Latest analysis: Covid Delta surge in vaccinated societies shows masks are here to stay
As the Delta coronavirus variant causes thousands or tens of thousands of cases a day in countries ranging from Israel to Japan and the US, another nation is dealing with an outbreak of a very different scale.
New Zealand is in a strict lockdown introduced initially because of a single coronavirus case detected last week – an uncompromising response that reflects the country’s elimination strategy for Covid-19.
There have been 63 new cases of Covid-19 recorded in the community in the past 24 hours, taking the total number of active cases to 210, the highest figure since April 2020, as the web of contacts linked to the first person to test positive expands.
If the elimination strategy requires regular lockdowns to control outbreaks, then it may not be sustainable in the long term
Prof Nick Wilson,
University of Otago, New Zealand
Thanks to intensive contact tracing, testing and isolation, experts believe the country will, however, be able to stamp out this current outbreak, even if doing so takes several weeks.
The elimination strategy of the government led by Jacinda Ardern, the prime minister, contrasts with the suppression or mitigation approach used by many other countries, which is based on vaccination and more limited lockdowns. New Zealand has fully vaccinated about 23 per cent of its population, the lowest of the OECD group of developed countries.
Australia and Singapore have also adopted the elimination approach to Covid-19, and plan to continue until high vaccination rates enable a move to a policy of suppression – living with the virus. But will New Zealand follow a similar strategy?
Benefits of the elimination strategy
Elimination has downsides, including a significant effect on New Zealand’s international tourism industry.
Even New Zealanders have found it difficult to return to their home country because of the strict border controls imposed to keep the country Covid-free.
But there have been significant upsides, not least the lowest mortality rate in the 38-member Organisation for Economic Co-operation and Development (OECD), with only 26 deaths recorded.
This is a tiny fraction of the number seen in many nations and is extremely low even after taking into account the country’s modest population of about five million.
At home, New Zealanders have typically enjoyed more freedom than their counterparts in other developed countries since the coronavirus emerged. Concerts and sports matches have taken place without the need for social distancing or masks.
The country’s economy also recovered faster than that of most OECD nations, although continued lockdowns could cause a reversal in economic fortunes.
A study published in May found that after disruption during the lockdown early last year, vital hospital services in the country, particularly cancer treatment, had not been heavily affected by the pandemic, helped by the fact hospitals were not overwhelmed by Covid-19 cases.
Can elimination continue for ever?
Opinions on whether New Zealand can maintain its strategy is divided. Some experts outside the country think that, in the long term, elimination is unrealistic.
Prof Eskild Petersen, an infectious diseases specialist at Aarhus University Hospital in Denmark, suggests that his country’s experience indicates that, with high vaccination rates – about 70 per cent of Denmark’s population is fully vaccinated – it is possible to live with the virus.
"In Denmark we have about 1,000 cases per day. The schools are open. There’s no longer a mask mandate in public spaces. People get infected, but hospitalisations remain low,” he said.
"The strategy of New Zealand – a nationwide lockdown – is very, very expensive compared with our strategy, where we have immunised as many people as possible as fast as possible.”
The relative benefits of an elimination strategy will decline, according to David Taylor, professor emeritus of pharmaceutical and public health policy at University College London.
“In time, if the world is going to normalise – and it will – we will probably get better vaccines produced and better drugs. At that stage, the advantages of trying to run an isolation policy fade away,” he said.
What will New Zealand do?
While New Zealand has indicated that it could begin to open up to the world next year, it has not said that it will abandon its elimination strategy.
Travellers entering the country will be treated according to the risk level of the country they are coming from, with some having to undergo managed isolation and quarantine.
This scheme, in which those arriving have to isolate in particular hotels on arrival, has been key to preventing the coronavirus from entering New Zealand.
Experts in the country said it is not clear how the coronavirus will affect health in societies over the long term.
It may become an endemic virus with a low-level impact, or it could impose a significant continuing disease burden.
Until the outcome becomes clear, they argue, it may be sensible to maintain elimination, a strategy popular with New Zealanders, according to reports.
Are regular lockdowns sustainable?
When more people in New Zealand are vaccinated – currently only about one in five residents are fully jabbed – it may be possible to continue with elimination even when “easing up on border controls” next year, suggested Prof Nick Wilson, of the department of public health at the University of Otago in New Zealand.
