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Cash Is King In The Time Of Coronavirus

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It might go down as one of the worst financial market calls ever, akin to BusinessWeek declaring the death of equities on the eve of a booming era for stocks.

Ray Dalio, the billionaire who founded the world’s biggest hedge fund firm, had a message for the billionaires and CEOs who met at the World Economic Forum in Davos, Switzerland, in January.

“Cash is trash,” Dalio said. “Get out of cash. There’s still a lot of money in cash.”

Two months later, cash has become king across global markets and the economy. Dalio’s big Bridgewater Associates macro hedge fund, meanwhile, has plunged by 20% in 2020.

Businesses and investors have rushed to cash as known cases of Covid-19 passed 140,000 globally and the World Health Organization has declared the virus is now a global pandemic.

With global stock markets plunging, investors have sought the safety of cash. U.S. money market funds experienced $87.6 billion of inflows in the seven days prior to Wednesday, according to Lipper. Bank of America reported that last week investors plowed a total of $136.9 billion into cash.

The U.S. banking system entered the coronavirus pandemic in strong shape and is much more resilient than it was during the financial crisis. The Federal Reserve moved on Sunday to further safeguard the financial system by launching a $700 billion quantitative easing program.

Last Thursday, as stock were plummeting, yields on 30-Year U.S. Treasuries were rising and gold fell. Bitcoin, which its proponents have advertised as a safe haven, crashed. Cash was where nervous investors wanted to be. It isn’t just any currency that is king. U.S. dollars are in particular demand as borrowers around the world start to pay a premium to obtain U.S. dollars.

Corporations also moved to make sure they had sufficient cash on hand. Boeing, already dealing with the grounding of its 737 Max aircraft, moved last week to tap a $13.8 billion credit line it had secured about a month ago. Other companies like Hilton, Wynn Restorts and Seaworld Entertainment, which are dealing with a swift deterioration in their business related to Covid-19, also drew on credit lines last week. There have been reports that private equity firms are looking to push their portfolio companies into considering tapping their credit lines as well.

The big U.S. banks that are funding those credit draws, like Citigroup, JPMorgan Chase and Wells Fargo, all moved on Sunday to put their stock repurchasing programs on hold to conserve cash.

States also moved to tap their rainy day funds to help them fund efforts to deal with Covid-19. Washington state, for example, is drawing $200 million from its rainy day fund, mostly to support public health efforts.  

The rush into cash has been intense enough to include physical cash. Over the weekend The New York Times reported that a Bank of America branch in Manhattan for a short period ran out of $100 bills as customers were pulling out tens of thousands of dollars at a time. Bloomberg News reported that a Chase bank branch in the Hamptons had fielded a request for $30,000 in cash that it had to review under its protocols.

Nathan Vardi, Forbes Staff, Hedge Funds & Private Equity

Heroes & Survivors

The Test, Trial And Triumph

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Motlabana Monnakgotla on an assignment for FORBES AFRICA

After 14 days in isolation as a Covid-19 patient, this FORBES AFRICA photojournalist recovered to see the world with new eyes and realize he had the gift of life.

It was around 3PM on June 24 when a nurse called to tell me that I could now officially end my 14-day self-isolation period at home. I had tested Covid-19 positive three weeks before and now was in total disbelief that I had survived this particular physical trial and mental ordeal.

Before testing positive, I was like any other ordinary South African, pursuing my work from home, and as a FORBES AFRICA photojournalist, recording the impact of the coronavirus.

I had thought my face-mask and hand-sanitizer were my armour against the virus, but I guess one can never be too careful.

The first 72 hours of knowing that I had confirmed positive for Covid-19 came with its own set of emotions and experiences. Some friends, and even family, criticized and judged me for carrying the virus, but I also came to know about the ones who cared.

A group of doctors visited me at home to check if I needed hospitalization. They were young and not cloaked head-to-toe in PPE as I had thought. One of them was wearing a camouflage top and sported a few tattoos on his left arm. After his consultation with me, he spoke excitedly about the baby he and his wife were expecting, due later in the year.

There was hope in the world.

I was confident my health was getting better until a nurse called me a few days later. She was the pin that burst my bubble, as she stated things I didn’t want to hear at the time. They were facts, she clinically warned, as she sees people dying daily of the virus.

My mind raced to the previous two nights, when I experienced mild short breaths and thought how the attack could have been worse. I could have died at night all by myself, just trying to breathe. I shed tears as she spoke.

Soon after that, an old friend of mine, who had been shot (and injured) in the spine during an armed robbery attack, called. His timing was perfect. He encouraged me to live on and smile, and told me that the nurse was only doing her job, in advising me to keep to a healthy diet during this time. He brought a smile to my face.

A week later, it was my mother’s birthday. Every year, I visit her with a gift and a cake. This time, all I could do was video-call her; she was both happy and sad not to be able to see me. Two days later, it was my own birthday. I felt low and lonely, but was glad to be alive as my two weeks in self-quarantine was going to be over soon.

