Cheaper Chinese HPV Vaccines Turn Merck's Gardasil From Boom to Bust
By , Karoline Kan, and Amber Tong
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Merck & Co. Chief Executive Officer Robert Davis was tired of talking about China.
On an earnings call in February, he answered question after question about plunging demand for his company's vaccine against cancer-causing HPV in China, which previously powered Merck's growth.
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Forbes
2 hours ago
- Forbes
Lynk & Co 08 Test Driven: Can Super Hybrids Win In European Market?
The Lynk & Co is one of the first "Super Hybrids" to break out of China into the European market. There's a new automotive trend coming out of China. Although the country leads the world in pure battery electric vehicle (BEV) adoption, plug-in hybrids (PHEVs) have been growing fast too since the beginning of 2024. These are not the compromised cars of ten years ago, however. China is calling them 'super hybrids', and the first to arrive in Europe is the Lynk & Co 08. The big difference with super hybrids is the size of the battery they use, giving them a much larger electric range. The first plug-in hybrids offered under 30 miles of real electric range – only enough for short local urban trips. For all other kinds of journey, these cars are effectively just hybrids with pointlessly heavy batteries. There was also some evidence that they were being purchased as company cars for emissions-based tax credits and never plugged in and charged at all. For so little EV range, there wasn't much incentive to do so. Super hybrids are different. These have much larger batteries and can effectively function as battery-electric vehicles (BEVs) for all but the longest journeys. Their growing popularity in China is probably because the place is vast, and so are the cities. A super hybrid can be an EV in even a huge conurbation like Shanghai or Beijing. But China can be very rural outside its cities, and charging availability unreliable, so having fossil fuel as an alternative makes sense. Super hybrids have much larger batteries than previous PHEVs. In the Lynk & Co 08's case, a 39.6 kWh battery is included, delivering 120 miles of WLTP range. That's more than the first generation of Nissan Leaf BEV and not far off the second generation. The average European driver covers just 21 miles a day, so the 08's battery could last most of a week's regular journeys. Lynk & Co is part of Chinese giant Geely, alongside Volvo, Polestar, Zeekr and Lotus, so the technology was available in China first. The 08 was launched over there about two years ago, although the European version has some tweaks compared to the Chinese one, including stiffer suspension. 'An electric car doesn't work yet for some people,' says David Green, VP Strategy, Products and Offers, Lynk & Co. 'You don't buy the car for 98% of the year. You buy the car for 100% and in that case, people feel an EV won't work for them. Maybe the house in Italy doesn't have charging, or you're a businessperson that does long journeys, stops at night and can't charge there. These reasons create a space for a long-range PHEV. It's an electric car, but with no boundary. You can do the trip down to your small apartment in Italy that has no charger. The future will probably be fully electric. But there are some steps in the way.' The Lynk & Co 08 offers a premium interior experience. 'The 08 was launched in China almost two years ago,' says Nicolas Lopez Appelgren, CEO Europe, Lynk & Co. 'Ever since, we have gotten a lot of questions from media, but also from customers asking when the 08 would come to Europe. None of the other vehicles that we haven't brought to Europe has been asked for as much as the 08. Another reason is that electrification in Europe has clearly not gone as quickly as everybody thought five years ago. OEM after OEM has had to back down from their commitments of 100% electrified by a certain date, realizing it will take a longer time. This makes us believe that the 08 is the perfect segue into electrification. We believe very much that electrification will come, but the big question is exactly when. In the meantime, we believe that this is a very good product that will attract a lot of customers.' However, there's another reason for the increased interest in hybrids from Chinese companies. Chinese BEVs imported into Europe are subject to a tariff of up to 45.3%. However, Chinese PHEVs only receive a 10% tax, making the opportunities for profit far greater. The Lynk & Co 08 is a bit more than just a regular PHEV with a bigger battery, though. It has a new system from Horse Powertrain that has been specifically designed as a hybrid. 'It has one internal combustion engine (ICE) and two electric motors,' says Green. The ICE has a 1.5-liter capacity and is turbocharged. 