Typhoon Saola drenches China's key Hong Kong and Guangdong regions


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Typhoon Saola made landfall in the southern Chinese province of Guangdong on Saturday and drenched a vast region.

Powerful winds lashed nearby Shenzhen, Hong Kong and Macau, killing at least one and leaving a trail of destruction and flooding in many areas.

Hong Kong and Guangdong had cancelled hundreds of flights on Friday and shut businesses, schools and financial markets as Saola edged closer.

With wind speeds of more than 200kph, Saola was among the strongest storms to hit the region since 1949.

It made landfall in Zhuhai city with gusts slowing to about 160kph.

One person was killed in Shenzhen after a tree fell and hit their vehicle, local media reported.

Railway operations in Guangdong were allowed to gradually resume from 8.30am local time, the railway operator said.

Despite weakening, Saola continues to affect the region, Chinese authorities said.

Hong Kong imposed its highest hurricane storm signal 10 on Friday night, lowering it to 8 by Saturday morning.

More than 500 people sought refuge in government shelters while more than 50 people were admitted to hospitals due to the typhoon, the government said.

China's national weather office predicted Saola “may become the strongest typhoon to make landfall in the Pearl River Delta since 1949“, referring to a low-lying region that includes Hong Kong, Macau and Guangdong province.

In eastern Heng Fa Chuen, a coastal residential area that was the site of devastation during 2018's Typhoon Mangkhut, officers in orange vests urged storm-watchers to go home, as trees leaned sideways from the heavy gusts.

“Members of the public should stay on high alert. You are advised to remain where you are if protected and be prepared for destructive winds of Saola,” the Hong Kong weather observatory had warned.

It added that “the maximum water level may reach a historical record”, warning that “there will be serious flooding”.

In Guangdong province, authorities evacuated more than 780,000 people from high-risk areas, while eastern Fujian province saw more than 100,000 moved to safer ground.

Southern China is frequently hit in summer and autumn by typhoons that form in the warm oceans east of the Philippines and then travel west.

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UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves. 

The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.

Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.

A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.

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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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North Korea, Philippines, Bahrain, Jordan, Yemen, Turkmenistan

Who is Allegra Stratton?

 

  • Previously worked at The Guardian, BBC’s Newsnight programme and ITV News
  • Took up a public relations role for Chancellor Rishi Sunak in April 2020
  • In October 2020 she was hired to lead No 10’s planned daily televised press briefings
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  • Ms Stratton, 41, is married to James Forsyth, the political editor of The Spectator
  • She has strong connections to the Conservative establishment
  • Mr Sunak served as best man at her 2011 wedding to Mr Forsyth
Updated: September 02, 2023, 6:01 PM