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Brace For Extremely Busy Week: Fed, GDP, CPI, Biden Tax Plans And Earnings Galore

Brace For Extremely Busy Week: Fed, GDP, CPI, Biden Tax Plans And Earnings Galore

Buckle up for an extremely busy week dotted with a flood of tech earnings, central banks galore and a the latest US GDP and CPI prints.

The Federal Reserve…

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Brace For Extremely Busy Week: Fed, GDP, CPI, Biden Tax Plans And Earnings Galore

Buckle up for an extremely busy week dotted with a flood of tech earnings, central banks galore and a the latest US GDP and CPI prints.

The Federal Reserve (Weds) and the Bank of Japan (Thurs) are both making their latest policy announcements with the former the obvious focal point for the week, even if the outcome will likely be uneventful (unlike the June meeting when the Fed is likely to hint at tapering for the first time). On top of that, there are an array of earnings releases, including 180 companies in the S&P 500. Tesla today might be one of the more headline grabbing ones but to be honest there are plenty of them. Meanwhile President Biden will give his first speech to a joint session of Congress (Weds) and finally, there are some important data releases, including the first look at Q1 GDP for the US (Thurs) and the Euro Area (Fri).

The biggest scheduled event on this week’s calendar for markets will be Wednesday’s Federal Reserve meeting and Chair Powell’s subsequent press conference. In their preview, Deutsche Bank economists write that this meeting should largely serve as a status check of the economic recovery relative to the substantial forecast upgrades that the FOMC unveiled at their March meeting. And in the press conference, they expect Powell will likely continue his subtle shift in tone in a more optimistic direction. Nevertheless, given the remaining gaps in the labor market and the focus on seeing actual rather than forecasted progress, April is too soon for the return of taper talk, and they expect those discussions to heat up during the summer instead.

As Bloomberg's Laura Cooper writes, while waiting for that “substantial further progress”, Chair Powell is likely to affirm patience and take upbeat data in stride. Market watchers are becoming less convinced, with 45% of economists anticipating a 4Q tapering. No wonder when strong economic data is likely to extend, led by an anticipated 6.9% 1Q GDP print on Thursday and President Biden’s push for infrastructure mid-week. That recovery optimism has bolstered S&P 500 earnings expectations, with massive beats so far and ~30% of the index reporting this week. As we said two weeks ago, guidance will matter more than profit surprises with heightened focus on inflation, resulting margin compression and re-opening impacts given optimism baked in to valuations. Bellwether tech firms take the spotlight with Tesla announcing today, setting up for bouts of market volatility.

The other major central bank deciding on rates is the Bank of Japan (tomorrow), when it will also be releasing its quarterly Outlook Report. The BoJ is likely to retain its current policy stance next week, having only just fine-tuned their framework after the policy assessment last month. For the Outlook Report, the expectation is that it will raise the overseas growth projections, but the main focus will be on the new figures for FY2023, where our economist is looking for a real GDP growth forecast of 1.2% and

The Covid pandemic will also remain in the spotlight as the number of global cases rose at their fastest weekly pace yet last week. India has seen fresh record cases over the weekend with around 350k new daily positive tests and a million over 3 days. There have been reports that’s various models are predicting this could hit over 500k per day this week which will gain huge headlines. While Indian case loads are so high there will be concerns about the unevenness of the global recovery and the ability of variants to escape. So this is undoubtedly a big story.

In the political sphere, this week will see President Biden give his first speech to a joint session of Congress on Wednesday. We’re expecting a number of measures to be discussed, including the American Families Plan, which is expected to include fresh proposals on childcare and education. This sits alongside the American Jobs Plan, that Biden has already unveiled, where he proposed investing over $2tn in infrastructure and other priorities, to be financed through higher corporate taxes.

Commodity watchers will also be focusing on the OPEC+ meeting this Wednesday and with Iran talks progressing, there are obvious catalysts for oil volatility this week.

