US President Donald Trump speaks during a Coronavirus Task Force press briefing at the White House in Washington on Friday. AFP
US President Donald Trump speaks during a Coronavirus Task Force press briefing at the White House in Washington on Friday. AFP
US President Donald Trump speaks during a Coronavirus Task Force press briefing at the White House in Washington on Friday. AFP
US President Donald Trump speaks during a Coronavirus Task Force press briefing at the White House in Washington on Friday. AFP

Donald Trump's coronavirus woes have been made worse by Wisconsin's election


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Donald Trump just suffered arguably the worst week of his presidency. It is not only that the US reached the watershed of more than 4,500 coronavirus fatalities in 24 hours. More importantly, the Democrats are avoiding the kind of blunders Mr Trump relied on to get into office and is counting on to stay there.

His meteoric political career has been defined by opponents routinely destroying themselves on his behalf.

In the 2016 Republican primaries, an intra-party election process to choose its presidential candidate, the party establishment and other candidates were fixated on blocking Senator Ted Cruz, who they disliked and feared more than Mr Trump. When the dust settled, it was too late. Mr Trump had amassed a huge delegate lead and was well on the way to winning over the party rank-and-file. The Republican leadership never meaningfully resisted his now comprehensive takeover of the party.

Donald Trump and Hillary Clinton ran against each other for the right to become US president in 2016. AP Photo
Donald Trump and Hillary Clinton ran against each other for the right to become US president in 2016. AP Photo

The Democrats, too, and especially the Hillary Clinton campaign, never took Mr Trump seriously enough. This attitude was exemplified by then president Barack Obama's reassurances to concerned US allies that a Trump victory was unimaginable. Mrs Clinton even ignored and took for granted key states such as Wisconsin, where she never campaigned, despite nervous entreaties by her husband, former president Bill Clinton, one of the few leading Democrats to have appreciated the danger Mr Trump truly posed to her White House bid.

Those days are over. No one underestimates Mr Trump anymore. This time the party leadership and the vast majority of Democratic voters have plainly realised that tacking strongly to the left with an avowedly socialist candidate like Bernie Sanders would be a blunder. In striking contrast to their disunity in 2016, they have united behind former vice president Joe Biden, and are building on the centrist and moderate approach that won them a victory in the 2018 mid-terms.

Last week, the last organised divisions evaporated. Mr Sanders suspended his campaign and endorsed Mr Biden. Mr Obama, who vowed not to take sides until the nomination was resolved, strongly endorsed his former vice president. So did Senator Elizabeth Warren, the one-time presidential contender, and several leading Republican activists.

The difficulties Mr Trump will face in dealing with Mr Biden were illustrated by his self-contradictory reactions.

On the one hand, Mr Trump yet again suggested that Mr Sanders, who does not claim this, was somehow cheated and that the Democratic primaries were rigged against him, although he was overwhelmingly defeated at the polls.

On the other hand, Mr Trump and his conservative allies allege that although Mr Biden won, he largely capitulated to Mr Sanders' left-wing policies. As Mr Sanders’ supporters surely understand, this is false, although Democrats in general have moved somewhat to the left. But Mr Trump had his heart set on running against a socialist, so that label, no matter how preposterously, must now be affixed to Mr Biden.

Obviously, this narrative about Democratic leaders simultaneously cheating and capitulating is nonsensical. And the depth of Mr Trump's likely difficulties in November were dramatically illustrated by Tuesday’s Wisconsin election.

The presidential primaries were not the most important races, although Mr Biden's latest overwhelming victory against Mr Sanders secured those crucial endorsements. The main event was a Wisconsin state supreme court election – in many US states, judges are, bizarrely, elected by the public. A Trump-backed Republican incumbent, Daniel Kelly, was expected to win, particularly after Republican legislators and judges effectively forced voters to choose between risking their health or forsaking their vote.

