.png?width=200&height=78&name=CH%20Diligence%20(thicker%20line).png "CH Diligence (thicker line).png")
Our briefing for Friday, November 26, 2021:
Nov 26, 2021 4:25:49 PM
- In the United States, President Joe Biden acknowledged Covid-19 victims in his Thanksgiving holiday message, explaining that this year’s celebrations were especially meaningful after last year’s separations. “As we give thanks for what we have, we also keep in our hearts those who we lost, and those who have lost so much. And those who have an empty seat at their kitchen table or their dining room table this year because of this virus or another cruel twist of fate or accident. We pray for them,” Biden said in a pre-recorded video message. His comments come as hospitals and healthcare workers across the country prepare for an increase in Covid-19 patients because of holiday travel. The country is averaging about 95,000 new coronavirus cases per day.
- In Canada, the government announced its latest pandemic aid legislation, proposing a spectrum of financial supports for Canadians who are still struggling. “Bill C-2 is designed with an understanding that our economic recovery is still uneven, and that the public health measures that are saving lives continue to restrict some economic activity,” said Deputy Prime Minister and Finance Minister Chrystia Freeland. The new legislation would expand the proposed Tourism and Hospitality Recovery Program to include more businesses in the cultural sector. Businesses would be eligible for a subsidy rate of up to 75%, so long as they can prove revenue losses of at least 40% over the past year, as well as revenue losses of at least 40% during the current month. The government introduced the legislation one month after announcing that the Canada Response Benefit and emergency wage and rent subsidy programs would wind down.
- In the United Kingdom, flights from six African countries have been suspended as concerns rise over the new Covid-19 variant. Travellers arriving in the U.K. from South Africa, Botswana, Namibia, Zimbabwe, Lesotho and Eswatini will have to quarantine in a hotel for 10 days. Flights from the six countries were suspended until the hotel system is up and running. So far 59 cases of the variant have been identified in South Africa, Hong Kong and Botswana. No cases of the variant have been detected in the U.K. as of yet. Health Secretary Sajid Javid said the B.1.1.529 variant is a cause for major international concern, and that the government must act as quickly as possible.
- France will make Covid-19 booster shots available to all adults, the government announced on Thursday. Beginning next week, anyone age 18 and older will be able to get a booster shot, so long as at least five months have passed since their regular second shot. Previously in France, boosters were only available to those age 65 and older, those at high-risk of severe illness and healthcare workers. Those who fail to get a booster in time will see their health passes expire, meaning that they will be barred from entering restaurants, cinemas, and other public venues. After the announcement was made, vaccination rates in France soared, with over 400,000 new reservations being made in a day.
- The Philippines will reopen its borders to some foreign tourists beginning in December. Travellers must be fully vaccinated and visiting from countries deemed low risk by the Philippines. Currently there are 44 countries included in the Philippines’ green list. Visitors will be allowed to enter over an initial 15-day period, according to Karlo Nograles, acting presidential spokesperson, who also said the two-week window could be extended. Nograles said travellers should also have a negative PCR test within 72 hours prior to departure of their country of origin. The Philippines initially shut its borders at the beginning of the pandemic back in early 2020.
- Australia’s state of New South Wales (NSW) is scrapping mask requirements indoors from December 15, or once the state reaches 95% vaccination rates. Masks will soon only be required on public transit, planes and at airports. QR code check-ins, which are currently mandatory at all venues, will only be needed at hospitals, long-term care facilities, pubs and nightclubs. Despite only having emerged from one of the strictest lockdowns in the world last month, NSW has accelerated its push for normalization. High vaccination rates have been a big part of it, with some 92% of people in the state having had both shots, Bloomberg reports.
Covid-19 – Due Diligence And Asset Management
Covid risks can still derail U.K. recovery, BOE’s Pill says
Brief: Bank of England Chief Economist Huw Pill said new variants of the coronavirus and the risk of another lockdown are some of the risks that could blow off track the view of policy makers that the U.K. economic recovery is maturing. Speaking Friday as the emergence of the Nu variant of Covid-19 roiled global markets, Pill said the arrival of any new strain could disrupt the BOE’s guidance that rates have to rise in coming months. “If there’s a financial disruption, or if there’s the onset again of a pandemic and a lockdown, those are the type of events which clearly would change our view of the world. We hope those things don’t happen, Pill told business leaders in northern England. “We hope those things don’t happen. We don’t really know what the future holds. It’s those unknown unknowns that the most difficult to manage.”
Traders unwind rate-hike bets as new COVID fears spread
Brief: Money markets are offloading bets on central bank interest-rate hikes in a hurry, as inflation fears give way to concerns that a new coronavirus strain may spread globally and slow economic growth. Traders have pushed back the timing of a 25-basis-point rate increase by the Federal Reserve to September from June, with only one further hike expected for the remainder of 2022. It’s a similar story in the U.K. where the Bank of England is now expected to tighten policy in February instead of next month. Wagers that the European Central Bank will raise its deposit rate by the end of next year have also been slashed, with only a seven basis-point increase priced in, around half of that seen earlier this week.
UK entrepreneurship back on track with 15 per cent rise in number of new businesses created last year
Brief: UK entrepreneurs are leading the way out of the Covid-19 crisis with the number of new businesses created up 15 per cent in the last year, according to ECI Partners, a growth-focused mid-market private equity firm. According to figures from the ONS, a total number of 405,555 new businesses were created in the UK in 2020/21, compared to 352,575 in 2019/20. Despite the economic challenges of the pandemic, UK entrepreneurs have shown their resilience and the rise in business creation provides an optimistic outlook for new businesses in the UK. Mark Keeley, Partner at ECI Partners, says: “These figures really demonstrate the UK’s strong entrepreneurial spirit, with business leaders focussing on how to thrive rather than simply survive.”
Bitcoin enters bear market territory as risk assets plunge on new Covid variant
Brief: Bitcoin fell sharply alongside other assets on Friday, hitting a seven-week low and officially entering bear market territory. The world’s biggest cryptocurrency sank nearly 8% in the last 24 hours to $54,315, according to Coin Metrics data. Bitcoin at one point traded as low as $53,549, its lowest level since early October. Bitcoin is down more than 20% from an all-time high of nearly $69,000 which it hit earlier this month. Bear markets are typically defined by a decline of 20% or more from recent highs. Other cryptocurrencies also plunged Friday. Ether, the second-biggest crypto, fell 10% to $4,062, while XRP slumped 10% to around 95 cents. Digital currencies are falling in tandem with other risk assets amid panic over a new, heavily-mutated variant of the coronavirus first detected in South Africa.
Airline shares skid on South Africa travel bans tied to variant
Brief: Airline shares tumbled on Friday after the U.K. instituted a temporary ban on flights from South Africa and Germany prepared to restrict entry along with other European Union members. Israel and Singapore have also curbed access from South Africa and neighboring nations to fight an emerging strain of coronavirus that has alarmed health officials across the world. European Commission President Ursula von der Leyen proposed an “emergency brake” on air travel from South Africa, which allows EU member countries to act quickly to limit the risks from emerging virus variants. British Airways parent IAG SA sank 21%, while Deutsche Lufthansa AG fell 14%. Ryanair Holdings Plc, Air France-KLM and other European airlines registered drops of similar magnitude.