The current earnings season moves into full flow this week, as 180 companies in the S&P 500 report, along with a further 113 from the STOXX 600. Among the highlights include Tesla today, then tomorrow, we’ll hear from Microsoft, Alphabet, Visa, Novartis, Eli Lilly, Texas Instruments, UPS, Amgen, Starbucks, Raytheon Technologies, General Electric, HSBC, 3M and UBS. Wednesday then brings Apple, Facebook, Qualcomm, Boeing, Sanofi, GlaxoSmithKline, Santander, Ford, Lloyds Banking Group and Sony. On Thursday, releases include Amazon, Mastercard, Comcast, Merck, Thermo Fisher Scientific, McDonald’s, Bristol Myers Squibb, Royal Dutch Shell, Caterpillar, Total, American Tower, Twitter, NatWest Group and Samsung Electronics. Finally on Friday, there’s Exxon Mobil, Chevron, AbbVie, Charter Communications, AstraZeneca, BNP Paribas and Barclays.

Source: Earnings Whispers

Finally, there are also a few highlights among this week’s data releases, with the initial estimates of Q1 GDP coming out for numerous countries, including the US, the Euro Area, Germany, France and Italy. It’ll also be worth watching out for the weekly initial jobless claims data from the US, as that’s one of the most timely indicators we get, and has fallen to a post-pandemic low this last week, so it’ll be interesting to see if that decline is sustained.

Day-by-day calendar of events, courtesy of Deutsche Bank

Monday April 26

  • Data: Germany April Ifo business climate indicator, US preliminary March durable goods orders, nondefence capital goods orders ex air, April Dallas Fed manufacturing activity
  • Earnings: Tesla

Tuesday April 27

  • Data: Italy April consumer confidence index, US February FHFA house price index, April Conference Board consumer confidence, Richmond Fed manufacturing index
  • Central Banks: Bank of Japan monetary policy decision
  • Earnings: Microsoft, Alphabet, Visa, Novartis, Eli Lilly, Texas Instruments, UPS, Amgen, Starbucks, Raytheon Technologies, General Electric, HSBC, 3M, UBS

Wednesday April 28

  • Data: Japan March retail sales, Germany May GfK consumer confidence, France April consumer confidence, US preliminary March wholesale inventories
  • Central Banks: Federal Reserve monetary policy decision
  • Earnings: Apple, Facebook, Qualcomm, Boeing, Sanofi, GlaxoSmithKline, Santander, Ford, Lloyds Banking Group, Sony
  • Politics: Joe Biden addresses joint session of Congress

Thursday April 29

  • Data: Germany April unemployment change, preliminary April CPI, Euro Area March M3 money supply, final April consumer confidence, US weekly initial jobless claims, advance Q1 GDP, personal consumption, core PCE, March pending home sales
  • Central Banks: ECB’s Schnabel does Twitter Q&A and ECB’s Centeno speaks
  • Earnings: Amazon, Mastercard, Comcast, Merck, Thermo Fisher Scientific, McDonald’s, Bristol Myers Squibb, Royal Dutch Shell, Caterpillar, Total, American Tower, Twitter, NatWest Group, Samsung Electronics

Friday April 30

  • Data: Japan March jobless rate, preliminary March industrial production, final March manufacturing PMI, China April non-manufacturing PMI, manufacturing PMI, composite PMI, preliminary Q1 GDP readings from Euro Area, Germany, France and Italy, preliminary April CPI from Euro Area, France and Italy, Euro Area March unemployment rate, Canada February GDP, US Q1 employment cost index, March personal income, personal spending, April MNI Chicago PMI, final April University of Michigan consumer sentiment index
  • Central Banks: ECB’s Holzmann and Fed Vice Chair Quarles speak
  • Earnings: Exxon Mobil, Chevron, AbbVie, Charter Communications, AstraZeneca, BNP Paribas, Barclays

* * *

Finally, looking at just the US, Goldman writes that the key economic data releases this week are the durable goods report on Monday, Q1 GDP release on Thursday, and PCE inflation and the employment cost index on Friday. The April FOMC meeting is this week, with the release of the statement at 2:00 PM ET on Wednesday, followed by Chair Powell’s press conference at 2:30 PM. There are no other major speaking engagements from Fed officials this week, reflecting the FOMC blackout period.

