French President Emmanuel Macron delivered a speech setting out plans for reforming the European Union at the Sorbonne in Paris, France. Ludovic Marin/ Reuters
French President Emmanuel Macron delivered a speech setting out plans for reforming the European Union at the Sorbonne in Paris, France. Ludovic Marin/ Reuters

Macron calls for more unified Europe in call to action



Emmanuel Macron, the French president, called for a more closely-integrated Europe in a wide-ranging speech on Tuesday that warned of the dangers of splits following the departure of Britain from the 28-nation bloc.

Mr Macron called for much closer ties on economic, defence and immigration affairs as he accepted that pro-nationalist forces were on the march because of the failure to defend the European ideal.

“The Europe that we know is too slow, too weak, too ineffective,” he said.

In some of his most concrete proposals, the staunch pro-European said that countries that have adopted the euro – some 19 of the member states - should have their own budget for joint investment projects and to bail out countries in the event of future financial crises.

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The speech – strongly expounding the virtues of Europe while demanding change to its structures – comes at a key moment in the bloc’s history with the planned departure of the UK in 2019.

Mr Macron said he was looking for France and Germany to take the lead in setting the agenda for a new stronger Europe despite Angela Merkel emerging from national elections at the weekend with a weakened hand even though she secured a fourth term as German leader.

Analysts suggest she is likely to require to form a coalition with a Eurosceptic partner, limiting her ability to promote her view - similar to Mr Macron - of a stronger, more unified Europe without Britain.

After the return of a right-wing party to German parliament for the first time in 60 years, Mr Macron said the isolationist sentiment had returned “because of blindness… because we forgot to defend Europe.”

Despite the setback for his European ally, Mr Macron pushed for a series of major reforms in calling for deeper cooperation on matters including corporate taxation, its asylum policy and sharing intelligence between countries.

“The only path that assures our future is the rebuilding of a Europe that is sovereign, united and democratic,” Macron said in a speech at the Sorbonne university in Paris. “At the beginning of the next decade, Europe must have a joint intervention force, a common defence budget and a joint doctrine for action.”

In Berlin on Monday, Merkel said it was important to move beyond catchphrases and provide detail on how Europe could be improved. “It is not about the slogans but what lies behind them," she said. "I am talking about this with the French president."

The Macron speech followed a London meeting between Theresa May, the UK’s prime minister, and Donald Tusk, the European Council president. He said that he was “cautiously optimistic” about the progress of Brexit talks with a new realism emerging in the UK at the likely implications for leaving the bloc.

He said, however, that not enough progress had been made on issues such as the price that the UK would have to pay to leave the EU that would allow talks to move on to issues such as the nature of any new trading arrangement.

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England's Ashes squad

Joe Root (captain), Moeen Ali, Jimmy Anderson, Jofra Archer, Jonny Bairstow, Stuart Broad, Rory Burns, Jos Buttler, Sam Curran, Joe Denly, Jason Roy, Ben Stokes, Olly Stone, Chris Woakes. 

UK's plans to cut net migration

Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.

Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.

But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.

Language requirements will be increased for all immigration routes to ensure a higher level of English.

Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.

The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.

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UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
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May 20, final

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.”

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