The Day at a Glance | July 26 2021

The Top

*Global COVID-19 infections increased to their highest level in two months.

*United States Senators are seeking to conclude negotiations regarding the infrastructure spending package this week.

*Crude oil production in Mexico is close to 1.68 million daily barrels (+0.1% monthly; +4% annual).

*Confidence in the German economy surprised to the downside (Ifo 100.8 Jul. vs 102.5 e.); businesses are concerned about infections and scarcity of inputs.

Economic environment

COVID-19 cases at a global level continue to rise. The virus`s Delta variant continued to accelerate for a fifth consecutive week and daily new infections reached their highest level in two months (525 thousand average daily cases). It`s been proven that the variant is transmitted easier than other variants of the virus – being 50% more infectious – and there is even evidence that proves that vaccinated persons could contract and transmit COVID-19. Nevertheless, protection provided by vaccines continues to be effective against severe infections and hospitalizations; and the most vulnerable part of the population is still the one that has not been vaccinated. According to figures published by the United States government, the Delta variant was detected among 83% of new cases in the country, and people that have not been vaccinated account for 97% of severe cases of infection. Death figures have remained relatively low in the United States, the United Kingdom and Spain – even despite the fact that new cases have significantly increased, vaccination coverage is extensive. In countries where vaccines have not been able to progress at the same pace, such as Brazil, India and Indonesia, death figures have started to increase. Experts believe that the use of masks, social distancing, and other mitigation measures could continue to be necessary to contain the virus`s new wave, even in countries with wide vaccination coverage.