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Our briefing for Tuesday, October 12, 2021:
Oct 12, 2021 3:57:42 PM
- In the United States, the AstraZeneca vaccine will now be recognized for international travel, the Canadian Press reports. The Centers for Disease Control and Prevention (CDC) said on Monday that they will accept any vaccine approved by the World Health Organization or the Food and Drug Administration. It is still unclear whether this includes people who had mixed vaccine doses, which is about 3.9 million people in Canada. The Canadian government has been working with the U.S. to recognize different vaccine regimens, including mixing doses. The CDC says it will provide more information as the requirements are finalized.
- In Canada, the country is preparing for staff shortages across the healthcare sector as vaccine mandates begin to take effect. Officials are especially concerned about the impacts of layoffs on already overburdened healthcare systems. As CBC News reports, 36% of staff were placed on unpaid leave at a long-term care home in Toronto after they refused to be vaccinated. Healthcare workers in Quebec have until October 15 to get their shots before they face suspension without pay, while B.C. recently extended the deadline for long-term care workers to have their first dose.
- In the United Kingdom, a new report from lawmakers has found that the British government failed to act quickly enough to stop the spread of Covid-19. “Decisions on lockdowns and social distancing during the early weeks of the pandemic – and the advice that led to them – rank as one of the most important public health failures the United Kingdom has ever experienced,” the report said. The 150-page report resulted from a cross-party inquiry that began in October 2020. It includes the testimony of more than 50 witnesses across government policy, health and science sectors. The report did highlight some positives, including the government’s quick and effective vaccine rollout.
- In Italy, violent protests broke out in Rome over the weekend as people opposed some of the toughest vaccine mandates in the world. Italy’s “green pass” was first introduced back in June for international travel, and since then its scope has expanded. Beginning on October 15, the green pass will be required for all workers in both public and private sectors. Protesters say the requirements infringe on their rights and freedoms. Police arrested 12 people including Roberto Fiore, the leader of right-wing extremist group Forza Nuova. On the same day as the protests, Italy reached a milestone of having 80% of citizens over 12 fully vaccinated.
- New Zealand will require healthcare workers and teachers to be fully vaccinated, Prime Minister Jacinda Ardern announced on Monday. Ardern also extended lockdown restrictions in Auckland for another week as 35 new cases were reported, bringing the total for this outbreak to 1622. Healthcare workers must be fully vaccinated by December, while those working in the education sector must be fully vaccinated by January. “New Zealand is at one of the trickiest and most challenging moments in the COVID-19 pandemic so far," Ardern told reporters in Wellington. She explained that moving forward, New Zealand would be looking to live with the virus by boosting vaccination rates.
- Australia’s Prime Minister Scott Morrison encouraged citizens to “enjoy the moment,” as some Covid-19 curbs were lifted in Sydney on Monday. "Today is a day so many have been looking forward to - a day when things we take for granted, we will celebrate," he said. Gyms, pubs and hairdressers opened their doors to fully vaccinated customers after being locked down for 106 days. New South Wales reported 496 new Covid-19 cases, continuing the downward trend, while vaccination rates rose above 70%. NSW plans to hit the 80% vaccination rate by late-October at which time it will ease more restrictions.
Covid-19 – Due Diligence And Asset Management
IMF foresees a slight drop in global growth from pandemic
Brief: The International Monetary Fund is slightly downgrading its outlook for the global recovery from the pandemic recession, reflecting the persistence of supply chain disruptions in industrialized countries and deadly disparities in vaccination rates between rich and poor nations. In its latest World Economic Outlook being released Tuesday, the IMF foresees global growth this year of 5.9%, compared with its projection in July of 6%. “The global recovery continues but the momentum is hobbled by the pandemic,” IMF Chief Economist Gita Gopinath told reporters at a briefing. For the United Sates, the world's largest economy, the IMF predicts growth of 6% for 2021, below its July forecast of 7%. The downward revision reflects a slowdown in economic activity resulting from a rise in COVID-19 cases and delayed production caused by supply shortages and a resulting acceleration of inflation.
Traders Working at Home Should Expect a Knock at the Door
Brief: Traders and investment banking staff who plan to work from home regularly should expect the U.K.’s markets watchdog to come knocking. The Financial Conduct Authority on Tuesday warned regulated firms that it has powers to visit any address where work is performed and that includes private residences. The FCA could visit a home for ongoing supervision, not just as part of an investigation, the watchdog said. The updates come as staff across the financial services sector move to a hybrid working model. The FCA said firms will now need to prove that remote working arrangements don’t increase the risk of financial crime or hurt competition.
Hong Kong Risks Global Status as Singapore Opens Up to World
Brief: The divide between Asia’s two main financial hubs in handling the pandemic is growing ever wider, with one opening up to global travel and the other maintaining one of the world’s harshest quarantine policies. In Singapore, officials are taking steps to reconnect with the global economy even as the government faces pressure to favor locals over foreigners for well-paying jobs. Speaking in a televised address over the weekend, Prime Minister Lee Hsien Loong said that Singapore can’t stay “locked down and closed off indefinitely” and residents should prepare to see “many Covid-19 cases for some time to come.” Hong Kong Chief Executive Carrie Lam has taken the opposite approach, stressing in a Bloomberg Television interview Monday that even a single death would be a “major concern” as she follows China’s Covid Zero approach that tolerates no local infections.
Why ESG Investing Thrives in Chaotic Times
Brief: Another COVID-19 variant; melting ice caps cause cities to sink below the water level; wars breaking out over diminishing supplies of potable water. Cyberattacks bankrupting global corporations and crippling governments. Corrupt autocrats plundering their countries for wealth and power. They aren’t just dystopian fantasies. Some are already occurring around the world. They’ll likely only increase in the coming year and decade. Each could exert a monumental impact on our lives—and on markets. Yet the impact won’t be uniformly negative. For investors, alpha is possible amid the chaos. The trick is adopting a mindset to take advantage of the possibilities that disruption brings.
Pharmacy M&A deals jump 26 per cent as sector thrives during pandemic
Brief: The number of UK pharmacy M&A transactions has jumped 26 per cent to 408 in the last year, up from 325 the year before, says UHY Hacker Young, the national accountancy group. Pharmacies were one of few sectors to benefit from a surge in customer demand during the pandemic. As one of the few designated “essential retailers”, they were also allowed to remain open throughout lockdown. Sales of PPE, along with Covid testing has opened up a whole new business lines for pharmacies. This has not only increased their appetite amongst pharmacies to acquire smaller operators but also made pharmacies a more attractive target for buyers from outside of the sector. UHY Hacker Young says both regional and national pharmacy groups are making acquisitions, including first time buyers that have not previously made acquisitions. Private equity buyers have also been showing increased interest in the sector.
