The Oxford University (Astra Zeneca) vaccine has achieved a 90% efficacy on a combination of low and high doses. In the UK, mass testing has proved effective in one hot spot for Covid-19. There is light at the end of the tunnel. Tiered lockdowns offer respite for growth to return quickly in some areas of the country as the vulnerable groups and medical workers receive early vaccinations. The NHS is then planning to start vaccinations for under-50s by the end of January.
There will be excruciating decisions to be made on public sector finances. The focus will need to switch too, to growth opportunities and the micro policies needed to nurture technology companies. There are many lessons to be drawn from 2020: in technology, size has provided a distinct advantage. The stunning outperformance of the US technology industry versus the European counterparts offers a clear warning: more needs to be done in the UK and Europe to ensure start-ups reach a critical threshold, to compete on the global stage. Europe needs to focus on how to stop one of its key industries – motor vehicles – being undercut by the US and China.
Nevertheless, the UK and Europe have not allowed the pandemic to stymie the emergence of new technology companies, that may eventually compete with the US and China leaders. For investors, trawling through the list of candidates may yield better returns, at a time when big tech is being scrutinised in China, and may yet face similar checks and balances in the US. Predictably, the UK remains well ahead of the Eurozone.
Summary
• More good vaccine news, from Oxford University
• The UK is leading in viable start-ups too
• Europe can catch up, but car industry is very exposed
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