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Our briefing for Monday, January 10, 2022:
Jan 10, 2022 3:27:16 PM
- In the United States, hospitalizations are reaching record numbers as the Omicron variant continues to spread. Since it quickly overtook Delta as the dominant strain in the country in late December, hospitalizations have been increasing steadily. The number of hospitalizations in the U.S. reached around 123,000 on Friday, and it appears the number will top the record of 132,000 set last year in the coming days. An average of 17,000 people are admitted to hospital each day, and health officials say the majority of people in intensive care are unvaccinated. "I don't believe we've seen the peak yet here in the United States," Centers for Disease Control and Prevention Director Rochelle Walensky told NBC News on Friday.
- In Canada, truckers who enter the country from the United States will now have to show proof of vaccination, as Prime Minister Justin Trudeau moves forward with a vaccine mandate despite mounting pressure from industry groups and opposition parties. The Canadian Trucking Alliance estimates that about 10% of drivers will be forced off the roads by the new policy. This will be the first measure taken since the beginning of pandemic that could potentially limit cross-border trucking, as truckers have been seen as essential and therefore have moved freely throughout the last 20 months of the pandemic. "We're going to see prices skyrocket for groceries, for everything, if we see tens of thousands of truckers unemployed," Conservative Party leader Erin O'Toole said on Thursday. Government sources say they don’t anticipate any significant disruptions for Canadians.
- In the United Kingdom, the Joint Committee on Vaccination and Immunization (JCVI) has decided not to recommend a fourth Covid-19 shot for people over 80 and nursing home residents. The JCVI found that data shows a third dose provides sufficient protection against the coronavirus and instead recommended the government focus on getting third shots to as many people as possible. Data compiled by the U.K. Health Security Agency shows that people over 65 still have a 90% protection rate three months after their third dose, and that the protection rate remains the same even for vulnerable groups. The consideration for a second booster shot comes amid a rise in Covid-19 cases across the U.K., fueled in part by Omicron.
- Germany’s lawmakers will need considerable time to debate the highly contentious coronavirus vaccine mandate ahead of its implementation. Chancellor Olaf Scholz predicted in November "a general vaccine mandate that will take effect next year, in February or early March, and which everybody can get ready for now." On Sunday, local media reported that the implementation could come as late as June, as technical conditions such as a nationwide vaccine register, would have to be in place. The looming vaccine mandate has also sparked protests across the country, with some of them turning violent after police ordered them to disperse. Germany’s Health Minister Karl Lauterbach said the vaccine mandate won’t be in place in time to stop the current wave of infections, but will help protect against future variants that could emerge in the fall.
- India has begun to administer booster shots to vulnerable groups and frontline workers, as coronavirus cases surge. Healthcare personnel and people above 60 years suffering from health conditions are eligible for what the government calls a “precaution dose.” These doses will be the same vaccine that was given to a person for their first and second shots; India is not mixing and matching vaccines unlike some other countries. About 67% of India’s population has been double vaccinated while about 91% have received a first dose. India reported over 179,000 new coronavirus cases, nearly an eightfold increase in a week.
- Australia continues to experience a strain on supply chains and hospitals, as coronavirus cases surpass one million, more than half in the past week alone. Prime Minister Scott Morrison says Australia must “push through” the current outbreak and avoid having another lockdown. More than 3500 people are in the hospital, up from 2000 a week ago. Virgin Australia will cancel 25% of its flights in January and February, due to Covid-19 reducing demand and forcing staff into isolation. Australia is now vaccinating children ages five to 11, though supply shortages are delaying the rollout.