  • The Manhattan skyline rises over the Borough of Brooklyn on March 31, 2020 in New York. AFP
    The Manhattan skyline rises over the Borough of Brooklyn on March 31, 2020 in New York. AFP
  • A shopper and cashier wear protective equipment at the checkout station at Pat's Farms grocery store in Merrick, New York. AFP
    A shopper and cashier wear protective equipment at the checkout station at Pat's Farms grocery store in Merrick, New York. AFP
  • Paramedics push a gurney with a patient to Brooklyn Hospital Centre Emergency Room in the Brooklyn borough of New York. AFP
    Paramedics push a gurney with a patient to Brooklyn Hospital Centre Emergency Room in the Brooklyn borough of New York. AFP
  • A New York Police officer stands guard in an almost empty Times Square during the outbreak of the coronavirus disease. Reuters
    A New York Police officer stands guard in an almost empty Times Square during the outbreak of the coronavirus disease. Reuters
  • A mounted police officer rides though a mostly deserted Times Square during the outbreak of the coronavirus disease in the Manhattan. Reuters
    A mounted police officer rides though a mostly deserted Times Square during the outbreak of the coronavirus disease in the Manhattan. Reuters
  • A man wears personal protective equipment as he walks on First Avenue, during the coronavirus disease outbreak in New York City. Reuters
    A man wears personal protective equipment as he walks on First Avenue, during the coronavirus disease outbreak in New York City. Reuters
  • A New York City Police officer takes a selfie while in the middle of the street in an almost empty Times Square. Reuters
    A New York City Police officer takes a selfie while in the middle of the street in an almost empty Times Square. Reuters
  • The US Navy hospital ship carrying 1,000 hospital beds moves past the Statue of Liberty as it arrives in New York. AFP
    The US Navy hospital ship carrying 1,000 hospital beds moves past the Statue of Liberty as it arrives in New York. AFP
  • A medical worker walks out of a coronavirus testing tent at Brooklyn Hospital Centre in New York City. AFP
    A medical worker walks out of a coronavirus testing tent at Brooklyn Hospital Centre in New York City. AFP
  • A worker cleans along the Las Vegas Strip devoid of the usual crowds as casinos and other business are shuttered due to the coronavirus outbreak. AP
    A worker cleans along the Las Vegas Strip devoid of the usual crowds as casinos and other business are shuttered due to the coronavirus outbreak. AP
  • Members of the US Army Corps of Engineer Research Development Centre’s Directorate of Public Works construct two temporary hospital room prototypes in Vicksburg. The Vicksburg Post via AP
    Members of the US Army Corps of Engineer Research Development Centre’s Directorate of Public Works construct two temporary hospital room prototypes in Vicksburg. The Vicksburg Post via AP
  • Carol Talkington helps Terri Bonasso tape a notice on the emergency room door following a vigil at the closing of the Fairmont Regional Medical Centre in Fairmont. Times-West Virginian via AP
    Carol Talkington helps Terri Bonasso tape a notice on the emergency room door following a vigil at the closing of the Fairmont Regional Medical Centre in Fairmont. Times-West Virginian via AP
  • A motel sign is lit along a quiet Sunset Boulevard at dusk amid the coronavirus pandemic on March 31, 2020 in Los Angeles. AFP
    A motel sign is lit along a quiet Sunset Boulevard at dusk amid the coronavirus pandemic on March 31, 2020 in Los Angeles. AFP
  • Democratic presidential candidate Joe Biden speaks during a virtual press briefing on March 25, 2020. Bloomberg
    Democratic presidential candidate Joe Biden speaks during a virtual press briefing on March 25, 2020. Bloomberg

But the Democratic challenger, Jill Karofsky, won by a large margin in a state that typically sees narrow victories on either side. Even if voters were punishing Republicans for their outrageous election shenanigans or the outcome was skewed by greater interest in the Democratic primary, this stunning result suggests that Republicans in general and Mr Trump in particular are in deep trouble in this crucial swing state.

And then there is the coronavirus pandemic. The Trump presidency sailed through three years virtually crisis-free, only to be hit by a maelstrom. The convulsion presents massive challenges but also huge political opportunities.