'The first electric motor mainly charges up the battery. The second electric motor is mainly driving the wheels. You can blend and merge these. Then the combustion engine is mainly charging up the battery along with regeneration, but in certain circumstances, it can drive the wheels as well.' These motors work through a Dedicated Hybrid Transmission with three gears. Green claims the way the three different motors work together means the ICE can run at 43.3% maximum thermal efficiency, which means even when running on combustion the fuel usage should be frugal. On its own, the ICE delivers a decent if not incredible 51.4mpg (42.8mpg with US gallon). But most of the time you will have some battery available to increase that. The lynk & Co 08 drives like a BEV. During my test drive of the 08, it was a smooth experience like a BEV. This is also a quick car, capable of hitting 62mph in just 4.6 seconds. The three motors combine to deliver up to 585hp. It has 905Nm of torque, giving it the immediate response of a BEV and mostly drives like one. You also can barely tell if the ICE kicks in, it's so quiet – unlike the serial hybrid system of the Nissan e-POWER drivetrain. However, weighing in at 2,544kg, the 08 makes its mass known in corners, so this is more of an effortless highway and A-road cruiser than a sports SUV you can chuck around bends with abandon. You could, in theory, drive it entirely on electric power and never use any fossil fuel at all, although in that case you'd be better off with a BEV. However, while the Lynk & Co 08 does offer DC charging, this only operates at a maximum of 85kW, meaning it takes 28 minutes to go from 30% to 80% capacity. If you're taking a break somewhere with public charging that works out cheaper than fossil fuel, you might as well plug in. But the point is you don't have to worry about this, which appeals to some people. Lynk & Co's first two cars were smaller than the 08. The original 01 was another PHEV, but with a more conventional system than the 08. It has subsequently been updated to have the purpose-built Horse Powertrain system. The 02 (called the Z20 in China) is a BEV using the same architecture as the Zeekr X, Smart #1, and Volvo EX30. The 08 is a larger SUV aimed at a more grown-up family, with a comfortable amount of space in the rear for adult passengers and plenty of luggage space. There's 545 liters with the rear seats up, and 1,277 liters with them dropped forward. Talking about Lynk & Co's strategy going forward, Appelgren says: 'We believe very much in long-range plug-in hybrids. We have an electric vehicle (the 02). Let's see when we bring out the next one, but for now, we believe PHEVs will be very appealing. It is a step change from where PHEVs were a couple of years ago, which was literally a combustion engine that you coupled with an electric motor, a battery and a cord. The 08 car is developed from scratch to be a PHEV. It has a very useful range. Five to ten years ago, I thought PHEVs would be dead by now, because they were only a step into electrification. But the way they are now developing with the longer range built bespoke to be a PHEV with DC charging, they are more relevant than ever.' Unfortunately, there are no plans to bring the Lynk & Co 900 to Europe yet. That would be big departure for the 'funky and youthful' image Lynk & Co has cultivated in Europe so far. The 08 already signals a change towards a different customer. 'The D-segment SUV market is predominantly populated by premium brands,' says Appelgren. 'There are a few mainstream models in there, like the Kia Sorrento and Hyundai Santa Fe, but it's otherwise predominantly premium marques. Having an offer in that segment with the features the 08 has will help us to be established as a more premium brand in Europe. When we launched Lynk & Co with the 01, we were very heavily relying on subscription. The 08 will give us more maturity. It's a serious contender in a very serious and competitive segment.' Lynk & Co has another PHEV SUV available in China – the 900, which is strongly channeling Range Rover vibes, offering immense performance, comfort and luxury. I drove it in China and was very impressed by the power delivery, ride and interior quality. But we won't be seeing that in Europe anytime soon. 'The 900 is very nice, but it's 5.25m long,' says Appelgren. 'When cars get to five meters in Europe, it's difficult, and then adding 25 centimeters to that is very difficult. So there is no plan to bring that to Europe right now. We are a company that listens to customers, so we don't say no forever, but right now, I don't see that we can. If we would bring it, it would be an extreme niche product in Europe.' Lynk & Co reckons the 08 could be the product that breaks the brand into the mainstream. Lynk & Co is planning to enter the UK market, too. However, unlike other Geely brands it has no right-hand drive models yet. So the timeframe is not set, and this expansion will depend on whether the 08 fulfils its expectations. Priced at EUR 52,995 ($60,000) for the Core version and EUR 56,995 ($65,000) for the More version I drove, it's very reasonable for the performance, economy and equipment level on offer. 'The Lynk & Co 08 has a big chance to be our real breakthrough,' says Appelgren. 'We have good brand awareness in several markets, but with this product we will make a real difference. A lot of people will learn about the brand through the 08. The retail partners we have across Europe are thrilled about it and have high expectations on sales volumes. They believe that this will attract people that weren't acquainted with us before. The aim is for 6,000 sales in Europe in 2025, and next year, for now, we have 12,000 in the plan. Retailers think we might sell more. Supply won't be an issue. In China, they sell 10,000 of these a month.' There were over 79,000 Lynk & Co 08 cars sold in China in 2024. 'This will be the car that will put us clearly on the map.'
