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Our briefing for Tuesday, November 23, 2021:
Nov 23, 2021 4:36:14 PM
- Experts in the United States are suggesting that lockdown measures to curb the spread of Covid-19 will likely continue to be left up to state and local officials. While other countries throughout the rest of the world have imposed nation-wide lockdowns, the United States is unlikely to follow suit. “The political will to do so just isn’t there,” said Nicholas B. Creel, PhD, a political scientist, and assistant professor of business law at Georgia College and State University. “Moreover, the federal government isn’t able to do much in the way of restrictions given our federalist system that largely empowers states to dictate policies that directly impact the health of their population,” he added. Courts in the country are currently deciding whether the proposition from the Biden administration to mandate vaccines for businesses with over 100 employees is legal. If upheld, the move could affect up to 100 million Americans.
- Today, the Liberal government in Canada will deliver a throne speech marking its third term in office. Governor General Mary Simon will deliver the speech, her first since taking over for the former Governor General, Julie Payette, in July. Liberal Government House Leader Mark Holland said on Monday that the speech “will focus very heavily on the circumstances of the pandemic and putting the pandemic behind us and continuing growth." He went on to say that the speech would announce new support for sectors that have been "adversely impacted by the pandemic." The Liberal government had previously promised to continue with the Canada Recovery Hiring Program, which will help subsidize costs for businesses that are hiring new workers until at least March of 2022. The government also plans to introduce legislation that will criminalize anti-vaccination protests outside of hospitals and other health care facilities.
- The United Kingdom has officially recognized India’s Covaxin as a valid Covid-19 vaccine. In an announcement the country has said that it will recognize any vaccine that is on the World Health Organization’s Emergency Use Listing (WHO EUL). The list includes Covaxin, Sinovac and Sinopharm Beijing. Earlier this month British High Commissioner to India, Alex Hales tweeted that those who have received a vaccine authorized by the WHO EUL will be allowed to enter the country starting on November 22nd. As of early Monday morning, travelers with two doses of an approved vaccine will no longer be required to self-isolate upon entering the country. The new measures will now benefit people wishing to enter the U.K from countries such as the United Arab Emirates, Malaysia, and India. The vaccines now recognized in the U.K. are Oxford-AstraZeneca (Covishield), Moderna, Janssen, Pfizer BioNTech, Sinovac, Sinopharm Beijing and Covaxin.
- Amid a rapid surge in Covid-19 cases, Germany’s top health official on Tuesday said that he would not rule out another nation-wide lockdown, but it is something they are actively trying to avoid. Health Minister Jens Spahn said that if lockdowns were to occur that he hopes it would be a “regional measure,” and limited to places where the case increases are “very very dramatic.” Infections in the country on Tuesday were about 400 in every 100,000 people, however, in places like Bavaria incidence rates were numbering close to 650 in every 100,000, and in Saxony nearly 1000. “In these regions, in the hospitals, everything has simply ground to a halt,” Spahn said. “That means you can’t rule out measures in advance.” Europe continues to be the epicenter of the pandemic with Austria imposing a national lockdown on Monday, and partial shutdowns imposed in both the Netherlands and Italy.
- Despite other nations easing Covid-19 regulations, China is remaining committed to their Covid Zero policy. The Delta variant has taken hold in the country with China seeing the sharpest rise in new cases since May. In the first 18 months of the pandemic China had seen 177 days without a new infection, now it is the last country unwilling to accept it may have to live with the virus in its midst. “The outbreaks in China’s neighbors and around the world remain elevated,” said Wu Lianyou, an official with China’s National Health Commission,
“creating a complicated and grave challenge for this winter and next spring,” he continued, reiterating that China will remain sealed off from visitors. Local authorities have initiated blitz testing and stricter lockdown measures to ensure that any flare-ups are quelled as quickly as possible. According to officials, so far China has seen less than 5000 deaths related to Covid-19.
