At least 43 killed in Philippines earthquake



At least 43 people were killed when a powerful earthquake triggered landslides, collapsed homes and smashed bridges across the central Philippines, authorities said.

The 6.8-magnitude earthquake hit a narrow strait between the heavily populated island provinces of Negros and Cebu around lunchtime, with aftershocks nearly as strong causing further panic throughout the day.

The worst-hit area appeared to be Guihulngan, a coastal city in Negros close to the epicentre, with 39 people confirmed killed there, according to Colonel Francisco Patrimonio, a military commander.

He and Philippine police said most of the victims had died as landslides buried homes, while others in the city of 100,000 people died as houses collapsed under the pressure of the earthquake itself.

"Some private homes collapsed along with our courthouse and parts of the public market. We got people out of the buildings but we could not evacuate the homes," Senior Inspector Alvin Futalan said.

Four other people were confirmed killed in other parts of Negros, where power outages were widespread and bridges as well as other vital infrastructure had been damaged, according to Col Patrimonio.

He and other government officials warned the death toll may rise, with reports of dozens of other people injured or missing in Guihulngan and nearby areas.

However, they said it was impossible to determine the exact number of missing, as power and many telephone lines in the region were down and roads to the mountainous areas were impassable because of the landslides.

Col Patrimonio said that authorities were having to deal with looting, as well as the immediate rescue efforts, as some people took advantage of the chaos.

"Looting is now rampant in Guihulngan which forced us to commit [more troops] with the Philippine national police," he said.

In Cebu, a popular tourist destination and the country's second biggest city with 2.3 million residents, hotel guests scrambled to higher floors as unfounded rumours that a huge tsunami was bearing down spread by text message.

"There is news going around of tsunami waves, so we are doing our best to keep everybody calm," Barbi Patino, a spokesman for the 17-storey Parklane International Hotel, said.

Benito Ramos, the civil defence chief, said the violent shaking of buildings in Cebu City — 50 kilometres from the epicentre — led to broken windows and cracks on some walls.

But no high-rises sustained major damage and no deaths were reported in the city.

Pedro Baldomino, a student in Cebu City, said he saw many office workers leaving their buildings after a public announcement on radio warned people to brace for expected aftershocks.

"I was having lunch when the ground shook. Water spilt from glasses and plates clanked. Some of the diners rushed outside, some of us stayed underneath the tables," he said.

Almost four hours after the earthquake struck, a strong 6.2-magnitude aftershock hit the central Philippines, and then another struck measuring 6.0, causing further panic.

Over 200 less-powerful aftershocks were detected throughout the day, said Angelo Tiongson, the provincial disaster monitoring executive director.

Philippine government seismologists initially raised a precautionary tsunami alert, but lowered it two hours later.

The Hawaii-based Pacific Tsunami Warning Centre said there was no danger of a widespread destructive tsunami.

The Philippines sits on the Pacific "Ring of Fire" — a belt around the Pacific Ocean where friction between shifting tectonic plates causes frequent earthquakes and volcanic activity.

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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If you go

  • The nearest international airport to the start of the Chuysky Trakt is in Novosibirsk. Emirates (www.emirates.com) offer codeshare flights with S7 Airlines (www.s7.ru) via Moscow for US$5,300 (Dh19,467) return including taxes. Cheaper flights are available on Flydubai and Air Astana or Aeroflot combination, flying via Astana in Kazakhstan or Moscow. Economy class tickets are available for US$650 (Dh2,400).
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