Coronavirus-driven supply chain disruptions are having cash flow implications for the US protein sector due to increased operating costs and less efficient plants, Fitch Ratings says.
At the recent G20 Finance Ministers meeting in Riyadh, French Finance Minister Bruno Le Maire — a staunch advocate of deepening economic integration — posed a question which just a few years ago would have seemed inconceivable:
‘Do we want to still depend at the level of 90 per cent or 95 per cent on the supply chain of China for the automobile industry, for the drug industry, for the aeronautical industry or do we draw the consequences of that situation to build new factories, new productions, and to be more independent and sovereign?
That’s not protectionism — that’s just the necessity of being sovereign and independent from an industrial point of view’
As Australia was swept by panic buying and medical shortages this year, the scenes were eerily familiar for one of the country's most senior military planners.
In a secret meeting only a year earlier, the Defence Department's director of preparedness Cheryl Durrant and a group of Australian industry leaders had predicted a strikingly similar scenario.
"We predicted the unpredictable," says Ms Durrant, who left the department in January.
As distracted corporate executives close offices, plants and warehouses to reduce COVID-19 spread, other worrisome risks are emerging at these now-idle facilities. In addition to fires, vandalism and theft, spring flood season is beginning in the U.S., and hurricane season starts in a mere two months, leaving understaffed facilities potentially vulnerable. Additionally, earthquakes and tornadoes have continued to occur during the pandemic, as the U.S. has seen recently.
Celebrities and politicians with large social media followings are proving to be key distributors of disinformation relating to coronavirus, according to a study that suggests the factcheckers and mainstream news outlets are struggling to compete with the reach of influencers.
"Taking care of your mind as well as your body is really important while staying at home because of coronavirus (COVID-19). You may feel bored, frustrated or lonely. You may also be low, worried or anxious, or concerned about your finances, your health or those close to you."
This document is a guide on business continuity planning for enterprises, especially for the
small and medium sized enterprises in Singapore, to help them deal with the COVID-19
(Coronavirus Disease 2019) outbreak in China.
APRA
- APRA has suspended the majority of its planned policy and supervision initiatives and priorities in response to COVID-19. This response is intended to support APRA-regulated entities to maintain their operations.
- APRA has also suspended public consultations on revisions to the prudential framework until 30 September 2020 (presumably this will include CPS 511 Remuneration). It is unclear yet how this will affect the timeline for FAR implementation (if at all).
- APRA requires ADIs to advise of the reporting treatment for COVID-19 loans and publicly disclose the nature and terms of any repayment deferrals and the volume of COVID-19 loans. Banks have offered COVID-19 loans to affected small business and home loan customers which provides them with an option to defer their repayment for up to six months.
- APRA noted that COVID-19 loans will not be regarded as restructured and the repayment deferral period will not be treated as a period of arrears. APRA confirmed that the Coronavirus SME Guarantee Scheme (see below) will be an eligible guarantee by the government for risk-weighting purposes.
COFR
- COFR noted it is holding regular meetings to ensure coordinated regulatory response to COVID-19 to support credit flow e.g. noting that RBA has announced measures to provide liquidity to financial markets; APRA has announced temporary changes to its expectations on bank capital ratios;ASIC has introduced measures to ensure equity market participants' manage transaction volumes; and APRA and ASIC have reprioritised their regulatory work to minimise the regulatory burden upon institutions.
ASIC
- ASIC will focus its regulatory efforts on challenges crated by the COVID-19 pandemic. Until at least 30 September 2020, the other matters that ASIC will afford priority are where there is the risk of significant consumer harm, serious breaches of the law, risks to market integrity and time-critical matters.
- ASIC has suspended near-term activities which are not time-critical (such as consultation, regulatory reports and reviews).
- ASIC will work with financial institutions to further accelerate the payment of outstanding remediation to customers. It will also maintain its enforcement activities and continue to investigate and take action where the public interest warrants it to do so.
- ASIC will also take account of the circumstances in which lenders, acting reasonably, are currently operating when administering the law.
Government
- The Government will establish the Coronavirus SME Guarantee Scheme. Under the Scheme, the Government will guarantee 50 per cent of new loans by eligible lenders to SMEs. This will result in the Government guaranteeing up to $20 billion to support $40 billion in SME loans.
Interesting simulations showing how social distancing measures will affect the spread of the virus and "flatten the curve".