German chancellor Angela Merkel and French president Francois Hollande attend a ceremony to celebrate 50 years of French and German reconciliation in Reims, France.
German chancellor Angela Merkel and French president Francois Hollande attend a ceremony to celebrate 50 years of French and German reconciliation in Reims, France.
German chancellor Angela Merkel and French president Francois Hollande attend a ceremony to celebrate 50 years of French and German reconciliation in Reims, France.
German chancellor Angela Merkel and French president Francois Hollande attend a ceremony to celebrate 50 years of French and German reconciliation in Reims, France.

German and French 'lovefest' far removed from reality


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BERLIN // Bitter foes for centuries, Germany and France now rarely miss an opportunity to profess their close friendship, so tomorrow's ceremony in Berlin to mark the 50th anniversary of the Elysée Treaty that sealed their alliance promises to be a veritable lovefest.

But, in truth, the relationship is beset by deep differences in core areas such as the euro crisis and security. Germany's tepid offer of two transport aircraft to help France, its closest ally, fight Islamist militants in Mali is the latest example of how far removed their official declarations of unshakeable solidarity are from reality.

Another was last year's collapse of merger talks between European defence giant EADS and British Aerospace, which was attributed in part to mutual suspicions between France and Germany. And when France, Britain, the US and Gulf allies intervened in the Libyan conflict in 2011, Germany stood on the sidelines, even abstaining in the UN Security Council vote.

"Mali is the third instance in a row where this gap between aspiration and reality has become visible. The rift goes through all aspects of French-German relations," Ulrike Guérot, an analyst at the European Council on Foreign Relations, a pan-European think tank, said.

Part of the problem is that Germany is clearly the dominant partner. Its increased political might since unification in 1990 has upset the equilibrium between them.

"During the Cold War, there was a balance with the Germans assuming economic leadership and leaving political leadership to the French," Sabine von Oppeln, a political scientist at Berlin's Free University, said. "But since unification, the Germans have gained political weight and haven't lost their economic leadership."

The difference has become increasingly evident during the euro crisis that has left France grappling with weak growth and high unemployment, while Germany has been powering ahead thanks to an industrial sector invigorated by labour market reforms that France has yet to tackle.

Many in France balk at the prospect of emulating the successful German economic model, which is fundamentally different from their own.

The gulf between German and French economic policy traditions - the former focusing on spending restraint and the latter on state intervention - has widened since the socialist Francois Hollande was elected France's president last year.

Mr Hollande has openly criticised the German chancellor Angela Merkel's insistence on austerity to overcome the euro crisis, and said more growth-orientated measures were needed to help the debt-laden countries of southern Europe.

Politicians will brush aside these problems in their speeches tomorrow. The German and French cabinets and MPs from the two countries will congregate in the Reichstag parliament building to celebrate the treaty forged in 1963 by President Charles de Gaulle and Konrad Adenauer, the West German chancellor.

The agreement, aimed at reconciling the nations after the world wars, launched an array of joint initiatives and enshrined regular government meetings which since 2001 take place every six to eight weeks.

Even though Mr Hollande declared he was "completely satisfied" with the German offer of help for Maili, one of his cabinet ministers, Alain Vidalies, complained last week that logistical aid from other European countries had been "somewhat minimal … with some regrettable absences".

It was a veiled reference to Germany, which only decided on Wednesday to supply two Transall transport planes to fly West African troops to Mali's capital, Bamako.

The festivities in Berlin will focus on the historic rapprochement between the two nations, and on their achievements: the European single market, the EU itself and the euro would have been unthinkable without the Franco-German alliance.

"It's always been a marriage of convenience," said Ms von Oppeln. "Both countries know that they depend on the success of the EU and that they can't master the challenges of the present on their own."

Recent surveys show that a majority of French and Germans no longer view each other through the prism of war. But a cultural divide remains between the land of fine wine and haute cuisine and the land of beer and sausage.

