Megawide, JV partners sign P2.9-B Malolos-Clark railway deal

May 5, 2021 | 12:05 am

MEGAWIDE Construction Corp. announced on Tuesday that it recently signed a subcontracting agreement with Hyundai Engineering & Construction Co., Ltd. and Dong-ah Geological Engineering Co. Ltd. to supply ready-mix concrete for the package 1 of the Philippine National Railways (PNR) Clark Phase 2 (Malolos-Clark) railway project.

The company said it signed the agreement with its joint venture (JV) partners on April 21.

“The P2.9-billion contract provides for the installation and operation of concrete batching plants and supply of ready mix concrete to the project,” the company said in a disclosure to the stock exchange.

Megawide will put up two mobile batching facilities with rated capacities of 120 and 80 cubic meters per hour.

The company said in April its batching plant, formworks, and construction equipment and logistics businesses were preparing to supply concrete materials and provide support facilities to the consortium of Hyundai Engineering & Construction, Dong-ah Geological, and Megawide after winning a “stringent” bidding process.

“The combined contracts for the services is more than P3.1 billion — P2.9 billion for the supply of concrete materials, P152 million for the provision of temporary facilities, and another P59 million for the initial equipment supply contract,” Megawide said in a news release.

“The 54-kilometer PNR Clark Phase 2 (Malolos-Clark), which will feature the country’s first airport railway express service, forms part of the 148-kilometer NSCR Project, stretching from Laguna to Clark, Pampanga. The other two segments are the PNR Clark Phase 1 (Tutuban-Malolos) and PNR Calamba (Solis-Calamba),” the company noted. — Arjay L. Balinbin

Gov’t fully awards 5-year bonds as rate declines

May 5, 2021 | 12:05 am

THE BUREAU of the Treasury made a full award of the five-year bonds it offered on Tuesday as demand for government debt remained strong. — BW FILE PHOTO

THE GOVERNMENT made a full award of the reissued five-year Treasury-bonds (T-bonds) it auctioned off on Tuesday and opened the tap facility to raise another P10 billion via the tenor on the back of strong demand.

The Bureau of the Treasury (BTr) borrowed P35 billion as planned on Tuesday via its offer of reissued five-year bonds, which have a remaining life of four years and 11 months.

Total bids reached P75.716 billion, making the offer more than two times oversubscribed. To accommodate the excess demand, the Treasury opened the tap facility to raise another P10 billion from the papers.

The five-year notes fetched an average rate of 3.295%, slightly lower than 3.3% coupon quoted when the papers were first offered on April 6, but a tad higher than the 3.255% yield for the tenor at the secondary market, based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website before the auction.

“[The offering saw] good participation, with tenders more than twice our offer and rates within secondary level,” National Treasurer Rosalia V. de Leon told reporters via Viber.

Ms. De Leon added that the robust demand seen yesterday may have been caused by market expectations of another rate cut by the Bangko Sentral ng Pilipinas (BSP) as the coronavirus pandemic continues to cloud the country’s economic outlook.

The central bank’s policy-setting Monetary Board will have its next review on May 13.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno has said the central bank will remain supportive of the country’s recovery and will ensure that its exit from easy monetary policy would not cause economic risks.

Last year, the central bank slashed borrowing costs by 200 basis points, which brought down the key policy rate to a record low of 2%.

Meanwhile, a bond trader said the market was taking positions ahead of the release of April inflation data on Wednesday.

Headline inflation could have accelerated again in April to go beyond the annual target for the fourth consecutive month due to high food and transport prices, according to analysts.

A BusinessWorld poll last week of 17 analysts yielded a median estimate of 4.7% for April headline inflation, near the upper end of the 4.2% to 5% estimate given by the BSP for the month.

If realized, inflation would be faster than the 4.5% print in March as well as the 2.2% a year earlier. It would also mark the fourth straight month of inflation overshooting the 2-4% target set by the BSP, and the quickest print since the 5.1% in December 2018.

Analysts said higher meat prices likely fueled a faster increase in the consumer price index after the lifting of the 60-day price cap on selected pork and chicken products on April 8, coupled with elevated transport costs due to the continued increase in oil prices.

