In this file photo, amphibious assault vehicles of the South Korean Marine Corps throw smoke bombs as they move to land on shore during a US-South Korea joint landing operation drill in Pohang March 30, 2015. Kim Hong-Ji / Reuters
In this file photo, amphibious assault vehicles of the South Korean Marine Corps throw smoke bombs as they move to land on shore during a US-South Korea joint landing operation drill in Pohang March 30, 2015. Kim Hong-Ji / Reuters
In this file photo, amphibious assault vehicles of the South Korean Marine Corps throw smoke bombs as they move to land on shore during a US-South Korea joint landing operation drill in Pohang March 30, 2015. Kim Hong-Ji / Reuters
In this file photo, amphibious assault vehicles of the South Korean Marine Corps throw smoke bombs as they move to land on shore during a US-South Korea joint landing operation drill in Pohang March 3

South Korea and US to announce suspension of major military drills


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South Korea and the United States are expected to announce the suspension of "large-scale" military drills this week, with the provision that they would restart if North Korea failed to keep its promise to denuclearise, news agency Yonhap said on Sunday.

Citing an unnamed government source, the South Korean news agency said the suspension was likely to affect only major joint exercises, not more routine military training.

US President Donald Trump surprised officials in Seoul and Washington when he pledged to end "war games" after his summit with North Korean leader Kim Jong Un in Singapore last week.

Immediately after the announcement, US forces in Korea said they had received no guidance on stopping any drills, and South Korean officials said they were trying to figure out which exercises Mr Trump was referring to.

However, in a sign Seoul may be open to suspending drills, South Korean President Moon Jae-in said on Thursday his government would need to be flexible when it came to applying military pressure on North Korea if it was sincere about denuclearisation.

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Read more:

Koreas holding military talks to reduce tensions on border

Tokyo concerned over Trump cancellation of war games

North Korea's Kim knows denuclearisation must be 'quick': Pompeo

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Mr Moon said South Korea would carefully consider joint military drills with the US and he asked his officials to cooperate with the US on the issue, his office said in a statement at the time.

Yonhap also reported on Sunday that during military talks between the two Koreas on Thursday, South Korean officials asked their northern counterparts to relocate artillery 30 to 40 kilometres away from the heavily fortified military demarcation line that divides the two countries.

The South's defense ministry denied it made such a request, Yonhap said.

The talks, the first in more than a decade, held in the border village of Panmunjom in the demilitarised zone (DMZ), followed an inter-Korean summit in April at which leaders of the two Koreas agreed to defuse tensions and cease "all hostile acts".

North and South Korea failed to reach any concrete agreement during those talks, officials said.

North Korea proposed to Seoul to disarm, on a trial basis, the Joint Security Area in Panmunjom, the only site in the DMZ where both countries' soldiers stand almost face to face, the South's presidential spokesman said on Friday.

About 28,500 US troops are stationed in South Korea, a legacy of the Korean War, which ended in 1953 in an armistice that left the two Koreas technically still at war.

At a Senate hearing on Thursday, Trump's nominee to be ambassador to South Korea, retired Admiral Harry Harris, backed the idea of a "pause" in major military exercises. He said his understanding was that any suspension would involve only major military exercises and that regular training of US forces in South Korea would continue, although final decisions were up to the Department of Defense.

The US-South Korean exercise calendar hits a high point every year with the Foal Eagle and Max Thunder drills, which both wrapped up last month.

The next major drill, Ulchi Freedom Guardian, is planned for the end of the summer.

Last year, 17,500 American and more than 50,000 South Korean troops participated in the Ulchi Freedom Guardian drills, although the exercise is mostly focused on computerised simulations rather than live field exercises that use weapons, tanks or aircraft.

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New Zealand 57-0 South Africa

Tries: Rieko Ioane, Nehe Milner-Skudder (2), Scott Barrett, Brodie Retallick, Ofa Tu'ungfasi, Lima Sopoaga, Codie Taylor. Conversions: Beauden Barrett (7). Penalty: Beauden Barrett

MATCH INFO

Uefa Champions League final:

Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports

A Prayer Before Dawn

Director: Jean-Stephane Sauvaire

Starring: Joe Cole, Somluck Kamsing, Panya Yimmumphai

Three stars

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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.”

MATCH INFO

Austria 2
Hinteregger (53'), Schopf (69')

Germany 1
Ozil (11')

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