Buckley Space Force Base in Colorado. Sentinel Colorado / AP
Buckley Space Force Base in Colorado. Sentinel Colorado / AP
Buckley Space Force Base in Colorado. Sentinel Colorado / AP
Buckley Space Force Base in Colorado. Sentinel Colorado / AP

US exploring potential space force hotline with China


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The US Space Force has had internal discussions about setting up a hotline with China to prevent crises in space, Gen Chance Saltzman told Reuters on Monday.

The chief of space operations said a direct line of communication between the space force and its Chinese counterpart would be valuable in de-escalating tension but that the US had not yet engaged with China to establish one.

“What we have talked about on the US side at least is opening up a line of communication to make sure that if there is a crisis, we know who we can contact,” Gen Saltzman said.

He added that it would be up to President Joe Biden and the State Department to take the lead on such discussions.

The comments come as the US Space Force looks into establishing a branch in Japan, China's military ambitions in the Indo-Pacific continue to unnerve its neighbours and the war in Ukraine highlights the importance of space capabilities in warfare.

Japan has been especially concerned about Taiwan and any lessons China may have drawn from Russia's invasion of Ukraine a year ago.

China, which views Taiwan as its own territory, has not renounced the use of force to bring the island under Beijing's control.

Gen Saltzman, who held talks with top Japanese defence officials in Tokyo on Monday, confirmed that the space force was exploring the potential establishment of a local headquarters in Japan.

He did not elaborate on the location or the purpose it would serve, but did say it could look similar to a branch established in South Korea in November last year.

Gen Saltzman added that deeper co-operation with like-minded countries including Japan would be crucial in being able to monitor and understand activity in the space domain to deter China and counter “grey zone activities” such as jamming satellite signals.

“We have to be able to have those indications and warnings and see what they're doing and call them on the intent. Just being hypersensitive so we don't fall prey to grey zone activities,” he said.

The US Space Force, founded in 2019, also lacks a direct line of communication with its Russian counterpart.

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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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World record transfers

1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m

Updated: September 25, 2023, 6:56 PM