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Tension ahead of US inflation data

Stocks are treading water early on Tuesday as we await key US inflation data ahead of the open on Wall Street. This isn’t the most exciting week as far as major event risk is concerned but the proximity to the Fed meeting next week combined with a few…

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Stocks are treading water early on Tuesday as we await key US inflation data ahead of the open on Wall Street.

This isn’t the most exciting week as far as major event risk is concerned but the proximity to the Fed meeting next week combined with a few select US data releases is creating some tension in the markets. We may see a lot more of this fence-sitting behaviour over the next week as traders await more taper clues from the central bank.

Policymakers have appeared keen to stress that a taper this year remains their preference but there has increasingly been a disconnect between what they’re saying and what the data is doing. If we continue to see softness in the data, will the FOMC still persevere with tapering this year or could they be persuaded to hold off?

That’s the question investors are craving an answer to. For now, they’ll have to settle for more data to see if it piles on the pressure or provides a release. Today it’s CPI inflation and its significance has only grown in the absence of Fed speak, with the blackout period now being upon us. An overshoot could cause a wobble in the markets as it will give greater cause for debate on the nature of the inflation data, transitory or something more worrying. The opposite could keep investors on board for now.

Sterling rallies on encouraging UK labour market data

The pound has been given a small boost by the UK employment data on Tuesday. The numbers were largely in line with expectations but with the unemployment rate continuing to fall and the number of payroll employees back at pre-pandemic levels, there’s plenty to be optimistic about.

Of course, we can’t ignore the favourable impact of the furlough scheme on the data. With it coming to a close at the end of this month, the true impact of the pandemic on UK employment will be much better understood, with a rise in unemployment and underemployment inevitable.

Still, the data is encouraging, albeit not so much that it puts any real pressure on the Bank of England to raise interest rates. The central bank can continue to be patient on that front, at least for now with the end of the year bringing the threat of another surge in Covid cases and possible restrictions.

Bitcoin higher as support pours in once more

Bitcoin is back in positive territory on Tuesday after once again finding strong support around USD 44,000 a day earlier. It was some day for the crypto space after a fake story emerged of Walmart accepting litecoin which naturally triggered a big move higher before the story was found to be false.

Cryptos are an obvious breeding ground for pump and dump schemes as prices experience extreme fluctuations in normal trading conditions. Throw in a fake headline and we have seen what can happen. Especially a headline that appears more legitimate as a result of the actions of other major companies in regards to cryptos in recent months, Tesla and Paypal for example.

From a technical perspective, little has changed on the bitcoin front. A significant break of USD 44,000 could see a sizeable correction follow, one that has been building for a number of weeks.

For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/

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International

John Lewis relies too heavily on its heritage – here’s what it could do instead

The company has returned to profit by making cuts, but there are things it could do to reinvent itself.

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Road to recovery? Jevanto Productions/Shutterstock

In a tricky economic climate, the British department store John Lewis has managed to deliver some good news. The retail partnership – owned by its 80,000 employees – posted pre-tax profits of £56 million after a £234 million loss the year before.

The positive announcement was somewhat tarnished by the fact that those employees (known as partners) would not receive a bonus for the second year in a row. There were also hints of job cuts.

But what more could this giant of UK retail, which also owns Waitrose supermarkets, do to endure its survival? Does its increasing reliance on grocery sales mean its own brand has become less valuable?

For over 160 years on the high street, John Lewis has worked hard on that brand. Its slogan (scrapped in 2022) about being “never knowingly undersold” was well known, it remains a trusted supplier of an extensive range of household hoods, rates highly for customer service, and runs Christmas TV adverts which have became a media event in themselves.

In doing all of those things, John Lewis seemed to be in a much better place than its rivals. BHS (founded in 1928) and Debenhams (1778) have disappeared from the high street. House of Fraser (1849) was taken over and has a much-reduced physical presence.

John Lewis’s nearest rival, Marks & Spencer (1884), is now doing well, but only after it underwent a fairly brutal restructuring which involved cutting thousands of jobs during the pandemic, closing 67 stores, and slashing its operations in France.

So John Lewis’s “brand heritage” – its history, tradition and pedigree – has worked pretty well for a pretty long time. But its recent return to profit was the combined effort of reinvesting and streamlining, according to some reports.

Also known as “trimming the fat” in the business world, the retailer’s streamlining endeavours consisted of cutting more than 1,500 jobs, and closing underperforming stores, such as the branch in Sheffield, which had served residents for nearly 80 years and was much mourned, including by my own mother-in-law.

It has also been reported that more job cuts are imminent, with up to 11,000 jobs to go in the next five years.

And perhaps these measures highlight some of the harsh realities of running a department store in the always-open and effortless world of online shopping. Maybe employees (even those considered partners, as under John Lewis’s employee-ownership model) have become expendable.

Maybe physical stores, where consumers go to explore and seek advice, have become expendable. Maybe all traditions are expendable when they are not commercially viable.

