John Fetterman wins in Pennsylvania as Democrats hold back 'red wave' in midterms 2022


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Follow the latest news on the US midterm elections 2022

Control of the US Congress remained uncertain on Wednesday morning, as Democrats won several key races, apparently holding back a so-called red wave of widespread Republican victories.

The biggest victory for Democrats on Tuesday night came in Pennsylvania, where Lieutenant Governor John Fetterman defeated Republican candidate Mehmet Oz. Mr Fetterman's win was a significant pickup for the Democratic Party, as the seat was previously in Republican hands.

“I’m so humbled,” Mr Fetterman, who suffered a stroke earlier this year, told his supporters on Wednesday morning.

“This campaign has always been about fighting for everyone who’s ever been knocked down that ever got back up.”

President Joe Biden sent a congratulatory text to Mr Fetterman after the race was called, the White House said.

With the Senate split 50-50 heading into the midterms, winning the Pennsylvania seat was crucial for Democrats' chances of retaining power in the upper chamber of Congress. Thirty-five of the 100 seats in the chamber were up for grabs.

Democrats also held on to a crucial Senate seat in New Hampshire, though Hillbilly Elegy author JD Vance won the Ohio Senate seat for Republicans.

As of Wednesday morning, Democrats were in control of 48 seats in the Senate compared to Republicans' 47. Senate results are still pending in five states.

Races in Wisconsin, Nevada, Arizona and Georgia were still too early to call.

Democrats and Republicans in tight race to control the House

Democrats also showed surprising strength in races for the House of Representatives across the country, rebuffing predictions that a “red wave” of conservative voters would sweep Republicans to power in the lower chamber.

Republicans need a net gain of five seats to win control of the 435-member House of Representatives.

House Minority Leader Kevin McCarthy, expected to become the next House speaker if Republicans win control, was optimistic that his party would win.

“When you wake up tomorrow, we will be in the majority,” he told supporters during a watch party in Washington.

Meanwhile, House Speaker Nancy Pelosi noted that her Democratic colleagues were performing better than expected.

“While many races remain too close to call, it is clear that House Democratic members and candidates are strongly outperforming expectations across the country,” she said in a statement.

Democrats Abigail Spanberger and Jennifer Wexton fought off Republican challenges in their respective districts in Virginia.

As of Wednesday morning, Republicans were in control of 197 seats in the House versus the Democrats' 172. Results are still pending in 66 districts.

A party must hold at least 218 seats to win power in the House of Representatives.

With the fate of Congress still uncertain, so, too, is Mr Biden's agenda. A Republican-controlled Congress would deal a significant setback to Mr Biden in his final two years in office as they could block judicial appointments, establish investigatory committees and obstruct pieces of legislation.

A Republican rout in Florida

While results were mixed elsewhere, Republican candidates claimed major victories in the US state of Florida, offering further evidence that the state is becoming increasingly conservative.

Marco Rubio handily defeated Democrat Val Demings to retain his seat in the Senate.

And Governor Ron DeSantis, who narrowly won the governorship four years ago, secured a landslide victory in his re-election bid against Democratic challenger Charlie Crist.

“We fight the woke in the legislature,” he said in his victory speech, referring to progressive Democrats' focus on social justice. “We fight the woke in the schools. We fight the woke in the corporations. We will never, ever surrender to the woke mob. Florida is where woke goes to die.”

Mr DeSantis is seen as a potential challenger to former president Donald Trump for the 2024 presidential nomination. Mr Trump on Tuesday encouraged Mr DeSantis not to run for the White House.

“I think he would be making a mistake, I think the base would not like it,” Fox News quoted Mr Trump on Monday as saying. “I don't think it would be good for the party.”

The Associated Press contributed to this report

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Libya's Gold

UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves. 

The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.

Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.

A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.

NBA Finals results

Game 1: Warriors 124, Cavaliers 114
Game 2: Warriors 122, Cavaliers 103
Game 3: Cavaliers 102, Warriors 110
Game 4: In Cleveland, Sunday (Monday morning UAE)

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.”

Updated: November 10, 2022, 11:02 AM