US President Joe Biden on Tuesday called former president Donald Trump's recent remarks about Nato “dumb” and “un-American”, as he urged the House of Representatives to pass a foreign aid bill that includes billions in assistance for Ukraine and Israel.
At the White House, Mr Biden condemned Mr Trump's comments at the weekend that appeared to give tacit encouragement to Russia to invade any Nato country that was not meeting its commitment of spending 2 per cent of gross domestic product on defence.
“No other president in history has ever bowed down to a Russian dictator," Mr Biden said.
"Let me say this as clearly as I can: I never will. It's dumb. It's shameful. It's dangerous. It's un-American.”
“The whole world heard it and the worst thing is he means it."
Mr Trump, the Republican front-runner in the 2024 US election, was speaking during a political rally in South Carolina on Saturday, appearing to recount a meeting with Nato leaders.
He quoted the president of “a big country” – which he did not identify – asking: “Well, sir, if we don't pay and we're attacked by Russia, will you protect us?
“I said: 'You didn't pay? You're delinquent?' He said: 'Yes, let's say that happened.'
"'No I would not protect you. In fact I would encourage them [Russia] to do whatever the hell they want. You got to pay'.”
Article Five of the Nato treaty stipulates that an attack against one member nation is considered an attack on all.
During his time in the White House from 2017-2021, Mr Trump repeatedly complained about Nato and the fact that many members were not paying the 2 per cent to which they had agreed.
He often said Nato members were taking advantage of US military power.
Mr Biden said that for Mr Trump, “principles never matter".
“Everything is transactional. He doesn’t understand that the sacred commitment we’ve given works for us as well,” Mr Biden said in his remarks.
“In fact, I would remind Trump and all those who would walk away from Nato: Article Five has only been invoked once, just once in Nato history,” he said.
He was referring to the aftermath of the September 11, 2001, attacks that saw the US call on Nato partners to help fight the Taliban in Afghanistan.
Ukraine is not a member of Nato, but the alliance has served as the key organiser of efforts to back Kyiv in its defence against Russia's invasion.
The Senate on Tuesday passed a $95 billion aid package that includes assistance for Israel and Ukraine.
But it is already facing an uphill battle in the lower chamber of Congress, where Trump-aligned Republicans have threatened to kill the bill.
The probable deadlock comes at a critical time for Ukraine in its nearly two-year war with Russia.
The President said Washington “cannot afford to wait any longer” on getting the bill to his desk to sign into law.
The package would provide $14 billion for Israel in its war on Gaza and $9.1 million in humanitarian assistance for Palestinians in Gaza, the West Bank, Ukraine and other civilians in conflict areas around the world.
Who has lived at The Bishops Avenue?
- George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
- Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
- Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
- Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills.
Hunting park to luxury living
- Land was originally the Bishop of London's hunting park, hence the name
- The road was laid out in the mid 19th Century, meandering through woodland and farmland
- Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds
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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