Australia PM Gillard calls for August election


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Australia's prime minister Julia Gillard called an August 21 election today just weeks after taking power, vowing to tackle the flashpoint issues of refugees, the economy and global warming. Ms Gillard, 48, said she would ask the Australian people to endorse her leadership after she deposed the former prime minister Kevin Rudd in a party coup. "Today I seek a mandate from the Australian people to move Australia forward," Ms Gillard said, officially kicking off the five-week campaign.

"This election I believe presents Australians with a very clear choice ... whether we move Australia forward or go back." Australia's first woman prime minister said the nation had "come too far as a country and evolved too much as a society to risk the kind of backward looking leadership" offered by her conservative opponent Tony Abbott. The former industrial lawyer laid out her case for re-election on the issues of asylum seekers, economic management and climate change, painting herself as a progressive optimist who was "asking the Australian people for their trust."

But, after just three weeks in office in which she insisted she had made some "big strides forward", she warned it would be a "very close election" and that a "close, tough, hard-fought campaign" lay ahead. She faces an uphill battle to deliver the centre-left ruling Labour party a second three-year term in office, after a spectacular fall from the dizzying heights of popularity it enjoyed for its first two years in power.

The likely bloody campaign pits self-confessed atheist Gillard against scrappy former student boxer Abbott, head of the Liberal-National coalition, who played a key role in sinking Mr Rudd's career. Once regular sparring partners on commercial breakfast television, Ms Gillard said she expected Mr Abbott to prove a "robust" opponent. "We are ready to govern," a confident Mr Abbott told party faithful in Queensland ahead of the announcement.

"This is a bad government and it deserves to lose." The opposition would need to win an additional 17 seats, or cause a swing of 2.3 per cent, to return to power, less than three years after their 11 years in rule were ended by Mr Rudd's landslide election victory in November 2007. Formerly his deputy, Ms Gillard has enjoyed a strong opinion poll surge since succeeding Mr Rudd, who in six months went from being one of the most popular prime ministers in Australian history to being discarded.

The key factors that led to his political implosion were his decision to shelve a carbon emissions trading scheme after Mr Abbott vowed to oppose it and a plan to impose a much-disputed 40 per cent tax on mining profits. After being sworn in on June 24, Ms Gillard began defusing the political timebombs she inherited, quickly striking a deal with major miners which scrapped the mining super tax, replacing it with a watered down version.

She pledged to fight climate change and is widely expected to announce a new plan to put a price on carbon emissions during the electoral campaign. But her bid to neutralise the sensitive issue of stemming the flow of asylum seekers to Australia by outsourcing their processing to East Timor backfired when legislators there dismissed the plan. And Ms Gillard has come under criticism from the opposition and media over the brutal manner in which she rose to power.

"They executed the elected prime minister of Australia because they say the government lost its way," Mr Abbott said in Queensland, a key battleground state. "But what we have seen from this government is a seamless transition from incompetence to incompetence." A Nielsen and Galaxy opinion poll last week gave Labour a narrow but election-winning 52-48 percent lead over the opposition coalition, up from early June.

The election for members of the lower House of Representatives and half of the Senate is expected to be played out in key marginal seats in the populous eastern states of Queensland, New South Wales and Victoria. * AFP

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Favourite place in Abu Dhabi: NYUAD campus

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- China will fall dramatically from a peak of 2.4 billion in 2024 to 732 million by 2100

- an average of 2.1 children per woman is required to sustain population growth

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Company name/date started: Abwaab Technologies / September 2019

Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO

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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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Date of launch: November 2018

Founder: Monark Modi

Based: Business Bay, Dubai

Sector: Financial services

Size: Eight employees

Investors: Self-funded to date with $1m of personal savings