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US Secretary of State Antony Blinken said on Wednesday that the Houthis in Yemen can expect consequences after their latest drone and missile attack against shipping in the Red Sea.
But the Iran-backed rebel group said it would continue to attack vessels, even as the UN Security Council adopted a resolution demanding a halt to such actions.
The Houthis claimed responsibility for firing a barrage of drones and rockets towards international shipping lanes on Tuesday, and said they were trying to hit a US Navy ship.
The US and its allies have repeatedly warned the Houthis that such attacks will not go unanswered, although so far the international maritime coalition patrolling the Red Sea has not struck Houthi missile-launch bases in Yemen.
“I’m not going to telegraph or preview anything that that might happen,” Mr Blinken said in Bahrain.
"If this continues, as it did yesterday, there will be consequences."
On the X social media platform, a Houthi official said the group would continue to attack ships associated with Israel until the siege of Gaza is lifted.
At the UN, the Security Council adopted a resolution condemning and demanding an immediate halt to attacks by Yemen’s Houthi rebels on commercial vessels in the Red Sea.
"The Houthis, and anyone who enables them, need to hear a clear message from this Council: these attacks must stop," said the US ambassador to the UN, Linda Thomas-Greenfield.
UK Defence Secretary Grant Shapps earlier suggested a military response against the Houthis was imminent.
"Watch this space," he told reporters when asked if the US-led task force would fulfil its threats of armed response against the Houthis.
Mr Shapps said he had been in touch with fellow military leaders, including in Saudi Arabia, and “we are all agreed in one voice, this cannot continue, and we won't allow it to continue".
At the White House, National Security Council spokesman John Kirby said the US would do "everything we can to protect shipping in the Red Sea", noting that the Houthis "will bear the consequences" for their actions.
"We're going to continue to co-ordinate and consult closely with our allies and partners about the appropriate next steps should these attacks continue," Mr Kirby said.
The Iran-backed Houthis fired 18 one-way attack drones, two anti-ship cruise missiles and one anti-ship ballistic missile towards international shipping lanes where dozens of merchant vessels were at sea, the US military's Central Command said.
US and UK jets and ships thwarted the "complex attack".
Avi Melamed, a former Israeli intelligence official and senior government official analysing Arab affairs, said threats alone will not deter the Houthis.
Mr Melamed suggested a failure to respond would be like former US president Barack Obama not taking action against Syrian President Bashar Al Assad for crossing the "red line" of using chemical weapons.
"This war has thus far provided the US government and its military the opportunity to strengthen its image in the region, but this is a testing moment for that image," he said.
"Will the US respond or maintain its defensive stance and thus suffer the loss of the image boost it has thus far gained?”
Mr Blinken, who is ending a week-long tour of the Middle East as he tries to prevent the Israel-Gaza war from spilling into a broader conflict, stressed that his message was extended to Tehran as well as the Houthis.
"We've also repeatedly tried to make clear to Iran, as other countries have, as well, that the support that they're providing to the Houthis, including for these actions, needs to stop," he said.
Tuesday's attack was the 26th the Houthis have launched since October 7, Central Command said.
There were no injuries or damage reported.
Ellie Sennett contributed to this report.
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
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Tank warfare
Lt Gen Erik Petersen, deputy chief of programs, US Army, has argued it took a “three decade holiday” on modernising tanks.
“There clearly remains a significant armoured heavy ground manoeuvre threat in this world and maintaining a world class armoured force is absolutely vital,” the general said in London last week.
“We are developing next generation capabilities to compete with and deter adversaries to prevent opportunism or miscalculation, and, if necessary, defeat any foe decisively.”
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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PULITZER PRIZE 2020 WINNERS
JOURNALISM
Public Service
Anchorage Daily News in collaboration with ProPublica
Breaking News Reporting
Staff of The Courier-Journal, Louisville, Ky.
Investigative Reporting
Brian M. Rosenthal of The New York Times
Explanatory Reporting
Staff of The Washington Post
Local Reporting
Staff of The Baltimore Sun
National Reporting
T. Christian Miller, Megan Rose and Robert Faturechi of ProPublica
and
Dominic Gates, Steve Miletich, Mike Baker and Lewis Kamb of The Seattle Times
International Reporting
Staff of The New York Times
Feature Writing
Ben Taub of The New Yorker
Commentary
Nikole Hannah-Jones of The New York Times
Criticism
Christopher Knight of the Los Angeles Times
Editorial Writing
Jeffery Gerritt of the Palestine (Tx.) Herald-Press
Editorial Cartooning
Barry Blitt, contributor, The New Yorker
Breaking News Photography
Photography Staff of Reuters
Feature Photography
Channi Anand, Mukhtar Khan and Dar Yasin of the Associated Press
Audio Reporting
Staff of This American Life with Molly O’Toole of the Los Angeles Times and Emily Green, freelancer, Vice News for “The Out Crowd”
LETTERS AND DRAMA
Fiction
"The Nickel Boys" by Colson Whitehead (Doubleday)
Drama
"A Strange Loop" by Michael R. Jackson
History
"Sweet Taste of Liberty: A True Story of Slavery and Restitution in America" by W. Caleb McDaniel (Oxford University Press)
Biography
"Sontag: Her Life and Work" by Benjamin Moser (Ecco/HarperCollins)
Poetry
"The Tradition" by Jericho Brown (Copper Canyon Press)
General Nonfiction
"The Undying: Pain, Vulnerability, Mortality, Medicine, Art, Time, Dreams, Data, Exhaustion, Cancer, and Care" by Anne Boyer (Farrar, Straus and Giroux)
and
"The End of the Myth: From the Frontier to the Border Wall in the Mind of America" by Greg Grandin (Metropolitan Books)
Music
"The Central Park Five" by Anthony Davis, premiered by Long Beach Opera on June 15, 2019
Special Citation
Ida B. Wells