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    The future of the F-35 and the Air Force fight fleet

    The F-35A was designed to revolutionize fighter procurement for the Air Force.It was going to take the missions of several aircraft and do it all. The maintenance was going to be cheaper and easier thanks to cutting-edge computer software. The list of planes it was going to replace was long. But the operating costs for the aircraft, which is around $36,000 per hour, are still around $10,000 more expensive than older fighters in the Air Force inventory.”The biggest cost challenge that we face in the airplane is the life-cycle sustainment cost of the jet,” said Brig. Gen. David Abba, director of the Air Force’s F-35 integration office. “What I can tell you is the Air Force is laser-focused on that.”Although the F-35 remains an incredibly capable aircraft, the Air Force appears to have decided to diversify its fleet. The F-15EX — an upgraded version of the F-15 that first flew in the 1970s — is on the acquisition block, and the first F-15EX was delivered to the Air Force this month. Recent comments by Air Force Chief of Staff Gen. Charles Brown Jr. also pointed to the possibility of procuring a light fighter to be a replacement for the aging F-16. “The idea that because there are some affordability challenges that the USA is somehow going to just bail on this program is mad,” said Justin Bronk, an air power and technology research fellow at the Royal United Services Institute. “Of course, they have to consider the future fighter mix. It makes sense because the sums don’t add up, and they haven’t added up for a long time.”Watch the video above to find out more about the most expensive weapons system in history. More

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    What investors have learned one year since the stock market bottomed

    Traders work on the floor of the New York Stock Exchange.NYSEIt’s the anniversary of the big drop: What’s changed? Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen are testifying Tuesday before the House Financial Services Committee on the state of the economic recovery from the Covid pandemic.Investors are expecting Powell to stick to the script — reiterate rates near zero for the next two years. But Powell and Yellen are also expected to be asked what, if anything, they learned about managing the biggest crisis since the Great Recession in 2007-2009.The historic bottom one year agoThe S&P 500 bottomed on March 23, 2020. From the mid-February 2020 high to that bottom, the S&P dropped 34%, its biggest drop since the 50% decline in the Great Recession.The big difference between now and then is the breathtaking speed of the recovery. In the earlier crisis, the S&P did not return to its old high until February 2013, nearly six years later. In the case of the Covid drop, the S&P returned to its February 2020 high six months later and is now up 75% from the bottom.The Great Recession, of course, was a different kind of disaster than Covid, but the speed of this recovery was nonetheless breathtaking.What accounted for the breathtaking recovery? Most traders cite the lessons the Fed learned from the earlier crisis. “The Fed had a  playbook from the last time around [the financial crisis], they accelerated it and sped everything up,” said Peter Cecchini of AlphaOmega Advisors. “They went really big “Cecchini noted that the Fed instituted a massive monetary stimulus program, cutting rates almost to zero, and unveiled plans for massive asset purchases. “The biggest difference was the primary and secondary lending facilities that intervened in the corporate bond market,” he said. “Even though they did not buy that much debt, the Fed said, ‘Corporate America, you can count on us. We will not let the corporate bond market implode.’ And that had a huge effect on confidence.”Chris Murphy, co-head of derivative strategy at Susquehanna, also credited science, which is not usually a factor in stock rallies: “The other good news is that this felt like a temporary thing, depending on getting a vaccine, whereas no one was sure how long the financial crisis was going to last.”The Fed’s largess shows up in stocksWhile all 11 sectors of the S&P are well off that March 2020 low, the biggest movers are those sectors that were the most direct beneficiaries of the Fed and congressional largess: small caps, commodities and cyclicals like transports and industrials, what has come to be known as the “reflation trade.”Major sectors since the bottom: reflation rules (since March 23, 2020)Russell 2000 up 126%Transports     up 108%Banks            up 107%Materials          up 93%Energy            up 91%Industrials       up 90% While technology has also done well (up 85%), consumer sectors have greatly lagged the reflation trade because those stocks benefit less from the reopening of the economy.Defensive sectors lag the recovery (from 3/23/20 low)Health care         up 47%Consumer staples up 32%Utilities                   up 30%What investors are really invested in: Rapid changeStill, looking at returns since the bottom shows an even bigger trade than reflation. Call it the “rapid change trade.”Investments in clean energy, online retail, lithium/battery, 3D printing, cybersecurity, have all exploded in the last year.The “rapid change” trade? (from 3/23/20 low) Clean energy (PBW)   up 324%Online retail (IBUY)     up 303%ARK Innovation (ARKK)  up 231%Lithium/battery (LIT)        up 217%3D printing (PRNT)          up 166%”Investors are betting that Covid is speeding up a tech transformation of the home and the workplace … so investing in change is definitely a theme,” said Murphy.Still, it seems a bit strange. You have the old school energy, brick and mortar, and industrials all rallying, and at the same time you have the high-tech, more speculative “rapid change trade.”Can you have both? “Over time, one will prevail over the other, but right now, circumstances are such that there is room for both,” said Steve Sosnick of Interactive Brokers. “Think of all the new investors that have come into the market in the last year. The new money has gone into that thematic tech. That’s what happened in the late 1990s: a whole new crop of investors came in and were interested in tech. The old-school investors aren’t comfortable chasing that trend.”Still, betting on everything speeding up also seems a safe bet for Jim Besaw, chief investment officer at GenTrust, who is one of many observers noting that the pace of change, the pace of trading, the pace of everything seems to have sped up in the last year: “Everything we previously believed would take months to happen now was going to happen in a matter of days/hours.”Yellen and PowellWhat will Powell and Yellen say about the lessons learned from managing the Covid crisis?While Sosnick expects a wide discussion about inequality and the K-shaped recovery, he also expects a vociferous defense of going big with stimulus: “The Republicans I think will argue going big was right in the beginning, but did we really need to ‘go big’ now, with this latest stimulus, when we are more likely closer to the end than the beginning?”Cecchini, who is writing a book about the fiscal and monetary policy response to the pandemic, hopes Congress will push back on the increasingly aggressive behavior of the Fed during these crises. “There are situations where a coordinated fiscal and monetary response is warranted,” he said. “But if you are going to have these kinds of coordinated efforts in the future, there needs to be a more explicit involvement of Congress. There should be more oversight of the Fed when they resort to these kinds of big, broad programs.” More

