US Secretary of State Tillerson says he plans to stay in post throughout 2018. AFP PHOTO / SAUL LOEB
US Secretary of State Tillerson says he plans to stay in post throughout 2018. AFP PHOTO / SAUL LOEB
US Secretary of State Tillerson says he plans to stay in post throughout 2018. AFP PHOTO / SAUL LOEB
US Secretary of State Tillerson says he plans to stay in post throughout 2018. AFP PHOTO / SAUL LOEB

Vivat Rex: Tillerson says he's staying in post in 2018


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US Secretary of State Rex Tillerson said he planned to stay in his post throughout 2018 despite speculation he might leave owing to a fractious relationship with President Donald Trump, whom he reportedly called a “moron”.

Tillerson's relationship with Trump appeared to sour over the course of the year. NBC reported in October that Tillerson referred to the president as a "moron" after a Pentagon meeting in July. In November, there were reports the White House was contemplating replacing him.

Tillerson said the president had given him no indication his job was in jeopardy. "I intend to be here for the whole year,” said Tillerson in an interview with CNN.

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The CNN interview coincided with the release of a sharply critical book on Trump's first year as president. The book portrayed the US leader as behaving like a child and raised new questions about his fitness for public office.

Asked if he shared the assessment that Trump was not mentally fit for office, Tillerson said: "I've never questioned his mental fitness. I have no reason to question his mental fitness."

Tillerson said it took him a while to learn how to best communicate with Trump, who he did not know before becoming secretary of state.

Tillerson, a former Exxon chief executive, said he and the president had different management and decision-making styles.

"I've had to spend a lot of time understanding how to best communicate with him so I can serve his needs with information," Tillerson told CNN.

"Something I had to learn is what is effective with this president," Tillerson said. "He is not typical of presidents of the past. I think that's well recognized. That's also though why the American people chose him."

EA Sports FC 25

Pad Man

Dir: R Balki

Starring: Akshay Kumar, Sonam Kapoor, Radhika Apte

Three-and-a-half stars

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Day 2, stumps

Pakistan 482

Australia 30/0 (13 ov)

Australia trail by 452 runs with 10 wickets remaining in the innings

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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THE SPECS

Engine: 4.4-litre V8

Transmission: eight-speed automatic

Power: 523hp

Torque: 750Nm

Price: Dh469,000