Follow the latest news on the US midterm elections 2022
With the Republican Party set to snag a narrow majority in the US House of Representatives following Tuesday's midterm elections, the White House will be bracing for oversight and a series of investigations into foreign policy matters including Ukraine, Afghanistan and Iran.
While the new Congress will mostly be preoccupied with domestic issues such as inflation and petrol prices, Republicans who will now lead major committees in the House have signalled their readiness to pressure President Joe Biden's administration on national security issues.
Future of Ukraine aid
Last month, House Republican leader Kevin McCarthy said that if his party takes the majority in the chamber, it will not approve bottomless aid for Ukraine.
“People are going to be sitting in a recession and they’re not going to write a blank cheque to Ukraine,” Mr McCarthy, who is the leading candidate to become speaker of the House, said in mid-October.
The US has sent Ukraine an estimated $60 billion in security aid since the Russian invasion began in February.
Ukraine war latest — in pictures
Although there is bipartisan support for Ukraine, the isolationist wing of the Republican Party — in addition to a few progressive Democrats — have openly criticised the unconditional backing of Kyiv.
But Clayton Allen, a policy expert at the Eurasia Group, said Mr McCarthy’s comments are not the same as vowing to stop support.
“No blank cheque is not the same thing as saying no cheque,” Mr Allen said on Wednesday in a briefing with reporters.
“What he [Mr McCarthy] was forecasting was us going to be in a recession next year, and voters are not going to have the patience to give $50 billion with no conditions.”
Within the Senate, there is also division over Ukraine. While members close to Mr Trump such as JD Vance, a newly elected senator from Ohio, have called for a cut in aid, the majority of Republicans in the Senate oppose that policy.
JD Vance gets into heated debate over 2020 election — video
Senate Republican leader Mitch McConnell broke with Mr McCarthy on the issue last month and called for increased support to the Eastern European country.
Mr Allen expected more oversight and questions to both the White House and Kyiv over the security aid but not a cut.
Iran deal and protests
Republicans in the House are also likely to increase pressure on the White House when it comes to Iran, whether by objecting to a return to the nuclear deal of 2015 or pushing for more action on the current protests.
Richard Goldberg, a former Iran analyst on the US National Security Council and a senior adviser at the Foundation for Defence of Democracies, said a Republican House will complicate Mr Biden’s Iran policy.
“The new majority will be able to hold hearings, conduct investigations, pass legislation and — perhaps most importantly — schedule an up-or-down vote to reject any future nuclear deal,” Mr Goldberg told The National.
He said the US Special Envoy to Iran Robert Malley could personally find himself a target of those hearings.
Protests in Iran continue — in pictures
“If you're Rob Malley, facing the likelihood of congressional investigations into things like his communications with Russia or his [alleged] offers to pay billions of dollars for hostages … you have to think long and hard about staying on as Iran envoy,” the expert said.
And as protests continue in Iran over the death of Mahsa Amini in police custody, Mr Goldberg argued that a new Congress will increase the support and the pressure on the White House to act decisively.
Elsewhere in the Middle East, with the likelihood of Democrats retaining the Senate, a continuity in policy is expected when it comes to confirming ambassadors, supporting the Lebanese Armed Forces, working with the Palestinian Authority and supporting US partners in the region.
Afghanistan hearings
The new House of Representatives is likely to turn up the heat over Afghanistan, where Mr Biden’s rushed withdrawal in 2021 was heavily criticised by Republicans.
Michael McCaul, who is likely become the chairman of the House Foreign Affairs Committee, sent a letter to US Secretary of State Antony Blinken last month “requesting the preservation of all documents related to the disastrous withdrawal from Afghanistan”.
“Access to this information is critical to the constitutional legislative and oversight responsibilities of Congress, and it is unacceptable for such requests to be ignored or given the attention they deserve,” he wrote.
Such a request could initiate congressional inquiries, investigations and subpoenas.
A Republican House will also look into US policy in the Western Hemisphere, where more leftist leaders have taken control in Brazil, Chile and Honduras.
On China, Republicans have signalled more willingness to arm Taiwan and embrace tougher trade policies.
The new Congress is expected to start its session on January 3.
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The Light of the Moon
Director: Jessica M Thompson
Starring: Stephanie Beatriz, Michael Stahl-David
Three stars
World Cup final
Who: France v Croatia
When: Sunday, July 15, 7pm (UAE)
TV: Game will be shown live on BeIN Sports for viewers in the Mena region
Monster Hunter: World
Capcom
PlayStation 4, Xbox One
FA Cup quarter-final draw
The matches will be played across the weekend of 21 and 22 March
Sheffield United v Arsenal
Newcastle v Manchester City
Norwich v Derby/Manchester United
Leicester City v Chelsea
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.”
Multitasking pays off for money goals
Tackling money goals one at a time cost financial literacy expert Barbara O'Neill at least $1 million.
That's how much Ms O'Neill, a distinguished professor at Rutgers University in the US, figures she lost by starting saving for retirement only after she had created an emergency fund, bought a car with cash and purchased a home.
"I tell students that eventually, 30 years later, I hit the million-dollar mark, but I could've had $2 million," Ms O'Neill says.
Too often, financial experts say, people want to attack their money goals one at a time: "As soon as I pay off my credit card debt, then I'll start saving for a home," or, "As soon as I pay off my student loan debt, then I'll start saving for retirement"."
People do not realise how costly the words "as soon as" can be. Paying off debt is a worthy goal, but it should not come at the expense of other goals, particularly saving for retirement. The sooner money is contributed, the longer it can benefit from compounded returns. Compounded returns are when your investment gains earn their own gains, which can dramatically increase your balances over time.
"By putting off saving for the future, you are really inhibiting yourself from benefiting from that wonderful magic," says Kimberly Zimmerman Rand , an accredited financial counsellor and principal at Dragonfly Financial Solutions in Boston. "If you can start saving today ... you are going to have a lot more five years from now than if you decide to pay off debt for three years and start saving in year four."
The biog
Simon Nadim has completed 7,000 dives.
The hardest dive in the UAE is the German U-boat 110m down off the Fujairah coast.
As a child, he loved the documentaries of Jacques Cousteau
He also led a team that discovered the long-lost portion of the Ines oil tanker.
If you are interested in diving, he runs the XR Hub Dive Centre in Fujairah