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Our briefing for Thursday, April 14, 2022:
Apr 14, 2022 3:48:40 PM
- In the United States, the mandate that requires masks to be worn in airplanes, trains and other transit hubs has been extended for 15 days as officials assess the recent rise in Covid-19 cases across the country. Several industry groups and Republican lawmakers are calling for an immediate end to the mandate that has been in place for 14 months. The mandate which was originally set to end on April 18th is now scheduled to end May 3rd due to increasing cases caused by the Omicron variant BA.2. The Transportation Security Administration (TSA) originally called on the CDC to enforce the mandate in February of 2021, and now CDC officials are suggesting that it may be too early to remove mask requirements. The CDC says it needs “time to assess the potential impact of the rise of cases on severe disease, including hospitalizations and deaths, and healthcare system capacity.” White House press secretary Jen Psaki said the decision to end the mandate ultimately lies with the CDC and “at the end of that two weeks they can determine what’s next.”
- A study published in the Canadian Medical Association Journal found that after the first person in a household tested positive for Covid-19, 49.1 per cent of people in the house would later also test positive. The study analyzed 180 homes in the Ottawa area between September 2020 and October 2021, and found that in all, 239 of the 487 people in the same house as someone with Covid-19 would later test positive for the virus. The study’s lead author, Dr. Maala Bhatt, an associate professor of Pediatrics at the University of Ottawa, says the results show a need for Canadians to remain vigilant and continue Covid-safe practices. “I know many want to ‘live with COVID’ and abandon the layers of protection that were previously mandated, but it’s important to be aware of the high transmissibility of this virus in closed, indoor settings, such as schools,” she said. She highlighted the need to for people who are immunocompromised or who have young children to be especially cautious as vaccines are not yet available for certain groups. “While we’re lucky hospitals aren’t currently overloaded, emergency departments are and positivity rates are on the rise, even amongst children,” Bhatt said.
- Britain’s health regulator on Thursday approved an Austrian-French Covid-19 vaccine from manufacturer Valneva for use in the United Kingdom. “An approval has been granted after the Valneva Covid-19 vaccine was found to meet the required safety, quality and effectiveness standards,” the Medicines and Healthcare products Regulatory Agency said in a statement. Valneva uses the traditional technology of inactivated virus to prevent further infection and had first been authorized for emergency use in Bahrain last month. Valneva has also signed an agreement with the European Commission to provide 60 million doses of its VLA2001 vaccine in 2022 and 2023. “The independent Commission on Human Medicines and its Covid-19 Expert Working Group has carefully considered the available evidence (and) the benefit risk balance is positive,” the commission’s president, Munir Pirmohamed, said in the statement. The Valneva vaccine is the 6th vaccine to be approved in the U.K. after AstraZeneca, Pfizer, Moderna, Janssen (Johnson & Johnson), and Novavax. The vaccine is approved for use in people aged 15-50 and is taken in two doses, no less than 28 days apart.
- Four individuals were arrested in Germany for anti-government extremism as police raids were held at 20 properties across the country on Wednesday. State police seized weapons from suspected anti-government extremists who were allegedly plotting a nationwide blackout and intended to capture well known figures including the country’s health minister. Authorities said on Thursday that the suspects were members of a chat group called "United Patriots" on the Telegram messaging service. The government said the accused were associated with the protest movement against Covid-19 restrictions. In all, 12 people are under investigation for ties to the Reich Citizens group which disputes the post-World War II German constitution. According to authorities, the group planned to kidnap Health Minister Karl Lauterbach and dismantle the electricity supply facilities with a goal of producing “conditions similar to civil war.” Police seized 22 firearms, including a Kalashnikov rifle, thousands of euros in cash and found forged Covid-19 vaccination and test certificates. Lauterbach was “appalled” by the news and said, “the whole thing shows that corona protests have not just become more radical, but that it is now about more than corona – there is an attempt here to destabilize the state.”
- Authorities in Shanghai are warning that anyone who violates Covid-19 lockdown rules will be dealt with strictly. The city’s police department announced the lockdown rules and pleaded with citizens to “fight the epidemic with one heart ... and work together for an early victory.” Fearing that the outbreaks in Shanghai could quickly get even further out of control, the police department provided a stern warning to anyone considering breaking the rules. “Those who violate the provisions of this notice will be dealt with in strict accordance with the law by public security organs ... If it constitutes a crime, they will be investigated according to law,” the department said in a statement. The city is under immense pressure from the central government to contain the largest outbreak the country has seen since the virus originated in Wuhan in 2019 and have now banned vehicles from the roads apart from those who are doing virus-prevention work or are transporting people in need of medical attention. Police are warning residents, most of whom are stuck in their homes, to avoid spreading false information on the pandemic or forge transportation passes. Shanghai is averaging just under 25,000 new cases a day as the outbreak worsens.