“It will mean that outbreaks arising from imported cases become more feasible to control,” he said. “Travellers to New Zealand will also need to be vaccinated, so that will help.
"But if the elimination strategy requires regular lockdowns to control outbreaks, then it may not be sustainable in the long term, given that the public acceptance of lockdowns will decline, as it is starting to in places like New South Wales in Australia.”
As well as preventing illness and death from Covid-19, the elimination strategy stops health services from becoming overburdened during coronavirus outbreaks, Prof Wilson said.
When hospitals are overwhelmed by Covid-19, treatment for serious conditions such as cancer or heart disease can be affected.
Prof Wilson cites modelling, which indicates that, even with high vaccination coverage, New Zealand’s health system could become overloaded.
"Many other measures for Covid-19 control are likely to persist in 2022, for example extensive community testing, extensive wastewater testing and mask use requirements on buses,” he said.
As it vaccinates, New Zealand is continuing with austere control measures and giving itself time to decide on a long-term approach.
After all, as Ms Ardern has noted, once elimination is abandoned, there is no going back.
THE APPRENTICE
Director: Ali Abbasi
Starring: Sebastian Stan, Maria Bakalova, Jeremy Strong
Rating: 3/5
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.”
Spain drain
CONVICTED
Lionel Messi Found guilty in 2016 of of using companies in Belize, Britain, Switzerland and Uruguay to avoid paying €4.1m in taxes on income earned from image rights. Sentenced to 21 months in jail and fined more than €2m. But prison sentence has since been replaced by another fine of €252,000.
Javier Mascherano Accepted one-year suspended sentence in January 2016 for tax fraud after found guilty of failing to pay €1.5m in taxes for 2011 and 2012. Unlike Messi he avoided trial by admitting to tax evasion.
Angel di Maria Argentina and Paris Saint-Germain star Angel di Maria was fined and given a 16-month prison sentence for tax fraud during his time at Real Madrid. But he is unlikely to go to prison as is normal in Spain for first offences for non-violent crimes carrying sentence of less than two years.
SUSPECTED
Cristiano Ronaldo Real Madrid's star striker, accused of evading €14.7m in taxes, appears in court on Monday. Portuguese star faces four charges of fraud through offshore companies.
Jose Mourinho Manchester United manager accused of evading €3.3m in tax in 2011 and 2012, during time in charge at Real Madrid. But Gestifute, which represents him, says he has already settled matter with Spanish tax authorities.
Samuel Eto'o In November 2016, Spanish prosecutors sought jail sentence of 10 years and fines totalling €18m for Cameroonian, accused of failing to pay €3.9m in taxes during time at Barcelona from 2004 to 2009.
Radamel Falcao Colombian striker Falcao suspected of failing to correctly declare €7.4m of income earned from image rights between 2012 and 2013 while at Atletico Madrid. He has since paid €8.2m to Spanish tax authorities, a sum that includes interest on the original amount.
Jorge Mendes Portuguese super-agent put under official investigation last month by Spanish court investigating alleged tax evasion by Falcao, a client of his. He defended himself, telling closed-door hearing he "never" advised players in tax matters.
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
A Long Way Home by Peter Carey
Faber & Faber
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The biog
Name: Sarah Al Senaani
Age: 35
Martial status: Married with three children - aged 8, 6 and 2