Business Insider
11 hours ago
- Business Insider
Raytech files to sell 30M ordinary shares
R. F. Lafferty & Co. is placement agent. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Yahoo
16 hours ago
- Yahoo
What's at stake if world's most powerful market finally buckles after decades-long U.S. debt splurge
The bond market has been getting a lot of attention lately, as the U.S. wrestles with its debt ceiling and Congress works on passing a big tax-and-spending bill. The U.S. has the world's deepest and largest bond market, with its roughly $29 trillion of outstanding Treasurys representing an IOU to be paid by the government to its creditors. The interest rate, or yield, on that debt can fluctuate based on how lenders view the country's creditworthiness. My husband and I bought my mother-in-law a condo. Upkeep costs $2,800 a month. She refuses to get a roommate. My new husband gave me a contract and told me to 'sign here' — but I refused. It was the best decision of my life. 'I prepaid our mom's rent for a year': My sister is a millionaire and never helps our mother. How do I cut her out of her will? My daughter's boyfriend, a guest in my home, offered to powerwash part of my house — then demanded money I help my elderly mother every day and drive her to appointments. Can I recoup my costs from her estate? Amid heightened focus over the large U.S. deficit and the borrowing that will help fund it, JPMorgan Chase & Co. JPM Chief Executive Jamie Dimon on Friday warned that the bond market will crack at some uncertain point down the road — and create panic. So-called bond vigilantes are back, and Dimon said he wasn't sure how long it may be before a crisis emerges. The deficit is 'massive' and too much spending will one day lead to a 'day of reckoning,' said Jeffrey Sherman, deputy chief investment officer at DoubleLine, in a phone interview. 'The bond market one day will say, 'You can't borrow money,'' at least not at these levels, he noted. To help fund its deficit, the U.S. government sells Treasurys to domestic and foreign investors. 'We can't just continue to spend, spend, spend and just assume that the markets will take it and the world will buy our bonds,' said Sherman. 'The big crack would be a failed auction,' in which the Treasury Department comes to the market to sell bonds but investors don't show up, he said. Beyond warning shots, 'so far you haven't really seen anything that's anywhere resembling that,' according to Sherman. But the potential for weaker demand for Treasurys risks sending yields higher, raising the cost of borrowing for the government, companies and Americans. Bond investors may push back for more yield in the Treasury market should they view disconcerting fiscal policies becoming a larger, more pressing problem. While worry over the unsustainable trajectory of U.S. spending and debt levels isn't new, 'a sharp visceral reaction' in the bond market might capture the attention of policymakers, according to Sherman. Interest rates in the bond market have been 'whipping around' lately, partly due to tariffs, yet yields have generally kept within trading range since around late 2022, he said. To his thinking, 'you'd be at new highs in yields' if the bond market was signaling 'it's really a big problem.' Long-term rates climbed in May, but the 10-year Treasury yield remains below levels seen in January. The yield on the 30-year Treasury bond BX:TMUBMUSD30Y fell 9.6 basis points Wednesday to 4.887%, while the 10-year Treasury rate BX:TMUBMUSD10Y dropped 9.5 basis points to 4.364%, according to Dow Jones Market Data. Bond yields and prices move in opposite directions. Investors have been tracking the approach of the 'X date' this year — the date when the Treasury Department would run out of cash to pay all its bills on time unless Congress acts to lift the U.S. debt ceiling. Congress, meanwhile, is working on a legislative package on spending and tax measures that includes a provision on increasing the federal government's debt limit. That legislation, known as the One Big Beautiful Bill Act, has been passed by the House of Representatives and now needs Senate approval. In an interview aired Sunday on CBS's 'Face the Nation,' Treasury Secretary Scott Bessent declined to specify a precise X date but said the U.S. is 'never going to default.' Last month, in a May 9 letter to