Overseas Headlines – October 4, 2021

United States:

The Real Cost of U.S. Debt Is Nearer the Floor Than the Ceiling

“U.S. politicians are locked in a huge fight over something that more and more people in the financial world view as irrelevant. Brinkmanship in Washington over whether to raise the debt ceiling or risk a default has become a 21st-century staple. But since the last major standoffs a decade or so ago, there’s been a sea change in the way investors, economists and officials think about public borrowing.”



ECB’s Visco Says Price Increases Should Be Only Temporary

“Recent price increases are being driven by commodity inflation and supply-chain snags should prove only temporary, European Central Bank Governing Council member Ignazio Visco said on Saturday. In a speech commemorating economist Marcello De Cecco, Bank of Italy governor Visco said that for now there’s little evidence of higher supply-chain prices being passed through to consumers.”



Merck’s Covid Pill Progress Sparks Asian Vaccine Stock Selloff

“Makers of vaccines and other coronavirus treatments dropped in Asia after Merck & Co. said its experimental pill cuts the risk of hospitalization and death from Covid-19 in half.  The declines followed a slump in shares of BioNTech SE and Moderna Inc. in New York on Friday after Merck delivered the news on its drug, which is seen by some as marking a turning point in the global fight against Covid-19.”



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