The rising infection rate from the Omicron variant of Covid-19 has caused much concern in major organisation. Travel bans, cancelled parties and virtual festive gatherings – firms in the financial district of London are ripping up their Christmas plans in the wake of the new variant.
UBS is the latest bank to change course, curbing travel for its European dealmakers. The Swiss bank has told staff in Europe to avoid business trips as a precaution as various European governments impose fresh restrictions. Switzerland now requires visitors from more than 20 countries to quarantine for 10 days upon arrival, while the UK, the US and other countries have tightened rules for arriving passengers.
The move comes as more firms are rethinking return to office, travel and Christmas plans for their staff after the discovery of the Omicron variant. The rise of infection has created a new sense of caution in the build-up to the festive period. Among large companies, JPMorgan has cancelled its annual Christmas carols concert, which typically sees hundreds of its dealmakers and clients gather in its elaborate Great Hall at its Victoria Embankment offices.
HSBC told UK employees that they should consider scaling down their festive celebrations, saying they should “take business continuity precautions, such as conducting them virtually or split-team attendance. And the London Bullion Market Association has called off the sector’s annual flagship dinner due to growing concern over Omicron.
Meanwhile, asset manager Jupiter has cancelled its staff Christmas party even before Omicron was discovered and is now offering a socially distanced lunch instead. “We were extremely sympathetic to concern that a large-scale party so close to Christmas should be avoided to minimise the risk of Covid infection as employees prepare to gather with family and friends to celebrate the holiday,” a spokesperson said.
AllianzGI has also postponed any staff festivities until at least the new year and told employees to avoid social gatherings, a spokesperson said. Beyond the financial district, restaurant and bar owners have told the BBC that Christmas parties were cancelled at an escalating rate over the weekend of 27 November, a day after the discovery of the Omicron variant was announced.
Prime Minister Boris Johnson has resisted imposing restrictions on socialising, but has rolled out new requirements for travellers returning to the UK to take a PCR test and self-isolate until they receive a negative result. He said that the government was “not changing the guidance on how you should be living your life” and that events such as Christmas parties should go ahead.
But senior dealmakers at banks, have said that travelling to client meetings have become increasingly difficult in recent weeks. One senior banker said he had had to quarantine and had taken five lateral flow tests just to be “let out into the wild” to meet clients.
Banks have hauled in a record $117bn in fees so far in 2021, according to data provider Dealogic, but the vast majority of deal making has been conducted virtually, as Covid-19 restricted travel and in-person meetings. However, since the UK government loosened guidelines in September, bankers have been travelling again to reconnect with clients and secure new business.
In September, senior bankers had said that meeting clients in person was “critical” and competitive pressures were forcing dealmakers to get back on the road. But travel also allowed a break from the relentless back-to-back Zoom calls with clients and colleagues. A head of European M & A at a large US investment bank said bankers were desperate to make it to the festive period for a break from the frantic deal-flow. “I’ve been in this business for a long, long time and never seen it this busy,” he said. “We are all exhausted.” (The writer is our foreign correspondent based in the UK)
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