Specialist divers resumed the search on Tuesday for six people, including British technology entrepreneur Mike Lynch, 59, and his teenage daughter, who went missing after their luxury yacht sank after a tornado struck off the coast of Sicily.
The British-flagged Bayesian, which had 22 people on board, capsized about 5am on Monday after being battered during intense storms off the coast of Palermo.
Firefighter divers trained to work in tight spaces were flown in from Rome and Sardinia late on Monday. Officials in southern Italy said the missing were now feared dead aboard the sunken wreckage of a luxury yacht.
“Never say never is our motto,” Vincenzo Zagarola, spokesperson for the Italian Coastguard, said. “But, at this point, it would be reasonable to think that we are more likely to find the missing people inside the boat.”
But a first search of the wreck about 50 metres below the sea surface failed because they were unable to access the below-deck cabins that had become blocked by overturned furniture.
“Access was limited only to the bridge, with difficulty due to the presence of furniture obstructing passage,” the firefighters said on X.
They returned on Tuesday to tag-team in 12-minute underwater search shifts where the yacht sank. The rotating search teams, each made up of two specialised cave divers, were working to open up other access points to enter the wreckage.
Rescue crews said they assume the six passengers will be found in the cabins, given the time of the shipwreck.
A body, believed to be that of the vessel's chef, Ricardo Thomas, was discovered at the scene on Monday.
Feared dead
Mr Lynch and his daughter Hannah, 18, who The Times reported had secured a place to study English literature at the University of Oxford, are feared dead.
The school Hannah attended, Latymer Upper School in Hammersmith, London, said on Tuesday it was in shock at the news that the former pupil and her father were missing.
The school told The National: "We are all incredibly shocked by the news that Hannah and her father are among those missing in this tragic incident and our thoughts are with their family and everyone involved as we await further updates."
His close friend, Morgan Stanley International Bank chairman Jonathan Bloomer, is also missing, as is Clifford Chance lawyer Chris Morvillo. The wives of both men are also unaccounted for, according to authorities in Sicily.
They were invited on the trip to celebrate Mr Lynch’s recent acquittal of fraud charges in the US.
The tragedy came only days after the death of Mr Lynch’s former colleague and co-defendant, Stephen Chamberlain. The former vice president of finance at Autonomy was hit by a car in the UK while out running on Saturday and placed on life support but later died.
Intense storms
Prosecutors in the nearby town of Termini Imerese have opened an investigation into the sinking.
Four inspectors have also been sent by the UK's Marine Accident Investigation Branch to conduct a “preliminary assessment”. A basic assessment of the scene will be made by the team, with no investigation launched at this stage.
One expert at the scene of the disaster, who declined to be named, said an early focus of an investigation would be whether the yacht's crew had had time to close access hatches into the vessel before the storm struck.
More thunderstorms are forecast on Tuesday in Sicily. Italy is hit by about 100 tornadoes a year, according to AtmosphericG2, a company that provides weather data to traders. On average, more than 70 are “marine spouts,” occurring off the coast, with another 30 onshore.
Acquitted
Mr Lynch, who co-founded software giant Autonomy in 1996, was awarded the Order of the British Empire for services to enterprise in 2006.
He was acquitted by a jury in San Francisco of fraud charges linked to the sale of Autonomy to Hewlett-Packard (HP)for $11 billion in 2011.
The sale cemented his reputation as Britain's answer to Bill Gates but it quickly turned sour after HP wrote down Autonomy's value by $8.8 billion.
Mr Lynch said he was “elated” to be cleared in the criminal trial, during which he took the stand in his own defence, denying to jurors any wrongdoing and blaming HP for botching the integration of the two companies.
Mr Bloomer, who is also chairman of insurance provider Hiscox, appeared as a defence witness in the case for Mr Lynch, according to the Financial Times. Mr Lynch appointed Mr Bloomer to Autonomy’s board of directors in 2010, where he served as chairman of the audit committee at the time of the HP deal.
Night of panic
Fifteen people, including Mr Lynch's wife Angela Bacares, who owned the boat, were rescued.
Another survivor, British guest Charlotte Golunski, said she lost hold of her one-year-old daughter in the waves “for two seconds”, before managing to grab her “while the sea raged”.
“It was terrible. The boat was hit by really strong wind and shortly after it went down,” she said.
“Lots of people were screaming” in the dark, said Ms Golunski, who managed to clamber on to a life raft.
Ayla Ronald, a New Zealand citizen working at Clifford Chance in London, also survived. Her father Lin Ronald confirmed to The Telegraph she had been invited on board as thanks for assistance in Mr Lynch's recent court case.
“I have texted my daughter and she hasn't given me any updates about missing personnel or saved personnel. She has only said that there are deaths and she and her partner are alive,” he said.
“Ayla is a lawyer who is part of the legal team that were invited to go sailing as a result of the success in the recent United States court case.”
The 56-metre yacht was carrying 10 crew members and 12 passengers. It was anchored 700 metres from Porticello when it was struck by a waterspout, a column that descends from a cloud to form a rotating mixture of wind and water, often during severe thunderstorms.
World's tallest mast
Experts suspect the yacht's 75-metre high mast – which was the tallest aluminium sailing mast in the world, according to the Charter World website – may have caused it to sink by snapping in the storm, forcing the vessel to roll.