According to a survey by the French Ifop institute, the first word French people think of when asked about Germany is "Merkel", followed by "beer", "car", "strict", "sausage" and "sauerkraut."

The Germans had a far more romantic image of France, associating it with "Paris", followed by the "Eiffel Tower", "wine" and "baguette," the survey showed.

"Really great things have been achieved if you look at where we were in 1913 and 1963," said Ms Guérot . "There's a new normality and ease in discussions. We've always had rows, and they've been a creative driving force in the relationship."

Paradoxically, European integration tended to make most progress when France and Germany had a public row and then settled their differences, said Ms Guérot. "The resulting compromise has always been more acceptable to the other EU states. Whenever Germany and France have formed too much of a common front, it's been bad because it has pitted them against the rest of Europe."

foreign.desk@thenational.ae

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Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Company info

Company name: Entrupy 

Co-founders: Vidyuth Srinivasan, co-founder/chief executive, Ashlesh Sharma, co-founder/chief technology officer, Lakshmi Subramanian, co-founder/chief scientist

Based: New York, New York

Sector/About: Entrupy is a hardware-enabled SaaS company whose mission is to protect businesses, borders and consumers from transactions involving counterfeit goods.  

Initial investment/Investors: Entrupy secured a $2.6m Series A funding round in 2017. The round was led by Tokyo-based Digital Garage and Daiwa Securities Group's jointly established venture arm, DG Lab Fund I Investment Limited Partnership, along with Zach Coelius. 

Total customers: Entrupy’s customers include hundreds of secondary resellers, marketplaces and other retail organisations around the world. They are also testing with shipping companies as well as customs agencies to stop fake items from reaching the market in the first place. 

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Day 4, Abu Dhabi Test: At a glance

Moment of the day Not much was expected – on Sunday or ever – of Hasan Ali as a batsman. And yet he lit up the late overs of the Pakistan innings with a happy cameo of 29 from 25 balls. The highlight was when he launched a six right on top of the netting above the Pakistan players’ viewing area. He was out next ball.

Stat of the day – 1,358 There were 1,358 days between Haris Sohail’s previous first-class match and his Test debut for Pakistan. The lack of practice in the multi-day format did not show, though, as the left-hander made an assured half-century to guide his side through a potentially damaging collapse.

The verdict As is the fashion of Test matches in this country, the draw feels like a dead-cert, before a clatter of wickets on the fourth afternoon puts either side on red alert. With Yasir Shah finding prodigious turn now, Pakistan will be confident of bowling Sri Lanka out. Whether they have enough time to do so and chase the runs required remains to be seen.

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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.”

Email sent to Uber team from chief executive Dara Khosrowshahi

From: Dara

To: Team@

Date: March 25, 2019 at 11:45pm PT

Subj: Accelerating in the Middle East

Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.

Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.

I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.

This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.

It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.

Uber on,

Dara

What vitamins do we know are beneficial for living in the UAE

Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.

Women’s World T20, Asia Qualifier, in Bangkok

UAE fixtures Mon Nov 20, v China; Tue Nov 21, v Thailand; Thu Nov 23, v Nepal; Fri Nov 24, v Hong Kong; Sun Nov 26, v Malaysia; Mon Nov 27, Final

(The winners will progress to the Global Qualifier)

Formula One top 10 drivers' standings after Japan

1. Lewis Hamilton, Mercedes 306
2. Sebastian Vettel, Ferrari 247
3. Valtteri Bottas, Mercedes 234
4. Daniel Ricciardo, Red Bull 192
5. Kimi Raikkonen, Ferrari 148
6. Max Verstappen, Red Bull 111
7. Sergio Perez, Force India 82
8. Esteban Ocon, Force India 65
9. Carlos Sainz Jr, Toro Rosso 48
10. Nico Hulkenberg, Renault 34

Mobile phone packages comparison
'Nightmare Alley'

Director:Guillermo del Toro

Stars:Bradley Cooper, Cate Blanchett, Rooney Mara

Rating: 3/5

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