NEW YORK // New Yorkers were still free to gulp from huge sugary drinks today, after a judge struck down the city's pioneering ban on supersized sodas just hours before it was supposed to take effect, handing a defeat to health-conscious mayor Michael Bloomberg.
The big drinks ban – the first of its kind in the US – sparked reaction from city streets to late-night TV talk shows, celebrated by some as a bold attempt to improve people's health and derided by others as another "nanny state" law from Bloomberg during his 11 years in office.
State Supreme Court Justice Milton Tingling's Monday ruling was seen as a victory for the beverage industry, restaurants and other business groups that called the rule unfair and wrong-headed.
Tingling said that the 16-ounce (half-litre) limit on sodas and other sweet drinks arbitrarily applies to only some sugary beverages and some places that sell them. Tingling issued a 36-page ruling that examined the appropriate scope of power for an administrative board for regulations. The judge also said the Bloomberg-appointed Board of Health intruded on the City Council's authority when it imposed the rule.
The drinks limit follows other efforts by the Bloomberg has made to improve New Yorkers' eating habits, from compelling chain restaurants to post calorie counts on their menus to barring artificial trans fats in restaurant food to prodding food manufacturers to use less salt. The city has successfully defended some of those initiatives in court.
The city has also won fights over outlawing smoking in bars and offices, and has promoted breast-feeding over infant formula. Last week, the Bloomberg administration announced a campaign to warn young people they risk hearing loss from cranked-up earphones.
Bloomberg, who has championed the ban as a novel measure for fighting obesity, vowed to appeal the decision.
"We believe the judge is totally in error in how he interpreted the law, and we are confident we will win on appeal," Bloomberg said. He added: "One of the cases we will make is that people are dying every day. This is not a joke. Five thousand people die of obesity every day in America."
For now, though, the ruling it means the axe won't fall on extra-large sodas, sweetened teas and other high-sugar beverages in restaurants, movie theatres, corner delis and sports arenas.
Because of the limits of city authority and exemptions made for other reasons, the ban on big beverages wouldn't cover alcoholic drinks or many lattes and other milk-based concoctions, and it doesn't apply at supermarkets or many convenience stores.
In defending the rule, city officials point to the city's rising obesity rate – about 24 per cent of adults, up from 18 per cent in 2002 – and to studies tying sugary drinks to weight gain. Care for obesity-related illnesses costs government health programs about $2.8 billion a year in New York City alone, according to city health commissioner Dr. Thomas Farley.
The judge acknowledged the impact of obesity on the city's residents, and noted that those bringing suit likewise didn't dispute obesity is a significant health issue, but questioned how much sugary drinks can be blamed for it. Ultimately the judge said whether the issue of obesity is an epidemic is not the key issue here, but whether the board of health has the jurisdiction to decide that obesity is such an issue that it could issue a cap on consumption of sugary drinks.
Critics said the measure is too limited to have a meaningful effect on New Yorkers' waistlines. And they said it would take a bite out of business for the establishments that had to comply, while other places would still be free to sell sugary drinks in 2-litre bottles and supersized cups.
"The court ruling provides a sigh of relief to New Yorkers and thousands of small businesses in New York City that would have been harmed by this arbitrary and unpopular ban," the American Beverage Association and other opponents said, adding that the organisation is open to other "solutions that will have a meaningful and lasting impact".
Beverage makers had expected to spend about $600,000 changing bottles and labels, movie theatre owners feared losing soda sales that account for 10 per cent of their profits, and delis and restaurants would have had to change inventory, reprint menus and make other adjustments, according to court papers.
The city had said that while restaurant inspectors would start enforcing the soda size rule in March, they wouldn't seek fines - $200 for a violation – until June.
In striking down the rule, Tingling further said that the Board of Health went beyond its authority when it approved the size limit in September. The rule strayed into territory that should belong to the elected City Council, not the board appointed by Bloomberg, Tingling wrote.
Some restaurants had already ordered and started using smaller glasses for full-sugar soda, while others began experimenting with freshly squeezed juices as alternatives to soda for children's parties. Dunkin' Donuts shops have been telling customers they will have to sweeten and flavor their own coffee. Coca-Cola has printed posters explaining the rules.
Bloomberg urged businesses to comply despite the court ruling, and not just because the city may yet prevail.
"If you know what you're doing is harmful to people's health, common sense says if you care, you might want to stop doing that," he said.
But an opponent of the measure said the court's ruling "serves as a major blow to Mayor Michael Bloomberg's incessant finger-wagging".
J. Justin Wilson at the Center for Consumer Freedom, created by restaurants and food companies, said: "The court confirmed what most New Yorkers already know. They don't need a government regulator to dictate their diet choices. New Yorkers should celebrate this victory by taking a big gulp of freedom".
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.”
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
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The bio
Who inspires you?
I am in awe of the remarkable women in the Arab region, both big and small, pushing boundaries and becoming role models for generations. Emily Nasrallah was a writer, journalist, teacher and women’s rights activist
How do you relax?
Yoga relaxes me and helps me relieve tension, especially now when we’re practically chained to laptops and desks. I enjoy learning more about music and the history of famous music bands and genres.
What is favourite book?
The Perks of Being a Wallflower - I think I've read it more than 7 times
What is your favourite Arabic film?
Hala2 Lawen (Translation: Where Do We Go Now?) by Nadine Labaki
What is favourite English film?
Mamma Mia
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Al Nassr v Al Rayyan (10pm)
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