President Joe Biden and senior Senate leaders on Tuesday urged the US House of Representatives to “meet this moment”, as Donald Trump-allied Republicans threatened to again kill a massive foreign aid bill with billions in assistance for Ukraine and Israel.
In an early morning vote, the US Senate passed the $95 billion aid package that contains funding for Ukraine, Israel and Taiwan after a chaotic week of Republican infighting.
In an address from the White House, Mr Biden emphasised that “history is watching” and called on House Speaker Mike Johnson to put the bill to a vote “immediately”.
“House Republicans, you've got to decide, are you going to stand up for freedom? Or are you going to side with terror and tyranny?” Mr Biden said.
“You're going to stand with Ukraine, or you're going to stand with [Russian President Vladimir] Putin? Will you stand with America or Trump?”
Senate Majority Leader Chuck Schumer had earlier expressed a similar urgency: “These past few months have been a great test for the US Senate … now, it's up to the House. Meet this moment. Do the right thing and save democracy.
“This is a rare moment where history is looking upon the United States and seeing if we will stand up for our values stand up to bullies like us and do the right thing.”
Mr Biden added that Washington “cannot afford to wait any longer” on getting the bill to his desk to sign into law.
“It will provide Israel with what it needs to protect its people against Hamas terrorists. Significantly, this agreement will provide life-saving humanitarian assistance for the Palestinian people, the vast majority of whom have nothing to do with Hamas,” he said.
Despite clearing the Senate hurdle, the legislation is all but certain to be “dead on arrival” in the Republican-controlled House.
The bill includes $60 billion in funding for Ukraine, which Mr Biden and other supporters say is critical for Kyiv's defence.
“In the absence of having received any single border policy change from the Senate, the House will have to continue to work its own will on these important matters,” he said in a statement on Monday night.
If the Speaker refuses to bring the legislation to the floor for a vote, an arcane process called a discharge position could circumvent his block. It is a little-used and lengthy process that would require bipartisan support.
White House National Security Council spokesman John Kirby told reporters on Tuesday that failure to pass the spending bill “sends messages not just to allies and partners, but to potential adversaries as well, that the United States can't be counted on”.
Republicans have faced criticism from Mr Biden and other politicians in Washington that they are blocking border reform to boost former president Donald Trump's 2024 election campaign.
Ben Cardin, chairman of the Senate Foreign Relations Committee, cautioned that “while the passage of this funding package is cause for celebration, we cannot forget the calamitous path that led us to this moment”.
“The political entrenchment and partisan brinkmanship that characterised the debate over this legislation led to significant delays in delivering aid to our allies and a host of missed opportunities,” Mr Cardin said in a statement.
Ukrainian President Volodymyr Zelenskyy hailed the passage of the bill.
“American assistance brings just peace in Ukraine closer and restores global stability, resulting in increased security and prosperity for all Americans and all the free world,” Mr Zelenskyy wrote on X.
Also included in the bill is $14 billion for Israel and $4.83 billion for Taiwan and other partners in the Indo-Pacific region.
The package also faced a small amount of opposition from progressive members of the Democratic Party who have called for a ceasefire in Gaza.
Democratic Senator Jeff Merkley voted against the bill, saying: “I strongly oppose sending more offensive military aid to Israel at a time when they are using American weapons in what President Biden has called an ‘indiscriminate’ campaign of bombing.
“The campaign conducted by the Netanyahu government is at odds with our American values and American law, which requires recipients of American assistance to facilitate the delivery of humanitarian aid.”
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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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Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
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