Acting Israeli Prime Minister and leader of the Likud party Benjamin Netanyahu attends his party faction meeting at the Knesset in Jerusalem, Israel, 23 September 2019. EPA
Acting Israeli Prime Minister and leader of the Likud party Benjamin Netanyahu attends his party faction meeting at the Knesset in Jerusalem, Israel, 23 September 2019. EPA
Acting Israeli Prime Minister and leader of the Likud party Benjamin Netanyahu attends his party faction meeting at the Knesset in Jerusalem, Israel, 23 September 2019. EPA
Acting Israeli Prime Minister and leader of the Likud party Benjamin Netanyahu attends his party faction meeting at the Knesset in Jerusalem, Israel, 23 September 2019. EPA

Israel's main parties begin talks on coalition government


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Israel's two main political parties launched discussions on Tuesday in a bid to form a unity government after elections produced another deadlock following an earlier vote this year.

Tuesday's meeting between party representatives comes a day after Blue and White leader Benny Gantz and Prime Minister Benjamin Netanyahu of the rival Likud party held their first meeting since the polling. Israeli President Reuven Rivlin brought them together in hopes of breaking a political impasse that could send the nation into months of limbo and potentially force a third election in less than a year.

The two men are due to meet again with Mr Rivlin on Wednesday, when the president could make his decision on who has the first shot at forming a majority coalition.

Mr Netanyahu currently has the support of 55 seats, while Mr Gantz has 54 seats. Both have fallen short of the 61 seats required to form a majority coalition. But Mr Gantz finished with the most seats for an individual party, 33, while Mr Netanyahu only amassed 31 seats.

Mr Gantz noted on Monday that his party is the largest and he should be in the lead.

"The public has chosen change and we have no intention of relinquishing our lead, our principles or our natural partners in this path," Mr Gantz said late on Monday.

Israel's president is responsible for choosing a candidate for prime minister after national elections. That task is usually a formality, but far more complicated this time since neither of the candidates can build a stable parliamentary majority on his own.

Mr Gantz met earlier with Avigdor Lieberman, a political free agent and likely kingmaker thanks to his eight seats in parliament.

"Happily, the two big parties have internalised the pressing necessity of setting up a unity government with a rotating premiership," Mr Lieberman said on Facebook.

Concluding their meeting at Mr Rivlin's Jerusalem office, Mr Netanyahu and Mr Gantz issued a joint statement saying they had discussed "moving forward with unity". It did not elaborate.

"The entire argument right now is over the question of who will serve first as prime minister, and who second," said Mr Lieberman.

Such a rotation has a precedent in the 1984-88 unity government of left-leaning Shimon Peres and right-winger Yitzhak Shamir, who took turns as prime minister.

If a power-sharing deal is forged, it could be imperative for Mr Netanyahu to serve as prime minister first should he seek to avoid prosecution.

Next month, Israel's attorney-general will hold a pretrial hearing on his announced intention to indict the Israeli leader on fraud and bribery charges in three corruption cases. Mr Netanyahu, who denies any wrongdoing, can argue against an indictment at the hearing.

As prime minister, Mr Netanyahu would be under no legal obligation to resign if formal charges are filed. But any other cabinet post might not offer him that protection.

If a third election is called, Mr Gantz, an ex-military chief who mounted his challenge to the prime minister with no prior political experience, will face a formidable negotiating foe in Mr Netanyahu.

He is Israel's longest-serving prime minister, having held the post for f more than 13 years, and has repeatedly outmanoeuvred rivals with his sharp political skills.

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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MATCH INFO

Schalke 0

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Man of the match Leonardo Bittencourt (Werder Bremen)

Key findings of Jenkins report
  • Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Red flags
  • Promises of high, fixed or 'guaranteed' returns.
  • Unregulated structured products or complex investments often used to bypass traditional safeguards.
  • Lack of clear information, vague language, no access to audited financials.
  • Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
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Courtesy: Carol Glynn, founder of Conscious Finance Coaching

MATCH INFO

Uefa Champions League last-16, second leg:

Real Madrid 1 (Asensio 70'), Ajax 4 (Ziyech 7', Neres 18', Tadic 62', Schone 72')

Ajax win 5-3 on aggregate

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An Islamic bond structured in a way to generate returns without violating Sharia strictures on prohibition of interest.

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Starring: Yasmine Al Massri, Clara Khoury, Kamel El Basha, Ashraf Barhoum

Rating: 4/5

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Second Test

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