How the US voters could surprise us this time


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In the build-up to the 2006 US mid-term elections, which global media coverage at the time suggested would be a referendum on George W Bush's poor handling of the war in Iraq, I found myself in Las Vegas listening to his predecessor Bill Clinton address a Democratic Party campaign rally.

Mr Clinton was in Las Vegas to endorse a candidate and his speech focused on issues close to home such as local propositions being voted on. Iraq wasn’t mentioned once. Given the context, this is perhaps understandable but I found it surprising given all I had heard and seen in the preceding weeks on TV about what voters in America supposedly cared most about.

The Democrats were subsequently very successful in those elections, winning control of both houses of Congress. From outside the country, the pre-election narrative about the dissatisfaction over the Iraq war was seemingly confirmed. I remained unconvinced. It appeared more likely that Democrats struck the right chords with voters on the local issues that would impact their day-to-day lives far more immediately than whether a foreign conflict was being mishandled thousands of kilometres away.

George W Bush and the Republican Party suffered setbacks in the 2006 US mid-term elections, but not because of the Iraq war. AP Photo
George W Bush and the Republican Party suffered setbacks in the 2006 US mid-term elections, but not because of the Iraq war. AP Photo

My experience in 2006 showed me that you could never be too certain about what could be dominating the minds of US voters from such a distance away as the UAE. It also taught me to try to look past the media noise at the national and international level.

In the 2020 presidential election, so far much of the coverage has been about the coronavirus and President Donald Trump's response to the pandemic as the number of new cases in the US continues to rise. Covid-19 has wreaked havoc on the normal course of work and commerce. Millions of jobs have been lost and many people have been pushed into poverty in America. Many more are at risk of going hungry.

While Mr Trump has repeatedly touted what he believes to be a strong performance by his administration during his term in office, his Democratic rival Joe Biden has argued that worsening economic conditions are a direct result of his approach to the coronavirus. There have been more than 9.3 million recorded cases of infection in the US. While some 6 million have recovered, there have been more than 235,000 deaths.

It is a sorry story. One that has been given immense international media coverage, including of the many controversial comments and actions taken by Mr Trump – in the process himself becoming one of the millions infected and recovered. However, the coronavirus and the handling of the pandemic is not the most important matter for voters ahead of Tuesday's election, according to some opinion polls.

Supporters of US President Donald Trump gather for a "Trump Parade" in the state of Iowa on Saturday. AFP
Supporters of US President Donald Trump gather for a "Trump Parade" in the state of Iowa on Saturday. AFP

The economy is the No 1 issue for Americans, according to a survey by Pew Research Centre in October. The economy is well ahead of other issues such as health care and Supreme Court appointments, which in turn take precedence over Covid-19.

Democrats seem to have decided that the economy is so important to voters that they are angry enough about the effect of the pandemic to vote out their Republican rivals, including Mr Trump. Superficially, this makes sense. Massive job losses and slower business activity in the months since March should dent, in the minds of voters, Mr Trump’s claims of how well the economy is doing.

The data, however, undermines this argument. The country's economic performance in the third quarter was robust thanks to $2 trillion in stimulus spending passed by Congress in March. This momentum will eventually peter out without further fiscal support, but Mr Trump promises he will deliver more if he wins. But even before the pandemic, many Americans have been benefitting and saving from Mr Trump's tax cuts for more than two years now. Largely, they banked rather than spent the money too.

People gather to eat at Palermo Pizzeria and Restaurant on Staten Island in New York City. The US economy has picked up lately. Reuters
People gather to eat at Palermo Pizzeria and Restaurant on Staten Island in New York City. The US economy has picked up lately. Reuters
I worry that we may all feel a little foolish come Wednesday, once the outcome of the election begins to emerge

Combined with stimulus cheques and higher than usual unemployment benefits during the pandemic, that has put money in their pockets over the summer. So, Americans may not be immediately feeling as if the economy is doing as badly as the Democrats – and the media coverage – say it is. They may ultimately reward Mr Trump for the performance of the past few months rather than punish him for a disaster that may only come to pass in the months ahead.

Not everyone in America sees Mr Trump’s time in office on the same terms as his opponents. Most will, of course, acknowledge the mistakes and the damage his administration has wrought at times. Yet each voter has the considerable weight of their own personal circumstances to factor into their decision on who to vote for. Added to that is the fact that we are going through the most uncertain period in a generation. Voters are being asked to balance what they cannot know with what they do not yet know. It is too much to ask.

Bill Clinton won the 1992 US presidential election on the mantra of 'it’s the economy, stupid'. Getty Images
Bill Clinton won the 1992 US presidential election on the mantra of 'it’s the economy, stupid'. Getty Images

We should begin to accept the idea that, with a significant proportion of American voters doing OK in terms of their personal finances, they would be unlikely to vote for an additional change of circumstances.

Going back once again to Mr Clinton; in 1992, during a campaign that saw him beat incumbent George HW Bush to win the White House, Mr Clinton’s strategist James Carville famously adopted the mantra of “it’s the economy, stupid”. In 2020, this phrase may bear repeating and I worry that we may all feel a little foolish come Wednesday, once the outcome of the election begins to emerge.

Mustafa Alrawi is an assistant editor-in-chief at The National

French business

France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.

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Singham Again

Director: Rohit Shetty

Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone

Rating: 3/5

PROFILE

Name: Enhance Fitness 

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Based: UAE 

Employees: 200 

Amount raised: $3m 

Investors: Global Ventures and angel investors 

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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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Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

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Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

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UAE currency: the story behind the money in your pockets
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The Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

The drill

Recharge as needed, says Mat Dryden: “We try to make it a rule that every two to three months, even if it’s for four days, we get away, get some time together, recharge, refresh.” The couple take an hour a day to check into their businesses and that’s it.

Stick to the schedule, says Mike Addo: “We have an entire wall known as ‘The Lab,’ covered with colour-coded Post-it notes dedicated to our joint weekly planner, content board, marketing strategy, trends, ideas and upcoming meetings.”

Be a team, suggests Addo: “When training together, you have to trust in each other’s abilities. Otherwise working out together very quickly becomes one person training the other.”

Pull your weight, says Thuymi Do: “To do what we do, there definitely can be no lazy member of the team.” 

UJDA CHAMAN

Produced: Panorama Studios International

Directed: Abhishek Pathak

Cast: Sunny Singh, Maanvi Gagroo, Grusha Kapoor, Saurabh Shukla

Rating: 3.5 /5 stars

UAE currency: the story behind the money in your pockets