The central bank expects inflation to average at 4.2% this year, faster than the 2.6% in 2020 and beyond the 2-4% target. By 2022, the BSP sees headline inflation easing to 2.8%.

Ms. De Leon said investors also expect headline inflation to go back to BSP’s 2-4% annual target range next year, making investors willing to put their money in slightly longer bond tenors.

The BTr plans to raise P170 billion from the local bond market this month: P100 billion via the weekly offering of Treasury bills and P70 billion in T-bonds to be auctioned off fortnightly.

The government is looking to borrow P3 trillion this year from domestic and external sources to help fund a budget deficit seen to hit 8.9% of gross domestic product. — B.M. Laforga

RBA lifts outlook, to review YCC in July

May 5, 2021 | 12:04 am

AUSTRALIA’s central bank upgraded its economic outlook and said policy makers will review its bond programs in July, while maintaining interest rates will remain at emergency levels until at least 2024.

Reserve Bank of Australia (RBA) Governor Philip Lowe kept the cash rate and three-year yield target at 0.10% on Tuesday. He said the board will decide at its July 6 meeting on a third tranche of quantitative easing and whether to shift yield curve control (YCC) to target the November 2024 maturity from the current April 2024 bond.

“Despite the strong recovery in economic activity, the recent CPI data confirmed that inflation pressures remain subdued,” Mr. Lowe said in a statement. “The board is prepared to undertake further bond purchases to assist with progress toward the goals of full employment and inflation. The board places a high priority on a return to full employment.”

The RBA’s decision to stand still comes a week before the government delivers its annual budget that’s expected to include targeted spending to help boost jobs and spur a faster recovery. Treasurer Josh Frydenberg has lined up behind Mr. Lowe’s goal of pushing the economy to full employment as quickly as possible to rekindle inflation.

Mr. Lowe said the bank’s central scenario for GDP growth was revised up, with an expansion of 4.75% now expected this year and 3.5% over 2022. Unemployment is expected to continue to decline to around 5% at the end of this year and around 4.5% at the end of 2022.

Australia’s jobless rate has already declined almost 2 percentage points from its pandemic-peak in July last year. The RBA estimates it probably needs to fall closer to 4% before wage growth accelerates.

The central bank releases its quarterly Statement on Monetary Policy with the full suite of economic forecasts on Friday, and Deputy Governor Guy Debelle is due to speak in the mining-centered state capital Perth the night before that.

“Moving in July means this week’s quarterly SoMP will be the last one before” the YCC and QE3 decisions, said Ben Jarman, a senior economist at JPMorgan Chase & Co. in Sydney. “So the staff’s forecasts for wages — and the upside scenario — in that document will be important.”

While Australia has experienced a sharp V-shaped recovery, the RBA shows no sign of following the Bank of Canada in early withdrawal of stimulus. Instead, like the Federal Reserve and European Central Bank, it will keep pumping monetary support until the economy is fully repaired. It would also like to trail any move by the US to avoid unnecessary exchange rate appreciation.

“The RBA continues to mirror the US Fed — acknowledging an improved outlook but arguing that further progress is required,” said Kellie Wood, fixed income portfolio manager at Schroder Investment Management. “Lowe is on a mission to see how tight the labor market can get before inflation picks up meaningfully.”

The one area likely causing a headache for Mr. Lowe is the property market. Housing has surged in response to record low borrowing costs, government assistance and a lack of supply. Property prices rose 7.8% in the past year, and while similar increases have occurred across the globe, a return to boom times Down Under threatens to swell an already worrisome pile of household debt.

“The bank will be monitoring trends in housing borrowing carefully,” the governor said today. “It is important that lending standards are maintained.”

