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Flagship keeps ex-FDA commish Stephen Hahn busy with another CMO gig; Daphne Koller makes key hire at insitro by welcoming Google and Facebook vet

Stephen Hahn
→ What’s next for Stephen Hahn, you ask? It’s an interim CMO post at Flagship’s YourBio Health, the maker of kits that sidestep the conventional methods of blood collection in favor of push-button devices. Hahn joined Flagship in…

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Stephen Hahn

→ What’s next for Stephen Hahn, you ask? It’s an interim CMO post at Flagship’s YourBio Health, the maker of kits that sidestep the conventional methods of blood collection in favor of push-button devices. Hahn joined Flagship in June as CMO of its Preemptive Medicine and Health Security initiative after a topsy-turvy run as FDA commissioner in the Trump administration. Hahn received his share of flak when he extolled the virtues of convalescent pharma before the emergency use authorizations of the Moderna and Pfizer/BioNTech Covid-19 vaccines, eventually walking back his comments. Conversely, Hahn received kudos for staying resolute on safety followup from clinical trials. A month after his FDA tenure, Hahn joined the board of directors at Blackfynn.

Tom Stocky

Tom Stocky’s post-Google and Facebook journey takes him to Daphne Koller’s crew at insitro as VP of product, putting him in charge of enhancing the user experience for its machine-learning apparatus. Besides his years as Google’s director of project management (helping build the Google App Engine) and as Facebook’s VP of search & profile, he’s familiar with the biotech landscape as a technology fellow and a member of the scientific advisory board at Denali, which released less-than-satisfying Hunter syndrome data in July. Additionally, Stocky ran the learning platform at the Chan Zuckerberg Initiative.

Joseph Camardo

→ There’s a CMO shift that has taken place at Swiss biotech ADC Therapeutics, with Jay Feingold handing over the keys to VP of medical affairs Joseph Camardo. Before making his way to ADC in early 2020, Camardo spent 10 years as an exec at Celgene, where he was SVP of global medical affairs and corporate medical operations, then SVP of Celgene Global Health before the Bristol Myers Squibb deal closed. The Chris Martin-led ADC has expanded its reach into China with its joint venture Overland ADCT BioPharma, which named Eric Koo as its CEO in April.

Marc Blaustein has been named COO at microbiome player Finch Therapeutics, which nabbed an upsized $128 million IPO in March — nearly six months after its Series C that totaled $90 million for CEO Mark Smith’s bunch. The director of business development at Alkermes from 1999-2004, Blaustein co-founded and helmed Akashi Therapeutics and later became CEO of NED Biosystems. In his latest gig, Blaustein led business development at Guide Therapeutics, a Georgia Tech spinout that Beam bought for $120 million upfront in February.

Jeff Hackman

→ With a modest $10 million Series B in the hopper and ex-Genzyme CFO Jim Sherblom as executive chairman, ReForm Biologics has tapped Jeff Hackman as president and CEO. His predecessor, John Sorvillo, will chair the advisory board. Once in charge of the US internal medicine and oncology franchises at Shire, Hackman leaves his post as president of US operations with EUSA Pharma. Based in Woburn, MA, ReForm Biologics focuses on what they describe as “gentler medicines” for children and the elderly.

Lauren Sabella

→ Accompanying the news that Acorda is undergoing another revamp and trimming its staff by 15%, Lauren Sabella is getting promoted to COO and Kerry Clem is stepping into the CCO job that Sabella previously held. Sabella’s tenure at Acorda began in 2010 as EVP of commercial development, while Clem has spent a decade himself at Acorda, moving out of his role as EVP of sales, market access, and operations.

Leslie Meltzer

Bobby Gaspar’s gene therapy biotech Orchard Therapeutics has refashioned its C-suite considerably, promoting Leslie Meltzer to CMO while adding two fresh pickings to the leadership basket: CSO Fulvio Mavilio and chief technical officer Nicoletta Loggia. After stints at Actelion and Biogen, Meltzer joined Orchard in 2018 as VP of US medical affairs, climbing to SVP of medical affairs, clinical operations and diagnostics. Mavilio, the current CSO at Smart Immune, is the ex-SVP of translational science for Audentes and will consult at Orchard until he officially begins as chief scientist in January 2022. Loggia spent the last 17 years at Novartis in a number of capacities and since last April had been global head of cell and gene therapies.

