North Korean leader Kim Jong Un may not really have a nuclear button on his desk, but he has found a way to undermine the unity of his two principal foes: South Korea and the US.
Mr Kim used his New Year’s address to boast of his metaphorical nuclear button while also offering direct talks with Seoul. The offer was quickly accepted by South Korean president Moon Jae-in, underscoring differences between the US and its long-time ally over confronting North Korea’s nuclear weapons programme.
While US president Donald Trump has been wary of negotiations unless Mr Kim first abandons his nuclear ambitions, Mr Moon won election on a platform of engagement.
The same week that Mr Trump ridiculed Mr Kim’s arsenal, Mr Moon’s government suggested a January 9 meeting in the border village of Panmunjom and accepted a call from North Korea over a hotline between the nations.
“Here you have the United States all but threatening war with North Korea and simultaneously you have South Korea leaning forward in an aggressive fashion to accommodate North participation and dialogue,” said Evans Revere, a former US diplomat in South Korea. “These things are happening simultaneously, and it is in direct contradiction to the fundamental thrust of US policy.”
Mr Kim’s offer, which follows repeated requests for dialogue from South Korea, adds to tensions that have lingered between Mr Trump and Mr Moon since the US president’s inauguration almost a year ago. While the two Asian nations will ostensibly limit discussions to the prospect of North Korea taking part in the Winter Olympics in South Korea next month, both sides have raised the possibility of more open-ended talks, an idea the US sought to discredit.
The US is "very skeptical of Kim Jong-un's sincerity in sitting down and having talks," state department spokeswoman Heather Nauert said Tuesday. Mr Moon's spokesman, Park Soo-hyun, said the South is willing to have talks no matter the time, place or format.
A US National Security Council official said that anyone reassured by Mr Kim's New Year's message must have been drinking "too much champagne".
The official pointed to sections of Mr Kim’s speech calling for ramped-up production of nuclear warheads and ballistic missiles, the deployment of a nuclear counterattack posture and reunification of the Korean Peninsula.
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Read more:
North Korea reopens cross-border communications with South Korea
Trump boasts of 'bigger' nuclear button in retort to Kim Jong-un
Kim vows North Korea will mass-produce nuclear warheads and missiles
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Not all those themes are new for Pyongyang, but the regime’s improving weaponry suggested it seeks reunification by dividing South Korea from the US and then promoting unity with its southern neighbour through nuclear blackmail, according to the official.
“I’m worried about what the South Koreans are doing,” said Elliot Abrams, a senior fellow at the Council on Foreign Relations. “I think they’re falling into a North Korean trap. If you keep moving in the direction as the South Korean president may wish to do, then ultimately you run the risk of undermining the US-South Korea military relationship.”
Publicly, US officials have downplayed the possibility of a rift, and the dispute over the trade deal has been put on the back burner.
“Kim Jong-un may be trying to drive a wedge of some sort between the two nations - between our nation and the Republic of Korea,” Ms Nauert said. “I can assure you that that will not happen. That will not occur.”
South Korea’s dependence on the US for a nuclear deterrent probably limits Mr Moon’s options in talks with North Korea. While Mr Kim might seek an easing of sanctions and the cancellation of joint military drills, analysts said easier measures would include humanitarian assistance and reuniting separated families.
Even so, Mr Moon is intent on finding a peaceful resolution, and South Koreans have more directly at stake in any conflict. Seoul’s 10 million people are within easy firing range of North Korea’s artillery, and would suffer the brunt of the first retaliatory blows in any conflict.
Mr Kim’s nuclear advances have prompted some US officials to signal that they might have to risk collateral damage in Seoul to protect the American homeland from a threatened nuclear attack. Mr Moon has fought to dispel that notion, even claiming last year that he had the right to veto any US military action against North Korea.
Mr Moon’s challenge will be delivering results with North Korea while making a sacrifice the US is willing to accept, said Katherine Moon, a senior fellow at the Brookings Institution and a professor of Asian Studies at Wellesley College in Massachusetts.
“North Korea wants many things including economic access, so the price tag to negotiate with North Korea on anything is much higher than it ever was because of its nuclear capability now,” she said. “People should not assume that because these overtures have been made that it’s going to be follow the yellow brick road, a little bit of fun and that’s that. It’s going to come with a high cost.”
Aayan%E2%80%99s%20records
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War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
TO%20CATCH%20A%20KILLER
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EDamian%20Szifron%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Shailene%20Woodley%2C%20Ben%20Mendelsohn%2C%20Ralph%20Ineson%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%202%2F5%3C%2Fp%3E%0A
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.”
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Results
6pm: Dubai Trophy – Conditions (TB) $100,000 (Turf) 1,200m
Winner: Silent Speech, William Buick (jockey), Charlie Appleby
(trainer)
6.35pm: Jumeirah Derby Trial – Conditions (TB) $60,000 (T)
1,800m
Winner: Island Falcon, Frankie Dettori, Saeed bin Suroor
7.10pm: UAE 2000 Guineas Trial – Conditions (TB) $60,000 (Dirt)
1,400m
Winner: Rawy, Mickael Barzalona, Salem bin Ghadayer
7.45pm: Al Rashidiya – Group 2 (TB) $180,000 (T) 1,800m
Winner: Desert Fire, Hector Crouch, Saeed bin Suroor
8.20pm: Al Fahidi Fort – Group 2 (TB) $180,000 (T) 1,400m
Winner: Naval Crown, William Buick, Charlie Appleby
8.55pm: Dubawi Stakes – Group 3 (TB) $150,000 (D) 1,200m
Winner: Al Tariq, Pat Dobbs, Doug Watsons
9.30pm: Aliyah – Rated Conditions (TB) $80,000 (D) 2,000m
Winner: Dubai Icon, Patrick Cosgrave, Saeed bin Suroor
NATIONAL%20SELECTIONS
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Zodi%20%26%20Tehu%3A%20Princes%20Of%20The%20Desert
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EEric%20Barbier%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EYoussef%20Hajdi%2C%20Nadia%20Benzakour%2C%20Yasser%20Drief%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
More from Rashmee Roshan Lall
Mobile phone packages comparison
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20SupplyVan%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%3Cbr%3E%3Cstrong%3ELaunch%20year%3A%3C%2Fstrong%3E%202017%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2029%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20MRO%20and%20e-commerce%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20Seed%3C%2Fp%3E%0A
COMPANY PROFILE
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47
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