The new trilateral security pact between the UK, US and Australia was supposed to deepen co-operation between three of the western world’s leading democracies. Instead, the pact, known as Aukus, has caused a major rift between them and France.
While Aukus is designed to improve collaboration between the three countries on intelligence-gathering and defence, at the heart of the deal lies an agreement to provide Australia with a new fleet of nuclear-powered submarines.
Canberra says it needs the submarines to due to rising tensions in the Indo-Pacific region, and having nuclear-powered boats at its disposal will enable the Australian navy to conduct long-range patrols for extended periods of time.
But to sign the Aukus deal, Canberra had to tear up a long-standing £72.8 billion contract for France to build diesel-electric submarines. The resulting diplomatic rift led French President Emmanuel Macron to take the unprecedented step of withdrawing France’s ambassadors from the US and Australia.
Although Paris is also angry at Britain for its role in the agreement, France has allowed its ambassador in London to remain there, claiming that the UK is nothing more than a “vassal” of the US, and therefore of little consequence.
France’s furious response has clearly taken the administration of US President Joe Biden by surprise. Washington has responded by launching an intense diplomatic charm offensive, in a desperate attempt to repair relations with Paris.
Mr Biden has made much of his desire to promote closer co-operation among democratic countries to counter the growing influence exercised by rival powers, such as China and Russia, on the world stage. He has unveiled plans to convene a summit of democratic leaders later this year to take part in a virtual summit on December 9 and 10, where they will be asked to make commitments for a “year of action” to address the world’s ills.
A White House statement announcing the conference said: “The challenge of our time is to demonstrate that democracies can deliver by improving the lives of their own people and by addressing the greatest problems facing the wider world.”
The diplomatic fallout between Paris and Washington over the Aukus deal, therefore, has severely undermined Mr Biden’s attempts to engender a spirit of common purpose among western democracies.
France’s furious response has clearly taken Biden by surprise
The first step towards restoring relations was taken after Mr Biden had a telephone conversation with Mr Macron earlier in September, during which the American leader agreed to meet the French President later in October, when he flies to Rome for the G20 summit. The two leaders are also due to attend the major Cop26 climate change summit in Glasgow in early November.
A statement issued following the call said the two leaders “agreed the situation would have benefitted from open consultations among allies on matters of strategic interest to France and our European partners”. Mr Macron also agreed to return the French ambassador to Washington, although no plans have been announced about returning the French envoy to Canberra.
In a further sign that Washington is keen to mend relations with Paris, US Secretary of State Anthony Blinken is to lead a high level delegation to France for talks aimed at healing the rift. But Mr Blinken’s insistence that France was well aware of the Aukus pact before it was announced will do little to assuage Mr Macron’s deep anger on the issue.
In an attempt to deflect criticism away from Washington, US officials appear to be seeking to blame Australia’s insensitive handling of the issue for causing the problem in the first place.
The White House has said it was Australian Prime Minister Scott Morrison’s responsibility to inform France that he was ending the contract for French-made submarines. Mr Morrison has also come under fire from Malcolm Turnbull, his predecessor as Australian prime minister, who originally signed the French deal in 2016. Mr Turnbull accused the Australian leader of not acting in good faith, and claims he had “deliberately deceived” France over the scrapping of the deal.
For his part, Mr Morrison has countered that he had raised concerns about the contract with Mr Macron’s government to the effect that the French submarines would not be able to meet Australia’s future security needs.
The French government has certainly not been shy about expressing its extreme displeasure at the way the nuclear submarine deal was handled, with Foreign Minister Jean-Yves Le Drian describing it as a “stab in the back” from Canberra and a strain on its friendly relationship with Washington.
French anger at British participation in the agreement resulted in Paris cancelling a planned summit between the British and French defence ministers, and Mr Macron has revived talk of creating a European defence force to rival the existing Nato alliance.
As the two leading military powers in Europe, France and Britain have a long history of close co-operation, most recently enshrined in the Lancaster House Treaties signed in 2010 between then British prime minister David Cameron and French president Nicolas Sarkozy.
But even though British Prime Minister Boris Johnson has sought to allay French concerns, telling France to “get a grip” and claiming the pact was “fundamentally a great step forward for global security”, Mr Macron has thrown his support behind a call by European President Ursula von der Leyen for the EU to create its own defence force.
The creation of a European defence force would certainly be a blow for Britain, whose prominent role in the Nato alliance helps to maintain its pre-eminent position in the transatlantic alliance.