People first

Yet the world of retail is filled with examples of heritage brands reinventing themselves to stay relevant, buoyant and competitive.

John Lewis will need to do the same if it wants to retain its legacy on the British high street. And it could do worse than taking a leaf out of Waitrose’s playbook.

For the company’s return to profit was largely due to the buoyant sales generated by Waitrose supermarkets, which increased by 4%. The department store business meanwhile, suffered a 2% fall.

Part of Waitrose’s success comes from providing a sense of indulgence and enjoyment – including healthy food – through carefully curated and often locally sourced products. It works closely with local farmers, supports regional suppliers (an approach that has also contributed to M&S’s success), and reinvests in stores and product offers.

Essentially, as part of UK’s grocery sector, Waitrose extended its partnership ethos to include people and groups beyond the shop walls – to build a “local retail ecosystem” that promotes and leverages a community spirit around their stores.

M&S shop front.
Appealing to appetites. Simon Vayro/Shutterstock

John Lewis department stores could try and do something similar. They could focus more on products that help customers live healthier and more active lives, and which are relevant to their interests. They could sell products created by local small businesses, and make a determined approach to be a supportive presence in the regions they serve.

Research suggests that heritage brands benefit from having a moral standing – when they show they care about the people they make money from, the local communities they operate in, and the people they employ.

So perhaps John Lewis should make moral values a part of its evolving heritage. It needs to show it cares not just for the people who work for the company directly, but also the people on whom it relies for success – the customers – and people it can build new relationships with. All of them could prove critical to its future success.

Kokho Jason Sit is affiliated with the Chartered Institute of Marketing.

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ARPA-H appoints Etta Pisano to lead its Advancing Clinical Trials Readiness Initiative

The Advanced Research Projects Agency for Health (ARPA-H) has appointed Etta D. Pisano, MD, FACR, senior portfolio lead, to build the agency’s clinical…

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The Advanced Research Projects Agency for Health (ARPA-H) has appointed Etta D. Pisano, MD, FACR, senior portfolio lead, to build the agency’s clinical trial portfolio and lead the ARPA-H Advancing Clinical Trials Readiness Initiative under ARPA-H Resilient Systems Mission Office Director Jennifer Roberts.

Credit: N/A

The Advanced Research Projects Agency for Health (ARPA-H) has appointed Etta D. Pisano, MD, FACR, senior portfolio lead, to build the agency’s clinical trial portfolio and lead the ARPA-H Advancing Clinical Trials Readiness Initiative under ARPA-H Resilient Systems Mission Office Director Jennifer Roberts.

The first radiologist to be appointed to such a role, Dr. Pisano is an internationally recognized expert in women’s health, breast cancer research, and the use of artificial intelligence in medical imaging applications.

“I am honored to be working for ARPA-H to identify and promote research that can improve healthcare quality, efficacy and delivery, and to improve patient care and access to clinical trials for all Americans, including women, rural residents, and the underserved,” said Dr. Pisano.

Dr. Pisano will continue to serve as study chair of the large-scale Tomosynthesis Mammographic Imaging Screening Trial (TMIST) for the ECOG-ACRIN Cancer Research Group (ECOG-ACRIN). TMIST is led by ECOG-ACRIN with funding from the National Cancer Institute, part of the National Institutes of Health. She will also continue to serve as the American College of Radiology® (ACR®) Chief Research Officer (CRO). Dr. Pisano previously served as the principal investigator of the landmark Digital Mammographic Imaging Screening Trial (DMIST).

The TMIST breast cancer screening study is among the fastest growing National Cancer Institute (NCI) trials of the COVID-19 era. Under Dr. Pisano’s leadership, TMIST is assembling one of the most diverse cancer screening trial populations ever. Approximately 21% of TMIST U.S. participants are Black—more than double the average rate for Black participation in NCI-funded clinical trials (9%).

With ARPA-H, Dr. Pisano will work to build underserved and minority participation in clinical trials—including identifying and onboarding rural facilities and those outside of large academic medical centers—such as emerging retail healthcare sites. 

These duties are also very consistent with the missions of ECOG-ACRIN and ACR, which include promoting the exploration and identification of next-generation technologies that can benefit patients and providers.

“This is a great opportunity for Etta, and I’m excited about the impact she will make on our approach to clinical trials,” said Mitchell D. Schnall, MD, PhD, group co-chair of ECOG-ACRIN.

About ECOG-ACRIN

The ECOG-ACRIN Cancer Research Group (ECOG-ACRIN) is an expansive membership-based scientific organization that designs and conducts cancer research involving adults who have or are at risk of developing cancer. The Group comprises nearly 1400 member institutions and 21,000 research professionals in the United States and around the world. ECOG-ACRIN is known for advancing precision medicine and biomarker research through its leadership of major national clinical trials integrating cutting-edge genomic approaches. Member researchers and advocates collaborate across more than 40 scientific committees to design studies spanning the cancer care spectrum, from early detection to management of advanced disease. ECOG-ACRIN is funded primarily by the National Cancer Institute, part of the National Institutes of Health. Visit ecog-acrin.org, and follow us on X @eaonc, Facebook, LinkedIn, and Instagram.

