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Suez canal snarled with giant ship stuck in top trade artery

A GIANT container ship ran aground in the Suez Canal, blocking off one of the world’s busiest maritime trade routes that’s vital for the movement of everything from oil to consumer goods.

The hull of Ever Given, one of the biggest container ships in operation, became wedged lengthways across the canal early Tuesday in Egypt, causing a pileup of at least 100 vessels seeking to transit between the Red Sea and Mediterranean, according to ship brokers and mapping data compiled by Bloomberg.

Ever Given “was grounded accidentally after deviating from its course due to suspected sudden strong wind,” Taiwan-based Evergreen Line, the time charterer of the vessel, said in an emailed response to questions.

Evergreen has urged the vessel’s owners to work with “relevant authorities including the canal management bureau to help the ship get out of trouble as soon as possible,” according to an emailed statement from the firm. Japan’s Shoei Kisen Kaisha Ltd., among those listed as the ship’s owner, declined to comment.

“The salvage operation with tugs is under way, and hopefully the vessel will be freed soon, but it could last days” as checks are made on the damage to the ship, said Ralph Leszczynski, head of research at shipbroker Banchero Costa & Co.

Ever Given was en route from China to Rotterdam. The crew are safe and accounted for, and there have been no reports of injuries or pollution, according to the ship’s manager Bernhard Schulte Shipmanagement. Ship tracking data showed the vessel was still in the same position as of about 2 a.m. Wednesday in Cairo. A spokesperson for the Suez Canal Authority couldn’t be reached for comment outside usual office hours.

PILEUP
The blockage has led to a big pileup in other ships in the area. About 42 vessels either in the northbound convoy or arriving to transit the canal northbound are now waiting for the grounded vessel to be re-floated, Leth Agencies, one of the top providers of Suez Canal crossing services, said in a notice to clients. About 64 vessels traveling southbound were also affected. Oil prices briefly rose on news of the disruption before pulling back.

At 400 meters in length, the vessel that was built in Japan about three years ago is longer than the Eiffel Tower laid on its side. Shipping companies have been turning to mega-sized vessels to help improve economies of scale, while some key routes — including the Suez Canal — being widened and deepened over the years to accommodate them.

“It could also take some time to move the vessel given that it would be loaded almost full,” said Park Moo-Hyun, an analyst at Hana Financial Investment Co. in Seoul. “This is going to delay a lot of the goods on one of the world’s busiest trade lanes.”

The 193-kilometer-long (120 miles) Suez Canal, which opened in 1869, is among the most trafficked waterways in the world, utilized by oil tankers shipping crude from the Middle East to Europe and North America. About 12% of global trade, almost 10% of seaborne oil trade and 8% of global LNG passes through the canal.

The canal has been the site of occasional groundings that have halted shipping. Tugboats managed to get the OOCL Japan unstuck a few hours after it ran aground in October 2017, while the containership Maersk Shams was briefly stuck a year earlier. In one of the most serious delays, the canal was closed for three days in 2004 after an oil tanker, Tropic Brilliance, got lodged. The ship was finally freed after 25,000 tons of oil was pumped out.

Any prolonged disruption would mean ships need to reroute, which would likely drive up freight costs, said Chun Hyungjin, research fellow at Korea Maritime Institute. Ships could bypass it by going around Africa via the Cape of Good Hope, but that would add about two extra weeks to the voyage from Asia to Europe, leading to significant extra costs and disrupting all schedules, said Banchero’s Mr. Leszczynski.

The shipping industry has had a tumultuous year since the COVID-19 pandemic began roiling global trade in 2020. As countries closed borders to try keep the virus under control, exports from China surged, leading to a dearth of containers and sending maritime rates soaring. The pandemic also exacerbated labor abuse in the industry, with thousands of seafarers stuck on vessels beyond the expiration of their contracts and past the requirements of globally accepted safety standards. — Bloomberg

Brazil sees record COVID-19 deaths as pot-bangers jeer Bolsonaro speech

RIO DE JANEIRO — Brazil suffered a record 3,251 coronavirus disease 2019 (COVID-19) deaths on Tuesday, as pot-banging protests erupted across the country during an address by President Jair Bolsonaro in which he defended his pandemic response and pledged to ramp up vaccinations.

The new record number of daily deaths underlines the scale of Brazil’s outbreak, which is spiraling out of control thanks to a lumpy vaccine rollout and a messy patchwork of public health restrictions that are pushing the country’s hospitals to the breaking point.

