NEW YORK // Donald Trump has warned that a war is likely with North Korea unless a diplomatic solution can be found to the stand-off over the pariah state’s nuclear missile programme.
Mr Trump highlighted the risk of a “major, major conflict” at the end of a week when the US tightened sanctions on Pyongyang ahead of a United Nations Security Council meeting on the issue.
The stern message comes as American officials try to clarify their stance on North Korea after a series of mixed signals during Mr Trump’s first 100 days in office. At the same time, the president’s stalled domestic agenda — this week he unveiled plans for tax reform that immediately ran into opposition among some Republicans — has made an early foreign policy success all the more urgent.
Before taking office, Mr Trump was told by Barack Obama, his predecessor, that North Korea would be his biggest challenge.
Satellite evidence suggests Kim Jong Un’s reclusive regime is ready to conduct its sixth nuclear test.
Although it has not yet managed to miniaturise its warheads, US military officers believe trials of ballistic missiles have reached the point where its conventional arsenal could now reach Hawaii, which is American soil.
“There is a chance that we could end up having a major, major conflict with North Korea,” Mr Trump told Reuters in an interview at the Oval Office.
“We’d love to solve things diplomatically but it’s very difficult.”
The US has asked China to increase pressure on North Korea, harnessing its power as Pyongyang’s biggest trade partner. Mr Trump lavished praise on Chinese president Xi Jinping for Chinese assistance in trying to rein in North Korea. The two leaders met in Florida earlier this month.
“I believe he is trying very hard. He certainly doesn’t want to see turmoil and death. He doesn’t want to see it. He is a good man. He is a very good man and I got to know him very well,” Mr Trump said. “With that being said, he loves China and he loves the people of China. I know he would like to be able to do something, perhaps it’s possible that he can’t.”
Any direct US military action would run the risk of massive North Korean retaliation and huge casualties in Japan and South Korea and among US forces in both countries.
When asked if he considered North Korean leader Kim Jong Un to be rational, Mr Trump said he was operating from the assumption that he is rational, and noted that Kim had taken over his country at an early age.
“He’s 27 years old. His father dies, took over a regime. So say what you want, but that is not easy, especially at that age,” Mr Trump said. “I’m not giving him credit or not giving him credit, I’m just saying that’s a very hard thing to do. As to whether or not he’s rational, I have no opinion on it. I hope he’s rational.”
Rex Tillerson, US secretary of state, said last week that Beijing had warned the country it would impose unilateral sanctions if it conducted any more nuclear tests.
It has already banned imports of North Korean coal and oil shipments could follow, according to local media reports.
Chairing a UN Security Council meeting on Friday to build global economic, diplomatic and military pressure against Pyongyang, Mr Tillerson called on UN member states to downgrade diplomatic relations with Pyongyang and underscored the urgency of action.
“With each successive detonation and missile test North Korea pushes north-east Asia and the world closer to instability and broader conflict,” said Mr Tillerson. “The threat of a North Korean attack on Seoul or Tokyo is real.”
But China’s foreign minister Wang Yi warned against potential “chaos” on the Korean peninsula and said dialogue and negotiations were “the only right choice” to address the threat from North Korea.
“The use of force does not solve differences and will only lead to bigger disasters,” Mr Wang told the Security Council.
However, some of Mr Trump’s other comments — such as demanding South Korea pay a billion dollars for an anti-missile shield and renegotiate a free-trade agreement — were hardly reassuring. Nor were they helpful to his secretary of state at a time when Mr Trump needs a united front against Mr Kim.
“It’s phenomenal. It’s the most incredible equipment you’ve ever seen — shoots missiles right out of the sky,” Mr Trump said of the Terminal High Altitude Defence System (THAAD), which is designed to intercept North Korean ballistic missiles.
“And it protects them [South Korea] and I want to protect them. We’re going to protect them. But they should pay for that, and they understand that.”
The missile shield is owned and operated by the US. It was already a controversial issue in South Korea where many are opposed to its presence even before Mr Trump insisted on South Korea paying for it. But the US military began deployment of THAAD in early March, despite strong opposition from both South Korea and China. Moon Jae-in, the favourite to win South Korea’s presidential election on May 9, wanted deployment to be delayed until after the next administration is in place in Seoul and can review the decision, while the Chinese are worried that the system’s powerful radar can be used to spy into its territory.
President Trump also described a five-year-old trade pact as “unacceptable” and said it would be renegotiated, sending shock waves through Seoul’s financial markets.
Mr Trump’s focus on foreign policy is a reminder that his domestic agenda has faltered as he marks 100th day in office on Saturday. Many of the promises he made for his first 100 days remain unfulfilled.
His pre-election pledges included starting a $1 trillion project to rebuild America’s crumbling infrastructure, immediately suspending the Syrian refugee resettlement programme and finding full funding for a wall on the Mexican border. None of those things has happened.
A second bill to repeal and replace ObamaCare is still short of the support it needs to make its way through Congress.