The government’s budget next Tuesday is likely to show an improved bottom line due to better employment outcomes that boost the tax take and cut welfare costs. It’s similarly benefited from the high price of iron ore, the nation’s largest export. The steelmaking ingredient is currently trading at around $190 and Citigroup, Inc. is forecasting an extended shortfall in the commodity and expects new highs of $200 to be hit over the next few weeks. — Bloomberg

Golden Globes group floats changes to address diversity, ethics complaints

May 5, 2021 | 12:04 am

LOS ANGELES — The board of the Hollywood Foreign Press Association (HFPA), the group that hands out the annual Golden Globe awards for television and film, proposed several changes on Monday to address criticism over its membership’s diversity and ethics.

In a letter to members, the HFPA board suggested several steps to diversify its roster, including hiring a chief diversity officer, putting emphasis on recruiting Black journalists and widening the pool of potential applicants. The board also proposed adding at least 20 new members in 2021 and boosting its ranks by 50% over the next 18 months. The changes must be approved by current members and will be discussed at the group’s next meeting, the letter said.

“We have created a roadmap for transformational change in our organization,” the board said.

The moves follow an investigation published in February by the Los Angeles Times that noted there were no Black people among the 87-member group of foreign entertainment journalists who make up the HFPA.

The Los Angeles Times also raised long-standing ethical questions over the close relationships between the HFPA and movie studios that may influence the choice of Golden Globe nominees and winners. The controversy overshadowed the Golden Globes ceremony in February, one of the major Hollywood award shows leading up to the Oscars in April.

The HFPA board said it developed the recommendations with input from outside advisers and inclusion experts as well as media partners. Comcast Corp.’s NBC network broadcasts the Golden Globes ceremony each year and welcomed the plan as “an encouraging step in the right direction.”

“It outlines the thorough reforms that are critical for our continued relationship,” NBC said.

Among other proposals, the board urged that HFPA members stop accepting promotional items from film and TV studios and that the group post a public list of members with links to their work.

“We want to be clear — these outlined changes are just the first steps in the long journey ahead,” the letter said. “We also know that in this existential moment for our association, change is difficult and sometimes scary.” — Reuters

MPIC, Meralco boost their sustainability programs

May 5, 2021 | 12:04 am

METRO Pacific Investments Corp. (MPIC) and its unit Manila Electric Co. (Meralco) are expanding their sustainability targets, including adhering to global standards and shifting to cleaner technology.

Expansion targets of the companies’ sustainability agenda were shared with participants of a recent virtual forum on multi-sector integration through environmental, social, and governance (ESG) principles for green economic recovery.

The online event was organized by Stratbase Albert del Rosario Institute (ADRi) in partnership with the Philippine Business for Environmental Stewardship (PBEST).

June Cheryl Cabal-Revilla, chief finance and chief sustainability officer of MPIC, said: “Our mantra is sustainability more than just compliance, and we’ve been putting this in all the things that we do. We’ve up the ante and we’ve actually committed to adhere to global sustainability standards and frameworks.”

Raymond B. Ravelo, Meralco vice-president and chief sustainability officer, said the power distribution utility had started to gain momentum towards “cleaner and greener energy.”

The forum gathered environment advocates from the government, business groups and civil society, which sought stronger collaboration between the public and private sectors in addressing climate change and urgent environmental issues.

“In the next five years, we look to ‘greenify’ our supply portfolio by securing 1,500 megawatts (MW) of clean energy contracts. As well through our company MGreen, which is our platform for investments in the renewable energy space, we will build 1,500 MW also in renewable energy projects through 2027,” Mr. Ravelo said.

Meanwhile, Ms. Cabal-Revilla said that in terms of MPIC’s carbon footprint, “we’ve stayed flat at 460 metric tons.”

“For PLDT, we’ve done marine protection, mangos preservation, and reforestation as nature is the foundation for economic growth. It is our responsibility to restore and manage the natural resources that we have,” she added.

Dr. Carlos Primo David (PhD), PBEST convenor, encouraged the private sector to expand their sustainability efforts, work with the government, and directly address the sustainability of the country and the planet.

Ludwig Federigan, executive director of the Young Environmental Forum, said, “CSOs and NGOs play a major role in key areas such as information collection, dissemination, and analysis, policy development consultation, policy implementation, and lastly, assessment and monitoring.”