“I asked if I would be added on as a statistic to the official recovery numbers, and she laughed.”

I was reluctant to leave the house, but on June 24, the call by a lady who identified herself as “Nurse Nomsa from the Department of Health” liberated me. She was following up on my health status for the previous two weeks and I had ticked all the right boxes. I asked if I would be added on as a statistic to the official recovery numbers, and she laughed. She told me I had recovered, but should continue maintaining a healthy lifestyle.

Today, I can stand outside my home in Soweto and watch the neighbors’ kids play, shout and scream, asking from their yards, “Malume (uncle), are you okay?”

With a gentle laugh and nod, I acknowledge my story of survival to them.

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Sustainable Development In Africa Can Be Amplified By The Media

The COVID-19 pandemic has struck the world like a bolt of lightning exposing the contours of deep inequalities. Media reports have helped reveal the interwoven threads of inequality and health, with poorer people suffering a strikingly disproportionate share of the fallout from the virus, either through infection or loss of livelihoods.

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In 2018, the United Nations Secretary-General Mr António Guterres, launched an SDG Media Compact to leverage their resources to advance the Sustainable Development Goals. By disseminating facts, human stories and solutions, the Compact is a powerful driver for advocacy, action and accountability on the Sustainable Development Goals. Photo- UN

When 17-year-old high school student Darnella Fraizer filmed the last minutes of George Floyd’s life under the knee of police officer Derek Chauvin, she could not have imagined that her footage would reignite the explosive global question of racial inequality and the subsequent clamour for reforms in policing.

This act of filming validates the force of the media globally, we need a similar drive for urgent action in Africa. We need the continent’s media to help ensure the Sustainable Development Goals (SDGs) are achieved and the life of every African afforded the opportunity they deserve.

“Around the world, success in achieving the SDGs will ease global anxieties, provide a better life for women and men and build a firm foundation for stability and peace in all societies, everywhere,” said the UN Deputy Secretary General, Amina Mohammed

Even before the COVID-19 pandemic, a wave of demonstrations from Lebanon to Chile, from Iran to Liberia, was sweeping across countries. This was a clear sign that, for all our progress, something in our globalized society is broken.

The COVID-19 pandemic has struck the world like a bolt of lightning exposing the contours of deep inequalities. Media reports have helped reveal the interwoven threads of inequality and health, with poorer people suffering a strikingly disproportionate share of the fallout from the virus, either through infection or loss of livelihoods.

The global sweep of protests due to years of disenfranchisement and racism has made it clear that the world must change to offer equal treatment to all people.  

Media can do the same for the Sustainable Development Goals (SDGs). Achieving the SDGs, and so improving the lives of millions of Africans, depends heavily on increasing public awareness, and on the focused action and funding that such awareness ignites.

One major shortcoming of development progress is the lack of widespread knowledge about the SDGs and the 2030 Agenda. We must look to the media to push the SDG discourse; what is reported and how it is reported helps shape policy and has implications for the millions of people whose lives are affected. Knowledge is power and if citizens are aware of the issues, they are empowered to help determine the national response.

Traditionally, development experts have failed to explain the relatively new concept of sustainable development to influencers such as educators, politicians, and the media. Doing so is key, so that easily understood narratives are developed to raise public support.

We are already a third of the way towards the 2030 Agenda deadline which 193 UN member states committed to. But at the current pace of change – notwithstanding the global pandemic – Africa is likely to miss out on the time-bound targets in key sectors – including health, education, employment, energy, infrastructure, and the environment. 

Improved public awareness of the SDGs themselves, and of the actions needed and the bodies responsible for such actions is essential. By stepping up to address and explain the global quest for social justice and equality which the SDGs represent, the media can help galvanise civil society, business, international bodies, regional organizations, and individuals.

Pressure from an informed public, pushes policymakers into action, offering hope to millions of poor people.

Development is never far from the media agenda in Africa, so the opportunity to build understanding of sustainability is there. Sustainable development experts must explain why the SDGs are important, and why ‘business as usual’ in development is no longer viable in the face of increasing populations and climate change. Then, news outlets, who would then be able to develop compelling narratives to make the concept understandable by all can help raise the SDG profile, thereby raising public support.

We must “flip the orthodoxy”.

What is reported, how it is reported, and on what channels helps in shaping policy and has implications for the millions of people whose lives are affected.

To this end, the media must be brought into the conversation and be made to understand the role they can play towards the greater good.

The SDGs pledge that “no one will be left behind” and to “endeavour to reach the furthest behind first.” In practice, this means taking explicit action to end extreme poverty, curb inequalities, confront discrimination and fast-track progress for the furthest behind.

The media can shine a spotlight on those left behind, for example by using COVID-19 to examine the wider issue of universal health coverage, the subject of SDG 3.

It also plays a critical role in holding governments to account for their Agenda 2030 commitments. Though these commitments demand that countries have clear reporting and accountability mechanisms, most nations still have no reliable data on their progress towards specific goals. This matters because countries can only unlock financing for the SDGs by disaggregating data to understand where resources are required. In Africa, where national commitments are rarely backed by adequate investment, this is particularly important.