Mr. Bolsonaro is under mounting pressure to control the outbreak, after repeatedly playing down the virus, sowing doubts about vaccines and fighting state and local lockdown measures.

In his brief televised address, Mr. Bolsonaro said his government had never failed to adopt measures to combat the pandemic and said he would make 2021 the year of vaccinations.

However, in cities across Brazil, loud pot-banging protests echoed through the night as many voiced their anger at his handling of an outbreak that has killed nearly 300,000 people.

Earlier on Tuesday, Mr. Bolsonaro swore in cardiologist Marcelo Queiroga as his fourth health minister since the pandemic began, in a closed ceremony. Tapped by Mr. Bolsonaro on Mar. 15, Mr. Queiroga replaced Eduardo Pazuello, an active-duty army general who has overseen most of the pandemic response.

It remains to be seen what path Mr. Queiroga will chart as health minister. Mr. Pazuello’s two predecessors both left government after clashing with Mr. Bolsonaro’s views on COVID-19.

Mr. Bolsonaro has gained international notoriety for his efforts to fight lockdowns, dismiss mask mandates and advocate unproven remedies such as hydroxychloroquine.

On Tuesday, he received a fresh setback when Brazil’s Supreme Court refused to hear his appeal against several states’ measures restricting economic activity to slow contagion, according to a document seen by Reuters.

Mr. Bolsonaro also received a setback when the country’s Supreme Court ruled his fierce political rival, former leftist President Luiz Inacio Lula da Silva, had not been treated impartially in graft probes that led to his convictions. The decision appears certain to ensure the far-right former army captain will face Mr. Lula in next year’s presidential vote in which they are both expected to run.

VACCINE WOES
Despite Mr. Bolsonaro’s newfound focus on vaccines, the reality remains challenging for Brazil.

The country’s federally funded Fiocruz Institute, which is producing the AstraZeneca vaccine that serves as the cornerstone of the government’s vaccine rollout, said on Tuesday it would only deliver 18.8 million shots in April, down from an initial forecast of 30 million.

Only 2.6% of Brazilian adults have so far received two vaccine doses, according to a Fiocruz survey, while 7.6% of the population, or 12.1 million people, have received one shot.

The World Health Organization’s (WHO) regional director for the Americas, Carissa Etienne, said on Tuesday the virus is surging “dangerously” across Brazil, and urged all Brazilians to adopt preventive measures to stop the spread. — Reuters

Kings, Dyip rookie picks look to make it work with mother teams

FILIPINO-FOREIGN PLAYERS JOSHUA MUNZON AND BRIAN ENRIQUEZ (inset) were the top picks in the first and second rounds of Terrafirma Dyip and Barangay Ginebra San Miguel Kings, respectively, in the recent PBA Rookie Draft. — PBA IMAGES

SELECTED by the Barangay Ginebra San Miguel Kings and Terrafirma Dyip, respectively, in the recent Philippine Basketball Association (PBA) rookie draft, Filipino foreign players Brian Enriquez and Joshua Munzon begin the process of finding their place and making it work with their mother teams.

Part of a record 65 rookie hopefuls picked in the draft proceedings, both incoming PBA freshmen shared that they are happy with where they landed at and excited to take on the challenge that lies ahead.

Mr. Enriquez, 25, was the first pick in the second round of the virtual rookie draft on March 14 by reigning Philippine Cup champion Barangay Ginebra.

In selecting the six-foot-three Filipino-American player, Kings coach Tim Cone said they were thinking of getting a player who could be a defensive wing stopper, similar to what former Barangay Ginebra stalwart Sol Mercado brought to the table.

The multi-titled coach said they liked what they saw in Mr. Enriquez when he got to work out with the team and grabbed at the opportunity to pick him 13th overall.

“We like his size and especially his strength plus we feel he’ll be a great teammate and chemistry guy,” Mr. Cone was quoted as saying by pba.ph of their rookie pick.

Mr. Enriquez, who was supposed to play for the University of the East as a one-and-done until the pandemic derailed his plans, appreciates the confidence given to him by the Kings and vowed to work and earn his keep in an already-loaded squad.

“I had a feeling that after my workout that there was a chance I could fall to them. Just wasn’t sure what round it would be,” said Mr. Enriquez, who played collegiate ball at William Woods University in the United States.  

