.png?width=200&height=78&name=CH%20Diligence%20(thicker%20line).png "CH Diligence (thicker line).png")
Our briefing for Wednesday, November 24, 2021:
Nov 24, 2021 3:08:52 PM
- In the United States, the number of coronavirus deaths for this year has surpassed last year’s number. According to the Centers for Disease Control and Prevention, there were 386,233 Covid-19-related deaths in 2021 as of Tuesday, compared with 385,343 in 2020. The percentage of U.S. deaths that Covid-19 accounted for was also higher this year, at 13% compared with about 11% in 2020. Experts say there are a number of reasons for the higher death toll, with the main reason being the relaxation of curbs like mask wearing and social distancing amidst the circulation of the highly infectious delta variant. Currently about 59% of Americans are fully vaccinated.
- In Canada, with vaccines for children ages five to 11 recently arriving in the country, the provinces are outlining their rollout plans. British Columbia will start next week, with families being invited to book appointments after they’ve been registered through the “Get Vaccinated” portal. Quebec’s premier said their vaccine campaign will move into schools next week, while in Alberta, appointments will be available from Friday at Alberta Health Service clinics and some pharmacies around the province. Ontario, Saskatchewan, Manitoba, New Brunswick, P.E.I. and Newfoundland and Labrador have also announced their rollout plans for vaccinating the age group.
- In the United Kingdom, experts are warning that some ministers may have “lost the message” around Covid-19 restrictions. As the Independent reports, members of the government’s Scientific Advisory Group for Emergencies (Sage) warned that the messaging has slipped around basic curbs like mask wearing and social distancing, a cause for concern as the weather gets colder and the holidays approach. Despite the prime minister’s position that workers should be returning to the office, Sage members say the government should be encouraging people to work from home wherever possible. With more than 1000 weekly deaths recorded on Tuesday for the first time in eight months, the experts say the U.K. government will need to do more to keep people safe this winter.
- France’s Prime Minister Jean Castex has tested positive for Covid-19 and is now in isolation. According to the prime minister’s office, Castex contracted the virus from his 11-year-old daughter, who is not able to be vaccinated because vaccines aren’t yet approved in the E.U. for those under 12. Castex, who is vaccinated himself, has only experienced mild symptoms so far and plans to work throughout his 10 days in isolation. Five Belgian ministers are also now in isolation after meeting with the French prime minister on Monday. His positive results come as Covid-19 cases surge across much of Europe, with most governments choosing to tighten restrictions.
- Italy’s government is introducing tough new restrictions for unvaccinated people. The Italian “Super Green Pass” comes into effect on December 6 and will only allow vaccinated people to enter non-essential facilities like cinemas, theatres, nightclubs and gyms, as well as be served in bars and restaurants. Under the new rules, the unvaccinated will still be allowed to access their workplaces after testing negative for the virus. Italy remains especially cautious as case numbers and deaths continue to rise steadily. They recently shortened the timeframe for booster shots from six months to five months after the regular second shot.
- New Zealand will reopen its borders to fully vaccinated foreign travellers beginning in 2022. Covid-19 Response Minister Chris Hipkins explained that the country will take a phased approach to the reopening, beginning with New Zealand citizens and residents travelling from Australia in January. By February, New Zealand citizens travelling from other parts of the world will also be allowed in, and by April 30, fully vaccinated tourists from all other countries, unless they’re deemed high-risk, can enter. "A phased approach to reconnecting with the world is the safest approach to ensure the risk is carefully managed," Hipkins said. "It reduces the potential impacts on vulnerable communities and the New Zealand health system."
Covid-19 – Due Diligence And Asset Management
ECB’s Holzmann Says Pandemic Buying May Be Put on Hold Next Year
Brief: The European Central Bank may decide to only put its 1.85 trillion-euro ($2.1 trillion) pandemic bond-buying program on hold rather than abolish it after net purchases are set to end in March, according to Governing Council member Robert Holzmann. The program, which was launched in 2020 to address the pandemic shock and fragmentation on euro-area bond markets, could enter a “waiting room” rather than be terminated as the ECB’s crisis response moves into a new phase, Holzmann said at a news briefing in Vienna. This will be in order to “save the advantages of flexibility in case they become necessary in the event of economic shocks, which are definitely possible, but we do not expect,” he said.At issue is the question whether the ECB should hold on to the versatility of its crisis tools even after it shifts its focus on more conventional instruments.
German Business Confidence Slumps as Virus Threatens Rebound
Brief: German business confidence took another hit in November, with a new wave of Covid-19 infections looming over the economy and rising inflationary pressures threatening to weigh on manufacturing. A gauge compiled by the Munich-based Ifo Institute dropped for a fifth straight month to its lowest since April. Economists had predicted a decline to 96.7. Expectations for the next half year also worsened. The report underscores mounting challenges facing German businesses, which are now facing a resurgent pandemic -- having already struggled with supply disruptions for most of 2021 as demand across the globe rebounds following lockdowns. A separate purchasing managers’ index Tuesday showed “unprecedented inflationary pressures” are threatening to restrain output in the coming months. The Bundesbank warned this week that inflation may approach 6% in November, and could stay elevated for a longer period than originally thought.
Nordea Staff in Denmark Urged to Carry Covid Passport at Office
Brief: Nordea Bank Abp is urging its employees in Denmark to bring a Covid certificate when working at the office. The biggest Nordic bank isn’t currently checking whether employees have a Covid passport, but said staff are “expected to act responsibly” and follow hygiene protocols. The purpose is to limit the spread of the virus, a Nordea spokesman said in an emailed response to questions. The lender also provides Covid testing at its largest locations in Denmark. Nordea’s move comes at a time when Denmark is working on rushing through legislation that will allow employers to demand workers have a valid Covid passport. And even though those proposals are not yet in place, they do have the backing of a major labor organization.
Millions in U.K. Covid Loans Went to Inactive or Brand-New Firms
Brief: As coronavirus ripped through Britain and businesses faced a potentially fatal cash squeeze, a company controlled by one of the U.K.’s richest financiers, John Beckwith, received a taxpayer-backed relief loan for about 3.7 million pounds ($5 million) — even though the firm hasn’t been trading for years. A Bloomberg News review of almost half of the loans granted under the U.K. government’s 26.4 billion-pound Coronavirus Business Interruption Loan Scheme (CBILS) shows that lenders handed out more than 130 million pounds to companies with similarly questionable claims, despite a requirement that borrowers had to be negatively affected by the pandemic. One emergency loan, for 4.7 million pounds, went to a firm founded just two days before it received the funds, corporate records show.
Zoom Set to Lose $100 Billion From Peak Value as Pandemic Gains Fade
Brief: Zoom Video Communications Inc., the poster child of the so-called “pandemic winners” basket, is losing more of its luster. The video conferencing company slumped 15% to close at the lowest since June 2020. Its latest quarter showed slowing growth as people started socializing in-person -- also a trend that roiled the shares of other lockdown winners Peloton Interactive Inc. and Teladoc Health Inc. Including Tuesday’s losses, Zoom saw about $100 billion wiped out from its market value since its October 2020 peak, which is a decline of 64% for the stock. Despite the pullback, the stock is still up nearly 500% since its 2019 debut. Both Zoom and Peloton have given back the bulk of their gains since the pandemic’s onset, suffering lockdown withdrawal symptoms.