Kat Lange

→ Padding the C-suite further after the arrivals of CSO John Leonard and CMO Edward Conner, CRISPR upstart Locanabio — nine months removed from its Series B megaround — has selected Kat Lange as CFO. Lange takes the plunge into the biotech world after 12 years at JP Morgan; since 2019 she had been executive director in JPM’s healthcare investment banking group. You may recall that another Locanabio exec, VP of R&D Ranjan Batra, was featured as one of Endpoints News20 under 40 leaders this year.

→ After Patrick Soon-Shiong’s much-ballyhooed “cancer moon shot” fizzled on the launch pad at NantKwest, he reverse-merged the company with his cell therapy outfit ImmunityBio in December and handed the controls to Rich Adcock. The team continues to take shape with Helen Luu as ImmunityBio’s first chief commercial officer and Sigrid Schreiner, who starts Monday as SVP of global market access. Luu’s clipped reign as CEO of Cell BT began in May after stepping in as COO in September 2020, and earlier she led business development within her 10-year stint at cancer vaccine maker Dendreon. Schreiner, also a Dendreon vet, had been promoted to SVP, global market access & distribution at Stemline Therapeutics in the spring of 2020.

Mel Hayes

→ Last month, Fulcrum’s stock rose by 125% after some initial success in their Phase I study to treat inherited blood disorders — a huge upswing considering the issues they encountered on the market last summer after a Phase II dud. This week, Fulcrum brings on Mel Hayes as chief commercial officer. Hayes has made stops along the way at Bristol Myers, Bayer and Baxalta, and he was recently Sanofi Genzyme’s global head commercial, VP, rare blood disorders.

Karen Tubridy

→ Bedford, MA-based Verseau Therapeutics, developing cancer drugs with a line of attack it calls macrophage repolarization, has ushered in Karen Tubridy as chief development officer. Tubridy, the ex-chief development officer at Eleven Biotherapeutics, moves on from her double duty as SVP, global programs and chief development officer at Akebia. Verseau, co-founded by Bob Langer with a first-year CEO in John Edwards, debuted in October 2019.

→ As Tubridy gets started at Verseau, Tim Smith walks away — writing a new chapter as SVP, head of corporate development at New Jersey p53-focused biotech PMV Pharmaceuticals, chaired by Rich Heyman. Smith, the CBO at Verseau since 2019, is a seven-year Celgene alum who has been a CBO before at Cleave Biosciences and led corporate development at Ideaya. PMV added $53 million to its coffers in a Series D from August 2020 to continue its focus on mutant p53 proteins, an especially tough nut to crack against cancer.

Thomas Tan

Longwood-backed immunotherapy startup Immunitas Therapeutics, flush with $58 million in Series B cash, has picked up Thomas Tan as CSO after he held the same title at Bicara Therapeutics. Tan, a Roche vet, has also been head of immunology at Forma Therapeutics and Elstar Therapeutics. Co-founded by Dana-Farber’s Kai Wucherpfennig and Genentech R&D chief Aviv Regev, Immunitas is trying to push its CD161-blocking antibody IMT-009 into the clinic and also promoted Amanda Wagner to CBO in August.

Neoleukin has been allowed to pass go on the FDA monopoly board with its IL-2/IL-15 agonist after a three-month hold, and the Seattle biotech has just tapped Bill Arthur as VP and head of research. All Arthur has to do is drive down Interstate 5 from his previous stop, Seagen, where he was senior director & head of cancer biology during his 10 years there. While with Merck from 2006-11, Arthur was team lead in biomarker discovery for investigational oncology drugs.