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    Stocks making the biggest moves in the premarket: AstraZeneca, ViacomCBS, SunRun & more

    Take a look at some of the biggest movers in the premarket:AstraZeneca (AZN) – The drugmaker’s stock fell 2.9% in premarket trading after an independent monitoring board told U.S. health officials that the company may have given incomplete efficacy data from its Covid-19 vaccine trial. The Data Safety Monitoring Board said it wanted AstraZeneca to work with it to review the data to ensure it is accurate and up to date.ViacomCBS (VIAC) – ViacomCBS will raise $3 billion from stock offerings, following a recent runup in its stock price. The media company will sell $2 billion in class B common shares and $1 billion in mandatory convertible preferred shares. Media companies with streaming services – like the company’s recently rebranded Paramount+ — have been ramping up spending on new content. Viacom fell 5.3% in premarket action.SunRun (RUN) – The solar power company’s stock jumped 2.5% in premarket trading after Goldman Sachs upgraded it to “buy” from “neutral,” pointing to accelerating growth and valuation. SunRun gained 3.2% Monday after being rated “positive” in new coverage at Susquehanna Financial.Microsoft (MSFT) – Microsoft is in talks to buy videogame chat community Discord for more than $10 billion, according to people familiar with the matter who spoke to Bloomberg. One person familiar with the matter said Discord is more likely to go public than to sell itself, however.Boeing (BA) – Boeing struck a deal for a $5.28 billion two-year revolving credit agreement, higher than the $4 billion that the jet maker was originally said to be seeking. Boeing shares fell 1% in the premarket.Baidu (BIDU) – Baidu made its debut on the Hong Kong stock exchange following a secondary listing that raised $3.1 billion for the China-based internet company. Baidu’s U.S. shares sank 2.3% in premarket trading.Bilibili (BILI) – Bilibili is set to raise $2.6 billion following the pricing of a Hong Kong secondary listing, according to people with direct knowledge of the matter who spoke to Reuters. The price for the online video site operator’s stock was said to be 2.6% below its Monday close in U.S. trading.Tencent Music Entertainment (TME) – Tencent Music reported quarterly results that came in slightly below Wall Street forecasts. The music streaming service also announced a multi-year licensing agreement with Warner Music and the formation of a joint venture music label with Warner in China. Tencent shares dropped 3.2% in premarket trading.Peloton (PTON) – Peloton recently bought three companies in a flurry of acquisitions, according to a Bloomberg report. The fitness equipment maker’s acquisitions involved artificial intelligence, wearables and hardware.Apollo Global (APO) – The private-equity firm’s shares rose 1.4% in premarket action after Citi upgraded the stock to “buy” from “neutral.” Citi said Apollo’s recent corporate governance moves should reduce headline and other risk factors.Discovery (DISCA) – Discovery lost 3% in premarket trading after UBS downgraded the media company’s stock to “sell” from “neutral,” noting the valuation after the stock nearly quadrupled over the past 12 months. UBS said the risk/reward profile is more challenging at current levels.Pfizer (PFE) – CEO Albert Bourla told The Wall Street Journal that the drugmaker would expand its mRNA vaccine business to target other viruses and pathogens beyond the coronavirus. Bourla said the company gained a decade’s worth of experience in working with Germany’s BioNTech (BNTX) on the Covid-19 vaccine and is now ready to proceed on its own. More

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    Trustpilot surges in stock market debut as tech companies flock to London

