ASHKELON, ISRAEL // Leon Panetta, the US defence secretary, said Iran must either negotiate acceptable limits on its nuclear programme or face the possibility of US military action to stop it from getting the bomb.
Mr Panetta made his remarks today outside the city of Ashkelon in southern Israel, with an "Iron Dome" anti-rocket defence system as a backdrop.
The Pentagon chief repeatedly said that "all options," including military force, are on the table to stop Iran, should sanctions and diplomacy — the preferred means of persuasion — ultimately fail.
He said he still hopes Iran will see that negotiations are the best way out of this crisis.
However, Mr Panetta said, "If they continue and if they proceed with a nuclear weapon, ... we have options that we are prepared to implement to ensure that that does not happen."
Ehud Barak, the Israeli defence minister, said he sees an "extremely low" probability that sanctions will ever compel Iran to give up its nuclear activities.
Mr Barak said Israel "has something to lose" by waiting for sanctions and diplomacy to run their course because Iran is continually accumulating enriched uranium as the key ingredient for a nuclear bomb.
Iran said its nuclear work is for civilian energy uses, but suspicions that the Islamic republic will use enriched uranium for nuclear weapons have resulted in international sanctions and sabre-rattling from Israel, which perceives a nuclear Iran as an existential threat. The United States has discouraged Israel from a unilateral, pre-emptive military strike on Iran, but has said it would keep all options available.
The visit by Mr Panetta to Israel comes just days after US Republican presidential hopeful Mitt Romney met with top Israeli officials about Iran and other issues. Mr Romney has accused the Obama administration of being too soft on Iran and not providing sufficient support to Israel.
In greeting Mr Panetta today at Israeli defence headquarters, Mr Barak said: "The defence ties between Israel and the United States are stronger and tighter than they have ever been and the credit now has to go, most of it, to you, Leon."
Mr Panetta responded: "We are a friend, we are a partner, we have, as the defence minister has pointed out, probably the strongest US-Israel defence relationship that we have had in history. What we are doing, working together, is an indication not only of our friendship but of our alliance to work together to try to preserve peace in the future."
Benjamin Netanyahu, the Israeli prime minister, who was scheduled to meet later today with Mr Panetta, told Israeli Channel 2 TV that despite reservations about an Iranian attack among former Israeli security officials and Israel's current army chief, the country's political leadership would make the final decision on any attack.
"I see an ayatollah regime that declares what it has championed: to destroy us," Mr Netanyahu said. "It's working to destroy us, it's preparing nuclear weapons to destroy us. ... If it is up to me, I won't let that happen."
"[With] matters that have to do with our destiny, with our very existence, we do not put our faith in the hands of others, even our best of friends," Mr Netanyahu said, hinting that Israel might act alone despite American misgivings.
Mr Netanyahu said both Mr Romney and Mr Obama have said "Israel has the right to defend itself."
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.”
Specs
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Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
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Pakistan v New Zealand Test series
Pakistan: Sarfraz (c), Hafeez, Imam, Azhar, Sohail, Shafiq, Azam, Saad, Yasir, Asif, Abbas, Hassan, Afridi, Ashraf, Hamza
New Zealand: Williamson (c), Blundell, Boult, De Grandhomme, Henry, Latham, Nicholls, Ajaz, Raval, Sodhi, Somerville, Southee, Taylor, Wagner
Umpires: Bruce Oxerford (AUS) and Ian Gould (ENG); TV umpire: Paul Reiffel (AUS); Match referee: David Boon (AUS)
Tickets and schedule: Entry is free for all spectators. Gates open at 9am. Play commences at 10am
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Conservative MPs who have publicly revealed sending letters of no confidence
- Steve Baker
- Peter Bone
- Ben Bradley
- Andrew Bridgen
- Maria Caulfield
- Simon Clarke
- Philip Davies
- Nadine Dorries
- James Duddridge
- Mark Francois
- Chris Green
- Adam Holloway
- Andrea Jenkyns
- Anne-Marie Morris
- Sheryll Murray
- Jacob Rees-Mogg
- Laurence Robertson
- Lee Rowley
- Henry Smith
- Martin Vickers
- John Whittingdale
A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
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