Schumacher was 'out of line'


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Montreal lived up to its reputation of being a wonderful motor racing circuit on Sunday, unfortunately Michael Schumacher did not live up to his. Schumacher drove a very aggressive race in the Canadian Grand Prix, making contact with a number of drivers. I thought he was out of line on a couple of occasions.

Some of his moves looked like a man on the edge of desperation as he is not used to struggling in a Formula One car. There is a "drivers' agreement" that you can move your line just once to defend when another car is attempting to overtake you. I felt when Felipe Massa was trying to pass him in his Ferrari, Schumacher moved to the middle of the track and then as Massa tried to go past him on the left, he moved back over, squeezing Massa, which led to him breaking his car's front wing against the rear of the Mercedes GP.

I felt that went above the terms of that agreement and there were other cases were he pushed the boundaries of what was acceptable defence as he struggled with grip. The way he forced Robert Kubica's Renault on to the grass was another bad moment for me. But, generally, Montreal gave us another entertaining race. There was a lot of action and overtaking and it was a thoroughly absorbing race in what is turning into a very enjoyable season.

A lot of the drama was caused by the tyre problems the teams had as they struggled with degradation, particularly on the softer tyre, which led to the race being run on a two-stop strategy rather than the usual one stopper for the teams. Driving on worn tyres while trying to keep a good pace is difficult, but it is not impossible, and it does provide an opportunity for drivers to make a difference.

The situation with the tyres was the same for everyone and there is a skill in being able to run to a limit that is quick, but allows you to preserve the tyre and continue to get the grip to enjoy a decent enough pace. You saw different strategies, which added to the intrigue, with Red Bull-Renault keeping Mark Webber on the harder tyre for two stints, which looked at one stage if it could work for the Australian, but he eventually had to be content with fifth, which was not enough for him to keep top spot in the title standings.

Lewis Hamilton and McLaren ultimately did the best job with Hamilton leading home a one-two for the team ahead of Jenson Button and that is how it now is in the drivers' championship table. They did the best job of managing their tyres and were well worth the victory, which was the team's fourth of the season. Hamilton has not always had the best reputation for preserving his equipment, but I think he may have learned a bit from his teammate this year.

It is no secret that Button has always been a smooth driver, who is not hard on his tyres. I would not be surprised to see if Hamilton has looked at Button's technique and has tried to adapt his style a little since the start of the season. Certainly he drove a very mature race and did a great job of looking after those tyres, which is something he may not have been able to do a couple of years ago.

Hamilton is still a young driver, despite already being a world champion, and he is only going to improve as he learns new skills and techniques. I was also impressed with Fernando Alonso and Ferrari, who showed a good return to form and with a bit of luck could have won the race from Hamilton. However, he had problems with lapping slower cars, which led to him being passed by both McLaren drivers.

Ferrari have a development package for the car coming for the next race in Valencia at the end of the month and that is going to be a big race for Alonso. Not only will he be racing in front of his home fans, but it will give a clearer indication of whether he will be able to challenge for a third world title. The Ferrari has shown it can be quick at particular tracks, it is now about showing it can adapt and be quick at every track like the Red Bulls and McLarens.

@Email:sports@thenational.ae

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Another way to earn air miles

In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.

An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.

“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.

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.”

What are NFTs?

Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.

You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”

However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.

This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”

This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.