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Our briefing for Friday, December 10, 2021:
Dec 10, 2021 3:11:08 PM
- The United States expanded booster eligibility to 16 and 17-year-olds in another move to fight the country’s rising coronavirus case numbers. The Centers for Disease Control and Prevention made the recommendation on Thursday, saying initial data suggests boosters can help to strengthen protection against Omicron and other variants. The move comes as the U.S. deals with a surge in case numbers and hospitalizations; according to the New York Times, there has been a 19% increase in hospitalizations over the past two weeks. The number of vaccines administered per day has also dropped from 3.3. million per day to about 1.7 million per day today, the Times reports.
- In Canada, the province of Ontario is set to announce new measures for vaccine passports, as they drop their plan to end the program in mid-January. Previously, officials had said proof of vaccination in places like bars, restaurants, cinemas and gyms, would not be needed from January 17. Now they will require all vaccine certificates to have QR codes, and the program will continue indefinitely. The decision comes as the province reported 1290 new Covid-19 cases on Thursday, the highest number on a single day for almost seven months. Officials say the new measures will help improve the province’s efforts to get more people vaccinated.
- In the United Kingdom, face masks are now required at more venues as the government’s new coronavirus measures come into effect. Indoor venues such as theatres, places of worship, indoor sports stadiums and museums will require face masks, and further restrictions will start next week under the government’s “Plan B.” The changes come amid reports the government is drawing up a “Plan C”. that would involve even tighter restrictions, But Boris Johnson’s official spokesperson says there are no plans to go beyond the current measures. “Obviously we need to keep the characteristics of this variant under review, and we would act if necessary, but there's no plans to go beyond what we set out," he said.
- Parents in South Korea held protests on Thursday against a vaccine mandate for young adults, aimed to curb the spread of Covid-19. From February, anyone 12 and older will have to show a vaccine passport to enter public spaces, including libraries and study cafes. Around 70 members of parents associations gathered in front of the Korea Disease Control and Prevention Agency building on Thursday, holding signs that said “Vaccine Dictatorship.” Currently 92% of adults in South Korea are fully vaccinated, while 11% have had a booster shot, however, only 34% of the 12-17-year-old age group are fully vaccinated.
- Germany introduced mandatory vaccinations for healthcare workers, Germany’s first vaccine mandate since the beginning of the pandemic. Medical workers in hospitals, nursing homes, doctors’ offices and other healthcare facilities will now be required to show proof of vaccination or recent recovery from Covid-19. "This vaccine mandate is necessary because it's completely unacceptable that, after two years of pandemic, people who have entrusted their care to us are dying unnecessarily in institutions because unvaccinated people work there,'' said Health Minister Karl Lauterbach. "We cannot accept this." The new measures also expand who is allowed to provide a Covid-19 vaccination, now allowing for dentists, veterinarians and pharmacists to provide the shots.
- Australia’s state of New South Wales is on track to ease more coronavirus restrictions next week, with 93% of adults over 16 fully vaccinated. From December 15, there will no longer be gathering capacity limits, QR code check-ins will only be required at high-risk venues, and masks will only have to be worn on public transit, trains and planes. Proof of vaccination will also no longer be required at most venues, except for large music festivals. Premier Dominic Perottet said he is confident in the decision to reopen, though he will not rule out making changes where necessary. "It's not set and forget, we'll always adjust those settings where we think they need to be amended but at the moment we are very confident with where we sit today,” he said.
Covid-19 – Due Diligence And Asset Management
European stocks mixed as markets track omicron, U.S. inflation surge
Brief: European markets lacked direction on Friday as renewed concerns about the omicron Covid-19 variant continue to weigh, while investors reacted to key U.S. inflation data.The pan-European Stoxx 600 hovered around the flatline by mid-afternoon, having recouped opening losses of around 0.4%. Autos jumped 1.3% while retails stocks slipped 0.3%. The U.S. Labor Department revealed on Friday that consumer price index (CPI) inflation stateside soared 6.8% annually in November, its steepest yearly climb since 1982 and slightly ahead of economist expectations. Data on Thursday showed U.S. jobless claims hitting their lowest rate since 1969 last week, as 184,000 people filed new unemployment insurance claims, with the labor market continuing to tighten.
HSBC, JPMorgan, Deutsche Bank tell London staff to stay home
Brief: The City of London could be about to become a ghost town again after firms started telling thousands of staff to work from home in response to the latest UK government guidance. HSBC Holdings told UK employees on Thursday afternoon they should return to home-working where possible, according to a spokesperson. Those who still need to work in branches or offices have been asked to take daily Covid-19 tests. Deutsche Bank is significantly reducing the number of staff working in the office from Monday, according to a person familiar with the matter. The arrangements will be similar to earlier in the pandemic when most staff worked from home, with exceptions for trading teams or those with personal circumstances that require attendance in the office. The City of London could be about to become a ghost town again after firms started telling thousands of staff to work from home in response to the latest UK government guidance.
UK growth slowdown dampens recovery expectations
Brief: A sharper than expected slowdown to UK growth in October has shown how the economy is “vulnerable” to Covid shocks, while intensifying the Bank of England’s interest rate “dilemma”, it has been warned. The economy grew by just 0.1% in October, according to figures published on Friday (10 December) by the Office for National Statistics, which highlighted a fall in construction and supply chain issues. Maike Currie, investment director at Fidelity International, said: "The steam has well and truly been taken out of the UK economic recovery." "With the government moving to implement its ‘Plan B' over concerns on the Omicron variant, there is a creeping sense of déjà vu. "Workers are heading back to their kitchen tables and the big festive season that retailers and the hospitality sector had their hopes pinned on - while starting on a high during Black Friday - might not have as much sparkle as hoped."
'Challenging' economic conditions and Covid uncertainty spur increased interest in riskier assets
Brief: People are increasingly turning to riskier investments as pandemic uncertainty continues, with current global economic conditions playing a key role, according to Schroders' latest Global Investor Study. Out of 23,000 people surveyed in 33 locations worldwide, over a third said they will allocate more towards high-risk investments. This increased to 44% for people aged between 18 and 37, the study found.Many people are investing in new, high-risk asset classes for the first time, Schroders highlighted. "The results indicate that, while many people feel compelled to take on greater risks to compensate for Covid uncertainty and concerns caused by rising inflation, this is even more so the case for younger investors," the firm said. Nearly 60% of investors in the 18-37 age group said they would make higher-risk investments in pursuit of returns when presented with the scenario where interest rates are at zero or negative.
Fewer Empty Offices in Tokyo For First Time Since Pandemic Began
Brief: The rate of offices standing empty in central Tokyo in November dropped for the first time since the pandemic began, an early signal that the worst could be over for the capital’s property market. Vacancies fell by 0.12 percentage points to 6.35% in Tokyo’s five main business districts, real estate brokerage Miki Shoji Co. said on Thursday. Since hitting 1.49% in February 2020, the lowest since the country’s economic bubble burst in the early 1990s, vacancies have surged. The pandemic and an uncertainty over the future of the conventional work environment led tenants to cancel existing leases or postpone signing new ones. After the most recent virus state of emergency was lifted at the end of September, Japan has seen a recovery in activity, with Covid cases and deaths among the lowest in the world.
