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Our briefing for Thursday, February 17, 2022:
Feb 17, 2022 3:58:18 PM
- Texas is saying that the American Centers for Disease Control and Prevention overstepped its boundaries with a rule intended to stop the spread of Covid-19. The state is suing to block the Biden administrations mask mandate on all public busses, planes, and trains. Texas alleges that the mandate, which has been in place for almost a year, was put in place without following the proper channels, including the implementation of a public comment period. The state filed the complaint on Wednesday in Fort Worth seeking a court order that would permanently block the mandate, which also applies to transportation terminals. The state claims that the mandate is overreaching and that it is a “blanket preventative measure against people that may or may not carry infectious disease.” Texas Attorney General Ken Paxton, who has filed several lawsuits against the federal government in the past said that “President Biden cannot continue governing through executive edicts,” and “now is the time to strike down his administration’s air-travel mask mandate.”
- Canada has approved another Covid-19 vaccine for use in people aged 18 and older. The American manufactured Novavax vaccine has now joined Pfizer, Moderna, AstraZeneca and Johnson and Johnson on the list of acceptable vaccines for use in adults in Canada. Novavax’s two-shot Nuvaxovid product has not yet been approved for use in people under 18, as its effectiveness has not yet been proven for that age group. Test results from trials of the Novavax vaccine have shown that it is 90 per cent effective in preventing symptomatic cases of Covid-19 and 100 per cent effective in preventing serious illness caused by the virus. The Nuvaxovid shots have also shown the ability to produce neutralizing anti-bodies that are effective against the Omicron variant. As of Wednesday, the Canadian government has ordered 52 million doses of Nuvaxovid, with an option to purchase another 24 million if the government sees fit. Other countries that have already approved the vaccine include the U.K., New Zealand, and Australia.
- Children aged 5 to 11 in the United Kingdom will now be offered a low dose of Pfizer/BioNTech coronavirus vaccine. The decision comes after months of deliberation from the Joint Committee on Vaccines and Immunisation (JCVI). The committee has suggested that the low dose shots are beneficial to children, despite the large number of whom have already contracted the virus, because the vaccines will provide them further protection against any variants that may arise in the future. The JCVI estimates that vaccinating one million children will effectively prevent nearly 100 hospitalizations if the next variant is similar to the previous Delta variant, or 17 if the next wave is similar to the less severe Omicron variant. The vaccination effort is set to begin in April of this year, with pharmacies and general practitioners being selected to administer the doses. Health Secretary Sajid Javid said “the NHS will prepare to extend this non-urgent offer to all children during April so parents can, if they want, take up the offer to increase protection against potential future waves of Covid-19.”
- In Portugal, government officials have rescinded the recommendation that people should work from home whenever possible as case numbers in the country have dropped over the last several weeks. The government also plans to scrap the need for people to show a negative Covid-19 test before entering sporting events, nightclubs and restaurants, Presidency Minister Mariana Vieira da Silva said in a cabinet meeting on Thursday. Capacity limits in malls and other urban settings will be removed, along with the need to self-isolate after coming into close contact with someone infected with the virus. Some of the restrictions still in place include the need for children to wear masks in classroom setting, and Da Silva said that if deaths continue to decline, more restrictions will be lifted. Earlier in the year, Portugal experienced record-breaking numbers of Covid-19 infections, however, due to one of the highest vaccination rates in the world, intensive care units did not see a large influx of patients.
- Japanese Prime Minister Fumio Kishida has eased border restrictions as he tries to navigate away from the stringent mandates the government has employed throughout the pandemic. Experts suggest the alleviation of the previously strict border measures is an attempt to cling to power as Covid-19 policies have proven a political nightmare in a country who has toppled two prime ministers within the span of the pandemic. In a news conference on Thursday, Kishida said that the country will now allow foreigners to enter, but not for tourism. Only those with business or familial obligations will be allowed across the border, and quarantine regulations have also been dialed back. “The circumstances have changed greatly not only within our borders, but overseas,” Kishida said. “We have decided to revise border control measures but it’s not realistic to ease them all at once.” Japan has capped the number of daily entrances to 5000, up from the previous 3500. The government has been facing backlash as of late from prominent voices in the business community who say that due to border restrictions, companies were having trouble finding workers.
