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Our briefing for Tuesday, March 8, 2022:
Mar 8, 2022 4:06:31 PM
- As Covid-19 restrictions are being eased in much of the United States, according to a report filed by over a dozen scientists on Monday, deaths from respiratory illnesses are still 10 times higher than they were before the pandemic. In past years, nearly 1,200 people died weekly from respiratory viruses like the flu. According to the Centers for Disease Control and Prevention (CDC), 9,000 people in the United States died from respiratory illnesses in the last week, and as many as 12,000 people in weeks prior. “Make no mistake, the United States is far from a normal situation,” the authors wrote. They continued that Covid-19 is still causing an “intolerable” level of death in the country. White House chief medical advisor Dr. Anthony Fauci has said that the U.S. will only be able to return to normal when deaths from respiratory illnesses return to levels previously caused by the flu. Further exacerbating the spread of disease, according to CDC data, roughly 90 per cent of Americans now live in areas where mask mandates have been relaxed.
- In Canada’s smallest province, 1 in every 40 people has a confirmed active case of Covid-19. According to the province’s website, there is currently 4,241 cases of Covid-19 in Prince Edward Island. With a population of just under 166,000, the number of cases is the highest per capita of any Canadian province thus far in the pandemic. “They're certainly eye-popping,” said infection control epidemiologist Colin Furness, a professor at the University of Toronto. “When you look at it as a rate or as a proportion of the population, that's really high — that's remarkably high.” P.E.I is averaging 472 new cases per day over the last 7 days, with the largest outbreaks happening in long-term care homes and childcare centers. The province was largely able to keep the virus at bay throughout most of the pandemic but after some restrictions were lifted in February the province has seen a large uptick in cases. "People need to really understand when they walk out their front door that COVID is probably nearby — P.E.I. is not that big a place, and those are some very, very high numbers," Furness said.
- According to a study conducted in the United Kingdom, even mild cases of Covid-19 can be associated with “a significant, deleterious” change in the brain. The study draws on data in the U.K. Biobank from 401 people aged 51 to 81 who contracted a coronavirus between the start of the pandemic and April 2021. Researchers analyzed brain scans from the study participants before and after contracting the virus and was compared with 384 people who had not had Covid-19, as well as people who had either influenza or pneumonia. The scientists used “trail-making” tests to measure the impact the virus had on people’s ability to complete cognitive tasks, those who tested positive for COVID-19 took “significantly greater time” to complete the tasks. Through a series of MRI tests, the researchers noticed an overall decline in brain size in those who had tested positive, the scans showed signs of tissue damage in areas of the brain that are related to smell and memory. Former FDA Commissioner Dr. Scott Gottlieb said “this is concerning. And I think what it suggests is that the balance of the information that we're accruing does indicate that COVID is a disease that could create persistent symptoms.” The results of the study may give some explanation for persisting symptoms stemming from previous infection often dubbed long Covid.
- Business in Australia picked up in February as the Omicron wave subsided and supply chain disruptions were corrected. A National Australia Bank Ltd. survey showed Tuesday that business confidence was up 13 points from 4 in January, with gains recorded across all industries. Business conditions consisting of hiring, sales, and profits, were up 9 points from a revised 2 in January, although the poll was largely conducted before the Russian invasion of Ukraine. Despite the increased infections seen during December and January as the Omicron wave swept the country, the unemployment rate stayed relatively constant at 4.2 per cent. “The employment index has improved considerably as the labor market strengthens, after the virus caused many to be unable to work due to illness or isolation requirements at the peak of the recent wave,” NAB Chief Economist Alan Oster said. The positive outlook has market makers expecting an interest rate hike to come as early as June. Furthermore, retail prices in the country rose 2 per cent in February, suggesting businesses are now passing the increased cost of goods to consumers.
- Malaysia will fully reopen its borders on April 1st, according to Prime Minister Ismail Sabri Yaakob. Citing the virus’ slow progression into the endemic phase, Yaakob said that Malaysians will now be free to travel to any country that has similar border measures and that those traveling Malaysia will only be required to show valid travel documents. Foreigners entering the country are also no longer required to subscribe to the MyTravelPass contact tracing system. Those who can show proof of vaccination will not need to isolation upon entry, but unvaccinated people may still be subject to quarantine periods, depending on several factors including a positive test. “Taking into account the Omicron variant, which is still in our country and other countries, there are some mandatory steps for both Malaysians and travelers,” Yaakob said. All travelers entering the country will be required to take a polymerase chain reaction (PCR) test two days prior to their flight and will be subject to a rapid antigen test upon arrival. Although the country is now allowing all air travel, its land borders are still operating with vaccinated-only travel lanes.
