted gains early Monday after the Organization of the Petroleum Exporting Countries and allies agreed to long-awaited production cuts in a Sunday meeting.What Happened The United States futures options dipped as the 9.7 million barrels per day cut (mb/d), the OPEC+ countries agreed to, fell below the market expectations.Oil, too, initially dropped following the agreement, before rising late Sunday.The meeting effectively ended a price war between oil powerhouses Saudi Arabia and Russia started in March.The novel coronavirus (COVID-19) pandemic has significantly reduced the demand for oil, and OPEC led by Saudi Arabia proposed production cuts last month but faced disagreement from Russia.In the aftermath, oil saw the worst single-day drop since the gulf war in 1991.OPEC+ proposed a 10 mb/d in its last meeting on Thursday, but Mexico disagreed with the 400,000 mb/d it was asked to cut. Under the latest deal, the country is only required to cut...
Amazon said it would have to relegate all new online grocery customers to a wait list starting Monday while working on adding capacity each week. In recent weeks, it increased the number of Whole Foods stores offering grocery pickup to more than 150 locations, up from 80 previously. Amazon also plans to shorten some Whole Foods stores' hours for the public so its employees can more quickly fulfill online grocery orders, the company said....
