China honours virus victims with three minutes of reflection


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With air raid sirens wailing and flags at half-mast, China on Saturday held a three-minute nationwide moment of reflection to honour those who have died in the coronavirus outbreak, especially "martyrs" who fell while fighting what has become a global pandemic.

Commemorations took place at 10am in all major cities, but were particularly poignant in Wuhan, the industrial center where the virus was first detected in December.

Wuhan was placed under complete lockdown on January 23 in an effort to stem the spread of the virus and has been lauded as a "heroic city" by the nation's communist leadership for the sacrifices made by its 11 million citizens.

People have gradually been allowed to travel in and out of Wuhan under strict conditions. The quarantine on the city is to be formally lifted on Wednesday.

In Beijing, President Xi Jinping led other top officials, all dressed in black suits with white carnations, as they bowed before a flag at half-mast in the leadership compound of Zhongnanhai.

Sheikh Mohamed bin Zayed tweeted the UAE's respects to China, calling doctors who had lost their lives "heroics".

"We will confront this challenge with determination, sheer will, and a spirit of solidarity," the Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces wrote.

On Saturday, China reported one new confirmed case in Wuhan and 18 among people arriving from abroad, along with four new deaths, all in Wuhan. China now has recorded a total of 81,639 cases and 3,326 deaths, although those figures are generally considered to be understated because of a lack of testing and a reluctance to report the scale of the original outbreak.

China's slow, cautious emergence from the global pandemic comes as the US is struggling to deal with the outbreak that has taken more than 1,860 lives in New York City alone. Hard-hit European nations Italy, Spain and France are also seeing rising numbers of cases and deaths, although strict social distancing measures such as those adopted by China appear to be having an effect.

Workers in protective wear paused silently beside barriers at one residential community - a reminder that there are still tight restrictions on everyday life across Wuhan.

In the capital's Tiananmen Square, the national flag flew at half-mast, surrounded by heavier-than-normal security.

Pedestrians in one of the city's busiest shopping districts stopped walking and kept their heads low in a silent tribute ceremony, while police patrolling stood at the side of the road with their riot shields down and bowed heads.

Park-goers paused their activities too, some holding badminton rackets by their sides, others with hands together in prayer.

Officials said the observance was a chance to mourn virus "martyrs" - an honorific title bestowed by the government this week on 14 medical workers who died fighting the outbreak.

They include Li Wenliang, a doctor and whistleblower in Wuhan who was reprimanded by authorities for trying to warn others in the early days of the contagion.

Li's death from Covid-19 in February prompted a national outpouring of grief as well as anger at the government's handling of the crisis.

The ruling Communist Party has sought to direct criticism to local authorities in Hubei province and its capital Wuhan, who have been accused of downplaying the severity of the virus, possibly contributing to its spread.

A central government investigation into Li's death concluded he was "inappropriately" punished by Wuhan police.

Despite drastic measures to lock down Hubei in late January, the epidemic has spiralled into a global pandemic with more than one million cases.

Some restrictions in Hubei have been eased in recent weeks after the officially stated number of new infections in China dropped to near zero.

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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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Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

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If you go

The flights

There are direct flights from Dubai to Sofia with FlyDubai (www.flydubai.com) and Wizz Air (www.wizzair.com), from Dh1,164 and Dh822 return including taxes, respectively.

The trip

Plovdiv is 150km from Sofia, with an hourly bus service taking around 2 hours and costing $16 (Dh58). The Rhodopes can be reached from Sofia in between 2-4hours.

The trip was organised by Bulguides (www.bulguides.com), which organises guided trips throughout Bulgaria. Guiding, accommodation, food and transfers from Plovdiv to the mountains and back costs around 170 USD for a four-day, three-night trip.