House Republican leaders arrive to tout Republican wins and meet with reporters on the steps of the Capitol in Washington. AP
House Republican leaders arrive to tout Republican wins and meet with reporters on the steps of the Capitol in Washington. AP
House Republican leaders arrive to tout Republican wins and meet with reporters on the steps of the Capitol in Washington. AP
House Republican leaders arrive to tout Republican wins and meet with reporters on the steps of the Capitol in Washington. AP

Donald Trump officially clinches 'trifecta' government with Republicans holding majority in House


Ellie Sennett
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US media outlets projected on Wednesday that the Republican Party will maintain its narrow hold on the House of Representatives, affirming that president-elect Donald Trump will have total control of the Congress when he returns to the White House in January.

The party had already flipped the Senate chamber from Democratic control on election night, while the razor-thin margins in the lower House chamber hung in the balance.

CNN and ABC announced their official projections more than a week after US polls closed and the country decisively endorsed Mr Trump over Vice President Kamala Harris.

The Republicans' narrow hold on the House in the current Congress has led to complications in the legislature's capacity to deliver legislation, with infighting causing chaos in the party's bid to elect a speaker after the US midterms.

Under the new Trump administration and with a Republican Senate, maintaining even a slim majority in the House would give Republicans sweeping powers to enable Mr Trump's broad agenda of tax and spending cuts, energy deregulation and stronger border security controls.

Richard Hudson, the chairman of the National Republican Congressional Committee, joined party leadership in the House as they returned to Capitol Hill this week to celebrate.

“Donald Trump and House Republicans are the solution. That's why voters delivered House Republicans a majority that sent Donald Trump to the White House in a landslide. I'm proud to have led the NRCC to achieve this victory, even after Democrats spent $550 million spreading lies about House Republicans, we went on offence to flip seats from Pennsylvania to Michigan to Colorado and beyond,” he said in Washington, behind a “New Day In America” sign.

“The American people saw through the Democrat lies because Republicans had better candidates and a better message about what we would do to prove their daily lives.”

House Speaker Mike Johnson also spoke with confidence on his party's hold on the chamber, vowing to move swiftly in the new government to accomplish Mr Trump's agenda.

“When it was all said and done, I did more than 360 campaign events in over 250 cities across 40 states, and I logged enough miles to circumnavigate the globe five and a half times. But it was worth it, and we got an extraordinary candidate, so we flipped blue seats to red, as we planned, and we kept this majority,” Mr Johnson said.

The projections came on Wednesday as Republicans in the Senate hinted they may maintain a degree of independence from Mr Trump's more radical wing of the party, moving to elect “institutionalist” senator John Thune as their new majority leader, against significant backlash from the most vocal Trump supporters.

Republicans have secured a majority of at least 52 seats in the 100-member US Senate, with some races still outstanding.

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.”

Updated: November 14, 2024, 3:51 AM