Covid-19 – Due Diligence And Asset Management
Over half of CEOs to step-up investment and M&A in 2022, but headwinds remain
Brief: As the world enters a new phase in the global Covid-19 pandemic, the majority of CEOs are ready to accelerate plans for investment and mergers and acquisitions (M&A) in their pursuit for growth. These findings come from the inaugural EY 2022 CEO Outlook Survey, which recorded the views of more than 2,000 CEOs across the globe on their prospects, challenges and opportunities. More than half of respondents (54 per cent) will prioritise investment in existing businesses, digital transformation and sustainability, according to the survey. In addition, more than three-quarters (79 per cent) of respondents have adjusted, or are planning to adjust, their supply chain to help reduce costs and minimise risks to prepare for future disruption. Following a record year that saw USD5 trillion worth of M&A, transactions will remain a critical tool for CEOs in 2022 complementing other areas of investment.
Andurand, Westback Hedge Funds Soar on Back of Commodities Rally
Brief: Commodities trader Pierre Andurand capped another strong showing in 2021, with one of his hedge funds returning 87%, according to two people with knowledge of the matter. The advance by the Andurand Commodities Discretionary Enhanced Fund followed a gain of 154% in 2020. His older Andurand Commodities Fund closed 2021 up 36%. The Andurand Climate and Energy Transition Fund, formed in July, returned 28%, the people said. A spokesman for Andurand Capital Management LLP, which has offices in London and Malta and manages about $950 million, declined to comment. Andurand, 44, has pocketed big gains from a surge in energy prices. Last year, he said the world was entering a bull market for commodities, supported by a global shift toward decarbonization. His firm has benefited from exposure to emissions and has previously been bullish on natural gas, European power prices and oil.
European markets fall as traders watch rising COVID cases and expected rate hikes
Brief: European stock markets had a downbeat session on Monday amid a burst of new reported coronavirus cases and the impact of earlier than expected rate hikes in the US.In London, the FTSE 100 (^FTSE) fell 0.4% on the day, while the French CAC (^FCHI) tumbled 1.3% and the DAX (^GDAXI) was 1.1% lower in Germany. Oil and gas stocks managed to outperform while household goods remained under pressure as well as a slump for housebuilders. The UK government is reportedly looking for property developers to take on a greater share of the costs of repairing dangerous apartment blocks in the wake of the Grenfell tragedy of 2017. "Many flat owners have been left with onerous costs for replacing flammable cladding and the latest reports on who will foot the bill should come as no surprise to the sector in that context," AJ Bell investment director Russ Mould said.
Moderna says it has US$18.5B in vaccine orders for 2022
Brief: Moderna Inc. said it has signed vaccine purchase agreements worth US$18.5 billion for this year, along with options for another US$3.5 billion, including booster shots. In a statement on Monday, the company also said 2021 product sales would be US$17.5 billion, slightly higher than the average analyst estimate of US$17 billion, according to data compiled by Bloomberg. Additionally, the company said that it shipped 807 million vaccine doses in 2021. Previously, it had said it would deliver between 700 milion and 800 million doses. The advance purchase agreements for 2022 are up from US$17 billion worth of commitments it had announced last year. Analysts were expecting US$19.3 billion in Moderna COVID vaccine sales for 2022, according to a Bloomberg survey of analyst estimates. In premarket trading in New York, Moderna shares were up 0.2 per cent. Moderna announced the advance orders on the first day of the JPMorgan Healthcare Conference, where it is scheduled to present Monday morning.
Citigroup will terminate unvaccinated workers by Jan. 31, a first among Wall Street banks
Brief: Citigroup will be the first major Wall Street institution to enforce a vaccine mandate by terminating noncompliant workers by the end of this month. The bank reminded employees in a memo sent Friday about its policy, first disclosed in October, that they must be “fully vaccinated as a condition of employment.” At the time, the bank said that employees had to submit proof of vaccination by Jan. 14. Those who haven’t complied by next week will be put on unpaid leave, with their last day of employment being Jan. 31, according to the memo, which was first reported by Bloomberg. A spokeswoman for the New York-based bank declined to comment. Citigroup, the third biggest U.S. bank by assets and a major player in fixed income markets, has had the most aggressive vaccine policy among Wall Street firms. Rival banks including JPMorgan Chase and Goldman Sachs have so far stopped short of terminating unvaccinated employees.
