Isaac Herzog speaks at the AIPAC Policy Conference, Washington, in 2017. AP Photo
Isaac Herzog speaks at the AIPAC Policy Conference, Washington, in 2017. AP Photo
Isaac Herzog speaks at the AIPAC Policy Conference, Washington, in 2017. AP Photo
Isaac Herzog speaks at the AIPAC Policy Conference, Washington, in 2017. AP Photo

Israeli legislators elect Isaac Herzog for next president


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The Israeli parliament on Wednesday chose Isaac Herzog, a veteran politician and scion of a prominent Israeli family, as the country's next president.

The president in Israel is largely a figurehead, meant to serve as the nation's moral compass and promote unity.

The election was conducted at the Knesset, Israel's parliament, where 120 legislators were eligible to cast their votes anonymously.

Mr Herzog, 60, is a former head of Israel’s Labour Party and opposition leader who unsuccessfully ran against Israeli Prime Minister Benjamin Netanyahu in the 2013 parliamentary elections. He was elected with 87 votes.

He has deep ties to the political establishment as a scion of a prominent Zionist family. His father, Chaim Herzog, was Israel’s ambassador to the United Nations before being elected president. His uncle, Abba Eban, was Israel’s first foreign minister and ambassador to the UN and US. His grandfather was the country’s first chief rabbi.

For the past three years since resigning from parliament, Mr Herzog has served as head of the Jewish Agency, a nonprofit organisation that works closely with the government to promote immigration to Israel.

He defeated Miriam Peretz, an educator who was seen as a more conservative and nationalist candidate.

Mr Herzog will succeed President Reuven Rivlin, who is scheduled to leave office next month.

Government deadline approaches

  • Opposition leader and Chairman of Israel's Yesh Atid party Yair Lapid speaks during a weekly party meeting at the Knesset in Jerusalem. AFP
    Opposition leader and Chairman of Israel's Yesh Atid party Yair Lapid speaks during a weekly party meeting at the Knesset in Jerusalem. AFP
  • Far-right politician Naftali Bennett delivers a statement in the Knesset, the Israeli Parliament, in Jerusalem. Reuters
    Far-right politician Naftali Bennett delivers a statement in the Knesset, the Israeli Parliament, in Jerusalem. Reuters
  • Israeli Minster of Defense, Benny Gantz addressing foreign journalists working in Israel, in Jerusalem. EPA
    Israeli Minster of Defense, Benny Gantz addressing foreign journalists working in Israel, in Jerusalem. EPA
  • Secretary of State Antony Blinken and Defense Minister Benny Gantz move to take their seats before their meeting at the Ministry of Foreign Affairs, in Jerusalem, Israel. AP Photo
    Secretary of State Antony Blinken and Defense Minister Benny Gantz move to take their seats before their meeting at the Ministry of Foreign Affairs, in Jerusalem, Israel. AP Photo
  • Leader of the Yemina party, Naftali Bennett, prepares to deliver a political statement in the Knesset (the Israeli Parliament), in Jerusalem, Israel. EPA
    Leader of the Yemina party, Naftali Bennett, prepares to deliver a political statement in the Knesset (the Israeli Parliament), in Jerusalem, Israel. EPA
  • Israeli Defence Minister Benny Gantz points at targets hit by Israeli army in Gaza, during a press briefing in Jerusalem. AFP
    Israeli Defence Minister Benny Gantz points at targets hit by Israeli army in Gaza, during a press briefing in Jerusalem. AFP
  • Yair Lapid, head of the centrist Yesh Atid party, delivers a statement to the press before the party faction meeting at the Knesset, Israel's parliament, in Jerusalem. Reuters
    Yair Lapid, head of the centrist Yesh Atid party, delivers a statement to the press before the party faction meeting at the Knesset, Israel's parliament, in Jerusalem. Reuters

Also on Wednesday, Israel's opposition leader moved closer to unseating Prime Minister Benjamin Netanyahu after agreeing to terms with several parties, including one led by Defence Minister Benny Gantz, for a proposed new government, a spokesman said.

Yair Lapid, a centrist given the responsibility of forming the next governing coalition after the conservative Mr Netanyahu failed to do so after an inconclusive election on March 23, has until midnight on Wednesday to present a final slate.

Mr Lapid has yet to clinch a deal with his main partner, nationalist Naftali Bennett, who would serve as premier first under a proposed rotation between the two men.

Mr Lapid's Yesh Atid party and Mr Gantz's centrist Blue and White said they had "agreed on the outlines of the government and core issues relating to the strengthening of democracy and Israeli society".

Mr Gantz would remain defence minister in the new Cabinet, the parties said.

Deals were also reached with the left-wing Meretz and centre-left Labour parties, as well as with former defence minister Avigdor Lieberman's nationalist Yisrael Beitenu party, a Lapid spokesman said.

The United Arab List was also negotiating to join the coalition. If it does, it would be the first time in Israel's history that an independent Arab party becomes a member of the government.

Mr Netanyahu, in power for the past 12 years, has sought to discredit Mr Bennett and two other rightists negotiating with Mr Lapid, saying they were endangering Israel's security.

Keeping the door open to them, Israel's longest-serving leader said he is still capable of forming the next government.

If Mr Lapid misses Wednesday's deadline – marking the end of a 28-day presidential mandate to put together a coalition – parliament will have three weeks to agree on a new candidate.

If that fails, Israel will hold another election, its fifth in two years.

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NOVAK DJOKOVIC
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20 grand slam singles titles
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US Open: 4 (2010, 13, 17, 19)
Australian Open: 1 (2009)
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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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Three ways to boost your credit score

Marwan Lutfi says the core fundamentals that drive better payment behaviour and can improve your credit score are:

1. Make sure you make your payments on time;

2. Limit the number of products you borrow on: the more loans and credit cards you have, the more it will affect your credit score;

3. Don't max out all your debts: how much you maximise those credit facilities will have an impact. If you have five credit cards and utilise 90 per cent of that credit, it will negatively affect your score.

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