Rapid mobile penetration in Africa offers unparalleled opportunities for content sharing on digital platforms such as Facebook, Twitter, and YouTube. Though lack of affordable internet connections and poor connectivity remain a challenge, mobile technology is a powerful enabler across many sectors.

One in every six people on Earth lives in Africa; its problems are the world’s problems and solving them is the world’s responsibility. If Africa fails to achieve Agenda 2030, the implications will be felt across the planet through conflict, migration, population growth and climate catastrophe.

The media in Africa is a stakeholder in the achievements of the SDGs. Let us support the media and enlist their help in the quest for economic, environmental, and social justice across the world.

Siddharth Chatterjee is the United Nations Resident Coordinator to Kenya. He has served in various parts of the world with UNFPA, UNICEF, UNDP, UNOPS, UN Peacekeeping and the Red Cross Movement. A decorated Special Forces veteran, he is an alumnus of Princeton University. Follow him on twitter-@sidchat1

The views expressed in this article are the author’s own.​​​​​

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From The Singing To The Shooting: ‘Will Never Forget For As Long As I live’

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Oupa Moloto poses in one of the classrooms at Morris Isaacson High School where the protests started; image by Motlabana Monnakgotla

Forty-four years ago on this day, bullets tore through a peaceful school protest in South Africa ending in bloody riots and an uprising that got the world’s attention. Two of the students from the time shudder as they reflect on that cold, dark morning in June.

Forty-four years ago on this day, ‘Soweto Uprising’, South Africa’s famed student protest, led to bullets, fire and tears and an iconic photograph the world came to associate with the country’s brutal apartheid regime.

On June 16, 1976, a day etched in blood in South African history, 13-year-old school student, Hector Pieterson, was shot dead in the police firing that ensued, a moment captured for posterity by photographer Sam Nzima.

Even today, there are those who distinctly remember the coldness of that dark day, when all that the students protested was being taught in Afrikaans, a language they felt was oppressive.

Oupa Moloto, now 63, who was then a student at the Morris Isaacson High School in Soweto where it all started and who was thrown into prison after that horrific day, recalls it vividly. He thought it was going to be a peaceful protest, but it turned out to be a day filled with bullets, police dogs, burning tyres and angry students.  

Moloto had first spoken to FORBES AFRICA in 2016 when he had shared all the details. The memories of that day will never fade away.

“Finding ourselves singing in the streets as young people, challenging the government of the day, it was just excitement. The sadness that is going to remain with us and going to be indelible in our lives is when the police started shooting at young people, that is the one incident that one will never forget for as long as I live,” he tells FORBES AFRICA.

The protests started in Soweto and quickly moved to other townships in South Africa such as Alexandra and Tembisa. Towards the end of the week, the whole country was standing up against the government and everybody got involved; even adults and children in Bulwer, a small town in the KwaZulu-Natal region where Duduzile Dlamini-Ndubane was a student at Pholela High School.

Duduzile Dlamini-Ndubane in KwaZulu-Natal

She says they were told not to go to class by a group of male students on that Wednesday morning, and she was not too sure how they had received the information on the nationwide protest against teaching in the Afrikaans language.

“We made our way to the school grounds, we started singing, some students didn’t even know what was happening but nonetheless stayed with the group. We were then chased out of the school grounds and told to go back home. It was a noisy protest but no police came and there were no injuries,” remembers Dlamini-Ndubane.

Today, she is a professional nurse based in the Mpumalanga province of South Africa and Youth Day to her is a constant reminder that unity is key.

“When we unite behind a great cause, we change not only the current situation, but we make history. Youth need to unite and fight the right causes to change the world for the greater good,” she says.

Back in Soweto, Moloto says the struggle of today is an economic one for young people.

“Students are looking for economic freedom, hence #FeesMustFall; they want to get into the institute of learning without being in debt because they believe education can help them to be part of the economy of the country,” he says.

“When Hector died in 1976, he belonged to no party, he was just a student who died for all political affiliations of the time.”

However, going back to the Soweto Uprising, Moloto disagrees on how the commemoration of it has changed from then to now.

“In 1977, when we were commemorating, it was more of a unity, all political parties would gather at Regina Mundi to celebrate, today, the fight is no longer in a unified fashion. The municipalities and organizations have their own way of commemorating like AZAPO visits the Tsietsi Mashinini grave and the City of Johannesburg visits the Hector Pieterson Museum. That lack of unity is what concerns me. As long as we are not united when we commemorate, this day does not have an impact,” he says.

“When Hector died in 1976, he belonged to no party, he was just a student who died for all political affiliations of the time; we need to unify.”

After that eventful day, the liberation movements benefited because thousands of students joined political parties inside and outside of the country. June 16 was a catalyst in South Africa’s struggle for democracy, and scripted by the students in the nation’s history books.

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