War stocks face heavy scrutiny as a new bill looks to stop US politicians from trading.
A new bill introduced by a group of US senators last week could end the practice of politicians trading in defence stocks, as their investments continue to profit from the wars in Ukraine and Gaza.
The bill would add to the 2021 Stop Trading on Congressional Knowledge (Stock) Act by increasing the fines for those found to breach its disclosure requirements from $200 to $500.
The bipartisan agreement would immediately ban politicians, president and vice president from buying and selling commodities, futures and options, among other assets. This includes defence stocks that US politicians own in the billions of dollars. Elected officials, their spouses and children would also be required to divest those assets in 2027.
According to US politician investment tracker Capitol Trades, defence stocks contributed to 96 trades by politicians last year. Twenty-two of those were purchases, with eight occurring within the days after October 7.
Trading in focus
Currently, no US law forbids politicians from trading in stocks, even if access to information grants them special knowledge on the industry, or if they are placed on committee assignments that could conflict with their portfolios. Insider trading is prohibited by law en masse, and the Stock Act has pushed for greater transparency to hold government officials accountable.
“There is no reason why members of Congress ought to be profiting off of the information that only they get and the rest of the American people don’t get,” Republican senator Josh Hawley said.
“There is no reason why members of Congress ought to be profiting off of the information that only they get and the rest of the American people don’t get.”
Republican senator Josh Hawley
Democratic senator Gary Peters said: “The public should be confident that federal elected officials are making decisions that are in the best interests of the American people, not their own personal finances."
Fifty-one US politicians and their spouses own between $2.3 million and $4.8 million of shares in companies that are among the world's largest defence contractors, according to findings from investigative and non-profit website Sludge.
Their success at beating the market has spawned the creation of apps and sites such as Unusual Whales, Quiver Quantitative and Autopilot to track their performances for everyday traders.
One particular conflict of interest are those who sit on committees that deal with national security, as their decisions could see them profit from their positions on war.
While they are legally permitted to engage in certain types of trading, the continuing wars in Gaza and Ukraine have cast new light on the performance of defence – or war – stocks. These companies make weapons or provide materials to the military that are being sold to use in wars abroad. These include Lockheed Martin, RTX Corp (formerly Raytheon) and Northrop Grunman.
Lockheed Martin was the top recipient of defence contracts in the 2022 fiscal year at $44.5 billion, the Pentagon said. Raytheon and Northrop Grunman received $25.4 billion and $12.8 billion, respectively.
Seventy-three per cent of Lockheed Martin's consolidated net sales came from the US government last year, including 64 per cent from the Defence Department, the company said in its 2023 annual report.
“A reduction in overall US defence spending … because of shifting priorities, budget compromises or otherwise could adversely affect our business,” it said.
General Dynamics, which builds ships and tanks, was awarded $21.5 billion. And Boeing, which has branched out into submarines in addition to aircraft, received $14.20 billion.
War profiteers
A 2022 analysis by The New York Times found at least 25 members who were part of committees involved in US security policy traded in companies such as Lockheed Martin, Northrop and Palatir.
As of Monday, shares in Lockheed Martin have grown by 15.71 per cent since October 6, while RTX shares have grown by 46.45 per cent.
A separate analysis conducted by a separate investment tracker, Unusual Whales, found a trove of politicians could profit if the war spills over into the region.
The tracker found the portfolios of Republican US representatives Kevin Hern, Mark Green, Michael McCaul, Republican US senator Tommy Tuberville and former Democratic House speaker Nancy Pelosi are set to benefit should an armed conflict between Iran and Israel develop.
Offices for a number of US politicians said they do not personally make stock selections.
A lawyer for Mr McCaul told The National in a statement that the politician did not buy the stocks and had no knowledge of the purchase, and learnt of it through a periodic transaction report filing members are required to carry out.
“Rather, his wife has assets she solely owns, and a third-party manager made the purchase without her direction,” they said in a statement.
