Protesters burn garbage during a demonstration at the G20 summit in Hamburg
Protesters burn garbage during a demonstration at the G20 summit in Hamburg
Protesters burn garbage during a demonstration at the G20 summit in Hamburg
Protesters burn garbage during a demonstration at the G20 summit in Hamburg

G20: Rioting and chaos cast shadow over first day of world leaders' summit


Colin Randall
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Hamburg// World leaders began their G20 summit in Hamburg today Friday amid scenes of rioting and chaos on the city’s streets and clear differences on climate change and trade among delegates.

As the serious disturbances of Thursday night spilled over into a second day of violence and damage, the northern German city’s police called in reinforcements from the rest of the country as they struggled to contain the threat from thousands of anti-capitalist protesters.

Dozens of police cars and other vehicles were set on fire, railway links and a police station were attacked and windows were smashed at a number of flashpoints.

Repeated attempts were made to block important bridges and junctions and breach the tightly controlled security cordon around the summit venue, the Hamburg Messe (Exhibition) and Congress Centre.

A programme of visits for G20 delegates’ spouses had to be changed to ensure they were not caught up in the protests. Security concerns led to US President Donald Trump’s wife, Melania, remaining at the couple’s residence, a villa owned by the city council, instead of joining the others.

Water cannons, which have become a common feature of police tactics, were used against some of the 6,000 protesters, including 1,000 illegally masking their faces, who tried to break into a secure zone surrounding the venue of a concert for world leaders and their accompanying families in the harbour area of the city.

Despite her absence from the earlier events, Mrs Trump was at her husband's side as the concert began.

Elsewhere, security guards were attacked outside at the hotel where Russia’s president Vladimir Putin and other delegates are staying and 11 demonstrators fleeing police were injured when a fence gave way under their weight as they tried to scale it. Police reported firebomb attacks on officers in the Altona district and accused rioters of using slings to fire projectiles.

The further outbreaks of violence and criminal damage came as the number of police officers known to have been hurt rose to 200including a helicopter pilot temporarily blinded when a laser beam was directed at his aircraft. On Friday night, riots and tense standoffs continued in several city centre areas.

An unknown number of demonstrators were also hurt in clashes on Thursday and Friday and 45 had been arrested by midday on Friday. The widespread nature of the protests showed the defiance of anti-G20 elements after an appeal from the German government for demonstrations to be peaceful.

And police are braced for worse to come. Estimates for Saturday’s main anti-G20 demonstrations suggest tens of thousands, possibly as many as 100,000, people hostile to the summit will be in the northern German port city. Even before the scale of protests grew, the German government was talking of up to 8,000 protesters being intent on violence as they tried to disrupt the summit by any means necessary.

Despite the deployment of almost 20,000 officers, there were fears the police would be overwhelmed.  The call for reinforcements came as Hamburg police chiefs admitted they were having to deal with an enormous number of criminal acts. At least 850 extra officers were said to be heading for Hamburg from other areas of Germany, with more certain to follow.

German Chancellor Angela Merkel, a native of Hamburg who chairs the summit, staked her reputation and possibly her immediate political future on insisting the city should host G20.

She wanted to show that democratic society could tolerate dissent. But facing an election campaign in September, she could see her chances affected by public perceptions of responsibility for the rioting that has followed.

Mrs Merkel condemned the violence as unacceptable. She said she had a “great deal of  understanding for peaceful protests” but said violence endangered human life.

Formal deliberations as G20 opened were overshadowed by the keenly awaited face-to-face meeting of the US and Russian presidents, Mr Trump and Vladimir Putin, on the margins of the two-day conference.

But the so-called BRIC countries – Brazil, Russia, India and China – issued a joint communique intended to put pressure on Mr Trump over his decision to withdraw the US from the Paris climate accord. They called on G20 to press for implementation of the agreement.

Mrs Merkel admitted the official G20 negotiators, known as sherpas, were working hard to overcome “very difficult” issues on agreeing the wording of the joint statement of climate change to be issued at the end of the summit.

There was also concern over Mr Trump’s “America First” policies and this surfaced in a sessions on global growth and trade.

While last year’s G20 underlined a commitment to promoting international trade, the US under Mr Trump has worked hard to exclude the rejection of protectionism from statements from international bodies, including the G20’s own meeting of finance ministers earlier this year.

Russia is subject, in addition, to sanctions imposed by the EU and US over its involvement in the Ukraine conflict. Without directly mentioning these measures, Mr Putin called on Friday  for G20 to oppose “illegal and politically biased trade and financial restrictions”.

In her speech opening the summit, Mrs Merkel said the eyes and ears of millions around the world were on delegates, the world leaders they looked to for reassurance on their anxieties and fears.

She urged them to strive for compromise without abandoning their principles or a willingness to admit that they differ on some major issues.

The first topic under discussion as world leaders got to work – countering terrorism and the financing of it – brought broad agreement.

A joint communique later reaffirmed G20’s “commitment to tackle all sources, techniques and channels of terrorist financing” and the strengthening of measures to halt funding financing of terror groups, especially ISIL, Al Qaeda and their affiliates.

“There should be no ‘safe spaces’ for terrorist financing anywhere in the world,” the statement said. ”However, inconsistent and weak implementation of the United Nations and FATF [the intergovernmental Financial Action Task Force] standards allows them to persist.“

  • Additional reporting by Reuters
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Company%20profile
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French business

France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.

Your rights as an employee

The government has taken an increasingly tough line against companies that fail to pay employees on time. Three years ago, the Cabinet passed a decree allowing the government to halt the granting of work permits to companies with wage backlogs.

The new measures passed by the Cabinet in 2016 were an update to the Wage Protection System, which is in place to track whether a company pays its employees on time or not.

If wages are 10 days late, the new measures kick in and the company is alerted it is in breach of labour rules. If wages remain unpaid for a total of 16 days, the authorities can cancel work permits, effectively shutting off operations. Fines of up to Dh5,000 per unpaid employee follow after 60 days.

Despite those measures, late payments remain an issue, particularly in the construction sector. Smaller contractors, such as electrical, plumbing and fit-out businesses, often blame the bigger companies that hire them for wages being late.

The authorities have urged employees to report their companies at the labour ministry or Tawafuq service centres — there are 15 in Abu Dhabi.

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2. They can be created when massive stars collapse under their own weight

3. Large black holes can also be formed when smaller ones collide and merge

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5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

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 five pillars of Islam

1. Fasting

2. Prayer

3. Hajj

4. Shahada

5. Zakat