FIA: our budget cuts would have saved BMW

The International Automobile Federation (FIA) today claimed BMW Sauber's withdrawal from Formula One could have been avoided if initial planned cost cuts had been imposed. The team confirmed they are to pull out at the end of the season, ending their four-year involvement as a fully-fledged manufacturer. The news comes just eight months after Honda announced their exit, which sparked the FIA into action, and ultimately a war with the Formula One Teams' Association (FOTA) over funding and the future direction of F1. The FIA president Max Mosley's introduction of a £40 million (Dh240m) budget cap resulted in a bitter feud with the teams, who appeared to win the day as financial reductions will be scaled down to 1990s levels, but only by 2011. The FIA, unsurprised by BMW's decision following a management board meeting yesterday, believe if there had not been such opposition to their plans then the Munich-based team would likely have continued. "The FIA regrets the announcement of BMW's intended withdrawal from Formula One, but is not surprised by it," read an FIA statement. "It has been clear for some time that motorsport cannot ignore the world economic crisis. "Car manufacturers cannot be expected to continue to pour large sums of money into Formula One when their survival depends on redundancies, plant closures and the support of the taxpayer. "This is why the FIA prepared regulations to reduce costs drastically. "These measures were needed to alleviate the pressure on manufacturers following Honda's withdrawal, but also to make it possible for new teams to enter. "Had these regulations not been so strongly opposed by a number of team principals, the withdrawal of BMW and further such announcements in the future might have been avoided. "Nevertheless, as a result of a sustained cost-cutting campaign by the FIA, new measures are in the process of being agreed which should make it easier for new teams to enter and enable existing ones to participate on much reduced budgets. "It is no secret these measures do not go as far as the FIA would have liked, but a compromise was needed in the interests of harmony in the sport. "Hopefully it will be enough to prevent further withdrawals and provide a solid foundation for Formula One. "As the guardian of the sport, the FIA is committed to ensuring Formula One remains financially sustainable for all competing teams and it will always act to ensure that this remains the case." Suggestions Toyota might follow have been alleviated by comments today from a Toyota Motor Corporation spokesman. He said: "Through cost reduction we will continue our Formula One activities. Our situation remains unchanged." There remains a possibility Renault could also go, especially as it has been rumoured team boss Flavio Briatore has been attempting to raise the finances to continue as an independent team. It would appear, though, despite the planned cost cuts, BMW Sauber feel the resources required to compete in F1 can be utilised in other areas of the company. FOTA, meanwhile, have offered their full support to BMW Sauber in the hope of seeing the team continue in F1, just as the body helped Brawn GP onto the grid after Honda's demise. The FOTA secretary general Simone Perillo said: "FOTA teams have immediately consulted each other and are ready to assure all the necessary support to the Swiss-based team, whose membership in the association is confirmed, to continue its involvement in F1. "It is worth mentioning a professional work has already begun within FOTA, aimed at increasing the involvement of the fans and at improving the F1 show. "Among those initiatives, one that could be interesting is the introduction of a third car on the grid. "FOTA will seek the opinions of all the most relevant stakeholders in order to exchange ideas and define proposals for the future of Formula One. "FOTA teams now wish to have the necessary certainty and stability within Formula One in order to focus on those fundamental priorities for the future."

* PA Sport

UAE currency: the story behind the money in your pockets

UAE coins

Dh5 note

Dh10 note

Dh20 note

How Voiss turns words to speech

The device has a screen reader or software that monitors what happens on the screen

The screen reader sends the text to the speech synthesiser

This converts to audio whatever it receives from screen reader, so the person can hear what is happening on the screen

A VOISS computer costs between $200 and $250 depending on memory card capacity that ranges from 32GB to 128GB

The speech synthesisers VOISS develops are free

Subsequent computer versions will include improvements such as wireless keyboards

Arabic voice in affordable talking computer to be added next year to English, Portuguese, and Spanish synthesiser

Partnerships planned during Expo 2020 Dubai to add more languages

At least 2.2 billion people globally have a vision impairment or blindness

More than 90 per cent live in developing countries

The Long-term aim of VOISS to reach the technology to people in poor countries with workshops that teach them to build their own device

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.”

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

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

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

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

Pharaoh's curse

British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.

FIA: our budget cuts would have saved BMW

The FIA claim BMW Sauber's withdrawal from Formula One could have been avoided if the planned cut in costs had been imposed.

UAE currency: the story behind the money in your pockets

How Voiss turns words to speech

Who's who in Yemen conflict

Pharaoh's curse