Miranda Dabney, spokeswoman for Mr Hern, told The National he “doesn’t have any day-to-day management or control over his stocks or his businesses”.
A member of Mr Green's office pointed to a January 2 statement in which the politician said he has no insight into how the trades are made, adding that using insider information “for personal benefit is a crime that should be strictly enforced”.
And a representative for senator Markwayne Mullin, who bought RTX shares in the days and weeks before the Hamas attack that Capitol Trades valued at $65,000, said he does not conduct trades himself.
“Senator Mullin uses an independent, third-party operator firm that manages all stock portfolio investments. … This independent company reports bi-weekly with Senate Ethics to ensure compliance with all federal laws,” the representative told The National.
Even before the fear of the conflict expanding took shape, some politicians made well-timed trades in the days before the war began.
Other members of Congress who purchased shares in Lockheed Martin last year include Dan Goldman – who sits on the Homeland Security Committee – and Mr Hern, a member of Ways and Means.
A representative for Mr Goldman said his assets have been held in a blind trust since August 2023, and that he is prohibited from directing or speaking investments with his financial advisers under the terms of it.
Mr Hern purchased Lockheed Martin shares worth between $1,000 and $15,000 on March 29, according to database Capitol Trades.
Kathy Manning, who sits on the House Foreign Affairs Committee, in February disclosed two transactions of Lockheed Martin stock her spouse bought days before a drone attack at a US outpost in Jordan. Her spouse bought the shares, each worth between $1,000 and $15,000, on January 23.
Offices for Mr Tuberville, Ms Pelosi and Ms Manning did not return The National's request for comment.
Can the latest bill become law?
Previous efforts to limit or ban stock trading have failed to materialise in Congress, giving the current bipartisan effort a steep hill to climb if it is to ever become law.
This is despite an overwhelming number of Americans in favour of prohibiting politicians rom trading stocks altogether. According to a 2023 survey by the Program for Public Consultation at the University of Maryland’s School of Public Policy, 87 per cent of Republicans and 88 per cent of Democrats want to ban politicians from trading stocks.
Other bills introduced in recent years, including the Ban Stock Trading for Government Officials Act and Ending Trading and Holdings In Congressional Stocks (ETHICS) Act have sought to go further in restricting trading.
And progressive politician Rashida Tlaib this year introduced the Stop Politicians Profiting from War Act to prohibit political figures, their spouses or children from trading defence stocks and having financial interests in companies that do business with the Defence Department.
“It is shameful that some of my colleagues are profiting financially when they vote to support wars and weapons manufacturing,” she said in a February news release.
Mr Hawley introduced another bill last year – the Preventing Elected Leaders from Owning Securities and Investments (Pelosi) Act – seeking to prohibit Congress members or their spouses from holding or trading certain investments.
None of those four bills made it out of committee.
