After lockdowns were lifted across Europe, there are now fears of a second wave as coronavirus infection rates rapidly increase.
On Tuesday, UK Prime Minister Boris Johnson issued a warning that Europe was on the brink of a second wave of the virus.
It will be six months on Thursday since the World Health Organisation declared a public health emergency.
“Let's be absolutely clear about what's happening in Europe; among some of our European friends, I'm afraid you are starting to see in some places the signs of a second wave of the pandemic,” Mr Johnson said.
"What we have to do is take swift and decisive action where we think that the risks are starting to bubble up again."
His comments came hours after Germany's Robert Koch Institute (RKI) for infectious diseases said it had serious concerns that a second wave was under way and said it was caused by "negligence" of social-distancing rules.
German reported new case numbers up from 500 to 800 per day.
"The new developments in Germany make me very worried," said Professor Lothar Wieler of the RKI.
"The rise has to do with the fact that we have become negligent.”
With 206,000 confirmed cases and just over 9,000 deaths, Germany wanted to avoid a second wave, which would bring back lockdowns after economically crippling restrictions closed many businesses for six weeks in March and April.
Europe's biggest economy withstood the pandemic with far fewer deaths than some large neighbours such as France, owing to widespread testing, a well-equipped healthcare system and good adherence to social distancing.
However, the summer holiday season has prompted fears that tourists returning from destinations experiencing a surge in cases could sow the seeds of a second wave.
A similar picture is emerging in Spain. Germany was the latest country to warn its citizens against travelling to certain regions of Spain.
Berlin’s decision follows an impromptu announcement by the UK at the weekend that 14-day quarantine restrictions will apply to people returning from all parts of Spain after it reported a spike in cases in Catalonia, which includes Barcelona.
Last week, Spain’s new daily case numbers hit almost 1,000 – the highest since early May.
The UK Foreign Office has advised against all but essential travel to Spain, including its southern island regions.
Spain’s Prime Minister Pedro Sanchez has described the UK’s decision as “unbalanced”.
Many Spanish areas have now reimposed rules for masks to be worn everywhere and, in several places, such as Barcelona, have called for people to stay at home.
Case statistics in Spain showed people in their 20s and 30s are a major source of new infections, as the reopening of bars and restaurants has made the transmission danger seem less urgent.
In France, Health Minister Olivier Veran this week implored youngsters to “be more vigilant”, warning that bars across France could be closed once again.
Portugal has also faced a backlash from EU nations after it was forced to impose local lockdowns on the outskirts of its capital, Lisbon, to halt a rise in new cases.
The UK has also placed travel restrictions on the country despite the Portuguese government vehemently arguing against it.
"It is a decision that is neither substantiated nor supported by the facts," Portugal's Ministry of State and Foreign Affairs has said.
Mr Johnson has defended the UK’s decision and said action could be taken against travel to other countries if cases start to rise.
"It is vital that when people are coming back from abroad, if they are coming back from a place where I'm afraid there is another outbreak, they must go into quarantine," he said.
"That's why we have taken the action that we have and we will continue, throughout the summer, to take such action where it is necessary.
"I'm afraid if we do see signs of a second wave in other countries it is really our job, our duty, to act swiftly and decisively to stop travellers coming back from those places seeding the disease here in the UK."
WHO director general Tedros Adhanom Ghebreyesus said on Monday that the pandemic continued to accelerate, with the number of cases worldwide doubling in the past six weeks.
“Almost 16 million cases have now been reported to WHO, and more than 640,000 deaths, and the pandemic continues to accelerate,” he said.
“In the past six weeks, the total number of cases has roughly doubled.”
Last week, the EU announced a €750 billion (Dh3.225 trillion) Covid-19 rescue fund to tackle the economic fallout of the virus.
However, the new flare-up in infections on the continent will now be a reminder of the more immediate health threat.
Estimates of the virus’s reproduction rate from Bank of America economists suggested that it has risen back to around or above 1 in countries including the UK, France, Italy, Spain and Belgium, meaning one infected person will on average spread it to more than one other person.
Worldwide, the number of coronavirus cases now stands at 16.8 million with a death toll of 663,600.
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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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Match info:
Real Betis v Sevilla, 10.45pm (UAE)
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
SHOW COURTS ORDER OF PLAY
Centre Court (4pm UAE/12pm GMT)
Victoria Azarenka (BLR) v Heather Watson (GBR)
Rafael Nadal (ESP x4) v Karen Khachanov (RUS x30)
Andy Murray (GBR x1) v Fabio Fognini (ITA x28)
Court 1 (4pm UAE)
Steve Johnson (USA x26) v Marin Cilic (CRO x7)
Johanna Konta (GBR x6) v Maria Sakkari (GRE)
Naomi Osaka (JPN) v Venus Williams (USA x10)
Court 2 (2.30pm UAE)
Aljaz Bedene (GBR) v Gilles Muller (LUX x16)
Peng Shuai (CHN) v Simona Halep (ROM x2)
Jelena Ostapenko (LAT x13) v Camila Giorgi (ITA)
Jo-Wilfried Tsonga (FRA x12) v Sam Querrey (USA x24)
Court 3 (2.30pm UAE)
Kei Nishikori (JPN x9) v Roberto Bautista Agut (ESP x18)
Carina Witthoeft (GER) v Elina Svitolina (UKR x4)
Court 12 (2.30pm UAE)
Dominika Cibulkova (SVK x8) v Ana Konjuh (CRO x27)
Kevin Anderson (RSA) v Ruben Bemelmans (BEL)
Court 18 (2.30pm UAE)
Caroline Garcia (FRA x21) v Madison Brengle (USA)
Benoit Paire (FRA) v Jerzy Janowicz (POL)
WRESTLING HIGHLIGHTS