“I just feel blessed and grateful for the opportunity given to me by Barangay Ginebra. I’m looking forward to learning from the team and the Philippine basketball culture,” he added.

Mr. Enriquez is the second player taken by the Kings in the draft after big man Ken Holmqvist who went 12th overall.

MUNZON
Meanwhile, Mr. Munzon, 26, was the top overall pick in this year’s rookie draft.

In Terrafirma, the 6’4” do-it-all player, who is also the country’s number one-ranked 3×3 baller, will be one of the key cogs bannering the regrouping Dyip.

Prior to the draft, the Dyip traded away league scoring champion CJ Perez.

Mr. Munzon said he is looking forward to beginning his PBA journey with Terrafirma and immediately went to work, joining the team in its cluster individual workouts a day after being drafted.

“Everything is positive so far. I’m looking forward to expanding my relationship with everybody,” Mr. Munzon said to the official website.

“I’m excited and grateful for the opportunity to be the top pick. I’m thankful my basketball journey led me up to this point. I’m ready to come and get to work,” he added.

Apart from Mr. Munzon, Terrafirma tapped big man James Laput as the eighth overall pick.

Both players were recently signed by the team to three-year contracts. — Michael Angelo S. Murillo

ONE representing Asia through The Apprentice

By Michael Angelo S. Murillo, Senior Reporter

THE Apprentice: ONE Championship Edition had its Asian television premiere last week, expanding the sports media property’s roster of offerings and ONE’s push to represent the region in more ways than one.

A 13-episode fare, the show chronicles ONE’s search for a new member of its front office, working under the group’s chairman and CEO Chatri Sityodtong in their Singapore headquarters.

Sixteen candidates from different parts of the world, including the Philippines, and various backgrounds are vying for the $250,000 job offer.

Makers of the show, which was filmed entirely in the city-state amid the pandemic, touts this latest iteration of the popular TV program as the hardest to date as it not only tests the participants’ skills in the boardroom, but it also measures them up physically through challenges done with top athletes of the promotion.

ONE said making the show was very challenging given the existing conditions in these trying times, but it made the group all the more determined to see the project completed.

It added that the program goes beyond just providing reality television entertainment and filling up a position in its group.

The show, ONE said, is also geared towards celebrating Asia, what it is about and what it offers in various aspects vis-à-vis the rest of the world.

“If you look historically in terms of content, Hollywood has been exporting content, the West has been exporting content into the East… But yet there are four and a half billion [people] in Asia, 60 percent of the World’s population is here. There is massive underrepresentation of Asia, of Asian heroes, of Asian business leaders, of Asian sports heroes, of content of any kind,” said Mr. Sityodtong in a recent panel discussion with global media.

“It’s generally about celebrating the best of humanity. This is what ONE Championship is about. That’s why our hashtag is #WeAreONE because we want to unite humanity through our values, heroes and stories but at the same time as an Asian leader. I do take it very seriously as I want to show the world the greatness of Asia, that we have the power and the ability to create incredible content that inspires the world and genuinely unites humanity,” he added.

To see their vision for the show through, ONE made sure it tapped like-minded global broadcast partners.

“The Apprentice: ONE Championship Edition will be the most watched Apprentice in history full stop because of our global distribution, because of our Asian distribution, because of our incredible broadcast partners. The US will have its version, UK will have its version, Australia will have its version,” he said.

Adding, “This is a seminal moment for the media industry for Asia and I am so proud to be part of the Singapore media industry representing the little red dot on the global stage of business on the global stage of the entertainment business. This will change history.”

ALVAREZ ESCAPES ELIMINATION
Meanwhile, on the premiere of the show, Philippine representative Lara Pearl Alvarez escaped elimination.

Ms. Alvarez, who hails from Baguio, was one of the first three candidates to be sent to The Boardroom, alongside fellow Team Conquest members Alvin Ang (Singapore) and Nazee Sajedi (United States).

The Filipino candidate admitted that she could have done better in their first business challenge — building a “ONE at Home” essentials kit, a marketing plan, and a product prototype to be pitched to the hosts.

Ms. Alvarez said her decision to shy away from the background may have been her undoing, something she promised to change moving forward.

Luckily, the challenge was a non-elimination one.

Apart from Ms. Alvarez, also representing the Philippines in the show, is former mixed martial arts champion and corporate executive Louie Sangalang.