UAE currency: the story behind the money in your pockets
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Engine: 1.5-litre
Transmission: 6-speed automatic
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Torque: 147Nm
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2pm Handicap Dh 90,000 1,800m
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The National selections:
2pm Arch Gold
2.30pm Conclusion
3pm Al Battar
3.30pm Golden Jaguar
4pm Al Motayar
4.30pm Tapi Sioux
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PSA DUBAI WORLD SERIES FINALS LINE-UP
Men’s:
Mohamed El Shorbagy (EGY)
Ali Farag (EGY)
Simon Rosner (GER)
Tarek Momen (EGY)
Miguel Angel Rodriguez (COL)
Gregory Gaultier (FRA)
Karim Abdel Gawad (EGY)
Nick Matthew (ENG)
Women's:
Nour El Sherbini (EGY)
Raneem El Welily (EGY)
Nour El Tayeb (EGY)
Laura Massaro (ENG)
Joelle King (NZE)
Camille Serme (FRA)
Nouran Gohar (EGY)
Sarah-Jane Perry (ENG)
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Isle of Dogs
Director: Wes Anderson
Starring: Bryan Cranston, Liev Schreiber, Ed Norton, Greta Gerwig, Bill Murray, Jeff Goldblum, Scarlett Johansson
Three stars
Zimbabwe v UAE, ODI series
All matches at the Harare Sports Club:
1st ODI, Wednesday, April 10
2nd ODI, Friday, April 12
3rd ODI, Sunday, April 14
4th ODI, Tuesday, April 16
UAE squad: Mohammed Naveed (captain), Rohan Mustafa, Ashfaq Ahmed, Shaiman Anwar, Mohammed Usman, CP Rizwan, Chirag Suri, Mohammed Boota, Ghulam Shabber, Sultan Ahmed, Imran Haider, Amir Hayat, Zahoor Khan, Qadeer Ahmed
UAE squad
Esha Oza (captain), Al Maseera Jahangir, Emily Thomas, Heena Hotchandani, Indhuja Nandakumar, Katie Thompson, Lavanya Keny, Mehak Thakur, Michelle Botha, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Sashikala Silva, Suraksha Kotte, Theertha Satish (wicketkeeper) Udeni Kuruppuarachchige, Vaishnave Mahesh.
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – First ODI
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
Scorline
Iraq 1-0 UAE
Iraq Hussein 28’
THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
THE SPECS
Engine: 3.9-litre twin-turbo V8
Transmission: seven-speed dual clutch
Power: 710bhp
Torque: 770Nm
Speed: 0-100km/h 2.9 seconds
Top Speed: 340km/h
Price: Dh1,000,885
On sale: now
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F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
MATCH INFO
Uefa Champions League, Group B
Barcelona v Inter Milan
Camp Nou, Barcelona
Wednesday, 11pm (UAE)
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
The five stages of early child’s play
From Dubai-based clinical psychologist Daniella Salazar:
1. Solitary Play: This is where Infants and toddlers start to play on their own without seeming to notice the people around them. This is the beginning of play.
2. Onlooker play: This occurs where the toddler enjoys watching other people play. There doesn’t necessarily need to be any effort to begin play. They are learning how to imitate behaviours from others. This type of play may also appear in children who are more shy and introverted.
3. Parallel Play: This generally starts when children begin playing side-by-side without any interaction. Even though they aren’t physically interacting they are paying attention to each other. This is the beginning of the desire to be with other children.
4. Associative Play: At around age four or five, children become more interested in each other than in toys and begin to interact more. In this stage children start asking questions and talking about the different activities they are engaging in. They realise they have similar goals in play such as building a tower or playing with cars.
5. Social Play: In this stage children are starting to socialise more. They begin to share ideas and follow certain rules in a game. They slowly learn the definition of teamwork. They get to engage in basic social skills and interests begin to lead social interactions.
yallacompare profile
Date of launch: 2014
Founder: Jon Richards, founder and chief executive; Samer Chebab, co-founder and chief operating officer, and Jonathan Rawlings, co-founder and chief financial officer
Based: Media City, Dubai
Sector: Financial services
Size: 120 employees
Investors: 2014: $500,000 in a seed round led by Mulverhill Associates; 2015: $3m in Series A funding led by STC Ventures (managed by Iris Capital), Wamda and Dubai Silicon Oasis Authority; 2019: $8m in Series B funding with the same investors as Series A along with Precinct Partners, Saned and Argo Ventures (the VC arm of multinational insurer Argo Group)
Chef Nobu's advice for eating sushi
“One mistake people always make is adding extra wasabi. There is no need for this, because it should already be there between the rice and the fish.
“When eating nigiri, you must dip the fish – not the rice – in soy sauce, otherwise the rice will collapse. Also, don’t use too much soy sauce or it will make you thirsty. For sushi rolls, dip a little of the rice-covered roll lightly in soy sauce and eat in one bite.
“Chopsticks are acceptable, but really, I recommend using your fingers for sushi. Do use chopsticks for sashimi, though.
