Trump warns defiant Khamenei to be 'careful with his words'


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US President Donald Trump said Iran's supreme leader Ayatollah Ali Khamenei should be careful about what he says after he harshly criticised the US in a Friday prayers sermon in Tehran.

Mr Trump took to Twitter to rebuke Mr Khamenei for the "nasty things" he said about western powers during the sermon.

"The so-called 'Supreme Leader' of Iran, who has not been so Supreme lately, had some nasty things to say about the United States and Europe," Mr Trump said.

"Their economy is crashing, and their people are suffering. He should be very careful with his words!"

Mr Khamenei described Mr Trump as a "clown" who pretends to support the Iranian people but will "push a poisonous dagger" in their back.

In his first Friday sermon in Tehran for eight years, which aimed to address domestic anger over the accidental shooting down of a passenger plane, Mr Khamenei said Iran "slapped the US in the face" with a series of missile strikes on Iraqi bases housing US soldiers.

"The fact that Iran has the power to give such a slap to a world power shows the hand of God," Mr Khamenei, 80, said.

His comments were met by chants of "Death to America".

Brian Hook, the US Special representative for Iran, said threats made Mr Khamenei towards the US would only serve to further isolate Tehran.

"As long as the regime threatens the world it will become more isolated. Until Iran behaves like a normal nation its isolation will only deepen," Mr Hook said.

An image grab from footage obtained from the state-run Iran Press news agency on January 17, 2020 shows Iranians cheering during the sermon. AFP
An image grab from footage obtained from the state-run Iran Press news agency on January 17, 2020 shows Iranians cheering during the sermon. AFP

In his sermon, Mr Khamenei addressed the "tragic, very sad incident" when the Iranian military shot down Ukraine International Airlines Flight 752, killing 176 people.

He said Iran's enemies were using the incident to weaken the grip of the Islamic Revolutionary Guards Corps and to overshadow the US air strike that killed top Iranian military commander Qassem Suleimani in Baghdad.

"The plane crash was a bitter accident. It burned through our heart," Mr Khamenei said.

"But some tried to ... portray it in a way to forget the great martyrdom and sacrifice" of Suleimani, the head of the Quds Force, the foreign operations arm of the IRGC.

Mr Khamenei said Iranians and thousands of Iraqis mourned Suliemani and described Quds Force as "fighters without borders" and a "humanitarian organisation with human values".

Mr Khamenei said the IRGC "maintains Iranian security".

Suleimani's killing on January 3 triggered an outpouring of grief from Iranians. Mr Khamenei openly wept at the funeral and vowed “harsh retaliation” against the US.

But public anger against the Iranian regime on January 11 when it admitted shooting down the passenger plane, sparking three days of protests that were suppressed with the use of tear gas and live ammunition.

In his sermon, Mr Khamenei called for unity and a high turnout in a February election.

Abroad, the Iranian government and military have been accused of attempting to cover up the incident after waiting three days to admit it shot down the aircraft minutes after it took off from Imam Khomeini International Airport. At least 57 Canadians, 11 Ukrainians and 10 Swedes were among those killed, as well as four Afghans and four British citizens.

Foreign ministers of those five countries met in London on Thursday and called for full and continuing co-operation from Iran in an investigation into the incident.

The ministers also called for Iran to take the first step in offering compensation.

Iran also faces the prospect of more international sanctions as its economy reels from increasingly stringent restrictions imposed by Mr Trump since he pulled the US out of a nuclear deal between Iran and world powers.

After Suleimani was killed, Iran said it would no longer be bound by the limitations in the 2015 agreement, which imposed restrictions on its nuclear programme in exchange for the lifting of international sanctions.

European countries have been trying to salvage the deal and this week by invoked a dispute mechanism aimed at bringing Iran back into compliance. The mechanism could result in a re-imposition of sanctions.

Mr Khamenei said France, Germany and Britain were serving US interests and could be trusted.

"The iron hands of European negotiators are hidden under velvet gloves," he said.

Mr Khamenei, who has held the country's top office since 1989 and has the final say on all major decisions, was always sceptical of the nuclear agreement, arguing the US could not be trusted.

But he allowed Iranian President Hassan Rouhani, a relative moderate, to conclude the agreement with Barack Obama, the US president at the time. After Mr Trump pulled the US out of the pact, Mr Khamenei said there could be no negotiations with Washington.

Mr Khamenei last delivered a Friday sermon in February 2012, when he called Israel a “cancerous tumor” and pledged to support anyone who confronted it. He also warned against any US strikes on Iran over its nuclear programme, saying the US would be damaged “10 times over”.

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Marat Safin 1 (1 Australian Open)

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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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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

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