Dr Anthony Fauci, director of the National Institute for Allergy and Infectious Diseases, testifies during a Senate Health, Education, Labour and Pensions Committee hearing on Capitol Hill in Washington, US, on June 30, 2020. Reuters
Dr Anthony Fauci, director of the National Institute for Allergy and Infectious Diseases, testifies during a Senate Health, Education, Labour and Pensions Committee hearing on Capitol Hill in Washington, US, on June 30, 2020. Reuters
Dr Anthony Fauci, director of the National Institute for Allergy and Infectious Diseases, testifies during a Senate Health, Education, Labour and Pensions Committee hearing on Capitol Hill in Washington, US, on June 30, 2020. Reuters
Dr Anthony Fauci, director of the National Institute for Allergy and Infectious Diseases, testifies during a Senate Health, Education, Labour and Pensions Committee hearing on Capitol Hill in Washingt

US could hit 100,000 new virus cases a day, Fauci says


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A top US health expert warned Congress on Tuesday that new coronavirus cases could more than double to 100,000 a day if authorities and the public failed to take steps to suppress the pandemic.

Infectious disease expert Dr Anthony Fauci, a leading member of President Donald Trump’s coronavirus task force, said the US was going in the “wrong direction” on the pandemic.

Dr Fauci demanded that Americans wear masks and avoid crowds after lax behaviour propelled new outbreaks.

“I’m very concerned and I’m not satisfied with what’s going on, because we’re going in the wrong direction,” he testified to a Senate panel.

Alarming surges in southern hotspots Texas and Florida are driving the daily national total of new cases to more than 40,000 a day, and they need to be tamped down quickly to avoid dangerous rises elsewhere, Dr Fauci said.

“Clearly we are not in total control right now,” he said. “I would not be surprised if it goes up to 100,000 a day if this does not turn around.”

The dire message reinforced concerns about America’s ability to rein in a pandemic that has claimed about 126,000 lives in the country.

The US, the world’s hardest-hit nation with more than 2.6 million infections, was left off the list of 15 countries to which the EU will open its borders from July 1.

Washington is trying to open schools safely in the coming months.

Dr Fauci said he believed some states were “skipping over some of the checkpoints” that assured safe reopenings of business and public spaces.

And he offered a blunt message to the nation’s young adults who have engaged in “dangerous” behaviour, including congregating in bars, not wearing masks and failing to follow social-distancing guidelines.

“I think we need to emphasise the responsibility that we have, both as individuals and as part of a societal effort to end the epidemic, that we all have to play a part in that,” Dr Fauci said.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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