Renato Redentor Constantino, executive director of the Institute for Climate and Sustainable Cities, said: “Climate issue is the biggest that we have ever faced. But it is also equally important for the people to address challenges related to poverty, health, jobs, and hunger.”

ADRi President Dindo C. Manhit said that the government, “with the help of civil society’s lenses, should set the much-needed responsive policies and frameworks that are conducive to doing business while ensuring compliance with ESG principles.”

EastWest Bank not looking to sell soured assets via FIST Law

May 5, 2021 | 12:03 am

EAST WEST Banking Corp.’s chief executive said the lender is “not very keen” on selling bad assets as its financial position remains healthy. — BW FILE PHOTO

EAST WEST Banking Corp. (EastWest Bank) President and Chief Executive Officer Antonio C. Moncupa, Jr. said the bank is “not very keen” on availing of the provisions of the Financial Institutions Strategic Transfer (FIST) Law as they remain in a stable position.

“My view is that the banking industry remains resilient and that it does not have that urgency [to offload bad assets as was seen] in 1997. Personally, for EastWest, I’m not very keen on it,” Mr. Moncupa said in an interview with ANC on Tuesday.

Republic Act No. 11523 or the FIST Law was signed in February. It allows financial institutions to sell their nonperforming assets (NPAs) to FIST corporations, giving lenders a chance to clean up their balance sheets. In turn, FIST corporations will be given tax perks.

“That really depends on your position but I think we’re in a really good position, the industry as a whole. That’s very positive that there’s less need for that (selling bad assets),” Mr. Moncupa said.

Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno has said the FIST will serve as a “fallback” for lenders as the banking industry’s fundamentals remain solid, noting the sector’s capital adequacy ratio remains well above the minimum regulatory requirement.

The Special Purpose Vehicle Act, which was a similar measure during the Asian Financial Crisis in 1997, was passed in 2002. Mr. Diokno said banks sold around 30% of their NPAs to asset management companies through the measure. He noted that 30% of banks’ NPAs as of Dec. 31 was equivalent to about P152 billion.

Mr. Moncupa also said banks are seeing lower demand for consumer loans.

“Households are very, very careful protecting what they have and trying to save because I’d like to think there are still remaining uncertainties with regards to this virus,” he said.

CITIGROUP
Meanwhile, Mr. Moncupa said they need more data to see if they would join other local banks in their intent to acquire the retail portfolio of Citigroup, Inc. in the Philippines. The US-headquartered banking giant has announced it would leave retail banking in 13 markets in Asia-Pacific, including the Philippines.

“I think any bank in retail banking will pause and try to see the opportunity. They’re one of the top credit card issuers, healthy wealth management for mass and emerging affluent, and good deposit base,” Mr. Moncupa said.

Officials from Bank of the Philippine Islands and BDO Unibank, Inc. last month said they are interested in acquiring Citi’s local retail base.

EastWest Bank’s net earnings increased by 4.8% to P6.5 billion in 2020 on the back of high interest income and strong trading games.

The Gotianun-led lender’s shares closed at P9.55 apiece on Tuesday, down by 28 centavos or by 2.85% from its previous finish. — L.W.T. Noble

Twitter to introduce ticketing for audio Spaces feature

May 5, 2021 | 12:03 am

TWITTER, Inc. said on Monday it will introduce a new feature to let users charge admission to their live audio chat rooms in its Spaces feature, as the social media company seeks to court more content creators.

Until now, only some users who were part of Twitter’s pilot testing were able to host their own Space. Starting on Monday, any user with at least 600 followers can be a host, the company added. Twitter introduced Spaces last year to compete with viral app Clubhouse, which jump-started the audio chat trend and attracted celebrities and entrepreneurs, but remains limited as an invite-only app.

Over the coming months, Twitter said a limited group of users will be able to sell tickets to access their Spaces conversations, and will determine their own pricing and how many tickets to make available. Hosts will keep the majority of the revenue, while Twitter will earn a “small amount,” the company added.

The move is part of Twitter’s effort to be a bigger player in the “creator economy,” as influencers and independent writers are increasingly earning money from their content on platforms like YouTube or Substack.

