Global stock markets were mostly up at Friday's close, with Wall Street rebounding, lifted by a stronger-then-expected US jobs report.
Hiring in the world's largest economy surged in September, signalling a resilient economy that could lead the Federal Reserve to raise interest rates again before the end of the year.
Employers added 336,000 jobs in September, up from August's revised gain of 227,000, data from the Labour Department showed.
While Friday's report was apparent evidence that the Biden administration's labour strategy was working, it has led to an unexpected twist in the Federal Reserve's inflation battle, which could lead to consumers facing higher borrowing costs for a longer time.
The US central bank left its target rate unchanged at between 5.25 per cent and 5.50 per cent last month. A majority of policymakers predicted one more quarter-rate increase this year.
Fed chairman Jerome Powell has said the central bank would take a careful, data-driven approach, adding that the Fed needs more than three months of favourable data to determine if it is done with raising rates, but cautioned that more increases could be necessary if the data merits it.
“The US jobs market must do the rest of the heavy lifting if the Fed wants to see inflation return and steady around its 2 per cent monetary policy target. That makes the US employment and unemployment numbers critical for investors, again,” Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, wrote in a note.
Loretta Mester, president of the Federal Reserve Bank of Cleveland, told CNN that Friday’s jobs report did not change her view that the US labour market remains robust, and that further interest rate rises will depend on upcoming economic data.
“The inflation rate is still too high, the level of inflation remains high, but at least we’re seeing progress on it,” Ms Mester said.
“And whether we need to tighten monetary policy a bit further or not is really going to depend on all the data that we get between now and our next meeting.”
Wall Street indices reversed earlier losses to finish stronger. The Dow Jones Industrial Average gained 0.9 per cent, the S&P 500 rose 1.2 per cent and the tech-heavy Nasdaq Composite surged 1.6 per cent.
For the week S&P 500 and Nasdaq gained 0.5 per cent and 1.6 per cent, respectively, while the Dow shed 0.3 per cent. Year-to-date, they are up 12.2 per cent, 28.3 per cent and 0.8 per cent, respectively.
In Europe, London's FTSE 100 settled 0.6 per cent higher, but posted a sharp weekly loss as government bond yields surged on expectations of higher interest rates.
In other major European indices, Frankfurt's DAX surged 1.1 per cent at the close, while Paris' CAC 40 settled 0.9 per cent higher.
Earlier in Asia, Tokyo's Nikkei 225 settled 0.3 per cent lower, while Hong Kong's Hang Seng index jumped 1.6 per cent. The Shanghai Composite was closed for a holiday.
In commodities, oil prices closed higher on Friday but posted their biggest weekly loss since March amid demand concerns.
Brent gained 0.61 per cent, or $0.51, to settle at $84.58 a barrel while West Texas Intermediate rose 0.58 per cent, or $0.48, to close at $82.63 a barrel.
For the week, Brent dropped about 11 per cent, while WTI posted a more than 8 per cent decline.
Gold, meanwhile, rose 0.7 per cent, or $13.40, to settle at $1,845.20 an ounce on Friday. The precious metal, used as a hedge against inflation, rebounded after nine consecutive sessions of losses.
UK's plans to cut net migration
Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.
Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.
But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.
Language requirements will be increased for all immigration routes to ensure a higher level of English.
Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.
The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.
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.”
Race 3
Produced: Salman Khan Films and Tips Films
Director: Remo D’Souza
Cast: Salman Khan, Anil Kapoor, Jacqueline Fernandez, Bobby Deol, Daisy Shah, Saqib Salem
Rating: 2.5 stars
Global Fungi Facts
• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil
The specs
BMW M8 Competition Coupe
Engine 4.4-litre twin-turbo V8
Power 625hp at 6,000rpm
Torque 750Nm from 1,800-5,800rpm
Gearbox Eight-speed paddleshift auto
Acceleration 0-100kph in 3.2 sec
Top speed 305kph
Fuel economy, combined 10.6L / 100km
Price from Dh700,000 (estimate)
On sale Jan/Feb 2020
GRAN%20TURISMO
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Neill%20Blomkamp%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20David%20Harbour%2C%20Orlando%20Bloom%2C%20Archie%20Madekwe%2C%20Darren%20Barnet%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
UAE currency: the story behind the money in your pockets
Coming soon
Torno Subito by Massimo Bottura
When the W Dubai – The Palm hotel opens at the end of this year, one of the highlights will be Massimo Bottura’s new restaurant, Torno Subito, which promises “to take guests on a journey back to 1960s Italy”. It is the three Michelinstarred chef’s first venture in Dubai and should be every bit as ambitious as you would expect from the man whose restaurant in Italy, Osteria Francescana, was crowned number one in this year’s list of the World’s 50 Best Restaurants.
Akira Back Dubai
Another exciting opening at the W Dubai – The Palm hotel is South Korean chef Akira Back’s new restaurant, which will continue to showcase some of the finest Asian food in the world. Back, whose Seoul restaurant, Dosa, won a Michelin star last year, describes his menu as, “an innovative Japanese cuisine prepared with a Korean accent”.
Dinner by Heston Blumenthal
The highly experimental chef, whose dishes are as much about spectacle as taste, opens his first restaurant in Dubai next year. Housed at The Royal Atlantis Resort & Residences, Dinner by Heston Blumenthal will feature contemporary twists on recipes that date back to the 1300s, including goats’ milk cheesecake. Always remember with a Blumenthal dish: nothing is quite as it seems.
