Feb 23, 2021
AstraZeneca will deliver only half of the doses of the vaccine agreed with the European Union for the second quarter
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AstraZeneca has communicated this Tuesday to the European Commission that will deliver half of the vaccines against Covid-19 of which the European Union was hired for the second quarter, as revealed by a community source to the agency ..
“We are doing everything possible to leverage our global supply chain. We are hopeful to be able to bring our deliveries closer in line with the advance purchase agreement, “an AstraZeneca spokesperson told ., without giving exact figures for deliveries.
This is the second delay of the company after failing to meet its commitments for first quarter deliveries due to “production problems.” So by the end of June, the European Union will receive some 130 million doses, far less than the 300 million it promised to deliver.
News Source: cvbj.biz
Positive with European stocks: BofA already expects a 10% rise in the middle of summer
The strategists of Bank of America (BofA) have changed their minds about the renta European variable. They have raised their advice from neutral to positive given the good prospects offered by the region thanks to “higher growth, less uncertainty and the increase in oil.” All this leads them to think that the stock markets of the Old Continent will do well in 2021, and they predict a 10% rise in the third quarter, that is, in the middle of summer.
Between July and September the Stoxx 600 you will experience a clear improvement. This is what the experts of the US bank say in their latest report on European stocks, in which they emphasize that they have raised their target for the third quarter for this index from 440 to 460, representing “an 11% increase from current levels” (It is now trading at around 411 points).
“Europe’s growth seems poised to accelerate, given the strong efficacy of vaccines, the improvement in vaccine supplies and the strong recovery in the US “, affirm the analysts of BofA, who point out that their decision with the equities of the Old Continent is due to the fact that they have raised their expectations that there is “a greater growth momentum in the third quarter”, which, together with less uncertainty and a higher oil price, suggests that European stocks will perform well.
Likewise, these strategists have high exposure to cyclicals. “We are raising European cyclicals versus defensive ones from market weighting to overweight as our expectations for a strong rally in Euro zone PMI, a further increase in U.S. bond yields and the continued depreciation of the dollar imply a 15% outperformance for cyclicals vs.defenses in the third trimester “, they remarked.
And they have also changed their advice on the stocks of capital goods Europeans, from neutral to overweight. As analysts at BofA put it, “Our expectations of improving euro zone growth momentum, coupled with an anticipated rebound in China PMI near its highs in the fourth quarter, are consistent with a 13% higher yield for the sector in the third quarter “.
Bank of America continues to overweight cyclical assets because “they have more room to improve with the recovery” (luxury goods, building materials, German equities), and has also positioned itself for a “continued rise in bond yields”, leading these experts to overweight value / growth, banking and insurance, while underweight pharmacy and utilities.THERE ARE STILL RISKS TO WATCH OUT
The bank bases all of these estimates on its expectation of a strong momentum of European growth. “It looks like it will accelerate sharply in the middle of the year” due to mounting evidence of the capacity of vaccines against Covid-19 to curb the transmission of the virus, as well as to reduce severe cases of the disease, and also for the improvement of the prospects for the supply of vaccines in the European Union from the second quarter.
Not forgetting the greater probability of a strong US recovery, which in his opinion “should support the growth momentum in Europe.” In fact, BofA has raised its forecast for US GDP growth for 2021 to 6.5% (strongest since 1984), and he also believes that the euro zone economy will grow at a rate of 5% in the second quarter and 7% in the third. But he warns that there are still risks.
“Any indication that existing vaccines do not confer protection against new strains of the virus could shattering hopes of a strong recovery“, warn the bank’s strategists, who also see an” increasing probability that there will be a bond market tantrum, which could cause a temporary halt in risk sentiment through a disorderly rise in real bond yields. “