British prime minister David Cameron speaks in front of 10 Downing Street. Adrian Dennis / AFP Photo
British prime minister David Cameron speaks in front of 10 Downing Street. Adrian Dennis / AFP Photo
British prime minister David Cameron speaks in front of 10 Downing Street. Adrian Dennis / AFP Photo
British prime minister David Cameron speaks in front of 10 Downing Street. Adrian Dennis / AFP Photo

David Cameron to resign as British prime minister


  • English
  • Arabic

LONDON // It’s often said that David Cameron is a lucky politician who has seemed to coast through politics on instinct and charm during a career that has culminated in six years as British prime minister. On Thursday, his luck ran out.

In calling a referendum on Britain’s membership in the European Union, Mr Cameron made a gamble that sank his career — and set his country on a course to leave an international alliance it joined more than 40 years ago. Speaking to assembled reporters outside his Downing Street office on Friday, he said he would stay on for as long as was necessary for stability’s sake, but that he could not be the one to lead Britain out of Europe.

“I will do everything I can as prime minister to steady the ship over the coming weeks and months,” he said, “but I do not think it would be right for me to try to be the captain that steers the country to its next destination.”

He said his successor should trigger the formal process for Britain to leave the European Union.

“I think it’s right that this new prime minister takes the decision about when to trigger Article 50,” Mr Cameron said.

“I would also reassure Brits living in European countries and European citizens living here that there will be no immediate changes in your circumstances,” he said.

Flanked by his wife Samantha, Mr Cameron said he had fought to retain Britain’s membership of the EU “head, heart and soul — I held nothing back”.

But he added: “The British people have made a very clear decision to take a different path and as such, I think the country requires fresh leadership to take it in this direction.”

Britons decided by 52 per cent to 48 per cent in favour of quitting the EU, a margin of more than one million votes, final results showed.

Brexit was a rare but fateful miscalculation for a politician who has a reputation for thriving under pressure and astutely judging political risks.

“I think he’s actually been pretty stunned by the strength of the `leave’ cause,” Cameron biographer James Hanning said several days ahead of the referendum. “The golden rule is, never hold a referendum unless you’re confident of winning it, and I think he thought that the moderate voices would prevail by some distance.”

___________

Brexit latest: Business world reaction

From UK

From around Europe

Swiss banks

Business reaction from China

Japan

Gold soars

Foreign exchange

Oil

___________

The referendum campaign was unexpectedly bitter and divisive, and was brought to a shocked halt when Labour MP Jo Cox was shot and stabbed to death in the street last week. The news appeared to dampen the momentum of the “leave” movement, but in the end the Brexit vote prevailed.

“The British people have made a decision to take a separate path,” Mr Cameron said on Friday morning.

That decision was bitter news for Cameron, who called the referendum to puncture growing support for the anti-EU UK Independence Party and placate the strongly Eurosceptic right wing of the Conservatives.

Victoria Honeyman, a lecturer in British politics at the University of Leeds, said Mr Cameron had seen EU battles poison the leaderships of former Tory leaders John Major and William Hague and “feared a civil war in the Conservative Party”.

She said the referendum was about “defusing that time bomb” — but Mr Cameron has “moved from having one ticking time bomb to having another ticking time bomb”.

When he promised the referendum, in 2013, Mr Cameron said it would “settle this European question in British politics” once and for all.

He told voters he would forge a new deal between Britain and the EU that would make remaining an attractive prospect. At a Brussels summit in February, he won changes to welfare benefits that he said would reduce immigration and an exemption for Britain from the EU’s commitment to “ever-closer union” — a phrase that stirs images of a European superstate in some patriotic British hearts.

But many voters proved resistant to Mr Cameron’s message that Britain is stronger, safer and more economically secure within the EU than it would be outside it.

The concessions he gained were dismissed as paltry by “leave” campaigners, who said they would do little to limit immigration from other EU nations because the bloc guarantees free movement among member states. It’s a subject that resonated with many voters, who have seen hundreds of thousands of people come to Britain over the past decade from new EU members in eastern Europe. (Hundreds of thousands of Britons also live in other EU countries, a less remarked-upon fact).

“I think he has underestimated the enduring nature and the strength of the Eurosceptic support in the country and also the extent of the bitterness inside his own party,” Hanning said.

* Agencies

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.”

Men’s singles 
Group A:
Son Wan-ho (Kor), Lee Chong Wei (Mas), Ng Long Angus (HK), Chen Long (Chn)
Group B: Kidambi Srikanth (Ind), Shi Yugi (Chn), Chou Tien Chen (Tpe), Viktor Axelsen (Den)

Women’s Singles 
Group A:
Akane Yamaguchi (Jpn), Pusarla Sindhu (Ind), Sayaka Sato (Jpn), He Bingjiao (Chn)
Group B: Tai Tzu Ying (Tpe), Sung Hi-hyun (Kor), Ratchanok Intanon (Tha), Chen Yufei (Chn)