Congress, Bessent had urged lawmakers to lift or suspend the debt ceiling by mid-July to 'protect the full faith and credit of the United States.' Sherman agreed that the U.S. will never default on its debt, but warned that does not mean that bond investors won't push rates on Treasurys meaningfully higher should government policies or behavior in Congress continue to damage the 'brand of America.' The Congressional Budget Office on Wednesday estimated the budget bill would add $2.4 trillion to the deficit over the next decade. Investors in the U.S. exchange-traded-fund industry seemed hungry for bonds in May. Bond-focused ETFs saw their third-largest monthly haul ever in May at $37 billion, with inflows spanning across areas such as government and corporate debt as well as mortgages, according to State Street Global Advisors. That put bond ETFs on path for 'a record-breaking year of more than $360 billion of inflows,' said Matthew Bartolini, head of Americas ETF research at State Street, in a note. 'Total bond ETF assets are now $1.95 trillion,' and could surpass $2 trillion for the first time by mid-July if flows remain 'on trend' without a material weakening of returns, he said. Looking within the category of government debt, Bartolini found that ETFs targeting long-term bonds of more than 10 years pulled in almost $5.7 billion last month, according to his note. Intermediate-term bond ETFs saw $1.8 billion of May inflows, while short-term government bond ETFs had outflows of $3.2 billion last month as 'investors lightened up on their cash-like allocations.' Although May demand for long-term Treasurys seems like 'a bullish signal,' Bartolini cautioned that it could also reflect shorting activity, or traders betting that prices of those bonds may fall. 'Long-term U.S. Treasury bond ETFs have seen a rise in short interest all year, and ETFs can be bought, lent out and then shorted,' he wrote. 'A bearish bet on long-term U.S. Treasurys is not too farfetched,' considering fiscal deficit concerns recently underscored by Moody's decision to downgrade U.S. government debt as well as other worries such as a global trade war sparked by tariffs, according to Bartolini. Investors have been closely watching U.S. trade policy, as they worry tariffs risk slowing the economy and increasing inflation. Sherman said he sees uncertain policy on global trade adding to 'a push and a pull' on Treasury yields — with fears over slower growth pushing them lower, and inflation and potential fiscal issues pulling them upwards. Among the most recent trade developments, President Trump this week signed an order imposing 50% tariffs on steel and aluminum that took effect on Wednesday. The White House has announced a wide-ranging set of tariffs this year — including large levies on countries that were rolled out on April 2, but subsequently paused as the U.S. negotiates trade deals globally. The first 90-day pause is set to expire around July 9. Read: Trump says 'very tough' Xi is 'extremely hard to make a deal with' 'Don't be a risk seeker right now,' said Sherman, who is co-portfolio manager of the DoubleLine Opportunistic Core Bond ETF DBND. For example, investing in corporate credit that has a short duration of a couple years and 'can get through the cycle' is preferable to 'buying something speculative over 10 years,' he said. As for Dimon's recent bond-market warnings, the timing of a potential tipping point that might stir up panic as bond vigilantes keep watch over the U.S. fiscal situation remains uncertain. Asked about U.S. debt and deficits during an interview aired Monday on Fox Business Network's 'Mornings with Maria,' Dimon said it's a 'big deal' and that one day the bond market is going to have 'a tough time.' But, he reiterated: 'I don't know if it's six months or six years.' 'The situation is extreme': I'm 65 and leaving my estate to only one grandchild. Can the others contest my will? Never mind the tariffs and tantrums. The 'dual equity pain trade' means new highs for stocks. S&P 500 changes are imminent. Robinhood and these other stocks could join the index. 10 nuclear stocks expected to rise as much as 94% after Meta-Constellation deal 'I was pushed out of her life when she was 18': My estranged daughter, 29, misuses drugs. Should I leave her my Roth IRA? 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