Coronavirus: What is the risk in extending a lockdown indefinitely?


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Wipe out half of March from the work calendar – and all of April and May. Does June line up as a zombie month as well? How long is the lockdown going to last all over the world, and can anything certain be said about the time horizon of the global fight against Covid-19?

Chancellor Angela Merkel, who has long held the role of “Mutti” – Germany’s mother figure – won plaudits for a clear exposition of the policymaker’s dilemma late last week.

She explained that the infection-rate was currently estimated around 1 in the country. This means that one person with Covid-19 is infecting one other person. If the rate – after loosening social isolation measures – rose to 1.2, the number of people needing treatment would rise by a fifth. Hospitals would get overwhelmed by the summer and the crisis would be measurably worse.

Forget the instant epidemiologists. Omar Ghobash, the Assistant Minister for Public Diplomacy and Culture, has talked of people becoming PhDs from the mythical "WhatsApp University". They are many – and their views are just as likely to be wrong as right.

Hard information is that the infection-rate cannot get ahead of the healthcare systems capacity to cope. Germany can claim some gains in its fight, largely as a result of their testing-based approach.

It has conducted 1.7 million tests and has pushed down the fatality rate among the diagnosed to 2.8 per cent. Its absolute death toll is a quarter of some of the worst-hit European countries, even as it is the most populous country in the region. However, it is worth pointing out that Germany also only records people whose cause of death was Covid-19 – not those with the virus at the time of death.

An emergency food is delivered to a family at a block of flats in London. Foodbanks have become an essential front-line service. EPA
An emergency food is delivered to a family at a block of flats in London. Foodbanks have become an essential front-line service. EPA

Britain is another nation that has been grappling with the pressures of lockdown. Last week, the London government established five tests to come out of the emergency phase. It did so as it announced “at least” another three weeks of the stay-at-home regime.

The announcement was made against the backdrop of the heavy cost of the crisis on the economy. Activity has ground to a halt since mid-March. That it has not been a uniform collapse makes the situation all the more complex, as a report from the Resolution Foundation, an independent British think tank, made clear on Friday.

“A sizeable minority of the workforce is no longer working, leading to falling incomes; welfare claims have surged; job vacancies have collapsed; and the majority of businesses have either closed or face falling turnover,” the report said. “The economic shock has not hit all sectors evenly: consumer spending has fallen much faster for some businesses than others.”

In the update, there was a sliver of hope in a suggestion that after the initial shock, job losses did not appear to be continuing to increase. It said that data showed applications for unemployment assistance had halved from a previous week peak of above 500,000. It also said online searches for jobs, which have a predictive relationship with unemployment rate, had returned to 2019 averages.

In the long-run, the downturn could turn out to be a great leveller, closing the gap between different parts of society. However, enforced work from home has the opposite effect: one survey estimated that while more that 50 per cent of those in the top 25 salary percentile could continue their job remotely, only about 10 percent of the lower percentile could do so.

Absent of any reliable guidance on when the ordeal will end, people have absorbed the idea they are caught up in wartime-style emergency. Not only are there comparisons being made between sheltering at home and the blackouts associated with the Second World War, but there is a mobilisation to assist others at a scale rarely seen since.

Barbour, the waxed cotton coat manufacturer, is one of many textile firms that have used their facilities to produce hospital gowns and other protective clothing for the local hospital. The head of the company, a venerable leader of a family business, described how the staff had enlisted in the effort.

Supporters of the Michigan Conservative Coalition protest against the state's extended stay-at-home order. Reuters
Supporters of the Michigan Conservative Coalition protest against the state's extended stay-at-home order. Reuters
Bad news both undermines the solidarity of wartime societies and creates a perverse incentive to break with self-denying behaviour

Dame Margaret Barbour recounted how the firm had made sleeping bags for the trenches in the First World War and supplied uniforms for submariners in the Second World War. “It’s extremely worthwhile to know we’re playing our part,” she said.

Only a subset of people will be able to play their part. For others, morale is a fragile thing. Security experts fear a rise in civil disobedience. Once incidents start, there could be a snowball effect.

Bad news both undermines the solidarity of wartime societies and creates a perverse incentive to break with self-denying behaviour. In the US, for instance, there was a far-right demonstration asserting a “right" to leave the home, a phenomenon that could proliferate.

So far, the evidence suggests that people are compliant in the face of a great disaster. Pushing into May and June could test that adherence.

