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Our briefing for Wednesday, December 15, 2021:
Dec 15, 2021 3:14:21 PM
- In the United States, Omicron is quickly taking over Delta as the new dominant strain in the country, says Dr. Anthony Fauci, the country’s top infectious disease expert. “We’re just going to have to see when it comes in the United States,” Fauci told CNN on Tuesday. “And for sure ... it is going to be dominant in the United States, given its doubling time.” Fauci referred to studies from South Africa, where Omicron now accounts for more than 90% of all new infections. The studies show that the Omicron variant is causing fewer hospitalizations than other Covid-19 waves, despite it being more transmissible. Fauci and other experts warn there is still not enough data to draw full conclusions about the dangers of the new variant.
- In Canada, the federal government is set to make an announcement advising Canadians to avoid all non-essential travel. The same recommendation was previously put in place in March 2020 and then lifted in October of this year. On Tuesday evening, Prime Minister Justin Trudeau held a meeting with the premiers to discuss the new advisory and potential other restrictions to help curb the spread of Covid-19. Stricter quarantine and testing rules in airports are expected, for all travellers including returning Canadians and permanent residents. Sources say the federal government is also considering an outright ban on all non-essential foreign travellers into Canada, though that is not likely to be implemented at this time.
- The United Kingdom, Covid-19 passes for nightclubs, sports and other large events have come into effect, and adults wanting to enter the venues will have to show proof of double vaccination or a recent negative test to gain access. MPs approved the new rules on Tuesday despite nearly 100 Conservative members voting against them, in the biggest Conservative rebellion since Prime Minister Boris Johnson came into power. The new measures come amid the expansion of the vaccination program, with the prime minister pushing to give boosters to as many people as possible by the end of the month. Johnson called for thousands of volunteers to help staff new vaccination centers that will be set up in shopping areas, stadiums and other facilities as a way to fight the spread of Omicron.
- German police launched raids in the eastern state of Saxony after learning of a plot by anti-vaccination activists to kill a state governor. Saxony, where several protests to coronavirus restrictions have taken place in recent weeks, has the second highest rate of new Covid-19 cases in Germany and the lowest vaccination rate. Police began the investigation after a report was released last week on ZDF television, which revealed that members of a Telegram group had spoken about killing Michael Kretschmer and other members of the Saxony state government. The raids took place after group members suggested that they might be in possession of weapons, and police have since said they found some including crossbows. Germany’s Chancellor Olaf Scholz condemned the acts in parliament, saying “we won’t put up with a tiny minority of uninhibited extremists trying to impose its will on the whole of our society.”
- India is currently sitting on a surplus of vaccines as it struggles to work through logistical and other challenges. The Serum Institute of India (SII) said on Tuesday that it will halve the output of its AstraZeneca drug until more orders get put in. "All over the world, there is enough supply but it is getting the jabs in arms, which will take some time," SII Chief Executive Adar Poonawalla told a virtual conference. "Certain countries have only vaccinated to the tune of 10 or 15% of the population, they really need to go to 60-70%. Demand is very much there, but it's going to be spread out now that the supply has superseded the monthly demand." As Reuters reports, in the past month, India’s vaccine demand was about 252 million doses, in contrast to domestic production capacity of more than 345 million a month.
- Australia reopened its borders to fully vaccinated foreign students and migrants after nearly two years. The emergence of the Omicron variant had forced officials to delay the reopening by two weeks in an effort to get more information on the new strain. The move coincides with the government of New South Wales (NSW) lifting restrictions in the state, despite the threat of Omicron and rising case numbers. Unvaccinated people are now allowed many of the same freedoms as vaccinated people, and masks are only required on planes, trains and in airports. Premier Dominic Perottet defended the move, saying the state is ready to live with the virus. "We are continuing to live alongside the virus and take personal responsibility... can we please shift the focus from daily case numbers to ICU numbers and hospitalizations?” he said.