Covid-19 – Due Diligence And Asset Management
Alternative funds industry has deftly navigated pandemic-related disruption and uncertainties, says EY survey
Brief: EY has published the 2021 EY Global Alternative Fund Survey, which offers a comprehensive overview of the perspectives from alternative fund managers and the institutional investors who allocate to these asset classes. The 15th annual survey sheds light on the topics that will be transforming the industry for years to come, including investors' improved perception of alternative funds; the growing importance of ESG and diversity, equity and inclusion (DEI) considerations; and the industry's view on product and strategy expansion into areas such as digital assets and an increased desire for exposure to private markets. "Beyond reflecting on how alternative fund managers and their investors addressed the ongoing challenges posed by COVID-19, this research highlights the resilience of our industry and the key transformations that managers and investors are partnering to affect," saisaysd Natalie Deak Jaros, EY Global Hedge Fund Co-leader and Americas Wealth & Asset Management Co-leader. "2021 was a year in which the industry invested to build significant momentum around various initiatives that will pay dividends for years to come."
Investors call for restraint on executive pay and bonuses during pandemic recovery
Brief: Investment managers expect companies to restrict executive bonuses if government support has not been paid back during the year under review, according to the Investment Association (IA) latest annual pay guidelines. The majority of companies have been sensitive to the experiences of their stakeholders, employees and customers throughout the Covid-19 pandemic when deciding on pay and bonuses. According to the trade body, 13% of the 83 FTSE companies analysed were "colour topped" by the Institutional Voting Information Service (INVIS) for their Covid response during the 2021, AGM season. The colour code, or ‘Top’, helps highlight the severity of issues to be considered. The IA also wrote to the chairs of FTSE 350 Remuneration Committees, which told companies that ESG metrics should also determine executive pay and bonuses. Fund managers want to see that ESG metrics are clearly linked to company strategy. “The rationale and robustness of ESG performance-related targets should also be made clear to investors,” the IA wrote. “Companies with ESG risks and opportunities incorporated into their long-term strategies should have these similarly incorporated into their remuneration structures, and where they haven’t, should explain to investors how they will do this in future years.”
Europe’s Recovery at Risk From Covid Wave, Inflation Pressure
Brief: Euro-area business activity unexpectedly quickened, though the region’s recovery faces headwinds from a fresh wave of Covid-19 infections and “record inflationary pressures.” IHS Markit’s composite Purchasing Managers’ Index rose to 55.8 in November from 54.2 in October, according to a survey of purchasing managers by IHS Markit published Tuesday. While that defies the median estimate in a survey of analysts that forecast the measure would retreat, it still points to weaker economic growth in the closing quarter of 2021, the report said. That’s partly down to the pandemic’s latest surge across Europe, which looks set to cause renewed disruptions to the economy in December. Any new lockdowns are likely to hit the currently thriving services sector, while manufacturing is already suffering from a global supply squeeze.
Private equity on course to invest over USD1tn in US economy in 2021
Brief: For the first time in history, private equity is on track to invest more than USD1 trillion in American businesses over the course of a single calendar year, according to the American Investment Council’s (AIC) 2021 Q3 Investment Trends Report. Through the end of the third quarter, private equity has invested USD788 billion in 4,806 businesses across the United States. The amount invested represents an 86 percent increase from the same period in 2020. “Today’s report confirms that private equity has been a critical partner to help businesses of all shapes and sizes as the American economy recovers from the COVID-19 pandemic,” says AIC President and CEO Drew Maloney. “Private equity is a particularly critical partner for small businesses that need the capital and expertise to survive and grow. The industry’s continued growth is a testament to the strength of these partnerships and private equity’s critical role in powering the American economy.”
Prudential commits to Support Cambodia in its post pandemic recovery with a special focus on helping students return to schools
Brief: As COVID-19 cases stabilize and Cambodia enters a post pandemic recovery phase, schools have been reopening under the “back to school” campaign. Prudential Cambodia has committed $100,000 in 2021 to support the Ministry of Education, Youth and Sports and other NGO partners in their efforts to provide quality education as well as ensure public safety. The funds will be used to donate high quality thermometers and masks, and other necessary items to encourage students especially those in middle or higher education to return to school. His Excellency Dr. Hang Chuon Naron, Minister of Education, Youth and Sports said, “I would like to thank Prudential Cambodia for their support on our back to school campaign which will enable children to continue their education during this challenging time”. “Prudential is committed to supporting our communities as they recover from the pandemic. Education is critical to an individual’s success in the future and we are happy that we are able to help parents and students in Cambodia continue to access quality education in a safe manner,” said Mr. Sanjay Chakrabarty, Chief Executive Officer, Prudential Cambodia.
