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Our briefing for Friday July 23, 2021:
Jul 23, 2021 3:16:43 PM
- In the United States, three states account for almost 40% of the country’s new Covid-19 cases, CNN reports. White House Coronavirus Response Coordinator Jeff Zients says every person who gets vaccinated helps bring the pandemic to an end. "This week, just three states Florida, Texas and Missouri, three states with lower vaccination rates accounted for 40 per cent of all cases nationwide," Zients said at a White House news conference. "For the second week in a row, one in five of all cases occurring in Florida alone. And within communities, these cases are primarily among unvaccinated people." Right now the U.S. is averaging 34,056 new Covid-19 cases per day.
- In Canada, the debate over whether or not there should be mandatory vaccines for healthcare workers is growing. France has required all healthcare workers to get vaccinated by September 15, while Italy and Greece have taken similar approaches. Healthcare workers were among the first to have access to vaccines in Canada. While the Ontario Medical Association and the Registered Nurses’ Association of Ontario call for mandatory vaccines for healthcare workers in Ontario, the province’s premier is against it, saying healthcare workers have a “constitutional right” to opt out of vaccination.
- In the United Kingdom, experts say more effort is needed to encourage young people to get the vaccine. In England, less than 60% of 18-25 year-olds have had their first dose, though the latest data from Public Health England (PHE) shows that case rates are highest among people in their 20s. Adults over the age of 18 have been eligible for Covid-19 vaccination since June 18. In response to the slowing vaccine uptake among young people Prime Minister Boris Johnson announced that crowded venues, such as nightclubs, may soon require patrons to be fully vaccinated in order to enter.
- Spain is considering administering a third dose of vaccine, its health minister said, though she did not determine a timeframe. “Everything seems to suggest that we will have to [give a third dose]”, said Health Minister Carolina Darias. She also added that she expects people will have to take annual vaccines for Covid-19 “without a doubt.” Spain has vaccinated 52.8% of the population, while 63.7% have had at least one dose. The World Health Organization recently came out against booster shots, saying that it’s more important to get vaccines to poorer countries.
- In South Korea, the government has said it will shut down a rally that planned to defy Covid-19 restrictions. The Korean Confederation of Trade Unions (KCTU) expected to hold the rally in Wonju, a rural city about 100 km east of Seoul. The city of Wonju updated their restrictions to the highest level on Thursday at midnight, banning public rallies. The South Korean government was recently criticized for being too lenient over a larger KTCU rally that took place on July 3, while at least three people have now tested positive as a result of the rally.
- New Zealand has suspended its quarantine-free travel bubble with Australia, as the country struggles with its latest Covid-19 outbreak. The travel pause will apply to all of Australia and will last for at least eight weeks. Th government of New Zealand held an urgent cabinet meeting on Thursday to discuss the decision. At the press briefing on Friday Prime Minister Jacinda Ardern said the delta variant has made things more dangerous than when the bubble first opened. “Covid has changed, and so must we,” she said.
Covid-19 – Due Diligence And Asset Management
Investors Eye COVID-19 Spread, Golden Cross to Gauge U.S. Dollar Trajectory
Brief : A rally in the U.S. dollar has investors looking at a broad range of factors -- from global COVID-19 infections to yield gaps -- to determine whether the greenback will continue appreciating. The dollar is up 4% from its lows of 2021 and is among the world's best performing currencies this year, boosted by last month's hawkish shift from the Federal Reserve, burgeoning inflation and safe-haven demand driven by COVID-19 worries. Because of the dollar’s central role in the global financial system, its moves ripple out towards a broad range of asset classes and are closely watched by investors. For the United States, a period of sustained dollar strength would be a double-edged sword, helping tamp down inflation by increasing the currency's buying power while denting the balance sheets of exporters by making their products less competitive abroad.
Stocks Climb To All-Time High at End of Wild Week
Brief: Another raft of blockbuster corporate profits pushed stocks toward a record at the end of a week that started with concern about a peak in earnings and a coronavirus resurgence. About 87 per cent of the S&P 500 companies reporting results so far this season have beaten Wall Street estimates, according to data compiled by Bloomberg. Twitter Inc. and Snap Inc. led a rally in social-media firms as sales blew past forecasts, while American Express Co. jumped after adding a record number of new customers to its tony Platinum card in the second quarter. Stocks extended their weekly advance, with most major groups moving higher. While the rapid spread of the delta variant has sown volatility in financial markets, thus far economists are maintaining their forecasts for a historically strong U.S. recovery. A measure of activity at U.S. service providers settled back in July to a five-month low, a separate manufacturing gauge climbed to a fresh record.
Bank of Canada to Allow 50% Remote Work as Employees Return
Brief: The Bank of Canada will allow most of its employees to work remotely as much as 50 per cent of the time once public health guidelines allow it to fully reopen its offices.A limited number of staff are currently working in the central bank’s offices in Ottawa. The coronavirus pandemic has eased in Canada, with vaccinations rising and cases dropping, so the bank expects to bring back many employees after the summer. But it doesn’t see a return to normal conditions until 2022, an official said. “More employees will be allowed access over the fall, in line with federal and provincial public health guidelines. Based on current conditions, we are not anticipating full on-site staffing levels until the new year,” Chief Human Resources Officer Alexis Corbett said in an email. The 50 per cent guideline will be measured over two-week periods.
NYC Hotels See Busiest Week Since Pandemic Struck, Mayor Says
Brief : New York City’s hotel industry is starting to revive as tourists return, driving demand for rooms to the highest since the city became an epicenter of the pandemic in March 2020, Mayor Bill de Blasio said. City hotels sold more than 481,000 room nights last week, a 17,000 increase from the previous week, de Blasio said. Visits to the Statue of Liberty were up 22% last week compared with the last week in June, and the mayor said the city is on its way to exceeding its weekly goal of 500,000 hotel room nights. “We need to see our economy coming back, our jobs coming back,” de Blasio said during a Thursday news briefing, when he spent much of the time promoting musical concerts intended to draw visitors back.
A New Secondary Market Is Rising Out of Pandemic-Fueled Changes to Real Estate
Brief: A still-fledgling secondary market for private real estate funds is getting a big push forward from institutional investors eager to invest in newly hot areas of real estate and sell off other, less desirable parts of the sector. “Secondaries are really coming into their own. Covid just accelerated the increase,” said Eric Adler, president and CEO of PGIM Real Estate. “Some investors want to stay in real estate, but others want out. Secondaries are becoming a good solution.” In private markets, secondaries trading allows investors to buy and sell fund stakes at any point in that fund’s life, rather than stay in a vehicle designed to be held for a decade or more.
