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Our briefing for Wednesday, March 30, 2022:
Mar 30, 2022 3:46:13 PM
- In the United States, the Biden administration’s budget proposal shows a commitment to pandemic preparedness, although some say it doesn’t go far enough. The budget proposal includes an $82 million for the health and human services department over five years, “to prevent, detect and respond to emerging biological catastrophes.” Xavier Becerra, the health and human services secretary, says the administration needs to do more. “That is a drop in the bucket compared to what it’s cost so far to deal with Covid,” he told reporters on Monday. Becerra added that these funds are different from the billions that the administration asked Congress for to address immediate needs. “What we need to continue to finish the job on Covid, we need immediately,” he said. “What we’re asking for in this budget for long term preparedness is very separate.”
- Air Canada has seen a jump in its shares, by almost 4% on Tuesday, as the carrier expects to more than double its capacity from last year. The company says it expects to recover 75% of the total seats offered in 2019, which is a 150% jump over 2021. “With the pandemic receding and travel returning, Air Canada has put in place a strategy to return to profitability and increase long-term shareholder value,” Chief Executive Officer Michael Rousseau said. Looking even further into the future, Air Canada says it expects its capacity for 2024 to be at about 95% of its 2019 level.
- In the United Kingdom, free Covid-19 testing for the general public ends on Friday, as the government sets out its new “Living with Covid” plan. The government released the details of the new rules on their website, explaining that free asymptomatic testing will only be provided to those in high-risk settings like hospitals or long-term care homes. Free symptomatic testing will be available to those in the community who are at risk of becoming seriously ill if they contract Covid. In the announcement the government also explained that 55% of people in hospital who have tested positive are not there were Covid as their primary diagnosis.
- Brazil’s health regulator Anvisa has recommended an easing of travel restrictions as case numbers and deaths continue to fall. The new rules would see the elimination of quarantine for all travellers, even those who are unvaccinated, although they will still be required to provide a negative test when entering the country. Effective immediately, travellers’ health declarations used to track Covid-19 will no longer be needed, while testing for vaccinated travellers will be suspended as of May 1. Anvisa’s recommendations must still be approved by the Health, Justice and Public Security, and Transport ministries
- South Korea’s health authorities have announced that the Omicron wave has peaked, with case numbers falling for the first time in more than two months. Case numbers are down to nearly half of what they were a week ago, and deaths are also on the decline. According to the Korea Disease Control and Prevention Agency (KDCA) Commissioner Jeong Eun-kyeong, it is likely that case counts will continue to trend downward, although the process will be slow because of the relaxing of restrictions and return to in-person learning. The KDCA reported 187,213 new cases on Monday, the first time cases have fallen below 200,000 in 25 days.
- In South Australia, vaccine mandates have just ended for those in the school and public transportation sectors. That means unvaccinated teachers, school staff, taxi and ride share drivers and public transport workers were able to return to work as of midnight. Unvaccinated teachers and school staff are still required to wear a mask inside at all times, and to use a rapid test every day. Police Commissioner Grant Stevens made the announcement on Tuesday, explaining that the mandate has served its purpose despite being revoked only four months after its implementation. "The mandate under the Emergency Management Act was put in place so we could implement quick and effective changes that saw staff in critical sectors vaccinated as quickly as possible and getting those vaccination levels up to a high standard," he said. “That has been achieved."
Covid-19 – Due Diligence And Asset Management
Traders sleep by their desks as China’s financial hub locks down
Brief: China’s banks and investment firms are calling on essential staff to live at the office this week to avoid any trading disruption during Shanghai’s massive Covid lockdown. A person familiar with the matter told CNN Business that traders and fund managers were being offered between 500 and 2,000 yuan ($78 to $314) per night to camp out at work, with some companies placing folding beds under workers’ desks. Other firms have also provided staff with sleeping bags, food and toiletries to get by. Much of Pudong “is doing it,” the source added, referring to Shanghai’s financial district, which is home to more than 1,000 financial institutions, and China’s leading stock exchange — which is continuing to operate as normal.Zhong Ou Asset Management, a Chinese firm that says it has $98 billion in assets under management, said that several of its investment directors and fund managers had begun staying overnight earlier this month to ensure operations continued as the pandemic “began to escalate” in Shanghai.
Anthony Scaramucci says he’s ‘not quite convinced’ on the recession signal the bond market flashed
Brief: A key signal of recession flashed in the bond market this week, but SkyBridge Capital’s Anthony Scaramucci told CNBC that he would be cautious on predicting there would be a downturn. On Monday, the U.S. 5-year and 30-year Treasury yields inverted for the first time since 2006. On Tuesday, the yield spread between the 2-year and the 10-year rate came close to inverting but stayed positive. Historically, the yield curve has inverted prior to recessions, indicating investors’ concern about the health of the economy. “So historically it would signal that we’re heading into a recession 12 to 18 months from now, but I will be cautious on that data,” Scaramucci said on CNBC’s “Capital Connection” on Wednesday. When the bond market is healthy, yields are higher for bonds with a longer time to maturity, and lower for short-term yields.
Goldman Plans Full Return to Office in Hong Kong on April 19
Brief: Goldman Sachs Group Inc. plans a full return to its offices in Hong Kong starting in the middle of next month as the Asian financial hub begins to ease Covid measures amid declining virus cases. The New York-based bank on Wednesday started with a split-team arrangement and outlined a plan for a full return starting on April 19, according to a memo sent to staff that was seen by Bloomberg News. A spokesman for Goldman Sachs declined to comment. The lender will “welcome” all staff to return “in anticipated alignment with the government’s relaxation of social distancing measures and resumption of in-person school classes,” according to the memo. It added that if circumstances change, it will amend its approach accordingly. Hong Kong last week moved to scrap some travel curbs and laid out a road map for easing internal pandemic restrictions, acknowledging the damage its absolutist approach to Covid-19 has had on the city’s status as a financial hub. The moves were spurred by frustration in the banking community and wider population, which has endured more than two years of strict border controls.
Manulife to Open All Canada Offices for Staffers From April 25 -Memo
Brief: Canadian insurer Manulife Financial Corp said on Tuesday that employees can return to its offices across Canada from April 25 regardless of vaccination status, amid a fall in COVID-19 infections. The country's biggest life insurer has asked staffers to return under a hybrid model with certain days of the week designated for remote work, according to an internal memo seen by Reuters. Guidelines on mask mandates and physical distancing will be set in line with local regulations, the memo said. Several financial firms across Canada and the United States that had postponed their back-to-office plans late last year are now looking to reopen offices and bring back employees with fresh coronavirus guidelines.Earlier this month, Manulife had opened select office locations as a part of its return-to-office plans in Canada after COVID-19 cases in the country declined.
BlackRock President Says ‘Entitled Generation’ Now Learning About Shortages
Brief: BlackRock Inc. President Rob Kapito warned that inflation is having dramatic effects on the economy, with an entire generation now learning what it means to suffer from shortages. “For the first time, this generation is going to go into a store and not be able to get what they want,” Kapito said at conference held in Austin by the Texas Independent Producers and Royalty Owners Association. “And we have a very entitled generation that has never had to sacrifice.” The economy is reckoning with what he dubbed “scarcity inflation,” or the fallout from a shortage of workers, agricultural supplies and housing, and of oil in some regions. “I would put on your seat belts because this is something that we haven’t seen,” Kapito said.
