Hillary Clinton has faced a steady drip of revelations about her use of a private email server while secretary of state. Cristobal Herrera / EPA
Hillary Clinton has faced a steady drip of revelations about her use of a private email server while secretary of state. Cristobal Herrera / EPA
Hillary Clinton has faced a steady drip of revelations about her use of a private email server while secretary of state. Cristobal Herrera / EPA
Hillary Clinton has faced a steady drip of revelations about her use of a private email server while secretary of state. Cristobal Herrera / EPA

Clinton’s email woes return


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The saga of the candidate’s email use is back in the media. But what exactly did she do?

The US election is only days away and yet it can seem as if some of the topics discussed have been playing in the media forever. The most recent one: emails, and specifically emails from Hillary Clinton.

The Clinton email saga has been playing out for almost two years. But what exactly is at issue?

The story began in March 2015, after it was revealed that Mrs Clinton, when she was US secretary of state, had used a personal email server, located at her home in New York.

That caused consternation in the media. US officials usually use government servers, for a number of reasons: they can be protected better, they can be monitored by government officials and they can be made public via freedom of information requests.

Critics said the reason Mrs Clinton used a private server was to bypass all these possibilities and make sure that what she wrote would remain private unless she herself released it. But as a government official, what she wrote ought to have been part of the government record and therefore open to scrutiny.

Mrs Clinton’s argument was much simpler: it was easier to communicate with a private server because it allowed her to carry just one phone for official and private emails, instead of two.

An FBI investigation followed, watched carefully by the media and her opponents, which, in July this year, concluded that while Mrs Clinton had been “extremely careless” in handling classified information, she should not face criminal charges.

The issue was so damaging to Mrs Clinton because it fed a perception among the public that she believes the rules only apply to others, not to her (a criticism also levelled at her husband). But the FBI investigation drew a line under the incident, several months before the election.

What changed a week ago was that the FBI suddenly warned the US Congress that it had in its possession further emails that could be “pertinent”. These emails appear to have come from the laptop of the husband of one of Mrs Clinton’s aides Huma Abedin, who is being investigated over explicit photos he sent to young women.

Although it is unclear if there is anything at all of interest in the emails, the revelation by the FBI so close to an election has sparked fury from the Clinton campaign – and joy from Donald Trump’s campaign. The nuance of the story has been lost in the maelstrom of the election and the suggestion that Mrs Clinton may have broken the law has again resurfaced.

Will it matter? “I think,” Mrs Clinton said this week, “most people have decided a long time ago what they think about all of this. Now what people are focused on is choosing the next president.” She may be right. But the real danger is that some of those who may vote for her will be so exasperated by these latest revelations that they simply stay home. With the opinion polls so close, and Mr Trump’s supporters so enthusiastic, Mrs Clinton will need a big turnout to win the election.

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Cyber warfare - Shaped by geopolitical tension, hostile actors seek to infiltrate and compromise national infrastructure, using one country’s systems as a springboard to launch attacks on others.

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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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