Covid-19 – Due Diligence And Asset Management
National Bank of Canada asks Canadian employees to work remotely as Omicron concerns grow
Brief: National Bank of Canada (NA.TO) said Wednesday it had asked staff to work remotely, if possible, making it the second large Canadian lender to return to work from home amid growing concerns over the Omicron coronavirus variant. Canada's top health official Theresa Tam warned on Monday that COVID-19 cases in the country could rise rapidly in the coming days. That has led Canadian banks and financial firms to rethink return-to-office plans. The decision impacts the bank's nearly 20,000 staff in Canada.The rapid spread of the Omicron strain has wreaked havoc with companies plans to return to normalcy. Bank of Nova Scotia (BNS.TO), Canada's third largest lender, said Monday it would pause its plan for employees working remotely to return to its Toronto head office starting on Jan. 17.
The Hybrid Work Model May Threaten Corporate Culture, But Hedge Funds Are Making It Work
Brief: Like most firms, hedge funds have made a generally smooth transition to both the digital environment and the hybrid office/home work model since the first wave of the pandemic hit in March 2020. As the hybrid model becomes the “new normal,” however, some of these companies have begun to take a harder look at some of the challenges they now face in a highly decentralized environment. To get a sense of where firms actually stand when it comes to preferred work location, KPMG and the Alternative Investment Management Association surveyed 162 hedge fund managers representing approximately $1 trillion in assets under management. The results, published in a report entitled, “Global Hedge Fund Industry: Accelerating Out of the Pandemic,” show that 46 percent of hedge fund managers expect to spend two to four days a week in the office.
Moderna, Amgen Are Skipping JPMorgan’s Heath-Care Conference Citing Covid
Brief: Biotech giants Moderna Inc. and Amgen Inc. said they won’t attend JPMorgan Chase & Co.’s annual health-care conference in San Francisco in January, decisions that come as Covid-19 cases surge in the U.S. and the omicron variant poses a threat of increased transmission. The event, known for its overcrowded panels and late-night parties, usually draws thousands to San Francisco’s Westin St. Francis hotel every winter. This year marks its 40th anniversary, and many industry players have been eager to return after last year’s event was forced online amid a winter surge in virus infections. However, the recent climb in new Covid cases across the country, coupled with concern that omicron could add to those totals, has caused some industry leaders to call for holding the conference online again. The J.P. Morgan Healthcare Conference “should go virtual and avoid a super-spreader event and a PR disaster for our industry!” said John Maraganore, chief executive officer of Alnylam Pharmaceuticals Inc., in a tweet.
European fund managers are bullish on the outlook
Brief: Fund managers are increasingly bullish about the outlook for both Europe’s economy and its stock markets, according to the latest Bank of America European fund manager survey. It reveals 37% of respondents expect a stronger European economy over the next year, while 28% believe the current equity rally will last until at least the fourth quarter of 2022. The study also showed inflation concerns were fading and an increasing number of investors see Covid as the biggest tail-risk since the emergence of the Omicron variant. According to the survey, a net 30% of respondents expect lower inflation over the coming year, while there’s been a fall in the proportion of investors seeing it as the key downside risk.“Despite the more sanguine inflation outlook, investors expect central banks to start tightening policy, with a net 59% of respondents regarding global monetary policy as too stimulative,” it stated.
Google tells employees they’ll lose pay and will be fired if they don’t follow vaccination rules
Brief: Google has told its employees they will lose pay — and will eventually be fired — if they don’t comply with the company’s Covid-19 vaccination policy, according to internal documents viewed by CNBC.A memo circulated by leadership said employees had until Dec. 3 to declare their vaccination status and upload documentation showing proof, or to apply for a medical or religious exemption. The company said after that date it would start contacting employees who hadn’t uploaded their status or were unvaccinated, as well as those whose exemption requests weren’t approved. The document said employees who haven’t complied with the vaccination rules by the Jan. 18 deadline will be placed on “paid administrative leave” for 30 days. After that, the company will put them on “unpaid personal leave” for up to six months, followed by termination.
