Brazil ends search for bodies


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Brazil's military has ended its search for more bodies and debris from an Air France jet that plunged into the Atlantic nearly four weeks ago. The 26-day operation, which also had the help of French vessels and French, Spanish and US aircraft, recovered 51 bodies of the 228 people who were on board the Airbus A330 that came down on June 1, air force spokesman Lieutenant Colonel Henry Munhoz said. "It has been nine days since we have located bodies," stressed Lt Col Munhoz, which led Brazil to conclude that "it is impossible to recover more dead bodies or remains in the search area".

Between June 12 and 26, only two bodies were recovered, the last being on June 17, he said. The bodies were handed over to federal police experts in Recife for identification. "What we have today in the sea is negligible," Lt Col Munhoz added, speaking in the northeastern city of Recife. More than 600 pieces have also been recovered from the plane, most of which has been delivered to a French-led technical research team.

But a search will continue for the aircraft's black boxes that are set to continue emitting homing signals until July 2. The search is to be led by France, which has already contributed a nuclear submarine and ships to the effort. The cause of the disaster has not been established. The French maritime research vessel Pourquoi Pas, the French nuclear submarine Emeraude and two high-sea vessels equipped with sonars are taking part in the deep-sea search for the vital data and voice recorders of Flight 447, which was carrying passengers and crew from Rio de Janeiro to Paris.

The mini-submarine Nautile, which can operate at a depth of six kilometers and was used by research teams who explored the wreck of the Titanic, has been taken to the debris zone on board the Pourquoi Pas and was to be deployed once the signal from the black boxes was detected. The boxes would help investigators piece together the final minutes of the ill-fated flight that went down during a storm as it was flying through turbulence.

No distress call was received from the pilots, but there was a series of 24 automated messages sent by the plane in the final minutes of the doomed flight. French investigators probing the crash have said that the airspeed sensors, or pitot probes, had been feeding inconsistent readings to the cockpit. Conflicting airspeed data can cause the autopilot to shut down and in extreme cases lead the plane to stall or fly dangerously fast, possibly causing a high-altitude breakup.

But the Bureau d'Enquetes et d'Analyses (BEA), a French investigating agency, along with Airbus and Air France, has said there is as yet no firm evidence linking the speed monitors and the crash of the jetliner. Air France has upgraded all sensors on its long-haul fleet as a precautionary measure after protests from pilots. The crash was the worst in Air France's 75-year history. *AFP

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What drives subscription retailing?

Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.

The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.

The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.

The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.

UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.

That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.

Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.

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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