Voters in Germany will go to the polls in a key regional election on Sunday with the far right seeking to cause a historic upset three months before the country chooses its next leader.
Polls show the anti-Islam, anti-lockdown Alternative for Germany (AfD) in a close race against Chancellor Angela Merkel's conservatives in Saxony-Anhalt.
The state is part of the former East Germany, where the AfD has flourished in recent years and is bidding to become the largest party in a state parliament for the first time in its history.
A poor result for Mrs Merkel's party would heap pressure on its nominee for the September 26 election, Armin Laschet, who emerged as the winner from a bruising internal struggle in April.
Mrs Merkel is not seeking a fifth term after 16 years in power.
“This is the last big test before the federal election in September,” said Prof John Ryan, a Network Research Fellow at CESifo in Munich and a former fellow at LSE Ideas.
“You don’t win federal elections in the East, but you can lose them in the East.”
Far right takes anti-lockdown stance
The AfD swept into the German Parliament for the first time in 2017 on a wave of anger at Ms Merkel's refugee policy.
Oliver Kirchner, the AfD’s top candidate in Saxony-Anhalt, said many people still view the influx of refugees to Germany “very critically”.
During the pandemic, the party has tried to carve out a new niche by vocally opposing lockdown measures.
“Sending so many people into poverty with so few infections is problematic for us,” Mr Kirchner said.
It is the CDU who have a lot to lose if they did lose to the AfD
At a national level, support for the AfD stagnated in the past year amid internal divisions and accusations of ties to neo-Nazi fringe groups.
But its appeal remains strong in the East, which lags behind the West economically and where the traditional parties have weaker roots.
None of the major parties will contemplate working with the AfD, but a strong performance could lead to messy coalition talks.
“What’s happened to [the AfD] is they’ve got a lot of divisions within their party. It’s just that this particular region is one of their core strengths,” Prof Ryan said.
“There’s still that dichotomy between the East and the West, people still look at it in that way. When you’re resentful, you protest vote and they’ve been very good at catching that.”
High stakes for Merkel’s party
The Christian Democrats (CDU) saw its poll ratings slump in the spring amid anger over Germany’s handling of the pandemic.
Voters rejected the CDU in two regional elections in March where the conservatives took their worst share of the vote in each state since the Second World War.
“They have problems which are not going to go away very soon,” Prof Ryan said.
The bloc was further damaged by a struggle between the CDU and its Bavarian sister party, the CSU, over who should fly the conservative flag into September’s election.
Mr Laschet emerged as the winner ahead of Bavarian premier Markus Soeder, who was seen widely as the more charismatic choice. Leading figures in the Saxony-Anhalt branch of the party supported Mr Soeder.
Sunday’s election is “widely considered a litmus test for Laschet’s ability to lift the CDU and CSU out of [their] losing streak,” said Roland Freudenstein and Jonas Nitschke in an analysis for the Wilfried Martens Centre.
Mr Laschet staged a partial recovery in the polls but “if the AfD beats the CDU, or even comes close, he’ll be in trouble again,” they said.
Most polls put the CDU in the lead, with one late poll boosting the party’s hopes by showing it seven points clear of the AfD.
Such a result could lead to the coalition that has governed the state since 2016, between the CDU, Greens and Social Democrats, being maintained.
“It is the CDU who have a lot to lose if they did lose to the AfD, but I think the CDU will probably get that victory,” Prof Ryan said.
Greens look to maintain momentum
With the CDU at a low ebb, the Greens enjoyed a bounce in the polls after choosing 40-year-old former trampolining medallist Annalena Baerbock as its candidate for the election in September.
Typically weaker in the East, the Greens are not in contention to win in Saxony-Anhalt but the party looks set to improve on its 2016 result.
National polls show the Greens in a close race with the CDU/CSU alliance, meaning both Mr Laschet and Ms Baerbock are in the frame to be the next chancellor.
Under threat from the Greens in some parts of Germany and the AfD in other regions, the CDU faces a dilemma over its future, the Martens Centre experts said.
“The European centre right’s survival depends on mastering this dilemma, and successfully walking that tightrope without falling off,” they said. “Next Sunday will be an important bellwether for this.”
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.”
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Stamp duty timeline
December 2014: Former UK finance minister George Osbourne reforms stamp duty, replacing the slab system with a blended rate scheme, with the top rate increasing to 12 per cent from 10 per cent:
Up to £125,000 - 0%; £125,000 to £250,000 – 2%; £250,000 to £925,000 – 5%; £925,000 to £1.5m: 10%; Over £1.5m – 12%
April 2016: New 3% surcharge applied to any buy-to-let properties or additional homes purchased.
July 2020: Rishi Sunak unveils SDLT holiday, with no tax to pay on the first £500,000, with buyers saving up to £15,000.
March 2021: Mr Sunak decides the fate of SDLT holiday at his March 3 budget, with expectations he will extend the perk unti June.
April 2021: 2% SDLT surcharge added to property transactions made by overseas buyers.
Polarised public
31% in UK say BBC is biased to left-wing views
19% in UK say BBC is biased to right-wing views
19% in UK say BBC is not biased at all
Source: YouGov
Western Region Asia Cup T20 Qualifier
Sun Feb 23 – Thu Feb 27, Al Amerat, Oman
The two finalists advance to the Asia qualifier in Malaysia in August
Group A
Bahrain, Maldives, Oman, Qatar
Group B
UAE, Iran, Kuwait, Saudi Arabia
Iftar programme at the Sheikh Mohammed Centre for Cultural Understanding
Established in 1998, the Sheikh Mohammed Centre for Cultural Understanding was created with a vision to teach residents about the traditions and customs of the UAE. Its motto is ‘open doors, open minds’. All year-round, visitors can sign up for a traditional Emirati breakfast, lunch or dinner meal, as well as a range of walking tours, including ones to sites such as the Jumeirah Mosque or Al Fahidi Historical Neighbourhood.
Every year during Ramadan, an iftar programme is rolled out. This allows guests to break their fast with the centre’s presenters, visit a nearby mosque and observe their guides while they pray. These events last for about two hours and are open to the public, or can be booked for a private event.
Until the end of Ramadan, the iftar events take place from 7pm until 9pm, from Saturday to Thursday. Advanced booking is required.
For more details, email openminds@cultures.ae or visit www.cultures.ae
THE%20SPECS
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Retail gloom
Online grocer Ocado revealed retail sales fell 5.7 per cen in its first quarter as customers switched back to pre-pandemic shopping patterns.
It was a tough comparison from a year earlier, when the UK was in lockdown, but on a two-year basis its retail division, a joint venture with Marks&Spencer, rose 31.7 per cent over the quarter.
The group added that a 15 per cent drop in customer basket size offset an 11.6. per cent rise in the number of customer transactions.
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
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
UAE currency: the story behind the money in your pockets
Indoor cricket in a nutshell
Indoor Cricket World Cup – Sep 16-20, Insportz, Dubai
16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership
Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.
Zones
A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full
SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
FINAL SCORES
Fujairah 130 for 8 in 20 overs
(Sandy Sandeep 29, Hamdan Tahir 26 no, Umair Ali 2-15)
Sharjah 131 for 8 in 19.3 overs
(Kashif Daud 51, Umair Ali 20, Rohan Mustafa 2-17, Sabir Rao 2-26)
The%20specs
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GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900