Myself and a coworker were just discussing what will happen in Australia once we do re-open our international borders.
Australia has enjoyed relatively very little impact from covid due to the very strict lockdown measures that have been employed. My thoughts are that if the vaccine is not effective, Australia could be in a lot of trouble once international borders are open.
There will be a lot of pressure on the government not to have major restrictions if people are vaccinated, but I believe if the virus does start spreading rapidly they would likely resort to the previous approach of lockdown measures.
If this does occur, i believe this could have impacts on labour availability (limited worker travel) in addition to supply restrictions.
Australia and Western Australia is a large global gold producer and many of the operations are fly in fly out operations. Thus far we have avoided large outbreaks on mine sites, however if there were major outbreaks and shutdowns for any prolonged period this could upset a lot of supply dynamics.
I'm interested in general how the ASX could possibly be impacted.
Taiwan is an example of a country that has largely done well in managing covid, but is now having some major issues and how that has impacted their economy.
I raise this as a more general point, and are you guys looking at any other areas of the world that could be more heavilly impacted when there is international reopening, and how does this impact your trade ideas?