The Apprentice: ONE Championship Edition is broadcast every Thursdays at 8:40 p.m. on AXN Asia and every Mondays at 9 p.m. over One Sports.

Manila Chooks TM tries to enter Doha Masters tourney via backdoor

THE REVAMPED MANILA CHOOKS TM SQUAD will try to enter the 2021 FIBA 3X3 World Tour Doha Masters by way of the qualifiers against tough opponents.

THE revamped Manila Chooks TM squad will try to enter the 2021 International Basketball Federation (FIBA) 3X3 World Tour Doha Masters by way of the backdoor against tough opponents.

The team from the Philippines, now composed of 5-on-5 veteran Chico Lanete, scorer Mac Tallo, post-creator Zachy Huang and stretch big Dennis Santos, vies for a spot in the main draw of the tournament in the qualifiers at the Al Gharafa Sports Complex in Qatar.

Manila Chooks TM will slug it out against Austria’s Graz and home team Doha for a spot in Pool D of the Masters happening on March 26 to 27.

Graz is headlined by Austria’s no. 4-ranked player Matthias Linortner and no. 11 Moritz Lanegger. Completing the squad are unranked players Fabricio Vay and Filip Krämer.

Qatar’s no. 14 player Babacar Dieng, meanwhile, leads the home team together with no. 11 Faisal Abuissa as well as Abdelrahman Yehia Abdelhaleem and Souley Ndour.

The Manila team admits height will be a challenge for it, but it is looking to compensate for it through “speed and shooting” and a go-getting mind-set.

The squad that survives the qualifiers advance to the tournament proper and join NY Harlem and Princeton, both of the United States, in Pool D. The two teams are no. 4 and 5, respectively, in the world club rankings.

Manila Chooks TM will play Graz on March 26 at 7:30 p.m. (Manila time), and Doha at 8:05 p.m. Pool games will also be played on the same day.

The matches of Manila Chooks TM will be shown over the Facebook pages of FIBA 3×3 and Chooks-to-Go Pilipinas.

Liman (Serbia), Piran (Slovenia) and Sakiai Gulbele (Lithuania) play in Pool A while Pool B has Riga (Latvia), Amsterdam (Netherlands) and Edmonton (Canada). Pool C has UB (Serbia), Novi Sad (Serbia) and Lusail (Qatar).

The FIBA 3X3 World Tour Doha Masters is a maximum-level (level 11) event. The champion will be awarded $40,000. — Michael Angelo S. Murillo

Online summit seeks to explore esports opportunities

EXPLORING various opportunities in esports and connecting various stakeholders in Asia are at the center of an online summit happening next month.

KK Fund, a venture capital fund investing in seed stage Internet and mobile start-ups across Southeast Asia, will be holding the eSports X Business Asia Summit (EXB Asia Summit) on April 21-22.

The two-day summit, the organizers said, will focus on the business aspect of esports in partnership with Thai start-up Infofed and global media agency dentsu X.

It, too, is geared towards accelerating growth of the Asian esports ecosystem by virtually bringing all stakeholders together to examine the latest industry trends, provide education for endemic and non-endemic brands, network with industry peers, and unlock brand sponsorship opportunities.

“Asia has the world’s largest audience of esports players and fans and has generated nearly half of all global esports revenue thus far. Though there is significant growth potential, the esports industry in the region is still young. The summit is therefore a concerted effort to kick-start better collaboration, communication and education to further develop the ecosystem,” said Koichi Saito, founder and general partner of KK Fund, in a release.

Expected to participate in the summit are major game publishers, game developers, media and broadcasting platforms, esports associations, government agencies, esport businesses and tech brands.

They include renowned industry names such as Tencent Games, SEGA, Garena, ONE Esports and Razer; and government agencies such as the Thailand E-Sports Federation, the Singapore Esports Association and the Japan eSports Union.

For the event, guest speakers are to talk about topics such as in-game monetization, esports sponsorships and mapping brand positioning with professional esports players. They will also examine case studies on building an esports ecosystem, and pioneering esports sponsorships through gaming gear collaborations.

The speakers include Haruki Satomi (chairman and CEO of SEGA Holdings Co.), Andrew Manugian (head of gaming operations at Tencent Thailand), Carlos Alimurung (CEO of ONE Esports), Lance Quek (founder of Gamerforce Ventures), Chandra Firmanto (founder of Indogen Capital), Mr. Saito, Yoshi Nakano (partnership director of dentsu Tokyo), and Om Kaosa-ard, COO of Infofed.

