Australian Deputy Prime Minister Barnaby Joyce speaks to reporters in Tamworth, Australia. Mr Joyce resigned from Cabinet on Friday over allegations that he sexually harassed a woman. Australia Broadcasting Corporation via AP
Australian Deputy Prime Minister Barnaby Joyce speaks to reporters in Tamworth, Australia. Mr Joyce resigned from Cabinet on Friday over allegations that he sexually harassed a woman. Australia Broadcasting Corporation via AP
Australian Deputy Prime Minister Barnaby Joyce speaks to reporters in Tamworth, Australia. Mr Joyce resigned from Cabinet on Friday over allegations that he sexually harassed a woman. Australia Broadcasting Corporation via AP
Australian Deputy Prime Minister Barnaby Joyce speaks to reporters in Tamworth, Australia. Mr Joyce resigned from Cabinet on Friday over allegations that he sexually harassed a woman. Australia Broadc

Australia's deputy PM resigns over sexual harassment claims


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Australia's deputy prime minister said on Friday he will resign as leader of his party after weeks of pressure over an affair with a staffer that brought him into open conflict with his premier and a new allegation of sexual harassment emerged.

Barnaby Joyce said he will step down on Monday as leader of the National party, the junior partner in Prime Minister Malcolm Turnbull's centre-right coalition, after resisting earlier calls to quit over the affair with his former media secretary, with whom he is expecting a child.

He will remain in parliament, safeguarding Mr Turnbull's shaky one-seat majority.

Mr Joyce's decision came after a falling-out with Mr Turnbull, who is in the United States for meetings with President Donald Trump and who declined to leave him in charge while he is out of the country.

Mr Turnbull called Mr Joyce's affair a "shocking error of judgement" last week, to which Mr Joyce responded by calling Mr Turnbull "inept".

Mr Joyce, a practising Catholic, has been married for 24 years and has campaigned on family values. He said he decided to quit after the new allegation of sexual harassment emerged on Friday.

He denied any wrongdoing but acknowledged the allegation had hastened his decision.

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"I will say on Monday morning at the party room I will step down as the leader of the National Party and deputy leader of Australia," Mr Joyce said.

Mr Joyce, whose support base rests in Australia's traditionally conservative rural areas, wore his trademark Akubra bushman's hat as he spoke to journalists in Armidale, the farming town he represents about 485 km (300 miles) northeast of Sydney.

Little-known outside Australia, Mr Joyce made international headlines in 2015 when he deported two dogs brought into Australia by US actor Johnny Depp without the proper paperwork, a row that became known as the "war on terrier".

Mr Joyce had only been back in parliament less than a month after falling victim to a citizenship crisis that has dogged Mr Turnbull's government. Australia's High Court deemed Joyce was a New Zealand citizen in October, forcing Mr Turnbull to rule in minority until Mr Joyce re-contested and won his seat again.

National Party federal director Ben Hindmarsh said on Friday the party had received the sexual harassment allegation against Mr Joyce but declined to give any details.

A spokesman said Mr Joyce believed the claim to be "spurious and defamatory" and had asked for it to be referred to police.

The National Party will now elect a new leader, who will also become deputy prime minister under the terms of the coalition agreement with Turnbull's Liberal party.

Veterans Affairs Minister Michael McCormack and David Gillespie, the assistant minister for children and families, both said they would contest the leadership ballot on Monday.

Mr Joyce's resignation will potentially heal the rift between the Liberal and National parties, a political alliance that has existed for nearly 100 years.

Nick Economou, senior lecturer in Australian politics at Monash University in Melbourne, said it would have been impossible for both Mr Turnbull and Mr Joyce to return to parliament next week after they fell out.

"In Australian politics, disunity is death," Dr Economou said.

Two-thirds of Australian voters wanted Mr Joyce to resign, The Australian newspaper's Newspoll showed earlier this week.

Mr Joyce's decision to resign should get the row off the front pages, offering Mr Turnbull at least temporary respite, although Mr Joyce will now sit on the backbench with former prime minister Tony Abbott, the man Mr Turnbull ousted in a 2015 party-room coup.

Freed from Cabinet restraints, Mr Abbott has criticised Mr Turnbull's policies from the backbench, although Mr Joyce said he would not destabilise the government.

Mr Turnbull must head back to the polls by May 2019.

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.”