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Our briefing for Wednesday, December 8, 2021:
Dec 8, 2021 4:01:44 PM
- The United States is now administering booster shots in record numbers, with just under a million people a day receiving their third dose last week. Around 47 million people in the U.S. have now received a booster shot according to data from the Centers for Disease Control and Prevention. White House Covid-19 Response Coordinator Jeff Zients said 12.5 million vaccines were administered last week, the highest rate since May. “In the last week, we've gotten nearly 7 million people a booster; that's a million booster shots in arms a day. And that's more people getting a booster shot per day than ever before,” Zients said.
- In Canada, the latest modelling report from Ontario’s pandemic advisers predicts that the province’s hospitals may be strained by mid-January. The report, released on Tuesday, said Ontario could see between 250 and 400 patients in intensive care, and that’s without even taking the Omicron variant into account. The expert group recommends increased vaccination and public health measures to reduce transmission of the virus. The province’s chief medical officer Dr. Kieran Moore said at a news conference that often people who are requiring intensive care are unvaccinated. "It's absolutely preventable what is happening in our acute care sector," he said. “I am concerned about the coming months and the potential effect on our health-care system."
- In the United Kingdom, ministers signed off on “Plan B” coronavirus rules for England as a way to curb the spread of Omicron. The new rules involve work from home orders and a vaccine certification program. Boris Johnson’s government has been hesitant to enact Plan B measures, saying they would only do so if hospitals became seriously overwhelmed. His decision to act reflects a growing concern over Omicron in the U.K., experts have commented that it could only be a matter of weeks before it overtakes Delta as the dominant strain.
- Austria will end its nationwide lockdown for vaccinated people this weekend, while continuing to place restrictions on the unvaccinated. Since the lockdown measures were implemented two weeks ago, case numbers have fallen significantly but intensive care bed occupancy is still rising. Chancellor Karl Nehammer confirmed on Tuesday that the lockdown would be staying for the unvaccinated, meaning they will be barred from restaurants, bars, theatres and non-essential shops. "For all the unvaccinated who are suffering from the fact they are staying in lockdown, there is a clear offer: you can come out of it if you seize the chance to get vaccinated," Nehammer said.
- South Korea has reported a record number of Covid-19 cases as it surpasses 7000 in a day for the first time. The Korea Disease Control and Prevention Agency (KDCA) reported 7,175 new coronavirus cases today, a rise of 2,221 from the previous day; the highest jump since the beginning of the pandemic. The KDCA said case numbers were rising particularly among older adults with waning immunity and in children who have yet to receive their first doses. The number of critically ill patients also reached a record high of 840, up 66 from a day earlier. The government urged older people to get their booster shots and adolescents to get vaccinated.
- Australia’s health minister Greg Hunt has announced that Moderna’s booster shot has been approved by the Therapeutic Goods Administration. Hunt welcomed the decision, saying it’s another important step in making progress with the vaccine program. “We have now reached 93% of Australians with a first dose, 88.5% of Australians with a second dose, 580,000 Australians with a booster, and over 99% of those 60 and over have had a first dose,” Hunt said. The Moderna booster is now subject to approval from the Australian Technical Advisory Group on Immunisation (ATAGI). If approved by ATAGI, it will become the second booster, after Pfizer, to be made available to Australians.
Covid-19 – Due Diligence And Asset Management
‘Omi-whatever’: Variant Grip on Equities Lasted Just Two Weeks
Brief: Less than two weeks after the spread of a new coronavirus variant sent ripples through global stock markets, it’s almost as if omicron never happened. Equities have quickly bounced back from their recent slump, with the S&P 500 index closing on Tuesday at its highest level since Nov. 24, the last trading day before scientists warned about a potentially more transmissible strain of the virus. In Europe, the benchmark Stoxx 600 has also nearly recovered losses triggered by the omicron variant. More data from South Africa on Tuesday suggesting symptoms are mild gave a green light for fast-money “to pile back into the buy everything global recovery trade,” Jeffrey Halley, a senior market analyst at Oanda, wrote in a note on Wednesday with the title “Omi-whatever.”
Omicron emergence promote abrupt sales of equity funds
Brief: The emergence of the Omicron Covid-19 variant prompted abrupt sales of equity funds on one hand, with record inflows to ESG funds on the other – due in part to COP26 – according to the latest fund flows figures from Calastone. Omicronsaw sales of equity funds at the end of November hit GBP83 million over a two-day period, with the sharp increase in trading volumes indicatinf significant investor uncertainty. It’s too soon though, to judge the impact of the new variant, with Calastone expecting more volatility in the coming weeks. For the whole month of November, equity funds saw inflows thanks to record buying of ESG funds.
What place do absolute return investment strategies have in the post-Covid paradigm?
Brief: CAMRADATA has published a new whitepaper, Absolute Return Investing which considers if the strategy can still generate positive returns for investors as the world moves through the pandemic. The white paper includes insight from firms including Amundi Asset Management, Artemis, Unigestion, bfinance, Capita, Law Debenture and Local Pensions Partnership who attended a virtual roundtable hosted by CAMRADATA in October. The report highlights that absolute return investing strategies – which seek to generate positive returns over time regardless of market conditions – should be able to thrive in the current market uncertainty.
Why billionaire Ray Dalio thinks another economic disaster is coming — and how he recommends preparing for it
Brief: “First, Ray Dalio foresaw the 2008 financial crisis. Then, he predicted years of long-term financial strain on the U.S. economy from the Covid pandemic. Now, the 72-year-old billionaire investor who built Bridgewater Associates into the world’s largest hedge fund is warning of a new economic catastrophe on the horizon — and he wants you to be prepared. “I think we’re at risk of a war with China,” Dalio told CNBC Make It during a live-streamed Q&A on Friday. “Largely due to misunderstandings.”Dalio noted that his predictions aren’t facts: He’s been wrong before, too. But, he said, future catastrophes are inevitable, according to historical patterns over the last 500 years. In other words, if an upcoming U.S.-China conflict doesn’t tank the economy, something else will. Here’s why he thinks disaster is on the horizon, and his top two tips on financially preparing for it.
Climate and pandemic risks among MSCI's top ESG trends to watch in 2022
Brief: As ESG investing has become “truly mainstream”, new risks are emerging for companies and investors that will test how well “we have learned the lessons of the past”, according to data and index provider MSCI. Speaking in a webinar on 7 December, MSCI's head of ESG research Linda-Eling Lee said: "We are very far from net zero." A recent study by the New York-headquartered firm shows that around only 10% of the world's companies are on track to achieving net zero by 2050. For this reason, climate commitments laid down during COP26 from private capital are "very ambitious", said Lee. In the short-term, fund managers might be tempted to make portfolios look more aligned to net zero goals than they actually are, she argued.
