FILE PHOTO: An anti Brexit protester adjusts his EU flags outside the Houses of Parliament in London, Britain October 19, 2017.  REUTERS/Peter Nicholls/File Photo
EU flags outside the Houses of Parliament in London. Upcoming elections may take spotlight off negative aspects of UK-EU divorce. Peter Nicholls/Reuters

Busy EU may prove a boon for UK's Brexit hopes



The European Union says it has plenty on its to-do list besides managing Brexit.

That could prove to be good news for the UK prime minister Theresa May as she seeks a smooth UK departure from the bloc in March 2019.

The European Parliament, which has veto power over any Brexit agreement, is gearing up for elections in mid-2019 as a slew of other big-ticket items starts to fill the EU agenda. These initiatives, meant to show the bloc’s vigour, will give policymakers campaign talking points, shift the spotlight from the UK’s withdrawal and make it politically easier for the assembly to approve any deal on the terms of Brexit.

“Even before the European elections, an important road map with key decisions is underway,” said Maria Joao Rodrigues, a Portuguese vice-chair of the 28-nation Parliament’s Socialist group, in her office at the assembly’s headquarters in Strasbourg, France. “While the Brexit negotiations are taking place, the EU is moving ahead with its road map and these two things will go in parallel. This means we’ll have a big-bang moment in 2019.”

The EU’s work programme puts a common thread through a wide variety of policy initiatives and creates a counterpoint to Brexit, ensuring the UK’s scheduled departure can be viewed in a broader, more positive context for the bloc rather than as an unprecedented wound.

That could be crucial when the time comes for the 751-seat European Parliament to give its verdict on any accord between Brussels and London on the divorce settlement, including the multibillion-euro bill, the rights of EU citizens in Britain and the future border between Northern Ireland and Ireland.

“There’s an indirect link between any Brexit agreement and the upcoming EU Parliament elections,” said Janis Emmanouilidis, the director of studies at the European Policy Centre in Brussels. “People will be looking at the atmosphere in 2019 to see whether the bloc of 27 member countries is progressing. If so, that would play into the hands of pro-European forces and mean any Brexit deal wouldn’t be viewed in isolation.”

The assembly has so far set a hard line for the Brexit negotiators, raising the prospect of an agreement with messy compromises being gunned down and of the UK crashing out of the bloc. The risk of an eventual veto has grown since a power-sharing accord in the EU Parliament between the Christian Democrats and the Socialists, the two-biggest factions, broke down earlier this year and made the legislature more unpredictable.

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Frankfurt winning race for post-Brexit banking spoils

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“We can only convince people in an election campaign for our pro-European approach if we have an idea for the future,” Manfred Weber, German leader of the assembly’s Christian Democrats, said in Strasbourg. “We need a visionary aspect.”

The EU is emerging from years of fire-fighting undertaken to prevent national indebtedness from shattering the euro zone, inflows of refugees from breaking apart the continent’s passport-free travel zone and centrifugal forces of the kind that fuelled Brexit from putting the bloc’s very existence into question.

In that context, the EU is lining up high-profile initiatives that include a summit in November to address social inequalities across Europe; draft legislation in December to beef up the euro-zone rescue fund and create a common finance chief for the single currency; and a proposal next May on a new multi-annual spending programme for the bloc after Brexit.

Meanwhile, the EU is also pushing for deeper defence-policy cooperation, a breakthrough in talks over a revamp of common asylum rules and progress toward European free-trade accords with Latin American and Pacific countries.

This whole agenda “will create a new momentum for European integration”, Ms Rodrigues said. “Our main concern is not about Brexit. Our main concern is to make sure the European Union, as a big undertaking in world history, moves to the next stage to cope with the new challenges.”

The Brexit negotiations are hung up on the divorce settlement, delaying the start of parallel talks on the the UK’s post-Brexit trade ties with the EU. The bloc’s leaders aim to give the green light in December for that second phase, a step that would bring a final Brexit deal more into focus.

Ms Rodrigues said the EU Parliament would act in a “principled” way rather than an ideological one when scrutinising any Brexit accord. She signalled the assembly will insist on respect for EU fundamental principles while being practical.

