The much-hyped and often-maligned billionaire space race has taken another twist after Elon Musk’s latest SpaceX launch late Wednesday.
If Richard Branson took an early lead out of the blocks with Virgin Galactic’s first space tourism flight in July, and Amazon founder Jeff Bezos caught up with Blue Origin’s first paid-for trip to space just days later, then Musk has roared past both of them.
To put it another way, the Virgin Galactic flight reached a peak altitude of 53.5 miles and lasted about an hour. Blue Origin’s voyage reached an altitude of 66 miles but lasted just 11 minutes.
SpaceX’s all-civilian flight, which launched from the Kennedy Space Center in Florida late Wednesday, reached a 363 mile altitude within hours and the lucky crew will spend three whole days in space. SpaceX is doing more for the sector too, pioneering the use of reusable rockets and ferrying astronauts to the International Space Station.
So, the space race is over then, right? Well, no, it isn’t a sprint. SpaceX’s flights are likely to be way out of the financial range for most people, whereas Virgin Galactic, for example, says it has 600 reservations so far with tickets priced at $250,000—still entertainment for the rich but a larger addressable market.
But it isn’t really about three billionaires competing with each other, it’s about a new era of human spaceflight and space tourism. The sector could be poised to take off and investors may wish to do their own exploration into the likes of Virgin Galactic, space-launch company Rocket Lab USA or even aerospace giants such as Lockheed Martin and Northrop Grumman, among other space stocks out there.
—Callum Keown
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Boosters in Focus Again as Pushback on Mandates Strengthens
The Food and Drug Administration posted a document that was noncommittal about boosters, saying the current Covid-19 vaccines provide sufficient protection against severe disease and death, ahead of Friday’s advisory panel discussion on whether to authorize booster shots.
- Moderna on Wednesday said the risk of breakthrough infections was slightly higher among those vaccinated 13 months ago, supporting the need for a booster shot. Pfizer and BioNTech are seeking FDA approval for boosters for people 16 and older.
- A federal judge has temporarily blocked New York state from requiring medical workers to be vaccinated, after 17 healthcare workers sued, saying not allowing exemptions for “sincere religious beliefs” violates their Constitutional rights. New York state has until Sept. 22 to respond.
- About 3,000 Los Angeles Police Department employees and 3,800 Washington state workers cited religious objections to avoid mandated vaccination. An Oklahoma pastor offered a “religious exemption” form on his church’s website, along with links suggesting donations to the church.
- One in 500 Americans, more than 666,000, have died since the pandemic began, according to an analysis of Johns Hopkins University and Census Bureau data.
What’s Next: Pfizer plans to apply for emergency-use authorization to administer its vaccine to children aged five to 11 early next month, and will seek approval for its use in children six months to five years “shortly thereafter,” Pfizer Chief Financial Officer Frank D’Amelio told a healthcare industry conference.
—Janet H. Cho
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Money Managers Bracing for Fight Over Tax Proposal Targeting ETFs
Money managers are bracing to fight a proposal by Senate Finance Committee Chairman Ron Wyden that would target exchange-traded funds and especially the ETF’s use of “in-kind” transactions that currently avoid triggering capital-gains taxes.
- Wyden’s proposal would close a decades-old regulation loophole and eliminate a key ETF selling point: tax efficiency. It will likely spur large investment managers, some of whom built their businesses around ETFs, to mobilize in opposition.
- ETFs are popular investments. Assets of U.S.-registered ETFs quintupled to $5.4 trillion in 2020, according to the Investment Company Institute. More than 12 million American households, with a median household income of $125,000, own them.
- Right now, it is just a suggestion, not part of any formal legislation. Wyden, a Democrat, is working with caucus members to find ways to pay for President Joe Biden’s spending plans.
- On Wednesday, the House Ways and Means Committee voted 24-19 to advance a plan that would generate more than $2 trillion toward expanding Medicare, increasing renewable-energy tax breaks and creating a national paid-leave program, among other items.
What’s Next: Committee Chairman Richard Neal (D., Mass.) and two other Democratic lawmakers said they are committed to enacting a law with “meaningful” relief for those pushing to repeal a $10,000 cap on federal income tax deductions for state and local taxes.
—Janet H. Cho
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Evergrande Suspends Trading of Onshore Corporate Bonds After Downgrade
Chinese developer Evergrande’s main unit is reported to have applied Thursday for a trading suspension of its onshore bonds, in a move that could take it closer to restructuring or default.
