US healthcare debate takes ugly turn


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WASHINGTON DC // The already unwieldy debate over healthcare reform grew stranger and darker this week, drawing in the British physicist Stephen Hawking, "death panels", a gun-toting protester and Nazi Germany. Although Barack Obama was elected to the US presidency less than a year ago on promises he would fundamentally reform healthcare and "move beyond the divisive politics of Washington", this week he, along with Democratic congressmen, has struggled to refocus the conversation on factual healthcare concerns and distinguish it from a bouquet of fears about government powers that have some conservatives so riled.

Chief among protesters' concerns are that the government would ration care and determine who gets treatment for what ailments. Mr Obama, and other Democrats, have been trying to counter opposition to the US$1 trillion overhaul by holding a series of town hall meetings across the country, including one yesterday and another today. But their message, that the reforms are necessary to ensure that the 45 million Americans currently without health insurance are covered, has often been overshadowed by the media hype surrounding the emotive protests at town halls and stubborn rumours.

Reform advocates say corporations with financial interest in the status quo and politically motivated personalities have incited the outrage. Sarah Palin, the former candidate for US vice president, has accused Mr Obama of wanting to set up "death panels". In a recent Facebook note she described a hypothetical scenario in which her parents or her baby with Down syndrome would have to stand before "Obama's 'death panel' so his bureaucrats can decide, based on a subjective judgment of their 'level of productivity in society', whether they are worthy of health care".

Mr Obama has repeatedly denied his health proposals include a "death panel", but the phrase has stuck, and, like the rumours that dogged him during the presidential campaign - that he was a Muslim and not born in the United States - has gained a momentum of its own. Some opponents have likened the "death panels" to Nazi Germany, where children and adults with disabilities were executed, and Mr Obama to Hitler.

The Republicans have also railed against Britain's "Orwellian" National Health System (NHS), which they said was the template for Mr Obama's healthcare reforms. The critics have accused the service of allowing elderly people to die untreated and putting a value on human life. A recent editorial in the Investor's Business Daily, a US-based newspaper, which decried "horrors" of British healthcare, said that Stephen Hawking, the wheelchair-bound scientist, "wouldn't have a chance in the UK, where the National Health Service would say the life of this brilliant man, because of his physical handicaps, is essentially worthless".

Mr Hawking, in Washington this week to receive the Presidential Medal of Freedom, the United States' highest civilian honour, for his contributions to science, came out and defended the health service. In an interview with the British newspaper The Guardian, he said he "wouldn't be here today if it were not for the NHS". The Investor's Business Daily later issued a correction, acknowledging that Mr Hawking did indeed survive the British system, but said he did so only because of his renown.

The scientist's comments, however, had already spurred a flurry of support on Twitter. The topic #welovetheNHS was on several occasions the site's top topic and included several Tweets from Gordon Brown, the British prime minister. The topic was so popular it reportedly briefly crashed the Twitter site on Wednesday. William Galston, a senior fellow at the Brookings Institution and one-time adviser to Bill Clinton when he was president, noted that the protests and the debate in the United States are "not just about healthcare".

"Over the past year, the federal government has responded to the economic emergency by wielding nearly unprecedented powers," he said. "Clearly there are a number of conservative Americans who are concerned by the expansion of the powers of the federal government. This is about a deep political polarisation of the country. The gap between the two political parties is as wide as it's been in a very long time."

The US administration says delay over agreeing healthcare proposals means more Americans will suffer as a result of the country's current faulty health care system and denies it had hoped to avoid the confrontations that are now playing out. Robert Gibbs, the White House press secretary, on Wednesday accused some in the press corps of being disappointed that the president "didn't get yelled at" during his town hall event in New Hampshire, a suggestion that the media have been hamming up the protests by highlighting the most extreme cases.

Outside the presidential event in New Hampshire, TV cameras caught a protester carrying what turned out to be a loaded weapon and a sign that read, "It is time to water the tree of liberty." That is the first part of a Thomas Jefferson quote that continues "? from time to time with the blood of tyrants and patriots." Mr Kostric was breaking no laws in carrying the firearm and police told the media that he was under careful surveillance. Guns - mostly but not all licensed and legal - have also appeared at numerous non-presidential town hall events across the country.

Although many analysts, including conservatives, expect some sort of healthcare legislation to be signed into law by October, it is unclear if the protesters themselves are winning over converts or having the opposite effect of repelling people. * The National

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Saudi Arabia – 103 infected, 0 dead, 1 recovered

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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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