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Our briefing for Wednesday, September 1, 2021:
Sep 1, 2021 3:54:21 PM
- In the United States, vaccination rates are increasing, particularly the number of first shots, according to White House officials. White House Covid-19 Coordinator Jeff Zients says the vaccine mandates implemented across the country have contributed to the rising numbers. The increase in the number of first shots being administered could be an indication that vaccine skepticism is declining. “We’ve accelerated the pace of first shots. In August, we got over 14 million. That’s almost 4 million more first shots in August compared to the prior month,” Zients said in a news conference Tuesday.
- In Canada, the western provinces are driving the fourth wave of Covid-19 in the country. Alberta is leading the country in new infections, with over 7000 cases reported in one week. The province has yet to reinstate any public health measures to try and curb the spread of the delta variant. Physicians in Saskatchewan have called for the reinstatement of Covid-19 curbs and the introduction of vaccine passports, but so far the province has chosen not to act. Meanwhile in B.C., tighter restrictions will be put in place including a mask mandate and a vaccine passport system.
- In the United Kingdom, the government will move forward with the introduction of a vaccine passport system for nightclubs and other indoor venues in England. A spokesperson for Boris Johnson told the Guardian that the details of the announcement will be forthcoming in the next few weeks. The passport system will use the National Health Service (NHS) app to allow users to display their vaccination status. The system is expected to come into effect at the end of the month. With the implementation of the vaccine passport system, the government intends to increase vaccine uptake among younger people.
- Germany will offer a week-long open vaccination campaign as a way to try and increase vaccination rates. Chancellor Angela Merkel wants at least 75% of the German population to be fully vaccinated, but so far only 60% have had both their shots. The government announced on Tuesday that vaccinations will be offered without appointments at easily accessible locations such as fire stations and pharmacies, for the week of Sept.13-19. On Monday, a special train service was offered in Berlin as another way to try and boost vaccination rates. For two hours, anyone age 18 and older could board the commuter line which circled the German capital, and get a dose of the Johnson & Johnson vaccine.
- South Korea will offer booster shots beginning in October, joining countries like the United States, Germany, Israel and France. South Korea has said they will offer boosters once the country reaches a 70% full vaccination rate, which they aim for by October. South Korea reported over 2000 new cases on Wednesday, as officials struggle with lagging vaccination rates. Officials have pleaded with citizens to stay vigilant ahead of the country’s biggest holidays which arrive next month. The Chuseok holidays (the Korean version of Thanksgiving) typically have people travelling around the country.
- Australia extended a Covid-19 lockdown in Melbourne for another three weeks as the city struggles with rising case numbers. Victoria state reported 120 new cases, up from 76 the day before. Premier Daniel Andrews says restrictions cannot ease until at least 70% of adults have had their first dose of vaccine. This is expected to happen around Sept. 23. Currently about 56% of adults have had their first dose. "We have thrown everything at this, but it is now clear to us that we are not going to drive these numbers down, they are instead going to increase," Andrews told reporters in Melbourne.
Covid-19 – Due Diligence And Asset Management
Beware of increased stock market volatility, Delta has slowed the economy: Goldman
Brief: August marked the seventh straight month of gains for the S&P 500 (^GSPC) as investors ignored softening U.S. economic data at the hands of the COVID Delta variant. But investors may be wise to stop ignoring the data, and position for a September rife with market volatility, says the team at Goldman Sachs. "General mobility statistics have weakened, full-service restaurant indicators have softened, travel intentions appear to have faded and retail traffic declines (off of 2019 levels) have re-accelerated," Goldman Sachs strategist Jason English pointed out in a new research note on Wednesday.English said his colleague at Goldman is now recommending loading up on options to profit from renewed concerns on the economic recovery. "The setback has injected a higher degree of uncertainty into the fundamental outlook for many sectors that our options analyst, John Marshall, does not believe is fully reflected in the options market.
‘Forever Changed’: CEOs Are Dooming Business Travel — Maybe for Good
Brief: Business travel as we’ve known it is a thing of the past. From Pfizer Inc., Michelin and LG Electronics Inc. to HSBC Holdings Plc, Hershey Co., Invesco Ltd. and Deutsche Bank AG, businesses around the world are signaling that innovative new communications tools are making many pre-pandemic-era trips history. Take Akzo Nobel NV, Europe’s biggest paint maker, for instance. At its Amsterdam headquarters, Chief Executive Officer Thierry Vanlancker has spent the past year watching his manufacturing head, David Prinselaar, flap his arms, madly gesticulate and seemingly talk to himself while “visiting” 124 plants by directing staff with high-definition augmented-reality headgear on factory floors. A task that meant crisscrossing the globe in a plane before is now done in a fraction of the time — and with no jet lag. For Vanlancker, there’s no going back.
Raymond James Delays Office Return Amid Florida Virus Surge
Brief: Raymond James Financial Inc. has pushed back its return-to-office date to the middle of October as the coronavirus surges in its home state of Florida. The St. Petersburg-based firm has told workers they don’t have to return to the office until Oct. 11, according to people familiar with the matter. The firm had initially wanted some workers to return to work next week, one person said, asking not to be identified discussing private information. A spokesman for the company declined to comment. Florida, which has become the epicenter of the coronavirus oubreak in the U.S., reported a record number of Covid-19 deaths last week. The spread of virus variants has spurred banks to enact more stringent precautions after initially leading the push to get people back to their desks.
CEOs back to pre-pandemic levels of confidence, KPMG survey shows
Brief: The bosses of the world's biggest companies are back to their pre-pandemic levels of confidence in the global economy's prospects and most expect to make acquisitions to boost growth, a survey showed on Wednesday. While uncertainty remained due to the Delta variant of COVID-19, 60% of corporate leaders were confident about the global economy over the next three years, up from 42% in a similar survey in early 2021, accountancy firm KPMG said. Almost nine out of 10 senior executives said they were seeking out takeover deals over the next three years. "Despite the continued uncertainty around the pandemic, CEOs are increasingly confident that the global economy is coming back strong," Bill Thomas, KPMG's global chairman and chief executive, said.
Zoom stock just crashed — here's the simplest reason why
Brief: The Street is unclear on how to value Zoom as its growth slows with people returning to offices and schools, despite the lingering pandemic. So the only course of action right now it seems — sell Zoom's stock (ZM) and wait for more stable waters. "We are wary of a potential demotion for Zoom from hyper-growth to growth at a reasonable price,” said Citi analyst Tyler Radke, following Zoom's underwhelming second quarter results Monday evening. Radke called the earnings report disappointing. Zoom saw slowing sequential growth rates in customers spending in excess of $100,000 a year with the company (131% in the second quarter versus 160% in the first quarter) and spending with 10 or more employees (36% growth in the second quarter versus 67% growth in the first quarter). "I think we were talking about most of us are probably socializing in person now, doing fewer things like Zoom Happy Hours, and that's where we are starting to see some of the challenges," acknowledged Zoom CFO Kelly Steckelberg on an earnings call with analysts.