Damien McElroy is the London bureau chief of The National

Key products and UAE prices

iPhone XS
With a 5.8-inch screen, it will be an advance version of the iPhone X. It will be dual sim and comes with better battery life, a faster processor and better camera. A new gold colour will be available.
Price: Dh4,229

iPhone XS Max
It is expected to be a grander version of the iPhone X with a 6.5-inch screen; an inch bigger than the screen of the iPhone 8 Plus.
Price: Dh4,649

iPhone XR
A low-cost version of the iPhone X with a 6.1-inch screen, it is expected to attract mass attention. According to industry experts, it is likely to have aluminium edges instead of stainless steel.
Price: Dh3,179

Apple Watch Series 4
More comprehensive health device with edge-to-edge displays that are more than 30 per cent bigger than displays on current models.

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.”

MATCH INFO

Barcelona 4 (Suarez 27', Vidal 32', Dembele 35', Messi 78')

Sevilla 0

Red cards: Ronald Araujo, Ousmane Dembele (Barcelona)

Ammar 808:
Maghreb United

Sofyann Ben Youssef
Glitterbeat 

Profile of Hala Insurance

Date Started: September 2018

Founders: Walid and Karim Dib

Based: Abu Dhabi

Employees: Nine

Amount raised: $1.2 million

Funders: Oman Technology Fund, AB Accelerator, 500 Startups, private backers

 

Key findings of Jenkins report
  • Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

Top goalscorers in Europe

34 goals - Robert Lewandowski (68 points)

34 - Ciro Immobile (68)

31 - Cristiano Ronaldo (62)

28 - Timo Werner (56)

25 - Lionel Messi (50)

*29 - Erling Haaland (50)

23 - Romelu Lukaku (46)

23 - Jamie Vardy (46)

*NOTE: Haaland's goals for Salzburg count for 1.5 points per goal. Goals for Dortmund count for two points per goal.

GIANT REVIEW

Starring: Amir El-Masry, Pierce Brosnan

Director: Athale

Rating: 4/5

Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
RESULTS

Lightweight (female)
Sara El Bakkali bt Anisha Kadka
Bantamweight
Mohammed Adil Al Debi bt Moaz Abdelgawad
Welterweight
Amir Boureslan bt Mahmoud Zanouny
Featherweight
Mohammed Al Katheeri bt Abrorbek Madaminbekov
Super featherweight
Ibrahem Bilal bt Emad Arafa
Middleweight
Ahmed Abdolaziz bt Imad Essassi
Bantamweight (female)
Ilham Bourakkadi bt Milena Martinou
Welterweight
Mohamed Mardi bt Noureddine El Agouti
Middleweight
Nabil Ouach bt Ymad Atrous
Welterweight
Nouredine Samir bt Marlon Ribeiro
Super welterweight
Brad Stanton bt Mohamed El Boukhari

Western Clubs Champions League:

  • Friday, Sep 8 - Abu Dhabi Harlequins v Bahrain
  • Friday, Sep 15 – Kandy v Abu Dhabi Harlequins
  • Friday, Sep 22 – Kandy v Bahrain
Brief scoreline:

Tottenham 1

Son 78'

Manchester City 0

if you go

Getting there

Etihad (Etihad.com), Emirates (emirates.com) and Air France (www.airfrance.com) fly to Paris’ Charles de Gaulle Airport, from Abu Dhabi and Dubai respectively. Return flights cost from around Dh3,785. It takes about 40 minutes to get from Paris to Compiègne by train, with return tickets costing €19. The Glade of the Armistice is 6.6km east of the railway station.

Staying there

On a handsome, tree-lined street near the Chateau’s park, La Parenthèse du Rond Royal (laparenthesedurondroyal.com) offers spacious b&b accommodation with thoughtful design touches. Lots of natural woods, old fashioned travelling trunks as decoration and multi-nozzle showers are part of the look, while there are free bikes for those who want to cycle to the glade. Prices start at €120 a night.

More information: musee-armistice-14-18.fr ; compiegne-tourisme.fr; uk.france.fr

The 12 breakaway clubs

England

Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur

Italy
AC Milan, Inter Milan, Juventus

Spain
Atletico Madrid, Barcelona, Real Madrid

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

UAE currency: the story behind the money in your pockets
match info

Southampton 0

Arsenal 2 (Nketiah 20', Willock 87')

Red card: Jack Stephens (Southampton)

Man of the match: Rob Holding (Arsenal)

COMPANY%20PROFILE
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