Connect with us

Spread & Containment

US job market – ‘Substantial further progress’ not in sight

At the current rate, we expect it to take until late 2022 for the US labour market to return to pre-pandemic conditions, disappointing both the administration and the Federal Reserve whose policies have to sought to overcome the massive job losses from…

Published

on

At the current rate, we expect it to take until late 2022 for the US labour market to return to pre-pandemic conditions, disappointing both the administration and the Federal Reserve whose policies have to sought to overcome the massive job losses from the pandemic more quickly.

  • High unemployment benefits are probably holding back job gains in the lowest paid sectors, but as those unemployment payments expire, job creation should pick up.
  • In higher-paying parts of the economy, the failure of job creation to be faster is a mystery.
  • The Fed has indicated it intends to start talking about tapering quantitative easing (QE) at its June policy meeting. With the jobs market not making ‘substantial further progress’ [1], the actual unwinding of support measures looks unlikely to start before year-end at the earliest.

The US created 559 000 jobs in May, which in the broad sweep of history is an impressive rate. However, last year’s lockdown-related collapse left employment about 10 million jobs below trend. Neither the Fed nor the administration could be content with it now looking like it will take until late 2022 for the labour market to return to its pre-pandemic state.

A bounce, but there is way to go

The job gains so far this year have been heavily concentrated in the sectors hardest hit by Covid (see exhibit 1). However, even in sectors that were less affected by the collapse in spending on consumer services, social distancing requirements and other public health restrictions, overall employment remains clearly below pre-Covid levels.

With indicators of business confidence close to, or at record highs, and job openings widespread, it seems hard to believe that a lack of aggregate demand is the reason why employment is not recovering faster.

Is it about more than generous benefits?

Currently, unemployed workers are receiving extremely generous unemployment benefits (an extra USD 300/week). This will fade away over the summer and be gone completely by early September.

This is probably temporarily discouraging people from taking jobs in the lowest paid sectors, consistent with media reports of employers having to pay signing bonuses and the like.

Indeed, hourly pay in the leisure and retail sectors is now around 1-3% higher than the trend it was pre-Covid (see exhibit 2), and the people working in those sectors are working longer hours despite the collapse in employment in those areas of the economy.

Jobless benefits explain only part of what is going on. Why do firms in manufacturing, business services and other higher paying parts of the economy still have significantly fewer staff than before the pandemic? One possible explanation is that under the surface, some sectors are growing and others are shrinking and while that is going on, the rate of new hiring is limited.

En route to a ‘jobless’ recovery?

It is also possible that just as after the dot com crash, we will see a ‘jobless’ recovery in many parts of the private sector as companies adapt the new technologies developed during Covid and find that their staff are more productive and so the company can do more with less.

So far, the evidence is limited, but if this were to be the outcome, there would be a strongly disinflationary force into the medium term once we get past all the supply disruptions that are dominating the market narrative today.

[1] “The (US) economy is a long way from our (employment and inflation) goals, and it is likely to take some time for substantial further progress to be achieved”, Fed chair Powell said on 28 April 2021, adding that “it is not time yet” for the Fed to start talking about tapering its trillion dollar pro-growth and pro-inflation programme of asset purchases. Also read Taper talk at the Fed – Are we there yet?


Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice.

The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns.

Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).

Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.

Writen by Mark Allan. The post US job market – ‘Substantial further progress’ not in sight appeared first on Investors' Corner - The official blog of BNP Paribas Asset Management, the sustainable investor for a changing world.

Read More

Continue Reading

Spread & Containment

AstraZeneca antibody cocktail fails to prevent Covid-19 symptoms in large trial

AstraZeneca said a late-stage trial failed to provide evidence that the company’s Covid-19 antibody therapy protected people who had contact with an infected person from the disease, a small setback in its efforts to find alternatives to vaccines.

