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Our briefing for Wednesday, August 25, 2021:
Aug 25, 2021 3:24:29 PM
- In the United States, Dr. Anthony Fauci, the country’s top infectious disease expert, says the fourth wave of Covid-19 could be under control by Spring 2022. With the FDA giving its approval for the Pfizer shot, Fauci says more people in the U.S. should be getting vaccinated. "I would like to appeal to the people in the country who are not vaccinated to realize that we have the capability, among ourselves, to essentially cut down the time frame to getting to the end of this pandemic," said Fauci during a press conference. Fauci said he also expects the Moderna and Johnson & Johnson vaccines to get FDA approval in the coming weeks.
- In Canada, the province of Quebec is preparing to launch its vaccine passport on September 1. The smartphone applications that will run the system were available for download as of Wednesday. Residents of Quebec were sent a response code by the Health Department as proof of vaccination. Beginning September 1, residents ages 13 and up will be required to show proof of vaccination to access non-essential services such as restaurants, gyms, bars and cinemas. In order to read the QR codes, businesses will be required to download a special application. Residents can also show a paper version of the code or present an image of the code on their phones.
- In the United Kingdom, Scotland will hold a public inquiry into the way the pandemic was handled by authorities by the end of the year. First Minister Nicola Sturgeon made the announcement at her Covid-19 briefing, confirming the plans to establish a judge-led inquiry. The inquiry will look at decisions that were made throughout the pandemic and examine aspects like deaths in care homes. Sturgeon also warned at the briefing that new Covid-19 curbs could be introduced in Scotland if case numbers continue to rise. U.K Prime Minister Boris Johnson’s government has also committed to holding an independent public inquiry, but it is not set to begin until next year.
- In France, the Haute Autorite de Sante (HAS) health watchdog has recommended Covid-19 booster shots for those over 65 or those with existing medical conditions. The booster shots would be available to those who have already had two doses of vaccine and would consist of an mRNA vaccine such as Pfizer or Moderna. Last month the health ministry announced booster shots would become available to the country’s most vulnerable. The World Health Organization (WHO) has called for a moratorium on booster shots until at least the end of September, to address global inequities in vaccine distribution.
- Germany will stop using incidence levels as its key measurement system for determining whether Covid-19 restrictions should be imposed. Chancellor Angela Merkel said on Monday that vaccinations in the country are rising and as such, the incidence rate will be dropped as a measure for determining whether lockdowns are necessary. "We decided today that we no longer need comprehensive protective measures when the number of cases or incidence is 50, because a large proportion of the people are vaccinated," Merkel said. Merkel says instead of the incidence rate, the government will monitor hospitalizations as an indicator as to whether the healthcare system is overly strained.
- In Australia, despite being locked down, major cities of Sydney and Melbourne are still grappling with the delta variant. New South Wales (NSW) reported a record number of 919 new Covid-19 cases on Wednesday. Officials say parts of the healthcare system are now under pressure. Neighbouring Victoria state reported 45 new cases, down from 50 a day earlier. Officials in Melbourne sought to speed up the vaccine rollout by offering shots to anyone 16 and older. About 31% of people ages 16 and older in Australia have been fully vaccinated, while about 54% have received at least one dose.
Covid-19 – Due Diligence And Asset Management
Geopolitical tensions and new Covid-19 variants top investor concerns
Brief: Fears of a new wave of increasingly contagious strains of Covid-19 have knocked investor confidence, with few prepared to make any changes to their portfolio. A poll by interactive investor of 1,617 visitors to its website between 17 and 23 August 2021 found 57% had concerns over the impact further outbreaks of Covid-19 would have on their portfolio. New variants of the virus topped the list of concerns for almost a quarter of the respondents, while almost a third said they were concerned about both new variants and a new wave of the virus. A fifth of those that took part in the poll said they would be increasing their exposure to the stock market, confident that markets will need to get used to Covid-related shocks. However, 65% confirmed they would not be making any changes to their investments.
Most return-to-office plans will be flexible, new study says
Brief: As workplaces across the country unveil return-to-office plans, a new survey has found that most employers are shifting away from requiring work to be done in the office full-time. According to an ADP Canada survey conducted by Maru Public Opinion, more than half of Canadian workers will no longer be required to work in the office five days a week. One-third (33 per cent) of employees surveyed say they are expected to return to the office between two and three days a week, while slightly more than one-fifth (21 per cent) say they will have a flexible schedule with no set days in the office. The survey found that 40 per cent of employees will still be expected to come into the workplace five days a week, although Ann Buckingham, executive HR manager at ADP Canada, says this figure largely reflects industries where employees have to be in-person, such as manufacturing.
BOJ Sees Delta Variant Delaying Recovery More Than Expected
Brief: Japan’s economic recovery will be delayed more than previously expected as the delta variant pushes up infections to record levels, according to a Bank of Japan board member. “The current spread of infections is more than expected at the time of the July policy meeting,” Toyoaki Nakamura, one of nine members on the board, told reporters in Tokyo. “Downward pressure on the economy is going to continue for the time being.” Prime Minister Yoshihide Suga looks set to expand Japan’s state of emergency to almost 80% of the economy later Wednesday as he tries to contain the latest wave of cases that has put extra strain on the medical system. Nakamura said an expected spending uptick built on pent-up demand had failed to emerge in the summer break as surging infections kept consumers cautious.
Goldman Requires Vaccines, Masks at Work to Fight Delta Variant
Brief: Two months after Goldman Sachs Group Inc. led Wall Street’s return to the office, it’s copying pages from the pandemic playbooks of its more cautious rivals, requiring employees to don masks and prove they’ve been vaccinated against Covid-19 to enter the U.S. workplaces. The more stringent safety measures, announced to staff on Tuesday, signals escalating caution at Goldman, which greeted the return of employees in June with live music and food trucks. Masks will be required starting Wednesday regardless of vaccination status, a company spokeswoman said. People who aren’t fully vaccinated by Sept. 7 will be expected to work from home, she said. Goldman’s decision means all six U.S. banking giants have now instituted some sort of broad mandate that employees get shots or don masks inside buildings -- or in some cases do both.
Three ways investors are playing the resurgent reopening trade, according to two market analysts
Brief: Exchange-traded fund investors might be able to take advantage of the rebound in reopening trades. Stocks traded higher Tuesday after the Food and Drug Administration granted Pfizer and BioNTech’s Covid-19 vaccine full approval. Travel, energy and retail stocks were some of the biggest gainers. This means the market is now at an “inflection point,” J.P. Morgan Asset Management’s Bryon Lake told CNBC’s “ETF Edge” on Monday. “We do think that there’s an opportunity for investors to continue to participate in the reopening trade through the end of the year,” the firm’s head of Americas ETF client said. Three key areas are of particular interest to investors as they reposition for the second half of 2021, Lake said: income, short-duration investments and value.
