Monthly Archive: September 2020

Why healthcare stocks may be poised for a breakout year post-election

Ever since 2019, the healthcare sector has been white-knuckling and preparing itself for what may be a volatile and uncertain election year for stocks. But according to UBS, 2020 is shaping up to look a whole lot like 2009 for the sector—which could actually help put some investors’ minds at ease.

Historically, “the market reaction has been largely to sell much of the healthcare sector, lowering valuations until clarity arrives after the election,” UBS’s Americas healthcare analyst Eric Potoker wrote in a note Tuesday. “The market’s current treatment of healthcare stocks falls into that familiar pattern.”

Potoker argues the “most relevant” comparison for how the healthcare sector is shaping up today is the 2008-9 election, when, in early 2009, President Obama “made health reform a legislative priority, and a dark cloud enveloped the sector.” But instead of massive, painful reforms to the sector that hurt healthcare and insurance stocks, he … Read More

Senate polarized over next coronavirus aid package By Reuters

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© Reuters. Democratic National Convention held in Milwaukee

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WASHINGTON (Reuters) – U.S. Senate leaders on Wednesday held onto their radically different positions on what is needed to address the continuing fallout from the coronavirus pandemic, one day before a vote on a modest Republican bill that appeared destined for defeat.

The Republican bill, unveiled on Tuesday, would provide around $300 billion in new aid for schools, businesses, medical supplies and other coronavirus-related costs. It was drastically scaled down from a $1 trillion plan Republicans offered in July and far from the more than $3 trillion Democrats have been pushing.

Democrats are expected to block the Republican bill from advancing, arguing that there is nothing bipartisan about it and that it falls far short of the nation’s needs during a pandemic that has killed nearly 190,000 people in the United States and brought massive job losses.

“Do you want

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Investors send markets higher even as COVID concerns grow

This is the web version of the Bull Sheet, Fortune’s no-BS daily newsletter on the markets. Sign up to receive it in your inbox here.

Good morning, Bull Sheeters. Tuesday’s bounce-back in the U.S. is proving infectious, lifting global markets and U.S. futures today. That’s despite worrying COVID case numbers and the renewed tightening of business restrictions to battle the pandemic. Meanwhile, Nike shares just keep doing it. The sportswear giant scored a mega beat yesterday.

Let’s see where investors are putting their money.

Markets update

Asia

  • The major Asia indexes are mostly clinging to their gains in afternoon trading, with Shanghai up 0.2%.
  • In a surprise announcement, China’s Xi Jinping pledged to go carbon neutral before 2060. If the world’s biggest polluter can go go green it would be a “game changer” for the planet, one former diplomat says.
  • Several indicators show China could be on
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making voting part of the story By Reuters


By Jill Serjeant

LOS ANGELES (Reuters) – From “black-ish” to a “West Wing” reunion, television shows are using the power of entertainment in new ways to encourage more Americans to participate in the Nov. 3 election.

Thirty years after “Rock the Vote,” a liberal nonprofit group, fused pop culture and politics, TV makers are seeking to make dry topics like registering to vote, filling out the census and finding polling places feel vital and fun by writing them into the plots of popular shows.

In “Black Ink Crew,” a reality show about a tattoo parlor in Harlem, the Black owner registers to vote for the first time and designs a tattoo to mark the occasion. The Cuban-American family comedy “One Day at a Time” ran an episode about a census worker who comes to their home.

“We’re seeing a reshaping of how Americans are encouraged to think about civics, not

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Feds’ ‘stablecoin’ letter may boost crypto ambitions of Facebook, Square

The federal agency that oversees banks issued a letter on Monday that gives financial institutions a green light to hold reserves to support so-called stablecoins—digital currencies similar to Bitcoin that are backed on a one-to-one basis by real world money.

While stablecoins have existed for years, their popularity has soared in recent months both in cryptocurrency circles, and among businesses that have embraced them as an efficient way to settle international transactions.

In its letter, the Office of the Comptroller of the Currency (OCC) stated that U.S. banks can lawfully hold the fiat currency reserves of companies that issue stablecoins, provided those firms comply with federal banking laws.

According to Jeremy Allaire, the CEO of cryptocurrency firm Circle—which has issued a stablecoin called USDC alongside crypto giant Coinbase—the letter will provide legal cover for tech and finance companies that are experimenting with stablecoins.

Allaire pointed in particular to … Read More

ECB should err in doing too much rather than too little: Panetta By Reuters

© Reuters. Mario Draghi receives the Order of Merit of the Federal Republic of Germany in Berlin

FRANKFURT (Reuters) – The European Central Bank should err on the side of providing too much stimulus rather than too little, given the grave risks facing the euro zone economy, ECB board member Fabio Panetta said on Tuesday.

“Faced with such a sizeable downward skew, there is a strong case for our reaction function to be asymmetric, as the risks of a policy overreaction are much smaller than the risks of policy being too slow or too shy to react and the worst-case scenarios materialising,” Panetta said in a speech.

Panetta also singled out the recent appreciation of the euro as an “undesirable” factor weighing on inflation.

“The sustained appreciation in the external value of the euro has brought about an undesirable tightening of financial conditions and has offset some of the monetary

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