Donald Trump's new chief of staff, John Kelly, has his work cut out for him. Susan Walsh / AP
Donald Trump's new chief of staff, John Kelly, has his work cut out for him. Susan Walsh / AP

Trump's new chief of staff faces tough battle to overhaul White House



Donald Trump's new chief of staff faces a tough battle to bring discipline to an unruly White House, according to Washington observers, as the president attempts to overhaul an administration prone to leaking and internal squabbling.
John Kelly, a retired four-star Marine Corps general, will start his new job on Monday, replacing Reince Priebus, whose establishment credentials meant he never gelled with Mr Trump's unconventional team.
The decision was announced on Friday evening in characteristic fashion – with an unexpected tweet.
It ends months of private criticism that Mr Priebus was too weak for the job, presiding over a fractious White House and unable to drive the president's agenda.
In his place, the square-jawed retired general – a veteran of three tours of Iraq and father of a son who was killed in Afghanistan – has won presidential praise for his firm hand as the head of the department of homeland security.
Mr Kelly is also a true believer. He warned of the threat of terrorists crossing America's southern border long before Mr Trump proposed his wall and this year backed the president's travel ban on seven – and then six – Muslim nations.
"He is a Great American and a Great Leader," wrote Mr Trump. "John has also done a spectacular job at Homeland Security. He has been a true star of my administration."
But if his job is to impose order, then his biggest challenge might be to rein in his boss.
Mr Trump took to Twitter on Saturday morning to express his frustration with his own party's failure to pass a bill repealing ObamaCare.
"Republicans in the Senate will NEVER win if they don't go to a 51 vote majority NOW. They look like fools and are just wasting time," he wrote in the sort of tirade that makes critics accuse him of not understanding how the Senate works or how the constitution provides checks and balances on presidential power.
Mr Kelly's supporters say he has the experience of managing big organisations and the leadership qualities needed for the role.
He is one of three senior former or serving generals to have won key posts in Mr Trump's administration – the others being HR McMaster as national security adviser and Jim Mattis as defence secretary.
Rich Galen, a Republican strategist, said the appointment was typical of Mr Trump.
"He loves generals, he loves people who rose to the top of their profession – whether it is building golf courses or hedge funds or oil and gas companies or the army," he said.
However, he added that a man who has spent his entire career in the armed forces may struggle to cope with Mr Trump's chaotic management style. Senior figures such as Steve Bannon, chief strategist, and Anthony Scaramucci, director of communications, bypass the usual chain of command and instead report directly to the president.
Jack Jacobs, a retired army colonel, told MSNBC Mr Kelly's impressive qualities of integrity and patriotism would count for little.
"At the end of the day, Gen Kelly is either going to have to accept a diminished role as chief of staff or he's going to be frustrated and he's going to have to leave," he said.
The president has made no secret of how he likes to have imposing military figures at his side. And, at 67, Mr Kelly is close to his own age.
In contrast, friends of the president let it be known that he considered Mr Priebus to be "weak" and blamed him for the way his legislative agenda stalled in congress.
Mr Priebus's position as an establishment insider also created friction with Mr Trump's closest advisers.
He had hoped to remain in the job for a year but served only 189 days, the shortest tenure in modern history.
"I would like to thank Reince Priebus for his service and dedication to his country," added Mr Trump in a later tweet. "We accomplished a lot together and I am proud of him!"
Mr Priebus gambled his political career when he became one of a small number of senior Republicans to join Mr Trump's band of relatives, millionaires and populist outsiders last year.
However, it meant he cut an increasingly tragic figure in the West Wing, according to insiders, as he struggled to cope with an unpredictable boss.
The end began last Friday when Mr Trump announced the appointment of Mr Scaramucci, a wealthy hedge fund manager, as director of communications despite the objections of Mr Priebus.
It meant the press operation – until then the domain of the chief of staff's small band of Republican apparatchiks – would fall into the hands of one of Mr Trump's brash New York friends.
The pivotal moments arrived on Thursday, firstly in the morning when Mr Scaramucci took to CNN and demanded that Mr Priebus come clean on whether he was responsible for White House leaks.
Worse followed when Ryan Lizza, a reporter with the New Yorker magazine, published details of an expletive-ridden conversation with Mr Scaramucci in which he called Mr Priebus "paranoid".
Mr Priebus said he offered his resignation on Thursday night, soon after the rant became public, after being told days earlier that a shake-up was coming.
In an interview with CNN, he said the president was entitled to hit the "reset button".
"This is not a situation where there's a bunch of ill will," he said. "I think the president wanted to go in a different direction – I support him in that."

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.”

UAE currency: the story behind the money in your pockets
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PROFILE OF HALAN

Started: November 2017

Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga

Based: Cairo, Egypt

Sector: transport and logistics

Size: 150 employees

Investment: approximately $8 million

Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar

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Champions League quarter-final, first leg

Tottenham Hotspur v Manchester City, Tuesday, 11pm (UAE)

Matches can be watched on BeIN Sports

PROFILE BOX:

Company/date started: 2015

Founder/CEO: Rami Salman, Rishav Jalan, Ayush Chordia

Based: Dubai, UAE

Sector: Technology, Sales, Voice, Artificial Intelligence

Size: (employees/revenue) 10/ 100,000 downloads

Stage: 1 ($800,000)

Investors: Eight first-round investors including, Beco Capital, 500 Startups, Dubai Silicon Oasis, Hala Fadel, Odin Financial Services, Dubai Angel Investors, Womena, Arzan VC

 

RESULTS

6.30pm: Handicap (rated 95-108) US$125,000 2000m (Dirt).
Winner: Don’t Give Up, Gerald Mosse (jockey), Saeed bin Suroor (trainer).

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8.15pm: UAE 2000 Guineas Trial (Div-1) Conditions $100,000 1,400m (D)
Winner: Gold Town, William Buick, Charlie Appleby.

8.50pm: Cape Verdi Group 2 $200,000 1600m (T).
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9.25pm: UAE 2000 Guineas Conditions $100,000 1,400m (D).
Winner: El Chapo, Luke Morris, Fawzi Nass.

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Position: legal consultant with Al Rowaad Advocates and Legal Consultants.