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Our briefing for Friday, November 12, 2021:
Nov 12, 2021 3:59:07 PM
- In the United States, the department of Labor’s latest data showed a record high 4.4 million people or 3% of the country’s workforce, quit their jobs in September. The latest data highlights the after effects of the pandemic where the tight jobs market shows workers have more leverage to move around, while employers try everything they can to retain the staff they have. People leaving their jobs increased the most in arts, entertainment and recreation (people who staff live events) and other markets ranging from auto workers and hairstylists to local and state government positions. According to the Labor department, roughly 34.4 million have quit their jobs this year, compared to 36.3 million in all of 2020.
- Canada’s top public health officer stated on Friday that cooler weather and easing restrictions are contributing to a rise of COVID-19 cases in some parts of the country. Dr. Theresa Tam made the comments during her weekly briefing noting she expects “bumps” in Canada’s trajectory as provinces continued to lift gathering restrictions and as the colder temperatures drive more and more people indoors. With the land borders between Canada and United States opening recently, Dr. Tam also commented on the pre-arrival PCR tests for travellers entering the country, noting the conditions are still being actively reviewed, and that there would be further information to come.
- United Kingdom’s Prime Minister Boris Johnson is urging elderly and vulnerable people to get their booster jabs of the COVID-19 vaccine to prevent a rise of cases in the country. “I’m seeing the storm clouds gathering over parts of the European continent. And I’ve got to be absolutely frank with people: we’ve been here before. We remember what happens when the wave starts rolling in,” Johnson said. While the prime minster has noted the UK cases have been drifting down after a peak last month, he said it was unclear if the trend was set to continue.
- Germany’s chancellor-in-waiting plans to push ahead to phase out of a state of emergency, despite the country recording the highest coronavirus case numbers since the start of the pandemic. Speaking during a parliamentary debate on Thursday, Olaf Scholz called on MPs to support a catalogue of new measures curb the spread of COVID-19 that would replace the state of emergency. Germany has the third-lowest vaccination rate in Western Europe, with 66% of the country’s population fully vaccinated.
- Austria’s chancellor is warning the country is days away from ordering millions of unvaccinated people to stay at home. Chancellor Alexander Schallenberg announced the rare move should be given the green light by the government over weekend as he is one of many European leaders fed up with those who have not been inoculated against COVID-19. In a separate press conference on Thursday, Schallenberg admitted Austria’s vaccination rate is “shamefully low” and is disappointed since they have enough vaccines available. Unvaccinated people in Austria are already excluded from entertainment venues, restaurants, hairdressers, and other parts of public life.
- Israel started a nationwide drill this week to test its readiness in the event of an outbreak of a new, more lethal COVID-19 variant. Media sources noted the exercise - war-gamed over three sessions - started Thursday to simulate the passage of time after a potential flare-up, will test the resilience of systems that determine lockdown policies, monitor variants, offer economic support for citizens, enforce quarantines, and watch border crossings. “While the situation of the coronavirus in the world is deteriorating, Israel is safe and protected,” Prime Minister Naftali Bennett said in a statement. “In order to maintain this, and to safeguard the continuity of normal life, we must continue to closely monitor the situation and prepare for any scenario.”
Covid-19 – Due Diligence And Asset Management
Biden Agenda Won’t Slow Record Pace of US M&A, says new Survey
Brief: Respondents to Dykema’s 17th annual M&A Outlook Survey believe nothing will break the stride of US M&A dealmakers over the year to come, with most viewing the Biden administration’s legislative agenda as positively impacting activity. A resounding 75 percent of respondents expect the US M&A market will strengthen in the next 12 months, while only 7 percent anticipate it will weaken. Respondents not only predict deal volumes will be up across the board, from small to mid-market to mega-deals of USD1 billion and more, but 9 out of 10 also expect M&A activity among privately owned businesses to increase over the next year… “This might stem from ongoing supply chain and labor shortage issues associated with the pandemic as well as the general, but persistent, uncertainty it brings,” says Jeff Gifford, leader of Dykema’s Corporate Finance practice group. “That said, now even after the surge in cases, dealmakers have learned how to manage Covid-19-related uncertainties, with respondents ranking Covid-19-related delays sixth in order of the most common obstacles they experienced in deal-making last year.”
