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Our briefing for Wednesday, August 18, 2021:
Aug 18, 2021 4:28:58 PM
- In the United States, the mask mandate for airlines, planes, trains and buses will likely be extended until Jan. 18. A Transportation Security Administration (TSA) spokesperson told Reuters that the mask requirements are necessary to protect people from the spread of Covid-19 on public transportation. The current TSA mask order remains in place until Sept. 13. It requires travellers to wear face masks on all planes, trains, ships, subways, buses, taxis and rideshares as well as in transportation hubs like airports and subway stations. The extension reflects the dangers of the delta variant and its transmissibility particularly on public transportation.
- In Canada, the province of Ontario announced the decision to make vaccine policies mandatory for healthcare and public education workers. Dr. Kieran Moore, Ontario's chief medical officer of health, made the announcement at a news conference on Tuesday afternoon. Moore says case numbers are expected to rise in coming months as the weather gets colder and more people move indoors. He issued a directive that does not actually make the vaccines mandatory but requires hospitals and other healthcare facilities to have strict vaccination and testing policies in place by Sept.7.
- In the United Kingdom, the health regulator has approved the Moderna vaccine for use in children ages 12-17. The Medicines and Healthcare products Regulatory Agency (MHRA) made the announcement, saying the vaccines are safe and effective for that age group. Sajid Javid, the health secretary, said earlier that jabs would be offered to 16 and 17-year-olds in England by August 23 so that they would have time to build immunity before returning to school in September. Children are still able to become infected and spread the virus though most develop mild or no symptoms.
- In Germany, vaccines are recommended for children ages 12-17 according to the country’s independent standing commission on vaccination. In a statement on Monday, the commission said they recommend children be immunized, giving reassurance to parents awaiting judgement ahead of the school year. Earlier, the same commission had recommended that only medically high-risk children should get the shot. In their latest recommendation the commission referred to new data from the United States, where children ages 12-15 have been getting vaccinated since mid-May.
- In France, according to health ministry data, 111 people died from Covid-19 in 24 hours, the first time since June 1st the number has been over 100. The new numbers take the cumulative death toll since the beginning of the pandemic to 112,844. Meanwhile, a small region in mainland France has managed to have success with speeding up its vaccination campaign, by opening walk-in pop up centres. The region of Seine-Saint-Denis, north of Paris, has a multi-cultural, working class population where many immigrants don’t speak French. This was originally why they struggled to get the word out about vaccines, but the pop up centres have provided easier access.
- New Zealand said their first Covid-19 case in six months is linked to Australia. Prime Minister Jacinda Ardern said on Wednesday that genome testing shows a link to New South Wales (NSW), the Australian state that’s home to Sydney where outbreaks have been the most serious. NSW reported its biggest daily jump in cases at 633, surpassing the previous record of 478 set on Monday. "We haven't seen the worst of it and the way that we stop this is by everybody staying at home," NSW Premier Gladys Berejiklian told reporters in Sydney.
Covid-19 – Due Diligence And Asset Management
Business Recovery From Pandemic Drives Focus On New Consumer Behaviors In Data Findings From CX Leader ONR
Brief: ONR, a leader in transforming the customer experience (CX) for Fortune 500 companies today has shared new data highlighting how consumers, and thus businesses have pivoted successfully acting on key learnings measured during the pandemic that will impact commercial relationships in a post-COVID-19 world. Looking forward, loyalty has taken on a major significance, with customers clearly seeking trusted brands that make them feel like "they are taken care of, and a part of the family." For companies, greater emphasis on more bespoke customer facing solutions will allow brands to acquire deeper understanding and the quicker ability to address new needs in the customer's experience and customer journeys.Coming out of the extended lockdowns caused by COVID-19 and now the Delta Variant, brands in all business segments have seen continued heightened consumer uncertainty, and sustained awareness and attention on health and wellness in not only the products purchased, but also the service experience for retailing and purchase.
Jim Cramer says investors need to stay nimble as Wall Street reevaluates Covid impact
Brief: CNBC’s Jim Cramer said Tuesday that investors need to be on their toes as Wall Street trudges through a period of frequently re-evaluating the Covid recovery. Reaction to Home Depot’s earnings report before the market open Tuesday demonstrates the need to be nimble, the “Mad Money” host said. “Don’t get too complacent in your negativity.” Shares of the home improvement retailer closed down more than 4% even after the company beat analyst expectations on revenue and earnings. However, same-store sales slightly missed forecasts, and the company also said it recorded fewer customer visits to stores during the second quarter. “In the end, Home Depot will be fine. ... The real issue is that the consumers sure picked an awful time to go back to travel and recreation,” Cramer said.
Stocks suffer worst drop in a month; dollar climbs
Brief: Stocks posted their biggest decline in a month amid concern that the global economic recovery will lose momentum with further shutdowns to contain a coronavirus resurgence. Traders watched closely Federal Reserve Chair Jerome Powell’s remarks during a town hall with educators and students, where he noted the central bank’s “powerful tools” have limitations. Powell also said that COVID-19 will likely stay “for a while,” and we’re not going back to a pre-pandemic economy. Policy makers will gather next week for the Jackson Hole symposium, the Fed’s most-prominent annual conference. “We’re essentially in a bit of a holding period ahead of Jackson Hole,” wrote Craig Erlam, senior market analyst at Oanda Europe. “While there is a fair amount of data releases this week, some of which may carry a little more weight than others, it’s all about the Fed in these markets at the minute, and that’s unlikely to change unless the delta situation gets dramatically worse.”
Fixed Income ETFs Were Top Choice for Institutions During Liquidity Crunch
Brief: During the heightened volatility sparked by the outbreak of the Covid-19 pandemic, investors found liquidity, price discovery, usage, and transaction costs to be pressure points across sectors in the bond markets – including high yield, investment-grade corporate, emerging markets, and, for a short time, U.S. Treasuries. With stress permeating global markets and investment decision-making processes, institutional investors sought relief through the use of fixed income ETFs. According to a global survey of 766 institutional investors, 54%1 increased their use of fixed income ETFs to source, price, and transact in bond markets during heightened pandemic-related volatility. Based on what they experienced and learned during the pandemic an additional 34% say they are likely to increase their use of fixed income ETFs in the future.
Fund managers cut European growth expectations on Covid concerns
Brief: Less than half of fund managers expect the European economy to improve over the next 12 months, down sharply from 80% in the previous month, as concerns about the spread of coronavirus dampen optimism, the latest Bank of America (BofA) European fund manager survey shows. The 17 August survey of 232 participants representing $702bn AUM showed 44% of participants expect the EU macro cycle to improve further, the least optimistic outlook for the bloc's prospects since June 2020 and marking a substantial decline from the March 2021 peak of 94%. BofA attributed the decline to coronavirus-related concerns, with 19% of investors citing the Delta variant as the biggest tail risk facing markets, up from 9% in May, closely behind inflation concerns (20%) and worries about a taper tantrum (22%).