Published

on

Astra antibody cocktail fails to prevent COVID-19 symptoms in large trial

(Reuters; )

June 15 (Reuters) – AstraZeneca (AZN.L) said on Tuesday a late-stage trial failed to provide evidence that its COVID-19 antibody therapy protected people who had contact with an infected person from the disease, a small setback in its efforts to find alternatives to vaccines.

The study assessed whether the therapy, a cocktail of two types of antibodies, could prevent adults who had been exposed to the virus in the past eight days from developing COVID-19 symptoms.

The therapy, AZD7442, was 33% effective in reducing the risk of people developing symptoms compared with a placebo, but that result was not statistically significant — meaning it might have been due to chance and not the therapy.

The Phase III study, which has not been peer reviewed, included 1,121 participants in the United Kingdom and the United States. The vast majority, though not all, were free of the virus at the start of the trial.

Results for a subset of participants who were not infected to begin with was more encouraging but the primary analysis rested on results from all participants.

FILE PHOTO: A computer image created by Nexu Science Communication together with Trinity College in Dublin, shows a model structurally representative of a betacoronavirus which is the type of virus linked to COVID-19, better known as the coronavirus linked to the Wuhan outbreak, shared with Reuters on February 18, 2020. NEXU Science Communication/via REUTERS

“While this trial did not meet the primary endpoint against symptomatic illness, we are encouraged by the protection seen in the PCR negative participants following treatment with AZD7442,” AstraZeneca Executive Vice President Mene Pangalos said in a statement.

The company is banking on further studies to revive the product’s fortunes. Five more trials are ongoing, testing the antibody cocktail as treatment or in prevention.

The next one will likely be from a larger trial testing the product in people with a weakened immune system due to cancer or an organ transplant, who may not benefit from a vaccine.

TARGETED ALTERNATIVES

AZD7442 belongs to a class of drugs called monoclonal antibodies which mimic natural antibodies produced by the body to fight off infections.

Similar therapies developed by rivals Regeneron (REGN.O) and Eli Lilly (LLY.N) have been approved by U.S. regulators for treating unhospitalised COVID patients.

European regulators have also authorised Regeneron’s therapy and are reviewing those developed by partners GlaxoSmithKline (GSK.L) and Vir Biotechnology (VIR.O) as well as by Lilly and Celltrion (068270.KS).

Regeneron is also seeking U.S. authorisation for its therapy as a preventative treatment.

But the AstraZeneca results are a small blow for the drug industry as it tries to find more targeted alternatives to COVID-19 inoculations, particularly for people who may not be able to get vaccinated or those who may have an inadequate response to inoculations.

The Anglo-Swedish drugmaker, which has faced a rollercoaster of challenges with the rollout of its COVID-19 vaccine, is also developing new treatments and repurposing existing drugs to fight the virus.

AstraZeneca also said on Tuesday it was in talks with the U.S. government on “next steps” regarding a $205 million deal to supply up to 500,000 doses of AZD7442. Swiss manufacturer Lonza (LONN.S) was contracted to produce AZD7442.

Shares in the company were largely unchanged on the London Stock Exchange.

The full results will be submitted for publication in a peer-reviewed medical journal, the company said.

Reporting by Vishwadha Chander in Bengaluru; Editing by Shounak Dasgupta

Our Standards: The Thomson Reuters Trust Principles.

 

Reuters source:

https://www.reuters.com/business/healthcare-pharmaceuticals/astrazeneca-says-its-antibody-treatment-failed-in-preventing-covid-19-exposed-2021-06-15

 

Read More

Continue Reading

Government

Former FDA Head Takes on Exec Role at Flagship’s Preemptive Health Initiative

Stephen Hahn, the Commissioner of the U.S. Food and Drug Administration under former President Donald Trump, took on a new role as chief medical officer of a new health security initiative launched by Flagship Pioneering, a life sciences venture firm…

Published

on

Former FDA Head Takes on Exec Role at Flagship’s Preemptive Health Initiative

 

Stephen Hahn, the Commissioner of the U.S. Food and Drug Administration (FDA) under former President Donald Trump, has taken on a new role as chief medical officer of a new health security initiative launched by Flagship Pioneering, a life sciences venture firm that incubates and curates biopharma companies.