    A security guard stands outside the London Stock Exchange building on December 29, 2020.Tolga Akmen | AFP via Getty ImagesLONDON — Online reviews site Trustpilot surged in its stock market debut Tuesday, becoming the latest tech firm to list in London in what is shaping up to be a busy year for the city.Shares of the Danish firm climbed as much as 16% from the offer price of £2.65 ($3.65) Tuesday, which gave the company a valuation of £1.1 billion. The IPO raised about £473 million in total, with existing investors selling 161 million shares and the company itself issuing 17.6 million shares.Trustpilot’s listing comes a day after Deliveroo set a price range for its own hotly-anticipated float, which would give the British food delivery unicorn a valuation of £8.8 billion at the upper range. The Amazon-backed company’s first day of trading is expected to take place on Apr. 7, according to its IPO prospectus.It’s likely to be Britain’s biggest IPO since Glencore went public nearly a decade ago, according to Reuters. Moonpig, the online card retailer, went public at a £1.2 billion valuation last month.Meanwhile, London-based online pensions platform PensionBee on Monday announced plans to list in the U.K. capital. Money transfer app TransferWise and cybersecurity firm Darktrace are also expected to go public in London later this year.Listings reviewThe flurry of tech listings will provide a much-needed boost to London’s financial markets, amid fears that the city could lose ground to other European financial hubs like Amsterdam in the wake of Brexit.It comes as Prime Minister Boris Johnson’s government is preparing an overhaul of London’s listing rules. A review commissioned by the U.K. Treasury urged London to allow firms to list dual-class shares on the premium segment of the stock market.It appeared to be enough to give Deliveroo the confidence to list in the U.K., as the company announced its London IPO plans a day after the report’s recommendations were published. Deliveroo opted for a dual-class share structure which will gives its CEO, Will Shu, extra voting rights for three years.”Everyone was talking about Amsterdam until this listing change that was put forward,” Sten Saar, CEO of digital insurance provider Zego, told CNBC. “Everyone put the brakes on Amsterdam to look at the London opportunity.””Several founders of companies who are potentially thinking of listing in Europe are now reconsidering those things for London,” Saar, a former Deliveroo executive, added.SPACsThe City of London also wants to become a destination for SPACs, or special purpose acquisition companies, which have become commonplace on Wall Street.Also known as blank-check firms, SPACs are essentially shell companies that list publicly with the aim of acquiring a privately-held business. High-growth tech companies are common targets for SPACs.Though 2020 was a banner year for SPACs listed in the U.S., Britain has missed out on the boom. One of the key reforms recommended in the U.K.’s listings review is to allow for SPACs that are structured similarly to those in the U.S. A common complaint about London-listed SPACs is that trading gets suspended once a takeover deal is announced.But there are worries that SPACs could be in a bubble, with U.S.-listed blank-check companies having raised around $88 billion so far in 2021, exceeding last year’s $83.4 billion issuance in three months.Johnny Boufarhat, CEO of U.K. virtual events start-up Hopin, said that “people keep trying to sell” him the idea of going public via a SPAC, but he is yet to be convinced.”I have no idea where it came from and why we would do that,” he added. Earlier this month, Hopin reached a $5.65 valuation less than two years since it was founded.Zego’s Saar said his company had no immediate plans for a listing, but warned that merging with a SPAC “for the sake of doing it makes no sense for any business.” Zego recently raised $150 million at a $1.1 billion valuation.London Stock Exchange Group CEO David Schwimmer told CNBC earlier this month that there have been signs of “froth” in the U.S. market, and warned SPAC excess “could end poorly” for investors. More

