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Our briefing for Friday, October 29, 2021:
Oct 29, 2021 4:03:26 PM
- In the United States, the state of Florida is suing the Biden administration over its coronavirus vaccine mandate for federal workers. A 28-page lawsuit filed on Thursday in Tampa alleges that the president overstepped his authority and that the new rules violate procurement law. Florida Governor Ron DeSantis made the announcement at a news conference after maintaining for weeks that he would seek legal action against the federal government for their sweeping new vaccine mandate. The Florida governor has staunchly opposed other coronavirus measures such as mask mandates and proof of vaccination for businesses. The Biden administration announced the vaccine mandate for all federal workers back in September.
- In Canada, the pandemic has created a rise in food bank usage across the country, a new report shows. The report titled HungerCount2021 from Food Banks Canada is a cross sectional consensus survey of almost 4750 food banks and community organizations. The report says that in March 2021 alone, there were over 1.3 million visits to food banks, which is an increase of approximately 20% compared to 2019. The report explains that food banks in large city centres saw a sharp increase in their usage, caused by pandemic-driven unemployment. The report makes recommendations for policy changes including increases in government supports for vulnerable demographics.
- In the United Kingdom, London Mayor Sadiq Khan is calling on the government to make face masks mandatory on public transportation, as the U.K.’s case numbers average around 40,000 per day. The mayor also urged citizens to get their flu shots as well as their coronavirus boosters, warning that protection from both is needed. “The worst thing we can do is to lower our guard, be complacent and underestimate the risk these viruses pose to all of us,” the mayor said in a statement. His comments came right after Professor Neil Ferguson, member of the Scientific Group for Emergencies (Sage), said that there is no apparent growth in case numbers in the U.K. Ferguson implied that the government’s “Plan B” measures may not be needed if cases and hospitalizations continue to trend downward.
- In South Korea some curbs will be eased and vaccine passports implemented as the country takes its first step towards living with the virus. Private gatherings of up to 10 people will now be allowed regardless of vaccination status, although restaurants and cafes must cap the number of unvaccinated people at four per group. Indoor venues like bars, nightclubs and gyms will require proof of vaccination for entry, while concerts can be attended by up to 100 people regardless of vaccination status. So far South Korea has vaccinated about 72% of the population, while about 80% have had their first dose.
- New Zealand announced a plan on Thursday to gradually ease their border restrictions for the first time since March 2020. Covid-19 Response Minister Chris Hipkins said travellers arriving from small Pacific nations will be allowed to skip quarantine, beginning on November 8. Fully vaccinated overseas travellers will still have to quarantine in a state-run facility, but for seven days rather than the full 14, as of mid-November. Hipkins said home quarantines will be allowed by the first quarter of 2022. Further steps to reopen the borders will be taken once 90% of New Zealanders are fully vaccinated; so far about 72% have had both shots.
- In Australia, the state of Victoria’s contentious pandemic bill has passed in the lower house after days of debate. The bill, which was tabled on Tuesday, would give Victoria Premier Daniel Andrews the power to declare a pandemic for three months at a time. The new laws would also give the state’s health minister, Martin Foley, the power to approve public health orders, rather than having to go through the country’s chief medical officer. Andrews’ government says the legislation helps to ensure accountability and transparency, but Victoria’s Opposition Leader Matthew Guy has said it’s an attack on democracy.
Covid-19 – Due Diligence And Asset Management
Buyout Boss Says Remote Work Is a Bad Fit for Private Equity
Brief: You can’t do private equity by Zoom.That’s the view of Michael Psaros, co-founder of $13.5 billion private equity firm KPS Capital Partners. Forget flexible days, don’t even think about remote work and please don’t mention video calls. KPS, which invests in manufacturing companies, has required all its New York staff to be in the office five days a week since early September, provided they’re vaccinated. It’s the only approach that makes sense in the buyout world, according to Psaros, a former Bear Stearns banker who noted that most employees had already returned by June. “I’m sure flexible work is good for certain industries, but not in private equity,” Psaros, 54, said in an interview. “Private equity is an apprenticeship and relationship business, and you cannot apprentice by Zoom. You cannot learn by Zoom.”
Air Canada orders staff back to office, fully COVID-19 vaccinated
Brief: Air Canada said employees working remotely must gradually return to the office starting Nov. 15 and be fully vaccinated, as COVID-19 cases ebb across Canada. The country’s biggest airline described its plan on Friday as “a balanced approach” that allows employees to keep working some “set days” remotely. In a statement, Chief Executive Officer Michael Rousseau cited Canada’s high vaccination rate as part of the company’s rationale for bringing workers back. “For individuals, companies or any organization to achieve their full potential requires personal connections and interactions,” Rousseau said. “This makes the return of Canadians to the workplace a necessary step in the recovery of our society and economy from the pandemic’s isolating effects.”
SEC Wants Senator Burr’s Brother-in-Law to Testify in Covid Trading Probe
Brief: The Securities and Exchange Commission is seeking to force U.S. Senator Richard Burr’s brother-in-law to testify about their stock sales just before the beginning of the coronavirus pandemic, according to court records. Gerald Fauth has “waged a relentless battle” to avoid complying with a subpoena issued to him in May of 2020, the SEC said in court filings. “The Commission is investigating possible insider trading by Fauth’s brother-in-law, Senator Richard M. Burr, and respondent’s own sales of stock in the minutes after speaking with Senator Burr on the day the senator sold the vast majority of his own portfolio.” Fauth, a holdover Donald Trump appointee to the National Mediation Board, which governs labor relations in the rail and airline industries, has said he’s too ill to answer questions from investigators.
Citi Requires Vaccines for All U.S. Workers, Citing Biden Order
Brief: Citigroup Inc. will require all U.S. employees be vaccinated against Covid-19 as a condition of their employment, citing new orders from President Joe Biden. The Wall Street giant asked staffers to submit proof of vaccination by Dec. 8, and said those who comply will receive $200 as a “thank you,” according to a memo to staff Thursday seen by Bloomberg News. Citigroup set Jan. 14 as the final cut-off for workers to upload vaccine cards, to give unvaccinated staff more time to get shots. “Our medical teams have consulted with top experts at some of the most prestigious medical institutions in the country, and are confident about the safety and efficacy of the vaccines available to us,” Sara Wechter, who leads human resources at New York-based Citigroup, said in the memo.
Merck Rises on Outlook for Billions in Covid Antiviral Sales
Brief: Merck & Co.’s closely watched Covid-19 antiviral molnupiravir could bring in as much as $7 billion in global sales through 2022, according to the drugmaker. The figure includes up to $1 billion in revenue this year if the experimental drug is authorized in December, Chief Financial Officer Caroline Litchfield said early Thursday on a conference call. She projected at least $5 billion in sales by the end of next year, provided it’s cleared. Merck rose as much as 5.4% to $85.96 as of 11:12 a.m. in New York, its highest intraday price since January 2020. Molnupiravir has become one of the most highly anticipated coronavirus medications, as the pill is relatively cheap to make and easy to transport. Merck has taken steps to make sure that it will be distributed widely, including in low-income countries.and Event Driven funds brought in USD2.28 billion, 0.8 per cent of assets.