Facebook last month announced its own plans for audio chat features, and also said it would allow listeners to tip hosts. — Reuters

Localized psychology scales reveal more anxious and depressed Filipinos

May 5, 2021 | 12:03 am

By Patricia B. Mirasol

A DEPRESSION, anxiety, and stress scale that was translated into several Philippine languages revealed that the pandemic has had a larger psychological impact on Filipinos: the translated scales show a higher incidence of severe anxiety as compared to a similar study conducted solely in English.

The importance of psychological assessment tools in local languages — considering the country’s linguistically diverse society — was discussed in an April 30 webinar organized by the National Academy of Science and Technology (NAST).

The translated scales could help increase mental health awareness, and make the allocation of mental health services more efficient, according to academician Allan Benedict I. Bernardo, a member of NAST’s Social Sciences Division. In the said webinar, he presented his team’s work translating the Depression, Anxiety, and Stress Scales (DASS-21) into Tagalog-based Filipino, Cebuano, Ilocano, Hiligaynon, and Kapampangan.

The DASS-21 Scale, developed in 1995 by Syd H. Lovibond and Peter F. Lovibond at the University of New South Wales, provides therapists with self-reported, objectively-rated information on a client’s current levels of emotional functioning.

AGITATION, ALIGAGA, ATBP.
The translated scales showed higher incidences of extremely severe depression and anxiety as compared to an online English survey on the psychological impact of the pandemic in the Philippines (published in the December 2020 Journal of Affective Disorders).

The English survey reported that 4.2% of the respondents expressed severe to extremely severe depression. Using the translated scales, the number increased to 15.7% (with 6.9% of respondents expressing severe depression and 8.8% expressing extremely severe depression).

The same increase was seen in results for severe to extremely severe anxiety. The English survey reported 11.1% of respondents falling into this category while the translated scales reported 19% (6.9% said they were experiencing severe anxiety; 12.1%, extremely severe anxiety).

Mr. Bernardo added that the sample obtained by the authors of the study using the English survey, conducted from March 28 to April 12, 2020, was a highly educated one and not representative of the Philippine population. “This was partly why our group was motivated to translate the DASS-21 into different Philippine languages,” said Mr. Bernardo.

The localized DASS-21 survey was done between May to September 2020 and across a bigger and more geographically diverse sample, albeit one that was still non-representative of the whole population.

Among the challenges encountered by Mr. Bernardo and his team were translating symptoms into the local idiom. A phrase like “excessive rapid breathing” is difficult to translate in a conversational manner — emphasis on “conversational” — as is a word like “agitation,” which translates to aligaga in Tagalog. “But imagine if that word was given to a college student,” said Mr. Bernardo. “They’d wonder what that meant.”

The NAST academician shared several examples of his team’s translations in Cebuano:

“I experienced breathing difficulty (e.g., excessively rapid breathing, breathlessness in the absence of physical exertion)” was translated as “Nakasinati ko ug kalisod sa pag-ginhawa (pananglitan, paspas akong pag-ginhawa, dili kaginhawa bisan walay pisikal nga gibuhat).”

“I found myself getting agitated” was translated as “Nakabantay ko na dali ra ko masuko o saputon.”

“I felt downhearted and blue” was translated as “Nakabati ko ug kaguol ug ma-oy.”

COVID-SPECIFIC ANXIETY
A new Coronavirus Pandemic Anxiety Scale (CPAS-11) in English that has been validated as a screening tool was also presented during the April 30 webinar. The scale, intended to pick up specific symptoms beyond the symptoms of general anxiety, revealed a percentage of severe anxiety even higher than the ones reported in the Journal of Affective Disorders and the DASS-21 local translations: 29.19%.

The CPAS-11 study noted, however, that its sample was not a nationally representative one, and should not be interpreted as a national prevalence rate.

Further validation studies are being done on the newly developed scale. The different language translations of the DASS-21, meanwhile, will be available in the HopeLab@DLSU website after the validation studies are published.

Mr. Bernardo cautioned against misinterpreting scores and taking the results of these tools as a diagnosis, as professionals rely on a more complex system of assessment for diagnosis.