Monday, April 26

  • 08:30 AM Durable goods orders, March preliminary (GS +2.0%, consensus +2.5%, last -1.2%); Durable goods orders ex-transportation, March preliminary (GS +2.1%, consensus +1.6%, last -0.9%); Core capital goods orders, March preliminary (GS +2.1%, consensus +1.8%, last -0.9%); Core capital goods shipments, March preliminary (GS +2.1%, consensus +1.5%, last -1.1%): We estimate durable goods orders rose 2.0% in the preliminary March report, reflecting mixed net orders for commercial aircraft. We estimate a 2.1% rebound in both core capital goods orders and core capital goods shipments, reflecting continued industrial-sector resilience, the rebound in business equipment production, and improvement following the February Texas storms.
  • 10:30 AM Dallas Fed manufacturing index, April (consensus 30.0, last 28.9)

Tuesday, April 27

  • 09:00 AM FHFA house price index, February (consensus +1.0%, last +1.0%)
  • 09:00 AM S&P/Case-Shiller 20-city home price index, February (GS +1.1%, consensus +1.10%, last +1.20%); We estimate the S&P/Case-Shiller 20-city home price index rose by 1.1% in February, following a 1.20% increase in January.
  • 10:00 AM Conference Board consumer confidence, April (GS 113.5 consensus 112.0, last 109.7): We estimate that the Conference Board consumer confidence index increased by 3.8pt to 113.5 in April. Our forecast reflects stronger signals from other consumer confidence measures.
  • 10:00 AM Richmond Fed manufacturing index, April (consensus +22, last +17)

Wednesday, April 28

  • 08:30 AM Advance goods trade balance, March (GS -$88.5bn, consensus -$87.7bn, last -$88.0bn): We estimate that the goods trade deficit increased by $0.5bn to $88.5bn in March compared to the final February report, reflecting increased imports.
  • 08:30 AM Wholesale inventories, March preliminary (consensus +0.5%, last +0.6%): Retail inventories, March (consensus -0.3%, last flat)
  • 02:00 PM FOMC statement, April 27-28 meeting: As discussed in our FOMC preview, we expect that the April FOMC meeting will be uneventful. The pace of recovery has accelerated since the FOMC last met in March, and we expect the April FOMC statement to feature a more upbeat description of recent economic activity. However, we think it is clearly too soon for the FOMC to hint at tapering with core inflation low, the unemployment rate at 6%, and broader slack higher still. We continue to expect the FOMC to start hinting at tapering in the second half of this year and to begin tapering in early 2022.

Thursday, April 29

  • 08:30 AM GDP, Q1 advance (GS +7.5%, consensus +6.9%, last +4.3%); Personal consumption, Q1 advance (GS +10.7%, consensus +10.3%, last +2.3%): We estimate GDP growth accelerated to +7.5% annualized in the advance reading for Q1, following +4.3% in Q4. Our forecast reflects very strong growth in consumption driven by the reopening and the stimulus (+10.7% annualized) that embeds a sizeable increase in virus-sensitive services categories in March. We expect another large rise in residential investment (+25%) and double digit gains in business capex categories. We expect a sizeable drag on GDP growth from inventories (-2.3pp qoq ar) and net trade (-1.0pp) reflecting the late quarter surge in goods spending, and we will hone our estimates based on the advance economic indicators report on Wednesday.
  • 08:30 AM Initial jobless claims, week ended April 24 (GS 560k, consensus 550k, last 547k); Continuing jobless claims, week ended April 17 (consensus 3,590k, last 3,674k): We estimate initial jobless claims increased to 560k in the week ended April 24.
  • 10:00 AM Pending home sales, March (GS +6.0%, consensus +4.0%, last -10.6%): We estimate that pending home sales rebounded by 6.0% in March.

