Good Afternoon. It's Monday, January 24th, and you’re listening to Ausum’s Afternoon News Briefing, where we round up the top latest articles that everyone is talking about.
The Washington Post covers a new study investigating boosters and how quickly protection will fade. According to a new study, which has not yet been peer-reviewed, a third vaccine dosage restores that line of defense against omicron and should continue to provide a layer of protection for years. While antibodies against omicron did diminish four months following a booster shot of the Pfizer-BioNTech vaccine, they remained high enough that, based on comparisons with other types, they should continue to give some protection. The benefit of a third immunization reduces hospitalization risk from 92 percent to 83 percent. According to Pfizer and BioNTech, they intend to produce 4 billion doses of their vaccine this year, regardless of whether they continue to produce the original shot or update it to combat omicron.
There have been significant changes in the US's involvement in the tensions between Russia and Ukraine since Friday.
According to The Hill, the Pentagon is preparing to send up to 8,500 US troops to Europe. The decision comes as Russia escalates its offensive against Ukraine. According to Pentagon spokesman John Kirby, Defense Secretary Lloyd Austin "has placed a range of units in the United States on heightened deployment readiness, which boosts our ability to deliver forces if NATO should activate the [NATO Response Force] or if other crises arise." The NATO Response Force, or NRF, is a multinational force of around 40,000 land, air, naval, and special operations forces that the alliance may deploy on short notice as needed.
Axios clarifies by stating that although no decisions have been made to deploy US soldiers, the increased alert level will allow the military to quickly shore up NATO's eastern flank if Russia invades Ukraine. Russia has exhibited "no signals of de-escalation," according to the Pentagon, and has continued to concentrate soldiers on Ukraine's borders. NATO countries such as the United Kingdom, Denmark, Spain, and the Netherlands have sent extra ships and fighter planes to eastern Europe to dissuade Russia. And, Emmanuel Macron has expressed his government’s readiness to send French troops to Romania under Nato command, adds The Guardian.
According to the BBC, the reason for the possible deployment and readiness is because new intelligence surfaced. Boris Johnson issued a warning that read, "the intelligence is very clear that there are 60 Russian battle groups on the borders of Ukraine, the plan for a lightning war that could take out Kyiv is one that everybody can see." The United Kingdom and the United States instructed embassy personnel to leave Ukraine.
Lastly, this afternoon, Biden will hold a secure video conversation with European leaders, according to the White House, as part of the administration's consultation and cooperation with European partners in response to Russia's military buildup explains CNN.
Reuters explains that Since NATO has warned to put forces on standby, global equities markets fell drastically and dampened demand for risky assets like bitcoin while strengthening the dollar and oil. The Euro STOXX 600 dropped 2.1 percent. Indexes in London, Paris, and Frankfurt were all down between 1% and 2%. Tech equities plunged 4% to their lowest level since July. Bitcoin fell over 9% on Monday, reaching its lowest level in six months. The MSCI world equity index, which measures stocks in 50 nations, lost 0.5%. Oil prices increased again, having risen for five weeks to a seven-year high on forecasts that demand would remain strong and supplies would be constrained.
The Wall Street Journal continues, The S&P 500 plummeted 1.6 percent today, marking the third consecutive and largest weekly decrease since March 2020. The Nasdaq Composite fell 2.1 percent, while the Dow Jones fell 1.3 percent.
So what's driving yields higher and stock prices lowe r? The assumption that the Fed would raise interest rates many times in 2022 to rein in inflation, which is running at its fastest pace in 40 years. The New York Times continues that there are concerns the Federal Reserve will aggressively withdraw economic stimulus to combat inflation, worries of armed war between Russia and Ukraine, and a reconsideration of high values after a long bull market have all contributed to the quick turnaround.
On the flip side, Forbes reported that Frank Panayotou, a managing director at UBS Private Wealth Management, said the dip in stock prices this year “seems overdone and represents a buying opportunity for long-term investors.” He points out stocks have historically performed well in the months leading up to the Fed’s first rate hike, but he cautions markets will be more volatile than usual. Forbes continues by saying that this week's events will undoubtedly put the market to the test. The Fed is expected to provide an update on when interest rates may be raised. On Tuesday, major technology companies such as Apple, Microsoft, and Tesla will announce fourth-quarter earnings.
That’s all for today. Be sure to download the Ausum app to get the full Ausum experience. Catch you next time for the Ausum News Briefing every weekday, morning, and afternoon.