First announced Monday, Flagship’s Preemptive Medicine and Health Security initiative aimed at developing products that can help people before they get sick. This division will focus on infectious disease threats and pursue bold treatments for existing diseases, including cancer, obesity, and neurodegeneration. 

In a brief statement, Hahn, who served as commissioner from December 2019 until January 2021, said the importance of investing in innovation and preemptive medications has never been more apparent. 

“In my career I have been a doctor and a researcher foremost and it is an honor to join Flagship Pioneering in its efforts to prioritize innovation, particularly in its Preemptive Medicine and Health Security Initiative. The more we can embrace a “what if …” approach the better we can support and protect the health and well-being of people here in the U.S. and around the world,” Hahn said in a statement. 

During his time at the FDA, Hahn was at the forefront of the government’s effort to battle the COVID-19 pandemic. His office oversaw the regulatory authorization of antivirals, antibody therapeutics and vaccines, as well as diagnostics and other tools to battle the novel coronavirus. 

Kevin Dietsch-Pool/Getty Images

Hahn bore the brunt of verbal barbs aimed at the FDA by the former president for not rushing to authorize a vaccine for COVID-19 ahead of the November 2020 election. The second vaccine authorized by the FDA for COVID-19 was developed by Moderna, a Flagship company. 

Prior to his confirmation as FDA Commissioner, Hahn, a well-respected oncologist, served as chief medical executive of the vaunted The University of Texas MD Anderson Cancer Center. Hahn was named deputy president and chief operating officer in 2017. In that role, he was responsible for the day-to-day operations of the cancer center, which includes managing more than 21,000 employees and a $5.2 billion operating budget. He was promoted to that position two years after joining MD Anderson as division head, department chair and professor of Radiation Oncology. Prior to MD Anderson, Hahn served as head of the radiation oncology department at the University of Pennsylvania’s Perelman School of Medicine.

Flagship Founder and Chief Executive Officer Noubar Afeyan said the COVID-19 pandemic that shut down economies and caused the deaths of more than 3.8 million people across the world was an important reminder that health security is a top global priority. In addition, the ongoing pandemic brings into “stark focus” the importance of preemptive medications. 

Hahn, who helmed the FDA for three years and before that served as chief medical executive at The University of Texas MD Anderson Cancer Center, has extensive experience overseeing clinical and administrative programs. Afeyan said the new division would benefit from Hahn’s experience as FDA Commissioner and help steer the Preemptive Medicine and Health Security initiative as it explores Flagship’s “growing number of explorations and companies in this emerging field.”

It is not unusual for former FDA heads to take prominent roles with companies. For example, former FDA Commissioner Scott Gottlieb, Trump’s first FDA Commissioner, took a position on the Pfizer Board of Directors weeks after departing his government role. He has also taken positions on other boards since then, including Aetion, FasterCures and Illumina.

 

BioSpace source:

https://www.biospace.com/article/former-fda-head-stephen-hahn-takes-cmo-role-at-flagship-pioneering-preemptive-health-initiative-

 

Read More

Continue Reading

Spread & Containment

Facebook CEO Mark Zuckerberg hosts first test of Live Audio Rooms in US

In April, Facebook announced a slew of new audio products, including its Clubhouse clone, called Live Audio Rooms, which will be available across both Facebook and Messenger. Since May, Facebook has been publicly testing the audio rooms feature in Taiwan.

Published

on

In April, Facebook announced a slew of new audio products, including its Clubhouse clone, called Live Audio Rooms, which will be available across both Facebook and Messenger. Since May, Facebook has been publicly testing the audio rooms feature in Taiwan with public figures, but today the company hosted its first public test of Live Audio Rooms in the U.S. The event itself was hosted by Facebook CEO Mark Zuckerberg, who chatted with fellow execs and creators.

