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Our briefing for Friday, October 1, 2021:
Oct 1, 2021 3:59:39 PM
- In the United States, a new Covid-19 variant that emerged is not an immediate threat, nor is it likely to become the dominant strain over delta, experts say. The R.1 strain was initially a concern because it has some mutations that could avoid anti-body responses. Delta continues to be the dominant variant in the United States, eclipsing other variants including Lambda and Mu. Nearly 700,000 people across the U.S. have died of coronavirus, an overwhelming majority of them unvaccinated. Despite its large supply of vaccines, the U.S. has one of the highest death rates of any country in the world.
- In Canada, the province of Saskatchewan reported 601 new cases on Thursday, its highest daily rise since the beginning of the pandemic. With 72 people in intensive care, the province’s hospitals are under immense pressure, but officials have declined to bring in any new restrictions. Health Minister Paul Merriman refused to call the situation a crisis during an online news conference on Wednesday. “It’s an extremely challenging situation,” he said. “We’ve never seen this before. The word ‘crisis’ can mean different things to different people. It’s certainly an extremely challenging time.”
- In the United Kingdom, case numbers are rising again as children head back to school and offices reopen. The U.K. reported 36,480 new Covid-19 cases on Thursday, and 137 new deaths. Transportation on roads has returned almost to pre-pandemic levels, although public transportation rates remain slightly below normal. Job vacancies have also soared as employers scramble to hire upon reopening. The U.K. has largely relied on vaccines to protect people from the spread of Covid-19 as they implemented their reopening plan. About 90% of the adult population in the U.K. have had their first dose of vaccine, while 83% are fully vaccinated.
- India will retaliate against the U.K. and impose strict travel measures on visitors arriving from that country. Beginning on October 4, travellers arriving in India from the U.K. will have to quarantine at a designated address for 10 days, regardless of their vaccination status. U.K. travellers will also have to have a Covid-19 test taken 72 hours before departure, upon arrival and on the eighth day after arrival. The U.K. recently imposed similar rules on Indian travellers, requiring them to quarantine upon arrival regardless of their vaccination status, although India was moved off the U.K.’s “red list.”
- The Philippines eased some coronavirus restrictions in the capital region after case numbers fell. Gyms can now reopen to fully vaccinated patrons, and restaurants and personal care services are allowed to double their operating capacity to 20%. Case numbers are averaging around 1700 daily in the past week, compared with nearly 4300 in the previous week. The total number of cases in the country since the beginning of the pandemic is now at about 2.5 million. The country has struggled because of limited access to vaccines, with only about 20% of the population fully vaccinated according to Bloomberg’s global vaccine tracker.
- Australia will reopen its international border from November, allowing vaccinated citizens the freedom to travel again. Prime Minister Scott Morrison said the restrictions will be removed once a state reaches the 80% full vaccination milestone. “It’s time to give Australians their lives back,” Morrison said. In other news, New South Wales (NSW) State Premier Gladys Berejiklian has resigned, as a result of an investigation taking place by a corruption watchdog. The NSW Independent Commission Against Corruption said it’s investigating a matter that involved a breach of public trust. Berejiklian says she resigned because of the length of time the investigation will take, and because the state needs stable leadership throughout the coronavirus pandemic.
Covid-19 – Due Diligence And Asset Management
Vaccine Stocks Shed $84 Billion as Merck Pill Adds to Rough Week
Brief: For the world’s leading Covid-19 vaccine makers, news that Merck & Co.’s experimental pill cuts the risk of hospitalization and death in half was the latest blow in a very bad week. Stocks including Moderna Inc. and BioNTech SE have shed about $84 billion in combined value this week in the aftermath of a stock market slump that sent the two companies to their lowest level since July. Selling accelerated on Friday, with BioNTech and Moderna each declining as much as 16% in New York as Merck delivered the news on its experimental pill that Wall Street called a “game changer.” The drug, called molnupiravir, reduced the risk of hospitalization or death by 50% in a study, raising concerns about the long-term revenues for companies providing inoculations.“
Two reasons for IPO surge during the pandemic: investment banker
Brief: SoftBank-backed Indian hotel chain Oyo Hotels on Friday filed for a public offering, just two days after trendy eyeglass unicorn Warby Parker (WRBY) went public on the New York Stock Exchange. The flurry of activity has become commonplace during a record-breaking surge of IPOs this year that's seen buzzy offerings from the likes of Robinhood (HOOD), Coinbase (COIN), and 23andMe (ME). In a new interview, Suzanne Shank — president and CEO of investment bank Siebert Williams Shank — said the IPO boom comes down to two main factors: companies repositioning themselves during the pandemic and the persistence of low interest rates from the Federal Reserve. "I think we're seeing companies that both benefited from the pandemic, as well as those that are sort of rebooting post-pandemic," she says. "That has really been sparking this increased deal flow."
U.K.’s Coronavirus Recession No Longer Worst in Three Centuries
Brief: It may be no comfort for millions of workers and businesses, but the U.K.’s coronavirus recession was no longer the worst in three centuries. Revisions mean that gross domestic product fell by 9.69% in 2020. That makes it the deepest slump since 1921, when the economy shrank 9.71% in the aftermath of World War I. The decline was previously estimated at 9.85%. Until then, the devastation wrought by the pandemic was thought to have exceeded all recessions since 1709, when the Great Frost led to a 13.4% contraction. The revisions announced Thursday are part of the annual Blue Book, when the Office for National Statistics updates the national accounts based on new sources and methods. While ONS figures go back to 1948, long-run estimates are produced by the Bank of England.
Zoom and Five9 abandon $14.7 billion acquisition
Brief: Zoom’s agreement to buy cloud contact center software company Five9 was scuttled on Thursday, after Five9 shareholders rejected the deal. Zoom said in July that it was acquiring Five9 in an all-stock purchase for $14.7 billion, its first billion-dollar-plus purchase and, at the time, the second-biggest tech deal of the year. The company has now lost an opportunity to quickly broaden its capabilities after its stock rallied during the coronavirus pandemic.Five9 shares fell 2% in extended trading following the statement from the companies. Buying Five9 “presented an attractive means to bring to our customers an integrated contact center offering,” Eric Yuan, Zoom’s founder and CEO, wrote in a blog post. “That said, it was in no way foundational to the success of our platform, nor was it the only way for us to offer our customers a compelling contact center solution.”
Covid-19 catapults social issues to the top, Schroders survey reveals
Brief: The Covid-19 pandemic has catapulted social issues to the forefront of investors minds, according to the latest global investor study published by Schroders today (September 30).The survey of more than 23,000 people across Europe, Asia and the Americas, revealed that 57% of investors are now placing greater importance on social issues versus environmental issues (55%) compared to pre-pandemic levels. The definition of “people” in the context of the research means those who will invest at least €10,000 (or the equivalent) in the next 12 months or those who have changed their investments within the last 10 years.Whilst the environmental element of ESG investing has been firmly on the radar of global investors since the Paris Agreement, meaningfully addressing social issues – from the consistency of corporate behaviour towards employees during the pandemic to working conditions and a liveable wage – has traditionally been lacking.
