17 killed in Pakistan in anti-US protests


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TUNIS // At least 17 people were reportedly killed yesterday as protests against the film insulting the Prophet Mohammed spread across Pakistan.

Although violence seemed to have ebbed elsewhere in the Muslim world, tens of thousands demonstrated in Pakistan, where anti-American feeling has long been high.

The violence came on a day that the government had declared a national holiday entitled: "Love for the Prophet Day."

Despite calls for peaceful protests, demonstrators rioted beyond the control of police in Karachi, where five people - two protesters and three policemen - were said to have died, and cars, banks and cinemas were set ablaze.

In the city of Peshawar, a television station employee was reportedly killed and more buildings were set alight.

Shashank Joshi, of the Royal United Services Institute in London, suggested that the government may have tried to contain the violence.

"In Pakistan, you essentially have a government that's trying to outflank protesters," he said. "It's trying to take the sting out of the protests by initiating them itself."

Meanwhile, in Tunisia, where demonstrations last week led to the death of four protesters and the burning and ransacking of cars and buildings inside the US Embassy complex, a heavy police presence in the downtown area and a nationwide ban on demonstrations was able to contain unrest.

Tunisia has a strong relationship with France and a huge French Embassy sits on the capital's main street, Avenue Habib Bourguiba, which was surrounded yesterday with tanks, lorries carrying security forces and coils of gleaming new razor wire.

French missions were on alert after a French magazine published cartoons of the Prophet Mohammed this week.

At the Fath mosque, popular with some ultraconservative Salafis, where the leader of the hardline Ansar Al Sharia group, Abu Ayyad Al Tunisi, gave an inflammatory speech on Monday, an imam called for calm.

"I call on all Muslims to stay calm and avoid conflicts," went the sermon, broadcast by loudspeaker to hundreds of worshippers gathered outside. "Before all else, take into consideration the good of the country."

However, tensions are likely to remain high as Rached Ghannouchi, the head of the Islamist Ennahdha party that leads the interim government, gave an interview in which he took a harder line on extremists than he has before.

"Each time that parties or groups overstep our freedoms in a flagrant manner, we have to be tough, clamp down and insist on public order," he told AFP. "These people pose a threat not only to Ennahdha but to the country's freedoms and security."

In Lebanon, thousands took to the streets in separate protests against the US-made film Innocence of Muslims and the French cartoon.

Security was tightened around locations including French institutions in anticipation of possible violence, but the demonstrations passed off largely without incident.

Hundreds gathered in Martyr's Square in downtown Beirut, for a rally organised by controversial Sunni cleric Sheikh Ahmed Al Assir.

A week of demonstrations called for by Hizbollah leader, Hassan Nasrallah, continued yesterday, with supporters of the Lebanese Shiite movement converging on the city of Baalbek following Friday prayers. There were also reports of protesters in the southern city of Sidon burning American flags.

In Benghazi, the eastern Libyan city where the American consulate was attacked and burnt 10 days ago, killing four Americans, thousands of people took to the streets to call for the end of armed, uncontrolled militia groups in Libya.

Hundreds of people also gathered in Yemen, Bangladesh, Afghanistan and other countries, in demonstrations that were largely peaceful.

Security was tight at US and European embassies across the region. US secretary of state Hillary Clinton said yesterday that "all governments have the duty, the solemn duty, to defend diplomatic missions. They must be safe and protected places".

* With additional reporting by Zoi Constantine in Beirut, Reuters, Associated Press and Agence France-Presse

Semi-final fixtures

Portugal v Chile, 7pm, today

Germany v Mexico, 7pm, tomorrow

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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.”

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