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Pfizer (PFE) and its partner BioNTech (BNTX) will seek clearance from U.S. regulators in the coming weeks to distribute a COVID-19 vaccine booster that would be updated to better protect against the Delta variant. Clinical trials are expected to begin in August as the highly transmissible strain is already the dominant form of the disease in the United States. At the same time, federal health officials have signaled they would take a cautious approach to potential booster shots, which they said aren't currently necessary.
"People who are fully vaccinated are protected from severe disease and death, including from the variants currently circulating in the country such as Delta," the FDA and CDC announced Thursday evening. "Virtually all COVID-19 hospitalizations and deaths are among those who are unvaccinated."
Statement from Pfizer: "As seen in real world evidence released from the Israel Ministry of Health, vaccine efficacy has declined six months post-vaccination, at the same time that the Delta variant is becoming the dominant variant in the country," the company wrote in a press release. "These findings are consistent with an ongoing analysis from the companies' Phase 3 study. That is why we have said, and we continue to believe that it is likely, based on the totality of the data we have to date, that a third dose may be needed within 6 to 12 months after full vaccination."
Some statistics: Pfizer's is leading the world in COVID vaccine distribution. As of July 1, the drugmaker had shipped more than 860M doses around the world. In the U.S., over 184M doses have been administered so far, topping the 135M doses of Moderna's (MRNA) jab that has also been used in the country. (64 comments)
Japan's prime minister, Yoshihide Suga, has declared a state of emergency in Tokyo as coronavirus cases rise across the country. Vaccination rates have been slow, with only about a quarter of Japan's population having received one shot, while only 15% are fully vaccinated against COVID-19. The declaration puts restrictions in place from July 12 through Aug. 22, meaning the Olympic Games - set to run from July 23 until Aug. 8 - won't feature spectators.
Bigger picture: Opposition was already deepening in Japan. A mid-May poll by the Asahi newspaper found that 83% of people wanted the Olympics to be canceled or postponed, up from 69% in April, while the business community also came out against the event. SoftBank (OTCPK:SFTBF) CEO Masayoshi Son saw a situation where athletes and officials trigger a fresh wave of infections, while Rakuten (OTCPK:RKUNF) boss Hiroshi Mikitani called the Olympics a "suicide mission."
Canceling spectators will also be a headache for broadcaster NBC (CMCSA), which planned to air more than 7,000 hours of content from the Tokyo Olympics across its networks and streaming platforms. While the company is exploring other options like having athletes and coaches mic'd up, incorporating artificial crowd sound or having cameras in the homes of the families of athletes, many caution that the games won't be the same. "The (alarm) bells are likely on full blast at NBCUniversal," wrote LightShed analyst Rich Greenfield. "No fans had clear negative impact on sports ratings during pandemic over past 15 months."
Economics: While international spectators were already prohibited from entering Japan to attend the Olympics, the ban on domestic viewers will bring more pain. The Games' budget has jumped to an estimated $15.4B, according to Reuters, and ticket revenue of about $815M will be non-existent. It could be worse... The Nomura Research Institute forecast a full cancellation would mean a lost stimulus of ¥1.8T, or 0.33% of Japan's GDP. (9 comments)
In Europe, at midday, London +0.7%. Paris +1.7%. Frankfurt +0.9%.
Futures at 6:20, Dow +0.6%. S&P +0.3%. Nasdaq -0.1%. Crude +1% at $73.63. Gold +0.2% at $1804. Bitcoin +0.7% at $32872.
Ten-year Treasury Yield +5 bps to 1.34%
Kansas City Southern (NYSE:KSU) falls on news of railroad executive order.
Strong denim sales... Levi Strauss (NYSE:LEVI) crushes estimates, raises forecast.
Amazon (NASDAQ:AMZN) to add Universal (NASDAQ:CMCSA) films to Prime Video.
Morgan Stanley (NYSE:MS) reports data stolen in breach at vendor's server.
China may be considering Boeing (NYSE:BA) 737 MAX test flights - Bloomberg.
Airlines remain under pressure as recovery worries resurface.
DiDi Global (NYSE:DIDI) slumps again as China crackdown grows.
Policy review... ECB adopts symmetric 2% inflation target.
Stripe (STRIP) takes first step in becoming a publicly traded stock - Reuters


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