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    Putin prepares to get Covid vaccine — but the Kremlin refuses to say which one

    Russian President Vladimir Putin chairs a meeting focused on the support to the aviation industry and the air transportation at his country residence in Novo-Ogaryovo outside Moscow, on May 13, 2020.Alexey Nikolsky | AFP | Getty ImagesLONDON — Russian President Vladimir Putin is expected to receive a coronavirus shot on Tuesday, as intrigue surrounds the country’s vaccine strategy.The Kremlin said it would not reveal the name of the vaccine that Putin will receive, only that it would be one of three Russian-made shots.”We are deliberately not saying which shot the president will get, noting that all three Russian vaccines are absolutely reliable and effective,” Kremlin spokesman Dmitry Peskov told reporters, Reuters reported Tuesday.There are three Russian vaccines — Sputnik V, EpiVacCorona and CoviVac — with the latter two only recently gaining emergency approval.The Russian president is likely to get the vaccine Tuesday evening, Peskov added. It’s unclear whether he will be filmed receiving the shot as Peskov noted that Putin did not like the idea of being vaccinated on camera.Sluggish vaccine rolloutThe vaccination comes as the spotlight falls on the country’s vaccine strategy. On Monday, Putin lauded multi-million dollar international sales of Russia’s Sputnik V Covid vaccine but the country’s own rollout appears sluggish, and contrasts sharply with the high numbers of vaccines destined for the international market.There have been reports that Russia’s own production capacity is low and Putin appeared to nod to this on Monday. He said that Russia needed to ramp up vaccine production for domestic use and that supplying domestic needs was a priority, according to Reuters.He noted that 4.3 million people in the country had already received two doses of the vaccine. This is substantially higher than, for example, the U.K. which has given around 2.3 million people both doses to date, but Russia was the first country in the world to approve a coronavirus vaccine (Sputnik V) back in August 2020 — the U.K. approved its first shot in early December.LogisticsRussia does have a number of logistical challenges to overcome when rolling out a vaccine. It is the largest country in the world and has a population of around 144 million people spread across a territory that spans Europe and northern Asia.In early March, Putin noted that all but nine Russian regions had started to deploy the vaccine, with delays linked to “problems with logistics, distribution (and) locations,” the Moscow Times reported.Global data on vaccination programs shows that Russia lags many other countries in its own domestic rollout, with the number of single doses administered in Russia hovering just above the number of those given in Bangladesh, according to Our World in Data.The vaccination data is made more salient given that Russia has been hit so badly by the pandemic: It has recorded the fourth-highest number of cases in the world (over 4.4 million) and over 94,000 people have died from Covid in the country, according to Johns Hopkins University.Vaccine skepticismAnother big issue hampering Russia’s rollout is vaccine hesitancy among its citizens. Daragh McDowell, head of Europe and principal Russia analyst at Verisk Maplecroft, told CNBC that the country’s lower vaccination numbers are, “probably much more a result of lack of willingness on the part of popular scepticism over the vaccine than a lack of supply.”He noted that the latest data from the Levada center, an independent pollster in Russia, suggests that only 30% of Russians “are willing to get vaccinated, a number that’s actually gone down since last year.””This is mainly due to worries about side effects and that the vaccine hasn’t been tested enough – in other words, while the Kremlin got a propaganda boost from getting the vaccine out first, this was at the cost of doubts over its safety,” McDowell noted.A woman receives the second component of the Gam-COVID-Vac (Sputnik V) COVID-19 vaccine.Valentin Sprinchak | TASS | Getty ImagesSputnik V was initially only authorized in Russia for people 18-60 years old, meaning that Putin, who is 68, was too old to receive it. Further trials in senior citizens found that the vaccine was safe in people aged 60 and over, however, and that age group can now receive the shot.”The fact that Putin has waited this long to be vaccinated himself will not have gone unnoticed and will have contributed to these doubts,” McDowell added.”The president’s vaccination will convince some Russians of the vaccine’s efficacy and safety (but) high levels of social distrust and conspiratorial thinking will blunt it’s impact.”He highlighted that the same polling data which showed 30% of Russians were willing to get vaccinated also revealed that almost two thirds believed Covid was artificially developed as a biological weapon.International sales dealsAnother aspect of Russia’s vaccine program that’s drawing attention is the high numbers of international sales of its vaccine. On Monday, Putin confirmed that Russia had signed international sales deals for Sputnik V doses for 700 million people.RDIF, Russia’s sovereign wealth fund which backed Sputnik V’s development and deployment, said on Tuesday that Sputnik V had now been approved in 56 countries, with Vietnam the latest to join the list. Several countries in Eastern Europe, such as Hungary and Slovakia, have also ordered Sputnik V doses.Meanwhile, Europe’s medicines regulator started a rolling review of Sputnik V earlier this month.Verisk Maplecroft’s McDowell highlighted that although exports of 700 million doses was “an extremely ambitious number,” it likely includes does produced abroad, in India and South Korea for example, under license.Data crunchingRussia’s Sputnik V vaccine was approved by Russia’s health regulator in August last year before clinical trials were concluded, prompting skepticism among experts that it might not meet strict safety and efficacy standards. Some experts argued that the Kremlin was eager to claim victory in the race to develop a Covid vaccine, a charge it leveled at other countries. Russia has repeatedly said its vaccine is the target of anti-Russian sentiment.Russia appeared to be vindicated in early February, when an interim analysis of phase 3 clinical trials of the shot, involving 20,000 participants, was published in the peer-reviewed medical journal The Lancet. It found that the vaccine was 91.6% effective against symptomatic Covid-19 infection.In an accompanying article in the Lancet, Ian Jones, a professor of virology at the University of Reading, England, noted that “the development of the Sputnik V vaccine has been criticized for unseemly haste. But the outcome reported here is clear and the scientific principle of vaccination is demonstrated, which means another vaccine can now join the fight to reduce the incidence of Covid-19.” More

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    On an island north of Scotland, tidal power is providing juice for electric vehicles

