European countries to resume use of AstraZeneca vaccine after EU regulator declares it 'safe and effective'


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Major European countries announce they would resume use of the AstraZeneca vaccine after regulators declared it "safe and effective".

The European Medicines Agency, the EU's medicines regulator, recommended that AstraZeneca's Covid-19 vaccine could be used after completing an investigation into a possible link to blood clots.

France, Italy, Spain and Germany were among the first to announce they would restart the vaccinations

Officials from the EMA said on Thursday they could not definitively rule out a link between blood clot incidents and the vaccine.

But the watchdog said it was clear that the "benefits outweigh the risks" when using the drug, made by AstraZeneca and the University of Oxford.

Italian Prime Minister Mario Draghi was first to react to the decision, announcing Italy would resume administering AztraZeneca vaccines as early as Friday.

“The government's priority remains to vaccinate as many people as possible as quickly as possible," Mr Draghi said.

France soon followed suit. French Prime Minister Jean Castex said he will receive the vaccine on Friday afternoon.

"The AstraZeneca Covid-19 vaccine is effective, as underlined by the European regulator. It only has relatively rare side effects ... it has a positive risk/reward ratio," Mr Castex said.

The German government and regional states aim to restart the vaccinations on Friday, Health Minister Jens Spahn said.

Spain, Portugal and the Netherlands said they will follow suit next week, although Spain said it could exclude certain groups.

Latvia, Lithuania and Cyprus said they, too, would resume AstraZeneca vaccinations.

Ireland said it would make a decision on Friday and Sweden said it would make one next week.

UK Prime Minister Boris Johnson also reaffirmed his faith in the jab and said he would be receiving his on Friday.

The agency will update its guidance to include an explanation about the potential risks of blood clotting on the patient leaflet and in the information for medical workers.

"The committee has come to a clear scientific solution: this is a safe and effective vaccine," agency executive director Emer Cooke said.

"Its benefits of protecting people with Covid-19 outweigh the possible risks. If it were me, I would be vaccinated tomorrow.”

She said that because thousands of people die from Covid-19 each day in Europe, hitting 2,500 on one day last week, the review was given the highest priority.

The review covered 30 cases of unusual blood disorders in five million people who received the shot in the EU.

The agency was under pressure to clear up safety concerns after more than a dozen European countries paused their use of the vaccine after fears were raised. They included Austria, Denmark and the EU's four largest members – Germany, France, Italy and Spain.

"A situation like the one we have seen here is not unexpected," Ms Cooke said. "When you vaccinate millions of people ... rare or serious illnesses will occur."

While other governments previously said they were ready to resume once they received positive guidance, the suspensions might have caused irreparable damage to the reputation of the vaccine.

Questions were raised about the reliability of AstraZeneca's drug when some European countries chose to deny over-65s access to the shot, citing a lack of safety data, although those decisions were reversed.

Europe is embroiled in a row with the pharmaceutical company over delivery of doses and on Wednesday threatened to block exports to countries with higher inoculation rates, such as Britain.

Scientists said the decision to suspend the shot was "going to kill a lot of people".

With millions of Europeans yet to be vaccinated, new variants of the disease are taking hold, leading to a significant increase in infections.

“It's obviously the case that pausing the vaccination is going to kill a lot of people,” said Dr Ilan Kelman, professor of disasters and health at University College London, speaking before the announcement.

“Right now, there is no evidence of a link to blood clots but no evidence does not mean something may change in the future and the politicians have to make a decision.”

The German government defended its decision to suspend use of the vaccine, saying it was based on expert advice. Government spokeswoman Ulrike Demmer said on Wednesday that the move could “strengthen trust” in the vaccines.

“Concerns are taken seriously and examined. And as soon as these concerns are cleared up, a vaccine can be used again without hesitation,” she said.

Earlier on Thursday, the World Health Organisation said the benefits of the AstraZeneca vaccine “far outweigh the risks”.

"In vaccination campaigns, it is routine to signal potential adverse events. This does not necessarily mean that the events are linked to the vaccination," it said.

Dr Hans Kluge, WHO regional director for Europe, said people should "have confidence" in the protection given by vaccines.

In a separate announcement, the UK medicines regulator said a rigorous scientific review had found no evidence that the AstraZeneca vaccine caused blood clots.

Britain’s Medicines and Healthcare products Regulatory Agency said one man had died and four others suffered dangerous blood clotting but there was not enough evidence to link it to the drug.

