Global Economy Sees Mixed Signals Amid Ongoing COVID-19 Pandemic

Strategic Insights -

The global economy continued to send mixed signals as the ongoing COVID-19 pandemic persists, with varying outcomes in different regions. Key takeaways from top news stories this week include Johnson & Johnson's Covid vaccine showing strong immune response against the Delta variant, while Merck & Co's Keytruda failed to demonstrate an overall survival benefit in a phase 3 study, leading to its US accelerated approval indication for third-line gastric cancer being withdrawn.

Key Takeaways:

  • Johnson & Johnson's single-shot Covid vaccine elicited neutralising antibody activity against the Delta variant at a higher level than against the Beta variant in South Africa, demonstrating its ability to protect against multiple variants of concern.
  • Merck & Co's Keytruda failed to meet its post-marketing requirement of demonstrating an overall survival benefit in a phase 3 study for third-line gastric cancer, leading to the US FDA's decision to withdraw the accelerated approval indication.
  • Chevron Australia and the Gorgon joint venture will proceed with the USD4 billion Jansz-Io compression project in Western Australia, involving the construction of a 27,000-tonne normally unattended floating field control station and a 135 kilometres submarine power cable linked to Barrow Island.
  • Saudi Arabian Oil Co has appointed Ziad Al-Murshed as acting service line head of Finance, Strategy & Development, replacing Khalid Al-Dabbagh who helped lead Aramco through its 2019 initial public offering.
  • Ryanair reported a rebound in passenger traffic, flying 5.3 million passengers in June, a significant increase from 1.8 million in May and 400,000 in June 2020.
  • Krispy Kreme returned to life as a publicly-listed company in New York, with shares surging 24% to close near USD21.00.

Statistics:

  • 130 countries have agreed on a global tax reform ensuring multinationals pay their fair share, with the OECD predicting the new tax regime will add USD150 billion to government coffers globally.
  • The International Monetary Fund predicts the US economic recovery will hit 7% this year, with a 2022 GDP forecast of 4.9%.
  • Industrial producer price inflation rose in May both in the euro area and in the EU, with the highest increases recorded in Ireland, Denmark, and Finland.
  • India became the third country to pass 400,000 Covid-19 deaths, with total cases almost 30.5 million.
  • Japan's prime minister warned that the Tokyo Olympics could be held behind closed doors due to rising virus cases.

Sources:

  • Alliance News Limited
  • Organization for Economic Co-operation and Development
  • International Monetary Fund
  • Eurostat
  • Johnson & Johnson
  • Merck & Co
  • Chevron Australia
  • Saudi Arabian Oil Co
  • Ryanair
  • Krispy Kreme
  • Bloomberg