Fabio Cefalu, a fisherman who witnessed the freak storm, told Italian media he stayed on site for several hours.
“After 10 minutes we saw a flare in the sky, we waited about 10 minutes to see the intensity of the tornado and we went out to sea,” he said.
“We were first to give rescue but we found no one at sea, we only found cushions and the remains of the boat.”
Karsten Borner, the captain of a nearby boat, said there was a “very strong hurricane gust” and he had to battle to keep his vessel steady.
He saw the Bayesian's mast “bend and then snap”, according to Italy's Corriere della Sera daily newspaper.
His crew took on board some survivors who were on a life raft, three of whom were seriously injured. “I think they are inside, all the missing people,” he added.
A spokesman for the UK's Foreign, Commonwealth and Development Office said on Monday: “We are in contact with the local authorities following an incident in Sicily and stand ready to provide consular support to British nationals affected.”
The Bayesian completed a number of sailings in recent days, calling at various ports in Sicily, according to ship-tracking website VesselFinder.
The superyacht can accommodate up to 12 guests in six suites.
It was built in 2008 by Italian company Perini Navi and named after the Bayesian theory – a mathematical formula for determining conditional probability – which was the topic of Mr Lynch's doctorate thesis.
Mr Lynch is of Irish heritage but was born in Ilford in east London and raised in England.
RACE CARD
6.30pm: Handicap (TB) $68,000 (Dirt) 1,600m
7.05pm: Meydan Sprint – Group 2 (TB) $163,000 (Turf) 1,000m
7.40pm: Curlin Stakes – Listed Handicap (TB) $88,000 (D) 2,200m
8.15pm: UAE Oaks – Group 3 (TB) $125,000 (D) 1,900m
8.50pm: Zabeel Mile – Group 2 (TB) $163,000 (T) 1,600m
9.25pm: Balanchine – Group 2 (TB) $163,000 (T) 1,800m
10pm: Al Shindagha Sprint – Group 3 (TB) $130,000 (D) 1,200m
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.”
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
MATCH INFO
Uefa Champions League last 16, second leg
Liverpool (0) v Atletico Madrid (1)
Venue: Anfield
Kick-off: Thursday, March 12, midnight
Live: On beIN Sports HD
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
Start-up hopes to end Japan's love affair with cash
Across most of Asia, people pay for taxi rides, restaurant meals and merchandise with smartphone-readable barcodes — except in Japan, where cash still rules. Now, as the country’s biggest web companies race to dominate the payments market, one Tokyo-based startup says it has a fighting chance to win with its QR app.
Origami had a head start when it introduced a QR-code payment service in late 2015 and has since signed up fast-food chain KFC, Tokyo’s largest cab company Nihon Kotsu and convenience store operator Lawson. The company raised $66 million in September to expand nationwide and plans to more than double its staff of about 100 employees, says founder Yoshiki Yasui.
Origami is betting that stores, which until now relied on direct mail and email newsletters, will pay for the ability to reach customers on their smartphones. For example, a hair salon using Origami’s payment app would be able to send a message to past customers with a coupon for their next haircut.
Quick Response codes, the dotted squares that can be read by smartphone cameras, were invented in the 1990s by a unit of Toyota Motor to track automotive parts. But when the Japanese pioneered digital payments almost two decades ago with contactless cards for train fares, they chose the so-called near-field communications technology. The high cost of rolling out NFC payments, convenient ATMs and a culture where lost wallets are often returned have all been cited as reasons why cash remains king in the archipelago. In China, however, QR codes dominate.
Cashless payments, which includes credit cards, accounted for just 20 per cent of total consumer spending in Japan during 2016, compared with 60 per cent in China and 89 per cent in South Korea, according to a report by the Bank of Japan.
WE%20NO%20LONGER%20PREFER%20MOUNTAINS
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Inas%20Halabi%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3ENijmeh%20Hamdan%2C%20Kamal%20Kayouf%2C%20Sheikh%20Najib%20Alou%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
RESULTS
1.45pm: Handicap (TB) Dh80,000 (Dirt) 1,400m
Winners: Hyde Park, Royston Ffrench (jockey), Salem bin Ghadayer (trainer)
2.15pm: Conditions (TB) Dh100,000 (D) 1,400m
Winner: Shamikh, Ryan Curatolo, Nicholas Bachalard
2.45pm: Conditions (TB) Dh100,000 (D) 1,200m
Winner: Hurry Up, Royston Ffrench, Salem bin Ghadayer.
3.15pm: Shadwell Jebel Ali Mile Group 3 (TB) Dh575,000 (D) 1,600m
Winner: Blown by Wind, Xavier Ziani, Salem bin Ghadayer
3.45pm: Handicap (TB) Dh72,000 (D) 1,600m
Winner: Mazagran, Tadhg O’Shea, Satish Seemar.
4.15pm: Handicap (TB) Dh64,000 (D) 1,950m
Winner: Obeyaan, Adrie de Vries, Mujeeb Rehman
4.45pm: Handicap (TB) Dh84,000 (D) 1,000m
Winner: Shanaghai City, Fabrice Veron, Rashed Bouresly.
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