.png?width=200&height=78&name=CH%20Diligence%20(thicker%20line).png "CH Diligence (thicker line).png")
Our briefing for Thursday, September 30, 2021:
Sep 30, 2021 4:27:34 PM
- In the United States, a new poll has found that a lower number of people are opposed to Covid-19 vaccines, compared with last month. The poll was conducted between September 13-19 by Gallup, involved 4034 adults and had a margin of error of plus or minus two percentage points. There were 75% of respondents who said they are either fully or partially vaccinated, 5% said they plan to be. The 80% is an increase from the 77% reported back in August, and the highest number this year according to Gallup. The results come amid a national push for higher vaccine rates, as officials urge citizens to roll up their sleeves and get the shot. To date about 55% of Americans are fully vaccinated.
- In Canada, the province of Alberta is dealing with soaring case numbers and record numbers of deaths and hospitalizations. Pressure is growing for Premier Jason Kenney to take bold action to address the situation, as case numbers reach more than 20,000 and hospitalizations reach more than 1000. Doctors and health experts, as well as the Canadian Medical Association, are calling for lockdowns in the province - short, controlled lockdowns often known as “firebreakers.” Kenney has previously told the media that he will not implement a lockdown, saying it would be a punishment for the vaccinated.
- In the United Kingdom, Scotland has delayed the enforcement of its vaccine passport system after receiving backlash from nightclubs. First Minister Nicola Sturgeon says she understands that venues need more time to adapt to the regulations. They will still come into effect on Friday October 1, but businesses will have a grace period until October 18 where they will not face punishment for non-compliance. The rules of the vaccine passport system require anyone age 18 or older to show proof of vaccination or exemption before they’re allowed in a nightclub, an indoor event with more than 500 people or an outdoor event with more than 4000 people.
- A hospital chain in Brazil has been accused of giving unproven Covid-19 treatments to patients without their knowledge and covering up their deaths. The lawyer for a group of whistleblowing doctors, Bruna Morato, said at least nine patients died while they were receiving the experimental treatments. The treatments used drugs such as ivermectin and hydroxychloroquine, which are not proven to be effective for treating Covid-19. Morato says the hospitals were helping the Bolsonaro government who had been promoting the unproven drugs. The hospital chain, Prevent Senior, denied all the allegations, saying that they have never hidden or under-reported deaths.
- Singapore faced its second straight day of cases topping more than 2200 as the country deals with some of its worst numbers since the pandemic began. They reported a record number of eight deaths on Wednesday, bringing the total number of deaths since the beginning of the pandemic to 93. Of those deaths that were reported, six were among unvaccinated people, all of them were seniors ages 72-90, the health ministry said. The figures, though high for Singapore, are still extremely low compared to other countries. About 82% of the population over 12 in Singapore have been fully vaccinated.
- In Australia, the state of Victoria reported 1438 new infections, up from 938 the previous day, a more than 50% increase. According to Jeroen Weimar, the state’s Covid-19 response commander, the rise in cases was the result of social gatherings that took place for the Australian Football League championship match. About 500 new cases were a result of such gatherings, Weimar said. “We’ve had the most activity on our roads over a three-day weekend of any lockdown weekend since the end of July,” he said. About 55% of the new cases reported were among men, many of them younger.
Covid-19 – Due Diligence And Asset Management
G-7 ministers set to meet on reopening international travel
Brief: Transport and health ministers of the G-7 countries are due to meet virtually on Thursday to discuss ways to restart international travel, according to people familiar with the matter. The meeting is being organized by the U.K., which holds the presidency of the Group of Seven nations this year, said the people, who asked not to be identified ahead of any official statement. It’s aimed at moving closer to a consensus on how to ease border restrictions. While some countries, notably members of the European Union, have used so-called vaccine passports to successfully resume cross-border travel, others including the U.S. have held back on implementing app-based technology over concerns ranging from politics to privacy or fairness between people who have and haven’t received the shots. Another sticking point has been whether to recognize vaccines in countries where they haven’t been approved.
U.K. Economy Emerged From Lockdown More Strongly Than Estimated
Brief: The U.K. economy emerged from the winter lockdown more strongly than previously estimated, but the recovery is already running into trouble. Gross domestic product rose 5.5% in the second quarter instead of the 4.8% previously estimated, Office for National Statistics figures published Thursday show. The increase, which reflected the reopening of stores and the hospitality sector, left the economy 3.3% smaller than it was before the pandemic struck. Government spending, exports and business investment were all stronger than previously estimated by the ONS. Hopes that the shortfall might be made up this year are fading, with consumers and businesses facing the twin headwinds of accelerating inflation and supply chain problems. Bank of England Governor Andrew Bailey on Wednesday said that output is unlikely to recover its pre-pandemic level until early next year, later than officials predicted in August.
A $1.8 Billion Hedge Fund Soared 120% During the Covid-19 Pandemic
Brief: David Rogers is having a dream run at Castle Hook Partners, the $1.8 billion hedge fund backed by investors including billionaire Stan Druckenmiller. The fund is up about 120% since April 2020, according to people with knowledge of the matter, after taking a hit in the early part of last year in the pandemic’s initial selloff. It lost 10% in the first three months of 2020, said the people, asking not to be identified because the information is private. The turnaround is in sharp contrast to the fund’s modest returns since starting five years ago with about $900 million. The money included a substantial anchor investment from Druckenmiller who trained Rogers at his former hedge fund Duquesne Capital Management and once described him as an “extremely talented” money manager. Gains in 2020 were evenly split between wagers on equities, rates and foreign exchange, according to one of the people. The firm turned bullish on inflation and commodities late last year, themes that continued to drive performance in 2021, the person said.
Pandemic recovery fuels deal craze as third-quarter M&A breaks all records
Brief: Global mergers and acquisitions hit new record highs in the third quarter as companies and investors shaped their post-COVID future through transformative deals while their advisers struggled to cope with transaction volumes never seen before. A frantic summer of merger activity produced deals worth $1.52 trillion in the three months to Sept. 27, up 38% from the same quarter last year and more than any other quarter on record, according to Refinitiv data. Third-quarter volumes drove global M&A activity in the first nine months of 2021 to an unprecedented record of $4.33 trillion, overtaking an all-time annual peak of $4.1 trillion hit before the financial crisis in 2007 and forcing investment banks to hike pay for overworked and disgruntled junior staff.
Impact Investing: Embracing Change and Optimizing Long-Term Value
Brief: Expectations for the behavior of institutional investors are changing. As societies around the world deal with the challenges of climate change, a global pandemic, social upheaval and other adversities, institutional investors are being asked to take a much more expansive view of risk than many traditional investment models currently account for. Increasingly, this includes optimizing their investments and overall portfolio for environmental, social and governance (ESG) impact. According to Nuveen’s annual survey of institutional investors, almost 70% of investors indicated that they plan to seek out more ESG-oriented alternative investments in the near term. Additionally, over 70% agree that ESG is about fully integrating environmental, social and governance factors into investment decision-making. With this holistic view, investors can pursue the stability, diversification, financial performance and positive real-world benefits that underpin long-term value growth.
