The Weekly Scan November 29, 2021

Welcome to the Weekly Scan. Here’s what we’re following for the week of November 29, 2021.

Variant of concern. News of Omicron, the variant that could potentially evade the Covid-19 vaccine, caused major U.S. indexes to fall between 2.0% and 3.5% on Friday—due to concerns that it may  interrupt the current global economic recovery. The market decreases were the largest in 2021. Numerous nations, including the U.S., announced they would shut their borders to southern African travelers.   Scientists are attempting to understand the seriousness of the new virus—which reportedly has 30 different mutations—making it potentially more transmissible than the Delta variation. 

• The takeaway. Omicron, known by the scientific name B1.1.529, was reportedly first identified in Botswana and South Africa. The latter nation leads the world for its virus sequencing, and some scientific experts have expressed frustration that South Africa and its neighbors are being punished with flight restrictions for their transparency. Pfizer and Moderna, two of the leading pharmaceutical companies that developed a two-dose injection to fight the first variations of Covid-19, have reportedly said it may take three months or longer to develop a booster effective against Omicron. 

NYT, Reuters, and Wall Street Journal

The holiday season is officially here. On Black Friday, in-store retail traffic increased 48% compared to 2020, but it was still 28% below 2019’s level. The in-store traffic in 2021 is reportedly expected to lag  by 10% to 15% in comparison to the 2019 holiday shopping season. Meanwhile, online Black Friday sales fell below expectations, totaling  $8.9 billion, compared to last year’s $9 billion. On Cyber Monday (November 29, 2021), online sales are predicted to amount to somewhere between $10.2 billion and $11.3 billion. 

• The takeaway: Some analysts have attributed low foot traffic to sales starting earlier—a trend that began last year as retailers reopened during the pandemic, and before the widespread vaccine rollout. This year, in-store holiday shopping is expected to increase from last year, as shoppers try to avoid shipping delays caused by supply-chain snags. 

Bloomberg

Jack breaks his crown. Twitter’s co-founder and chief executive officer Jack Dorsey will step down from his executive position at the social media company, according to CNBC. He will be replaced by Twitter’s chief technology officer Prag Agrawal, effective immediately. Dorsey co-founded Twitter in 2006, but was fired from his role as CEO in 2008. In 2015, Dorsey returned to his position as CEO, but faced another removal attempt in 2020, by the activist investor Elliott Management. Dorsey managed to retain the job after some employees rallied behind him. In a recent statement, Dorsey cited that “the company is ready to move on from its founders” as his reason for leaving. 

• The takeaway: Twitter’s next CEO will reportedly need to manage a set of aggressive goals set forth by the company. Twitter is looking to reach 315 million monetizable daily users and double its revenue by the end of 2023. The new executive will also have to confront increasing criticism from politicians who reportedly say the platform stifles conservative voices. Twitter blocked former President Trump from the platform for his role in inciting the January 6, 2021 riot at the U.S. Capitol. In response, Trump has sued Twitter, as well as Facebook, and YouTube for censorship. Dorsey is also the CEO of payments company Square.

CNBC, New York Times, AP News

 Here’s what we covered in last week’s Scan: 

• Pharmacy chain CVS will shutter 900 stores over the next three years.
• General Motors (GM) announced it will form a partnership with seven companies to design and build new semiconductors.
• Oprah Winfrey, Reese Witherspoon, and Whitney Wolfe Heard have reportedly combined forces to acquire a majority stake in Spanx.

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