Mary DiBiase

Mary DiBiase has been promoted to COO at mavorixafor developer X4 Pharmaceuticals after serving as SVP, technical operations and quality. The 16-year Biogen alum initially jumped on board at X4 in 2017 in the role of VP, program and alliance management. Back in November, Art Tavares left Biogen to become X4’s CSO, and a month later the company poached CMO Diego Cavavid from Fulcrum. Trials are underway for mavorixafor to treat such diseases as WHIM syndrome (Phase III), Waldenström’s macroglobulinemia (Phase Ib with ibrutinib) and severe congenital neutropenia (also Phase Ib).

Biophytis — evaluating its sarcopenia drug Sarconeos (BIO101) in Covid-19 patients with severe respiratory failure — has given Rob van Maanen the nod as CMO after Jean Mariani held the fort for a couple months. Mariani had temporarily replaced Sam Agus and remains on the scientific advisory board. As for van Maanen, he exits the CMO post at mitochondrial disease-focused Khondrion to join the Paris-based biotech. Elsewhere, he was a senior medical director during a six-year run at Astellas and the CNS director at Eisai from 2005-10.

Tram Tran

Caroline Loew’s biosensor shop Glympse, using its platform to catch indications of NASH in patients, has appointed Tram Tran as CMO. Tran says farewell to Gilead, where she was VP of medical affairs, global head, liver diseases, fibrosis and Covid-19. She made the leap to Gilead in 2018 after 16 years both at Cedars-Sinai and in academia as a professor of medicine at UCLA.

Infinity Pharmaceuticals brought on Robert Ilaria to be its new CMO. Ilaria most recently came from Bristol Myers as part of their development team, and was the executive medical director for clincal R&D for Celgene before that. At the same time, Infinity is moving their consulting chief physician Brian Schwartz, a former acting CMO at Tarus, to the board of directors.

Pamela Garzone is taking over as chief development officer at Anixa Biosciences after holding executive roles with Calibr at the Scripps Research Institute and Pfizer. The sigh of relief you hear may be coming from San Jose after the FDA granted Anixa’s IND application for its Moffitt-partnered CAR-T immunotherapy in late August; the agency had placed a clinical hold on it in April.

Randy Pritchard

Pillar Biosciences has picked up Randy Pritchard as CEO — taking over for founder Gang Song, who will transition to chairman of the board. Pritchard joins the in vitro diagnostics company after holding positions at POC Diagnostics & Core Reagents (as SVP of US diagnostics marketing and SVP & lifecycle leader) and Roche Diagnostics (VP of marketing).

Jacob Michlewicz

→ Swedish cell therapy biotech Anocca, raking in $47 million from a Series B round in July, has welcomed Jacob Michlewicz as CFO. Michlewicz recently logged two years as CFO of Stockholm-based medtech Bioservo Technologies, a maker of wearables to help strengthen muscles which lists the exoskeleton glove Ironhand among its products.

Cyrus Arman

Cyrus Arman has signed on to Madison, WI peptide drug developer Nimble Therapeutics as CBO. After five years at Amgen where he was elevated to director of corporate strategy, Arman then pivoted to immuno-oncology biotech Neuvogen in 2019 as VP of corporate development and strategy.

Ali Hariri has been named CMO of Watertown, MA-based Eloxx Pharmaceuticals, which acquired Zikani Therapeutics this spring. Hariri, a clinical development leader at Ionis and Takeda, comes to Eloxx after his time as Sanofi’s senior global project head in rare disease clinical development. Helmed by ex-Zikani CEO Sumit Aggarwal, Eloxx is shooting for data in Q4 with its lead candidate ELX-02 for cystic fibrosis patients with nonsense mutations.

Semi Trotto

→ It’s full steam ahead with more hires at Third Rock startup MOMA Therapeutics after Asit Parikh rolled in as CEO and CSO Peter Hammerman followed him three months later, with Semi Trotto joining the molecular machine biotech as chief people and experience officer. Trotto, who spent 11 years in human resources and global talent acquisition at Bristol Myers, shifted to general manager at Thrive Earlier Detection after Exact Sciences purchased it for a near steal of a $2.5 billion deal last fall. She also led HR at Editas Medicine from 2016-19.