“In the end, the Parliament always has a pragmatic side - that’s for sure,” she said.

How to keep control of your emotions

If your investment decisions are being dictated by emotions such as fear, greed, hope, frustration and boredom, it is time for a rethink, Chris Beauchamp, chief market analyst at online trading platform IG, says.

Greed

Greedy investors trade beyond their means, open more positions than usual or hold on to positions too long to chase an even greater gain. “All too often, they incur a heavy loss and may even wipe out the profit already made.

Tip: Ignore the short-term hype, noise and froth and invest for the long-term plan, based on sound fundamentals.

Fear

The risk of making a loss can cloud decision-making. “This can cause you to close out a position too early, or miss out on a profit by being too afraid to open a trade,” he says.

Tip: Start with a plan, and stick to it. For added security, consider placing stops to reduce any losses and limits to lock in profits.

Hope

While all traders need hope to start trading, excessive optimism can backfire. Too many traders hold on to a losing trade because they believe that it will reverse its trend and become profitable.

Tip: Set realistic goals. Be happy with what you have earned, rather than frustrated by what you could have earned.

Frustration

Traders can get annoyed when the markets have behaved in unexpected ways and generates losses or fails to deliver anticipated gains.

Tip: Accept in advance that asset price movements are completely unpredictable and you will suffer losses at some point. These can be managed, say, by attaching stops and limits to your trades.

Boredom

Too many investors buy and sell because they want something to do. They are trading as entertainment, rather than in the hope of making money. As well as making bad decisions, the extra dealing charges eat into returns.

Tip: Open an online demo account and get your thrills without risking real money.

If you go...

Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.

Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50

ROUTE TO TITLE

Round 1: Beat Leolia Jeanjean 6-1, 6-2
Round 2: Beat Naomi Osaka 7-6, 1-6, 7-5
Round 3: Beat Marie Bouzkova 6-4, 6-2
Round 4: Beat Anastasia Potapova 6-0, 6-0
Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2

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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Quick pearls of wisdom

Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”

Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.” 

Company Profile

Company name: Cargoz
Date started: January 2022
Founders: Premlal Pullisserry and Lijo Antony
Based: Dubai
Number of staff: 30
Investment stage: Seed

COMPANY PROFILE

Company name: Bedu

Started: 2021

Founders: Khaled Al Huraimel, Matti Zinder, Amin Al Zarouni

Based: Dubai, UAE

Industry: AI, metaverse, Web3 and blockchain

Funding: Currently in pre-seed round to raise $5 million to $7 million

Investors: Privately funded

COMPANY PROFILE

Name: Telr
Based: Dubai, UAE
Launch year: 2014
Number of employees: 65
Sector: FinTech and payments
Funding: nearly $30 million so far

MEDIEVIL (1998)

Developer: SCE Studio Cambridge
Publisher: Sony Computer Entertainment
Console: PlayStation, PlayStation 4 and 5
Rating: 3.5/5

Inside Out 2

Director: Kelsey Mann

Starring: Amy Poehler, Maya Hawke, Ayo Edebiri

Rating: 4.5/5

COMPANY PROFILE

Name: Qureos
Based: UAE
Launch year: 2021
Number of employees: 33
Sector: Software and technology
Funding: $3 million

COMPANY PROFILE

Name: Carzaty, now Kavak
Based: Dubai
Launch year: Carzaty launched in 2018, Kavak in the GCC launched in 2022
Number of employees: 140
Sector: Automotive
Funding: Carzaty raised $6m in equity and $4m in debt; Kavak plans $130m investment in the GCC

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Cinco in numbers

Dh3.7 million

The estimated cost of Victoria Swarovski’s gem-encrusted Michael Cinco wedding gown

46

The number, in kilograms, that Swarovski’s wedding gown weighed.

1,000

The hours it took to create Cinco’s vermillion petal gown, as seen in his atelier [note, is the one he’s playing with in the corner of a room]

50

How many looks Cinco has created in a new collection to celebrate Ballet Philippines’ 50th birthday

3,000

The hours needed to create the butterfly gown worn by Aishwarya Rai to the 2018 Cannes Film Festival.

1.1 million

The number of followers that Michael Cinco’s Instagram account has garnered.


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