Pete Hegseth attends an inaugural ball in Washington on Monday. Getty / AFP
Pete Hegseth attends an inaugural ball in Washington on Monday. Getty / AFP
Pete Hegseth attends an inaugural ball in Washington on Monday. Getty / AFP
Pete Hegseth attends an inaugural ball in Washington on Monday. Getty / AFP

Pete Hegseth confirmed as next US Defence Secretary


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The US Senate confirmed Pete Hegseth as America's new Defence Secretary on Friday in a dramatic late-night vote, swatting back questions about his qualifications to lead the Pentagon amid allegations of heavy drinking and aggressive behaviour towards women.

Rarely has a Cabinet nominee faced such wide-ranging concerns about his experience and behaviour as Mr Hegseth, particularly for such a high-profile role on top of the US military. But the Republican-led Senate was determined to confirm the former Fox News host and combat veteran who has vowed to bring a “warrior culture” to the Pentagon, rounding out President Donald Trump's top national security Cabinet officials.

Vice President JD Vance was on hand to cast a tiebreaking vote, unusual in the Senate for Cabinet nominees, who typically win wider support. Mr Hegseth himself was at the Capitol with his family.

Senate Majority Leader John Thune said Mr Hegseth, as a veteran of the Army National Guard who served tours in Iraq and Afghanistan, “will bring a warrior's perspective” to the top military job.

“Gone will be the days of woke distractions,” Mr Thune said, referring to the diversity, equity and inclusion initiatives being slashed across the federal government. “The Pentagon's focus will be on war fighting.”

The Senate's ability to confirm Mr Hegseth despite a grave series of allegations against him will provide a measure of Mr Trump's political power and ability to get what he wants from the Republican-led Congress, and of the potency of the culture wars to fuel his agenda at the White House.

Next week senators will be facing Mr Trump's other outside Cabinet choices including particularly Kash Patel, a Trump ally who has published an enemies list, as the FBI director; Tulsi Gabbard as director of the office of national intelligence; and Robert F Kennedy Jr, the anti-vaccine advocate at Health and Human Services.

“Is Pete Hegseth truly the best we have to offer?” said Senator Jack Reed of Rhode Island, the top Democrat on the Senate Armed Services Committee, urging his colleagues to think seriously about their vote.

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.”

TOUR RESULTS AND FIXTURES

June 3: NZ Provincial Barbarians 7 Lions 13
June 7: Blues 22 Lions 16
June 10: Crusaders 3 Lions 12
June 13: Highlanders 23 Lions 22
June 17: Maori All Blacks 10 Lions 32
June 20: Chiefs 6 Lions 34
June 24: New Zealand 30 Lions 15 (First Test)
June 27: Hurricanes 31 Lions 31
July 1: New Zealand 21 Lions 24 (Second Test)
July 8: New Zealand v Lions (Third Test) - kick-off 11.30am (UAE)

Updated: January 25, 2025, 4:55 AM