Japan Prime Minister Fumio Kishida's Liberal Democratic Party is expected to lose some seats. Reuters
Japan Prime Minister Fumio Kishida's Liberal Democratic Party is expected to lose some seats. Reuters
Japan Prime Minister Fumio Kishida's Liberal Democratic Party is expected to lose some seats. Reuters
Japan Prime Minister Fumio Kishida's Liberal Democratic Party is expected to lose some seats. Reuters

Japan election is first big test for Prime Minister Fumio Kishida


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Japanese voters are casting their ballots in national elections in the first big test for Prime Minister Fumio Kishida.

Up for grabs are 465 seats in the lower house, the more powerful of the two-chamber Japanese Diet, or parliament.

The results will determine if Mr Kishida, 64, has a large enough mandate to tackle a coronavirus-hit economy, an ageing and dwindling population and security challenges from China and North Korea.

His governing Liberal Democratic Party is expected to lose some seats from pre-election levels but maintain a comfortable majority together with its junior coalition partner Komeito.

Mr Kishida was elected prime minister on October 4 after winning the leadership race in his ruling party, as its conservative leaders saw him as a safe status-quo successor to Yoshihide Suga and his influential predecessor Shinzo Abe.

His immediate task has been to rally support for a party weakened by Mr Suga’s perceived high-handed approach to pandemic measures and his insistence on holding the Tokyo Summer Olympics despite widespread opposition.

He dissolved the lower house only 10 days after taking office, called for the election and declared that he wanted a mandate from voters for his government.

The short 17-day campaign period that followed the LDP leadership race, which had dominated media coverage, unfairly gave Mr Kishida’s party an advantage over the opposition, some experts say.

His long-term ambitions will depend on how well he does in the election.

Mr Kishida repeatedly stressed his determination to listen to the people and to address criticism that the nine-year Abe-Suga leadership had resulted in corruption, tamed bureaucrats and muzzled opposing opinions.

The campaign has largely centred on measures to combat Covid-19 and revitalise the economy.

While Mr Kishida’s ruling party stressed the importance of having a stronger military amid worries over China’s growing influence and North Korea’s missile and nuclear threat, opposition parties focused on diversity issues and pushed for gender equality.

Opposition leaders complained that recent LDP governments widened the gap between the rich and the poor, failed to support the economy during the pandemic and stalled gender equality and diversity initiatives.

Most results are expected early on Monday.

The LDP opposes legislation guaranteeing equality for sexual minorities and allowing separate surnames for married couples.

Of the 1,051 candidates, only 17 per cent are women, despite a 2018 law – which has no penalty – promoting gender equality in elections.

Women account for about 10 per cent of parliament, a situation gender rights experts call “democracy without women”.

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Name: Mamo 

 Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua

 Based: Dubai, UAE

 Number of employees: 28

 Sector: Financial services

 Investment: $9.5m

 Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors. 

 

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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Director: James Cameron

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Rating: 4.5/5

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Brief scores:

Toss: Northern Warriors, elected to field first

Bengal Tigers 130-1 (10 ov)

Roy 60 not out, Rutherford 47 not out

Northern Warriors 94-7 (10 ov)

Simmons 44; Yamin 4-4

Juventus v Napoli, Sunday, 10.45pm (UAE)

Match on Bein Sports

Results

5pm: Maiden (PA) Dh80,000 (Turf) 2,200m, Winner: Zalman, Pat Cosgrave (jockey), Helal Al Alawi (trainer)

5.30pm: Maiden (PA) Dh80,000 (T) 1,600m, Winner: Hisham Al Khalediah II, Fernando Jara, Mohamed Daggash.

6pm: Handicap (PA) Dh85,000 (T) 1,600m, Winner: Qader, Adrie de Vries, Jean de Roualle

6.30pm: Abu Dhabi Championship Listed (PA) Dh180,000 (T) 1,600m, Winner: Mujeeb, Fabrice Veron, Eric Lemartinel

7pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 1,600m, Winner: AF Majalis, Tadhg O’Shea, Ernst Oertel

7.30pm: Handicap (TB) Dh90,000 (T) 1,600m, Winner: Shanaghai City, Fabrice Veron, Rashed Bouresly

8pm: Handicap (TB) Dh100,000 (T) 1,400m, Winner: Nayslayer, Bernardo Pinheiro, Jaber Ramadhan

RESULTS

Cagliari 5-2 Fiorentina
Udinese 0-0 SPAL
Sampdoria 0-0 Atalanta
Lazio 4-2 Lecce
Parma 2-0 Roma
Juventus 1-0 AC Milan

Updated: October 31, 2021, 5:12 AM