→ Our Max Gelman just covered VectivBio’s buyout of Comet Therapeutics last week, and now CEO Luca Santarelli brings in Scott Applebaum as chief legal officer and corporate secretary. Formerly senior counsel at Bristol Myers with 10 additional years at Shire under his belt, Applebaum joins VectivBio from Travena, where he was chief legal & compliance officer and SVP of regulatory affairs.

→ Palo Alto, CA-based Medable has plucked up MaryAnne Rizk as chief strategy officer. Rizk joins the company with experience from her time at Oracle, Medidata, Merck and IQVIA.

Isabel Carmona

Isabel Carmona has joined New Jersey-based Rocket Pharmaceuticals as chief human resources officer and SVP. Carmona held a similar position at Ichnos Sciences and was involved in HR at Shire and Teva. Rocket ran into some issues back in May when the FDA stalled its Phase I trial for a gene therapy candidate to treat Danon disease, and it wasn’t until August that Rocket was able to get the trial back off the ground.

Rani Therapeutics, which is working on a robotic pill and pulled in $69 million worth of new funding in December, has tapped Eric Groen as general counsel. Groen, an Amgen vet, most recently served as the company’s regional general counsel for its commercial business in Canada, Latin America, Middle East and Africa.

Michael Gerard

Michael Gerard departs from his role as associate general counsel at Spark to take on the general counsel position at Cabaletta Bio. Last year, the biotech teamed with Artisan Bio on CAAR-T (chimeric auto-antibody receptor) cell therapy development. Now it hopes that Gerard’s legal and corporate experience, which also includes a stint at Sandoz, will help push more gene therapies through the pipeline.

Andrew Welchman is leaving his post at the Wellcome Trust to hop aboard ieso as the company’s first-ever EVP for impact. Welchman served as head of neuroscience and mental health at the Wellcome Trust and previously served as a professor of neural intelligence at the University of Cambridge.

Scott Plevy

Scott Plevy is making his way over to Protagonist Therapeutics as EVP and therapeutic head, gastroenterology. Plevy brings with him experience from his time as CSO at Senda Biosciences and Synlogic Therapeutics. Plevy has also served as VP, immunology research and development at Janssen.

Ramana Kuchibhatla is taking over the torch as SVP and head of research & development from retiring exec Jay Saoud at Waltham, MA-based Minerva Neurosciences. Kuchibhatla comes to the company from PRA Health Sciences, a subsidiary of Icon, where he was executive director of global drug development. Prior to his role at PRA, Kuchibhatla was with Melior Pharmaceuticals, QED Pharmaceutical Services, Targacept, and GlaxoSmithKline.

→ Oxford-based Enesi Pharma has named Elizabeth Eagling-Vose as SVP, operations. Eagling-Vose hails from Oxford University spinout Vaccitech, where she served as senior director and head of clinical operations. Prior to her role at Vaccitech, Eagling-Vose was project director and director of patient engagement at Covance.

Passage Bio, the Pennsylvania-based gene therapy developer co-founded by Jim Wilson, has appointed Maxine Gowen as its new chairwoman of the board of directors. The CEO of TamuroBio and former Trevena CEO has been a member of the board since February, and was brought on as chairwoman following former chairman Tachi Yamada’s death in August.

Tom Civik

Tom Civik has replaced Versant’s Jerel Davis as chairman of the board at synthetic lethality startup Repare Therapeutics, although Davis will keep his seat on the board. Civik takes this role at the precision oncology player after a year as president and CEO of Five Prime, which Amgen swooped in to buy for $2 billion in April.

→ You think Civik is done in this edition of Peer Review? In the words of ESPN college football icon Lee Corso, “Not so fast, my friend!” Civik is also in a new crop of board members at Pyxis Oncology, which just named Pamela Yanchik Connealy as CFO last week. Joining Civik are ex-Pfizer CMO Freda Lewis-Hall, Darren Cline and Mark Chin.

Steve Altschuler

Steve Altschuler has been elected chairman of the board at Azura Ophthalmics based in Tel Aviv. The co-founder and former chairman at Spark is now managing director of healthcare ventures at Ziff Capital Partners and also chairs the board at upstart Lexeo Therapeutics.