Friday, April 30

  • 08:30 AM Employment cost index, Q1 (GS +0.6%, consensus +0.7%, prior +0.7%): We estimate that the employment cost index rose 0.6% in Q1 (qoq sa), which would lower the year-on-year rate by two tenths to +2.3%. Labor market slack remains somewhat elevated despite the sharp declines in recent quarters, and we believe this exerted downward pressure on annual wage increases in some industries. Our wage tracker has also edged down on a composition adjusted basis.
  • 08:30 AM Personal income, March (GS +20.3%, consensus +20.0%, last -7.1%): Personal spending, March (GS +4.3% consensus +4.2%, last -1.0%); PCE price index, March (GS +0.50%, consensus +0.5%, last +0.23%); Core PCE price index, March (GS +0.34%, consensus +0.3, last +0.09%); PCE price index (yoy), March (GS +2.33%, consensus +2.3%, last +1.55%); Core PCE price index (yoy), March (GS +1.86%, consensus +1.8%, last +1.41%): Based on details in the PPI, CPI, and import price reports, we forecast that the core PCE price index rose by 0.34% month-over-month in March, corresponding to a 1.86% increase from a year earlier. Additionally, we expect that the headline PCE price index increased by 0.50% in March, corresponding to a 2.33% increase from a year earlier. We expect a +20.3%, increase in personal income and a 4.3% increase in personal spending in March.
  • 09:45 AM Chicago PMI, April (GS 65.5, consensus 64.2, last 66.3): We estimate that the Chicago PMI declined by 0.8pt to 65.5 in April, reflecting mean reversion after a surge in the previous month but a continued boost from the supplier deliveries component and strong fundamentals
  • 10:00 AM University of Michigan consumer sentiment, March Final (GS 88.2, consensus 87.5, last 86.5): We expect the University of Michigan consumer sentiment index to increase by 1.7pt to 88.2, reflecting further improvement in other consumer sentiment measures.

Source: Deutsche Bank, BofA, Goldman Sachs

Tyler Durden Mon, 04/26/2021 - 09:10

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Spread & Containment

Middle-aged Americans in US are stressed and struggle with physical and mental health – other nations do better

Adults in Germany, South Korea and Mexico reported improvements in health, well-being and memory.

Middle age was often a time to enjoy life. Now, it brings stress and bad health to many Americans, especially those with lower education levels. Mike Harrington/Getty Images

Midlife was once considered a time to enjoy the fruits of one’s years of work and parenting. That is no longer true in the U.S.

Deaths of despair and chronic pain among middle-aged adults have been increasing for the past decade. Today’s middle-aged adults – ages 40 to 65 – report more daily stress and poorer physical health and psychological well-being, compared to middle-aged adults during the 1990s. These trends are most pronounced for people who attained fewer years of education.

Although these trends preclude the COVID-19 pandemic, COVID-19’s imprint promises to further exacerbate the suffering. Historical declines in the health and well-being of U.S. middle-aged adults raises two important questions: To what extent is this confined to the U.S., and will COVID-19 impact future trends?

My colleagues and I recently published a cross-national study, which is currently in press, that provides insights into how U.S. middle-aged adults are currently faring in relation to their counterparts in other nations, and what future generations can expect in the post-COVID-19 world. Our study examined cohort differences in the health, well-being and memory of U.S. middle-aged adults and whether they differed from middle-aged adults in Australia, Germany, South Korea and Mexico.

A middle-aged woman looking sad sitting in front of artwork.
Susan Stevens poses for a photograph in her daughter Toria’s room with artwork Toria left behind at their home in Lewisville, N.C. Toria died from an overdose. Eamon Queeney/For The Washington Post via Getty Images

US is an outlier among rich nations

We compared people who were born in the 1930s through the 1960s in terms of their health and well-being – such as depressive symptoms and life satisfaction – and memory in midlife.

Differences between nations were stark. For the U.S., we found a general pattern of decline. Americans born in the 1950s and 1960s experienced overall declines in well-being and memory in middle age compared to those born in the 1930s and 1940s. A similar pattern was found for Australian middle-aged adults.

In contrast, each successive cohort in Germany, South Korea and Mexico reported improvements in well-being and memory. Improvements were observed in health for each nation across cohorts, but were slowed for Americans born in the 1950s and 1960s, suggesting they improved less rapidly than their counterparts in the countries examined.

Our study finds that middle-aged Americans are experiencing overall declines in key outcomes, whereas other nations are showing general improvements. Our cross-national approach points to policies that could could help alleviate the long-term effects arising from the COVID-19 pandemic.

Will COVID-19 exacerbate troubling trends?

