Kaohoon Morning Brief – 5 November 2021

1) U.S. jobless claims drop to record low during pandemic

US weekly jobless claims last week came in at 269,000, compared to 275,000 estimated by economists. The record is a new low during the Covid-19 pandemic. Economists see that this could mark the end of a long-struggling labor market and a sign of recovery.

Meanwhile, the market is expecting October’s job report to come in at 450,000, which is a sharp increase from 194,000 in September.

 

2) OPEC+ continued with output plan of 400,000bpd

OPEC and its allies agreed to continue with their current output plan by adding 400,000 barrels per day each month despite the rising oil prices to a multi-year high and the pressure from Washington to curb the price down by increasing output. The Russian Energy Minister stated that the group is maintaining market balance and remaining wary of potential changes in demand.

 

3) BoE kept policy rate unchanged at 0.10%

The Bank of England voted 7-2 to keep interest rates unchanged at 0.10%, despite earlier statement from the bank of rising inflation the will be around 5% next April, while saying that an increase of interest rate is required to bring the inflation down. The British pound immediately dropped on the decision.

 

4) British regulator approved Merck;s Covid pills

An antiviral pill for treating Covid-19, Molnupiravir, has been approved by Britain’s medicines regulator on Thursday. The regulator said that the pill is safe and effective at reducing the risk of hospitalisation and death in people with mild to moderate Covid-19 who are at increased risk of developing severe disease.

The pill is jointly developed by Ridgeback Biotherapeutics and Merck.