Per reporter: Wen Qiao Tan Yuhan
This week, Omi Kerong continued to spread rapidly in Europe and the United States, and the United States, the United Kingdom, and France set a new high for many days of new cases in the day. WHO Director-General Tedros Adhanom Ghebreyesus said the Omiljung and Delta strains posed a "double" threat to the world. The surge in cases has led to the cancellation of nearly 10,000 flights in the United States, and it also indicates that the global economic recovery in the new year may face difficulties.
Following a series of new deal "bailouts" announced by Turkish President Recep Tayyip Erdogan last week, the Turkish lira resumed its decline this week after experiencing a sharp rally. The lira fell more than 20 percent this week due to soaring inflation in Turkey and persistent concerns about monetary policy. The analysis believes that the appreciation of the lira will not be sustainable, and in the long run, Erdogan's efforts may be in vain.
In addition, Biden is considering nominating a former deputy treasury secretary as vice chairman of the Federal Reserve's financial regulation; Tesla recalls about 475,000 cars in the United States; and Alphabet is up nearly 70% this year, making it the best-performing large technology stock in 2021.
More content, all in the "Week of International Finance".
Omi kerong caused an "epidemic tsunami" in Europe and the United States
World Bank: Or trigger another recession
Image source: Visual China
On December 29, 2021 local time, WHO Director-General Tedros Adhanom Ghebreyesus warned at a press conference that the Delta variant and the Opichron variant pose a "double threat" to the world, resulting in a surge in the number of global COVID-19 cases like a "tsunami". But he still said the severe phase of the COVID-19 pandemic could end in 2022.
With the rapid spread of Omi kerong, the number of new cases in the United States, France, the United Kingdom and other countries has hit a record high this week. In its weekly epidemiological report released on 28 December 2021, WHO noted that the Olmiqueron strain has a transmission advantage over delta strains and has become the main epidemic strain in countries such as the United Kingdom and the United States.
According to data from Johns Hopkins University, the number of new COVID-19 cases in the United States exceeded 265,000 on the 28th, setting a new single-day record since the COVID-19 epidemic, while the number of hospitalizations for COVID-19 in many states set a record high this month. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, believes that by the end of January 2022, the case of the Omiljun strain in the United States may peak.
At the same time, the epidemic situation in Europe is also becoming more and more severe. According to the French Ministry of Health, the number of new cases in France on Wednesday reached 208,000, a new high since the outbreak of the epidemic in France, and according to the British Health Security Agency, the number of new cases in the United Kingdom on Wednesday reached 129471, breaking the country's record for the highest single-day new proportion.
The number of cases has repeatedly reached new highs, raising concerns in the scientific community that the healthcare system is overburdened. Fauci believes that while there is growing strong evidence that The severity of Omilon is low, when the number of cases becomes very large, this may offset the positive effects of mild symptoms and may still lead to a climb in hospitalizations.
In addition to this, experts are also warning about the possibility of new variants appearing. Some experts expect that the Omikeron variant is not the last variant of the new crown, it will make 2022 face a "difficult start".
Roger Shapiro, associate professor of immunology and infectious diseases at the Harvard School of Public Health and chairman of the board of directors of the Harvard AIDS Institute partnership in Botswana, said in an interview with the Daily Economic News:
Viruses are really concerned with survival and replication, and it is difficult to predict in the short term which direction is most beneficial to the survival of the virus. Usually, viruses become less severe over time, but this is not always the case. Current information suggests that [Omikron] seems to ignore previously produced antibodies, but the body's immune system also includes a T-cell immune response that can also help protect against the virus. ”
Against the backdrop of the spread of Omikeron, the surge in cases it has triggered also indicates that the global economic recovery in the new year may face difficulties. Affected by the double impact of the surge in cases and winter weather, the United States has cancelled more than 8,000 flights since December 24, 2021, and foreign media expect this situation to continue.
On December 29, 2021, Carmen Reinhart, chief economist at the World Bank's international financial institutions, warned that Opmicron's combined inflation could plunge the world's major economies into a "double recession."
