China spared devastation as typhoon Megi weakens


Daniel Bardsley
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BEIJING // Heavy rains soaked south-east China yesterday, but the region was spared the devastation that former super typhoon Megi brought to Taiwan and the Philippines.

Forecasters downgraded Megi to a tropical depression as it weakened further after making landfall on the mainland on Saturday afternoon. While there were no reports of deaths in China, and the storm fell well short of causing the worst storm surges in 50 years that had been predicted, billboards on the mainland were torn down, roads were blocked by toppled trees and farmland was flooded. Fishing boats and shellfish beds were damaged in Fujian province, where Megi struck land.

One local newspaper said an estimated 1.5 billion yuan (Dh827 million) worth of damage had been caused to the city of Zhangzhou in Fujian.

Flood control officials were yesterday considering when the 313,700 Fujian residents who had been moved to safer areas could return to their homes.

"After checking the safety of houses, different areas can decide when to allow people to return," said Li, an employee of the Fujian provincial flood control headquarters who only uses one name.

Megi was downgraded on Saturday to a tropical storm before being further reclassified as a tropical depression as its winds continued to slow. At its peak, Megi had gusted at up to 260kph and was rated as the strongest storm in the world this year. It was the 13th typhoon to hit China this year.

In Taiwan, rescue and clean-up work continued after the storm tore across the island late last week, causing mudslides that blocked roads and buried buildings, killing at least 13.

The government said rescuers had found what was thought to be the wreckage of a bus on which 19 missing Chinese tourists were travelling. Families of those missing have travelled to Taiwan as rescue efforts continue.

Also yesterday, the number of confirmed dead increased to 13 when the body of a woman, thought to be a local teacher, was discovered, China's state-run Xinhua news agency reported. At least 23 people remain unaccounted for on the island.

Among the confirmed dead are nine people killed when a mudslide engulfed the temple they were sheltering in.

The United States added US$800,000 (Dh2.94m) to $100,000 in aid it had previously given to the Philippines after Megi caused widespread death and destruction in north Luzon island a week ago, according to local media reports. US officials said their military had also helped transport relief supplies to the worst-hit areas. There were large-scale power cuts, toppled trees and wrecked homes after Megi passed over the area.

The death toll in the Philippines stood at 28, while the estimated cost of the damage caused was yesterday put at 8.3 billion pesos (Dh708m), most of it agriculture-related.

In Vietnam, heavy rain over the past week from a separate weather system has killed at least 75 people and forced more than 170,000 to flee their homes, while in Thailand at least 23 have died from flooding.

* With additional reporting by the Associated Press

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Young women have more “financial grit”, but fall behind on investing

In an October survey of young adults aged 16 to 25, Charles Schwab found young women are more driven to reach financial independence than young men (67 per cent versus. 58 per cent). They are more likely to take on extra work to make ends meet and see more value than men in creating a plan to achieve their financial goals. Yet, despite all these good ‘first’ measures, they are investing and saving less than young men – falling early into the financial gender gap.

While the women surveyed report spending 36 per cent less than men, they have far less savings than men ($1,267 versus $2,000) – a nearly 60 per cent difference.

In addition, twice as many young men as women say they would invest spare cash, and almost twice as many young men as women report having investment accounts (though most young adults do not invest at all). 

“Despite their good intentions, young women start to fall behind their male counterparts in savings and investing early on in life,” said Carrie Schwab-Pomerantz, senior vice president, Charles Schwab. “They start off showing a strong financial planning mindset, but there is still room for further education when it comes to managing their day-to-day finances.”

Ms Schwab-Pomerantz says parents should be conveying the same messages to boys and girls about money, but should tailor those conversations based on the individual and gender.

"Our study shows that while boys are spending more than girls, they also are saving more. Have open and honest conversations with your daughters about the wage and savings gap," she said. "Teach kids about the importance of investing – especially girls, who as we see in this study, aren’t investing as much. Part of being financially prepared is learning to make the most of your money, and that means investing early and consistently."

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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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Timeline

1947
Ferrari’s road-car company is formed and its first badged car, the 125 S, rolls off the assembly line

1962
250 GTO is unveiled

1969
Fiat becomes a Ferrari shareholder, acquiring 50 per cent of the company

1972
The Fiorano circuit, Ferrari’s racetrack for development and testing, opens

1976
First automatic Ferrari, the 400 Automatic, is made

1987
F40 launched

1988
Enzo Ferrari dies; Fiat expands its stake in the company to 90 per cent

2002
The Enzo model is announced

2010
Ferrari World opens in Abu Dhabi

2011
First four-wheel drive Ferrari, the FF, is unveiled

2013
LaFerrari, the first Ferrari hybrid, arrives

2014
Fiat Chrysler announces the split of Ferrari from the parent company

2015
Ferrari launches on Wall Street

2017
812 Superfast unveiled; Ferrari celebrates its 70th anniversary

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Profile of Udrive

Date started: March 2016

Founder: Hasib Khan

Based: Dubai

Employees: 40

Amount raised (to date): $3.25m – $750,000 seed funding in 2017 and a Seed round of $2.5m last year. Raised $1.3m from Eureeca investors in January 2021 as part of a Series A round with a $5m target.

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Company/date started: 2015

Founder/CEO: Mohammed Toraif

Based: Manama, Bahrain

Sector: Sales, Technology, Conservation

Size: (employees/revenue) 4/ 5,000 downloads

Stage: 1 ($100,000)

Investors: Two first-round investors including, 500 Startups, Fawaz Al Gosaibi Holding (Saudi Arabia)