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MacKenzie Sigalos of CNBC.com brings you today’s top business news headlines. On today’s show, CNBC’s Kate Rooney explains why the debt crisis of Chinese real estate developer Evergrande Group could be a problem for Tether. In addition, Johnson & Johnson finds that a second injection of its Covid vaccine is 94% effective against the infection.
The global economy could feel the effects of the Evergrande crisis in China. Here’s what investors need to know
A liquidity crunch at a major Chinese real estate developer has rocked global markets, and strategists say it could spill over into the global economy.
But they also say the problem will likely be contained by the Chinese government before it causes damage to the banking system, and should not lead to wider global financial contagion.
The crucial question for investors is how and when Beijing’s leaders are handling the situation and whether they will initiate a restructuring of the China Evergrande group, as many market professionals expect.
Investors fear Beijing will let the company go bankrupt, hurting shareholders and domestic bondholders. Evergrande faces a debt payment on its offshore bonds on Thursday, after saying last week it was facing unprecedented hardship.
“Everyone expected the government to have some sort of resolution, given that Evergrande is a systemically important company,” said Jimmy Chang, chief investment officer at Rockefeller Global Family Office. “It has $ 300 billion in outstanding debt. There is a contagion problem if China Evergrande is not resolved. I think it will eventually have some deep-pocketed state enterprises to take care of.”
J&J says Covid booster is 94% effective in US when given two months after first dose
Johnson & Johnson said on Tuesday its Covid-19 booster was 94% effective when given two months after the first dose in the United States. He also said the booster increases antibody levels four to six times compared to a single shot.
A booster dose of J&J given six months after the first shot appears to be potentially even more protective against Covid, the company said, generating twelve times higher antibodies four weeks after the booster, regardless of age.
When given as a booster, the vaccine remained well tolerated, with side effects generally consistent with those seen after the initial dose, according to J&J.
“We have now generated evidence that a booster further increases protection against COVID-19 and is expected to significantly extend the duration of protection,” J&J Scientific Director Dr Paul Stoffels said in a statement.
Covid officially deadliest pandemic in US as US deaths exceed 1918 flu estimates
Covid-19 is officially the deadliest epidemic in recent American history, exceeding estimates of deaths in the United States from the 1918 influenza pandemic, according to data compiled by Johns Hopkins University.
Reported deaths in the United States from Covid surpassed 675,000 on Monday and are increasing on average by more than 1,900 deaths per day, according to data from Johns Hopkins. The country is currently experiencing a new wave of new infections, fueled by the rapidly spreading delta variant.
The 1918 flu – which occurred in three waves, occurring in the spring of 1918, in the fall of 1918; and the winter and spring of 1919 – killed an estimated 675,000 Americans, according to the Centers for the Disease Control and Prevention. It was until now considered the deadliest pandemic in recent American history.
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