Media Contact: Diane Dragaud, Director of Communications, communications@ecog-acrin.org.


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Spread & Containment

Bacteria subtype linked to growth in up to 50% of human colorectal cancers, Fred Hutch researchers report

Researchers at Fred Hutchinson Cancer Center have found that a specific subtype of a microbe commonly found in the mouth is able to travel to the gut and…

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Researchers at Fred Hutchinson Cancer Center have found that a specific subtype of a microbe commonly found in the mouth is able to travel to the gut and grow within colorectal cancer tumors. This microbe is also a culprit for driving cancer progression and leads to poorer patient outcomes after cancer treatment.

Credit: Fred Hutchinson Cancer Center

Researchers at Fred Hutchinson Cancer Center have found that a specific subtype of a microbe commonly found in the mouth is able to travel to the gut and grow within colorectal cancer tumors. This microbe is also a culprit for driving cancer progression and leads to poorer patient outcomes after cancer treatment.

The findings, published March 20 in the journal Nature, could help improve therapeutic approaches and early screening methods for colorectal cancer, which is the second most common cause of cancer deaths in adults in the U.S. according to the American Cancer Society.

Examining colorectal cancer tumors removed from 200 patients, the Fred Hutch team measured levels of Fusobacterium nucleatum, a bacterium known to infect tumors. In about 50% of the cases, they found that only a specific subtype of the bacterium was elevated in the tumor tissue compared to healthy tissue.

The researchers also found this microbe in higher numbers within stool samples of colorectal cancer patients compared with stool samples from healthy people.

“We’ve consistently seen that patients with colorectal tumors containing Fusobacterium nucleatum have poor survival and poorer prognosis compared with patients without the microbe,” explained Susan Bullman, Ph.D., Fred Hutch cancer microbiome researcher and co-corresponding study author. “Now we’re finding that a specific subtype of this microbe is responsible for tumor growth. It suggests therapeutics and screening that target this subgroup within the microbiota would help people who are at a higher risk for more aggressive colorectal cancer.”

In the study, Bullman and co-corresponding author Christopher D. Johnston, Ph.D., Fred Hutch molecular microbiologist, along with the study’s first author Martha Zepeda-Rivera, Ph.D., a Washington Research Foundation Fellow and Staff Scientist in the Johnston Lab, wanted to discover how the microbe moves from its typical environment of the mouth to a distant site in the lower gut and how it contributes to cancer growth.

First they found a surprise that could be important for future treatments. The predominant group of Fusobacterium nucleatum in colorectal cancer tumors, thought to be a single subspecies, is actually composed of two distinct lineages known as “clades.”

“This discovery was similar to stumbling upon the Rosetta Stone in terms of genetics,” Johnston explained. “We have bacterial strains that are so phylogenetically close that we thought of them as the same thing, but now we see an enormous difference between their relative abundance in tumors versus the oral cavity.”

By separating out the genetic differences between these clades, the researchers found that the tumor-infiltrating Fna C2 type had acquired distinct genetic traits suggesting it could travel from the mouth through the stomach, withstand stomach acid and then grow in the lower gastrointestinal tract. The analysis revealed 195 genetic differences between the clades.

Then, comparing tumor tissue with healthy tissue from patients with colorectal cancer, the researchers found that only the subtype Fna C2 is significantly enriched in colorectal tumor tissue and is responsible for colorectal cancer growth.

Further molecular analyses of two patient cohorts, including over 200 colorectal tumors, revealed the presence of this Fna C2 lineage in approximately 50% of cases.

The researchers also found in hundreds of stool samples from people with and without colorectal cancer that Fna C2 levels were consistently higher in colorectal cancer.

“We  have pinpointed the exact bacterial lineage that is associated with colorectal cancer, and that knowledge is critical for developing effective preventive and treatment methods,” Johnston said.

He and Bullman believe their study presents significant opportunities for developing microbial cellular therapies, which use modified versions of bacterial strains to deliver treatments directly into tumors.

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Fred Hutchinson Cancer Center unites individualized care and advanced research to provide the latest cancer treatment options while accelerating discoveries that prevent, treat and cure cancer and infectious diseases worldwide.

Based in Seattle, Fred Hutch is an independent, nonprofit organization and the only National Cancer Institute-designated cancer center in Washington. We have earned a global reputation for our track record of discoveries in cancer, infectious disease and basic research, including important advances in bone marrow transplantation, immunotherapy, HIV/AIDS prevention and COVID-19 vaccines. Fred Hutch operates eight clinical care sites that provide medical oncology, infusion, radiation, proton therapy and related services. Fred Hutch also serves as UW Medicine’s cancer program.


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