“the first stage, when only a few unusually perceptive people believe things will get better, the second stage, when most investors realize that improvement is actually taking place, and the third stage, when everyone concludes things will get better forever.” ― Howard Marks

1. Germany Locks Down Again — Germany will lock down its economy during the coming Easter holiday as it tries to control another surge in coronavirus cases. In the U.S., new Covid-19 case data have decoupled from hospitalizations—in the best possible way. About 40,000 Americans are currently hospitalized with Covid-19 symptoms, down from about 47,000 a week ago. U.S. hospitalizations were north of 130,000 at the beginning of the year. Deaths have been declining too.
2. U.S. Officials Raise Doubts About AstraZeneca Vaccine Trial — the National Institute of Allergy and Infectious Diseases said in a statement that the Data Safety Monitoring Board, an independent body overseeing the Covid vaccine trials, had informed it that the U.K.-based pharmaceuticals group had provided outdated information to U.S. regulators. The news throws into doubt AstraZeneca’s ability to obtain swift approval for emergency use authorization by the U.S. regulator. The vaccine maker published the results of its U.S. trial, showing 79% efficacy against Covid-19 symptoms and 100% efficacy in preventing its most serious developments. The AstraZeneca vaccine, developed with Oxford University, was approved three months ago in the U.K. and Europe and has been the most widely used jab in the world since then.
It has been marred by safety concerns raised by several European governments, and EU officials’ anger over the company’s inability to fulfill its supply contract with the European Commission. Both the U.K. and EU medicines regulators insisted last week after new reviews that the vaccine was safe and should continue to be used.
3. Biden Advisers to Propose $3 Trillion Public Investment Plan — President Joe Biden’s economic advisers are in the process of putting together a multipart $3 trillion plan to boost spending on infrastructure and education, fight against climate change and reduce inequalities. The first part of the package would focus on infrastructure projects Biden touted in his “Build Back Better” plan that was released during his presidential campaign. That plan included funding for roads and bridges as well as climate-change initiatives.
The second part of the proposal would focus more on education and people. It would include extending the expanded child tax credit, tuition-free community college, universal prekindergarten, and a national paid leave program.
The Biden team is expected to recommend breaking up the plan to help it pass more quickly, according to the New York Times, which first reported details of the legislative strategy. Some White House officials believe the first set of proposals might be more appealing to Republicans. The strategy is still preliminary and under discussion.
Still, the proposal is likely to be fiercely debated, notably over its cost and eventual financing. The proposal would come days after Biden’s $1.9 trillion fiscal stimulus package was approved by Congress.
4. Intel’s New CEO Is Spending $20 Billion to Double Down on Chip Manufacturing — Intel CEO Gelsinger said that Intel planned to spend $20 billion to build two manufacturing plants in Arizona. The decision to do so comes amid increased U.S. government interest in securing domestic semiconductor manufacturing supply. Intel also said it plans to launch a stand-alone business unit called Intel Foundry Services that will offer advanced manufacturing capabilities to companies that design chips but don’t fabricate the semiconductors themselves.
Gelsinger, who assumed the CEO duties Feb. 15, said Intel plans to expand its use of third-party manufacturing plants—including for products at the core of Intel’s business, such as chips for personal computers and data centers—beginning in 2023. Some investors had speculated that Intel might leave the chip-making side of the business altogether.
5. New York Gets Ready to Legalize Marijuana for Recreational Use — New York is poised to join 14 other states that have already legalized the sale of recreational marijuana when lawmakers take up the measure next week. Under the proposed deal, anyone 21 and older could possess up to three ounces of pot as well as grow marijuana for personal use. A new Office of Cannabis Management would issue licenses to grow or sell cannabis. Local jurisdictions could also allow businesses to let people consume weed on site.

The week ahead — Economic data from Econoday.com: