Hillary Clinton departing today for Jakarta at Tokyo International Airport.
Hillary Clinton departing today for Jakarta at Tokyo International Airport.

N Korea faces sanctions if missile tested



North Korea will face UN sanctions if it goes ahead with a long-range missile test which would be seen as a threat to the region, South Korea's foreign minister said today. "Whether the North launches a missile or a satellite, it is still a violation of a UN Security Council resolution," the foreign minister Yu Myung-hwan told a group of diplomats and journalists. "It will inevitably be followed by sanctions." The US Secretary of State Hillary Clinton said in Tokyo yesterday that such a launch would be "very unhelpful" and Washington was watching the North's moves very closely. The North appears to be readying a launch of the Taepodong-2, its longest-range missile, which experts said is designed to strike US territory but has never flown successfully. The North contends the rockets are the key to its peaceful space programme and said this week it had the right to launch it. In addition, South Korea's Dong-a Ilbo newspaper, quoting a government source, on Wednesday said North Korea had been running a uranium enrichment plant near its main nuclear complex in Yongbyon, about 100km (60 miles) north of the capital, Pyongyang, albeit on a small scale. South Korean officials declined to comment on the report. The possible existence of an uranium enrichment programme, which could offer an effective way of developing nuclear arms, has been a persistent sticking point in diplomacy. A US accusation that Pyongyang was clandestinely operating such a plan led to the breakdown of a 1994 disarmament deal and the start of new, six-way nuclear talks in 2003.

Mrs Clinton is hoping to rehabilitate America's image abroad, especially with Muslims, during a visit to Indonesia and to strengthen economic and development ties with South East Asia. She arrived today, her second stop in an inaugural overseas trip as the top US diplomat. While in Jakarta, Mrs Clinton intends to announce plans to step up US engagement with South East Asia, stressing the growing importance of a region that often felt slighted by the Bush administration. Her two-day schedule in Indonesia includes a visit to the South-east Asian Nations (ASEAN) secretariat and she is likely to signal America's intent to sign the regional bloc's Treaty of Amity and Co-operation. Mrs Clinton will also pledge to attend the group's annual foreign ministers meeting in Thailand this year, US officials said. Development and climate change also will top the agenda during her meetings with Indonesian leaders, along with the Iranian nuclear dispute and the war in Afghanistan. Indonesia is the world's most populous Islamic nation, and it has personal ties for President Barack Obama, who spent four years of his childhood here.

Meanwhile Kim Jong Il is making promises and urging citizens to vote ahead of an election that was delayed amid his reputed health problems. The reclusive leader, who rules his impoverished yet nuclear-armed country with an iron fist, has appealed to citizens ahead of balloting next month for the Supreme People's Assembly - North Korea's rubber-stamp parliament. "I will live up to the expectations of the entire electorate by devoting my all to the prosperity of the country and happiness of the people," Mr Jong Il said in an "open letter" to voters carried today by North Korea's state news agency. Mr Jong Il was out of sight for months last year after reportedly suffering a stroke, presenting the possibility of a power vacuum in the enigmatic nation he has ruled since the 1994 death of his father, the North Korean founder Kim Il Sung. Last month, though, Mr Jong Il emerged to meet a visiting Chinese communist party official. Though looking somewhat thinner, his appearance at the meeting signalled he remains in charge. "Now that he's recovered his health, he may be trying to rally the public around him," Korean affairs expert Peter Beck, who teaches at American University in Washington, said of Mr Jong Il's appeal to voters. Mr Jong Il rules North Korea through his positions as supreme commander of the Korean People's Army, general secretary of the Workers' Party of Korea and chairman of the country's National Defence Commission. Paik Hak-soon, an expert on North Korea at the Sejong Institute, a policy think tank near Seoul, said Mr Jong Il does not need a legislative seat to hold those positions. "It's a political rationalisation on the part of the North Korean leadership that he represents the government as well and, more important, the people," Mr Hak-soon said. * AP and Reuters

THE BIO

Age: 30

Favourite book: The Power of Habit

Favourite quote: "The world is full of good people, if you cannot find one, be one"

Favourite exercise: The snatch

Favourite colour: Blue

The specs

Engine: 1.5-litre turbo

Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

On sale: Now

Electric scooters: some rules to remember
  • Riders must be 14-years-old or over
  • Wear a protective helmet
  • Park the electric scooter in designated parking lots (if any)
  • Do not leave electric scooter in locations that obstruct traffic or pedestrians
  • Solo riders only, no passengers allowed
  • Do not drive outside designated lanes
Election pledges on migration

CDU: "Now is the time to control the German borders and enforce strict border rejections" 

SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom" 

If you go...

Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.

Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50

Europe’s rearming plan
  • Suspend strict budget rules to allow member countries to step up defence spending
  • Create new "instrument" providing €150 billion of loans to member countries for defence investment
  • Use the existing EU budget to direct more funds towards defence-related investment
  • Engage the bloc's European Investment Bank to drop limits on lending to defence firms
  • Create a savings and investments union to help companies access capital
Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

A State of Passion

Directors: Carol Mansour and Muna Khalidi

Stars: Dr Ghassan Abu-Sittah

Rating: 4/5

The specs

Engine: 1.5-litre 4-cylinder petrol

Power: 154bhp

Torque: 250Nm

Transmission: 7-speed automatic with 8-speed sports option 

Price: From Dh79,600

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APPLE IPAD MINI (A17 PRO)

Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits

Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine

Storage: 128/256/512GB

Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4

Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps

Biometrics: Touch ID, Face ID

Colours: Blue, purple, space grey, starlight

In the box: iPad mini, USB-C cable, 20W USB-C power adapter

Price: From Dh2,099

Specs

Engine: 51.5kW electric motor

Range: 400km

Power: 134bhp

Torque: 175Nm

Price: From Dh98,800

Available: Now

COMPANY%20PROFILE
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COMPANY PROFILE

Name: Xpanceo

Started: 2018

Founders: Roman Axelrod, Valentyn Volkov

Based: Dubai, UAE

Industry: Smart contact lenses, augmented/virtual reality

Funding: $40 million

Investor: Opportunity Venture (Asia)

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.”

THE TWIN BIO

Their favourite city: Dubai

Their favourite food: Khaleeji

Their favourite past-time : walking on the beach

Their favorite quote: ‘we rise by lifting others’ by Robert Ingersoll

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