Anti-epidemic broadcast
Israel administers a fourth dose of the vaccine to immunocompromised populations
On December 30, 2021 local time, Nahman Ashe, director general of the Israeli Ministry of Health, officially approved the opening of the fourth dose of COVID-19 vaccination to people with low immunity in the country, but it has not yet been approved to be opened to people over 60 years old and medical workers.
Previously, Sheba Medical Center, one of israel's largest medical institutions, has begun clinical trials of a fourth dose of vaccination for about 200 volunteers, although no specific results have been published.
T cells are effective in preventing severe illness caused by Ami kerong
On December 30, 2021, local time, according to Bloomberg, studies conducted by Erasmus University in the Netherlands and the University of Cape Town in South Africa showed that after vaccination, human T cells can provide strong defense against the Omiljung variant, which may help prevent serious illness, hospitalization and death.
A study of 60 vaccinated healthcare workers by Dutch researchers found that while their antibody response to Omilon was lower compared to beta or Delta strains, the T cell response remained largely unchanged, which may balance out the loss of neutralizing antibodies in preventing or limiting severe disease.
South African researchers looked at people who received Pfizer or Johnson & Johnson vaccines and those who recovered from COVID-19 and found that 70 to 80 percent of the T cell responses assessed were resistant to the Olmikeron strain.
South Korea approves the emergency use authorization of Pfizer's COVID-19 oral drug
On December 27, 2021, South Korea's Food and Drug Safety Department said it decided to approve the emergency use authorization of the new coronavirus oral drug Paxlovid developed by U.S. pharmaceutical company Pfizer in the country. This is the first time that a COVID-19 oral drug has been put into use in South Korea.
According to Yonhap News Agency, the agency is studying whether to approve the new COVID-19 oral drug developed by Merck and analyze its safety and efficacy.
CDC: Omicron incubation period or about 3 days
On December 28, 2021 local time, the US Centers for Disease Control and Prevention released a study on 6 cases of Omilon, and the results showed that the incubation period of the Omilon variant strain may be shorter than other variants, only about 3 days, while the Delta variant strain and the original new coronavirus take 4 to 6 days.
The report also said it was unclear whether mild clinical syndromes or different symptom descriptions were the result of existing immunity or changes in clinical features associated with Omiljung infection.
Infection with Aomi Keron will increase the protection of Delta
On December 28, 2021, local time, according to CNBC, a study in South Africa showed that after infection with the Aomi Kerong variant, the immune response generated by the human body can increase the neutralization and protection efficiency of the Delta variant by more than four times. This means that people are less likely to be re-infected with the Delta strain, and Omiqueron may replace Delta as the globally dominant COVID-19 strain.
However, the study also warns that it is unclear whether the increased protection is due to the immunity generated by the Omicron-induced antibodies, vaccines or previous infections.
A collection of financial news
01
Failed government bailout? The Turkish lira resumed its decline
Turkish Lira against the US dollar
From December 27 to December 31, 2021 local time, due to the market's concerns about soaring inflation and monetary policy in Turkey, the Turkish lira fell against the US dollar for five consecutive days, falling by more than 20% for the week, giving back the gains brought by the government bailout.
Although the Turkish central bank said in the 2022 policy framework report released on the 28th that it will monitor the risks associated with the foreign exchange market and take necessary measures to ensure the smooth operation of the exchange rate, making the lira more attractive than foreign currencies. However, judging from the overall exchange rate trend, the market is not buying the policy document.
In the previous week, Turkish financial markets fluctuated sharply, and in order to stabilize the exchange rate, Turkish President Recep Tayyip Erdogan announced a series of "rescue" new policies, and finally the Turkish lira rose 50% against the US dollar last week, the best weekly performance in history.
The analysis believes that this move has led to the significant consumption of Turkey's foreign exchange reserves, and the reason for the sharp rise in the lira in the previous week has been the direct intervention of the government in the foreign exchange market, rather than the increase in lira deposits. The appreciation of the lira is unsustainable, and Erdogan's efforts may be in vain in the long run.