    Nova InnovationAn electric vehicle charging point which uses tidal energy has started operations, providing road users on an island north of mainland Scotland with a new, renewable option for running their cars.  The facility is located on Yell, which is part of Shetland, an archipelago of roughly 100 islands. The charging point gets its electricity from Nova Innovation’s Shetland Tidal Array, a four turbine installation in Bluemull Sound, a strait between Yell and another island called Unst. In an announcement Monday, Nova Innovation described the project as “the first ever electric vehicle … charge point where drivers can ‘fill up’ directly from a tidal energy source.” A battery storage system has also been deployed to ensure a constant supply for vehicles.The Scottish government is one of many around the world looking to move away from internal combustion engine vehicles. It wants to phase out the need for new diesel and gasoline vans and cars by the year 2030. Funding for the project on Yell has come from Transport Scotland, the country’s transport agency.Scotland’s strengthsAmong those reacting to Monday’s announcement about the project on Yell was Fabrice Leveque, who is head of policy at WWF Scotland.”It’s great to see tidal technology being used to help decarbonise part of Scotland’s transport sector in the islands,” he said, adding that Scotland was “well placed to continue to lead in developing this technology, which will help to cut climate emissions and create skilled, green jobs.””Our islands have an abundance of renewable resources, including wind, tidal and solar, which when harnessed with care, could bring multiple economic and social benefits to remote and rural communities across Scotland,” Leveque went on to state.The waters around Scotland are home to a number of interesting projects focused on tidal power. These include the first phase of the MeyGen tidal stream development, which uses four 1.5 megawatt turbines. The project’s majority owner is London-listed Simec Atlantis Energy.While there is excitement surrounding the potential of marine energy, its current footprint remains small. Recent figures from Ocean Energy Europe (OEE) show that only 260 kilowatts (kW) of tidal stream capacity was added in Europe last year, while just 200 kW of wave energy was installed. By contrast, 2020 saw 14.7 gigawatts of wind energy capacity installed in Europe, according to industry body WindEurope.While tidal has a long way to go to catch up with other renewable sources such as wind and solar, it does have one potential advantage: predictability. Tidal currents, OEE says, “are caused by the gravitational forces of the sun and the moon.” The fact that tidal energy generation is influenced by “well-known cycles of the moon, sun and earth” rather than the weather means “it is predictable hundreds of years in advance.”The importance of infrastructureIf countries are to ramp up their electric vehicle offering in the years ahead and move away from gasoline and diesel, reliable and sufficient charging infrastructure will be crucial.Adequate charging options will also help challenge perceptions surrounding “range anxiety,” a term which refers to the idea that electric vehicles aren’t able to undertake long journeys without losing power and getting stranded.While the project on Yell is small-scale, it is part of a wider shift focused on the development of charging infrastructure.The U.K.’s first forecourt dedicated to charging electric vehicles opened for business last December, for example, while the Volkswagen Group wants to significantly increase the number of charging facilities in Europe, North America and China. More

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    'The last 12 months has taken a huge toll on us': Frustration rises in the UK amid lockdowns and loss

