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Our briefing for Thursday, October 7, 2021:
Oct 7, 2021 3:57:45 PM
- In the United States, the government announced they will be purchasing an additional 180 million at-home rapid Covid-19 tests. The purchase will help quadruple the availability of rapid tests by the end of the year, the White House said. “We’ll continue to pull every lever to expand manufacturing production of tests which will have the impact of driving down the cost per test and making sure that tests are widely available and convenient,” said Jeff Zients, the White House Covid-19 coordinator. About half a billion tests per month will be made in the U.S. by December.
- In Canada, a group of healthcare professionals has warned that action is needed from all levels of government to address the Coviid-19 healthcare crisis. An emergency summit that brought together members of over 30 healthcare organizations including the Canadian Nurses Association and Canadian Medical Association took place on Tuesday night. Leaders from both organizations reported high levels of staff burnout and the need for government to intervene following the summit. They asserted more supports are needed for healthcare workers including mental health supports, and better ways of addressing staff shortages. They also said they wanted government to take responsibility for its role in the Covid-19 crisis.
- In the United Kingdom, the government is expected to announce changes to its “red list” for international travel. On Monday the government’s traffic light system was replaced by a single red list. Currently there are 54 countries on the red list, including Mexico, all of mainland South America, and southern and eastern Africa. The government is expected to cut the list down to about a dozen countries. Red list countries are those that the U.K. advises should not be visited, except in rare circumstances. Anyone returning from a red list country is still required to quarantine for 10 days in a government-approved hotel.
- Sweden and Denmark have paused the use of Moderna’s Covid-19 vaccine for younger people because of an increased risk of heart inflammation, which is a rare side effect. Sweden has said it will pause the shots for anyone 30 and under, while Denmark has said they won’t offer it to those under 18. Both countries’ decisions were based on an unpublished Nordic study that pointed to an increase in myocarditis and pericarditis among young adults that had been vaccinated by Moderna. There is only a very small risk of being affected.
- South Korea has secured 20,000 courses of Merck’s oral antiviral medication for Covid-19, following countries like Australia and Singapore. Prime Minister Kim Boo-kyum said on Wednesday that South Korea is also looking to buy other antiviral drugs. "We already have secured a budget enough for treatment of around 40,000 people and have signed a pre-purchase deal for 20,000 courses," Kim said in a Covid-19 response meeting. Molnupiravir’s treatment involves patients taking four pills twice a day for five days. It is on track to become the first available oral antiviral medication for Covid-19.
- Australia’s New South Wales (NSW) announced some changes to their roadmap, with an increased focus on reopening. From October 11, visitors in homes will be allowed to increase to 10, double what the previous roadmap had outlined. Premier Dominic Perrottet also changed the limit on outdoor gatherings from 20 to 30, and increased the cap for weddings and funerals from 50 to 100. Perrottet said the changes to the roadmap do not mean that he disagrees with his predecessor, Gladys Berejiklian. NSW reported 587 new cases as infections continue to trend downward.
Covid-19 – Due Diligence And Asset Management
The World Bank is More Upbeat on Mideast’s Post-Covid Recovery
Brief: The World Bank has revised upward its economic growth projections for the Middle East and North Africa to 2.8% this year from an earlier estimate of 2.2%, as vaccine campaigns gather pace and pandemic restrictions ease. The Washington-based lender now calculates the total cost of the pandemic at around $200 billion in terms of gross domestic product losses, according to its latest regional economic review published on Thursday. Growth in 2021 will still lag behind pre-pandemic levels and is seen at 4.2% next year, as some countries have been slower to address the public health crisis. The Middle East and North Africa was hit hard by the coronavirus pandemic last year and, like the rest of the world, lockdown measures introduced to combat the spread of the virus left many of its economies in distress. Going forward, governments must ensure efficient vaccination campaigns to prevent public health from deteriorating once again, the report said.
IMF urges governments to make fiscal plans to tame pandemic debt
Brief: Governments should start planning a return to more sustainable budgets with policies that win the trust of investors, after unprecedented fiscal stimulus to fight the COVID-19 pandemic, the International Monetary Fund said on Thursday. But each country must determine the appropriate timing and pace of fiscal consolidation based on its own individual circumstances, the IMF said in its Fiscal Monitor report. The fiscal plans needed to consider the stage of the pandemic, existing fiscal vulnerabilities, the risk of economic scarring, pressures from aging populations, development needs and historical difficulties in collecting revenues. "There are countries where the pandemic is still raging and therefore the priority continues to be the health emergency," IMF deputy fiscal affairs director Paulo Mauro told Reuters in an interview.
Investor sentiment falls on government recovery plans
Brief: UK-based investors are losing faith in the Government’s ability to rebuild the economy following the pandemic, HYCM research has found. The survey of nearly 1,500 investors with investments of more than £20,000 excluding property, savings and workplace pensions, found that 60% do not believe Prime Minister Boris Johnson and the Conservative Government have handled the pandemic properly. An additional 59% said they lack faith in the government's ability to tackle the record levels of public debt that was accrued during the coronavirus pandemic, while half of UK investors said they are concerned about the potential of acute economic austerity over the coming years. "As recent policy reforms would suggest, the government is already taking significant action to repay the large level of public debt accumulated during the pandemic.
Asset Managers Are Losing Out on Talent. Executives Think Culture Is to Blame.
Brief: The ways people work are changing, and some asset management executives are worried the industry won’t be able to keep up. Asset management executives surveyed by Accenture expressed concerns around changes in technology and permanent adoption of remote work. For instance, 68 percent of respondents answered “yes” when asked if they believed their firm’s culture is resistant to adopt new technologies. The survey, which included 100 c-suite asset management executives, is expected to be released Thursday. Respondents were largely based in the U.S. and included a range of positions, including chief information officers, chief operating officers, and chief technology officers. Firm types included asset management subsidiaries, alternative asset managers, and standalone asset managers.
Bank of America offers $200 to vaccinated Merrill staffers going to office
Brief: Bank of America Corp will pay out $200 awards to its employees at Merrill Lynch Wealth Management who have been fully vaccinated and going to office regularly, according to a memo shared with Reuters on Wednesday. The awards will be offered to client associates, administrative support and operations staff at BofA-owned Merrill Lynch, a spokesperson for the bank said. For now, only those staffers who have confirmed they have received their vaccines were asked to return to office, the spokesperson said. “While there is no vaccine mandate across the company, we strongly recommend employees be vaccinated and to notify us of their status.” More than 80% of Merrill employees have voluntarily reported their vaccination status and have or are returning to the office, the spokesperson added.