Europe daily Covid gallery

  • French President Emmanuel Macron speaks to staff working in the intensive care ward of the Poissy Saint-Germain-en-Laye hospital, in Poissy, near Paris. AFP
    French President Emmanuel Macron speaks to staff working in the intensive care ward of the Poissy Saint-Germain-en-Laye hospital, in Poissy, near Paris. AFP
  • A medical worker looks through a window at an additional intensive care unit set up to cope with the Covid-19 pandemic at the Ambroise Pare Clinic in Paris, France. Bloomberg
    A medical worker looks through a window at an additional intensive care unit set up to cope with the Covid-19 pandemic at the Ambroise Pare Clinic in Paris, France. Bloomberg
  • A nurse administers a dose of Pfizer-BioNTech's Covid-19 vaccine at the Beziers vaccination centre at Zinga Zanga village hall, south of France. AFP
    A nurse administers a dose of Pfizer-BioNTech's Covid-19 vaccine at the Beziers vaccination centre at Zinga Zanga village hall, south of France. AFP
  • A patient suffering from Covid-19 is transferred from Lille to Brest hospital in France. Reuters
    A patient suffering from Covid-19 is transferred from Lille to Brest hospital in France. Reuters
  • The Lannion-Trestel hospital, where a new variant of Covid-19 has been detected, in Lannion, France. Reuters
    The Lannion-Trestel hospital, where a new variant of Covid-19 has been detected, in Lannion, France. Reuters
  • Antonio Garcia, 95, dances with a health worker before being vaccinated with the Moderna Covid-19 vaccine at the Nurse Isabel Zendal Hospital in Madrid, Spain. AP Photo
    Antonio Garcia, 95, dances with a health worker before being vaccinated with the Moderna Covid-19 vaccine at the Nurse Isabel Zendal Hospital in Madrid, Spain. AP Photo
  • People receive their day pass to visit shops and cultural institutions after getting a negative Covid-19 rapid test result in Tuebingen, Germany. Reuters
    People receive their day pass to visit shops and cultural institutions after getting a negative Covid-19 rapid test result in Tuebingen, Germany. Reuters
  • People are reflected in a shop window enjoying some sun in Tuebingen, Germany. Reuters
    People are reflected in a shop window enjoying some sun in Tuebingen, Germany. Reuters
  • Health workers transport a training dummy on to an intensive care unit train, operated by Trenitalia SpA, during a media visit at Termini railway station in Rome, Italy. Bloomberg
    Health workers transport a training dummy on to an intensive care unit train, operated by Trenitalia SpA, during a media visit at Termini railway station in Rome, Italy. Bloomberg
  • A cyclist passes a vaccination centre, operated by the Italian Red Cross, closed due to suspension of the use of the AstraZeneca-Oxford vaccine in Rome, Italy. Bloomberg
    A cyclist passes a vaccination centre, operated by the Italian Red Cross, closed due to suspension of the use of the AstraZeneca-Oxford vaccine in Rome, Italy. Bloomberg
  • A health worker administers the Moderna vaccine at a Covid-19 vaccination centre in Rome, Italy. Bloomberg
    A health worker administers the Moderna vaccine at a Covid-19 vaccination centre in Rome, Italy. Bloomberg
  • A health worker draws doses from a vial of the Moderna Covid-19 vaccine in Rome, Italy. Bloomberg
    A health worker draws doses from a vial of the Moderna Covid-19 vaccine in Rome, Italy. Bloomberg
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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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Retirement funds heavily invested in equities at a risky time

Pension funds in growing economies in Asia, Latin America and the Middle East have a sharply higher percentage of assets parked in stocks, just at a time when trade tensions threaten to derail markets.

Retirement money managers in 14 geographies now allocate 40 per cent of their assets to equities, an 8 percentage-point climb over the past five years, according to a Mercer survey released last week that canvassed government, corporate and mandatory pension funds with almost $5 trillion in assets under management. That compares with about 25 per cent for pension funds in Europe.

The escalating trade spat between the US and China has heightened fears that stocks are ripe for a downturn. With tensions mounting and outcomes driven more by politics than economics, the S&P 500 Index will be on course for a “full-scale bear market” without Federal Reserve interest-rate cuts, Citigroup’s global macro strategy team said earlier this week.

The increased allocation to equities by growth-market pension funds has come at the expense of fixed-income investments, which declined 11 percentage points over the five years, according to the survey.

Hong Kong funds have the highest exposure to equities at 66 per cent, although that’s been relatively stable over the period. Japan’s equity allocation jumped 13 percentage points while South Korea’s increased 8 percentage points.

The money managers are also directing a higher portion of their funds to assets outside of their home countries. On average, foreign stocks now account for 49 per cent of respondents’ equity investments, 4 percentage points higher than five years ago, while foreign fixed-income exposure climbed 7 percentage points to 23 per cent. Funds in Japan, South Korea, Malaysia and Taiwan are among those seeking greater diversification in stocks and fixed income.

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