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Our briefing for Monday, September 27, 2021:
Sep 27, 2021 3:27:42 PM
- In the United States, the director of the Centers for Disease Control and Prevention (CDC) admits there is some confusion around who should get a booster shot. Last week the CDC backed the decision to authorize boosters for people 65 and older, adults who have underlying medical conditions and adults in high-risk jobs. CDC Director Rochelle Walensky overrode a recommendation from an advisory panel that the shots should be available only to a smaller group of people. The advisory panel wanted to exclude those people working in high-risk jobs, citing concerns about the recommendation being too broad. "This was a scientific close call. In that situation, it was my call to make," Walensky told reporters at a White House briefing. For now, boosters are only being made available to those who originally received the Pfizer vaccine.
- In Canada, an inaccurate study on Covid-19 vaccines has spread rapidly on the web and social media before finally being retracted. The study, which has not been peer reviewed, was released last week by researchers at the Ottawa Heart Institute. The study reported extremely high rates of heart inflammation linked to Covid-19 vaccines, but the researchers made a critical mathematical error and as such, the findings are false. The study has spread around the world on social media and has appeared on numerous anti-vaccination websites as so-called evidence of the damage caused by Covid-19 vaccines.
- In the United Kingdom, the government has largely gone their own way when it comes to Covid-19 restrictions. Despite objections from some experts, Prime Minister Boris Johnson removed nearly all restrictions for England back in July, ending social distancing, mask requirements and limits on gatherings. England does not require proof of vaccination for access to restaurants or even crowded venues like nightclubs. Also, while countries like Italy and the U.S. have made vaccines mandatory for millions of workers, Johnson’s government only requires them for nursing home staff. The government has argued that their strategy is working, and that they can change course anytime if necessary.
- Japan plans to lift a state of emergency by the end of the month, broadcaster NHK reports. Prime Minister Yoshihide Suga told the media that he will seek the advice of a government panel on Tuesday before making any final decisions. The current emergency restrictions have been in place now for nearly six months, with curbs requiring restaurants to close early and not serve any alcohol. Tokyo will consider keeping some curbs in place, for example, they may limit the opening hours for restaurants and only have alcohol served at pre-approved locations.
- New Zealand will begin a pilot program to allow a small number of vaccinated overseas travellers to self-isolate at home. Currently, New Zealanders have to isolate for two weeks in government-approved hotels when they return home from abroad. Prime Minister Jacinda Ardern said the pilot will start next month and will involve 150 business travellers who are fully vaccinated. “The only reason that we are running this self-isolation pilot now is in preparation for a highly vaccinated population,” Ardern said at a news conference. “The intention is that in the first quarter of 2022 when more New Zealanders are vaccinated, it will be safer to run self-isolation at home.”
- In Australia, New South Wales (NSW) Premier Gladys Berejiklian says she expects the state to reach the 80% double-vaccinated milestone by the end of October. At this point, the state can enter its next phase of reopening, which will include increased access to venues like restaurants and cafes, the option to travel freely and different limits on visitors. This builds on the first phase of the reopening which will happen at the 70% double vaccination milestone, around October 11, Berejiklian said. A third phase of the reopening will happen on December 1 and will see more freedoms for unvaccinated people, as well as eased restrictions on some venue capacities.
Covid-19 – Due Diligence And Asset Management
Biden Gets Covid Booster and Says He Wants More Vaccine Mandates
Brief: President Joe Biden received a booster shot Monday of the Pfizer Inc.-BioNTech SE Covid-19 vaccine in front of cameras at the White House and said he’ll press for more vaccination mandates to improve the U.S. inoculation rate. Biden, 78, meets guidelines issued last week by the Food and Drug Administration and the Centers for Disease Control and Prevention that those over age 65 get a third vaccination. “If you’re fully vaccinated, you’re highly protected now from severe illness even if you get Covid-19. You’re safe and we’re going to do everything we can to keep it that way with the boosters,” he said before getting his shot. “The most important thing we can do is to get more Americans vaccinated.”
Great Reopening Trade Is Back as Hedge Funds Add Stock Longs
Brief: With a helping hand from the Federal Reserve, the great reopening trade is staging a return on Wall Street as money managers bet the U.S. consumer won’t be cowed by the delta-virus variant. Equities tied to the economic cycle including value and financials are rebounding, while investors just sank $5.5 billion into the largest ETF tracking the Russell 2000 Index of small-cap companies -- the most in five years. Last week’s hawkish U.S. central bank meeting is powering rate-sensitive trades as inflation-adjusted yields hit the highest since June.JPMorgan Chase & Co. data shows hedge funds are re-building exposure to stocks hitched to the expansion, with plenty of ammo to extend longs anew. Meanwhile, an index of economic-data surprises is rebounding from recent lows, suggesting supply-side woes have yet to derail the recovery in investment and consumption as much as feared.
New Survey Finds Post-Pandemic Travel Will Pose Challenges Old and New
Brief: Wise today released the Wise International Travel Survey, assessing U.S. international travelers’ attitude and willingness to travel abroad. This comes on the heels of the White House announcing that the U.S. will reopen in November to air travelers from 33 countries who are fully vaccinated against COVID-19. According to the three market study of consumers, 82% of U.S. travelers say that as things get back to normal, international travel is one of the things that they’re looking forward to most. While 72% expressed that they are currently planning an international trip. "While the Delta Variant still presents challenges for international travel, consumers are keen to go abroad again," said Lindsey Grossman, director of product, North America for Wise.
Beaten-Down Airline Stocks Celebrate Easing of Travel Rules
Brief: The easing of U.S. and U.K. travel restrictions is breathing new life into European airline stocks. British Airways owner IAG SA has been the star of the show in the last two weeks, soaring 21% after the White House said America would open up to vaccinated foreigners and the U.K. relaxed coronavirus testing requirements for fully jabbed arrivals. Air France-KLM and Deutsche Lufthansa AG have also rallied strongly, as have budget carriers such as Ryanair Holdings Plc. But investors are divided on whether the gains can last and the industry has been a laggard for a long time. European airlines remain about 25% below pre-pandemic levels, underperforming sectors like industrials and retail, which are up as much as 30% from where they were back then.
Australia’s Morrison Tells States Their Borders Can’t Stay Shut
Brief: Australian Prime Minister Scott Morrison said state premiers must not keep borders closed once agreed Covid-19 vaccination targets are reached. “We can’t stay in second gear,” he said on a Sunday morning television program. “We’ve got to get to top gear in living with the virus.” State governments where Covid-19 cases are low, such as Queensland and Western Australia, have been reluctant to open their borders. Morrison says that will need to change when fully-vaccinated rates reach 80%, which he expects to happen before the end of the year. “I can’t see any reason why Australians should be kept from each other,” the leader said. “And so that puts a heavy, heavy responsibility on those who would seek to prevent that from happening.”