- Hengda Real Estate Group was notified Wednesday by the Chinese ratings agency that its bonds had been downgraded to A from AA, while being put on a watch list for possible further downgrades. Evergrande applied to suspend trading of its onshore corporate bonds, according to Reuters. Evergrande has been contacted for comment.
- Chinese banks were warned by authorities earlier this week that the company wouldn’t be able to meet interest payments on loans due Sept. 20, according to several reports.
- Evergrande has been struggling with a liquidity crisis and is saddled with more than $300 billion worth of liabilities, although it doesn’t have to face repayments on its foreign-denominated bonds until next year.
- The group’s stock price is down 80% this year and its woes are taking down the rest of the overleveraged Chinese real-estate sector. The Shanghai and Hong Kong indexes were down nearly 1.5% Thursday on the news.
What’s Next: The Chinese government is said to be unwilling to bail out the group, after months spent trying to cool the country’s hot property market and force it to deleverage. For now the hope is that ongoing talks with big banks and other creditors will help limit the debacle’s ripple effects.
—Pierre Briançon
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Goldman Sachs Jumps Into ‘Buy Now, Pay Later’ Business
Goldman Sachs is jumping into one of the hottest parts of the payments business, announcing a $2.2 billion plan to buy the “buy now, pay later” company GreenSky to add to its growing collection of consumer businesses under the Marcus brand.
- GreenSky focuses on financing options in the home improvement and elective surgery business, with a $9 billion loan portfolio and a network of 10,000 merchants. It has worked with 4 million consumers since its founding in 2006.
- Goldman’s online lending business Marcus rolled out in 2016 with personal loans and has since added savings accounts and automated investing. Net revenue for consumer banking rose 41% in the second quarter from last year.
- Companies like GreenSky give consumers an alternative to using a credit card to pay for a home remodel or dental procedure, with loans that can be paid off in a set period.
- Another such company, Affirm, made its stock debut in January, while Twitter founder Jack Dorsey’s Square has plans to buy Afterpay. PayPal announced a deal for a Japanese payments platform last week.
What’s Next: Goldman has been building its consumer business through acquisitions and partnerships with Apple, JetBlue, and Amazon.com, offering a mix of payment products—such as “buy now, pay later”—as well as credit lines for small businesses.
—Liz Moyer
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Electronic Arts Pushes Back Release of Popular Battlefield Videogame
Electronic Arts was the latest big videogame publisher to delay the release of one of its games, with employees working at home due to the Covid-19 pandemic.
- The company said its Battlefield 2042would be delayed until Nov. 19, from a prior expected launch in October. Battlefield is among EA’s most important franchises, generating hundreds of millions in sales with each new launch.
- EA blamed the delay on the pandemic, saying that it created “unforeseen challenges” for the company’s development teams. Developers weren’t able to return to the office, which slowed progress, EA said.
- EA stock closed down 5.7% based on rumors of a Battlefield delay. The stock rebounded a bit in after-hours trading following the company’s announcement of the revised date.
What’s Next: Though lockdowns fueled a surge in gaming, other publishers have delayed major releases. Take-Two Interactive Software has pushed back its launch of a remastered version of Grand Theft Auto V.
—Connor Smith
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Should I put my vaccination status on my résumé—and would it be wise to bring it up in an interview or only respond to my opinion on Covid-19 vaccinations when asked?
As someone who’s been working in the recruiting and talent acquisition industry for two decades, Dustin Mazanowski knows how important it is for job candidates to have “key words” on their profiles and résumés that quickly distinguish them from the pack.
That’s why he has “#vaccinated” in his LinkedIn profile.
“If it comes down to me and another person with the same qualifications and the same interview, what I wanted to do is have that extra qualification of being fully vaccinated,” the 44-year-old Chicago resident said, as his approximate four-month long search continues for a senior role in the recruiting industry.
Jacki Hall, an experienced IT project and program manager, has “Available and Vaccinated for Travel” on her LinkedIn profile. She’s searching for a managerial role that includes international business travel.
“I hoped there were hiring companies requiring travel for an IT project manager, but who were discovering that candidates were nervous about traveling,” said Hall, 57, who spends her winters in Tampa, Fla. and her summers in Minnesota. “If there is a lack of candidates wanting to travel, letting recruiters know that I am ready to get out there might give me an advantage.”
Read more here.
—Andrew Keshner
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—Newsletter edited by Liz Moyer, Mary Romano, Camilla Imperiali, Rupert Steiner
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