02
Biden is considering nominating a former deputy treasury secretary to serve as vice chairman of the Federal Reserve's financial regulation
On December 29, 2021 local time, the Wall Street Journal quoted people familiar with the matter as reporting that US President Biden is considering having Sarah Bloom Ruskin as the Vice Chairman of the Federal Reserve responsible for regulation. There are currently three board vacancies at the Fed, with Vice Chairman of Regulation being the most important of them.
Ruskin held key positions at the Federal Reserve and Treasury Department during the Obama administration, including serving as a fed governor from 2010 to 2014 and as deputy treasury secretary from 2014 to 2017. She could prompt the Fed to become more stringent in its regulations.
Biden is also considering nominating two black economists — Lisa Cook, a professor of economics and international relations at Michigan State University and Philip Jefferson , a professor at Davidson College in North Carolina — to fill the remaining two Fed board seats.
03
Tesla recalled about 475,000 vehicles in the U.S., close to its global total deliveries last year
Image source: Per reporter Li Xing
On December 30, 2021 local time, Tesla announced a recall of about 475,000 vehicles in the United States due to technical defects that may increase the risk of accidents, almost equivalent to its total global deliveries last year.
According to the National Highway Traffic Safety Administration (NHTSA), Tesla plans to recall all Model 3 models produced between 2017 and 2020, for a total of 356309, as the wiring harness of the rearview camera can be damaged by opening and closing the trunk, hindering image display. In addition, Tesla will recall 119009 Model S models assembled since 2014 due to problems with the front longitudinal beam that could cause the hood to open unexpectedly. The company said it would solve both problems for free.
Tesla said it was not aware of any crashes, injuries or deaths related to these two technical flaws.
04
Alphabet rose nearly 70% during the year, making it the best-performing large tech stock in 2021
As of December 31, 2021 local time, Google parent Alphabet closed at $2897.04 per share, up 65.3% for the full year, the best year since 2009, and the company also became the best-performing large technology stock in 2021.
According to CNBC, Alphabet's stock price rose mainly due to its earnings report. Google's full-year revenue is expected to climb 39 percent to $254 billion, recording its biggest revenue growth since 2007, according to Refinitiv data.
The company's revenue for the previous year came largely from Google's advertising business, which proved its advertising business competitive as tech giants like Facebook were affected by changes in privacy rules for Apple's iOS system. In addition, Google's cloud computing business, venture capital division and private equity firms have all brought significant returns to Alphabet.
Looking ahead to 2022, Wall Street analysis believes alphabet needs to find new growth drivers to continue to maintain the excellent performance of its stock price.
05
Musk completes the option-related stock sale program
On December 28, 2021 local time, Tesla CEO Elon Musk completed the sale of his options related to the expiration of 2022.
On the same day, Musk exercised an option to buy 1.6 million shares of Tesla stock and sold 934,090 shares for $1.02 billion to pay taxes related to the exercise of the options. Musk previously said on December 22 that when he completes the sale, he will achieve his goal of selling 10% of his Tesla stock.
Through the latest deal, he has exercised all options to buy 22.86 million shares of stock that expire in 2022, Reuters reported.
06
Global M&A deals will exceed the $5 trillion mark for the first time in 2021
On December 31, 2021, according to Deallogic data, the global M&A transaction volume exceeded $5 trillion for the first time in history, totaling $5.8 trillion, an increase of 64% from the previous year and breaking the record of $4.55 trillion in 2007.
Some analysts said that global M&A activity broke historical records, largely benefiting from cheap financing and stock market prosperity. Fueled by cash plentifulness and soaring stock market valuations, large buyout funds, corporations and financiers closed 62,193 deals in 2021, up 24 percent from the previous year and each month at record highs.
Investment bankers said that while interest rate hikes are imminent and rising interest rates will increase borrowing costs and may slow M&A activity, large-scale M&A frenzy is expected in 2022.
Image source: Per Warp Mapping
Reporter: Wen Qiao, Tan Yuhan
Editor: Tan Yuhan
Vision: Liu Qingyan
Typesetting: Tan Yuhan Wang Shujie
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