Barcelona with Lionel Messi, left, will be a tough opposition for Manchester City, who may be without Sergio Aguero. Lluis Gene / AFP
Barcelona with Lionel Messi, left, will be a tough opposition for Manchester City, who may be without Sergio Aguero. Lluis Gene / AFP

Churn gets tougher as Barca, Chelsea and Man City approach last-16 in Champions League



After the draw held for the round of 16, a look into each clash in detail and what the ties have in store.

PSG v Chelsea

If they provide as much suspense as these clubs did in the quarter-final last season, it should be entertaining.

Chelsea have several reasons to believe they are in stronger position now than they were last March, however, when they lost 3-1 in Paris and needed an 87th minute strike from Demba Ba in London to progress on away goals. The Premier League leaders have more bite these days, while the French champions have not taken control of Ligue 1.

A big night for David Luiz, made the most expensive defender in history last summer when PSG bought him from a Chelsea ready to live without his swashbuckling interpretation of the role of centre-half.

Juventus v Borussia Dortmund

The club who master Italy but cannot fathom Europe against the club who breezed into the Champions League knockouts while slumping to the very bottom of the Bundesliga.

An intriguing tie in many aspects. How will a long-in-the-tooth Juve defence handle the counter-attacking speed of Dortmund?

Will a trip to Italy bring the best out of Ciro Immobile, the Dortmund striker whose qualities as Serie A’s leading scorer last season, with Torino, have been glimpsed only rarely.

One for the nostalgics, too: a rare re-run of the 1997 final, won by Dortmund.

Manchester City v Barcelona

Viewed from two months away, both clubs have reason for trepidation ahead of this sequel to the meeting, won by Barca, at the same stage in 2013-14.

City’s current injury list denies them the services of three senior strikers, Stevan Jovetic, Edin Dzeko and, most importantly, Sergio Aguero, the man Barcelona will fear most.

And up against Neymar, Lionel Messi and Luis Suarez, City need a fit Vincent Kompany.

Barca’s difficulties are less to do with manpower than method. The best teams they have played this season – PSG in Paris, Real Madrid away – have found them loose in defence and in a dilemma about how closely to trust their admired pass-and-move principles.

Schalke v Real Madrid

This was the tie Roberto Di Matteo, a Champions League-winning coach in 2012 with Chelsea, really did not want as his reintroduction to the knockout stages of the tournament.

Madrid thrashed Schalke 9-2 on aggregate in Germany in the last-16 last season, in what was a festival for the so-called ‘BBC’ strike force, Benzema, Bale and Cristiano. If anything, Madrid now look stronger.

Luka Modric has a good chance of recovering fitness by February to give a majestic midfield its balance. Madrid, currently looking to add to their run of 20 successive wins while claiming the Club World Cup, should be quietly relishing their return to Germany.

Arsenal v Monaco

Stylists against stoics, and perhaps more of a test for Arsenal than they might imagine in their relief at drawing what was supposedly the least threatening opponent among the seeded clubs.

Monaco carry the meanest defence in the tournament through to their first appearance at this stage for a decade. They are tough to break down.

They are certainly less pleasing on the eye than they were when, more than 20 years ago, Arsenal manager Arsene Wenger was making his name as a coach there.

His return to the Principality adds a sheen to the second leg. As does Dimitar Berbatov’s return to London, where he delighted English audiences for Spurs for a few seasons.

Shaktar Donetsk v Bayern Munich

This was supposed to be the season where Shaktar’s authority in European football was challenged and brought down to earth by political strains in their region of Ukraine. We are still waiting.

Their blitzing of Bate Borisov – 7-0 away, 5-0 at home – in the group stage is warning enough of their firepower.

Bayern are still strong favourites, and would expect their long injury list to have shortened a little by February, and to have the Bundesliga title close to graspable by then, given their domestic swagger.

Pep Guardiola, their coach, is wised up and warier of the type of ambush that Real Madrid prepared for Bayern in last year’s semi-final. Shaktar would need to think up something special.

Basel v Porto

It is more than five seasons since Porto, consistently competitive in Europe’s elite tournament, reached a quarter-final.

They will eye this tie as a good opportunity to make good their reputation as their country’s best ambassadors in the Champions League, but they need Jackson Martinez, their powerful striker, in form and fit.

A Portuguese coach, Paolo Sousa, stands in their way. His adventurous Basel will be motivated by having overcome Liverpool to reach this round.

Sousa’s task is to take the Swiss champions beyond the glass ceiling of the last 16, where they recorded a famous win over Bayern Munich in 2012, though lost that tie on aggregate.

Bayer Leverkusen v Atletico Madrid

Diego Simeone’s Atletico Madrid can no longer be considered dark horses in Europe. They are stronger than that.

Two Europa League triumphs and a Champions League final since 2010 establish their credentials, as does the way they negotiated top spot in a tough Group A to reach the last 16.

Doubts concern the Spanish champions’ stamina and what they can offer should their refined formulas of set-piece strength and sharp counter-attack not yield a result. But Leverkusen, walloped at the first knockout stage by PSG last year, probably do not have the tools to ask hard enough questions to Atletico over 180 minutes.

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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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