While the summit is a two-day event, it also features single-day activities, including the start-up pitching session happening on April 21.

In the pitching session, five selected esports start-ups will have a chance to pitch their businesses to corporates, venture capitalists and government bodies across Asia to secure potential investment.

EXB Asia Summit will be broadcast through DealRoom and EXB Asia’s social media channels.

Registration for the sessions, which is free of charge, runs until April 2, 2021. For more information, check the EXB Asia Summit website: https://www.exbasia.com/. — Michael Angelo S. Murillo

Brandon Ingram, NO Pelicans too much for depleted Lakers

BRANDON Ingram scored 36 points and Zion Williamson added 27 as the host New Orleans (NO) Pelicans routed the depleted Los Angeles (LA) Lakers (128-111) on Tuesday night.

Nickeil Alexander-Walker scored 18 points, Kira Lewis, Jr. had 16, Jaxson Hayes had 15, and Steven Adams scored 12 as the Pelicans ended a seven-game losing streak against the Lakers.

New Orleans won its second straight game despite the absence of point guard Lonzo Ball (hip flexor strain) for both games.

Lakers was playing its second consecutive full game without LeBron James, who suffered a high ankle sprain in a loss to Atlanta on Saturday. The Lakers lost at Phoenix (111-94) on Sunday.

Former Pelicans forward Anthony Davis has missed the last month because of a calf strain and is expected to be re-evaluated on Friday by the Lakers.

Montrezl Harrell scored 18 points, Kyle Kuzma had 16 points and 10 rebounds, Markieff Morris scored 16, Dennis Schroder had 15, Wesley Matthews 14, and Alex Caruso gained 10 for LA, which shot 42.4%.

Ingram had seven points and an assist, and the Pelicans made their first six shots of the third quarter to take a 72-55 lead.

Hayes converted a three-point play, Lewis made back-to-back 3-pointers, and Alexander-Walker added a 3-pointer to extend the lead to 96-66. — Reuters

Canada ready to take first steps on long road to World Cup

BAYERN Munich’s Alphonso Davies is the standout talent in a Canada squad that takes its first steps on the long road to the 2022 Qatar World Cup this week with CONCACAF region qualifying games against Bermuda and Cayman Islands.

Assembling a team during the COVID-19 pandemic may have proven a bigger challenge than the one 73rd-ranked Canada will face on the pitch on Thursday when they play 169th-ranked Bermuda and on Sunday against 193rd-ranked Cayman Islands.

Both matches will be played in empty stadiums in Florida due to COVID-19 travel restrictions and health and safety protocols in Canada.

In securing the services of Davies and other European-based players, head coach John Herdman said Soccer Canada had to work through a maze of red tape, addressing the concerns of various countries, federations and clubs.

“This has been an interesting period of time for anyone in the sport, but we have got all the players we need for this particular game,” Herdman said during a media conference call.

“The reality is with Canada Soccer it has been a real team effort, to understand quarantine rules to even bring players into the USA.”

To jump start the campaign Canada will look to a mix of experience and youth led by Davies, who will be back in the national team shirt for the first time since helping Bayern Munich to the Champions League and Bundesliga titles last season.

Seven players will have an opportunity to earn their first cap while at the other end of the spectrum, Besiktas midfielder Atiba Hutchinson has made 84 international appearances.

The opening round of CONCACAF World Cup qualifying will see 30 countries divided into six groups of five with only the winner of each advancing.

Joining Canada, Bermuda and Cayman Islands in Group B are Aruba and Suriname.

The winner of Group B will face the Group E winner in a two-legged second round tie on June 12 and 15.

The three second-round winners move to the final round where they join the United States, Mexico, Jamaica, Costa Rica, and Honduras in the fight for three World Cup spots. The fourth-placed team moves into an inter-confederation playoff.

“The reality check now every game is a difference maker,” said Herdman. “It is an opportunity for this group of men to do something special for their country that hasn’t been done for a long time.” Canada has only once before, in 1986, qualified for a World Cup. — Reuters

Expectant father Jon Rahm prepared to leave Masters for son’s birth

SPANIARD Jon Rahm said on Tuesday he would not miss the birth of his first child and was prepared to walk away from the Masters at a moment’s notice to ensure he would be by his wife’s side for the special occasion.

World number three Rahm said his wife was due to give birth between April 10 and 12, a three-day stretch that includes the final two rounds of the year’s first major at Augusta National Golf Club.

