[WEEKEND HEADLINES] COVID OMICRON VARIANT

WHO designated B.1.1.529 as a "variant of concern", as expected, and has been given the Greek letter ‘Omicron’. WHO said preliminary evidence suggests the latest COVID variant carries greater risk of infection than other variants of concern and an increased risk of reinfection. WHO said it is working with technical partners to understand the potential impact of this variant on existing countermeasures including vaccines, while it said that it wasn’t clear yet if Omicron is more transmissible compared to other variants or if it caused more severe disease. (Newswires)    

US President Biden said the White House team recommended new travel restrictions and that there is not a lot known about the new variant, while he added that they are currently not thinking about a new vaccine mandate and suggested there was nothing to be worried about Friday’s stock market decline. Furthermore, it was reported that Biden was to conduct a briefing with members of his COVID-19 response team. (Newswires)    

US NIH’s Fauci stated that Omicron was a ‘clarion call’ for people to get vaccinated and that the variant is clearly giving an indication it can spread rapidly, while he added that people in US should still get COVID-19 boosters if they are six months past the initial vaccination and that travel can continue to be safe if protocols are adhered to. Furthermore, Fauci told US President Biden it will take about two more weeks to get more information regarding transmissibility of the Omicron variant and he continues to believe vaccines are likely to provide a degree of protection against severe COVID cases. There were also comments from NIH Director Collins who stated that current vaccines are likely to protect against the Omicron variant, although Collins also noted that it is too early to know the answers on the Omicron variant. (Newswires)    

New York Governor Kathy Hochul declared a disaster emergency on Friday due to rising COVID-19 infection rates and hospitalisations. (Newswires)    

Former FDA Commissioner Gottlieb said even if the South African variant can evade vaccines to a degree, it won't necessarily negate their effectiveness completely and could be similar to the Beta variant, where protection was still about 75%. Gottlieb added that waning immunity among people who aren't boosted could leave many more vulnerable to a variant like this and that the worst case, when the Delta wave wanes, this could cause more infections during spring/summer in US although much is unknown, while he suggested it's possible that a large number of mutations could lead to less transmissibility but is was too early to draw conclusions. (Newswires) Johnson and Johnson (JNJ) spokesperson said JNJ has already begun testing its vaccine's effectiveness against the new variant first identified in South Africa. It was also reported that Novavax (NVAX) initiated development of a new recombinant spike protein based on the known genetic sequence of the new variant, while it will have a new recombinant spike proton based on known genetic sequence of the new variant ready for testing and manufacturing within the next few weeks. (Newswires)    

Canada reported two Omicron variant infections in Ottawa and the health minister said it is expected that other cases will be found in Canada. (Newswires)    

South African President Ramaphosa said the new variant is responsible for most cases in the most populated province of Gauteng and that they will know in the coming weeks whether Omicron causes a more severe disease, while he added that they could be facing a fourth wave of the virus within weeks if cases continue to increase. Furthermore, Ramaphosa said the government will not impose further restrictions at this time and that they are deeply disappointed by some countries prohibiting travel to southern African countries which instead should focus on supporting developing nations in fighting COVID-19. (Newswires)    

South African Medical Association Chairwoman Coetzee said the new Omicron variant has resulted in mild disease without prominent symptoms so far and could be treated at home. There were also comments from the South African Health Minister on Friday that it will be necessary for the government to take some precautions over the variant, but exact restrictions have not been decided, while the health minister said the reaction of countries in Europe to the new COVID-19 variant is unjustified and the reaction of some countries imposing travel bans are completely against the norms and standards of the WHO. Furthermore, South African scientist Sanne said they have every indication that vaccines are still effective in preventing severe COVID-19 disease from the variant and that they will have more tests done by the middle of next week. (Newswires)    

European Commission President von der Leyen said that they are in a race against time regarding the Omicron variant and that they need to buy time, while there were separate comments from ECB's Lagarde that ECB’s Lagarde that the eurozone is in better shape to respond to the new COVID wave and Omicron variant. There were also prior reports that EU states supported the proposal for a temporary suspension of travel to southern Africa due to the new COVID-19 variant. (Newswires)    Dutch PM Rutte stated on Friday that stricter measures are required to contain the COVID-19 surge. It was also reported that Dutch health authorities said there were likely dozens of people infected with COVID-19 among the 600 passengers that arrived in Amsterdam’s Schiphol Airport on two flights from South Africa and it later announced that 13 passengers from South Africa tested positive for the Omicron variant on a flight that arrived last week, while the health minister noted it is possible there are more cases of the Omicron COVID-19 variant in the Netherlands. (Newswires)    

French Health Ministry said it detected 8 possible cases of the Omicron variant in France. (Newswires)    

UK PM Johnson announced temporary measures to address the emergence of the Omicron variant which includes making face coverings compulsory for public transport and in shops although pubs and restaurants will be exempted. PM Johnson also stated that all international arrivals will take a Day 2 PCR test and will be required to self-isolate until they receive a negative result, while he noted that it appears the Omicron variant can spread rapidly and between people who are doubly vaccinated. Furthermore, the precautionary measures will take effect on Tuesday and will be reviewed in three weeks, with the UK to also convene an urgent meeting with G7 health ministers on Monday to discuss the Omicron variant. It was also separately reported that Britain recorded a third case of the Omicron variant with the individual linked to travel from southern Africa and was no longer in the country but was in Westminster during a stay in the UK. (Newswires)    

Australia registered its first cases of the Omicron variant which were from two people who arrived in Sydney from southern Africa and it will introduce a 14-day quarantine for citizens travelling from southern Africa due to the new variant, while foreign travellers that have been to African countries where the new variant has been detected within the prior 14 days will not be permitted to enter Australia. Furthermore, Australian PM Morrison called emergency meetings amid the new variant and said border reopening plans are being reviewed. (Newswires)    Japanese PM Kishida said they are considering further border restrictions and that they are watching the Omicron situation with a sense of urgency, while it was later reported that Japan is to effectively ban all foreigners from entering its borders starting this month. (Newswires/NTV)    

South Korea is to restrict arrivals from South Africa and seven other countries due to the new variant, while South Korea’s daily new COVID-19 cases fell below 4,000 although daily deaths and critical cases were at a record high. (Newswires)    

China could face over 630k COVID-19 infections per day if it were to drop its zero-tolerance policies by lifting travel curbs, according to a study by Peking University mathematicians. (Newswires)    Israel banned all entry by foreigners for two weeks. (Newswires)   

Johnson and Johnson (JNJ) spokesperson said JNJ has already begun testing its vaccine's effectiveness against the new variant first identified in South Africa. It was also reported that Novavax (NVAX) initiated development of a new recombinant spike protein based on the known genetic sequence of the new variant, while it will have a new recombinant spike proton based on known genetic sequence of the new variant ready for testing and manufacturing within the next few weeks. (Newswires)    

AstraZeneca (AZN LN) said it is looking into the impact on the vaccine and will collect real world data against the new variant to compare it, while it is also testing a long-acting antibody combination against the new variant and is hopeful it will retain efficacy. (Newswires)    

Moderna (MRNA) Chief Medical Officer said they think Omicron may elude current vaccines but noted that a new vaccine for the variant could be ready early next year. (Newswires)  

Analysis details (06:05)

• Headlines since Friday's European close.

29 Nov 2021 - 06:00- EquitiesResearch Sheet- Source: Newsquawk