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Our briefing for Tuesday March 31, 2020:
Mar 31, 2020 4:39:16 PM
- In the United States, The White House will formally reissue coronavirus guidelines on Tuesday, which includes social distancing efforts extended until April 30th. A CNN report states not all of President Donald Trump’s advisers supported the decision with some only wanting a 15-day extension. The report notes Trump told aides it would work more in the government’s favour to possibly ease the guidelines earlier than to extend them again.
- Canada is closing in on 8,000 confirmed and presumptive cases of COVID-19 as of Tuesday and 92 deaths. The provinces of Quebec (4,100 +) and Ontario (close to 2,000) account for almost three-quarters of the country’s confirmed/presumptive cases.
- Italy was the first European country to issue a nationwide lockdown and they continue to slowly show signs of improvement. It was noted last week, the country’s daily diagnosis rate was holding below 10% for consecutive days. On Tuesday, that number was 4%, the slowest percentage daily growth rate since the outbreak began. However, the country still holds the designation of most citizens lost to the virus as their death toll sits at close to 12,450.
- In the midst of a two-week lockdown, Spain reported its deadliest day yet due to the coronavirus with 849 passing away in the last 24 hours. The country expanded their lockdown this week with a ban on all work deemed to be non-essential as Spain has close to 8,200 deaths, 2nd only to Italy.
- As the number of cases continue to rise in the United Kingdom, Michael Gove, the Cabinet Officer minister admitted on Tuesday the country must go “further, faster” to increase the ability to carry out coronavirus tests. The government aims to carry out 25,000 tests per day but admit their ability has been thwarted due to a global shortage of the chemicals needed to do the tests. The UK government has drawn criticism as Germany has been able to test 70,000 people daily. Meanwhile, the UK continues to prepare several enormous (Florence) Nightingale field hospitals in conference centers, with building efforts supported by the military.
- Australia is showing cautious optimism in their battle against COVID-19, seeing their rate of growth of infections slowing from 25-30% last week to 9% over the past three days. However, government officials noted citizens shouldn’t become complacent and stressed the need to continue with social distancing.
Covid-19 – Due Diligence And Asset Management
Goldman Gives Staff 10 Days Paid Family Leave due to Coronavirus
Brief: Wall Street bank Goldman Sachs (GS.N) is offering employees 10 days of paid family leave to care for children or elderly parents who are at home during the coronavirus pandemic, according to a memo sent to staff on Tuesday that was seen by Reuters. Several banks have been extending extra paid time-off to employees, as the flu-like virus has shut down schools and forced many to stay at home.
Billionaire Investor Steve Cohen: ‘After an Earthquake there are Tremors’
Brief: Billionaire trader Steven A. Cohen is cautioning the staff of his investment firm, Point72 Asset Management, to remain cautious amid markets that have recovered slightly from coronavirus-driven lows. “Markets don’t come back in a straight line; after an earthquake there are tremors,” Cohen wrote to staff on Friday in an internal memo seen by Reuters. “We need to continue to be disciplined. We are seeing plenty of opportunities to generate returns, but I don’t want us taking undue risks.”
EU Watchdog Considers Leverage Curbs on Hedge Funds to Bolster Financial Stability
Brief: The European Union markets watchdog is considering leverage curbs on hedge funds and private equity funds to shore up financial stability as the coronavirus outbreak roils global markets.The proposal from the European Securities and Markets Authority (ESMA) could give more powers to countries like Spain, Italy and France - that have over the past week slapped bans on short-selling - a favoured trading strategy of hedge funds in particular.
Prophet Capital to Dissolve Hedge Fund Amid ‘Extreme Volatility’
Brief: Prophet Capital Asset Management LP, an investor in loans and structured credit securities hit by recent market turmoil, plans to temporarily block withdrawals from one of its hedge funds and ultimately dissolve it, according to a letter sent to investors on Monday seen by Reuters. “As you are no doubt aware, financial markets are experiencing extreme volatility and impaired liquidity as a result of the Coronavirus crisis,” Prophet executive David Rosenblum wrote.
$4.7 TR Asset Owner Group to Firms: Five Ways YOU Can Help Ease Covid-19 Blow
Brief: As Covid-19 continues to create disruption across Europe, 195 institutional asset managers are appealing to companies to stay the course when it comes to maintaining staff and prudent cost management. The group, which includes such heavyweights like BMO, Aviva Investors and Nordea, has collective assets under management of $4.7tn. In an open letter, the group said the long-term viability of firms they invest in is closely linked to the welfare of their employees, suppliers, customers and the communities in which they operate.
Groups Raise Alarm over Fed, BlackRock Debt-Buying Deal
Brief: A collection of 30 investor and sustainability focused groups have raised concerns in a letter to the Federal Reserve over potential conflicts of interest and lack of transparency and oversight in the recent agreement between the central bank andBlackRock. On March 24, the Fed announcedBlackRockas investment manager and adviser for three new programs aimed at supporting the U.S. economy amid the COVID-19 pandemic. Two of the three appointments relate to the Fed's new measures to ensure credit continues to be available to large employers: The primary market corporate credit facility, providing new bond and loan issuance; and the secondary market corporate credit facility, providing liquidity for outstanding corporate bonds.
