What we’re reading (11/26)
“Classification of Omicron (B.1.1.529): SARS-CoV-2 Variant of Concern” (World Health Organization). “This variant has a large number of mutations, some of which are concerning. Preliminary evidence suggests an increased risk of reinfection with this variant, as compared to other VOCs. The number of cases of this variant appears to be increasing in almost all provinces in South Africa. Current SARS-CoV-2 PCR diagnostics continue to detect this variant. Several labs have indicated that for one widely used PCR test, one of the three target genes is not detected (called S gene dropout or S gene target failure) and this test can therefore be used as marker for this variant, pending sequencing confirmation. Using this approach, this variant has been detected at faster rates than previous surges in infection, suggesting that this variant may have a growth advantage.”
“Countries Are Scrambling To Stop A New Covid Variant” (The Economist). “If the mutations in Omicron turn out to make covid vaccines less potent, the jabs may have to be tweaked. On November 26th Pfizer and BioNTech, makers of the covid jab that is most widely used in Western countries, said that they would be able to rework their mRNA vaccine within six weeks and ship the first batches within 100 days. The mutations in Omicron do not appear to be a threat to the efficacy of antiviral medicines for covid, but they could defeat some antibody therapies, which are given to people unable to mount an immune response.”
“Dow Tumbles 900 Points For Worst Day Of Year On Fears Of New Covid Variant, S&P 500 Drops 2%” (CNBC). “U.S. stocks dropped sharply on Friday as a new Covid variant found in South Africa triggered a global shift away from risk assets. The downward moves came after World Health Organization officials on Thursday warned of a new Covid-19 variant that’s been detected in South Africa. The new variant contains more mutations to the spike protein, the component of the virus that binds to cells, than the highly contagious delta variant.”
“Covid-19 Variant Upends Investor Bets On Rate Increases” (Wall Street Journal). “Investors piled into government bonds and quickly recalibrated their expectations for interest-rate increases in response to the new Covid-19 variant first identified in South Africa. The yield on the 10-year U.S. Treasury note dropped to 1.484% Friday, according to Tradeweb, from 1.644% at Wednesday’s close. That marks the largest trading-session decline since March 2020, at the start of the coronavirus pandemic. Yields fall as bond prices rise.”
“Oil Prices Drop More Than 10% As Virus Variant Threatens Blow To Demand” (Financial Times). “Oil prices plunged more than 10 per cent on Friday as reports of a virulent new coronavirus variant sparked fears of more pandemic lockdowns and another blow to fuel demand, just as the US plans to release more supplies on to the market. West Texas Intermediate, the American oil benchmark, dropped by 13 per cent to settle at $68.15 a barrel as US traders returned following the Thanksgiving holiday.”
