A Chinese baby undergoes treatment at a hospital after taking tainted milk powder, in Hefei, eastern China's Anhui province on Sept 21 2008.
A Chinese baby undergoes treatment at a hospital after taking tainted milk powder, in Hefei, eastern China's Anhui province on Sept 21 2008.
A Chinese baby undergoes treatment at a hospital after taking tainted milk powder, in Hefei, eastern China's Anhui province on Sept 21 2008.
A Chinese baby undergoes treatment at a hospital after taking tainted milk powder, in Hefei, eastern China's Anhui province on Sept 21 2008.

13,000 babies in hospital for China milk scandal


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BEIJING // The number of Chinese infants sick in hospital after drinking tainted milk formula has leapt to nearly 13,000 and Premier Wen Jiabao threatened harsh punishment for culprits in the latest blight on the "made-in-China" brand. The Health Ministry said the toll of children ill from milk powder contaminated with the industrial chemical melamine had risen from a previously announced total of 6,244, which included many who had left hospital, to 12,892.

Another 39,965 children had "received clinical treatment and advice" before being sent home. More than 80 per cent of the sick were aged under two. So far, four deaths have been blamed on toxic milk powder causing kidney stones and agonising complications, and 104 children are in a serious condition. Mr Wen visited hospitals in the national capital in a bid to reassure an anxious public that his government was acting.

"The public is worried, doctors are worried, and we're also worried," he told parents and staff, according to the state-run Xinhua news agency. "The most crucial point is that after a clean-up there can be no problems at all with newly produced milk products. If there are fresh problems, they must be even more sternly punished under the law." China's food quality watchdog has said it found melamine in nearly 10 per cent of milk and drinking yoghurt samples from three major dairy companies: Mengniu Dairy, the Inner Mongolia Yili Industrial Group and the Bright group.

By Saturday, Chinese consumers had claimed refunds for 304 tonnes of dairy products, the China Daily reported. Nitrogen-rich melamine can be added to watered-down milk to fool quality checks, which often use nitrogen levels to measure protein. The health ministry stressed that no cases of illness have been found related to liquid milk. Panicked parents have crowded China's hospitals and demanded redress since officials and the Sanlu Group, the country's biggest maker of infant milk powder, disclosed the threat.

Sanlu failed to publicly disclose the problem for at least a month, throughout August when Beijing hosted the Olympic Games, officials have said. The government has promised free treatment for struck children, but some parents said they worried about costs and long-term complications. Zhou Zhijun, a mother from south China's Hunan province, said she took her wailing, increasingly thin daughter to hospitals at least three times from June to late August before doctors diagnosed a kidney stone.

"All those visits and checks cost 20,000 yuan (Dh10,726), and I still don't know who will pay for that," she said, adding that her 15-month-old baby had drunk Sanlu milk powder. "Also what if there are complications and problems later? Who'll pay for that?" Other countries and regions have clamped down on China's milk products. Markets that have banned or recalled these products include Brunei, Singapore, Malaysia, Japan, Hong Kong and Taiwan.

*Reuters

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The major Hashd factions linked to Iran:

Badr Organisation: Seen as the most militarily capable faction in the Hashd. Iraqi Shiite exiles opposed to Saddam Hussein set up the group in Tehran in the early 1980s as the Badr Corps under the supervision of the Iran Revolutionary Guards Corps (IRGC). The militia exalts Iran’s Supreme Leader Ali Khamenei but intermittently cooperated with the US military.

Saraya Al Salam (Peace Brigade): Comprised of former members of the officially defunct Mahdi Army, a militia that was commanded by Iraqi cleric Moqtada Al Sadr and fought US and Iraqi government and other forces between 2004 and 2008. As part of a political overhaul aimed as casting Mr Al Sadr as a more nationalist and less sectarian figure, the cleric formed Saraya Al Salam in 2014. The group’s relations with Iran has been volatile.

Kataeb Hezbollah: The group, which is fighting on behalf of the Bashar Al Assad government in Syria, traces its origins to attacks on US forces in Iraq in 2004 and adopts a tough stance against Washington, calling the United States “the enemy of humanity”.

Asaeb Ahl Al Haq: An offshoot of the Mahdi Army active in Syria. Asaeb Ahl Al Haq’s leader Qais al Khazali was a student of Mr Al Moqtada’s late father Mohammed Sadeq Al Sadr, a prominent Shiite cleric who was killed during Saddam Hussein’s rule.

Harakat Hezbollah Al Nujaba: Formed in 2013 to fight alongside Mr Al Assad’s loyalists in Syria before joining the Hashd. The group is seen as among the most ideological and sectarian-driven Hashd militias in Syria and is the major recruiter of foreign fighters to Syria.

Saraya Al Khorasani:  The ICRG formed Saraya Al Khorasani in the mid-1990s and the group is seen as the most ideologically attached to Iran among Tehran’s satellites in Iraq.

(Source: The Wilson Centre, the International Centre for the Study of Radicalisation)

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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Day 2, Dubai Test: At a glance

Moment of the day Pakistan’s effort in the field had hints of shambles about it. The wheels were officially off when Wahab Riaz lost his run up and aborted the delivery four times in a row. He re-measured his run, jogged in for two practice goes. Then, when he was finally ready to go, he bailed out again. It was a total cringefest.

Stat of the day – 139.5 Yasir Shah has bowled 139.5 overs in three innings so far in this Test series. Judged by his returns, the workload has not withered him. He has 14 wickets so far, and became history’s first spinner to take five-wickets in an innings in five consecutive Tests. Not bad for someone whose fitness was in question before the series.

The verdict Stranger things have happened, but it is going to take something extraordinary for Pakistan to keep their undefeated record in Test series in the UAE in tact from this position. At least Shan Masood and Sami Aslam have made a positive start to the salvage effort.

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