Iran needs to provide concrete concessions in nuclear talks


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ISTANBUL // As world powers and Iran agreed to launch additional talks about Tehran's nuclear programme, western diplomats and politicians warned that concrete Iranian concessions would be needed to keep the process alive.

"The proof of the pudding is in the eating," one diplomat said late on Saturday after a day of talks in Istanbul between the five nations with veto power in the United Nations Security Council - the United States, Russia, China, France and the United Kingdom - as well as Germany and an Iranian delegation.

"The ball is clearly in the Iranians' court," he said.

Israel's prime minister said yesterday that Iran got a "freebie" at the talks. Benjamin Netanyahu said the arrangement gave Iran five weeks to continue uranium enrichment - a process that can be used both in the production of nuclear energy or nuclear weapons - without any restrictions. He said Iran should be forced to stop this immediately.

Catherine Ashton, the EU foreign policy chief and leader of the six-nation delegation, told reporters after Saturday's meeting the two sides would meet in the Iraqi capital on May 23

Saturday's meeting did not address concrete steps to ease tensions over the nuclear programme, which the West suspects could have military purposes.

Ms Ashton said both sides agreed the non-proliferation treaty, designed to prevent the spread of nuclear weapons, should form the basis for further discussions, but she also acknowledged "Iran's right to the peaceful use of nuclear energy".

She said further talks would be "guided by a step-by-step approach and reciprocity", a reference to the Iranian position that concessions on the nuclear programme should be answered by an easing of western sanctions against Tehran.

"We expect that subsequent meetings will lead to concrete steps towards a comprehensive negotiated solution, which restores international confidence in the exclusively peaceful nature of the Iranian programme," she said.

The White House applauded the "positive attitude" of both sides in the Istanbul talks, but repeated its demand for Tehran to take "concrete steps".

The British foreign secretary, William Hague, said further talks should strengthen confidence that "Iran will implement its international obligations and does not intend to build a nuclear weapon".

The French foreign minister, Alain Juppe, also urged Iran "to make urgent and concrete gestures to establish confidence".

Officials from both sides are to meet before the conference in the Iraqi capital to look for possible compromises. Western diplomats said consultations between the countries negotiating with Iran would be necessary as well.

Saeed Jalili, the Iranian top negotiator, called the meeting in Istanbul "successful". But he hinted at unsolved problems.

Standing under a banner put up by Iranian officials that read "Nuclear energy for all - nuclear weapons for none", he said in Istanbul late on Saturday that a "strategy of threat doesn't work", in an apparent reference to Israel's threat to attack Iran's nuclear facilities.

Mr Jalili said a religious ruling issued by Iran's supreme leader, Ayatollah Ali Khamenei, stating that weapons of mass destruction violate Islamic law was received positively by western negotiators.

But western diplomats said the ayatollah's statement stood in contrast to Iranian actions in the nuclear programme. The US and European countries are especially concerned about Iran's programme of uranium enrichment and a lack of transparency in its dealings with inspectors of the International Atomic Energy Agency.

The Istanbul meeting was the first attempt to solve the row surrounding the Iranian nuclear programme since a previous round of talks, also in Istanbul, ended without agreement in January last year.

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Lt Gen Erik Petersen, deputy chief of programs, US Army, has argued it took a “three decade holiday” on modernising tanks. 

“There clearly remains a significant armoured heavy ground manoeuvre threat in this world and maintaining a world class armoured force is absolutely vital,” the general said in London last week.

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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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Friday's schedule at the Etihad Airways Abu Dhabi Grand Prix

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Formula 1, first practice, 1pm

GP3 qualifying session, 3.10pm

Formula 1 second practice, 5pm

Formula 2 qualifying, 7pm

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1. New Zealand Daniel Meech – Fine (name of horse), Richard Gardner – Calisto, Bruce Goodin - Backatorps Danny V, Samantha McIntosh – Check In. Team total First round: 200.22; Second round: 201.75 – Penalties 12 (jump-off 40.16 seconds) Prize €64,000

2. Ireland Cameron Hanley – Aiyetoro, David Simpson – Keoki, Paul Kennedy – Cartown Danger Mouse, Shane Breen – Laith. Team total 200.25/202.84 – P 12 (jump-off 51.79 – P17) Prize €40,000

3. Italy Luca Maria Moneta – Connery, Luca Coata – Crandessa, Simone Coata – Dardonge, Natale Chiaudani – Almero. Team total 130.82/198.-4 – P20. Prize €32,000

Asia Cup Qualifier

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Wed Aug 29: Malaysia v Hong Kong, Nepal v Oman, UAE v Singapore

Thu Aug 30: UAE v Nepal, Hong Kong v Singapore, Malaysia v Oman

Sat Sep 1: UAE v Hong Kong, Oman v Singapore, Malaysia v Nepal

Sun Sep 2: Hong Kong v Oman, Malaysia v UAE, Nepal v Singapore

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Real Sociedad v Osasuna (midnight)

What are NFTs?

Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.

You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”

However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.

This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”

This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.