“There are some levels of stress that are normal. If you’re living a life without stress, then that’s kind of strange, if you ask me,” he said. “But if these symptoms become severe or sustained over time, then we get concerned about the health of the individual.”

Aboitiz unit participates in Austal Philippines’ FSTR installation

May 5, 2021 | 12:03 am

ABOITIZ Construction, Inc. on Tuesday said it had installed and fabricated 20 tons of pillars to the 109-meter, high-speed FSTR ferry delivered by Austal Philippines Pty. Ltd.

The aluminum vessel is said to be the largest-ever to be constructed in the country. It can transport up to 1,200 passengers and some 404 vehicles.

“Our involvement in this project with Austal proves our commitment to delivering quality outputs,” Aboitiz Construction President, Chairman, and Director Anton Mari G. Perdices said in a statement on Tuesday.

The 20-ton pillars installed by the Aboitiz unit consisted of hollow tubes that support the ferry’s mezzanine.

Aboitiz Construction is also working with Austal’s for its other ferries, including the construction of additional mooring bitt and fabrication of pillars and floating docks.

The two have been collaborating since 2011 for Austal’s construction needs, which include the expansion and upgrade of its factory facilities.

“We are optimistic to demonstrate our expertise and further elevate our mission to build a better future,” Mr. Perdices said.

Aboitiz Construction is of the Aboitiz group’s subsidiaries and is a privately-held company.

Shares of the listed holding firm Aboitiz Equity Ventures, Inc. closed unchanged at the stock market on Tuesday at P35.75 each. — Keren Concepcion G. Valmonte

Marvel rallies superhero fans to assemble at movie theaters

May 5, 2021 | 12:02 am

LOS ANGELES — Walt Disney Co.’s Marvel Studios on Monday encouraged superhero fans to return to movie theaters, a show of support for pandemic-battered cinemas trying to stage a comeback amid competition from streaming services.

“See you at the movies,” said a three-minute-long trailer designed to stir excitement for 10 upcoming Marvel films including Black Widow, Eternals, and a Black Panther sequel.

The video also showed footage from inside a theater of fans reacting to the decisive battle scene in Avengers: Endgame in April 2019.

The future of movie theaters is uncertain after extended closures during the COVID-19 pandemic. Independent operators and large chains including AMC Entertainment, Cineworld Plc and Cinemark Holdings, Inc. hope that blockbusters from Marvel and others will help lure audiences back.

At the same time, Disney and other media companies are investing billions to compete with Netflix, Inc. and provide consumers with plenty of options to stream at home.

Disney is offering Black Widow for a $30 charge through the Disney+ streaming services on the same day it debuts in theaters in July.

No similar plans have been announced for any of the nine other upcoming films that Marvel previewed on Monday. The movies are scheduled for release over the next two years. — Reuters

DiskarTech app rolls out new offerings for OFWs, teachers

May 5, 2021 | 12:02 am

RIZAL COMMERCIAL Banking Corp.’s (RCBC) DiskarTech app has launched new services to target several groups, including overseas Filipino workers (OFWs), teachers and small businesses.

The platform will offer collateral-free credit for OFWs through its loan marketplace this May, which will allow migrant workers to borrow up to P500,000, RCBC said in a statement. The OFW loans will have a one-year payment scheme.

DiskarTech also teamed up with the Gabay Guro mobile app of the PLDT-Smart Foundation to offer basic deposit account and insurance products that will be accessible to teachers. The Gabay Guro app originally allowed teachers to schedule classes and attend training to boost their online teaching skills.

“Teachers can now avail of the financial products of DiskarTech without even leaving their houses. It is a one-stop shop. It’s like you guys going to school and then going to work and then going to the bank at the same time,” Gabay Guro Chairman Chaye C. Revilla was quoted as saying.

Meanwhile, DiskarTech also unveiled a new microinsurance scheme for small businesses, which includes fire cash assistance in its coverage.

DiskarTech has also partnered with the Department of Education and the Department of Labor and Employment to offer webinars on financial inclusion, as well as financial health and management for various labor groups, including teachers.

