It’s a game for idiots, this. How can any sane person predict the year ahead? Do you remember our collective failure to predict the extraordinary events of the year that has just passed?
Correct me if you yourself are verifiably psychic, but did anyone really predict the first major land war since 1945 to threaten peace across Europe and dislocate world food supplies? I don’t recall any specialist in British politics predicting a Westminster political circus so bizarre that 60 government ministers resigned and we had three prime ministers in successive months. Or did any American political analyst foresee that rather than Joe Biden being humiliated in the midterm elections, he would have some of the best results of any sitting president in the past century? Or that Donald Trump would endorse Republican failures and be beset by investigations into his businesses and allegations of criminal activity? In big business, I do not recall any predictions about the entertainment value – and real value erosion – of Elon Musk on Twitter.
The only thing I predicted with any degree of accuracy was that Argentina have a great football team and might do well in the World Cup. Clairvoyance, as you can see, is not my thing. So with great humility, I have a few thoughts for the year ahead that I hope you will remember in the unlikely event I get something correct – and please forget what follows if it all sounds silly by next Christmas.
It’s obvious that a threat to humanity anywhere is ultimately a threat everywhere
First, Ukraine. Given the nature of the combatants, the best we can hope for is an uneasy peace, and perhaps not so much peace itself as a nervous stalemate. This would involve an end to hostilities but no formal settlement on territory. We already have something like that on the Korean Peninsula, between North and South, a conflict that has been (mostly) in suspended animation since the 1950s yet remains on a short fuse. I hope that I am wrong and a real peace becomes the big news story of the year, but I see no obvious mechanism through which that can be achieved.
Elsewhere, in American politics, the big question is who emerges to fight the 2024 presidential election. Florida Governor Ron DeSantis looks like the person to beat on the Republican side, despite Mr Trump’s sniping from the sidelines. But perhaps one of the biggest stories of 2023 will be the legal and business challenges to Mr Trump himself. Is he – whisper it – potentially facing bankruptcy? What of the other investigations into the January 2021 events? The Democrats have their own problems. Put bluntly, do they need a younger candidate? Will Mr Biden step aside despite his successes in the 2020 election, and if so for whom? Mr Biden is already the oldest person ever to assume the US presidency. Now aged 80, he could fight again in 2024 but how wise is that for him personally, for his country and for the Democratic Party?
And that brings us back to the potential for stability in British politics in 2023 compared to 2022. Stability? Maybe. We appear to hover almost on the edge of a British general strike over wages and inflation. The benign scenario is that after the soap opera of the Johnson years, Prime Minister Rishi Sunak gets a grip on the Conservative party and Boris Johnson goes away to spend more time with his money.
More probably, Mr Johnson continues mischief making and after his lucrative speaking tours he tries, once more, for a comeback. I’m baffled why anyone pays money to listen to Mr Johnson. I would pay a modest fee never to hear from him again. He failed profoundly in the highest political office in Britain and his entertainment value is that of an ageing crooner whose voice hits only the wrong notes. In 2022, Mr Johnson made a speech to British business executives where he spoke about the children’s cartoon character Peppa Pig. At the UN, he referenced Kermit the Frog. Would you pay to hear a middle-aged politician talk about the Muppets?
But no look ahead to the New Year should end on pessimism.
If 2022 was a year of turmoil, let 2023 be a year of facts and reality. In Britain, a majority now accepts that Brexit is a mistake. We need to repair damage with the EU in 2023. In 2022, the climate crisis caused disruption – fires, floods, storms, intolerable heat. In 2023, talk – including at Cop28 in the UAE later this year – needs to result in real climate action. Coronavirus, migration, global heating, the threat to world peace, economic and supply chain failures all point to one simple fact. We are all connected. There is only one planet Earth and we have messed it up. It’s obvious that a threat to humanity anywhere is ultimately a threat everywhere. International co-operation is our only hope and now is a good time to start, otherwise in a year’s time we may look forward to 2024 and wonder why we are still talking about the same problems we failed to address in 2023.
Happy New Year – I hope.
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Red Joan
Director: Trevor Nunn
Starring: Judi Dench, Sophie Cookson, Tereza Srbova
Rating: 3/5 stars
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Honeymoonish
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Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The Settlers
Director: Louis Theroux
Starring: Daniella Weiss, Ari Abramowitz
Rating: 5/5
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The biog
Name: Younis Al Balooshi
Nationality: Emirati
Education: Doctorate degree in forensic medicine at the University of Bonn
Hobbies: Drawing and reading books about graphic design
Squid Game season two
Director: Hwang Dong-hyuk
Stars: Lee Jung-jae, Wi Ha-joon and Lee Byung-hun
Rating: 4.5/5
Mohammed bin Zayed Majlis
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.”
More from Neighbourhood Watch:
UAE currency: the story behind the money in your pockets
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The specs: Fenyr SuperSport
Price, base: Dh5.1 million
Engine: 3.8-litre twin-turbo flat-six
Transmission: Seven-speed automatic
Power: 800hp @ 7,100pm
Torque: 980Nm @ 4,000rpm
Fuel economy, combined: 13.5L / 100km
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The biog
Place of birth: Kalba
Family: Mother of eight children and has 10 grandchildren
Favourite traditional dish: Al Harees, a slow cooked porridge-like dish made from boiled cracked or coarsely ground wheat mixed with meat or chicken
Favourite book: My early life by Sheikh Dr Sultan bin Muhammad Al Qasimi, the Ruler of Sharjah
Favourite quote: By Sheikh Zayed, the UAE's Founding Father, “Those who have no past will have no present or future.”
Teaching your child to save
Pre-school (three - five years)
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six - eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine - 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 - 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 - 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 - 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
* JP Morgan Private Bank