Dr Rochelle Walensky, Director of the US Centres for Disease Control and Prevention, left, and Dr. Anthony Fauci, top US infectious disease expert, testify before a US Senate committee hearing to examine the federal response to Covid-19 and new emerging variants. AP
Dr Rochelle Walensky, Director of the US Centres for Disease Control and Prevention, left, and Dr. Anthony Fauci, top US infectious disease expert, testify before a US Senate committee hearing to examine the federal response to Covid-19 and new emerging variants. AP
Dr Rochelle Walensky, Director of the US Centres for Disease Control and Prevention, left, and Dr. Anthony Fauci, top US infectious disease expert, testify before a US Senate committee hearing to examine the federal response to Covid-19 and new emerging variants. AP
Dr Rochelle Walensky, Director of the US Centres for Disease Control and Prevention, left, and Dr. Anthony Fauci, top US infectious disease expert, testify before a US Senate committee hearing to exam

Biden's pandemic team blasted over communications 'mess'


Kyle Fitzgerald
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Live updates: follow the latest news on Omicron

Top members of President Joe Biden's pandemic response team were taken to task on Tuesday as senators grilled them about how their messaging has "confused" the American people while the country battles record Covid-19 cases and hospitalisations, long testing queues and ever-changing isolation and quarantine recommendations.

Conflicting guidance on issues such as boosters and testing have left the public baffled about how best to protect themselves, said Republican Senator Richard Burr, the ranking member of the Senate Committee on Health, Education, Labour and Pension.

The administration's booster rollout and the recent update to the quarantine guidance, which saw isolation slashed to five days in some circumstances, were a “mess” and a “disaster,” Mr Burr said in a hearing attended by top infectious disease expert Dr Anthony Fauci and Dr Rochelle Walensky, director of the Centres for Disease Control and Prevention (CDC).

“I’m not questioning the science,” he said, “but I’m questioning your communication strategies. It’s no wonder the American people are confused.”

The Omicron variant has torn through the US since it was first detected in December, leading to a resurgence in the demand for testing.

The Biden administration first promised that the costs of taking a test at home would be reimbursed by insurance companies, but dealing with America's for-profit health bureaucracy can be a time-consuming and tedious task.

Then Mr Biden last month said his administration was buying 500,000 at-home tests to be distributed for free.

But it could still be weeks before those tests are delivered, and Americans have been forced to wait in hours-long queues to pick up tests being distributed by states and cities.

In trying to clarify quarantine guidance, Dr Walensky said those who come into close contact with positive Covid-19 cases should quarantine for five days, adding that they should take a Covid test on the fifth day and continue to wear masks.

The seven-day moving average on new daily Covid-19 cases currently stands are more than 680,000, according to CDC data.

On Tuesday the US reported a record 145,900 hospitalisations because of the virus, placing additional strain on health care workers.

Dr Walensky warned that additional seasonal infections could place an even greater strain on hospitals.

"These stresses likely will be in addition to the ongoing delta variant infections and a rising burden of illness caused by other respiratory pathogens, such as influenza, which have begun circulating at greater frequencies," she said.

Omicron accounted for 98 per cent of all coronavirus cases in the US in the week ending January 8, she added.

Dr Fauci said booster shots are a key tool in protecting against severe symptoms of the Omicron variant, adding that the additional jab strengthens waning immunity from the initial vaccination regimens.

He also addressed the urgent need for the development of a universal coronavirus vaccine.

"Looking ahead in the context of the inevitable continual emergence of new variants, the importance of developing a pan-coronavirus vaccine ... becomes even more apparent," he said.

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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Updated: January 11, 2022, 6:48 PM