Elaine Herzberg, 49, was killed at this location in Tempe, Arizona, after being struck by an Uber self-driving SUV as she crossed the road. Rick Scuteri / Reuters
Elaine Herzberg, 49, was killed at this location in Tempe, Arizona, after being struck by an Uber self-driving SUV as she crossed the road. Rick Scuteri / Reuters

Self-driving Uber SUV kills pedestrian in Arizona



A self-driving Uber SUV struck and killed a pedestrian in suburban Phoenix, Arizona, in what is the first death involving a fully autonomous test vehicle.

The accident could have far-reaching consequences for the new technology.

The fatal crash on Sunday night in Tempe was an incident many in the auto and technology industries were dreading but which some say was inevitable.

Uber immediately suspended all road-testing of such vehicles in the Phoenix area as well as Pittsburgh, San Francisco and Toronto. The testing has been going on for months as automakers and technology companies compete to be the first with cars that can operate on their own.

The Volvo SUV was in self-driving mode with a human back-up driver at the wheel when it hit 49-year-old Elaine Herzberg as she walked her bicycle outside the lines of a pedestrian crossing, police said. She died in hospital.

Uber chief executive Dara Khosrowshahi expressed condolences on Twitter and said the company is working with local law enforcement on the investigation.

The United States' National Transportation Safety Board (NTSB), which makes accident-prevention recommendations, and the National Highway Traffic Safety Administration, which enacts regulations, sent investigators to the scene.

The public's image of the vehicles will be defined by stories like the crash in Tempe, said Bryant Walker Smith, a University of South Carolina law professor who studies autonomous vehicles.

Although the Uber car and its human back-up could be at fault, it may turn out that there was nothing either could have done to stop the crash, he said.

Either way, the fatality could hurt the technology's image and lead to a push for more regulations at the state and federal levels, Prof Smith said.

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Autonomous vehicles with laser, radar and camera sensors and sophisticated computers have been billed as the way to reduce more than 40,000 traffic deaths a year in the US. Ninety-four per cent of crashes are caused by human error, the government says.

Autonomous vehicles don't drive drunk, don't get sleepy and aren't easily distracted. But they do have faults.

"We should be concerned about automated driving," Prof Smith said. "We should be terrified about human driving."

In 2016, the latest year available, more than 6,000 pedestrians were killed by vehicles in the US.

The federal government has voluntary guidelines for companies that want to test autonomous vehicles, leaving much of the regulation up to individual states.

Many, including Michigan and Arizona, have taken a largely hands-off approach, hoping to gain jobs from the new technology, while California and others have taken a harder line.

California is among the states that require manufacturers to report any incidents during the testing phase. As of early March, the state's motor vehicle agency had received 59 such reports.

Governor of Arizona Doug Ducey used light regulations to entice Uber to the state after the company had a shaky roll-out of test cars in San Francisco. Arizona has no reporting requirements.

Hundreds of vehicles with automated driving systems have been on state roads.

Mr Ducey's office expressed sympathy for Ms Herzberg's family and said safety was the top priority.

The crash in Arizona isn't the first involving an Uber autonomous test vehicle. In March 2017, an Uber SUV flipped onto its side, also in Tempe. No serious injuries were reported, and the driver of the other car was cited for a violation.

Ms Herzberg's death is the first involving an autonomous test vehicle, but not the first in a car with some self-driving features. The driver of a Tesla Model S was killed in 2016 when his car, operating on the Autopilot system, crashed into a tractor-trailer in Florida.

The NTSB said that driver inattention was to blame but that design limitations with the system played a major role in the crash.

The US Transportation Department is considering further voluntary guidelines that it says would help to foster innovation. Proposals also are pending in Congress, including one that would stop states from regulating autonomous vehicles, Prof Smith said.

Peter Kurdock, director of regulatory affairs for Advocates for Highway and Auto Safety, said it sent a letter on Monday to US Transportation Secretary Elaine Chao saying it was concerned about a lack of action and oversight by the department while autonomous vehicles are developed. The letter was planned before the crash.

Mr Kurdock said the fatality should serve as a "startling reminder" to members of Congress that they need to "think through all the issues to put together the best bill they can to hopefully prevent more of these tragedies from occurring".

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Director: Venkat Prabhu
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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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Director: Maggie Gyllenhaal

Starring: Olivia Colman, Jessie Buckley, Dakota Johnson

Rating: 4/5


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