Coronavirus Economic Impact Update

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• The U.S. Food and Drug Administration has Fully approved The BioNTech / Pfizer vaccine provides hope for people over 16 years of age, and hope that more people are hesitant about the vaccine.

• Vietnam has deployed soldiers to help Enforce strict Covid-19 lockdown In Ho Chi Minh City, the epicentre of the worst coronavirus outbreak to date (Reuters)

• The number of deaths related to the new crown virus in England is “Significantly higher” in July According to an official measure, compared with last month

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Chris Williamson, chief business economist at IHS Markit, said: “Supply chain delays continue to cause severe damage, causing companies to often fail to meet demand and driving up corporate costs.” PMI survey.

According to the survey, corporate costs and the prices they charge in August rose at the fastest rate in the past 20 years, as the growth rate of the manufacturing industry hit a six-month low.

Similar concerns were also expressed in the UK Purchasing Managers Index report. In addition to staff shortages, supply chain issues have also put companies into trouble. Strive to meet demand. The survey results were echoed in another report by the CBI Employers’ Organization, which found that inventories were at the lowest level in more than 60 years and stated that continued disruptions could stifle the renaissance of the manufacturing industry.

Although some of the problems in the UK are unique-for example Shortage of truck drivers Caused by Brexit-rising transportation costs and shortages of raw materials such as semiconductors are causing problems in the global supply chain.

Many of the current logistics problems originate in Southeast Asia, where factories that meet the Western demand for goods such as smartphones have been hit by the highly contagious variant of the Coronavirus Delta.

Factories in Vietnam, Thailand, and Malaysia have all been affected by the blockade, exacerbating chip shortages.The Vietnamese factories that supply Apple and other companies even tried “Overnight” method To the manufacturing industry where workers live on site, but failed to prevent the outbreak of the epidemic.At the same time, U.S. Vice President Kamala Harris is visiting the region “Support supply lines and supply chains“.

Producing goods is only part of the problem: transporting them is another matter.As we also reported today, shipping companies not only Extreme lack of containers, And there are ships that carry them. Since 2007, the number of global shipyards has been reduced by two-thirds, and after the surge in freight rates during the pandemic, still operating shipyards have been flooded with orders.

Global economy

Global economic data more and more Not up to analyst’s forecast And it has heightened concerns that the delta variant of the coronavirus will hinder recovery. An analyst said, “Investors’ focus has shifted from the momentum of reopening, strong fiscal and monetary support, and profitability to dwindling conversations and political uncertainty… China’s economic slowdown and geopolitical tensions “.

Although official data last week showed a decline in UK retail sales, British Yes Increase their spending With the end of the pandemic restrictions, in bars, restaurants and entertainment venues.One beneficiary is West EndBefore the critical pre-Christmas trading period, business is picking up.Capital Office market Also showing Signs of recovery, But a lot depends on whether people continue to work from home.

Copenhagen Is The safest city in the world, According to the Economist’s Safe City Index, followed by Toronto, Singapore, Sydney and Tokyo. The annual survey has been revised to reflect pandemic issues, ranking the locations of personal, health, infrastructure, digital, and environmental safety issues.

Business

Pandemic unemployment assistance, a temporary assistance program provided by the US government for an estimated 57 million people in the country Odd job with Freelancer, Yes Will end on September 6Other unemployment benefits will also expire, as the new coronavirus case rises again and disproportionately affects people of color and Hispanics. Millions of people are struggling and the economic recovery of these groups is also slower.

Theater operator Hope a lot of delay James Bond movie premiere No time to die The meeting in London on September 28 will help save them from the “survival” crisis triggered by the pandemic. Some people dream of returning to the box office revenue of 43 billion U.S. dollars in 2019, but others worry that the rise of movie streaming has paid off for the industry’s traditional business model.

Many British tourists Ripped off By “Cowboys” Coronavirus test provider, According to the consumer rights organization which? The government stated that it had issued warnings to 82 companies on the approved list and completely deleted 57 companies.

market

Central Bankers’ (Slimming) Annual Gathering Jackson HoleWyoming will start on Thursday, and everyone is watching Fed Chairman Jay Powell for clues as to when the Fed may begin to reduce its pandemic support for the economy. Veteran investor Mohamed El-Erian Urge Powell to be bold And detailed his preferred exit route to avoid any sudden policy changes in the future.

Trading conditions are at $22tn U.S. Government Bond MarketAt the same time, the situation has deteriorated as traders prepare for Powell’s speech.The liquidity of the Treasury bond market, which is used as a benchmark for global multi-trillion dollar asset pricing, is currently extremely low and May cause large price fluctuations If Powell made a newsworthy statement.

International Bank RoadshowWhat was once considered essential for raising debt and equity, the dust has settled during the pandemic.The virtual presentation not only brings huge cost savings, but also Faster transaction turnover: Both debt and stock issuance set new records in 2020, and 2021 looks like another record year.

Express your opinion

Scarlet Pepper Comment “Nobody wants to go back”: Covid hinders IPO and debt roadshows:

Between the mid-1980s and mid-2010s, I was the banker on these global roadshows. The targeted and well-prepared one-on-one Q&A was great at the time, and it should work now. Large group meetings are too impersonal to have an impact. A group lunch (no more than six people) will also bring some interesting things to all relevant people. However, a lot of content can now be completed or added through a well-written/executed electronic presentation, which includes clips and C-level executive interviews. .. A more effective platform should be provided for all relevant personnel. The hard days of five to six numbing visual roadshow meetings are not what investors want. The pendulum needs to swing back a bit. Obviously not all the way back.

Final thoughts

British “Financial Times” commissioned Nigerian poets on weekends Inua elamus To commemorate the 200th anniversary of Keats’s death, write a response to Keats’s classic work “To Autumn”. The animated poem “To John” exposes the destruction humans have caused to nature in the past 200 years.

Tickets for the music festival in London on September 4th are now on sale here.