Maoists blamed for India train collision


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Maoist rebels derailed a high-speed train packed with sleeping passengers into the path of a freight train in eastern India today, killing at least 80 people, police said. It was the deadliest Maoist attack in recent memory and is likely to ramp up pressure on the government to consider calls for deploying the military in its fight against the rebels. Police warned the death toll could rise further with more bodies feared trapped in the mangled wreckage after 13 carriages of the Mumbai-bound express from Kolkata careened off the tracks in a remote area called Midnapore, 135 kilometres away from Kolkata, in the night around 1.30 am local time (midnight UAE time). The casualties mounted after a cargo train coming in from the opposite direction collided with the derailed wreck even as passengers were trying to wriggle out. The railways minister, Mamata Banerjee, said the train had been derailed by a "severe bomb blast", but officials said they were looking at evidence that metal plates used to secure sections of track had been removed. "It is a clear case of sabotage. The Maoists have done it," West Bengal police chief Bhupinder Singh told reporters at the site. He said Maoist leaflets had been found scattered by the tracks. The Press Trust of India said it had received a call claiming responsibility by the Maoist-backed People's Committee against Police Atrocities (PCPA), although a PCPA spokesman later contacted the news agency to deny the group's involvement. "The death toll has risen to 80 and we are still recovering more bodies," West Bengal police inspector general Surajit Kar Purakayastha told AFP. More than 200 people were reported injured, some of them critically. Four of the carriages that slammed into an oncoming goods train were badly crushed and flipped on their sides leaving body parts clearly visible amid the twisted metal. Rescue workers with bolt cutters struggled to free anyone still alive inside. One survivor, Vinayak Sadna, said he had been sleeping when his carriage lurched violently to one side and then flipped over, flinging passengers around the compartment. "I ended up stuck between two seats with an iron bar crushing my hand," Sadna said. "I was trapped for three hours before I was pulled out. My wife is still missing."

Paramedics treated the injured beside the track, while the most serious cases were evacuated by air force helicopters. More than 80 passengers were taken to Kharagpur Railway Hospital where medical staff were overwhelmed by the number of wounded, some of them with serious head and spinal injuries. "We just aren't set up for something like this," said hospital director Vivekanondo Mishra. The Maoist rebellion, which the Indian prime minister Manmohan Singh has labelled the biggest threat to the country's internal security, began in West Bengal in 1967 and has since spread to 20 of India's 29 states.

The rebels say they are fighting for the rights of landless tribespeople and farmers left behind by India's rapid economic expansion. West Bengal chief minister Buddhadeb Bhattacharya said the latest attack warranted a review of the government's counter-insurgency strategy. "We have to find ways to counter the Maoist menace. Innocent people are being killed," he told a press briefing in Kolkata. The government launched a coordinated offensive, dubbed Operation Greenhunt, against the rebels in November 2009 with more than 60,000 paramilitary and state police.

The operation has produced few tangible results and Maoist attacks have continued unabated. India's home minister P Chidambaram - who has borne the brunt of public criticism - recently acknowledged that strategic changes were needed. Hours after the train attack, Mr Chidambaram held a pre-scheduled meeting with the head of the army, General VK Singh. The main opposition Bharatiya Janata Party (BJP) said the government "lacked the willpower" to take the Maoists on. "Internal security is the responsibility of the government. It is not a law and order problem," said the senior BJP leader Murli Manohar Joshi. * AFP

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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.”