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Our briefing for Monday, December 20, 2021:
Dec 20, 2021 3:07:56 PM
- In the United States, two senators have tested positive for Covid-19 amid a rise in cases across the nation. Senators Elizabeth Warren and Cory Booker both announced on Sunday that they tested positive in breakthrough cases, both were fully vaccinated and boosted. Neither said whether they’d been infected with Omicron, which now accounts for 3% of cases in the U.S. That figure is expected to rise quickly in the coming days as it has with other countries. The country’s top infectious disease expert Dr. Anthony Fauci warned of a difficult winter ahead as the new variant continues to spread. “One thing that’s very clear…is (Omicron’s) extraordinary capability of spreading,” Fauci told NBC News on Sunday. “It is just…raging through the world.”
- In Canada, the province of Saskatchewan warned they don’t have enough pharmacy staff to handle the demand for third Covid-19 shots. The province announced on Thursday that they would expand booster eligibility to everyone age 18 and older, while also cutting the length of time between shots from five months to three. Currently Saskatchewan has about 400,000 booster doses, with more expected to arrive from the federal government in the coming weeks. Meanwhile Manitoba will receive up to eight nurses from the Red Cross in response to a request they made last week. The deployment will start on December 20 and end on January 17, with the nurses set to staff intensive care units, emergency rooms and acute care.
- In the United Kingdom, Health Secretary Sajid Javid says he can’t rule out the possibility of more restrictions before Christmas, as Omicron cases surge. Omicron cases are doubling in less than two days in all regions of England except the southwest, according to the U.K. Health Security Agency. "There are no guarantees in this pandemic, I don't think," Javid told the BBC when asked about the potential for new restrictions. "At this point we just have to keep everything under review." Omicron is estimated to account for more than 80% of new cases in London.
- The Netherlands went into a tough lockdown on Sunday in response to Omicron, closing all non-essential shops, restaurants, bars and cinemas, until January 14. Schools and universities will also have to close until January 9. People are also now only allowed two guests in their homes, while outdoor gatherings are also limited to only two people. The exception to that rule is Christmas Day, when four will be allowed. Prime Minister Mark Rutte made the announcement on Saturday, saying the move was necessary to avoid an “unmanageable situation in hospitals.”
- Italy is considering imposing new restrictions to avoid a rise in Covid-19 cases over the busy holiday season, Bloomberg news reports. Prime Minister Mario Draghi’s government will meet on December 23 to review a package of new measures, including the possibility of wearing masks outdoors. The new rules could also include the requirement for vaccinated and unvaccinated people to take a Covid-19 test before accessing large events and even before entering cinemas and theatres. “We are worried. No decision has been taken yet and we will look at the caseload, but colleagues in the U.K. are telling us omicron is a challenge,” Health Minister Roberto Speranza said in an interview with Rai3 on Sunday.
- Australia won’t reach 80% booster coverage until well into 2022, according to a recent analysis by the Guardian. The country’s booster program launched in early November, initially targeting those in long-term care homes, boosters were then expanded to include anyone 18 and older who received their second dose six months prior. Recently the interval was changed from six months to five months, a move that resulted in the daily booster rate going from 20,000 a day to more than 100,000. Of the 70 countries for which there is booster data, Australia ranks near the bottom, the Guardian reports.
Covid-19 – Due Diligence And Asset Management
Wall Street Money Machine Booms as 445 ETFs Debut in Epic Year
Brief: A big year in the $7 trillion U.S. ETF industry can be summed up by a single trading day in October. Before the market had even opened, a group of former BlackRock Inc. executives launched a firm looking to shake up the world of credit with seven exchange-traded funds on the way. Then, at the opening bell, the new-product machine cranked into overdrive -- ETFs debuted tracking blockchain, electric vehicles, health care, Chinese innovation, ESG, and more. And by the end of the day, an application for another high-yield credit fund had landed with the U.S. Securities and Exchange Commission. The business has never known times like these. A corner of Wall Street already enjoying a reputation for explosive growth has gone supernova, with a record 445 new products in 2021 so far, according to data compiled by Bloomberg. Behind the rapid expansion is a deluge of new cash as investors chase an economic recovery from the coronavirus, while equity mutual funds fall out of favor.
World Economic Forum Postpones January Davos Meeting on Omicron
Brief: The World Economic Forum postponed its annual meeting in Davos next month, thwarted for a second year by the fresh waves of coronavirus across Switzerland and the globe. Having intended to hold the meeting Jan. 17-21, the Forum said in a statement that “continued uncertainty” over the omicron variant had forced a rethink and it now planned to host the meeting in early summer. “Current pandemic conditions make it extremely difficult to deliver a global in-person meeting,” it said. “Despite the meeting’s stringent health protocols, the transmissibility of omicron and its impact on travel and mobility have made deferral necessary.” As recently as last week, WEF officials were expressing confidence that they could host the conference given Switzerland was open to international travel and that regular testing would be provided.
Geopolitical shifts pave way to new global paradigm
Brief: Risks are said to be on the rise in emerging markets as countries struggle to manage accelerating inflation and a resurgence of Covid-19 cases threatening an already uneven recovery across the globe. Meanwhile, on the geopolitical front, "tectonic" shifts are underway, according to Polina Kurdyavko, head of emerging markets at BlueBay Asset Management. "On China, a new geopolitical landscape is being formed. The withdrawal of troops from Afghanistan and a military alliance between US, Australia and UK are all part of a long term, strategic focus on countering China's regional influence in our view," she said. "Against these top down thematic factors, a number of countries will have significant domestic developments; policy shifts in Argentina and Tunisia come to mind, as well as elections in Colombia and Brazil. "We also would be extremely carefully watching the Ukraine-Russia development. Turkey could have an early election too."Kurdyavko highlighted that 2021 was a "volatile and challenging year", and - in many ways - transitional.
U.S. Treasury yields are flat as investors assess omicron risk
Brief: U.S. Treasury yields were steady on Monday, as investors grew concerned that that omicron Covid variant will derail the recovery. The yield on the benchmark 10-year Treasury note was little changed at 1.4% at around 9:00 a.m. ET. The yield on the 30-year Treasury bond moved 1 basis point higher to 1.829%. Yields move inversely to prices and 1 basis point is equal to 0.01%.Asian equities and oil prices traded lower on Monday following the re-imposition of some Covid-19 restrictions in Europe. It comes as the rapidly-spreading omicron variant threatens to hit the economy over the holiday season and into the new year.The weekend’s news on the variant kept up pressure on investor sentiment, as the World Health Organization said that cases are doubling in 1.5 to 3 days in areas with local spread, and U.K. officials said more Covid-19 restrictions were possible.
Jefferies CEO Rich Handler Says He’s Self-Quarantined for Covid
Brief: Jefferies Financial Group Inc. Chief Executive Officer Rich Handler said he tested positive for Covid-19 earlier this month and is approaching his 10th day of isolation. “Three days after we decided at Jefferies to have our people once again work from home for safety, I tested positive and have been self-quarantining,” Handler said Sunday in a post on Instagram. “We all have much to be grateful for and every day we get closer to the sun shining brightly, so stay optimistic.” Jefferies asked staffers on Dec. 8 to start working from home amid a rise in Covid cases among its workforce. The New York-based firm is aiming to have its staff back at the office by Jan. 17, Handler and President Brian Friedman said in an Instagram post on Saturday.
