Powerscourt Coronavirus Briefing – 21 November 2020

The pandemic has turned lots of us into hypocrites. Take Gavin Newsom, the right-on Democratic governor of California. His state reported more than 13,000 cases in a single day for the first time on Friday and Newsom announced dozens of new curfews aimed at curbing the renewed spread of the virus.

The problem is that the Governor isn’t a super-credible advocate of controls. Pictures emerged yesterday of him enjoying an unmasked bash with 11 pals, including lobbyists, at a $350 a head Napa Valley restaurant on 6 November. He slowed down the news as much as possible but photographs have now emerged. He has apologised but was less than candid. He said the meal was outdoors. It really wasn’t. As Californians start a Thanksgiving week unlike any other, how much authority has Newsom asking for curfews?

Some good news from the UK – COVID-19 infection rates are levelling off in England and Scotland and decreasing in Wales and Northern Ireland, according to the latest data from the Office for National Statistics.  The R number continues to fall and is now between 1 and 1.1.  The ONS data doesn’t yet reflect the impact of the second lockdown in England, introduced on 5 November.

The levelling-off has raised hopes that families might be able to meet and mix at Christmas. The UK government is set to hold discussions with the devolved administrations to try to agree a unified approach to restrictions.

The UK regulator is already assessing Pfizer’s vaccine and there are hopes that all age groups will start getting it by the end of January. The Daily Mail reports on leaked NHS plans, suggesting the jab will be offered to the most vulnerable next month and then filter down by age.

A pandemic and the related economic gloom hardly seem like the most promising backdrop for consumer spending. Yet Americans seem set for a shopping splurge this Christmas – although it will be online instead of in stores. The Mastercard Spending Pulse report, made predictions for the 75-day period leading up to Christmas.  This year’s report suggests there will be a 33pc increase in ecommerce revenues – with total US retail sales increasing 2.4pc from the same period a year ago.

Steven Mnuchin, the US Treasury secretary, has been accused of making the US more vulnerable to a financial crisis, after breaking with the Federal Reserve by not renewing some crisis lending facilities.   

Companies with low or even ‘junk’ credit ratings have tapped into the buoyant mood after vaccine news, to push debt deals over the line, offering significant returns to investors with increased appetites for risk. Boparan, the UK’s largest chicken producer issued high-yield bonds this week.  US companies at the bottom of the ratings scale have also benefited from the post-vaccine euphoria. Cruise line operator Carnival, a company whose earnings have been battered by the pandemic, issued an unsecured deal this week. 

Finally is Australia – the state of South Australia decided to enter a state-wide lockdown based on a lie told by a man with COVID-19 about his link to a pizza shop, police say.  The strict lockdown began on Wednesday after the state detected 36 infections, including its first locally-acquired cases since April.  This would have been avoided if the man had told the truth, that he worked shifts at the shop, officials said.  Instead he said he only went there to buy a pizza.  This misinformation prompted health officials to assume the man had caught the virus during a very brief exposure and that the strain must be a highly contagious one. “To say I am fuming is an understatement,” state Premier Steven Marshall told reporters on Friday.

WHAT ARE COMPANIES SAYING?