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Liz Truss prepares to fire Kwasi Quarting and make a drastic change in tax cuts

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UK Prime Minister Liz Truss is set to fire Chancellor Kwasi-Quarting as she prepares to make a dramatic shift in his “mini” budget, according to government insiders.

Two senior government officials said Quarting would be fired on Friday. Downing Street declined to confirm the chancellor would remain in office, refusing to comment on “speculation”.

Truss is due to hold a press conference at which she is expected to announce a turnaround in Kwarteng’s £43bn unfunded tax cut package.

The chancellor returned to London from IMF talks in Washington Friday morning and headed straight to Downing Street, his future in the balance.

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Among the measures expected to be reversed is a £18bn corporate tax cut – Kwarteng had planned to scrap a proposed increase next April from 19 per cent to 25 per cent.

Tory MPs expected the chancellor’s dismissal, whose September 23 financial statement quickly turned into an economic and political disaster.

Sajid Javid, who briefly served as an adviser in Boris Johnson’s cabinet, is seen by some cabinet ministers as the only credible contender to replace Quarting.

One of the ministers said, “Saj is the only one close enough to its agenda that it can have some credibility with the markets.”

The tax cuts announced in the “mini” budget were largely geared policies and featured prominently in her campaign for Tory leadership. The coup would be a political disaster for her.

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Government bonds – at the center of the turmoil following last month’s Kwarteng financial statement – have already seen a rebound from week lows as markets increasingly anticipate a turnaround in tax cuts.

Bonds extended their rally from Thursday to Friday morning, with the yield on the 30-year bond falling 0.24 percentage point to 4.31 percent as its price rose sharply. The pound slipped 0.4 percent to $1.124 per dollar, trimming an overnight rally that sent it back to $1.137.

However, a Bank of England An emergency bond-buying program to support gold-exposed pension funds ends Friday, with investors worried that if the government does not back down on its tax proposals, more turmoil could follow.

The market chaos has led many Conservative MPs to openly criticize Truss’ leadership and speculate whether her premiership will last in the coming months.

“The problem is that she’s only got about 25 per cent of the parliamentary party supporting her – if that’s the case,” a veteran Toure told the Financial Times. “She has a lot of disgruntled MPs to manage.”

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The government’s record low position in opinion polls – in one poll, the Conservatives dropped to 19 per cent, with Labor with a 34-point lead – has increased pressure from Tory MPs on Truss to back down on her economic plans.

Mel Stride, chair of the Treasury’s selection committee, argued on Friday that if the government failed to reverse course, markets could punish it again.

“If it doesn’t, the markets could have a negative reaction to it,” he told the BBC. So my advice to the counselor would be, ‘Do it, do it now, make sure it’s something important, not just nibbling at the edges but something that will be firm and bold and persuasive, and do it as soon as possible. “

Tory counterpart Lord Ed Vaese added that the inflection was now “inevitable”.

Speaking to Sky News, he said: “What is sort of being brought up now is that there will be some sort of compromise that can still be presented as radical economics.”

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As the government sought to maintain its public message, Commerce Secretary Greg Hands said on Friday that the prime minister and chancellor were “absolutely determined to stick to the growth plan”. “There are absolutely no plans to change anything, except for the fact that there will be a medium-term financial plan,” he told LBC Radio.

Kwarteng has so far said he will announce that plan – when he is due to explain how he intends to reduce debt – on October 31 along with forecasts from the Office of Budget Responsibility. But pressure is steadily growing on the government to act more quickly.

A former cabinet minister argued that Truss’ recent mistakes were due to a lack of experience in her core team. “I feel as if there are not enough adults in the room,” they said.

Some senior members of the House of Representatives have brought up the possibility of replacing Truss with a joint ticket for former Chancellor Rishi Sunak and Benny Mordaunt, leader of the House of Commons.

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Former Culture Minister Nadine Doris rejected the proposal on Twitter, writingIt is a conspiracy not to dismiss the prime minister but to overthrow democracy.