→ Another Spark co-founder, Jean Bennett, has headed to the board of directors at Rockville, MD-based AAV gene therapy biotech Regenxbio. George Migausky, a board member at Immunovant and the ex-CFO of Dyax, is also claiming a board seat at Regenxbio.

→ Chaired by CEO (and Alexion co-founder) Stephen Squinto, Gennao Bio has added Gary Sender to the board of directors. From 2016 until his retirement this year, Sender was CFO at Nabriva Therapeutics and is a board member at Schrödinger, Harmony Biosciences, iBio and Elucida Oncology.

Siddhartha Kadia has earned a seat on the board of directors at “digital cell biology” company Berkeley Lights, a participant in the epic IPO boom of 2020. The ex-president and CEO of EAG Laboratories, Kadia is on the boards of IsoPlexis and NuVasive, among others.

→ Flagship-backed Evelo Biosciences, which joined the Covid-19 hunt last May, has brought on Iain McInnes — a leader in the fields of rheumatoid and psoriatic arthritis research — to its board of directors. McInnes is currently vice principal and head of college to the College of Medical, Veterinary and Life Sciences, Muirhead professor of medicine, and honor consultant rheumatologist at the University of Glasgow in Scotland.

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International

Visualizing The World’s Biggest Real Estate Bubbles In 2021

Visualizing The World’s Biggest Real Estate Bubbles In 2021

Identifying real estate bubbles is a tricky business. After all, as Visual Capitalist’s Nick Routley notes, even though many of us “know a bubble when we see it”, we don’t…

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Visualizing The World's Biggest Real Estate Bubbles In 2021

Identifying real estate bubbles is a tricky business. After all, as Visual Capitalist's Nick Routley notes, even though many of us “know a bubble when we see it”, we don’t have tangible proof of a bubble until it actually bursts.

And by then, it’s too late.

The map above, based on data from the Real Estate Bubble Index by UBS, serves as an early warning system, evaluating 25 global cities and scoring them based on their bubble risk.

Reading the Signs

Bubbles are hard to distinguish in real-time as investors must judge whether a market’s pricing accurately reflects what will happen in the future. Even so, there are some signs to watch out for.

As one example, a decoupling of prices from local incomes and rents is a common red flag. As well, imbalances in the real economy, such as excessive construction activity and lending can signal a bubble in the making.

With this in mind, which global markets are exhibiting the most bubble risk?

The Geography of Real Estate Bubbles

Europe is home to a number of cities that have extreme bubble risk, with Frankfurt topping the list this year. Germany’s financial hub has seen real home prices rise by 10% per year on average since 2016—the highest rate of all cities evaluated.

Two Canadian cities also find themselves in bubble territory: Toronto and Vancouver. In the former, nearly 30% of purchases in 2021 went to buyers with multiple properties, showing that real estate investment is alive and well. Despite efforts to cool down these hot urban markets, Canadian markets have rebounded and continued their march upward. In fact, over the past three decades, residential home prices in Canada grew at the fastest rates in the G7.

Despite civil unrest and unease over new policies, Hong Kong still has the second highest score in this index. Meanwhile, Dubai is listed as “undervalued” and is the only city in the index with a negative score. Residential prices have trended down for the past six years and are now down nearly 40% from 2014 levels.

Note: The Real Estate Bubble Index does not currently include cities in Mainland China.

Trending Ever Upward

Overheated markets are nothing new, though the COVID-19 pandemic has changed the dynamic of real estate markets.

For years, house price appreciation in city centers was all but guaranteed as construction boomed and people were eager to live an urban lifestyle. Remote work options and office downsizing is changing the value equation for many, and as a result, housing prices in non-urban areas increased faster than in cities for the first time since the 1990s.

Even so, these changing priorities haven’t deflated the real estate market in the world’s global cities. Below are growth rates for 2021 so far, and how that compares to the last five years.

Overall, prices have been trending upward almost everywhere. All but four of the cities above—Milan, Paris, New York, and San Francisco—have had positive growth year-on-year.

