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Our briefing for Thursday, September 16, 2021:
Sep 16, 2021 3:56:34 PM
- In the United States, a senior White House official says a new system for international travel is being developed. White House Coronavirus Response Coordinator Jeff Zients told the U.S. Travel and Tourism Advisory Board that the new plan will eventually replace existing restrictions, although he did not give any indication as to when that change will be made. "We are exploring considering vaccination requirements for foreign nationals traveling to the United States," Zients said on Wednesday. The new system will involve contact tracing of travellers to provide data to the Centers for Disease Control and Prevention. Zients says the administration is looking to lift existing travel restrictions as soon as possible.
- In Canada, the province of Alberta is dealing with soaring case numbers as they struggle to contain the fourth wave of the virus. On Wednesday, Premier Jason Kenney declared a state of emergency and announced several new Covid-19 measures including a vaccine passport system. Alberta reported 24 new deaths on Wednesday, one per hour, and 1609 new cases. The premier warned that the situation is becoming increasingly severe and that the province could soon run out of intensive care beds. “Unless we slow transmission, particularly among unvaccinated Albertans, we simply will not be able to provide adequate care to everyone who gets sick based on current trends,” Kenney said.
- In the United Kingdom, booster shots for people over 50 have been recommended as part of the government’s Covid-19 winter plans. The Joint Committee on Vaccination and Immunization (JCVI) made the recommendation that the boosters be given to everyone over 50 in addition to people with weakened immune systems and healthcare workers. Approximately 30 million people are eligible for the shots, which will be given no earlier than six months after a person receives their second dose. The boosters will be delivered beginning next week. Despite case numbers being in the 30,000 range, Prime Minister Boris Johnson has said his government will not introduce any further restrictions for England at this time.
- In Italy, the Covid-19 Green Pass will be made mandatory for all workers beginning next month, a minister said. The Green Pass is a digital or paper certificate that discloses whether a person has been fully vaccinated, tested negative or recently recovered from Covid-19. Italy is the first European nation to require all workers to come under a vaccine passport system. Regional Affairs Minister Mariastella Gelmini said the cabinet plans to make the Green Pass mandatory for both public and private sector workers. People who don’t comply with the rules could face suspension without pay.
- New Zealand reported 13 new Covid-19 cases, down slightly from 15 the previous day. This brings the total number of infections for this outbreak to 996. Prime Minister Jacinda Ardern is urging citizens to get vaccinated, not just for themselves but also for their children. “There’s a whole group of children that cannot be vaccinated right now, they’re not eligible. And yet we are increasingly seeing Covid-19 reach our children. So, if you don’t feel like doing it for yourself, do it for our kids,” Ardern said. So far about 69% of New Zealand’s eligible population have had their first dose of vaccine, while about 35% are fully vaccinated.
- In Australia, Victoria state reported its highest jump in new coronavirus case numbers at 514, exceeding the previous record of 473 set on Monday. Melbourne remains under its sixth lockdown but is expected to reach the 70% first dose vaccination milestone by this Friday, which means some curbs around travel and outdoor exercise can be eased. New South Wales reported 1351 new cases, up from 1259 the previous day, and 12 new deaths, 10 of which were among unvaccinated individuals. Officials are urging Australians to get their vaccines, as they aim for 70% full vaccination rates before reopening.
Covid-19 – Due Diligence And Asset Management
Lack of knowledge prevents pension trustees from capitalising on post-pandemic investment opportunities
Brief: Professional trustees’ appetite for taking risk has increased since pre-pandemic, according to a new study of Professional DB Trustees, conducted by Charles Stanley Fiduciary Management. Almost half (47 per cent) of professional DB trustees revealed that their appetite for investment risk overall has increased, with around one in five (18 per cent) saying that it has increased significantly. Just 14 per cent said it had reduced. But the research also found that they feel their investment decisions are hampered by onerous regulation and a lack of knowledge.Professional Trustees want to take more risk across the board – in equities, credit markets and alternatives - as well as relaxing liability hedging. But burdensome regulation coupled with a lack of confidence in their investment knowledge mean it is unclear whether trustees have the freedom to enact their views.
The Firms That Have Guided EMEA Investors Through the Pandemic
Brief: When it comes to making investment decisions in the European, Middle Eastern, and African markets, investors want the real thing. “In emerging markets, the human touch as ever is very important to have the pulse of the markets and, ultimately, make more informed decisions,” said Camille Asmar, head of equity sales for CEEMEA at HSBC. “You have to walk around the streets of Istanbul and Johannesburg or go to Riyadh and see exactly what is happening on the ground, how the population is behaving and thinking.” For much of the past 18 months, as the world grappled with Covid-19, this due diligence by investors was rendered nearly impossible due to lockdowns causing business travel to cease. But fortunately, the top equity sales and corporate access providers in the regions were there to step up.
Boom for banks as M&A and pandemic boost corporate FX needs
Brief: A boom in corporate dealmaking, surging input costs and a focus on short-term cash flows in the pandemic have sent companies rushing to hedge their currency exposures this year, giving a boost to banks that sell foreign exchange products. Corporate treasurers say the pandemic, which sent revenues tanking in 2020 before this year's sharp rebound, has encouraged many to hedge currency risks more frequently. Relentless supply chain pressures, and a sharp rise in raw material and other input costs that are mostly denominated in U.S. dollars, are reasons for companies to lock in prices too. And a surge in mergers and acquisitions as the recovery takes hold is also lifting corporate demand for foreign currencies. Global dealmaking is running at a record high this year, with $3.9 trillion of deals already transacted by early September, according to Refinitiv data.
World Economic Forum Is Set to Return to Davos Next Year
Brief: The World Economic Forum will return to the Swiss ski resort of Davos in 2022, after the pandemic forced organizers to shift to Singapore and then cancel their meeting altogether this year. The in-person event is scheduled for Jan. 17-21 and designed “to address economic, environmental, political and social fault lines exacerbated by the pandemic,” the group said on Thursday. It is working with the Swiss government and health experts to establish the appropriate safety measures. The meeting usually feature heads of states as well many of the world’s top executives, bankers and economic policy makers. “The pandemic has brought far-reaching changes,” WEF Founder Klaus Schwab said. “In a world full of uncertainty and tension, personal dialog is more important than ever.”
Toronto-Dominion Sees Broad Return to Office Delayed Until 2022
Brief: Toronto-Dominion Bank said a broad return of workers to its offices has been delayed until at least next year as Covid-19’s delta variant upends employers’ plans across North America. The lender, Canada’s largest by total assets, had said in March that employees working from home would likely continue to do so into the summer or potentially longer. Toronto-Dominion now doesn’t “currently expect a broader return to TD locations before calendar 2022,” Kenn Lalonde, the bank’s chief human resources officer, said in a memo to employees Wednesday. “We are monitoring the evolving situation and will update you when we have new information to share,” Lalonde said in the note. “In the meantime, we are making the necessary preparations for colleagues to be able to return to work on TD premises or third-party locations when conditions allow.”