“All I can say is if anybody’s thinking of betting on me on the Masters, maybe think about it twice because there’s a chance I have to just turn around and leave that week,” Rahm said from Austin Country Club ahead of this week’s WGC-Dell Technologies Match Play event.

Rahm has five PGA Tour victories, but has yet to triumph at one of golf’s four major tournaments. His best showing at the Masters came in 2018 when he finished fourth.

The 26-year-old Spaniard said his wife and son were doing well and that he was unsure how much he could rely on the due date.

“I hear all kinds of stories, right, from people saying, oh, first one is always late, two people say, well, no, mine were early, this and that,” said Rahm.

“So I don’t know. I’m excited about it. I’m trying to take it one day at a time. And I can tell you I’m ready to go at any moment’s notice.”

Rahm will face Ryan Palmer, former British Open champion Shane Lowry and Sebastian Munoz in round-robin play this week in Austin, where the winner of each group advances to a 16-player knockout phase.

“If I have to leave this week, hopefully, it doesn’t come when I’m in the final and I just have to leave after nine holes. I mean, that would be unfortunate for the winner, but it is what it is,” said Rahm.

“Being a father is much more important than any golf event would ever be, so that’s my head right now.” — Reuters

Canned tuna brands making ‘glacial progress’ in tackling modern slavery

BANGKOK — The world’s top canned tuna firms are making “glacial progress” combating modern slavery in their supply chains, an advocacy group said on Tuesday, warning that the coronavirus pandemic had left fishers in Asia-Pacific more vulnerable to exploitation.

Of the 35 biggest tuna companies and supermarkets surveyed by the UK-based Business and Human Rights Resource Centre (BHRRC), 29 had made public pledges on workers’ human rights.

But most firms had yet to take any action to stop modern slavery by implementing human rights policies—with oversight of recruitment almost non-existent, the report said.

Six companies had policies to protect migrant workers but just one had evidence of having taken direct action, it added.

“The global fishing sector is rife with allegations of abuse—human trafficking, debt bondage … and even murder,” BHRRC’s Pacific representative Amy Sinclair told the Thomson Reuters Foundation.

“But despite continued high demand for canned tuna, our research found there had been glacial progress on action by leading brands when it comes to workers trapped in modern slavery in the Pacific,” she added.

The companies and supermarkets—representing more than 80 of the world’s largest canned tuna brands—procure much of their tuna from the Pacific region, which supplies about 60% of the world’s tuna, according to the World Bank.

The coronavirus disease 2019 (COVID-19) pandemic has led to increased demand for tuna, as consumers worldwide have stocked-up on the pantry staple, according to the United Nations Food and Agriculture Organization.

As international borders have closed to curb the pandemic, modern slavery risks have heightened, with many fishers trapped at sea for longer periods—exposing them to heightened exploitation and abuse, the BHRRC report said.

While nearly half of respondents recognized that the pandemic exacerbated modern slavery risks, only a quarter had taken any action in response, it added.

The Seafood Ethics Action Alliance and the Seafood Task Force, a group of seafood buyers and companies, were not immediately available for comment.

BHRRC said only one company—US supermarket chain Kroger Co.—disclosed forced labor in its supply chain, suggesting the others either do not have adequate practices in place to weed it out, or are not disclosing it when found.

“COVID-19 has exacerbated inequality and human misery in the seafood supply chains,” said Art Prapha, a senior advisor for anti-poverty charity Oxfam.

“Investors, workers, and activists have raised these concerns well before the pandemic, yet many companies continue to ignore these critical calls.” — Nanchanok Wongsamuth/Thomson Reuters Foundation

EU to extend vaccine export curbs to cover Britain, backloading — source

BRUSSELS — The European Commission on Wednesday will extend European Union (EU) powers to potentially block coronavirus disease 2019 (COVID-19) vaccine exports to Britain and other areas with much higher vaccination rates, and to cover instances of companies backloading contracted supplies, EU officials said.

The regulation is aimed at making vaccine trade reciprocal and proportional so that other vaccine-making countries sell to Europe and the EU does not export much more than it imports, one EU official said.

With no numerical targets, the change is unlikely to trigger mass export bans of EU-made vaccines, the official with insight into the announcement said on Wednesday.

“I just really, really don’t see that happening because we have our international obligations and we want to keep supply chains going and the global system moving and flowing,” the official said.