Initial research on the short-term effects of COVID-19 is telling.

The COVID-19 pandemic has laid bare the fragility of life. Seismic shifts have been experienced in every sphere of existence. In the U.S., job loss and instability rose, household financial fragility and lack of emergency savings have been spotlighted, and children fell behind in school.

At the start of the pandemic the focus was rightly on the safety of older adults. Older adults were most vulnerable to the risks posed by COVID-19, which included mortality, social isolation and loneliness. Indeed, older adults were at higher risk, but an overlooked component has been how the mental health risks and long-haul effects will likely differ across age groups.

Yet, young adults and middle-aged adults are showing the most vulnerabilities in their well-being. Studies are documenting that they are currently reporting more psychological distress and stressors and poorer well-being, compared to older adults. COVID-19 has been exacerbating inequalities across race, gender and socioeconomic status. Women are more likely to leave the workforce, which could further strain their well-being.

A older women hugs her daughter.
Middle-aged people often have parents to take care of as well as children. Ron Levine/Getty Images

Changing views and experiences of midlife

The very nature and expectations surrounding midlife are shifting. U.S. middle-aged adults are confronting more parenting pressures than ever before, in the form of engagement in extracurricular activities and pressures for their children to succeed in school. Record numbers of young adults are moving back home with their middle-aged parents due to student loan debt and a historically challenging labor and housing market.

A direct effect of gains in life expectancy is that middle-aged adults are needing to take on more caregiving-related duties for their aging parents and other relatives, while continuing with full-time work and taking care of school-aged children. This is complicated by the fact that there is no federally mandated program for paid family leave that could cover instances of caregiving, or the birth or adoption of a child. A recent AARP report estimated that in 2020, there were 53 million caregivers whose unpaid labor was valued at US$470 billion.

The restructuring of corporate America has led to less investment in employee development and destabilization of unions. Employees now have less power and input than ever before. Although health care coverage has risen since the Affordable Care Act was enacted, notable gaps exist. High numbers of people are underinsured, which leads to more out-of-pocket expenses that eat up monthly budgets and financially strain households. President Biden’s executive order for providing a special enrollment period of the health care marketplace exchange until Aug. 15, 2021 promises to bring some relief to those in need.

Promoting a prosperous midlife

Our cross-national approach provides ample opportunities to explore ways to reverse the U.S. disadvantage and promote resilience for middle-aged adults.

The nations we studied vastly differ in their family and work policies. Paid parental leave and subsidized child care help relieve the stress and financial strain of parenting in countries such as Germany, Denmark and Sweden. Research documents how well-being is higher in both parents and nonparents in nations with more generous family leave policies.

Countries with ample paid sick and vacation days ensure that employees can take time off to care for an ailing family member. Stronger safety nets protect laid-off employees by ensuring that they have the resources available to stay on their feet.

In the U.S., health insurance is typically tied to one’s employment. Early on in the COVID-19 pandemic over 5 million people in the U.S. lost their health insurance when they lost their jobs.

During the pandemic, the U.S. government passed policy measures to aid people and businesses. The U.S. approved measures to stimulate the economy through stimulus checks, payroll protection for small businesses, expansion of unemployment benefits and health care enrollment, child tax credits, and individuals’ ability to claim forbearance for various forms of debt and housing payments. Some of these measures have been beneficial, with recent findings showing that material hardship declined and well-being improved during periods when the stimulus checks were distributed.

I believe these programs are a good start, but they need to be expanded if there is any hope of reversing these troubling trends and promoting resilience in middle-aged Americans. A recent report from the Robert Wood Johnson Foundation concluded that paid family leave has a wide range of benefits, including, but not limited to, addressing health, racial and gender inequities; helping women stay in the workforce; and assisting businesses in recruiting skilled workers. Research from Germany and the United Kingdom shows how expansions in family leave policies have lasting effects on well-being, particularly for women.

Middle-aged adults form the backbone of society. They constitute large segments of the workforce while having to simultaneously bridge younger and older generations through caregiving-related duties. Ensuring their success, productivity, health and well-being through these various programs promises to have cascading effects on their families and society as a whole.