“The ginger should be eaten separately as a palette cleanser and used to clear the mouth when switching between different pieces of fish.”
Results
2.30pm: Dubai Creek Tower – Handicap (PA) Dh40,000 (Dirt) 1,200m; Winner: Marmara Xm, Gary Sanchez (jockey), Abdelkhir Adam (trainer)
3pm: Al Yasmeen – Maiden (PA) Dh40,000 (D) 1,700m; Winner: AS Hajez, Jesus Rosales, Khalifa Al Neyadi
3.30pm: Al Ferdous – Maiden (PA) Dh40,000 (D) 1,700m; Winner: Soukainah, Sebastien Martino, Jean-Claude Pecout
4pm: The Crown Prince Of Sharjah – Prestige (PA) Dh200,000 (D) 1,200m; Winner: AF Thayer, Ray Dawson, Ernst Oertel
4.30pm: Sheikh Ahmed bin Rashid Al Maktoum Cup – Handicap (TB) Dh200,000 (D) 2,000m; Winner: George Villiers, Antonio Fresu, Bhupat Seemar
5pm: Palma Spring – Handicap (PA) Dh40,000 (D) 2,000m; Winner: Es Abu Mousa, Antonio Fresu, Abubakar Daud
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
UJDA CHAMAN
Produced: Panorama Studios International
Directed: Abhishek Pathak
Cast: Sunny Singh, Maanvi Gagroo, Grusha Kapoor, Saurabh Shukla
Rating: 3.5 /5 stars
Porsche Taycan Turbo specs
Engine: Two permanent-magnet synchronous AC motors
Transmission: two-speed
Power: 671hp
Torque: 1050Nm
Range: 450km
Price: Dh601,800
On sale: now
Director: Shady Ali
Cast: Boumi Fouad , Mohamed Tharout and Hisham Ismael
Rating: 3/5
MATCH INFO
Champions League quarter-final, first leg
Manchester United v Barcelona, Wednesday, 11pm (UAE)
Match on BeIN Sports
If you go
The flights
There are various ways of getting to the southern Serengeti in Tanzania from the UAE. The exact route and airstrip depends on your overall trip itinerary and which camp you’re staying at.
Flydubai flies direct from Dubai to Kilimanjaro International Airport from Dh1,350 return, including taxes; this can be followed by a short flight from Kilimanjaro to the Serengeti with Coastal Aviation from about US$700 (Dh2,500) return, including taxes. Kenya Airways, Emirates and Etihad offer flights via Nairobi or Dar es Salaam.
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
Adele: The Stories Behind The Songs
Caroline Sullivan
Carlton Books
Results
Stage Two:
1. Mark Cavendish (GBR) QuickStep-AlphaVinyl 04:20:45
2. Jasper Philipsen (BEL) Alpecin-Fenix
3. Pascal Ackermann (GER) UAE Team Emirates
4. Olav Kooij (NED) Jumbo-Visma
5. Arnaud Demare (FRA) Groupama-FDJ
General Classification:
1. Jasper Philipsen (BEL) Alpecin-Fenix 09:03:03
2. Dmitry Strakhov (RUS) Gazprom-Rusvelo 00:00:04
3. Mark Cavendish (GBR) QuickStep-AlphaVinyl 00:00:06
4. Sam Bennett (IRL) Bora-Hansgrohe 00:00:10
5. Pascal Ackermann (GER) UAE Team Emirates 00:00:12
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LIVING IN...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
SERIE A FIXTURES
Saturday (UAE kick-off times)
Atalanta v Juventus (6pm)
AC Milan v Napoli (9pm)
Torino v Inter Milan (11.45pm)
Sunday
Bologna v Parma (3.30pm)
Sassuolo v Lazio (6pm)
Roma v Brescia (6pm)
Verona v Fiorentina (6pm)
Sampdoria v Udinese (9pm)
Lecce v Cagliari (11.45pm)
Monday
SPAL v Genoa (11.45pm)
