Yemen's president Abd-Rabbu Mansour Hadi attends the 28th Ordinary Summit of the Arab League at the Dead Sea, Jordan March 29, 2017. Mohammad Hamed / Reuters
Yemen's president Abd-Rabbu Mansour Hadi attends the 28th Ordinary Summit of the Arab League at the Dead Sea, Jordan March 29, 2017. Mohammad Hamed / Reuters

Yemen’s war is a global concern



When the Arab League, gathered in Amman, made its final statement on Wednesday, the members unanimously declared that they “reject any intervention in the internal affairs of Arab countries”. There is only one country they were accusing: Iran.

So serious has Iran’s interference in the Middle East become, and particularly in the flashpoint of Yemen, that the United States is considering backing an Arab military plan to retake the Red Sea port city of Hodeidah, currently in the hands of the Iranian-backed Houthis. American involvement is necessary and it is in the interests of the US itself, because Iran’s influence in the Yemen war is creating a significant threat not only to Yemen and the Gulf states, but to the wider world beyond it.

An example of this came over the weekend, when Al Qaeda in Yemen admitted carrying out a suicide bombing on a government building in southern Yemen. Before the conflict, the Yemeni government and the US were partners in seeking to rid Yemen of Al Qaeda, which found places to operate in its ungoverned expanses. As the Yemen war has escalated, Al Qaeda have continued to seek to expand their reach. Without a solution, they will continue to grow, seeking to attack targets not only in Yemen, but in the wider world – Al Qaeda has a track record of seeking to target international aviation.

It also appears that the Houthis and their Iranian backers are looking to internationalise the conflict on the western side of Yemen, along the Red Sea coasts. The Bab Al Mandeb is one of the world’s most strategic waterways and a crucial chokepoint for international shipping. In the past few months, anti-ship cruise missiles, sea mines and drone boats have been used there. The US has also warned commercial ships that it believes the Houthis have laid mines around the port of Mokha, which could also pose a threat.

All of which shows why the conflict is Yemen is already an international conflict. The Iranians appear determined to affect the livelihoods of Yemenis, draw in Gulf countries and disrupt global shipping. Only a concerted effort by the Arab countries and their allies internationally, especially the US, can push them out. What happens in Yemen concerns the whole world; it is not a problem for Yemen alone.

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The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
The specs

Engine: 1.5-litre 4-cylinder petrol

Power: 154bhp

Torque: 250Nm

Transmission: 7-speed automatic with 8-speed sports option 

Price: From Dh79,600

On sale: Now

The specs

  Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now

How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

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THREE
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Joker: Folie a Deux

Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

Rating: 2/5

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UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

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COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4