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Top Chinese Tutoring Company Fires 60,000 Workers Amid Brutal Regulatory Crackdown

Top Chinese Tutoring Company Fires 60,000 Workers Amid Brutal Regulatory Crackdown

In July, China issued new rules on after-school tutoring companies for students in compulsory nine years of education. The rules said companies and institutio

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Top Chinese Tutoring Company Fires 60,000 Workers Amid Brutal Regulatory Crackdown

In July, China issued new rules on after-school tutoring companies for students in compulsory nine years of education. The rules said companies and institutions that teach the school curriculum must go non-profit and cannot pursue IPOs, or take foreign capital. 

The unprecedented regulatory overhaul crashed shares in China's big tutoring companies. By the end of 2021, New Oriental Education & Technology Group Inc., the largest after-school tutoring in the country, was worth about 89% less than a year earlier. Its current market capitalization is approximately $3 billion. 

New revelations over the weekend from the founder and chairman of the Chinese tutoring giant, Yu Minhong, show overhaul cost amounted to a whopping 20 billion yuan, or about $3.1 billion, last year. 

Minhong took to his personal social media account on WeChat Saturday to disclose how the crackdown resulted in the company dismissing 60,000 workers in 2021 after revenues plunged 80%. 

"In 2021, New Oriental encountered too many unforeseen events from factors such as policy, the pandemic, and international relations," he wrote. "Much of our business remains in a state of uncertainty."

Despite the layoffs, the company still employes 50,000 teachers, Minhong said in another post on Monday. He said there had been requests for the company to shutter all operations. "But that is an impossible thing. [I] cannot accept that emotionally, and it is not practical in reality," he added.

The purpose of the rule change by Beijing is to reduce financial burdens on families who send their children to after-school tutoring. 

New Oriental announced at the end of 2021 that it would disband tutoring for students from kindergarten through grade nine. In doing so, it would have a tremendous impact on future revenue. 

Minhong did offer an outlook for the company and said it would invest more money into tutoring university students and teaching the Chinese language abroad.

A senior industry analyst for Bloomberg Intelligence, Catherine Lim, said New Oriental could experience losses through 2024.

So buying the dip in Chinese education stocks is not advised. Maybe the folks over at Wall Street Bets will try and catch the falling knife. 

Tyler Durden Mon, 01/10/2022 - 13:23

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Government

Pfizer Inc (NYSE: PFE) To Acquire Global Blood Therapeutics For $5 Billion

According to sources familiar with the matter, the Wall Street Journal reported that Pfizer Inc (NYSE: PFE) was in advanced discussions to acquire pharmaceutical…

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According to sources familiar with the matter, the Wall Street Journal reported that Pfizer Inc (NYSE: PFE) was in advanced discussions to acquire pharmaceutical company Global Blood Therapeutics (NASDAQ: GBT) for $5 billion.

Pfizer, too, acquired Global Blood Therapeutics 

Pfizer wants to close a deal soon, but there are still other interested parties, according to the article.

Global Blood Therapeutics, which manufactures Oxbryta, the blood disorder medication, saw its shares jump 44%  on Friday afternoon to a two-year high. As of Thursday’s closing, the company’s market cap was $3.12 billion.

A spokesman for Global Blood stated the company does not “comment on market rumors or speculation,” while Pfizer declined to respond on the matter.

With plenty of cash left over after selling its COVID-19 vaccine, New York-based Pfizer is searching for deals that may generate billions of dollars annual sales by 2030.

Its $11.6 billion acquisition of migraine medication manufacturer Biohaven Pharmaceutical Holding (NASDAQ: BHVN) in May was the most recent in a series of purchases that also included Trillium Therapeutics and Arena Pharmaceuticals in recent years.

Oxbryta received approval last year for sickle cell disease management 

In 2019, the US government approved Global Blood’s Oxbryta to manage sickle cell disease in individuals aged 12 and over. The oral medication was approved in December 2021 to treat the illness in younger children. The drug’s sales increased by almost 50% to $194.7 million in 2021.

After a gloomy start to the calendar year, when a lack of significant purchases and clinical-stage treatment failures lowered investor morale and restricted funding, the biotech dealmaking pace has recently picked up again.

Also, Amgen Inc (NASDAQ: AMGN) also decided to purchase ChemoCentryx Inc on Thursday for $3.7 billion to obtain access to a possible breakthrough medication for inflammatory illnesses. AstraZeneca’s $39 billion acquisition of Alexion Pharmaceuticals in 2020 has put the realm of immune diseases in the limelight. The deal, which was announced before trading opened, will also give the corporation control of at least two investigational immune disorders medicines.

Please make sure to read and completely understand our disclaimer at https://www.wallstreetpr.com/disclaimer. While reading this article one must assume that we may be compensated for posting this content on our website.

The post Pfizer Inc (NYSE: PFE) To Acquire Global Blood Therapeutics For $5 Billion appeared first on Wall Street PR.