Even as real estate bubbles continue to grow, there is an element of uncertainty. Debt-to-income ratios continue to rise, and lending standards, which were relaxed during the pandemic, are tightening once again. Add in the societal shifts occurring right now, and predicting the future of these markets becomes more difficult.

In the short term, we may see what UBS calls “the era of urban outperformance” come to an end.

Tyler Durden Sat, 10/23/2021 - 22:00

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Government

The return of text is inevitable

Welcome to Startups Weekly, a fresh human-first take on this week’s startup news and trends. To get this in your inbox, subscribe here. On Equity this week, we discussed the value of the written word. You can imagine that the resulting argument is inheren

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Welcome to Startups Weekly, a fresh human-first take on this week’s startup news and trends. To get this in your inbox, subscribe here.

On Equity this week, we discussed the value of the written word. You can imagine that the resulting argument is inherently biased, considering we are three journalists who have bet our livelihoods on ink; but, I promise, there’s more nuance here beyond how important a lede is.

We recently published a recent deep dive on Automattic, the commercial media company behind the WordPress publishing platform. Founded in 2005, Automattic is one of the few companies that has been able to evolve and expand its way through a graveyard of media sites. Valued at $7.5 billion, it has also convinced investors of the financial promise of its vision.

I was most struck by how text has shaped Automattic’s hiring process: The company offers a purely written interview, where potential new hires never need to reveal their face or voice to anyone through the recruitment funnel. It takes away the inherent bias that comes with a Zoom interview, which, at its core, is just a digital version of a face-to-face interview. Monica Ohara, chief marketing officer of WordPress.com, explained more about her thinking:

“You normally think you’ve got to talk to them; see them on video. With text only, you remove all this bias and focus on the content of what they’re saying, and also test for a style of communication that’s really important in a distributed team.

“In Silicon Valley, everyone is competing for the same people that would add diversity to your pool. Which is great for those people, but what about all the others who don’t have those opportunities because of where they were born or live? For me, I was born in the Philippines and if I hadn’t had the luck to move here, I’d be living a different life.”

Rethinking the value of text, the same way we rethink how many synchronous meetings should be on our calendar, feels like the natural next step for companies figuring out how to scale distributed work. Even in a world seemingly ruled by short-form video, words — and sound — seem to matter in a way that other formats never will.

In the rest of this newsletter, we’ll talk about PayPal’s reported new friend, the Chinese venture capital market and not at all about Facebook’s impending new rebrand. 

PayPal picks Pinterest

Image Credits: TechCrunch

We rushed to Twitter Spaces this week after rumors came out that PayPal may be buying Pinterest for a reported $45 billion. The fintech giant has been on an acquisition spree of sorts, but scooping up a social, photo-sharing platform may signal its hungry to own the content — not just the customer.

Here’s what to know: This feels nostalgic. PayPal potentially joining forces with a more content-focused e-commerce business comes more than a half-decade after it divorced from eBay. But, as Finix Chief Growth Officer Jareau Wadé pointed out, Pinterest is not a shopping destination like eBay — it’s a place where shopping begins for nearly 450 million users.

In a Substack post, Wadé makes the following argument to describe why PayPal may buy Pinterest:

At its core, Pinterest is more like Google than eBay. It’s a search engine that conducts over 5 billion searches per month for fuzzy, hard-to-describe ideas where pictures, rather than words, are often the best place to start. It also has a growing ads business that produced $613 million last quarter, up 125% YoY. With Pinterest, PayPal would be buying the top of the funnel — the awareness and interest stages — for millions of websites on the internet. PayPal would provide Pinterest with the bottom of the funnel, allowing them to see the purchases that result from shopping that began on Pinterest.

Imagine if PayPal could use their core product and the commerce assets they’ve acquired over the past five years to build a deconstructed sales funnel, not just for one website, but for the whole internet.

Put a pin in it:

China is thriving

Flag of China with pile of bitcoin

Image Credits: TechCrunch

Data from CB Insights shows us that, aside from a single outsized 2018 round, China’s third quarter of 2021 was the best three-month period for Chinese startups ever — both in deal value and deal count.