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Fauci warns that China risks a “wave of infections” after relaxing its coronavirus eradication policy

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Joe Biden’s chief medical adviser has warned that China’s reversal of a zero-Covid policy threatens to put pressure on the country’s health system and create conditions for new variants that could spread around the world.

Dr. Anthony Fauci urged Beijing to import Western Covid vaccines based on messenger RNA (mRNA) technology, which are more effective than Chinese-made vaccines, to increase the vaccination rate and boost overall immunity.

He said a wave of casualties would occur A large number of elderly people in China About 85 million people over the age of 60 have not received the third dose of the vaccine needed for strong protection against Omicron variants – and people with underlying health conditions are particularly challenging.

“If they don’t do things like launch and implement a proactive vaccination campaign, and open up, you’re going to have a wave of infections that will certainly be associated with some degree of disease severity,” Fauci said. The FT Global Boardroom event Wednesday.

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He added that any large wave of infections in China would give the coronavirus a chance to mutate into new types.

“When you have a big wave of transmissions of the virus, you give it a huge chance to mutate. When you give the virus a chance to mutate, that allows it to create potentially new variants. And once you have a completely new variant it can have an impact on the rest of the world.”

‘When you have a huge wave of virus transmissions, you give it a huge opportunity to turn around,’ Anthony Fauci told the FT Global Board of Directors © Abbie Coonan / FT

The risk of an uncontrolled wave of Covid infections across China creating conditions for new variants to flourish was “possible” but “very low,” Eric Topol, founder and director of the Scripps Research Translational Institute, said on Wednesday.

“The much bigger concern is that there will be countless deaths and morbidity unless there is an accelerated and much better vaccination rate, including more effective vaccines, in the population,” he said.

Fauci, who is stepping down from his position in the US government at the end of the year, added that he had not had contact with Chinese officials in a long time. He said Beijing’s strategy earlier in the pandemic had “some flaws” because it did not use lockdowns to vaccinate people.

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Beijing announced this week widespread relaxation President Xi Jinping’s controversial zero-COVID policy emerged as evidence of the economic damage caused by the pandemic’s restrictions emerged. But Wigram Capital Advisors, a macro advisory group focused on Asia, predicts that relatively low vaccination levels among China’s aging population could lead to million deaths If infection rates rise under relaxed restrictions.

Fauci echoed the advice issued Last week by Ashish Jha, the White House coronavirus coordinator, on how China should change its policy and import Western vaccines to tackle the virus. China said it would provide the BioNTech vaccine, but only to foreigners.

I would suggest they import western types [vaccines], particularly the highly effective mRNA vaccines used in most countries of the world. Unfortunately, the original Chinese vaccines were not as effective as some of the other vaccines.

Even in the United States, Fauci said, the number of deaths from Covid remains unacceptably high. He said cooler weather, increased social activity in the upcoming holiday season, and Omicron’s new BQ.1 and BQ.1.1 variants mean the pandemic is far from over.

“This is not a good formula for declaring that this is over,” Fauci added. “We still have to be on our guard.”

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Apple’s Tim Cook celebrates a new chip factory in Phoenix

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When Chinese factory supply Apple’s iPhone has been so riddled with the COVID-19 outbreak that it has shutdowns and staff strikeit directly affected global iPhone shipments.

some Estimates That iPhone production may decrease by up to 30% as a result of curbing the spread of the epidemic in China.

To reduce the risk of slowing down the production of its devices abroad, Apple decided to take matters into its own hands. Apple CEO Tim Cook confirmed on Tuesday that chips for Apple devices will now be made in the United States

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Apple silicon unlocks a new level of performance for our users. And soon many of these chips can be stamped “Made in America,” he wrote in the tweet.

A new plant in Arizona, operated by the contract chip maker, Cook said Taiwanese semiconductor industryIt will mark the beginning of a new era of advanced manufacturing in the United States.

