Wall Street Breakfast: Vaccine Optimism Raises Markets

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The vaccine front

Modern (NASDAQ: MRNA) jumped 17% after the closing bell on Tuesday after the company released data showing that its potential coronavirus vaccine would produce a “robust” immune response in 45 patients in its first human trial. The Oxford Covid-19 vaccine supported by AstraZeneca (NYSE: AZN) – whose actions are up 4% premarketing – generates the type of antibody and T-cell (killer) response that researchers hope to see, added Robert Peston, saying the first data should be released soon in The Lancet. Vaccine stakeholders are also on the move this morning, including BioNTech (NASDAQ: BNTX) + 4,9% and Pfizer (NYSE: PFE) + 1,3%.

Apple wins tax battle with EU

Apple (NASDAQ: AAPL) does not have to pay 13 billion euros in Irish tax, according to the EU Tribunal, which found that the tech giant had not “obtained a selective economic advantage and, by extension, aid of State ”. The decision, which can only be appealed “on points of law” before the highest court in the EU, is a setback for the European Commission, which ruled in August 2016 that Apple’s practice of channeling sales via units in low-tax member states violated the EU bloc. state aid rules. This case is particularly important due to the crackdown on EU taxation in recent years and could affect the way the bloc deals with similar issues given the recent trend towards taxes on digital services.

More bank income

As lenders enter the profit season with their quarterly reports, there appear to be two banking aspects that evolve very differently during the coronavirus pandemic. JP Morgan (NYSE: JPM) posted record sales of $ 33.8 billion, with a 54% increase in investment banking fees compared to last year, while Wells Fargo (NYSE: WFC) lost $ 2.4 billion in Q2 and Citigroup (NYSE: C) disappointed after pointing out the swelling reserve for credit losses. As for profits for today, more banks are expected to release results, including Goldman Sachs (NYSE: GS), US Bancorp (NYSE: USB), BNY Mellon (NYSE: BK) et PNC Financial Services (NYSE: PNC).

End Hong Kong preferential treatment

“No special privileges, no special economic treatment and no exports of sensitive technologies,” President Trump said at a press conference after the signing of the Hong Kong Autonomy Act, which penalizes banks linked to Chinese interference in Hong Kong. “China will provide the necessary responses to protect its legitimate interests and impose sanctions on the American personnel and entities concerned,” said the country’s foreign ministry, without giving further details. Hong Kong was the source of the largest US bilateral trade surplus last year, at $ 26.1 billion, and more than 1,300 US companies operate there, including almost all of the major US finance companies.

Increased tensions

Hong Kong is not the only area where a cold war between China and the West appears to be in preparation. The UK has reversed course on Huawei, banning Chinese OEM equipment from any part of its national 5G network and ordering everything removed by 2027. The US is also raising the alarm on TikTok (Owned by China), with President Trump and Secretary of State Mike Pompeo have publicly stated that the government “is considering potentially banning” the shortened video application.

Loose borders, but search for lost cuts

An OPEC + technical committee that met online Tuesday detailed plans for countries like Iraq, Nigeria and Kazakhstan to make an additional 842,000 barrels per day of compensatory cuts in August and September, according to the delegates. The proposal will be discussed today by a ministerial follow-up committee chaired by Saudi Arabia and Russia and comes after nations further missed their production targets in June. OPEC + is expected to announce after the meeting that overall reductions of 9.6 million barrels per day – about 10% of global supplies – will be eased in August as global fuel demand recovers from the COVID pandemic -19.

Earn money on parking lots

Coronavirus pandemic leaves commercial property owners struggling to find new sources of income, with Brookfield Property Partners (NASDAQ: BPY) signing of an agreement with the entertainment company Kilburn Live to transform the car parks of some of its shopping centers into cinemas with drive-ins and virtual concerts. “People are desperate to leave the house,” said marketing director Michelle Snyder, adding that Brookfield has set up food kiosks around the entrances so people can order from the mall’s food court. “If we can’t rent the mall, we’re going to rent another space… We actually have tons of ideas for our parking lots. “



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