US President Joe Biden says the coronavirus pandemic in the US is over as questions mount over the nation's rising inflation. EPA
US President Joe Biden says the coronavirus pandemic in the US is over as questions mount over the nation's rising inflation. EPA
US President Joe Biden says the coronavirus pandemic in the US is over as questions mount over the nation's rising inflation. EPA
US President Joe Biden says the coronavirus pandemic in the US is over as questions mount over the nation's rising inflation. EPA

Biden declares Covid-19 pandemic over, despite hundreds dying daily in US


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US President Joe Biden says the Covid-19 pandemic in the US is finished, despite the country recording hundreds of deaths a day from the virus.

“The pandemic is over,” Mr Biden said in a wide-ranging interview televised on CBS on Sunday, when he also sought to reassure Americans about high levels of inflation.

“We still have a problem with Covid. We're still doing a lotta work on it. … but the pandemic is over. If you notice, no one's wearing masks,” he said on the sidelines of the Detroit auto show that opened on Wednesday, after a two-year absence.

Coronavirus-related fatalities have fallen significantly over the past year with the increased accessibility of vaccines and other medications.

But almost 400 Americans are dying every day from Covid-19, data from the Centres for Disease and Control and Prevention shows.

Dozens of protesters gathered outside the White House on Monday, calling on Mr Biden's administration to declare long Covid a national emergency, start a public health education campaign on the disease and support people who are suffering from lingering symptoms.

Long Covid can involve constant fatigue, respiratory and heart problems and other symptoms for months or years after an initial Covid-19 infection, the US Centres for Disease Control and Prevention says.

Some who are suffering long Covid also say they deal with ME/CFS [myalgic encephalomyelitis and chronic fatigue syndrome], which brings about extreme fatigue after physical or mental activity.

It is also leading to millions leaving the American workforce.

“We are sick and disabled with ME/CFS and long Covid," ” said Ben HsuBorger, of the ME Action Network, who has ME/CFS.

"But we are here today, putting our bodies on the line, to tell President Biden that the pandemic is not over, that millions of us are being disabled from post-viral disease and we need urgent action from our government."

Long Covid is recognised as a disability by the US Health and Human Services Department, and it is estimated that between 10 to 30 per cent of people infected with coronavirus may have it.

Mr Biden asked Congress for another $22.4 billion to prepare for a possible surge in cases this autumn.

His comments come as the Federal Reserve is geared to raise interest rates yet again, a sign of the central bank's overarching focus on battling inflation after spending much of the previous years providing support to the US economy in response to the pandemic.

The Fed has been taking aggressive action to tackle the nation's highest inflation rate in decades, raising interest rates by three-quarters of a percentage point in back-to-back meetings.

The central bank is expected to raise interest rates by 75 basis points again when it meets this week.

Raising the interest rates would make borrowing costs — such as taking out a mortgage, car loan or business loan — more expensive, which the Fed hopes would slow down the economy.

Fed Chairman Jerome Powell said his goal was to achieve a “soft landing” by slowing down the economy without driving it into a recession.

“I'm telling the American people that we're gonna get control of inflation,” Mr Biden said in the 60 Minutes interview, noting that he has his hopes of a soft landing.

The president has repeatedly pointed to the labour market as an indicator of a strong economy, but those gains could be undone by the Fed's weakening of the economy.

And the central bank's soft-landing goal took a hit last week when a government report showed US inflation over the past year was at 8.3 per cent.

Inflation has taken a toll on Americans, as a majority now say that price increases have caused financial hardship for their households, a new Gallup poll showed.

While lower petrol prices have provided some good news for the president, less than one-third of voters approve his handling of the economy.

Mr Biden's approval rating still hovers around 40 per cent, an indicator of Democrats' chances to retain their Congressional majorities after the midterm elections in November.

Up for re-election in 2024, Mr Biden said it was “much too early” to make a firm determination if he would run again, opening the possibility that he may decide against it.

“Look, my intention as I said to begin with is that I would run again. But it's just an intention. But is it a firm decision that I run again? That remains to be seen,” he told CBS.

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.”

Updated: September 20, 2022, 12:02 AM