A handout typhoon chart made available by the Central Weather Bureau (CWB) shows the progress of Typhoon Hato over the Pacific Ocean on August 20, 2017. EPA
A handout typhoon chart made available by the Central Weather Bureau (CWB) shows the progress of Typhoon Hato over the Pacific Ocean on August 20, 2017. EPA
A handout typhoon chart made available by the Central Weather Bureau (CWB) shows the progress of Typhoon Hato over the Pacific Ocean on August 20, 2017. EPA
A handout typhoon chart made available by the Central Weather Bureau (CWB) shows the progress of Typhoon Hato over the Pacific Ocean on August 20, 2017. EPA

Mass flight cancellations in Hong Kong as Typhoon Hato approaches


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Widespread flight cancellations were set to bring chaos to Hong Kong's busy international airport as Typhoon Hato churns towards the city on Tuesday.

The weather observatory said the storm would pass within 100 kilometres of Hong Kong on Wednesday morning, "posing considerable threat" to the territory.

It warned of strong winds, rough seas and possible flooding due to heavy rain.

Flag carrier Cathay Pacific said almost all its flights between 6am and 5pm local time on Wednesday would be axed.

Hong Kong Airlines has also cancelled all its flights from 7am to 5pm and other carriers have already posted cancellations to their schedules.

The Hong Kong Airport Authority said passengers should confirm their flights before heading to the airport.

"As typhoon Hato gradually approaches, flights at the Hong Kong International Airport will be affected all day tomorrow," it said.

Cathay said wind speed and direction was "severely impacting flight operations" in a statement on its website, although it added operations remained normal on Tuesday night.

The observatory raised its Typhoon 3 warning on Tuesday evening, triggered when wind speeds are expected to hit between 41 and 62 kilometres per hour.

It predicted it would raise it to a Typhoon 8, the third-highest warning level, around midnight.

Hong Kong is regularly hit by typhoons between July and October.

The city saw its strongest storm in 1962 when the eye of typhoon Wanda passed over and gusts of 284 kilometres per hour were recorded.

It killed 130 people and destroyed thousands of residential huts, leaving 72,000 people homeless.

Since then, Hong Kong has adapted to typhoons, including making sure its highest commercial skyscrapers can sway in the wind, and they now rarely cause deaths.

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New schools in Dubai

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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Dubai works towards better air quality by 2021

Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.

The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.

These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.

“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.

“We’re in a good position except for the cases that are out of our hands, such as sandstorms.

“Sandstorms are our main concern because the UAE is just a receiver.

“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”

Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.

There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.

“There are 25 stations in total,” Mr Al Daraji said.

“We added new technology and equipment used for the first time for the detection of heavy metals.

“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”

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