    Activists protesting against coronavirus lockdown restrictions in London, England, on December 14, 2020.NurPhoto | NurPhoto | Getty ImagesLONDON — When the first coronavirus lockdown was imposed across the U.K. exactly a year ago, most would have struggled to conceive that, 12 months on, restrictions on public and private life would still be in place.With that now a reality, there are increasing signs that the British public are growing frustrated with the constraints, with anti-lockdown protests hitting the capital at the weekend.Although the U.K. has laid out a roadmap for the lifting of restrictions, with the government aiming to ease most Covid curbs by June 21, there have been smoke signals over the last few days that the government doesn’t expect normal life to resume even then.Government ministers, and health experts advising them, have made a number of comments suggesting that summer vacations are now “highly unlikely” given the situation in other parts of Europe where coronavirus cases are rising due to new variants of the virus.Another health expert — the head of immunization at Public Health England — suggested Sunday that masks and social-distancing measures could be required for several years.The government has also signaled it wants to extend its authority to reverse any easing of measures and, thanks to support from the opposition Labour party, is expected to receive approval to extend emergency powers until October, despite a group of lawmakers within the ruling Conservative Party describing the move as “authoritarian.”Combine these factors and a summer of freedom for the U.K. public is starting look more unlikely, potentially setting the stage for more public discontent as Brits become desperate to return to “normality.” Especially as the vaccine rollout continues at pace; on Saturday, a record-breaking combined total of 844,285 first and second doses were given to those in line for the shot, up from 711,157 people receiving a vaccine dose on Friday.The toll on the UK in numbersMarch 23 is the first anniversary of Prime Minister Boris Johnson’s announcement to the British public that the country would go into lockdown, with the government implementing unprecedented measures in peacetime that were designed to stop the spread of the coronavirus that had first emerged in the then-largely unheard of Chinese city, Wuhan, in December 2019.Then, when Johnson made the first “stay-at-home” announcement, one that citizens have now become used to, the U.K. had reported a daily jump in the number of deaths caused by the virus, with 335 fatalities over 24 hours with hospitals and health care staff grappling to understand Covid-19 and effective treatments.British Prime Minister Boris Johnson speaks during a televised press conference at 10 Downing Street on February 22, 2021 in London, England.Leon Neal | Getty Images News | Getty ImagesFast forward a year and the U.K. has the ignominious position of having recorded the fifth-highest number of coronavirus cases in the world, after the U.S., Brazil, India and Russia, according to a tally from Johns Hopkins University. To date, the U.K. has reported over 4.3 million infections, and over 126,000 deaths — the fifth highest number of deaths globally after the U.S., Brazil, Mexico and India.A minute’s silence will be held in the U.K. on Tuesday to reflect on the deaths caused by the virus. Prime Minister Boris Johnson said in a statement that “the last 12 months has taken a huge toll on us all, and I offer my sincere condolences to those who have lost loved ones.” He added that the country had shown “great spirit shown by our nation over this past year.”The reasons behind the higher death toll in the U.K., compared to its continental counterparts in mainland Europe, are manifold but underlying factors include a higher rate of obesity, preexisting health conditions and socio-economic factors.What went wrong, or right?The government, for its part, has come in for intense criticism that it locked down too late, failed to implement border controls and checks on incoming travelers to the U.K., did not adequately protect health care workers and presided over an inadequate test and trace system still considered sub-par. In sum, it’s been accused of not being prepared for a pandemic, and for mismanaging one when it arrived.One bright spot, and a saving grace, has been the U.K.’s highly-regarded scientific community which has been at the