SEOUL, South Korea // North Korea is believed to have conducted a widely anticipated nuclear test, following an earthquake that monitoring agencies around the globe said appeared to be unnatural.
The South Korean Defence Ministry, which raised its military alert level after the quake, said it was trying to determine whether it was a test. Nuclear blasts can create tremors but they are distinct from those caused by natural earthquakes.
A world nuclear test monitoring organisation detected what it called an "unusual seismic event" in North Korea.
"The event shows clear explosion-like characteristics and its location is roughly congruent with the 2006 and 2009 DPRK nuclear tests," said Tibor Tóth, the executive secretary of the Comprehensive Nuclear Test Ban Treaty Organisation. The DPRK refers to North Korea's formal name, the Democratic People's Republic of Korea.
"If confirmed as a nuclear test, this act would constitute a clear threat to international peace and security, and challenges efforts made to strengthen global nuclear disarmament and non-proliferation, in particular by ending nuclear testing," Mr Tóth said.
Kim Min-seok, a South Korean Defence Ministry spokesman, told reporters that North Korea informed China and the United States of its plans to conduct a nuclear test. It was not clear when Pyongyang told Beijing and Washington.
The US Geological Survey as well as earthquake monitoring stations in South Korea detected an earthquake just north of a site where North Korea conducted its second nuclear test in 2009, according to the government-funded Korea Institute of Geoscience and Mineral Resources.
"There is a high possibility that North Korea has conducted a nuclear test," said Chi Heoncheol, an earthquake specialist at the institute. Mr Chi said a magnitude 3.9 magnitude earthquake and a magnitude 4.5 earthquake were detected in the North's 2006 and 2009 nuclear tests.
South Korean, US and Japanese seismic monitoring agencies put the magnitude of the quake at 4.7, 4.9 and 5.2 respectively.
"We think it is possible it came about as a result of a nuclear test by North Korea from looking at past cases," a Japanese government spokesman Yoshihide Suga said at a news conference, noting that they were still gathering information.
"A natural earthquake normally starts with a smaller tremor followed by a larger one. This quake's strength was the same throughout," according to Yosuke Igarashi, an official at the Japan Meteorological Agency. He declined to elaborate on the length of the quake or other details, saying the agency was studying the data.
The United States and its allies have been on edge since North Korea said last month it will conduct its third nuclear test to protest toughened sanctions over a December rocket launch that the UN called a cover for a banned missile test.
North Korea's politburo vowed to continue firing "powerful long-range rockets," but a statement by state media made no mention of a nuclear test.
North Korea's National Defence Commission said on January 23 that the US was its prime target for a nuclear test and long-range rocket launches. North Korea accuses Washington of leading the push to punish Pyongyang for its December rocket launch.
Last October, a spokesman from the commission told state media the country had built a missile capable of striking the US, but did not provide further details. A missile featured in an April 2012 military parade appeared to be an intercontinental ballistic missile, but its authenticity has not been verified by foreign experts.
Blonde
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World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
Killing of Qassem Suleimani
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.”
GIANT REVIEW
Starring: Amir El-Masry, Pierce Brosnan
Director: Athale
Rating: 4/5
ULTRA PROCESSED FOODS
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- infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes,
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GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
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From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5