US shoots down object high over Alaska


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President Joe Biden ordered a high-altitude object to be shot down after it was tracked over Alaska on Friday.

“The Department of Defence was tracking a high-altitude object over Alaska airspace in the last 24 hours,” White House National Security Council spokesman John Kirby told reporters.

The object was flying at an altitude of 12,000 metres and was roughly the size of a small car, Mr Kirby said.

The origins of the aircraft were unknown.

“I have no idea,” Mr Kirby said of who may have operated the aircraft.

“We do not know who owns it, whether state owned or corporate owned. We don't understand the full purpose.”

Mr Kirby did not say whether or not the object was a balloon.

The US military on Thursday night sent a plane to observe the object and determined it was not manned.

Mr Kirby said the object then fell on to frozen US territorial waters, meaning retrieval of debris should be possible.

“Fighter aircraft assigned to US Northern Command took down the object within the last hour,” he said, meaning it was destroyed around 2pm ET.

The incident comes after the military shot down a suspected Chinese spy balloon at the weekend. Mr Kirby said the US had not contacted China about the object shot down over Alaska.

The US on Friday blacklisted five Chinese companies and a research institute in retaliation for the suspected spy balloon.

They were targeted for “their support to China’s military modernisation efforts, specifically the People’s Liberation Army’s aerospace programmes including airships and balloons”, the US Bureau of Industry and Security said.

Mr Kirby said the object spotted above Alaska on Thursday night was thought to not have the self-propulsion or manoeuvrability capabilities like the balloon the US downed.

Because it was a smaller object than the Chinese balloon, which was more than 60 metres wide and over 900 kilograms, the object downed on Friday was expected to create a far smaller debris field.

Pentagon spokesman Brig Gen Pat Ryder told reporters that an F-22 fighter aircraft based at Joint Base Elmendorf-Richardson had shot down the object using the same type of missile used to take down the balloon nearly a week ago.

Ahead of the the shoot-down, the Federal Aviation Administration restricted flights over the area on the Beaufort Sea about 160 kilometres from the Canadian border.

Suspected Chinese spy balloon shot down — in pictures

  • The suspected Chinese spy balloon drifts to the ocean after being shot down off the US coast, as seen from South Carolina. Reuters
    The suspected Chinese spy balloon drifts to the ocean after being shot down off the US coast, as seen from South Carolina. Reuters
  • President Joe Biden congratulated fighter pilots for taking down the suspected spy balloon. AFP
    President Joe Biden congratulated fighter pilots for taking down the suspected spy balloon. AFP
  • The balloon seen from Holden Beach. Reuters
    The balloon seen from Holden Beach. Reuters
  • Spectators watch from the coast. Reuters
    Spectators watch from the coast. Reuters
  • A jet flies by the balloon. Reuters
    A jet flies by the balloon. Reuters
  • Another spectator watches after the balloon was shot down. Reuters
    Another spectator watches after the balloon was shot down. Reuters
  • The suspected Chinese spy balloon over Billings, Montana. AFP
    The suspected Chinese spy balloon over Billings, Montana. AFP
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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.”

Updated: February 11, 2023, 10:50 AM