It wiped out Mr Trump’s main re-election pitch – a strong economy, albeit burdened with vast public and private debt, that he inherited from Mr Obama and extended – yet the pandemic was an extraordinary opportunity for him to rapidly scramble perceptions by improbably uniting the country around his leadership. Americans know they only have one president, and when a major crisis strikes, they overwhelmingly root for their national leader because they love their country.

Unfortunately, Mr Trump does not know how to unite. Dividing is his metier. And he does not know or care about governance, although he is a masterful campaigner. Predictably, then, he produced none of the leadership, in either words or deeds, that could have won him the potential widespread respect and gratitude that was suddenly available.

In the furnace of calamity, Mr Trump could have refashioned himself as a strong and inspiring, or at least effective, leader. To say the least, that has not happened.

He has even struggled to keep his story straight on any aspect of the crisis, including when he was informed about the virus, how seriously to take it, and what his role should and should not be.

Most recently, he abruptly shifted from asserting “total authority” and complaining about a “mutiny” by Democratic state governors, to rejecting any responsibility whatsoever and insisting states must make all key decisions.

Then he attacked Democratic state governments that are following his own social distancing recommendations, ominously tweeting "LIBERATE MINNESOTA!" followed by Michigan and Virginia. None of these states meet his own guidelines for re-opening.

But by siding with angry right-wingers railing against his own mitigation policies and condemning Democratic-led state governments, he is establishing a narrative of blame he may hope will allow him to escape responsibility for this calamitous failure even though there has been no national coronavirus strategy. "State governments failed you, not I," is the emerging message.

Still, Mr Trump’s poll numbers are falling. His campaign just issued a telling letter claiming that Democrats are preparing to "steal the election". That's how bleak his re-election prospects are starting to look.

Hussein Ibish is a senior resident scholar at the Arab Gulf States ­Institute in Washington

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.”

Fireball

Moscow claimed it hit the largest military fuel storage facility in Ukraine, triggering a huge fireball at the site.

A plume of black smoke rose from a fuel storage facility in the village of Kalynivka outside Kyiv on Friday after Russia said it had destroyed the military site with Kalibr cruise missiles.

"On the evening of March 24, Kalibr high-precision sea-based cruise missiles attacked a fuel base in the village of Kalynivka near Kyiv," the Russian defence ministry said in a statement.

Ukraine confirmed the strike, saying the village some 40 kilometres south-west of Kyiv was targeted.

If you go

The flights
Etihad (etihad.com) flies from Abu Dhabi to Luang Prabang via Bangkok, with a return flight from Chiang Rai via Bangkok for about Dh3,000, including taxes. Emirates and Thai Airways cover the same route, also via Bangkok in both directions, from about Dh2,700.
The cruise
The Gypsy by Mekong Kingdoms has two cruising options: a three-night, four-day trip upstream cruise or a two-night, three-day downstream journey, from US$5,940 (Dh21,814), including meals, selected drinks, excursions and transfers.
The hotels
Accommodation is available in Luang Prabang at the Avani, from $290 (Dh1,065) per night, and at Anantara Golden Triangle Elephant Camp and Resort from $1,080 (Dh3,967) per night, including meals, an activity and transfers.

 


 

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
UAE currency: the story behind the money in your pockets

First Person
Richard Flanagan
Chatto & Windus 

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

UNSC Elections 2022-23

Seats open:

  • Two for Africa Group
  • One for Asia-Pacific Group (traditionally Arab state or Tunisia)
  • One for Latin America and Caribbean Group
  • One for Eastern Europe Group

Countries so far running: 

  • UAE
  • Albania 
  • Brazil 
Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Red flags
  • Promises of high, fixed or 'guaranteed' returns.
  • Unregulated structured products or complex investments often used to bypass traditional safeguards.
  • Lack of clear information, vague language, no access to audited financials.
  • Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
  • Hard-selling tactics - creating urgency, offering 'exclusive' deals.

Courtesy: Carol Glynn, founder of Conscious Finance Coaching

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Price: base / as tested: From Dh632,225

Engine: 5.2-litre V10

Gearbox: Seven-speed automatic

Power: 540hp @ 8,250rpm

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Fuel economy, combined: 12.4L / 100km