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Our briefing for Thursday, September 2, 2021:
Sep 2, 2021 3:42:38 PM
- In the United States, hospitals are under pressure as the delta variant continues to tear through the country. Over 12,000 Americans are admitted to the hospital every day with Covid-19, a number that could rise to 22,400 by Sept.27, according to modelling by the Centers for Disease Control and Prevention (CDC). Officials say more Americans need to get vaccinated to turn the situation around, and are urging the unvaccinated to avoid travelling over the Labour Day long weekend. Dr. Anthony Fauci, the top U.S. infectious disease expert, says around 80 million eligible Americans are still unvaccinated.
- In Canada, the province of Quebec has launched their vaccine passports, and proof of vaccination is now required for access to non-essential services, including indoor restaurants, gyms, theatres, sporting and other events. Quebecers will have to display QR codes, provided by the health department, along with identification to access those non-essential services. Beginning on Sept. 15, people in Quebec could face thousands of dollars in fines if they violate the health order. Ontario will follow with a similar vaccine passport system, which is expected to come into effect in late September.
- A study that came out of the United Kingdom shows that vaccines cut the risk of an infection turning into long Covid. The study, which was published in the Lancet Infectious Disease Journal on Wednesday, tracked 1.2 million people in the U.K. who had been vaccinated with Pfizer, Moderna or AstraZeneca in the first half of this year. The study found that fully vaccinated people who experience breakthrough infections are around 50% less likely to develop long Covid than unvaccinated people. The researchers say the study demonstrates the effectiveness of vaccines in preventing deaths and serious illness.
- France has begun to offer booster shots to those who are 65 and older and those with underlying health conditions. France is the first big European Union nation to offer booster jabs and is expected to be a leader for other nations. People in France can get a booster shot on the condition that six months have passed since they were fully vaccinated with a Pfizer or Moderna jab. According to the health ministry, about 18 million people are estimated to be eligible for the booster shot. So far the French government has not made any decisions about the expansion of the program to the whole population.
- In Italy police outnumbered protesters at the nation’s main train stations, as the use of the Green Pass expanded. The Green Pass is a digital or paper document that shows whether someone has received at least one Covid-19 vaccine, has tested negative or recently recovered from the virus. The Green Pass is now mandatory for travel on trains, planes and ferries (local transit is exempt). Protesters had vowed to block railway traffic on Wednesday, but in the end only a handful of protesters showed up. Approximately 70% of Italians over the age of 12 have been fully vaccinated.
- In Australia New South Wales reported 1288 new cases, just below the pandemic high of 1290 hit on Monday. Seven new deaths were also reported. Fortunately, New South Wales also hit the 70% milestone for those who have had their first dose of vaccine. Authorities are hoping to be able to introduce some new freedoms in the coming days. “At the moment, there are 8 million citizens who don’t have a choice in how they spend their free time, who don’t have a choice about what they can do, when they can leave their homes. That is no way to live,” State Premier Gladys Berejiklian said.
Covid-19 – Due Diligence And Asset Management
Stocks rise to record highs after jobless claims hit pandemic-era low
Brief: Stocks gained Thursday as investors awaited more labor market data, which will serve as crucial information in determining the path forward for the monetary policies underpinning risk assets over the past year. Ahead of a key monthly report on job gains, a new print on weekly unemployment claims came in lower than expected, underscoring further improvements in the economic recovery. The S&P 500 advanced to an all-time high. The Nasdaq also gained to set a fresh intraday record. The indexes' latest march to record highs has been powered by technology stocks, with the Nasdaq extending a run of outperformance from August. This has in turn signaled investors' concerns over the status of the economic recovery given the Delta variant's spread, with growth and technology stocks seen as more of a defensive trade amid a coronavirus resurgence.
Why the 60/40 model is here to stay
Brief: As the global economy recovers from the impact of the Covid-19 pandemic, some investors are questioning the case for a balanced portfolio of stocks and bonds, including the classic 60/40 model – particularly if bonds suffer a period of weakness due to rising inflation and interest-rate expectations. Although bond yields remain close to historic lows, they have trended higher since August 2020 as prices have fallen. At the time of writing, the 10-year US Treasury yield is up more than 40 basis points (bps) in 2021, with the 10-year gilt yielding around 39bps more than at the start of the year. The downward pressure on bond prices stems from recent economic data.
Fading Pandemic Trading Boom Sends CMC Down Most in Five Years
Brief: CMC Markets Plc slumped the most since 2016 after warning of a slowdown in activity as the pandemic-fueled retail trading boom eases. “Reduced volatility in markets has resulted in lower trading activity across both the newly acquired and existing cohort of clients,” the London-based firm said in an unscheduled update, sending the stock down as much as 29%. CMC, a provider of contract-for-difference products that allow traders to speculate on price movements without owning the underlying securities, was one of a raft of companies that benefited from people stuck at home during the pandemic being enticed to markets by a spike in volatility. The so-called “meme-stock” craze in early 2021 further aided business.
Covid Test Maker Cue Health Files for IPO After Revenue Gains
Brief: Covid test maker Cue Health Inc. filed for an initial public offering, showing a sharp turn to profitability this year. The San Diego-based company in its filing Wednesday listed the size of the offering as $100 million, a placeholder that will change when terms of the share sale are set. For the first six months of the year, Cue Health said its product revenue increased to $202 million, up from $15 million in 2020 -- all of it the second half of the year. It also erased its $47 million annual loss to log net income of $33 million in the first half of 2021, according to its filing with the U.S. Securities and Exchange Commission. Cue Health’s tests were used last year by the National Basketball Association to help limit the spread of the coronavirus among team members who played and lived in a so-called bubble in Florida.
This lawmaker is pushing for a four-day workweek
Brief: Representative Mark Takano (D-Calif.) recently introduced a bill into the House which would reduce the standard work week to 32 hours. In an interview with Yahoo Finance Live, Takano explained the rationale behind the bill. “The main problem we're trying to solve with it is the work-life balance,” Takano said. “I think that is what resonates with so many people, who during this pandemic experienced neighbors, family members, loved ones, dying. And they also experienced being able to work from home.” H.R. 4728: Thirty-Two Hour Workweek Act would reduce most workers’ standard work week by setting 32 hours as the new maximum amount of hours worked before employees are allowed to earn overtime pay.