[Get the best of The Conversation, every weekend. Sign up for our weekly newsletter.]

Frank J. Infurna receives funding from the National Institute on Aging and previously from the John Templeton Foundation. The content is solely his responsibility and does not necessarily represent the official views of the funding agencies.

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Commodities

Euro 2020 – a football tournament where the big players come from China and the US

Much of the money that pays for the competition is spent to build global brands.

Simon Lehmann / Alamy Stock Photo

With Euro 2020 now under way after a year of pandemic delay, football fans will be hoping for great performances from Europe’s finest players. Some of us will watch the tournament unfold on our Hisense televisions, and many will choose to order in some half time refreshments, maybe via the Just Eat delivery service, possibly sent using a Vivo mobile phone.

Sustained by cans of Heineken, as goals are scored, supporters will upload celebration clips on to TikTok. And after the final, what better way to recharge than by arranging a holiday on Booking.com, perhaps flying on Qatar Airways.

For while fans will have their eyes firmly fixed on the efforts of players worth billions of pounds on the field, another big money game will be taking place off it. The Euros is one of the world’s biggest sport events, and a bonanza for corporate sponsors and partners (just a few of which are mentioned above).

In return for being exposed to the eyes of the world, Euros sponsors pay huge amounts of money. Just how much is difficult to say, as fees are commercially sensitive data. But in one case – that of Alipay (part of the Alibaba empire) – it is believed the Chinese company paid £176 million for an eight year deal.

UEFA has sold these deals in three ways: National Team Football Official Sponsors, Euro 2020 Official Sponsors, and Euro 2020 Official Licensees. And the origins of the companies and brands sponsoring this year’s event are a clear indication of how the beautiful game is valued by the corporate world.

Alongside UEFA partners such as FedEx and Konami, each of the national teams bring their own roster of sponsors, which makes for quite a cluttered selection of brands competing for attention. There’s England’s £50 million, five-year contract with BT, for example, while the Germans will bring Lufthansa to the tournament, Carlsberg will promote its association with Denmark and South Korea’s Hyundai will be represented by the Czech Republic.

The list goes on (and on). To capture the complex network of sponsors at Euro 2020 we created a network graphic of some of the most prominent and significant deals on show over the coming weeks. For reasons of clarity, we wern’t able to include every sponsor, but the range on display is revealing.

Graphic of Euro 2020 teams and sponsors.
Euro 2020 teams and associated sponsors. Paul Widdop and Simon Chadwick, Author provided

What becomes immediately clear is that although the UEFA European Championship is a continental tournament, its commercial reach is truly global. A significant number of sponsors are either not European or else have divisions that operate way beyond the borders of Europe.

At the same time, the sponsorship portfolio shows us that football is at the heart of the entertainment, lifestyle and digital economies. Gone are the days of motor-oil and office photocopier sponsorships. Instead we see a profusion of drinks brands, confectionery products and airlines.

In addition, the sponsorship of teams appears to go hand-in-hand with the promotion of national identity and national industry. “Brand Germany” for instance, is strongly represented by some of the country’s most important corporations, including Adidas and Volkswagen.

The appearance of Gazprom meanwhile, reflects the increasing use by nations of sponsorship as a geopolitical instrument. Indeed, the state owned Russian gas company has recently put its associations with UEFA and others to influential use.

Europe’s own goal

Equally, “Brand China” is now a major industrial and political power, and home to five of UEFA’s biggest tournament sponsors (Alipay, Antchain, Hisense, TikTok and Vivo).

Corporate America continues to endure too, represented by the likes of Coca Cola and IMG. The US has always been the home of contemporary sport sponsorship, and the country’s businesses continue to derive significant commercial value from it.

In fact, the underdogs in this big-money corporate competition appear to be the Europeans themselves. For an event being staged in countries including England, Italy, Spain and Romania, UEFA draws very few of its sponsors from the continent. Instead, it is clear that organisations from China and the US have both the financial muscle and the tactical brains to successfully dominate the tournament.

This reflects broader global trends which indicate the declining presence of European industry. European companies account for a falling percentage of global output. The market capitalisation of European firms is way behind that of American corporations and is fast being caught by Chinese firms. And the world’s technological hot spots are found in places such as Shenzhen and Silicon Valley, not in Europe.