Mr Biden therefore faces a difficult balancing act in trying to maintain relations with two European allies, Britain and France, while seeing off the threat to the transatlantic alliance a new EU defence force would pose, as it would completely undermine Nato’s effectiveness.
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West Indies v India - Third ODI
India 251-4 (50 overs)
Dhoni (78*), Rahane (72), Jadhav (40)
Cummins (2-56), Bishoo (1-38)
West Indies 158 (38.1 overs)
Mohammed (40), Powell (30), Hope (24)
Ashwin (3-28), Yadav (3-41), Pandya (2-32)
India won by 93 runs
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
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The Freedom Artist
By Ben Okri (Head of Zeus)
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
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WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Saturday's results
Women's third round
- 14-Garbine Muguruza Blanco (Spain) beat Sorana Cirstea (Romania) 6-2, 6-2
- Magdalena Rybarikova (Slovakia) beat Lesia Tsurenko (Ukraine) 6-2, 6-1
- 7-Svetlana Kuznetsova (Russia) beat Polona Hercog (Slovenia) 6-4. 6-0
- Coco Vandeweghe (USA) beat Alison Riske (USA) 6-2, 6-4
- 9-Agnieszka Radwanska (Poland) beat 19-Timea Bacsinszky (Switzerland) 3-6, 6-4, 6-1
- Petra Martic (Croatia) beat Zarina Diyas (Kazakhstan) 7-6, 6-1
- Magdalena Rybarikova (Slovakia) beat Lesia Tsurenko (Ukraine) 6-2, 6-1
- 7-Svetlana Kuznetsova (Russia) beat Polona Hercog (Slovenia) 6-4, 6-0
Men's third round
- 13-Grigor Dimitrov (Bulgaria) beat Dudi Sela (Israel) 6-1, 6-1 -- retired
- Sam Queery (United States) beat Jo-Wilfried Tsonga (France) 6-2, 3-6, 7-6, 1-6, 7-5
- 6-Milos Raonic (Canada) beat 25-Albert Ramos (Spain) 7-6, 6-4, 7-5
- 10-Alexander Zverev (Germany) beat Sebastian Ofner (Austria) 6-4, 6-4, 6-2
- 11-Tomas Berdych (Czech Republic) beat David Ferrer (Spain) 6-3, 6-4, 6-3
- Adrian Mannarino (France) beat 15-Gael Monfils (France) 7-6, 4-6, 5-7, 6-3, 6-2
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Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
More from Neighbourhood Watch:
WHEN TO GO:
September to November or March to May; this is when visitors are most likely to see what they’ve come for.
WHERE TO STAY:
Meghauli Serai, A Taj Safari - Chitwan National Park resort (tajhotels.com) is a one-hour drive from Bharatpur Airport with stays costing from Dh1,396 per night, including taxes and breakfast. Return airport transfers cost from Dh661.
HOW TO GET THERE:
Etihad Airways regularly flies from Abu Dhabi to Kathmandu from around Dh1,500 per person return, including taxes. Buddha Air (buddhaair.com) and Yeti Airlines (yetiairlines.com) fly from Kathmandu to Bharatpur several times a day from about Dh660 return and the flight takes just 20 minutes. Driving is possible but the roads are hilly which means it will take you five or six hours to travel 148 kilometres.
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.”
Fresh faces in UAE side
Khalifa Mubarak (24) An accomplished centre-back, the Al Nasr defender’s progress has been hampered in the past by injury. With not many options in central defence, he would bolster what can be a problem area.
Ali Salmeen (22) Has been superb at the heart of Al Wasl’s midfield these past two seasons, with the Dubai club flourishing under manager Rodolfo Arrubarrena. Would add workrate and composure to the centre of the park.
Mohammed Jamal (23) Enjoyed a stellar 2016/17 Arabian Gulf League campaign, proving integral to Al Jazira as the capital club sealed the championship for only a second time. A tenacious and disciplined central midfielder.
Khalfan Mubarak (22) One of the most exciting players in the UAE, the Al Jazira playmaker has been likened in style to Omar Abdulrahman. Has minimal international experience already, but there should be much more to come.
Jassim Yaqoub (20) Another incredibly exciting prospect, the Al Nasr winger is becoming a regular contributor at club level. Pacey, direct and with an eye for goal, he would provide the team’s attack an extra dimension.
UAE currency: the story behind the money in your pockets