Covid-19 – Due Diligence And Asset Management
Opening up: PE backs leisure's post-pandemic recovery
Brief: A potential bidding war for UK holiday resort group Parkdean that could include offers from Apollo Global Management and Blackstone underscores a revived appetite for hospitality and leisure—an industry that was on its knees just two years ago, but is now offering marked post-pandemic opportunities. Apollo, which is reportedly eyeing Parkdean at a £2 billion (about $2.6 billion) valuation, isn't the group's only suitor. Bourne Leisure, a rival holiday business that Blackstone bought for around £2.7 billion at the start of 2021, is also said to be mulling a bid. Like Blackstone before it, Apollo is trying to capitalize on the "staycation" trend in the UK, where more tourists are favoring domestic vacations, which has accelerated over the course of the pandemic. Last year saw a significant rebound in hospitality and leisure globally, with $55.14 billion transacted across 342 deals, according to PitchBook data. Blackstone's Bourne Leisure deal was the biggest, as lockdown measures were eased or disappeared altogether both in the UK and around the world.
Why Income-Generating Real Estate Is The Best Hedge Against Inflation
Brief: Everyone is talking about inflation these days. Knowing that products and services you buy are going to cost more can be frightening, especially if you’re locked into an income that doesn’t keep pace with inflation. Paying more for toothpaste may be the least of your worries, as retirement accounts take the biggest hit when the value of the dollar decreases. If you’re concerned about what inflation can do to your retirement dollars, it may be time to consider inflation-hedging investments. Unlike stocks, bonds and mutual funds, investing in real estate can make inflation actually work for you, increasing your income as inflation rises. While real estate investing is a proven wealth-building tool, most busy professionals don’t have time to be DIY landlords dealing with tenants, toilets and trash. However, it is possible to achieve the same inflation-hedging advantages without the headaches by investing passively through private-equity-firm-sponsored real estate syndications.
Regeneron's bid for COVID-19 drug's full approval hits snag as FDA extends review
Brief: Just as Regeneron’s COVID-19 antibody combination, REGEN-COV, is sidelined in the U.S. thanks to omicron, the drug has hit a hiccup on its quest for a full FDA nod. The FDA has extended the review of REGEN-COV by three months to July 13, Regeneron said Thursday. The agency wants to take the time to review additional data on how well the therapy could prevent COVID before exposure to the SARS-CoV-2 virus, the company said. An FDA nod in what’s known as the pre-exposure prophylaxis setting would be an expansion from REGEN-COV’s existing emergency use authorization, which currently only covers treatment of mild-to-moderate non-hospitalized patients and COVID prevention after exposure to the coronavirus. Regeneron is currently seeking full approval for all three uses. The FDA appears to have some questions about the pre-exposure prophylaxis use. The extension comes after Regeneron submitted additional data on that use from a prophylaxis trial during “ongoing discussions” with the FDA. The agency hasn’t requested any new studies at this point, the company added.
UN: “Great finance divide” amid COVID-19 poses major setback for sustainable development
Brief: The crippling cost of debt financing for many developing countries has hamstrung their recovery from the COVID-19 pandemic, forced cutbacks in development spending, and constrained their ability to respond to further shocks, according to a new report launched by the United Nations today. The 2022 Financing for Sustainable Development Report: Bridging the Finance Divide finds that while rich countries were able to support their pandemic recovery with record sums borrowed at ultra-low interest rates, the poorest countries spent billions servicing debt, preventing them from investing in sustainable development. The pandemic shock plunged 77 million more people into extreme poverty in 2021, and by the end of the year many economies remained below pre-2019 levels. The report estimates that in 1 in 5 developing countries’ GDP per capita would not return to 2019 levels by the end of 2023, even before absorbing the impacts of the Ukraine war. “As we are coming up to the halfway point of financing the world’s Sustainable Development Goals, the findings are alarming,” UN Deputy Secretary-General Amina Mohammed said. “There is no excuse for inaction at this defining moment of collective responsibility, to ensure hundreds of millions of people are lifted out of hunger and poverty. We must invest in access for decent and green jobs, social protection, healthcare and education leaving no one behind.”
Goldman Sachs' Q1 profit beats on strength in wealth management, trading
Brief: Goldman Sachs Group Inc reported a 43% drop in profit but beat Wall Street expectations on Friday, as strong performances in its wealth management and trading businesses partly offset a slump in equity underwriting as stock market listings dried up. Wall Street banks have come under pressure amid a slump in dealmaking globally, but volatility fueled by concerns around interest rate hikes and the economic fallout of the Ukraine war helped Goldman's trading desks smash expectations. The bank's global markets segment reported net revenue of $7.87 billion, a 4% jump from last year when accommodative monetary policy from the U.S. Federal Reserve led to bumper levels of trading activity. The robust performance was driven by a 21% rise in fixed income revenue, the bank said. The Wall Street bank has also been taking measures under Chief Executive David Solomon to diversify its revenue stream and earn more from predictable sources like consumer banking, wealth and asset management
