Last checked at 
(Adds Tedros comments, Bank of England policymaker)
* Drugmaker's CEO warns of 'material drop' in effectiveness
* Markets fall on fears of prolonged pandemic, but partly
recover
* Time needed to see if vaccines work against Omicron
* Variant first detected in Netherlands on Nov. 19
* Japan reports first case as new variant spreads
By Ludwig Burger and Emma Thomasson
FRANKFURT/BERLIN, Nov 30 (Reuters) - Financial markets fell
sharply on Tuesday after the head of drugmaker Moderna said
existing COVID-19 vaccines would be less effective against the
new Omicron variant, but they recovered strongly after more
reassuring comments from European officials.
European Medicines Agency (EMA) executive director Emer
Cooke told the European Parliament that existing vaccines will
continue to provide protection.
Andrea Ammon, chair of the European Centre for Disease
prevention and Control (ECDC), said the cases of Omicron so far
confirmed in 10 European Union countries were mild or without
symptoms, although in younger age groups.
Major European stock markets, spooked by fears that vaccine
resistance https://www.reuters.com/world/how-worried-should-we-be-about-omicron-variant-2021-11-27
might trigger restrictions that would choke off a nascent
recovery, were down about 0.5% at around 1500 GMT, having fallen
as much as 1.5% in early trade.
In New York, the Dow Jones Industrial Average and the
S&P 500 respectively opened 0.2% and 0.3% lower.
"There is no world, I think, where (the effectiveness) is
the same level?.?.?. we had with Delta," Moderna CEO Stephane
Bancel told the Financial Times https://www.ft.com/content/27def1b9-b9c8-47a5-8e06-72e432e0838f.
"I think it's going to be a material drop. I just don't know
how much because we need to wait for the data. But all the
scientists I've talked to?.?.?.are like 'this is not going to be
good'."
The University of Oxford said there was no evidence that
current vaccines would not prevent severe disease from Omicron https://www.reuters.com/business/healthcare-pharmaceuticals/how-fast-does-it-spread-scientists-ask-whether-omicron-can-outrun-delta-2021-11-29,
but that it was ready to rapidly update its shot, developed
with AstraZeneca, if necessary.
LAB TESTS
Moderna could not be reached for comment.
Regeneron Pharmaceuticals said its COVID-19 antibody
cocktail and other similar antiviral treatments could be less
effective against the latest variant.
News of Omicron's emergence had wiped roughly $2 trillion
off global stocks on Friday, after it was identified in southern
Africa and announced on Nov. 25.
Yet Dutch authorities said the variant had been detected in
the Netherlands as early as Nov. 19, before two flights arrived
from South Africa that were known to have carried the virus.
Cooke said lab tests for "cross neutralisation" would take
about two weeks. If there were a need to change COVID-19
vaccines, new ones could be approved within three or four
months, she added.
"Vaccination will likely still keep you out of the
hospital," said John Wherry, director of the Penn Institute for
Immunology in Philadelphia.
Moderna and fellow drugmakers BioNTech and Johnson & Johnson
are already working on vaccines that specifically target
Omicron. Moderna has also been testing a higher dose of its
existing booster.
But border closures have already cast a shadow over economic
recovery just as parts of Europe see a fourth wave of infections
as winter sets in.
Bank of England policymaker Catherine Mann added to downbeat
comments from U.S. Fed Chairman Jerome Powell by
saying Omicron could hit consumer confidence, which would not
only weaken the British economy's recovery but could also could
push up inflation at the same time.
Many of the new travel restrictions have focused, to South
Africa's fury, on banning flights to and from southern Africa.
Japan confirmed its first case of the new variant on
Tuesday, in a traveller from Namibia. Australia found that a
person with Omicron had visited a busy shopping centre in Sydney
while probably infectious.
BORDER CONTROLS
Britain and the United States have both pushed their booster
programmes in response to the new variant. London said
international arrivals would have to self-isolate until they get
a negative result in a PCR test.
Greece said vaccination would be compulsory for the
over-60s, the group seen as most vulnerable to COVID-19.
Australia on Monday delayed the reopening of its
international borders by two weeks, less than 36 hours before
foreign students and skilled migrants were to be allowed back.
But in Germany, a current hotspot of the previous
significant variant, Delta, the seven-day average infection rate
fell slightly for the first time in three weeks after new
restrictions to slow transmission.
Sources said chancellor-in-waiting Olaf Scholz , supported
making vaccination against COVID-19 compulsory and backed
barring the unvaccinated from non-essential stores.
Neighbouring Austria, which imposed its fourth full lockdown
last week after a surge in infections, also registered a drop.
But France registered its highest daily infection tally
since April.
And the Dutch health authority said Omicron was already
spreading in the Netherlands, where intensive care beds are
running out and measures including restrictions on hospitality
have yet to take effect.
The curbs on travellers from southern Africa have
highlighted the inequality of vaccine distribution, which may
have given the virus more opportunities to mutate.
WHO head Tedros Adhanom Ghebreyesus said he understood
concerns about Omicron, but added:
"I am equally concerned that several member states are
introducing blunt, blanket measures that are not evidence-based
or effective on their own, and which will only worsen
inequities."
The passenger liner Europa was docking in Cape Town on
Tuesday in what was meant to be the official start of the first
cruise ship season in South Africa's top tourist hub since the
pandemic.
After Omicron was discovered while they were at sea, many
passengers were expected to fly straight home.
(Reporting by Reuters bureaux worldwide; Writing by Himani
Sarkar and Kevin Liffey; Editing by Shri Navratnam, Andrew
Cawthorne, Nick Macfie and Angus MacSwan)