Education: Masters of arts in cultural communication and tourism
Favourite movie: Captain Corelli’s Mandolin
Favourite hobbies: Art and horseback ridding
Occupation: Communication specialist at a government agency and the owner of Atelier
Favourite cuisine: Definitely Emirati - harees is my favourite dish
Company%20Profile
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The biog:
Languages: Arabic, Farsi, Hindi, basic Russian
Favourite food: Pizza
Best food on the road: rice
Favourite colour: silver
Favourite bike: Gold Wing, Honda
Favourite biking destination: Canada
Scores
New Zealand 266 for 9 in 50 overs
Pakistan 219 all out in 47.2 overs
New Zealand win by 47 runs
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Zayed Sustainability Prize
The specs: 2018 Ford Mustang GT
Price, base / as tested: Dh204,750 / Dh241,500
Engine: 5.0-litre V8
Gearbox: 10-speed automatic
Power: 460hp @ 7,000rpm
Torque: 569Nm @ 4,600rpm
Fuel economy, combined: 10.3L / 100km
RESULTS
%3Cp%3E%0D%3Cstrong%3E6pm%3A%3C%2Fstrong%3E%20Marfa%20Deira%20%E2%80%93%20Conditions%20(PA)%20Dh80%2C000%20(Dirt)%201%2C200m%0D%3Cbr%3E%3Cstrong%3EWinner%3A%3C%2Fstrong%3E%20Wadheha%2C%20Bernardo%20Pinheiro%20(jockey)%2C%20Majed%20Al%20Jahouri%20(trainer)%0D%3Cbr%3E%3Cstrong%3E6.35pm%3A%20%3C%2Fstrong%3EDubai%20Creek%20%E2%80%93%20Maiden%20(TB)%20Dh82%2C500%20(D)%201%2C400m%0D%3Cbr%3E%3Cstrong%3EWinner%3A%20%3C%2Fstrong%3EBarq%20Al%20Emarat%2C%20Bernardo%20Pinheiro%2C%20Ismail%20Mohammed%0D%3Cbr%3E%3Cstrong%3E7.10pm%3A%20%3C%2Fstrong%3EMina%20Hamriya%20%E2%80%93%20Handicap%20(TB)%20Dh95%2C000%20(D)%201%2C600m%0D%3Cbr%3E%3Cstrong%3EWinner%3A%3C%2Fstrong%3E%20Tahdeed%2C%20Dane%20O%E2%80%99Neill%2C%20Michael%20Costa%0D%3Cbr%3E%3Cstrong%3E7.45pm%3A%3C%2Fstrong%3E%20Mina%20Rashid%20%E2%80%93%20Maiden%20(TB)%20Dh82%2C500%20(D)%201%2C900m%0D%3Cbr%3E%3Cstrong%3EWinner%3A%20%3C%2Fstrong%3ESeyaasi%2C%20Xavier%20Ziani%2C%20Salem%20bin%20Ghadayer%0D%3Cbr%3E%3Cstrong%3E8.20pm%3A%20%3C%2Fstrong%3EAl%20Garhoud%20Sprint%20DP%20World%20%E2%80%93%20Listed%20(TB)%20Dh132%2C500%20(D)%201%2C200m%0D%3Cbr%3E%3Cstrong%3EWinner%3A%3C%2Fstrong%3E%20Mouheeb%2C%20Ray%20Dawson%2C%20Michael%20Costa%0D%3Cbr%3E%3Cstrong%3E8.55pm%3A%3C%2Fstrong%3E%20Mirdiff%20Stakes%20Jebel%20Ali%20Port%20%E2%80%93%20Conditions%20(TB)%20Dh120%2C000%20(D)%201%2C400m%0D%3Cbr%3E%3Cstrong%3EWinner%3A%3C%2Fstrong%3E%20Seyouff%2C%20Antonio%20Fresu%2C%20Michael%20Costa%0D%3Cbr%3E%3Cstrong%3E9.30pm%3A%3C%2Fstrong%3E%20Jebel%20Ali%20Free%20Zone%20%E2%80%93%20Handicap%20(TB)%20Dh95%2C000%20(D)%202%2C000m%0D%3Cbr%3E%3Cstrong%3EWinner%3A%20%3C%2Fstrong%3EAjuste%20Fiscal%2C%20Jose%20da%20Silva%2C%20Julio%20Olascoaga%3C%2Fp%3E%0A
Confirmed%20bouts%20(more%20to%20be%20added)
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GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
BUNDESLIGA FIXTURES
Saturday, May 16 (kick-offs UAE time)
Borussia Dortmund v Schalke (4.30pm)
RB Leipzig v Freiburg (4.30pm)
Hoffenheim v Hertha Berlin (4.30pm)
Fortuna Dusseldorf v Paderborn (4.30pm)
Augsburg v Wolfsburg (4.30pm)
Eintracht Frankfurt v Borussia Monchengladbach (7.30pm)
Sunday, May 17
Cologne v Mainz (4.30pm),
Union Berlin v Bayern Munich (7pm)
Monday, May 18
Werder Bremen v Bayer Leverkusen (9.30pm)
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Globalization and its Discontents Revisited
Joseph E. Stiglitz
W. W. Norton & Company
The specs: 2018 Ducati SuperSport S
Price, base / as tested: Dh74,900 / Dh85,900
Engine: 937cc
Transmission: Six-speed gearbox
Power: 110hp @ 9,000rpm
Torque: 93Nm @ 6,500rpm
Fuel economy, combined: 5.9L / 100km
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital