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Our briefing for Tuesday, July 27, 2021:
Jul 27, 2021 3:51:31 PM
- In the United States, travel restrictions will remain in place as the country continues to deal with the delta variant and rising coronavirus case numbers. The first round of travel restrictions was imposed by the U.S. on China in January 2020 to address Covid-19. Since then, more countries have been added and the ban now applies to most non-U.S. citizens who recently visited the U.K., the 26-nation Schengen bloc in Europe, Brazil, Ireland, India, Iran and South Africa. The announcement comes amid lobbying from airlines and the tourism industry to lift the restrictions before the end of summer. The Biden administration has not offered any indication as to when the restrictions might change.
- In Canada, two Ontario ministers have asked Ottawa to ensure mixed vaccines will be recognized for international travel. Health Minister Christine Elliott and Solicitor General Sylvia Jones wrote to Intergovernmental Affairs Minister Dominic LeBlanc on Sunday. They asked the federal government to work with the World Health Organization to help guide international partners, so that they will recognize mixed vaccines as an accepted regimen. Ontario and other Canadian provinces have allowed citizens to mix Pfizer-BioNTech and Moderna vaccines, or to take an mRNA shot after a first of the Oxford-AstraZeneca vaccines.
- In the United Kingdom, an expert from the Scientific Advisory Group for Emergencies (Sage) says the worst of the pandemic could be over by late September. Epidemiologist Neil Ferguson says it’s still too early to tell what effect the July 19 unlocking in England will have, but that vaccines are having a major impact. “We’re not completely out of the woods, but the equation has fundamentally changed. The effect of vaccines is hugely reducing the risk of hospitalisations and death. And I’m positive that by late September or October time we will be looking back at most of the pandemic,” he said. “We will have Covid with us, we will still have people dying from Covid, but we’ll have put the bulk of the pandemic behind us.”
- In Spain, although the incidence rate of Covid-19 cases continues to rise, officials are starting to see some positive signs. The 14-day incidence rate reached 700 infections per 100,000 inhabitants on Monday, the highest rate registered in Spain since February 5. Deputy Health Minister Silvia Calzon told a press conference that 65% of new cases were among people below the age of 40, based on the way Spain has prioritized its vaccination program by age groups. “It looks like we are starting to observe a deceleration in the incidence's rhythm of growth,” she said.
- In Japan, just days after the Olympics began, Tokyo reported its highest number of new coronavirus cases. On Tuesday the city reported 2,848 new cases, which exceeds their former record of 2,520 cases set in January. According to experts, the sharpest increase in cases has been among younger, unvaccinated people. Japan’s vaccination drive has been slow and began late, according to the government 25.5% of Japanese have been fully vaccinated. The city of Tokyo is still under its fourth state of emergency, which will continue through to the end of the Olympics.
- In Australia, the state of Victoria announced they will lift their lockdown restrictions after successfully curbing the spread of Covid-19. The neighbouring state of New South Wales reported 172 new Covid-19 cases in a 24-hour period on Tuesday, a new daily record. Victoria reported just 10 new cases on Tuesday, and all had been in quarantine while they were infectious. Pubs, restaurants and schools will reopen in Victoria, although people will not be allowed to have visitors in their homes for another two weeks.
Covid-19 – Due Diligence And Asset Management
Private Equity ‘a Shot in the Arm’ for Middle Market Businesses
Brief: In a recent snap poll by audit, tax and consulting firm RSM, almost three quarters (74 per cent) of private equity backed middle market businesses said that their investor has had a positive effect on their firm’s future prospects. Nearly seven in 10 (69 per cent) believed their private equity investor had a positive effect on their firm’s resilience during the global Coronavirus pandemic, as communication between businesses and investors increased for nearly three fifths of the companies (68 per cent). With 59 per cent of businesses saying that the pandemic has had a negative or very negative effect on trade, the findings highlight that the strength and guidance private equity investment brings has supported growing middle market businesses throughout a difficult year.
The Firms Keeping Investors in the Know in Latin America
Brief: When the Covid-19 pandemic shut the world down last year, there was little time for anyone to adapt. But for the business of corporate access — which until last year connected investors and companies largely through travel and in-person events — the transition was especially stark. For Brazilian provider BTG Pactual, this happened in the middle of a roadshow where, after one day of meetings, the event went instantly, if unexpectedly, virtual on the second day. “Companies from their end understood that they had to be in contact with investors and clients and converted their interactions to online meetings as well,” recalls Carlos Sequeira, head of research at BTG Pactual. “Our straight relationship with IR and management teams helped to enhance the events calendar with several online group meetings since the first week of lockdown.”
Hedge Fund Investors Pleased After Best Start To A Year Since 2009
Brief: The vast majority of hedge fund investors were pleased with the performance of their funds during the first half of this year, according to a new study from HFM and the Alternative Investment Management Association (AIMA). As a result, more than one-third of investors are planning to boost their allocation to hedge funds. The study is based on surveys and interviews with 108 investors in alternatives and 128 senior hedge fund investor relations and marketing professionals during the second quarter. With an 8.9% average return, hedge funds reported their most robust first half of a year since 2009, which is one reason investors were so pleased with their fund returns. HFM and AIMA also said investors have been rewarding hedge funds for their performance as inflows in the first five months of the year amounted to $57.8 billion, more than double the $23.4 billion recorded in the first five months of 2021.
Europe's venture capital market booming in 2021
Brief: The last 16 months have provided every aspect of society with an unprecedented challenge, yet Europe's venture capitalists are fuelling a red-hot market that looks to be anything but challenged. While the startup market is booming globally, Europe's scene of private startup investment deserves close attention for the particularly astounding rate at which innovation is accelerating. According to Dealroom's latest report, Europe is the fastest growing major region by venture capital investment - outpacing both the US and China - with investment in European startups having grown by 2.9x YoY to EUR49 billion in the first six months of 2021 alone.
IMF Forecasts 6% Global Growth This Tear as Economies Reopen
Brief: The International Monetary Fund is sharply upgrading its economic outlook this year for the world’s wealthy countries, especially the United States, as COVID-19 vaccinations help sustain solid rebounds from the pandemic recession. But the 190-country lending agency has downgraded its forecast for poorer countries, most of which are struggling to vaccinate. Overall, the IMF said Tuesday that it expects the global economy to expand 6% this year — a dramatic bounce-back from the 3.2% contraction in the pandemic year of 2020. The IMF's forecast, unchanged from its previous estimate in April, would mark the fastest calendar-year global growth in records dating to 1980.
