Highlight of the Week
Bank of England to Buy Bonds in Bid to Stop Spread of Crisis
- The Bank of England plans to buy long-term government bonds to fight soaring borrowing costs fueled by a large set of tax cuts.
- The buying of government bonds is only meant to be a short-term strategy to stabilize the bond market. Afterward, the Bank of England will resume its policy of selling off bonds as a means of quantitative tightening.
Consumer Moods Improved in September as Gasoline Prices Fell
- The Consumer Confidence Index rose in September indicating that Americans have a more positive economic outlook. This rise can be attributed in part to falling gas prices.
- Housing sales rose in September while durable goods sales fell slightly. These diverging measurements make it unclear where consumer demand is headed.
- On the other side, manufacturing demand is stumbling due to the easing of supply chain bottlenecks in competition with rising rates and prices.
Alzheimer’s Drug Slows Disease Progression in Trial
- Eisai Co. and Biogen Inc. stated that their experimental drug lecanemab showed significant results in slowing the progression of the Alzheimer’s disease.
- The drug is being considered for conditional approval by the FDA. The FDA’s decision will be announced by January 6.
- Eisai Co. hopes to ask for full approval by the end of March 2023 following clinical development and regulatory processing.