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Our briefing for Tuesday, March 29, 2022:
Mar 29, 2022 3:49:05 PM
- According to new data from the Centers for Disease Control and Prevention (CDC), the Omicron subvariant BA.2 is now the dominant strain of Covid-19 in the United States. Last week, the BA.2 variant made up for an estimated 54.9 per cent of new infections across the country. Hardest hit by the new variant is the Northeast, where over 70 per cent of new infections are being caused by BA.2, in the South and Mountain West, only a third of infections are being attributed to the highly contagious strain. Experts are still suggesting that a new surge is unlikely as overall case numbers have continued to remain below the record-breaking peak in January. The seven-day moving average for U.S. Covid-19 cases was 27,895 as of Saturday, up 4 per cent from the previous week. Most people in the U.S. are now living in places considered to have low Covid transmission according to CDC data that has moved away from case numbers and focuses more on hospitalizations. In the week ending March 19, BA.2 made up only 39 per cent of total Covid-19 cases.
- In Canada, public health experts in Quebec are suggesting that the province is already in the middle of its 6th wave of the pandemic. According to Dr. Don Vinh of the McGill University Health Centre, the latest wave is a result of the BA.2 Omicron subvariant, and that it is so-far unclear on what the surge in Quebec could mean for the rest of the country. Vinh pointed to the rise in cases across nursing and long-term care homes, along with a 60 per cent increase in health care workers who are absent due to Covid. “I think these are signals that cannot be ignored and interpreted any other way than to say we are we are already started in that wave,” he said in an interview. On Sunday, interim public health director Luc Boileau said that despite the fact that BA.2 now makes up two-thirds of new cases in the province, he is reluctant to confirm a 6th wave. Hospitalizations and test-positivity rates have gone up in recent weeks in Quebec and across the country as most jurisdictions have lifted Covid-19 preventative measures.
- The first round of fines has been handed out to those who attended parties held at the residence of U.K. Prime Minister Boris Johnson during Covid-19 lockdowns. British police have issued 20 fines in relation to the illegal parties but so far Johnson has not been on the list of recipients. The Metropolitan Police force said Tuesday that it does not plan on releasing the names of people who received fines, however, Johnson’s office said they would notify the public if the prime minister was given a fine. Johnson has already admitted to attending several events at 10 Downing Street between 2020 and 2021, including a “bring your own booze” party which he believed was supposed to be a “work event.” Opposition parties in the country are calling for Johnson’s resignation should he be given a fine for his involvement in the gatherings. The police force has said officers are still working through a “significant amount of investigative material” and that more fines could be issued. Questionnaires were sent out to over 100 individuals, including Johnson, and multiple interviews were conducted allowing police to gather evidence surrounding the parties.
- On Tuesday, Germany’s Health Minister Karl Lauterbach urged his European Union counterparts to endorse a fourth Covid-19 vaccine or second booster for use in people over age 60. With over 300,000 new cases being reported daily in Germany, Lauterbach is citing data from an Israeli study that shows an 80 per cent decrease in the number of deaths caused by the virus in those who have had a fourth shot. “The situation in Europe, as far as the pandemic is concerned, is worse than people feel,” Lauterbach said. “We have very high case numbers — we have unfortunately also very high death rates.” Lauterbach made a proposal to the European Commission for common advice to be issued to all countries in the bloc, which was backed by a majority of ministers. Earlier this month, the European Medicines Agency (EMA) said there was not yet enough data to support a fourth dose, but said it hopes that more data will be available later in the spring. On Sunday, Israeli researchers said that in a study, people aged 60 to 100 had a 78 per cent lower mortality rate when a fourth dose of the Pfizer-BioNTech vaccine was administered versus those who received only one booster.
- In Singapore, mask-wearing is now optional in public spaces and the group limit for restaurants and public gatherings has been raised to 10. The new rules came into place on Tuesday despite rising case number overs the last 9 days. The country reported just under 8,200 new cases and 4 new deaths bringing the total number of fatalities during the pandemic to 1,258. There are now 728 people in hospital, 83 require oxygen supplementation and 25 are in intensive care. Most of the Covid cases in the country are considered to be Protocol 2 cases, which means those infected are either doing well or are experiencing mild symptoms. Of the new reported cases, most are local in origin, meaning they have been contracted within the country, while 128 were “import cases” or contracted while abroad. Although cases have risen over the last several days, the week-on-week infection ratio is down slightly at 0.69, down from 0.73 last Monday. According to government data, a number under 1 means that the number of Covid-19 cases on a whole is falling. As of Monday, over 95 per cent of Singapore’s adult population has completed their full vaccination regimen as part of the national vaccination program.
