Toxic Trump hinders Republican Party at midterms


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November 09, 2022

If the US midterms confirmed anything, it is that Donald Trump is not very good at winning elections.

The former president, who lost the popular vote in 2016, lost control of the House of Representatives in 2018 and lost everything in 2020, once again showed that his toxic brand of politics is not what most Americans want.

Tuesday’s elections should have been a straightforward proposition for the Republicans. Americans are fed up with soaring petrol prices, persistent inflation and with President Joe Biden, whose popularity remains stuck at about 40 per cent or a little higher.

Just as Barack Obama saw his Democratic Party suffer a “shellacking” in the 2010 midterms, Mr Biden was primed to experience a similar wipeout — or so the Republicans had us believe.

But instead of seeing their predicted “red wave” crash across the country, the Grand Old Party was left staring at a whole lot of dry land on Wednesday morning.

True, they look poised to secure a narrow victory in the House of Representatives. But with Senate control still to be determined and the Democrats securing big wins in Pennsylvania, the Republicans cannot claim a popular mandate.

In short, they had a wretched night, notching marginal gains in what should have been an easy sweep.

The postmortems, already under way, must focus on Mr Trump and the disastrous role his non-stop intervention in races across the country played.

While he had some wins, such as in Ohio, where his chosen candidate JD Vance won the Senate race, the midterms generally served as a rebuke to the former president, his divisive style and his baseless claims about the 2020 election being “stolen” from him.

In Michigan, a clear majority of voters countered Mr Trump’s war on democracy by approving a measure making it easier for people to vote. The Trump-backed gubernatorial candidate lost, as did his pick for secretary of state.

In Pennsylvania, Democrats secured the governorship after the Republicans fielded an election-denying candidate supported by Mr Trump. In Arizona, Mr Trump's pick for governor, Kari Lake, was trailing Democratic candidate Katie Hobbs.

The list goes on, but notably also includes an easy victory for Georgia Republican Brian Kemp, who kept his governorship after he distanced himself from Mr Trump and his election lies.

Another Republican rewarded for his disloyalty to Mr Trump was Florida Governor Ron DeSantis, who won re-election in a landslide. The 44-year-old leader has cut a clear path away from the former president and is preparing for a probable White House run in 2024.

On election day, Mr Trump released a four-page memo touting all his achievements in the run-up to the midterms.

Donald Trump sent this memo to supporters on election day. Photo: Screengrab
Donald Trump sent this memo to supporters on election day. Photo: Screengrab

Instead of reflecting on the Republican Party’s relatively poor showing, Mr Trump on Wednesday boasted of “174 wins and nine losses” on his Truth Social media platform and blasted the “Fake News Media” and the Democrats for playing down the “amazing job” his candidates had done.

This vainglorious lack of insight poses a real risk for the Republicans. The self-appointed kingmaker can't accept that his supposed Midas touch has turned into a fetid finger.

Mr Trump has all but declared he will be making another run for the presidency in 2024, teasing a big announcement for November 15.

His grip over the Republican Party is such that he might win the nomination, but Tuesday’s elections underscore just how many Americans have grown weary of Mr Trump's desperation to remain in the limelight.

It's not clear whether the Republican Party writ large will read the tea leaves.

But The New York Post, owned by Rupert Murdoch, whose Fox News continues to support Mr Trump, appears ready to choose a new king, proclaiming Mr DeSantis as “DeFuture”.

The front page of the New York Post heralds Ron DeSantis's re-election as Florida governor. Photo: Screengrab
The front page of the New York Post heralds Ron DeSantis's re-election as Florida governor. Photo: Screengrab
Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

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Fixtures

Tuesday - 5.15pm: Team Lebanon v Alger Corsaires; 8.30pm: Abu Dhabi Storms v Pharaohs

Wednesday - 5.15pm: Pharaohs v Carthage Eagles; 8.30pm: Alger Corsaires v Abu Dhabi Storms

Thursday - 4.30pm: Team Lebanon v Pharaohs; 7.30pm: Abu Dhabi Storms v Carthage Eagles

Friday - 4.30pm: Pharaohs v Alger Corsaires; 7.30pm: Carthage Eagles v Team Lebanon

Saturday - 4.30pm: Carthage Eagles v Alger Corsaires; 7.30pm: Abu Dhabi Storms v Team Lebanon

MATCH INFO

Euro 2020 qualifier

Fixture: Liechtenstein v Italy, Tuesday, 10.45pm (UAE)

TV: Match is shown on BeIN Sports

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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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Innotech Profile

Date started: 2013

Founder/CEO: Othman Al Mandhari

Based: Muscat, Oman

Sector: Additive manufacturing, 3D printing technologies

Size: 15 full-time employees

Stage: Seed stage and seeking Series A round of financing 

Investors: Oman Technology Fund from 2017 to 2019, exited through an agreement with a new investor to secure new funding that it under negotiation right now. 

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Last-16 Europa League fixtures

Wednesday (Kick-offs UAE)

FC Copenhagen (0) v Istanbul Basaksehir (1) 8.55pm

Shakhtar Donetsk (2) v Wolfsburg (1) 8.55pm

Inter Milan v Getafe (one leg only) 11pm

Manchester United (5) v LASK (0) 11pm 

Thursday

Bayer Leverkusen (3) v Rangers (1) 8.55pm

Sevilla v Roma  (one leg only)  8.55pm

FC Basel (3) v Eintracht Frankfurt (0) 11pm 

Wolves (1) Olympiakos (1) 11pm 

Updated: November 10, 2022, 11:02 AM