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Our briefing for Monday, October 25, 2021:
Oct 25, 2021 4:13:21 PM
- In the United States, Dr. Anthony Fauci, the country’s top infectious disease expert, says vaccines for children ages five to 11 should be available by November. A Food and Drug Administration (FDA) advisory committee will meet tomorrow to discuss the submission from Pfizer requesting approval for vaccines to be delivered to the age group. The advisory committee will then hand it off to the Centers for Disease Control and Prevention (CDC) advisory group for their recommendation. "If all goes well, and we get the regulatory approval and the recommendations from the CDC, it's entirely possible, if not very likely, that vaccines will be available for children from five to 11, within the first week or two of November," Fauci told ABC News on Sunday.
- Canada’s provinces of B.C. and Ontario are easing some of their coronavirus curbs as vaccination rates across the country continue to rise. The nation’s top doctor, Theresa Tam says while about 90% of Canadians have had their first dose, it’s important to consider vaccines as part of a broader strategy that should also include other measures. B.C. for example, will remove capacity limits for large events like concerts and weddings, but it will maintain masking rules in addition to requesting proof of vaccination. Ontario will also remove capacity limits for most settings, while still requiring proof of vaccination. Ontario laid out a plan to remove almost all remaining Covid-19 restrictions by March, including masks and proof of vaccination requirements.
- In the United Kingdom, Health Secretary Sajid Javid says the government is “leaning towards” mandatory vaccinations for all members of the National Health Service (NHS). A similar mandate is already in place for long-term care workers, who must be fully vaccinated by November 11. Javid said while the government is set to make a final decision soon, the vast majority of NHS workers are already vaccinated. "What we saw with the care sector is that when we announced the policy, and then we set it in law…then we saw many more people come forward and do the right thing and get vaccinated," he said. “And that's what I hope that, if we do the same thing with the NHS, we will see."
- In Germany, coronavirus infections have crept back up to their highest levels since mid-May, reaching 100 cases per 100,000 in the past seven days. The incidence rate, which used to be the determining factor for imposing lockdowns, reached 100 on Saturday, up from 95 on Friday according to the Robert Koch Institute. Germany stopped using the incidence rate as its yardstick for lockdown measures in August, instead deciding to focus on hospitalizations. The country’s state of emergency is set to expire on November 25, when all restrictions will automatically end unless extended by parliamentary vote. Health Minister Jens Spahn says it will be possible to lift the state of emergency while still maintaining measures like mask wearing and proof of vaccination.
- New Zealand reported 109 new coronavirus cases, its second-worst day on record since the pandemic began. This brings the total number of cases for this outbreak to 2681. So far most of the cases were reported Auckland, however there was one community case reported in the country’s South Island over the weekend. Health officials have said the risk of further spread from this case remains low. On Friday Prime Minister Jacinda Ardern said lockdown restrictions would be lifted only when 90% of the eligible population is fully vaccinated. As of today, 71% of eligible New Zealanders are fully vaccinated, including 77% in Auckland.
- Australia is set to start rolling out booster shots as early as November, officials said. The Therapeutic Goods Administration (TGA) met today to review the data provided by Pfizer before giving their advice on whether to approve a third jab. If approved, up to 1.6 million booster shots could be delivered by the end of this year. Moderna is also expected to make a submission to the TGA in the near future. Healthcare workers and those in long-term care homes are expected to be among those offered boosters in the initial phase. About 87% of the eligible population have received their first dose of vaccine in Australia.
Covid-19 – Due Diligence And Asset Management
Investors 'play chicken' with Bank of Canada as inflation soars
Brief: Canada's hot inflation and recovering job market are raising pressure on the Bank of Canada to hike interest rates ahead of schedule, with investors looking to a policy announcement this week for clues that the central bank is turning more hawkish. The BoC, led by Governor Tiff Macklem, is expected on Wednesday to raise its inflation forecast and to largely end stimulus from its pandemic-era bond buying program, starting a countdown of sorts to the first interest rate hike since October 2018. The central bank has pledged to keep rates at a record low 0.25% until economic slack is absorbed, which would happen in the second half of 2022 in its latest forecast, and has long maintained that the factors pushing up inflation are transitory.
Saudi Seeks 50 Million Tourist Visits in 2022 in Covid Recovery
Brief: Saudi Arabia is expecting 50 million tourist visits in 2022 as it seeks to rejuvenate a nascent effort to promote domestic and international vacations stymied by the pandemic. “We have already started the recovery journey, and it will continue to 2023, 2024,” Tourism Minister Ahmed Al Khateeb told Bloomberg TV at the Saudi Green Initiative Forum. He also unveiled a new center focused on sustainable tourism as part of efforts, announced by Crown Prince Mohammed bin Salman over the weekend, to bring planet-warming emissions in the world’s biggest exporter of oil to net zero by 2060. The coronavirus crippled worldwide travel just months after Saudi officials outlined plans to attract foreign holidaymakers for the first time. The country is relying on tourism to help drive economic diversification and create jobs for its growing population.
Asia stocks mixed after Wall St slips, China travel curbs
Brief: Asian stock markets were mixed Monday after Wall Street slipped and China tightened travel controls in some areas in response to coronavirus infections. Shanghai, Hong Kong and Sydney advanced while Tokyo declined. Wall Street’s S&P 500 index declined 0.1% on Friday, weighed down by losses for tech companies after a seven-day streak of gains. In China, Gansu province in the northwest closed tourist sites Monday after coronavirus cases were found and the capital, Beijing, banned visitors from areas with infections in the past 14 days. China has reported only a few dozen cases, but Beijing’s response of curbing travel prompted concern that they might weigh on economic activity that already is weakening. “One may expect aggressive measures to control virus spreads, which may put a cap on growth,” said Yeap Jun Rong of IG in a report.
HSBC profits rise 74% as economy rebounds from Covid crisis
Brief: HSBC’s profits rose 74% in the third quarter as improving economic conditions allowed the bank to release hundreds of millions of pounds originally set aside for a potential jump in loan defaults during the pandemic. The London-headquartered bank said pretax profits rose to $5.4bn (£3.9bn) in the three months to 30 September, up from $3.1bn a year earlier. It easily beat City forecasts for profits of $3.8bn for the quarter. HSBC credited continued economic stability for helping increase its profits, as improving conditions allowed customers to repay their debts on time. It meant HSBC could release about $700m from the pile of cash it built up during the pandemic to help cushion the blow of a potential surge in defaults. It nearly offset the $785m loan loss charge that HSBC logged during the same period last year. Analysts had expected a further $236m charge in the third quarter. The better-than-expected results led HSBC to announce a share buyback programme, which will result in up to $2bn distributed to its investors.
Global Banks Step Up Pressure on Hong Kong to Ease Restrictions
Brief: The finance industry is ratcheting up pressure on Hong Kong to ease its strict quarantine rules and abandon its zero-Covid policy after a survey found almost half of major international banks and asset managers are contemplating to move staff or functions out of the city. In a letter sent over the weekend to Financial Secretary Paul Chan that was seen by Bloomberg News, the Asia Securities Industry & Financial Markets Association, the top lobby group for financial firms in the city, said the hard-line approach has put Hong Kong’s status as financial center, its broader economic recovery and competitiveness at risk. The lobbying body’s growing alarm comes as other financial centers, including Singapore, London and New York, are starting to get back to normal, easing travel rules while seeking to co-exist with the virus. Hong Kong has some of the world’s strictest quarantine policies, placing incoming travelers in quarantine for as long as three weeks, a strategy that has been largely successful in keeping local infections at close to zero.
