● Pharma: Greed, Lies, and the Poisoning of America
By Gerald Posner
Review via The Intercept
As the new coronavirus spreads illness, death, and catastrophe around the world, virtually no economic sector has been spared from harm. Yet amid the mayhem from the global pandemic, one industry is not only surviving, it is profiting handsomely.
“Pharmaceutical companies view Covid-19 as a once-in-a-lifetime business opportunity,” said Gerald Posner, author of “Pharma: Greed, Lies, and the Poisoning of America.” The world needs pharmaceutical products, of course. For the new coronavirus outbreak, in particular, we need treatments and vaccines and, in the U.S., tests. Dozens of companies are now vying to make them.

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China has been the epicenter for the coronavirus outbreak, but its stock market is suffering the least on a year-to-date basis through yesterday’s close (Mar. 12) for the world’s major equity market regions, based on a set of exchange traded funds.

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Coronavirus infections spread near and far: Reuters
US launches airstrikes on Iranian-backed militia sites in Iraq: CNN
Global recession risk rising, economists advise: WSJ
What would a US recession look like this time? NY Times
US stock market is at risk of worst week in history after Friday’s trading: MW
Coronavirus fears drive world interest rates toward zero: Bloomberg
US producer prices in Feb fell the most in five years: CNBC
US jobless claims remain low, but coronavirus blowback lurks ahead: MW
US stock market (S&P 500) on Thursday fell to lowest level since Dec 2018:

The dramatic slide in the US stock market in recent days is effectively a forecast that an economic recession is fate. The assumed catalyst: coronavirus blowback. No one can dismiss this risk, but at the moment there are no hard numbers to confirm that a US recession is near. Nonetheless, it’s all but certain that growth will slow, perhaps significantly. Deciding if the economy will contract, however, remains debatable. Mr. Market, however, is assuming the worst with an aggressive round of discounting the future. The challenge in the days and weeks ahead is determining if the incoming economic data support the market’s worst fears.

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President Trump bans travel from Europe to US to battle coronavirus: BBC
State Dept advises citizens to reconsider traveling abroad: CNN
Germany’s Merkel: up to 70% of Germans could contract coronavirus: BBC
ECB expected to roll out major stimulus package to combat coronavirus: CNBC
Saudi Arabia gambles on oil-price war: CNN
US consumer price inflation picked up to 2.4% in Feb, highest since 2018: MW
S&P 500 drawdown near -20% bear market territory after Wednesday’s slide:

Is the infection rate for new coronavirus cases in South Korea peaking? Unclear, although the latest data suggests that’s a possibility offering what may be a light at the end of the tunnel for the country and the rest of the world. Yes, that’s a highly speculative proposition at this point, but it’s also a possibility worth exploring (and monitoring as new numbers are published in the days ahead).

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Biden’s lead in Democratic primary strengthens after Tuesday’s voting: CNN
ECB chief: Europe risks a major economic shock from coronavirus: Bloomberg
Washington considers steps to boost economy as coronavirus cases rise: Reuters
Bank of England announces emergency rate cut in response to coronavirus: CNBC
Saudi Arabia rolls out plans to raise output even further: WSJ
Companies focus on raising cash as coronavirus roils business outlook: Reuters
Putin considers becoming Russia’s president for life: Vox
US small business owners remained optimistic in February: NFIB
US same-store sales trend for 1yr chg show retail spending remains robust: BB

In the 1974 film “Chinatown,” Noah Cross tells Jake Gittes, the nosy detective: “You may think you know what you’re dealing with, but believe me, you don’t.” The advice isn’t out of line for investors, portfolio managers and economists who’ve studied economic and market history and assume that the future will play out with similar twists and turns by dropping robust signals ahead of the next crisis.
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Trump to propose policies to ease economic fallout from coronavirus: WSJ
Analysts consider economic and political fallout from coronavirus: Reuters
Italy expands emergency coronvirus measures to entire nation: BBC
Will a Biden win in Michigan today secure his bid as Democratic nominee? CNN
How long will the oil war between Saudi Arabia and Russia last? CNBC
Sharp stock market declines usually followed by rebounds, history shows: MW
How will coronavirus affect US primary elections? NY Times
Safe-haven German 10-year bond yield approaching -1.0%, a record low: Reuters

Coronavirus-related selling took a toll on equity markets last week (and more of the same is in store for today). But in a striking bit of defiance, US real estate investment trusts (REITs) bucked the trend last week, posting the strongest gain for the major asset classes for trading through Friday, Mar. 6, based on a set of ETFs.
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