The app was launched in July last year and offered basic deposit accounts with no initial deposit or maintaining balance requirement. It also offers bills payment and a loan marketplace where credit will be provided by lending platforms.

RCBC booked a net profit of P5 billion in 2020, down by 7% from a year earlier, as the bank beefed up its loan loss reserves amid the crisis.

The bank’s shares closed unchanged at P18.28 apiece on Tuesday.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — L.W.T. Noble

What are the blood clots being caused by some COVID-19 vaccines? Four questions answered

May 5, 2021 | 12:02 am

TWO VACCINES — the Johnson & Johnson vaccine in the US and the AstraZeneca vaccine in Europe — have been linked to an increased chance of a rare type of blood clot. Researchers are investigating what causes these clots and are starting to propose some answers. Dr. Mousumi Som, a professor of medicine at Oklahoma State University, explains what these rare clots are and how they are forming after people get vaccinated.

What are the blood clots?

A small number of people in the US have developed dangerous blood clots after receiving the Johnson & Johnson vaccine. The clots have mostly been occurring in people’s brains and, paradoxically, are associated with low platelet counts.

Normally, platelets help a person stop bleeding when they get injured. If you get a cut or have an injury, the body responds by sending platelets which act as a temporary patch. The patch attracts other platelets and they stick together to stop blood loss. Since platelets normally help the clotting process, this combination of low platelets and extreme clotting makes these clots medically unusual.

These specific types of clots — called cerebral venous sinus thrombosis — although rare, affect around two to five people per million per year and are potentially life-threatening without treatment. Vaccines aren’t normally a trigger for this kind of clot.

Who is having these clots?

As of April 24, out of the 8 million people vaccinated with the Johnson & Johnson vaccine in the US, about 16 people have developed these blood clots. The clots occurred from six to 13 days after immunization, and the majority were in women between the ages of 18 and 48.

On April 26, news reports indicated that at least one man had developed a clot. The man is in his 30s and was hospitalized from a clot in his leg about two weeks after receiving the Johnson & Johnson vaccine.

Health officials in Europe have also reported that the AstraZeneca vaccine — a coronavirus disease 2019 (COVID-19) vaccine authorized and approved in Europe but not in the US — has caused about 200 cases of low-platelet clotting. Importantly, both the Johnson & Johnson vaccine and the AstraZeneca vaccine use a type of harmless virus called an adenovirus to deliver instructions to the human body on how to build an immune response to COVID-19. This is called a viral vector vaccine.

The fact that the both vaccines use a viral vector and both are associated with blood clots has led many health experts to think that the clotting issues of the two vaccines may share the same mechanism.

Why are women getting more clots than men?

At this point, doctors still don’t know what makes women more susceptible than men, nor what puts a person at risk for these clots. These clots can occur, though rarely, in people who don’t get a vaccine. Scientists know that women are three times more likely to develop this type of clot without receiving the vaccine. Many researchers think this is because of birth control or other hormonal replacements that women take.

Why might the vaccines be causing blood clots?

Researchers believe that this specific low-platelet clotting is similar to a reaction some individuals get when they receive a blood thinner called heparin, called heparin-induced thrombocytopenia.

Doctors sometimes use heparin to thin a person’s blood in the case of a heart attack or a blood clot when blood flow needs to be reestablished. But some people experience the opposite reaction, and their blood ends up clotting more instead. This happens because the body triggers an unwanted immune response after receiving heparin.

In these patients, heparin attaches to a product released from platelets called platelet factor 4. When this happens, the immune system considers the combined platelet factor 4 and heparin a problem, so it creates antibodies in response. These antibodies attach to the heparin and platelet factor 4 complex, and the body — which now thinks it needs to repair an injury — causes more clotting while using up even more platelets. This results in the low platelet count seen in these patients.

When doctors have looked at the blood of patients who developed clots after receiving the Johnson & Johnson or AstraZeneca vaccine, it looked very similar to the blood of people who have the low-platelet clotting reaction to heparin. This has led scientists and doctors to believe that the same process might be leading to these clots caused by the two vaccines.

This article is republished from The Conversation under a Creative Commons license.