Covid-19 – Due Diligence And Asset Management
Great Resignation Increased in Eight U.S. States in December
Brief: The Great Resignation improved in most U.S. states in December but worsened in eight, with Alaska, Virginia and Ohio seeing the largest increases in their quits rates. The quits rate -- or the number of quits as a percent of total employment -- fell in 36 states and the District of Columbia in the final month of 2021, according to Labor Department data released Thursday. Six states saw no change. Meanwhile, the quits rate in Alaska rose 1.6 percentage points at the end of 2021 to 5.5% and jumped 0.7 point to 3.3% in Virginia. With a near-record number of job openings nationwide, the number of Americans voluntarily leaving their jobs has surged. Those leaving can often secure a job with better pay, more flexibility or both. The unemployment rate has fallen to 4% nationally, and companies have bid up wages in an attempt to attract and retain employees. While all states have struggled with similar issues, the extent of the problem differs by location. Thirty-four states had higher quits rates than the national figure of 2.9% in December. North Carolina, Illinois and Georgia saw the largest decline in the number of people quitting in the month.
Mass Testing Paves Way for Hong Kong Reopen, Stock Watchers Say
Brief: Market watchers are optimistic that Hong Kong’s plans for mass Covid-19 testing could stem the resurgence of virus cases, with stocks tied to economic reopening advancing in a volatile session Thursday. Leveling out daily infections could ultimately lay the groundwork for an eventual reopening - even if that seems far away, they say. Hong Kong is intensifying efforts as the latest outbreak rips through the city, with local media reporting about 5,000 new Covid cases on Thursday. While broader markets in the financial hub and in Asia were whipsawed by renewed geopolitical tensions over Ukraine, shares of Macau casino operators and cosmetics makers climbed in Hong Kong. Further gains could help broaden the rise in the MSCI Hong Kong Index, which has rallied more than 8% since a December low, among the top-performing stock benchmarks in Asia. The advance was boosted by financials, which make up about half of the gauge’s weighting, amid a surge in global bond yields.
Yellen Calls for New World Bank Fund to Fight Future Pandemics
Brief: U.S. Treasury Secretary Janet Yellen urged her counterparts from leading industrialized countries to support the establishment of a new World Bank fund intended to prevent and prepare for future global health crises. A new “financial intermediary fund” under the auspices of the World Bank would help address gaps in preparedness, particularly among low-income countries, Yellen said, according to prepared remarks she’s scheduled to deliver virtually on Thursday to a meeting of finance ministers and central bank governors from Group of 20 countries. “We don’t see this as a pool of money that sits idly waiting to respond to the next pandemic,” Yellen said. “It will be used in the near term to incentivize countries to make investments to fill existing gaps in their ability -- and our collective capacity -- to prevent and prepare for the next crisis.”
Trudeau Anti-Protest Law Sweeps Across Canada Finance Sector
Brief: Prime Minister Justin Trudeau’s emergency orders aimed at cutting off funds to protesters have cast a wide net across the Canadian financial industry, forcing portfolio managers and securities firms to take a harder look at who they are doing business with. The new rules make demands of a broad list of entities — including banks, investment firms, credit unions, loan companies, securities dealers, fundraising platforms, insurance companies and fraternal benefit societies. They must determine whether they’re in “possession or control of property” of a person who’s attending an illegal protest or providing supplies to demonstrators, according to orders published by the government late Tuesday night. If they find such a person in their customer list, they must freeze their accounts and report it to the Royal Canadian Mounted Police or Canada’s intelligence service, the regulations say. Any suspicious transactions must also be reported to the country’s anti-money-laundering agency, known as Fintrac.
AI Robots Battling Supply Chain Disruptions Valued at €5 Billion
Brief: Finnish software maker Relex Solutions raised 500 million euros at a valuation of 5 billion euros ($5.7 billion) in a funding round spurred by demand from retailers suffering from supply-chain disruptions. Relex’s artificial intelligence products let businesses such as grocery stores forecast which products to buy, in what quantities, and where best to allocate space for the inventory in stores and warehouses. “Global supply chain disruptions were one of the reasons why we decided to do the round, to enable us to grow,” Relex Chief Executive Officer Mikko Karkkainen said in an interview. “The past couple of years have shown many companies vulnerabilities in their supply and value chains.” Relex said in a statement Thursday that it has about 1,300 employees, and the CEO said the company will use some of the money raised to hire hundreds more across roles in software development, marketing, customer support and delivery.
