The South Korean President Lee Myung-bak, right, walks with the Chinese President Hu Jintao upon their arrival for a joint news conference at the presidential Blue House in Seoul yesterday.
The South Korean President Lee Myung-bak, right, walks with the Chinese President Hu Jintao upon their arrival for a joint news conference at the presidential Blue House in Seoul yesterday.

North Korea halts reactor disablement



SEOUL // North Korea said today it has stopped disabling its nuclear reactor and will consider restoring the plutonium-producing facility in anger over Washington's failure to remove it from the US list of terror sponsors. The North's statement marks the emergence of the biggest hurdle yet to the communist nation's denuclearization process and is expected to escalate tension in the nuclear talks involving China, Japan, the two Koreas, the US and Russia. Pyongyang's foreign ministry said it suspended the disablement work at the reactor and other facilities at its Yongbyon nuclear complex as of August 14 because the US did not keep its promise to delist Pyongyang as a terror sponsor under last year's deal. The countries concerned were notified of the suspension, the ministry said in a statement carried by the official Korean Central News Agency. The ministry said it was forced to take the step "as countermeasures in a situation where the United States violated the agreement." It also said the country will "consider restoring the Yongbyon facilities to their original states" but did not say when it would do so. Removal from the terror list is one of key concessions offered to the North in exchange for shutting down and disabling the reactor under a landmark six-nation deal reached last year. The US announced in June that it would delist the North as a terror sponsor after Pyongyang turned in a long-delayed list of its nuclear programmes. The two sides have been negotiating how to verify the nuclear declaration, with Washington saying it would remove the North from the terror list only after Pyongyang agrees to a verification plan. The North's statement came shortly after Chinese President Hu Jintao left South Korea after summit talks with the president, Lee Myung-bak, that included discussions on the North's nuclear issue. South Korea's foreign ministry was not immediately available for comment. The presidential Blue House referred the queries to the foreign ministry.

*AP

The specs

Engine: Dual 180kW and 300kW front and rear motors

Power: 480kW

Torque: 850Nm

Transmission: Single-speed automatic

Price: From Dh359,900 ($98,000)

On sale: Now

RESULTS

6.30pm Al Maktoum Challenge Round-2 – Group 1 (PA) $49,000 (Dirt) 1,900m

Winner RB Frynchh Dude, Pat Cosgrave (jockey), Helal Al Alawi (trainer)

7.05pm Al Bastakiya Trial – Conditions (TB) $50,000 (D) 1,900m

Winner El Patriota, Vagner Leal, Antonio Cintra

7.40pm Zabeel Turf – Listed (TB) $88,000 (Turf) 2,000m

Winner Ya Hayati, Mickael Barzalona, Charlie Appleby

8.15pm Cape Verdi – Group 2 (TB) $163,000 (T) 1,600m

Winner Althiqa, James Doyle, Charlie Appleby

8.50pm UAE 1000 Guineas – Listed (TB) $125,000 (D) 1,600m

Winner Soft Whisper, Frankie Dettori, Saeed bin Suroor

9.25pm Handicap (TB) $68,000 (T) 1,600m

Winner Bedouin’s Story, Frankie Dettori, Saeed bin Suroor

The specs

Price, base / as tested Dh960,000
Engine 3.9L twin-turbo V8 
Transmission Seven-speed dual-clutch automatic
Power 661hp @8,000rpm
Torque 760Nm @ 3,000rpm
Fuel economy, combined 11.4L / 100k

Cases of coronavirus in the GCC as of March 15

Saudi Arabia – 103 infected, 0 dead, 1 recovered

UAE – 86 infected, 0 dead, 23 recovered

Bahrain – 210 infected, 0 dead, 44 recovered

Kuwait – 104 infected, 0 dead, 5 recovered

Qatar – 337 infected, 0 dead, 4 recovered

Oman – 19 infected, 0 dead, 9 recovered

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.”

KEY HIGHLIGHTS

Healthcare spending to double to $2.2 trillion rupees

Launched a 641billion-rupee federal health scheme

Allotted 200 billion rupees for the recapitalisation of state-run banks

Around 1.75 trillion rupees allotted for privatisation and stake sales in state-owned assets

A State of Passion

Directors: Carol Mansour and Muna Khalidi

Stars: Dr Ghassan Abu-Sittah

Rating: 4/5

Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh132,000 (Countryman)
2025 Fifa Club World Cup groups

Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, Leon.

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.