Business

The quest to find a vaccine for the Zika virus is on as the World Health Organization announce the virus is spreading “explosively” and the National Institute for Health officially declare the outbreak to be pandemic. The vaccine funding is already in place…and so is worldwide fear. At least three pharmaceutical companies are either considering or actively pursing programs, including giants GlaxoSmithKline GSK , and Sanofi SNY. But the company that appears to be the farthest along is a relatively small $500 million market cap biotech named Inovio Pharmacuetucals.

Less than 4 weeks ago, on January 6, we reported of the "Macy's Massacre: Thousands Fired; Guidance Slashed (Again); Weather Blamed", where in addition to the massive layoffs announced by the iconic retailer, we learned that as a result of the "historically warmer weather", the company's prior guidance was no longer valid. Here is what it said in early January:

Kuroda's decision to go full NIRP-tard is benefitting investors worldwide... in bonds. JGB yields hit record lows, 5Y Bunds are trading below the -30bps ECB deposit rate, and US Treasury yields are collapsing across the curve with 10Y below August's Black Monday lows back to 9 months lows...

US Treasury yields are plunging... 10Y broke below Black Monday lows...

And 5Y rejected the top end of its range once again...

JGB yields hit record lows...

With German and Japanese bond yields negative to 8Y and 9Y respectively...

• World shares heat up as Bank of Japan goes sub-zero (Reuters)
• Stocks Rally With Bonds as BOJ Ends Grim January on High Note (BBG)
• Japan Follows Europe Into Negative Interest Rate Territory (WSJ)
• Decision On Oil Cut Only Possible If All Exporters Agree, Russian Energy Minister Says (BBG)
• Trump overshadows Republican debate even as he sits it out (Reuters)
• Trump skips debate, wins on social media (Reuters)
• January Is Turning Out to Be the Kindest Month for Treasuries (BBG)

There is just one phrase to explain the market's reaction to last night's BOJ announcement that it would join the ECB, Sweden, Denmark, and Switzerland into negative territory: stunned shock.

As the WSJ writes, "many investors had anticipated an expansion of the bank’s asset-purchasing program this year, but few expected Japan to join the European Central Bank and central banks of Sweden, Denmark and Switzerland in negative territory on Friday."