Secretary of State Rex Tillerson confirmed the decision in a phone call to his Russian counterpart. Arron P Bernstein / Reuters
Secretary of State Rex Tillerson confirmed the decision in a phone call to his Russian counterpart. Arron P Bernstein / Reuters

US orders Russia to close consulate but seeks 'to improve relations'



In a tit for tat move after Russia’s expulsion of 755 US staffers, the Trump administration ordered Moscow to close its oldest and most established consulate in San Francisco and two annexes in Washington and New York.

Giving Russia a 48-hour window to fulfill the order, the U.S. State Department announced on Thursday: “In the spirit of parity invoked by the Russians, we are requiring the Russian Government to close its Consulate General in San Francisco, a chancery annex in Washington, D.C., and a consular annex in New York City."

The decision, according to a senior U.S. official, was communicated to Russia in a phone call on Monday from Secretary of State Rex Tillerson to his counterpart Sergey Lavrov.

“The call was very professional, and they agreed to work to improve the relations” said the US official.

In addition, John Heffern - acting Assistant for European affairs at the State Department - met with Russia’s Deputy Chief of Mission Dmitry Zhirnov and relayed the decision.

The U.S. retaliatory move waited until American diplomats and staffers left Russia this week, following Vladimir Putin’s order on July 30 to shrink the presence at US embassy by 755 staffers.

“The US has fully implemented the decision by the Government of the Russian Federation to reduce the size of our mission in Russia,” the US statement said.

While many of 755 US staffers had to expelled and return to the State Department, Washington is not asking to expel Russian staffers at the consulate and the annexes that were closed.

“We are not expelling Russian diplomats at this time, they can be reassigned”, the US official said.

If anything Washington is hoping the announcement would mark the end of the cycle of retaliatory moves between the Russia and the United States. Mr Tillerson and Mr Lavrov will likely meet in New York in September according to the State Department.

“Our hope with this move in direction of parity, is that we can avoid further retaliatory actions by both sides... the goal to find a way to get to better relations,” said the US official.

Donald Trump warned of sharp decline in US-Russia relations. “Our relationship with Russia is at an all-time and very dangerous low. You can thank Congress, the same people that can't even give us HCare! [Healthcare]" he tweeted four weeks ago.

The tweet followed new U.S. legislation that increases sanctions on Russia overwhelmingly approved by the lawmakers and signed by the President.

Electoral College Victory

Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate. 

 

Popular Vote Tally

The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.

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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.”

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

Citadel: Honey Bunny first episode

Directors: Raj & DK

Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon

Rating: 4/5