Technologies

Breakthrough COVID cases among the fully vaccinated are real. Here’s the latest

A CDC report provides evidence that the delta variant is transmissible in vaccinated people who get infected. But that’s not a reason to question vaccines, experts say.

For the most up-to-date news and information about the coronavirus pandemic, visit the WHO and CDC websites.

COVID-19 infections are surging throughout the US again (more than 95,000 new cases on Thursday) due to the highly contagious delta variant, with outbreaks particularly impacting areas with low vaccination rates. This week, a new study released by the US Centers for Disease Control and Prevention says the delta infection has similarly high viral loads in vaccinated and unvaccinated people. So what does that mean as more of these breakthrough cases are happening?

Currently, 164 million people in the US have been fully vaccinated, nearly half the country’s total population. The CDC’s research suggesting that vaccinated people infected with delta can also easily transmit the virus was the key factor motivating the new federal guidance that fully vaccinated individuals continue to wear masks indoors. At the same time, the CDC report underlines that the number of cases and deaths among fully vaccinated people is very small compared with the number among the unvaccinated.

Should you be concerned about getting COVID-19 if you’ve been inoculated? Since there’s more community spread and there are more breakthrough cases despite vaccination, new data suggests yes. We’ll explain what a breakthrough coronavirus infection is, how it’s possible for fully vaccinated people to become infected and what it all means. This information comes from the CDC, the World Health Organization and other experts.

What’s a breakthrough COVID-19 infection?

A breakthrough COVID-19 infection is when a fully vaccinated person becomes infected with the coronavirus without any symptoms, experiences symptoms, is hospitalized or dies from the infection. A small percentage of fully vaccinated people can get COVID-19 if exposed to the virus, but they’re much less likely to become sick, according to the CDC.

If someone’s fully vaccinated and does test positive for coronavirus, it’s likely they’ll have milder symptoms (see below) or be asymptomatic, Dr. Clare Rock, a Johns Hopkins medical professor, told me.

Now that it’s been found that fully vaccinated people can be infected with high viral amounts of the delta variant, the CDC is concerned they can transmit the virus. If you do become ill, experts urge you to isolate yourself to prevent others from getting sick, especially people with medical vulnerabilities.

How can fully vaccinated people become infected with coronavirus?

Someone can become infected with COVID-19 just before or right after they get the vaccination, because it takes roughly two weeks before the vaccine is most effective. However, even after the immunity builds up, there’s still a chance they can become infected, according to the WHO, since the vaccines aren’t silver bullets against disease (though they’re highly effective).

With millions of unvaccinated people around the world, new variants will emerge, Rock says. For example, the delta variant can pose a threat to people who are fully vaccinated — especially those who have high-risk medical conditions (see the next section).

Are COVID-19 symptoms still severe if you’ve been fully vaccinated?

Someone who’s fully vaccinated has a much smaller risk of experiencing severe symptoms from COVID-19. People who’ve received all their doses of a vaccine are less likely to be hospitalized or die than those who haven’t been vaccinated, the CDC says. Vaccinated people typically see symptoms like a runny nose, which they mistake for a sign of a common cold, Rock said.

But that’s not to say serious cases can’t happen. The CDC says some fully vaccinated people can still be hospitalized and die. This can include people who have medical conditions that make them immunocompromised, Rock said, including those with cancer and people who’ve had organ transplants — in general, people who are more vulnerable.

How can you stay protected from breakthrough infections?

If you’re fully vaccinated but worried about getting sick, you can take the following precautions.

Wear a mask in public places.
Practice social distancing.
Keep your home well-ventilated by opening windows.
Wash your hands.
Get a COVID-19 test if you’re experiencing symptoms.

Will fully vaccinated people need booster shots in the future?

At this time, there’s not a clear answer. Though some people say a booster shot may be necessary down the line, the CDC and the Food and Drug Administration don’t agree with that, at least not yet. Scientists are continuing to study the immunity of fully vaccinated people to get a better idea of how well the vaccines protect them.

Moderna is currently researching if and when a booster shot may be necessary. For instance, vulnerable people who don’t have a robust immune system, such as those with serious medical conditions, may need an additional shot, Rock said.

Pfizer says it’s working on a booster shot for its COVID-19 vaccine (PDF) to enhance immunity for those who’ve already received both doses. The UK is also prepping for booster shots, with vaccine experts in Britain saying a booster shot may be needed before winter.

Which variants are the cause of the breakthrough infections?

The variant causing the most concern right now is the delta variant, which is now the dominant strain in the US and other countries. This variant has caused an increase in COVID-19 cases, which is also affecting people who are fully vaccinated.

In comparison with the alpha variant, researchers have found delta to be 60% more transmissible, and hospitalization risks are much higher in unvaccinated people.

In most instances, the cases are happening in areas with low vaccination rates. For instance, US states like Louisiana and Florida have low vaccination rates and their COVID-19 cases are surging again.

What are experts saying about the efficacy of vaccines against COVID-19?

The breakthrough infections don’t mean the vaccines aren’t powerful.

“The effectiveness against severe disease is still substantial,” Dr. Anthony Fauci said during a White House press briefing July 22. “Get vaccinated. It offers good protection against disease.”

For more information, here’s everything to know about the delta variant. Also, here are more details about a potential COVID-19 booster shot, and here’s info on the debate over whether fully vaccinated people should wear masks.