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Science

AEMD: Positive Results in a Range of Conditions, Including COVID-19 & Monkey Pox

By M. Marin
NASDAQ:AEMD
READ THE FULL AEMD RESEARCH REPORT
Expanding the Potential Indications for Hemopurifier Treatment
Aethlon Medical’s (NASDAQ: AEMD)…

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By M. Marin

NASDAQ:AEMD

READ THE FULL AEMD RESEARCH REPORT

Expanding the Potential Indications for Hemopurifier Treatment

Aethlon Medical's (NASDAQ: AEMD) clinical trials are moving forward and expanding, as AEMD continues to demonstrate the effectiveness of its lead product, the Aethlon Hemopurifier®, in a broad range of viruses and conditions in single patient emergency use cases and in in vitro analysis, including COVID-19 and various variants and Monkey Pox, among others. The Aethlon Hemopurifier® is being studied in a severe COVID-19 clinical trial under the company's open IDE (Investigational Device Exemption) for life-threatening viral infections.

The safety and feasibility of the Hemopurifier is being evaluated in an Early Feasibility Study (EFS) that will enroll up to 40 COVID-19 ICU patients. The first patient was enrolled in this study in June 2022 and has completed the Hemopurifier treatment. AEMD has nine fully activated hospitals that are actively screening patients for the trial.

In addition to this study, the Hemopurifier has demonstrated positive results in two severely ill patients under individual emergency use and in in vitro analysis. The Hemopurifier has produced positive results in binding seven variants of the SARS-CoV-2 (severe acute respiratory syndrome coronavirus 2) virus in vitro, as discussed in an article1  that AEMD's CEO Dr. Charles J. Fisher Jr. and the company's Chief Medical Officer Dr. Steven LaRosa contributed to.

The company is also conducting a study of the impact of the ...

Full story available on Benzinga.com

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Economics

Where Are Interest Rates Headed? Is The Fed Correct Or The Eurodollar Curve?

Where Are Interest Rates Headed? Is The Fed Correct Or The Eurodollar Curve?

Authored by Mike Shedlock via MishTalk.com,

The Eurodollar curve…

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Where Are Interest Rates Headed? Is The Fed Correct Or The Eurodollar Curve?

Authored by Mike Shedlock via MishTalk.com,

The Eurodollar curve implies four quarter-point cuts are on the way starting in 2023. The Fed believes otherwise. Let's discuss stock market implications.

Data from CME and Fed via Wall Street Journal.

Eurodollar Curve

The eurodollar curve has nothing to do with euros or dollars. Rather it is an interest rate curve and one of the world's most widely traded futures.

After peaking at about 3.9% this year, eurodollar betters believe the Fed will then cut rates all the way down to 2.8%. 

Five Not-Quite-Impossible Things the Market Believes

Wall Street Journal Contributor James Macintosh discussed the above chart in Five Not-Quite-Impossible Things the Market Believes

  1. Inflation is transitory. 

  2. The Fed realizes this in time.

  3. The jobs market cools enough to slow wage rises. 

  4. But not so much it means falling household spending.

  5. So consumer spending rises in real terms. 

In reference to the led chart, Macintosh says "The first assumption is the hardest to believe."

I disagree. The hardest thing to believe is the overall goldilocks scenario and that the current rally makes any sense at all. 

Inflation may easily come down if the Fed tightens too much too fast causing a severe recession. What would that do to corporate profits? 

But assume otherwise, that inflation does not come down more. What would that do to corporate profits? 

While any of the first three points may easily be correct, the combination of all five being correct and that stocks will rise in a goldilocks scenario is what I find hard to believe.

Is the Market Forward Looking?

Goldilocks proponents will tell you that the market is forward looking. 

The market isn't forward looking and never was. It is a coincident indicator of current sentiment, wildly wrong at major turns.

If the market was forward looking, what precisely was it looking forward to at the November 2007 peak with recession starting the next month? 

What was it looking forward to at the 1929 peak, the 1933 bottom, the 2009 bottom or any other top or bottom?

The Fed Will Hike Until It Breaks Something

I believe the eurodollar curve is more likely to be correct than the Fed. When has the Fed gotten much of anything correct?

The eurodollar view has two ways to win. The first is the Fed actually does tame inflation to the degree that it wants.

That's possible in a severe enough recession. And the global picture is easily weak enough for that to happen.

The second way the eurodollar curve might be correct is if the Fed breaks the credit market. 

The Fed would immediately reverse course, regardless of inflation, should that happen. 

Neither a credit event nor strong recession would be good for the stock market.

The least likely thing is that the Fed achieves a goldilocks soft landing. Yet, assume that happens. 

Macintosh says, and I agree, "The bull case that stocks and corporate bonds are pricing requires the combination of low joblessness and wage rises to allow spending to rise faster than inflation even after pandemic savings run out. But not so much faster that it hits capacity constraints and accelerates inflation."

The problem with goldilocks is stocks are priced so much beyond perfection that they may decline anyway. 

Globally Speaking 

  1. China Does Surprise Rate Cut to Help Its Economy, But It Won't Work

  2. German Costs to Ship by Barge are up Twenty Times and May Soon Be Impossible

  3. UK Average Electricity Cost Will Soar to $5,370 Per Year By 2023

  4. US Industries Are Buckling Under Pressure of Surging Electricity Costs

Good luck with goldilocks, especially with the Fed still hiking. 

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Tyler Durden Wed, 08/17/2022 - 09:45

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