forefront of research into the virus, its effects and trials looking at the best way to combat it. In June 2020, for example, U.K. health experts led by the University of Oxford discovered that a low-cost steroid treatment, Dexamethasone, could greatly lower the risk of death when given to the most critically-ill Covid patients.An even bigger breakthrough came when the University of Oxford and Anglo-Swedish pharmaceutical AstraZeneca, successfully developed and trialed one of a handful of effective vaccines, with the shot’s creation even more remarkable given that it can take years to develop vaccines. U.K. vaccine research was boosted by government funding too.The U.K. was the first country in the world to approve and deploy the Pfizer-BioNTech vaccine back in early December, and quickly initiated a national immunization program that has gathered pace.In January, the AstraZeneca vaccine was added to the arsenal and the vaccination program went from strength to strength, surprising even the most cynical Brits and winning the country’s heath experts and National Health Service plaudits for the bold decision-making, and a well-managed rollout.Unlike other countries in Europe, who erroneously questioned the AstraZeneca vaccine’s efficacy in the over-65s, the U.K. went ahead with mass immunizations with the elderly and health care workers prioritized.Health experts also took the view (criticized at the time but now replicated in other countries) that the gap between the first and second doses of the coronavirus vaccines being deployed should be elongated up to 12 weeks in order to offer more initial protection to more people.Margaret Keenan, 90, is the first patient in the United Kingdom to receive the Pfizer/BioNtech covid-19 vaccine at University Hospital, Coventry.Pool | Getty Images News | Getty ImagesThe decision was vindicated by later clinical data showing that the strategy was effective and even increased the efficacy of the AstraZeneca vaccine. The rollout has exceeded expectations; as of March 20, over 27.6 million British adults have received a first dose of a vaccine, and over 2.2 million have had their second shot, according to government data.There is palpable restlessness among members of the public — particularly those opposed to lockdown in the first place — as well the business community, for society to reopen. Anti-lockdown protests in London last weekend attracted several thousand demonstrators who chanted “Freedom!” as they marched through the capital. Later, scuffles between the police and demonstrators led to over 30 arrests.Protesters carry a sign saying “The ‘cure’ is worse than the ‘disease'” as they march during a “World Wide Rally For Freedom” protest on March 20, 2021 in London, England.Hollie Adams | Getty Images News | Getty ImagesWhat happens next?So, when it comes to the vaccine, it has been a case of “so far, so good.” The U.K. has seen the benefit with the number of new cases, hospitalizations and deaths steadily decreasing.The speed of the rollout has been seen as critical, at a time when new variants of the virus have emerged and threatened to potentially undermine the positive effects of the vaccines.Mainland Europe is seeing the ramifications of its perhaps understandably slower rollout given the fact that the EU chose to order vaccines as a bloc and, crucially, ordered later than the U.K. and U.S.As well as slower supplies and production issues, the EU has had to contend with vaccine hesitancy, which is not prevalent in the U.K., and bureaucracy, again a factor not so much of an issue in Britain where the health care service is largely a joined-up and well-connected centralized system.But this week the U.K. faces a potential challenge to its rollout if EU leaders, meeting virtually Thursday, decide to block exports of Covid vaccines made in the bloc to countries, like the U.K., that are further ahead in their immunization programs.Johnson has reportedly sought to allay such a move, speaking to his counterparts in France and Germany at the weekend. But if the EU goes ahead, the U.K. could face further supply bottlenecks; it is already expecting a supply shortage due to a reported delay in exports from an Indian manufacturing facility.Delays could cost Britain its so-far successful rollout, and citizens their liberties, although the government has so far said it still plans to have offered a first dose of a vaccine to all adults by July 31. More