This will be the first time in a decade that Apple will use US-made chips. The California-based company relies heavily on parts manufactured in Asian countries, In particular, China. Most of the chips that power Apple devices are Made in Taiwan.

The Apple CEO spoke at the TSMC factory under construction in Phoenix, along with President Joe Biden.

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“As many of you know, we work with TSMC to manufacture chips that help power our products around the world,” Cook said during the speech. to me bloomberg. “And we look forward to expanding this business in the coming years – as TSMC forms new and deeper roots in America.”

Apple plans to make silicon chips for most of its devices at its Phoenix plant. bloomberg mentioned. In the early years of manufacturing, the factory will produce fewer chips and use lower-quality technology than what Apple may require for its devices in 2024.

The company did not immediately respond luckComment request.

TSMC initially planned to spend $12 billion at our factory in Phoenix. Taiwanese company later increased Its investment amounts to nearly $40 billion, which it said is “the largest foreign direct investment in the history of the state of Arizona and one of the largest foreign direct investments in the history of the United States.”

The chip maker is said to be looking forward another plant Located in the United States as part of a larger effort to reduce reliance on Asia to make much of its chips.

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The plant is set in Arizona Opened in 2024.

The new Impact Report weekly newsletter will examine how ESG news and trends are shaping the roles and responsibilities of today’s CEOs – and how they can better overcome these challenges. Subscribe here.



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RXDX shows promising results in irritable bowel disease

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Prometheus Biological Sciences (RXDX) reported promising results for one of its drugs in two studies on inflammatory diseases on Wednesday, and RXDX stock rose by triple digits.




X



The company studied its drug, now called PRA023, in patients with ulcerative colitis and Crohn’s disease, which are two types of irritable bowel disease. More than a quarter of patients with ulcerative colitis and about half of the Crohn’s disease group entered remission after 12 weeks of treatment.

Gregory Renza, an analyst at RBC Capital Markets, said in a note to clients that the results exceeded Prometheus’ expectations. Now, Prometheus is planning to conduct its final-stage studies in 2023.

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“Netnet results exceeded our expectations,” he said. They provide “a major proof-of-concept in IBS, early validation of a biomarker strategy and a positive readout (ulcerative colitis dataset II) now set for the second quarter of 2023.”

In the morning work on stock market today, RXDX stock rose 181.6%, near 101.50. Stocks set a record opening.

RXDX Stock: Ligand Targeting

Prometheus is an antibody that binds to TL1A, an inflammation-related ligand. The company hypothesized that blocking this ligand — a molecule that binds to a receptor — would relieve symptoms in patients whose bodies make too much of it.

After 12 weeks, 26.5% of patients with ulcerative colitis had achieved remission, compared with 1.5% in the placebo group. RBC’s Renza said this “comfortably beats” Prometheus’ expectations of a 10%-15% improvement. The company attributes the placebo response to the severity of the patient group.

In testing for Crohn’s disease, 49.1% of patients entered remission and 26% had an endoscopic response. The latter means that doctors did not find inflammation in the patients’ intestines after treatment.

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PRA023 was positive for stock RXDX, Renza said, which also showed statistical significance for all secondary targets of the studies.

Thomas Smith, an analyst with SVB Securities, notes that the drug showed “a clear profile of safety/tolerance in both studies.” There were no serious side effects related to the treatment. He rates RXDX stock as an outperformer.

Overcoming recent negative pressure

It is important to note that the RXDX arrow has turned down on the data reading. News followed Pfizer (PFE) And the Spiritual sciences (ROIV) will set up a company to sell the TL1A-targeting antibody. Their drug is currently in mid-stage development for ulcerative colitis.

“We believe (Wednesday’s) positive reception could add to the negative pressure we saw last week from the development of the Pfizer/Roivant competitor,” said RBC’s Renza.

It has maintained its outperform rating on the stock.

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Follow Allison Gatlin on Twitter at @tweet.

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