And a one-page proposal to overhaul the US tax system — mostly a package of cuts, some of which benefit the super-rich — released last week is thin on detail and has already attracted criticism from among Mr Trump’s own ranks.
Within a day of Mr Trump’s top economic adviser Gary Cohn and treasury secretary Steven Mnuchin releasing a dozen bullet points outlining the administration’s tax goals, at least three congressmen from the president’s own Republican party criticised one of the key provisions — eliminating the deductibility of state and local taxes — estimated to raise $1.3 trillion over a decade.
Sceptics want to know how the country can afford such generous cuts without vastly increasing the federal debt. Republicans in high-tax Democrat states such as New York, New Jersey and California are also worried about a proposal to scrap a provision which allows local tax payments to be written off against federal tax.
foreign.desk@thenational.ae
UAE currency: the story behind the money in your pockets
CONFIRMED%20LINE-UP
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Silent Hill f
Publisher: Konami
Platforms: PlayStation 5, Xbox Series X/S, PC
Rating: 4.5/5
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
ONCE UPON A TIME IN GAZA
Starring: Nader Abd Alhay, Majd Eid, Ramzi Maqdisi
Directors: Tarzan and Arab Nasser
Rating: 4.5/5
More from Neighbourhood Watch
Auron Mein Kahan Dum Tha
Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar
Director: Neeraj Pandey
Rating: 2.5/5
Company%20Profile
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Zodi%20%26%20Tehu%3A%20Princes%20Of%20The%20Desert
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States of Passion by Nihad Sirees,
Pushkin Press
WHAT%20START-UPS%20IS%20VISA%20SEEKING%3F
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Ads on social media can 'normalise' drugs
A UK report on youth social media habits commissioned by advocacy group Volteface found a quarter of young people were exposed to illegal drug dealers on social media.
The poll of 2,006 people aged 16-24 assessed their exposure to drug dealers online in a nationally representative survey.
Of those admitting to seeing drugs for sale online, 56 per cent saw them advertised on Snapchat, 55 per cent on Instagram and 47 per cent on Facebook.
Cannabis was the drug most pushed by online dealers, with 63 per cent of survey respondents claiming to have seen adverts on social media for the drug, followed by cocaine (26 per cent) and MDMA/ecstasy, with 24 per cent of people.
Greatest Royal Rumble results
John Cena pinned Triple H in a singles match
Cedric Alexander retained the WWE Cruiserweight title against Kalisto
Matt Hardy and Bray Wyatt win the Raw Tag Team titles against Cesaro and Sheamus
Jeff Hardy retained the United States title against Jinder Mahal
Bludgeon Brothers retain the SmackDown Tag Team titles against the Usos
Seth Rollins retains the Intercontinental title against The Miz, Finn Balor and Samoa Joe
AJ Styles remains WWE World Heavyweight champion after he and Shinsuke Nakamura are both counted out
The Undertaker beats Rusev in a casket match
Brock Lesnar retains the WWE Universal title against Roman Reigns in a steel cage match
Braun Strowman won the 50-man Royal Rumble by eliminating Big Cass last
Normcore explained
Something of a fashion anomaly, normcore is essentially a celebration of the unremarkable. The term was first popularised by an article in New York magazine in 2014 and has been dubbed “ugly”, “bland’ and "anti-style" by fashion writers. It’s hallmarks are comfort, a lack of pretentiousness and neutrality – it is a trend for those who would rather not stand out from the crowd. For the most part, the style is unisex, favouring loose silhouettes, thrift-shop threads, baseball caps and boyish trainers. It is important to note that normcore is not synonymous with cheapness or low quality; there are high-fashion brands, including Parisian label Vetements, that specialise in this style. Embraced by fashion-forward street-style stars around the globe, it’s uptake in the UAE has been relatively slow.
Stree
Producer: Maddock Films, Jio Movies
Director: Amar Kaushik
Cast: Rajkummar Rao, Shraddha Kapoor, Pankaj Tripathi, Aparshakti Khurana, Abhishek Banerjee
Rating: 3.5
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
SPECS
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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.”
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
Global institutions: BlackRock and KKR
US-based BlackRock is the world's largest asset manager, with $5.98 trillion of assets under management as of the end of last year. The New York firm run by Larry Fink provides investment management services to institutional clients and retail investors including governments, sovereign wealth funds, corporations, banks and charitable foundations around the world, through a variety of investment vehicles.
KKR & Co, or Kohlberg Kravis Roberts, is a global private equity and investment firm with around $195 billion of assets as of the end of last year. The New York-based firm, founded by Henry Kravis and George Roberts, invests in multiple alternative asset classes through direct or fund-to-fund investments with a particular focus on infrastructure, technology, healthcare, real estate and energy.
SPECS
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RESULT
Valencia 3
Kevin Gameiro 21', 51'
Ferran Torres 67'
Atlanta 4
Josip Llicic 3' (P), 43' (P), 71', 82'