Covid-19 – Due Diligence And Asset Management
Asia's mass affluent women become more active in investment since the onset of COVID
Brief: Since the outbreak of the pandemic, mass affluent women in Asia have increased their investment activities to build or expand their investment portfolio, and have been quite successful so far, HSBC finds. HSBC analysed the investment behaviour of mass affluent women in Asia, including Hong Kong, mainland China and Singapore, between 2019 and 2021. Here are the highlights of changes identified in their investment behaviour since the outbreak of COVID: A 14% increase in the number of mass affluent female investors compared to pre-COVID period. Female investors in the study have on average shown a double-digit increase in their trading activities, mainly driven by an increase in stock trading. Over 50% of female investors have increased their investment in different asset classes or added different market exposure within the same asset class compared to pre-COVID to further diversify their portfolios.
Morgan Stanley Workers Are Staying Despite Office Push, CEO Says
Brief: The Great Resignation is turning into a great myth for one Wall Street bank. Morgan Stanley chief James Gorman says the firm has seen relatively few departures in the wake of the pandemic, and certainly nothing like the trend that’s seen U.S. workers quitting their jobs in record numbers. In contrast, he says the bank received about 500,000 job applications last year. Together with a tightening economy that will make job-hopping even harder, that’s further emboldened him to champion a return to regular office life. “At the end of the day, people have to work somewhere,” Gorman said at the Australian Financial Review Business Summit in Sydney on Tuesday. “If the economy turns south a little bit, I think you’ll see much less job mobility than in the last 12 months.” Gorman said that anyone going to a restaurant should also be showing up to the office, reiterating comments that he made last year. They mirror those of his counterparts at Goldman Sachs Group Inc. and JPMorgan Chase & Co., who’ve made banking one of the most aggressive among white-collar industries in driving a return to the office.
Capital One Releases Two-Year COVID Retrospective on Americans' Financial Health
Brief: Timed to the two-year anniversary of the COVID-19 pandemic, the Capital One Insights Center has released new research that shows the gap between lower and higher earners continues to widen against new affordability pressures. As part of the Center's ongoing Marketplace Index survey, this latest release dives into the disproportionate impact of the pandemic across income groups against the backdrop of rising inflation. The Marketplace Index is one of the longest-running surveys on the social and economic effects of COVID-19 to date by a private sector enterprise, having run surveys of 2,000-10,000 Americans every four to eight weeks since April 2020. Ahead of the forthcoming Federal Reserve's interest rate decision (3/15), the study addresses consumer sentiment on topics impacting Americans' financial health today. "Americans believe their financial health has declined to levels not seen since early in the pandemic," says Melissa Bearden, Head of Consumer Intelligence at Capital One.
Women Can’t Go Back to the Pre-Pandemic Status Quo
Brief: Two years on, the consequences of the Covid-19 pandemic on workers’ health and well-being are staggering. In addition to lost income and unemployment, the stresses of working or looking for work during the worst public health crisis in generations have taken a punishing toll. Remote work, while literally a life-saver and certainly a job-saver for those to whom it’s been available, has come with costs. Younger workers have struggled to establish critical workplace relationships. The ability to work at any time has turned into working all the time. Parents and caregivers have been stretched past the breaking point. Remote workers who live alone have endured grueling isolation during lockdowns. Meanwhile, workers whose jobs can’t be done remotely have faced the direct threat of the coronavirus, as well as angry and anxious customers and clients, whose outbursts further exacerbate the stress of working through a pandemic.
Women hold just 12.9 per cent of senior positions in alternatives, says Preqin
Brief: Preqin's new Women in Alternatives 2022 report shows that although the alternatives industry has not seen a major drop in the proportion of female employees during the Covid-19 pandemic, there is more work to be done to rectify the marked gender imbalance, especially in senior positions. Gender balance has improved, albeit slowly, across the alternative assets industry as a whole. According to Deloitte, one woman in the C-suite leads to three promotions of women into senior management roles; simply put, the lack of women in leadership positions can negatively affect the prosperity of women in the industry as a whole. Preqin data shows that an eighth (12.9 per cent) of senior positions in the alternatives industry are held by women. As of January 2022, 20.9 per cent of the alternative assets workforce is female – and when looking at investors alone this rises to 24.2 per cent (up from 20.3 per cent and 24.0 per cent respectively a year earlier).