Covid-19 – Due Diligence And Asset Management
Investor Redemptions from China Funds Hit Pandemic High
Brief: Global investors’ confidence in China is at the lowest since the start of 2021. The bearish mood can be clearly seen in the data about redemptions from Chinese stock and bond funds. In the third week of March, global investors pulled out more than $3 billion from Chinese equities, the highest since the first week of 2021, according to the latest report from Emerging Portfolio Fund Research, which is owned by Informa and tracks fund flows and allocations. China bond funds saw a weekly outflow of more than $1 billion for the first time, EPFR data showed. The sizable capital outflow is in sharp contrast to the bullish consensus assessment of Chinese securities not long ago. From September to the first week of March, over $50 billion was pumped into EPFR-tracked China equity funds and $11 billion into Greater China fund groups, the report said.
Technology is a weapon in the fundraising war
Brief: 2022 will be the year the level of in-person and online meetings rebalance to create a new fundraising ‘normal’ for years to come. The private market fundraising process underwent a historic transformation through the various stages of Covid-19, but many of the adjustments made during 2020 and 2021 are now being reviewed by GPs and LPs as travel restrictions and lockdowns ease in the UK, Europe and the US. In 2020 fund managers relied mainly on existing relationships to raise and close funds virtually. Last year saw a shift back to engaging with new clients. “In 2021, the situation largely didn’t change, but we had to meet new managers and find new ideas,” says Kevin O’Donnell, global head of investment relations, Adams Street Partners. “And by doing so online, we raised double what we had in 2020, and it was a record year for the firm.” Over the past two years, LPs have been under pressure to allocate to existing GPs that have performed very well. There has been skepticism around investing in new managers virtually.
SEC seeks to broaden definition of dealer to ease liquidity worries
Brief: The Securities and Exchange Commission on Monday proposed two rules that would force more trading firms to register as dealers and open their books to far greater regulatory oversight. The move, applauded by SEC Chair Gary Gensler, would require many firms that execute algorithm-based, high-frequency trades to come under the regulator’s scrutiny as it looks to ensure liquidity across U.S. financial markets. “I was pleased to support this proposal because I believe it reflects Congress’s statutory intent that firms engaging in important liquidity-providing roles in the securities markets, including in the U.S. Treasury market, be registered with the Commission,” Gensler said in a statement. The SEC’s new rules would require firms or persons to register as a dealer if they regularly make comparable purchases and sales of the same securities in the same day or turn profits primarily through bid-ask spreads. Those who have at least $25 billion of trading volume in U.S. debt in at least four of the prior six months would also be compelled to register. People or firms that manage less than $50 million would not be subject to the new rules.
China's biggest COVID-19 lockdown in 2 years prompts new supply chain concerns
Brief: China's most extensive COVID-related lockdown in two years is underway in Shanghai, as the city of 26 million people undergoes a series of phased shutdowns to test a growing outbreak of the coronavirus. China's financial capital and largest city has implemented a two-phase partial lockdown for the next 10 days, starting with the Pudong financial district and nearby areas from Monday to Friday. This will allow mass testing to get underway after 3,500 new cases of COVID-19 were reported Sunday. In the second phase of the lockdown, the vast downtown area west of the Huangpu River that divides the city will start its own five-day lockdown. Residents will be required to stay home and deliveries will be left at checkpoints to ensure there is no contact with the outside world. Offices and all businesses not considered essential will be closed and public transport suspended. Bridges and tunnels in and out of the area are being strictly monitored.
Pandemic fallout: Canadian workers losing 41 working days per year to absences and presenteeism
Brief: Manulife's 2021 Wellness Report highlights how the pandemic is affecting employee health, and underscores that two years into the pandemic, Canadian workers continue to struggle to take care of their health and wellbeing. "Employee mental health patterns could be K-shaped as we move through the next phase of the pandemic," said Dr. Georgia Pomaki, Director, Mental Health Best Practices, Manulife. "One arm of the K represents employees who are excited about reopening and returning to the office—the other represents a group of employees who are facing mental health challenges and significant fatigue: for this group, a return to office may feel overwhelming. Organizations need to consider both groups to design effective and supportive return to office programs." The Report highlights that 16% of working hours (41 days) were lost in 2021 due to absences and presenteeism, and close to half (48%) of employees are experiencing at least one work-related mental health risk factor. These findings suggest employers should consider placing significantly more focus on culture and wellness programs in 2022 and beyond, particularly as large employee populations return to Canadian offices in the near future.