Joining Zuckerberg were Facebook VP and Head of Facebook Reality Labs Andrew “Boz” Bosworth, Head of Facebook App Fidji Simo and three Facebook Gaming creators, including StoneMountain64, QueenEliminator and TheFierceDivaQueen.

Image Credits: Facebook screenshot

The creators used their time in the Audio Room to talk more about their gaming journeys on Facebook, what kind of games they were streaming and other gaming-related matters. Zuckerberg also briefly teased new gaming features, including a new type of post, coming soon, called “Looking for Players.” This post type will help creators find others in the community to play games with while they’re streaming.

In addition, badges that are earned from livestreams will now carry over to fan groups, Zuckerberg said, adding that it was a highly requested feature by creators and fans alike.

Fan groups will also now become available to all partnered creators on Facebook Gaming, starting today, and will roll out to others in the coming weeks.

Image Credits: Facebook screenshot

The experience of using the Live Audio Room is very much like what you’d expect on another platform, like Clubhouse or Twitter Spaces. The event’s hosts appear in rounded profile icons at the top of the screen, while the listeners appear in the bottom half of the screen, as smaller icons. In between is a section that includes people followed by the speakers.

The active speaker is indicated with a glowing ring in shades of Facebook blue, purple and pink. If verified, a blue check appears next to their name.

Listeners can “Like” or otherwise react to the content as it streams live using the “Thumbs Up” button at the bottom of the screen. And they can choose to share the Audio Room either in a Facebook post, in a Group, with a friend directly or through other apps.

Image Credits: Facebook screenshot

A toggle switch under the room’s three-dot “more” menu lets you turn on or off auto-generated captions, for accessibility. From here, you can also report users or any issues or bugs you encountered.

The Live Audio Room today did not offer any option for raising your hand or joining the speakers on stage — it was more of a “few-to-many” broadcast experience.

Before today, TechCrunch received a couple of tips from users who reported seeing the Audio Rooms option appear for them in the Facebook app. However, the company told us it had only tested Live Audio Rooms in the U.S. with employees.

During the test period, Live Audio Rooms are only available on iOS and Android, we’re told.

Zuckerberg also used today’s event to talk more broadly about Facebook’s plans for the creator economy going forward.

“I think a good vision for the future is one where a lot more people get to do creative work and work that they enjoy, and fewer people have to do work that they just find a chore. And, in order to do that, a lot of what we need to do is basically build out a bunch of these different monetization tools,” explained Zuckerberg. “Not all creators are going to have the same business model. So having the ability to basically use a lot of different tools like Fiji [Simo] was talking about — for some people it might be, Stars or ad revenue share or subscriptions or selling things or different kinds of things like that — that will be important and part of making this all add up.”

He noted also that the tools Facebook is building go beyond gaming, saying that Facebook intends to support journalists, writers and others — likely a reference to the company’s upcoming Substack clone, Bulletin, expected to launch later this month.

Zuckerberg additionally spoke about how the company won’t immediately take a cut of the revenue generated from creators’ content.

“Having this period where we’re not taking a cut and more people can get into these kinds of roles, I think is going to be a good thing to do — especially given how hard hit a lot of parts of the economy have been with COVID and the pandemic,” he said.

More realistically, of course, Facebook’s decision to not take an immediate cut of some creator revenue is a decision it’s making in order to help attract more creators to its service, in the face of so much competition across the industry.

Clubhouse, for example, is currently wooing creators with a payments feature, where creators keep 100% of their revenue. And it’s funding some creators’ shows. Twitter, meanwhile, is tying its audio product Spaces to its broader set of creator tools, which now include newsletters, tips and, soon, a subscription platform dubbed Super Follow.

Zuckerberg didn’t say during today’s event when Live Audio Rooms would be available to the public, but said the experience would roll out to “a lot more people soon.”

Read More

Continue Reading

Trending