The information contained in this article is for educational and informational purposes only and is not intended as health or medical advice. Always consult a physician or other qualified health provider regarding any questions you may have about a medical condition or health objectives.

Technologies

Apple and Meta team up to make Muse AI model run on Mac computers

Apple and Meta are collaborating to make Muse Spark Open easier to run locally on clustered Mac Studio systems, according to the companies.

Tim Cook and Mark Zuckerberg have clashed for years, but with John Ternus taking the reins at Apple

Technologies

CoreWeave credit default swaps hit distress levels as investors sour on AI debt

Signs of distressed deepened in CoreWeave on Thursday.

CoreWeave’s credit stress continued to spiral on Thursday amid a broader sell-off in AI-related names.

CoreWeave — a so-called neocloud company — has taken on more than $51 billion of debt and obligations to finance its AI infrastructure build-out. It’s now facing a rebellion from stock and bond investors as concerns mount about AI overspending and debt levels.

Yields on CoreWeave debt have continued to climb, with the yield to maturity on its 9.75% bond due in 2031 reaching 15.78%. Bond yields move inversely to prices. Meanwhile, the spread on its five-year credit default swaps, which are insurance against default, at one point soared above 1,140 basis points. It last stood at nearly 1,038 bps — a 16% week-over-week jump and 164% higher than a year ago.

Credit concerns are spreading into AI equities too. CoreWeave’s stock dropped during trading Thursday before recovering and closing 5.94% higher. The moved followed Wednesday’s 15.5% nosedive.

Other neocloud stocks were under similar pressure. Nebius also sank before climbing higher to close 1.29% and and Iren ultimately ended the day down less than 1%.

Anxiety about AI overspending is also spreading. For instance, shares of Micron Technology and Advanced Micro Devices sold off following a big sell-off in South Korean chip stocks. Micron closed up 1.87%, while AMD fell 1.5%.

While AI debt worries have been rising steadily, investors have suddenly grown skittish about the underlying finances of companies borrowing heavily to buy chips, build data centers, and rent out computing power.

Coreweave’s credit default swaps are one place to see that stress.

Credit default swaps are contracts where buyers pay for protection in case the borrower can’t repay its debt. The spread widening in CoreWeave’s CDS means investors view the debt as riskier.

The market is “basically saying ‘no mas’ to AI debt without operating cash flow support,” the Evercore ISI trading desk said.

A spread level of 1,000 basis points or above is generally a sign of credit distress, said Gavan Nolan, executive director of fixed income pricing at S&P Global Market Intelligence.

No one is questioning whether demand for CoreWeave’s services is real, since the company has contracts with all the big hyperscalers, Nolan said. The question is whether the cash flows will ultimately arrive.

“It’s obviously heavily negative free cash flow at the moment, and it needs that cash flow to arrive really to justify all the capex that it’s spending,” Nolan said.

‘Self-fulfilling prophecy’

CEO Mike Intrator dismissed the market moves on Wednesday, according to a memo obtained by CNBC.

“When you are building a new type of technology company there will be periods of time when the market misunderstands and acts irrationally,” he wrote. “We are confident in our backlog which more than supports all of our debt obligations.”

The backlog is over $100 billion, with around two-thirds of it with investment-grade counterparts including Microsoft, Meta, IBM and Caterpillar, Deutsche Bank said in a note Thursday. The firm reiterated its buy-rating on the stock Wednesday, calling the dislocation a buying opportunity.

“The problem is this kind of concern can prove to be a self-fulfilling prophecy, and risks triggering broader issues in other AI-related names,” said Jim Reid, global head of macro and thematic research.

Domino effects may already be happening. Oracle’s five-year CDS spread also spiked this week. It was last at 282 basis points, a roughly 10% increase in one week.

“A downgrade from its BBB rating would risk pressuring IG-only investors into forced sales,” Reid said.

Technologies

Netflix Chief Content Officer Bela Bajaria is leaving, will be replaced by Peter Rice

Netflix announced Bela Bajaria will be replaced by former Disney exec Peter Rice as the company’s chief content officer.

Netflix on Thursday announced Bela Bajaria will be replaced as the company’s chief content officer by former Disney exec Peter Rice, effective Oct. 26.

Rice most recently oversaw Disney’s cable channels, news programming and coverage of major sporting events.

“Peter is one of the most effective at-scale operators in the entertainment industry,” co-CEO Ted Sarandos said in a statement. “I’m excited to welcome him to Netflix as Chief Content Officer as we continue to scale and deliver members more of the stories they love.”

Before Rice was at Disney, he held roles 21st Century Fox and Fox Searchlight Pictures. Netflix in its announcement called him “one of the entertainment industry’s most respected creative executives.” In his new role, Rice will oversee the company’s global content organization, including scripted and unscripted series, film and live events.

″[Netflix has] shown again and again that they’re willing to take chances on distinctive voices and fresh ideas, and I’m excited to work with the team to help bring even more great stories to members everywhere,” he said in a statement.

Bajaria, who is leaving Netflix after nearly 10 years, most recently worked as the company’s global content team. She had been focused on the company’s live sports strategy, looking to create events out of buzzy games and tournaments.

“I’m incredibly grateful for everything she’s done to help Netflix entertain the world,” Sarandos said in a statement.

The announcement comes a day after Netflix instituted layoffs across its organization, eliminating approximately 6% of its workforce, or roughly 1,000 jobs.

The media company will report its next quarterly earnings on Tuesday.

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