Wall Street is Offering 8-Figure Pay Packages to Woo Top Talent
Brief: The trading desk was just embarking on a second banner year when senior executives started defecting to the likes of Bank of America Corp., Citigroup Inc. and Millennium Management. By this fall, many of the team’s heaviest hitters had gone. The setting wasn’t some struggling investment bank. It was the equity derivatives desk inside the mighty JPMorgan Chase & Co. -- one of many pockets of employee turnover that have erupted there in recent months, keeping the company’s recruiters busy. Pan out, and it’s part of a trend sweeping across Manhattan’s financial industry. Signs of a surge in Wall Street job-hopping are emerging everywhere: An independent recruiter said he’s never seen so many eight-figure hiring packages. A career coach said his banker clients aren’t basing decisions solely on money -- they’re fed up with working so much they can’t even date. An industry veteran said moves are becoming so common that some people left behind are anxious: Are they making a mistake by staying? The trend coincides with the easing of a pandemic that bottled up job changes and prompted many in the industry to question whether they want to resume old commutes, or even stay in the same city. Now, rival firms are dangling money or, in some cases, more flexible lifestyles to lure talent and capitalize on the trading and dealmaking boom. There’s also more competition for women and members of minority groups after virtually every major firm promised to improve diversity in the wake of last year’s racial equity protests.
Venture Capital and the “Double Bottom Line”: In Conversation with Former UK Vaccine Chief and Health Investor Kate Bingham
Brief: When venture capital investor Kate Bingham was appointed to lead the UK’s coronavirus vaccine procurement effort in May 2020, Prime Minister Boris Johnson tasked her with delivering “speed, not perfection”. By December that year, the UK had approved its first Covid-19 vaccine, developed by Pfizer/BioNTech. Since then, 80 per cent of the UK population over the age of 12 have received at least one vaccine, and the jabs are working “much better than anyone expected”. “To get any vaccine from identification of pathogen through to a vaccine, the quickest historically has been five years, but that was 50 years ago,” says Bingham, managing partner of venture capital firm SV Health Investors, speaking around a virtual impact investing event, GSG Global Impact Summit in October. Bingham has 30 years’ experience in the biotechnology sector, and her investments have helped launch new treatments for inflammatory and autoimmune disease and cancer.
Billionaire Investor Ray Dalio Warns Inflation is Driving Down Real Wealth
Brief: Ray Dalio sounded the alarm bell on Thursday after inflation in the U.S. surged to the highest level since 1990 and warned his followers that rising portfolio values don’t actually signify increasing wealth. “Some people make the mistake of thinking that they are getting richer because they are seeing their assets go up in price without seeing how their buying power is being eroded,” Dalio wrote in a post on LinkedIn. “The ones most hurt are those who have their money in cash.” Dalio, the billionaire founder of Bridgewater Associates, has long been known for his view that there are better assets to hold than cash amid central bank money printing. In periods of rising prices, he says it’s actually more important to look at what you can buy with that money. “When a lot of money and credit are created, they go down in value, so having more money won’t necessarily give one more wealth or buying power,” Dalio wrote, adding that real wealth becomes a function of production capacity over time. “Printing money and giving it away won’t make us wealthier if the money isn’t directed to raise productivity.”
Can the Work from Home Experiment Help Close Asset Management’s Gender Gap?
Brief: While most women in asset management would like the hybrid work model to continue, not everyone thinks it will have a positive impact on their career — unless firms address some of the challenges, including helping to foster connections with colleagues and clients. According to the 2021 KPMG Women in Asset Management Survey, 89 percent of respondents said they would like the option to continue remote or flexible work. KPMG’s findings were consistent across age groups. “Although there is a perception that working mothers most desire flexibility, our survey shows that nearly everyone wants it,” according to KPMG. Employees also want flexibility to care for aging parents, for example. However, 32 percent of respondents said the flexibility at work might have a negative impact on promotions and advancement. Among the 491 surveyed professionals, 93 percent were women, representing asset classes and categories including private equity, hedge funds, real estate, and mutual funds.