The regulation will be the basis for the EU’s 27 governments to decide whether to block vaccine exports or not.

“In practice, all this is, is a piece of paper that says please take this stuff into consideration when you’re looking at approving export authorizations,” the official said.

The move, which EU officials said could hit AstraZeneca and Johnson & Johnson, is designed to avoid even limited delivery shortfalls to a region whose inoculation program has been beset by delays and supply issues.

Shipments abroad could also be withheld if vaccine-producing countries, such as Britain and the United States, disallow exports to the EU, officials said, confirming comments by commission head Ursula von der Leyen last week.

As London-Brussels tensions rose on Monday over a possible export ban, Britain demanded that EU authorities allow the delivery of vaccines it has ordered.

On Tuesday, Prime Minister Boris Johnson said Britain did not believe in imposing vaccine blockades. “I’m encouraged by some of the things I’ve heard from the continent in the same sense,” he told a news briefing.

Johnson & Johnson has announced delays in its second-quarter supplies to the EU, which a second EU official said could lead to consequences under the Commission amendment covering companies backloading contracted quarterly deliveries.

All vaccine makers could be affected, added the second official, with direct knowledge of the Commission decision. Some on the EU’s list of countries exempt from any vaccine export monitoring, like Israel, are likely to be removed, because of their very high inoculation rates, the first official said.

“It doesn’t mean they won’t get vaccines. It just means they’re not automatically exempted anymore,” the first EU official said.

‘WE DON’T WANT THE SAME DELAYS IN Q2’
The EU this month used an export control mechanism, set up at the end of January, to block an AstraZeneca vaccine shipment to Australia.

That mechanism can be activated only if companies do not meet contracted quarterly delivery targets. The block followed AstraZeneca’s announcement of steep cuts in first-quarter deliveries to the EU.

With the amendments to be adopted on Wednesday, the EU will be able to block exports to cover companies that respect their quarterly contracts but backload supplies to the end of the period, said the official, who asked to remain anonymous.

Johnson & Johnson, which has committed to delivering 55 million doses to the EU between April and June, plans to start deliveries in the second half of April.

The company told EU officials production issues might make it difficult to meet its second-quarter target, but it was striving to do so.

Moderna and Pfizer/BioNTech also had delays in vaccine deliveries to the EU, though they are set to meet their overall first-quarter targets. “We don’t want the same delays to happen in the second quarter,” said the second official. — Francesco Guarascio/Reuters

Wealth managers still in crypto ‘education mode,’ Fidelity says

LONDON — Most wealth managers and financial advisors are still in “education mode” on cryptocurrencies but demand for the emerging asset class among larger investors has grown, the boss of Fidelity Investments’ institutional arm said on Tuesday.

While some advisors and investment firms managing the fortunes of wealthy people have grown “sophisticated” and “comfortable” with cryptocurrencies, most are still getting to grips with the technology, Mike Durbin said.

“They know what they are doing, and more importantly their end investor base also knows what they are doing—but the vast majority are still in the education mode,” he added in an interview at Reuters Digital Assets Week.

Mr. Durbin’s comments give a snapshot of interest in cryptocurrencies at Boston-based Fidelity, whose $9.8 trillion in customer assets as of Dec. 31 make it one of the world’s biggest investment managers, amid heightened interest in digital assets.

BOOMING BITCOIN
Bitcoin powered to an all-time high of nearly $62,000 this month, the latest in a meteoric rise fueled by bigger US investors.

The world’s biggest cryptocurrency has soared eight-fold in the last year, sparking wider interest in digital assets from investors seeking yield in a world of ultra-low interest rates.

Mainstream companies and financial firms from Tesla Inc. to Bank of New York Mellon Corp. have embraced the emerging asset, sparking predictions that bitcoin and other cryptocurrencies will become a regular part of investment portfolios.

In 2018, Fidelity became one of the first mainstream investment firms to embrace cryptocurrencies, setting up a unit that offers cryptocurrency custody and other services for financial firms and corporations.

Interest in bitcoin and other digital assets would likely grow as “alternative investments”—which often includes real estate, private equity and hedge funds—increase in popularity, Mr. Durbin said.

“I think that the growth rate of bitcoin or digital assets will follow in that wake of broader alternative investments.

“There’s still work to be done there to help advisors understand portfolio construction with these kinds of expressions.” — Tom Wilson and Anna Irrera/Reuters

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