Here’s what to know: We’re surprised, too. On Equity, we discussed how the growth of China’s venture capital market contrasts in sentiment with the region’s government restrictions. It seems that regulatory impact hasn’t stopped all companies from raising, and growing, their businesses there.

Internationally speaking:

Around TC

TC Sessions: SaaS 2021 is next week! My colleagues have put together an amazing show about the sector that seemingly can’t stop attracting millions from investors. We’ll see what stopped eating the world, how hunger is turning into innovation and definitely hit a few SaaSy notes through panels with experts.

Check out the event agenda, buy your pass and come hang with us on October 27.

Across the week

Seen on TechCrunch

A massive ‘stalkerware’ leak puts the phone data of thousands at risk

What do people want in a co-founder? YC has some answers

Station F adds an online program to educate the next generation of entrepreneurs

Trump to launch his own social media platform, calling it TRUTH Social

Seen on TechCrunch+

Mission-driven ventures are growing fast during the pandemic

Dear Sophie: Any suggestions for recruiting international tech talent?

Lessons from founders raising their first round in a bull market

Udemy targets valuation of $4B in major edtech IPO

Talk soon,

N 

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Economics

DAX index forecast ahead of the ECB meeting

European stocks rose on Friday on a surge in technology stocks; still, rising inflation became a concern for investors. European inflation was confirmed at 3.4% YoY in September, and concerns grew that the European Central Bank could change its monetary..

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European stocks rose on Friday on a surge in technology stocks; still, rising inflation became a concern for investors. European inflation was confirmed at 3.4% YoY in September, and concerns grew that the European Central Bank could change its monetary policy.

European Central Bank President Christine Lagarde said that ECB would maintain its accommodative policy for as long as necessary, but this could change soon. Germany’s DAX index has advanced again above 15,500 points, but it is still trading below its recent highs.

Germany’s recovery from the pandemic has been strong so far, and the country will release the preliminary estimates of its October Inflation data and its Q3 GDP next week.

Results from many big companies provided a strong start to third-quarter earnings, and investors’ focus will remain on the third-quarter earnings season because many companies have yet to publish their reports.

Next week, Deutsche Bank, Volkswagen,  Linde, MTU Aero Engines, and Daimler are among the companies scheduled to report quarterly results.

According to the German Economic Ministry, the outlook for the industry remains positive, but the world’s supply chains crisis represents a serious problem for Germany because of its dependence on exports.

The German economy is particularly vulnerable to shortages of key parts and raw materials, and more than 40% of companies reported they had lost sales because of supply problems.

Many big companies scaled back production of some of their most profitable models, while Opel announced last month that it would shut down a factory in Eisenach until the beginning of 2022.

It is important to say that nearly half of Germany’s economic output depends on exports of cars, machine tools, and other goods, while the semiconductor shortage throttling global car production suggests more pain for the automotive industry.

Despite this, the German Economic Ministry reported that it expected this effect to be temporary while the German central bank expects that the German economy could grow 3.7% this year. The German Economic Ministry added:

Healthy order books give us reason to expect strong recovery impulses from industry, and thanks to that strong overall economic growth

The European Central Bank recently reported that exports from Eurozone would have been at least 7% higher in the first half of the year if not for supply bottlenecks. The European Central Bank will announce its decision on monetary policy next Thursday, which could significantly influence on DAX index in the near term.

15,000 points represent support

Data source: tradingview.com

DAX index has advanced again above 15,500 points, and if the price jumps above 15,800 points, the next target could be at 16,000 points.

On the other side, if the price falls below strong support that stands at 15,000 points, it would be a strong “sell” signal, and the next target could be around 14,500 points.

Summary

The European Central Bank will announce its decision on monetary policy next Thursday, which could significantly influence on DAX index in the near term. DAX index has advanced again above 15,500 points, and if the price jumps above 15,800 points, the next target could be at 16,000 points.

The post DAX index forecast ahead of the ECB meeting appeared first on Invezz.

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