North Korea threatened with 'stern punishment' over sinking of frigate



BEIJING // An international inquiry yesterday officially held North Korea responsible for the fatal sinking of a South Korean frigate that broke in two following an explosion in March, killing 46 South Korean sailors. In response to the deadliest incident in the Korean Peninsula since the 1950-53 civil war, Seoul reaffirmed its vow of retaliation, saying there would be "stern punishment".

North Korea immediately shot back, denying its involvement and threatening a "full-scale war" against any attempt to impose sanctions. Analysts said the outcome of the investigation with well-expected conclusions marked the beginning of an uncertain period of escalated tensions in the region, with the focus on what role China, a longtime enabler of North Korea, would play in the dispute. South Korea is looking to the UN Security Council to take action against North Korea, but China is a permanent Council member with veto power.

"China is in a difficult and delicate position," said Jiang Wenran, the chair of the China Institute at the University of Alberta in Canada who is currently visiting Beijing. A team of military and civilian investigators from the United States, Britain, Australia, Sweden and the host South Korea yesterday said that a North Korean submarine was the culprit that torpedoed the 88-metre Cheonan. During a nationally aired press briefing, Yoon Duk-yong, the head of the investigative team, displayed parts of a North Korean torpedo collected from the scene of the ship sinking near the disputed sea border. The evidence, which was lifted from the seabed just five days before, also had a handwritten mark, "Number One," in the Korean language, consistent with a similar marking found on a stray North Korean torpedo secured by the South Korean military seven years ago, Mr Yoon said.

"We will take resolute countermeasures against North Korea and make it admit its wrongdoings," the South Korean president Lee Myung-bak's office cited him as saying during a phone conversation he had with the Australian prime minister, Kevin Rudd. North Korea's National Defense Commission, whose chairman is Kim Jong-il, the country's leader, issued a statement accusing the South of "pointing a dirty finger at us like a thief". It claimed the investigation was "sheer fabrication".

"Our army and people will promptly react to any sanctions infringing on our national interests with tough measures including an all-out war," the North's statement said. Although Seoul publicly vowed retaliation, and South Korea's conservative media outlets are clamouring for revenge, Cha Du-hyeogn, the director of North Korean studies at the state-run Korea Institute for Defence Analyses in Seoul, said South Korea would likely shy away from an actual military response.

Paik Hak-soon, a security analyst at the Sejong Institute, a think tank in Seoul, agreed: "Military options are possible in rhetoric, but not in reality." Analysts outside South Korea assessed the situation a bit differently. "In the past, announcements like this were frequently followed by missile tests, expanded military exercises, refusal to participate in international negotiations and/or continued threats," said Joseph Bermudez, a military analyst for Jane's Intelligence Review and author of The Armed Forces of North Korea.

"This presents a situation where the responses by all sides could lead to unintended consequences," Mr Bermudez said. North Korea offered to dispatch an inspection team to the South to "verify" the South's evidence. The local JoongAng Ilbo newspaper said the South government was put in a dilemma whether to accept the North's surprise proposal. "It clearly shows that North Korea didn't do it," said Cui Zhiying, the director of the Korean Peninsula Research Centre at Tongji University in Shanghai.

Mr Cha refuted that view, saying the North's gesture was to woo China and Russia, two Cold War allies of North Korea, to its side. Some analysts fear the possibility of formation of two opposing wings of ideological blocs, with China, North Korea and Russia on one side and South Korea, the US and Japan on the other. "I wouldn't say it's the start of a new Cold War. But the current situation adds instability in the East Asia," said Mr Paik, the analyst in Seoul.

Mr Jiang agreed: "I am not optimistic. We are entering a phase of new crisis. South Korea wants justice. But North Korea has never been known as backing down." He expects China's response on the matter will be muted. "I would be very surprised if Beijing would come out and say, 'Yes, we're going to join the international community in condemning North Korea'." @Email:sleethenational@gmail.com

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
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At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

Company name: Play:Date

Launched: March 2017 on UAE Mother’s Day

Founder: Shamim Kassibawi

Based: Dubai with operations in the UAE and US

Sector: Tech 

Size: 20 employees

Stage of funding: Seed

Investors: Three founders (two silent co-founders) and one venture capital fund

Itcan profile

Founders: Mansour Althani and Abdullah Althani

Based: Business Bay, with offices in Saudi Arabia, Egypt and India

Sector: Technology, digital marketing and e-commerce

Size: 70 employees 

Revenue: On track to make Dh100 million in revenue this year since its 2015 launch

Funding: Self-funded to date

 

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
South Africa v India schedule

Tests: 1st Test Jan 5-9, Cape Town; 2nd Test Jan 13-17, Centurion; 3rd Test Jan 24-28, Johannesburg

ODIs: 1st ODI Feb 1, Durban; 2nd ODI Feb 4, Centurion; 3rd ODI Feb 7, Cape Town; 4th ODI Feb 10, Johannesburg; 5th ODI Feb 13, Port Elizabeth; 6th ODI Feb 16, Centurion

T20Is: 1st T20I Feb 18, Johannesburg; 2nd T20I Feb 21, Centurion; 3rd T20I Feb 24, Cape Town

The 12 Syrian entities delisted by UK 

Ministry of Interior
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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.”

The Prison Letters of Nelson Mandela
Edited by Sahm Venter
Published by Liveright

How much sugar is in chocolate Easter eggs?
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The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

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Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

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Titanium Escrow profile

Started: December 2016
Founder: Ibrahim Kamalmaz
Based: UAE
Sector: Finance / legal
Size: 3 employees, pre-revenue  
Stage: Early stage
Investors: Founder's friends and Family

Director: Paul Weitz
Stars: Kevin Hart
3/5 stars