Solar flares cause geomagnetic disturbances, which can affect unshieleded electronics.
Solar flares cause geomagnetic disturbances, which can affect unshieleded electronics.

An angry Sun approaches



PARIS // The coming year will be an important one for space weather as the Sun pulls out of a trough of low activity and heads into a long-awaited and possibly destructive period of turbulence.

Many people may be surprised to learn that the Sun, rather than burn with faultless consistency, goes through moments of calm and tempest. But two centuries of observing sunspots - dark, relatively cool marks on the solar face linked to mighty magnetic forces - have revealed that our star follows a roughly 11-year cycle of behaviour.

The latest cycle began in 1996 and for reasons that are unclear has taken longer than expected to end. Now, though, there are more and more signs that the Sun is shaking off its torpor and building towards "Solar Max", or the cycle's climax, say experts.

"The latest prediction looks at around midway 2013 as being the maximum phase of the solar cycle," said Joe Kunches of the Space Weather Prediction Centre at the US National Oceanic and Atmospheric Administration (NOAA).

But there is a prolonged period of high activity, "more like a season, lasting about two and a half years", either side of the peak, he cautioned. During its angriest period, the Sun can throw off tides of electromagnetic radiation and charged matter known as coronal mass ejections, or CMEs.

This shock wave may take several days to reach Earth. When it arrives, it compresses the planet's protective magnetic field, releasing energy visible in high latitudes as shimmering auroras - the famous Northern Lights and Southern Lights.

But CMEs are not just pretty events. They can unleash static discharges and geomagnetic storms that can disrupt or even knock out the electronics on which our urbanised, internet-obsessed, data-saturated society depends.

Less feared, but also a problem, are solar flares, or eruptions of super-charged protons that can reach Earth in just minutes. In the front line are telecommunications satellites in geostationary orbit, at an altitude of 36,000 kilometres and Global Positioning System (GPS) satellites, on which modern airliners and ships depend for navigation, which orbit at 20,000 kilometres. In January 1994, discharges of static electricity inflicted a five-month, $50 million (Dh184 million) outage of a Canadian telecoms satellite, Anik-E2. In April 2010, Intelsat lost Galaxy 15, providing communications over North America, after the link to ground control was knocked out apparently by solar activity.

"These are the two outright breakdowns that we all think about," said Philippe Calvel, an engineer with the French firm Thales. "Both were caused by CMEs."

In 2005, X-rays from a solar storm disrupted satellite-to-ground communications and GPS signals for about 10 minutes. To cope with solar fury, satellite designers opt for robust, tried-and-tested components and shielding, even if this makes the equipment heavier and bulkier and thus costlier to launch, said Thierry Duhamel of satellite maker Astrium.

Another precaution is redundancy - to have backup systems in case one malfunctions. On Earth, power lines, data connections and even oil and gas pipelines are potentially vulnerable.

An early warning of the risk came in 1859, when the biggest CME ever observed unleashed red, purple and green auroras even in tropical latitudes.

The new-fangled technology of the telegraph went crazy. Geomagnetically induced currents in the wires shocked telegraph operators and even set the telegraph paper on fire.

In 1989, a far smaller flare knocked out power from Canada's Hydro Quebec generator, inflicting a nine-hour blackout for six million people.

A workshop in 2008 by US space weather experts, hosted by the National Academy of Sciences, heard that a major geomagnetic storm would dwarf the 2005 Hurricane Katrina for costs.

Recurrence of a 1921 event today would fry 350 major transformers, leaving more than 130 million people without power, it heard. A bigger storm could cost between $1 trillion and $2 trillion in the first year, and full recovery could take between four and 10 years.

"I think there is some hyperbole about the draconian effects," said Dr Kunches. "On the other hand, there's a lot we don't know about the Sun. Even in the supposedly declining, or quiet phase, you can have magnetic fields on the Sun that get very concentrated and energised for a time, and you can get, out of the blue, eruptive activity that is atypical. In short, we have a variable star."

Persuasion
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Dhadak

Director: Shashank Khaitan

Starring: Janhvi Kapoor, Ishaan Khattar, Ashutosh Rana

Stars: 3

How to register as a donor

1) Organ donors can register on the Hayat app, run by the Ministry of Health and Prevention

2) There are about 11,000 patients in the country in need of organ transplants

3) People must be over 21. Emiratis and residents can register. 

4) The campaign uses the hashtag  #donate_hope

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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