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    Stock futures little changed after tech stocks rally

    Traders on the floor of the New York Stock Exchange.Source: NYSEU.S. stock index futures were little changed during overnight trading on Monday, after all three major averages posted gains during regular trading hours.Futures contracts tied to the Dow Jones Industrial Average advanced 16 points. S&P 500 futures were flat, while Nasdaq 100 futures slid 0.14%.The Dow finished Monday’s session 103 points higher, for a gain of 0.32%. The S&P 500 broke a two-day losing streak and advanced 0.7%. The Nasdaq Composite was the relative outperformer, jumping 1.23% for its fifth positive session in six.The gains came as the 10-year Treasury yield retreated, after touching a 14-month high last week.”While the rise in yields has created volatility, we don’t expect it to derail the equity rally,” noted Mark Haefele, chief investment officer at UBS Global Wealth Management. “We believe rising yields reflect growth optimism and expectations for higher inflation.”On Tuesday Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen will make their first joint appearance before the U.S. House Committee on Financial Services. The discussion will center on the oversight of the Treasury’s and Federal Reserve’s pandemic response.In prepared remarks published ahead of the hearing, Powell noted that the recovery is gaining steam, before adding there’s still a long way to go.”The recovery has progressed more quickly than generally expected and looks to be strengthening. This is due in significant part to the unprecedented fiscal and monetary policy actions … which provided essential support to households, businesses, and communities,” he said in the prepared comments.”But the recovery is far from complete, so, at the Fed, we will continue to provide the economy the support that it needs for as long as it takes,” he added.Tuesday also marks the one-year anniversary of the market’s bottom as the coronavirus pandemic sent stocks tumbling 30% at the fastest pace on record.Since the intraday low on March 23 both the S&P 500 and Dow have advanced 80%. The Nasdaq Composite is up 93%, while the Russell 2000 has surged 135%.”Things have come full circle now, as stocks have staged a furious rally, with new highs happening across the globe as the economy recovers at a record pace,” noted Ryan Detrick, chief market strategist at LPL Financial.”This bull market is off to an amazing start, but it is important to remember it is still young. While a pickup in volatility would be normal as this stage of a strong bull market, we think suitable investors may want to consider buying the dip. Vaccine distribution, fiscal and monetary stimulus, and a robust economic recovery all have our confidence high,” he added. More