Red Bull play down claims angry Mark Webber will quit team at end of the season


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Red Bull have dismissed claims that Mark Webber's days with the team are numbered in the aftermath of Sunday's controversial Malaysian Grand Prix.

Webber, out of contract at the end of the season, was left fuming as teammate Sebastian Vettel ignored team orders to win in Sepang, a move which has since brought the German widespread criticism.

Flavio Briatore, a member of Webber's management team and former F1 team principal, reacted by claiming Webber and Vettel's relationship was beyond repair and that he expected the two "enemies" to be parted at the end of the season.

But Red Bull today insisted it was too soon to speculate on the team's likely line-up for next season.

"It's pure speculation that Mark will not drive with the team in 2014," Red Bull said .

"Mark's contract has been renewed for the last few years on an annual basis - he has continually chosen to drive for the team each year and the team has similarly wanted to continue working with him as he is an excellent driver and a competitive racer.

"We are two races into the current season and it's far too early to be talking about 2014."

The reigning world champion overtook the 36-year-old despite being instructed not to by the team because of the need to look after the tyres and save fuel.

Webber had turned his engine down in response to the orders from the pitfall and was furious with the 25-year-old German for putting himself above the team.

Others, including Briatore, questioned who was really in charge at Red Bull.

The Italian, who was banned from Formula One after the Renault team he led were found to have ordered Brazilian Nelson Piquet junior to crash deliberately to help his team mate Fernando Alonso, accused Horner of weakness in a radio chat show in Italy.

But Red Bull last night hit back, saying: "A 'weak' team principal would be unable to steer a team to three consecutive world championships and oversee and manage the extensive team work that goes into this achievement - while managing two talented racers.

"This feat has only ever been achieved by four teams in the entire history of the sport."

The team added that the pairing of Webber and Vettel had won 35 races, taken 80 podiums and 13 one-two finishes since their first season together in 2009.

"This successful period includes some spells of intense on-track rivalry between the two drivers, which began in Turkey 2010 and has seen both drivers ignoring team orders at different times," it said.

"The team has managed the situation each time in its own way behind closed doors."

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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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The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.

It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.

The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.

The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.