Whether the footballing squad from France, Portugal or Switzerland lifts the trophy in July, there is no doubt that the UEFA tournament will be an on field triumph for Europe.

But the forces of globalisation, digitalisation and politico-economic change, reflected in the Euros’ portfolio of sponsors, will keep on playing long after the final whistle blows. And European industry could pay the penalty with a swift exit from the global industrial competition.

Simon Chadwick works with UEFA on its Certificate in Football Management programme.

Paul Widdop ne travaille pas, ne conseille pas, ne possède pas de parts, ne reçoit pas de fonds d'une organisation qui pourrait tirer profit de cet article, et n'a déclaré aucune autre affiliation que son organisme de recherche.

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Science

EU adds another rare blood condition as side effect of AstraZeneca shot

Europe’s drug regulator on June 11 identified another rare blood condition as a potential side effect of AstraZeneca’s Covid-19 vaccine and said it was looking into cases of heart inflammation after inoculation with all coronavirus shots.

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EU adds another rare blood condition as side effect of AstraZeneca shot

(Reuters; )

Europe’s drug regulator on Friday identified another rare blood condition as a potential side effect of AstraZeneca’s (AZN.L) COVID-19 vaccine and said it was looking into cases of heart inflammation after inoculation with all coronavirus shots.

The European Medicines Agency’s (EMA) safety committee said that capillary leak syndrome must be added as a new side effect to labelling on AstraZeneca’s vaccine, known as Vaxzevria.

People who had previously sustained the condition, where fluids leak from the smallest blood vessels causing swelling and a drop in blood pressure, should not receive the shot, the EMA added.

The regulator first began looking into these cases in April and the recommendation adds to AstraZeneca’s woes after its vaccine was associated with very rare and potentially lethal cases of blood clotting that come with a low platelet count.

Last month, the EMA had advised against using the second AstraZeneca shot for people with that clotting condition, known as thrombosis with thrombocytopenia syndrome (TTS).

The committee reviewed six validated cases of capillary leak syndrome in people, mostly women, who had received Vaxzevria, including one death. Three had had a history of the condition.

A vial of AstraZeneca coronavirus vaccine is seen at a vaccination centre in Westfield Stratford City shopping centre, amid the outbreak of coronavirus disease (COVID-19), in London, Britain, February 18, 2021. REUTERS/Henry Nicholls/File Photo

AstraZeneca declined to immediately comment.

More than 78 million Vaxzevria doses have been administered in the European Union, Liechtenstein, Iceland & Norway and Britain.

Britain’s regulator, the MHRA said on Thursday it had received 8 reports of capillary leak syndrome in the context of more than 40 million doses of the AstraZeneca vaccine given, and currently does not see a causal link.

Separately, the EMA said it was continuing its probe into cases of heart inflammation known as myocarditis and pericarditis, primarily following inoculation with the Pfizer/BioNTech (PFE.N), (22UAy.DE) and Moderna mRNA shots, but also after the J&J (JNJ.N) and AstraZeneca vaccines.

U.S. health officials said on Thursday they had registered a higher-than-expected number of heart inflammation cases in young men who received a second dose of the mRNA shots, though a causal relationship could not be established. read more

Israel’s Health Ministry said this month it had found a likely link to the condition in young men who received the Pfizer/BioNTech shot. read more

Both Pfizer and Moderna have acknowldged the observations but said a causal association with their vaccines has not been established.

BioNTech said adverse events, including myocarditis and pericarditis, are being regularly and thoroughly reviewed by the companies and regulatory authorities.

“More than 300 million doses of the Pfizer-BioNTech COVID-19 vaccine have been administered globally and the benefit risk profile of our vaccine remains positive.”

The United States and Israel have been months ahead of the EU in vaccinating men below 30, who are particularly prone to heart inflammation, giving them potentially more cases to analyse.

Our Standards: The Thomson Reuters Trust Principles.

 

Reuters source:

https://www.reuters.com/business/healthcare-pharmaceuticals/eu-advises-against-astrazeneca-shot-people-with-rare-blood-condition-2021-06-11

 

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