Kim Clijsters celebrates after winning against Justine Henin.
Kim Clijsters celebrates after winning against Justine Henin.

Clijsters wins a thriller in Brisbane



The women's Australian Open final will have a lot to live up to if it is to match the dramatic possible dress rehearsal staged yesterday by Kim Clijsters and Justine Henin, the two brilliant Belgians who left a massive void in the game during the time they spent together in premature retirement. Clijsters, who began her comeback five months before Henin launched her own a week ago, just had the edge in a thrilling resumption of a fascinating rivalry to prevail 6-3, 4-6, 7-6 in a dramatic showdown that had almost everything. Brisbane did not know what had hit it. A second-tier venue shunned by the top-ranked women on their way to Melbourne - next week's Sydney tournament has attracted all but Venus Williams from the world's top 10 - the packed Pat Rafter arena found itself hosting two former No 1s competing for a comparatively paltry first prize of Aus$37,000 (Dh125,000). The destiny of that small but significant cheque was in the balance for almost the entire contest. Firstly Clijsters took command and looked a sure-fire champion; then it was Henin's turn to hold what looked an unbreakable grip on what would have been a 42nd career title.

Neither player could press home their dominant situations and it was no surprise when the 2hr 23min contest needed to be decided by a final-set tie-break. Even then it had to be settled twice because Clijsters, arms aloft in a mixture of elation and relief, was initially denied her moment of glory by the most outrageous of line calls on the second of her four match points. Even Hawk-Eye was not required to confirm that Clijsters had hit the cleanest of winners and that the sideline judge had made the most horrendous of errors. Somehow Clijsters composed herself and, after seeing a further match point slip away, she summoned up the strength to accept her fourth, presented to her by Henin's 11th double fault. That desperately tight verdict left Henin lamenting her own failure to accept the two match points that came her way in the 10th game of the final set. "What a match," gasped an exhausted Clijsters as she celebrated her 36th singles title. "We've set the bar pretty high now for the rest of the season," added Clijsters, who earned a prolonged standing ovation when it was announced that she donated her prize money to the local children's hospital.

Henin told the crowd at the presentation ceremony to bear with her as she had forgotten how to make a speech in the time that she has been absent from a sport she left when sitting unrivalled at the top of the rankings in May 2008. She made a good effort though to find the words to describe her disappointment at failing so narrowly to make a triumphant return to competitive action which will resume when she takes another wild card place among the high class Sydney line-up. There is every chance that she will be able to assess the level of her form and fitness against world No 1 Serena Williams in Sydney. The American, holder of the Australian Open, has a bye into the second round of that Medibank International tournament where she will face the winner of the first-round encounter between Henin and Spaniard Maria Jose Martinez Sanchez. Both Henin and Clijsters will then be at the mercy of the draw for the Australian Open. There is a possibility, tantalising but unwelcome of them both coming out in the same section of the draw with one of the Williams sisters who are their main rivals for the Melbourne honour. Let us hope instead for the two re-emerging Belgians and the two powerful Americans to occupy separate quarters. If so, a vintage Open is in the offing. @Email:wjohnson@thenational.ae

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Will the pound fall to parity with the dollar?

The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.

Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.

New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.

“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.

The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.

The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.

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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Game Changer

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The alternatives

• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.

• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.

• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.

2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.

• PayPal is probably the best-known online goods payment method - usually used for eBay purchases -  but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.

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