A second presidential term for Donald Trump could see the end of the Nato alliance, a group of senior American and French academics say.
The concerns arose after Mr Trump accused Berlin, one of America's most important allies, of failing to meet Nato's spending targets and said the US would cut its troop presence in Germany by more than one quarter.
“So, we're protecting Germany and they're delinquent,” he said on Monday. “That doesn't make sense.
"So I said, 'We're going to bring down the count to 25,000 soldiers'.
“They treat us very badly on trade.”
The planned reduction of 9,500 troops undermines the Nato alliance, which has proved important for post-war European security.
US and French academics and senior retired officials have said another term in office for Mr Trump could fatally weaken an alliance that deters Russian aggression and protects the international rules-based order.
Leading defence academic Michael Clarke was told of the concerns during a conference at the US Centre for Strategic and International Studies last week.
"The Americans were saying that if Trump wins in November, then Nato would be in serious, serious trouble," Mr Clarke, of the Royal United Services Institute, told The National.
"It would be really difficult to hold the whole thing together. Another Trump presidency would so undermine the transatlantic relationship that it would be hard to see what was left of Nato.
"It would be really, really bad for relations because he doesn’t get it, he’s not prepared to see transatlantic relations as previous presidents have.”
The next presidential election is on November 3 and it is not clear if Mr Trump will be able to withdraw the troops by then.
Fellow Republicans in Congress have already argued that a cut would benefit Russia.
The view that Nato could “break” under another Trump term was supported by Bastian Giegerich, of the International Institute for Strategic Studies.
“You can repair the damage from a four-year term but in eight years a lot will break,” Mr Giegerich said.
“If Trump gets re-elected and he continues on this path of treating Nato like a protection racket, I think that undermines the heart of Nato, which is predictable and respectful behaviour.
"Without that trust, Nato will find it hard to exist.”
Mr Trump’s complaint about underspending is accurate. Many of Nato’s 30 member states, including Germany, have not reached the set target of spending 2 per cent of GDP on defence.
The US spent 3.4 per cent last year compared with Germany’s 1.4, although its defence budget is increasing.
Mr Giegerich said polling showed Germans would be in favour of an increase in their defence budget.
“But this should be a conversation not based on threats and on hectoring from Donald Trump," he said.
"The best argument you can make to prevent more defence spending in Germany now is to say you just want to spend money for Donald Trump. He’s actually not helping.”
Berlin has yet to give an official response.
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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UAE-based players
Goodlands Riders: Jamshaid Butt, Ali Abid, JD Mahesh, Vibhor Shahi, Faizan Asif, Nadeem Rahim
Rose Hill Warriors: Faraz Sheikh, Ashok Kumar, Thabreez Ali, Janaka Chathuranga, Muzammil Afridi, Ameer Hamza
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
EMERGENCY PHONE NUMBERS
Estijaba – 8001717 – number to call to request coronavirus testing
Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries
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Scoreline
Man Utd 2 Pogba 27', Martial 49'
Everton 1 Sigurdsson 77'
Company%20profile
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The Transfiguration
Director: Michael O’Shea
Starring: Eric Ruffin, Chloe Levine
Three stars
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
UAE currency: the story behind the money in your pockets
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The Vile
Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah
Director: Majid Al Ansari
Rating: 4/5
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